Sheep Promotion, Research, and Information Program: Procedures for the Conduct of Referendum

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1280

[No. LS-95-008]

Sheep Promotion, Research, and Information Program: Procedures

for the Conduct of Referendum

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule; referendum order.

-----------------------------------------------------------------------

SUMMARY: The Sheep Promotion, Research, and Information Act of 1994

(Act) authorizes a program of promotion, research, and information to

be developed through the promulgation of the Sheep and Wool Promotion,

Research, Education, and Information Order (Order). The U.S. Department

of Agriculture (Department) recently completed this process and issued

an Order which will become effective if approved by sheep producers,

sheep feeders, and importers of sheep and sheep products. Importers who

only import raw wool are not eligible to participate in the referendum.

This rule sets forth the procedures for conducting the initial

referendum and the relevant referendum dates.

DATES: Effective Date: This final rule is effective December 15, 1995.

Referendum Dates: In-person voting in the referendum will be on

February 6, 1996, at the county Cooperative Extension Service offices.

Absentee ballots will be available at those offices from January 16,

1996, through January 26, 1996. The representative period to establish

voter eligibility will be the period from January 1, 1994, through

December 31, 1994.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing

Programs Branch; Livestock and Seed Division; Agricultural Marketing

Service (AMS), USDA, Room 2606-S; P.O. Box 96456; Washington, D.C.

20090-6456, telephone number 202/720-1115.

SUPPLEMENTARY INFORMATION: Prior document in this proceeding: Proposed

Rule--Sheep Promotion and Research Program: Procedures for Conduct of

Referendum published August 8, 1995 (60 FR 40313).

Regulatory Impact Analysis

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

This final rule has been determined to be not significant for

purposes of Executive Order 12866 and therefore has not been reviewed

by the Office of Management and Budget (OMB).

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. It is not intended to have a retroactive effect.

This rule would not preempt any State or local laws, regulations, or

policies unless they present an irreconcilable conflict with this rule.

The Act provides that any person subject to the Order may file with

the Secretary a petition stating that the Order, any provision of the

Order, or any obligation imposed in connection with the Order is not in

accordance with the law, and request a modification of the Order or an

exemption from certain provisions or obligations of the Order. The

petitioner will have the opportunity for a hearing on the petition.

Thereafter the Secretary will issue a decision on the petition. The Act

provides that the district court of the United States in any district

in which the petitioner resides or carries on business has jurisdiction

to review a ruling on the petition, if the petitioner files a complaint

for that purpose not later than 20 days after the date of the entry of

the Secretary's decision. The petitioner must exhaust his or her

administrative remedies before he or she can initiate any such

proceeding in the district court.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA)(5 U.S.C. 601 et seq.), the Administrator of AMS has

considered the economic impact of this final action on small entities.

According to the January 27, 1995, issue of ``Sheep and Goats,''

published

[[Page 64298]]

by the Department's National Agricultural Statistics Service, there are

approximately 87,350 operations with sheep in the United States that

may be eligible to vote in the referendum. To obtain the estimated

number of importers of sheep and sheep products who would be subject to

an assessment and who may be eligible to vote in the referendum, the

Department consulted with major importer organizations whose members

import sheep and sheep products into the United States. Based on its

consultations with these organizations, the Department estimates that

the number of importers of sheep and sheep products in the United

States who would be subject to these rules and regulations is

approximately 9,000. Nearly all of the sheep operations in the United

States and nearly all of the importers of sheep and sheep products

would be classified as small entities by the Small Business

Administration (13 CFR 121.601).

This action has also been reviewed under RFA (5 U.S.C. 601 et

seq.). This final rule would establish procedures for the conduct of a

referendum to determine whether an Order promulgated under the Act

becomes operational. Such procedures would permit all eligible sheep

producers, sheep feeders, and importers of sheep and sheep products,

excluding importers who import only raw wool, who have been engaged in

sheep production, sheep feeding, or the importation of sheep and sheep

products to vote in the referendum. Participation in the referendum is

voluntary. Votes may be cast either by mail ballots or in person at

polling places. Casting votes by mail or in person would not impose a

significant economic burden on participants. Accordingly, the

Administrator of AMS has determined that this rule will not have a

significant economic impact on a substantial number of small business

entities.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.

Chapter 35), OMB has approved the information collection requirements

contained in this final rule. The control number assigned to the

information collection requirements in Part 1280 by OMB pursuant to the

Paperwork Reduction Act is OMB 0581-0093. The information collection

required by this action and necessary to conduct a referendum includes

the following:

(a) For in-person voting:

(1) Each sheep producer, sheep feeder, or importer of sheep and

sheep products, except an importer who imports only raw wool, who votes

in person in the referendum must sign the In-Person Voter Registration

List (Form LS-61-3) and complete a Ballot (Form LS-61) at the county

Cooperative Extension Service (CES) office of the Department. The voter

must complete the ballot and insert it into the SHEEP BALLOT envelope

(Form LS-61-1).

(2) Each producer, feeder, and importer must complete the

Registration and Certification Form that is printed on the SHEEP

REFERENDUM envelope (Form LS-61-2) and insert the SHEEP BALLOT envelope

with the enclosed ballot in the SHEEP REFERENDUM envelope (Form LS-61-

2). The estimated average time burden for completing the forms for in-

person voting is 6 minutes per voter.

(b) For absentee voting: Each sheep producer, sheep feeder, and

importer of sheep and sheep products, except an importer who imports

only raw wool, who wants to cast an absentee vote instead of an in-

person vote, must complete, in a legible manner, a combined

registration/certification and absentee ballot form (Form LS-62). The

voting producer, feeder, or importer must complete the registration/

certification and absentee ballot form (Form LS-62), remove the ballot

portion of the form, insert the ballot in a SHEEP BALLOT envelope (Form

LS-61-1)(same as for in-person voting) and then insert the sealed SHEEP

BALLOT envelope and the registration/certification form in the SHEEP

REFERENDUM envelope (Form LS-62-1). The estimated average time burden

for completing this procedure is 6 minutes per voter.

(c) The final rule requires each sheep producer, sheep feeder, or

importer of sheep and sheep products who votes in person to record his

or her name on the In-Person Voter Registration List (Form LS-61-3)

and, if applicable, the name of the entity he or she represents. The

estimated average time burden for registering to vote in person is 0.5

minutes per voter. For absentee voters, the county CES agent shall

enter on the Absentee Voter Request List (Form LS-62-2) the date the

ballot was requested, the voter's name and address, the name of the

represented entity, if any, and the date the ballot was mailed from the

county CES office. This information may be used to validate ballots and

to challenge potentially-ineligible voters. Each county CES agent will

fill out one or more of the Absentee Voter Request Lists (Form LS-62-2)

per referendum. Because only county CES agents will complete the

Absentee Voter Request List, the estimated average reporting burden

would not apply to the producer, feeder, or importer voting in the

referendum.

Based on previous referendums conducted under the National Wool Act

of 1954, the estimated number of producers, feeders, and importers who

will vote in the referendum is 25,000, with each voting once.

Background

The Act (7 U.S.C. 7101-7111) provides for the establishment of a

coordinated program of promotion, research, education, consumer

information, industry information, and producer information designed to

strengthen the sheep industry's position in the marketplace, maintain

and expand existing markets, and develop new markets and uses for sheep

and sheep products.

The program will be funded by a mandatory assessment on domestic

producers, feeders, and exporters of live sheep and greasy wool of 1-

cent-per-pound on live sheep sold and 2-cents- per-pound on greasy wool

sold. Importers will be assessed 1-cent-per-pound on live sheep, the

equivalent of 1-cent-per-pound of live sheep for sheep products as well

as 2-cents-per-pound of degreased wool or the equivalent of degreased

wool for wool and wool products. Imported raw wool would be exempt from

assessments. Each person who processes or causes to be processed sheep

and sheep products of that person's own production, and who markets the

processed products, would be assessed the equivalent of 1-cent-per-

pound of live sheep sold or 2-cents-per-pound of greasy wool sold. All

assessments may be adjusted in accordance with the applicable

provisions of the Act.

The Act requires that a referendum be conducted after the issuance

of the final Order to determine whether the Order will go into effect.

The referendum would be conducted among persons who were sheep

producers, sheep feeders, or importers of sheep and sheep products,

during a representative period specified by the Secretary. Importers

who import only raw wool are not eligible to participate in the

referendum because raw wool is exempt from assessments under the Act.

The Order would become operational only if it is approved by a majority

of the producers, feeders, and importers voting in the referendum or by

producers, feeders, and importers voting in the referendum who account

for at least two-thirds of the production represented by persons voting

in the referendum. If the Order is not approved by persons voting in

the referendum, the program will not become operational. An Order was

[[Page 64299]]

published in the Federal Register on December 5, 1995 (60 FR 62298).

To vote in the referendum, eligible persons will complete the

registration and certification form, mark their ballots and record

their volume of production on the ballot if the volume of production is

voted. The volume of production will be recorded as the number of live

domestic sheep or live sheep equivalents that a person owned or

imported during the representative period. The domestic volume of

production includes the largest number of head of domestic sheep owned

for any single consecutive 30-day period during the representative

period. The number of live sheep equivalents for imported sheep

products will be calculated based on the amount of such products

imported during the representative period. Producers, feeders, and

importers who also cast ballots based on volume of production must

determine their volume of production before they register and vote in

the referendum.

The Act specifies that the Secretary shall determine a method of

allocating, by a pro rata percentage of annual projected or actual

assessments from importers, the volume of production represented by

importers in a referendum conducted pursuant to this subpart. Because

an Order implementing the provisions of the Act has not been in effect,

imported sheep and sheep products have not been subject to the

assessments described in the proposed Order published June 2, 1995 (60

FR 28747). Consequently, there are no projected or actual annual

assessments available to use in calculating the volume of production

for importers during the representative period. In the absence of that

information on annual assessments, the Department has decided that

importers of sheep and sheep products will determine their volume of

production by converting the volume of those imported products that

would have been subject to assessment if an Order had been in effect

during the representative period. Imported sheep, sheep meat, and wool

and wool products that would have been subject to assessment during the

representative period are identified by the Harmonized Tariff Schedule

(HTS) classification numbers listed in Table 1--HTS Classification

Numbers and Conversion Factors for Imported Sheep and Sheep Products--

contained herein, which includes sheep, sheep meat, and wool and wool

products. Because the Act exempts imported raw wool from assessments,

HTS numbers and corresponding conversion factors are not included for

imported raw wool. For the purpose of the initial referendum, importers

will use the 1994 HTS classification numbers and conversion factors in

Table 1. These HTS numbers for imported sheep and sheep products are

published in the Harmonized Tariff Schedule of the United States. To

enable importers to convert sheep meat and wool and wool products

identified by the HTS numbers for 1994 listed in Table 1, the

Department will use the conversion factors listed in the same table

that correspond to each listed HTS number. The Department's Economic

Research Service (ERS) has developed these conversion factors and

maintains them in an import library. For sheep meat, these conversion

factors take into account removal of bone, weight loss in processing or

cooking, and nonsheep components of the sheep products. The conversion

factors for wool products are used to determine the raw fiber content

of imported wool products, and take into account fiber loss during

processing, fabric trim loss, and cutting loss for wool and other

nonsheep components of wool and wool products.

Factors in determining the number of live sheep equivalents include

(1) the weight of the imported sheep meat, the weight of imported wool

and wool products and the corresponding conversion factors, (2) the

average carcass weight of 57 pounds for domestic mature sheep as

published by the Department's National Agricultural Statistics Service

in the March 1995 edition of the 1994 Livestock Slaughter Summary, (3)

a dressing percentage of 50 percent, and (4) an equivalent live weight

of 114 pounds for domestic mature sheep (57 lbs. 50% = 114

lbs.). The dressing percentage of 50 percent is widely recognized as

the average dressing percentage for sheep in the United States. The

formula for calculating importer volume of production for imported wool

and wool products will use the listed conversion factors and a

degreased wool yield of 52.8 percent, as published by ERS in the 1992

Weight, Measures, and Conversion Factors for Agricultural Commodities

and Their Products, to convert degreased wool to a greasy wool basis.

In the absence of official data for carcass weights, live weights,

dressing percentages and wool yield percentages of sheep from importing

countries, the Department has determined that the initially proposed

carcass weight, the dressing percentage, the live weight, and the

percentage of degreased wool yield, on the average, would be most

representative of carcass weights, dressing percentages, live weights

and degreased wool yield percentages of sheep from which imported sheep

products are derived.

Imported live sheep require no conversion and each head of imported

live sheep will be counted in determining the total volume of

production for importers.

The calculation procedures for both imported sheep meat and

imported wool and wool products are as follows:

Imported Sheep Meat

To calculate the live sheep equivalents of imported sheep meat, an

importer would first multiply the total weight of imported sheep meat

for each applicable HTS number by the corresponding conversion factor

to determine the total carcass weight equivalent. The importer would

then divide the total carcass weight equivalent by the average carcass

weight of 57 pounds to determine the equivalent number of live sheep.

Because the carcass weight of 57 pounds represents the equivalent live

weight of 114 pounds (57 lbs. 50% = 114 lbs.), it is not

necessary to convert the carcass weight to a live weight equivalent.

The Department has determined that the number of live sheep equivalents

should be rounded to the nearest whole number. If the decimal is 0.5 or

greater, the number of head of sheep would be rounded upward (i.e., 7.5

= 8.0). If the decimal is less than 0.5, the number of head of sheep

would be rounded downward (i.e., 7.49 = 7.0). The following examples

illustrate two typical calculations:

Examples I and II

1. Sheep Meat (Bone-in)

HTS 0204100000, Carcasses and half carcasses of lamb, fresh or

chilled

Assume: Company X imports 1,000 pounds of bone-in sheep meat

Conversion factor: 1.00

Average carcass weight: 57 pounds

Calculation:

Pounds of sheep meat..................... 1,000 lbs.

Conversion factor........................ x 1.00

----------------------------

Pounds of carcass weight equivalents..... 1,000 lbs.

Average carcass weight................... 57 lbs.

----------------------------

Live sheep equivalents................... = 17.5 or 18

2. Sheep Meat (Boneless)

HTS 0204232000, Other meat of sheep, fresh or chilled: Boneless:

lamb

Assume: Company X imports 1,000 pounds of boneless sheep meat

Conversion factor: 1.52

Average carcass weight: 57 pounds

Calculation:

Pounds of sheep meat..................... 1,000 lbs.

Conversion factor........................ x 1.52

----------------------------

[[Page 64300]]

Pounds of carcass weight equivalents..... 1,520 lbs.

Average carcass weight................... 57

----------------------------

Live sheep equivalents................... = 26.7 or 27

Imported Wool and Wool Products

Because assessments of all imported products are based on weight

and the referendum vote will include a volume consideration which, for

domestic voters, will be based on live sheep, the Department has

determined that the 114 pounds of mature sheep weight will be the live

sheep equivalent for both imported sheep meat and imported wool. For

purposes of the referendum, the domestic vote is based entirely on the

number of live sheep with no regard for the wool. However, to provide

an equitable voting basis for importers of wool and wool products, an

amount of greasy wool equal in weight to a live mature sheep--114

pounds--was established as a live sheep equivalent for importers of

wool and wool products.

To calculate the number of live sheep equivalents of imported wool

products, the importer would first multiply the total weight of

imported wool products for each applicable HTS number by the

corresponding conversion factor to determine the total weight of

degreased wool. The importer would then divide the total weight of the

degreased wool equivalent by 52.8 percent, to convert the degreased

wool to a greasy wool basis. Finally, the importer would divide the

total pounds of greasy wool by the calculated average live weight of

114 pounds to determine the number of live sheep equivalents. The

Department has determined that the number of live sheep equivalents

should be rounded to the nearest whole number. If the decimal is 0.5 or

greater, the number of head of sheep would be rounded upward (i.e.,

7.5=8.0). If the decimal is less than 0.5, the number of head of sheep

would be rounded downward (i.e., 7.49=7.0). The following example

illustrates a typical calculation:

Example III

HTS 6201110010, Mens or boys overcoats of wool or fine animal

hair

Assume: Company X imports 1,000 overcoats weighing 2,000 pounds into

the United States.

Conversion factor: 0.9774

Calculation:

Weight of imported product............... 2,000 lbs.

Conversion factor........................ x 0.9774

----------------------------

Pounds of greasy wool.................... 1,954.8 lbs.

Degreased wool yield..................... 52.8%

----------------------------

Pounds of degreased wool................. 3,702.3 lbs.

Equivalent live weight................... 114 lbs.

----------------------------

Number of live sheep equivalents......... =32.5 or 33

The HTS numbers, the conversion factors, and other information used

to calculate number of live sheep equivalents apply only to the initial

referendum described herein.

The 1994 HTS classification numbers and conversion factors for

imported sheep and sheep products and wool and wool products that

importers will use in determining their volume of production are as

follows:

Table I.--HTS and Conversion Factors for Imported Sheep and Sheep

Products

------------------------------------------------------------------------

HTS CF

------------------------------------------------------------------------

Live Sheep:

0104100000................................................. 1.00

Sheep Meat:

0204100000................................................. 1.00

0204210000................................................. 1.00

0204222000................................................. 1.00

0204224000................................................. 1.00

0204232000................................................. 1.52

0204234000................................................. 1.52

0204300000................................................. 1.00

0204410000................................................. 1.00

0204422000................................................. 1.00

0204424000................................................. 1.00

0204432000................................................. 1.52

0204434000................................................. 1.52

------------------------------------------------------------------------

Wool and Wool Products

------------------------------------------------------------------------

5007106030................................................. 0.5315

5007906030................................................. 0.5315

5103100000................................................. 1.0417

5103200000................................................. 1.0417

5105100000................................................. 1.0309

5105210000................................................. 1.1111

5105290000................................................. 1.1111

5106100010................................................. 1.0417

5106100090................................................. 1.0417

5106200000................................................. 0.5208

5107100000................................................. 1.0417

5107200000................................................. 0.5208

5109102000................................................. 1.0417

5109902000................................................. 1.0417

5111112000................................................. 1.0629

5111113000................................................. 1.0629

5111117030................................................. 1.0629

5111117060................................................. 1.0629

5111191000................................................. 1.0629

5111192000................................................. 1.0629

5111196020................................................. 0.5315

5111196040................................................. 0.5315

5111196060................................................. 1.0629

5111196080................................................. 1.0629

5111200500................................................. 0.5315

5111201000................................................. 0.5315

5111209000................................................. 0.5315

5111300500................................................. 0.5315

5111301000................................................. 0.5315

5111309000................................................. 0.5315

5111903000................................................. 0.5315

5111904000................................................. 0.7972

5111905000................................................. 0.5315

5111906000................................................. 0.7972

5111909000................................................. 0.7972

5112110030................................................. 0.5315

5112110060................................................. 0.9566

5112111000................................................. 0.9566

5112112030................................................. 1.0629

5112112060................................................. 0.9566

5112192000................................................. 1.0629

5112199010................................................. 1.0629

5112199020................................................. 1.0629

5112199030................................................. 1.0629

5112199040................................................. 1.0629

5112199050................................................. 1.0629

5112199060................................................. 1.0629

5112201000................................................. 0.5315

5112202000................................................. 0.5315

5112203000................................................. 0.5315

5112301000................................................. 0.5315

5112302000................................................. 0.5315

5112303000................................................. 0.5315

5112903000................................................. 0.6378

5112904000................................................. 0.7972

5112905000................................................. 0.7972

5112909010................................................. 0.5315

5112909090................................................. 0.5315

5212111010................................................. 0.4783

5212111020................................................. 0.4783

5212116010................................................. 0.2126

5212121010................................................. 0.4783

5212121020................................................. 0.4783

5212126010................................................. 0.2126

5212131010................................................. 0.4783

5212131020................................................. 0.4783

5212136010................................................. 0.2126

5212141010................................................. 0.4783

5212141020................................................. 0.4783

5212146010................................................. 0.2126

5212151010................................................. 0.4783

5212151020................................................. 0.4783

5212156010................................................. 0.2126

5212211010................................................. 0.4783

5212211020................................................. 0.4783

5212216010................................................. 0.2126

5212221010................................................. 0.4783

5212221020................................................. 0.4783

5212226010................................................. 0.2126

5212231010................................................. 0.4783

5212231020................................................. 0.4783

5212236010................................................. 0.2126

5212241010................................................. 0.4783

5212241020................................................. 0.4783

5212246010................................................. 0.2126

5212251010................................................. 0.4783

5212251020................................................. 0.4783

5212256010................................................. 0.2126

5309212000................................................. 0.5315

5309292000................................................. 0.5315

5311002000................................................. 0.2126

5407910510................................................. 0.4783

5407910520................................................. 0.4783

5407911000................................................. 0.2126

5407920510................................................. 0.4783

5407920520................................................. 0.4783

5407921010................................................. 0.2126

5407921020................................................. 0.2126

5407930510................................................. 0.4783

5407930520................................................. 0.4783

5407931000................................................. 0.2126

5407940510................................................. 0.4783

5407940520................................................. 0.4783

5407941000................................................. 0.2126

[[Page 64301]]

5408310510................................................. 0.4783

5408310520................................................. 0.4783

5408311000................................................. 0.2126

5408320510................................................. 0.4783

5408320520................................................. 0.4783

5408321000................................................. 0.2126

5408330510................................................. 0.4783

5408330520................................................. 0.4783

5408331000................................................. 0.2126

5408340510................................................. 0.4783

5408340520................................................. 0.4783

5408341000................................................. 0.2126

5509520000................................................. 0.3646

5509610000................................................. 0.1563

5509910000................................................. 0.3646

5510200000................................................. 0.3646

5515130510................................................. 0.4783

5515130520................................................. 0.4783

5515131010................................................. 0.2126

5515131020................................................. 0.2126

5515220510................................................. 0.4783

5515220520................................................. 0.4783

5515221000................................................. 0.2126

5515920510................................................. 0.4783

5515920520................................................. 0.4783

5515921010................................................. 0.2126

5515921020................................................. 0.2126

5516310510................................................. 0.4783

5516310520................................................. 0.4783

5516311000................................................. 0.2126

5516320510................................................. 0.4783

5516320520................................................. 0.4783

5516321000................................................. 0.2126

5516330510................................................. 0.4783

5516330520................................................. 0.4783

5516331000................................................. 0.2126

5516340510................................................. 0.4783

5516340520................................................. 0.4783

5516341000................................................. 0.2126

5601290020................................................. 0.9035

5602109010................................................. 1.0629

5602109090................................................. 0.5315

5602210000................................................. 1.0629

5602903000................................................. 0.2657

5603001010................................................. 1.0629

5701101300................................................. 0.9479

5701101600................................................. 0.9479

5702101000................................................. 1.0156

5702109010................................................. 1.0156

5702311000................................................. 0.7708

5702312000................................................. 0.6563

5702411000................................................. 0.6979

5702412000................................................. 0.5729

5702512000................................................. 0.9531

5702514000................................................. 0.9010

5702912000................................................. 0.9531

5702913000................................................. 0.9531

5702914000................................................. 0.9010

5703100000................................................. 0.6313

5704100010................................................. 0.2630

5704900010................................................. 0.2630

5705002010................................................. 0.6313

5801100000................................................. 1.0629

5801902090................................................. 1.0629

5802300020................................................. 1.0629

5803901100................................................. 1.0629

5803901200................................................. 1.0629

5805001000................................................. 0.5315

5805002000................................................. 1.0629

5805002500................................................. 1.0629

5806103020................................................. 1.0629

5806391000................................................. 1.0629

5810990010................................................. 1.0629

5811001000................................................. 1.0629

5903203010................................................. 0.5315

5903903010................................................. 0.5315

6001290000................................................. 1.0629

6002209000................................................. 1.0851

6002410000................................................. 1.0851

6002490000................................................. 1.0851

6002910000................................................. 1.0851

6101100000................................................. 1.0094

6101301500................................................. 0.5047

6101900020................................................. 0.5678

6102100000................................................. 1.0094

6102301000................................................. 0.5047

6102900010................................................. 0.5678

6103110000................................................. 0.8439

6103121000................................................. 0.4823

6103122000................................................. 0.1808

6103191000................................................. 0.4823

6103191500................................................. 0.2411

6103194010................................................. 0.1206

6103194020................................................. 0.1206

6103194030................................................. 0.1206

6103194040................................................. 0.4823

6103194050................................................. 0.1206

6103194060................................................. 0.0603

6103194080................................................. 0.2411

6103210010................................................. 0.9645

6103210020................................................. 0.8439

6103210030................................................. 0.9645

6103210050................................................. 0.9645

6103210060................................................. 0.9645

6103210070................................................. 0.9645

6103230005................................................. 0.4823

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6103230010................................................. 0.4823

6103230025................................................. 0.3167

6103230030................................................. 0.4823

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6103292060................................................. 0.5425

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6103292068................................................. 0.1206

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6103331000................................................. 0.4932

6103332000................................................. 0.1233

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6103411010................................................. 0.8256

6103411020................................................. 0.8256

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6103431020................................................. 0.4718

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6103493036................................................. 0.5425

6103493060................................................. 0.6028

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6104132000................................................. 0.1233

6104191000................................................. 0.4932

6104191500................................................. 0.1233

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6104210010................................................. 0.8439

6104210030................................................. 0.8439

6104210040................................................. 0.9645

6104210060................................................. 0.9645

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6104230010................................................. 0.4823

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6104230042................................................. 0.1206

6104291010................................................. 0.1206

6104291020................................................. 0.1206

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6107992000................................................. 0.8256

6108391000................................................. 0.8167

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6109901510................................................. 0.8080

6109901520................................................. 0.8080

[[Page 64302]]

6109901530................................................. 0.8080

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[[Page 64303]]

6204699020................................................. 0.5199

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6505906040................................................. 0.4429

------------------------------------------------------------------------

The Act also requires the Secretary to hold additional referendums

if so requested by a representative group comprised of 10 percent or

more of the producers, feeders, and importers who, during a

representative period as determined by the Secretary, were engaged in

the production, feeding, importation, or processing of sheep or sheep

products. In any such referendum, if the continuation of the Order is

not approved by a majority of producers, feeders, and importers voting

in the referendum, or by producers, feeders, and importers voting in

the referendum who account for at least two-thirds of the production

represented by the persons voting in the referendum, the Secretary will

suspend or terminate the Order. While the proposed rule indicated that

the rules would also apply to any additional referendum conducted

pursuant to the Act, it has been determined that these rules would

apply only to the initial referendum and that rules for additional

referendums would be published as necessary. This conforms to recent

changes to other research and promotion programs.

The Act specifies that the initial referendum be conducted on a

date and location established by the Secretary, under a procedure by

which sheep producers, sheep feeders, and importers of sheep and sheep

products intending to vote in the referendum shall certify that they

were engaged in sheep production, sheep feeding, or importation of

sheep and sheep products during the representative period and, on the

same day, would vote in the referendum. In addition, the Act provides

that the Secretary must provide absentee ballots on request made either

in person or by mail. The initial referendum will be conducted at

county CES offices. The CES of the Department will coordinate with

State and county CES offices concerning their roles in conducting the

initial referendum.

The final rule sets forth procedures to be followed in conducting

the referendum under the Act, including definitions, supervision of the

referendum, registration, voting procedures, reporting referendum

results, and disposition of the ballots and records. The Farm Service

Agency (FSA) of the Department will assist in the conduct of the

referendum by (1) counting ballots, (2) determining the eligibility of

challenged voters, and (3) reporting referendum results.

On August 8, 1995, AMS published in the Federal Register (60 FR

40313) a proposed rule that set forth procedures to be followed in

conducting the referendum under the Act. The proposed rule included

provisions concerning definitions, supervision of the referendum,

registration, voting procedures, reporting referendum results, and

disposition of the ballots and records. It also proposed that the

initial referendum be conducted at the county CES offices and that FSA,

formerly the Agricultural Stabilization and Conservation Service of the

Department, assist in the conduct of the referendum by (1) counting

ballots, (2) determining the eligibility of challenged voters, and (3)

reporting referendum results.

The proposed rule was published (60 FR 40313, August 8, 1995) with

a request for comments to be submitted by September 7, 1995. The

Department received 26 written comments concerning the proposed

referendum procedures from individual sheep producers and sheep

feeders, as well as producer, feeder, and importer organizations and

universities. Twenty-three written comments were filed on time and

three comments were filed after the comment period closed. The late

comments generally expressed the same views as the timely comments

which are responded to herein. The commenters generally supported the

proposed rule with certain qualifications.

The substantive changes suggested by commenters are discussed

below, together with a description of the

[[Page 64304]]

substantive changes made by the Department upon review of the proposed

procedures for the conduct of the referendum. Also, the Department has

made other minor changes of a nonsubstantive nature for purposes of

clarity and accuracy. For the reader's convenience, the discussion is

organized by the topic headings of the proposed rule.

Definitions

Section 1280.621 Raw Wool

Twenty commenters suggested that the definition of ``raw wool''

should include wooltop, noils of wool, and wool waste. The Department

finds that wooltop, noils of wool, and wool waste result from the

processing of raw wool as defined in the Act and that to expand the

definition would not be consistent with the intent of the Act.

Accordingly, this suggestion is not adopted in the final rule.

Section 1280.624 Representative Period

Twenty-one commenters suggested that the representative period

should be the 1995 calendar year. The Department has determined that

the representative period should be the 12 consecutive months of

calendar year 1994 to ensure that importers have ample opportunity to

calculate their ``volume of production'' prior to casting a ballot.

This is particularly true for those persons voting absentee.

Accordingly, this suggestion is not adopted.

Section 1280.631 Volume of Production

Four commenters suggested that the importer's volume of production

should be based on imports for a single consecutive 30-day period

within the 12-month representative period, because domestic production

is based on a 30-day period. The commenters were concerned that basing

importer's volume of production on imports for an entire year would

provide importers with an advantage over domestic producers. The

Department finds that basing importer's volume of production on import

volume for a calendar year is consistent with Sec. 6(c)(4) of the Act.

Accordingly, this suggestion is not adopted.

One commenter suggested that lambs younger than 6 months of age

should be counted toward a producer's or feeder's volume of production

total because all imported sheep products are used to calculate

importers' live animal equivalents for the 12-month representative

period. The Department determined that this suggestion has merit

because all sheep and lambs in the inventory are subject to sale during

a calendar year and many are marketed at less than 6 months of age.

Accordingly, this suggestion is adopted and we have amended

Sec. 1280.631, Volume of Production, to reflect this change.

One commenter questioned whether domestic producers would be

required to use a conversion factor to determine domestic volume of

production. The Department has determined that domestic volume of

production would be based on the number of live sheep owned

continuously during a single period of at least 30 days during calendar

year 1994, and located in the United States. Accordingly, no conversion

factors are necessary for domestic producers or feeders. Two commenters

suggested that the Department review the definition of volume of

production and revise it to include an actual head count to establish

volume of production. The commenter believed this would more accurately

reflect the annual flock size of each producer. The Department reviewed

this definition and determined that the basis for establishing volume

of production is consistent with the intent of the Act. Accordingly,

this suggestion is not adopted.

Referendum

Section 1280.650 General

One commenter asked whether two-thirds of the production

represented by those persons voting in the referendum, or whether 51

percent of the simple majority vote could approve or defeat the Order.

The Act provides that the final Order will become effective if it is

approved by either a simple majority of the producers, feeders, and

importers voting in the referendum or by those voting who account for

at least two-thirds of the production represented by persons voting in

the referendum.

One commenter suggested that the simple majority vote and the

eligibility requirements that allow any sheep owner to participate in

the referendum could mean that a disproportionately high number of

hobby sheep owners will participate in the referendum and might lead to

the adoption of an Order commercial producers, feeders, and importers

are not in favor of it. The Act provides that each person who markets

sheep and sheep products is subject to the assessment provisions of the

Act. Therefore, all persons who are required to pay an assessment would

be entitled to vote in the referendum regardless of the number of sheep

they owned. Accordingly, this suggestion is not adopted.

One commenter suggested that the Order should not become operative

unless the Secretary finds that at least 40 percent of those eligible

to vote have participated in the referendum and that: (1) 65 percent of

those voting cast votes in favor of implementation of the Order, and

those so voting own the majority of the total quantity of sheep and

sheep products in the preceding year owned by all who voted in the

referendum, and (2) a majority of those who voted in favor of

implementation of the Order, and those so voting owned 65 percent or

more of the total quantity of sheep and sheep products in the preceding

year owned by all who voted in the referendum. The Act provides that

all persons who were engaged in the production, feeding, or importation

of sheep or sheep products will be eligible to vote and that each

person may cast a vote. Additionally, the Act provides that for the

Order to become effective, it has to be approved by either a simple

majority of the producers, feeders, and importers voting in the

referendum or by those voting who account for at least two-thirds of

the production represented by those persons voting in the referendum.

Accordingly, this suggestion is not adopted.

Section 1280.652 Eligibility

Twenty-four commenters suggested either that no person under the

age of 18 should be allowed to vote or that there should be some age

limitation on eligibility to vote in the referendum. The Department

finds that any person who is subject to the assessment should be

entitled to vote. Accordingly, this suggestion is not adopted.

Nineteen commenters asked if producers who also qualify as feeders

could vote once as a producer and once as a feeder. Section 1280.652 of

the rule specifically states that each producer, feeder, and importer

entity shall be entitled to cast only one ballot in the referendum. The

intent is that there is only one vote per individual or legal entity.

Thus, an individual who is both a producer and a feeder would have only

one vote unless the individual represents more than one legal entity.

One commenter suggested that a person who collects a wool incentive

check should be the only person eligible to vote. The Act specifically

designates and establishes the requirements of those persons who are

eligible to vote in the referendum. Receiving a wool incentive check

under the National Wool Act of 1954 is not a requirement of eligibility

to vote in the referendum. The Department believes that each person who

is subject to the assessment should be entitled to cast a vote.

[[Page 64305]]

Accordingly, this suggestion is not adopted.

One commenter asked why a person who owned only one sheep for any

single consecutive 30-day period in 1994 should have the same voting

privileges as a producer who makes his or her living in the sheep

business. If the Order is approved in referendum, all sales of domestic

sheep and greasy wool will be subject to the assessment under the

Order. Thus, the Department finds that any person subject to the

assessment should be entitled to vote.

One commenter questioned whether the American producers want

importers of sheep and sheep products voting in the referendum. The Act

specifies that producers, feeders, and importers, except importers of

raw wool, who were engaged in the production, feeding, or importation

of sheep and sheep products during the representative period will be

eligible to vote.

Two commenters suggested that all votes should be based on the

actual volume of production (i.e., one sheep equals one vote). The Act

clearly provides for approval of the Order based on a simple majority

vote of participants or a two-thirds majority of the production

represented by those voting in the referendum. Accordingly, this

suggestion is not adopted.

One commenter suggested that voter eligibility needed to be

clarified, but did not suggest any particular language. The Department

has determined that any person who was a sheep producer, sheep feeder,

or importer of sheep and sheep products during the representative

period is eligible to vote and shall be entitled to cast one ballot in

the referendum.

Section 1280.655 Registration Form and Ballot.

The Department, after further review of this section, determined

that the last sentence in this section beginning with ``The ballot * *

*'' and ending with ``* * * volume of production,'' should be deleted

because it duplicates the fourth sentence in this section and thus is

not necessary. Accordingly, the last sentence is deleted from this

final rule.

Additionally, the Department is clarifying this section to make it

clear that producers, feeders, and importers will enter their volume of

production on the ballot, only if they intend to also cast their ballot

based on their volume of production. Accordingly, we have amended

Sec. 1280.655 to reflect this clarification.

Section 1280.656 Registration and Voting.

One commenter suggested that a signature should not be required to

request an absentee ballot. The rule does not require a signature, but

it is the Department's intent that the request for an absentee ballot

be made only by persons who are eligible to vote. It is the

Department's expectation that nearly all written requests will be

signed. No change in the final rule is required to accommodate this

suggestion. The same commenter recommended that requests for an

absentee ballot via electronic mail (e-mail) system be accepted. Since

e-mail is available at many locations, using this method of

communication would likely facilitate requests for absentee ballots for

e-mail users in those offices that can receive e-mail. Any requests for

absentee ballots by e-mail would be subject to the same conditions that

apply to absentee ballots requested by mail or in person. Accordingly,

this suggestion is adopted.

Additional Comments

One commenter suggested that the Department use the 63 pound

average carcass weight for lambs and yearlings rather than the 57 pound

average carcass weight for mature sheep to convert imported sheep meat

to a live animal equivalent. The Department finds that the average

carcass weight for imported lambs is widely recognized as being less

than the average carcass weight of domestically slaughtered lambs and

yearlings. Therefore, in the absence of definitive imported carcass

weights and dressing percents, the Department believes that the 57

pound mature sheep weight as officially published in 1994 Livestock

Slaughter Summary in March of 1995 more nearly reflects the average

carcass weight of imported lamb and should be used for the purpose of

calculating import volume of production for this initial referendum.

Accordingly, this suggestion is not adopted.

Twenty commenters asked which base number the Department would use

if a request or petition were made by a representative group comprised

of 10 percent or more of the producers, feeders, and importers to

conduct a subsequent referendum. The Department would use the most

recent officially published Government data available at the time the

request is made.

One commenter suggested that the conversion factors for wool

products that account for fiber loss during production, fabric trim

loss, and cutting loss be clarified to account only for the loss that

is not recoverable and cannot be recycled back through the processing

system at some point in the future. After discussions with the

Department's Economic Research Service (ERS), the Department believes

that these suggestions should be considered in any future revisions of

the conversion factors that ERS may publish as an import library and

maintained and updated. The conversion factors that account for fiber

lost during processing are currently established by ERS based on

consultation with major wool manufacturers. The Department does not

intend to propose any changes to the most recent published conversion

factors for the purpose of this initial referendum. Accordingly, this

suggestion is not adopted.

Three commenters suggested that the proposed method of converting

the weight of wool represented by wool product imports is inherently

incorrect in that it (1) uses conversion factors developed for sheep

and sheep products, (2) assumes that they translate equally to wool and

wool products, and (3) will significantly understate the contribution

of wool product imports. The commenters further suggested that the

greasy wool equivalent weight of wool products should be determined by

fleece weight for both the U.S. producers and importers rather than the

live sheep weight for importers and the fleece weight for domestic

producers. Additionally, the commenters suggested that the common

denominator for determining live sheep equivalents for wool and wool

products should be the average weight of greasy wool fleece. Finally,

the commenters suggested that the Department use 7.7 pounds of greasy

wool per head as published by the Department's National Agricultural

Statistics Service in the March 29, 1995, issue of ``Wool and Mohair''

to calculate the number of live animal equivalents rather than the 114

pound of live weight as proposed by the Department. The Department

reviewed these comments carefully and determined that since domestic

volume of production is based on the number of live animals and not on

wool production that a live weight which more nearly reflects the live

weight of imported sheep would be used to calculate the number of live

sheep equivalents for both imported sheep meat and wool products.

Accordingly, this suggestion is not adopted.

Two commenters suggested that the Department review the conversion

factors to ensure that conversion factors are consistent. ERS maintains

these conversion factors as an import library, reviews these factors

periodically, and

[[Page 64306]]

makes changes whenever new or additional information is available. At

this time the Department does not anticipate changes in the conversion

factors for the purposes of the vote. Nevertheless, we welcome all

information regarding conversion factors with the goal of adding to our

knowledge of fiber contents for all wool and wool products.

Three commenters suggested that the Department initiate a fact

finding process to identify importers eligible to vote in the

referendum to ensure that all importers identified are adequately

notified of the referendum. Additionally, one commenter suggested that

voting instructions and absentee ballots be mailed to all importers.

The Department believes that producers, feeders, and importers will

have ample opportunity to learn of the referendum through industry

organizations, newspapers, industry publications, Federal Register, and

other news service resources. The Department will make information

concerning the referendum available to a variety of news outlets,

including outlets recommended by importers. An absentee voting period

will be announced when the in person voting date is announced.

Producers, feeders, and importers will request an absentee ballot from

the county CES office and mail or personally deliver the absentee

ballot to the county CES office where the absentee ballot was

requested. Accordingly, we have not adopted these suggestions as

proposed.

One commenter requested that the Department permanently establish,

through regulatory promulgation, HTS numbers subject to assessment as

part of this proposed rule. The Department published in the October 3,

1995, Federal Register (60 FR 51737) for public comment implementing

rules and regulations, which include HTS classification numbers subject

to assessment. Thus, the commenters' proposal has already been proposed

in another rulemaking.

One commenter suggested that AMS should use information available

from the U.S. Customs Service to calculate the volume vote for each

importer in the referendum rather than requiring importers to make this

calculation. The Department believes that this information should be

readily available to importer businesses through normal recordkeeping

processes. Accordingly this suggestion is not adopted.

Pursuant to 5 U.S.C. 553, it is also found and determined that good

cause exists for not postponing the effective date of this action until

30 days after publication in the Federal Register. An Order which will

be the subject of a referendum vote was published in the December 5,

1995, Federal Register (60 FR 62298). For the program to become

operational, the Order must be approved by sheep producers, sheep

feeders, and importers of sheep and sheep products voting in the

initial referendum. In order to conduct a referendum in a timely

manner, this rule should be made effective as soon as possible.

Further, interested persons were afforded a 30 day comment period on

the proposed referendum rule, and no useful purpose would be served in

delaying the effective date. Therefore, this final rule is effective on

the date of publication in the Federal Register.

Referendum Order

It is hereby directed that a referendum be conducted among eligible

sheep producers, sheep feeders, and importers of sheep and sheep

products to determine whether an Order will become effective if

approved by those eligible persons voting in the referendum. In-person

voting in the referendum will be on February 6, 1996, at the county

Cooperative Extension Service offices. Absentee ballots will be

available at those offices from January 16, 1996, through January 26,

1996. The representative period to establish voter eligibility will be

the period from January 1, 1994, through December 31, 1994.

In summary, this final rule adopts provisions of the August 8, 1995

proposed rule with the changes discussed herein and with other minor

changes made for purposes of clarity and accuracy.

List of Subjects in 7 CFR Part 1280

Administrative practice and procedure, Advertising, Agricultural

research, Marketing agreements, Sheep and sheep products, Reporting and

recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR part 1280 is added

to Chapter XI to read as follows:

PART 1280--SHEEP PROMOTION, RESEARCH, AND INFORMATION

Subpart A--[Reserved]

Subpart B--[Reserved]

Subpart C--[Reserved]

Subpart D--[Reserved]

Subpart E--Procedures for the Conduct of Referendum

Definitions

Sec.

1280.601 Act.

1280.602 Administrator.

1280.603 Carbonized wool.

1280.604 Farm Service Agency.

1280.605 Farm Service Agency County Committee.

1280.606 Farm Service Agency County Executive Director.

1280.607 Cooperative Extension Service.

1280.608 Cooperative Extension Service agent.

1280.609 Cooperative Extension Service of the U.S. Department of

Agriculture.

1280.610 Degreased wool.

1280.611 Department.

1280.612 Deputy Administrator.

1280.613 Feeder.

1280.614 Greasy wool.

1280.615 Importer.

1280.616 Order.

1280.617 Person.

1280.618 Producer.

1280.619 Public notice.

1280.620 Pulled wool.

1280.621 Raw wool.

1280.622 Referendum.

1280.623 Registration period.

1280.624 Representative period.

1280.625 Secretary.

1280.626 Sheep.

1280.627 Sheep products.

1280.628 State.

1280.629 Unit.

1280.630 United States.

1280.631 Volume of production.

1280.632 Voting period.

1280.633 Wool.

1280.634 Wool products.

Referendum

1280.650 General.

1280.651 Supervision of referendum.

1280.652 Eligibility.

1280.653 Time and place of registration and voting.

1280.654 Facilities for registering and voting.

1280.655 Registration form and ballot.

1280.656 Registration and voting procedures.

1280.657 List of registered voters.

1280.658 Challenge of voters.

1280.659 Receiving ballots.

1280.660 Canvassing ballots.

1280.661 FSA county office report.

1280.662 FSA State office report.

1280.663 Results of the referendum.

1280.664 Disposition of ballots and records.

1280.665 Instructions and forms.

Authority: 7 U.S.C. 7101-7111.

Subpart E--Procedures for the Conduct of Referendum

Definitions

Sec. 1280.601 Act.

The term Act means the Sheep Promotion, Research, and Information

Act of 1994, 7 U.S.C. 7101-7111; Public Law 103-407; 108 Statute 4210;

as approved October 22, 1994, and any amendments thereto.

Sec. 1280.602 Administrator.

The term Administrator means the Administrator of the Agricultural

Marketing Service, or any officer or

[[Page 64307]]

employee of the Department to whom there has heretofore been delegated

or may hereafter be delegated the authority to act in the

Administrator's stead.

Sec. 1280.603 Carbonized wool.

The term Carbonized wool means wool that has been immersed in a

bath, usually of mineral acids or acid salts, that destroys vegetable

matter in the wool, but does not affect the wool fibers.

Sec. 1280.604 Farm Service Agency.

The term Farm Service Agency--formerly Agricultural Stabilization

and Conservation Service (ASCS)--also referred to as ``FSA,'' means the

Farm Service Agency of the Department.

Sec. 1280.605 Farm Service Agency County Committee.

The term Farm Service Agency County Committee, also referred to as

the ``FSA County Committee or COC,'' means the group of persons within

a county elected to act as the FSA County Committee or COC.

Sec. 1280.606 Farm Service Agency County Executive Director.

The term Farm Service Agency County Executive Director also

referred as the ``FSA County Executive Director,'' means the person

employed by the FSA County Committee to execute the policies of the FSA

County Committee and be responsible for the day-to-day operations of

the county FSA office, or the person acting in such capacity.

Sec. 1280.607 Cooperative Extension Service.

The term Cooperative Extension Service, also referred to as ``CES''

means the State partner in the Cooperative Extension Service system.

Sec. 1280.608 Cooperative Extension Service Agent.

The term Cooperative Extension Service Agent, also referred to as

the ``CES Agent,'' means an employee of the Cooperative Extension

Service.

Sec. 1280.609 Cooperative Extension Service of the U.S. Department of

Agriculture.

The term Cooperative Extension Service of the U.S. Department of

Agriculture, also referred to as ``CES,'' means the Federal component

of the Cooperative Extension Service.

Sec. 1280.610 Degreased wool.

The term Degreased wool means wool from which the bulk of

impurities has been removed by processing.

Sec. 1280.611 Department.

The term Department means the U.S. Department of Agriculture.

Sec. 1280.612 Deputy Administrator.

The term Deputy Administrator means the Deputy Administrator for

Program Delivery and Field Operations, FSA, U.S. Department of

Agriculture or any officer or employee of the Department to whom there

has heretofore been delegated or may hereafter be delegated the

authority to act in the Deputy Administrator's stead.

Sec. 1280.613 Feeder.

The term Feeder means a person who feeds lambs until the lambs

reach slaughter weight.

Sec. 1280.614 Greasy wool.

The term Greasy wool means wool that has not been washed or

otherwise cleaned.

Sec. 1280.615 Importer.

The term Importer means any person who imports sheep and sheep

products into the United States.

Sec. 1280.616 Order.

The term Order means the Sheep and Wool Promotion, Research,

Education, and Information Order.

Sec. 1280.617 Person.

The term Person means any individual, group of individuals,

partnership, corporation, association, cooperative, or any other legal

entity.

Sec. 1280.618 Producer.

The term Producer means any person, other than a feeder, who owns

or acquires ownership of sheep.

Sec. 1280.619 Public notice.

The term Public notice means information regarding a referendum

which shall be provided by the Secretary, without advertising expenses,

through press releases and by State and county CES offices and county

FSA offices, by means of newspapers, electronic media, county

newsletters, and the like. Such notice shall contain the referendum

date and location, registration and voting requirements, rules

regarding absentee voting, and other pertinent information.

Sec. 1280.620 Pulled wool.

The term Pulled wool means wool that is pulled from the skin of

slaughtered sheep.

Sec. 1280.621 Raw wool.

The term Raw wool means greasy wool, pulled wool, degreased wool,

or other carbonized wool.

Sec. 1280.622 Referendum.

The term Referendum means any referendum to be conducted by the

Secretary pursuant to the Act where producers, feeders, and importers

of sheep and sheep products, except an importer of only raw wool, shall

be given the opportunity to vote.

Sec. 1280.623 Registration period.

The term Registration period means a 1 day period to be announced

by the Secretary for registration of producers, feeders, and importers

desiring to vote in a referendum. The registration period shall be the

same day as the voting period.

Sec. 1280.624 Representative period.

The term Representative period means 12 consecutive months of

calendar year 1994.

Sec. 1280.625 Secretary.

The term Secretary means the Secretary of Agriculture of the United

States or any other officer or employee of the Department to whom there

has been delegated or to whom authority may hereafter be delegated to

act in the Secretary's stead.

Sec. 1280.626 Sheep.

The term Sheep means ovine animals of any age, including lambs.

Sec. 1280.627 Sheep products.

The term Sheep products means products produced, in whole or in

part, from sheep, including wool and products containing wool fiber.

Sec. 1280.628 State.

The term State means each of the 50 States.

Sec. 1280.629 Unit.

The term Unit means each State, group of States, or class

designation that is represented on the Board.

Sec. 1280.630 United States.

The term United States means the 50 States and the District of

Columbia.

Sec. 1280.631 Volume of production

The term volume of production means the largest number of head of

domestic sheep that a domestic sheep producer or sheep feeder entity

continuously owned and that were located in the United States during

any single consecutive 30-day period during the representative period.

The term ``volume of production'' also means the number of head of

imported live sheep or the number of live sheep equivalents that an

importer imported into the United States during the representative

period, excluding imported raw wool.

Sec. 1280.632 Voting period.

The term Voting period means a 1-day period to be announced by the

Secretary for voting in the referendum.

[[Page 64308]]

Sec. 1280.633 Wool.

The term Wool means the fiber from the fleece of a sheep.

Sec. 1280.634 Wool products.

The term Wool products means products produced, in whole or in

part, from wool and products containing wool fiber.

Referendum

Sec. 1280.650 General.

(a) A referendum to determine whether eligible sheep producers,

sheep feeders, and importers of sheep and sheep products approve the

Order. Importers who only import raw wool are not eligible to vote in

the referendum.

(b) The Order shall become operational only if the Secretary

determines that the Order is approved by a majority of sheep producers,

sheep feeders, and importers of sheep and sheep products voting in the

referendum or by sheep producers, sheep feeders, and importers of sheep

and sheep products voting in the referendum who account for at least

two-thirds of the production represented by those voting in the

referendum.

(c) The initial referendum shall be conducted at the county CES

offices.

(d) The FSA of the Department shall assist in the conduct of the

initial referendum.

Sec. 1280.651 Supervision of referendum.

The Administrator shall be responsible for conducting the

referendum in accordance with this subpart.

Sec. 1280.652 Eligibility.

(a) Eligible producers, feeders, and importers. Each person who was

a sheep producer, sheep feeder, or importer of sheep and sheep products

during the representative period is entitled to register and vote in

the referendum. Each producer, feeder, and importer entity shall be

entitled to cast only one ballot in the referendum. Importers who only

import raw wool are not eligible to register and vote in the

referendum.

(b) Proxy registration and voting. Proxy registration and voting is

not authorized, except that an officer or employee of a corporate

producer, feeder, or importer, or any guardian, administrator,

executor, or trustee of a producer's, feeder's, or importer's estate,

or an authorized representative of any eligible producer, feeder, or

importer entity (other than an individual producer, feeder, or

importer), such as a corporation or partnership, may register and cast

a ballot on behalf of that entity. Any individual who registers to vote

in the referendum on behalf of any producer, feeder, or importer entity

shall certify that he or she is authorized by such entity to take such

action.

(c) Joint and group interest. A group of individuals, such as

members of a family, joint tenants, tenants in common, a partnership,

owners of community property, or a corporation engaged in sheep

production, sheep feeding, or the importation of sheep and sheep

products as a producer, feeder, or importer entity, shall be entitled

to only one vote, provided, however, that any member of a group may

register to vote as a producer, feeder, or importer if he or she is an

eligible producer, feeder, or importer separate from the group.

Sec. 1280.653 Time and place of registration and voting.

The referendum shall be held for one day on a date to be determined

by the Secretary. Eligible persons shall register and vote following

the procedures in Sec. 1280.656. Except for absentee ballots,

registration and voting shall take place during the normal business

hours of each county CES office.

Sec. 1280.654 Facilities for registering and voting.

Each county CES office shall provide:

(a) adequate facilities and space to permit producers, feeders, and

importers to register and to mark their ballots in secret,

(b) a sealed box or other suitable receptacle for registration

forms and ballots that is kept under observation during office hours

and secured at all times, and

(c) copies of the Order for review.

Sec. 1280.655 Registration form and ballot.

A ballot (Form LS-61) and a registration and certification form

(Form LS-61-2) shall be used for voting in person. The information

required on the registration and certification form includes name,

address, telephone number, and county of voter residence. The form also

contains the certification statement referenced in Sec. 1280.656(a)(1).

The ballot requires producers, feeders and importers to check a ``yes''

or ``no'' and provides space to record volume of production. If a

producer, feeder, or importer wishes to cast their ballot based on

their volume of production, the voter must record their volume of

production in the space provided on the ballot. A combined

registration/certification and ballot form (Form LS-62) shall be used

for absentee voting. The information required on the combined

registration/certification and ballot form includes name, address,

telephone number, and county of voter residence. Form LS-62 also

contains the certification statement referenced in Sec. 1280.656(b)(1)

and the absentee ballot.

Sec. 1280.656 Registration and voting procedures.

(a) Registering and voting in-person.

(1) Each producer, feeder, and importer, except importers who

import only raw wool, who wants to vote in a referendum shall register

on the day of voting at the county CES office in which the producer's,

feeder's, or importer's residence is located, or at the county CES

office that serves the county in which the producer's, feeder's, or

importer's residence is located. Producer, feeder, or importer entities

other than individuals shall register at the county CES office in the

county in which their headquarters office or business is located, or at

the county CES office that serves the county in which the entities'

headquarters office or business is located. Producers, feeders, and

importers will be required to record on the in-person voter

registration list (Form LS-61-3) their names and, if applicable, the

name of the entity they represent before they receive a registration

and certification form and ballot. To register, producers, feeders, or

importers shall complete the registration and certification form (Form

LS-61-2) and certify that:

(i) they or the entity they represent were producers, feeders, or

importers during the specified representative period;

(ii) the person voting on behalf of an entity referred to in

Sec. 1280.652 is authorized to do so; and

(iii) the volume of production listed on the ballot is a true and

accurate representation.

(2) Each eligible producer, feeder, or importer who has not voted

by means of an absentee ballot may cast a ballot in-person at the

location and time set forth in Sec. 1280.653 and on a date to be

announced by the Secretary. Eligible persons who record their name and

the entity they represent on the in-person voter registration list

(Form LS-61-3) will receive a registration and certification form (Form

LS-61-2) and a ballot (Form LS-61). Voting shall be conducted under the

supervision of the county CES agent or designee. Voters will enter the

information requested on the registration and certification form (Form

LS-61-2) as indicated above. Producers, feeders, and importers will

then mark their ballots to indicate ``yes'' or ``no'' and if voting

volume of production record their volume of production in the space

provided on the ballot. Voters shall place their

[[Page 64309]]

completed ballots in an envelope marked ``SHEEP BALLOT,'' (Form LS-61-

1) seal and place it in the completed and signed registration and

certification form/envelope marked ``SHEEP REFERENDUM,'' (Form LS-61-2)

seal that envelope and personally place it in a box marked ``Ballot

Box'' or other suitable receptacle. A copy of the applicable in-person

voter registration list (Form LS-61-3) prepared by the county CES

office shall be provided to each FSA county office for in-person voter

verification.

(b) Absentee voting. (1) Eligible producers, feeders, and importers

who are unable to vote in person may request a combined registration/

certification and absentee ballot form (Form LS-62) and two envelopes--

one marked ``SHEEP BALLOT'' (Form LS-61-1) and the other marked ``SHEEP

REFERENDUM'' (LS-62-1), by mail or in person from the county CES office

in the county in which they reside or the county CES office that serves

the county in which they reside, if individuals, or in which their main

office is located, if a corporation or other entity. These forms and

envelopes will be mailed by the county CES agent or designee to the

address provided by the prospective voter. Only one absentee

registration/certification form and absentee ballot will be provided to

each eligible producer, feeder, or importer. The forms must be

requested during a specified time period which will be announced by the

Secretary. The county CES office shall enter on the absentee voter

request list (Form LS-62-2) the name, address and entity requesting an

absentee ballot and the date the forms were requested. A copy of the

applicable absentee voter request list (Form LS-62-2) prepared by the

county CES office shall be provided to each FSA county office for

absentee voter verification.

(2) To register, eligible producers, feeders, and importers must

complete and sign the combined registration/certification form and

absentee ballot (Form LS-62) and certify that:

(i) they or the entity they represent were producers, feeders, or

importers during the specified representative period,

(ii) if voting on behalf of an entity referred to in Sec. 1280.652,

they are authorized to do so; and

(iii) the volume of production listed on the ballot is a true and

accurate representation.

(3) A producer, feeder, or importer, after completing the absentee

voter registration form and the ballot, shall remove the ballot portion

of the combined registration/certification and absentee ballot form

(Form LS-62) and seal the completed ballot in a separate envelope

marked ``SHEEP BALLOT'' (Form LS-61-1) and place the sealed envelope in

a second envelope marked ``SHEEP REFERENDUM'' (Form LS-62-1) along with

the signed registration form. Producers, feeders, and importers shall

legibly print their names on the envelope marked ``SHEEP REFERENDUM''

(Form LS-62-1), and mail or hand deliver it to the local county CES

office of the county in which they reside or the county CES office

serving the county in which they reside. In the case of a partnership,

corporation, estate, or other entity, the registration form and ballot

must be mailed or hand delivered to the county CES office in the county

in which its main office is located or the county CES office in the

county serving the county in which its main office is located.

(4) Absentee ballots must be received in the county CES office by

the close of business, 2 business days before the date of the

referendum. Absentee ballots received after that date shall be counted

as invalid ballots. Upon receiving the ``SHEEP REFERENDUM'' envelope

containing the registration form and ballot, the county CES agent or

designee shall place it, unopened in a secure ballot box. The county

CES agent or designee shall record receipt of the absentee vote on the

absentee voter request list (Form LS-62-2).

(5) A person who casts an absentee ballot that is not recorded as

being received or that is received after the deadline specified in this

section may vote in person at the appropriate county CES office on the

day of the referendum.

Sec. 1280.657 List of registered voters.

The in-person voter registration list (Form LS-61-3) and the

absentee voter request list (Form LS-62-2) shall be available for

inspection on the day of the referendum at the county CES office and

subsequently at the FSA county office. They shall be posted during

regular office hours in a conspicuous public location at the FSA county

office on the second business day following the date of the referendum.

Sec. 1280.658 Challenge of voters.

(a) Challenge period. On the day of the referendum, the names of

voters challenged shall be reported to the CES county agent, who will

refer them to the FSA county office. After that, the names of the

challenged voters shall be referred directly to the FSA county office.

A challenge may be made no later than the close of business on the

second business day after the date of the referendum.

(b) Who may challenge. Any person may challenge a voter. Any person

who wants to challenge must do so in writing and must include the full

name of the individual or other entity being challenged. Each challenge

of a voter must be made separately and each challenge must be signed by

the challenger. The Secretary may issue other guidelines as the

Secretary deems necessary.

(c) Determination of challenges. The FSA County Committee or its

representative, acting on behalf of the Administrator, shall make a

determination concerning the challenge and shall notify challenged

producers, feeders, or importers as soon as practicable, but no later

than five business days after the date of the referendum. If the FSA

County Committee or its representative, acting on behalf of the

Administrator, is unable to determine whether a person was a producer,

feeder, or importer during the representative period, or verify a

voter's recorded volume of production, it may require the person

challenged to submit records such as sales documents, import documents,

or other similar documents in order to demonstrate his or her

eligibility or to prove that the person was a producer, feeder, or

importer during the representative period and to verify that the

recorded volume of production was accurately stated.

(d) Challenged ballot. The registration and certification form

(Form LS-61-2) containing the ballots cast by producers, feeders, or

importers voting in person who are challenged shall be removed from the

ballot box and placed in a separate box until the challenge has been

resolved. The SHEEP REFERENDUM envelopes (Form LS-62-1) containing

absentee voter registration forms and absentee ballots of challenged

absentee voters also shall be removed from the ballot box and placed in

the box containing ballots of challenged producers, feeders, and

importers. A challenge to a ballot shall be deemed to have been

resolved if the determination of the FSA County Committee or its

representative is not appealed within the time allowed for appeal or

there has been a determination by FSA after an appeal.

(e) Appeal. A person declared to be ineligible to register and vote

or whose recorded volume of production has been questioned by the FSA

County Committee or its designee, acting on behalf of the

Administrator, may file an appeal at the FSA county office within three

business days after notification of such decision. Such person may be

required to provide documentation such as sales documents, import

documents, or similar documents in order to demonstrate his or her

eligibility or

[[Page 64310]]

verify the recorded volume of production. An appeal shall be determined

by the FSA County Committee, or its designee, acting on behalf of the

Administrator, as soon as practicable, but in all cases not later than

the ninth business day after the date of the referendum. The FSA County

Committee or its designee's determination on an appeal is final.

Sec. 1280.659 Receiving ballots.

A ballot shall be considered to have been received during the

voting period if:

(a) it was cast in person in the county CES office prior to the

close of business on the day of the referendum; or

(b) it was cast as an absentee ballot, and was received in the

county CES office not later than two business days before the date of

the referendum.

Sec. 1280.660 Canvassing ballots.

(a) Counting the ballots. The county CES agent or designee shall

deliver the sealed ballot box, the in-person voter registration list

(Form LS-61-3) and the absentee voter request list (Form LS-62-2) to

the FSA county office by the close of business on the first business

day following the date of the referendum. FSA county Executive Director

and the county CES agent or designee shall check the registration forms

and ballots of all voters against the in-person voter registration list

(Form LS-61-3) and the absentee voter request list (Form LS-62-2) to

determine properly registered voters. The ballots of producers,

feeders, and importers voting in person whose names are not on the in-

person voter registration list (Form LS-61-3), shall be declared

invalid. Likewise, the ballots of producers, feeders, and importers

voting absentee whose names are not on the absentee voter request list

(Form LS-62-2) shall be declared invalid. All ballots of challenged

voters declared ineligible or invalid shall be kept separate from the

other ballots and shall not be counted as valid ballots. The valid

ballots shall be counted on the tenth business day after the referendum

date. FSA county office employees shall remove the ``SHEEP BALLOT''

envelope from the registration/certification form envelopes or absentee

ballot envelopes of all eligible voters and all challenged voters

determined to be eligible. After removing all ``Sheep Ballot''

envelopes, FSA county employees shall open them and count the ballots.

The ballots shall be counted as follows:

(1) Number of eligible producers, feeders, and importers casting

valid ballots;

(2) Number of producers, feeders, and importers favoring the Order;

(3) Number of producers, feeders, and importers not approving the

Order;

(4) Volume of production recorded by producers, feeders, and

importers approving the Order;

(5) Volume of production of producers, feeders, and importers not

approving the Order;

(6) Number of challenged ballots;

(7) Number of challenged ballots deemed ineligible;

(8) Number of invalid ballots; and

(9) Number of spoiled ballots.

(b) Invalid Ballots. Ballots shall be declared invalid if a

producer, feeder, or importer voting in-person has failed to sign the

voter registration list (Form LS-61-3) or an absentee voter's name is

not recorded on the absentee voter request list (Form LS-62-2), or the

registration form or ballot was incomplete or incorrectly completed.

(c) Spoiled Ballots. Ballots shall be considered spoiled if they

are mutilated or marked in such a way that the ``yes'' or ``no'' vote

is illegible. Spoiled ballots shall not be considered as approving or

disapproving the Order, or as a ballot cast in the referendum.

(d) Confidentiality. All ballots shall be confidential and the

contents of the ballots shall not be divulged except as the Secretary

may direct. The public may witness the opening of the ballot box and

the counting of the votes but may not interfere with the process.

Sec. 1280.661 FSA county office report.

The FSA county office shall notify the FSA State office of the

results of the referendum. Each FSA county office shall transmit the

results of the referendum in its county to the FSA State office. Such

report shall include the information listed in Sec. 1280.660(a). The

results of the referendum in each county may be made available to the

public upon notification from the Deputy Administrator FSA that the

final results have been released by the Secretary. A copy of the report

of results shall be posted for 30 days in the FSA county office in a

conspicuous place accessible to the public, and a copy shall be kept on

file in the FSA county office for a period of at least 12 months after

the referendum.

Sec. 1280.662 FSA State office report.

Each FSA State office shall transmit to the Deputy Administrator,

FSA, a written summary of the results of the referendum received from

all the FSA county offices within the State. The summary shall include

the information on the referendum results contained in the reports from

all county offices within each State, and shall be certified by the FSA

State Executive Director. The FSA State office shall maintain a copy of

the summary where it shall be available for public inspection for a

period of not less than 12 months beginning upon notification from the

Deputy Administrator, FSA, that the final results have been released by

the Secretary.

Sec. 1280.663 Results of the referendum.

(a) The Deputy Administrator, FSA, shall submit the results of the

referendum to the Administrator. The Administrator shall prepare and

submit to the Secretary a report of the results of the referendum. The

results of any referendum shall be issued by the Department in an

official press release and published in the Federal Register. State

reports and related papers shall be available for public inspection in

the office of the Marketing Programs Branch, Livestock and Seed

Division, AMS, USDA, Room 2606, South Agriculture Building, 14th and

Independence Avenue, SW., Washington, DC.

(b) If the Secretary deems it necessary, the report of any State or

county shall be reexamined and checked by such persons as may be

designated by the Deputy Administrator, FSA, or the Secretary.

Sec. 1280.664 Disposition of ballots and records.

Each FSA county Executive Director shall place in sealed containers

marked with the identification of the referendum the in-person voter

registration list, absentee voter request list, voted ballots,

challenged registration/certification forms/envelopes, challenged

absentee voter registration forms, challenged ballots found to be

ineligible, invalid ballots, spoiled ballots, and county summaries.

Such records shall be placed under lock in a safe place under the

custody of the FSA county Executive Director for a period of not less

than twelve months after the referendum. If no notice to the contrary

is received from the Deputy Administrator, FSA, by the end of such

time, the records shall be destroyed.

Sec. 1280.665 Instructions and forms.

The Administrator is hereby authorized to prescribe additional

instructions and forms not inconsistent with the provisions of this

subpart to govern the conduct of the referendum.

[[Page 64311]]

Dated: December 8, 1995.

Lon Hatamiya,

Administrator, Agricultural Marketing Service.

[FR Doc. 95-30491 Filed 12-14-95; 8:45 am]

BILLING CODE 3410-2-P