[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2500 Engrossed in Senate (ES)]

103d CONGRESS

  2d Session

                                S. 2500

_______________________________________________________________________

                                 AN ACT

  To enable producers and feeders of sheep and importers of sheep and 
    sheep products to develop, finance, and carry out a nationally 
 coordinated program for sheep and sheep product promotion, research, 
                and information, and for other purposes.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
103d CONGRESS
  2d Session
                                S. 2500

_______________________________________________________________________

                                 AN ACT


 
  To enable producers and feeders of sheep and importers of sheep and 
    sheep products to develop, finance, and carry out a nationally 
 coordinated program for sheep and sheep product promotion, research, 
                and information, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sheep Promotion, Research, and 
Information Act of 1994''.

SEC. 2. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) sheep and sheep products are important goods;
            (2) the production of sheep and sheep products play a 
        significant role in the economy of the United States in that 
        sheep and sheep products are produced throughout the United 
        States and used by millions of people throughout the United 
        States and foreign countries;
            (3) sheep and sheep products must be high quality, readily 
        available, handled properly, and marketed efficiently to ensure 
        that consumers have an adequate supply of sheep products;
            (4) the maintenance and expansion of existing markets and 
        development of new markets for sheep and sheep products are 
        vital to the welfare of sheep producers and persons concerned 
        with marketing, using, and producing sheep and sheep products, 
        as well as to the general economy of the United States, and 
        necessary to ensure the ready availability and efficient 
        marketing of sheep and sheep products;
            (5) there exist established State organizations conducting 
        sheep and sheep product promotion, research, and industry and 
        consumer education programs that are invaluable to the efforts 
        of promoting the consumption of sheep and sheep products;
            (6) the cooperative development, financing, and 
        implementation of a coordinated national program of sheep and 
        sheep product promotion, research, consumer information, 
        education, and industry information are necessary to maintain 
        and expand existing markets and develop new markets for sheep 
        and sheep products; and
            (7) sheep and sheep products move in interstate and foreign 
        commerce, and sheep and sheep products that do not move in such 
        channels of commerce directly burden or affect interstate 
        commerce in sheep and sheep products.
    (b) Policy.--It is the policy of Congress that it is in the public 
interest to authorize the establishment, through the exercise of the 
powers provided in this Act, of an orderly procedure for developing, 
financing (through adequate assessments on sheep and sheep products 
produced or imported into the United States), and carrying out an 
effective, continuous, coordinated program of promotion, research, 
consumer information, education, and industry information designed to--
            (1) strengthen the position of the sheep and sheep product 
        industry in the marketplace;
            (2) maintain and expand existing domestic and foreign 
        markets and uses for sheep and sheep products; and
            (3) develop new markets and uses for sheep and sheep 
        products.
    (c) Construction.--Nothing in this Act provides for the control of 
production, or otherwise limits, the right of any person to produce 
sheep or sheep products.

SEC. 3. DEFINITIONS.

    As used in this Act (unless the context clearly requires 
otherwise):
            (1) Board.--The term ``Board'' means the National Sheep 
        Promotion, Research, and Information Board established under 
        section 5(b).
            (2) 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 fibres.
            (3) Consumer information.--The term ``consumer 
        information'' means nutritional data and other information that 
        will assist consumers and other persons in making evaluations 
        and decisions regarding the purchase, preparation, or use of 
        sheep products.
            (4) Customs service.--The term ``Customs Service'' means 
        United States Customs Service of the Department of the 
        Treasury.
            (5) Degreased wool.--The term ``degreased wool'' means wool 
        from which the bulk of impurities has been removed by 
        processing.
            (6) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (7) Education.--The term ``education'' means activities 
        providing information relating to the sheep industry or sheep 
        products to producers, feeders, importers, consumers, and other 
        persons.
            (8) Executive committee.--The term ``Executive Committee'' 
        means the Executive Committee established under section 5(g).
            (9) Exporter.--The term ``exporter'' means any person who 
        exports domestic live sheep or greasy wool from the United 
        States.
            (10) Feeder.--The term ``feeder'' means a person who feeds 
        lambs until the lambs reach slaughter weight.
            (11) Greasy wool.--The term ``greasy wool'' means wool that 
        has not been washed or otherwise cleaned.
            (12) Handler.--The term ``handler'' means any person who 
        purchases and markets greasy wool.
            (13) Importer.--The term ``importer'' means any person who 
        imports sheep or sheep products into the United States.
            (14) Industry information.--The term ``industry 
        information'' means information and programs that will lead to 
        increased efficiency in processing and the development of new 
        markets, marketing strategies, increased marketing efficiency, 
        and activities to enhance the image of sheep or sheep products 
        on a national or international basis.
            (15) Order.--The term ``order'' means a sheep and wool 
        promotion, research, education, and information order issued 
        under section 4.
            (16) Person.--The term ``person'' means any individual, 
        group of individuals, partnership, corporation, association, 
        cooperative, or any other legal entity.
            (17) Processor.--The term ``processor'' means any person 
        who slaughters sheep or processes greasy wool into degreased 
        wool.
            (18) Producer.--The term ``producer'' means any person, 
        other than a feeder, who owns or acquires ownership of sheep.
            (19) Producer information.--The term ``producer 
        information'' means activities designed to provide producers, 
        feeders, and importers with information relating to production 
        or marketing efficiencies or developments, program activities, 
        or other information that would facilitate an increase in the 
        consumption of sheep or sheep products.
            (20) Promotion.--The term ``promotion'' means any action 
        (including paid advertising) to advance the image and 
        desirability of sheep or sheep products to improve the 
        competitive position, and stimulate sales, of sheep products in 
        the domestic and international marketplace.
            (21) Pulled wool.--The term ``pulled wool'' means wool that 
        is pulled from the skin of a slaughtered sheep.
            (22) Qualified state sheep board.--The term ``qualified 
        State sheep board'' means a sheep and wool promotion entity 
        that--
                    (A) is authorized by State statute or is otherwise 
                organized and operating within a State;
                    (B) receives voluntary contributions or dues and 
                conducts promotion, research, or consumer information 
                programs with respect to sheep or wool, or both; and
                    (C) is recognized by the Board as the sheep and 
                wool promotion entity within the State;
        except that not more than 1 qualified State sheep board shall 
        exist in any State at any 1 time.
            (23) Raw wool.--The term ``raw wool'' means greasy wool, 
        pulled wool, degreased wool, or carbonized wool.
            (24) Research.--The term ``research'' means development 
        projects and studies relating to the production (including the 
        feeding of sheep), processing, distribution, or use of sheep or 
        sheep products to encourage, expand, improve, or make more 
        efficient the marketing of sheep or sheep products.
            (25) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (26) Sheep.--The term ``sheep'' means ovine animals of any 
        age, including lambs.
            (27) Sheep products.--The term ``sheep products'' means 
        products produced, in whole or in part, from sheep, including 
        wool and products containing wool fiber.
            (28) State.--The term ``State'' means each of the 50 
        States.
            (29) Unit.--The term ``unit'' means each State, group of 
        States, or class designation that is represented on the Board.
            (30) United states.--The term ``United States'' means the 
        50 States and the District of Columbia.
            (31) Wool.--The term ``wool'' means the fiber from the 
        fleece of a sheep.
            (32) Wool products.--The term ``wool products'' means 
        products produced, in whole or in part, from wool and products 
        containing wool fiber.

SEC. 4. ISSUANCE AND AMENDMENT OF ORDERS.

    (a) In General.--Subject to subsection (b), the Secretary shall 
issue orders under this Act applicable to producers, feeders, 
importers, handlers, and purchasers of sheep and sheep products. Any 
order shall be national in scope. Not more than 1 order shall be in 
effect under this Act at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The Secretary may 
        propose the issuance of an order under this Act, or an 
        association of producers may request the issuance of, and 
        submit a proposal for, an order.
            (2) Notice and comment concerning proposed order.--Not 
        later than 60 days after the receipt of a request and proposal 
        for an order under paragraph (1), the Secretary shall publish a 
        proposed order and give due notice and opportunity for public 
        comment on the proposed order.
            (3) Issuance of orders.--After notice and opportunity for 
        public comment are given as provided in paragraph (2), the 
        Secretary shall issue an order, taking into consideration the 
        comments received, that includes provisions necessary to ensure 
        that the order is in conformity with this Act. The order shall 
        be issued not later than 180 days following publication of the 
        proposed order.
            (4) Referendum.--The order shall go into effect only if the 
        order is approved by producers, feeders, and importers in a 
        referendum conducted under section 6.
    (c) Amendments.--The Secretary, from time to time, may amend any 
order issued under this Act.

SEC. 5. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order issued under this Act shall contain the 
terms and conditions specified in this section.
    (b) Establishment and Membership of Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a National 
        Sheep Promotion, Research, and Information Board to administer 
        the order. Members of the Board shall be appointed by the 
        Secretary from nominations provided in accordance with this 
        subsection. The cumulative number of seats on the Board shall 
        be 120 and shall be apportioned as follows:
                    (A) Producers.--Producers shall be appointed to the 
                Board to represent States, with each State represented 
                by the following number of members:
  

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                    (B) Feeders.--The feeder sheep industry shall be 
                represented on the Board by 10 members.
                    (C) Importers.--Importers shall be represented on 
                the Board by 25 members.
                    (D) Alternates.--The order shall provide that a 
                unit represented by only 1 member may have an alternate 
                member appointed to ensure representation at meetings 
                of the Board.
            (2) Nominations.--
                    (A) Producers.--The Secretary shall appoint 
                producers to represent units established under 
                paragraph (1)(A) from nominations submitted by eligible 
                organizations certified under subsection (c)(3). An 
                eligible organization may submit only nominations from 
                the membership of the organization for the unit in 
                which the organization is located. To be represented on 
                the Board, each eligible organization shall submit to 
                the Secretary at least 1.5 nominations for each 
                appointment to the Board for which the unit is entitled 
                to representation, as determined under paragraph 
                (1)(A). If a unit is entitled to 1 appointment on the 
                Board, the unit shall submit at least 2 nominations for 
                the appointment.
                    (B) Feeders.--The Secretary shall appoint 
                representatives of the feeder sheep industry to seats 
                established under paragraph (1)(B) from nominations 
                submitted by qualified national organizations that 
                represent the feeder sheep industry. To be represented 
                on the Board, the industry shall provide at least 1.5 
                nominations for each appointment to the Board for which 
                the feeder sheep industry is entitled to 
                representation, as determined under paragraph (1)(B).
                    (C) Importers.--The Secretary shall appoint 
                importers to seats established under paragraph (1)(C) 
                from nominations submitted by qualified organizations 
                that represent importers, as determined by the 
                Secretary. To be represented on the Board, importers 
                shall provide at least 1.5 nominations for each 
                appointment to the Board for which importers are 
                entitled to representation, as determined under 
                paragraph (1)(C).
    (c) Method for Obtaining Nominations.--
            (1) Initially established board.--
                    (A) Producer nominations.--The Secretary shall 
                solicit nominations for each seat on the initially 
                established Board to which a unit is entitled to 
                representation from eligible organizations certified 
                under paragraph (3). If no such organization exists in 
                the unit, the Secretary shall solicit nominations for 
                appointments in such manner as the Secretary determines 
                appropriate.
                    (B) Feeder and importer nominations.--The Secretary 
                shall solicit nominations for each seat for which 
                feeders or importers are entitled to representation 
                from organizations that represent feeders and 
                importers, respectively. In determining whether an 
                organization is eligible to submit nominations under 
                this subparagraph, the Secretary shall determine 
                whether--
                            (i) the active membership of the 
                        organization includes a significant number of 
                        feeders or importers in relation to the total 
                        membership of the organization;
                            (ii) there is evidence of stability and 
                        permanency of the organization; and
                            (iii) the organization has a primary and 
                        overriding interest in representing the feeder 
                        or importer segment of the sheep industry.
            (2) Subsequent appointment.--
                    (A) Producer nominations.--The solicitation of 
                nominations for subsequent appointment to the Board 
                from eligible organizations certified under paragraph 
                (3) shall be initiated by the Secretary, with the Board 
                securing the nominations for the Secretary.
                    (B) Feeder and importer nominations.--The 
                solicitation of feeder and importer nominations for 
                seats on the Board shall be made by the Secretary in 
                accordance with paragraph (1)(B).
            (3) Certification of organizations.--
                    (A) In general.--The eligibility of any 
                organization to represent producers, and to participate 
                in the making of nominations to represent producers 
                under this section, shall be certified by the 
                Secretary. The Secretary shall certify any organization 
                that the Secretary determines meets the eligibility 
                criteria established by the Secretary under this 
                paragraph. An eligibility determination of the 
                Secretary under this paragraph shall be final.
                    (B) Basis for certification.--Certification under 
                this paragraph shall be based, in addition to other 
                available information, on a factual report submitted by 
                the organization, that shall contain information 
                considered relevant and specified by the Secretary, 
                including--
                            (i) the geographic territory covered by the 
                        active membership of the organization;
                            (ii) the nature and size of the active 
                        membership of the organization, including the 
                        proportion of the total number of active 
                        producers represented by the organization;
                            (iii) evidence of stability and permanency 
                        of the organization;
                            (iv) sources from which the operating funds 
                        of the organization are derived;
                            (v) the functions of the organization; and
                            (vi) the ability and willingness of the 
                        organization to further the aims and objectives 
                        of this Act.
                    (C) Primary considerations.--A primary 
                consideration in determining the eligibility of an 
                organization under this paragraph shall be whether--
                            (i) the membership of the organization 
                        consists primarily of producers who own a 
                        substantial quantity of sheep; and
                            (ii) an interest of the organization is in 
                        the production of sheep.
    (d) Administration.--
            (1) Terms.--Each appointment to the Board shall be for a 
        term of 3 years, except that appointments to the initially 
        established Board shall be proportionately for 1-year, 2-year, 
        and 3-year terms. No person may serve more than 2 consecutive 
        3-year terms, except that an elected officer of the Board shall 
        not be subject to this sentence while the officer holds office.
            (2) Compensation.--A Board member shall serve without 
        compensation, but shall be reimbursed for the reasonable 
        expenses of the member incurred in performing the duties of the 
        Board.
            (3) Meetings.--The order shall provide for at least an 
        annual meeting of the Board and such additional meetings of the 
        Board as may be required.
    (e) Powers and Duties of the Board.--The order shall define the 
powers and duties of the Board and shall include the power and duty--
            (1) to elect officers of the Board, including a 
        Chairperson, Vice Chairperson, and Secretary;
            (2) to administer the order in accordance with the terms 
        and provisions of the order;
            (3) to recommend regulations to effectuate the terms and 
        provisions of the order;
            (4) to elect members of the Board to serve on the Executive 
        Committee;
            (5) to approve or reject budgets submitted by the Executive 
        Committee;
            (6) on approval, to submit the budgets to the Secretary for 
        the approval or disapproval of the Secretary;
            (7) to contract with entities, if necessary, to carry out 
        plans or projects in accordance with this Act;
            (8) to conduct programs of promotion, research, consumer 
        information, education, industry information, and producer 
        information;
            (9) to receive, investigate, and report to the Secretary 
        complaints of violations of the order;
            (10) to recommend to the Secretary amendments to the order;
            (11) to provide the Secretary with prior notice of meetings 
        of the Board to permit the Secretary, or a designated 
        representative, to attend the meetings;
            (12) to provide, not less than annually, a report to 
        producers, feeders, and importers accounting for funds expended 
        by the Board and describing programs carried out under this 
        Act, and to make the report available to the public on request;
            (13) to establish 7 regions that, to the extent 
        practicable, contain geographically contiguous States and 
        approximately equal numbers of producers and sheep production;
            (14) to employ or retain necessary staff; and
            (15) to invest funds in accordance with subsection (k).
    (f) Budgets.--
            (1) In general.--The order shall provide that the Board 
        shall review budgets submitted by the Executive Committee, on a 
        fiscal year basis, of anticipated expenses and disbursements by 
        the Board, including probable costs of administration and 
        promotion, research, consumer information, education, industry 
        information, and producer information projects. On approval by 
        the Board, the Board shall submit the budget to the Secretary 
        for the approval of the Secretary.
            (2) Limitation.--No expenditure of funds may be made by the 
        Board unless the expenditure is authorized under a budget or 
        budget amendment approved by the Secretary.
    (g) Executive Committee.--
            (1) Establishment.--The order shall establish an Executive 
        Committee to administer the terms and provisions of the order, 
        as provided in this subsection, under the direction of the 
        Board and consistent with the policies determined by the Board.
            (2) Membership.--The Executive Committee shall be composed 
        of 14 members, of which--
                    (A) 11 members shall be elected by the Board on an 
                annual basis, of which--
                            (i) 7 members shall represent producers, 
                        with 1 member representing each of the regions 
                        established in the order;
                            (ii) 1 member shall represent feeders; and
                            (iii) 3 members shall represent importers; 
                        and
                    (B) 3 members shall be the Chairperson, Vice 
                Chairperson, and Secretary of the Board.
            (3) Powers and duties.--
                    (A) Plans or projects.--The Executive Committee 
                shall develop plans or projects of promotion, research, 
                consumer information, education, industry information, 
                and producer information, which shall be paid for with 
                assessments collected by the Board. The plans or 
                projects shall not become effective until the plans or 
                projects are approved by the Secretary.
                    (B) Budgets.--The Executive Committee shall be 
                responsible for developing and submitting to the Board, 
                for the approval of the Board, budgets, on a fiscal 
                year basis, of the anticipated expenses and 
                disbursements of the Board, including probable costs of 
                promotion, research, consumer information, education, 
                industry information, and producer information 
                projects. The Board shall approve or disapprove a 
                budget submitted by the Executive Committee, and, if 
                approved, shall submit the budget to the Secretary for 
                the approval of the Secretary.
            (4) Terms.--A term of appointment to the Executive 
        Committee shall be for 1 year.
            (5) Chairperson.--The Chairperson of the Board shall serve 
        as Chairperson of the Executive Committee.
            (6) Quorum.--A quorum of the Executive Committee shall 
        consist of 8 members.
    (h) Expenses, Contracts, and Agreements.--
            (1) Expenses.--The order shall provide that the Board shall 
        be responsible for all expenses of the Board and the Executive 
        Committee.
            (2) Contracts and agreements.--A contract or agreement 
        entered into by the Board under subsection (e)(7) shall provide 
        that--
                    (A) the contracting party shall develop and submit 
                to the Board a plan or project, together with a budget 
                or budgets that provides estimated costs to be incurred 
                for the plan or project;
                    (B) the plan or project, and the contract or 
                agreement, shall not become effective until the plan or 
                project has been approved by the Secretary; and
                    (C) the contracting party shall--
                            (i) keep accurate records of all of the 
                        transactions of the party;
                            (ii) account for funds received and 
                        expended, including staff time, salaries, and 
                        expenses expended on behalf of Board 
                        activities;
                            (iii) make periodic reports to the Board of 
                        activities conducted; and
                            (iv) make such other reports as the Board 
                        or the Secretary may require.
    (i) Assessments.--
            (1) Sheep purchases.--
                    (A) In general.--The order shall provide that each 
                person making payment to a producer or feeder for sheep 
                purchased from the producer or feeder shall, in the 
                manner prescribed by the order, collect an assessment 
                from the producer or feeder on each sheep sold by the 
                producer or feeder.
                    (B) Processing.--Any person purchasing sheep for 
                processing shall collect the assessment from the seller 
                and remit the assessment to the Board in the manner 
                prescribed by the order.
                    (C) Rate.--
                            (i) In general.--Except as provided in 
                        clause (ii), the rate of assessment under this 
                        paragraph shall be 1 cent per pound of live 
                        sheep sold.
                            (ii) Exception.--The rate of assessment 
                        under this paragraph may be raised or lowered 
                        not more than \15/100\ of a cent per pound in 
                        any 1 year, as recommended by the Executive 
                        Committee and approved by the Board and the 
                        Secretary, except that the rate of assessment 
                        under this paragraph shall not exceed 2.5 cents 
                        per pound of live sheep sold.
            (2) Wool purchases.--
                    (A) In general.--The order shall provide that each 
                person making payment to a producer, feeder, or handler 
                of wool for wool purchased from the producer, feeder, 
                or handler shall, in the manner prescribed by the 
                order, collect an assessment on each pound of greasy 
                wool sold.
                    (B) Processing.--Any person purchasing greasy wool 
                for processing shall collect the assessment and remit 
                the assessment to the Board in the manner prescribed by 
                the order.
                    (C) Rate.--
                            (i) In general.--Except as provided in 
                        clause (ii), the rate of assessment under this 
                        paragraph shall be 2 cents per pound of greasy 
                        wool.
                            (ii) Exception.--The rate of assessment 
                        under this paragraph may be raised or lowered 
                        not more than \2/10\ of a cent per pound in any 
                        1 year, as recommended by the Executive 
                        Committee and approved by the Board and the 
                        Secretary, except that the rate of assessment 
                        under this paragraph shall not exceed 4 cents 
                        per pound of greasy wool.
            (3) Direct processing.--The order shall provide that any 
        person processing or causing to be processed sheep or sheep 
        products of that person's own production and marketing shall--
                    (A) pay an assessment on the sheep or sheep 
                products at the time of sale at a rate equivalent to 
                the rate provided for in paragraph (1) or (2), as 
                appropriate; and
                    (B) remit the assessment to the Board in the manner 
                prescribed by the order.
            (4) Exports.--The order shall provide that any person 
        exporting live sheep or greasy wool shall--
                    (A) pay the assessment on the sheep or greasy wool 
                at the time of export at a rate equivalent to the rate 
                provided for in paragraph (1) or (2), as appropriate; 
                and
                    (B) remit the assessment to the Board in the manner 
                prescribed by the order.
            (5) Imports.--
                    (A) In general.--The order shall provide that any 
                person importing sheep or sheep product, and any person 
                importing wool or products containing wool, into the 
                United States shall pay an assessment to the Board in 
                the manner prescribed by the order, except that this 
                paragraph shall not apply to raw wool that is imported 
                into the United States.
                    (B) Collection.--The Customs Service shall collect 
                the assessment required under this paragraph and remit 
                the assessment to the Secretary for disbursement to the 
                Board.
                    (C) Rate for sheep and sheep products.--
                            (i) In general.--Except as provided in 
                        subparagraph (B), the rate of assessment under 
                        this paragraph for sheep and sheep products 
                        shall be--
                                    (I) in the case of a live sheep, 1 
                                cent per pound; and
                                    (II) in the case of a sheep 
                                product, the equivalent of 1 cent per 
                                pound of live sheep, as determined by 
                                the Secretary in consultation with the 
                                domestic sheep industry.
                            (ii) Exception.--The rate of assessment 
                        under this subparagraph may be raised or 
                        lowered not more than \15/100\ cent per pound 
                        in any 1 year, as recommended by the Executive 
                        Committee and approved by the Board and the 
                        Secretary, except that the rate of assessment 
                        under this subparagraph shall not exceed 2.5 
                        cents per pound.
                    (D) Rate for wool and wool products.--
                            (i) In general.--Except as provided in 
                        clause (ii), the rate of assessment under this 
                        paragraph for wool and products containing 
                        wool, shall be 2 cents per pound of degreased 
                        wool or the equivalent of degreased wool.
                            (ii) Exception.--The rate of assessment 
                        under this subparagraph may be raised or 
                        lowered not more than \2/10\ cent per pound in 
                        any 1 year, as recommended by the Executive 
                        Committee and approved by the Board and the 
                        Secretary, except that the rate of assessment 
                        under this subparagraph shall not exceed 4 
                        cents per pound of degreased wool or the 
                        equivalent of degreased wool.
            (6) Qualified state sheep boards.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the order shall provide that 20 percent of the 
                total assessments collected by the Board on the 
                marketing of domestic sheep and domestic sheep products 
                in any 1 year from a State shall be returned to the 
                qualified State sheep board of the State.
                    (B) Exception.--No qualified State sheep board 
                shall receive less than $2,500 under subparagraph (A) 
                in any year.
            (7) De minimis imports.--The Secretary may issue 
        regulations that--
                    (A) exclude certain imported materials or products 
                that contain de minimis content levels of sheep or 
                sheep products; and
                    (B) waive the assessment due on the materials or 
                products.
            (8) Use of assessments.--
                    (A) In general.--The order shall provide that 
                assessments received by the Board shall be used by the 
                Board for the payment of expenses incurred in 
                administering the order, with authorization for a 
                reasonable reserve.
                    (B) Reimbursement of secretary.--The Secretary 
                shall be reimbursed for costs incurred in implementing 
                and administering the order.
    (j) Books and Records of Board.--
            (1) In general.--The order shall require the Board to--
                    (A) maintain such books and records as the 
                Secretary may prescribe, which shall be available to 
                the Secretary for inspection and audit;
                    (B) prepare and submit to the Secretary, from time 
                to time, such reports as the Secretary may prescribe; 
                and
                    (C) account for the receipt and disbursement of all 
                funds entrusted to the Board.
            (2) Audit.--The Board shall cause books and records of the 
        Board related to the order to be audited by an independent 
        auditor at the end of each fiscal year. The Board shall submit 
        a report of the audit to the Secretary.
    (k) Investment of Funds.--
            (1) In general.--The order shall provide that the Board may 
        invest, pending disbursement, funds the Board receives under 
        the order, only in--
                    (A) obligations of the United States or any agency 
                of the United States;
                    (B) general obligations of any State or any 
                political subdivision of a State;
                    (C) any interest-bearing account or certificate of 
                deposit of a bank that is a member of the Federal 
                Reserve System; or
                    (D) obligations fully guaranteed as to principal 
                and interest by the United States.
            (2) Use of income.--Income from any investment under 
        paragraph (1) may be used for any purpose for which the 
        invested funds may be used.
    (l) Prohibition on Use of Funds.--
            (1) In general.--Except as provided in paragraph (2), the 
        order shall prohibit any funds collected by the Board under the 
        order from being used in any manner for the purpose of 
        influencing legislation or government action or policy.
            (2) Exceptions.--Paragraph (1) shall not apply to--
                    (A) the development and recommendation to the 
                Secretary of amendments to the order; or
                    (B) the communication to appropriate government 
                officials, in response to a request made by the 
                officials, of information relating to the conduct, 
                implementation, or results of promotion, research, 
                consumer information, education, industry information, 
                or producer information activities under the order.
            (3) False or misleading claims.--A plan or project 
        conducted under this Act shall not make false or misleading 
        claims on behalf of sheep or sheep products or against a 
        competing product.
    (m) Books and Records.--
            (1) In general.--The order shall require that each person 
        making payment to a producer, feeder, or handler for sheep or 
        sheep products, each importer and exporter of sheep or sheep 
        products, and each person marketing sheep products of the 
        person's own production to maintain, and make available for 
        inspection, such books and records as may be required by the 
        order and file reports at the time, in the manner, and having 
        the content prescribed by the order.
            (2) Use of information.--
                    (A) In general.--Information from the records or 
                reports shall be made available to the Secretary for 
                the administration or enforcement of this Act, or any 
                order or regulation issued under this Act.
                    (B) Other information.--The Secretary shall 
                authorize the use under this Act of information 
                regarding persons paying producers, feeders, importers, 
                handlers, or processors that is accumulated under a law 
                or regulation other than this Act or a regulation 
                issued under this Act.
            (3) Confidentiality.--
                    (A) In general.--Except as otherwise provided in 
                this Act, all information obtained under paragraph (1) 
                or (2) shall be kept confidential by all officers and 
                employees of the Department and of the Board.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed only if--
                            (i) the Secretary considers the information 
                        relevant;
                            (ii) the information is revealed in a 
                        judicial proceeding or administrative hearing 
                        brought at the direction or on the request of 
                        the Secretary or to which the Secretary or any 
                        officer of the Department is a party; and
                            (iii) the information relates to this Act.
                    (C) General statements.--Nothing in this paragraph 
                prohibits--
                            (i) the issuance of general statements, 
                        based on the reports, of the number of persons 
                        subject to an order or statistical data 
                        collected from the persons, which statements do 
                        not identify the information furnished by any 
                        person; or
                            (ii) the publication, by direction of the 
                        Secretary, of the name of any person violating 
                        any order and a statement of the particular 
                        provisions of the order violated by the person.
                    (D) Administration.--No information obtained under 
                this Act may be made available to any agency or officer 
                of the Federal Government for any purpose other than 
                the implementation of this Act or any investigatory or 
                enforcement action necessary for the implementation of 
                this Act.
                    (E) Penalty.--Any person who willfully violates 
                this paragraph, on conviction, shall be subject to a 
                fine of not more than $1,000 or to imprisonment for not 
                more than 1 year, or both, and if the person is an 
                officer or employee of the Board or the Department, 
                shall be removed from office.
    (n) Other Terms and Conditions.--The order shall provide such terms 
and conditions, not inconsistent with this section, as are necessary to 
carry out the order, including provisions for the assessment of a 
penalty for the late payment of an assessment due under the order.

SEC. 6. REFERENDA.

    (a) Initial Referendum.--
            (1) In general.--Following the issuance of an order under 
        section 4, the Secretary shall conduct a referendum among 
        producers, feeders, and importers who, during a representative 
        period as determined by the Secretary, have been engaged in the 
        production, feeding, or importation of sheep or sheep products 
        for the purpose of ascertaining whether the order shall go into 
        effect.
            (2) Approval of order.--The order shall become effective 
        only if the Secretary determines that the order has been 
        approved by not less than a majority of the producers, feeders, 
        and importers voting in the referendum or at least \2/3\ of the 
        production represented by persons voting in the referendum.
    (b) Additional Referenda.--
            (1) In general.--After the initial referendum, on the 
        request of a representative group comprising 10 percent or more 
        of the producers, feeders, and importers who, during a 
        representative period as determined by the Secretary, have been 
        engaged in the production, feeding, importation, or processing 
        of sheep or sheep products, the Secretary shall conduct a 
        referendum of producers, feeders, and importers to determine 
        whether the producers, feeders, and importers favor the 
        termination or suspension of the order.
            (2) Suspension or termination.--If the Secretary determines 
        that suspension or termination of the order is favored by a 
        majority of the producers, feeders, and importers voting in the 
        referendum or at least \2/3\ of the production represented by 
        the persons voting in the referendum, the Secretary shall 
        suspend or terminate--
                    (A) collection of assessments under the order not 
                later than 180 days after the determination; and
                    (B) the order in an orderly manner as soon as 
                practicable after the determination.
    (c) Procedures.--
            (1) Reimbursement--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Board shall reimburse the Secretary for any 
                expenses incurred by the Secretary in connection with 
                the conduct of any referendum under this section.
                    (B) Federal employee salaries.--The Board shall not 
                be required to reimburse the Secretary for the salaries 
                of Federal employees under subparagraph (A) if the 
                Secretary determines that the reimbursement would be 
                overly burdensome and costly.
            (2) Date.--Each referendum under this section shall be 
        conducted on a date established by the Secretary, under a 
        procedure by which producers, feeders, and importers intending 
        to vote in the referendum shall certify that the producers, 
        feeders, and importers were engaged in the production, feeding, 
        or importation of sheep or sheep products during the 
        representative period and, on the same day, shall be provided 
        an opportunity to vote in the referendum.
            (3) Place.--Referenda under this section shall be conducted 
        at locations determined by the Secretary. Absentee mail ballots 
        shall be furnished by the Secretary on request made in person, 
        by mail, or by telephone.
            (4) Allocation of production.--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 referenda 
        conducted pursuant to this section.

SEC. 7. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order issued under 
        this Act may file with the Secretary a petition--
                    (A) stating that the order, any provision of the 
                order, or any obligation imposed in connection with the 
                order is not established in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearings.--The petitioner shall be given an opportunity 
        for a hearing on the petition, in accordance with regulations 
        issued by the Secretary.
            (3) Ruling.--After the hearing, the Secretary shall make a 
        ruling on the petition. The ruling shall be final if the ruling 
        is in accordance with law.
    (b) Review.--
            (1) Commencement of action.--The district court of the 
        United States for any district in which a person who is a 
        petitioner under subsection (a) resides or carries on business 
        shall have jurisdiction to review the ruling on the petition of 
        the person, if a complaint for that purpose is filed not later 
        than 20 days after the date of the entry of the ruling by the 
        Secretary under subsection (a)(3).
            (2) Process.--Service of process in a proceeding may be 
        conducted on the Secretary by delivering a copy of the 
        complaint to the Secretary, under such rules or regulations as 
        are considered necessary by the Secretary to facilitate the 
        service of process.
            (3) Remands.--If the court determines that the ruling is 
        not in accordance with law, the court shall remand the matter 
        to the Secretary with directions--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further action as, in the opinion 
                of the court, the law requires.

SEC. 8. ENFORCEMENT.

    (a) Jurisdiction.--Each district court of the United States shall 
have jurisdiction specifically to enforce, and to prevent and restrain 
a person from violating, an order or regulation issued under this Act.
    (b) Referral to Attorney General.--A civil action authorized to be 
brought under this section shall be referred to the Attorney General 
for appropriate action, except that the Secretary is not required to 
refer to the Attorney General a violation of this Act, if the Secretary 
believes that the administration and enforcement of this Act would be 
adequately served by providing a suitable written notice or warning to 
the person who committed the violation or by an administrative action 
under section 7.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--A person who willfully violates an 
        order or regulation issued by the Secretary under this Act may 
        be assessed by the Secretary--
                    (A) a civil penalty of not more than $1,000 for 
                each such violation; and
                    (B) in the case of a willful failure to pay, 
                collect, or remit an assessment as required by the 
                order, an additional penalty equal to the amount of the 
                assessment.
            (2) Separate offense.--Each violation shall be a separate 
        offense.
            (3) Cease-and-desist orders.--In addition to, or in lieu 
        of, the civil penalty, the Secretary may issue an order 
        requiring the person to cease and desist from violating the 
        order or regulation.
            (4) Notice and hearing.--No order assessing a penalty or 
        cease-and-desist order may be issued by the Secretary under 
        this subsection unless the Secretary provides notice and an 
        opportunity for a hearing on the record with respect to the 
        violation.
            (5) Finality.--An order assessing a penalty or a cease-and-
        desist order issued under this subsection by the Secretary 
        shall be final and conclusive unless the person against whom 
        the order is issued files an appeal from the order with the 
        United States court of appeals, as provided in subsection (d), 
        not later than 30 days after the person receives notice of the 
        order.
    (d) Review by Court of Appeals.--
            (1) In general.--A person against whom an order is issued 
        under subsection (c) may obtain review of the order by--
                    (A) filing, not later than 30 days after the date 
                of the order, a notice of appeal in--
                            (i) the United States court of appeals for 
                        the circuit in which the person resides or 
                        carries on business; or
                            (ii) the United States Court of Appeals for 
                        the District of Columbia Circuit; and
                    (B) simultaneously sending a copy of the notice of 
                appeal by certified mail to the Secretary.
            (2) Record.--The Secretary shall file promptly in the court 
        a certified copy of the record on which the Secretary has 
        determined that the person has committed a violation.
            (3) Standard of review.--A finding of the Secretary under 
        this section shall be set aside only if the finding is found to 
        be unsupported by substantial evidence.
    (e) Failure to Obey Orders.--A person who fails to obey a valid 
cease-and-desist order issued by the Secretary under this section, 
after an opportunity for a hearing, shall be subject to a civil penalty 
assessed by the Secretary of not more than $500 for each offense. Each 
day during which the failure continues shall be considered to be a 
separate violation of the order.
    (f) Failure to Pay Penalties.--If a person fails to pay a valid 
civil penalty imposed under this section by the Secretary, the 
Secretary shall refer the matter to the Attorney General for recovery 
of the amount assessed in the district court of the United States for 
any district in which the person resides or carries on business. In the 
action, the validity and appropriateness of the order imposing the 
civil penalty shall not be subject to review.
    (g) Additional Remedies.--The remedies provided in this section 
shall be in addition to, and not exclusive of, other remedies that may 
be available.

SEC. 9. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
            (1) for the effective administration of this Act; or
            (2) to determine whether any person subject to this Act has 
        engaged, or is about to engage, in any action that constitutes 
        or will constitute a violation of this Act, or of any order or 
        regulation issued under this Act.
    (b) Subpoenas, Oaths, and Affirmations.--For the purpose of any 
investigation under subsection (a), the Secretary may administer oaths 
and affirmations, subpoena witnesses, compel the attendance of 
witnesses, take evidence, and require the production of any records 
that are relevant to the inquiry. The attendance of witnesses and the 
production of any such records may be required from any place in the 
United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal to obey 
a subpoena issued to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which the 
investigation or proceeding is carried on, or where the person resides 
or carries on business, in order to require the attendance and 
testimony of the person or the production of records. The court may 
issue an order requiring the person to appear before the Secretary to 
produce records or to give testimony regarding the matter under 
investigation.
    (d) Contempt.--Any failure to obey the order of the court may be 
punished by the court as a contempt of the court.
    (e) Process.--Process in any case under this section may be served 
in the judicial district in which the person resides or carries on 
business or wherever the person may be found.

SEC. 10. ADMINISTRATIVE PROVISIONS.

    (a) Construction.--Nothing in this Act preempts or supersedes any 
other program relating to sheep promotion, research, or information 
organized and operated under the laws of the United States or any 
State.
    (b) Amendments to Orders.--The provisions of this Act applicable to 
an order shall be applicable to amendments to the order, except that 
the Secretary is not required to conduct a referendum on a proposed 
amendment to an order.

SEC. 11. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this Act.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated for each 
fiscal year such sums as are necessary to carry out this Act.
    (b) Administrative Expenses.--Funds appropriated under subsection 
(a) shall not be available for payment of the expenses or expenditures 
of the Board in administering any provision of any order issued under 
this Act.

            Passed the Senate October 4 (legislative day, September 
      12), 1994.

            Attest:






                                                             Secretary.

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