[Congressional Record Volume 140, Number 143 (Wednesday, October 5, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 5, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         SHEEP PROMOTION, RESEARCH, AND INFORMATION ACT OF 1994

  Mr. de la GARZA. Mr. Speaker, I ask unanimous consent to take from 
the Speaker's table the Senate bill (S. 2500) 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, and ask for its immediate consideration in the House.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  Mr. ROBERTS. Mr. Speaker, reserving the right to object, I shall not 
object, but I yield to the gentleman from Texas [Mr. de la Garza], the 
distinguished chairman of the Committee on Agriculture, to explain the 
bill.
  Mr. de la GARZA. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, S. 2500, the Sheep Promotion, Research and Information 
Act of 1994 will allow our Nation's sheep producers and the sheep 
products industries to establish a single industry-funded market 
development and promotion program.
  The need for this legislation arises from action taken last year when 
Congress voted to phase out and eliminate the taxpayer-funded incentive 
payments made to wool producers under the National Wool Act. An 
unintended consequence of that policy change is the imminent loss of 
the mechanism by which the industry has long collected funds from wool 
producers for its current lamb and wool promotion or checkoff fund.
  The checkoff program that would be established by S. 2500 has been 
developed at the request and in consultation with our Nation's sheep, 
lamb, and textile industries. The bill would allow for the temporary 
continued operation of a restructured lamb and wool checkoff program, 
subject to an industrywide referendum in 1996.
  This legislation is similar to the industry self-financed research 
and promotion programs that now exist for a number of other commodity 
sectors. S. 2500 would operate at no cost to the Federal Government. 
The checkoff funds collected on domestic and imported slaughtered lambs 
and on domestic wool and imported wool products will reimburse the 
Department of Agriculture for the costs of the referendum, program 
administration, and compliance.
  Mr. Speaker, I strongly support and commend our Nation's sheep and 
wool industries for their effort to enhance their economic well-being 
through the marketplace rather than through direct Government 
assistance. I urge the House to support their effort and pass S. 2005.
  Mr. Speaker, I would also like to thank my colleagues Mr. Roberts, 
Mr. Stenholm, Mr. Gunderson, Mr. Rose, Mr. Smith of Oregon, Mr. Inslee, 
Mr. Combest, Mr. Allard, Mr. Skeen, Mr. Thomas of Wyoming, Mr. Bonilla, 
Mr. McInnis, Mr. Crapo, Mr. Barlow, Mr. Holden, Mr. Penny, Ms. 
Vucanovich, Mr. Volkmer, Mr. Williams, Mr. Smith of Texas, Mr. Edwards 
of Texas, and Mr. Johnson of South Dakota for their support in passing 
this legislation.
  Mr. BONILLA. Mr. Speaker, I am proud to be an original cosponsor of 
Chairman de la Garza's legislation. This bill, which the other body has 
already passed, will establish a national checkoff program to provide 
funds for promotion, research, and information programs that will 
benefit sheep and wool growers.
  The program, if approved in an upfront referendum, would apply to 
both domestic and imported sheep and sheep products. Referendum 
approval will require a majority vote by producers, feeders, and 
importers voting in the referendum or at least two-thirds of the 
production represented by persons voting in the referendum.
  These type of self-help programs are funded and run by producers who 
benefit from the research and marketing activities. This checkoff is 
similar to the 18 other commodity groups who have initiated a checkoff. 
The sheep industry should have an opportunity to vote on a self-help 
promotion similar to other agricultural industries like cotton, beef, 
and pork.
  As my colleagues recall, this Congress passed a bill last year that 
phases out the Wool Act over the next 2 years. The death of the act 
will mean ranchers will be out of work unless they find a new way to do 
business. I am confident that the people in the sheep industry are 
determined, strong and hard workers and they will meet this challenge 
successfully.
  This checkoff program is needed because incentive deductions that 
were included in the Wool Act incentive payments will be phased out by 
December 31, 1995. This new checkoff program would kick in on January 
1, 1996.
  This legislation would replace the current checkoff under the Wool 
Act. If adopted as proposed, the contributions of American growers will 
remain at the same level as now under the Wool Act.
  I want to emphasize that the checkoff imposes no cost to the 
Government; the sheep industry checkoff reimburses the cost of 
referendum, administration, and compliance. This new program is needed 
to promote equity and fairness for American ranchers and help them 
compete in the global market.
  More than 350,000 Americans in small communities exist on income 
generated by the sheep industry. Wool sales contributed approximately 
$70 million to rural communities in 1992, and the sheep industry 
contributes about $2 billion to the GNP.
  The sheep industry is a vital cog in my district's economic engine 
since they own 86 percent of the sheep which produced 86 percent of the 
wool over the past 2 years in Texas. I am proud of this industry and 
proud of what they do to help the rural and Texas economy. This program 
is another tool to assist in building up and maintaining a strong 
domestic industry.
  I want to compliment Chairman de la Garza and Chairman Leahy on their 
hard work and willingness to get this legislation passed. Fewer and 
fewer Members of Congress understand agriculture but these two men have 
devoted their public careers to advocating quality, sound, and cost-
effective agricultural policy. I urge my colleagues to support this 
bill.
  Mr. ROBERTS. Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The Clerk read the Senate bill, as follows:

                                S. 2500

       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:

Alabama..........................................................      1
Alaska...........................................................      1
Arizona..........................................................      1
Arkansas.........................................................      1
California.......................................................      5
Colorado.........................................................      4
Connecticut......................................................      1
Delaware.........................................................      1
Florida..........................................................      1
Georgia..........................................................      1
Hawaii...........................................................      1
Idaho............................................................      2
Illinois.........................................................      1
Indiana..........................................................      1
Iowa.............................................................      2
Kansas...........................................................      1
Kentucky.........................................................      1
Louisiana........................................................      1
Maine............................................................      1
Maryland.........................................................      1
Massachusetts....................................................      1
Michigan.........................................................      1
Minnesota........................................................      2
Mississippi......................................................      1
Missouri.........................................................      1
Montana..........................................................      5
Nebraska.........................................................      1
Nevada...........................................................      1
New Hampshire....................................................      1
New Jersey.......................................................      1
New Mexico.......................................................      2
New York.........................................................      1
North Carolina...................................................      1
North Dakota.....................................................      2
Ohio.............................................................      1
Oklahoma.........................................................      1
Oregon...........................................................      2
Pennsylvania.....................................................      1
Rhode Island.....................................................      1
South Carolina...................................................      1
South Dakota.....................................................      4
Tennessee........................................................      1
Texas............................................................     10
Utah.............................................................      3
Vermont..........................................................      1
Virginia.........................................................      1
Washington.......................................................      1
West Virginia....................................................      1
Wisconsin........................................................      1
Wyoming..........................................................      5
------------------------------------------------------------------------

       (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.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed, and a motion to reconsider was laid on the 
table.

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