[Federal Register Volume 60, Number 106 (Friday, June 2, 1995)]
[Proposed Rules]
[Pages 28747-28761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13485]



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



DEPARTMENT OF AGRICULTURE
7 CFR Part 1280

[No. LS-94-015]


Sheep and Wool Promotion, Research, Education, and Information 
Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Sheep Promotion, Research, and Information Act of 1994 
(Act), authorized the establishment of a national, industry-funded and 
-operated sheep and wool promotion, research, education, and 
information program. In response to an invitation published in the 
Federal Register to submit proposals for a sheep and wool promotion, 
research, education, and information order (Order), the Agricultural 
Marketing Service (AMS) received an entire industry proposal as well as 
five other partial proposals. With minor modifications, the full 
industry proposal and four of the partial proposals are set forth below 
for public comment. All comments will be considered before we issue a 
final rule establishing an Order.
    Before an Order can become operational, a referendum must be 
conducted among sheep producers, sheep feeders, and importers of sheep 
and sheep products, except importers of raw wool. If sheep producers, 
feeders, and importers voting in the referendum approve the final 
Order, producers, feeders, and importers will be required to pay 
assessments, which would be used in a national program of sheep and 
wool promotion, research, consumer information, education, industry 
information, and producer information.
    This rule also contains the certification and nomination procedures 
for the establishment of the National Sheep Promotion, Research, and 
Information Board (Board).
    Additionally, please take notice that a public meeting will be held 
during the comment period to foster a better understanding of the 
intent and application of the proposed Order. The Secretary of 
Agriculture (Secretary) will consider the record of that meeting in the 
development of a final Order. All interested persons are invited to 
attend.

DATES: Written comments must be received by July 17, 1995. The meeting 
will convene at 9:00 a.m., eastern daylight time, on June 26, 1995.

ADDRESSES: Location of meeting: Room 3501, USDA South Building, 14th 
and Independence Avenue, SW., Washington, D.C.

COMMENTS: Send two copies of comments to Ralph L. Tapp, Chief; 
Marketing Programs Branch, Room 2606-S; Livestock and Seed Division, 
AMS-USDA; P.O. Box 96456; Washington, D.C. 20090-6456. Comments will be 
available for public inspection during regular business hours in Room 
2606, South Building, 14th and Independence Avenue, SW., Washington, 
D.C. 20250. All comments should reference the docket number and the 
date and page number of the issue of the Federal Register. Comments 
concerning the information collection requirements contained in this 
proposal should also be sent to the Office of Information and 
Regulatory Affairs; Office of Management and Budget (OMB); Washington, 
D.C. 20503. Attention: Desk Officer for Agricultural Marketing Service, 
USDA.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing 
Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: 
Invitation to submit proposals--60 FR 381 (January 4, 1995).

Regulatory Impact Analysis

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866 and therefore has not been reviewed 
by OMB.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. It is not intended to have a retroactive effect. 
This rule would not preempt any State or local laws, regulations, or 
policies unless they present an irreconcilable conflict with this rule.
    The Act provides that any person subject to the Order may file with 
the Secretary a petition stating that the Order, any provision of the 
Order, or any obligation imposed in connection with the Order is not in 
accordance with the law, and requesting a modification of the Order or 
an exemption from certain provisions or obligations of the Order. The 
petitioner will have the opportunity for a hearing on the petition. 
Thereafter the Secretary will issue a decision on the petition. The Act 
provides that the district courts of the United States in any district 
in which the petitioner resides or carries on business has jurisdiction 
to review a ruling on the petition, if the petitioner files a complaint 
for that purpose not later than 20 days after the date of the entry of 
the Secretary's decision. The petitioner must exhaust his 
administrative remedies before he can initiate any such proceeding in 
the district court.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA)(5 U.S.C. 601 et seq.), the Administrator of AMS has 
considered the economic impact of this proposed action on small 
entities.
    The purpose of RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened.
    According to the January 27, 1995, issue of ``Sheep and Goats,'' 
published by the U.S. Department of Agriculture's (Department) National 
Agricultural Statistics Service, there are approximately 87,350 
operations with sheep in the United States, nearly all of which would 
be classified as small businesses under the criteria established by the 
Small Business Administration (13 CFR 121.601).
    The proposed Order would require each person who makes payment to a 
sheep producer, feeder, or handler of sheep or sheep products to be a 
collecting person, and thus to collect the assessment from the sheep 
producer, feeder, or handler of sheep or sheep products. Any person who 
buys domestic live sheep or greasy wool for processing must collect and 
remit the assessment to the Board. Each person who processes or causes 
to be processed sheep or sheep products of that person's own production 
and markets the processed products will pay an assessment and remit the 
assessment to the Board. Any person who exports live sheep or greasy 
wool will be required to remit an assessment to the Board. Finally, 
each person who imports into the United States sheep, sheep products, 
wool, or products containing wool, [[Page 28748]] other than raw wool, 
will pay an assessment. The U.S. Customs Service (Customs Service) will 
collect the assessments on imported sheep and sheep products (except 
raw wool) and forward them to AMS for disbursement to the Board.
    The rate of assessment on domestic sheep producers, feeders, and 
exporters of live sheep and greasy wool will be 1-cent-per-pound on 
live sheep sold and 2-cents-per-pound on greasy wool sold. Importers 
will be assessed 1-cent-per-pound on live sheep and the equivalent of 
1-cent-per-pound of live sheep for sheep products as well as 2-cents-
per-pound of degreased wool or the equivalent of degreased wool for 
wool and wool products. Imported raw wool will be exempt from 
assessments. Each person who processes or causes to be processed sheep 
or sheep products of that person's own production and markets the 
processed products will be assessed the equivalent of 1-cent-per-pound 
of live sheep sold or 2-cents-per-pound of greasy wool sold. All 
assessment rates may be adjusted in accordance with the applicable 
provisions of the Act.
    Although the assessments are expected to total about $14 million 
dollars annually, the economic impact of assessments collected from 
sheep producers, feeders, handlers, exporters, importers, or direct 
processors, will not be significant. The proposed Order also imposes a 
reporting and recordkeeping burden on (1) each collecting person, 
including processors and other persons required to remit assessments to 
the Board on live sheep or wool purchased from the producer, feeder, or 
handler, (2) each person marketing sheep products of that person's own 
production, (3) each exporter of sheep or greasy wool, and (4) each 
person importing sheep or sheep products, other than raw wool. This 
burden should average less than 5 hours per year, so its economic 
impact will not be significant. In addition, the sheep and wool 
promotion, research, education, and information program funded by the 
assessments is expected to benefit each person paying into the program 
by expanding and maintaining new and existing domestic and foreign 
markets and uses for sheep and sheep products and wool and products 
containing wool. Therefore, the Administrator of AMS has determined 
that this action will not have a significant economic impact on a 
substantial number of small entities.
    This proposal also contains the certification and nomination 
procedures for the establishment of the Board. The Board will be 
appointed by the Secretary.

Comments and Public Meeting

    Interested persons are invited to submit written comments 
concerning this proposed Order. Comments must be sent to the Livestock 
and Seed Division's Marketing Programs Branch and must refer to the 
date and page number of this issue of the Federal Register. Comments 
submitted pursuant to this document will be made available for public 
inspection during regular business hours. Comments must be received by 
July 17, 1995.
    Additionally, notice is given that a public meeting will be held 
beginning at 9:00 a.m., eastern daylight time, on June 26, 1995, at the 
U.S. Department of Agriculture, Room 3501, South Building, 14th and 
Independence Avenue, SW., Washington, D.C.
    The meeting will be conducted by a presiding officer chosen by the 
Department. The proceedings of such meeting will be transcribed and 
considered in the development of a final Order. The purpose of the 
meeting is to provide an opportunity for a full discussion on the 
proposal to foster a better understanding of the intent and application 
of the proposed Order. Interested persons may present data, views, or 
arguments concerning the proposed Order through exhibits, written 
statements, or oral presentations. We encourage persons who make oral 
presentations to submit their presentations in writing as well. Those 
who submit written statements must provide one original and three 
copies of the statement for the record. Persons who attend the meeting 
will be allowed to question participants who give oral presentations. 
We anticipate that the proponents of this proposal will attend the 
meeting and will answer questions about the proposal.
    Any interested person shall have an opportunity to appear and be 
heard concerning the proposed Order. However, the presiding officer may 
limit the number of times and the amount of time that any one person 
may be heard and may exclude information that is immaterial, 
irrelevant, or unduly repetitious, in order to limit the amount of 
cumulative material presented and to avoid prolonging the meeting 
unnecessarily.
    Copies of the transcript of the meeting will not be available for 
distribution through the Hearing Clerk's office. However, the 
transcript will be available for public inspection during normal 
business hours. Anyone who would like to buy a copy of the transcript 
should make arrangements with the reporter at the meeting.

Paperwork Reduction

    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
Chapter 35), the information collection requirements contained in this 
action will be submitted to OMB for approval. This action sets forth 
the provisions for establishing a nationwide, industry-funded sheep and 
wool promotion, research, education, and information program. 
Information collection requirements as required by this action are 
necessary for the implementation of this Order include:
    (1) A report by each collecting person, including processors and 
other persons required to remit assessments to the Board for live sheep 
or wool purchased from the producer, feeder, or handler of sheep or 
sheep products and by each person marketing sheep or sheep products of 
that person's own production and by each exporter of sheep or greasy 
wool. The estimated number of respondents for this report is 700. Each 
respondent will submit one report per month, unless otherwise 
prescribed by the Board, and the estimated average reporting burden is 
0.5 hours per response;
    (2) A referendum ballot and registration form/envelope, or absentee 
ballot and registration form, to be completed by producers, feeders, 
and importers voting in an up-front referendum. The estimated number of 
respondents for this is approximately 25,000, (each of whom will submit 
one response) and the estimated average reporting burden is 0.10 hours 
per response;
    (3) A nomination form by which certified organizations would 
nominate producers, feeders, and importers for membership on the Board. 
The estimated number of respondents for this form is 60 for the first 
year of the Order, and 20 each year thereafter. Each respondent will 
submit one response per year, and the estimated average reporting 
burden is 0.5 hours per response;
    (4) An advisory committee membership background information form to 
be completed by candidates nominated by certified organizations for 
appointment to the Board. The estimated number of respondents for this 
form is 240 during the first year of the Order, and 80 each year 
thereafter. Each respondent will submit one response per year, and the 
estimated average reporting burden is 0.5 hours per response;
    (5) An application for certification of organization to be 
completed by eligible organizations that request certification in order 
to be eligible to nominate [[Page 28749]] producers, feeders, and 
importers to the Board. The estimated number of respondents for this 
form is 70 (with each submitting one response), and the estimated 
average reporting burden is 0.5 hour per response; and
    (6) A requirement to maintain sufficient records to verify reports 
submitted under the Order. The estimated number of recordkeepers needed 
to comply with this requirement is 700, each of whom will have an 
estimated annual reporting burden of 0.5 hours.
    Comments concerning the information collection requirements 
contained in this action should also be sent to the Office of 
Information and Regulatory Affairs; Office of Management and Budget; 
Washington, D.C. 20503. Attention: Desk Officer for Agricultural 
Marketing Service, USDA.
Background

    The Act (7 U.S.C. 7101-7111), approved October 22, 1994, authorizes 
the Secretary to establish a national sheep and wool promotion, 
research, education, and information program. The program will be 
funded by a mandatory assessment on domestic sheep producers, sheep 
feeders, and exporters of live sheep and greasy wool of 1-cent-per-
pound on live sheep sold and 2-cents- per-pound on greasy wool sold. 
Importers will be assessed
    1-cent-per-pound on live sheep imported and the equivalent of 1-
cent-per-pound of live sheep for sheep products imported as well as 2-
cents-per-pound of degreased wool or the equivalent of degreased wool 
for wool and wool products imported. Imported raw wool will be exempt 
from assessments. Each person who processes or causes to be processed 
sheep or sheep products of that person's own production, and who 
markets the processed products, will be assessed the equivalent of 1-
cent-per-pound of live sheep sold or 2-cents-per-pound of greasy wool 
sold. All assessment rates may be adjusted in accordance with 
applicable provisions of the Act.
    The Act provides for submission of proposals for a sheep and wool 
promotion, research, education, and information order (Order). The 
Secretary may propose the issuance of an Order, or an association of 
sheep producers may request the issuance of, and submit a proposed 
Order. The Act provides that when the Secretary decides to propose an 
Order or receives a request and proposal for an Order, the Secretary 
shall publish the proposed Order and give due notice and opportunity 
for public comment.
    The Department issued an invitation to submit proposals for an 
initial Order in the January 4, 1995, issue of the Federal Register.
    In response to the invitation to submit proposals, the American 
Sheep Industry Association (ASI), the sheep industry's producer member 
organization, submitted a proposed Order. In addition, the New Zealand 
Meat Producers Board, the Australian Meat and Live-stock Corporation, 
the Wools of New Zealand, the National Lamb Feeders Association, and 
the Lamb Committee of the National Livestock and Meat Board each 
submitted a partial proposal.
    The Department has also received letters from other interested 
parties. The Department did not consider these letters to be proposals 
because they primarily addressed information relating to sections 
already established under Act, and were therefore not proposals to the 
proposed program. Copies of these and the comments received in response 
to this proposed Order, will be available for public inspection.
    The Department is publishing ASI's proposal as Proposal I, the New 
Zealand Meat Producers Board's proposal as Proposal II, the Australian 
Meat and Live-stock Corporation's proposal as Proposal III, the Wools 
of New Zealand's proposal as Proposal IV, and the National Lamb Feeders 
Association's proposal as Proposal V. The Department has modified these 
proposals slightly in order to (1) make them consistent with the Act 
and other similar national research and promotion programs supervised 
by the Department, (2) simplify the language and format of some 
provisions, and (3) add certain sections necessary for proper 
administration of the Order by the Department. The Department rejected 
the proposal submitted by the Lamb Committee of the National Livestock 
and Meat Board and the proposal and its rejection are discussed below.

Proposal I

    The proposed Order submitted by ASI is summarized as follows:
    Sections 1280.101-1280.136 of the proposal define certain words 
that are used in the Order.
    Sections 1280.201-1280.215 concern the establishment, membership, 
nominations, method of obtaining nominations, certification of 
organizations, term of office, compensation, removal, and powers and 
duties of the Board, which is the governing body authorized to 
administer the Order subject to the oversight of the Secretary. These 
sections also include provisions for: (1) Budget review and approval, 
(2) the maintenance of books and records by the Board, (3) the 
investment of funds, and (4) the use of assessments, including 
reimbursement for expenses incurred for the Department's oversight 
responsibilities.
    Sections 1280.216-1280.222 of the proposed Order establishes that 
the membership of the Executive Committee is comprised of 14 members, 
including 7 producer members elected from 7 regions reflecting sheep 
production and sheep producers, 1 sheep feeder, 3 importers of sheep or 
sheep products, and 3 elected officers of the Board. In addition, these 
sections authorize the Executive Committee to develop plans and 
projects of promotion, research, consumer information, education, 
industry information, and producer information with respect to sheep 
and sheep products and to develop and submit to the Board budgets of 
anticipated expenses and disbursements for program projects. The 
Secretary must approve such plans, projects, or budgets before they are 
implemented.
    Section 1280.223 makes the Board responsible for expenses of the 
Board and the Executive Committee, as well as for contracts and 
agreements that the Board enters into.
    Sections 1280.224-1280.228 establishes assessment rates on sheep 
and sheep products as provided by the Act.
    Section 1280.229 authorizes each Qualified State Sheep Board (QSSB) 
to receive 20 percent of the total assessments collected by the Board 
on the marketing of domestic sheep and domestic sheep products in any 
one year from each State. However, no QSSB would receive less than 
$2,500 per year.
    Section 1280.230 establishes collection procedures for each person 
responsible for collecting the assessment, fixes a 2 percent late 
payment charge for past due assessments, and authorizes the Secretary 
to receive assessments on behalf of the Board, if the Board is not in 
place or is otherwise unable to collect assessments. This section also 
authorizes the Secretary to promulgate rules and regulations concerning 
assessments and the collection of assessments.
    Section 1280.231 prohibits funds received under this program from 
being used to influence Government action or policy, with certain 
specified exceptions. In addition, funds received under this program 
that are used to conduct plans or projects shall not (1) make false or 
misleading claims on behalf of sheep or sheep products or 
[[Page 28750]] against a competing product or (2) promote or advertise 
any sheep or sheep products by brand or trade name without the approval 
of the Board and the concurrence of the Secretary.
    Sections 1280.232-1280.235 contain reporting and recordkeeping 
requirements for persons subject to the Order, and provide that all 
information obtained by the Board or the Department from books and 
reports required by the Order would be kept confidential. In addition, 
they provide for a $1,000 penalty or imprisonment for not more than 1 
year, or both, for any willful violation of the Order.
    Sections 1280.240-1280.246 contain miscellaneous provisions, 
including provisions concerning the Secretary's authority; proceedings 
after the termination of the Order; the effect of termination or 
amendment of the Order; personal liability of Board members; patents, 
copyrights, inventions and publications; amendments to the Order; and 
separability of Order provisions.

Proposal II

    The New Zealand Meat Producers Board (NZMPB) proposes that of the 
25 importers represented on the Board, 6 should be representatives of 
sheepmeat importers, and the remaining positions should be 
proportionally allocated to importers of wool and other sheep products. 
We have accepted this proposal for comment and identified it in 
Sec. 1280.201 in the regulatory section under Proposal II.
    NZMPB proposes that organizations that represent importers of sheep 
or sheep products may make nominations for representation of the 
importer unit. We have accepted this proposal for comment and 
identified it in Sec. 1280.202 in the regulatory section under Proposal 
II.
    NZMPB proposes that the Secretary certify foreign producer 
organizations that have historically represented importer interests in 
the United States market. We did not accept this proposal because the 
Act (1) contemplates that the Secretary would solicit importer nominees 
from United States organizations that have been certified and represent 
importers of sheep and sheep products and (2) does not authorize the 
Secretary to certify foreign producer organizations. Additionally, 
NZMPB's proposed criterion for eligibility for certification, that 
limits eligibility to--``foreign producer organizations with a history 
of representing importer interests in the United States market,''--is 
not one of the three specified criteria for certification set forth in 
the Act.
    NZMPB proposes that at least one of the three importer members on 
the Executive Committee should represent importers of sheepmeat. We 
have accepted this proposal for comment and identified it in 
Sec. 1280.217 in the regulatory section under Proposal II.
    NZMPB proposes that the rate of assessment of sheep and sheep 
products not be raised without an affirmative determination by the 
Secretary, in consultation with the Special Trade Representative, and 
that such action would not violate the United States' obligations under 
the General Agreements on Tariffs and Trade. We did not accept this 
proposal because the Secretary is already directed to act pursuant to 7 
U.S.C. 2278 and consequently, it is not necessary to include such 
request in the proposed Order.
    NZMPB proposes that the equivalent of 1-cent-per-pound of live 
sheep should be determined by applying the dressing yield conversion 
factor published annually by the Department. We did not accept this 
proposal because the Act gives the Secretary the latitude to use the 
conversion factors that will most accurately determine the live sheep 
equivalents, and NZMPB's proposal would limit those calculations to the 
dressing percentage (yield).
Proposal III

    The Australian Meat and Live-stock Corporation (AMLC) proposes a 
prohibition on the use of assessments for country of origin-specific 
promotions or programs. We have accepted this proposal for comment and 
identified it in Sec. 1280.223 in the regulatory section under Proposal 
III.

Proposal IV

    The Wools of New Zealand (WNZ) proposes (1) that funds generated 
under this subpart be used to promote a wide range of wool products in 
the United States, including interior textile products, e.g., carpet, 
rugs, and upholstery; and (2) that these funds be used to promote wool 
generically rather than to promote wool specifically grown in the 
United States. We have accepted this proposal and identified it in 
Sec. 1280.223 in the regulatory section under Proposal IV.

Proposal V

    The National Lamb Feeders Association (NLFA) proposes that the 
``national feeder organization'' be defined as the only (1) 
organization in the United States chartered to represent lamb feeders 
with open membership for all interested in feeding lambs and (2) 
organization eligible to submit the names of 15 sheep feeders for 
appointment to the 10 sheep feeder positions on the Board. We did not 
accept this proposal because it would preclude other existing 
organizations, new organizations, and/or successor organizations from 
being eligible to nominate feeders to the Board, thereby restricting 
the opportunity for all qualified organizations to participate in the 
nomination process.
    NLFA proposes that assessments collected under the program be used 
to promote ``Fresh American Lamb.'' We have accepted this proposal for 
comment and identified it in Sec. 1280.223 in the regulatory section 
under Proposal V.
    NLFA proposes that the Board use its contracting powers to provide 
an annual funding base to NLFA to assure continuation of industry 
information and education programs. This proposal was not accepted 
because the Act does not authorize such funding.
    NLFA proposes that the assessment be ``phased-in'' for the first 90 
days after the effective date of the Order, and that lamb feeders be 
assessed \1/2\-cent-per-head-per-day, thus making contributions to the 
program fair and equitable. NLFA provided the following example to 
illustrate its proposal: If a feeder sells lambs 20 days or 60 days 
after the effective date of the Order the assessment would be 
calculated as follows:

20 days x $0.005/head/day = $0.10/head; or
60 days x $0.005/head/day = $0.30/head.

    We did not accept this proposal because the Act contemplates that 
the assessment rate of 1-cent-per-pound of live sheep sold shall be the 
rate of assessment on the effective date of any Order.
    Additionally, the Act makes no provisions for modifying the 
assessment rate for any particular group of persons or type of sheep 
(i.e., feeder).
    The Lamb Committee of the National Livestock and Meat Board (Lamb 
Committee) proposed that the Board annually fund the Lamb Committee's 
projects and that the Lamb Committee should receive not less than the 
amount it currently receives through voluntary contributions--
approximately 2\1/2\ percent of the estimated income to be collected by 
the Board--to be used only for research, education, and consumer 
information projects. This proposal was not accepted because the Act 
does not authorize such funding.
    Before the Department issues the final Order that will be voted on 
in an up-front referendum, it will analyze all [[Page 28751]] written 
views received to date, as well as written comments on the five 
proposals published below. The program will not become operational 
unless and until producers, feeders, and importers approve the program 
in the up-front referendum.
    In addition to Subpart A--Sheep and Wool Promotion, Research, 
Education, and Information Order--proposed herein, the Department is 
proposing procedures under this part for the certification of 
organizations and the nomination of sheep producers, feeders, and 
importers for appointment to the Board, in order to expedite as much as 
possible the receipt of nominations for appointment to the Board.
    Subpart C--Procedures for Certification of Organizations and 
Nominations of Sheep Producers, Feeders, and Importers for Appointment 
to the National Sheep Promotion, Research, and Information Board 
(Board) is summarized as follows:
    Sections 1280.400-1280.414 of this part would establish procedures 
for certification of organizations and nominations of sheep producers, 
feeders, and importers for appointment to the Board.

List of Subjects in 7 CFR Part 1280

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Sheep and sheep products, Reporting and 
record keeping.

    The full proposal and the four partial proposals set forth below 
have not received the approval of the Secretary.
    We hereby propose that chapter XI of title 7 of the Code of Federal 
Regulations be amended as follows:
Proposal I
    1. Part 1280 is proposed to be added to read as follows:

PART 1280 SHEEP PROMOTION, RESEARCH, AND INFORMATION

Subpart A--Sheep and Wool Promotion, Research, Education, and 
Information Order

Sec.

Definitions

1280.101  Act.
1280.102  Board.
1280.103  Carbonized wool.
1280.104  Certified organization.
1280.105  Collecting person.
1280.106  Consumer information.
1280.107  Customs Service.
1280.108  Degreased wool.
1280.109  Department.
1280.110  Education.
1280.111  Executive committee.
1280.112  Exporter.
1280.113  Feeder.
1280.114  Greasy wool.
1280.115  Handler.
1280.116  Importer.
1280.117  Industry information.
1280.118  National feeder organization.
1280.119  Part and subpart.
1280.120  Person.
1280.121  Processor.
1280.122  Producer.
1280.123  Producer information.
1280.124  Promotion.
1280.125  Pulled wool.
1280.126  Qualified State Sheep Board.
1280.127  Raw wool.
1280.128  Research.
1280.129  Secretary.
1280.130  Sheep.
1280.131  Sheep products.
1280.132  State.
1280.133  Unit.
1280.134  United States.
1280.135  Wool.
1280.136  Wool products.

National Sheep Promotion, Research, and Information Board

1280.201  Establishment and membership of the Board.
1280.202  Nominations.
1280.203  Nominee's agreement to serve.
1280.204  Appointment.
1280.205  Method of obtaining nominations.
1280.206  Vacancies.
1280.207  Certification of organizations.
1280.208  Term of office.
1280.209  Compensation.
1280.210  Removal.
1280.211  Powers and duties of the Board.
1280.212  Budgets.
1280.213  Books and records of the Board.
1280.214  Investment of funds.
1280.215  Use of assessments.

Executive Committee

1280.216  Establishment.
1280.217  Membership.
1280.218  Powers and duties.
1280.219  Term of office.
1280.220  Chairperson.
1280.221  Quorum.
1280.222  Vacancies.

Expenses

1280.223  Expenses.

Assessments

1280.224  Sheep purchases.
1280.225  Wool purchases.
1280.226  Direct processing.
1280.227  Export.
1280.228  Imports.
1280.229  Qualified State Sheep Board.
1280.230  Collection.
1280.231  Prohibition on use of funds.

Reports, Books, and Records

1280.232  Reports.
1280.233  Books and records.
1280.234  Use of information.
1280.235  Confidentiality.

Miscellaneous

1280.240  Right of the Secretary.
1280.241  Proceedings after termination.
1280.242  Effect of termination or amendment.
1280.243  Personal liability.
1280.244  Patents, copyrights, invention, and publication.
1280.245  Amendments.
1280.246  Separability.

Subpart B--[RESERVED]

Subpart C--Procedures for Certification of Organizations and 
Nominations of Sheep Producers, Feeders, and Importers for Appointment 
to the National Sheep Promotion, Research, and Information Board

1280.400  General.
1280.401  Definitions.
1280.402  Administration.
1280.403  Certification of eligibility.
1280.404  Application for certification.
1280.405  Review of certification.
1280.406  Notification of certification and the listing of certified 
organizations.
1280.407  Solicitation of nominations for appointment to the Board.
1280.408  Nominations of members for appointment to the Board.
1280.409  Initial Board membership.
1280.410  Length of appointment to the initial Board.
1280.411  Acceptance of appointment.
1280.412  Verification.
1280.413  Confidential treatment of information.
1280.414  Paperwork Reduction Act assigned number.
Subpart D--[Reserved]
Subpart E--[Reserved]
    Authority: 7 U.S.C. 7101-7111.
Subpart A--Sheep and Wool Promotion, Research, Education, and 
Information Order
Definitions
Sec. 1280.101  Act.
    The term ``Act'' means the Sheep Promotion, Research, and 
Information Act of 1994, 7 U.S.C 7101-7111; Public Law No. 103-107; 108 
Statute 4210, enacted October 22, 1994, and any amendments thereto.
Sec. 1280.102  Board.
    The term ``Board'' means the National Sheep Promotion, Research, 
and Information Board established pursuant to Sec. 1280.201.
Sec. 1280.103  Carbonized wool.
    The term ``carbonized wool'' means wool that has been immersed in a 
bath, usually of mineral acids or acid salts, that destroys vegetable 
matter in the wool, but does not affect the wool fibers.
Sec. 1280.104  Certified organization.
    The term ``certified organization'' means any organization that has 
been certified by the Secretary pursuant to this part as being eligible 
to submit nominations for membership on the Board.
Sec. 1280.105  Collecting person.
    The term ``collecting person'' means any person who is responsible 
for collecting an assessment pursuant to the Act, this subpart and 
regulations [[Page 28752]] prescribed by the Board and approved by the 
Secretary, including processors and any other persons who are required 
to remit assessments to the Board pursuant to this part, except that a 
collecting person who is a market agency; i.e., commission merchant, 
auction market, or livestock market in the business of receiving such 
sheep or sheep products for sale on commission for or on behalf of a 
producer or feeder shall pass the collected assessments on to the 
subsequent purchaser pursuant to the Act, this subpart and the 
regulations prescribed by the Board and approved by the Secretary.
Sec. 1280.106  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.
Sec. 1280.107  Customs Service.
    The term ``Customs Service'' means the U.S. Customs Service of the 
Department of the Treasury.
Sec. 1280.108  Degreased wool.
    The term ``degreased wool'' means wool from which the bulk of 
impurities has been removed by processing.
Sec. 1280.109  Department.
    The term ``Department'' means the U.S. Department of Agriculture.
Sec. 1280.110  Education.
    The term ``education'' means activities providing information 
relating to the sheep industry or sheep products to producers, feeders, 
importers, consumers, and other persons.
Sec. 1280.111  Executive Committee.
    The term ``Executive Committee'' means the Executive Committee of 
the Board established under Sec. 1280.216.
Sec. 1280.112  Exporter.
    The term ``exporter'' means any person who exports domestic live 
sheep or greasy wool from the United States.
Sec. 1280.113  Feeder.
    The term ``feeder'' means any person who feeds lambs until the 
lambs reach slaughter weight.
Sec. 1280.114  Greasy wool.
    The term ``greasy wool'' means wool that has not been washed or 
otherwise cleaned.
Sec. 1280.115  Handler.
    The term ``handler'' means any person who purchases and markets 
greasy wool.
Sec. 1280.116  Importer.
    The term ``importer'' means any person who imports sheep or sheep 
products into the United States.
Sec. 1280.117  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.
Sec. 1280.118  National feeder organization.
    The term ``national feeder organization'' means any organization of 
feeders that has been certified by the Secretary pursuant to the Act 
and this part as being eligible to submit nominations for membership on 
the Board.
Sec. 1280.119  Part and subpart.
    ``Part'' means the Sheep and Wool Promotion, Research, Education, 
and Information Order and all rules and regulations issued pursuant to 
the Act and the Order, and the Order itself shall be a ``subpart'' of 
such part.
Sec. 1280.120  Person.
    The term ``person'' means any individual, group of individuals, 
partnership, corporation, association, cooperative, or any other legal 
entity.
Sec. 1280.121  Processor.
    The term ``processor'' means any person who slaughters sheep or 
processes greasy wool into degreased wool.
Sec. 1280.122  Producer.
    The term ``producer'' means any person, other than a feeder, who 
owns or acquires ownership of sheep.
Sec. 1280.123 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.
Sec. 1280.124  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.
Sec. 1280.125  Pulled wool.
    The term ``pulled wool'' means wool that is pulled from the skin of 
slaughtered sheep.
Sec. 1280.126 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 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 one QSSB shall exist in any State at any one time.
Sec. 1280.127  Raw wool.
    The term ``raw wool'' means greasy wool, pulled wool, degreased 
wool, or carbonized wool.
Sec. 1280.128  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.
Sec. 1280.129  Secretary.
    The term ``Secretary'' means the Secretary of Agriculture of the 
United States or any other officer or employee of the Department to 
whom authority has been delegated, or to whom authority may be 
delegated, to act in the Secretary's stead.
Sec. 1280.130  Sheep.
    The term ``sheep'' means ovine animals of any age, including lambs.
Sec. 1280.131  Sheep products.
    The term ``sheep products'' means products produced in whole or in 
part from sheep, including wool and products containing wool fiber.
Sec. 1280.132  State.
    The term ``State'' means each of the 50 States.
Sec. 1280.133  Unit.
    The term ``unit'' means each State, group of States, or class 
designation that is represented on the Board.
Sec. 1280.134  United States.
    The term ``United States'' means the 50 States and the District of 
Columbia. [[Page 28753]] 
Sec. 1280.135  Wool.
    The term ``wool'' means the fiber from the fleece of a sheep.
Sec. 1280.136  Wool products.
    The term ``wool products'' means products produced, in whole or in 
part, from wool and products containing wool fiber.
National Sheep Promotion, Research, and Information Board
Sec. 1280.201  Establishment and membership of the Board.
    There is hereby established a National Sheep Promotion, Research, 
and Information Board (Board) of 120 members. Members of the Board 
shall be appointed by the Secretary from nominations submitted in 
accordance with this subpart. The seats shall be apportioned as 
follows:
    (a) Producers: For purposes of nominating producers to the Board, 
each State shall be represented by the following number of members:

------------------------------------------------------------------------
                                                                  Board 
                             Unit                                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 by 10 
members.
    (c) Importers. Importers shall be represented by 25 members.
    (d) Alternates. A unit represented by only one producer member may 
have an alternate member appointed to ensure representation at meetings 
of the Board.
Sec. 1280.202  Nominations.
    (a) Producers. The Secretary shall appoint producers and alternates 
to represent units as specified under Sec. 1280.201(a) of this subpart 
from nominations submitted by organizations certified under 
Sec. 1280.207. A certified organization may submit only nominations for 
producer representatives and alternates if appropriate from the 
membership of the organization for the unit in which the organization 
operates. To be represented on the Board, each certified organization 
shall submit to the Secretary at least 1.5 nominations for each seat on 
the Board for which the unit is entitled to representation. If a unit 
is entitled to only one seat on the Board, the unit shall submit at 
least two nominations for the appointment.
    (b) Feeders. The Secretary shall appoint representatives of the 
feeder sheep industry to seats established under Sec. 1280.201(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 to which the feeder sheep industry is 
entitled.
    (c) Importers. The Secretary shall appoint importers to seats 
established under Sec. 1280.201(c) from nominations submitted by 
qualified organizations that represent importers. The Secretary shall 
receive at least 1.5 nominations for each appointment to the Board to 
which importers are entitled.
    (d) As soon as practicable, the Secretary shall obtain nominations 
from certified organizations. If no organization is certified in a unit 
the Secretary may use other means to obtain nominations. A certified 
organization shall only submit nominations for positions on the Board 
representing units in which such certified organization can establish 
that it is certified as eligible to submit nominations for 
representation of that unit of individual producers, feeders, or 
importers residing in that unit.
    (e) After the establishment of the initial Board, the Department 
shall announce when a vacancy does or will exist. Nominations shall be 
initiated not less than 6 months before the expiration of the terms of 
the members whose terms are expiring, in the manner described in 
Sec. 1280.205(b). In the case of vacancies due to reasons other than 
the expiration of term of office, successor Board members shall be 
appointed pursuant to Sec. 1280.206.
    (f) Where there is more than one eligible organization representing 
producers, feeders, or importers in a State or unit, they may caucus 
and jointly nominate a minimum of 1.5 qualified persons for each 
position representing that State or unit on the Board for which a 
member is to be appointed. If joint agreement is not reached with 
respect to any such nominations, or if no caucus is held, each 
certified organization may submit nominations for each appointment to 
be made to represent that State or unit.
    (g) Nominations should be submitted in order of preference and, for 
the initial Board, in order of preference for staggered terms. If the 
Secretary rejects any nominations submitted and there are insufficient 
nominations submitted from which appointments can be made, the 
Secretary may request additional nominations under paragraphs (a), (b), 
or (c) of this section.
Sec. 1280.203  Nominee's agreement to serve.
    Any producer, feeder, or importer nominated to serve on the Board, 
or as an alternate, shall file with the Secretary at the time of the 
nomination a written agreement to:
    (a) Serve on the Board if appointed;
    (b) Disclose any relationship with any organization that operates a 
qualified State or regional program or has a contractual relationship 
with the Board; and
    (c) Withdraw from participation in deliberations, decision making, 
or voting on matters that concern the relationship disclosed under 
paragraph (b).
Sec. 1280.204  Appointment.
    From the nominations made pursuant to Sec. 1280.202 above, the 
Secretary shall appoint the members of the Board on the basis of 
representation provided in Sec. 1280.201 above. [[Page 28754]] 
Sec. 1280.205  Method of obtaining nominations.
    (a) Initially Established Board.
    (1) Producer and Alternate Nominations. The Secretary shall 
solicit, from organizations certified under Sec. 1280.207, nominations 
for each producers or alternate member's seat on the initially-
established Board to which a unit is entitled. If no such organization 
exist, the Secretary shall solicit nominations for appointments in such 
manner as the Secretary determines appropriate.
    (2) Feeder and Importer Nominations. The Secretary shall solicit, 
from certified organizations that represent feeders and importers, 
nominations for each seat to which feeders or importers are entitled. 
If no such organization exists, the Secretary shall solicit nominations 
for appointments in such manner as the Secretary determines 
appropriate. In determining whether an organization is eligible to 
submit nominations under this subparagraph, the Secretary shall 
determine whether:
    (A) The organization's active membership includes a significant 
number of feeders or importers in relation to the total membership of 
the organization;
    (B) There is evidence of stability and permanency of the 
organization; and
    (C) The organization has a primary and overriding interest in 
representing the feeder or importer segment of the sheep industry.
    (b) Subsequent Appointment.
    (1) Producer Nominations. The solicitation of nominations for 
subsequent appointment to the Board from eligible organizations 
certified under Sec. 1280.207 shall be initiated by the Secretary, with 
the Board securing the nominations for the Secretary.
    (2) Feeder and Importer Nominations. The solicitation of feeder and 
importer nominations for subsequent appointment to the Board from 
organizations certified in accordance with Sec. 1280.205(a)(2).
Sec. 1280.206  Vacancies.
    To fill any vacancy occasioned by the death, removal, resignation, 
or disqualification of any member of the Board, the Secretary shall 
appoint a successor from the most recent list of nominations for the 
position or from nominations submitted by the Board.
Sec. 1280.207  Certification of organizations.
    (a) In general. The eligibility of any State organization to 
represent producers and to participate in the making of nominations 
under this subpart shall be certified by the Secretary. The Secretary 
shall certify any State organization that the Secretary determines 
meets the eligibility criteria established under paragraph (b) below. 
An eligibility determination by the Secretary shall be final.
    (b) Basis for Certification. Certification shall be based upon, in 
addition to other available information, a factual report submitted by 
the organization that shall contain information considered relevant and 
specified by the Secretary, including:
    (1) The geographic territory covered by the active membership of 
the organization;
    (2) 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;
    (3) Evidence of stability and permanency of the organization;
    (4) Sources from which the operating funds of the organization are 
derived;
    (5) The functions of the organization; and
    (6) The ability and willingness of the organization to further the 
aims and objectives of the Act.
    (c) Primary Considerations. A primary consideration in determining 
the eligibility of an organization under this paragraph shall be 
whether;
    (1) The membership of the organization consists primarily of 
producers who own a substantial quantity of sheep; and
    (2) An interest of the organization is in the production of sheep.
Sec. 1280.208  Term of office.
    Each appointment to the Board shall be for a term of 3 years, 
except that appointments to the initially established Board shall be 
proportionally for 1-year, 2-year, and 3-year terms. No person may 
serve more than two consecutive 3-year terms, except that elected 
officers shall not be subject to the term limitation while they hold 
office.
Sec. 1280.209  Compensation.
    Board members shall serve without compensation, but shall be 
reimbursed for their reasonable expenses incurred in performing their 
duties as Board members.
Sec. 1280.210  Removal.
    If the Secretary determines that any person appointed under this 
part fails to perform his or her duties properly or engages in acts of 
dishonesty or willful misconduct, the Secretary shall remove the person 
from office. The Secretary may remove a person appointed or certified 
under this part, or any employee of the Board, if the Secretary 
determines that the person's continued service would be detrimental to 
the purposes of the Act.
Sec. 1280.211  Powers and duties of the Board.
    The Board shall have the following powers and duties:
    (a) To elect officers of the Board, including a chairperson, vice 
chairperson, and secretary/treasurer;
    (b) To administer this subpart in accordance with its terms and 
provisions;
    (c) To recommend regulations to effectuate the terms and provisions 
of this subpart;
    (d) To hold at least one annual meeting and any additional meetings 
it deems appropriate;
    (e) To elect members of the Board to serve on the Executive 
Committee;
    (f) To approve or reject budgets submitted by the Executive 
Committee;
    (g) To submit budgets to the Secretary for approval;
    (h) To contract with entities, if necessary, to implement plans or 
projects in accordance with the Act;
    (i) To conduct programs of promotion, research, consumer 
information, education, industry information, and producer information;
    (j) To receive, investigate, and report to the Secretary complaints 
of violations of this subpart;
    (k) To recommend to the Secretary amendments to this subpart;
    (l) To provide the Secretary with prior notice of meetings of the 
Board to permit the Secretary or a designated representative to attend 
such meetings;
    (m) To provide not less than annually a report to producers, 
feeders, and importers, accounting for the funds expended by the Board, 
and describing programs implemented under the Act; and to make such 
report available to the public upon request;
    (n) To establish seven regions that, to the extent practicable, 
contain geographically contiguous States and approximately equal 
numbers of sheep producers and sheep production;
    (o) To employ or retain necessary staff; and
    (p) To invest funds in accordance with Sec. 1280.214.
Sec. 1280.212  Budgets.
    (a) In general. The Board shall review the budget 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 [[Page 28755]] producer 
information projects. The Board shall submit the budget to the 
Secretary for the Secretary's approval.
    (b) Limitation. No expenditure of funds may be made by the Board 
unless such expenditure is authorized under a budget or budget 
amendment approved by the Secretary.
Sec. 1280.213  Books and records of the Board.
    The Board shall:
    (a) Maintain such books and records, which shall be made available 
to the Secretary for inspection and audit, as the Secretary may 
prescribe,
    (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 it. The Board shall cause its books and records to be audited by an 
independent auditor at the end of each fiscal year, and a report of 
such audit to be submitted to the Secretary.
Sec. 1280.214  Investment of funds.
    The Board may invest, pending disbursement, funds it receives under 
this subpart, only in obligations of the United States or any agency 
thereof, in general obligations of any State or any political 
subdivision thereof, in any interest-bearing account or certificate of 
deposit of a bank that is a member of the Federal Reserve System, or in 
obligations fully guaranteed as to principal and interest by the United 
States. Any income from any such investment may be used for any purpose 
for which the invested funds may be used.
Sec. 1280.215  Use of assessments.
    (a) Assessments received by the Board shall be used by the Board 
for the payment of expenses incurred in administering this subpart, 
including a reasonable reserve.
    (b) The Board shall reimburse the Secretary, from assessments 
collected, for costs incurred in implementing and administering the 
Order as provided for under the Act.
Executive Committee
Sec. 1280.216  Establishment.
    The Board shall establish an Executive Committee of the Board to 
assist the Board in the administration of the terms and provisions of 
this subpart, under the direction of the Board, and consistent with the 
policies determined by the Board.
Sec. 1280.217  Membership.
    The Executive Committee shall be comprised of 14 members. Eleven 
members of the Executive Committee shall be elected by the Board 
annually. Of these members:
    (1) One member shall represent each of the seven regions 
established under Sec. 1280.211(n) for a total of seven members 
representing producers;
    (2) One member shall represent feeders; and
    (3) Three members shall represent importers.
    The remaining three members of the Executive Committee shall be the 
elected officers of the Board.
Sec. 1280.218  Powers and duties.
    (a) Plans and Projects. The Executive Committee shall develop plans 
or projects of promotion and advertising, research, consumer 
information, education, industry information, and producer information, 
which plans or projects shall be paid for with assessments collected by 
the Board. The plans or projects shall not become effective until 
approved by the Secretary.
    (b) Budgets. The Executive Committee shall be responsible for 
developing and submitting to the Board, for Board approval, budgets on 
a fiscal year basis of the Board's anticipated expenses and 
disbursements, including the estimated costs of advertising and 
promotion, research, consumer information, education, industry 
information, and producer information projects. The Board shall approve 
or disapprove such budgets and, if approved, shall submit them to the 
Secretary for the Secretary's approval.
Sec. 1280.219  Term of office.
    Terms of appointment to the Executive Committee shall be for 1 
year.
Sec. 1280.220  Chairperson.
    The Chairperson of the Board shall serve as chairperson of the 
Executive Committee.
Sec. 1280.221  Quorum.
    A quorum of the Executive Committee shall consist of eight members.
Sec. 1280.222  Vacancies.
    To fill any vacancy caused by the death, removal, resignation, or 
disqualification of any member of the Executive Committee, the Board 
shall elect a successor for the position pursuant to Sec. 1280.217.
Expenses
Sec. 1280.223  Expenses.
    (a) The Board shall be responsible for all expenses of the Board 
and the Executive Committee.
    (b) Contracts and Agreements. Any contract or agreement entered 
into by the Board shall provide that:
    (1) The contracting party shall develop and submit to the Board a 
plan or project of promotion, research, education, consumer 
information, industry information, and producer information, together 
with a budget or budgets that shall show estimated costs to be incurred 
for such plan or project; and
    (2) No plan, project, contract, or agreement shall become effective 
until it has been approved by the Secretary.
    (c) The contracting party shall:
    (1) keep accurate records of all of its transactions;
    (2) account for funds received and expended, including staff time, 
salaries, and expenses expended on behalf of Board activities;
    (3) make periodic reports to the Board of activities conducted; and
    (4) make such other reports as the Board or the Secretary may 
require.
Assessments
Sec. 1280.224  Sheep purchases.
    (a) In general. Each person making payment to a producer or feeder 
for sheep purchased from the producer or feeder shall be a collecting 
person and shall collect an assessment from the producer or feeder on 
each sheep sold by the producer or feeder. Each such producer or feeder 
shall pay such assessment to the collecting person at the rate set 
forth in paragraph (d) below.
    (b) Remittances. Each processor making payment to a producer, 
feeder, or collecting person for sheep purchased from the producer, 
feeder, or collecting person shall be a collecting person and shall 
collect an assessment from the producer, feeder, or other collecting 
person on each sheep sold by the producer, feeder, or collecting 
person, and each such producer, feeder, or collecting person shall pay 
such assessment to the processor at the rate set forth in paragraph (d) 
below, and such processor shall remit the assessment to the Board.
    (c) Processing. Any person who purchases sheep for processing shall 
collect the assessment from the seller and remit the assessment to the 
Board.
    (d) Rate. Except as otherwise provided, the rate of assessment 
shall be 1-cent-per-pound of live sheep sold. The rate of assessment 
may be raised or lowered no more than 0.15 of a cent in 
[[Page 28756]] any 1 year as recommended by the Executive Committee and 
approved by the Board and the Secretary. The rate of assessment shall 
not exceed 2\1/2\-cents-per-pound.
Sec. 1280.225  Wool purchases.
    (a) In general. Each person making payment to a producer, feeder, 
or handler of wool for wool purchased from the producer, feeder, or 
handler shall be a collecting person and shall collect an assessment 
from the producer, feeder, or handler on each pound of greasy wool 
sold. The producer, feeder, or handler shall pay such assessment to the 
collecting person at the rate set forth in (d) below.
    (b) Remittances. Each processor making payment to a producer, 
feeder, handler, or collecting person for wool purchased from the 
producer, feeder, handler, or collecting person shall be a collecting 
person and shall collect an assessment from the producer, feeder, 
handler, or other collecting person on all wool sold by the producer, 
feeder, handler, or collecting person, and each such producer, feeder, 
handler, or collecting person shall pay such assessment to the 
processor at the rate set forth in paragraph (d) below and such 
processor shall remit the assessment to the Board.
    (c) Processing. Any person purchasing greasy wool for processing 
shall collect the assessment and remit the assessment to the Board.
    (d) Rate. Except as otherwise provided, the rate of assessment 
shall be 2-cents-per-pound. The rate of assessment may be raised or 
lowered no more than 0.2 of a cent per pound in any 1 year as 
recommended by the Executive Committee and approved by the Board and 
the Secretary. The rate of assessment shall not exceed 4-cents-per-
pound of greasy wool.
Sec. 1280.226  Direct processing.
    Each person who processes or causes to be processed sheep or sheep 
products of that person's own production, and markets such sheep or 
sheep products, shall pay an assessment on such sheep or sheep products 
at the time of sale at a rate equivalent to the rate established in 
Sec. 1280.224(d) or Sec. 1280.225(d), as appropriate, and shall remit 
such assessment to the Board.
Sec. 1280.227  Export.
    Each person who exports live sheep or greasy wool shall remit the 
assessment on such sheep or greasy wool at the time of export, at a 
rate equivalent to the rate established in Sec. 1280.224(d) or 
Sec. 1280.225(d), as appropriate, and shall remit such assessment to 
the Board.
Sec. 1280.228  Imports.
    (a) In general. Each person who imports sheep or sheep products or 
who imports wool or products containing wool (with the exception of raw 
wool) into the United States shall pay an assessment to the Board.
    (b) Collection. The Customs Service is authorized to collect and 
remit such assessment to the Secretary for disbursement to the Board.
    (c) Rate for Sheep and Sheep Products. The assessment rate for 
sheep shall be 1-cent-per-pound of live sheep. The assessment rate for 
sheep products shall be the equivalent of 1-cent-per-pound of live 
sheep, as determined by the Secretary in consultation with the domestic 
sheep industry. Such rates may be raised or lowered no more than 0.15-
cent-per-pound in any 1 year as recommended by the Executive Committee 
and approved by the Board and the Secretary, but shall not exceed 2\1/
2\-cents-per-pound.
    (d) Rate for Wool and Wool Products. The assessment rate for wool 
and products containing wool shall be 2-cents-per-pound of degreased 
wool or the equivalent of degreased wool. The rate of assessment may be 
raised or lowered no more than 0.2-cents-per-pound in any 1 year, as 
recommended by the Executive Committee and approved by the Board and 
the Secretary, but shall not exceed 4-cents-per-pound of clean wool or 
the equivalent.
    (e) The Secretary shall issue regulations regarding the assessment 
rates for imported sheep and sheep products. The Secretary may exclude 
from assessment certain imported products that contain de minimis 
levels of sheep or sheep products and waive the assessment on such 
products.
Sec. 1280.229  Qualified State Sheep Boards.
    (a) Except as provided in paragraph (b) below, 20 percent of the 
total assessments collected by the Board on the marketings of domestic 
sheep and domestic sheep products in any 1 year from a State shall be 
returned to the QSSB of the State.
    (b) No QSSB shall receive less than $2,500 under paragraph (a) 
above in any 1 year.
    (c) The Board shall establish procedures with the approval of the 
Secretary to account for funds expended pursuant to paragraphs (a) and 
(b) of this section.
Sec. 1280.230  Collection.
    (a) Each person responsible for the collection and remittance to 
the Board of assessments under this subpart shall do so on a monthly 
basis, unless the Board, with the approval of the Secretary, has 
specifically authorized otherwise.
    (b) Late Payment Charges. Any unpaid assessments due the Board or 
from a person responsible for remitting assessments to the Board, shall 
be increased by 2 percent each month beginning with the day after the 
date such assessments were due under this subpart. Any assessments or 
late payment charges that remain unpaid shall be increased at the same 
rate on the corresponding day of each month thereafter until paid.
    (c) Any unpaid assessments due to the Board pursuant to 
Sec. 1280.224, Sec. 1280.225, Sec. 1280.226, and Sec. 1280.227 shall be 
increased 2 percent each month beginning with the day following the 
date such assessments were due. Any remaining amount due, which shall 
include any unpaid charges previously made pursuant to this paragraph, 
shall be increased at the same rate on the corresponding day of each 
month thereafter until paid. For the purposes of this paragraph, any 
assessment determined at a date later than the date prescribed by this 
subpart because of a person's failure to submit a timely report to the 
Board shall be considered to have been payable by the date it would 
have been due if the report had been timely filed. The date of payment 
is the applicable postmark date or the date of receipt by the Board, 
whichever is earlier.
    (d) If the Board is not in place by the date the first assessments 
are to be collected, the Secretary shall have the authority to receive 
assessments and invest them on behalf of the Board, and shall pay such 
assessments and any interest earned to the Board when it is formed. The 
Secretary shall have the authority to promulgate rules and regulations 
concerning assessments and the collection of assessments if the Board 
is not in place or is otherwise unable to develop such rules and 
regulations.
Sec. 1280.231  Prohibition on use of funds.
    (a) Except as otherwise provided in paragraph (b) below, no funds 
collected by the Board under this subpart shall be used in any manner 
for the purpose of influencing any action or policy of the United 
States Government, any foreign or State Government, or any political 
subdivision thereof. [[Page 28757]] 
    (b) The prohibition in paragraph (a) shall not apply:
    (1) To the development and recommendation of amendments to this 
subpart; or
    (2) To 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 this subpart;
    (c) A plan or project conducted pursuant to this title shall not 
make false or misleading claims on behalf of sheep or sheep products or 
against a competing product.
    (d) No such plans or projects shall be undertaken to promote or 
advertise any sheep or sheep products by brand or trade name without 
the approval of the Board and the concurrence of the Secretary.
Reports, Books, and Records
Sec. 1280.232  Reports.
    (a) Each collecting person, including processors and other persons 
required to remit assessments to the Board pursuant to Sec. 1280.224(b) 
for live sheep, each person who markets sheep products of that person's 
own production and each exporter of sheep shall report to the Board 
information pursuant to regulations prescribed by the Board and 
approved by the Secretary. Such information may include:
    (1) The number of sheep purchased, initially transferred or which, 
in any other manner, are subject to the collection of assessment, and 
the dates of such transaction;
    (2) The number of sheep imported or exported, or the equivalent 
thereof of sheep products imported;
    (3) The amount of assessment remitted;
    (4) An explanation for the remittance of any assessment that is 
less than the pounds of sheep multiplied by the assessment rate; and
    (5) The date any assessment was paid.
    (b) Each collecting person, including processors and other persons 
required to remit assessments to the Board pursuant to Sec. 1280.225(b) 
for wool purchased from the producer or handler of wool or wool 
products, each person purchasing greasy wool for processing, each 
importer of wool or wool products (except raw wool), each exporter of 
greasy wool, and each person who markets wool of that person's own 
production shall report to the Board information pursuant to 
regulations prescribed by the Board and approved by the Secretary. Such 
information may include:
    (1) The amount of wool purchased, initially transferred or in any 
other manner subject to the collection of assessment, and the dates of 
such transaction;
    (2) The amount of wool imported (except raw wool) or the equivalent 
thereof of wool products imported or the amount of greasy wool 
exported;
    (3) The amount of assessment remitted;
    (4) An explanation for the remittance of an assessment that is less 
than the pounds of wool multiplied by the assessment rate; and
    (5) The date any assessment was paid.
Sec. 1280.233  Books and records.
    (a) Each collecting person, including processors and other persons 
required to remit assessments to the Board, each importer of sheep or 
sheep products (except raw wool), and exporter of sheep or greasy wool, 
and each person who markets sheep products of that person's own 
production, shall maintain and make available for inspection such books 
and records as may be required by regulations prescribed by the Board 
and approved by the Secretary, including records necessary to verify 
any required reports. Such records shall be maintained for the period 
of time prescribed by the regulations issued hereunder.
    (b) Document Evidencing Payment of Assessments. Each collecting 
person responsible for collecting an assessment paid pursuant to this 
subpart, other than a person who slaughters sheep or markets sheep 
products of his or her own production for sale, is required to give the 
person or collecting person from whom the collecting person collected 
an assessment written evidence of payment of the assessments paid 
pursuant to this Subpart. Such written evidence serving as a receipt 
shall include:
    (1) Name and address of the collecting person;
    (2) Name of the producer who paid the assessment;
    (3) Number of head of sheep or pounds of wool sold;
    (4) Total assessments paid by the producer;
    (5) Date; and
    (6) Such other information as the Board, with the approval of the 
Secretary, may require.
Sec. 1280.234  Use of information.
    Information from records or reports required pursuant to this 
subpart shall be made available to the Secretary as is appropriate to 
the administration or enforcement of the Act, this subpart or any 
regulation issued under the Act. In addition, the Secretary shall 
authorize the use under this part of information that is accumulated 
under laws or regulations other than the Act or regulations issued 
under the Act regarding persons paying producers, feeders, importers, 
handlers, or processors.
Sec. 1280.235  Confidentiality.
    (a) All information from records or reports required pursuant to 
this subpart shall be kept confidential by all officers and employees 
of the Department and of the Board. Such information may be disclosed 
only if the Secretary considers the information relevant, the 
information is disclosed only in a suit or administrative hearing 
brought at the direction or on the request of the Secretary, or to 
which the Secretary or any officer of the United States is a party, and 
the information relates to the Act.
    (b) Administration. No information obtained under the authority of 
this subpart may be made available to any agency or officer of the 
Federal Government for any purpose other than the implementation of the 
Act and any investigatory or enforcement action necessary for the 
implementation of the Act.
    (c) General Statements. Nothing in paragraph (a) may be deemed to 
prohibit:
    (1) the issuance of general statements, based on the reports of the 
number of persons subject to this subpart or statistical data collected 
therefrom, which statements do not identify the information furnished 
by any person, or
    (2) the publication, by direction of the Secretary, of the name of 
any person violating this subpart and a statement of the particular 
provisions of this subpart violated by such person.
    (d) Penalty. Any person who willfully violates the provisions of 
this subpart, 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, 
that person shall be removed from office.
Miscellaneous
Sec. 1280.240  Right of the Secretary.
    All fiscal matters, programs or projects, bylaws, rules or 
regulations, reports, or other substantive actions proposed, and 
prepared by the Board shall be submitted to the Secretary for approval. 
[[Page 28758]] 
Sec. 1280.241  Proceedings after termination.
    (a) Upon the termination of this subpart, the Board shall recommend 
not more than five of its members to the Secretary to serve as trustees 
for the purpose of liquidating the affairs of the Board. Such persons, 
upon designation by the Secretary, shall become trustees of all the 
funds and property owned, in the possession of or under the control of 
the Board, including any claims of the Board against third parties that 
exist at the time of such termination.
    (b) The trustees shall:
    (1) Act as trustees until discharged by the Secretary;
    (2) Carry out the obligations of the Board under any contracts or 
agreements entered into by the Board pursuant to Sec. 1280.223(b);
    (3) From time to time account for all receipts and disbursements 
and deliver all property on hand, together with all books and records 
of the Board and of the trustees, to such persons as the Secretary may 
direct; and
    (4) Upon the request of the Secretary, execute such assignment of 
other instruments necessary or appropriate to transfer to such persons 
full title and right to all of the funds, property, and claims of the 
Board or the trustees pursuant to this subpart.
    (c) Any person to whom funds, property or claims have been 
transferred or delivered pursuant to this subpart shall be subject to 
the same obligation imposed upon the Board and upon the trustees.
    (d) Any residual funds not required to pay the necessary costs of 
liquidation shall be turned over to the Secretary to be used, to the 
extent practicable, for continuing one or more of the promotion, 
research, consumer information, education, industry information, and 
producer information plans or projects authorized pursuant to this 
subpart.
Sec. 1280.242  Effect of termination or amendment.
    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant 
thereto, or the issuance of any amendment to either thereof, shall not:
    (a) Affect or waive any right, duty, obligation, or liability that 
has arisen or may hereafter arise in connection with any provision of 
this subpart or any regulation issued thereunder; or
    (b) Release or extinguish any violation of this subpart or any 
regulation issued thereunder; or
    (c) Affect or impair any rights or remedies of the United States, 
the Secretary or any person with respect to any such violation.
Sec. 1280.243  Personal liability.
    No member, employee, or agent of the Board, including employees, 
agents, or Board members of the QSSB, acting pursuant to the authority 
provided in this subpart, shall be held personally responsible, either 
individually or jointly, in any way whatsoever, to any person for 
errors in judgment, mistakes, or other acts of either commission or 
omission, of such member, employee, or agent except for acts of 
dishonesty or willful misconduct.
Sec. 1280.244  Patents, copyrights, inventions, and publication.
    Any patents, copyrights, inventions, or publications developed 
through the use of funds remitted to the Board under the provisions of 
this subpart shall be the property of the United States Government as 
represented by the Board, and shall, along with any rents, royalties, 
residual payments, or other income from the rental, sales, leasing, 
franchising, or other uses of such patents, copyrights, inventions, or 
publications, inure to the benefit of the Board. Upon termination of 
this subpart, Sec. 1280.240 shall apply to determine disposition of all 
such property.
Sec. 1280.245  Amendments.
    Amendments to the subpart may be proposed, from time to time, by 
the Board or by any interested person affected by the provisions of the 
Act, including the Secretary.
Sec. 1280.246  Separability.
    If any provision of this subpart is declared invalid or its 
applicability to any person or circumstances is held invalid, the 
validity of the remainder of this subpart of the applicability thereof 
to other persons or circumstances shall not be affected thereby.
Proposal II
Sec. 1280.201  Establishment and membership of the Board.
    (c) Importers. Importers shall be represented by 25 members. At 
least six members shall represent importers of sheepmeat, and the 
remaining importer positions shall be proportionally allocated to 
importers of wool and sheep and sheep products.
Sec. 1280.202  Nominations.
    (c) Importers. The Secretary shall appoint importers to seats 
established under Sec. 1280.201(c), with nominations for representation 
of the importer unit made by organizations which represent importers of 
sheep or sheep products.
Executive Committee
Sec. 1280.217  Membership.
    (3) Three members of the Executive Committee shall represent 
importers, and at least one importer member shall represent sheepmeat 
importers.
Proposal III
Expenses
Sec. 1280.223  Expenses.
    (d) The use of assessments for country of origin-specific 
promotions or programs is prohibited.
Proposal IV
Expenses
Sec. 1280.223  Expenses.
    (d) Funds generated under this subpart shall be used to promote a 
wide range of wool products in the United States including interior 
textile products, e.g., carpet, rugs, and upholstery.
    (e) Funds generated under this subpart shall be used to promote 
wool generically rather than to promote wool specifically grown in the 
United States.
Proposal V
Expenses
Sec. 1280.223  Expenses.
    (d) Funds generated under this subpart shall be used for the 
promotion of ``Fresh American Lamb.''

Subpart B--[Reserved]

Subpart C--Procedures for Certification of Organizations and 
Nominations of Sheep Producers, Feeders, and Importers for Appointment 
to the National Sheep Promotion, Research, and Information Board

PART 1280--SHEEP PROMOTION, RESEARCH, AND INFORMATION

1280.400  General.
1280.401  Definitions.
1280.402  Administration.
1280.403  Certification of Eligibility.
1280.404  Application for Certification.
1280.405  Review of Certification.
1280.406  Notification of Certification and the Listing of Certified 
Organizations.
1280.407  Solicitation of Nominations for Appointment to the Board.
1280.408  Nominations of Members for Appointment to the Board.
1280.409  Initial Board Membership.
1280.410  Length of Appointment to Initial Board.
1280.411  Acceptance of Appointment.
1280.412  Verification.
1280.413  Confidential Treatment of Information.
1280.414  Paperwork Reduction Act Assigned Number.
Sec. 1280.400  General.

    The Secretary shall determine which organizations are certified as 
eligible to nominate sheep producers and [[Page 28759]] alternates, 
sheep feeders, and importers of sheep and sheep products (excluding 
importers that import only raw wool) for appointment to the Board. The 
making and receiving of the nominations shall be conducted in 
accordance with this Subpart.
Sec. 1280.401  Definitions.
    As used in this subpart:
    (a) The term ``Act'' means the Sheep Promotion, Research, and 
Information Act of 1994, 7 U.S.C. 7101-7111, Public Law 103-407, 108 
Statute 4210, enacted October 22, 1994, and any amendments thereto.
    (b) The term ``Board'' means the National Sheep Promotion, 
Research, and Information Board.
    (c) The term ``carbonized wool'' means wool that has been immersed 
in a bath, usually of mineral acids or acid salts, that destroys 
vegetable matter in the wool, but does not affect the wool fibers.
    (d) The term ``Department'' means the U.S. Department of 
Agriculture.
    (e) The term ``feeder'' means any person who feeds lambs until the 
lambs reach slaughter weight.
    (f) The term ``importer'' means any person who imports sheep or 
sheep products into the United States.
    (g) The term ``Livestock and Seed Division'' means the Livestock 
and Seed Division of the Department's Agricultural Marketing Service.
    (h) The term ``National feeder organization'' means any 
organization of feeders that has been certified by the Secretary 
pursuant to the Act and this part as being eligible to submit 
nominations for membership on the Board.
    (i) The term ``person'' means any individual, group of individuals, 
partnership, corporation, association, cooperative, or any other legal 
entity.
    (j) The term ``producer'' means any person, other than a feeder, 
who owns or acquires ownership of sheep.
    (k) The term ``raw wool'' means greasy wool, pulled wool, degreased 
wool, or carbonized wool.
    (l) The term ``Secretary'' means the Secretary of Agriculture of 
the United States or any officer or employee of the Department to whom 
authority has been delegated, or to whom authority may be delegated to 
act in the Secretary's stead.
    (m) The term ``sheep'' means ovine animals of any age, including 
lambs.
    (n) The term ``sheep products'' means products produced in whole or 
in part from sheep, including wool and products containing wool fiber.
    (o) The term ``State'' means each of the 50 States.
    (p) The term ``unit'' means each State, group of States or class 
designation that is represented on the Board.
    (q) The term ``United States'' means the 50 States and the District 
of Columbia.
    (r) The term ``wool'' means the fiber from the fleece of a sheep.
    (s) The term ``wool products'' means products produced, in whole or 
in part, from wool and products containing wool fiber.
Sec. 1280.402  Administration.
    The Livestock and Seed Division shall have the responsibility of 
administering the provisions of this subpart.
Sec. 1280.403  Certification of eligibility.
    (a) State Organizations. Requirements for Certification. The 
Secretary shall certify any State organization that the Secretary 
determines meets the criteria established under paragraphs (a) and (b) 
of this section to be eligible for certification to nominate producer 
members and alternate producer members to the Board. Certification for 
State producer organizations shall be based upon:
    (1) The geographic territory covered by the active membership of 
the organization;
    (2) 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;
    (3) Evidence of stability and permanency of the organization;
    (4) Sources from which the operating funds of the organization are 
derived;
    (5) The functions of the organization; and
    (6) The ability and willingness of the organization to further the 
aims and objectives of the Act.
    (b) Primary Considerations. A primary consideration in determining 
the eligibility of a State producer organization under this paragraph 
shall be whether:
    (1) The membership of the organization consists primarily of 
producers who own a substantial quantity of sheep; and
    (2) An interest of the organization is in the production of sheep.
    (c) Feeder and Importer Organizations. Requirements for 
certification.
    The Secretary shall certify any national feeder organization and 
qualified importer organization that the Secretary determines meets the 
following criteria to be eligible for certification to nominate feeders 
and importers to the Board:
    (1) The organization's active membership includes a significant 
number of feeders or importers in relation to the total membership of 
the organization;
    (2) There is evidence of stability and permanency of the 
organization; and
    (3) The organization has a primary and overriding interest in 
representing the feeder or importer segment of the sheep industry.
    (d) The Secretary may also consider additional information that the 
Secretary deems relevant and appropriate. The Secretary's determination 
as to eligibility shall be final.
Sec. 1280.404  Application for certification.
    Any organization that meets the eligibility criteria for 
certification specified in Sec. 1280.403 is entitled to apply to the 
Secretary for such certification of eligibility to nominate sheep 
producers, feeders, or importers for appointment to the Board. The 
Secretary may require third party verification of information submitted 
by organizations, in determining their eligibility. To apply, such 
organization must submit a completed ``Application for Certification of 
Organization'' form. Copies may be obtained from the Livestock and Seed 
Division; AMS-USDA, Room 2606-S; P.O. Box 96456; Washington, D.C. 
20090-6456. (Telephone: 202/720-1115)
Sec. 1280.405  Review of certification.
    The Secretary may terminate or suspend certification or eligibility 
of any organization or association if it ceases to comply with the 
certification or eligibility criteria set forth in this subpart. The 
Secretary may require any information deemed necessary to ascertain 
whether the organization may remain certified or eligible to make 
nominations. The Secretary may require third party verification of 
information submitted by organizations in determining their eligibility 
to continue making nominations.
Sec. 1280.406  Notification of certification and the listing of 
certified organizations.
    Organizations shall be notified in writing whether they are 
eligible to nominate sheep producers, feeders, or importers as members 
to the Board or not. A copy of the certification or eligibility 
determination shall be furnished to certified or eligible 
organizations. Copies shall also be available for inspection in the 
Livestock and Seed Division. [[Page 28760]] 
Sec. 1280.407  Solicitation of nominations for appointment to the 
Board.
    In general, as soon as practicable after this subpart becomes 
operational, nominations for appointment to the initial Board shall be 
obtained from certified producer, feeder, and importer organizations by 
the Secretary.
    (a) Initially Established Board.
    (1) Producer and Alternate Nominations. The Secretary shall solicit 
from organizations certified under Sec. 1280.403 (a) and (b) 
nominations for each producer or alternate member seat on the initially 
established Board to which a unit is entitled. If no such organization 
exists, the Secretary shall solicit nominations for appointments in 
such manner as the Secretary determines appropriate.
    (2) Feeder and Importer Nominations. The Secretary shall solicit 
from organizations certified under Sec. 1280.403(c) nominations for 
each feeder or importer member on the initially established Board to 
which a unit is entitled. If no such organization exists, the Secretary 
shall solicit nominations for appointment in such manner as the 
Secretary determines appropriate.
Sec. 1280.408  Nomination of members for appointment to the Board.
    (1) In general. All nominations to the Board shall be made in the 
following manner:
    (a) Producers. The Secretary shall appoint sheep producer and 
alternate members to represent units as specified under Sec. 1280.409 
(a) and (b) of this subpart, from nominations submitted by 
organizations certified under Sec. 1280.403. A certified organization 
may only submit nominations for producer representatives and alternates 
if appropriate from the membership of the organization for the unit in 
which the organization operates. To be represented on the Board, each 
certified organization shall submit to the Secretary at least 1.5 
nominations for each seat on the Board for which the unit is entitled 
to representation. If a unit is entitled to only one seat on the Board, 
the unit shall submit at least two nominations for the appointment. If 
a producer member and a producer alternate member are to be appointed 
to represent the unit, at least three nominations must be submitted for 
the two positions.
    (b) Feeders. The Secretary shall appoint representatives of the 
feeder sheep industry to seats established under Sec. 1280.409(c), from 
nominations submitted by qualified national organizations certified 
under Sec. 1280.403 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 to which the feeder sheep 
industry is entitled.
    (c) Importers. The Secretary shall appoint importers to seats 
established under Sec. 1280.409(d) from nominations submitted by 
qualified organizations certified under Sec. 1280.403 that represent 
importers of sheep and sheep products. The Secretary shall receive at 
least 1.5 nominations for each appointment to the Board to which 
importers are entitled.
    (d) After the establishment of the initial Board, the Department 
shall announce when a vacancy does or will exist. Nominations for 
subsequent appointments shall be initiated by the Secretary with the 
Board securing the nominations from certified producer organizations. 
Feeder and importer nominees shall be submitted directly to the 
Secretary by certified feeder and importer organizations. Nominations 
shall be initiated not less than 6 months before the expiration of the 
terms of the members whose terms are expiring, in the manner as 
described in this section. In the case of vacancies caused by the 
death, removal, resignation, or disqualification of any member of the 
Board, the Secretary shall appoint a successor from the most recent 
list of nominations for the position or from nominations submitted by 
the Board for producers or from certified feeder or importer 
organizations for feeders and importers.
    (e) Where there is more than one eligible organization representing 
producers in a State or unit, or representing feeders, or importers, 
they may caucus and jointly nominate a minimum of 1.5 qualified persons 
for each position representing that unit on the Board for which a 
producer member or producer alternate member is to be appointed. If 
they cannot agree on any such nominations, or if no caucus is held, 
each eligible organization may submit to the Secretary at least 1.5 
nominations for each seat on the Board for which the unit is entitled 
to representation. If a unit is entitled to only one seat on the Board, 
the unit shall submit at least two nominations for the appointment to 
represent that unit.
    (f) Nominations should be submitted in order of preference and, for 
the initial Board, in order of preference for staggered terms. If the 
Secretary rejects any nominations submitted and there are insufficient 
nominations submitted from which appointments can be made, the 
Secretary may request additional nominations under paragraph (a), (b), 
or (c) above.
    (2) Official Nomination Forms. A ``Nomination for Appointment to 
the National Sheep Promotion, Research, and Information Board'' must be 
used to nominate producers, feeders, or importers for appointment to 
the Board. An ``Advisory Committee Membership Background Information'' 
form must be completed by each nominee listed on the ``Nomination for 
Appointment to the National Sheep Promotion, Research, and Information 
Board'' and must be attached to that form. Official nomination forms 
and additional information on nominations are available from the 
Marketing Programs Branch; Livestock and Seed Division; AMS-USDA, Room 
2606-S; P.O. Box 96456; Washington, D.C. 20090-6456 (Telephone: 202/
720-1115).
    (3) The Secretary may reject any nomination submitted under 
subsection (1) of this section. If there are insufficient nominations 
from which to appoint members to the Board because the Secretary 
rejected the nominations submitted by a State or unit, the State or 
unit shall submit additional nominations, as provided in paragraph (1) 
of this section.
Sec. 1280.409  Initial Board membership.
    (a) Base Membership. The number of producer members appointed to 
the Board from each State or unit shall be allocated as follows:
    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; and Wyoming 5.
    (b) Alternate Members. A unit represented by only one producer 
member may have an alternate producer member appointed to ensure 
representation at meetings of the Board.
    (c) Feeders. The feeder sheep industry shall be represented by ten 
members.
    (d) Importers. Importers shall be represented by 25 members.
Sec. 1280.410  Length of appointment to the initial Board.
    When the Secretary appoints the members to the initial Board, the 
[[Page 28761]] Secretary shall also specify the term of office for each 
member. To the extent practicable, one-third of the members shall serve 
for 1-year, one-third shall serve for 2-years, and one-third shall 
serve for 3-years. No person may serve more than two consecutive 3-year 
terms, except that elected officers shall not be subject to the term 
limitation while they hold office.
Sec. 1280.411  Acceptance of appointment.
    Producers, feeders, and importers nominated to the Board must 
confirm in writing their intent to serve if appointed, to disclose any 
relationship with any organization that operates a qualified State or 
regional program or has a contractual relationship with the Board and 
to withdraw from participation in deliberations, decision making, or 
voting on matters that concern the aforementioned disclosed 
relationships.
Sec. 1280.412  Verification.
    The Secretary shall have the right to examine at any time the 
books, documents, papers, records, files, and facilities of nominating 
units as the Secretary deems necessary to verify the information 
submitted and to procure such other information as may be required to 
determine whether the unit is eligible to nominate sheep producers, 
feeders, or importers for appointment to the Board.
Sec. 1280.413  Confidential treatment of information.
    All documents submitted in accordance with this subpart shall be 
kept confidential by all employees of the Department. Nothing in this 
section shall be deemed to prohibit the disclosure of such information 
so furnished or acquired as the Secretary deems relevant and then only 
in the issuance of general statements based upon the reports of a 
number of persons subject to the Order or statistical data collected 
therefrom, when such a statement or data does not identify the 
information furnished by any one person.
Sec. 1280.414  Paperwork Reduction Act assigned number.
    The control number assigned to the information collection 
requirements in Part 1280 by OMB pursuant to the Paperwork Reduction 
Act of 1980 is OMB 0581-0093.
Subpart D--[Reserved]
Subpart E--[Reserved]
    Dated: May 26, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-13485 Filed 6-1-95; 8:45 am]
BILLING CODE 3410-02-P