[Federal Register Volume 60, Number 152 (Tuesday, August 8, 1995)]
[Proposed Rules]
[Pages 40313-40323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19605]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1280

[No. LS-95-008]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Sheep Promotion, Research, and Information Act of 1994 
(Act) authorizes a program of promotion, research, and information to 
be developed through the promulgation of the Sheep and Wool Promotion, 
Research, Education, and Information Order (Order). The Act requires 
that after the issuance of the final Order, the Secretary shall conduct 
an initial referendum among sheep producers, sheep feeders, and 
importers of sheep and sheep products to determine whether the Order 
will go into effect. For the program to become operational, the final 
Order must be approved by sheep producers, sheep feeders, and importers 
of sheep and sheep products voting in the initial referendum. Importers 
who only import raw wool are not eligible to participate in the 
referendum. This proposed rule sets forth the procedures for conducting 
the initial referendum to determine if producers, feeders, and 
importers approve the final Order. These rules would also apply to any 
additional referendum conducted pursuant to the Act.

DATES: Written comments must be received by September 7, 1995.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief; 
Marketing Programs Branch; Livestock and Seed Division; Agricultural 
Marketing Service (AMS), USDA, Room 2606-S; P.O. Box 96456; Washington, 
D.C. 20090-6456. Comments hours at the above address in room 2606 South 
Agriculture Building, 14th and Independence Avenue SW., Washington, 
D.C. Comments on the information collection requirements contained in 
the proposed rule may also be sent to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington, D.C. 
20503. Attention: Desk Officer for the Agricultural Marketing Service, 
USDA.

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

SUPPLEMENTARY INFORMATION: This proposed rule is authorized under the 
Act (7 U.S.C. 7101-7111).

Regulatory Impact Analysis

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

    This proposal 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 court of the United States in any district 
in which the petitioner resides or carries on business has jurisdiction 
to review a ruling on the petition, if the petitioner files a complaint 
for that purpose not later than 20 days after the date of the entry of 
the Secretary's decision. The petitioner must exhaust his or her 
administrative remedies before he or she can initiate any such 
proceedings 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.
    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 that may be eligible to vote 
in the referendum. To obtain the estimated number of importers of sheep 
and sheep products who would be subject to an assessment and who may be 
eligible to vote in the referendum, the Department consulted with major 
importer organizations whose members import sheep and sheep products 
into the United States. Based on its consultations with these 
organizations, the Department estimates that the number of sheep and 
sheep product importers in the United States who would be subject to 
these rules and regulations is approximately 9,000. Nearly all of the 
sheep operations in the United States and nearly all of the importers 
of sheep and sheep products would be classified as small entities by 
the Small Business Administration (13 CFR 121.601).
    This action has also been reviewed under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.). This proposed rule would establish 
procedures for the conduct of a referendum to determine whether an 
Order promulgated under the Act becomes operational. Such procedures 
would permit all eligible sheep producers, sheep feeders, and importers 
of sheep and sheep products, excluding importers who import only raw 
wool, who have been engaged in sheep production, sheep feeding, or the 
importation of sheep and sheep products to vote in the referendum. 
Participation in the referendum is voluntary. Votes may be cast either 
by mail ballots or in-person at polling places. Casting votes by mail 
or in-person would not impose a significant economic burden on 
participants. Accordingly, the Administrator of AMS has determined that 
this rule will not have a significant economic impact on a substantial 
number of small business entities.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
Chapter 35), we have submitted the information collection requirements 
contained in this proposed rule to OMB for approval. OMB has assigned 
OMB control number 0581-0093. The information collection requirements 
in this proposed rule include the following:
    (a) For in-person voting:
    (1) Each sheep producer, sheep feeder, or importer of sheep and 
sheep products, except an importer who imports only raw wool, who vote 
in person in the referendum, must sign the Voter Registration List 
(Form LS-61-3) and complete a Ballot (Form LS-61) at the county 
Cooperative Extension Service (CES) office of the Department. The voter 
must complete the ballot and insert the ballot into the SHEEP BALLOT 
envelope (Form LS-61-1).
    (2) Each producer, feeder, and importer must complete the 
Certification and Registration Form that 

[[Page 40314]]
is printed on the SHEEP REFERENDUM envelope (Form LS-61-2), and insert 
the SHEEP BALLOT envelope, with the enclosed ballot, in the SHEEP 
REFERENDUM envelope (Form LS-61-2). The estimated average time burden 
for completing the forms for in-person voting is 6 minutes per voter.
    (b) For absentee voting: Each sheep producer, sheep feeder, and 
importer of sheep and sheep products, except an importer who imports 
only raw wool, who wants to cast an absentee vote instead of an in-
person vote, must complete, in a legible manner, a combined 
registration and absentee ballot form (Form LS-62). The voting 
producer, feeder, or importer must complete the form and insert the 
ballot portion in a SHEEP BALLOT envelope (Form LS-61-1) (same as for 
in-person voting) and then insert the sealed SHEEP BALLOT envelope and 
the registration form in the SHEEP REFERENDUM envelope (Form LS-62-1). 
The estimated average time burden for completing this procedure is 6 
minutes per voter.
    (c) The proposed rule requires each sheep producer, sheep feeder, 
or importer of sheep and sheep products who votes in person to record 
on the Voter Registration List (Form LS-61-3) his or her name and the 
name of the entity he or she represents. The estimated average time 
burden for registering to vote in person is 0.5 minutes per voter. For 
absentee voters, the county CES agent shall enter on the Absentee Voter 
Request List (Form LS-62-2) the date the ballot was requested, the 
name, the address, the name of the represented entity, if any, and the 
date the ballot was mailed from the county CES office. This information 
may be used to validate ballots and to challenge potentially ineligible 
voters. Each county CES agent will fill out one or more of the Absentee 
Voter Request Lists (Form LS-62-2) per referendum. Because only county 
CES agents will complete the Absentee Voter Request List, the estimated 
average reporting burden would not apply to the producer, feeder or 
importer voting in the referendum.
    The estimated number of producers, feeders, and importers who will 
vote in the referendum is 25,000, with each voting once.
    Please send comments concerning the information collection 
requirements contained in this proposed rule to the Office of 
Information and Regulatory Affairs, Office Management and Budget, 
Washington, DC 20503. Attention: Desk Officer for the Agricultural 
Marketing Service, USDA.
Background

    The Act (7 U.S.C. 7101-7111) provides for the establishment of a 
coordinated program of promotion, research, education, consumer 
information, industry information, and producer information designed to 
strengthen the sheep industry's position in the marketplace, maintain 
and expand existing markets, and develop new markets and uses for sheep 
and sheep products.
    The program will be funded by a mandatory assessment on domestic 
producers, feeders, and exporters of live sheep and greasy wool of 1-
cent-per-pound on live sheep sold and 2-cents-per-pound on greasy wool 
sold. Importers will be assessed 1-cent-per-pound on live sheep, the 
equivalent of 1-cent-per-pound of live sheep for sheep products as well 
as 2-cents-per-pound of degreased wool or the equivalent of degreased 
wool for wool and wool products. Imported raw wool would be exempt from 
assessments. Each person who processes or causes to be processed sheep 
and sheep products of that person's own production, and who markets the 
processed products, would be assessed the equivalent of 1-cent-per-
pound of live sheep sold or 2-cents-per-pound of greasy wool sold. All 
assessments may be adjusted in accordance with the applicable 
provisions of the Act.
    The Act requires that a referendum be conducted after the issuance 
of the final Order to determine whether the Order will go into effect. 
The referendum would be conducted among persons who were sheep 
producers, sheep feeders, or importers of sheep and sheep products, 
during a representative period specified by the Secretary. Importers 
who import only raw wool are not eligible to participate in the 
referendum because raw wool is exempt from assessments under the act. 
The Order would become operational only if it is approved by a majority 
of the producers, feeders, and importers voting in the referendum or by 
producers, feeders, and importers voting in the referendum who account 
for at least two-thirds of the production represented by persons voting 
in the referendum. If the final Order is not approved by persons voting 
in the referendum, the program will not become operational.
    To vote in the referendum, eligible persons will be required to 
complete the combined registration form, mark their ballots and record 
their volume of production on the ballot. The volume of production will 
be recorded as the number of live sheep or live sheep equivalents a 
person owned or imported during the representative period. As in past 
sheep or wool referendums conducted by the Department, the domestic 
volume of production includes the largest number of head of domestic 
sheep 6 months old or older owned for any single consecutive 30-day 
period during the representative period. The number of live sheep 
equivalents for imported sheep products will be calculated using 
published data on the amount of such products imported during the 
representative period. Producers, feeders and importers will be 
required to determine their volume of production before they register 
and vote in the referendum.
    The Act specifies that the Secretary shall determine a method of 
allocating, by a pro rate percentage of annual projected or actual 
assessments from importers, the volume of production represented by 
importers in a referendum conducted pursuant to this subpart. Because 
an Order implementing the provisions of the Act has not been in effect, 
imported sheep and sheep products have not been subject to the 
assessments described in the proposed Order (60 FR 28747). 
Consequently, there are no projected or actual annual assessments 
available to use in calculating the volume of production for importers 
during the representative period. In the absence of that information on 
annual assessments, the Department proposes that importers of sheep and 
sheep products determine their volume of production by converting the 
volume of those imported products that would have been subject to 
assessment if an Order had been in effect during the representative 
period. Imported sheep, sheep meat and wool and wool products that 
would have been subject to assessment during the representative period 
are identified by the Harmonized Tariff Schedule (HTS) classification 
numbers listed in Table 1--HTS Classification Numbers and Conversion 
Factors for Imported Sheep and Sheep Products--contained herein, which 
includes sheep, sheep meat and wool and wool products. Because the Act 
exempts imported raw wool from assessments, HTS numbers and 
corresponding conversion factors are not included for imported raw 
wool. For the purpose of this initial referendum, the Department 
proposes that importers use the 1994 HTS classification numbers and 
conversion factors in Table 1. These HTS numbers for imported sheep and 
sheep products are published in the Harmonized Tariff Schedule of the 
United States. To enable importers to convert sheep meat and 

[[Page 40315]]
wool and wool products identified by the HTS numbers for 1994 listed in 
Table 1, the Department proposes to use the conversion factors listed 
in the same table that correspond to each listed HTS number. The 
Department's Economic Research Service (ERS) has developed these 
conversion factors and maintains them in an import library. For sheep 
meat, these conversion factors take into account removal of bone, 
weight lost in processing or cooking, and nonsheep components of the 
sheep products. The conversion factors for wool products are used to 
determine the raw fiber content of imported wool products, and take 
into account fiber loss during processing, fabric trim loss, and 
cutting loss for wool.
    Factors in determining the number of live sheep equivalents include 
(1) The weight of the imported sheep meat, the weight of imported wool 
and wool product and the corresponding conversion factors, (2) the 
average carcass weight of 57 pounds for domestic mature sheep as 
published by the Department's National Agricultural Statistics Service 
in the March 1995 edition of the 1994 Livestock Slaughter Summary, (3) 
a dressing percentage of 50 percent, and (4) an equivalent live weight 
of 114 pounds for domestic mature sheep (57 lbs.  50% = 114 
lbs.). The dressing percentage of 50 percent is widely recognized as 
the average dressing percentage for sheep in the United States. The 
formula for calculating importer volume of production for imported wool 
and wool products will use the listed conversion factors and a clean 
wool yield of 52.8 percent, as published by ERS in the 1992 Weight, 
Measures, and Conversion Factors for Agricultural Commodities and Their 
Products, to convert clean wool to a greasy wool basis. In the absence 
of official data for carcass weights, live weights, dressing percentage 
and wool yield percentages of sheep from importing countries, the 
Department believes that the proposed carcass weight, the dressing 
percentage, the live weight, and the percentage of clean wool yield 
will, on the average, be most representative of carcass weights, 
dressing percentages, live weights and clean wool yield percentages of 
sheep from which imported sheep products are derived.
    Imported live sheep require no conversion and each head of imported 
live sheep would be counted in determining total volume of production 
for importers. Calculation procedures for both imported sheep meat and 
imported wool and wool products follow:

Imported Sheep Meat

    To calculate the live sheep equivalents of imported sheep meat, an 
importer would first multiply the total weight of imported sheep meat 
for each applicable HTS number by the specified conversion factor to 
determine the total carcass weight equivalent. The importer would then 
divide the total carcass weight equivalent by the average carcass 
weight of 57 pounds to determine the equivalent number of live sheep. 
Because the carcass weight of 57 pounds represents the equivalent live 
weight of 114 pounds (57 lbs.  50% = 114 lbs.), it is not 
necessary to convert the carcass weight to a live weight equivalent. 
The Department proposes that the number of live animal equivalents be 
rounded to the nearest whole number. If the decimal is less than 0.5, 
or greater, the number of head of sheep would be rounded upward i.e., 
7.5 = 8.0). If the decimal is less than 0.5, the number of head of 
sheep would be rounded downward (i.e. 7.49 = 7.0). The following 
examples illustrate two typical calculations:

Example I

Sheep Meat (Bone-in)
HTS Classification Number: 0204100000
Item Name: Carcasses and half carcasses of lamb, fresh or chilled
Assume: Company X imports 1,000 pounds of bone-in sheep meat
    Conversion factor: 1.00
    Average carcass weight: 57 pounds
1,000 pounds  x  1.00 = 1,000 pounds of carcass weight equivalent.
1,000 pounds carcass weight equivalent  57 pounds per carcass = 
17.5 or 18 live sheep equivalents.

Example II

Sheep Meat (Boneless)
HTS Classification Number: 0204232000
Item Name: Other meat of sheep, fresh or chilled: Boneless: lamb
Assume: Company X imports 1,000 pounds of boneless sheep meat
    Conversion factor: 1.52
    Average carcass weight: 57 pounds
1,000 pounds  x  1.52 = 1,520 pounds of carcass weight equivalent.
1,520 pounds carcass weight equivalent  57 pounds per carcass = 
26.6 or 27 live sheep equivalents.

Imported Wool and Wool Products

    To calculate the number of live sheep equivalents of imported wool 
products, the imported would first multiply the total weight of 
imported wool products for each applicable HTS number by the 
corresponding conversion factor to determine the total weight of clean 
wool. The importer would then divide the total weight of the clean wool 
equivalent by 52.8 percent, to convert the clean wool to a greasy wool 
basis. Finally, the importer would divide the total pounds of greasy 
wool by the calculated average live weight of 114 pounds to determine 
the number of live sheep equivalents. The Department proposes that the 
number of live animal equivalents be rounded to the nearest whole 
number. If the decimal is 0.5 greater, the number of head of sheep 
would be rounded upward (i.e., 7.5 = 8.0). If the decimal is less than 
0.5, the number of head of sheep would be rounded downward (i.e., 7.49 
= 7.0). The following example illustrates a typical calculation:

Example

Wool and Wool Products
HTS No. 6201110010
--Item Name: Mens or boys overcoats of wool or fine animal hair
Assume: Company X imports 1,000 overcoats weighing 2,000 pounds into 
the United States.
Conversion factor: 0.9774
2,000 pounds  x  0.9774 = 1954.8 pounds clean wool content
1954.8 pounds of clean wool content  52.8 percent = 3702.3 
pounds of greasy wool.
3702.3 pounds of greasy wool  114 pounds = 32.5 or 33 live 
sheep equivalents.

    The HTS numbers, the conversion factors, and other information used 
to calculate number of live sheep equivalents apply only to the initial 
referendum described herein.
    The 1994 HTS classification numbers and conversion factors for 
imported sheep and sheep products and wool and wool products are as 
follow:

    Table I.--HTS and Conversion Factors for Imported Sheep and Sheep   
                                Products                                
------------------------------------------------------------------------
                HTS                                   CF                
------------------------------------------------------------------------
                               Live Sheep                               
                                                                        
------------------------------------------------------------------------
0104100000.........................                    1.00             
                                                                        
------------------------------------------------------------------------
                               Sheep Meat                               
                                                                        
------------------------------------------------------------------------
0204100000.........................                    1.00             
0204210000.........................                    1.00             
0204222000.........................                    1.00             
0204224000.........................                    1.00             
0204232000.........................                    1.52             
0204234000.........................                    1.52             
0204300000.........................                    1.00             
0204410000.........................                    1.00             
0204422000.........................                    1.00             
0204424000.........................                    1.00             
0204432000.........................                    1.52             
0204434000.........................                    1.52             
                                                                        
------------------------------------------------------------------------

[[Page 40316]]
                                                                        
                         Wool and Wool Products                         
                                                                        
------------------------------------------------------------------------
5107106030.........................                    0.5315           
5007906030.........................                    0.5315           
5103100000.........................                    1.0417           
5103200000.........................                    1.0417           
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5105210000.........................                    1.1111           
5105290000.........................                    1.1111           
5106100010.........................                    1.0417           
5106100090.........................                    1.0417           
5106200000.........................                    0.5208           
5107100000.........................                    1.0417           
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5109102000.........................                    1.0417           
5109902000.........................                    1.0417           
5111112000.........................                    1.0629           
5111113000.........................                    1.0629           
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5602109010.........................                    1.0629           
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5602109090.........................                    0.5315           
5602210000.........................                    1.0629           
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5603001010.........................                    1.0629           
5701101300.........................                    0.9479           
5701101600.........................                    0.9479           
5702101000.........................                    1.0156           
5702109010.........................                    1.0156           
5702311000.........................                    0.7708           
5702311000.........................                    0.7708           
5702312000.........................                    0.6563           
5702411000.........................                    0.6979           
5702412000.........................                    0.5729           
5702512000.........................                    0.9531           
5702514000.........................                    0.9010           
5702912000.........................                    0.9531           
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5702914000.........................                    0.9010           
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5704900010.........................                    0.2630           
5705002010.........................                    0.6313           
5801100000.........................                    1.0629           
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5903903010.........................                    0.5315           
6001290000.........................                    1.0629           
6002209000.........................                    1.0851           
6002410000.........................                    1.0851           
6002490000.........................                    1.0851           
6002910000.........................                    1.0851           
6101100000.........................                    1.0094           
6101301500.........................                    0.5047           
6101900020.........................                    0.5678           
6102100000.........................                    1.0094           
6102301000.........................                    0.5047           
6102900010.........................                    0.5678           
6103110000.........................                    0.8439           
6103121000.........................                    0.4823           
6103122000.........................                    0.1808           
6103191000.........................                    0.4823           
6103191500.........................                    0.2411           
6103194010.........................                    0.1206           
6103194020.........................                    0.1206           
6103194030.........................                    0.1206           
6103194040.........................                    0.4823           
6103194050.........................                    0.1206           
6103194060.........................                    0.0603           
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6103230007.........................                    0.4823           
6103230010.........................                    0.4823           
6103230025.........................                    0.3167           

[[Page 40317]]
                                                                        
6103230030.........................                    0.4823           
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[[Page 40318]]
                                                                        
6202912011.........................                    0.9663           
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------------------------------------------------------------------------


    The Act also requires the Secretary to hold additional referendums 
if so requested by a representative group comprised of 10 percent or 
more of the producers, feeders, and importers who, during a 
representative period as determined by the Secretary, have been engaged 
in the production, feeding, importation, or processing of sheep or 
sheep products. In any such 

[[Page 40319]]
referendum, if the continuation of the Order is not approved by a 
majority of producers, feeders, and importers voting in the referendum, 
or by producers, feeders, and importers voting in the referendum who 
account for at least two-thirds of the production represented by the 
persons voting in the referendum, the Order will be suspended or 
terminated. These rules would also apply to any additional referendum 
conducted pursuant to the Act.
    The Act specifies that the initial referendum and any subsequent 
referendum be conducted on a date and location established by the 
Secretary, under a procedure by which sheep producers, sheep feeders, 
and importers of sheep and sheep products intending to vote in the 
referendum shall certify that they were engaged in sheep production, 
sheep feeding, or the importation of sheep and sheep products during 
the representative period and, on the same day, would have an 
opportunity to vote in the referendum. In addition, the Act provides 
that the Secretary must provide absentee ballots on request made either 
in-person or by mail. The Department proposes that the initial 
referendum be conducted at county Cooperative Extension Service (CES) 
offices. The CES of the U.S. Department of Agriculture will coordinate 
with State and County CES offices concerning their roles in conducting 
the initial referendum.
    The proposed rule sets forth procedures to be followed in 
conducting the referendum under the Act, including definitions, 
supervision of the referendum, registration, voting procedures, 
reporting referendum results, and disposition of the ballots and 
records. The Department proposes that the Consolidated Farm Service 
Agency (CFSA) of the Department assist in the conduct of the referendum 
by;
    (1) counting ballots;
    (2) determining the eligibility of challenged voters; and
    (3) reporting referendum results.

List of Subjects in 7 CFR Part 1280

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Sheep and sheep products, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR part 1280 as proposed to be added at 60 FR 28751 (June 2, 1995), be 
amended as follows:

PART 1280--SHEEP PROMOTION, RESEARCH, AND INFORMATION

    1. The authority citation for 7 CFR Part 1280 continues to read as 
follows:

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

    2. Part 1280 as proposed to be added at 60 FR 28751 (June 2, 1995), 
is amended by adding Subpart E to read as follows:

Subpart E--Procedures for the Conduct of Referendum

Definitions

Sec.
1280.601  Act.
1280.602  Administrator.
1280.603  Carbonized wool.
1280.604  Consolidated Farm Service Agency.
1280.606  Consolidated Farm Service Agency County Committee.
1280.606  Consolidated Farm Service Agency County Executive 
Director.
1280.607  Cooperative Extension Service.
1280.608  Cooperative Extension Service agent.
1280.609  Cooperative Extension Service of the U.S. Department of 
Agriculture.
1280.610  Degreased wool.
1280.611  Department.
1280.612  Deputy Administrator.
1280.613  Feeder.
1280.614  Greasy wool.
1280.615  Importer.
1280.616  Order.
1280.617  Person.
1280.618  Producer.
1280.619  Public notice.
1280.620  Pulled wool.
1280.621  Raw wool.
1280.622  Referendum.
1280.623  Registration period.
1280.624  Representative period.
1280.625  Secretary.
1280.626  Sheep.
1280.627  Sheep products.
1280.628  State.
1280.629  Unit.
1280.630  United States.
1280.631  Volume of production.
1280.632  Voting period.
1280.633  Wool.
1280.634  Wool products.

Referendum

1280.650  General.
1280.651  Supervision of referendum.
1280.652  Eligibility.
1280.653  Time and place of registration and voting.
1280.654  Facilities for registering and voting.
1280.655  Registration form and ballot.
1280.656  Registration and voting procedures.
1280.657  List of registered voters.
1280.658  Challenge of voters.
1280.659  Receiving ballots.
1280.660  Canvassing ballots.
1280.661  CFSA county office report.
1280.662  CFSA State office report.
1280.663  Results of the referendum
1280.664  Disposition of ballots and records.
1280.665  Instructions and forms.

Subpart E--Procedures for the Conduct of Referendum

Definitions


Sec. 1280.601  Act.

    The term ``Act'' means the Sheep Promotion, Research, and 
Information Act of 1994, 7 U.S.C. 7101-7111; Public Law 103-407; 108 
Statute 4210; as approved October 22, 1994, and any amendments thereto.


Sec. 1280.602  Administrator.

    The term ``Administrator'' means the Administrator of the 
Agricultural Marketing Service, or any officer or employee of the 
Department to whom there has heretofore been delegated or may hereafter 
be delegated the authority to act in the Administrator's stead.


Sec. 1280.603  Carbonized wool.

    The term ``Carbonized wool'' means wool that has been immersed in a 
bath, usually of mineral acids or acid salts, that destroys vegetable 
matter in the wool, but does not affect the wool fibers.


Sec. 1280.604  Consolidated Farm Service Agency.

    The term ``Consolidated Farm Service Agency''--formerly 
Agricultural Stabilization Conservation Service (ASCS)--also referred 
to as ``CFSA,'' means the Consolidated Farm Service Agency of the 
Department.


Sec. 1280.605  Consolidated Farm Service Agency County Committee.

    The term ``Consolidated Farm Service Agency County Committee,'' 
also referred to as the ``CFSA County Committee or COC,'' means the 
group of persons within a county elected to act as the Consolidated 
Farm Service Agency County Committee.


Sec. 1280.606  Consolidated Farm Service Agency County Executive 
Director.

    The term ``Consolidated Farm Service Agency County Executive 
Director'' also referred to as the ``CFSA County Executive Director,'' 
means the person employed by the CFSA County Committee to execute the 
policies of the CFSA county committee and be responsible for the day-
to-day operations of the county CFSA office, or the person acting in 
such capacity.


Sec. 1280.607  Cooperative Extension Service.

    The term ``Cooperative Extension Service,'' also referred to as 
``CES'' means the State partner in the Cooperative Extension Service 
system.


Sec. 1280.608  Cooperative Extension Service Agent.

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

[[Page 40320]]
``CES Agent,'' means an employee of the Cooperative Extension Service.


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

    The term ``Cooperative Extension Service of the U.S. Department of 
Agriculture,'' also referred to as ``CES,'' means the Federal component 
of the Cooperative Extension Service.


Sec. 1280.610  Degreased wool.

    The term ''Degreased wool'' means wool from which the bulk of 
impurities has been removed by processing.


Sec. 1280.611  Department.

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


Sec. 1280.612  Deputy Administrator.

    The term ``Deputy Administrator'' means the Deputy Administrator 
for Program Delivery and Field Operations, CFSA, U.S. Department of 
Agriculture or any officer or employee of the Department to whom there 
has heretofore been delegated or may hereafter be delegated the 
authority to act in the Deputy Administrator's stead.


Sec. 1280.613  Feeder.

    The term ``Feeder'' means a person who feeds lambs until the lambs 
reach slaughter weight.


Sec. 1280.614  Greasy wool.

    The term ``Greasy wool'' means wool that has not been washed or 
otherwise cleaned.


Sec. 1280.615  Importer.

    The term ``Importer'' means any person who imports sheep and sheep 
products into the United States.


Sec. 1280.616  Order.

    The term ``Order'' means the Sheep and Wool Promotion, Research, 
Education, and Information Order.


Sec. 1280.617  Person.

    The term ``Person'' means any individual, group of individuals, 
partnership, corporation, association, cooperative, or any other legal 
entity.


Sec. 1280.618  Producer.

    The term ``Producer'' means any person, other than a feeder, who 
owns or acquires ownership of sheep.


Sec. 1280.619  Public notice.

    The term ``Public notice'' means information regarding a referendum 
which shall be provided by the Secretary, without advertising expenses, 
through press releases and by State and county CES offices and county 
CFSA offices, by means of newspapers, electronic media, county 
newsletters, and the like. Such notice shall contain the referendum 
date and location, registration and voting requirements, rules 
regarding absentee voting, and other pertinent information.


Sec. 1280.620  Pulled wool.

    The term ``Pulled wool'' means wool that is pulled from the skin of 
slaughtered sheep.


Sec. 1280.621  Raw wool.

    The term ``Raw wool'' means greasy wool, pulled wool, degreased 
wool, or other carbonized wool.


Sec. 1280.622  Referendum.

    The term ``Referendum'' means any referendum to be conducted by the 
Secretary pursuant to the Act where producers, feeders, and importers 
of sheep and sheep products, except an importer of only raw wool, shall 
be given the opportunity to vote.


Sec. 1280.623  Registration period.
    The term ``Registration period'' means a 1 day period to be 
announced by the Secretary for registration of producers, feeders, and 
importers desiring to vote in a referendum. The registration period 
shall be the same day as the voting period.


Sec. 1280.624  Representative period.

    The term ``Representative Period'' means 12 consecutive month of 
calendar year 1994.


Sec. 1280.625  Secretary.

    The term ``Secretary'' means the Secretary of Agriculture of the 
United States or any other officer or employee of the Department to 
whom there has been delegated or to whom authority may hereafter be 
delegated to act in the Secretary's stead.


Sec. 1280.626  Sheep.

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


Sec. 1280.627  Sheep products.

    The term ``Sheep products'' means products produced, in whole or in 
part, from sheep, including wool and products containing wool fiber.


Sec. 1280.628  State.

    The term ``State'' means each of the 50 States.


Sec. 1280.629  Unit.

    The term ``Unit'' means each State, group of States, or class 
designation that is represented on the Board.


Sec. 1280.630  United States.

    The term ``United States'' means the 50 States and the District of 
Columbia.


Sec. 1280.631  Volume of production.

    The term ``Volume of production'' means the largest number of head 
of domestic sheep at least 6 months old or older that a domestic sheep 
producer or sheep feeder entity continuously owned and that were 
located in the United States during any single consecutive 30-day 
period during the representative period. The term ``volume of 
production'' also means the number of head of imported live sheep or 
the number of live sheep equivalents that an importer imported into the 
United States during the representative period, excluding imported raw 
wool.


Sec. 1280.632  Voting period.

    The term ``Voting period'' means a 1-day period to be announced by 
the Secretary for voting in the referendum.


Sec. 1280.633  Wool.

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


Sec. 1280.634  Wool products.

    The term ``Wool products'' means products produced, in whole or in 
part, from wool and products containing wool fiber.

Referendum


Sec. 1280.650  General.

    (a) A referendum to determine whether eligible sheep producers, 
sheep feeders, and importers of sheep and sheep products approve the 
Order. Importers who only import raw wool are not eligible to vote in 
the referendum.
    (b) The Order shall become operational only if the Secretary 
determines that the Order is approved by a majority of sheep producers, 
sheep feeders, and importers of sheep and sheep products voting in the 
referendum or by sheep producers, sheep feeders, and importers of sheep 
and sheep products voting in the referendum who account for at least 
two-thirds of the production represented by those voting in the 
referendum.
    (c) The initial referendum shall be conducted at the county CES 
offices.
    (d) The CFSA of the Department shall assist in the conduct of the 
initial referendum.


Sec. 1280.651  Supervision of referendum.

    The Administrator shall be responsible for conducting the 
referendum in accordance with this subpart.


Sec. 1280.652  Eligibility.

    (a) Eligibility producers, feeders, and importers. Each person who 
was a sheep producer, sheep feeder, or importer of 

[[Page 40321]]
sheep and sheep products during the representative period is entitled 
to register and vote in the referendum. Each producer, feeder, and 
importer entity shall be entitled to cast only one ballot in the 
referendum. Importers who only import raw wood are not eligible to 
register and vote in the referendum.
    (b) Proxy registration and voting. Proxy registration and voting is 
not authorized, except that an officer or employee of a corporate 
producer, feeder or importer, or any guardian, administrator, executor, 
or trustee of a producers, feeder's, or importer's estate, or an 
authorized representative of any eligible producer, feeder, or importer 
entity (other than an individual producer, feeder, or importer), such 
as a corporation or partnership, may register and cast a ballot on 
behalf of that entity. Any individual who registers to vote in the 
referendum on behalf of any producer, feeder, or importer entity shall 
certify that he or she is authorized by such entity to take such 
action.
    (c) Joint and group interest. A group of individuals, such as 
members of a family, joint tenants, tenants in common, a partnership, 
owners of community property, or a corporation engaged in sheep 
production, sheep feeding or the importation of sheep and sheep 
products as a producer, feeder, or importer, entity, shall be entitled 
to only one vote, provided, however, that any member of a group may 
register to vote as a producer, feeder, or importer if he or she is an 
eligible producer, feeder, or importer separate from the group.


Sec. 1280.653  Time and place of registration and voting.

    The referendum shall be held for one day on a date to be determined 
by the Secretary. Eligible persons shall register and vote following 
the procedures in Sec. 1280.656 of this Subpart. Except for absentee 
ballots, registration and voting shall take place during the normal 
business hours of each county CES office.


Sec. 1280.654  Facilities for registering and voting.

    Each county CES office shall provide:
    (1) adequate facilities and space to permit producers, feeders, and 
importers to register and to mark their ballots in secret,
    (2) a sealed box or other suitable receptacle for registration 
forms and ballots that is kept under observation during office hours 
and secured at all times, and
    (3) copies of the Order for review.
Sec. 1280.655  Registration form and ballot.

    A ballot (Form LS-61) and combined registration form (Form LS-61-2) 
shall be used for voting in person. The information required on the 
registration form includes name, address, county of voter residence, 
and volume of production. The form also contains the certification 
statement referenced in Sec. 1280.656(a)(1) of this Subpart. The ballot 
requires producers, feeders and importers to check a ``yes'' or ``no'' 
and record their volume of production. A combined registration and 
voting form (Form LS-62) shall be used for absentee voting. The 
information required on the combined registration and voting form 
includes name, address, telephone number, and county of voter 
residence, and volume of production. The form also contains the 
certification statement referenced in Sec. 1280.656(b)(1) of this 
Subpart. The ballot requires producers, feeders and importers to check 
``yes'' or ``no'' and record their volume of production


Sec. 1280.656  Registration and voting procedures.

    (a) Registering and voting in-person.
    (1) Each producer, feeder, and importer, except importers who 
import only raw wool, who wants to vote in a referendum shall register 
on the day of voting at the county CES office in which the producer's, 
feeder's, or importer's residence is located, or at the county CES 
office that serves the county in which the producer's, feeder's, or 
importer's residence is located. Producer, feeder, or importer entities 
other than individuals shall register at the county CES office in the 
county in which their headquarters office or business is located, or at 
the county CES office that serves the county in which the entities' 
headquarters office or business is located. Producers, feeders, and 
importers will be required to record on the voter registration list 
(Form LS-61-3) their names and, if applicable, the name of the entity 
they can represent before they receive a registration form and ballot. 
To register, producers, feeders, or importers shall complete the 
registration form (Form LS-61-2) and certify that:
    (i) they or the entity they represent were producers, feeders, or 
importers during the specified representative period;
    (ii) the person voting on behalf of an entity referred to in 
Sec. 1280.652 is authorized to do so; and
    (iii) the volume of production listed is a true and accurate 
representation.
    (2) Each eligible producer, feeder, or importer who has not voted 
by means of an absentee ballot may cast a ballot in-person at the 
location and time set forth in Sec. 1280.653 of this Subpart and on a 
date to be announced by the Secretary. Eligible persons who record 
their name and the entity they represent on the voter registration list 
(Form LS-61-3) will receive a registration form/envelope (Form LS-61-2) 
and a ballot (Form LS-61). Voting shall be conducted under the 
supervision of the local county CES agent or designee. Voters would 
enter the information requested on the registration form (Form LS-61-2) 
as indicated above. Producers, feeders, and importers would then mark 
their ballots to indicate ``yes'' or ``no'' and record their volume of 
production in the space provided on the ballot. Voters shall place 
their completed ballots in an envelope marked SHEEP BALLOT,'' (Form LS-
61-1) seal and place it in the completed and signed registration form/
envelope marked ``SHEEP REFERENDUM,'' (Form LS-61-2) seal that envelope 
and personally place it in a box marked ``Ballot Box'' or other 
suitable receptacle. A copy of the applicable voter registration list 
(Form LS-61-3) prepared by the county CES office shall be provided to 
each CFSA county office for in-person voter verification.
    (b) Absentee voting.
    (1) Eligible producers, feeders, and importers who are unable to 
vote in person may request a combined registration and absentee ballot 
form (Form LS-62) and two envelopes--one marked ``SHEEP BALLOT'' (Form 
LS-61-1) and the other marked ``SHEEP REFERENDUM''(LS-62-1), by mail or 
in person from the county CES office in the county in which they reside 
or the county CES office that serves the county in which they reside, 
if individuals, or in which their main office is located, if a 
corporation or other entity. These forms and envelopes will be mailed 
by the county CES agent or designee to the address provided by the 
prospective voter. Only one absentee registration form and absentee 
ballot will be provided to each eligible producer, feeder, or importer. 
The forms must be requested during a specified time period which will 
be announced by the Secretary. The county CES office shall enter on the 
absentee voter request list (Form LS-62-2) the name, address and entity 
requesting an absentee ballot and the date the forms were requested. A 
copy of the applicable absentee voter request list (Form LS-62-2) 
prepared by the county CES office shall be provided to each CFSA county 
office for absentee voter verification.
    (2) To register, eligible producers, feeders, and importers must 
complete and sign the combined registration form 

[[Page 40322]]
and absentee ballot (Form LS-62) and certify that:
    (i) they or the entity they represent were producers, feeders, or 
importers during the specified representative period,
    (ii) if voting on behalf of an entity referred to in subsection 
Sec. 1280.652, they are authorized to do so; and
    (iii) the volume of production listed is a true and accurate 
representation.
    (3) A producer, feeder, or importer, after completing the absentee 
voter registration form and the ballot, shall remove the ballot portion 
of the combined registration and absentee ballot form (Form LS-62) and 
seal the completed ballot in a separate envelope marked ``SHEEP 
BALLOT'' (Form LS-61-1) and place the sealed envelope in a second 
envelope marked ``SHEEP REFERENDUM'' (Form LS-62-1) along with the 
signed registration form.
    Producers, feeders, and importers shall legibly print their names 
on the envelope marked ``SHEEP REFERENDUM'' (Form LS-62-1), and mail or 
hand deliver it to the local county CES office of the county in which 
they reside or the county CES office serving the county in which they 
reside. In the case of a partnership, corporation, estate, or other 
entity, the registration form and ballot must be mailed or hand 
delivered to the county CES office in the county in which its main 
office is located or the county CES office in the county serving the 
county in which its main office is located.
    (4) Absentee ballots must be received in the county CES office by 
the close of business, 2 business days before the date of the 
referendum. Absentee ballots received after that date shall be counted 
as invalid ballots. Upon receiving the ``SHEEP REFERENDUM'' envelope 
containing the registration form and ballot, the county CES agent or 
designee shall place it, unopened, in a secure ballot box. The county 
CES agent or designee shall record receipt of the absentee vote on the 
absentee voter request list (Form LS-62-2).
    (5) A person who casts an absentee ballot that is not recorded as 
being received or that is received after the deadline specified in this 
section may vote in person at the appropriate county CES office on the 
day of the referendum.


Sec. 1280.657  List of registered voters.

    The voter registration list (Form LS-61-3) and the absentee voter 
request list (Form LS-62-2) shall be available for inspection on the 
day of the referendum at the county CES office and subsequently at the 
CFSA county office. They shall be posted during regular office hours in 
a conspicuous public location at the CFSA county office on the second 
business day following the date of the referendum.


Sec. 1280.658  Challenge of voters.

    (a) Challenge period. On the day of the referendum, the names of 
voters challenged shall be reported to the CES county agent, who will 
refer them to the CFSA county office. After that, the names of the 
challenged voters shall be referred directly to the CFSA county office. 
A challenge may be made no later than the close of business on the 
second business day after the date of the referendum.
    (b) Who may challenge. Any person may challenge a voter. Any person 
who wants to challenge must do so in writing and must include the full 
name of the individual or other entity being challenged. Each challenge 
of a voter must be made separately and each challenge must be signed by 
the challenger. The Secretary may issue other guidelines as the 
Secretary deems necessary.
    (c) Determination of challenges. The CFSA County Committee or its 
representative, acting on behalf of the Administrator, shall make a 
determination concerning the challenge and shall notify challenged 
producers, feeders, or importers as soon as practicable, but no later 
than five business days after the date of the referendum. If the CFSA 
County Committee or its representative, acting on behalf of the 
Administrator, is unable to determine whether a person was a producer, 
feeder, or importer during the representative period, or verify a 
voter's recorded volume of production, it may require the person to 
submit records such as sales documents, import documents or other 
similar documents to prove that the person was a producer, feeder, or 
importer for the representative period and to verify that the recorded 
volume of production was accurately stated.
    (d) Challenged ballot. The registration form/envelope (Form LS-61-
2) containing the ballots cast by producers, feeders, or importers 
voting in person who are challenged shall be removed from the ballot 
box and placed in a separate box until the challenge has been resolved. 
The SHEEP REFERENDUM envelopes (Form LS-62-1) containing absentee voter 
registration forms and absentee ballots of challenged absentee voters 
also shall be removed from the ballot box and placed in the box 
containing ballots of challenged producers, feeders, and importers. A 
challenge to a ballot shall be deemed to have been resolved if the 
determination of the CFSA County Committee or its representative is not 
appealed within the time allowed for appeal or there has been a 
determination by CFSA after an appeal.
    (e) Appeal. A person declared to be ineligible to register and vote 
or whose recorded volume of production has been questioned by the CFSA 
County Committee or its representative, acting on behalf of the 
Administrator, may file an appeal at the CFSA county office within 
three business days after notification of such decision. Such person 
may be required to provide documentation such as sales documents, 
import documents, or similar documents in order to demonstrate his or 
her eligibility or verify the recorded volume of production. An appeal 
shall be determined by the CFSA County Committee as soon as 
practicable, but in all cases not later than the ninth business day 
after the date of the referendum. The CFSA County Committee's 
determination on an appeal is final.


Sec. 1280.659  Receiving ballots.

    A ballot shall be considered to have been received during the 
voting period if:
    (a) it was cast in person in the county CES office prior to the 
close of business on the day of the referendum; or
    (b) it was cast as an absentee ballot, and was received in the 
county CES office not later than the close of business within two 
business days before the date of the referendum.


Sec. 1280.660  Canvassing ballots.

    (a) Counting the ballots. The county CES agent or designee shall 
deliver the sealed ballot box, the voter registration list (Form LS-61-
3) and the absentee voter request list (Form LS-62-2) to the CFSA 
county office by the close of business on the first business day 
following the date of the referendum. CFSA county Executive Director 
and the county CES agent or designee shall check the registration forms 
and ballots for all voters against the voter registration list (Form 
LS-61-3) and the absentee voter request list (Form LS-62-2) to 
determine properly registered voters. The ballots of producers, 
feeders, and importers voting in person whose names are not on the 
voter registration list (Form LS-61-3), shall be declared invalid. 
Likewise, the ballots of producers, feeders, and importers voting 
absentee whose names are not on the absentee voter request list (Form 
LS-62-2) shall be declared invalid. All ballots of challenged voters 
declared ineligible or invalid shall be kept separate from the other 
ballots and the envelopes 

[[Page 40323]]
containing these ballots shall not be opened. The valid ballots shall 
be counted on the tenth business day after the referendum date. CFSA 
county office employees shall remove the sealed ``SHEEP BALLOT'' 
envelope from the registration form/envelopes or absentee ballot 
envelopes of all eligible voters and all challenged voters determined 
to be eligible. After removing all ``Sheep Ballot'' envelopes, CFSA 
county employees shall open them and count the ballots. The ballots 
shall be counted as follows:
    (1) Number of eligible producers, feeders, and importers casting 
valid ballots;
    (2) number of producers, feeders and importers favoring the Order;
    (3) number of producers, feeders and importers not approving the 
Order;
    (4) volume of production recorded by producers, feeders and 
importers approving the Order;
    (5) volume of production of producers, feeders and importers not 
approving the Order;
    (6) number of challenged ballots;
    (7) number of challenged ballots deemed ineligible;
    (8) number of invalid ballots; and
    (9) number of spoiled ballots.
    (b) Invalid Ballots. Ballots shall be declared invalid if a 
producer, feeder, or importer voting in-person has failed to sign the 
voter registration list (Form LS-61-3) or an absentee voter's name is 
not recorded on the absentee voter request list (Form LS-62-2), or the 
registration form or ballot was incomplete or incorrectly completed.
    (c) Spoiled Ballots. Ballots shall be considered spoiled if they 
are mutilated or marked in such a way that either the voter's volume of 
production or the ``yes'' or ``no'' vote is illegible. Spoiled ballots 
shall not be considered as approving or disapproving the Order, or as a 
ballot cast in the referendum.
    (d) Confidentiality. All ballots shall be confidential and the 
contents of the ballots shall not be divulged except as the Secretary 
may direct. The public may witness the opening of the ballot box and 
the counting of the votes but may not interfere with the process.


Sec. 1280.661  CFSA county office report.

    The CFSA county office shall notify the CFSA State office of the 
results of the referendum. Each CFSA county office shall transmit the 
results of the referendum in its county to the CFSA State office. Such 
report shall include the information listed in Sec. 1280.660(a) of this 
Subpart. The results of the referendum in each county may be made 
available to the public. A copy of the report of results shall be 
posted for thirty days in the CFSA county office in a conspicuous place 
accessible to the public, and a copy shall be kept on file in the CFSA 
county office for a period of at least twelve months after the 
referendum.


Sec. 1280.662  CFSA State office report.

    Each CFSA State office shall transmit to the Deputy Administrator, 
CFSA, a written summary of the results of the referendum received from 
all the CFSA county offices within the State. The summary shall include 
the information on the referendum results contained in the reports from 
all county offices within each State, and shall be certified by the 
CFSA State Executive Director. The CFSA State office shall maintain a 
copy of the summary where it shall be available for public inspection 
for a period of not less than 12 months.


Sec. 1280.663  Results of the referendum.

    (a) The Deputy Administrator, CFSA, shall submit the results of the 
referendum to the Administrator. The Administrator shall prepare and 
submit to the Secretary a report of the results of the referendum. The 
results of any referendum shall be issued by the Department in an 
official press release and published in the Federal Register. State 
reports and related papers shall be available for public inspection in 
the office of the Marketing Programs Branch, Livestock and Seed 
Division, AMS, USDA, Room 2606, South Agriculture Building, 14th and 
Independence Avenue, SW., Washington, D.C.
    (b) If the Secretary deems it necessary, the report of any State or 
county shall be re-examined and checked by such persons as may be 
designated by the Deputy Administrator, CFSA, or the Secretary.


Sec. 1280.664  Disposition of ballots and records.

    Each CFSA county Executive Director shall place in sealed 
containers marked with the identification of the referendum the voter 
registration list, absentee voter request list, voted ballots, 
challenged registration forms/envelopes, challenged absentee voter 
registration forms, challenged ballots found to be ineligible, invalid 
ballots, spoiled ballots, and county summaries. Such records shall be 
placed under lock in a safe place under the custody of the CFSA county 
Executive Director for a period of not less than twelve months after 
the referendum. If no notice to the contrary is received from the 
Deputy Administrator, CFSA, by the end of such time, the records shall 
be destroyed.


Sec. 1280.665  Instructions and forms.

    The Administrator is hereby authorized to prescribe additional 
instructions and forms not inconsistent with the provisions of this 
subpart to govern the conduct of the referendum.

    Dated: August 3, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-19605 Filed 8-7-95; 8:45 am]
BILLING CODE 3410-02-M