[Federal Register Volume 62, Number 139 (Monday, July 21, 1997)]
[Rules and Regulations]
[Pages 38897-38898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19024]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 139 / Monday, July 21, 1997 / Rules 
and Regulations  

[[Page 38897]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1280

[No. LS-97-002]


Sheep Promotion, Research, and Information

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This document removes the Sheep and Wool Promotion, Research, 
Education, and Information Order (Order) and all previously published 
regulations authorized under the Sheep Promotion, Research, and 
Information Act of 1994 (Act) from the Code of Federal Regulations 
(CFR). Some of the implementing sections were suspended and some were 
postponed when the Department of Agriculture (Department) invalidated 
the results of the nationwide sheep referendum and announced that a 
second referendum would be conducted. In October 1996, producers, 
feeders, and importers voted again and did not approve the Order in a 
nationwide referendum; thus, the Order and previously published 
regulations associated with the program are removed.

EFFECTIVE DATE: July 22, 1997.

FOR FURTHER INFORMATION CONTACT: 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. Telephone number 202/720-
1115.

SUPPLEMENTARY INFORMATION:

Prior Documents

    Notice--Invitation to submit proposals published January 4, 1995 
(60 FR 381); Proposed Rule--Sheep and Wool Promotion, Research, 
Education, and Information Order published June 2, 1995 (60 FR 28747); 
Proposed Rule--Procedures for Conduct of Referendum published August 8, 
1995 (60 FR 40313); Notice--Certification of Organizations for 
Eligibility to Make Nominations to the proposed Board published August 
8, 1995 (60 FR 40343); Proposed Rule--Rules and Regulations published 
October 3, 1995 (60 FR 51737); Proposed Rule--Sheep and Wool Promotion, 
Research, Education, and Information Order published December 5, 1995 
(60 FR 62298); Final Rule--Referendum Order--Procedures for the Conduct 
of Referendum published December 15, 1995 (60 FR 64297); Final Rule--
Sheep and Wool Promotion, Research, Education, and Information Order 
published May 2, 1996 (61 FR 19514); Final Rule--Rules and Regulations 
published May 9, 1996 (61 FR 21053); Final Rule--Certification and 
Nomination Procedures published May 9, 1996 (61 FR 21049); and Final 
Rule--Suspension and Postponement of Sheep and Wool Promotion, 
Research, Education, and Information Order published June 28, 1996 (61 
FR 33644).

Executive Orders 12866 and 12988 and the Regulatory Flexibility Act and 
the Paperwork Reduction Act

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget (OMB).
    This final rule was reviewed under Executive Order 12988, 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 (7 U.S.C. 7101-7111) 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 would have the 
opportunity for a hearing on the petition. Thereafter the Secretary 
would issue a decision on the petition. The Act provides that the 
district court of the United States in the district in which the 
petitioner resides or carries on business has jurisdiction to review 
the Secretary's decision, if the petitioner files a complaint for that 
purpose not later than 20 days after the date of the entry of the 
decision. The petitioner must exhaust his or her administrative 
remedies before filing such a complaint in the district court.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601 et seq.), the Agricultural Marketing Service 
(AMS) has considered the economic impact of this final action on small 
entities.
    The purpose of RFA is to fit regulatory actions to the scale of the 
businesses that are subject to such actions so that small businesses 
would not be unduly or disproportionately burdened.
    According to the January 27, 1995, issue of ``Sheep and Goats,'' 
published by the Department's National Agricultural Statistics Service, 
there are approximately 87,350 sheep operations 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 
Sec. 121.601). Additionally, there are approximately 9,000 importers of 
sheep and sheep products, nearly all of which would be classified as 
small businesses.
    This action terminates all provisions of 7 CFR Part 1280.
    In a final rule published on June 28, 1996, (61 FR 33644), the 
Department suspended indefinitely the provisions of the Order and the 
Certification and Nomination Regulations and postponed indefinitely the 
effective date for assessment collection in the Rules and Regulations 
and the assessment portions of the Order. That final rule was effective 
on June 29, 1996. Since that time, a second nationwide referendum was 
conducted on October 1, 1996, in which producers, feeders, and 
importers voted. The Order was not approved in referendum. Except for 
the referendum rules, the requirements of the Order and implementing 
rules and regulations have not been implemented. Since the Act provides 
for and requires approval of an Order by referendum before it can 
become effective, this action terminates and removes from the CFR all 
of the provisions of Part 1280. Accordingly, AMS has determined that 
this action will not have a significant economic

[[Page 38898]]

impact on a substantial number of small entities.

Background

    AMS published the final Order (61 FR 19514) on May 2, 1996, to 
implement a national sheep and wool, promotion, research, education, 
and information program. The effective date of the Order was May 3, 
1996, except that the collection and remittance sections of the Order--
Sec. 1280.224-Sec. 1280.228--were scheduled to become effective on July 
1, 1996. The final Rules and Regulations (61 FR 21053; effective May 
10, 1996), which set forth the collection and remittance procedures to 
be used beginning July 1, 1996, and the Certification and Nomination 
procedures (61 FR 21049; effective May 10, 1996), which set forth the 
eligibility criteria and the nomination process to be used to obtain 
nominations for appointment to the Board, were both published in the 
Federal Register on May 9, 1996. However, after the February 6, 1996, 
referendum was held, the Department received voter complaints about 
alleged inconsistencies in the application of the referendum rules in 
conducting the referendum. The Department conducted a review of these 
allegations. Based on findings in the review, which revealed that the 
referendum rules were not applied consistently, on June 28, 1996, the 
Department suspended indefinitely provisions of the Order and the 
Certification and Nomination Regulations, and postponed indefinitely 
the announced effective date of July 1, 1996, for assessment collection 
in the Rules and Regulations, and the assessment provisions of the 
Order. Subsequently, a second referendum was held on October 1, 1996.
    Before the Order can become effective, the Act requires that it be 
approved either by a majority of producers, feeders, and importers 
voting in the referendum, or by voters who account for at least two-
thirds of the production represented by persons voting in the 
referendum. Of the 11,880 valid ballots cast in the October 1, 1996, 
referendum, 5,603 (47 percent) favored implementation of the Order and 
6,277 (53 percent) opposed implementation of the Order. Of those 
persons voting in the referendum who cast a valid ballot, those favored 
the Order accounted for 33 percent of the total production voted and 
those who opposed it accounted for 67 percent of the production voted.
    It is also found and determined upon good cause that it is 
impracticable, unnecessary, and contrary to the public interest to give 
preliminary notice or to engage in further public procedure prior to 
putting this action into effect, and that good cause exists for not 
postponing the effective date of this action until 30 days after 
publication in the Federal Register, because: (1) In a second 
referendum conducted on October 1, 1996, eligible sheep producers, 
sheep feeders, and importers voting did not approve the Order; (2) 
previously suspended and postponed provisions of 7 CFR 1280 must now be 
terminated; and (3) no useful purpose would be served in delaying the 
effective date of the termination Order.
    It is therefore ordered that 7 CFR 1280 is hereby terminated 
effective on July 22, 1997. This termination includes all previously 
published regulations authorized under the Act.

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.

PART 1280--[REMOVED]

    For the reasons set forth in the preamble and under the authority 
of 7 U.S.C. 7101-7111, 7 CFR part 1280 is removed.

    Dated: July 15, 1997.
Barry L. Carpenter,
Director, Livestock and Seed Division, Agricultural Marketing Service.
[FR Doc. 97-19024 Filed 7-18-97; 8:45 am]
BILLING CODE 3410-02-P