[Federal Register Volume 61, Number 86 (Thursday, May 2, 1996)]
[Rules and Regulations]
[Pages 19514-19524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10887]
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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: Final rule.
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SUMMARY: This rule establishes a Sheep and Wool Promotion, Research,
Education, and Information Order (Order) which is authorized by the
Sheep Promotion, Research, and Information Act of 1994 (Act). The
program will be funded by assessments collected from sheep producers,
sheep feeders and importers of sheep and sheep products. The program
will be administered by a National Sheep Promotion, Research, and
Information Board (Board).
Implementing regulations will be published separately in the
Federal Register.
EFFECTIVE DATE: This final rule is effective May 3, 1996, except that
Sec. 1280.224-1280.228 become effective July 1, 1996.
ADDRESSES: 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.
FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing
Programs Branch, 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); and Final
Rule and Referendum Order-Procedures for the Conduct of Referendum
published December 15, 1995 (60 FR 64297).
Regulatory Impact Analysis
Executive Orders 12866 and 12778 and the Regulatory Flexibility 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 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 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.), 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 final Order will require each person who makes payment to a
sheep producer, feeder, or handler of sheep or sheep products to be a
collecting person, and to collect an assessment from that sheep
producer, feeder, or handler of sheep or sheep products. Any person who
buys domestic live sheep or greasy wool for processing must also
collect the assessment and remit it to the Board. 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 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 wool products, other than
raw
[[Page 19515]]
wool, will pay an assessment. The U.S. Customs Service (Customs) 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 and 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 and 2
cents per pound of greasy wool sold. All assessment rates may be
adjusted in accordance with the applicable provisions of the Act.
Paperwork Reduction
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
Chapter 35), the information collection requirements contained herein
were submitted to OMB for approval and assigned OMB No. 0581-0093. This
action sets forth the provisions for establishing a nationwide,
industry-funded sheep and wool promotion, research, education, and
information program. The information collection requirements required
by this action and necessary for the implementation of this Order
include:
(1) A report by each collecting person required to remit
assessments to the Board for live sheep or greasy wool purchased from
the producer, feeder, or handler of sheep or sheep products; 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 would
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 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 would have an
estimated annual reporting burden of 0.5 hours;
(3) An application for certification of organization, to be
completed by eligible organizations that request certification in order
to be eligible to nominate producers, feeders, and importers to the
Board. The estimated number of respondents is 70 (with each submitting
one response), and the estimated average reporting burden is 0.5 hour
per response;
(4) A nomination form by which certified organizations will
nominate producers, feeders, and importers for membership on the Board.
The estimated number of respondents is 60 for the first year of the
Order, and 20 each year thereafter. Each respondent would submit one
response per year, and the estimated average reporting burden is 0.5
hour per response; and
(5) 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 is 240
during the first year of the Order, and 80 each year thereafter. Each
respondent would submit one response per year, and the estimated
average reporting burden is 0.5 hour per response.
Background
The Act (7 U.S.C. 7101-7111), enacted 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 and 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 and 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 the 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 submit and request the issuance of an 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 Act further provides that an order contain certain
specified terms and conditions. Such terms and conditions included
provisions concerning the establishment of and composition of a Board
and the powers and duties of such a Board. Also included under terms
and conditions are provisions concerning plans and budgets, contracts
and agreements, books and records of the Board, assessments,
prohibitions, and reports, books, and records of collecting persons
required to remit assessments and each person required to collect the
assessment pursuant to the Act and the Order.
As established by the Act, the Order provides for the establishment
of a Board comprised of 85 sheep producers, 10 sheep feeders, and 25
importers of sheep and sheep products. The Act further provides that
any State with one producer member may have an alternate producer
member.
The Department issued an invitation to submit proposals for an
initial Order in the January 4, 1995, (60 FR 381) issue of the Federal
Register. In response to that invitation, 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 also received letters from other interested parties.
The Department did not consider these letters to be proposals because
they primarily addressed information related to provisions of the Act
itself.
The Department published 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 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 the proper
administration of the Order by the
[[Page 19516]]
Department. The Department rejected the proposal submitted by the Lamb
Committee of the National Livestock and Meat Board and discussed that
proposal in the proposed rule. Each proposal was published in the June
2, 1995, issue of the Federal Register (60 FR 28747). Interested
persons were invited to submit comments on the proposals until July 17,
1995. On June 26, 1995, a public meeting was held at the Department to
afford any interested person the opportunity to comment on the proposed
Order.
The Department received 137 written comments concerning the
proposed Order from individual sheep producers, sheep feeders,
importers of sheep and sheep products, State sheep producer
organizations, general farm organizations, universities, and other
interested parties. Ninety-three comments were filed on time and forty-
four comments were filed after the comment period closed. The comments
on the proposed Order were discussed in the December 5, 1995, issue of
the Federal Register (60 FR 62298). A nationwide referendum was held on
February 6, 1996, among eligible producers, feeders, and importers to
determine whether the Order would become effective. Requests for
absentee ballots were available from January 16, 1996, through January
26, 1996. An Order becomes effective only if the Secretary determines
that the Order has been approved by not less than a majority of the
producers, feeders, and importers voting in the referendum or at least
two-thirds of the production represented by persons voting in the
referendum. The Order was approved by a majority of those persons
voting in the referendum.
The Order provisions as proposed by the Department and approved in
the referendum are summarized as follows:
Sections 1280.101-1280.136 of the Order define certain words that
are used in the Order.
Sections 1280.201-1280.211 of the Order 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.
Sections 1280.212-1280.214 of the Order provide for budget review
and approval, maintenance of books and records by the Board, and the
investment of funds.
Section 1280.215 of the Order authorizes the use of assessments
which includes expenditures of funds for domestic country of origin
specific promotion and reimbursement for expenses incurred for the
Department's oversight responsibilities.
Sections 1280.216-1280.222 of the Order establish that the
membership of the Executive Committee will be composed 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 of the Order holds the Board responsible for
expenses of the Board and the Executive Committee, and establish
requirements for contracts and agreements that the Board enters into.
Sections 1280.224-1280.228 establish assessment rates on sheep and
sheep products as provided by the Act. These sections also provide that
the domestic rate and the import rate must be raised or lowered
simultaneously by an equivalent amount.
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 will receive less than
$2,500 per year.
Section 1280.230 of the Order 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.
Section 1280.231 of the Order 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
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 of the Order 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. A correction is made to Sec. 1280.235(d) by deleting the
word ``subpart'' and inserting in its place the word ``section.''
Sections 1280.240-1280.246 of the Order 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.
On February 6, 1996, a nationwide referendum was conducted among
eligible sheep producers, sheep feeders, and importers of sheep and
sheep products to determine whether the Order should become effective.
Requests for absentee ballots were available from January 16, 1996,
through January 26, 1996. The representative period for establishing
voter eligibility was from January 1, 1994, through December 31, 1994.
It is determined that a majority of those persons who voted in the
referendum approved the implementation of the Order. To become
effective, the Order had to be approved either by a simple majority
vote or by those persons voting in the referendum who accounted for at
least two-thirds of the production voted.
After consideration of all relevant material presented, including
the initial proposals, comments received, the referendum results, and
other available information, it is found that the Order and all of the
terms and conditions thereof, should be made final.
Pursuant to 5 U.S.C. 553, it is also found and determined that good
cause exists for not postponing the effective date of this action until
30 days after publication in the Federal Register. Each section of this
final rule except, Sec. 1280.224 through Sec. 1280.228 which establish
assessment rates on both domestic and imported sheep and sheep products
as provided by the Act, will become effective upon publication of this
final rule. Sections 1280.224-1280.228 of the Order will become
effective July 1, 1996, after regulations implementing the collection
and remittance procedures are issued and published in the Federal
Register.
[[Page 19517]]
Accordingly, no useful purpose would be served in delaying the
effective date of the other provisions of the Order. The Act requires
implementation of the Order if the Order is approved by the sheep and
wool industry and the sheep and wool industry approved the Order in the
February 6, 1996, referendum. Further, the Board must be appointed to
administer the program as soon as possible. Therefore, this final rule
is effective on the day following date of publication in the Federal
Register except for the provisions in Sec. 1280.224-Sec. 1280.228.
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, 7 CFR Part 1280 of the
Code of Federal Regulations is amended as follows:
PART 1280--SHEEP PROMOTION, RESEARCH, AND INFORMATION
1. The authority citation for Part 1280 continues to read as
follows:
Authority: 7 U.S.C. 7101-7111.
2. In Part 1280, Subpart A is added to read as follows:
Subpart A--Sheep and Wool Promotion, Research, Education, and
Information Order
Definitions
Sec
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 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 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 would 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.
[[Page 19518]]
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
would 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.
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
[[Page 19519]]
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) of this section.
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.
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
[[Page 19520]]
nominations for subsequent appointment to the Board shall be made by
the Secretary from organizations certified in accordance with paragraph
(a)(2) of this section.
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) of this
section. 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
proportionately 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 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:
[[Page 19521]]
(1) To fund promotion, research, education, and information plans
and projects authorized under this subpart, including promotion plans
and projects which make specific reference to domestic sheep and sheep
products originating or being produced and/or marketed in the U.S.,
except that the combined expenditures for such promotion plans and
projects involving domestic country of origin shall be limited to no
more than the combined domestic assessments collected on sheep and
sheep products and the percentage of domestic assessments spent on the
promotion of domestic sheep and sheep products shall not exceed the
percentage of import assessments spent on the generic promotion of
sheep and sheep products; and
(2) 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:
(a) 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.
(b) 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) of this section.
(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)
in this section, 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 any 1 year as
recommended by the Executive Committee and approved by the Board and
the Secretary. However, if the Board makes a recommendation to the
Secretary to raise or lower the assessment rates, the domestic rate and
the import rate must be raised or lowered simultaneously by an
equivalent amount. 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) of this section.
(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,
[[Page 19522]]
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) of this section 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. However, if the Board makes a recommendation to the
Secretary to raise or lower the assessment rates, the domestic rate and
the import rate must be raised or lowered simultaneously by an
equivalent amount. 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. Customs 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. However, if the Board makes a recommendation to the
Secretary to raise or lower the assessment rates, the domestic rate and
the import rate must be raised or lowered simultaneously by an
equivalent amount.
(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 degreased wool
or the equivalent. However, if the Board makes a recommendation to the
Secretary to raise or lower the assessment rates, the domestic rate and
the import rate must be raised or lowered simultaneously by an
equivalent amount.
(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) of this section, 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) of
this section 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) of this section,
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.
(b) The prohibition in paragraph (a) of this section 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
[[Page 19523]]
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 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) of this section
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 section, 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.
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:
[[Page 19524]]
(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.
Dated: April 26, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-10887 Filed 5-1-96; 8:45 am]
BILLING CODE 3410-02-P
