[Federal Register Volume 61, Number 126 (Friday, June 28, 1996)]
[Rules and Regulations]
[Pages 33644-33646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16578]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1280
[Docket Number LS-96-004]
Sheep Promotion, Research, and Information Program
AGENCY: Agricultural Marketing Service; USDA.
ACTION: Final rule.
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SUMMARY: This rule suspends indefinitely provisions of the Order and
the Certification and Nomination Regulations, and postpones
indefinitely the announced effective date of July 1, 1996, for
assessment collection in the Rules and Regulations, and the assessment
provisions of the Order. The Department of Agriculture (Department)
conducted a review and evaluated the conduct and results of the
February 6, 1996, nationwide sheep referendum. The Department
discovered inconsistencies in the application of the referendum rules,
and this action is the result of the discovery of these
inconsistencies. A second nationwide referendum will be conducted among
eligible sheep producers, sheep feeders, and importers of sheep and
sheep products on a date to be announced by the Department.
EFFECTIVE DATE: This document is effective June 29, 1996.
The effective date of July 1, 1996 for Subpart A, Secs. 1280.224
through 1280.228 in Subpart A, and Subpart B, Secs. 1280.301 through
1280.318 is postponed indefinitely.
Additionally, in Subpart A, Secs. 1280.101 through 1280.126,
Secs. 1280.201 through 1280.223, Secs. 1280.229 through 1280.235 and
Secs. 1280.240 through 1280.246, and Subpart C, Secs. 1280.400 though
1280.414 are suspended indefinitely.
FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief; Marketing
Programs Branch, Room 2606-S; Livestock and Seed Division, AMS, USDA;
PO Box 96456, Washington, DC 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
and 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); and Final Rule--Certification and Nomination
Procedures published May 9, 1996 (61 FR 21049).
Executive Orders 12866 and 12778 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 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 Sheep Promotion, Research, and Information Act of 1994 (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
[[Page 33645]]
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.
The information collection requirements contained in the provisions
of the Order and the Rules and Regulations have been previously
approved by OMB under OMB control number 0581-0093.
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.
The final Order would require that each person who makes payment to
a sheep producer, feeder, or handler of sheep or sheep products will be
a collecting person, and is 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 would 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 would
pay an assessment and remit the assessment to the National Sheep
Promotion, Research, and Information Board (Board). Any person who
exports live sheep or greasy wool would 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 wool, would pay an assessment. The U.S. Customs Service (Customs)
would 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 would be 1 cent per pound on
live sheep sold and 2 cents per pound on greasy wool sold. Importers
would 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 would 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
would 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 could
be adjusted in accordance with the applicable provisions of the Act.
This action suspends or postpones the effective date of these
provisions. Therefore, except for the referendum rules, the imposition
of program requirements, including collection of assessments and
reporting and recordkeeping requirements, will be either suspended or
postponed. A second nationwide referendum will be conducted among
eligible sheep producers, sheep feeders, and importers of sheep and
sheep products on a date to be announced by the Department.
Accordingly, AMS has determined that this action will not have a
significant economic impact on a substantial number of small entities.
Background
The Act, enacted October 22, 1994, authorizes the Secretary to
establish a national sheep and wool promotion, research, education, and
information program. The program would 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 would 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 would 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, would 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.
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 designed to strengthen the position of sheep
and sheep products in the marketplace, as provided for under the Act.
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), 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 outline the eligibility criteria and the
nomination process used to obtain nominations for appointment to the
Board, which would administer the program, were both published on May
9, 1996.
As required by the Act, the Department conducted an up-front
referendum among eligible domestic sheep producers and sheep feeders,
as well as importers of sheep and sheep products, to determine if the
Order, which was the subject of the referendum, would become
operational. To become effective, the Order had to be approved either
by a majority of producers, feeders, and importers voting in the
referendum, or by voters who accounted for at least two-thirds of the
production represented by persons voting in the referendum. Of the
19,801 valid ballots cast in the February 6, 1996, referendum, 10,707
(54 percent) favored implementation of the Order and 9,094 (46 percent)
opposed implementation of the Order. Although the 54 percent who
approved the Order accounted for only 40 percent of the sheep voted,
the majority vote was sufficient to implement the Order. Steps to
implement the Order were carried out.
After the referendum was held; however, the Department received a
substantial number of voter complaints about alleged inconsistencies in
the application of the referendum rules in conducting the referendum.
The Department initiated a review of these allegations. Based on
findings in the ongoing review, which revealed that the referendum
rules were in fact applied inconsistently, the Department is suspending
indefinitely provisions of the Order and the Certification and
Nomination Regulations, and is
[[Page 33646]]
postponing indefinitely the original July 1, 1996, effective date for
the Order provisions and the Rules and Regulations concerning the
collection and remittance of assessments. Also, the Department plans to
conduct a second nationwide referendum among eligible producers,
feeders, and importers on a date to be announced.
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, because: (1) producers, feeders, importers of sheep and
sheep products, and other collecting persons are aware of this action
because it was announced in a press release issued by the Secretary on
May 17, 1996; (2) this action postpones the imposition of regulatory
requirements on producers, feeders, and importers by suspending the
provisions of the Order and the certification and nomination
procedures, and by postponing indefinitely the effective date for the
Order provisions and the Rules and Regulations for the collection and
remittance of assessments; and (3) no useful purpose would be served by
delaying this action.
Therefore, (1) the effective date of July 1, 1996, for the Rules
and Regulations governing the assessment collection and remittance
procedures, published on May 9, 1996, at 61 FR 21053, and for
Sec. 1280.224-Sec. 1280.228 of the Order published on May 2, 1996, at
61 FR 19514, is postponed indefinitely, and (2) all sections of the
Order, except Sec. 1280.224-Sec. 1280.228, published on May 2, 1996, at
61 FR 19514, and all sections of the Certification and Nomination
Regulations published on May 9, 1996, at 61 FR 21049 are being
suspended indefinitely.
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 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:
(A) The effective date of July 1, 1996 for Sec. Sec. 1280.224
through 1280.228 in Subpart A, is postponed indefinitely, and in
Subpart A, Sec. 1280.101 through Sec. 1280.126, Sec. Sec. 1280.201
through 1280.223, Sec. Sec. 1280.229 through 1280.235 and
Sec. Sec. 1280.240 through 1280.246, is suspended indefinitely;
(B) The effective date of July 1, 1996 for Subpart B,
Sec. Sec. 1280.301 through 1280.318, is postponed indefinitely; and
(C) Subpart C, Sec. Sec. 1280.400 through 1280.414, is suspended
indefinitely.
Dated: June 25, 1996.
James R. Baker,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-16578 Filed 6-27-96; 8:45 am]
BILLING CODE 3410-02-P
