This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

43031 

Vol. 75, No. 141 

Friday, July 23, 2010 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 63 

[Doc. No. AMS–LS–08–0064] 

National Sheep Industry Improvement 

Center 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule and request for 

comments. 

SUMMARY: This interim rule promulgates 

rules and regulations establishing a 

National Sheep Industry Improvement 

Center (NSIIC) program, consistent with 

the Food, Conservation, and Energy Act 

of 2008 (Farm Bill). This rule establishes 

the NSIIC and a Board of Directors 

(Board) that will manage and be 

responsible for the general supervision 

of the activities of the NSIIC, with 

oversight from the U.S. Department of 

Agriculture (USDA). The NSIIC is 

authorized to use funds to make grants 

to eligible entities in accordance with a 

strategic plan. Additionally, this interim 

rule also announces USDA’s 

Agricultural Marketing Service (AMS) 

request for approval of a new 

information collection in accordance 

with the Paperwork Reduction Act of 

1995. 

DATES: Effective Date: This interim rule 

is effective September 21, 2010. 

Comment Date: Written comments on 

the regulatory provisions of this interim 

rule must be received by September 21, 

2010. Pursuant to the PRA, comments 

on the information collection burden 

must be received by September 21, 

2010. Comments will be posted as 

received, with any personal information 

provided. 

ADDRESSES: Interested persons are 

invited to submit comments concerning 

this interim rule. Comments must be 

posted on http//www.regulations.gov; or 

sent to Kenneth R. Payne, Chief, 

Marketing Programs Branch, Livestock 

and Seed Program, AMS, USDA, Room 

2628–S, STOP 0251, 1400 Independence 

Avenue, SW., Washington, DC 20250– 

0251; via Fax to 202/720–1125; or 

e-mail to Kenneth.Payne@ams.usda.gov. 

In addition, comments concerning the 

information collection and 

recordkeeping requirement of this rule 

should be sent to the Desk Officer for 

Agriculture, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget (OMB), New 

Executive Office Building, 725 17th St., 

NW., Room 725, Washington, DC 20503. 

Comments are invited on: (1) Whether 

the proposed collection of information 

is necessary for the proper performance 

of the functions of the agency, including 

whether the information will have 

practical utility; (2) the accuracy of the 

agency’s estimate of the burden on the 

proposed collection of information 

including the validity of the 

methodology and assumptions used; 

(3) ways to enhance the quality, utility, 

and clarity of the information to be 

collected; and (4) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

the use of appropriate automated 

electronic, mechanical, other 

technological collection techniques or 

other forms of information technology. 

All comments should reference the 

document number (AMS–LS–08–0064) 

and the volume, date, and page number 

of this issue of the Federal Register. 

FOR FURTHER INFORMATION CONTACT: 

Kenneth R. Payne, Chief, Marketing 

Programs Branch; Telephone 202/720– 

1115; Fax: 202/720–1125; or e-mail 

Kenneth.Payne@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

interim rule is published pursuant to 

7 U.S.C. 2008j as amended by section 

11009 of the Food, Conservation, and 

Energy Act of 2008 (Pub. L. 110–246) 

and will create a new part 63 in Title 

7 of the Code of Federal Regulations for 

the establishment and function of the 

NSIIC. 

Executive Order 12866 

This interim rule has been determined 

to be not significant for the purposes of 

Executive Order 12866 and therefore, 

has not been reviewed by the OMB. 

Public Law 104–4 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) (Pub. L. 

104–4) establishes requirements for 

Federal agencies to assess the effects of 

their regulatory actions on State and 

local governments and the private 

sector. Under section 202 of the UMRA, 

the AMS generally must prepare a 

written statement, including a costbenefit analysis, for proposed and final 

rules with ‘‘Federal mandates’’ that may 

result in expenditures by State and local 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year (2 U.S.C. 1532). When 

such a statement is needed for a rule, 

section 205 of the UMRA generally 

requires Federal agencies to identify and 

consider a reasonable number of 

regulatory alternatives and adopt the 

least costly, most cost-effective, or least 

burdensome alternative that achieves 

the objectives of the rule (2 U.S.C. 

1535). This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the UMRA) for 

State and local governments or the 

private sector of $100 million or more 

in any one year. Therefore, this rule is 

not subject to the requirements of 

sections 202 and 205 of the UMRA. 

Executive Order 12988 

This interim rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. It is not intended to 

have any retroactive effect. There are no 

administrative proceedings that must be 

exhausted before parties may file in 

court. 

Executive Order 13132 

This interim rule has been reviewed 

under Executive Order 13132, 

Federalism, and has been determined 

that this rule does not have sufficient 

Federalism implications to warrant the 

preparation of a Federalism Assessment. 

The provisions contained in this rule 

would not have a substantial direct 

effect on States or their political 

subdivisions or on the distribution of 

power and responsibilities among the 

various levels of government. 

Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), the agency is required to examine 

the impact of regulatory actions on 

small entities. The purpose of the RFA 

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43032 Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Rules and Regulations 

is to fit regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. AMS 

certifies that this rule will not have a 

significant impact on a substantial 

number of small entities as defined in 

the RFA. 

The purpose of the NSIIC is to: (1) 

Promote strategic development activities 

and collaborative efforts by private and 

State entities to maximize the impact of 

Federal assistance to strengthen and 

enhance the production and marketing 

of sheep or goat products in the United 

States; (2) Optimize the use of available 

human capital and resources within the 

sheep or goat industries; (3) Provide 

assistance to meet the needs of the 

sheep or goat industry for infrastructure 

development, business development, 

production, resource development, and 

market and environmental research; (4) 

Advance activities that empower and 

build the capacity of the U.S. sheep or 

goat industry to design unique 

responses to the special needs of the 

sheep or goat industries on both a 

regional and national basis; and (5) 

Adopt flexible and innovative 

approaches to solving the long-term 

needs of the United States sheep or goat 

industry. 

A Board of Directors will manage and 

be responsible for the general 

supervision of the structure of the 

NSIIC, with oversight from USDA. The 

Board is comprised of seven voting 

members, of whom four would be active 

producers of sheep or goats in the 

United States, two would have expertise 

in finance and management, and one 

would have expertise in lamb, wool, 

goat, or goat product marketing. The 

Secretary would appoint the voting 

members from nominations submitted 

by eligible organizations. There also 

would be two non-voting members on 

the Board, the Under Secretary of 

Agriculture for Rural Development (RD) 

and the Under Secretary of Agriculture 

for Research, Education, and 

Economics. 

This rule provides opportunity for 

public, private, or cooperative 

organizations; associations, including 

corporations not operated for profit; 

federally recognized Indian Tribes; 

public or quasi-public agencies to be 

considered eligible entities to submit 

grant proposals to the Board. According 

to various sheep and goat association 

Web sites, there are approximately 215 

regional, State, and national sheep and 

goat organizations located throughout 

the United States. In addition, according 

to the Department of the Interior’s 

August 11, 2009, Federal Register (74 

FR 40218); there are approximately 564 

federally recognized American Indian 

Tribes in the United States. 

According to the 2007 Census of 

Agriculture, there were 83,134 farms 

with sheep and lamb and 144,466 farms 

with goats in the United States. Thus, at 

least approximately 227,600 sheep, 

lamb and goat producers potentially 

would be eligible to serve on the four 

producer positions on the Board of 

NSIIC. Two positions on the Board are 

for persons with expertise in finance 

and management, while one position is 

for a person with expertise in lamb, 

wool, goat, or goat product marketing. It 

is estimated that not more than 10 

national organizations would be eligible 

to nominate the voting members of the 

Board to the Secretary for appointment. 

Most producers would be classified as 

small businesses under the criteria 

established by the Small Business 

Administration (13 CFR 121.201). The 

members of the national organizations 

would be expected to reflect this same 

size. The SBA defines small agricultural 

service firms as those whose annual 

receipts are less than $7 million, and 

small agricultural producers are defined 

as those having annual receipts of not 

more than $750,000 annually. With 

regard to persons who have expertise in 

finance and management or expertise in 

lamb, wool, goat, or goat product 

marketing, and other eligible entities, 

AMS does not have specific information 

on the number and size of all such 

persons or entities and requests 

comments providing pertinent 

information or data. Nonetheless, we 

would estimate that a number of such 

persons would be considered small 

entities. 

The information collection burden is 

discussed in the following section. 

Paperwork Reduction Act 

In accordance with the PRA, this 

interim rule announces that AMS is 

requesting review and approval from 

OMB of a new information collection. 

AMS has based these estimates on 

industry research and experience with 

other boards and advisory committees. 

The proposed forms are necessary to 

appoint a Board to effectively carry out 

the requirements of the enabling 

legislation—including seating a Board. 

The nomination process is not expected 

to have a significant impact on persons 

affected. The overall impact of the 

NSIIC program under the Act is 

expected to be beneficial to sheep and 

goat industries. 

The proposed forms have been 

carefully reviewed, and every effort has 

been made to minimize any unnecessary 

recordkeeping costs or requirements. 

Such information can be supplied 

without data processing equipment or 

outside technical expertise. There are no 

additional training requirements for 

individuals filling out reports to the 

Board. The forms would be simple and 

easy to understand and place as small 

a burden as possible on the person 

required to file the information. In 

addition, the information to be included 

on these forms is not available from 

other sources because such information 

relates specifically to individual 

producers or industry members who are 

nominated to the Board. Therefore, 

there is no practical method for 

collecting the required information 

without the use of these forms. 

Title: National Sheep Industry 

Improvement Center. 

OMB Number: 0581–NEW. 

Expiration Date of Approval: 3 years 

from date of OMB approval. 

Type of Request: Approval of a new 

information collection. 

Abstract: The primary objective of the 

NSIIC is to assist U.S. sheep and goat 

industries by strengthening and 

enhancing the production and 

marketing of sheep, goats, and their 

products in the United States. The 

information collection requirements in 

the request are essential to carry out the 

intent of the enabling legislation. 

AMS will accept nominations for 

membership on the Board from national 

organizations that (1) consist primarily 

of active sheep or goat producers in the 

United States and (2) have the primary 

interest of sheep or goat production in 

the United States. A nomination for 

appointment form would be submitted 

by such national organizations (who 

may submit more than one nominee) 

while a background information form 

and nominee’s agreement to serve form 

would be submitted by each producer or 

industry member nominated to serve on 

the Board. 

Estimate of Burden: The public 

reporting and recordkeeping burden for 

this collection of information is 

estimated to total 40 hours the first year 

and 16 hours each year after. We will 

submit a justification for change to 

report new burden hours added to form 

AD–755. 

(1) Nominations for Appointments Form 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.5 hour per 

response. 

Respondents: National organizations 

submitting nominations to the Board 

who (1) consist primarily of active 

sheep or goat producers in the United 

States and (2) have the primary interest 

of sheep or goat production in the 

United States. 

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Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Rules and Regulations 43033 

Estimated number of Respondents: 

10. 

Estimated number of Responses per 

Respondent: 1 per year. 

Estimated Total Annual Burden: 5 

hours. 

(2) Background Information Form (OMB 

Form No. 0505–0001) 

Estimate of Burden: Public reporting 

for this collection of information is 

estimated to average 0.5 hour per 

response for each producer or industry 

member nominated to serve on the 

Board. 

Respondents: Sheep or goat 

producers; Persons with expertise in 

finance and management; and Persons 

with expertise in lamb, wool, goat, or 

goat marketing. 

Estimated number of Respondents: 

(56 for initial nominations to the NSIIC 

Board, about 18 in the second year, 

about 18 in the third year). 

Estimated number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 28 hours for the initial 

nominations to the NSIIC Board and 

approximately 9 hours annually 

thereafter. 

(3) Nominee’s Agreement To Serve 

Estimate of Burden: Public reporting 

for this collection of information is 

estimated to average .125 hours per 

response for each producer or industry 

member nominated to serve on the 

Board. 

Respondents: Sheep or goat 

producers; Persons with expertise in 

finance and management; and Persons 

with expertise in lamb, wool, goat, or 

goat marketing. 

Estimated Number of Respondents: 

(56 for initial nominations to the NSIIC 

Board, about 18 in the second year, 

about 18 in the third year). 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 7 hours for the initial 

nominations to the NSIIC Board and 

approximately 2.25 (rounded down to 2) 

hours annually thereafter. 

Comments are invited on: (1) Whether 

the new collection of information is 

necessary for the proper performance of 

the functions of the NSIIC, including 

whether the information will have 

practical utility; (2) the accuracy of the 

agency’s estimate of the burden of the 

new collection of information including 

the validity of the methodology and 

assumptions used; (3) ways to enhance 

the quality, utility, and clarity of the 

information to be collected; and (4) 

ways to minimize the burden of the 

collection of information on those who 

are to respond, including the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology. 

Background Information 

The NSIIC was initially authorized 

under the Consolidated Farm and Rural 

Development Act (Act). The Act, as 

amended, was passed as part of the 1996 

Farm Bill (Pub. L. 104–127). The initial 

legislation included a provision that 

privatized the NSIIC 10 years after its 

ratification or once the full 

appropriation of $50 million was 

disbursed. Subsequently, the NSIIC was 

privatized on September 30, 2006 (72 

FR 28945). 

In 2008, the NSIIC was re-established 

under Title XI of the Food, 

Conservation, and Energy Act of 2008 

(Pub. L. 110–246), also known as the 

2008 Farm Bill. Section 11009 of the 

2008 Farm Bill repealed the requirement 

in section 375(e)(6) of the Act to 

privatize the NSIIC. Additionally, the 

2008 Farm Bill provided for $1,000,000 

in mandatory funding for fiscal year 

2008 from the Commodity Credit 

Corporation for the NSIIC to remain 

available until expended, as well as 

authorization for appropriations in the 

amount of $10 million for each of fiscal 

years 2008 through 2012. 

The authorizing legislation 

established in the United States 

Department of the Treasury (Treasury) 

the NIISC Revolving Fund (Fund). The 

Fund is to be available to the NSIIC, 

without fiscal year limitation, to carry 

out the authorized programs and 

activities of the NSIIC. The law provides 

authority for amounts in the Fund to be 

used for direct loans, loan guarantees, 

cooperative agreements, equity interests, 

investments, repayable grants, and 

grants to eligible entities, either directly 

or through an intermediary, in 

accordance with a strategic plan 

submitted by the NSIIC to the Secretary. 

This rulemaking will establish the 

NSIIC and use of the Fund for making 

only grants to eligible entities. 

The purpose of the NSIIC is to: (1) 

Promote strategic development activities 

and collaborative efforts by private and 

State entities to maximize the impact of 

Federal assistance to strengthen and 

enhance production and marketing of 

sheep or goat products in the United 

States; (2) Optimize the use of available 

human capital and resources within the 

sheep or goat industries; (3) Provide 

assistance to meet the needs of the 

sheep or goat industry for infrastructure 

development, business development, 

production, resource development, and 

market and environmental research; (4) 

Advance activities that empower and 

build the capacity of the U.S. sheep or 

goat industry to design unique 

responses to the special needs of the 

sheep or goat industries on both a 

regional and national basis; and (5) 

Adopt flexible and innovative 

approaches to solving the long-term 

needs of the United States sheep or goat 

industry. 

The management of the NSIIC is 

vested in a Board that is appointed by 

the Secretary. The Secretary reviews 

and monitors compliance of the Board 

as provided under the Act and rules and 

regulations. The Board is composed of 

seven voting members, of whom four 

would be active producers of sheep or 

goats in the United States, two would 

have expertise in finance and 

management, and one would have 

expertise in lamb, wool, goat, or goat 

product marketing. The Board would 

also include two non-voting members, 

the Under Secretary of Agriculture for 

Rural Development (RD) and the Under 

Secretary of Agriculture for Research, 

Education, and Economics. The 

Secretary would appoint the voting 

members from nominations submitted 

by eligible organizations. A member’s 

term of office shall be 3 years with a 

maximum of two terms. Board members 

shall initially serve staggered terms of 1, 

2, or 3 years, as determined by the 

Secretary. Only national organizations 

that (1) consist primarily of active sheep 

or goat producers in the United States 

and (2) have the primary interest of 

sheep or goat production in the United 

States can make nominations to the 

Board. USDA will announce in a 

nationwide press release that USDA is 

accepting nominations from the 

aforementioned national organizations. 

The Board will meet not less than 

once each fiscal year. Board members 

will not receive compensation for 

serving on the Board, but will be 

reimbursed for travel, subsistence, and 

other necessary expenses. The Board 

shall be responsible for general 

supervision of the NSIIC; review of any 

contract and grant to be made or entered 

into by the NSIIC and any financial 

assistance provided to the NSIIC; 

making final decision—by majority 

vote—on whether or not to provide 

grants to an eligible entity; and 

developing and establishing a budget 

plan and long-term operating plan to 

carry out the goals of the NSIIC. 

The authorizing legislation establishes 

in the Treasury, the NSIIC Fund. The 

Fund is to be available to the NSIIC, 

without fiscal year limitation, to carry 

out the authorized programs and 

activities of the NSIIC. The law provides 

authority for amounts in the Fund to be 

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43034 Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Rules and Regulations 

used to carry out authorized program 

activities of the NSIIC. 

This interim rule authorizes a grant 

only program to be administered by the 

NSIIC Board. Based on funding, the 

Board will periodically announce that 

proposals may be submitted to the 

Board for consideration from eligible 

entities. The Board would determine 

how funds would be allocated. 

Proposals submitted to the Board must 

be consistent with the purpose of the 

NSIIC, which are to: (1) Promote 

strategic development activities and 

collaborative efforts by private and State 

entities to maximize the impact of 

Federal assistance to strengthen and 

enhance the production and marketing 

of sheep or goat products in the United 

States; (2) Optimize the use of available 

human capital and resources within the 

sheep or goat industries; (3) Provide 

assistance to meet the needs of the 

sheep or goat industry for infrastructure 

development, business development, 

production, resource development, and 

market and environmental research; (4) 

Advance activities that empower and 

build the capacity of the U.S. sheep or 

goat industry to design unique 

responses to the special needs of the 

sheep or goat industries on both a 

regional and national basis; and (5) 

Adopt flexible and innovative 

approaches to solving the long-term 

needs of the United States sheep or goat 

industry. 

Discussion of Interim Regulatory Text 

Sections 63.1 through 63.13 define 

certain terms pertinent to nomination 

processes for establishment of a NSIIC 

Board. 

Sections 63.100 through 63.112 

include provisions relating to the Board. 

These provisions cover establishment 

and membership, certification of 

organizations, the nomination process, 

powers and duties of the Board and 

other pertinent information related to 

Board function and operation. 

Section 63.200 details the 

establishment and purpose of the NSIIC. 

Sections 63.300 through 63.301 detail 

the establishment and use of the Fund. 

Specifically, these sections detail the 

purposes for which the Board shall 

expend funds and how the Fund shall 

be managed. This interim rule permits 

the making of contracts and grants only. 

Sections 63.400 through 63.402 

pertain to the books and records of the 

Board and the NSIIC, which the 

Secretary has access to and outlines the 

responsibilities for confidentiality. 

Sections 63.500 through 63.505 

contain miscellaneous provisions 

necessary for the function of the NSIIC 

and the oversight of USDA. 

Pursuant to 5 U.S.C. 553, it is found 

and determined upon good cause that it 

is impracticable and contrary to the 

public interest to give preliminary 

notice prior to putting this rule into 

effect in order to establish the Board and 

the NSIIC program at the earliest 

possible date consistent with the 2008 

Farm Bill. 

List of Subjects in 7 CFR Part 63 

Administrative practice and 

procedure, Advertising, Consumer 

Information, Goat and goat products, 

Lamb and lamb products, Marketing 

agreements, Reporting and 

recordkeeping requirements. 

■ For the reasons set forth in the 

preamble, chapter I of Title 7 is 

amended by adding part 63 to read as 

follows: 

PART 63—NATIONAL SHEEP 

INDUSTRY IMPROVEMENT CENTER 

Subpart A–General Provisions 

Definitions 

Sec. 

63.1 Act. 

63.2 Board. 

63.3 Department or USDA. 

63.4 Eligible entity. 

63.5 Eligible organization. 

63.6 Fiscal year. 

63.7 Fund. 

63.8 NSIIC. 

63.9 Part. 

63.10 Secretary. 

63.11 Under Secretary for Rural 

Development. 

63.12 Under Secretary for Research, 

Education, and Economics. 

63.13 United States. 

Board of Directors 

63.100 Establishment and membership. 

63.101 Nominations. 

63.102 Nominee’s agreement to serve. 

63.103 Appointment. 

63.104 Vacancies. 

63.105 Nominating organizations. 

63.106 Term of office. 

63.107 Compensation. 

63.108 Removal. 

63.109 Procedure. 

63.110 Powers and duties of the Board. 

63.111 Prohibited activities. 

63.112 Conflict of interest. 

National Sheep Industry Improvement 

Center 

63.200 NSIIC Establishment and purpose. 

Revolving Fund 

63.300 Establishment. 

63.301 Use of fund. 

Reports, Books, and Records 

63.400 Books and records. 

63.401 Use of information. 

63.402 Confidentiality. 

Miscellaneous 

63.500 Compliance. 

63.501 Patents, copyrights, inventions, 

trademarks, information, publications, 

and product formulations. 

63.502 Personal liability. 

63.503 Separability. 

63.504 Amendments. 

63.505 OMB control number. 

Subpart B [Reserved] 

Authority: 7 U.S.C. 2008j. 

Subpart A–General Provisions 

Definitions 

§ 63.1 Act. 

Act means section 375 of the 

Consolidated Farm and Rural 

Development Act, 7 U.S.C. 2008j, as 

amended by section 11009 of the Food, 

Conservation, and Energy Act of 2008 

(Pub. L. 110–246). 

§ 63.2 Board. 

Board means National Sheep Industry 

Improvement Center Board of Directors 

established under § 63.100. 

§ 63.3 Department or USDA. 

Department or USDA means the 

United States Department of 

Agriculture. 

§ 63.4 Eligible entity. 

Eligible entity means an entity that 

promotes the betterment of the United 

States sheep or goat industries and that 

is a public, private, or cooperative 

organization; an association, including a 

corporation not operated for profit; a 

federally recognized Indian Tribe; or a 

public or quasi-public agency. 

§ 63.5 Eligible organization. 

Eligible organization means any 

national organization that meets the 

criteria provided for in § 63.105 as being 

eligible to submit nominations for 

membership on the Board. 

§ 63.6 Fiscal year. 

Fiscal year means a calendar year or 

any other 12 month period as 

determined by the Board. 

§ 63.7 Fund. 

Fund means the NSIIC Revolving 

Fund established in the United States 

Department of the Treasury that is 

available to the NSIIC without fiscal 

year limitation, to carry out the 

programs and activities authorized 

under the Act. 

§ 63.8 NSIIC. 

NSIIC or Center means the National 

Sheep Industry Improvement Center 

established under § 63.200. 

§ 63.9 Part. 

Part means the rules and regulations 

issued pursuant to the Act that appear 

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Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Rules and Regulations 43035 

in part 63 of Title 7 of the Code of 

Federal Regulations. 

§ 63.10 Secretary. 

Secretary means the Secretary of 

Agriculture of the United States or any 

other officer or employee of the 

Department to whom authority has 

heretofore been delegated, or to whom 

authority may hereafter be delegated, to 

act in the Secretary’s stead. 

§ 63.11 Under Secretary for Rural 

Development. 

Under Secretary for Rural 

Development means the Under 

Secretary for Rural Development of the 

U.S. Department of Agriculture, or any 

other officer or employee of the 

Department designated by the Under 

Secretary to act in the Under Secretary’s 

stead. 

§ 63.12 Under Secretary for Research, 

Education, and Economics. 

Under Secretary for Research, 

Education, and Economics means the 

Under Secretary for Research, 

Education, and Economics of the U.S. 

Department of Agriculture, or any other 

officer or employee of the Department 

designated by the Under Secretary to act 

in the Under Secretary’s stead. 

§ 63.13 United States. 

United States means collectively the 

50 States, the District of Columbia, the 

Commonwealth of Puerto Rico, and the 

territories and possessions of the United 

States. 

Board of Directors 

§ 63.100 Establishment and membership. 

There is hereby established a National 

Sheep Industry Improvement Center 

Board. The Board is composed of seven 

voting members and two non-voting 

members. Voting members of the Board 

shall be appointed by the Secretary from 

nominations submitted in accordance 

with this part. The Board shall consist 

of the following: 

(a) Voting Members. 

(1) Four members shall be active 

producers of sheep or goats in the 

United States; 

(2) Two members shall have expertise 

in finance and management; and 

(3) One member shall have expertise 

in lamb, wool, goat, or goat product 

marketing. 

(b) Non-Voting Members. 

(1) One member shall be the Under 

Secretary of Agriculture for Rural 

Development, USDA; and 

(2) One member shall be the Under 

Secretary for Research, Education, and 

Economics, USDA. 

§ 63.101 Nominations. 

All nominations authorized under 

this section shall be made in the 

following manner: 

(a) Nominations shall be obtained by 

the Secretary from national 

organizations eligible under § 63.105. 

An eligible organization shall submit to 

the Secretary for consideration at least 

two nominations for one or more voting 

member seats on the Board. If two 

nominations for each voting member 

seat are not submitted by such 

organization(s), then the Secretary may 

solicit nominations from other sources. 

(b) After the establishment of the 

initial Board, USDA shall announce 

when a vacancy does or will exist. 

Nomination for subsequent Board 

members shall be submitted to the 

Secretary not less than sixty (60) days 

prior to the expiration of the terms of 

the members whose terms are expiring, 

in the manner as described in this 

section. In the case of vacancies due to 

reasons other than the expiration of a 

term of office, successor Board members 

shall be appointed pursuant to § 63.104. 

(c) If more than one eligible 

organization exists, they may caucus 

and jointly nominate at least two 

qualified persons for each position. If 

joint agreement is not reached with 

respect to any such nominations, or if 

no caucus is held, each eligible 

organization may submit to the 

Secretary at least two nominees for each 

appointment to be made. 

§ 63.102 Nominee’s agreement to serve. 

Any person nominated to serve on the 

Board 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 that may 

create a conflict of interest under 

§ 63.112; and 

(c) Withdraw from participation in 

deliberations, decision-making, or 

voting on matters which concern any 

relationship disclosed under paragraph 

(b) of this section. 

§ 63.103 Appointment. 

From the nominations made pursuant 

to § 63.101, the Secretary shall appoint 

the members of the Board. 

§ 63.104 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 the 

Secretary shall request nominations for 

a successor pursuant to § 63.101 and 

such successor shall be appointed 

pursuant to § 63.103. 

§ 63.105 Nominating organizations. 

(a) In general. Nominations for voting 

members of the Board may be submitted 

by any national organization that the 

Secretary determines meets the 

eligibility criteria established under 

paragraph (b) of this section. 

(b) Basis for eligibility. A national 

organization is eligible to submit 

nominations for voting members on the 

Board if: 

(1) The membership of the 

organization consists primarily of active 

sheep or goat producers in the United 

States; and 

(2) The primary interest of the 

organization is the production of sheep 

or goats in the United States. 

§ 63.106 Term of office. 

(a) The voting members of the Board 

shall serve for a term of three years; 

except that persons (other than the 

chairperson) appointed to the initial 

Board shall serve staggered terms of one, 

two, and three years, as determined by 

the Secretary. 

(b) No member may serve more than 

two consecutive full terms. 

§ 63.107 Compensation. 

Board members shall serve without 

compensation, but shall be reimbursed 

for their reasonable travel, subsistence, 

and other necessary expenses incurred 

in performing their duties as members 

of the Board. 

§ 63.108 Removal. 

If the Secretary determines that any 

person appointed under this part fails or 

refuses to perform his or her duties 

properly or engages in acts of 

dishonesty or willful misconduct, the 

Secretary shall remove the person from 

office. A person appointed under this 

part or any employee of the Board may 

be removed by the Secretary if the 

Secretary determines that the person’s 

continued service would be detrimental 

to the purposes of the Act. 

§ 63.109 Procedure. 

(a) At a Board meeting, it will be 

considered a quorum when a simple 

majority of the voting representatives 

are present. 

(b) A decision of the Board shall be 

made by a majority of the voting 

members of the board. 

(c) The Board shall meet not less than 

once each fiscal year at the call of the 

chairperson or at the request of the 

executive director. 

(d) The location of the meeting shall 

be established by the Board. 

(e) A chairperson shall be selected 

from among the voting members of the 

Board and all serve a term of office of 

two years. 

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(f) All Board members and the 

Secretary will be notified at least 30 

days in advance of all Board meetings, 

unless an emergency meeting is 

declared. 

(g) In lieu of voting at a properly 

convened meeting and, when in the 

opinion of the chairperson of the Board 

such action is necessary, the Board may 

take action if supported by a simple 

majority of the Board representatives by 

mail, telephone, electronic mail, 

facsimile, or any other means of 

communication. In that event, all 

representatives must be notified and 

provided the opportunity to vote. Any 

action so taken shall have the same 

force and effect as though such action 

had been taken at a properly convened 

meeting of the Board. All telephone 

votes shall be confirmed promptly in 

writing. All votes shall be recorded in 

Board minutes. 

(h) There shall be no voting by proxy. 

(i) The organization of the Board and 

the procedures for conducting meetings 

of the Board shall be in accordance with 

its bylaws, which shall be established 

by the Board and approved by the 

Secretary. 

§ 63.110 Powers and duties of the Board. 

The management of the NSIIC shall be 

vested in the Board of Directors. The 

Board shall have the following powers 

and duties: 

(a) Be responsible for the general 

supervision of the NSIIC; 

(b) Review any grant or contract 

agreement to be made or entered into by 

the NSIIC and any financial assistance 

provided to the NSIIC; 

(c) Make the final decision, by 

majority vote, on whether or not to 

provide grants to an eligible entity in 

accordance with the strategic plan; 

(d) Develop and establish a budget 

plan and long-term operating plan to 

carry out the goals of the NSIIC; 

(e) Adopt, and amend as appropriate, 

bylaws as necessary for the proper 

management and functioning of the 

NSIIC; 

(f) Provide a system of organization to 

fix responsibility and promote 

efficiency in carrying out the functions 

of the NSIIC; 

(g) Appoint and establish 

compensation for an executive director, 

who will serve at the pleasure of the 

Board, to be the chief executive officer 

of the NSIIC; 

(h) Appoint other officers, attorneys, 

employees, and agents as necessary and 

set forth their respective duties and 

powers; 

(i) Delegate, by resolution, to the 

chairperson, the executive director, or 

any other officer or employee any 

function, power, or duty of the Board— 

other than voting on a grant, contract, 

agreement, budget, or annual strategic 

plan; and 

(j) Consult with the following entities 

to carry out this part: 

(1) State departments of agriculture; 

(2) Federal departments and agencies; 

(3) Nonprofit development 

corporations; 

(4) Colleges and universities; 

(5) Banking and other credit-related 

agencies; 

(6) Agriculture and agribusiness 

organizations, and 

(7) Regional planning and 

development organizations. 

§ 63.111 Prohibited activities. 

The Board may not engage in, and 

shall prohibit the employees and agents 

of the Board from engaging in: 

(a) Any action that is a conflict of 

interest under § 63.112; 

(b) Using funds to undertake any 

action for the purpose of influencing 

legislation or governmental action or 

policy, by local, State, national, and 

foreign governments, other than 

recommending to the Secretary 

amendments to the Order; and 

(c) Any activity that is false, 

misleading, or disparaging to another 

agricultural commodity. 

§ 63.112 Conflict of interest. 

(a) In general. Members of the Board 

shall not vote on any particular matter 

pending before the Board in which, to 

the knowledge of the member, an 

interest is held by the member, any 

spouse of the member, any child of the 

member, any partner of the member, any 

organization in which the member is 

serving as an officer, director, trustee, 

partner, or employee; or any person 

with whom the member is negotiating or 

has any arrangement concerning 

prospective employment or with whom 

the member has a financial interest, 

except as provided in paragraph (c) of 

this section. 

(b) Validity of action. An action by a 

member of the Board that violates 

§ 63.112 (a) shall not impair or 

otherwise affect the validity of any 

otherwise lawful action by the Board. 

(c) Disclosure. If a member of the 

Board makes full disclosure of an 

interest and, prior to any participation 

by the member, the Board determines, 

by majority vote, that the interest is too 

remote or too inconsequential to affect 

the integrity of any participation by the 

member, the member may participate in 

the matter relating to the interest, except 

as provided in paragraph (d) of this 

section. A member that discloses an 

interest under section § 63.112(a) shall 

not vote on a determination of whether 

the member may participate in the 

matter relating to the interest. 

(d) Remands. The Secretary may 

vacate and remand to the Board for 

reconsideration any decision made if 

the Secretary determines that there has 

been a violation of this section or any 

conflict of interest provision of the 

bylaws of the Board with respect to the 

decision. 

(1) In the case of any violation and 

remand of a funding decision to the 

Board, the Secretary shall inform the 

Board of the reasons for the remand. 

(2) If a decision with respect to the 

matter is remanded to the Board by 

reason of a conflict of interest faced by 

a Board member, the member may not 

participate in any subsequent decision 

with respect to the matter. 

National Sheep Industry Improvement 

Center 

§ 63.200 NSIIC Establishment and 

purpose. 

(a) There is hereby established a 

National Sheep Industry Improvement 

Center. The purpose of the Center shall 

be to: 

(1) Promote strategic development 

activities and collaborative efforts by 

private and State entities to maximize 

the impact of Federal assistance to 

strengthen and enhance production and 

marketing of sheep or goat products in 

the United States; 

(2) Optimize the use of available 

human capital and resources within the 

sheep or goat industries; 

(3) Provide assistance to meet the 

needs of the sheep or goat industry for 

infrastructure development, business 

development, production, resource 

development, and market and 

environmental research; 

(4) Advance activities that empower 

and build the capacity of the U.S. sheep 

or goat industry to design unique 

responses to the special needs of the 

sheep or goat industries on both a 

regional and national basis; and 

(5) Adopt flexible and innovative 

approaches to solving the long-term 

needs of the United States sheep and 

goat industry. 

(b) The NSIIC shall submit to the 

Secretary an annual strategic plan for 

the delivery of financial assistance 

provided by the NSIIC. A strategic plan 

shall identify: 

(1) Goals, methods, and a benchmark 

for measuring the success of carrying 

out the plan and how the plan relates to 

the national and regional goals of the 

NSIIC; 

(2) The amount and sources of Federal 

and non-Federal funds that are available 

for carrying out the plan; 

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Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Rules and Regulations 43037 

(3) Funding priorities; 

(4) Selection criteria for funding; and 

(5) A method of distributing funding. 

Revolving Fund 

§ 63.300 Establishment. 

The NSIIC Revolving Fund 

established in the Treasury shall be 

available to the NSIIC, without fiscal 

year limitation, to carry out the 

authorized programs and activities of 

the NSIIC under this part. There shall be 

deposited in the Fund: 

(a) Such amounts as may be 

appropriated, transferred, or otherwise 

made available to support programs and 

activities of the NSIIC; 

(b) Payments received from any 

source for products, services, or 

property furnished in connection with 

the activities of the NSIIC; 

(c) Fees and royalties collected by the 

NSIIC from licensing or other 

arrangements relating to 

commercialization of products 

developed through projects funded, in 

whole or part, by grants or contracts 

executed by the NSIIC; 

(d) Donations or contributions 

accepted by the NSIIC to support 

authorized programs and activities. 

Such contributions shall be free from 

any encumbrance by the donor and the 

NSIIC shall retain complete control of 

their use; and 

(e) Any other funds acquired by the 

NSIIC. 

§ 63.301 Use of fund. 

The NSIIC shall use the Fund to: 

(a) Make grants to eligible entities in 

accordance with a strategic plan 

submitted under § 63.310 of this part. 

Specifically, amounts in the Fund may 

be used to: 

(1) Participate with Federal and State 

agencies in financing activities that are 

in accordance with the strategic plan, 

including participation with several 

States in a regional effort; 

(2) Participate with other public and 

private funding sources in financing 

activities that are in accordance with the 

strategic plan, including participation in 

a regional effort; 

(3) Accrue interest; 

(4) Serve broad geographic areas and 

regions of diverse production, to the 

maximum extent practicable; 

(5) Only to supplement and not 

supplant Federal, State, and private 

funds expended for rural development; 

(6) For administration purposes, with 

a maximum 3 percent of the NSIIC Fund 

balance at the beginning of each fiscal 

year for the administration of the NSIIC; 

and 

(b) Provide funds to eligible entities 

contingent upon that entity agreeing to 

account for the amounts using generally 

accepted accounting principles and to 

provide access to the Secretary for 

inspection and audit of such records. 

Reports, Books, and Records 

§ 63.400 Books and records. 

The Board and NSIIC shall: 

(a) Maintain such books and records, 

which shall be made available to the 

Secretary for inspection and audit as is 

appropriate for the administration or 

enforcement of the Act or rules and 

regulations issued thereunder; 

(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 NSIIC 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. 

§ 63.401 Use of information. 

Information from records or reports 

required pursuant to this part shall be 

made available to the Secretary as is 

appropriate for the administration or 

enforcement of the Act or rules and 

regulation issued thereunder. 

§ 63.402 Confidentiality. 

All information obtained from books, 

records, reports, or any other material 

obtained under the Act and this part, 

shall be kept confidential by all persons, 

including employees and former 

employees of the NSIIC. Nothing in this 

section shall be deemed to prohibit the 

issuance of general statements based 

upon the reports or the statistical data, 

which statements do not identify the 

information furnished by any entity. 

Miscellaneous 

§ 63.500 Compliance. 

The Secretary shall review and 

monitor compliance by the Board and 

the NSIIC with the Act and this part. 

§ 63.501 Patents, copyrights, inventions, 

trademarks, information, publications, and 

product formulations. 

Any patents, copyrights, inventions, 

trademarks, information, publications, 

or product formulations developed 

through the use of funds collected by 

the Board under the provisions of this 

subpart shall be the property of the U.S. 

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, 

trademarks, information, publications, 

or product formulations, inure to the 

benefit of the Board; shall be considered 

income subject to the same fiscal, 

budget, and audit controls as other 

funds of the Board; and may be licensed 

subject to approval by the Secretary. 

Should patents, copyrights, inventions, 

trademarks, information, publications, 

or product formulations be developed 

through the use of funds collected by 

the Board under this part and funds 

contributed by another organization or 

person, ownership and related rights to 

such patents, copyrights, inventions, 

trademarks, information, publications, 

or product formulations shall be 

determined by agreement between the 

Board and the party contributing funds 

towards the development of such 

patents, copyrights, inventions, 

trademarks, information, publications, 

or product formulations in a manner 

consistent with this paragraph. 

§ 63.502 Personal liability. 

No member or employee of the Board 

shall be held personally responsible, 

either individually or jointly, in any 

way whatsoever to any person for errors 

in judgment, mistakes, or other acts, 

either of commission or omission, as 

such member or employee, except for 

acts of dishonesty or willful 

misconduct. 

§ 63.503 Separability. 

If any provision of the part is declared 

invalid or the applicability thereof to 

any person or circumstance is held 

invalid, the validity of the remainder of 

this subpart, or the applicability thereof 

to other persons or circumstances shall 

not be affected thereby. 

§ 63.504 Amendments. 

Amendments to this part may be 

proposed, from time to time, by the 

Board or by any interested persons 

affected by the provisions of the Act, 

including the Secretary. 

§ 63.505 OMB control number. 

The control number assigned to the 

information collection requirements of 

this part by the Office of Management 

and Budget pursuant to the Paperwork 

Reduction Act of 1995, 44 U.S.C. 

Chapter 35, is OMB control number 

0505–new. 

Subpart B [Reserved] 

Dated: July 19, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–18096 Filed 7–22–10; 8:45 am] 

BILLING CODE 3410–02–P 

WReier-Aviles on DSKGBLS3C1PROD with RULES