S. 2500

One Hundred Third Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-fifth day of January, one thousand nine hundred and ninety-four

An Act

To enable producers and feeders of sheep and importers of sheep and sheep products

to develop, finance, and carry out a nationally coordinated program for sheep

and sheep product promotion, research, and information, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Sheep Promotion, Research,

and Information Act of 1994’’.

SEC. 2. FINDINGS AND DECLARATION OF POLICY.

(a) FINDINGS.—Congress finds that—

(1) sheep and sheep products are important goods;

(2) the production of sheep and sheep products play a

significant role in the economy of the United States in that

sheep and sheep products are produced throughout the United

States and used by millions of people throughout the United

States and foreign countries;

(3) sheep and sheep products must be high quality, readily

available, handled properly, and marketed efficiently to ensure

that consumers have an adequate supply of sheep products;

(4) the maintenance and expansion of existing markets

and development of new markets for sheep and sheep products

are vital to the welfare of sheep producers and persons concerned with marketing, using, and producing sheep and sheep

products, as well as to the general economy of the United

States, and necessary to ensure the ready availability and

efficient marketing of sheep and sheep products;

(5) there exist established State organizations conducting

sheep and sheep product promotion, research, and industry

and consumer education programs that are invaluable to the

efforts of promoting the consumption of sheep and sheep products;

(6) the cooperative development, financing, and

implementation of a coordinated national program of sheep

and sheep product promotion, research, consumer information,

education, and industry information are necessary to maintain

and expand existing markets and develop new markets for

sheep and sheep products; and

(7) sheep and sheep products move in interstate and foreign

commerce, and sheep and sheep products that do not move

in such channels of commerce directly burden or affect interstate commerce in sheep and sheep products.
S. 2500—2

(b) POLICY.—It is the policy of Congress that it is in the public

interest to authorize the establishment, through the exercise of

the powers provided in this Act, of an orderly procedure for developing, financing (through adequate assessments on sheep and sheep

products produced or imported into the United States), and carrying

out an effective, continuous, coordinated program of promotion,

research, consumer information, education, and industry information designed to—

(1) strengthen the position of the sheep and sheep product

industry in the marketplace;

(2) maintain and expand existing domestic and foreign

markets and uses for sheep and sheep products; and

(3) develop new markets and uses for sheep and sheep

products.

(c) CONSTRUCTION.—Nothing in this Act provides for the control

of production, or otherwise limits, the right of any person to produce

sheep or sheep products.

SEC. 3. DEFINITIONS.

As used in this Act (unless the context clearly requires otherwise):

(1) BOARD.—The term ‘‘Board’’ means the National Sheep

Promotion, Research, and Information Board established under

section 5(b).

(2) 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 fibres.

(3) CONSUMER INFORMATION.—The term ‘‘consumer

information’’ means nutritional data and other information that

will assist consumers and other persons in making evaluations

and decisions regarding the purchase, preparation, or use of

sheep products.

(4) CUSTOMS SERVICE.—The term ‘‘Customs Service’’ means

United States Customs Service of the Department of the Treasury.(5) DEGREASED WOOL.—The term ‘‘degreased wool’’ means

wool from which the bulk of impurities has been removed

by processing. (6) DEPARTMENT.—The term ‘‘Department’’ means the

United States Department of Agriculture. (7) EDUCATION.—The term ‘‘education’’ means activities

providing information relating to the sheep industry or sheep

products to producers, feeders, importers, consumers, and other

persons.

(8) EXECUTIVE COMMITTEE.—The term ‘‘Executive Committee’’ means the Executive Committee established under section

5(g).

(9) EXPORTER.—The term ‘‘exporter’’ means any person who

exports domestic live sheep or greasy wool from the United

States.

(10) FEEDER.—The term ‘‘feeder’’ means a person who feeds

lambs until the lambs reach slaughter weight.

(11) GREASY WOOL.—The term ‘‘greasy wool’’ means wool

that has not been washed or otherwise cleaned.

(12) HANDLER.—The term ‘‘handler’’ means any person who

purchases and markets greasy wool.
S. 2500—3

(13) IMPORTER.—The term ‘‘importer’’ means any person

who imports sheep or sheep products into the United States.

(14) INDUSTRY INFORMATION.—The term ‘‘industry information’’ means information and programs that will 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.

(15) ORDER.—The term ‘‘order’’ means a sheep and wool

promotion, research, education, and information order issued

under section 4.

(16) PERSON.—The term ‘‘person’’ means any individual,

group of individuals, partnership, corporation, association,

cooperative, or any other legal entity.

(17) PROCESSOR.—The term ‘‘processor’’ means any person

who slaughters sheep or processes greasy wool into degreased

wool.

(18) PRODUCER.—The term ‘‘producer’’ means any person,

other than a feeder, who owns or acquires ownership of sheep.

(19) 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.

(20) 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.

(21) PULLED WOOL.—The term ‘‘pulled wool’’ means wool

that is pulled from the skin of a slaughtered sheep.

(22) 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 is otherwise 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 1 qualified State sheep board shall

exist in any State at any 1 time.

(23) RAW WOOL.—The term ‘‘raw wool’’ means greasy wool,

pulled wool, degreased wool, or carbonized wool.

(24) 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.

(25) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture.

(26) SHEEP.—The term ‘‘sheep’’ means ovine animals of

any age, including lambs.
S. 2500—4

(27) SHEEP PRODUCTS.—The term ‘‘sheep products’’ means

products produced, in whole or in part, from sheep, including

wool and products containing wool fiber.

(28) STATE.—The term ‘‘State’’ means each of the 50 States.

(29) UNIT.—The term ‘‘unit’’ means each State, group of

States, or class designation that is represented on the Board.

(30) UNITED STATES.—The term ‘‘United States’’ means the

50 States and the District of Columbia.

(31) WOOL.—The term ‘‘wool’’ means the fiber from the

fleece of a sheep.

(32) WOOL PRODUCTS.—The term ‘‘wool products’’ means

products produced, in whole or in part, from wool and products

containing wool fiber.

SEC. 4. ISSUANCE AND AMENDMENT OF ORDERS.

(a) IN GENERAL.—Subject to subsection (b), the Secretary shall

issue orders under this Act applicable to producers, feeders, importers, handlers, and purchasers of sheep and sheep products. Any

order shall be national in scope. Not more than 1 order shall

be in effect under this Act at any 1 time.

(b) PROCEDURE.—

(1) PROPOSAL OR REQUEST FOR ISSUANCE.—The Secretary

may propose the issuance of an order under this Act, or an

association of producers may request the issuance of, and submit a proposal for, an order.

(2) NOTICE AND COMMENT CONCERNING PROPOSED ORDER.—

Not later than 60 days after the receipt of a request and

proposal for an order under paragraph (1), the Secretary shall

publish a proposed order and give due notice and opportunity

for public comment on the proposed order.

(3) ISSUANCE OF ORDERS.—After notice and opportunity

for public comment are given as provided in paragraph (2),

the Secretary shall issue an order, taking into consideration

the comments received, that includes provisions necessary to

ensure that the order is in conformity with this Act. The order

shall be issued not later than 180 days following publication

of the proposed order.

(4) REFERENDUM.—The order shall go into effect only if

the order is approved by producers, feeders, and importers

in a referendum conducted under section 6.

(c) AMENDMENTS.—The Secretary, from time to time, may

amend any order issued under this Act.

SEC. 5. REQUIRED TERMS IN ORDERS.

(a) IN GENERAL.—An order issued under this Act shall contain

the terms and conditions specified in this section.

(b) ESTABLISHMENT AND MEMBERSHIP OF BOARD.—

(1) IN GENERAL.—The order shall provide for the establishment of, and appointment of members to, a National Sheep

Promotion, Research, and Information Board to administer the

order. Members of the Board shall be appointed by the Secretary from nominations provided in accordance with this subsection. The cumulative number of seats on the Board shall

be 120 and shall be apportioned as follows:
S. 2500—5

(A) PRODUCERS.—Producers shall be appointed to the

Board to represent States, with each State represented

by the following number of 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

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 on the Board by 10 members. (C) IMPORTERS.—Importers shall be represented on the

Board by 25 members. (D) ALTERNATES.—The order shall provide that a unit

represented by only 1 member may have an alternate member appointed to ensure representation at meetings of the

Board.

(2) NOMINATIONS.—

(A) PRODUCERS.—The Secretary shall appoint producers to represent units established under paragraph (1)(A)

from nominations submitted by eligible organizations certified under subsection (c)(3). An eligible organization may
S. 2500—6

submit only nominations from the membership of the

organization for the unit in which the organization is

located. To be represented on the Board, each eligible

organization shall submit to the Secretary at least 1.5

nominations for each appointment to the Board for which

the unit is entitled to representation, as determined under

paragraph (1)(A). If a unit is entitled to 1 appointment

on the Board, the unit shall submit at least 2 nominations

for the appointment.

(B) FEEDERS.—The Secretary shall appoint representatives of the feeder sheep industry to seats established under

paragraph (1)(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 for which the feeder sheep industry is entitled

to representation, as determined under paragraph (1)(B).

(C) IMPORTERS.—The Secretary shall appoint importers

to seats established under paragraph (1)(C) from nominations submitted by qualified organizations that represent

importers, as determined by the Secretary. To be represented on the Board, importers shall provide at least

1.5 nominations for each appointment to the Board for

which importers are entitled to representation, as determined under paragraph (1)(C).

(c) METHOD FOR OBTAINING NOMINATIONS.—

(1) INITIALLY ESTABLISHED BOARD.—

(A) PRODUCER NOMINATIONS.—The Secretary shall

solicit nominations for each seat on the initially established

Board to which a unit is entitled to representation from

eligible organizations certified under paragraph (3). If no

such organization exists in the unit, the Secretary shall

solicit nominations for appointments in such manner as

the Secretary determines appropriate. (B) FEEDER AND IMPORTER NOMINATIONS.—The Secretary shall solicit nominations for each seat for which

feeders or importers are entitled to representation from

organizations that represent feeders and importers, respectively. In determining whether an organization is eligible

to submit nominations under this subparagraph, the Secretary shall determine whether— (i) the active membership of the organization

includes a significant number of feeders or importers

in relation to the total membership of the organization; (ii) there is evidence of stability and permanency

of the organization; and

(iii) the organization has a primary and overriding

interest in representing the feeder or importer segment

of the sheep industry.

(2) SUBSEQUENT APPOINTMENT.—

(A) PRODUCER NOMINATIONS.—The solicitation of

nominations for subsequent appointment to the Board from

eligible organizations certified under paragraph (3) shall

be initiated by the Secretary, with the Board securing

the nominations for the Secretary.

(B) FEEDER AND IMPORTER NOMINATIONS.—The solicitation of feeder and importer nominations for seats on the
S. 2500—7

Board shall be made by the Secretary in accordance with

paragraph (1)(B).

(3) CERTIFICATION OF ORGANIZATIONS.—

(A) IN GENERAL.—The eligibility of any organization

to represent producers, and to participate in the making

of nominations to represent producers under this section,

shall be certified by the Secretary. The Secretary shall

certify any organization that the Secretary determines

meets the eligibility criteria established by the Secretary

under this paragraph. An eligibility determination of the

Secretary under this paragraph shall be final.

(B) BASIS FOR CERTIFICATION.—Certification under this

paragraph shall be based, in addition to other available

information, on a factual report submitted by the organization, that shall contain information considered relevant

and specified by the Secretary, including—

(i) the geographic territory covered by the active

membership of the organization;

(ii) 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;

(iii) evidence of stability and permanency of the

organization;

(iv) sources from which the operating funds of

the organization are derived;

(v) the functions of the organization; and

(vi) the ability and willingness of the organization

to further the aims and objectives of this Act.

(C) PRIMARY CONSIDERATIONS.—A primary consideration in determining the eligibility of an organization under

this paragraph shall be whether—

(i) the membership of the organization consists

primarily of producers who own a substantial quantity

of sheep; and

(ii) an interest of the organization is in the production of sheep.

(d) ADMINISTRATION.—

(1) TERMS.—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 2 consecutive

3-year terms, except that an elected officer of the Board shall

not be subject to this sentence while the officer holds office.

(2) COMPENSATION.—A Board member shall serve without

compensation, but shall be reimbursed for the reasonable

expenses of the member incurred in performing the duties

of the Board.

(3) MEETINGS.—The order shall provide for at least an

annual meeting of the Board and such additional meetings

of the Board as may be required.

(e) POWERS AND DUTIES OF THE BOARD.—The order shall define

the powers and duties of the Board and shall include the power

and duty—

(1) to elect officers of the Board, including a Chairperson,

Vice Chairperson, and Secretary;
S. 2500—8

(2) to administer the order in accordance with the terms

and provisions of the order;

(3) to recommend regulations to effectuate the terms and

provisions of the order;

(4) to elect members of the Board to serve on the Executive

Committee;

(5) to approve or reject budgets submitted by the Executive

Committee;

(6) on approval, to submit the budgets to the Secretary

for the approval or disapproval of the Secretary;

(7) to contract with entities, if necessary, to carry out

plans or projects in accordance with this Act;

(8) to conduct programs of promotion, research, consumer

information, education, industry information, and producer

information;

(9) to receive, investigate, and report to the Secretary complaints of violations of the order;

(10) to recommend to the Secretary amendments to the

order;

(11) to provide the Secretary with prior notice of meetings

of the Board to permit the Secretary, or a designated representative, to attend the meetings;

(12) to provide, not less than annually, a report to producers, feeders, and importers accounting for funds expended by

the Board and describing programs carried out under this Act,

and to make the report available to the public on request;

(13) to establish 7 regions that, to the extent practicable,

contain geographically contiguous States and approximately

equal numbers of producers and sheep production;

(14) to employ or retain necessary staff; and

(15) to invest funds in accordance with subsection (k).

(f) BUDGETS.— (1) IN GENERAL.—The order shall provide that the Board

shall review budgets 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. On

approval by the Board, the Board shall submit the budget

to the Secretary for the approval of the Secretary. (2) LIMITATION.—No expenditure of funds may be made

by the Board unless the expenditure is authorized under a

budget or budget amendment approved by the Secretary.

(g) EXECUTIVE COMMITTEE.— (1) ESTABLISHMENT.—The order shall establish an Executive Committee to administer the terms and provisions of the

order, as provided in this subsection, under the direction of

the Board and consistent with the policies determined by the

Board.

(2) MEMBERSHIP.—The Executive Committee shall be composed of 14 members, of which—

(A) 11 members shall be elected by the Board on an

annual basis, of which—

(i) 7 members shall represent producers, with 1

member representing each of the regions established

in the order;

(ii) 1 member shall represent feeders; and
S. 2500—9

(iii) 3 members shall represent importers; and

(B) 3 members shall be the Chairperson, Vice Chairperson, and Secretary of the Board.

(3) POWERS AND DUTIES.—

(A) PLANS OR PROJECTS.—The Executive Committee

shall develop plans or projects of promotion, research,

consumer information, education, industry information, and

producer information, which shall be paid for with assessments collected by the Board. The plans or projects shall

not become effective until the plans or projects are approved

by the Secretary.

(B) BUDGETS.—The Executive Committee shall be

responsible for developing and submitting to the Board,

for the approval of the Board, budgets, on a fiscal year

basis, of the anticipated expenses and disbursements of

the Board, including probable costs of promotion, research,

consumer information, education, industry information, and

producer information projects. The Board shall approve

or disapprove a budget submitted by the Executive Committee, and, if approved, shall submit the budget to the Secretary for the approval of the Secretary.

(4) TERMS.—A term of appointment to the Executive

Committee shall be for 1 year.

(5) CHAIRPERSON.—The Chairperson of the Board shall

serve as Chairperson of the Executive Committee.

(6) QUORUM.—A quorum of the Executive Committee shall

consist of 8 members.

(h) EXPENSES, CONTRACTS, AND AGREEMENTS.— (1) EXPENSES.—The order shall provide that the Board

shall be responsible for all expenses of the Board and the

Executive Committee.

(2) CONTRACTS AND AGREEMENTS.—A contract or agreement entered into by the Board under subsection (e)(7) shall provide

that—

(A) the contracting party shall develop and submit

to the Board a plan or project, together with a budget

or budgets that provides estimated costs to be incurred

for the plan or project; (B) the plan or project, and the contract or agreement,

shall not become effective until the plan or project has

been approved by the Secretary; and (C) the contracting party shall— (i) keep accurate records of all of the transactions

of the party; (ii) account for funds received and expended,

including staff time, salaries, and expenses expended

on behalf of Board activities;

(iii) make periodic reports to the Board of activities

conducted; and

(iv) make such other reports as the Board or the

Secretary may require.

(i) ASSESSMENTS.—

(1) SHEEP PURCHASES.—

(A) IN GENERAL.—The order shall provide that each

person making payment to a producer or feeder for sheep

purchased from the producer or feeder shall, in the manner

prescribed by the order, collect an assessment from the
S. 2500—10

producer or feeder on each sheep sold by the producer

or feeder.

(B) PROCESSING.—Any person purchasing sheep for

processing shall collect the assessment from the seller and

remit the assessment to the Board in the manner prescribed by the order.

(C) RATE.—

(i) IN GENERAL.—Except as provided in clause (ii),

the rate of assessment under this paragraph shall be

1 cent per pound of live sheep sold.

(ii) EXCEPTION.—The rate of assessment under this

paragraph may be raised or lowered not more than

15⁄100 of a cent per pound in any 1 year, as recommended by the Executive Committee and approved

by the Board and the Secretary, except that the rate

of assessment under this paragraph shall not exceed

2.5 cents per pound of live sheep sold.

(2) WOOL PURCHASES.—

(A) IN GENERAL.—The order shall provide that each

person making payment to a producer, feeder, or handler

of wool for wool purchased from the producer, feeder, or

handler shall, in the manner prescribed by the order, collect

an assessment on each pound of greasy wool sold.

(B) PROCESSING.—Any person purchasing greasy wool

for processing shall collect the assessment and remit the

assessment to the Board in the manner prescribed by the

order.

(C) RATE.— (i) IN GENERAL.—Except as provided in clause (ii),

the rate of assessment under this paragraph shall be

2 cents per pound of greasy wool. (ii) EXCEPTION.—The rate of assessment under this

paragraph may be raised or lowered not more than

2⁄10 of a cent per pound in any 1 year, as recommended

by the Executive Committee and approved by the

Board and the Secretary, except that the rate of assessment under this paragraph shall not exceed 4 cents

per pound of greasy wool. (3) DIRECT PROCESSING.—The order shall provide that any

person processing or causing to be processed sheep or sheep

products of that person’s own production and marketing shall— (A) pay an assessment on the sheep or sheep products

at the time of sale at a rate equivalent to the rate provided

for in paragraph (1) or (2), as appropriate; and (B) remit the assessment to the Board in the manner

prescribed by the order.

(4) EXPORTS.—The order shall provide that any person

exporting live sheep or greasy wool shall—

(A) pay the assessment on the sheep or greasy wool

at the time of export at a rate equivalent to the rate

provided for in paragraph (1) or (2), as appropriate; and

(B) remit the assessment to the Board in the manner

prescribed by the order.

(5) IMPORTS.—

(A) IN GENERAL.—The order shall provide that any

person importing sheep or sheep product, and any person

importing wool or products containing wool, into the United
S. 2500—11

States shall pay an assessment to the Board in the manner

prescribed by the order, except that this paragraph shall

not apply to raw wool that is imported into the United

States.

(B) COLLECTION.—The Customs Service shall collect

the assessment required under this paragraph and remit

the assessment to the Secretary for disbursement to the

Board.

(C) RATE FOR SHEEP AND SHEEP PRODUCTS.—

(i) IN GENERAL.—Except as provided in subparagraph (B), the rate of assessment under this paragraph

for sheep and sheep products shall be—

(I) in the case of a live sheep, 1 cent per

pound; and

(II) in the case of a sheep product, the equivalent of 1 cent per pound of live sheep, as determined by the Secretary in consultation with the

domestic sheep industry.

(ii) EXCEPTION.—The rate of assessment under this

subparagraph may be raised or lowered not more than

15⁄100 cent per pound in any 1 year, as recommended

by the Executive Committee and approved by the

Board and the Secretary, except that the rate of assessment under this subparagraph shall not exceed 2.5

cents per pound.

(D) RATE FOR WOOL AND WOOL PRODUCTS.—

(i) IN GENERAL.—Except as provided in clause (ii),

the rate of assessment under this paragraph for wool

and products containing wool, shall be 2 cents per

pound of degreased wool or the equivalent of degreased

wool.

(ii) EXCEPTION.—The rate of assessment under this

subparagraph may be raised or lowered not more than

2⁄10 cent per pound in any 1 year, as recommended

by the Executive Committee and approved by the

Board and the Secretary, except that the rate of assessment under this subparagraph shall not exceed 4 cents

per pound of degreased wool or the equivalent of

degreased wool. (6) QUALIFIED STATE SHEEP BOARDS.— (A) IN GENERAL.—Except as provided in subparagraph (B), the order shall provide that 20 percent of the total

assessments collected by the Board on the marketing of

domestic sheep and domestic sheep products in any 1 year

from a State shall be returned to the qualified State sheep

board of the State.

(B) EXCEPTION.—No qualified State sheep board shall

receive less than $2,500 under subparagraph (A) in any

year.

(7) DE MINIMIS IMPORTS.—The Secretary may issue regulations that—

(A) exclude certain imported materials or products that

contain de minimis content levels of sheep or sheep products; and

(B) waive the assessment due on the materials or

products.

(8) USE OF ASSESSMENTS.—
S. 2500—12

(A) IN GENERAL.—The order shall provide that assessments received by the Board shall be used by the Board

for the payment of expenses incurred in administering

the order, with authorization for a reasonable reserve.

(B) REIMBURSEMENT OF SECRETARY.—The Secretary

shall be reimbursed for costs incurred in implementing

and administering the order.

(j) BOOKS AND RECORDS OF BOARD.—

(1) IN GENERAL.—The order shall require the Board to—

(A) maintain such books and records as the Secretary

may prescribe, which shall be available to the Secretary

for inspection and audit;

(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 the Board.

(2) AUDIT.—The Board shall cause books and records of

the Board related to the order to be audited by an independent

auditor at the end of each fiscal year. The Board shall submit

a report of the audit to the Secretary.

(k) INVESTMENT OF FUNDS.—

(1) IN GENERAL.—The order shall provide that the Board

may invest, pending disbursement, funds the Board receives

under the order, only in—

(A) obligations of the United States or any agency

of the United States;

(B) general obligations of any State or any political

subdivision of a State;

(C) any interest-bearing account or certificate of deposit

of a bank that is a member of the Federal Reserve System;

or

(D) obligations fully guaranteed as to principal and

interest by the United States.

(2) USE OF INCOME.—Income from any investment under paragraph (1) may be used for any purpose for which the

invested funds may be used.

(l) PROHIBITION ON USE OF FUNDS.— (1) IN GENERAL.—Except as provided in paragraph (2), the

order shall prohibit any funds collected by the Board under

the order from being used in any manner for the purpose

of influencing legislation or government action or policy. (2) EXCEPTIONS.—Paragraph (1) shall not apply to— (A) the development and recommendation to the Secretary of amendments to the order; or (B) 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 information, or producer information

activities under the order.

(3) FALSE OR MISLEADING CLAIMS.—A plan or project conducted under this Act shall not make false or misleading claims

on behalf of sheep or sheep products or against a competing

product.

(m) BOOKS AND RECORDS.—

(1) IN GENERAL.—The order shall require that each person

making payment to a producer, feeder, or handler for sheep
S. 2500—13

or sheep products, each importer and exporter of sheep or

sheep products, and each person marketing sheep products

of the person’s own production to maintain, and make available

for inspection, such books and records as may be required

by the order and file reports at the time, in the manner,

and having the content prescribed by the order.

(2) USE OF INFORMATION.—

(A) IN GENERAL.—Information from the records or

reports shall be made available to the Secretary for the

administration or enforcement of this Act, or any order

or regulation issued under this Act.

(B) OTHER INFORMATION.—The Secretary shall authorize the use under this Act of information regarding persons

paying producers, feeders, importers, handlers, or processors that is accumulated under a law or regulation other

than this Act or a regulation issued under this Act.

(3) CONFIDENTIALITY.—

(A) IN GENERAL.—Except as otherwise provided in this

Act, all information obtained under paragraph (1) or (2)

shall be kept confidential by all officers and employees

of the Department and of the Board.

(B) DISCLOSURE.—Information referred to in subparagraph (A) may be disclosed only if—

(i) the Secretary considers the information relevant;

(ii) the information is revealed in a judicial

proceeding or administrative hearing brought at the

direction or on the request of the Secretary or to which

the Secretary or any officer of the Department is a

party; and (iii) the information relates to this Act.

(C) GENERAL STATEMENTS.—Nothing in this paragraph

prohibits—

(i) the issuance of general statements, based on

the reports, of the number of persons subject to an

order or statistical data collected from the persons,

which statements do not identify the information furnished by any person; or (ii) the publication, by direction of the Secretary,

of the name of any person violating any order and

a statement of the particular provisions of the order

violated by the person.

(D) ADMINISTRATION.—No information obtained under

this Act may be made available to any agency or officer

of the Federal Government for any purpose other than

the implementation of this Act or any investigatory or

enforcement action necessary for the implementation of

this Act.

(E) PENALTY.—Any person who willfully violates this

paragraph, 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, shall be removed from

office.

(n) OTHER TERMS AND CONDITIONS.—The order shall provide

such terms and conditions, not inconsistent with this section, as

are necessary to carry out the order, including provisions for the
S. 2500—14

assessment of a penalty for the late payment of an assessment

due under the order.

SEC. 6. REFERENDA.

(a) INITIAL REFERENDUM.—

(1) IN GENERAL.—Following the issuance of an order under

section 4, the Secretary shall conduct a referendum among

producers, feeders, and importers who, during a representative

period as determined by the Secretary, have been engaged

in the production, feeding, or importation of sheep or sheep

products for the purpose of ascertaining whether the order

shall go into effect.

(2) APPROVAL OF ORDER.—The order shall become 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 2⁄3 of the

production represented by persons voting in the referendum.

(b) ADDITIONAL REFERENDA.—

(1) IN GENERAL.—After the initial referendum, on the

request of a representative group comprising 10 percent or

more of the producers, feeders, and importers who, during

a representative period as determined by the Secretary, have

been engaged in the production, feeding, importation, or

processing of sheep or sheep products, the Secretary shall conduct a referendum of producers, feeders, and importers to determine whether the producers, feeders, and importers favor the

termination or suspension of the order.

(2) SUSPENSION OR TERMINATION.—If the Secretary determines that suspension or termination of the order is favored

by a majority of the producers, feeders, and importers voting

in the referendum or at least 2⁄3 of the production represented

by the persons voting in the referendum, the Secretary shall

suspend or terminate—

(A) collection of assessments under the order not later

than 180 days after the determination; and

(B) the order in an orderly manner as soon as practicable after the determination.

(c) PROCEDURES.—

(1) REIMBURSEMENT.—

(A) IN GENERAL.—Except as provided in subparagraph

(B), the Board shall reimburse the Secretary for any

expenses incurred by the Secretary in connection with the

conduct of any referendum under this section.

(B) FEDERAL EMPLOYEE SALARIES.—The Board shall

not be required to reimburse the Secretary for the salaries

of Federal employees under subparagraph (A) if the Secretary determines that the reimbursement would be overly

burdensome and costly.

(2) DATE.—Each referendum under this section shall be

conducted on a date established by the Secretary, under a

procedure by which producers, feeders, and importers intending

to vote in the referendum shall certify that the producers,

feeders, and importers were engaged in the production, feeding,

or importation of sheep or sheep products during the representative period and, on the same day, shall be provided an opportunity to vote in the referendum.
S. 2500—15

(3) PLACE.—Referenda under this section shall be conducted

at locations determined by the Secretary. Absentee mail ballots

shall be furnished by the Secretary on request made in person,

by mail, or by telephone.

(4) ALLOCATION OF PRODUCTION.—The Secretary shall

determine a method of allocating, by a pro rata percentage

of annual projected or actual assessments from importers, the

volume of production represented by importers in referenda

conducted pursuant to this section.

SEC. 7. PETITION AND REVIEW.

(a) PETITION.—

(1) IN GENERAL.—A person subject to an order issued under

this Act may file with the Secretary a petition—

(A) stating that the order, any provision of the order,

or any obligation imposed in connection with the order

is not established in accordance with law; and

(B) requesting a modification of the order or an exemption from the order.

(2) HEARINGS.—The petitioner shall be given an opportunity for a hearing on the petition, in accordance with regulations issued by the Secretary.

(3) RULING.—After the hearing, the Secretary shall make

a ruling on the petition. The ruling shall be final if the ruling

is in accordance with law.

(b) REVIEW.—

(1) COMMENCEMENT OF ACTION.—The district court of the

United States for any district in which a person who is a

petitioner under subsection (a) resides or carries on business

shall have jurisdiction to review the ruling on the petition

of the person, if a complaint for that purpose is filed not

later than 20 days after the date of the entry of the ruling

by the Secretary under subsection (a)(3). (2) PROCESS.—Service of process in a proceeding may be

conducted on the Secretary by delivering a copy of the complaint

to the Secretary, under such rules or regulations as are considered necessary by the Secretary to facilitate the service of

process.

(3) REMANDS.—If the court determines that the ruling is

not in accordance with law, the court shall remand the matter

to the Secretary with directions— (A) to make such ruling as the court shall determine

to be in accordance with law; or

(B) to take such further action as, in the opinion of

the court, the law requires.

SEC. 8. ENFORCEMENT.

(a) JURISDICTION.—Each district court of the United States

shall have jurisdiction specifically to enforce, and to prevent and

restrain a person from violating, an order or regulation issued

under this Act.

(b) REFERRAL TO ATTORNEY GENERAL.—A civil action authorized

to be brought under this section shall be referred to the Attorney

General for appropriate action, except that the Secretary is not

required to refer to the Attorney General a violation of this Act,

if the Secretary believes that the administration and enforcement

of this Act would be adequately served by providing a suitable
S. 2500—16

written notice or warning to the person who committed the violation

or by an administrative action under section 7.

(c) CIVIL PENALTIES AND ORDERS.—

(1) CIVIL PENALTIES.—A person who willfully violates an

order or regulation issued by the Secretary under this Act

may be assessed by the Secretary—

(A) a civil penalty of not more than $1,000 for each

such violation; and

(B) in the case of a willful failure to pay, collect,

or remit an assessment as required by the order, an additional penalty equal to the amount of the assessment.

(2) SEPARATE OFFENSE.—Each violation shall be a separate

offense.

(3) CEASE-AND-DESIST ORDERS.—In addition to, or in lieu

of, the civil penalty, the Secretary may issue an order requiring

the person to cease and desist from violating the order or

regulation.

(4) NOTICE AND HEARING.—No order assessing a penalty

or cease-and-desist order may be issued by the Secretary under

this subsection unless the Secretary provides notice and an

opportunity for a hearing on the record with respect to the

violation.

(5) FINALITY.—An order assessing a penalty or a ceaseand-desist order issued under this subsection by the Secretary

shall be final and conclusive unless the person against whom

the order is issued files an appeal from the order with the

United States court of appeals, as provided in subsection (d),

not later than 30 days after the person receives notice of

the order.

(d) REVIEW BY COURT OF APPEALS.— (1) IN GENERAL.—A person against whom an order is issued under subsection (c) may obtain review of the order by— (A) filing, not later than 30 days after the date of

the order, a notice of appeal in—

(i) the United States court of appeals for the circuit

in which the person resides or carries on business;

or

(ii) the United States Court of Appeals for the

District of Columbia Circuit; and

(B) simultaneously sending a copy of the notice of

appeal by certified mail to the Secretary.

(2) RECORD.—The Secretary shall file promptly in the court

a certified copy of the record on which the Secretary has determined that the person has committed a violation.

(3) STANDARD OF REVIEW.—A finding of the Secretary under

this section shall be set aside only if the finding is found

to be unsupported by substantial evidence.

(e) FAILURE TO OBEY ORDERS.—A person who fails to obey

a valid cease-and-desist order issued by the Secretary under this

section, after an opportunity for a hearing, shall be subject to

a civil penalty assessed by the Secretary of not more than $500

for each offense. Each day during which the failure continues shall

be considered to be a separate violation of the order.

(f) FAILURE TO PAY PENALTIES.—If a person fails to pay a

valid civil penalty imposed under this section by the Secretary,

the Secretary shall refer the matter to the Attorney General for

recovery of the amount assessed in the district court of the United
S. 2500—17

States for any district in which the person resides or carries on

business. In the action, the validity and appropriateness of the

order imposing the civil penalty shall not be subject to review.

(g) ADDITIONAL REMEDIES.—The remedies provided in this section shall be in addition to, and not exclusive of, other remedies

that may be available.

SEC. 9. INVESTIGATIONS AND POWER TO SUBPOENA.

(a) INVESTIGATIONS.—The Secretary may make such investigations as the Secretary considers necessary—

(1) for the effective administration of this Act; or

(2) to determine whether any person subject to this Act

has engaged, or is about to engage, in any action that constitutes or will constitute a violation of this Act, or of any

order or regulation issued under this Act.

(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—For the purpose

of any investigation under subsection (a), the Secretary may administer oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take evidence, and require the production of

any records that are relevant to the inquiry. The attendance of

witnesses and the production of any such records may be required

from any place in the United States.

(c) AID OF COURTS.—In the case of contumacy by, or refusal

to obey a subpoena issued to, any person, the Secretary may invoke

the aid of any court of the United States within the jurisdiction

of which the investigation or proceeding is carried on, or where

the person resides or carries on business, in order to require the

attendance and testimony of the person or the production of records.

The court may issue an order requiring the person to appear before

the Secretary to produce records or to give testimony regarding

the matter under investigation. (d) CONTEMPT.—Any failure to obey the order of the court

may be punished by the court as a contempt of the court. (e) PROCESS.—Process in any case under this section may be

served in the judicial district in which the person resides or carries

on business or wherever the person may be found.

SEC. 10. ADMINISTRATIVE PROVISIONS.

(a) CONSTRUCTION.—Nothing in this Act preempts or supersedes

any other program relating to sheep promotion, research, or

information organized and operated under the laws of the United

States or any State. (b) AMENDMENTS TO ORDERS.—The provisions of this Act

applicable to an order shall be applicable to amendments to the

order, except that the Secretary is not required to conduct a referendum on a proposed amendment to an order.

SEC. 11. REGULATIONS.

The Secretary may issue such regulations as are necessary

to carry out this Act.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—There are authorized to be appropriated for

each fiscal year such sums as are necessary to carry out this

Act.

(b) ADMINISTRATIVE EXPENSES.—Funds appropriated under subsection (a) shall not be available for payment of the expenses
S. 2500—18

or expenditures of the Board in administering any provision of

any order issued under this Act.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.