`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2500 Enrolled Bill (ENR)]

        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.
    (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.
        (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.
        (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:
            (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 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 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;
        (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
                (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 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 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.--
            (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 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 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.
        (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 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 cease-and-
    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 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 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.`