[Federal Register Volume 60, Number 241 (Friday, December 15, 1995)]
[Rules and Regulations]
[Pages 64297-64311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30491]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1280

[No. LS-95-008]


Sheep Promotion, Research, and Information Program: Procedures 
for the Conduct of Referendum

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule; referendum order.

-----------------------------------------------------------------------

SUMMARY: The Sheep Promotion, Research, and Information Act of 1994 
(Act) authorizes a program of promotion, research, and information to 
be developed through the promulgation of the Sheep and Wool Promotion, 
Research, Education, and Information Order (Order). The U.S. Department 
of Agriculture (Department) recently completed this process and issued 
an Order which will become effective if approved by sheep producers, 
sheep feeders, and importers of sheep and sheep products. Importers who 
only import raw wool are not eligible to participate in the referendum. 
This rule sets forth the procedures for conducting the initial 
referendum and the relevant referendum dates.

DATES: Effective Date: This final rule is effective December 15, 1995.
    Referendum Dates: In-person voting in the referendum will be on 
February 6, 1996, at the county Cooperative Extension Service offices. 
Absentee ballots will be available at those offices from January 16, 
1996, through January 26, 1996. The representative period to establish 
voter eligibility will be the period from January 1, 1994, through 
December 31, 1994.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing 
Programs Branch; Livestock and Seed Division; Agricultural Marketing 
Service (AMS), USDA, Room 2606-S; P.O. Box 96456; Washington, D.C. 
20090-6456, telephone number 202/720-1115.

SUPPLEMENTARY INFORMATION: Prior document in this proceeding: Proposed 
Rule--Sheep Promotion and Research Program: Procedures for Conduct of 
Referendum published August 8, 1995 (60 FR 40313).

Regulatory Impact Analysis

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget (OMB).
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. It is not intended to have a retroactive effect. 
This rule would not preempt any State or local laws, regulations, or 
policies unless they present an irreconcilable conflict with this rule.
    The Act provides that any person subject to the Order may file with 
the Secretary a petition stating that the Order, any provision of the 
Order, or any obligation imposed in connection with the Order is not in 
accordance with the law, and request a modification of the Order or an 
exemption from certain provisions or obligations of the Order. The 
petitioner will have the opportunity for a hearing on the petition. 
Thereafter the Secretary will issue a decision on the petition. The Act 
provides that the district court of the United States in any district 
in which the petitioner resides or carries on business has jurisdiction 
to review a ruling on the petition, if the petitioner files a complaint 
for that purpose not later than 20 days after the date of the entry of 
the Secretary's decision. The petitioner must exhaust his or her 
administrative remedies before he or she can initiate any such 
proceeding in the district court.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA)(5 U.S.C. 601 et seq.), the Administrator of AMS has 
considered the economic impact of this final action on small entities.
    According to the January 27, 1995, issue of ``Sheep and Goats,'' 
published 

[[Page 64298]]
by the Department's National Agricultural Statistics Service, there are 
approximately 87,350 operations with sheep in the United States that 
may be eligible to vote in the referendum. To obtain the estimated 
number of importers of sheep and sheep products who would be subject to 
an assessment and who may be eligible to vote in the referendum, the 
Department consulted with major importer organizations whose members 
import sheep and sheep products into the United States. Based on its 
consultations with these organizations, the Department estimates that 
the number of importers of sheep and sheep products in the United 
States who would be subject to these rules and regulations is 
approximately 9,000. Nearly all of the sheep operations in the United 
States and nearly all of the importers of sheep and sheep products 
would be classified as small entities by the Small Business 
Administration (13 CFR 121.601).
    This action has also been reviewed under RFA (5 U.S.C. 601 et 
seq.). This final rule would establish procedures for the conduct of a 
referendum to determine whether an Order promulgated under the Act 
becomes operational. Such procedures would permit all eligible sheep 
producers, sheep feeders, and importers of sheep and sheep products, 
excluding importers who import only raw wool, who have been engaged in 
sheep production, sheep feeding, or the importation of sheep and sheep 
products to vote in the referendum. Participation in the referendum is 
voluntary. Votes may be cast either by mail ballots or in person at 
polling places. Casting votes by mail or in person would not impose a 
significant economic burden on participants. Accordingly, the 
Administrator of AMS has determined that this rule will not have a 
significant economic impact on a substantial number of small business 
entities.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
Chapter 35), OMB has approved the information collection requirements 
contained in this final rule. The control number assigned to the 
information collection requirements in Part 1280 by OMB pursuant to the 
Paperwork Reduction Act is OMB 0581-0093. The information collection 
required by this action and necessary to conduct a referendum includes 
the following:
    (a) For in-person voting:
    (1) Each sheep producer, sheep feeder, or importer of sheep and 
sheep products, except an importer who imports only raw wool, who votes 
in person in the referendum must sign the In-Person Voter Registration 
List (Form LS-61-3) and complete a Ballot (Form LS-61) at the county 
Cooperative Extension Service (CES) office of the Department. The voter 
must complete the ballot and insert it into the SHEEP BALLOT envelope 
(Form LS-61-1).
    (2) Each producer, feeder, and importer must complete the 
Registration and Certification Form that is printed on the SHEEP 
REFERENDUM envelope (Form LS-61-2) and insert the SHEEP BALLOT envelope 
with the enclosed ballot in the SHEEP REFERENDUM envelope (Form LS-61-
2). The estimated average time burden for completing the forms for in-
person voting is 6 minutes per voter.
    (b) For absentee voting: Each sheep producer, sheep feeder, and 
importer of sheep and sheep products, except an importer who imports 
only raw wool, who wants to cast an absentee vote instead of an in-
person vote, must complete, in a legible manner, a combined 
registration/certification and absentee ballot form (Form LS-62). The 
voting producer, feeder, or importer must complete the registration/
certification and absentee ballot form (Form LS-62), remove the ballot 
portion of the form, insert the ballot in a SHEEP BALLOT envelope (Form 
LS-61-1)(same as for in-person voting) and then insert the sealed SHEEP 
BALLOT envelope and the registration/certification form in the SHEEP 
REFERENDUM envelope (Form LS-62-1). The estimated average time burden 
for completing this procedure is 6 minutes per voter.
    (c) The final rule requires each sheep producer, sheep feeder, or 
importer of sheep and sheep products who votes in person to record his 
or her name on the In-Person Voter Registration List (Form LS-61-3) 
and, if applicable, the name of the entity he or she represents. The 
estimated average time burden for registering to vote in person is 0.5 
minutes per voter. For absentee voters, the county CES agent shall 
enter on the Absentee Voter Request List (Form LS-62-2) the date the 
ballot was requested, the voter's name and address, the name of the 
represented entity, if any, and the date the ballot was mailed from the 
county CES office. This information may be used to validate ballots and 
to challenge potentially-ineligible voters. Each county CES agent will 
fill out one or more of the Absentee Voter Request Lists (Form LS-62-2) 
per referendum. Because only county CES agents will complete the 
Absentee Voter Request List, the estimated average reporting burden 
would not apply to the producer, feeder, or importer voting in the 
referendum.
    Based on previous referendums conducted under the National Wool Act 
of 1954, the estimated number of producers, feeders, and importers who 
will vote in the referendum is 25,000, with each voting once.

Background

    The Act (7 U.S.C. 7101-7111) provides for the establishment of a 
coordinated program of promotion, research, education, consumer 
information, industry information, and producer information designed to 
strengthen the sheep industry's position in the marketplace, maintain 
and expand existing markets, and develop new markets and uses for sheep 
and sheep products.
    The program will be funded by a mandatory assessment on domestic 
producers, feeders, and exporters of live sheep and greasy wool of 1-
cent-per-pound on live sheep sold and 2-cents- per-pound on greasy wool 
sold. Importers will be assessed 1-cent-per-pound on live sheep, the 
equivalent of 1-cent-per-pound of live sheep for sheep products as well 
as 2-cents-per-pound of degreased wool or the equivalent of degreased 
wool for wool and wool products. Imported raw wool would be exempt from 
assessments. Each person who processes or causes to be processed sheep 
and sheep products of that person's own production, and who markets the 
processed products, would be assessed the equivalent of 1-cent-per-
pound of live sheep sold or 2-cents-per-pound of greasy wool sold. All 
assessments may be adjusted in accordance with the applicable 
provisions of the Act.
    The Act requires that a referendum be conducted after the issuance 
of the final Order to determine whether the Order will go into effect. 
The referendum would be conducted among persons who were sheep 
producers, sheep feeders, or importers of sheep and sheep products, 
during a representative period specified by the Secretary. Importers 
who import only raw wool are not eligible to participate in the 
referendum because raw wool is exempt from assessments under the Act. 
The Order would become operational only if it is approved by a majority 
of the producers, feeders, and importers voting in the referendum or by 
producers, feeders, and importers voting in the referendum who account 
for at least two-thirds of the production represented by persons voting 
in the referendum. If the Order is not approved by persons voting in 
the referendum, the program will not become operational. An Order was 

[[Page 64299]]
published in the Federal Register on December 5, 1995 (60 FR 62298).
    To vote in the referendum, eligible persons will complete the 
registration and certification form, mark their ballots and record 
their volume of production on the ballot if the volume of production is 
voted. The volume of production will be recorded as the number of live 
domestic sheep or live sheep equivalents that a person owned or 
imported during the representative period. The domestic volume of 
production includes the largest number of head of domestic sheep owned 
for any single consecutive 30-day period during the representative 
period. The number of live sheep equivalents for imported sheep 
products will be calculated based on the amount of such products 
imported during the representative period. Producers, feeders, and 
importers who also cast ballots based on volume of production must 
determine their volume of production before they register and vote in 
the referendum.
    The Act specifies that 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 a referendum conducted pursuant to this subpart. Because 
an Order implementing the provisions of the Act has not been in effect, 
imported sheep and sheep products have not been subject to the 
assessments described in the proposed Order published June 2, 1995 (60 
FR 28747). Consequently, there are no projected or actual annual 
assessments available to use in calculating the volume of production 
for importers during the representative period. In the absence of that 
information on annual assessments, the Department has decided that 
importers of sheep and sheep products will determine their volume of 
production by converting the volume of those imported products that 
would have been subject to assessment if an Order had been in effect 
during the representative period. Imported sheep, sheep meat, and wool 
and wool products that would have been subject to assessment during the 
representative period are identified by the Harmonized Tariff Schedule 
(HTS) classification numbers listed in Table 1--HTS Classification 
Numbers and Conversion Factors for Imported Sheep and Sheep Products--
contained herein, which includes sheep, sheep meat, and wool and wool 
products. Because the Act exempts imported raw wool from assessments, 
HTS numbers and corresponding conversion factors are not included for 
imported raw wool. For the purpose of the initial referendum, importers 
will use the 1994 HTS classification numbers and conversion factors in 
Table 1. These HTS numbers for imported sheep and sheep products are 
published in the Harmonized Tariff Schedule of the United States. To 
enable importers to convert sheep meat and wool and wool products 
identified by the HTS numbers for 1994 listed in Table 1, the 
Department will use the conversion factors listed in the same table 
that correspond to each listed HTS number. The Department's Economic 
Research Service (ERS) has developed these conversion factors and 
maintains them in an import library. For sheep meat, these conversion 
factors take into account removal of bone, weight loss in processing or 
cooking, and nonsheep components of the sheep products. The conversion 
factors for wool products are used to determine the raw fiber content 
of imported wool products, and take into account fiber loss during 
processing, fabric trim loss, and cutting loss for wool and other 
nonsheep components of wool and wool products.
    Factors in determining the number of live sheep equivalents include 
(1) the weight of the imported sheep meat, the weight of imported wool 
and wool products and the corresponding conversion factors, (2) the 
average carcass weight of 57 pounds for domestic mature sheep as 
published by the Department's National Agricultural Statistics Service 
in the March 1995 edition of the 1994 Livestock Slaughter Summary, (3) 
a dressing percentage of 50 percent, and (4) an equivalent live weight 
of 114 pounds for domestic mature sheep (57 lbs. <divide> 50% = 114 
lbs.). The dressing percentage of 50 percent is widely recognized as 
the average dressing percentage for sheep in the United States. The 
formula for calculating importer volume of production for imported wool 
and wool products will use the listed conversion factors and a 
degreased wool yield of 52.8 percent, as published by ERS in the 1992 
Weight, Measures, and Conversion Factors for Agricultural Commodities 
and Their Products, to convert degreased wool to a greasy wool basis. 
In the absence of official data for carcass weights, live weights, 
dressing percentages and wool yield percentages of sheep from importing 
countries, the Department has determined that the initially proposed 
carcass weight, the dressing percentage, the live weight, and the 
percentage of degreased wool yield, on the average, would be most 
representative of carcass weights, dressing percentages, live weights 
and degreased wool yield percentages of sheep from which imported sheep 
products are derived.
    Imported live sheep require no conversion and each head of imported 
live sheep will be counted in determining the total volume of 
production for importers.
    The calculation procedures for both imported sheep meat and 
imported wool and wool products are as follows:
Imported Sheep Meat
    To calculate the live sheep equivalents of imported sheep meat, an 
importer would first multiply the total weight of imported sheep meat 
for each applicable HTS number by the corresponding conversion factor 
to determine the total carcass weight equivalent. The importer would 
then divide the total carcass weight equivalent by the average carcass 
weight of 57 pounds to determine the equivalent number of live sheep. 
Because the carcass weight of 57 pounds represents the equivalent live 
weight of 114 pounds (57 lbs. <divide> 50% = 114 lbs.), it is not 
necessary to convert the carcass weight to a live weight equivalent. 
The Department has determined that the number of live sheep equivalents 
should be rounded to the nearest whole number. If the decimal is 0.5 or 
greater, the number of head of sheep would be rounded upward (i.e., 7.5 
= 8.0). If the decimal is less than 0.5, the number of head of sheep 
would be rounded downward (i.e., 7.49 = 7.0). The following examples 
illustrate two typical calculations:

Examples I and II

1. Sheep Meat (Bone-in)
    HTS 0204100000, Carcasses and half carcasses of lamb, fresh or 
chilled
Assume: Company X imports 1,000 pounds of bone-in sheep meat
    Conversion factor: 1.00
    Average carcass weight: 57 pounds
Calculation:

  Pounds of sheep meat.....................  1,000 lbs.                 
  Conversion factor........................   x  1.00                   
                                            ----------------------------
  Pounds of carcass weight equivalents.....  1,000 lbs.                 
  Average carcass weight...................  <divide> 57 lbs.           
                                            ----------------------------
  Live sheep equivalents...................  = 17.5 or 18               
                                                                        

2. Sheep Meat (Boneless)
    HTS 0204232000, Other meat of sheep, fresh or chilled: Boneless: 
lamb
Assume: Company X imports 1,000 pounds of boneless sheep meat
    Conversion factor: 1.52
    Average carcass weight: 57 pounds
Calculation:

  Pounds of sheep meat.....................  1,000 lbs.                 
  Conversion factor........................   x  1.52                   
                                            ----------------------------

[[Page 64300]]
                                                                        
  Pounds of carcass weight equivalents.....  1,520 lbs.                 
  Average carcass weight...................  <divide>57                 
                                            ----------------------------
  Live sheep equivalents...................  = 26.7 or 27               
                                                                        



Imported Wool and Wool Products
    Because assessments of all imported products are based on weight 
and the referendum vote will include a volume consideration which, for 
domestic voters, will be based on live sheep, the Department has 
determined that the 114 pounds of mature sheep weight will be the live 
sheep equivalent for both imported sheep meat and imported wool. For 
purposes of the referendum, the domestic vote is based entirely on the 
number of live sheep with no regard for the wool. However, to provide 
an equitable voting basis for importers of wool and wool products, an 
amount of greasy wool equal in weight to a live mature sheep--114 
pounds--was established as a live sheep equivalent for importers of 
wool and wool products.
    To calculate the number of live sheep equivalents of imported wool 
products, the importer would first multiply the total weight of 
imported wool products for each applicable HTS number by the 
corresponding conversion factor to determine the total weight of 
degreased wool. The importer would then divide the total weight of the 
degreased wool equivalent by 52.8 percent, to convert the degreased 
wool to a greasy wool basis. Finally, the importer would divide the 
total pounds of greasy wool by the calculated average live weight of 
114 pounds to determine the number of live sheep equivalents. The 
Department has determined that the number of live sheep equivalents 
should be rounded to the nearest whole number. If the decimal is 0.5 or 
greater, the number of head of sheep would be rounded upward (i.e., 
7.5=8.0). If the decimal is less than 0.5, the number of head of sheep 
would be rounded downward (i.e., 7.49=7.0). The following example 
illustrates a typical calculation:

Example III

    HTS 6201110010, Mens or boys overcoats of wool or fine animal 
hair
Assume: Company X imports 1,000 overcoats weighing 2,000 pounds into 
the United States.
    Conversion factor: 0.9774
Calculation:

  Weight of imported product...............  2,000 lbs.                 
  Conversion factor........................   x 0.9774                  
                                            ----------------------------
  Pounds of greasy wool....................  1,954.8 lbs.               
  Degreased wool yield.....................  <divide>52.8%              
                                            ----------------------------
  Pounds of degreased wool.................  3,702.3 lbs.               
  Equivalent live weight...................  <divide>114 lbs.           
                                            ----------------------------
  Number of live sheep equivalents.........  =32.5 or 33                
                                                                        

    The HTS numbers, the conversion factors, and other information used 
to calculate number of live sheep equivalents apply only to the initial 
referendum described herein.
    The 1994 HTS classification numbers and conversion factors for 
imported sheep and sheep products and wool and wool products that 
importers will use in determining their volume of production are as 
follows:

    Table I.--HTS and Conversion Factors for Imported Sheep and Sheep   
                                Products                                
------------------------------------------------------------------------
                             HTS                                   CF   
------------------------------------------------------------------------
Live Sheep:                                                             
  0104100000.................................................     1.00  
Sheep Meat:                                                             
  0204100000.................................................     1.00  
  0204210000.................................................     1.00  
  0204222000.................................................     1.00  
  0204224000.................................................     1.00  
  0204232000.................................................     1.52  
  0204234000.................................................     1.52  
  0204300000.................................................     1.00  
  0204410000.................................................     1.00  
  0204422000.................................................     1.00  
  0204424000.................................................     1.00  
  0204432000.................................................     1.52  
  0204434000.................................................     1.52  
                                                                        
------------------------------------------------------------------------
                         Wool and Wool Products                         
                                                                        
------------------------------------------------------------------------
  5007106030.................................................     0.5315
  5007906030.................................................     0.5315
  5103100000.................................................     1.0417
  5103200000.................................................     1.0417
  5105100000.................................................     1.0309
  5105210000.................................................     1.1111
  5105290000.................................................     1.1111
  5106100010.................................................     1.0417
  5106100090.................................................     1.0417
  5106200000.................................................     0.5208
  5107100000.................................................     1.0417
  5107200000.................................................     0.5208
  5109102000.................................................     1.0417
  5109902000.................................................     1.0417
  5111112000.................................................     1.0629
  5111113000.................................................     1.0629
  5111117030.................................................     1.0629
  5111117060.................................................     1.0629
  5111191000.................................................     1.0629
  5111192000.................................................     1.0629
  5111196020.................................................     0.5315
  5111196040.................................................     0.5315
  5111196060.................................................     1.0629
  5111196080.................................................     1.0629
  5111200500.................................................     0.5315
  5111201000.................................................     0.5315
  5111209000.................................................     0.5315
  5111300500.................................................     0.5315
  5111301000.................................................     0.5315
  5111309000.................................................     0.5315
  5111903000.................................................     0.5315
  5111904000.................................................     0.7972
  5111905000.................................................     0.5315
  5111906000.................................................     0.7972
  5111909000.................................................     0.7972
  5112110030.................................................     0.5315
  5112110060.................................................     0.9566
  5112111000.................................................     0.9566
  5112112030.................................................     1.0629
  5112112060.................................................     0.9566
  5112192000.................................................     1.0629
  5112199010.................................................     1.0629
  5112199020.................................................     1.0629
  5112199030.................................................     1.0629
  5112199040.................................................     1.0629
  5112199050.................................................     1.0629
  5112199060.................................................     1.0629
  5112201000.................................................     0.5315
  5112202000.................................................     0.5315
  5112203000.................................................     0.5315
  5112301000.................................................     0.5315
  5112302000.................................................     0.5315
  5112303000.................................................     0.5315
  5112903000.................................................     0.6378
  5112904000.................................................     0.7972
  5112905000.................................................     0.7972
  5112909010.................................................     0.5315
  5112909090.................................................     0.5315
  5212111010.................................................     0.4783
  5212111020.................................................     0.4783
  5212116010.................................................     0.2126
  5212121010.................................................     0.4783
  5212121020.................................................     0.4783
  5212126010.................................................     0.2126
  5212131010.................................................     0.4783
  5212131020.................................................     0.4783
  5212136010.................................................     0.2126
  5212141010.................................................     0.4783
  5212141020.................................................     0.4783
  5212146010.................................................     0.2126
  5212151010.................................................     0.4783
  5212151020.................................................     0.4783
  5212156010.................................................     0.2126
  5212211010.................................................     0.4783
  5212211020.................................................     0.4783
  5212216010.................................................     0.2126
  5212221010.................................................     0.4783
  5212221020.................................................     0.4783
  5212226010.................................................     0.2126
  5212231010.................................................     0.4783
  5212231020.................................................     0.4783
  5212236010.................................................     0.2126
  5212241010.................................................     0.4783
  5212241020.................................................     0.4783
  5212246010.................................................     0.2126
  5212251010.................................................     0.4783
  5212251020.................................................     0.4783
  5212256010.................................................     0.2126
  5309212000.................................................     0.5315
  5309292000.................................................     0.5315
  5311002000.................................................     0.2126
  5407910510.................................................     0.4783
  5407910520.................................................     0.4783
  5407911000.................................................     0.2126
  5407920510.................................................     0.4783
  5407920520.................................................     0.4783
  5407921010.................................................     0.2126
  5407921020.................................................     0.2126
  5407930510.................................................     0.4783
  5407930520.................................................     0.4783
  5407931000.................................................     0.2126
  5407940510.................................................     0.4783
  5407940520.................................................     0.4783
  5407941000.................................................     0.2126

[[Page 64301]]
                                                                        
  5408310510.................................................     0.4783
  5408310520.................................................     0.4783
  5408311000.................................................     0.2126
  5408320510.................................................     0.4783
  5408320520.................................................     0.4783
  5408321000.................................................     0.2126
  5408330510.................................................     0.4783
  5408330520.................................................     0.4783
  5408331000.................................................     0.2126
  5408340510.................................................     0.4783
  5408340520.................................................     0.4783
  5408341000.................................................     0.2126
  5509520000.................................................     0.3646
  5509610000.................................................     0.1563
  5509910000.................................................     0.3646
  5510200000.................................................     0.3646
  5515130510.................................................     0.4783
  5515130520.................................................     0.4783
  5515131010.................................................     0.2126
  5515131020.................................................     0.2126
  5515220510.................................................     0.4783
  5515220520.................................................     0.4783
  5515221000.................................................     0.2126
  5515920510.................................................     0.4783
  5515920520.................................................     0.4783
  5515921010.................................................     0.2126
  5515921020.................................................     0.2126
  5516310510.................................................     0.4783
  5516310520.................................................     0.4783
  5516311000.................................................     0.2126
  5516320510.................................................     0.4783
  5516320520.................................................     0.4783
  5516321000.................................................     0.2126
  5516330510.................................................     0.4783
  5516330520.................................................     0.4783
  5516331000.................................................     0.2126
  5516340510.................................................     0.4783
  5516340520.................................................     0.4783
  5516341000.................................................     0.2126
  5601290020.................................................     0.9035
  5602109010.................................................     1.0629
  5602109090.................................................     0.5315
  5602210000.................................................     1.0629
  5602903000.................................................     0.2657
  5603001010.................................................     1.0629
  5701101300.................................................     0.9479
  5701101600.................................................     0.9479
  5702101000.................................................     1.0156
  5702109010.................................................     1.0156
  5702311000.................................................     0.7708
  5702312000.................................................     0.6563
  5702411000.................................................     0.6979
  5702412000.................................................     0.5729
  5702512000.................................................     0.9531
  5702514000.................................................     0.9010
  5702912000.................................................     0.9531
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[[Page 64302]]
                                                                        
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[[Page 64303]]
                                                                        
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------------------------------------------------------------------------



    The Act also requires the Secretary to hold additional referendums 
if so requested by a representative group comprised of 10 percent or 
more of the producers, feeders, and importers who, during a 
representative period as determined by the Secretary, were engaged in 
the production, feeding, importation, or processing of sheep or sheep 
products. In any such referendum, if the continuation of the Order is 
not approved by a majority of producers, feeders, and importers voting 
in the referendum, or by producers, feeders, and importers voting in 
the referendum who account for at least two-thirds of the production 
represented by the persons voting in the referendum, the Secretary will 
suspend or terminate the Order. While the proposed rule indicated that 
the rules would also apply to any additional referendum conducted 
pursuant to the Act, it has been determined that these rules would 
apply only to the initial referendum and that rules for additional 
referendums would be published as necessary. This conforms to recent 
changes to other research and promotion programs.
    The Act specifies that the initial referendum be conducted on a 
date and location established by the Secretary, under a procedure by 
which sheep producers, sheep feeders, and importers of sheep and sheep 
products intending to vote in the referendum shall certify that they 
were engaged in sheep production, sheep feeding, or importation of 
sheep and sheep products during the representative period and, on the 
same day, would vote in the referendum. In addition, the Act provides 
that the Secretary must provide absentee ballots on request made either 
in person or by mail. The initial referendum will be conducted at 
county CES offices. The CES of the Department will coordinate with 
State and county CES offices concerning their roles in conducting the 
initial referendum.
    The final rule sets forth procedures to be followed in conducting 
the referendum under the Act, including definitions, supervision of the 
referendum, registration, voting procedures, reporting referendum 
results, and disposition of the ballots and records. The Farm Service 
Agency (FSA) of the Department will assist in the conduct of the 
referendum by (1) counting ballots, (2) determining the eligibility of 
challenged voters, and (3) reporting referendum results.
    On August 8, 1995, AMS published in the Federal Register (60 FR 
40313) a proposed rule that set forth procedures to be followed in 
conducting the referendum under the Act. The proposed rule included 
provisions concerning definitions, supervision of the referendum, 
registration, voting procedures, reporting referendum results, and 
disposition of the ballots and records. It also proposed that the 
initial referendum be conducted at the county CES offices and that FSA, 
formerly the Agricultural Stabilization and Conservation Service of the 
Department, assist in the conduct of the referendum by (1) counting 
ballots, (2) determining the eligibility of challenged voters, and (3) 
reporting referendum results.
    The proposed rule was published (60 FR 40313, August 8, 1995) with 
a request for comments to be submitted by September 7, 1995. The 
Department received 26 written comments concerning the proposed 
referendum procedures from individual sheep producers and sheep 
feeders, as well as producer, feeder, and importer organizations and 
universities. Twenty-three written comments were filed on time and 
three comments were filed after the comment period closed. The late 
comments generally expressed the same views as the timely comments 
which are responded to herein. The commenters generally supported the 
proposed rule with certain qualifications.
    The substantive changes suggested by commenters are discussed 
below, together with a description of the 

[[Page 64304]]
substantive changes made by the Department upon review of the proposed 
procedures for the conduct of the referendum. Also, the Department has 
made other minor changes of a nonsubstantive nature for purposes of 
clarity and accuracy. For the reader's convenience, the discussion is 
organized by the topic headings of the proposed rule.

Definitions

Section 1280.621  Raw Wool

    Twenty commenters suggested that the definition of ``raw wool'' 
should include wooltop, noils of wool, and wool waste. The Department 
finds that wooltop, noils of wool, and wool waste result from the 
processing of raw wool as defined in the Act and that to expand the 
definition would not be consistent with the intent of the Act. 
Accordingly, this suggestion is not adopted in the final rule.

Section 1280.624  Representative Period

    Twenty-one commenters suggested that the representative period 
should be the 1995 calendar year. The Department has determined that 
the representative period should be the 12 consecutive months of 
calendar year 1994 to ensure that importers have ample opportunity to 
calculate their ``volume of production'' prior to casting a ballot. 
This is particularly true for those persons voting absentee. 
Accordingly, this suggestion is not adopted.

Section 1280.631  Volume of Production

    Four commenters suggested that the importer's volume of production 
should be based on imports for a single consecutive 30-day period 
within the 12-month representative period, because domestic production 
is based on a 30-day period. The commenters were concerned that basing 
importer's volume of production on imports for an entire year would 
provide importers with an advantage over domestic producers. The 
Department finds that basing importer's volume of production on import 
volume for a calendar year is consistent with Sec. 6(c)(4) of the Act. 
Accordingly, this suggestion is not adopted.
    One commenter suggested that lambs younger than 6 months of age 
should be counted toward a producer's or feeder's volume of production 
total because all imported sheep products are used to calculate 
importers' live animal equivalents for the 12-month representative 
period. The Department determined that this suggestion has merit 
because all sheep and lambs in the inventory are subject to sale during 
a calendar year and many are marketed at less than 6 months of age. 
Accordingly, this suggestion is adopted and we have amended 
Sec. 1280.631, Volume of Production, to reflect this change.
    One commenter questioned whether domestic producers would be 
required to use a conversion factor to determine domestic volume of 
production. The Department has determined that domestic volume of 
production would be based on the number of live sheep owned 
continuously during a single period of at least 30 days during calendar 
year 1994, and located in the United States. Accordingly, no conversion 
factors are necessary for domestic producers or feeders. Two commenters 
suggested that the Department review the definition of volume of 
production and revise it to include an actual head count to establish 
volume of production. The commenter believed this would more accurately 
reflect the annual flock size of each producer. The Department reviewed 
this definition and determined that the basis for establishing volume 
of production is consistent with the intent of the Act. Accordingly, 
this suggestion is not adopted.

Referendum

Section 1280.650  General

    One commenter asked whether two-thirds of the production 
represented by those persons voting in the referendum, or whether 51 
percent of the simple majority vote could approve or defeat the Order. 
The Act provides that the final Order will become effective if it is 
approved by either a simple majority of the producers, feeders, and 
importers voting in the referendum or by those voting who account for 
at least two-thirds of the production represented by persons voting in 
the referendum.
    One commenter suggested that the simple majority vote and the 
eligibility requirements that allow any sheep owner to participate in 
the referendum could mean that a disproportionately high number of 
hobby sheep owners will participate in the referendum and might lead to 
the adoption of an Order commercial producers, feeders, and importers 
are not in favor of it. The Act provides that each person who markets 
sheep and sheep products is subject to the assessment provisions of the 
Act. Therefore, all persons who are required to pay an assessment would 
be entitled to vote in the referendum regardless of the number of sheep 
they owned. Accordingly, this suggestion is not adopted.
    One commenter suggested that the Order should not become operative 
unless the Secretary finds that at least 40 percent of those eligible 
to vote have participated in the referendum and that: (1) 65 percent of 
those voting cast votes in favor of implementation of the Order, and 
those so voting own the majority of the total quantity of sheep and 
sheep products in the preceding year owned by all who voted in the 
referendum, and (2) a majority of those who voted in favor of 
implementation of the Order, and those so voting owned 65 percent or 
more of the total quantity of sheep and sheep products in the preceding 
year owned by all who voted in the referendum. The Act provides that 
all persons who were engaged in the production, feeding, or importation 
of sheep or sheep products will be eligible to vote and that each 
person may cast a vote. Additionally, the Act provides that for the 
Order to become effective, it has to be approved by either a simple 
majority of the producers, feeders, and importers voting in the 
referendum or by those voting who account for at least two-thirds of 
the production represented by those persons voting in the referendum. 
Accordingly, this suggestion is not adopted.

Section 1280.652  Eligibility

    Twenty-four commenters suggested either that no person under the 
age of 18 should be allowed to vote or that there should be some age 
limitation on eligibility to vote in the referendum. The Department 
finds that any person who is subject to the assessment should be 
entitled to vote. Accordingly, this suggestion is not adopted.
    Nineteen commenters asked if producers who also qualify as feeders 
could vote once as a producer and once as a feeder. Section 1280.652 of 
the rule specifically states that each producer, feeder, and importer 
entity shall be entitled to cast only one ballot in the referendum. The 
intent is that there is only one vote per individual or legal entity. 
Thus, an individual who is both a producer and a feeder would have only 
one vote unless the individual represents more than one legal entity.
    One commenter suggested that a person who collects a wool incentive 
check should be the only person eligible to vote. The Act specifically 
designates and establishes the requirements of those persons who are 
eligible to vote in the referendum. Receiving a wool incentive check 
under the National Wool Act of 1954 is not a requirement of eligibility 
to vote in the referendum. The Department believes that each person who 
is subject to the assessment should be entitled to cast a vote. 

[[Page 64305]]
Accordingly, this suggestion is not adopted.
    One commenter asked why a person who owned only one sheep for any 
single consecutive 30-day period in 1994 should have the same voting 
privileges as a producer who makes his or her living in the sheep 
business. If the Order is approved in referendum, all sales of domestic 
sheep and greasy wool will be subject to the assessment under the 
Order. Thus, the Department finds that any person subject to the 
assessment should be entitled to vote.
    One commenter questioned whether the American producers want 
importers of sheep and sheep products voting in the referendum. The Act 
specifies that producers, feeders, and importers, except importers of 
raw wool, who were engaged in the production, feeding, or importation 
of sheep and sheep products during the representative period will be 
eligible to vote.
    Two commenters suggested that all votes should be based on the 
actual volume of production (i.e., one sheep equals one vote). The Act 
clearly provides for approval of the Order based on a simple majority 
vote of participants or a two-thirds majority of the production 
represented by those voting in the referendum. Accordingly, this 
suggestion is not adopted.
    One commenter suggested that voter eligibility needed to be 
clarified, but did not suggest any particular language. The Department 
has determined that any person who was a sheep producer, sheep feeder, 
or importer of sheep and sheep products during the representative 
period is eligible to vote and shall be entitled to cast one ballot in 
the referendum.

Section 1280.655  Registration Form and Ballot.

    The Department, after further review of this section, determined 
that the last sentence in this section beginning with ``The ballot * * 
*'' and ending with ``* * * volume of production,'' should be deleted 
because it duplicates the fourth sentence in this section and thus is 
not necessary. Accordingly, the last sentence is deleted from this 
final rule.
    Additionally, the Department is clarifying this section to make it 
clear that producers, feeders, and importers will enter their volume of 
production on the ballot, only if they intend to also cast their ballot 
based on their volume of production. Accordingly, we have amended 
Sec. 1280.655 to reflect this clarification.

Section 1280.656  Registration and Voting.

    One commenter suggested that a signature should not be required to 
request an absentee ballot. The rule does not require a signature, but 
it is the Department's intent that the request for an absentee ballot 
be made only by persons who are eligible to vote. It is the 
Department's expectation that nearly all written requests will be 
signed. No change in the final rule is required to accommodate this 
suggestion. The same commenter recommended that requests for an 
absentee ballot via electronic mail (e-mail) system be accepted. Since 
e-mail is available at many locations, using this method of 
communication would likely facilitate requests for absentee ballots for 
e-mail users in those offices that can receive e-mail. Any requests for 
absentee ballots by e-mail would be subject to the same conditions that 
apply to absentee ballots requested by mail or in person. Accordingly, 
this suggestion is adopted.

Additional Comments

    One commenter suggested that the Department use the 63 pound 
average carcass weight for lambs and yearlings rather than the 57 pound 
average carcass weight for mature sheep to convert imported sheep meat 
to a live animal equivalent. The Department finds that the average 
carcass weight for imported lambs is widely recognized as being less 
than the average carcass weight of domestically slaughtered lambs and 
yearlings. Therefore, in the absence of definitive imported carcass 
weights and dressing percents, the Department believes that the 57 
pound mature sheep weight as officially published in 1994 Livestock 
Slaughter Summary in March of 1995 more nearly reflects the average 
carcass weight of imported lamb and should be used for the purpose of 
calculating import volume of production for this initial referendum. 
Accordingly, this suggestion is not adopted.
    Twenty commenters asked which base number the Department would use 
if a request or petition were made by a representative group comprised 
of 10 percent or more of the producers, feeders, and importers to 
conduct a subsequent referendum. The Department would use the most 
recent officially published Government data available at the time the 
request is made.
    One commenter suggested that the conversion factors for wool 
products that account for fiber loss during production, fabric trim 
loss, and cutting loss be clarified to account only for the loss that 
is not recoverable and cannot be recycled back through the processing 
system at some point in the future. After discussions with the 
Department's Economic Research Service (ERS), the Department believes 
that these suggestions should be considered in any future revisions of 
the conversion factors that ERS may publish as an import library and 
maintained and updated. The conversion factors that account for fiber 
lost during processing are currently established by ERS based on 
consultation with major wool manufacturers. The Department does not 
intend to propose any changes to the most recent published conversion 
factors for the purpose of this initial referendum. Accordingly, this 
suggestion is not adopted.
    Three commenters suggested that the proposed method of converting 
the weight of wool represented by wool product imports is inherently 
incorrect in that it (1) uses conversion factors developed for sheep 
and sheep products, (2) assumes that they translate equally to wool and 
wool products, and (3) will significantly understate the contribution 
of wool product imports. The commenters further suggested that the 
greasy wool equivalent weight of wool products should be determined by 
fleece weight for both the U.S. producers and importers rather than the 
live sheep weight for importers and the fleece weight for domestic 
producers. Additionally, the commenters suggested that the common 
denominator for determining live sheep equivalents for wool and wool 
products should be the average weight of greasy wool fleece. Finally, 
the commenters suggested that the Department use 7.7 pounds of greasy 
wool per head as published by the Department's National Agricultural 
Statistics Service in the March 29, 1995, issue of ``Wool and Mohair'' 
to calculate the number of live animal equivalents rather than the 114 
pound of live weight as proposed by the Department. The Department 
reviewed these comments carefully and determined that since domestic 
volume of production is based on the number of live animals and not on 
wool production that a live weight which more nearly reflects the live 
weight of imported sheep would be used to calculate the number of live 
sheep equivalents for both imported sheep meat and wool products. 
Accordingly, this suggestion is not adopted.
    Two commenters suggested that the Department review the conversion 
factors to ensure that conversion factors are consistent. ERS maintains 
these conversion factors as an import library, reviews these factors 
periodically, and 

[[Page 64306]]
makes changes whenever new or additional information is available. At 
this time the Department does not anticipate changes in the conversion 
factors for the purposes of the vote. Nevertheless, we welcome all 
information regarding conversion factors with the goal of adding to our 
knowledge of fiber contents for all wool and wool products.
    Three commenters suggested that the Department initiate a fact 
finding process to identify importers eligible to vote in the 
referendum to ensure that all importers identified are adequately 
notified of the referendum. Additionally, one commenter suggested that 
voting instructions and absentee ballots be mailed to all importers. 
The Department believes that producers, feeders, and importers will 
have ample opportunity to learn of the referendum through industry 
organizations, newspapers, industry publications, Federal Register, and 
other news service resources. The Department will make information 
concerning the referendum available to a variety of news outlets, 
including outlets recommended by importers. An absentee voting period 
will be announced when the in person voting date is announced. 
Producers, feeders, and importers will request an absentee ballot from 
the county CES office and mail or personally deliver the absentee 
ballot to the county CES office where the absentee ballot was 
requested. Accordingly, we have not adopted these suggestions as 
proposed.
    One commenter requested that the Department permanently establish, 
through regulatory promulgation, HTS numbers subject to assessment as 
part of this proposed rule. The Department published in the October 3, 
1995, Federal Register (60 FR 51737) for public comment implementing 
rules and regulations, which include HTS classification numbers subject 
to assessment. Thus, the commenters' proposal has already been proposed 
in another rulemaking.
    One commenter suggested that AMS should use information available 
from the U.S. Customs Service to calculate the volume vote for each 
importer in the referendum rather than requiring importers to make this 
calculation. The Department believes that this information should be 
readily available to importer businesses through normal recordkeeping 
processes. Accordingly this suggestion is not adopted.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this action until 
30 days after publication in the Federal Register. An Order which will 
be the subject of a referendum vote was published in the December 5, 
1995, Federal Register (60 FR 62298). For the program to become 
operational, the Order must be approved by sheep producers, sheep 
feeders, and importers of sheep and sheep products voting in the 
initial referendum. In order to conduct a referendum in a timely 
manner, this rule should be made effective as soon as possible. 
Further, interested persons were afforded a 30 day comment period on 
the proposed referendum rule, and no useful purpose would be served in 
delaying the effective date. Therefore, this final rule is effective on 
the date of publication in the Federal Register.

Referendum Order

    It is hereby directed that a referendum be conducted among eligible 
sheep producers, sheep feeders, and importers of sheep and sheep 
products to determine whether an Order will become effective if 
approved by those eligible persons voting in the referendum. In-person 
voting in the referendum will be on February 6, 1996, at the county 
Cooperative Extension Service offices. Absentee ballots will be 
available at those offices from January 16, 1996, through January 26, 
1996. The representative period to establish voter eligibility will be 
the period from January 1, 1994, through December 31, 1994.
    In summary, this final rule adopts provisions of the August 8, 1995 
proposed rule with the changes discussed herein and with other minor 
changes made for purposes of clarity and accuracy.

List of Subjects in 7 CFR Part 1280

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Sheep and sheep products, Reporting and 
recordkeeping requirements.
    For the reasons set forth in the preamble, 7 CFR part 1280 is added 
to Chapter XI to read as follows:

PART 1280--SHEEP PROMOTION, RESEARCH, AND INFORMATION

Subpart A--[Reserved]

Subpart B--[Reserved]

Subpart C--[Reserved]

Subpart D--[Reserved]

Subpart E--Procedures for the Conduct of Referendum

Definitions

Sec.
1280.601  Act.
1280.602  Administrator.
1280.603  Carbonized wool.
1280.604  Farm Service Agency.
1280.605  Farm Service Agency County Committee.
1280.606  Farm Service Agency County Executive Director.
1280.607  Cooperative Extension Service.
1280.608  Cooperative Extension Service agent.
1280.609  Cooperative Extension Service of the U.S. Department of 
Agriculture.
1280.610  Degreased wool.
1280.611  Department.
1280.612  Deputy Administrator.
1280.613  Feeder.
1280.614  Greasy wool.
1280.615  Importer.
1280.616  Order.
1280.617  Person.
1280.618  Producer.
1280.619  Public notice.
1280.620  Pulled wool.
1280.621  Raw wool.
1280.622  Referendum.
1280.623  Registration period.
1280.624  Representative period.
1280.625  Secretary.
1280.626  Sheep.
1280.627  Sheep products.
1280.628  State.
1280.629  Unit.
1280.630  United States.
1280.631  Volume of production.
1280.632  Voting period.
1280.633  Wool.
1280.634  Wool products.

Referendum

1280.650  General.
1280.651  Supervision of referendum.
1280.652  Eligibility.
1280.653  Time and place of registration and voting.
1280.654  Facilities for registering and voting.
1280.655  Registration form and ballot.
1280.656  Registration and voting procedures.
1280.657  List of registered voters.
1280.658  Challenge of voters.
1280.659  Receiving ballots.
1280.660  Canvassing ballots.
1280.661  FSA county office report.
1280.662  FSA State office report.
1280.663  Results of the referendum.
1280.664  Disposition of ballots and records.
1280.665  Instructions and forms.

    Authority: 7 U.S.C. 7101-7111.

Subpart E--Procedures for the Conduct of Referendum

Definitions


Sec. 1280.601  Act.

    The term Act means the Sheep Promotion, Research, and Information 
Act of 1994, 7 U.S.C. 7101-7111; Public Law 103-407; 108 Statute 4210; 
as approved October 22, 1994, and any amendments thereto.


Sec. 1280.602  Administrator.

    The term Administrator means the Administrator of the Agricultural 
Marketing Service, or any officer or 

[[Page 64307]]
employee of the Department to whom there has heretofore been delegated 
or may hereafter be delegated the authority to act in the 
Administrator's stead.


Sec. 1280.603  Carbonized wool.

    The term Carbonized wool means wool that has been immersed in a 
bath, usually of mineral acids or acid salts, that destroys vegetable 
matter in the wool, but does not affect the wool fibers.


Sec. 1280.604  Farm Service Agency.

    The term Farm Service Agency--formerly Agricultural Stabilization 
and Conservation Service (ASCS)--also referred to as ``FSA,'' means the 
Farm Service Agency of the Department.


Sec. 1280.605  Farm Service Agency County Committee.

    The term Farm Service Agency County Committee, also referred to as 
the ``FSA County Committee or COC,'' means the group of persons within 
a county elected to act as the FSA County Committee or COC.


Sec. 1280.606  Farm Service Agency County Executive Director.

    The term Farm Service Agency County Executive Director also 
referred as the ``FSA County Executive Director,'' means the person 
employed by the FSA County Committee to execute the policies of the FSA 
County Committee and be responsible for the day-to-day operations of 
the county FSA office, or the person acting in such capacity.


Sec. 1280.607  Cooperative Extension Service.

    The term Cooperative Extension Service, also referred to as ``CES'' 
means the State partner in the Cooperative Extension Service system.


Sec. 1280.608  Cooperative Extension Service Agent.

    The term Cooperative Extension Service Agent, also referred to as 
the ``CES Agent,'' means an employee of the Cooperative Extension 
Service.


Sec. 1280.609  Cooperative Extension Service of the U.S. Department of 
Agriculture.

    The term Cooperative Extension Service of the U.S. Department of 
Agriculture, also referred to as ``CES,'' means the Federal component 
of the Cooperative Extension Service.


Sec. 1280.610  Degreased wool.

    The term Degreased wool means wool from which the bulk of 
impurities has been removed by processing.


Sec. 1280.611  Department.

    The term Department means the U.S. Department of Agriculture.


Sec. 1280.612  Deputy Administrator.

    The term Deputy Administrator means the Deputy Administrator for 
Program Delivery and Field Operations, FSA, U.S. Department of 
Agriculture or any officer or employee of the Department to whom there 
has heretofore been delegated or may hereafter be delegated the 
authority to act in the Deputy Administrator's stead.


Sec. 1280.613  Feeder.

    The term Feeder means a person who feeds lambs until the lambs 
reach slaughter weight.


Sec. 1280.614  Greasy wool.

    The term Greasy wool means wool that has not been washed or 
otherwise cleaned.


Sec. 1280.615  Importer.

    The term Importer means any person who imports sheep and sheep 
products into the United States.


Sec. 1280.616  Order.

    The term Order means the Sheep and Wool Promotion, Research, 
Education, and Information Order.


Sec. 1280.617  Person.

    The term Person means any individual, group of individuals, 
partnership, corporation, association, cooperative, or any other legal 
entity.


Sec. 1280.618  Producer.

    The term Producer means any person, other than a feeder, who owns 
or acquires ownership of sheep.


Sec. 1280.619  Public notice.

    The term Public notice means information regarding a referendum 
which shall be provided by the Secretary, without advertising expenses, 
through press releases and by State and county CES offices and county 
FSA offices, by means of newspapers, electronic media, county 
newsletters, and the like. Such notice shall contain the referendum 
date and location, registration and voting requirements, rules 
regarding absentee voting, and other pertinent information.


Sec. 1280.620  Pulled wool.

    The term Pulled wool means wool that is pulled from the skin of 
slaughtered sheep.


Sec. 1280.621  Raw wool.

    The term Raw wool means greasy wool, pulled wool, degreased wool, 
or other carbonized wool.


Sec. 1280.622  Referendum.

    The term Referendum means any referendum to be conducted by the 
Secretary pursuant to the Act where producers, feeders, and importers 
of sheep and sheep products, except an importer of only raw wool, shall 
be given the opportunity to vote.


Sec. 1280.623  Registration period.

    The term Registration period means a 1 day period to be announced 
by the Secretary for registration of producers, feeders, and importers 
desiring to vote in a referendum. The registration period shall be the 
same day as the voting period.


Sec. 1280.624  Representative period.

    The term Representative period means 12 consecutive months of 
calendar year 1994.


Sec. 1280.625  Secretary.

    The term Secretary means the Secretary of Agriculture of the United 
States or any other officer or employee of the Department to whom there 
has been delegated or to whom authority may hereafter be delegated to 
act in the Secretary's stead.


Sec. 1280.626  Sheep.

    The term Sheep means ovine animals of any age, including lambs.


Sec. 1280.627  Sheep products.

    The term Sheep products means products produced, in whole or in 
part, from sheep, including wool and products containing wool fiber.


Sec. 1280.628  State.

    The term State means each of the 50 States.


Sec. 1280.629  Unit.

    The term Unit means each State, group of States, or class 
designation that is represented on the Board.


Sec. 1280.630  United States.

    The term United States means the 50 States and the District of 
Columbia.


Sec. 1280.631  Volume of production

    The term volume of production means the largest number of head of 
domestic sheep that a domestic sheep producer or sheep feeder entity 
continuously owned and that were located in the United States during 
any single consecutive 30-day period during the representative period. 
The term ``volume of production'' also means the number of head of 
imported live sheep or the number of live sheep equivalents that an 
importer imported into the United States during the representative 
period, excluding imported raw wool.


Sec. 1280.632  Voting period.

    The term Voting period means a 1-day period to be announced by the 
Secretary for voting in the referendum. 

[[Page 64308]]



Sec. 1280.633  Wool.

    The term Wool means the fiber from the fleece of a sheep.


Sec. 1280.634  Wool products.

    The term Wool products means products produced, in whole or in 
part, from wool and products containing wool fiber.

Referendum


Sec. 1280.650  General.

    (a) A referendum to determine whether eligible sheep producers, 
sheep feeders, and importers of sheep and sheep products approve the 
Order. Importers who only import raw wool are not eligible to vote in 
the referendum.
    (b) The Order shall become operational only if the Secretary 
determines that the Order is approved by a majority of sheep producers, 
sheep feeders, and importers of sheep and sheep products voting in the 
referendum or by sheep producers, sheep feeders, and importers of sheep 
and sheep products voting in the referendum who account for at least 
two-thirds of the production represented by those voting in the 
referendum.
    (c) The initial referendum shall be conducted at the county CES 
offices.
    (d) The FSA of the Department shall assist in the conduct of the 
initial referendum.


Sec. 1280.651  Supervision of referendum.

    The Administrator shall be responsible for conducting the 
referendum in accordance with this subpart.


Sec. 1280.652  Eligibility.

    (a) Eligible producers, feeders, and importers. Each person who was 
a sheep producer, sheep feeder, or importer of sheep and sheep products 
during the representative period is entitled to register and vote in 
the referendum. Each producer, feeder, and importer entity shall be 
entitled to cast only one ballot in the referendum. Importers who only 
import raw wool are not eligible to register and vote in the 
referendum.
    (b) Proxy registration and voting. Proxy registration and voting is 
not authorized, except that an officer or employee of a corporate 
producer, feeder, or importer, or any guardian, administrator, 
executor, or trustee of a producer's, feeder's, or importer's estate, 
or an authorized representative of any eligible producer, feeder, or 
importer entity (other than an individual producer, feeder, or 
importer), such as a corporation or partnership, may register and cast 
a ballot on behalf of that entity. Any individual who registers to vote 
in the referendum on behalf of any producer, feeder, or importer entity 
shall certify that he or she is authorized by such entity to take such 
action.
    (c) Joint and group interest. A group of individuals, such as 
members of a family, joint tenants, tenants in common, a partnership, 
owners of community property, or a corporation engaged in sheep 
production, sheep feeding, or the importation of sheep and sheep 
products as a producer, feeder, or importer entity, shall be entitled 
to only one vote, provided, however, that any member of a group may 
register to vote as a producer, feeder, or importer if he or she is an 
eligible producer, feeder, or importer separate from the group.


Sec. 1280.653  Time and place of registration and voting.

    The referendum shall be held for one day on a date to be determined 
by the Secretary. Eligible persons shall register and vote following 
the procedures in Sec. 1280.656. Except for absentee ballots, 
registration and voting shall take place during the normal business 
hours of each county CES office.


Sec. 1280.654  Facilities for registering and voting.

    Each county CES office shall provide:
    (a) adequate facilities and space to permit producers, feeders, and 
importers to register and to mark their ballots in secret,
    (b) a sealed box or other suitable receptacle for registration 
forms and ballots that is kept under observation during office hours 
and secured at all times, and
    (c) copies of the Order for review.


Sec. 1280.655  Registration form and ballot.

    A ballot (Form LS-61) and a registration and certification form 
(Form LS-61-2) shall be used for voting in person. The information 
required on the registration and certification form includes name, 
address, telephone number, and county of voter residence. The form also 
contains the certification statement referenced in Sec. 1280.656(a)(1). 
The ballot requires producers, feeders and importers to check a ``yes'' 
or ``no'' and provides space to record volume of production. If a 
producer, feeder, or importer wishes to cast their ballot based on 
their volume of production, the voter must record their volume of 
production in the space provided on the ballot. A combined 
registration/certification and ballot form (Form LS-62) shall be used 
for absentee voting. The information required on the combined 
registration/certification and ballot form includes name, address, 
telephone number, and county of voter residence. Form LS-62 also 
contains the certification statement referenced in Sec. 1280.656(b)(1) 
and the absentee ballot.


Sec. 1280.656  Registration and voting procedures.

    (a) Registering and voting in-person.
    (1) Each producer, feeder, and importer, except importers who 
import only raw wool, who wants to vote in a referendum shall register 
on the day of voting at the county CES office in which the producer's, 
feeder's, or importer's residence is located, or at the county CES 
office that serves the county in which the producer's, feeder's, or 
importer's residence is located. Producer, feeder, or importer entities 
other than individuals shall register at the county CES office in the 
county in which their headquarters office or business is located, or at 
the county CES office that serves the county in which the entities' 
headquarters office or business is located. Producers, feeders, and 
importers will be required to record on the in-person voter 
registration list (Form LS-61-3) their names and, if applicable, the 
name of the entity they represent before they receive a registration 
and certification form and ballot. To register, producers, feeders, or 
importers shall complete the registration and certification form (Form 
LS-61-2) and certify that:
    (i) they or the entity they represent were producers, feeders, or 
importers during the specified representative period;
    (ii) the person voting on behalf of an entity referred to in 
Sec. 1280.652 is authorized to do so; and
    (iii) the volume of production listed on the ballot is a true and 
accurate representation.
    (2) Each eligible producer, feeder, or importer who has not voted 
by means of an absentee ballot may cast a ballot in-person at the 
location and time set forth in Sec. 1280.653 and on a date to be 
announced by the Secretary. Eligible persons who record their name and 
the entity they represent on the in-person voter registration list 
(Form LS-61-3) will receive a registration and certification form (Form 
LS-61-2) and a ballot (Form LS-61). Voting shall be conducted under the 
supervision of the county CES agent or designee. Voters will enter the 
information requested on the registration and certification form (Form 
LS-61-2) as indicated above. Producers, feeders, and importers will 
then mark their ballots to indicate ``yes'' or ``no'' and if voting 
volume of production record their volume of production in the space 
provided on the ballot. Voters shall place their 

[[Page 64309]]
completed ballots in an envelope marked ``SHEEP BALLOT,'' (Form LS-61-
1) seal and place it in the completed and signed registration and 
certification form/envelope marked ``SHEEP REFERENDUM,'' (Form LS-61-2) 
seal that envelope and personally place it in a box marked ``Ballot 
Box'' or other suitable receptacle. A copy of the applicable in-person 
voter registration list (Form LS-61-3) prepared by the county CES 
office shall be provided to each FSA county office for in-person voter 
verification.
    (b) Absentee voting. (1) Eligible producers, feeders, and importers 
who are unable to vote in person may request a combined registration/
certification and absentee ballot form (Form LS-62) and two envelopes--
one marked ``SHEEP BALLOT'' (Form LS-61-1) and the other marked ``SHEEP 
REFERENDUM'' (LS-62-1), by mail or in person from the county CES office 
in the county in which they reside or the county CES office that serves 
the county in which they reside, if individuals, or in which their main 
office is located, if a corporation or other entity. These forms and 
envelopes will be mailed by the county CES agent or designee to the 
address provided by the prospective voter. Only one absentee 
registration/certification form and absentee ballot will be provided to 
each eligible producer, feeder, or importer. The forms must be 
requested during a specified time period which will be announced by the 
Secretary. The county CES office shall enter on the absentee voter 
request list (Form LS-62-2) the name, address and entity requesting an 
absentee ballot and the date the forms were requested. A copy of the 
applicable absentee voter request list (Form LS-62-2) prepared by the 
county CES office shall be provided to each FSA county office for 
absentee voter verification.
    (2) To register, eligible producers, feeders, and importers must 
complete and sign the combined registration/certification form and 
absentee ballot (Form LS-62) and certify that:
    (i) they or the entity they represent were producers, feeders, or 
importers during the specified representative period,
    (ii) if voting on behalf of an entity referred to in Sec. 1280.652, 
they are authorized to do so; and
    (iii) the volume of production listed on the ballot is a true and 
accurate representation.
    (3) A producer, feeder, or importer, after completing the absentee 
voter registration form and the ballot, shall remove the ballot portion 
of the combined registration/certification and absentee ballot form 
(Form LS-62) and seal the completed ballot in a separate envelope 
marked ``SHEEP BALLOT'' (Form LS-61-1) and place the sealed envelope in 
a second envelope marked ``SHEEP REFERENDUM'' (Form LS-62-1) along with 
the signed registration form. Producers, feeders, and importers shall 
legibly print their names on the envelope marked ``SHEEP REFERENDUM'' 
(Form LS-62-1), and mail or hand deliver it to the local county CES 
office of the county in which they reside or the county CES office 
serving the county in which they reside. In the case of a partnership, 
corporation, estate, or other entity, the registration form and ballot 
must be mailed or hand delivered to the county CES office in the county 
in which its main office is located or the county CES office in the 
county serving the county in which its main office is located.
    (4) Absentee ballots must be received in the county CES office by 
the close of business, 2 business days before the date of the 
referendum. Absentee ballots received after that date shall be counted 
as invalid ballots. Upon receiving the ``SHEEP REFERENDUM'' envelope 
containing the registration form and ballot, the county CES agent or 
designee shall place it, unopened in a secure ballot box. The county 
CES agent or designee shall record receipt of the absentee vote on the 
absentee voter request list (Form LS-62-2).
    (5) A person who casts an absentee ballot that is not recorded as 
being received or that is received after the deadline specified in this 
section may vote in person at the appropriate county CES office on the 
day of the referendum.


Sec. 1280.657  List of registered voters.

    The in-person voter registration list (Form LS-61-3) and the 
absentee voter request list (Form LS-62-2) shall be available for 
inspection on the day of the referendum at the county CES office and 
subsequently at the FSA county office. They shall be posted during 
regular office hours in a conspicuous public location at the FSA county 
office on the second business day following the date of the referendum.


Sec. 1280.658  Challenge of voters.

    (a) Challenge period. On the day of the referendum, the names of 
voters challenged shall be reported to the CES county agent, who will 
refer them to the FSA county office. After that, the names of the 
challenged voters shall be referred directly to the FSA county office. 
A challenge may be made no later than the close of business on the 
second business day after the date of the referendum.
    (b) Who may challenge. Any person may challenge a voter. Any person 
who wants to challenge must do so in writing and must include the full 
name of the individual or other entity being challenged. Each challenge 
of a voter must be made separately and each challenge must be signed by 
the challenger. The Secretary may issue other guidelines as the 
Secretary deems necessary.
    (c) Determination of challenges. The FSA County Committee or its 
representative, acting on behalf of the Administrator, shall make a 
determination concerning the challenge and shall notify challenged 
producers, feeders, or importers as soon as practicable, but no later 
than five business days after the date of the referendum. If the FSA 
County Committee or its representative, acting on behalf of the 
Administrator, is unable to determine whether a person was a producer, 
feeder, or importer during the representative period, or verify a 
voter's recorded volume of production, it may require the person 
challenged to submit records such as sales documents, import documents, 
or other similar documents in order to demonstrate his or her 
eligibility or to prove that the person was a producer, feeder, or 
importer during the representative period and to verify that the 
recorded volume of production was accurately stated.
    (d) Challenged ballot. The registration and certification form 
(Form LS-61-2) containing the ballots cast by producers, feeders, or 
importers voting in person who are challenged shall be removed from the 
ballot box and placed in a separate box until the challenge has been 
resolved. The SHEEP REFERENDUM envelopes (Form LS-62-1) containing 
absentee voter registration forms and absentee ballots of challenged 
absentee voters also shall be removed from the ballot box and placed in 
the box containing ballots of challenged producers, feeders, and 
importers. A challenge to a ballot shall be deemed to have been 
resolved if the determination of the FSA County Committee or its 
representative is not appealed within the time allowed for appeal or 
there has been a determination by FSA after an appeal.
    (e) Appeal. A person declared to be ineligible to register and vote 
or whose recorded volume of production has been questioned by the FSA 
County Committee or its designee, acting on behalf of the 
Administrator, may file an appeal at the FSA county office within three 
business days after notification of such decision. Such person may be 
required to provide documentation such as sales documents, import 
documents, or similar documents in order to demonstrate his or her 
eligibility or 

[[Page 64310]]
verify the recorded volume of production. An appeal shall be determined 
by the FSA County Committee, or its designee, acting on behalf of the 
Administrator, as soon as practicable, but in all cases not later than 
the ninth business day after the date of the referendum. The FSA County 
Committee or its designee's determination on an appeal is final.


Sec. 1280.659  Receiving ballots.

    A ballot shall be considered to have been received during the 
voting period if:
    (a) it was cast in person in the county CES office prior to the 
close of business on the day of the referendum; or
    (b) it was cast as an absentee ballot, and was received in the 
county CES office not later than two business days before the date of 
the referendum.


Sec. 1280.660  Canvassing ballots.

    (a) Counting the ballots. The county CES agent or designee shall 
deliver the sealed ballot box, the in-person voter registration list 
(Form LS-61-3) and the absentee voter request list (Form LS-62-2) to 
the FSA county office by the close of business on the first business 
day following the date of the referendum. FSA county Executive Director 
and the county CES agent or designee shall check the registration forms 
and ballots of all voters against the in-person voter registration list 
(Form LS-61-3) and the absentee voter request list (Form LS-62-2) to 
determine properly registered voters. The ballots of producers, 
feeders, and importers voting in person whose names are not on the in-
person voter registration list (Form LS-61-3), shall be declared 
invalid. Likewise, the ballots of producers, feeders, and importers 
voting absentee whose names are not on the absentee voter request list 
(Form LS-62-2) shall be declared invalid. All ballots of challenged 
voters declared ineligible or invalid shall be kept separate from the 
other ballots and shall not be counted as valid ballots. The valid 
ballots shall be counted on the tenth business day after the referendum 
date. FSA county office employees shall remove the ``SHEEP BALLOT'' 
envelope from the registration/certification form envelopes or absentee 
ballot envelopes of all eligible voters and all challenged voters 
determined to be eligible. After removing all ``Sheep Ballot'' 
envelopes, FSA county employees shall open them and count the ballots. 
The ballots shall be counted as follows:
    (1) Number of eligible producers, feeders, and importers casting 
valid ballots;
    (2) Number of producers, feeders, and importers favoring the Order;
    (3) Number of producers, feeders, and importers not approving the 
Order;
    (4) Volume of production recorded by producers, feeders, and 
importers approving the Order;
    (5) Volume of production of producers, feeders, and importers not 
approving the Order;
    (6) Number of challenged ballots;
    (7) Number of challenged ballots deemed ineligible;
    (8) Number of invalid ballots; and
    (9) Number of spoiled ballots.
    (b) Invalid Ballots. Ballots shall be declared invalid if a 
producer, feeder, or importer voting in-person has failed to sign the 
voter registration list (Form LS-61-3) or an absentee voter's name is 
not recorded on the absentee voter request list (Form LS-62-2), or the 
registration form or ballot was incomplete or incorrectly completed.
    (c) Spoiled Ballots. Ballots shall be considered spoiled if they 
are mutilated or marked in such a way that the ``yes'' or ``no'' vote 
is illegible. Spoiled ballots shall not be considered as approving or 
disapproving the Order, or as a ballot cast in the referendum.
    (d) Confidentiality. All ballots shall be confidential and the 
contents of the ballots shall not be divulged except as the Secretary 
may direct. The public may witness the opening of the ballot box and 
the counting of the votes but may not interfere with the process.


Sec. 1280.661  FSA county office report.

    The FSA county office shall notify the FSA State office of the 
results of the referendum. Each FSA county office shall transmit the 
results of the referendum in its county to the FSA State office. Such 
report shall include the information listed in Sec. 1280.660(a). The 
results of the referendum in each county may be made available to the 
public upon notification from the Deputy Administrator FSA that the 
final results have been released by the Secretary. A copy of the report 
of results shall be posted for 30 days in the FSA county office in a 
conspicuous place accessible to the public, and a copy shall be kept on 
file in the FSA county office for a period of at least 12 months after 
the referendum.


Sec. 1280.662  FSA State office report.

    Each FSA State office shall transmit to the Deputy Administrator, 
FSA, a written summary of the results of the referendum received from 
all the FSA county offices within the State. The summary shall include 
the information on the referendum results contained in the reports from 
all county offices within each State, and shall be certified by the FSA 
State Executive Director. The FSA State office shall maintain a copy of 
the summary where it shall be available for public inspection for a 
period of not less than 12 months beginning upon notification from the 
Deputy Administrator, FSA, that the final results have been released by 
the Secretary.


Sec. 1280.663  Results of the referendum.

    (a) The Deputy Administrator, FSA, shall submit the results of the 
referendum to the Administrator. The Administrator shall prepare and 
submit to the Secretary a report of the results of the referendum. The 
results of any referendum shall be issued by the Department in an 
official press release and published in the Federal Register. State 
reports and related papers shall be available for public inspection in 
the office of the Marketing Programs Branch, Livestock and Seed 
Division, AMS, USDA, Room 2606, South Agriculture Building, 14th and 
Independence Avenue, SW., Washington, DC.
    (b) If the Secretary deems it necessary, the report of any State or 
county shall be reexamined and checked by such persons as may be 
designated by the Deputy Administrator, FSA, or the Secretary.


Sec. 1280.664  Disposition of ballots and records.

    Each FSA county Executive Director shall place in sealed containers 
marked with the identification of the referendum the in-person voter 
registration list, absentee voter request list, voted ballots, 
challenged registration/certification forms/envelopes, challenged 
absentee voter registration forms, challenged ballots found to be 
ineligible, invalid ballots, spoiled ballots, and county summaries. 
Such records shall be placed under lock in a safe place under the 
custody of the FSA county Executive Director for a period of not less 
than twelve months after the referendum. If no notice to the contrary 
is received from the Deputy Administrator, FSA, by the end of such 
time, the records shall be destroyed.


Sec. 1280.665  Instructions and forms.

    The Administrator is hereby authorized to prescribe additional 
instructions and forms not inconsistent with the provisions of this 
subpart to govern the conduct of the referendum.


[[Page 64311]]

    Dated: December 8, 1995.
Lon Hatamiya,
Administrator, Agricultural Marketing Service.
[FR Doc. 95-30491 Filed 12-14-95; 8:45 am]
BILLING CODE 3410-2-P