19514 Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations

and contrary to the public interest to

give preliminary notice prior to putting

this rule into effect, and that good cause

exists for not postponing the effective

date of this action until 30 days after

publication in the Federal Register

because: (1) The committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1996–97 fiscal period

begins on April 1, 1996, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable avocados handled

during such fiscal period; (3) handlers

are aware of this action which was

unanimously recommended by the

committee at a public meeting and is

similar to other assessment rate actions

issued in past years; and (4) this interim

final rule provides a 30-day comment

period, and all comments timely

received will be considered prior to

finalization of this action.

List of Subjects in 7 CFR Part 915

Avocados, Marketing agreements,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 915 is amended as

follows:

PART 915—AVOCADOS GROWN IN

SOUTH FLORIDA

1. The authority citation for 7 CFR

part 915 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. A new section 915.235 is added to

read as follows:

Note: This section will not appear in the

annual code of Federal Regulations.

§ 915.235 Assessment rate.

On and after April 1, 1996, an

assessment rate of $0.16 per bushel of

assessable avocados is established for

the Avocado Administrative Committee.

Dated: April 26, 1996.

Eric M. Forman,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 96–10871 Filed 5–1–96; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Part 1280

[No. LS–94–015]

Sheep and Wool Promotion, Research,

Education, and Information Order

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule establishes a Sheep

and Wool Promotion, Research,

Education, and Information Order

(Order) which is authorized by the

Sheep Promotion, Research, and

Information Act of 1994 (Act). The

program will be funded by assessments

collected from sheep producers, sheep

feeders and importers of sheep and

sheep products. The program will be

administered by a National Sheep

Promotion, Research, and Information

Board (Board).

Implementing regulations will be

published separately in the Federal

Register.

EFFECTIVE DATE: This final rule is

effective May 3, 1996, except that

§ 1280.224–1280.228 become effective

July 1, 1996.

ADDRESSES: Ralph L. Tapp, Chief;

Marketing Programs Branch, Room

2606–S; Livestock and Seed Division,

AMS–USDA; P.O. Box 96456;

Washington, D.C. 20090–6456.

FOR FURTHER INFORMATION CONTACT:

Ralph L. Tapp, Chief, Marketing

Programs Branch, 202/720–1115.

SUPPLEMENTARY INFORMATION: Prior

documents: Notice-Invitation to submit

proposals published January 4, 1995 (60

FR 381); Proposed Rule-Sheep and Wool

Promotion, Research, Education, and

Information Order published June 2,

1995 (60 FR 28747); Proposed RuleProcedures for Conduct of Referendum

published August 8, 1995 (60 FR

40313); Notice-Certification of

Organizations for Eligibility to Make

Nominations to the Proposed Board

published August 8, 1995 (60 FR

40343); Proposed Rule-Rules and

Regulations published October 3, 1995

(60 FR 51737); Proposed Rule-Sheep

and Wool Promotion, Research,

Education, and Information Order

published December 5, 1995 (60 FR

62298); and Final Rule and Referendum

Order-Procedures for the Conduct of

Referendum published December 15,

1995 (60 FR 64297).

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 was reviewed under

Executive Order 12778, Civil Justice

Reform. It is not intended to have a

retroactive effect. This rule would not

preempt any State or local laws,

regulations, or policies unless they

present an irreconcilable conflict with

this rule.

The 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 requesting a modification

of the Order or an exemption from

certain provisions or obligations of the

Order. The petitioner would have the

opportunity for a hearing on the

petition. Thereafter the Secretary would

issue a decision on the petition. The Act

provides that the district court of the

United States in the district in which

the petitioner resides or carries on

business has jurisdiction to review the

Secretary’s decision, if the petitioner

files a complaint for that purpose not

later than 20 days after the date of the

entry of the decision. The petitioner

must exhaust his or her administrative

remedies before filing such a complaint

in the district court.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA) (5

U.S.C. 601 et seq.), AMS has considered

the economic impact of this final action

on small entities.

The purpose of RFA is to fit

regulatory actions to the scale of the

businesses that are subject to such

actions so that small businesses would

not be unduly or disproportionately

burdened.

According to the January 27, 1995,

issue of ‘‘Sheep and Goats,’’ published

by the Department’s National

Agricultural Statistics Service, there are

approximately 87,350 sheep operations

in the United States, nearly all of which

would be classified as small businesses

under the criteria established by the

Small Business Administration (13 CFR

§ 121.601). Additionally, there are

approximately 9,000 importers of sheep

and sheep products, nearly all of which

would be classified as small businesses.

This final Order will require each

person who makes payment to a sheep

producer, feeder, or handler of sheep or

sheep products to be a collecting

person, and to collect an assessment

from that sheep producer, feeder, or

handler of sheep or sheep products. Any

person who buys domestic live sheep or

greasy wool for processing must also

collect the assessment and remit it to

the Board. Each person who processes

or causes to be processed sheep or sheep

products of that person’s own

production and who markets the

processed products will pay an

assessment and remit the assessment to

the Board. Any person who exports live

sheep or greasy wool will be required to

remit an assessment to the Board.

Finally, each person who imports into

the United States sheep, sheep products,

wool, or wool products, other than raw
Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations 19515

wool, will pay an assessment. The U.S.

Customs Service (Customs) will collect

the assessments on imported sheep and

sheep products (except raw wool) and

forward them to AMS for disbursement

to the Board.

The rate of assessment on domestic

sheep producers, feeders, and exporters

of live sheep and greasy wool will be 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 and the equivalent

of 1 cent per pound of live sheep for

sheep products and 2 cents per pound

of degreased wool or the equivalent of

degreased wool for wool and wool

products. Imported raw wool will be

exempt from assessments. Each person

who processes or causes to be processed

sheep or sheep products of that person’s

own production and markets the

processed products will be assessed the

equivalent of 1 cent per pound of live

sheep sold and 2 cents per pound of

greasy wool sold. All assessment rates

may be adjusted in accordance with the

applicable provisions of the Act.

Paperwork Reduction

In accordance with the Paperwork

Reduction Act of 1980 (44 U.S.C.

Chapter 35), the information collection

requirements contained herein were

submitted to OMB for approval and

assigned OMB No. 0581–0093. This

action sets forth the provisions for

establishing a nationwide, industryfunded sheep and wool promotion,

research, education, and information

program. The information collection

requirements required by this action

and necessary for the implementation of

this Order include:

(1) A report by each collecting person

required to remit assessments to the

Board for live sheep or greasy wool

purchased from the producer, feeder, or

handler of sheep or sheep products; by

each person marketing sheep or sheep

products of that person’s own

production; and by each exporter of

sheep or greasy wool. The estimated

number of respondents for this report is

700. Each respondent would submit one

report per month, unless otherwise

prescribed by the Board, and the

estimated average reporting burden is

0.5 hours per response;

(2) A requirement to maintain

sufficient records to verify reports

submitted under the Order. The

estimated number of recordkeepers

needed to comply with this requirement

is 700, each of whom would have an

estimated annual reporting burden of

0.5 hours;

(3) An application for certification of

organization, to be completed by eligible

organizations that request certification

in order to be eligible to nominate

producers, feeders, and importers to the

Board. The estimated number of

respondents is 70 (with each submitting

one response), and the estimated

average reporting burden is 0.5 hour per

response;

(4) A nomination form by which

certified organizations will nominate

producers, feeders, and importers for

membership on the Board. The

estimated number of respondents is 60

for the first year of the Order, and 20

each year thereafter. Each respondent

would submit one response per year,

and the estimated average reporting

burden is 0.5 hour per response; and

(5) An advisory committee

membership background information

form, to be completed by candidates

nominated by certified organizations for

appointment to the Board. The

estimated number of respondents is 240

during the first year of the Order, and

80 each year thereafter. Each respondent

would submit one response per year,

and the estimated average reporting

burden is 0.5 hour per response.

Background

The Act (7 U.S.C. 7101–7111),

enacted October 22, 1994, authorizes the

Secretary to establish a national sheep

and wool promotion, research,

education, and information program.

The program will be funded by a

mandatory assessment on domestic

sheep producers, sheep feeders, and

exporters of live sheep and greasy wool

of 1 cent per pound on live sheep sold

and 2 cents per pound on greasy wool

sold. Importers will be assessed 1 cent

per pound on live sheep imported and

the equivalent of 1 cent per pound of

live sheep for sheep products imported

and 2 cents per pound of degreased

wool or the equivalent of degreased

wool for wool and wool products

imported. Imported raw wool will be

exempt from assessments. Each person

who processes or causes to be processed

sheep or sheep products of that person’s

own production, and who markets the

processed products, will be assessed the

equivalent of 1 cent per pound of live

sheep sold and 2 cents per pound of

greasy wool sold. All assessment rates

may be adjusted in accordance with

applicable provisions of the Act.

The Act provides for the submission

of proposals for a Sheep and Wool

Promotion, Research, Education, and

Information Order (Order). The

Secretary may propose the issuance of

an Order, or an association of sheep

producers may submit and request the

issuance of an Order. The Act provides

that when the Secretary decides to

propose an Order or receives a request

and proposal for an Order, the Secretary

shall publish the proposed Order and

give due notice and opportunity for

public comment. The Act further

provides that an order contain certain

specified terms and conditions. Such

terms and conditions included

provisions concerning the establishment

of and composition of a Board and the

powers and duties of such a Board. Also

included under terms and conditions

are provisions concerning plans and

budgets, contracts and agreements,

books and records of the Board,

assessments, prohibitions, and reports,

books, and records of collecting persons

required to remit assessments and each

person required to collect the

assessment pursuant to the Act and the

Order.

As established by the Act, the Order

provides for the establishment of a

Board comprised of 85 sheep producers,

10 sheep feeders, and 25 importers of

sheep and sheep products. The Act

further provides that any State with one

producer member may have an alternate

producer member.

The Department issued an invitation

to submit proposals for an initial Order

in the January 4, 1995, (60 FR 381) issue

of the Federal Register. In response to

that invitation, the American Sheep

Industry Association (ASI), the sheep

industry’s producer member

organization, submitted a proposed

Order. In addition, the New Zealand

Meat Producers Board, the Australian

Meat and Live-stock Corporation, the

Wools of New Zealand, the National

Lamb Feeders Association, and the

Lamb Committee of the National

Livestock and Meat Board each

submitted a partial proposal.

The Department also received letters

from other interested parties. The

Department did not consider these

letters to be proposals because they

primarily addressed information related

to provisions of the Act itself.

The Department published ASI’s

proposal as Proposal I, the New Zealand

Meat Producers Board’s proposal as

Proposal II, the Australian Meat and

Live-stock Corporation’s proposal as

Proposal III, the Wools of New

Zealand’s proposal as Proposal IV, and

the National Lamb Feeders

Association’s proposal as Proposal V.

The Department modified these

proposals slightly in order to (1) make

them consistent with the Act and other

similar national research and promotion

programs supervised by the Department,

(2) simplify the language and format of

some provisions, and (3) add certain

sections necessary for the proper

administration of the Order by the
19516 Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations

Department. The Department rejected

the proposal submitted by the Lamb

Committee of the National Livestock

and Meat Board and discussed that

proposal in the proposed rule. Each

proposal was published in the June 2,

1995, issue of the Federal Register (60

FR 28747). Interested persons were

invited to submit comments on the

proposals until July 17, 1995. On June

26, 1995, a public meeting was held at

the Department to afford any interested

person the opportunity to comment on

the proposed Order.

The Department received 137 written

comments concerning the proposed

Order from individual sheep producers,

sheep feeders, importers of sheep and

sheep products, State sheep producer

organizations, general farm

organizations, universities, and other

interested parties. Ninety-three

comments were filed on time and fortyfour comments were filed after the

comment period closed. The comments

on the proposed Order were discussed

in the December 5, 1995, issue of the

Federal Register (60 FR 62298). A

nationwide referendum was held on

February 6, 1996, among eligible

producers, feeders, and importers to

determine whether the Order would

become effective. Requests for absentee

ballots were available from January 16,

1996, through January 26, 1996. An

Order becomes 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 two-thirds of the production

represented by persons voting in the

referendum. The Order was approved by

a majority of those persons voting in the

referendum.

The Order provisions as proposed by

the Department and approved in the

referendum are summarized as follows:

Sections 1280.101–1280.136 of the

Order define certain words that are used

in the Order.

Sections 1280.201–1280.211 of the

Order concern the establishment,

membership, nominations, method of

obtaining nominations, certification of

organizations, term of office,

compensation, removal, and powers and

duties of the Board, which is the

governing body authorized to

administer the Order subject to the

oversight of the Secretary.

Sections 1280.212–1280.214 of the

Order provide for budget review and

approval, maintenance of books and

records by the Board, and the

investment of funds.

Section 1280.215 of the Order

authorizes the use of assessments which

includes expenditures of funds for

domestic country of origin specific

promotion and reimbursement for

expenses incurred for the Department’s

oversight responsibilities.

Sections 1280.216–1280.222 of the

Order establish that the membership of

the Executive Committee will be

composed of 14 members, including 7

producer members elected from 7

regions reflecting sheep production and

sheep producers, 1 sheep feeder, 3

importers of sheep or sheep products,

and 3 elected officers of the Board. In

addition, these sections authorize the

Executive Committee to develop plans

and projects of promotion, research,

consumer information, education,

industry information, and producer

information with respect to sheep and

sheep products and to develop and

submit to the Board budgets of

anticipated expenses and disbursements

for program projects. The Secretary

must approve such plans, projects, or

budgets before they are implemented.

Section 1280.223 of the Order holds

the Board responsible for expenses of

the Board and the Executive Committee,

and establish requirements for contracts

and agreements that the Board enters

into.

Sections 1280.224–1280.228 establish

assessment rates on sheep and sheep

products as provided by the Act. These

sections also provide that the domestic

rate and the import rate must be raised

or lowered simultaneously by an

equivalent amount.

Section 1280.229 authorizes each

Qualified State Sheep Board (QSSB) to

receive 20 percent of the total

assessments collected by the Board on

the marketing of domestic sheep and

domestic sheep products in any one

year from each State. However, no QSSB

will receive less than $2,500 per year.

Section 1280.230 of the Order

establishes collection procedures for

each person responsible for collecting

the assessment, fixes a 2 percent late

payment charge for past due

assessments, and authorizes the

Secretary to receive assessments on

behalf of the Board, if the Board is not

in place or is otherwise unable to collect

assessments.

Section 1280.231 of the Order

prohibits funds received under this

program from being used to influence

Government action or policy, with

certain specified exceptions. In

addition, funds received under this

program that are used to conduct plans

or projects shall not (1) make false or

misleading claims on behalf of sheep or

sheep products or against a competing

product or (2) promote or advertise any

sheep or sheep products by brand or

trade name without the approval of the

Board and the concurrence of the

Secretary.

Sections 1280.232–1280.235 of the

Order contain reporting and

recordkeeping requirements for persons

subject to the Order, and provide that all

information obtained by the Board or

the Department from books and reports

required by the Order would be kept

confidential. A correction is made to

§ 1280.235(d) by deleting the word

‘‘subpart’’ and inserting in its place the

word ‘‘section.’’

Sections 1280.240–1280.246 of the

Order contain miscellaneous provisions,

including provisions concerning the

Secretary’s authority; proceedings after

the termination of the Order; the effect

of termination or amendment of the

Order; personal liability of Board

members; patents, copyrights,

inventions and publications;

amendments to the Order; and

separability of Order provisions.

On February 6, 1996, a nationwide

referendum was conducted among

eligible sheep producers, sheep feeders,

and importers of sheep and sheep

products to determine whether the

Order should become effective. Requests

for absentee ballots were available from

January 16, 1996, through January 26,

1996. The representative period for

establishing voter eligibility was from

January 1, 1994, through December 31,

1994.

It is determined that a majority of

those persons who voted in the

referendum approved the

implementation of the Order. To

become effective, the Order had to be

approved either by a simple majority

vote or by those persons voting in the

referendum who accounted for at least

two-thirds of the production voted.

After consideration of all relevant

material presented, including the initial

proposals, comments received, the

referendum results, and other available

information, it is found that the Order

and all of the terms and conditions

thereof, should be made final.

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.

Each section of this final rule except,

§ 1280.224 through § 1280.228 which

establish assessment rates on both

domestic and imported sheep and sheep

products as provided by the Act, will

become effective upon publication of

this final rule. Sections 1280.224–

1280.228 of the Order will become

effective July 1, 1996, after regulations

implementing the collection and

remittance procedures are issued and

published in the Federal Register.
Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations 19517

Accordingly, no useful purpose would

be served in delaying the effective date

of the other provisions of the Order. The

Act requires implementation of the

Order if the Order is approved by the

sheep and wool industry and the sheep

and wool industry approved the Order

in the February 6, 1996, referendum.

Further, the Board must be appointed to

administer the program as soon as

possible. Therefore, this final rule is

effective on the day following date of

publication in the Federal Register

except for the provisions in § 1280.224–

§ 1280.228.

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 of the Code

of Federal Regulations is amended as

follows:

PART 1280—SHEEP PROMOTION,

RESEARCH, AND INFORMATION

1. The authority citation for Part 1280

continues to read as follows:

Authority: 7 U.S.C. 7101–7111.

2. In Part 1280, Subpart A is added to

read as follows:

Subpart A—Sheep and Wool Promotion,

Research, Education, and Information Order

Definitions

Sec

1280.101 Act.

1280.102 Board.

1280.103 Carbonized wool.

1280.104 Certified organization.

1280.105 Collecting person.

1280.106 Consumer information.

1280.107 Customs Service.

1280.108 Degreased wool.

1280.109 Department.

1280.110 Education.

1280.111 Executive committee.

1280.112 Exporter.

1280.113 Feeder.

1280.114 Greasy wool.

1280.115 Handler.

1280.116 Importer.

1280.117 Industry information.

1280.118 National feeder organization.

1280.119 Part and subpart.

1280.120 Person.

1280.121 Processor.

1280.122 Producer.

1280.123 Producer information.

1280.124 Promotion.

1280.125 Pulled wool.

1280.126 Qualified State Sheep Board.

1280.127 Raw wool.

1280.128 Research.

1280.129 Secretary.

1280.130 Sheep.

1280.131 Sheep products.

1280.132 State.

1280.133 Unit.

1280.134 United States.

1280.135 Wool.

1280.136 Wool products.

National Sheep Promotion, Research, and

Information Board

1280.201 Establishment and membership of

the Board.

1280.202 Nominations.

1280.203 Nominee’s agreement to serve.

1280.204 Appointment.

1280.205 Method of obtaining nominations.

1280.206 Vacancies.

1280.207 Certification of organizations.

1280.208 Term of office.

1280.209 Compensation.

1280.210 Removal.

1280.211 Powers and duties of the Board.

1280.212 Budgets.

1280.213 Books and records of the Board.

1280.214 Investment of funds.

1280.215 Use of assessments.

Executive Committee

1280.216 Establishment.

1280.217 Membership.

1280.218 Powers and duties.

1280.219 Term of office.

1280.220 Chairperson.

1280.221 Quorum.

1280.222 Vacancies.

Expenses

1280.223 Expenses.

Assessments

1280.224 Sheep purchases.

1280.225 Wool purchases.

1280.226 Direct processing.

1280.227 Export.

1280.228 Imports.

1280.229 Qualified State Sheep Board.

1280.230 Collection.

1280.231 Prohibition on use of funds.

Reports, Books, and Records

1280.232 Reports.

1280.233 Books and records.

1280.234 Use of information.

1280.235 Confidentiality.

Miscellaneous

1280.240 Right of the Secretary.

1280.241 Proceedings after termination.

1280.242 Effect of termination or

amendment.

1280.243 Personal liability.

1280.244 Patents, copyrights, invention,

and publication.

1280.245 Amendments.

1280.246 Separability.

Subpart A—Sheep and Wool

Promotion, Research, Education, and

Information Order

Definitions

§ 1280.101 Act.

The term Act means the Sheep

Promotion, Research, and Information

Act of 1994, 7 U.S.C. 7101–7111; Public

Law No. 103–107; 108 Statute 4210,

enacted October 22, 1994, and any

amendments thereto.

§ 1280.102 Board.

The term Board means the National

Sheep Promotion, Research, and

Information Board established pursuant

to § 1280.201.

§ 1280.103 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.

§ 1280.104 Certified organization.

The term certified organization means

any organization that has been certified

by the Secretary pursuant to this part as

being eligible to submit nominations for

membership on the Board.

§ 1280.105 Collecting person.

The term collecting person means any

person who is responsible for collecting

an assessment pursuant to the Act, this

subpart and regulations prescribed by

the Board and approved by the

Secretary, including processors and any

other persons who are required to remit

assessments to the Board pursuant to

this part, except that a collecting person

who is a market agency; i.e.,

commission merchant, auction market,

or livestock market in the business of

receiving such sheep or sheep products

for sale on commission for or on behalf

of a producer or feeder shall pass the

collected assessments on to the

subsequent purchaser pursuant to the

Act, this subpart and the regulations

prescribed by the Board and approved

by the Secretary.

§ 1280.106 Consumer information.

The term consumer information

means nutritional data and other

information that would assist

consumers and other persons in making

evaluations and decisions regarding the

purchase, preparation, or use of sheep

products.

§ 1280.107 Customs Service.

The term Customs Service means the

U.S. Customs Service of the Department

of the Treasury.

§ 1280.108 Degreased wool.

The term degreased wool means wool

from which the bulk of impurities has

been removed by processing.

§ 1280.109 Department.

The term Department means the U.S.

Department of Agriculture.

§ 1280.110 Education.

The term education means activities

providing information relating to the

sheep industry or sheep products to

producers, feeders, importers,

consumers, and other persons.
19518 Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations

§ 1280.111 Executive Committee.

The term Executive Committee means

the Executive Committee of the Board

established under § 1280.216.

§ 1280.112 Exporter.

The term exporter means any person

who exports domestic live sheep or

greasy wool from the United States.

§ 1280.113 Feeder.

The term feeder means any person

who feeds lambs until the lambs reach

slaughter weight.

§ 1280.114 Greasy wool.

The term greasy wool means wool that

has not been washed or otherwise

cleaned.

§ 1280.115 Handler.

The term handler means any person

who purchases and markets greasy

wool.

§ 1280.116 Importer.

The term importer means any person

who imports sheep or sheep products

into the United States.

§ 1280.117 Industry information.

The term industry information means

information and programs that would

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.

§ 1280.118 National feeder organization.

The term national feeder organization

means any organization of feeders that

has been certified by the Secretary

pursuant to the Act and this part as

being eligible to submit nominations for

membership on the Board.

§ 1280.119 Part and subpart.

Part means the Sheep and Wool

Promotion, Research, Education, and

Information Order and all rules and

regulations issued pursuant to the Act

and the Order, and the Order itself shall

be a ‘‘subpart’’ of such part.

§ 1280.120 Person.

The term person means any

individual, group of individuals,

partnership, corporation, association,

cooperative, or any other legal entity.

§ 1280.121 Processor.

The term processor means any person

who slaughters sheep or processes

greasy wool into degreased wool.

§ 1280.122 Producer.

The term producer means any person,

other than a feeder, who owns or

acquires ownership of sheep.

§ 1280.123 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.

§ 1280.124 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.

§ 1280.125 Pulled wool.

The term pulled wool means wool

that is pulled from the skin of

slaughtered sheep.

§ 1280.126 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

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 one

QSSB shall exist in any State at any one

time.

§ 1280.127 Raw wool.

The term raw wool means greasy

wool, pulled wool, degreased wool, or

carbonized wool.

§ 1280.128 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.

§ 1280.129 Secretary.

The term Secretary means the

Secretary of Agriculture of the United

States or any other officer or employee

of the Department to whom authority

has been delegated, or to whom

authority may be delegated, to act in the

Secretary’s stead.

§ 1280.130 Sheep.

The term sheep means ovine animals

of any age, including lambs.

§ 1280.131 Sheep products.

The term sheep products means

products produced in whole or in part

from sheep, including wool and

products containing wool fiber.

§ 1280.132 State.

The term State means each of the 50

States.

§ 1280.133 Unit.

The term unit means each State, group

of States, or class designation that is

represented on the Board.

§ 1280.134 United States.

The term United States means the 50

States and the District of Columbia.

§ 1280.135 Wool.

The term wool means the fiber from

the fleece of a sheep.

§ 1280.136 Wool products.

The term wool products means

products produced, in whole or in part,

from wool and products containing

wool fiber.

National Sheep Promotion, Research,

and Information Board

§ 1280.201 Establishment and membership

of the Board.

There is hereby established a National

Sheep Promotion, Research, and

Information Board (Board) of 120

members. Members of the Board shall be

appointed by the Secretary from

nominations submitted in accordance

with this subpart. The seats shall be

apportioned as follows:

(a) Producers: For purposes of

nominating producers to the Board,

each State shall be represented by the

following number of members:

Unit

Board

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
Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations 19519

Unit

Board

members

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 by 10 members.

(c) Importers. Importers shall be

represented by 25 members.

(d) Alternates. A unit represented by

only one producer member may have an

alternate member appointed to ensure

representation at meetings of the Board.

§ 1280.202 Nominations.

(a) Producers. The Secretary shall

appoint producers and alternates to

represent units as specified under

§ 1280.201(a) of this subpart from

nominations submitted by organizations

certified under § 1280.207. A certified

organization may submit only

nominations for producer

representatives and alternates if

appropriate from the membership of the

organization for the unit in which the

organization operates. To be represented

on the Board, each certified organization

shall submit to the Secretary at least 1.5

nominations for each seat on the Board

for which the unit is entitled to

representation. If a unit is entitled to

only one seat on the Board, the unit

shall submit at least two nominations

for the appointment.

(b) Feeders. The Secretary shall

appoint representatives of the feeder

sheep industry to seats established

under § 1280.201(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 to which the

feeder sheep industry is entitled.

(c) Importers. The Secretary shall

appoint importers to seats established

under § 1280.201(c) from nominations

submitted by qualified organizations

that represent importers. The Secretary

shall receive at least 1.5 nominations for

each appointment to the Board to which

importers are entitled.

(d) As soon as practicable, the

Secretary shall obtain nominations from

certified organizations. If no

organization is certified in a unit the

Secretary may use other means to obtain

nominations. A certified organization

shall only submit nominations for

positions on the Board representing

units in which such certified

organization can establish that it is

certified as eligible to submit

nominations for representation of that

unit of individual producers, feeders, or

importers residing in that unit.

(e) After the establishment of the

initial Board, the Department shall

announce when a vacancy does or will

exist. Nominations shall be initiated not

less than 6 months before the expiration

of the terms of the members whose

terms are expiring, in the manner

described in § 1280.205(b). In the case of

vacancies due to reasons other than the

expiration of term of office, successor

Board members shall be appointed

pursuant to § 1280.206.

(f) Where there is more than one

eligible organization representing

producers, feeders, or importers in a

State or unit, they may caucus and

jointly nominate a minimum of 1.5

qualified persons for each position

representing that State or unit on the

Board for which a member is to be

appointed. If joint agreement is not

reached with respect to any such

nominations, or if no caucus is held,

each certified organization may submit

nominations for each appointment to be

made to represent that State or unit.

(g) Nominations should be submitted

in order of preference and, for the initial

Board, in order of preference for

staggered terms. If the Secretary rejects

any nominations submitted and there

are insufficient nominations submitted

from which appointments can be made,

the Secretary may request additional

nominations under paragraphs (a), (b),

or (c) of this section.

§ 1280.203 Nominee’s agreement to serve.

Any producer, feeder, or importer

nominated to serve on the Board, or as

an alternate, shall file with the Secretary

at the time of the nomination a written

agreement to:

(a) Serve on the Board if appointed;

(b) Disclose any relationship with any

organization that operates a qualified

State or regional program or has a

contractual relationship with the Board;

and

(c) Withdraw from participation in

deliberations, decision making, or

voting on matters that concern the

relationship disclosed under paragraph

(b) of this section.

§ 1280.204 Appointment.

From the nominations made pursuant

to § 1280.202 above, the Secretary shall

appoint the members of the Board on

the basis of representation provided in

§ 1280.201 above.

§ 1280.205 Method of obtaining

nominations.

(a) Initially Established Board.

(1) Producer and Alternate

Nominations. The Secretary shall

solicit, from organizations certified

under § 1280.207, nominations for each

producer’s or alternate member’s seat on

the initially-established Board to which

a unit is entitled. If no such organization

exist, the Secretary shall solicit

nominations for appointments in such

manner as the Secretary determines

appropriate.

(2) Feeder and Importer Nominations.

The Secretary shall solicit, from

certified organizations that represent

feeders and importers, nominations for

each seat to which feeders or importers

are entitled. If no such organization

exists, the Secretary shall solicit

nominations for appointments in such

manner as the Secretary determines

appropriate. In determining whether an

organization is eligible to submit

nominations under this subparagraph,

the Secretary shall determine whether:

(A) The organization’s active

membership includes a significant

number of feeders or importers in

relation to the total membership of the

organization;

(B) There is evidence of stability and

permanency of the organization; and

(C) The organization has a primary

and overriding interest in representing

the feeder or importer segment of the

sheep industry.

(b) Subsequent Appointment.

(1) Producer Nominations. The

solicitation of nominations for

subsequent appointment to the Board

from eligible organizations certified

under § 1280.207 shall be initiated by

the Secretary, with the Board securing

the nominations for the Secretary.

(2) Feeder and Importer Nominations.

The solicitation of feeder and importer
19520 Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations

nominations for subsequent

appointment to the Board shall be made

by the Secretary from organizations

certified in accordance with paragraph

(a)(2) of this section.

§ 1280.206 Vacancies.

To fill any vacancy occasioned by the

death, removal, resignation, or

disqualification of any member of the

Board, the Secretary shall appoint a

successor from the most recent list of

nominations for the position or from

nominations submitted by the Board.

§ 1280.207 Certification of organizations.

(a) In general. The eligibility of any

State organization to represent

producers and to participate in the

making of nominations under this

subpart shall be certified by the

Secretary. The Secretary shall certify

any State organization that the Secretary

determines meets the eligibility criteria

established under paragraph (b) of this

section. An eligibility determination by

the Secretary shall be final.

(b) Basis for Certification.

Certification shall be based upon, in

addition to other available information,

a factual report submitted by the

organization that shall contain

information considered relevant and

specified by the Secretary, including:

(1) The geographic territory covered

by the active membership of the

organization;

(2) 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;

(3) Evidence of stability and

permanency of the organization;

(4) Sources from which the operating

funds of the organization are derived;

(5) The functions of the organization;

and

(6) The ability and willingness of the

organization to further the aims and

objectives of the Act.

(c) Primary Considerations. A primary

consideration in determining the

eligibility of an organization under this

paragraph shall be whether:

(1) The membership of the

organization consists primarily of

producers who own a substantial

quantity of sheep; and

(2) An interest of the organization is

in the production of sheep.

§ 1280.208 Term of office.

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 two

consecutive 3-year terms, except that

elected officers shall not be subject to

the term limitation while they hold

office.

§ 1280.209 Compensation.

Board members shall serve without

compensation, but shall be reimbursed

for their reasonable expenses incurred

in performing their duties as Board

members.

§ 1280.210 Removal.

If the Secretary determines that any

person appointed under this part fails to

perform his or her duties properly or

engages in acts of dishonesty or willful

misconduct, the Secretary shall remove

the person from office. The Secretary

may remove a person appointed or

certified under this part, or any

employee of the Board, if the Secretary

determines that the person’s continued

service would be detrimental to the

purposes of the Act.

§ 1280.211 Powers and duties of the

Board.

The Board shall have the following

powers and duties:

(a) To elect officers of the Board,

including a chairperson, vice

chairperson, and secretary/treasurer;

(b) To administer this subpart in

accordance with its terms and

provisions;

(c) To recommend regulations to

effectuate the terms and provisions of

this subpart;

(d) To hold at least one annual

meeting and any additional meetings it

deems appropriate;

(e) To elect members of the Board to

serve on the Executive Committee;

(f) To approve or reject budgets

submitted by the Executive Committee;

(g) To submit budgets to the Secretary

for approval;

(h) To contract with entities, if

necessary, to implement plans or

projects in accordance with the Act;

(i) To conduct programs of promotion,

research, consumer information,

education, industry information, and

producer information;

(j) To receive, investigate, and report

to the Secretary complaints of violations

of this subpart;

(k) To recommend to the Secretary

amendments to this subpart;

(l) To provide the Secretary with prior

notice of meetings of the Board to

permit the Secretary or a designated

representative to attend such meetings;

(m) To provide not less than annually

a report to producers, feeders, and

importers, accounting for the funds

expended by the Board, and describing

programs implemented under the Act;

and to make such report available to the

public upon request;

(n) To establish seven regions that, to

the extent practicable, contain

geographically contiguous States and

approximately equal numbers of sheep

producers and sheep production;

(o) To employ or retain necessary

staff; and

(p) To invest funds in accordance

with § 1280.214.

§ 1280.212 Budgets.

(a) In general. The Board shall review

the budget 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. The

Board shall submit the budget to the

Secretary for the Secretary’s approval.

(b) Limitation. No expenditure of

funds may be made by the Board unless

such expenditure is authorized under a

budget or budget amendment approved

by the Secretary.

§ 1280.213 Books and records of the

Board.

The Board shall:

(a) Maintain such books and records,

which shall be made available to the

Secretary for inspection and audit, as

the Secretary may prescribe;

(b) Prepare and submit to the

Secretary, from time-to-time, such

reports as the Secretary may prescribe;

and

(c) Account for the receipt and

disbursement of all funds entrusted to

it. The Board shall cause its books and

records to be audited by an independent

auditor at the end of each fiscal year,

and a report of such audit to be

submitted to the Secretary.

§ 1280.214 Investment of funds.

The Board may invest, pending

disbursement, funds it receives under

this subpart, only in obligations of the

United States or any agency thereof, in

general obligations of any State or any

political subdivision thereof, in any

interest-bearing account or certificate of

deposit of a bank that is a member of the

Federal Reserve System, or in

obligations fully guaranteed as to

principal and interest by the United

States. Any income from any such

investment may be used for any purpose

for which the invested funds may be

used.

§ 1280.215 Use of assessments.

(a) Assessments received by the Board

shall be used by the Board:
Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations 19521

(1) To fund promotion, research,

education, and information plans and

projects authorized under this subpart,

including promotion plans and projects

which make specific reference to

domestic sheep and sheep products

originating or being produced and/or

marketed in the U.S., except that the

combined expenditures for such

promotion plans and projects involving

domestic country of origin shall be

limited to no more than the combined

domestic assessments collected on

sheep and sheep products and the

percentage of domestic assessments

spent on the promotion of domestic

sheep and sheep products shall not

exceed the percentage of import

assessments spent on the generic

promotion of sheep and sheep products;

and

(2) For the payment of expenses

incurred in administering this subpart,

including a reasonable reserve.

(b) The Board shall reimburse the

Secretary, from assessments collected,

for costs incurred in implementing and

administering the Order as provided for

under the Act.

Executive Committee

§ 1280.216 Establishment.

The Board shall establish an

Executive Committee of the Board to

assist the Board in the administration of

the terms and provisions of this subpart,

under the direction of the Board, and

consistent with the policies determined

by the Board.

§ 1280.217 Membership.

The Executive Committee shall be

comprised of 14 members:

(a) Eleven members of the Executive

Committee shall be elected by the Board

annually. Of these members:

(1) One member shall represent each

of the seven regions established under

§ 1280.211(n) for a total of seven

members representing producers;

(2) One member shall represent

feeders; and

(3) Three members shall represent

importers.

(b) The remaining three members of

the Executive Committee shall be the

elected officers of the Board.

§ 1280.218 Powers and duties.

(a) Plans and Projects. The Executive

Committee shall develop plans or

projects of promotion and advertising,

research, consumer information,

education, industry information, and

producer information, which plans or

projects shall be paid for with

assessments collected by the Board. The

plans or projects shall not become

effective until approved by the

Secretary.

(b) Budgets. The Executive Committee

shall be responsible for developing and

submitting to the Board, for Board

approval, budgets on a fiscal year basis

of the Board’s anticipated expenses and

disbursements, including the estimated

costs of advertising and promotion,

research, consumer information,

education, industry information, and

producer information projects. The

Board shall approve or disapprove such

budgets and, if approved, shall submit

them to the Secretary for the Secretary’s

approval.

§ 1280.219 Term of office.

Terms of appointment to the

Executive Committee shall be for 1 year.

§ 1280.220 Chairperson.

The Chairperson of the Board shall

serve as chairperson of the Executive

Committee.

§ 1280.221 Quorum.

A quorum of the Executive Committee

shall consist of eight members.

§ 1280.222 Vacancies.

To fill any vacancy caused by the

death, removal, resignation, or

disqualification of any member of the

Executive Committee, the Board shall

elect a successor for the position

pursuant to § 1280.217.

Expenses

§ 1280.223 Expenses.

(a) The Board shall be responsible for

all expenses of the Board and the

Executive Committee.

(b) Contracts and Agreements. Any

contract or agreement entered into by

the Board shall provide that:

(1) The contracting party shall

develop and submit to the Board a plan

or project of promotion, research,

education, consumer information,

industry information, and producer

information, together with a budget or

budgets that shall show estimated costs

to be incurred for such plan or project;

and

(2) No plan, project, contract, or

agreement shall become effective until it

has been approved by the Secretary.

(c) The contracting party shall:

(1) keep accurate records of all of its

transactions;

(2) account for funds received and

expended, including staff time, salaries,

and expenses expended on behalf of

Board activities;

(3) make periodic reports to the Board

of activities conducted; and

(4) make such other reports as the

Board or the Secretary may require.

Assessments

§ 1280.224 Sheep purchases.

(a) In general. Each person making

payment to a producer or feeder for

sheep purchased from the producer or

feeder shall be a collecting person and

shall collect an assessment from the

producer or feeder on each sheep sold

by the producer or feeder. Each such

producer or feeder shall pay such

assessment to the collecting person at

the rate set forth in paragraph (d) of this

section.

(b) Remittances. Each processor

making payment to a producer, feeder,

or collecting person for sheep purchased

from the producer, feeder, or collecting

person shall be a collecting person and

shall collect an assessment from the

producer, feeder, or other collecting

person on each sheep sold by the

producer, feeder, or collecting person,

and each such producer, feeder, or

collecting person shall pay such

assessment to the processor at the rate

set forth in paragraph (d) in this section,

and such processor shall remit the

assessment to the Board.

(c) Processing. Any person who

purchases sheep for processing shall

collect the assessment from the seller

and remit the assessment to the Board.

(d) Rate. Except as otherwise

provided, the rate of assessment shall be

1 cent per pound of live sheep sold. The

rate of assessment may be raised or

lowered no more than 0.15 of a cent in

any 1 year as recommended by the

Executive Committee and approved by

the Board and the Secretary. However,

if the Board makes a recommendation to

the Secretary to raise or lower the

assessment rates, the domestic rate and

the import rate must be raised or

lowered simultaneously by an

equivalent amount. The rate of

assessment shall not exceed 21⁄2 cents

per pound.

§ 1280.225 Wool purchases.

(a) In general. Each person making

payment to a producer, feeder, or

handler of wool for wool purchased

from the producer, feeder, or handler

shall be a collecting person and shall

collect an assessment from the

producer, feeder, or handler on each

pound of greasy wool sold. The

producer, feeder, or handler shall pay

such assessment to the collecting person

at the rate set forth in (d) of this section.

(b) Remittances. Each processor

making payment to a producer, feeder,

handler, or collecting person for wool

purchased from the producer, feeder,

handler, or collecting person shall be a

collecting person and shall collect an

assessment from the producer, feeder,
19522 Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations

handler, or other collecting person on

all wool sold by the producer, feeder,

handler, or collecting person, and each

such producer, feeder, handler, or

collecting person shall pay such

assessment to the processor at the rate

set forth in paragraph (d) of this section

and such processor shall remit the

assessment to the Board.

(c) Processing. Any person purchasing

greasy wool for processing shall collect

the assessment and remit the assessment

to the Board.

(d) Rate. Except as otherwise

provided, the rate of assessment shall be

2 cents per pound. The rate of

assessment may be raised or lowered no

more than 0.2 of a cent per pound in

any 1 year as recommended by the

Executive Committee and approved by

the Board and the Secretary. However,

if the Board makes a recommendation to

the Secretary to raise or lower the

assessment rates, the domestic rate and

the import rate must be raised or

lowered simultaneously by an

equivalent amount. The rate of

assessment shall not exceed 4 cents per

pound of greasy wool.

§ 1280.226 Direct processing.

Each person who processes or causes

to be processed sheep or sheep products

of that person’s own production, and

markets such sheep or sheep products,

shall pay an assessment on such sheep

or sheep products at the time of sale at

a rate equivalent to the rate established

in § 1280.224(d) or § 1280.225(d), as

appropriate, and shall remit such

assessment to the Board.

§ 1280.227 Export.

Each person who exports live sheep

or greasy wool shall remit the

assessment on such sheep or greasy

wool at the time of export, at a rate

equivalent to the rate established in

§ 1280.224(d) or § 1280.225(d), as

appropriate, and shall remit such

assessment to the Board.

§ 1280.228 Imports.

(a) In general. Each person who

imports sheep or sheep products or who

imports wool or products containing

wool (with the exception of raw wool)

into the United States shall pay an

assessment to the Board.

(b) Collection. Customs is authorized

to collect and remit such assessment to

the Secretary for disbursement to the

Board.

(c) Rate for Sheep and Sheep

Products. The assessment rate for sheep

shall be 1 cent per pound of live sheep.

The assessment rate for sheep products

shall be the equivalent of 1 cent per

pound of live sheep, as determined by

the Secretary in consultation with the

domestic sheep industry. Such rates

may be raised or lowered no more than

0.15 cent per pound in any 1 year as

recommended by the Executive

Committee and approved by the Board

and the Secretary, but shall not exceed

21⁄2 cents per pound. However, if the

Board makes a recommendation to the

Secretary to raise or lower the

assessment rates, the domestic rate and

the import rate must be raised or

lowered simultaneously by an

equivalent amount.

(d) Rate for Wool and Wool Products.

The assessment rate for wool and

products containing wool shall be 2

cents per pound of degreased wool or

the equivalent of degreased wool. The

rate of assessment may be raised or

lowered no more than 0.2 cents per

pound in any 1 year, as recommended

by the Executive Committee and

approved by the Board and the

Secretary, but shall not exceed 4 cents

per pound of degreased wool or the

equivalent. However, if the Board makes

a recommendation to the Secretary to

raise or lower the assessment rates, the

domestic rate and the import rate must

be raised or lowered simultaneously by

an equivalent amount.

(e) The Secretary shall issue

regulations regarding the assessment

rates for imported sheep and sheep

products. The Secretary may exclude

from assessment certain imported

products that contain de minimis levels

of sheep or sheep products and waive

the assessment on such products.

§ 1280.229 Qualified State Sheep Boards.

(a) Except as provided in paragraph

(b) of this section, 20 percent of the total

assessments collected by the Board on

the marketings of domestic sheep and

domestic sheep products in any 1 year

from a State shall be returned to the

QSSB of the State.

(b) No QSSB shall receive less than

$2,500 under paragraph (a) of this

section in any 1 year.

(c) The Board shall establish

procedures with the approval of the

Secretary to account for funds expended

pursuant to paragraphs (a) and (b) of

this section.

§ 1280.230 Collection.

(a) Each person responsible for the

collection and remittance to the Board

of assessments under this subpart shall

do so on a monthly basis, unless the

Board, with the approval of the

Secretary, has specifically authorized

otherwise.

(b) Late Payment Charges. Any unpaid

assessments due the Board or from a

person responsible for remitting

assessments to the Board, shall be

increased by 2 percent each month

beginning with the day after the date

such assessments were due under this

subpart. Any assessments or late

payment charges that remain unpaid

shall be increased at the same rate on

the corresponding day of each month

thereafter until paid.

(c) Any unpaid assessments due to the

Board pursuant to § 1280.224,

§ 1280.225, § 1280.226, and § 1280.227

shall be increased 2 percent each month

beginning with the day following the

date such assessments were due. Any

remaining amount due, which shall

include any unpaid charges previously

made pursuant to this paragraph, shall

be increased at the same rate on the

corresponding day of each month

thereafter until paid. For the purposes of

this paragraph, any assessment

determined at a date later than the date

prescribed by this subpart because of a

person’s failure to submit a timely

report to the Board shall be considered

to have been payable by the date it

would have been due if the report had

been timely filed. The date of payment

is the applicable postmark date or the

date of receipt by the Board, whichever

is earlier.

(d) If the Board is not in place by the

date the first assessments are to be

collected, the Secretary shall have the

authority to receive assessments and

invest them on behalf of the Board, and

shall pay such assessments and any

interest earned to the Board when it is

formed. The Secretary shall have the

authority to promulgate rules and

regulations concerning assessments and

the collection of assessments if the

Board is not in place or is otherwise

unable to develop such rules and

regulations.

§ 1280.231 Prohibition on use of funds.

(a) Except as otherwise provided in

paragraph (b) of this section, no funds

collected by the Board under this

subpart shall be used in any manner for

the purpose of influencing any action or

policy of the United States Government,

any foreign or State Government, or any

political subdivision thereof.

(b) The prohibition in paragraph (a) of

this section shall not apply:

(1) To the development and

recommendation of amendments to this

subpart; or

(2) To 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
Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations 19523

information, or producer information

activities under this subpart;

(c) A plan or project conducted

pursuant to this title shall not make

false or misleading claims on behalf of

sheep or sheep products or against a

competing product.

(d) No such plans or projects shall be

undertaken to promote or advertise any

sheep or sheep products by brand or

trade name without the approval of the

Board and the concurrence of the

Secretary.

Reports, Books, and Records

§ 1280.232 Reports.

(a) Each collecting person, including

processors and other persons required to

remit assessments to the Board pursuant

to § 1280.224(b) for live sheep, each

person who markets sheep products of

that person’s own production and each

exporter of sheep shall report to the

Board information pursuant to

regulations prescribed by the Board and

approved by the Secretary. Such

information may include:

(1) The number of sheep purchased,

initially transferred or which, in any

other manner, are subject to the

collection of assessment, and the dates

of such transaction;

(2) The number of sheep imported or

exported, or the equivalent thereof

sheep products imported;

(3) The amount of assessment

remitted;

(4) An explanation for the remittance

of any assessment that is less than the

pounds of sheep multiplied by the

assessment rate; and

(5) The date any assessment was paid.

(b) Each collecting person, including

processors and other persons required to

remit assessments to the Board pursuant

to § 1280.225(b) for wool purchased

from the producer or handler of wool or

wool products, each person purchasing

greasy wool for processing, each

importer of wool or wool products

(except raw wool), each exporter of

greasy wool, and each person who

markets wool of that person’s own

production shall report to the Board

information pursuant to regulations

prescribed by the Board and approved

by the Secretary. Such information may

include:

(1) The amount of wool purchased,

initially transferred or in any other

manner subject to the collection of

assessment, and the dates of such

transaction;

(2) The amount of wool imported

(except raw wool) or the equivalent

thereof of wool products imported or

the amount of greasy wool exported;

(3) The amount of assessment

remitted;

(4) An explanation for the remittance

of an assessment that is less than the

pounds of wool multiplied by the

assessment rate; and

(5) The date any assessment was paid.

§ 1280.233 Books and records.

(a) Each collecting person, including

processors and other persons required to

remit assessments to the Board, each

importer of sheep or sheep products

(except raw wool), and exporter of

sheep or greasy wool, and each person

who markets sheep products of that

person’s own production, shall maintain

and make available for inspection such

books and records as may be required by

regulations prescribed by the Board and

approved by the Secretary, including

records necessary to verify any required

reports. Such records shall be

maintained for the period of time

prescribed by the regulations issued

hereunder.

(b) Document Evidencing Payment of

Assessments. Each collecting person

responsible for collecting an assessment

paid pursuant to this subpart, other than

a person who slaughters sheep or

markets sheep products of his or her

own production for sale, is required to

give the person or collecting person

from whom the collecting person

collected an assessment written

evidence of payment of the assessments

paid pursuant to this subpart. Such

written evidence serving as a receipt

shall include:

(1) Name and address of the collecting

person;

(2) Name of the producer who paid

the assessment;

(3) Number of head of sheep or

pounds of wool sold;

(4) Total assessments paid by the

producer;

(5) Date; and

(6) Such other information as the

Board, with the approval of the

Secretary, may require.

§ 1280.234 Use of information.

Information from records or reports

required pursuant to this subpart shall

be made available to the Secretary as is

appropriate to the administration or

enforcement of the Act, this subpart or

any regulation issued under the Act. In

addition, the Secretary shall authorize

the use under this part of information

that is accumulated under laws or

regulations other than the Act or

regulations issued under the Act

regarding persons paying producers,

feeders, importers, handlers, or

processors.

§ 1280.235 Confidentiality.

(a) All information from records or

reports required pursuant to this subpart

shall be kept confidential by all officers

and employees of the Department and of

the Board. Such information may be

disclosed only if the Secretary considers

the information relevant, the

information is disclosed only in a suit

or administrative hearing brought at the

direction or on the request of the

Secretary, or to which the Secretary or

any officer of the United States is a

party, and the information relates to the

Act.

(b) Administration. No information

obtained under the authority of this

subpart may be made available to any

agency or officer of the Federal

Government for any purpose other than

the implementation of the Act and any

investigatory or enforcement action

necessary for the implementation of the

Act.

(c) General Statements. Nothing in

paragraph (a) of this section may be

deemed to prohibit:

(1) The issuance of general

statements, based on the reports of the

number of persons subject to this

subpart or statistical data collected

therefrom, which statements do not

identify the information furnished by

any person; or

(2) The publication, by direction of

the Secretary, of the name of any person

violating this subpart and a statement of

the particular provisions of this subpart

violated by such person.

(d) Penalty. Any person who willfully

violates the provisions of this section,

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, that person shall be

removed from office.

Miscellaneous

§ 1280.240 Right of the Secretary.

All fiscal matters, programs or

projects, bylaws, rules or regulations,

reports, or other substantive actions

proposed, and prepared by the Board

shall be submitted to the Secretary for

approval.

§ 1280.241 Proceedings after termination.

(a) Upon the termination of this

subpart, the Board shall recommend not

more than five of its members to the

Secretary to serve as trustees for the

purpose of liquidating the affairs of the

Board. Such persons, upon designation

by the Secretary, shall become trustees

of all the funds and property owned, in

the possession of or under the control of

the Board, including any claims of the

Board against third parties that exist at

the time of such termination.

(b) The trustees shall:
19524 Federal Register / Vol. 61, No. 86 / Thursday, May 2, 1996 / Rules and Regulations

(1) Act as trustees until discharged by

the Secretary;

(2) Carry out the obligations of the

Board under any contracts or

agreements entered into by the Board

pursuant to § 1280.223(b);

(3) From time to time account for all

receipts and disbursements and deliver

all property on hand, together with all

books and records of the Board and of

the trustees, to such persons as the

Secretary may direct; and

(4) Upon the request of the Secretary,

execute such assignment of other

instruments necessary or appropriate to

transfer to such persons full title and

right to all of the funds, property, and

claims of the Board or the trustees

pursuant to this subpart.

(c) Any person to whom funds,

property or claims have been transferred

or delivered pursuant to this subpart

shall be subject to the same obligation

imposed upon the Board and upon the

trustees.

(d) Any residual funds not required to

pay the necessary costs of liquidation

shall be turned over to the Secretary to

be used, to the extent practicable, for

continuing one or more of the

promotion, research, consumer

information, education, industry

information, and producer information

plans or projects authorized pursuant to

this subpart.

§ 1280.242 Effect of termination or

amendment.

Unless otherwise expressly provided

by the Secretary, the termination of this

subpart or of any regulation issued

pursuant thereto, or the issuance of any

amendment to either thereof, shall not:

(a) Affect or waive any right, duty,

obligation, or liability that has arisen or

may hereafter arise in connection with

any provision of this subpart or any

regulation issued thereunder; or

(b) Release or extinguish any violation

of this subpart or any regulation issued

thereunder; or

(c) Affect or impair any rights or

remedies of the United States, the

Secretary or any person with respect to

any such violation.

§ 1280.243 Personal liability.

No member, employee, or agent of the

Board, including employees, agents, or

Board members of the QSSB, acting

pursuant to the authority provided in

this subpart, shall be held personally

responsible, either individually or

jointly, in any way whatsoever, to any

person for errors in judgment, mistakes,

or other acts of either commission or

omission, of such member, employee, or

agent except for acts of dishonesty or

willful misconduct.

§ 1280.244 Patents, copyrights, inventions,

and publication.

Any patents, copyrights, inventions,

or publications developed through the

use of funds remitted to the Board under

the provisions of this subpart shall be

the property of the United States

Government as represented by the

Board, and shall, along with any rents,

royalties, residual payments, or other

income from the rental, sales, leasing,

franchising, or other uses of such

patents, copyrights, inventions, or

publications, inure to the benefit of the

Board. Upon termination of this subpart,

§ 1280.240 shall apply to determine

disposition of all such property.

§ 1280.245 Amendments.

Amendments to the subpart may be

proposed, from time to time, by the

Board or by any interested person

affected by the provisions of the Act,

including the Secretary.

§ 1280.246 Separability.

If any provision of this subpart is

declared invalid or its applicability to

any person or circumstances is held

invalid, the validity of the remainder of

this subpart of the applicability thereof

to other persons or circumstances shall

not be affected thereby.

Dated: April 26, 1996.

Lon Hatamiya,

Administrator.

[FR Doc. 96–10887 Filed 5–1–96; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the

Currency

12 CFR Parts 5, 20, and 28

[Docket No. 96–11]

RIN 1557–AB26

International Banking Activities

AGENCY: Office of the Comptroller of the

Currency, Treasury.

ACTION: Final rule.

SUMMARY: The Office of the Comptroller

of the Currency (OCC) is

comprehensively revising its regulations

governing the international operations

of national banks and the operation of

foreign banks through Federal branches

and agencies in the United States. The

revision is part of the OCC’s Regulation

Review Program, which seeks to

simplify OCC regulations and reduce

unnecessary compliance costs,

consistent with maintaining safety and

soundness and furthering the other

responsibilities of the OCC. The final

rule streamlines and consolidates into

one part of the Code of Federal

Regulations substantially all provisions

relating to international banking, and

clarifies and simplifies their various

requirements.

The final rule also updates the rules

to implement provisions of the Foreign

Bank Supervisory Enhancement Act of

1991 (FBSEA) and the Riegle-Neal

Interstate Banking and Branching

Efficiency Act of 1994 (Interstate Act)

relating to Federal branches and

agencies.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Raija Bettauer, Counselor for

International Activities, (202) 874–0680,

Raija.Bettauer@OCC.treas.gov.; Laurie

Sears, Attorney, International Activities

(202) 874–0680,

Laurie.Sears@OCC.treas.gov.; Timothy

M. Sullivan, Director, International

Banking and Finance, (202) 874–4730,

Tim.Sullivan@OCC.treas.gov.;

Comptroller of the Currency, 250 E

Street, SW, Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

Background

On July 5, 1995, the OCC published

a notice of proposed rulemaking (60 FR

34907) (proposal) proposing to revise its

regulations governing the international

operations of national banks and the

operation of foreign banks through

Federal branches and agencies in the

United States (12 CFR parts 20 and 28).

The proposal was another component of

the OCC’s Regulation Review Program

(Program). The goal of the Program is to

review all of the OCC’s rules and to

eliminate provisions that impose

unnecessary regulatory burden and do

not contribute significantly to

maintaining the safety and soundness of

national banks (and Federal branches

and agencies) or to accomplishing the

OCC’s other statutory responsibilities.

Another goal of the Program is to clarify

the OCC’s regulations and to better

communicate the standards that the

rules intend to convey.

The proposal sought to achieve those

goals and also to update the OCC’s rules

to implement provisions in the FBSEA

(Pub. L. 102–242, title II, 105 Stat. 2286)

and Interstate Act (Pub. L. 103–328, 108

Stat. 2338) relating to Federal branches

and agencies of foreign banks. It also

added a mechanism for the OCC to

obtain information on foreign banking

organizations to improve the OCC’s

safety and soundness oversight of

Federal branches and agencies.

The proposal further sought to reduce

the complexity of the existing regulatory