[Federal Register Volume 61, Number 126 (Friday, June 28, 1996)]
[Rules and Regulations]
[Pages 33644-33646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16578]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1280

[Docket Number LS-96-004]


Sheep Promotion, Research, and Information Program

AGENCY: Agricultural Marketing Service; USDA.

ACTION: Final rule.

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SUMMARY: This rule suspends indefinitely provisions of the Order and 
the Certification and Nomination Regulations, and postpones 
indefinitely the announced effective date of July 1, 1996, for 
assessment collection in the Rules and Regulations, and the assessment 
provisions of the Order. The Department of Agriculture (Department) 
conducted a review and evaluated the conduct and results of the 
February 6, 1996, nationwide sheep referendum. The Department 
discovered inconsistencies in the application of the referendum rules, 
and this action is the result of the discovery of these 
inconsistencies. A second nationwide referendum will be conducted among 
eligible sheep producers, sheep feeders, and importers of sheep and 
sheep products on a date to be announced by the Department.

EFFECTIVE DATE: This document is effective June 29, 1996.
    The effective date of July 1, 1996 for Subpart A, Secs. 1280.224 
through 1280.228 in Subpart A, and Subpart B, Secs. 1280.301 through 
1280.318 is postponed indefinitely.
    Additionally, in Subpart A, Secs. 1280.101 through 1280.126, 
Secs. 1280.201 through 1280.223, Secs. 1280.229 through 1280.235 and 
Secs. 1280.240 through 1280.246, and Subpart C, Secs. 1280.400 though 
1280.414 are suspended indefinitely.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief; Marketing 
Programs Branch, Room 2606-S; Livestock and Seed Division, AMS, USDA; 
PO Box 96456, Washington, DC 20090-6456. Telephone number 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 Rule--Procedures 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); Final Rule 
and Referendum Order--Procedures for the Conduct of Referendum 
published December 15, 1995 (60 FR 64297); Final Rule--Sheep and Wool 
Promotion, Research, Education, and Information Order published May 2, 
1996 (61 FR 19514); Final Rule--Rules and Regulations published May 9, 
1996, (61 FR 21053); and Final Rule--Certification and Nomination 
Procedures published May 9, 1996 (61 FR 21049).

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act and 
the Paperwork Reduction 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 Sheep Promotion, Research, and Information Act of 1994 (Act (7 
U.S.C. 7101-7111)) 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

[[Page 33645]]

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.
    The information collection requirements contained in the provisions 
of the Order and the Rules and Regulations have been previously 
approved by OMB under OMB control number 0581-0093.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA)(5 U.S.C. 601 et seq.), the Agricultural Marketing Service 
(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 
Sec. 121.601). Additionally, there are approximately 9,000 importers of 
sheep and sheep products, nearly all of which would be classified as 
small businesses.
    The final Order would require that each person who makes payment to 
a sheep producer, feeder, or handler of sheep or sheep products will be 
a collecting person, and is 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 would 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 would 
pay an assessment and remit the assessment to the National Sheep 
Promotion, Research, and Information Board (Board). Any person who 
exports live sheep or greasy wool would 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 wool, would pay an assessment. The U.S. Customs Service (Customs) 
would 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 would be 1 cent per pound on 
live sheep sold and 2 cents per pound on greasy wool sold. Importers 
would 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 would 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 
would 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 could 
be adjusted in accordance with the applicable provisions of the Act.
    This action suspends or postpones the effective date of these 
provisions. Therefore, except for the referendum rules, the imposition 
of program requirements, including collection of assessments and 
reporting and recordkeeping requirements, will be either suspended or 
postponed. A second nationwide referendum will be conducted among 
eligible sheep producers, sheep feeders, and importers of sheep and 
sheep products on a date to be announced by the Department. 
Accordingly, AMS has determined that this action will not have a 
significant economic impact on a substantial number of small entities.

Background

    The Act, enacted October 22, 1994, authorizes the Secretary to 
establish a national sheep and wool promotion, research, education, and 
information program. The program would 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 would 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 would 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, would 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.
    AMS published the final Order (61 FR 19514) on May 2, 1996, to 
implement a national sheep and wool, promotion, research, education, 
and information program designed to strengthen the position of sheep 
and sheep products in the marketplace, as provided for under the Act. 
The effective date of the Order was May 3, 1996, except that the 
collection and remittance sections of the Order--Sec. 1280.224-
Sec. 1280.228--were scheduled to become effective on July 1, 1996. The 
final Rules and Regulations (61 FR 21053), which set forth the 
collection and remittance procedures to be used beginning July 1, 1996, 
and the Certification and Nomination procedures (61 FR 21049; effective 
May 10, 1996), which outline the eligibility criteria and the 
nomination process used to obtain nominations for appointment to the 
Board, which would administer the program, were both published on May 
9, 1996.
    As required by the Act, the Department conducted an up-front 
referendum among eligible domestic sheep producers and sheep feeders, 
as well as importers of sheep and sheep products, to determine if the 
Order, which was the subject of the referendum, would become 
operational. To become effective, the Order had to be approved either 
by a majority of producers, feeders, and importers voting in the 
referendum, or by voters who accounted for at least two-thirds of the 
production represented by persons voting in the referendum. Of the 
19,801 valid ballots cast in the February 6, 1996, referendum, 10,707 
(54 percent) favored implementation of the Order and 9,094 (46 percent) 
opposed implementation of the Order. Although the 54 percent who 
approved the Order accounted for only 40 percent of the sheep voted, 
the majority vote was sufficient to implement the Order. Steps to 
implement the Order were carried out.
    After the referendum was held; however, the Department received a 
substantial number of voter complaints about alleged inconsistencies in 
the application of the referendum rules in conducting the referendum. 
The Department initiated a review of these allegations. Based on 
findings in the ongoing review, which revealed that the referendum 
rules were in fact applied inconsistently, the Department is suspending 
indefinitely provisions of the Order and the Certification and 
Nomination Regulations, and is

[[Page 33646]]

postponing indefinitely the original July 1, 1996, effective date for 
the Order provisions and the Rules and Regulations concerning the 
collection and remittance of assessments. Also, the Department plans to 
conduct a second nationwide referendum among eligible producers, 
feeders, and importers on a date to be announced.
    It is also found and determined upon good cause that it is 
impracticable, unnecessary, and contrary to the public interest to give 
preliminary notice or to engage in further public procedure prior to 
putting this action into effect, and that good cause exists for not 
postponing the effective date of this action until 30 days after 
publication, because: (1) producers, feeders, importers of sheep and 
sheep products, and other collecting persons are aware of this action 
because it was announced in a press release issued by the Secretary on 
May 17, 1996; (2) this action postpones the imposition of regulatory 
requirements on producers, feeders, and importers by suspending the 
provisions of the Order and the certification and nomination 
procedures, and by postponing indefinitely the effective date for the 
Order provisions and the Rules and Regulations for the collection and 
remittance of assessments; and (3) no useful purpose would be served by 
delaying this action.
    Therefore, (1) the effective date of July 1, 1996, for the Rules 
and Regulations governing the assessment collection and remittance 
procedures, published on May 9, 1996, at 61 FR 21053, and for 
Sec. 1280.224-Sec. 1280.228 of the Order published on May 2, 1996, at 
61 FR 19514, is postponed indefinitely, and (2) all sections of the 
Order, except Sec. 1280.224-Sec. 1280.228, published on May 2, 1996, at 
61 FR 19514, and all sections of the Certification and Nomination 
Regulations published on May 9, 1996, at 61 FR 21049 are being 
suspended indefinitely.

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 
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:
    (A) The effective date of July 1, 1996 for Sec. Sec. 1280.224 
through 1280.228 in Subpart A, is postponed indefinitely, and in 
Subpart A, Sec. 1280.101 through Sec. 1280.126, Sec. Sec. 1280.201 
through 1280.223, Sec. Sec. 1280.229 through 1280.235 and 
Sec. Sec. 1280.240 through 1280.246, is suspended indefinitely;
    (B) The effective date of July 1, 1996 for Subpart B, 
Sec. Sec. 1280.301 through 1280.318, is postponed indefinitely; and
    (C) Subpart C, Sec. Sec. 1280.400 through 1280.414, is suspended 
indefinitely.

    Dated: June 25, 1996.
James R. Baker,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-16578 Filed 6-27-96; 8:45 am]
BILLING CODE 3410-02-P