I
103D CONGRESS
2D SESSION
H. R. 5183
To enable producers and feeders of sheep and importers of sheep and sheep
products to develop, finance, and carry out a nationally coordinated
program for sheep and sheep product promotion, research, and informa-
tion, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 5, 1994
Mr. DE LA GARZA (for himself, Mr. ROBERTS, Mr. STENHOLM, Mr. GUNDER-
SON, Mr. ROSE, Mr. SMITH of Oregon, Mr. INSLEE, Mr. COMBEST, Mr.
ALLARD, Mr. SKEEN, Mr. THOMAS of Wyoming, Mr. BONILLA, Mr.
MCINNIS, Mr. CRAPO, Mr. BARLOW, Mr. HOLDEN, Mr. PENNY, Ms.
VUCANOVICH, Mr. VOLKMER, Mr. WILLIAMS, Mr. SMITH of Texas, Mr.
EDWARDS of Texas, Mr. JOHNSON of South Dakota) introduced the fol-
lowing bill; which was referred to the Committee on Agriculture
A BILL
To enable producers and feeders of sheep and importers
of sheep and sheep products to develop, finance, and
carry out a nationally coordinated program for sheep
and sheep product promotion, research, and information,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Sheep Promotion, Re-
search, and Information Act of 1994’’.
SEC. 2. FINDINGS AND DECLARATION OF POLICY.
(a) FINDINGS.—Congress finds that—
(1) sheep and sheep products are important
goods;
(2) the production of sheep and sheep products
play a significant role in the economy of the United
States in that sheep and sheep products are pro-
duced throughout the United States and used by
millions of people throughout the United States and
foreign countries;
(3) sheep and sheep products must be high
quality, readily available, handled properly, and mar-
keted efficiently to ensure that consumers have an
adequate supply of sheep products;
(4) the maintenance and expansion of existing
markets and development of new markets for sheep
and sheep products are vital to the welfare of sheep
producers and persons concerned with marketing,
using, and producing sheep and sheep products, as
well as to the general economy of the United States,
and necessary to ensure the ready availability and
efficient marketing of sheep and sheep products;
(5) there exist established State organizations
conducting sheep and sheep product promotion, re-
search, and industry and consumer education pro-
grams that are invaluable to the efforts of promoting
the consumption of sheep and sheep products;
(6) the cooperative development, financing, and
implementation of a coordinated national program of
sheep and sheep product promotion, research,
consumer information, education, and industry infor-
mation are necessary to maintain and expand exist-
ing markets and develop new markets for sheep and
sheep products; and
(7) sheep and sheep products move in interstate
and foreign commerce, and sheep and sheep prod-
ucts that do not move in such channels of commerce
directly burden or affect interstate commerce in
sheep and sheep products.
(b) POLICY.—It is the policy of Congress that it is
in the public interest to authorize the establishment,
through the exercise of the powers provided in this Act,
of an orderly procedure for developing, financing (through
adequate assessments on sheep and sheep products pro-
duced or imported into the United States), and carrying
out an effective, continuous, coordinated program of pro-
motion, research, consumer information, education, and
industry information designed to—
(1) strengthen the position of the sheep and
sheep product industry in the marketplace;
(2) maintain and expand existing domestic and
foreign markets and uses for sheep and sheep prod-
ucts; and
(3) develop new markets and uses for sheep and
sheep products.
(c) CONSTRUCTION.—Nothing in this Act provides
for the control of production, or otherwise limits, the right
of any person to produce sheep or sheep products.
SEC. 3. DEFINITIONS.
As used in this Act (unless the context clearly re-
quires otherwise):
(1) BOARD.—The term ‘‘Board’’ means the Na-
tional Sheep Promotion, Research, and Information
Board established under section 5(b).
(2) CARBONIZED WOOL.—The term ‘‘carbonized
wool’’ means wool that has been immersed in a bath,
usually of mineral acids or acid salts, that destroys
vegetable matter in the wool, but does not affect the
wool fibres.
(3) 
CONSUMER
INFORMATION.—The 
term
‘‘consumer information’’ means nutritional data and
other information that will assist consumers and
other persons in making evaluations and decisions
regarding the purchase, preparation, or use of sheep
products.
(4) CUSTOMS
SERVICE.—The term ‘‘Customs
Service’’ means United States Customs Service of
the Department of the Treasury.
(5) DEGREASED WOOL.—The term ‘‘degreased
wool’’ means wool from which the bulk of impurities
has been removed by processing.
(6) DEPARTMENT.—The term ‘‘Department’’
means the United States Department of Agriculture.
(7) EDUCATION.—The term ‘‘education’’ means
activities providing information relating to the sheep
industry or sheep products to producers, feeders, im-
porters, consumers, and other persons.
(8) EXECUTIVE COMMITTEE.—The term ‘‘Exec-
utive Committee’’ means the Executive Committee
established under section 5(g).
(9) EXPORTER.—The term ‘‘exporter’’ means
any person who exports domestic live sheep or
greasy wool from the United States.
(10) FEEDER.—The term ‘‘feeder’’ means a
person who feeds lambs until the lambs reach
slaughter weight.
(11) GREASY WOOL.—The term ‘‘greasy wool’’
means wool that has not been washed or otherwise
cleaned.
(19) PRODUCER
INFORMATION.—The term
‘‘producer information’’ means activities designed to
provide producers, feeders, and importers with infor-
mation relating to production or marketing effi-
ciencies or developments, program activities, or other
information that would facilitate an increase in the
consumption of sheep or sheep products.
(20) 
PROMOTION.—The 
term 
‘‘promotion’’
means any action (including paid advertising) to ad-
vance the image and desirability of sheep or sheep
products to improve the competitive position, and
stimulate sales, of sheep products in the domestic
and international marketplace.
(21) PULLED WOOL.—The term ‘‘pulled wool’’
means wool that is pulled from the skin of a slaugh-
tered sheep.
(22) QUALIFIED
STATE
SHEEP
BOARD.—The
term ‘‘qualified State sheep board’’ means a sheep
and wool promotion entity that—
(A) is authorized by State statute or is
otherwise organized and operating within a
State;
(B) receives voluntary contributions or
dues and conducts promotion, research, or
consumer information programs with respect to
sheep or wool, or both; and
(C) is recognized by the Board as the
sheep and wool promotion entity within the
State;
except that not more than 1 qualified State sheep
board shall exist in any State at any 1 time.
(23) RAW WOOL.—The term ‘‘raw wool’’ means
greasy wool, pulled wool, degreased wool, or carbon-
ized wool.
(24) RESEARCH.—The term ‘‘research’’ means
development projects and studies relating to the pro-
duction (including the feeding of sheep), processing,
distribution, or use of sheep or sheep products to en-
courage, expand, improve, or make more efficient
the marketing of sheep or sheep products.
(25) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Agriculture.
(26) SHEEP.—The term ‘‘sheep’’ means ovine
animals of any age, including lambs.
(27) SHEEP
PRODUCTS.—The term ‘‘sheep
products’’ means products produced, in whole or in
part, from sheep, including wool and products con-
taining wool fiber.
(28) STATE.—The term ‘‘State’’ means each of
the 50 States.
(29) UNIT.—The term ‘‘unit’’ means each
State, group of States, or class designation that is
represented on the Board.
(30) UNITED
STATES.—The term ‘‘United
States’’ means the 50 States and the District of Co-
lumbia.
(31) WOOL.—The term ‘‘wool’’ means the fiber
from the fleece of a sheep.
(32) WOOL PRODUCTS.—The term ‘‘wool prod-
ucts’’ means products produced, in whole or in part,
from wool and products containing wool fiber.
SEC. 4. ISSUANCE AND AMENDMENT OF ORDERS.
(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary shall issue orders under this Act applicable to pro-
ducers, feeders, importers, handlers, and purchasers of
sheep and sheep products. Any order shall be national in
scope. Not more than 1 order shall be in effect under this
Act at any 1 time.
(b) PROCEDURE.—
(1) PROPOSAL OR REQUEST FOR ISSUANCE.—
The Secretary may propose the issuance of an order
under this Act, or an association of producers may
request the issuance of, and submit a proposal for,
an order.
(2) NOTICE AND COMMENT CONCERNING PRO-
POSED ORDER.—Not later than 60 days after the re-
ceipt of a request and proposal for an order under
paragraph (1), the Secretary shall publish a pro-
posed order and give due notice and opportunity for
public comment on the proposed order.
(3) ISSUANCE OF ORDERS.—After notice and
opportunity for public comment are given as pro-
vided in paragraph (2), the Secretary shall issue an
order, taking into consideration the comments re-
ceived, that includes provisions necessary to ensure
that the order is in conformity with this Act. The
order shall be issued not later than 180 days follow-
ing publication of the proposed order.
(4) REFERENDUM.—The order shall go into ef-
fect only if the order is approved by producers, feed-
ers, and importers in a referendum conducted under
section 6.
(c) AMENDMENTS.—The Secretary, from time to
time, may amend any order issued under this Act.
SEC. 5. REQUIRED TERMS IN ORDERS.
(a) IN GENERAL.—An order issued under this Act
shall contain the terms and conditions specified in this sec-
tion.
(b) 
ESTABLISHMENT
AND
MEMBERSHIP
OF
BOARD.—
(1) IN GENERAL.—The order shall provide for
the establishment of, and appointment of members
to, a National Sheep Promotion, Research, and In-
formation Board to administer the order. Members
of the Board shall be appointed by the Secretary
from nominations provided in accordance with this
subsection. The cumulative number of seats on the
Board shall be 120 and shall be apportioned as fol-
lows:
(A) PRODUCERS.—Producers shall be ap-
pointed to the Board to represent States, with
each State represented by the following number
of members:
Alabama ............................................................................
1.
Alaska ...............................................................................
1.
Arizona ..............................................................................
1.
Arkansas ...........................................................................
1.
California ..........................................................................
5.
Colorado ............................................................................
4.
Connecticut .......................................................................
1.
Delaware ...........................................................................
1.
Florida ..............................................................................
1.
Georgia ..............................................................................
1.
Hawaii ...............................................................................
1.
Idaho .................................................................................
2.
Illinois ...............................................................................
1.
Indiana ..............................................................................
1.
Iowa ...................................................................................
2.
Kansas ..............................................................................
1.
Kentucky ...........................................................................
1.
Louisiana ..........................................................................
1.
Maine ................................................................................
1.
Maryland ...........................................................................
1.
Massachusetts ...................................................................
1.
Michigan ............................................................................
1.
Minnesota ..........................................................................
2.
Mississippi .........................................................................
1.
Missouri ............................................................................
1.
Montana ............................................................................
5.
Nebraska ...........................................................................
1.
Nevada ..............................................................................
1.
New Hampshire ................................................................
1.
New Jersey ........................................................................
1.
New Mexico .......................................................................
2.
New York ..........................................................................
1.
North Carolina ..................................................................
1.
North Dakota ....................................................................
2.
Ohio ...................................................................................
1.
Oklahoma ..........................................................................
1.
Oregon ...............................................................................
2.
Pennsylvania .....................................................................
1.
Rhode Island .....................................................................
1.
South Carolina ..................................................................
1.
South Dakota ....................................................................
4.
Tennessee ..........................................................................
1.
Texas .................................................................................
10.
Utah ..................................................................................
3.
Vermont ............................................................................
1.
Virginia .............................................................................
1.
Washington .......................................................................
1.
West Virginia ....................................................................
1.
Wisconsin ..........................................................................
1.
Wyoming ...........................................................................
5.
(B) FEEDERS.—The feeder sheep industry
shall be represented on the Board by 10 mem-
bers.
(C) IMPORTERS.—Importers shall be rep-
resented on the Board by 25 members.
(D) ALTERNATES.—The order shall pro-
vide that a unit represented by only 1 member
may have an alternate member appointed to en-
sure representation at meetings of the Board.
(2) NOMINATIONS.—
(A) PRODUCERS.—The Secretary shall ap-
point producers to represent units established
under paragraph (1)(A) from nominations sub-
mitted by eligible organizations certified under
subsection (c)(3). An eligible organization may
submit only nominations from the membership
of the organization for the unit in which the or-
ganization is located. To be represented on the
Board, each eligible organization shall submit
to the Secretary at least 1.5 nominations for
each appointment to the Board for which the
unit is entitled to representation, as determined
under paragraph (1)(A). If a unit is entitled to
1 appointment on the Board, the unit shall sub-
mit at least 2 nominations for the appointment.
(B) FEEDERS.—The Secretary shall ap-
point representatives of the feeder sheep indus-
try to seats established under paragraph (1)(B)
from nominations submitted by qualified na-
tional organizations that represent the feeder
sheep industry. To be represented on the
Board, the industry shall provide at least 1.5
nominations for each appointment to the Board
for which the feeder sheep industry is entitled
to representation, as determined under para-
graph (1)(B).
(C) IMPORTERS.—The Secretary shall ap-
point importers to seats established under para-
graph (1)(C) from nominations submitted by
qualified organizations that represent import-
ers, as determined by the Secretary. To be rep-
resented on the Board, importers shall provide
at least 1.5 nominations for each appointment
to the Board for which importers are entitled to
representation, as determined under paragraph
(1)(C).
(c) METHOD FOR OBTAINING NOMINATIONS.—
(1) INITIALLY ESTABLISHED BOARD.—
(A) PRODUCER NOMINATIONS.—The Sec-
retary shall solicit nominations for each seat on
the initially established Board to which a unit
is entitled to representation from eligible orga-
nizations certified under paragraph (3). If no
such organization exists in the unit, the Sec-
retary shall solicit nominations for appoint-
ments in such manner as the Secretary deter-
mines appropriate.
(B) FEEDER
AND
IMPORTER
NOMINA-
TIONS.—The Secretary shall solicit nominations
for each seat for which feeders or importers are
entitled to representation from organizations
that represent feeders and importers, respec-
tively. In determining whether an organization
is eligible to submit nominations under this
subparagraph, the Secretary shall determine
whether—
(i) the active membership of the orga-
nization includes a significant number of
feeders or importers in relation to the total
membership of the organization;
(ii) there is evidence of stability and
permanency of the organization; and
(iii) the organization has a primary
and overriding interest in representing the
feeder or importer segment of the sheep in-
dustry.
(2) SUBSEQUENT APPOINTMENT.—
(A) PRODUCER NOMINATIONS.—The solici-
tation of nominations for subsequent appoint-
ment to the Board from eligible organizations
certified under paragraph (3) shall be initiated
by the Secretary, with the Board securing the
nominations for the Secretary.
(B) FEEDER
AND
IMPORTER
NOMINA-
TIONS.—The solicitation of feeder and importer
nominations for seats on the Board shall be
made by the Secretary in accordance with para-
graph (1)(B).
(3) CERTIFICATION OF ORGANIZATIONS.—
(A) IN GENERAL.—The eligibility of any
organization to represent producers, and to par-
ticipate in the making of nominations to rep-
resent producers under this section, shall be
certified by the Secretary. The Secretary shall
certify any organization that the Secretary de-
termines meets the eligibility criteria estab-
lished by the Secretary under this paragraph.
An eligibility determination of the Secretary
under this paragraph shall be final.
(B) BASIS
FOR
CERTIFICATION.—Certifi-
cation under this paragraph shall be based, in
addition to other available information, on a
factual report submitted by the organization,
that shall contain information considered rel-
evant and specified by the Secretary, includ-
ing—
(i) the geographic territory covered by
the active membership of the organization;
(ii) the nature and size of the active
membership of the organization, including
the proportion of the total number of ac-
tive producers represented by the organiza-
tion;
(iii) evidence of stability and perma-
nency of the organization;
(iv) sources from which the operating
funds of the organization are derived;
(v) the functions of the organization;
and
(vi) the ability and willingness of the
organization to further the aims and objec-
tives of this Act.
(C) PRIMARY
CONSIDERATIONS.—A pri-
mary consideration in determining the eligibility
of an organization under this paragraph shall
be whether—
(i) the membership of the organiza-
tion consists primarily of producers who
own a substantial quantity of sheep; and
(ii) an interest of the organization is
in the production of sheep.
(d) ADMINISTRATION.—
(1) TERMS.—Each appointment to the Board
shall be for a term of 3 years, except that appoint-
ments to the initially established Board shall be pro-
portionately for 1-year, 2-year, and 3-year terms. No
person may serve more than 2 consecutive 3-year
terms, except that an elected officer of the Board
shall not be subject to this sentence while the officer
holds office.
(2) COMPENSATION.—A Board member shall
serve without compensation, but shall be reimbursed
for the reasonable expenses of the member incurred
in performing the duties of the Board.
(3) MEETINGS.—The order shall provide for at
least an annual meeting of the Board and such addi-
tional meetings of the Board as may be required.
(e) POWERS
AND DUTIES
OF
THE BOARD.—The
order shall define the powers and duties of the Board and
shall include the power and duty—
(1) to elect officers of the Board, including a
Chairperson, Vice Chairperson, and Secretary;
(2) to administer the order in accordance with
the terms and provisions of the order;
(3) to recommend regulations to effectuate the
terms and provisions of the order;
(4) to elect members of the Board to serve on
the Executive Committee;
(5) to approve or reject budgets submitted by
the Executive Committee;
(6) on approval, to submit the budgets to the
Secretary for the approval or disapproval of the Sec-
retary;
(7) to contract with entities, if necessary, to
carry out plans or projects in accordance with this
Act;
(8) to conduct programs of promotion, research,
consumer information, education, industry informa-
tion, and producer information;
(9) to receive, investigate, and report to the
Secretary complaints of violations of the order;
(10) to recommend to the Secretary amend-
ments to the order;
(11) to provide the Secretary with prior notice
of meetings of the Board to permit the Secretary, or
a designated representative, to attend the meetings;
(12) to provide, not less than annually, a report
to producers, feeders, and importers accounting for
funds expended by the Board and describing pro-
grams carried out under this Act, and to make the
report available to the public on request;
(13) to establish 7 regions that, to the extent
practicable, contain geographically contiguous States
and approximately equal numbers of producers and
sheep production;
(14) to employ or retain necessary staff; and
(15) to invest funds in accordance with sub-
section (k).
(f) BUDGETS.—
(1) IN GENERAL.—The order shall provide that
the Board shall review budgets submitted by the Ex-
ecutive Committee, on a fiscal year basis, of antici-
pated expenses and disbursements by the Board, in-
cluding probable costs of administration and pro-
motion, research, consumer information, education,
industry information, and producer information
projects. On approval by the Board, the Board shall
submit the budget to the Secretary for the approval
of the Secretary.
(2) LIMITATION.—No expenditure of funds may
be made by the Board unless the expenditure is au-
thorized under a budget or budget amendment ap-
proved by the Secretary.
(g) EXECUTIVE COMMITTEE.—
(1) ESTABLISHMENT.—The order shall estab-
lish an Executive Committee to administer the terms
and provisions of the order, as provided in this sub-
section, under the direction of the Board and con-
sistent with the policies determined by the Board.
(2) MEMBERSHIP.—The Executive Committee
shall be composed of 14 members, of which—
(A) 11 members shall be elected by the
Board on an annual basis, of which—
(i) 7 members shall represent produc-
ers, with 1 member representing each of
the regions established in the order;
(ii) 1 member shall represent feeders;
and
(iii) 3 members shall represent im-
porters; and
(B) 3 members shall be the Chairperson,
Vice Chairperson, and Secretary of the Board.
(3) POWERS AND DUTIES.—
(A) PLANS OR PROJECTS.—The Executive
Committee shall develop plans or projects of
promotion, research, consumer information,
education, industry information, and producer
information, which shall be paid for with as-
sessments collected by the Board. The plans or
projects shall not become effective until the
plans or projects are approved by the Secretary.
(B) BUDGETS.—The Executive Committee
shall be responsible for developing and submit-
ting to the Board, for the approval of the
Board, budgets, on a fiscal year basis, of the
anticipated expenses and disbursements of the
Board, including probable costs of promotion,
research, consumer information, education, in-
dustry information, and producer information
projects. The Board shall approve or disapprove
a budget submitted by the Executive Commit-
tee, and, if approved, shall submit the budget to
the Secretary for the approval of the Secretary.
(4) TERMS.—A term of appointment to the Ex-
ecutive Committee shall be for 1 year.
(5) CHAIRPERSON.—The Chairperson of the
Board shall serve as Chairperson of the Executive
Committee.
(6) QUORUM.—A quorum of the Executive
Committee shall consist of 8 members.
(h) EXPENSES, CONTRACTS, AND AGREEMENTS.—
(1) EXPENSES.—The order shall provide that
the Board shall be responsible for all expenses of the
Board and the Executive Committee.
(2) CONTRACTS
AND
AGREEMENTS.—A con-
tract or agreement entered into by the Board under
subsection (e)(7) shall provide that—
(A) the contracting party shall develop and
submit to the Board a plan or project, together
with a budget or budgets that provides esti-
mated costs to be incurred for the plan or
project;
(B) the plan or project, and the contract
or agreement, shall not become effective until
the plan or project has been approved by the
Secretary; and
(C) the contracting party shall—
(i) keep accurate records of all of the
transactions of the party;
(ii) account for funds received and ex-
pended, including staff time, salaries, and
expenses expended on behalf of Board ac-
tivities;
(iii) make periodic reports to the
Board of activities conducted; and
(iv) make such other reports as the
Board or the Secretary may require.
(i) ASSESSMENTS.—
(1) SHEEP PURCHASES.—
(A) IN GENERAL.—The order shall provide
that each person making payment to a producer
or feeder for sheep purchased from the pro-
ducer or feeder shall, in the manner prescribed
by the order, collect an assessment from the
producer or feeder on each sheep sold by the
producer or feeder.
(B) PROCESSING.—Any person purchasing
sheep for processing shall collect the assessment
from the seller and remit the assessment to the
Board in the manner prescribed by the order.
(C) RATE.—
(i) IN GENERAL.—Except as provided
in clause (ii), the rate of assessment under
this paragraph shall be 1 cent per pound
of live sheep sold.
(ii) EXCEPTION.—The rate of assess-
ment under this paragraph may be raised
or lowered not more than 15⁄100 of a cent
per pound in any 1 year, as recommended
by the Executive Committee and approved
by the Board and the Secretary, except
that the rate of assessment under this
paragraph shall not exceed 2.5 cents per
pound of live sheep sold.
(2) WOOL PURCHASES.—
(A) IN GENERAL.—The order shall provide
that each person making payment to a pro-
ducer, feeder, or handler of wool for wool pur-
chased from the producer, feeder, or handler
shall, in the manner prescribed by the order,
collect an assessment on each pound of greasy
wool sold.
(B) PROCESSING.—Any person purchasing
greasy wool for processing shall collect the as-
sessment and remit the assessment to the
Board in the manner prescribed by the order.
(C) RATE.—
(i) IN GENERAL.—Except as provided
in clause (ii), the rate of assessment under
this paragraph shall be 2 cents per pound
of greasy wool.
(ii) EXCEPTION.—The rate of assess-
ment under this paragraph may be raised
or lowered not more than 2⁄10 of a cent per
pound in any 1 year, as recommended by
the Executive Committee and approved by
the Board and the Secretary, except that
the rate of assessment under this para-
graph shall not exceed 4 cents per pound
of greasy wool.
(3) DIRECT PROCESSING.—The order shall pro-
vide that any person processing or causing to be
processed sheep or sheep products of that person’s
own production and marketing shall—
(A) pay an assessment on the sheep or
sheep products at the time of sale at a rate
equivalent to the rate provided for in paragraph
(1) or (2), as appropriate; and
(B) remit the assessment to the Board in
the manner prescribed by the order.
(4) EXPORTS.—The order shall provide that
any person exporting live sheep or greasy wool
shall—
(A) pay the assessment on the sheep or
greasy wool at the time of export at a rate
equivalent to the rate provided for in paragraph
(1) or (2), as appropriate; and
(B) remit the assessment to the Board in
the manner prescribed by the order.
(5) IMPORTS.—
(A) IN GENERAL.—The order shall provide
that any person importing sheep or sheep prod-
uct, and any person importing wool or products
containing wool, into the United States shall
pay an assessment to the Board in the manner
prescribed by the order, except that this para-
graph shall not apply to raw wool that is im-
ported into the United States.
(B) COLLECTION.—The Customs Service
shall collect the assessment required under this
paragraph and remit the assessment to the Sec-
retary for disbursement to the Board.
(C) RATE FOR SHEEP AND SHEEP PROD-
UCTS.—
(i) IN GENERAL.—Except as provided
in subparagraph (B), the rate of assess-
ment under this paragraph for sheep and
sheep products shall be—
(I) in the case of a live sheep, 1
cent per pound; and
(II) in the case of a sheep prod-
uct, the equivalent of 1 cent per
pound of live sheep, as determined by
the Secretary in consultation with the
domestic sheep industry.
(ii) EXCEPTION.—The rate of assess-
ment under this subparagraph may be
raised or lowered not more than 15⁄100 cent
per pound in any 1 year, as recommended
by the Executive Committee and approved
by the Board and the Secretary, except
that the rate of assessment under this sub-
paragraph shall not exceed 2.5 cents per
pound.
(D) RATE FOR WOOL AND WOOL PROD-
UCTS.—
(i) IN GENERAL.—Except as provided
in clause (ii), the rate of assessment under
this paragraph for wool and products con-
taining wool, shall be 2 cents per pound of
degreased wool or the equivalent of
degreased wool.
(ii) EXCEPTION.—The rate of assess-
ment under this subparagraph may be
raised or lowered not more than 2⁄10 cent
per pound in any 1 year, as recommended
by the Executive Committee and approved
by the Board and the Secretary, except
that the rate of assessment under this sub-
paragraph shall not exceed 4 cents per
pound of degreased wool or the equivalent
of degreased wool.
(6) QUALIFIED STATE SHEEP BOARDS.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), the order shall provide that
20 percent of the total assessments collected by
the Board on the marketing of domestic sheep
and domestic sheep products in any 1 year from
a State shall be returned to the qualified State
sheep board of the State.
(B) EXCEPTION.—No qualified State sheep
board shall receive less than $2,500 under sub-
paragraph (A) in any year.
(7) DE MINIMIS IMPORTS.—The Secretary may
issue regulations that—
(A) exclude certain imported materials or
products that contain de minimis content levels
of sheep or sheep products; and
(B) waive the assessment due on the mate-
rials or products.
(8) USE OF ASSESSMENTS.—
(A) IN GENERAL.—The order shall provide
that assessments received by the Board shall be
used by the Board for the payment of expenses
incurred in administering the order, with au-
thorization for a reasonable reserve.
(B) REIMBURSEMENT
OF
SECRETARY.—
The Secretary shall be reimbursed for costs in-
curred in implementing and administering the
order.
(j) BOOKS AND RECORDS OF BOARD.—
(1) IN GENERAL.—The order shall require the
Board to—
(A) maintain such books and records as
the Secretary may prescribe, which shall be
available to the Secretary for inspection and
audit;
(B) prepare and submit to the Secretary,
from time to time, such reports as the Sec-
retary may prescribe; and
(C) account for the receipt and disburse-
ment of all funds entrusted to the Board.
(2) AUDIT.—The Board shall cause books and
records of the Board related to the order to be au-
dited by an independent auditor at the end of each
fiscal year. The Board shall submit a report of the
audit to the Secretary.
(k) INVESTMENT OF FUNDS.—
(1) IN GENERAL.—The order shall provide that
the Board may invest, pending disbursement, funds
the Board receives under the order, only in—
(A) obligations of the United States or any
agency of the United States;
(B) general obligations of any State or any
political subdivision of a State;
(C) any interest-bearing account or certifi-
cate of deposit of a bank that is a member of
the Federal Reserve System; or
(D) obligations fully guaranteed as to prin-
cipal and interest by the United States.
(2) USE OF INCOME.—Income from any invest-
ment under paragraph (1) may be used for any pur-
pose for which the invested funds may be used.
(l) PROHIBITION ON USE OF FUNDS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the order shall prohibit any funds col-
lected by the Board under the order from being used
in any manner for the purpose of influencing legisla-
tion or government action or policy.
(2) EXCEPTIONS.—Paragraph (1) shall not
apply to—
(A) the development and recommendation
to the Secretary of amendments to the order; or
(B) the communication to appropriate gov-
ernment officials, in response to a request made
by the officials, of information relating to the
conduct, implementation, or results of pro-
motion, research, consumer information, edu-
cation, industry information, or producer infor-
mation activities under the order.
(3) FALSE OR MISLEADING CLAIMS.—A plan or
project conducted under this Act shall not make
false or misleading claims on behalf of sheep or
sheep products or against a competing product.
(m) BOOKS AND RECORDS.—
(1) IN GENERAL.—The order shall require that
each person making payment to a producer, feeder,
or handler for sheep or sheep products, each im-
porter and exporter of sheep or sheep products, and
each person marketing sheep products of the per-
son’s own production to maintain, and make avail-
able for inspection, such books and records as may
be required by the order and file reports at the time,
in the manner, and having the content prescribed by
the order.
(2) USE OF INFORMATION.—
(A) IN GENERAL.—Information from the
records or reports shall be made available to the
Secretary for the administration or enforcement
of this Act, or any order or regulation issued
under this Act.
(B) OTHER INFORMATION.—The Secretary
shall authorize the use under this Act of infor-
mation regarding persons paying producers,
feeders, importers, handlers, or processors that
is accumulated under a law or regulation other
than this Act or a regulation issued under this
Act.
(3) CONFIDENTIALITY.—
(A) IN
GENERAL.—Except as otherwise
provided in this Act, all information obtained
under paragraph (1) or (2) shall be kept con-
fidential by all officers and employees of the
Department and of the Board.
(B) DISCLOSURE.—Information referred to
in subparagraph (A) may be disclosed only if—
(i) the Secretary considers the infor-
mation relevant;
(ii) the information is revealed in a
judicial proceeding or administrative hear-
ing brought at the direction or on the re-
quest of the Secretary or to which the Sec-
retary or any officer of the Department is
a party; and
(iii) the information relates to this
Act.
(C) GENERAL STATEMENTS.—Nothing in
this paragraph prohibits—
(i) the issuance of general statements,
based on the reports, of the number of per-
sons subject to an order or statistical data
collected from the persons, which state-
ments do not identify the information fur-
nished by any person; or
(ii) the publication, by direction of the
Secretary, of the name of any person vio-
lating any order and a statement of the
particular provisions of the order violated
by the person.
(D) ADMINISTRATION.—No information
obtained under this Act may be made available
to any agency or officer of the Federal Govern-
ment for any purpose other than the implemen-
tation of this Act or any investigatory or en-
forcement action necessary for the implementa-
tion of this Act.
(E) PENALTY.—Any person who willfully
violates this paragraph, on conviction, shall be
subject to a fine of not more than $1,000 or to
imprisonment for not more than 1 year, or
both, and if the person is an officer or employee
of the Board or the Department, shall be re-
moved from office.
(n) OTHER TERMS AND CONDITIONS.—The order
shall provide such terms and conditions, not inconsistent
with this section, as are necessary to carry out the order,
including provisions for the assessment of a penalty for
the late payment of an assessment due under the order.
SEC. 6. REFERENDA.
(a) INITIAL REFERENDUM.—
(1) IN GENERAL.—Following the issuance of an
order under section 4, the Secretary shall conduct a
referendum among producers, feeders, and importers
who, during a representative period as determined
by the Secretary, have been engaged in the produc-
tion, feeding, or importation of sheep or sheep prod-
ucts for the purpose of ascertaining whether the
order shall go into effect.
(2) APPROVAL OF ORDER.—The order shall be-
come effective only if the Secretary determines that
the order has been approved by not less than a ma-
jority of the producers, feeders, and importers voting
in the referendum or at least 2⁄3 of the production
represented by persons voting in the referendum.
(b) ADDITIONAL REFERENDA.—
(1) IN GENERAL.—After the initial referendum,
on the request of a representative group comprising
10 percent or more of the producers, feeders, and
importers who, during a representative period as de-
termined by the Secretary, have been engaged in the
production, feeding, importation, or processing of
sheep or sheep products, the Secretary shall conduct
a referendum of producers, feeders, and importers to
determine whether the producers, feeders, and im-
porters favor the termination or suspension of the
order.
(2) SUSPENSION OR TERMINATION.—If the Sec-
retary determines that suspension or termination of
the order is favored by a majority of the producers,
feeders, and importers voting in the referendum or
at least 2⁄3 of the production represented by the per-
sons voting in the referendum, the Secretary shall
suspend or terminate—
(A) collection of assessments under the
order not later than 180 days after the deter-
mination; and
(B) the order in an orderly manner as soon
as practicable after the determination.
(c) PROCEDURES.—
(1) REIMBURSEMENT—
(A) IN GENERAL.—Except as provided in
subparagraph (B), the Board shall reimburse
the Secretary for any expenses incurred by the
Secretary in connection with the conduct of any
referendum under this section.
(B) FEDERAL EMPLOYEE SALARIES.—The
Board shall not be required to reimburse the
Secretary for the salaries of Federal employees
under subparagraph (A) if the Secretary deter-
mines that the reimbursement would be overly
burdensome and costly.
(2) DATE.—Each referendum under this sec-
tion shall be conducted on a date established by the
Secretary, under a procedure by which producers,
feeders, and importers intending to vote in the ref-
erendum shall certify that the producers, feeders,
and importers were engaged in the production, feed-
ing, or importation of sheep or sheep products dur-
ing the representative period and, on the same day,
shall be provided an opportunity to vote in the ref-
erendum.
(3) PLACE.—Referenda under this section shall
be conducted at locations determined by the Sec-
retary. Absentee mail ballots shall be furnished by
the Secretary on request made in person, by mail, or
by telephone.
(4) ALLOCATION
OF
PRODUCTION.—The Sec-
retary shall determine a method of allocating, by a
pro rata percentage of annual projected or actual as-
sessments from importers, the volume of production
represented by importers in referenda conducted
pursuant to this section.
SEC. 7. PETITION AND REVIEW.
(a) PETITION.—
(1) IN GENERAL.—A person subject to an order
issued under this Act may file with the Secretary a
petition—
(A) stating that the order, any provision of
the order, or any obligation imposed in connec-
tion with the order is not established in accord-
ance with law; and
(B) requesting a modification of the order
or an exemption from the order.
(2) HEARINGS.—The petitioner shall be given
an opportunity for a hearing on the petition, in ac-
cordance with regulations issued by the Secretary.
(3) RULING.—After the hearing, the Secretary
shall make a ruling on the petition. The ruling shall
be final if the ruling is in accordance with law.
(b) REVIEW.—
(1) COMMENCEMENT OF ACTION.—The district
court of the United States for any district in which
a person who is a petitioner under subsection (a) re-
sides or carries on business shall have jurisdiction to
review the ruling on the petition of the person, if a
complaint for that purpose is filed not later than 20
days after the date of the entry of the ruling by the
Secretary under subsection (a)(3).
(2) PROCESS.—Service of process in a proceed-
ing may be conducted on the Secretary by delivering
a copy of the complaint to the Secretary, under such
rules or regulations as are considered necessary by
the Secretary to facilitate the service of process.
(3) REMANDS.—If the court determines that
the ruling is not in accordance with law, the court
shall remand the matter to the Secretary with direc-
tions—
(A) to make such ruling as the court shall
determine to be in accordance with law; or
(B) to take such further action as, in the
opinion of the court, the law requires.
SEC. 8. ENFORCEMENT.
(a) JURISDICTION.—Each district court of the United
States shall have jurisdiction specifically to enforce, and
to prevent and restrain a person from violating, an order
or regulation issued under this Act.
(b) REFERRAL TO ATTORNEY GENERAL.—A civil ac-
tion authorized to be brought under this section shall be
referred to the Attorney General for appropriate action,
except that the Secretary is not required to refer to the
Attorney General a violation of this Act, if the Secretary
believes that the administration and enforcement of this
Act would be adequately served by providing a suitable
written notice or warning to the person who committed
the violation or by an administrative action under section
7.
(c) CIVIL PENALTIES AND ORDERS.—
(1) CIVIL PENALTIES.—A person who willfully
violates an order or regulation issued by the Sec-
retary under this Act may be assessed by the Sec-
retary—
(A) a civil penalty of not more than $1,000
for each such violation; and
(B) in the case of a willful failure to pay,
collect, or remit an assessment as required by
the order, an additional penalty equal to the
amount of the assessment.
(2) SEPARATE OFFENSE.—Each violation shall
be a separate offense.
(3) CEASE-AND-DESIST
ORDERS.—In addition
to, or in lieu of, the civil penalty, the Secretary may
issue an order requiring the person to cease and de-
sist from violating the order or regulation.
(4) NOTICE AND HEARING.—No order assessing
a penalty or cease-and-desist order may be issued by
the Secretary under this subsection unless the Sec-
retary provides notice and an opportunity for a hear-
ing on the record with respect to the violation.
(5) FINALITY.—An order assessing a penalty or
a cease-and-desist order issued under this subsection
by the Secretary shall be final and conclusive unless
the person against whom the order is issued files an
appeal from the order with the United States court
of appeals, as provided in subsection (d), not later
than 30 days after the person receives notice of the
order.
(d) REVIEW BY COURT OF APPEALS.—
(1) IN GENERAL.—A person against whom an
order is issued under subsection (c) may obtain re-
view of the order by—
(A) filing, not later than 30 days after the
date of the order, a notice of appeal in—
(i) the United States court of appeals
for the circuit in which the person resides
or carries on business; or
(ii) the United States Court of Ap-
peals for the District of Columbia Circuit;
and
(B) simultaneously sending a copy of the
notice of appeal by certified mail to the Sec-
retary.
(2) RECORD.—The Secretary shall file promptly
in the court a certified copy of the record on which
the Secretary has determined that the person has
committed a violation.
(3) STANDARD OF REVIEW.—A finding of the
Secretary under this section shall be set aside only
if the finding is found to be unsupported by substan-
tial evidence.
(e) FAILURE TO OBEY ORDERS.—A person who fails
to obey a valid cease-and-desist order issued by the Sec-
retary under this section, after an opportunity for a hear-
ing, shall be subject to a civil penalty assessed by the Sec-
retary of not more than $500 for each offense. Each day
during which the failure continues shall be considered to
be a separate violation of the order.
(f) FAILURE TO PAY PENALTIES.—If a person fails
to pay a valid civil penalty imposed under this section by
the Secretary, the Secretary shall refer the matter to the
Attorney General for recovery of the amount assessed in
the district court of the United States for any district in
which the person resides or carries on business. In the
action, the validity and appropriateness of the order im-
posing the civil penalty shall not be subject to review.
(g) ADDITIONAL REMEDIES.—The remedies provided
in this section shall be in addition to, and not exclusive
of, other remedies that may be available.
SEC. 9. INVESTIGATIONS AND POWER TO SUBPOENA.
(a) INVESTIGATIONS.—The Secretary may make such
investigations as the Secretary considers necessary—
(1) for the effective administration of this Act;
or
(2) to determine whether any person subject to
this Act has engaged, or is about to engage, in any
action that constitutes or will constitute a violation
of this Act, or of any order or regulation issued
under this Act.
(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—For
the purpose of any investigation under subsection (a), the
Secretary may administer oaths and affirmations, sub-
poena witnesses, compel the attendance of witnesses, take
evidence, and require the production of any records that
are relevant to the inquiry. The attendance of witnesses
and the production of any such records may be required
from any place in the United States.
(c) AID OF COURTS.—In the case of contumacy by,
or refusal to obey a subpoena issued to, any person, the
Secretary may invoke the aid of any court of the United
States within the jurisdiction of which the investigation
or proceeding is carried on, or where the person resides
or carries on business, in order to require the attendance
and testimony of the person or the production of records.
The court may issue an order requiring the person to ap-
pear before the Secretary to produce records or to give
testimony regarding the matter under investigation.
(d) CONTEMPT.—Any failure to obey the order of the
court may be punished by the court as a contempt of the
court.
(e) PROCESS.—Process in any case under this section
may be served in the judicial district in which the person
resides or carries on business or wherever the person may
be found.
SEC. 10. ADMINISTRATIVE PROVISIONS.
(a) CONSTRUCTION.—Nothing in this Act preempts
or supersedes any other program relating to sheep pro-
motion, research, or information organized and operated
under the laws of the United States or any State.
(b) AMENDMENTS TO ORDERS.—The provisions of
this Act applicable to an order shall be applicable to
amendments to the order, except that the Secretary is not
required to conduct a referendum on a proposed amend-
ment to an order.