Sheep Promotion, Research, and Information Act of 1994
PL 103-407 (S.2500), enacted 10/22/1994

108 STAT. 4210 
PUBUC LAW 103-407-OCT. 22,1994 
Public Law 103-407 
103d Congress 
An Act 
Oct 22 1994 
"^^ enable producers and feeders of sheep suid importers of sheep and sheep products 
' 
to develop, finance, and carry out a nationally coordinated program for sheep 
[b. 2500] 
g^^ sheep product promotion, research, and information, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
^eep . 
the United States of 
America in Congress assembled, 
Promotion, 
Research, and 
SECTION 1. SHORT TITLE. 
of 1994. 
This Act may be cited as the "Sheep Promotion, Research, 
7 use 7101 note, and Information Act of 1994". 
7 use 7101. 
SEC. 2. FINDINGS AND DECLARATION OF POUCY. 
(a) FINDINGS.—Congress finds that— 
(1) sheep and sheep products are important goods; 
(2) the production of sheep and sheep products play a 
significant role in the economy of the United States in that 
sheep and sheep products are produced throughout the United 
States and used by millions of people throughout the United 
States and foreign countries; 
(3) sheep and sheep products must be high quahty, readily 
available, handled properly, and marketed efficiently to ensure 
that consumers have an adequate supply of sheep products; 
(4) the maintenance and expansion of existing markets 
and development of new markets for sheep and sheep products 
are vital to the welfare of sheep producers and persons con-
cerned with marketing, using, and producing sheep and sheep 
products, as well as to the general economy of the United 
States, and necessary to ensure the ready availability and 
efficient marketing of sheep and sheep products; 
(5) there exist established State organizations conducting 
sheep and sheep product promotion, research, and industry 
and consumer education programs that are invaluable to the 
efforts of promoting the consumption of sheep and sheep prod-
ucts; 
(6) 
the 
cooperative 
development, 
financing, 
and 
implementation of a coordinated national program of sheep 
and sheep product promotion, research, consumer information, 
education, and industry information are necessary to maintain 
and expand existing markets and develop new markets for 
sheep and sheep products; and 
(7) sheep ana sheep products move in interstate and foreign 
commerce, and sheep and sheep products that do not move 
in such channels of commerce directly burden or affect inter-
state commerce in sheep and sheep products. 
PUBLIC LAW 103-407—OCT. 22, 1994 
108 STAT. 4211 
(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 develop-
ing, financing (through adequate assessments on sheep and sheep 
products produced or imported into the United States), and carrying 
out an effective, continuous, coordinated program of promotion, 
research, consumer information, education, and industry informa-
tion designed to— 
(1) strengthen the position of the sheep and sheep product 
industry in the marketplace; 
(2) maintain and expand existing domestic and foreign 
markets and uses for sheep and sheep products; and 
(3) develop new marlcets and uses for sheep and sheep 
products. 
(c) CONSTRUCTION.—^Nothing in this Act provides for the control 
of production, or otherwise Umits, the right of any person to produce 
sheep or sheep products. 
SEC. 3. DEFINITIONS. 
7 USC 7102. 
As used in this Act (unless the context clearly requires other-
wise): 
(1) BOARD.—^The term "Board" means the National Sheep 
Promotion, Research, and Information Board established under 
section 5(b). 
(2) CARBONIZED WOOL.—The term "carbonized wool" means 
wool that has been immersed in a bath, usually of mineral 
acids or acid salts, that destroys vegetable matter in the wool, 
but does not affect the wool fibres. 
(3) 
CONSUMER 
INFORMATION.—The 
term 
"consumer 
information" means nutritional data and other information that 
will assist consumers and other persons in making evaluations 
and decisions regarding the purchase, preparation, or use of 
sheep products. 
(4) CUSTOMS SERVICE.—^The term "Customs Service" means 
United States Customs Service of the Department of the Treas-
ury. 
(5) DECREASED WOOL.—^The term "degreased wool" means 
wool from which the bulk of impurities has been removed 
by processing. 
(6) DEPARTMENT.—^The term "Department" means the 
United States Department of Agriculture. 
(7) EDUCATION.—^The term "education" means activities 
providing information relating to the sheep industry or sheep 
products to producers, feeders, importers, consumers, and other 
persons. 
(8) EXECUTIVE COMMITTEE.—The term "Executive Commit-
tee" means the Executive Committee established imder section 
5(g). 
(9) EXPORTER.—^The term "exporter" means any person who 
exports domestic live sheep or greasy wool from the United 
States. 
(10) FEEDER.—The term "feeder" means a person who feeds 
lambs until the lambs reach slaughter weight. 
(11) GREASY WOOL.—The term "greasy wool" means wool 
that has not been washed or otherwise cleaned. 
(12) HANDLER.—^The term "handler" means any person who 
purchases and markets greasy wool. 
108 STAT. 4212 
PUBLIC LAW 103-407-OCr. 22,1994 
(13) IMPORTER.—^The term "importer" means any person 
who imports sheep or sheep products into the United States. 
(14) INDUSTRY INFORMATION.—The term "industry informa-
tion" means information and programs that will lead to 
increased efficient^ in processing and the development of new 
markets, marketing strategies, increased marketing efficiency, 
and activities to enhance the image of sheep or sheep products 
. on a national or international basis. 
(15) ORDER.—^The term "order" means a sheep and wool 
promotion, research, education, and information order issued 
under section 4. 
' 
(16) PERSON.—^The term "person" means any individual, 
group of individuals, partnership, corporation, association, 
cooperative, or any other legal entity. 
(17) PROCESSOR.—^The term "processor" means any person 
who slaughters sheep or processes greasy wool into degreased 
wool. 
(18) PRODUCER.—^The term "producer" means any person, 
other than a feeder, who owns or acquires ownership of sheep. 
(19) 
PRODUCER 
INFORMATION.—The 
term 
"producer 
information" means activities designed to provide producers, 
feeders, and importers with information relating to production 
or marketing efficiencies or developments, program activities, 
or other information that would faciUtate an increase in the 
consumption of sheep or sheep products. 
(20) PROMOTION.—^The term "promotion" means any action 
(including paid advertising) to advance the image and desirabil-
ity of sheep or sheep products to improve the competitive posi-
tion, and stimulate sales, of sheep products in the domestic 
and international marketplace. 
(21) PULLED WOOL.—The term "pulled wool" means wool 
that is pulled from the skin of a slaughtered sheep. 
(22) QUALIFIED STATE SHEEP BOARD.—The term "quaUfied 
State sheep board" means a sheep and wool promotion entity 
that^ 
(A) is authorized by State statute or is otherwise orga-
nized and operating within a State; 
(B) receives voluntary contributions or dues and con-
ducts promotion, research, or consumer information pro-
grams 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 quaUfied State sheep board shall 
exist in any State at any 1 time. 
(23) RAW WOOL.—^The term "raw wool" means greasy wool, 
pulled wool, degreased wool, or carbonized wool. 
(24) RESEARCH.—^The term "research" means development 
projects and studies relating to the production (including the 
feeding of sheep), processing, distribution, or use of sheep or 
sheep products to encourage, expand, improve, or make more 
efficient the marketing of sheep or sheep products. 
(25) SECRETARY,—The term "Secretary" means the Sec-
retary of Agriculture. 
(26) SHEEP.—^The term "sheep" means ovine animals of 
aiiy age, including lambs. 
PUBLIC LAW 103-407—OCT. 22, 1994 
108 STAT. 4213 
(27) SHEEP PRODUCTS.—The term "sheep products" means 
products produced, in whole or in part, from sheep, including 
wool and products containing wool fiber. 
(28) STATE.—The term "State" means each of the 50 States. 
(29) UNIT.—The term "unit" means each State, group of 
States, or class designation that is represented on the Board. 
(30) UNITED STATES.—The term "United States" means the 
50 States and the District of Columbia. 
(31) WOOL.—The term "wool" means the fiber from the 
fleece of a sheep. 
(32) WOOL PRODUCTS.—The term "wool products" means 
products produced, in whole or in part, from wool and products 
containing wool fiber. 
SEC. 4. ISSUANCE AND AMENDMENT OF ORDERS. 
7 USC 7103. 
(a) IN GENERAL.—Subject to subsection (b), the Secretary shall 
issue orders under this Act applicable to producers, feeders, import-
ers, 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 sub-
mit a proposal for, an order. 
(2) NOTICE AND COMMENT CONCERNING PROPOSED ORDER.— Publication. 
Not later than 60 days after the receipt of a request and 
proposal for an order under paragraph (1), the Secretary shall 
publish a proposed order and give due notice and opportunity 
for public comment on the proposed order. 
(3) ISSUANCE OF ORDERS.—^After notice and opportunity 
for public comment are given as provided in paragraph (2), 
the Secretary shall issue an order, taking into consideration 
the comments received, that includes provisions necessary to 
ensure that the order is in conformity with this Act. The order 
shall be issued not later than 180 days following publication 
of the proposed order. 
(4) REFERENDUM.—The order shall go into effect only if 
the order is approved by producers, feeders, and importers 
in a referendum conducted under section 6. 
(c) AMENDMENTS.—^The Secretary, from time to time, may 
amend any order issued under this Act. 
SEC. 5. REQUIRED TERMS IN ORDERS. 
7 USC 7104. 
(a) IN GENERAL.—^An order issued under this Act shall contain 
the terms and conditions specified in this section. 
(b) ESTABLISHMENT AND MEMBERSHIP OF BOARD.— 
(1) IN GENERAL.—The order shall provide for the establish-
ment of, and appointment of members to, a National Sheep 
Promotion, Research, and Information Board to administer the 
order. Members of the Board shall be appointed by the Sec-
retary from nominations provided in accordance with this sub-
section. The cumulative number of seats on the Board shall 
be 120 £uid shall be apportioned as follows: 
108 STAT. 4214 
PUBLIC LAW 103-407—OCT. 22, 1994 
(A) PRODUCERS.—Producers shall be appointed to the 
Board to represent States, with each State represented 
by the following number of members: 
Alabama 
Alaska 
Arizona 
Arkansas 
California 
Colorado 
Connecticut 
Delaware 
Florida 
Georgia 
Hawaii 
Idaho 
Illinois 
Indiana 
Iowa 
Kansas 
Kentucky 
Louisiana 
Maine 
Maryland 
Massachusetts 
Michigan 
Minnesota 
Mississippi 
Missouri 
Montana 
Nebraska 
Nevada 
New Hampshire 
New Jersey 
New Mexico 
New York 
North Carolina 
North Dakota 
Ohio 
Oklahoma 
Oregon 
Pennsylvania 
Rhode Island 
South Carolina 
South Dakota 
Tennessee 
Texas 
Utah 
Vermont 
Virginia 
Washington 
West Virginia 
Wisconsin 
Wyoming 
10 
(B) FEEDERS.—The feeder sheep industry shall be rep-
resented on the Board by 10 members. 
(C) IMPORTERS.—Importers shall be represented on the 
Board by 25 members. 
(D) ALTERNATES.—^The order shall provide that a unit 
represented by only 1 member may have an alternate mem-
ber appointed to ensure representation at meetings of the 
Board. 
(2) NOMINATIONS.— 
(A) PRODUCERS.—^The Secretary shall appoint produc-
ers to represent units established under paragraph (1)(A) 
from nominations submitted by eligible organizations cer-
tified under subsection (c)(3). An eligible organization may 
PUBLIC LAW 103-407—OCT. 22,1994 
108 STAT. 4215 
submit only nominations from the membership of the 
organization for the unit in which the orgEinization is 
located. To be represented on the Board, each eligible 
organization shall submit to the Secretary at least 1.5 
nominations for each appointment to the Board for which 
the unit is entitled to representation, as determined under 
paragraph (1)(A). If a unit is entitled to 1 appointment 
on the Board, the unit shall submit at least 2 nominations 
for the appointment. 
(B) FEEDERS.—^The Secretary shall appoint representa-
tives of the feeder sheep industry to seats established under 
. . 
paragraph (1)(B) from nominations submitted by qualified 
national organizations that represent the feeder sheep 
industry. To be represented on the Board, the industry 
shall provide at least 1.5 nominations for each appointment 
to the Board for which the feeder sheep industry is entitled 
to representation, as determined under paragraph (1)(B). 
(C) IMPORTERS.—The Secretary shall appoint importers 
to seats established under paragraph (1)(C) from nomina-
tions submitted by qualified organizations that represent 
importers, 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 deter-
mined under paragraph (1)(C). 
(c) METHOD FOR OBTAINING NOMINATIONS.— 
(1) INITIALLY ESTABLISHED BOARD.— 
(A) PRODUCER NOMINATIONS.—The Secretary shall 
solicit nominations for each seat on the initially estabUshed 
Board to which a unit is entitled to representation from 
eligible organizations certified under paragraph (3). If no 
such organization exists in the unit, the Secretary shall 
solicit nominations for appointments in such manner as 
the Secretary determines appropriate. 
(B) FEEDER AND IMPORTER NOMINATIONS.—^The Sec-
retary 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 Sec-
retary shall determine whether— 
(i) the active membership of the organization 
includes a significant number of feeders or importers 
in relation to the total membership of the organization; 
(ii) there is evidence of stabiUty and permanency 
of the organization; and 
(iii) the organization has a primary and overriding 
interest in representing the feeder or importer segment 
of the sheep industry. 
(2) SUBSEQUENT APPOINTMENT.— 
(A) 
PRODUCER 
NOMINATIONS.—The 
solicitation 
of 
nominations for subsequent appointment to the Board from 
eUgible organizations certified under paragraph (3) shall 
be initiated by the Secretary, with the Board securing 
the nominations for the Secretary. 
(B) FEEDER AND IMPORTER NOMINATIONS.—The solicita-
tion of feeder and importer nominations for seats on the 
108 STAT. 4216 
PUBLIC LAW 103-407—OCT. 22, 1994 
Board shall be made by the Secretary in accordance with 
paragraph (1)(B). 
(3) CERTIFICATION OF ORGANIZATIONS.— 
(A) IN GENERAL.—^The eligibility of any organization 
to represent producers, and to participate in the making 
of nominations to represent producers imder this section, 
shall be certified by the Secretary. The Secretary shall 
certify any organization that the Secretary determines 
meets the eligibility criteria established by the Secretary 
under this paragraph. An eligibility determination of the 
Secretary under this paragraph shall be final. 
(B) BASIS FOR CERTIFICATION.—Certification under this 
paragraph shall be based, in addition to other available 
information, on a factual report submitted by the organiza-
tion, that shall contain information considered relevant 
and specified by the Secretary, including— 
(i) the geographic territory covered by the active 
membership of the organization; 
(ii) the nature and size of the active membership 
of the organization, including the proportion of the 
total number of active producers represented by the 
organization; 
(iii) evidence of stabiUty and permanency of the 
organization; 
(iv) sources from which the operating funds of 
the organization are derived; 
(v) the functions of the organization; and 
(vi) the ability and willingness of the organization 
to further the aims and objectives of this Act. 
(C) PRIMARY CONSIDERATIONS.—A primary consider-
ation in determining the eligibility of an organization under 
this paragraph shall be whether— 
(i) the membership of the organization consists 
primarily of producers who own a substantial quantity 
of sheep; and 
(ii) an interest of the organization is in the produc-
tion of sheep. 
(d) ADMINISTRATION.— 
(1) TERMS.—Each appointment to the Board shall be for 
a term of 3 years, except that appointments to the initially 
estabUshed Board shall be proportionately for 1-year, 2-year, 
and 3-year terms. No person may serve more than 2 consecutive 
3-year terms, except that an elected officer of the Board shall 
not be subject to this sentence while the officer holds office. 
(2) COMPENSATION.—^A Board member shall serve without 
compensation, but shall be reimbursed for the reasonable 
expenses of the member incurred in performing the duties 
of the Board. 
(3) MEETINGS.—^The order shall provide for at least an 
annual meeting of the Board and such additional meetings 
of the Board as may be required. 
(e) POWERS AND DUTIES OF THE BOARD.—^The order shall define 
the powers and duties of the Board and shall include the power 
and duty— 
(1) to elect officers of the Board, including a Chairperson, 
Vice Chairperson, and Secretary; 
PUBUC LAW 103-407—OCT. 22, 1994 
108 STAT. 4217 
(2) to administer the order in accordance with the terms 
and provisions of the order; 
(3) to recommend regulations to effectuate the terms and 
provisions of the order; 
(4) to elect members of the Board to serve on the Executive 
Committee; 
(5) to approve or reject budgets submitted by the Executive 
Committee; 
(6) on approval, to submit the budgets to the Secretary 
for the approval or disapproval of the Secretary; 
(7) to contract with entities, if necessary, to carry out Contracts. 
plans or projects in accordance with this Act; 
(8) to conduct programs of promotion, research, consumer 
information, education, industry information, and producer 
information; 
(9) to receive, investigate, and report to the Secretary com- Reports, 
plaints of violations of the order; 
(10) to recommend to the Secretary amendments to the 
order; 
(11) to provide the Secretary with prior notice of meetings 
of the Board to permit the Secretary, or a designated represent-
ative, to attend the meetings; 
(12) to provide, not less than annually, a report to produc- Reports, 
ers, feeders, and importers accounting for funds expended by 
the Board and describing programs carried out under this Act, 
and to make the report available to the public on request; 
(13) to establish 7 regions that, to the extent practicable, 
contain geographically contiguous States and approximately 
equal numbers of producers and sheep production; 
(14) to employ or retain necessary staff; and 
(16) to invest funds in accordance with subsection (k). 
(f) BUDGETS.— 
(1) IN GENERAL.—^The order shall provide that the Board 
shall review budgets submitted by the Executive Committee, 
on a fiscal year basis, of anticipated expenses and disburse-
ments by the Board, including probable costs of administration 
and promotion, research, consumer information, education, 
industry information, and producer information projects. On 
approval by the Board, the Board shall submit the budget 
to the Secretary for the approval of the Secretary. 
(2) LIMITATION.—"So expenditure of funds may be made 
by the Board unless the expenditure is authorized under a 
b u ^ e t or budget amendment approved by the Secretary. 
(g) EXECUTIVE COMMITTEE.— 
(1) ESTABLISHMENT.—The order shall establish an Execu-
tive Committee to administer the terms and provisions of the 
order, as provided in this subsection, under the direction of 
the Board and consistent with the policies determined by the 
Board. 
(2) MEMBERSHIP.—^The Executive Committee shall be com-
posed of 14 members, of which— 
(A) 11 members shall be elected by the Board on an 
annual basis, of which— 
(i) 7 members shall represent producers, with 1 
member representing each of the regions established 
in the order; 
(ii) 1 member shall represent feeders; and 
108 STAT. 4218 
PUBLIC LAW 103-407—OCT. 22, 1994 
(iii) 3 members shall represent importers; and 
(B) 3 members shall be the Chairperson, Vice Chair-
person, 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, industiy information, and 
producer information, which shall be paid for with assess-
ments collected by the Board. The plans or projects shall 
not become effective until the plans or projects are approved 
by the Secretary. 
(B) BUDGETS.—^The Executive Committee shall be 
responsible for developing and submitting to the Board, 
for the approval of the Board, budgets, on a fiscal year 
basis, of the anticipated expenses and disbursements of 
the Board, including probable costs of promotion, research, 
consumer information, education, industry information, and 
producer information projects. The Board shall approve 
or disapprove a budget submitted by the Executive Commit-
tee, and, if approved, shall submit the budget to the Sec-
ret£iry for the approval of the Secretary. 
(4) TERMS.—^A term of appointment to the Executive 
Committee shall be for 1 year. 
(5) CHAIRPERSON.—^The Chairperson of the Board shall 
serve as Chairperson of the Executive Committee. 
(6) QUORUM.—^A quorum of the Executive Committee shall 
consist of 8 members. 
(h) EXPENSES, CONTRACTS, AND AGREEMENTS.— 
(1) EXPENSES.—The order shall provide that the Board 
shall be responsible for all expenses of the Board and the 
Executive Committee. 
(2) CONTRACTS AND AGREEMENTS.—^A contract or agreement 
entered into by the Board under subsection (e)(7) shall provide 
that>-
(A) the contracting party shall develop and submit 
to the Board a plan or project, together with a budget 
or budgets that provides estimated costs to be incurred 
for the plan or project; 
(B) the plan or project, and the contract or agreement, 
shall not become effective imtil the plan or project has 
been approved by the Secretary; and 
(C) the contracting party shall— 
Records. 
(i) keep accurate records of all of the transactions 
of the party; 
(ii) account for funds received and expended, 
including staff time, salaries, and expenses expended 
on behalf of Board activities; 
Reports. 
(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 pa3anent to a producer or feeder for sheep 
purchased from the producer or feeder shall, in the manner 
prescribed by the order, collect an assessment from the 
PUBUC LAW 103-407—OCT. 22,1994 
108 STAT. 4219 
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 pre-
scribed by the order. 
(C) RATE.— 
(i) IN GENERAL.—^Except as provided in clause (ii), 
the rate of assessment under this paragraph shall be 
1 cent per pound of live sheep sold. 
(ii) EXCEPTION.—^The rate of assessment under this 
paragraph may be raised or lowered not more than 
1^100 01 a cent per pound in any 1 year, as rec-
ommended bv the Executive Committee and approved 
by the Boara and the Secretary, except that the rate 
of assessment under this paragraph shall not exceed 
2.5 cents per pound of Uve sneep sold. 
(2) WOOL PURCHASES.— 
(A) IN GENERAL.—^The order shall provide that each 
person making payment to a producer, feeder, or handler 
of wool for wool purchased from the producer, feeder, or 
handler shall, in the manner prescribed by the order, collect 
an assessment on each pound of greasy wool sold. 
(B) PROCESSING.—Any person purchasing greasy wool 
for processing shall collect the assessment and remit the 
assessment to the Board in the manner prescribed by the 
order. 
(C) RATE.— 
(i) IN GENERAL.—^Except as provided in clause (ii), 
the rate of assessment under this paragraph shall be 
2 cents per pound of greasy wool. 
(ii) EXCEPTION.—^The rate of assessment under this 
paragraph may be raised or lowered not more than 
^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 assess-
ment under this paragraph shall not exceed 4 cents 
per poiuid of greasy wool. 
(3) DIRECT PROCESSING.—The order shall provide that any 
person processing or causing to be processed sheep or sheep 
products of that person's own production and marketing shall— 
(A) pay an assessment on the sheep or sheep products 
at the time of sale at a rate equivalent to the rate provided 
for in paragraph (1) or (2), as appropriate; and 
(B) remit the assessment to the Board in the manner 
prescribed by the order. 
(4) EXPORTS.—^The order shall provide that any person 
exporting live sheep or greasy wool shall— 
(A) pay the assessment on the sheep or greasy wool 
at the time of export at a rat^ equivalent to the rate 
provided for in paragraph (1) or (2), as appropriate; and 
(B) remit the assessment to the Board in the manner 
prescribed by the order. 
(5) IMPORTS.— 
(A) IN GENERAL.—^The order shall provide that any 
person importing sheep or sheep product, and any person 
importing wool or products containing wool, into the United 
108 STAT. 4220 
PUBLIC LAW 103-407—OCT. 22, 1994 
States shall pay an assessment to the Board in the manner 
prescribed by the order, except that this paragraph shall 
not apply to raw wool that is imported into the United 
States. 
(B) COLLECTION.—The Customs Service shall collect 
the assessment required under this paragraph and remit 
the assessment to the Secretary for disbursement to the 
Board. 
(C) RATE FOR SHEEP AND SHEEP PRODUCTS.— 
(i) IN GENERAL.—^Except as provided in subpeira-
graph (B), the rate of assessment under this paragraph 
for sheep and sheep products shall be— 
(I) in the case of a Uve sheep,' 1 cent per 
pound; and 
(II) in the case of a sheep product, the equiva-
lent of 1 cent per pound of Uve sheep, as deter-
mined by the Secretary in consultation with the 
domestic sheep industry. 
(ii) EXCEPTION.—The rate of assessment under this 
subparagraph may be raised or lowered not more than 
^^100 cent per pound in any 1 year, as recommended 
by the Ehcecutive Committee and approved by the 
Board and the Secretary, except that the rate of assess-
ment under this subparagraph shall not exceed 2.5 
cents per pound. 
(D) RATE FOR WOOL AND WOOL PRODUCTS.— 
(i) IN GENERAL.—Except as provided in clause (ii), 
the rate of assessment under this paragraph for wool 
and products containing wool, shall be 2 cents per 
pound of degreased wool or the equivalent of degreased 
wool. 
(ii) EXCEPTION.—The rate of assessment under this 
subparagraph may be raised or lowered not more than 
yio cent per pound in any 1 year, as recommended 
by the Efxecutive Committee and approved by the 
Board and the Secretary, except that the rate of assess-
ment under this subparagraph shall not exceed 4 cents 
Ser pound of degreased wool or the equivalent of 
egreased wool. 
(6) QUALIFIED STATE SHEEP BOARDS.— 
(A) IN GENERAL.—^Except as provided in subparagraph 
(B), the order shall provide that 20 percent of the total 
assessments collected by the Board on the marketing of 
domestic sheep and domestic sheep products in any 1 year 
from a State shall be returned to the qualified State sheep 
board of the State. 
(B) EXCEPTION.—No qualified State sheep board shall 
receive less than $2,500 under subparagraph (A) in any 
year. 
(7) D E MINIMIS IMPORTS.—^The Secretary may issue regula-
tions tliat— 
(A) exclude certain imported materials or products that 
cont£un de minimis content levels of sheep or sheep prod-
ucts; and 
(B) waive the assessment due on the materials or 
products. 
(8) USE OF ASSESSMENTS.— 
PUBLIC LAW 103-407—OCT. 22,1994 
108 STAT. 4221 
(A) IN GENERAL.—^The order shall provide that assess-
ments received by the Board shall be used by the Board 
for the payment of expenses incurred in administering 
the order, with authorization for a reasonable reserve. 
(B) REIMBURSEMENT OF SECRETARY.—The Secretary 
shall be reimbursed for costs incurred in implementing 
and administering the order. 
(j) BOOKS AND RECORDS OF BOARD.— 
(1) IN GENERAL.—^The order shall require the Board to— 
(A) maintain such books and records as the Secretary 
may prescribe, which shall be available to the Secretary 
for inspection and audit; 
(B) prepare and submit to the Secretary, from time 
to time, such reports as the Secretary may prescribe; and 
(C) account for the receipt and disbursement of all 
funds entrusted to the Board. 
(2) AUDIT.—^The Board shall cause books and records of 
the Board related to the order to be audited by an independent 
auditor at the end of each fiscal year. The Board shall submit Reports, 
a report of the audit to the Secretary. 
(k) INVESTMENT OF FUNDS.— 
(1) IN GENERAL.—^The order shall provide that the Board 
mav invest, pending disbursement, funds the Board receives 
under the oroer, only in— 
(A) obligations of the United States or any agency 
of the United States; 
(B) general obligations of any State or any political 
subdivision of a State; 
(C) any interest-bearing account or certificate of deposit 
of a bank that is a member of the Federal Reserve System; 
or 
(D) obligations fully guaranteed as to principal and 
interest by tne United States. 
(2) USE OF INCOME.—Income from any investment under 
paragraph (1) may be used for any purpose, for which the 
invested funds may be used. 
(1) PROfflBiTioN O
N USE OF FUNDS.— 
(1) IN GENERAL.—Ylxcept as provided in paragraph (2), the 
order shall prohibit any funds collected by the Board under 
the order from being used in any manner for the purpose 
of influencing legislation or government action or policy. 
(2) EXCEPTIONS.—Paragraph (1) shall not apply to— 
(A) t^e development and recommendation to the Sec-
retary of eunendments to the order; or 
(B) the communication to appropriate government offi-
cials, in response to a request made by the officials, of 
information relating to the conduct, implementation, or 
results of promotion, research, consumer information, edu-
cation, industry information, or producer information 
activities under the order. 
(3) FALSE OR MISLEADING CLAIMS.—A plan or project con-
ducted 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 pajrment to a producer, feeder, or handler for sheep 
108 STAT. 4222 
PUBUC LAW 103-407—OCT. 22,1994 
or sheep products, each importer and exporter of sheep or 
sheep products, and each person marketing sheep products 
of the person's own production to maintain, and make available 
for inspection, such books and records as may be required 
by the order and file reports at the time, in the manner, 
and having the content prescribed by the order. 
(2) USE OF INFORMATION.— 
(A) IN GENERAL.—Information from the records or 
reports shall be made available to the Secretary for the 
administration or enforcement of this Act, or any order 
or regulation issued under this Act. 
(B) OTHER INFORMATION.—The Secretary shall author-
ize the use under this Act of information regarding persons 
paying producers, feeders, importers, handlerp, or proc-
essors that is accumulated under a law or regulation other 
than this Act or a regulation issued under this Act. 
(3) CONFIDENTIALITY.— 
(A) IN GENERAL.—Except as otherwise provided in this 
Act, all information obtained under paragraph (1) or (2) 
shall be kept confidential by all ofiEicers and employees 
of the Department and of the Board. 
(B) DISCLOSURE.—^Information referred to in subpara-
graph (A) mav be disclosed only if— 
(i) the Secretary considers the information rel-
evant; 
(ii) the information is revealed in a judicial 
proceeding or administrative hearing brought at the 
direction or on the request of the Secretary or to which 
the Secretary or any ofiScer of the Department is a 
party; and 
(iii) the information relates to this Act. 
(C) GENERAL STATEMENTS.—^Nothing in this paragraph 
prohibits— 
(i) the issuance of general statements, based on 
the reports, of the number of persons subject to an 
order or statistical data collected from the persons, 
which statements do not identify the information fur-
nished by any person; or 
(ii) the publication, by direction of the Secretary, 
of the name of any person violating any order and 
a statement of the particular provisions of the order 
violated by the person. 
i 
(D) ADMINISTRATION.—^No information obtained under 
this Act may be made available to any agenqr or officer 
of the Federal Government for any purpose other than 
the implementation of this Act or any investigatory or 
enforcement action necessary for the implementation of 
this Act. 
(E) PENALTY.—^Any person who willfully violates this 
paragraph, on conviction, shall be subject to a fine of not 
more than $1,000 or to imprisonment for not more than 
1 year, or both, and if the person is an officer or employee 
of the Board or the Department, shall be removed from 
office. 
(n) OTHER TERMS AND CONDITIONS.—^The order shall provide 
such terms and conditions, not inconsistent vdth this section, as 
are necessary to carry out the order, including provisions for the 
PUBLIC LAW 103-407—OCT. 22,1994 
108 STAT. 4223 
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 imder 
section 4, the Secretary shall conduct a referendum among 
producers, feeders, and importers who, during a representative 
period as determined by the Secretary, have been engaged 
in the production, feeding, or importation of sheep or sheep 
products for the purpose of ascertaining whether the order 
shall go into effect. 
(2) APPROVAL OF ORDER.—^The order shall become effective 
only if the Secretary determines that the order has been 
approved by not less than a majority of the producers, feeders, 
and importers voting in the referendum or at least % of the 
production represented by persons voting in the referendum. 
(b) ADDITIONAL REFERENDA.— 
(1) IN GENERAL.—^After the initial referendum, on the 
request of a representative group comprising 10 percent or 
more of the producers, feeders, and importers who, during 
a representative period as determined by the Secretary, have 
been engaged in the production, feeding, importetion, or 
processing of sheep or sheep products, the [Secretary shall con-
duct a referendum of producers, feeders, and importers to deter-
mine whether the producers, feeders, and importers favor the 
termination or suspension of the order. 
(2) SUSPENSION OR TERMINATION.—If the Secretary deter-
mines that suspension or termination of the order is favored 
by a msgority of the producers, feeders, and importers voting 
in the referendum or at least % of the production represented 
by the persons voting in the referendum, the Secretary shall 
suspend or terminate— 
(A) collection of assessments under the order not later 
than 180 days after the determination; and 
(B) the order in an orderly manner as soon as prac-
ticable 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 Sec-
retary determines that the reimbursement would be overly 
burdensome and costly. 
(2) DATE.—Each referendum under this section shall be 
conducted on a date esteblished by the Secretory, under a 
procedure by which producers, feeders, and importers intending 
to vote in the referendum shall certify that the producers, 
feeders, and importers were engaged in the production, feeding, 
or importotion of sheep or sheep products during the represent-
ative period and, on the same day, shall be provided an oppor-
tunity to vote in the referendum. 
7 use 7105. 
108 STAT. 4224 
PUBLIC LAW 103-407—OCT. 22, 1994 
(3) PLACE.—Referenda under this section shall be conducted 
at locations determined by the Secretary. Absentee mail ballots 
shall be furnished by the Secretary on request made in person, 
by mail, or by telephone. 
(4) ALLOCATION OF PRODUCTION.—^The Secretary shall 
determine a method of allocating, by a pro rata percentage 
of annual projected or actual assessments from importers, the 
volume of production represented by importers in referenda 
conducted pursuant to this section. 
7 use 7106. 
SEC. 7. PETITION AND REVIEW. 
(a) PETITION.— 
(1) IN GENERAL.—^A person subject to an order issued under 
this Act may file with the Secretary a petition— 
(A) stating that the order, any provision of the order, 
or any obligation imposed in connection with the order 
is not established in accordance with law; and 
(B) requesting a modification of the order or an exemp-
tion fi-om the order. 
(2) HEARINGS.—^The petitioner shall be given an oppor-
tunity for a hearing on the petition, in accordance with regula-
tions issued by the Secretary. 
(3) RULING.—^After the hearing, the Secretary shall make 
a ruling on the petition. The ruUng shall be final if the ruling 
is in accordance with law. 
(b) REVIEW.— 
(1) COMMENCEMENT OF ACTION.—The district court of the 
United States for any district in which a person who is a 
petitioner under subsection (a) resides or carries on business 
shall have jurisdiction to review the ruling on the petition 
of the person, if a complaint for that purpose is filed not 
later than 20 days after the date of the entry of the ruling 
by the Secretary under subsection (a)(3). 
(2) PROCESS.—Service of process in a proceeding may be 
conducted on the Secretary by dehvering a copy of the complaint 
to the Secretary, under such rules or regulations as are consid-
ered necessary by the Secretary to facilitate the service of 
process. 
(3) REMANDS.—If the court determines that the ruling is 
not in accordance with law, the court shall remand the matter 
to the Secretary with directions— 
(A) to make such ruling as the court shall determine 
to be in accordance with law; or 
(B) to take such further action as, in the opinion of 
the court, the law requires. 
7 use 7107. 
SEC. 8. ENFORCEMENT. 
(a) JURISDICTION.—Each district court of the United States 
shall have jurisdiction specifically to enforce, and to prevent and 
restrain a person from violating, an order or regulation issued 
under this Act. 
(b) REFERRAL TO ATTORNEY GENERAL.—^A civil action authorized 
to be brought under this section shall be referred to the Attorney 
Greneral for appropriate action, except that the Secretary is not 
required to refer to the Attorney Greneral a violation of this Act, 
if the Secretary believes that the administration £md enforcement 
of this Act would be adequately served by providing a suitable 
PUBLIC LAW 103-407—OCT. 22, 1994 
108 STAT. 4225 
written notice or warning to the person who committed the violation 
or by an administrative action under section 7. 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.—^A person who willfully violates an 
order or regulation issued by the Secretary under this Act 
may be assessed by the Secretary— 
(A) a civil penalty of not more than $1,000 for each 
such violation; and 
(B) in the case of a willful failure to pay, collect, 
or remit an assessment as required by the order, an addi-
tional penalty equal to the amount of the assessment. 
(2) SEPARATE OFFENSE.—Each violation shall be a separate 
offense. 
(3) CEASE-AND-DESIST ORDERS.—In addition to, or in lieu 
of, the civil penalty, the Secretary may issue an order requiring 
the person to cease and desist from violating the order or 
regulation. 
(4) NOTICE AND HEARING.—^No order assessing a penalty 
or cease-and-desist order may be issued by the Secretary under 
this subsection unless the Secretary provides notice and an 
opportunity for a hearing on the record with respect to the 
violation. 
(5) FINALITY.—^An order assessing a penalty or a cease-
and-desist order issued under this subsection by the Secretary 
shall be final and conclusive unless the person against whom 
the order is issued files an appeal from the order with the 
United States court of appeals, as provided in subsection (d), 
not later than 30 days after the person receives notice of 
the order. 
(d) REVIEW BY COURT OF APPEALS.— 
(1) IN GENERAL.—^A person against whom an order is issued 
imder subsection (c) may obtain review of the order by— 
(A) filing, not later than 30 days afl«r the date of 
the order, a notice of appeal in— 
(i) the United States court of appeals for the circuit 
in which the person resides or carries on business; 
or 
(ii) the United States Court of Appeals for the 
District of Columbia Circuit; and 
(B) simultaneously sending a copy of the notice of 
appeal by certified mail to the Secretary. 
(2) RECORD.—^The Secretary shall file promptly in the court 
a certified copy of the record on which the Secretary has deter-
mined that the person has committed a violation. 
(3) STANDARD OF REVIEW.—^A finding of the Secretary under 
this section shall be set aside only if the finding is found 
to be unsupported by substantial evidence. 
(e) FAILURE TO OBEY ORDERS.—A person who fails to obey 
a valid cease-and-desist order issued by the Secretary under this 
section, after an opportunity for a hearing, shall be subject to 
a civil penalty assessed by the Secretary of not more than $500 
for each offense. Each day during which the failure continues shall 
be considered to be a separate violation of the order. 
(0 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 
108 STAT. 4226 
PUBLIC LAW 103-407—OCT. 22, 1994 
States for any district in which the person resides or carries on 
business. In the action, the validity and appropriateness of the 
order imposing the civil penalty shall not be subject to review, 
(g) ADDITIONAL REMEDIES.—The remedies provided in this sec-
tion shall be in addition to, and not exclusive of, other remedies 
that may be available. 
7 use 7108. 
SEC. 9. INVESTIGATIONS AND POWER TO SUBPOENA. 
(a) INVESTIGATIONS.—^The Secretary may make such investiga-
tions 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 con-
stitutes 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 admin-
ister oaths £ind affirmations, subpoena witnesses, compel the attend-
ance of witnesses, take evidence, and require the production of 
any records that are relevant to the inquiry. The attendance of 
witnesses and the production of any such records may be required 
from any place in the United States. 
(c) AID OF COURTS.—In the case of contumacy by, or refusal 
to obey a subpoena issued to, any person, the Secretary may invoke 
the aid of any court of the United States within the jurisdiction 
of which the investigation or proceeding is carried on, or where 
the person resides or carries on business, in order to require the 
attendance and testimony of the person or the production of records. 
The court may issue an order requiring the person to appear before 
the Secretary to produce records or to give testimony regarding 
the matter under investigation. 
(d) CONTEMPT.—^Any failure to obey the order of the court 
may be punished by the court as a contempt of the court. 
(e) PROCESS.—Process in any case under this section may be 
served in the judicial district in which the person resides or carries 
on business or wherever the person may be found. 
7 use 7109. 
SEC. 10. ADMINISTRATIVE PROVISIONS. 
(a) CONSTRUCTION.—Nothing in this Act preempts or supersedes 
any other program relating to sheep promotion, research, or 
information organized and operated under the laws of the United 
States or any State. 
(b) AMENDMENTS TO ORDERS.—The provisions of this Act 
applicable to an order shall be applicable to amendments to the 
order, except that the Secretary is not required to conduct a referen-
dum on a proposed amendment to an order. 
7 use 7110. 
SEC. 11. REGULATIONS. 
The Secretary may issue such regulations as are necessary 
to carry out this Act. 
7 use 7111. 
SEC. 12. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—^There are authorized to be appropriated for 
each fiscal year such sums as are necessary to carry out this 
Act. 
(b) ADMINISTRATIVE EXPENSES.—Funds appropriated under sub-
section (a) shall not be available for payment of the expenses 
PUBLIC LAW 103-407—OCT. 22, 1994 
108 STAT. 4227 
or expenditures of the Board in administering any provision of 
any order issued under this Act. 
Approved October 22,1994. 
LEGISLATIVE HISTORY—S. 2500: 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Oct. 4, considered and passed Senate. 
Oct. 5, considered and passed House. 
79-194 O—95—24 : QL 3 Part 5