[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1280.217]

[Page 302-303]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XI--AGRICULTURAL MARKETING SERVICE (MARKETING AGREEMENTS AND 
      ORDERS; MISCELLANEOUS COMMODITIES), DEPARTMENT OF AGRICULTURE
 
PART 1280_LAMB PROMOTION, RESEARCH, AND INFORMATION ORDER--Table of Contents
 
        Subpart A_Lamb Promotion, Research, and Information Order
 
Sec. 1280.217  Lamb purchases.

    (a) Except as prescribed by regulations approved by the Secretary, 
each first handler, or exporter making payment to a producer, seedstock 
producer, or feeder for lambs purchased from such producer, seedstock 
producer, or feeder shall collect an assessment from the producer, 
seedstock producer, or feeder. Each producer, seedstock producer, or 
feeder shall pay such assessment to the first handler or exporter, at 
the rate of one-half cent ($.005) per pound of live lambs sold.
    (b) Except as otherwise specified in this subpart, a person shall 
not be considered a producer, seedstock producer, or feeder within the 
meaning of this subpart if;
    (1) The person's only share in the proceeds of a sale of lambs is a 
sales commission, handling fee, or other service fee; or
    (2) The person:
    (i) Acquired ownership of the lambs to facilitate the transfer of 
ownership of such lambs from the seller to a third party,
    (ii) Resold such lambs no later than 10 days from the date on which 
the person acquired ownership, and
    (iii) Certified, as required by regulations recommended by the Board 
and

[[Page 303]]

prescribed by the Secretary, that the requirements of this provision 
have been satisfied.
    (c) Each person processing or causing to be processed lambs or lamb 
products of that person's own production and marketing such lambs or 
lamb products, shall pay an assessment on such lambs or lamb products on 
the live weight of the lamb at the time of slaughter at the rate 
established in paragraph (e) of this section. In addition, pursuant to 
Sec. 1280.108, such individual would be considered a first handler and 
would be required by Sec. 1280.219 to pay an additional assessment of 
$.30 per head. As the first handler, the individual must remit the total 
amount of assessment to the Board.
    (d) A person who is a market agency; i.e. commission merchant, 
auction market, or livestock market in the business of receiving lambs 
for sale or commission for or on behalf of a producer, seedstock 
producer, or feeder shall collect an assessment from the producer, 
seedstock producer, or feeder and shall pass the collected assessments 
on to the subsequent purchaser pursuant to this subpart and regulations 
recommended by the Board and prescribed by the Secretary.
    (e) Rate. Except as otherwise provided, the rate of assessment shall 
be one-half of a cent ($.005 per pound) per pound on all live lambs 
sold. The rate of assessment may be raised or lowered no more than 
twenty-hundredths of a cent ($.002) in any one year. The Board may 
recommend any change to the Department. Prior to a change in the 
assessment rate, the Department will provide notice by publishing in the 
Federal Register any proposed changes with interested parties allowed to 
provide comment.
    (f) The collection of assessments pursuant to Sec. 1280.217, Sec. 
1280.218, and Sec. 1280.219 shall begin with respect to lambs 
purchased, or lambs or lamb products marketed on or after the effective 
date established by the Secretary and shall continue until terminated or 
suspended by the Secretary.
    (g) If the Board is not in place by the date the first assessments 
are to be collected, the Secretary shall have the authority to receive 
assessments and invest them on behalf of the Board, and shall pay such 
assessments and any interest earned to the Board when it is formed. The 
Secretary shall have the authority to promulgate rules and regulations 
concerning assessments and the collection of assessments, if the Board 
is not in place or is otherwise unable to develop such rules and 
regulations.
    (h) Payment remitted pursuant to this subpart shall be in the form 
of a negotiable instrument made payable to the Board. Such remittances 
and the reports specified in Sec. 1280.223 and Sec. 1280.225 shall be 
mailed to the location designated by the Board.