[Federal Register Volume 62, Number 184 (Tuesday, September 23, 1997)]
[Rules and Regulations]
[Pages 49590-49593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25214]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 50

[Docket No. 97-061-1]


Expenses Associated With Transporting and Disposing of 
Tuberculosis-Exposed Animals

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: We are amending the regulations concerning animals destroyed 
because of tuberculosis to allow the U.S. Department of Agriculture to 
pay herd owners some of their expenses for transporting tuberculosis-
exposed cattle, bison, and cervids to slaughter or to the point of 
disposal, and for disposing of the animals. Prior to this interim rule, 
herd owners could only receive help with these costs for affected 
animals. Consequently, herd owners in some cases elected to keep 
exposed animals in a herd until testing revealed them to be either free 
of tuberculosis or affected with tuberculosis, or elected not to 
depopulate an affected herd, providing opportunity for further spread 
of the disease. This interim rule also makes minor changes to the 
provisions for paying some of the expenses for transporting 
tuberculosis-affected animals to the point of disposal and disposing of 
them. This interim rule is necessary to ensure continued progress 
toward eradicating tuberculosis in the U.S. livestock population.

DATES: Interim rule effective September 17, 1997. Consideration will be 
given only to comments received on or before November 24, 1997.

ADDRESSES: Please send an original and three copies of your comments to 
Docket No. 97-061-1, Regulatory Analysis and Development, PPD, APHIS, 
suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please 
state that your comments refer to Docket No. 97-061-1. Comments 
received may be inspected at USDA, room 1141, South Building, 14th 
Street and Independence Avenue SW., Washington, DC, between 8 a.m. and 
4:30 p.m., Monday through Friday, except holidays. Persons wishing to 
inspect comments are requested to call ahead on (202) 690-2817 to 
facilitate entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Dr. Mitchell A. Essey, Senior Staff 
Veterinarian, National Animal Health Programs, VS, APHIS, 4700 River 
Road Unit 36, Riverdale, MD 20737-1231, (301) 734-7727.

SUPPLEMENTARY INFORMATION:

Background

    Bovine tuberculosis (referred to below as tuberculosis) is a 
serious communicable disease of cattle, bison, and other species, 
including humans, caused by Mycobacterium bovis. Tuberculosis causes 
weight loss, general debilitation, and sometimes death. The regulations 
at 9 CFR part 50, ``Animals Destroyed Because of Tuberculosis'' (the 
regulations), administered by the Animal and Plant Health Inspection 
Service (APHIS) of the U.S. Department of Agriculture (the Department), 
provide for payment of Federal indemnity to owners of certain cattle, 
bison, cervids, and swine destroyed because of tuberculosis.
    As part of the program to control and eradicate tuberculosis in 
livestock, the payment of indemnity is intended to provide owners with 
an incentive for promptly destroying cattle, bison, and cervids that 
are affected with or exposed to tuberculosis and, in limited cases, 
swine that are exposed to tuberculosis. Because the continued presence 
of tuberculosis in a herd seriously threatens the health of other 
animals in that herd and possibly other herds, the prompt destruction 
of tuberculosis-affected and -exposed animals is critical if 
tuberculosis eradication efforts in the United States are to succeed.
    As set forth in Sec. 50.4 of the regulations, cattle, bison, and 
cervids are classified as affected with tuberculosis on the basis of an 
intradermal tuberculin test applied by a Federal, State, or an 
accredited veterinarian, or by other diagnostic procedure approved in 
advance by the Administrator of APHIS. Cattle, bison, and cervids are 
classified as exposed to tuberculosis when such cattle, bison, and 
cervids (1) are part of a known affected herd, or (2) are found to have 
moved from an affected herd before the time infection was disclosed in 
the herd and after the time the herd had

[[Page 49591]]

apparently become affected, or (3) are found to have been exposed by 
virtue of nursing an affected dam.
    For affected cattle, bison, and cervids eligible for indemnity, the 
regulations provide for Federal help in paying a portion of the 
expenses incurred by owners in transporting the animals to the point of 
disposal, and disposing of the animals (see Sec. 50.8). However, there 
are no similar provisions for paying a portion of the expenses of 
transporting tuberculosis-exposed cattle, bison, and cervids to 
slaughter or to the point where disposal will take place, or disposing 
of these animals.
    When the provisions concerning payment of expenses for transporting 
and disposing of affected animals were added to the regulations in 
1980, it was done because many slaughtering establishments were 
refusing to accept affected animals, and the animals often had to be 
shipped long distances to slaughtering plants that would accept them, 
or had to be disposed of by other means, such as by burial, 
incineration, or rendering. The refusal to take affected animals was 
due, at least in part, to the requirement that meat taken from affected 
animals and intended for consumption be cooked, for public health 
reasons, thereby increasing slaughtering costs and reducing the value 
of the meat. Most slaughtering establishments continued to accept 
tuberculosis-exposed animals, however, because meat from a 
tuberculosis-exposed animal may be used without restriction if the 
animal is found free of tuberculosis upon inspection at slaughter.
    Today, however, the incidence of tuberculosis in the United States 
has declined markedly. As we approach eradication, far fewer animals, 
either affected with or exposed to tuberculosis, are moving to 
slaughter. Many slaughtering establishments are not willing to take 
even tuberculosis-exposed animals. Consequently, tuberculosis-exposed 
animals must sometimes be shipped long distances to slaughtering plants 
that will accept them. In such cases, rather than pay for such long-
distance shipping, some owners opt to keep the exposed animals in their 
herd until testing reveals them to be either free of tuberculosis or 
affected with tuberculosis, or elect not to depopulate an affected 
herd. This ``wait and see'' approach provides opportunity for the 
disease to progress and spread, particularly in herds that have 
received an animal subsequently identified as tuberculosis-exposed.
    It is possible that, if the number of slaughtering establishments 
willing to take exposed animals declines further, some owners of 
exposed animals may need to find other means of disposal. And whereas 
slaughtering establishments generally pay some salvage value for the 
meat from exposed animals, owners having to dispose of their animals by 
other means would have to pay all costs for that disposal and could 
expect no salvage value from their animals. Under these circumstances, 
owners might choose to keep exposed animals in the herd, thereby 
impeding tuberculosis eradication efforts in the United States.
    Therefore, we are amending Sec. 50.8 to allow the Department to pay 
herd owners some of their expenses associated with transporting 
tuberculosis-exposed cattle, bison, and cervids to slaughter or to the 
point where disposal will take place, and disposing of the animals. We 
believe this action is necessary to ensure continued progress toward 
eradicating tuberculosis in the United States. Specifically, the 
regulations, as amended, will allow the Department to pay herd owners 
one-half the expenses of transporting tuberculosis-exposed cattle, 
bison, and cervids to slaughter or to the point where disposal will 
take place, and disposing of the animals, provided that the Department 
may pay more than one-half of the expenses when the Administrator of 
APHIS determines that doing so will contribute to the tuberculosis 
eradication program. The APHIS Veterinarian in Charge for the State in 
which the animals reside must approve the payment in advance in 
writing. For reimbursement to be made, the owner of the animals must 
present the APHIS Veterinarian in Charge with a copy of either a 
receipt for expenses paid or a bill for services rendered. Any bill for 
services rendered by the owner may not be greater than the normal fee 
charged by commercial haulers or renderers for similar services.
    Section 50.8 has contained provisions, applicable to owners of 
tuberculosis-affected animals, requiring (1) that claims for payment of 
transportation or disposal expenses be made on forms furnished by 
APHIS, (2) that the forms be signed by an APHIS or State 
representative, or jointly by them, and (3) that the owner of the 
animals also sign the forms certifying acceptance of the amount 
claimed. APHIS will no longer require use of special claims forms for 
payment of expenses for disposal or transportation of tuberculosis-
affected animals. Rather, the owner will be asked simply to document 
those expenses by submitting to the Veterinarian in Charge a copy of 
either a receipt for expenses paid or a bill for services rendered. 
Therefore, we are amending Sec. 50.8 to remove the provisions 
concerning forms for payment of expenses for disposal or transportation 
of tuberculosis-affected animals. Instead, Sec. 50.8 will require 
owners of affected animals to present the APHIS Veterinarian in Charge 
with a copy of either a receipt for expenses paid or a bill for 
services rendered.
    We are also amending Sec. 50.8 to allow the Department to pay herd 
owners more than one-half of the expenses for transporting 
tuberculosis-affected cattle, bison, and cervids to slaughter or to the 
point where disposal will take place, and disposing of the animals, 
when the Administrator of APHIS determines that doing so will 
contribute to the tuberculosis eradication program.
    Finally, we are amending Sec. 50.8 to remove the provision that the 
Department will not pay any portion of expenses of transporting or 
disposing of affected animals when the transportation or disposal is 
provided by the owner of the affected animals. This no longer appears 
to be a necessary prohibition because owners can often provide 
transportation and carry out disposal for less money than they would 
have to pay someone else to do it.

Immediate Action

    The Administrator of the Animal and Plant Health Inspection Service 
has determined that there is good cause for publishing this interim 
rule without prior opportunity for public comment. Immediate action is 
necessary to facilitate the prompt removal and destruction of 
tuberculosis-exposed animals from U.S. livestock herds. Of particular 
concern at this time is the prompt removal and destruction of 
tuberculosis-exposed cattle on the Island of Molokai, in Hawaii, where 
tuberculosis was recently confirmed in one herd of cattle. Because 
wildlife on this small island intermingles with the cattle, the cattle 
must be removed as quickly as possible to minimize the risk that 
tuberculosis will be spread both to wildlife and to cattle in 
neighboring herds. Outlets for tuberculosis-exposed animals in Hawaii 
are very limited and, for animals that have not yet reached market 
weight, nonexistent. About 160 animals in the affected herd on Molokai 
have not reached market weight and must be transported to the U.S. 
mainland for slaughter at considerable expense to the owner. This 
interim rule is necessary to assist the owner with transportation costs 
so that the cattle can be promptly removed from the island to minimize 
the potential spread of tuberculosis.
    Because prior notice and other public procedures with respect to 
this action

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are impracticable and contrary to the public interest under these 
conditions, we find good cause under 5 U.S.C. 553 to make it effective 
upon publication in the Federal Register. We will consider comments 
that are received within 60 days of publication of this rule in the 
Federal Register. After the comment period closes, we will publish 
another document in the Federal Register. It will include a discussion 
of any comments we receive and any amendments we are making to the rule 
as a result of the comments.

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been reviewed under Executive Order 12866. The rule 
has been determined to be not significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget.
    This interim rule amends the regulations concerning animals 
destroyed because of tuberculosis to allow the Department to pay herd 
owners one half of their expenses for transporting tuberculosis-exposed 
animals to slaughter or to the point of disposal, and for disposing of 
the animals. It also allows the Department to pay more than one half of 
the expenses for transporting and disposing of tuberculosis-affected or 
tuberculosis-exposed animals, when the Administrator of APHIS 
determines that doing so will contribute to the tuberculosis 
eradication program in the United States, and allows herd owners to be 
reimbursed for one half of their expenses for transporting or disposing 
of exposed or affected animals when the transportation or disposal is 
provided by the owner of the animals.
    The U.S. livestock industry relies on healthy animals for its 
economic well being. The well being of the overall U.S. economy 
depends, in turn, on a healthy livestock industry. The industry's role 
in the economy is significant. For example, the total value of U.S. 
livestock output in l991 was $66.6 billion, about half of the value of 
all agricultural production in the United States that year. The value 
of live animal exports and exports of meat products totalled $4.3 
billion in l991, equivalent to 10 percent of the value of all U.S. 
agricultural exports that year. In l996, there were 1,194,390 U.S. 
operations with cattle and calves, and the inventory of cattle and 
calves at the end of that year stood at 101.2 million head. The value 
of cattle and calves in the United States in l996 was more than $52 
billion.
    Recent studies on the economic impact of a tuberculosis epidemic in 
U.S. livestock are not available. However, an earlier study indicates 
that the impact would be significant. A comprehensive computer model 
developed by Canada in 1979 indicates that, if the tuberculosis 
eradication program were discontinued, annual losses in the United 
States would amount to over $1 billion. Another study, conducted in 
l972, concluded that the benefits of the tuberculosis eradication 
program exceeded costs by a 3.64 to 1 margin.
    APHIS's costs for administering this interim rule are not expected 
to exceed $67,500 annually, based on the following: We estimate that 
the average cost of transporting a tuberculosis-exposed animal to 
slaughter would be $50. In most cases, APHIS would pay one half of that 
cost, or $25. We estimate that approximately 2,000 tuberculosis-exposed 
cattle, bison, and cervids may be moved to slaughter or other point of 
disposal during the first year after this rule is effective, and that 
we would pay approximately $25 each toward transportation for three 
quarters of them, and an average of $50 each for one quarter of them. 
Costs would be lower in succeeding years as the prevalence of 
tuberculosis declines in the United States.
    Although the benefits of this interim rule (i.e., enhanced values 
for U.S. livestock, particularly in export markets) are difficult to 
quantify, those benefits should certainly exceed the cost of the 
program.
    The 2,000 tuberculosis-exposed animals that we estimate might be 
moved to slaughter or other disposal during the first year of this 
program represent about 20 different herds. About 4 of these herds, 
with 200-400 animals each, may be depopulated. The remainder of the 
herds are expected to send only a few animals each to slaughter. We 
estimate that no more than 15 of the herds are owned by entities that 
would be considered ``small'' under criteria (fewer than 200 cattle 
each) established by the Small Business Administration.
    Under these circumstances, the Administrator of APHIS has 
determined that this action will not have a significant economic impact 
on a substantial number of small entities.

Executive Order 12372

    This program/activity is listed in the Catalog of Federal Domestic 
Assistance under No. 10.025 and is subject to Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule: (1) Preempts all State and local laws and 
regulations that are in conflict with this rule; (2) has no retroactive 
effect; and (3) does not require administrative proceedings before 
parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This rule contains no new information collection or recordkeeping 
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.).

List of Subjects in 9 CFR Part 50

    Animal diseases, Bison, Cattle, Hogs, Indemnity payments, Reporting 
and recordkeeping requirements, Tuberculosis.

    Accordingly, 9 CFR part 50 is amended as follows:

PART 50--ANIMALS DESTROYED BECAUSE OF TUBERCULOSIS

    1. The authority citation for part 50 continues to read as follows:

    Authority: 21 U.S.C. 111-113, 114, 114a, 114a-1, 120, 121, 125, 
and 134b; 7 CFR 2.22, 2.80, and 371.2(d).

    2. Section 50.8 is revised to read as follows:


Sec. 50.8  Payment of expenses for transporting and disposing of 
affected and exposed animals.

    The Department may pay, when approved in advance in writing by the 
Veterinarian in Charge, one half the expenses of transporting affected 
or exposed cattle, bison, and cervids to slaughter or to the point 
where disposal will take place, and one half the expenses of 
destroying, burying, incinerating, rendering, or otherwise disposing of 
affected or exposed cattle, bison, and cervids; Provided that, the 
Department may pay more than one-half of the expenses when the 
Administrator determines that doing so will contribute to the 
tuberculosis eradication program. For reimbursement to be made, the 
owner of the animals must present the Veterinarian in Charge with a 
copy of either a receipt for expenses paid or a bill for services 
rendered. Any bill for services rendered by the owner must not be 
greater than the normal fee for similar services provided by a 
commercial hauler or renderer.


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    Done in Washington, DC, this 17th day of September 1997.
Craig A. Reed,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 97-25214 Filed 9-22-97; 8:45 am]
BILLING CODE 3410-34-P