[Federal Register Volume 64, Number 63 (Friday, April 2, 1999)]
[Proposed Rules]
[Pages 15938-15942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8068]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

9 CFR Part 201

RIN 0580-AA64


Regulations Issued Under the Packers and Stockyards Act

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Proposed Rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is proposing to amend existing scales and weighing regulations 
under the Packers and Stockyards (P&S) Act to include requirements 
regarding the weighing of feed whenever the weight of feed is a factor 
in determining payment or settlement to a livestock grower or poultry 
grower when livestock or poultry is produced under a livestock or 
poultry growing arrangement. The current regulations do not contain any 
requirements regarding the weighing of feed although, in some 
circumstances, feed weight affects payment or settlement to livestock 
growers and poultry growers. The proposed amendment to the current 
regulations will provide livestock growers and poultry growers with a 
measure of assurance that feed is accurately weighed or reasonably 
determined and feed weight is properly documented whenever feed weight 
affects payment or settlement to livestock growers or poultry growers.

DATES: Comments must be received on or before June 1, 1999.

ADDRESSES: Comments may be mailed to the U.S. Department of 
Agriculture, Deputy Administrator, Grain Inspection, Packers and 
Stockyards Administration, Packers and Stockyards Programs, Stop 3641, 
1400 Independence Avenue, SW, Washington, DC 20250-3641; Fax: 202-205-
3941; E-mail: [email protected]. Comments received may be inspected 
during normal business hours in the Office of the Deputy Administrator, 
Packers and Stockyards Programs.

FOR FURTHER INFORMATION CONTACT: Michael Caughlin, Director, Office of 
Policy/Litigation Support, (202) 720-6951.

SUPPLEMENTARY INFORMATION: GIPSA is proposing to amend existing scales 
and weighing regulations under the P&S Act to include requirements 
regarding the weighing of feed when the weight of feed is a factor in 
determining payment or settlement to livestock growers and

[[Page 15939]]

poultry growers when livestock or poultry is produced under a livestock 
or poultry growing arrangement.
    In February 1997, GIPSA issued an Advance Notice of Proposed 
Rulemaking (ANPRM) (62 FR 5935-37) soliciting comments from poultry 
growers, integrators, and other interested parties on the need for and 
the possible wording of regulations regarding comparison contracts, 
feed weighing procedures, and live poultry weighing.1 GIPSA 
received 3,415 comments, of which 1,129 expressed concerns regarding 
feed weighing procedures including concerns that feed is not properly 
weighed; the weight should be printed electronically and not 
handwritten; the truck delivering the feed should be sealed to secure 
each individual lot of feed; and excess feed that is returned should be 
reasonably determined and properly documented to credit the grower for 
the unused feed.
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    \1\ Comments on the other two issues addressed by the ANPRM 
(comparison contracts and live poultry weighing) are still being 
analyzed by GIPSA.
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    Many of those comments also suggested that feed scales should be 
better regulated by requiring semiannual testing by competent testing 
agencies or companies as is currently required for scales used to weigh 
live poultry. In addition, GIPSA received comments prior to initiating 
this rulemaking process from livestock growers and continues to receive 
complaints that indicate that these same concerns exist in the 
livestock industry. Furthermore, GIPSA continues to receive complaints 
from individual livestock growers and poultry growers concerning feed 
weights both with respect to feed deliveries and excess feed picked up 
or returned at the end of the growing cycle.
    This proposed rulemaking would address the concerns of livestock 
growers and poultry growers by requiring those firms supplying feed to 
growers, either directly or indirectly, to weigh feed accurately, 
reasonably determine the weight of excess feed and properly account for 
feed weight when the weight of the feed is a factor in determining 
payment or settlement to livestock growers or poultry growers when 
livestock or poultry is produced under a livestock or poultry growing 
arrangement. ``Growing arrangements'' with respect to poultry means 
``growing arrangements'' as defined in section 2(a)(9) of the Act (7 
U.S.C. 183(a)(9)). The term ``livestock growing arrangement'' means any 
growing or feeding arrangement under which a livestock grower raises 
and cares for livestock for delivery, in accord with a market agency, 
dealer, or packer's instructions. Feed weight is reasonably determined 
when the manner of determining the feed weight is mutually acceptable 
to both the feed provider and the livestock grower or poultry grower.
    Extending existing regulations governing weighing practices and 
technical requirements for scales to include weighing feed will result 
in uniform requirements for weighing that affect payment and settlement 
to livestock growers and poultry growers. Since feed weights are an 
integral part of the payment or settlement calculation in many 
livestock and poultry growing arrangements, basic scale requirements 
and weighing procedures are critical to assure payment or settlement 
based on accurate weights. Most States do not consider feed scales as 
commercial devices unless the feed is sold directly to the general 
public. Therefore, feed scales that would fall under the purview of 
this proposed rule, which are not generally used to sell feed directly 
to the general public, are usually not required to be tested by State 
weights and measures officials. Thus, State regulatory oversight of the 
weighing of feed delivered to livestock growers or poultry growers is 
not adequate to address the concerns of these industries.
    This proposed rule would modify Secs. 201.49, 201.71, 201.72, and 
201.73 of the regulations to include requirements regarding the 
weighing of feed whenever feed weight is used as a factor in 
determining payment or settlement to a livestock grower or poultry 
grower when livestock or poultry is produced under a livestock or 
poultry growing arrangement. The proposed modifications in these 
sections will make the requirements for feed weighing consistent with 
the requirements for the weighing of livestock and live poultry.
    Specifically, Sec. 201.49 would be amended to include a paragraph 
(c) which would require a scale ticket be issued with specified 
information pertaining to the weight and identification of the lot of 
feed consistent with the other scale ticket requirements included in 
this section. Section 201.71 would be amended to require that scales 
weighing feed: (1) Be installed, maintained, operated and tested in 
accordance with the National Institute of Standards and Technology 
(NIST) Handbook 44, 1996 edition, entitled ``Specifications, 
Tolerances, and Other Technical Requirements for Weighing and Measuring 
Devices'; (2) be equipped with a printing device used for recording 
weight; (3) be of sufficient length and capacity to weigh an entire 
load when feed is weighed on a vehicle scale; and (4) be found, upon 
test and inspection, to be in a condition to provide accurate weight. 
Section 201.72 would be amended to include scales used to weigh feed in 
the requirement that scales be tested twice during each calendar year 
at intervals of approximately 6 months by competent persons and that 
copies of test reports be furnished to the P&S Programs regional 
office. Section 201.73 would be amended to require that scales used to 
weigh feed be operated by qualified persons in accordance with the 
regulations.
    Section 201.55 would be amended to require that the actual weight 
of feed be shown on scale tickets or otherwise be explained and that 
the weight of picked up or returned excess feed be reasonably 
determined, documented and credited back to the livestock grower or 
poultry grower. Feed weight is reasonably determined when the manner of 
determining the feed weight is mutually acceptable to both the feed 
provider and the livestock grower or poultry grower.
    The proposed rulemaking should not impose any significant 
additional regulatory burden on the affected industries since the feed 
scales of many subject firms are routinely tested, whether by State 
weights and measures organizations or by private scale companies as a 
normal business practice. Recordkeeping under the proposed regulations 
would impose little burden upon subject firms since a majority of the 
affected entities utilize adequate weighing and documentation 
procedures. Under current regulations, firms subject to the P&S Act are 
not required to file copies of their feed scale test reports with P&S, 
although the proposed regulations will require firms subject to the P&S 
Act to file copies of the scale test reports with the appropriate P&S 
regional office.

Executive Order 12866

    This rule has been determined to be significant for the purpose of 
E.O. 12866 and, therefore, has been reviewed by the Office of 
Management and Budget.

Executive Order 12988

    This rule has been reviewed under E.O. 12988, Civil Justice Reform, 
and is not intended to have retroactive effect. This amendment will not 
pre-empt State or local laws, regulations, or policies unless they 
present an irreconcilable conflict with this rule.

Effects on Small Entities

    GIPSA proposes to amend Secs. 201.49, 201.55, 201.71, 201.72, and 
201.73 to include feed weighing when the weight of feed is a factor in 
determining payment or settlement to livestock

[[Page 15940]]

growers or poultry growers. The additional information collection is 
required to provide such growers assurance that feed scales are being 
tested and maintained properly, that feed is accurately weighed or 
reasonably determined, and that recipients of feed are receiving proper 
and adequate documentation of the feed weight.
    The economic impact of the proposed regulations will be minimal. 
Approximately 260 poultry integrators currently supply feed to poultry 
growers and an estimated 50 additional entities operating subject to 
the P&S Act currently supply feed to livestock growers where the weight 
of feed is an integral factor in determining payment or settlement to 
livestock growers or poultry growers. Most subject firms deliver feed 
directly from their own feed mills, but a few order feed from 
independent feed mills for delivery to livestock growers or poultry 
growers. In each case, subject firms would be responsible for ensuring 
that scales used to determine the weights of feed have a printing 
device and conform to the specifications of the NIST Handbook 44 (H-
44), 1996 edition. Currently, most feed scales have a weight printing 
device and conform with H-44 requirements. Scale installation companies 
usually do not install a scale system that is not approved or 
appropriate for weighing feed under the proposed amended regulations. 
Therefore, we do not anticipate any significant economic impact.
    Under the proposed regulation, subject firms would be required to 
test their scales twice a year and submit a copy of the test reports to 
the appropriate P&S regional office. Most entities currently have their 
scales tested at least twice a year either by State weights and 
measures officials or by private scale companies which would satisfy 
the semiannual testing requirement. Those entities not conducting two 
scale tests a year would be required to employ a scale company to test 
the scale a second time during the year or request a second test from 
the State. Feed manufacturers, as is customary in most industries 
dealing in bulk commodities, have their scales tested frequently to 
ensure accurate weights, prevent system malfunction, and avoid down 
time.
    There would be a minimal recordkeeping burden on the industry to 
submit a copy of the scale test report, on a semiannual basis, to the 
P&S regional office. This burden would entail obtaining a copy of the 
scale test report, which is completed by either the State or private 
scale company as a matter of routine documentation, and mailing it to 
the P&S regional office. Many States and scale companies mail the 
copies of the scale test reports to the P&S regional office for the 
customer.
    Compliance with the requirements for scale tickets is projected to 
cause minimal burden on the industry. Those companies that do not print 
a scale ticket for feed or that print scale tickets that do not include 
all the information proposed in the amendment would have to change 
their procedures to include the required information. However, the 
additional time to add the required information, such as truck or 
trailer numbers, grower's name, and whether the truck driver was on or 
off at the time of weighing, is insignificant.
    In addition, subject firms would be required to retain weight 
records in accordance with the provisions of the proposed regulatory 
amendment. In general, this does not entail any retention burden beyond 
that of normal and customary business practices.
    GIPSA has determined that this proposed rule will not have a 
significant economic impact on a substantial number of small entities 
as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
The proposed rule will affect entities in contractual relationships 
with livestock growers or poultry growers when those entities supply 
feed, either directly or indirectly, to livestock growers or poultry 
growers and the weight of the feed is a factor in payment or settlement 
to growers. Presently, most of the entities that will be affected by 
this proposed rule are poultry slaughterers and processors of chickens 
with more than 500 employees and thus do not meet the requirements for 
small entities as defined in Section 3 the Small Business Act (13 CFR 
part 121(3)). Even though there may be some affected entities that 
could be considered small entities, the proposed rule, in most cases, 
would not require any substantial incurrence of expense or change in 
the routine operations for entities of any size.

Information Collection and Recordkeeping Requirements

    The reporting and recordkeeping requirements in Part 201 have been 
previously approved by the Office of Management and Budget under 
control number 0580-0015. Currently, Secs. 201.49 and 201.72 require, 
in brief, that: (1) Scale tickets with certain required information be 
retained with the accounting files, and (2) scale test reports be sent 
to the P&S regional office. The additional requirements proposed herein 
would require persons subject to the P&S Act, where the weight of the 
feed is a factor in determining payment or settlement to livestock 
growers or poultry growers, to produce scale tickets in accordance with 
the same requirements that are imposed on those operating livestock, 
poultry, and monorail scales and to provide copies of scale test 
reports to the P&S regional office.
    In accordance with section 3507(d) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection and 
recordkeeping requirements included in this proposed rule have been 
submitted for approval to the Office of Management and Budget (OMB). 
Please send written comments to the Office of Information and 
Regulatory Affairs, OMB, Attention: Desk Officer for GIPSA, Washington 
, DC 20503. Please state that your comments refer to Regulations issued 
under the Packers and Stockyards Act, RIN 0580-AA64. Please send a copy 
of your comments to (1) Deputy Administrator, Packers and stockyards 
Programs, GIPSA, USDA, Stop 3641, 1400 Independence Avenue, SW, 
Washington, DC 20250-3641; and (2) Clearance Officer, OCIO, USDA, Room 
404-W, 1400 Independence Avenue, SW, Washington, DC 20250. A comment to 
OMB is best assured of having its full effect if OMB receives it within 
30 days of publication of this proposed rule. All comments will become 
a matter of public record.
    The estimated 300 firms that will be affected by this proposed 
amendment are expected to spend an estimated 10 additional hours per 
year complying with the semiannual scale testing requirements and the 
routine completion of scale tickets, resulting in a total increase of 
3,000 hours per year in the reporting burden of these firms. These 
estimates were derived from previously approved burden hours for the 
same regulatory report and recordkeeping requirements for weighing 
livestock and live poultry.
    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the functions of the Agency, 
including whether the information will have practical utility; (b) the 
accuracy of the Agency's estimate of the burden of the proposed 
collection of information including the validity of the methodology and 
assumptions used; (c) ways to enhance the quality, utility, and clarity 
of the information to be collected; and (d) ways to minimize the burden 
of the collection of information on those who are required to comply, 
including through the use of appropriate automated, electronic, 
mechanical, or other technological collection

[[Page 15941]]

techniques or forms of information technology.
    Implementing this proposed rule would change burdens in the 
currently approved collection of information to:
    Estimate of burden: Public reporting and recordkeeping burden for 
this collection of information is estimated to average 8.5 hours per 
response.
    Respondents: Livestock auction markets, livestock dealers, packer 
buyers, meat packers, and live poultry dealers.
    Estimated annual number of responses per respondent: 3.2.
    Estimated annual number of responses: 24,815.
    Estimated total annual burden on respondents: 304,106.
    The hours above (304,106) reflect the total burden hours for the 
current information collection in conjunction with the proposed 
amendment to the weighing regulations. The amended weighing regulation 
is calculated to add only an additional 3,000 burden hours.
    Copies of this information collection can be obtained from 
Clearance Officer, OCIO, USDA, room 404-W, 1400 Independence Avenue, 
Washington, DC 20250.

List of Subjects in 9 CFR Part 201

    Reporting and recordkeeping requirements, Trade practices
    For the reasons set forth in the preamble, 9 CFR part 201 is 
amended to read as follows:

PART 201--[Amended]

    1. The authority citation for Part 201 would be revised to read as 
follows:

    Authority: 7 U.S.C. 204, 228; 7 CFR 2.22, 2.81.

    2. Section 201.49 would be amended by revising the heading and 
adding paragraph (c) to read as follows:


Sec. 201.49  Requirements regarding scale tickets evidencing weighing 
of livestock, live poultry, and feed.

* * * * *
    (c) Feed. (1) Whenever feed is weighed by or on behalf of a 
stockyard owner, market agency, dealer, packer, or live poultry dealer 
where the weight of feed is a factor in determining payment or 
settlement to a livestock grower or poultry grower, a scale ticket 
shall be issued which shall show:
    (i) The name of the agency performing the weighing service or the 
name and location of the firm responsible for supplying the feed;
    (ii) The name and address of the livestock grower or poultry 
grower;
    (ii) The name or initials or number of the person who weighed the 
feed, or if required by State law, the signature of the weigher;
    (iv) The location of the scale;
    (v) The gross weight, tare weight, and net weight of each lot 
assigned to an individual grower, if applicable;
    (vi) The date and time gross weight and tare weight, if tare weight 
is applicable, are determined;
    (vii) The identification of each lot assigned to an individual 
grower by vehicle or trailer compartment number and seal numbers, if 
applicable;
    (viii) Whether the driver was on or off the truck at the time of 
weighing, if applicable; and
    (ix) The license number or other identification numbers of the 
truck and trailer, if weighed together, or trailer if only the trailer 
is weighed, if applicable.
    (2) Scale tickets issued under this paragraph shall be at least in 
duplicate form and shall be serially numbered and used in numerical 
sequence. One copy shall be retained by the person subject to the P&S 
Act, and a second copy shall be furnished to the livestock grower or 
poultry grower.

(Approved by the Office of Management and Budget under control 
number 0580-0015)

    3. Section 201.55 would be revised to read as follows:


Sec. 201.55  Purchases, sales, acquisitions, payments and settlements 
to be made on actual weights.

    (a) Except as provided in paragraph (b) of this section, whenever 
livestock or live poultry is bought, sold, acquired, paid, or settled 
on a weight basis, or whenever the weight of feed is a factor in 
determining payment or settlement to a livestock grower or poultry 
grower by a stockyard owner, market agency, dealer, packer, or live 
poultry dealer, payment or settlement shall be on the basis of the 
actual weight of the livestock, live poultry, and/or feed shown on the 
scale ticket. If the actual weight used is not obtained on the date and 
at the place of transfer of possession, this information shall be 
disclosed with the date and location of the weighing on the 
accountings, bills, or statements issued. Any adjustment to the actual 
weights shall be fully and accurately explained on the accountings, 
bills or statements issued, and records shall be maintained to support 
such adjustment.
    (b) Every stockyard owner, market agency, dealer, packer, and live 
poultry dealer shall reasonably determine, document, and account for 
the weight of any feed that is picked up from or returned by a 
livestock grower or poultry grower whenever the weight of the feed is a 
factor in determining the payment or settlement due to such livestock 
grower or poultry grower.

(Approved by the Office of Management and Budget under control 
number 0580-0015)

    4. Section 201.71 would be revised to read as follows:


Sec. 201.71  Scales; accurate weights, repairs, adjustments or 
replacements after inspection.

    (a) All scales used by stockyard owners, market agencies, dealers, 
packers, and live poultry dealers to weigh livestock, livestock 
carcasses, live poultry, or feed for the purposes of purchase, sale, 
acquisition, payment, or settlement shall be installed, maintained, and 
operated to ensure accurate weights. Such scales shall meet applicable 
requirements contained in the General Code, Scale Code, and Weights 
Code of the 1996 edition of National Institute of Standards and 
Technology (NIST) Handbook 44, ``Specifications, Tolerances, and Other 
Technical Requirements for Weighing and Measuring Devices,'' which is 
hereby incorporated by reference. This incorporation by reference was 
approved by the Director of the Federal Register on January 11, 1989. 
These materials are incorporated as they exist on the date of approval 
and a notice of any change in these materials will be published in the 
Federal Register. This handbook is for sale by the Superintendent of 
Documents, U.S. Government Printing Office, Washington, DC 20402. It is 
also available for inspection at the Office of the Federal Register 
Information Center, 800 North Capitol Street, N.W., Suite 700, 
Washington, DC 20408.
    (b) All scales used by stockyard owners, market agencies, dealers, 
packers, and live poultry dealers to weigh livestock, livestock 
carcasses, live poultry or feed for the purpose of purchase, sale, 
acquisition, payment, or settlement of livestock or live poultry and 
all scales used for the purchase, sale, acquisition, payment, or 
settlement of livestock on a carcass weight basis shall be equipped 
with a printing device which shall record weight values on a scale 
ticket or other document.
    (c) All vehicle scales used to weigh livestock, live poultry or 
feed for purposes of purchase, sale, acquisition, payment, or 
settlement of livestock or live poultry shall be of sufficient length 
and capacity to weigh the entire vehicle as a unit: Provided, That a 
trailer may be uncoupled from the tractor and weighed as a single unit.
    (d) No scale shall be operated or used by any stockyard owner, 
market agency, dealer, packer, or live poultry dealer to

[[Page 15942]]

weigh livestock, livestock carcasses, live poultry, or feed for 
purposes of purchase, sale, acquisition, payment, or settlement of 
livestock, livestock carcasses or live poultry unless it has been found 
upon test and inspection, as specified in Sec. 201.72, to be in a 
condition to give accurate weight. If a scale is inspected or tested 
and found to be in a condition to give incorrect or inaccurate weights 
or if any repairs, adjustments or replacements are made to a scale, it 
shall not be used until it has been inspected and tested and determined 
to meet all accuracy requirements specified in the regulations.
    5. Section 201.72 would be revised to read as follows:


Sec. 201.72  Scales; testing of.

    (a) Each stockyard owner, market agency, dealer, packer, or live 
poultry dealer who weighs livestock, live poultry, or feed for purposes 
of purchase, sale, acquisition, payment, or settlement of livestock or 
live poultry, or who weighs livestock carcasses for the purpose of 
purchase on a carcass weight basis, or who furnishes scales for such 
purposes, shall cause such scales to be tested by competent persons in 
accordance with the regulations at least twice during each calendar 
year at intervals of approximately 6 months. More frequent testing will 
be required in cases where the scale does not maintain accuracy between 
tests.
    (b) Each stockyard owner, market agency, dealer, packer, or live 
poultry dealer who weighs livestock, livestock carcasses, live poultry 
or feed for purposes of purchase, sale, acquisition, payment, or 
settlement of livestock, livestock carcasses or live poultry shall 
furnish reports of such tests and inspections on forms prescribed by 
the Administrator. The stockyard owner, market agency, dealer, packer 
or live poultry dealer shall retain one copy of the test and inspection 
report and shall file one copy with the P&S regional office for the 
region in which the scale is located.
    (c) When scales used for weighing livestock, livestock carcasses, 
live poultry, or feed are tested and inspected by an agency of a State 
or municipality or other governmental subdivision, the forms ordinarily 
used by such agency for reporting test and inspection of scales shall 
be accepted in lieu of the forms prescribed for this purpose by the 
Deputy Administrator if such forms contain substantially the same 
information.

(Approved by the Office of Management and Budget under control 
number 0580-0015)

    6. Section 201.73 would be revised to read as follows:


Sec. 201.73  Scale operators to be qualified.

    Stockyard owners, market agencies, dealers, packers, and live 
poultry dealers shall employ qualified persons to operate scales for 
weighing livestock, livestock carcasses, live poultry, or feed for the 
purposes of purchase, sale, acquisition, payment, or settlement of 
livestock, livestock carcasses, or live poultry and they shall require 
such employees to operate the scales in accordance with the 
regulations.

    Done at Washington, DC, this March 26, 1999.
Harold W. Davis,
Acting Administrator, Grain Inspection, Packers and Stockyards 
Administration.
[FR Doc. 99-8068 Filed 4-1-99; 8:45 am]
BILLING CODE 3410-EN-P