[Federal Register Volume 65, Number 66 (Wednesday, April 5, 2000)]
[Rules and Regulations]
[Pages 17758-17763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8236]


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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: Final rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is amending 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 amendment to the current regulations will provide 
livestock growers and poultry growers with a measure of assurance that 
feed weight is accurately or reasonably determined and feed weight is 
properly documented whenever feed weight affects payment or settlement 
to livestock growers or poultry growers when livestock or poultry is 
produced under a livestock or poultry growing arrangement.

EFFECTIVE DATE: May 5, 2000.

FOR FURTHER INFORMATION CONTACT: Dr. Michael J. Caughlin Jr., Director, 
Office of Policy/Litigation Support, GIPSA, USDA, 1400 Independence 
Ave., SW, Stop 3646, Washington, DC 20250-3646. He can be reached by 
phone at 202-720-6951.

SUPPLEMENTARY INFORMATION: GIPSA is amending existing scales and 
weighing regulations 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 poultry growers when livestock or 
poultry is produced under a livestock or poultry growing arrangement.

Background

    On February 12, 1997, GIPSA published an Advance Notice of Proposed 
Rulemaking (ANPRM) (62 FR 5935-5937) 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. 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 
measured and properly documented to credit the grower for the unused 
feed.
    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.
    On April 2, 1999, GIPSA published a Notice of Proposed Rulemaking 
(NPRM) (64 FR 15938--15942) proposing to amend existing scales and 
weighing

[[Page 17759]]

regulations under the 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.

Comments in Response to the NPRM

    We received 37 comments in response to the NPRM. Of the comments 
received, 25 supported the NPRM, 7 opposed, 2 were neutral and 3 
commented on issues other than those proposed in the NPRM. Commenters 
were located in the States of Alabama (1), Arkansas (5), Delaware (2), 
Georgia (2), Iowa (1), Maryland (1), Minnesota (3), Mississippi (1), 
Missouri (2), North Carolina (3), Pennsylvania (1), Virginia (3), and 
West Virginia (1). State location could not be determined for 6 
commenters, and 5 commenters were from the District of Columbia. 
Comments were received from: poultry trade associations (8), producer 
and grower associations (5), poultry growers (14), poultry integrators 
(7), feed companies (2), and a state weights and measures department.

Comments Supporting the NPRM

    Six growers commented that the proposed regulation changes would 
help ensure fair dealings between contract growers and integrators. A 
poultry integrator and a national trade association, which represents 
the producers/processors of more than 95 percent of the broiler/fryer 
chickens marketed in the United States, commented that the amendment 
will help to alleviate concerns that some growers have with respect to 
weighing feed. Three poultry integrators commented that the proposed 
feed weighing regulation either was reasonable, has been standard 
procedure in their firms for many years, or does not differ greatly 
from their present practices. A State farm association, whose State's 
poultry production was $730 million in cash receipts, commented it 
believes the substantive regulation governing feed weighing will 
improve company accuracy and fairness in determining growers' 
individual pay within a competitive pay or settlement system as well as 
the accountability of individual companies and production complexes. 
The nation's largest general farm association commented that GIPSA's 
action to strengthen production contract-related feed weighing rules is 
consistent with GIPSA's mission to facilitate the marketing of grains, 
livestock, poultry, and meat. A farmers' association, with 300,000 farm 
and ranch members, commented it believes the proposed rule is a good 
first step and supports the proposed rule. A national grower 
association stated that this rule is very important, and the rule 
should go a long way towards ensuring accurate weighing. A State 
poultry association and a national poultry association, which 
represents more than 95 percent of the U.S. turkey industry including 
all phases of growing and processing, commented that they support the 
basic concept of amending the regulations to regulate the weighing of 
feed under the P&S Act. A broiler trade association commented that, in 
general, it commends GIPSA for the proposed rule.

Comments Generally Opposing the NPRM

    Seven comments were filed in opposition to the NPRM. There were two 
general reasons given for opposing the NPRM. One was that the rule was 
not needed, and the other was that the rule did not go far enough. A 
feed company and a national trade association, representing about 1,000 
grain, feed, processing, and grain-related firms comprising 5,000 
facilities that handle more than two-thirds of all U.S. grains and 
oilseeds, commented that several provisions are redundant or 
inconsistent with existing Federal and State regulatory requirements 
that govern scales used to weigh feed. These comments cited two 
regulations: 21 CFR 225.30 and 225.130. These two regulations pertain 
to scales used in the production of a medicated feed of intended 
potency and purity and do not regulate scales used to weigh feed where 
the weight of feed is a factor in determining payment or settlement to 
livestock growers or poultry growers.
    A State trade association, representing country elevators and feed 
mills, commented that the NPRM unfairly focuses too much attention on 
feed weighing and feed delivery as factors affecting feed efficiency 
contracts and not enough on other factors such as ration density, 
sanitation and disease. Two growers commented that the proposed feed 
weighing regulation is inadequate to ensure that feed is accurately 
weighed or reasonably determined.

Objections or Concerns About Specific Parts of the NPRM

    Many commenters, both those in general support of and those in 
opposition to the rule, raised some objections or concerns about some 
part of the NPRM. These objections or concerns regarding the NPRM and 
GIPSA's response to those comments are as follows.
    Comment: Seals--Thirteen commenters mentioned the use of seals to 
seal feed bins or feed compartments. The comments ranged from seeing 
the use of seals as a small step forward or as a burden. The majority 
of the comments questioned the need for seals or objected to their use.
    Response: The proposed rule does not require each feed bin or feed 
compartment be sealed. However, if a feed supplier uses seals to help 
assure the grower receives all of his or her feed, the proposed rule 
requires a feed supplier to use numbered seals and record the seal 
numbers on the weigh ticket.
    Comment: Pick Up of Excess Feed--Eleven comments were received 
regarding excess feed that is picked up from a grower and the NPRM's 
proposal that Sec. 201.55(b) require the weight of excess feed be 
``reasonably determined'' using a ``mutually acceptable'' method. The 
comments ranged from asserting the language will not work, to 
suggesting that the language be clarified to indicate that alternative 
systems to weighing picked up excess feed on a scale are acceptable to 
determine feed weight.
    Response: To address the concerns raised in these comments, we have 
changed the language in Sec. 201.55(b) to read as follows. ``Whenever 
the weight of feed is a factor in determining payment or settlement to 
such livestock grower or poultry grower when the livestock or poultry 
is produced under a livestock or poultry growing arrangement, any feed 
that is picked up from or returned by a livestock grower or poultry 
grower must be weighed or its weight must be reasonably determined. 
When feed is picked up or returned and not weighed, the stockyard 
owner, market agency, dealer, packer, or live poultry dealer must 
document that the method used reasonably determines weight and is 
mutually acceptable to it and the livestock grower or poultry grower. 
The stockyard owner, market agency, dealer, packer, or live poultry 
dealer must document and account for the picked up or returned feed 
weight.''
    Comment: Scale Ticket Printing and Completion--Nine commenters 
mentioned scale ticket printing and completion. The comments primarily 
requested clarification on the information needed to adequately 
identify the feed delivery vehicle and grower/lot identification.
    Response: The amendment to Sec. 201.49 requires that scale tickets 
evidencing the weighing of feed contain the same information that is 
required on scale tickets completed when weighing live

[[Page 17760]]

poultry except that scale tickets do not need to include weather 
conditions or the number of poultry.
    Comment: Printing Tare, Gross and Net Weight--Eight comments were 
received related to printing tare, gross and net weight. The comments 
ranged from suggesting that handwritten net weight determined from 
mechanically printed gross and tare should be acceptable, to suggesting 
that printing a net weight on bulk weighing systems should be 
sufficient.
    Response: If the net weight is determined by the difference between 
scale-printed tare and gross weights and the mechanical or electronic 
printer does not have the capability to print the net weight, the net 
weight can be handwritten. On bulk weighing systems where only the net 
weight is determined, the gross and tare weights do not have to be 
printed.
    Comment: Scale Testing and Providing Report of Test to P&S Regional 
Offices--Five comments were received regarding testing and submission 
of the test reports to the P&S regional offices. The comments ranged 
from suggesting that this provision is redundant or inconsistent with 
existing Federal and State regulatory requirements for scales used to 
weigh feed to suggesting that scale test reports not be sent to the 
regional offices.
    Response: GIPSA's research did not identify any other Federal 
agency that has jurisdiction over all scales used to weigh feed where 
the weight of the feed is a factor in determining payment or settlement 
to livestock growers or poultry growers. The rule imposes the same 
requirements for scales used to weigh feed as for all other scales used 
by industry members who are subject to the P&S Act, including the 
requirement that scale test reports be sent to the appropriate P&S 
regional office.
    Comment: Qualified Scale Operator--Three comments were received 
requesting that ``qualified'' be defined or requesting guidance on what 
certification or training is required by the rule.
    Response: A scale operator is ``qualified'' if the operator is 
trained to operate scales in a manner that assures the accurate weight 
of livestock, livestock carcasses, live poultry, or feed. The rule does 
not require a specific training method to qualify someone to operate 
scales.

Other Comments to the NPRM

    GIPSA received several comments related to feed weighing but not 
directly related to the rule. These comments and GIPSA's response to 
the comments follow:
    Comment: GIPSA has specific authority to request the reweighing of 
livestock; however, no amendments were proposed to extend the Agency's 
authority to cover feed.
    Response: Sections 402 and 407 of the P&S Act (7 U.S.C. 222, 228) 
grant the Secretary the authority to issue regulations as may be 
necessary to carry out the provisions of the Act. Inaccurately weighed 
feed may preclude full payment to growers. Therefore, weighing feed 
inaccurately would constitute an unfair practice under sections 202 and 
312 of the Act. 7 U.S.C. 192, 213. Sections 402 and 407 authorize the 
Secretary to promulgate regulations governing the weighing of feed when 
feed weight affects payment or settlement to a producer or grower and 
to prevent violation of the Act. Therefore, no amendment to GIPSA's 
authority is necessary.
    Comment: The rule should provide for compensation to growers 
(livestock and poultry), plus punitive damages against integrators 
(live poultry dealers).
    Response: Administrative sanctions for violations of the Act by 
livestock firms are set forth in sections 203(b) (packers) and 312(b) 
(stockyard owners, market agencies, or dealers) of the P&S Act. 7 
U.S.C. 193(b), 213(b). Administrative sanctions for certain violations 
of the Act by live poultry dealers are set forth in section 411 of the 
Act. 7 U.S.C. 228b-2. Section 404 sets forth the procedures for 
prosecuting violations not covered by section 411. 7 U.S.C. 224. 
Section 308 of the Act sets forth the liability of subject entities to 
injured persons and the procedures to pursue a private right of action. 
7 U.S.C. 209.
    Comment: The rule should allow the grower (livestock or poultry) to 
be present for weighing if the grower so chooses.
    Response: The rule does not address this issue. However, livestock 
growers and poultry growers have the right to be present during the 
weighing of feed whenever the weight of feed is a factor in determining 
payment or settlement under a livestock or poultry growing arrangement.
    Comment: The rule should allow a grower to require feed trucks to 
weigh feed at the farm if the grower has a scale.
    Response: The rule does not address this issue. We do not have 
jurisdiction over growers, and we cannot require growers to maintain 
scales in compliance with regulations promulgated under the P&S Act.
    The rule addresses the concerns of livestock growers and poultry 
growers who produce livestock or poultry under a livestock or poultry 
growing arrangement. When the weight of the feed is a factor in 
determining payment or settlement to livestock growers or poultry 
growers, the rule requires stockyard owners, market agencies, dealers, 
packers, or live poultry dealers to weigh feed accurately, to weigh or 
reasonably determine the weight of excess feed that is picked up from 
or returned by the livestock grower or poultry grower and to properly 
account for feed weight. ``Growing arrangement'' with respect to 
poultry means ``poultry growing arrangements'' as defined in section 
2(a)(9) of the Act (7 U.S.C. Sec. 183(a)(9)). ``Growing arrangement'' 
with respect to livestock means an arrangement in which livestock is 
produced under contract with a packer. Weight of feed is not considered 
to be a factor in determining payment to livestock producers in feedlot 
transactions in which the producer is charged a fee based on feed 
costs.
    All feed scales, including those which are not generally used to 
sell directly to the general public and are usually not required to be 
tested by State weights and measures officials, fall under the purview 
of this rule. In most States, feed scales are not considered commercial 
devices unless the feed is sold directly to the general public. 
Therefore, State regulatory oversight of the weighing of feed delivered 
to livestock growers or poultry growers is not adequate to address the 
growers' concerns. Extending existing regulations of the P&S Act 
governing weighing practices and technical requirements for scales to 
include scales used to weigh feed will result in uniform requirements 
for weighing feed whenever feed weight affects the payment or 
settlement to livestock growers and poultry growers when livestock or 
poultry is produced under a livestock or poultry growing agreement. 
Basic scale requirements and weighing practices, therefore, will assure 
that payment or settlement is based on accurate weights whenever feed 
weight affects payment or settlement to livestock growers or poultry 
growers in livestock and poultry growing arrangements.
    This rule amends 9 CFR 201.49, 201.55, 201.71, 201.72, and 201.73 
to include requirements regarding the weighing of feed whenever feed 
weight 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 modifications in these 
sections make the requirements for feed weighing consistent with the 
requirements for weighing livestock and live poultry.

[[Page 17761]]

    Specifically, the rule amends Sec. 201.49 to include paragraph (c) 
which requires that scale tickets be issued whenever feed weight 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. The amendment specifies the information 
that must be shown on the scale ticket. Section 201.71 is 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 is amended to include scales 
used to weigh feed in the requirement that scales be tested twice 
during each calendar year at intervals of approximately six months by 
competent persons and that copies of test reports be furnished to the 
appropriate P&S Programs' regional office. Section 201.73 is amended to 
require that stockyard owners, market agencies, dealers, packers and 
live poultry dealers employ, or insure that their feed suppliers 
employ, qualified persons to operate scales used to weigh feed and that 
they require such employees to operate these scales in accordance with 
the regulations.
    Section 201.55 is amended to require that the actual weight of feed 
be shown on scale tickets or otherwise explained and that picked up or 
returned feed be weighed or its weight reasonably determined. The 
stockyard owner, market agency, dealer, packer, or live poultry dealer 
must document and account for the picked up or returned feed weight. 
The language of the amendment to section 201.55(b) has been modified 
slightly from the language of the proposed rule. The modification 
clarifies the rule's requirements but does not change the requirements 
as proposed in the NPRM.
    This rule will not impose any significant additional regulatory 
burden on the affected industries since the feed scales of many subject 
firms are already routinely tested by State weights and measures 
organizations or by private scale companies. The additional 
recordkeeping required under this rule will impose little burden upon 
subject firms since a majority of the affected entities already utilize 
adequate weighing and documentation procedures. Subject firms that 
choose to use seals may incur costs to document the use of numbered 
seals if they are not currently documenting their use of seals. 
However, the use of seals is optional, and, according to seal makers 
contacted by the Agency, numbered seals are less expensive than 
unnumbered seals. Therefore, at least part of the cost of documentation 
may be offset by the lower cost of numbered seals.

Civil Rights Statement

    Pursuant to Departmental policy, GIPSA has considered the potential 
civil rights implications of this rule on minorities, women and persons 
with disabilities to ensure that no person or group will be 
discriminated against on the basis of race, color, sex, national 
origin, religion, age, disability, or marital or familial status. This 
rule will apply in the same manner to all persons and groups whose 
activities are regulated, regardless of race, color, sex, national 
origin, religion, age, disability, or marital or familial status.

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. A separate regulatory impact assessment was 
prepared and is available from Dr. Michael J. Caughlin, Jr., Director, 
Office of Policy/Litigation Support, GIPSA, USDA, 1400 Independence 
Ave., SW, Washington, DC 20250-3646; (202) 720-695l.

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. There are no 
administrative procedures that must be exhausted prior to any judicial 
challenge to the provisions of this rule.

Effect on Small Entities

    GIPSA is amending Secs. 201.49, 201.55, 201.71, 201.72, and 201.73 
of Title 9 of the Code of Federal Regulations to include feed weighing 
when the weight of feed is a factor in determining payment or 
settlement to livestock growers or poultry growers. The additional 
information collection is required to provide livestock growers and 
poultry growers (generally small entities) assurance that feed scales 
are being tested and maintained properly, that feed is accurately 
weighed or its weight is reasonably determined, and that they are 
receiving proper and adequate documentation of the feed weight.
    GIPSA has determined that this 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.). This rule will 
affect both parties in growing arrangements in which the weight of feed 
is a factor in determining payment or settlement to a livestock grower 
or poultry grower. In most instances, the livestock grower or poultry 
grower will be a small entity and is the intended beneficiary of this 
rule. Because the costs of complying with this rule usually will be 
borne by the stockyard owner, market agency, dealer, packer or live 
poultry dealers, the economic impact on growers is expected to be 
negligible.
    The costs of compliance will be borne by any stockyard owner, 
market agency, dealer, packer or live poultry dealer who is party to a 
growing arrangement in which the weight of feed is a factor in 
determining payment or settlement to a livestock grower or poultry 
grower. However, the economic impact on these entities is expected to 
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 a factor in determining payment or settlement to 
livestock growers or poultry growers. Most of these 310 firms are 
considered small entities.
    Subject firms will be responsible for ensuring that scales used to 
determine the weight of feed, whether theirs or their feed provider's, 
have a printing device and conform to the specifications of NIST 
Handbook 44 (H-44), 1996 edition. Scale installation companies usually 
do not install a scale system that would not comply with the 
requirements of this amendment to the regulations. Currently, most feed 
scales, including those used by small entities, have a weight-printing 
device and conform to H-44 requirements. GIPSA did not receive any 
comments on the NPRM from any subject entity claiming that it currently 
supplied feed under a growing arrangement and had no weight-printing 
device. One association for feed companies stated that many of its 
members do not have a weight-printing device, but it did not state 
whether any of those members also currently provide feed for a subject 
entity under a growing arrangement.

[[Page 17762]]

    GIPSA contacted several scale installation companies and was 
advised that they would charge less than $10,000 to equip an existing 
scale with a printing device and any additional equipment needed for 
the operation of the printing device. The subject entity, including any 
small entity, could spread this cost over many years because a printing 
device and any other needed equipment are used for many years. GIPSA 
anticipates that the cost of equipping an existing scale with a 
printing device would increase the costs of doing business to live 
poultry dealers or their feed supplying entities, including small 
entities, by less than one percent. Therefore, GIPSA does not 
anticipate any significant economic impact on small entities.
    Under this rule, subject firms will be required to test scales 
twice a year and to submit a copy of each test report to the 
appropriate P&S regional office. 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. In addition, most entities affected by this rule 
currently have their scales tested at least twice a year, either by 
State or local weights and measures officials or by private scale 
companies. Any of these tests will satisfy the semiannual testing 
requirement. Those entities currently not conducting two scale tests a 
year will be required to obtain a second test either from a private 
scale company or from a State or local weights and measures department.
    There will be a minimal recordkeeping burden on all subject 
entities, including small entities, who weigh or supply feed when the 
weight of feed is a factor in determining payment or settlement to a 
livestock or poultry grower who produces livestock or poultry under a 
growing arrangement. Those entities will be required to submit a copy 
of scale test reports, on a semiannual basis, to the appropriate P&S 
regional office. This will entail obtaining a copy of the scale test 
report, which generally is completed either by the State or local 
weights and measures department or by the private scale company as a 
matter of routine documentation, and mailing it to the appropriate P&S 
regional office. Many State and local weights and measures departments 
and scale companies already mail the copies of the scale test reports 
to the appropriate P&S regional office. If any of the subject firms 
chooses to use seals, the additional paperwork burden will be to note 
the seal number(s) on the feed ticket that the subject firm is already 
required to supply to the grower.
    Compliance with the requirements for scale tickets is projected to 
cause minimal burden on the industry. Those entities that do not print 
a scale ticket for weighed feed or that print scale tickets that do not 
include all the required information will have to change their 
procedures to print scale tickets for weighed feed and to include the 
required information on the scale tickets. 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 will be required to retain weight 
records in accordance with the recordkeeping provisions of the Act. In 
general, this will not entail any retention burden beyond that of 
normal and customary business practices.

Information Collection and Recordkeeping Requirements

    As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 
3504(h)), GIPSA has submitted a copy of this rulemaking to the Office 
of Management and Budget (OMB) for its review. GIPSA received no 
response to its invitation in the NPRM to comment on the increased 
paperwork burden associated with this regulation. Information and 
reporting collection burdens imposed by Part 201 have been approved 
under OMB control number 0580-0015.

List of Subjects in 9 CFR Part 201

    Confidential business information, Reporting and recordkeeping 
requirements, Stockyards, Surety bonds, Trade practices.


    For the reasons set forth in the preamble, GIPSA is amending 9 CFR 
part 201 to read as follows:

PART 201--[AMENDED]

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

    Authority: 7 U.S.C. 222 and 228; 7 CFR 2.22 and 2.81.

    2. Section 201.49 is 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;
    (iii) 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 gross and 
tare weights are 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 on 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 is 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 when livestock or poultry is produced under a growing 
arrangement, 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.

[[Page 17763]]

Any adjustment to the actual weight shall be fully and accurately 
explained on the accountings, bills, or statements issued, and records 
shall be maintained to support such adjustment.
    (b) Whenever the weight of feed is a factor in determining payment 
or settlement to such livestock grower or poultry grower when the 
livestock or poultry is produced under a livestock or poultry growing 
arrangement, any feed that is picked up from or returned by a livestock 
grower or poultry grower must be weighed or its weight must be 
reasonably determined. When feed is picked up or returned and not 
weighed, the stockyard owner, market agency, dealer, packer, or live 
poultry dealer must document that the method used reasonably determines 
weight and is mutually acceptable to it and the livestock grower or 
poultry grower. The stockyard owner, market agency, dealer, packer, or 
live poultry dealer must document and account for the picked up or 
returned feed weight.

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


    4. Section 201.71 is 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, 
in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. 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, NW, 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 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 in this section.

    5. Section 201.72 is 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 in this part 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 
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 is 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 
in this part.

    Dated: March 29, 2000.
James R. Baker,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 00-8236 Filed 4-4-00; 8:45 am]
BILLING CODE 3410-EN-U