[Federal Register Volume 65, Number 151 (Friday, August 4, 2000)]
[Proposed Rules]
[Pages 47908-47918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19725]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Parts 1 and 2

[Docket No. 97-121-1]
RIN 0579-AA94


Animal Welfare; Inspection, Licensing, and Procurement of Animals

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to amend the Animal Welfare Act regulations 
to revise and clarify the exemptions from the licensing requirements, 
the procedures for license applications and renewals, and restrictions 
upon the acquisition of dogs and cats and other animals. We believe 
these actions are necessary to help ensure compliance with the 
regulations and the Animal Welfare Act.

DATES: We invite you to comment on this docket. We will consider all 
comments that we receive by October 3, 2000.

ADDRESSES: Please send your comment and three copies to: Docket No. 97-
121-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03, 
4700 River Road, Unit 118, Riverdale, MD 20737-1238.
    Please state that your comment refers to Docket No. 97-121-1.
    Comments sent to the above location that specifically pertain to 
the information collection requirements of this action should also be 
sent to the locations specified in the section of this document under 
the heading ``Paperwork Reduction Act.''
    You may read any comments that we receive on this docket in our 
reading room. The reading room is located in

[[Page 47909]]

room 1141 of the USDA South Building, 14th Street and Independence 
Avenue, SW., Washington, DC. Normal reading room hours are 8 a.m. to 
4:30 p.m., Monday through Friday, except holidays. To be sure someone 
is there to help you, please call (202) 690-2817 before coming.
    APHIS documents published in the Federal Register, and related 
information, including the names of organizations and individuals who 
have commented on APHIS rules, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr. Barbara Kohn, Staff Veterinarian, 
Animal Care, APHIS, 4700 River Road Unit 84, Riverdale, MD 20737-1234; 
(301) 734-7833.

SUPPLEMENTARY INFORMATION:

Background

    The Animal Welfare Act (the Act) (7 U.S.C. 2131 et seq.) authorizes 
the Secretary of Agriculture to promulgate standards and other 
requirements governing the humane handling, housing, care, treatment, 
and transportation of certain animals by dealers, research facilities, 
exhibitors, carriers, and intermediate handlers. The Secretary of 
Agriculture has delegated the responsibility of enforcing the Act to 
the Administrator of the Animal and Plant Health Inspection Service 
(APHIS). The regulations established under the Act are contained in 
title 9 of the Code of Federal Regulations (9 CFR), chapter I, 
subchapter A, parts 1, 2, and 3. Part 1 defines various terms used in 
part 2. Part 2 (referred to below as the regulations) generally 
provides administrative requirements and sets forth institutional 
responsibilities of regulated persons under the Act. These 
administrative requirements and institutional responsibilities include 
the requirements for the licensing and registration of dealers, 
exhibitors, and research facilities, and standards for veterinary care, 
identification of animals, and recordkeeping.
    We are proposing to amend the regulations to revise and clarify the 
exemptions from the licensing requirements, the procedures for license 
applications and renewals, and restrictions upon the acquisition of 
dogs and cats and other animals. Each of these changes is discussed in 
detail in this document.

Exemptions From Licensing Requirements

    We are proposing to amend Sec. 2.1 of the regulations to clarify 
our licensing requirements. This section requires a person to have a 
license to operate as a dealer, exhibitor, or operator of an auction 
sale. In Sec. 2.1, paragraph (a)(3) provides exceptions to this 
requirement. One exception, in Sec. 2.1(a)(3)(iii), is that any person 
who maintains a total of three or fewer breeding female dogs and/or 
cats and sells only the offspring of these dogs and cats for pets or 
exhibition does not have to obtain a license. The dogs and cats must 
have been born and raised on the premises, and the person must not 
otherwise be required to obtain a license.
    The intent of Sec. 2.1(a)(3)(iii) of the regulations is to exempt 
these de minimis operations. However, some individuals have contended 
that they are not required to have a license even when they keep more 
than three breeding female dogs and/or cats on the same premises as 
long as no single member of the household owns more than three. When 
several members of the same household (or other persons acting in 
concert) are each maintaining three female breeding dogs or cats on the 
same premises, the activities are no longer de minimis. To clarify the 
regulations, we are proposing to amend Sec. 2.1(a)(3)(iii) to exempt 
from licensing any person who maintains a total of three or fewer 
breeding female dogs and/or cats on his or her premises, if no more 
than three breeding female dogs and/or cats are maintained on the 
premises, regardless of ownership; and who sells only the offspring of 
these dogs and/or cats, which were born and raised on his or her 
premises, for pets or exhibition, and is not otherwise required to 
obtain a license.
    We are also proposing to amend Sec. 2.1(a)(3)(iii) to include in 
the exemption from licensing persons who maintain three or fewer 
breeding female small exotic or wild mammals on a single premises. 
Recently, we have begun to regulate the handling, care, and treatment 
of small exotic or wild mammals commonly known as pocket pets. Pocket 
pets include hedgehogs, degus, spiny mice, prairie dogs, flying 
squirrels, jerboas, and other small mammalian species. We do not 
believe that the risk associated with the maintenance of three or fewer 
breeding female small exotic or wild mammals on a single premises 
warrants our inspection of the premises or requires the issuance of a 
license.
    Currently, Sec. 2.1(a)(3)(iv) of the regulations exempts from 
licensing any person who sells fewer than 25 dogs and/or cats per year 
for research, teaching, or testing purposes or to any research 
facility. The dogs and/or cats must have been born and raised on the 
person's premises, and the person must not otherwise be required to 
obtain a license. We are proposing to add that this exemption will 
apply only if fewer than 25 dogs and/or cats are sold per year from the 
premises or by members of the same household or other persons acting in 
concert, regardless of ownership. The sale of any dog or cat not born 
and raised on the premises for research purposes would continue to 
require a license.

Voluntary Licenses

    We are proposing to remove Sec. 2.1(b) from the regulations. In 
Sec. 2.1, paragraph (b) provides that a person who is exempt from 
licensing under Sec. 2.1(a)(3)(iv) may apply for a voluntary license. 
Our records show that the option for obtaining a voluntary license has 
rarely been exercised and that there are currently no voluntary 
licensees. We do not believe that it is necessary or appropriate to 
continue to offer this service because the unnecessary inspections 
divert resources from other areas. We are also proposing to remove the 
provisions in Sec. 2.1(e)(1) of the regulations for renewal of a 
voluntary license. Because we are proposing to remove paragraph (b) of 
Sec. 2.1, we are also proposing to redesignate paragraphs (c), (d), 
(e), and (f) as paragraphs (b), (c), (d), and (e), respectively. In 
conjunction with these changes, Sec. 2.1(a)(1) would be revised to 
provide that any person ``operating or intending to operate'' as a 
dealer, exhibitor, or operator of an auction sale must have a valid 
license.

Payment of Fees

    In Sec. 2.1, paragraphs (d)(2), (e)(1), and (e)(2) (redesignated as 
(c)(2), (d)(1), and (d)(2) in this proposal) provide that a license 
will not be issued until payment has cleared normal banking procedures. 
We are proposing to remove this provision. The U.S. Department of 
Agriculture (the Department) cannot control the speed at which payments 
will clear a financial institution and does not want to needlessly hold 
the issuance of a license. If payment is received as required in the 
regulations, we believe the Animal Care (AC) regional office should 
proceed with the issuance of the license if the applicant and the 
premises are in compliance with the regulations and standards. This 
would not only be more convenient for the applicant but would relieve 
the regional offices of the need to track each check to learn when it 
has cleared. If a check is returned unpaid by the financial 
institution, the license would be terminated in accordance with 
Sec. 2.5(a)(4). The fee for a returned check

[[Page 47910]]

would also be increased from $15 to $20, which is consistent with the 
fee for returned checks in other agency programs.
    In Sec. 2.1, paragraphs (d)(2) and (e)(1) (redesignated as (c)(2) 
and (d)(1) in this proposal) require payment of license fees, but do 
not state when the license fee is due to avoid the termination of a 
license. Section 2.5 specifies that the license fee is due on or before 
the date of expiration of the license. To help facilitate the renewal 
of licenses and to encourage prompt payment of the applicable license 
fees, we are proposing to add this due date to Sec. 2.1, in 
redesignated paragraphs (c)(2) and (d)(1).
    Also, we are proposing to amend Secs. 2.1(d)(2), 2.1(e)(1), 2.5(b), 
and 2.6(a) to require that fees be submitted to the appropriate AC 
regional office instead of the AC Regional Director (Sec. 2.1(d)(2) and 
(e)(1) are redesignated in this proposal as (c)(2) and (d)(1)). We are 
proposing this change because we believe that it is more appropriate to 
address the fees to an office rather than an official within the 
office.

Regulations and Standards Supplied to License Renewal Applicants

    We are proposing to amend Sec. 2.2 of the regulations, which 
concerns acknowledgment of regulations and standards by applicants for 
licenses and renewal of licenses. Currently, Sec. 2.2(b) states that 
APHIS will supply a copy of the applicable regulations and standards to 
an applicant for license renewal with each request for a license 
renewal. Paragraph (b) also provides that, before a license will be 
renewed, the applicant for license renewal must acknowledge receipt of 
the regulations and standards and certify by signing the application 
form that, to the best of the applicant's knowledge and belief, he or 
she is in compliance with the regulations and standards and agrees to 
continue to comply with the regulations and standards.
    We have found that most licensees do not need a new copy of the 
regulations and standards each year. The current text of the 
regulations and standards is readily available on the Internet (for 
example, through the APHIS home page at www.usda.aphis.gov) and copies 
are available from Animal Care inspectors. If we discontinue the 
practice of sending additional copies to licensees at the time of 
application for renewal, we could significantly reduce our costs for 
printing and postage without adversely affecting the program. Also, the 
applicant's signature on the application form certifies that the 
applicant is in compliance with the regulations and standards and will 
continue to comply with them.
    Therefore, we are proposing to remove the provision in Sec. 2.2(b) 
that APHIS will supply a copy of the regulations and standards with 
each request for a license renewal.
    APHIS would continue to supply a copy of the regulations and 
standards to: (1) Initial license applicants as provided in 
Sec. 2.2(a); (2) carriers, intermediate handlers, and exhibitors as 
provided in Sec. 2.26; and (3) research facilities as provided in 
Sec. 2.30(b). Of course, copies will continue to be provided upon 
request.

Prelicense Inspections

    We are proposing to amend Sec. 2.3 of the regulations, which 
requires applicants for licenses and renewal of licenses to demonstrate 
compliance with the regulations and standards.
    In accordance with Sec. 2.3(b), an applicant for an initial license 
must demonstrate during a prelicense inspection that he or she is in 
compliance with the regulations and standards. If the applicant's 
premises, animals, facilities, vehicles, equipment, other premises, or 
records do not meet the regulations and standards, APHIS will advise 
the applicant of the deficiencies and the corrective measures that must 
be addressed to comply with the regulations and standards prior to the 
issuance of a license. APHIS will perform up to two additional 
prelicense inspections, based on the schedule of the inspecting 
official, to verify whether the applicant is in compliance. If the 
applicant fails the third inspection, he or she forfeits the 
application fee and cannot reapply for a license for 6 months following 
the third inspection.
    This proposed rule would provide that an applicant who fails the 
first inspection would be responsible for requesting the second 
inspection, and, if necessary, a third inspection, within 90 days from 
the date of the initial inspection. It is necessary that there be a 
time limit on the application process so that applications are not 
permanently pending and applicants are encouraged to proceed in a 
timely manner. We have found that many applicants demonstrate 
compliance with the regulations and standards at the initial prelicense 
inspection and that a third prelicense inspection is uncommon. The vast 
majority of applicants either successfully complete the licensing 
process within 90 days from their initial inspection or change their 
plans and drop their applications.

Notification of Expiration of a License

    We are proposing to amend the regulations in Sec. 2.5, regarding 
duration and termination of license.
    Currently, Sec. 2.5(b) provides that APHIS will notify a licensee 
by certified mail at least 60 days prior to the expiration date of the 
license. We do not believe that the use of certified mail is necessary. 
AC regional offices would still send notification to licensees prior to 
the expiration date of their licenses.
    In addition, Sec. 2.5(b) currently provides that a license will 
terminate on its anniversary date if an applicant fails to comply with 
the annual reporting requirements or fails to pay the required license 
fees prior to the expiration date of the license. However, in many 
cases, the expiration date and anniversary date of a license are not 
the same. This has led to confusion among licensees and administrative 
difficulties in AC regional offices. Therefore, we are proposing to 
remove the reference in Sec. 2.5(b) to an anniversary date. Instead, we 
propose that a license will terminate on its expiration date if an 
applicant fails to comply with the annual reporting requirements, or if 
the appropriate AC regional office has not received the required fee 
for license renewal on or before the expiration date of the license.

Application and Annual License Fees

    We are proposing to amend the regulations at Sec. 2.6, which set 
out annual license fees. Currently, the regulations at Sec. 2.1 require 
a $10 application fee for a license, license renewal, or changed class 
of license. Section 2.6 requires the payment of an annual license fee. 
A separate check or money order is required for each fee.
    Upon review of the process for collecting fees for license 
renewals, we found that handling two forms of payment per applicant or 
licensee burdens the administrative resources in AC regional offices. 
It would seem to be equally inconvenient for licensees. To decrease the 
number of checks handled by the AC regional offices, we are proposing 
to combine the $10 application fee for license renewals (or for change 
of license class) with the annual license fee. This change would mean 
that persons already licensed would need to submit only one check or 
money order annually.
    We are not proposing to combine the $10 application fee for an 
initial license with the annual license fee. At times, individuals 
apply for a license but never further pursue obtaining a license. If we 
required new applicants to submit the $10 application fee combined with 
the

[[Page 47911]]

appropriate annual license fee, we would have to refund the annual 
license fee if the individual decided not to pursue obtaining a 
license. This would cause the agency an undue amount of paperwork and 
employee hours. Therefore, we would continue to require initial license 
applicants to submit two checks or forms of payment.
    To reflect the combination of the $10 application fee for license 
renewals or change of license class with the annual license fee, we 
would amend tables 1 and 2 in Sec. 2.6(c) to show a $10 increase in 
license fees for persons already licensed. We would also remove 
references to application fees in Secs. 2.1, 2.5, and 2.6 where the 
references apply to persons seeking a license renewal or change of 
license class.

Denial of Initial License Application

    We are proposing to amend Sec. 2.11 of the regulations, concerning 
denial of an initial license application. The current regulations 
provide that a license will not be issued to any applicant who: (1) Has 
not complied with the requirements of Secs. 2.1, 2.2, 2.3, and 2.4 and 
has not paid the fees indicated in Sec. 2.6; (2) is not in compliance 
with any of the regulations or standards in subchapter A; (3) has had a 
license revoked or whose license is suspended; (4) has been fined, 
sentenced to jail or pled nolo contendere (no contest) under State or 
local cruelty to animal laws within 1 year of application; or (5) has 
made false or fraudulent statements, or provided any false or 
fraudulent records to the Department.
    We have found that these restrictions do not cover all of the 
circumstances that make an applicant unsuitable for a license. 
Specifically, the regulations do not provide for the denial of a 
license if an applicant has violated Federal, State, or local laws or 
regulations, other than those described above.
    For example, the Lacey Act (18 U.S.C. 42; 16 U.S.C. 3371-3378), 
among other things, provides authority to the Secretary of the Interior 
to ensure the humane treatment of wildlife shipped to the United States 
and designate wildlife species that are considered injurious to humans 
and prohibit their importation into the United States. Based on the 
current regulations, if a license applicant has violated the Lacey Act, 
he or she would still be eligible for a license issued by the 
Department.
    An applicant who has violated local or State laws pertaining to 
animal cruelty or welfare may not be eligible for a State license as a 
dealer. However, based on the current regulations, if the applicant has 
not been fined, sentenced to jail, or pled nolo contendere, the 
applicant could still be eligible for a license issued by the 
Department.
    We believe that persons who have violated any Federal, State, or 
local laws or regulations pertaining to animal cruelty, negligence, 
transportation, ownership, neglect, or animal welfare would be unfit 
for a license under our regulations. Therefore, we propose to remove 
the provisions in Sec. 2.11(a)(4) and (a)(5) and provide instead that a 
license will not be issued if the applicant pled nolo contendere or has 
been found to have violated any Federal, State, or local laws or 
regulations pertaining to animal cruelty within 1 year of application, 
or at any time if the Administrator determines that the circumstances 
render the applicant unfit to be licensed. Also, a license would not be 
issued if the applicant is or would be operating in violation or 
circumvention of any Federal, State, or local laws. Further, a license 
could be denied if the applicant has pled nolo contendere or has been 
found to have violated any Federal, State, or local laws or regulations 
pertaining to the transportation, ownership, neglect, or welfare of 
animals, has made false or fraudulent statements or provided false or 
fraudulent records to any government agency including the Department, 
or if the applicant is otherwise unfit to be licensed, and the 
Administrator determines that the issuance of a license would be 
contrary to the purposes of the Act.
    Also, we are proposing to amend Sec. 2.11(b). In Sec. 2.11, 
paragraph (b) provides that an applicant whose license application has 
been denied may request a hearing for the purpose of showing why his or 
her application should not be denied. The license denial is in effect 
until a final decision is issued. If the license denial is upheld, the 
applicant may reapply for a license 1 year from the date of the final 
order that denied the application. We are proposing to provide that an 
applicant may reapply for a license 1 year from the date of the final 
order denying the application, unless the order provides otherwise. In 
some cases, an order requiring an applicant to wait beyond a 1-year 
period before reapplying for a license may be appropriate. In fact, 
based on the circumstances leading to the denial of an application, an 
applicant may be found to be unsuitable for holding a license at any 
time. In other cases it may be appropriate to allow an applicant to 
reapply in a shorter period of time or when a specific defect has been 
corrected.
    Also, we are proposing to add a new Sec. 2.11(d) to the regulations 
to encompass circumstances that are not included in the changes to 
Sec. 2.11(a) proposed previously in this document. New Sec. 2.11(d) 
would provide that a license will not be issued under circumstances 
that the Administrator determines could circumvent any order 
suspending, revoking, terminating, or denying a license under the Act. 
For the same reasons, we are also proposing to revise Sec. 2.10(a), 
regarding licensees whose licenses have been suspended or revoked, to 
provide that a license will not be renewed during the period of 
suspension.

Termination of a License

    We are proposing to add a new Sec. 2.12 to the regulations to 
prescribe conditions that could result in APHIS terminating a license. 
Although Sec. 2.5 refers to termination of license, the regulations do 
not list the circumstances that would result in the termination of a 
license. New Sec. 2.12 would state that a license may be terminated for 
any of the same reasons that an initial license application may be 
denied pursuant to Sec. 2.11 after a hearing in accordance with the 
applicable rules of practice. A hearing would provide an opportunity 
for the applicant to present his or her case as to why the license 
should not be terminated.

Access to Premises Provided by a Responsible Adult

    We are proposing to amend Sec. 2.126 of the regulations, concerning 
access and inspection of records and property. Currently, Sec. 2.126(a) 
requires that each dealer, exhibitor, intermediate handler, or carrier 
must, during business hours, allow APHIS officials: (1) To enter the 
place of business; (2) to examine the records required to be kept by 
the Act and the regulations in part 2; (3) to make copies of the 
records; (4) to inspect and photograph the facilities, property, and 
animals, as necessary to enforce the provisions of the Act and the 
regulations and the standards in subchapter A; and (5) to document, by 
the taking of photographs and other means, the conditions and areas of 
noncompliance. In Sec. 2.126, paragraph (b) requires that facilities 
for proper examination of records and inspection of the property or 
animals must be provided to APHIS officials by the licensee.
    APHIS conducts unannounced inspections of licensed facilities, and 
APHIS officials have encountered occasions when a licensee was not 
present or available upon their arrival. In a few of these cases, an 
adolescent was the only individual present to provide access to the 
premises.

[[Page 47912]]

However, during an inspection, APHIS officials must be able to ask 
questions and advise licensees of existing deficiencies and corrective 
measures that must be completed to come into compliance with the 
regulations and standards. APHIS officials must be able to convey this 
information to a responsible adult.
    Therefore, we are proposing to revise paragraph (b) in Sec. 2.126 
to add a provision that a responsible adult shall be made available to 
accompany the officials during the inspection process.

Handling of Exotic or Wild Animals

    We are proposing to amend Sec. 2.131 of the regulations, regarding 
the handling of animals. Section 2.131 prescribes general requirements 
for the humane handling of animals during training and public 
exhibition. These requirements are intended to protect the animals and 
the public from harm.
    Many exotic or wild animals used in exhibition are potentially 
dangerous, and all have special handling, veterinary care, and 
husbandry requirements. To properly maintain, handle, and train these 
animals, licensees should have adequate experience and knowledge of the 
species that they maintain on their premises. The current regulations 
require that a responsible and knowledgeable employee be present at all 
times during public contact and that dangerous animals be under the 
direct control and supervision of a knowledgeable and experienced 
handler during public exhibition. We are proposing to add a new 
requirement to Sec. 2.131 that all licensees who maintain potentially 
dangerous animals must demonstrate adequate experience and knowledge of 
the species that they maintain. This requirement would appear in a new 
paragraph (a), and we would redesignate current paragraphs (a), (b), 
and (c) as paragraphs (b), (c), and (d), respectively,

Procurement of Animals by Dealers

    We are proposing to amend Sec. 2.132 of the regulations, concerning 
procurement of random source dogs and cats, to provide clarification 
regarding the procurement of animals by Class B dealers. As set forth 
in Sec. 2.132(a), Class B dealers may obtain live random source dogs 
and cats only from the following sources: Other dealers who are 
licensed under the Act and in accordance with the regulations in part 
2; State, county, or city owned and operated animal pounds or shelters; 
and legal entities organized and operated under the laws of the State 
in which the entity is located as an animal pound or shelter.
    Paragraph (b) specifies that a Class B dealer may not obtain live 
random source dogs and cats from individuals who have not bred and 
raised the animals on their own premises. This provision is unnecessary 
and potentially confusing because paragraph (a) already specifies the 
only permissible sources. Similarly, paragraph (c) is unnecessary. 
Paragraph (c) provides that nonrandom source dogs and cats may be 
obtained from persons who have bred and raised the animals on their own 
premises. It is not necessary to specify this because it is not 
otherwise prohibited. Accordingly, we propose to remove paragraphs (b) 
and (c) of Sec. 2.132 and redesignate paragraphs (d) and (e) as (b) and 
(c).
    In Sec. 2.132, current paragraph (d), which would be redesignated 
as (b), provides that no person may obtain live random source dogs and 
cats by use of false pretenses, misrepresentation, or deception. We 
believe that this prohibition should not be restricted to random source 
dogs and cats. Accordingly, we are proposing to remove the term 
``random source'' and add a reference to other animals. We are also 
proposing to make the same change in Sec. 2.38(k)(2), relating to 
acquisitions by research facilities.
    In Sec. 2.132, current paragraph (e), which would be redesignated 
as (c), concerns the acquisition of dogs and cats from private or 
contract animal pounds and shelters. The reference to ``random source'' 
dogs and cats acquired from private or contract pounds and shelters is 
unnecessary because all dogs and cats acquired from a pound or shelter 
are necessarily random source animals. Accordingly, the reference to 
``random source'' animals would be removed.
    Also, we have found that some dealers have knowingly obtained 
animals from persons who are required to hold a valid and effective 
license and do not. Therefore, we are proposing to add a new paragraph 
(d) to Sec. 2.132 to prohibit a Class B dealer or exhibitor from 
knowingly obtaining dogs, cats, and other animals from persons who are 
required to hold a current, valid, and unsuspended license and do not. 
The new paragraph would also require that, when dogs or cats are 
acquired from persons who are not licensed, a certification must be 
obtained from the person specifying that he or she is within one of the 
exemptions to the license requirements (i.e., that the dogs or cats 
were born and raised on their premises and that, for animals for 
research purposes, they have sold fewer than 25 that year; or, for use 
as pets, that they maintain no more than three breeding females). We 
believe this would help prevent licensed dealers from supporting the 
operations of unlicensed dealers who are acting in violation of the 
Animal Welfare Act. We would also add a similar provision for 
acquisitions by research facilities in Sec. 2.35.

Miscellaneous

    We are proposing to update the definition of Administrator in 
Sec. 1.1 to make it consistent with the definition found in other parts 
of 9 CFR, chapter I.
    Section 2.4 currently provides that licensees or applicants for a 
license shall not ``interfere with, threaten, abuse (including verbally 
abuse), or harass any APHIS official in the course of carrying out his 
or her duties.'' This proscription should also extend to registrants as 
well as licensees and applicants. Accordingly, the provision would be 
added to Sec. 2.25 for registrants in general and to Sec. 2.30 for 
research facilities.
    The regulations currently require dealers, exhibitors, operators of 
auction sales, brokers, and research facilities who acquire animals 
from persons who are not licensed to record the driver's license number 
of the person. As written, the regulations do not allow the acquisition 
of animals from persons without a driver's license. Nevertheless, from 
time to time, animals are acquired from persons who do not have a 
driver's license. These infrequent occurrences have not been addressed 
consistently and the requirement has sometimes been overlooked where it 
could not be met. In order to reduce the burden on both buyers and 
sellers of animals and to achieve the purpose of the recordkeeping 
requirement, we propose to add provisions allowing the use of 
officially issued and numbered photographic identification cards for 
nondrivers. This change would be made in Secs. 2.35(b)(3), 
2.75(a)(1)(iii), 2.75(b)(1)(iii), and 2.76(a)(4).
    Some of the forms referenced in 9 CFR part 2 are identified with 
Veterinary Services (VS) form numbers. Most of the VS forms have been 
replaced by forms that are identified with an APHIS form number; 
therefore, we are proposing to remove the VS form numbers that appear 
in Secs. 2.5, 2.35, 2.38, 2.75, 2.78, and 2.102.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866. 
The rule has been determined to be not significant for the purposes of 
Executive

[[Page 47913]]

Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget.
    In accordance with 5 U.S.C. 603, we have performed an initial 
regulatory flexibility analysis, which is set out below, regarding the 
economic effects of this rule on small entities. This discussion also 
serves as our cost-benefit analysis.
    Under the Animal Welfare Act (7 U.S.C. 2131 et seq.), the Secretary 
of Agriculture is authorized to promulgate standards and other 
requirements governing the humane handling, housing, care, treatment, 
and transportation of certain animals by dealers, research facilities, 
exhibitors, carriers, and intermediate handlers.
    This proposed rule would amend the Animal Welfare Act regulations 
in 9 CFR part 2 to revise and clarify the exemptions from the licensing 
requirements, the procedures for license applications and renewals, and 
restrictions upon the acquisition of dogs and cats and other animals.
    Class A and B dealers, Class C exhibitors, registered exhibitors, 
research facilities, and individuals who are exempt from licensing are 
the entities that would be affected by this proposed rule. A Class A 
dealer breeds and raises animals to be sold for research, teaching, 
testing, experimentation, exhibition, or for use as a pet. A Class B 
dealer is a person, including a broker and operator of an auction sale, 
whose business includes the purchase and/or resale of any animal. A 
Class C exhibitor or registered exhibitor is a person, including an 
animal act, carnival, circus, and public and roadside zoo, who shows or 
displays animals to the public. Research facilities include schools, 
institutions, organizations, or persons who use live animals in 
research, tests, or experiments.

The Number of Breeding Females

    The regulations exempt from licensing any person who maintains a 
total of three or fewer breeding female dogs and/or cats and sells only 
the offspring of these dogs and/or cats for pets or exhibition. This 
proposed rule would extend this exemption from licensing to any person 
who maintains a total of three or fewer breeding female small exotic or 
wild mammals and sells only the offspring of these small exotic or wild 
mammals for pets or exhibition. This proposed rule would also clarify 
that the exemption applies only if a total of three or fewer breeding 
female dogs, cats, and/or small exotic or wild mammals, such as 
hedgehogs, degus, spiny mice, and prairie dogs, are maintained on a 
single premises, regardless of who owns the animals.
    Unlicensed individuals in this category primarily sell the 
offspring of their animals to pet stores and private citizens and their 
number and the quantity of their sales are unknown. However, we expect 
that any affected individuals would be considered small entities. The 
entities affected would either have to obtain a license if more than 
three breeding females are on a premises or decrease the number of 
breeding females on the premises to three or fewer. Entities who choose 
to obtain a license as a result of this proposed rule would have to pay 
the associated fees. The regulations require an application fee of $10 
and an annual license fee.
    Because APHIS has only recently begun to require licenses for 
breeders of small exotic or wild mammals, only a small number of 
breeders who have become licensed would no longer need those licenses. 
For that small number, there would be cost savings in the amount of the 
annual license fee that would no longer be required.

Dogs and Cats Sold Per Year From a Premises

    The regulations exempt from licensing any person who sells fewer 
than 25 dogs and/or cats per year for research, teaching, or testing 
purposes if the dogs and cats were born and raised on the person's 
premises. This proposed rule would clarify that this exemption would 
apply only if fewer than 25 dogs and/or cats are sold per year from the 
premises, regardless of who owns the dogs or cats.
    This change would potentially affect three groups of entities: (1) 
Persons who are currently exempt from licensing because they sell fewer 
than 25 dogs and/or cats for research, teaching, or testing purposes, 
or to any research facility; (2) licensed Class B dealers who acquire 
dogs and/or cats from persons exempt from licensing; and (3) the 
research and education industries.
    In fiscal year 1997, approximately 325 persons who sold dogs and/or 
cats for research, teaching, or testing purposes, or to any research 
facility, were exempt from licensing because they sold fewer than 25 
dogs and/or cats. It is unknown how many premises will be affected by 
the clarification that the exemption from licensing applies to the 
premises and not to individuals. However, if this proposed rule becomes 
effective, individuals on affected premises would have to obtain a 
license, reduce their business, or discontinue business. At this time, 
we do not have enough information to predict the choices individuals 
will make among these alternatives.
    In fiscal year 1997, persons exempt from licensing because they 
sold fewer than 25 dogs and/or cats for research, teaching, or testing 
purposes, or to any research facility, provided an estimated 4,524 dogs 
and 1,202 cats to the research, testing, and teaching industries. \1\ 
These exempt persons received an average of $50 for a dog and $25 for a 
cat. Based on these values, we estimate that the total revenue of the 
exempted individuals was $256,250.
---------------------------------------------------------------------------

    \1\ In fiscal year 1997, a total of 75,429 dogs and 26,091 cats 
from all sources were used in registered research facilities. 
According to the National Association for Biomedical Research, less 
than one-half of these dogs and cats were random source. Dogs and 
cats supplied by individuals exempt from licensing are random source 
and are supplied to research almost exclusively through Class B 
dealers. In fiscal year 1997, Class B dealers supplied approximately 
36 percent of random source dogs and 23 percent of random source 
cats used in research. Class B dealers obtained approximately one-
third of their animals from exempt sources.
---------------------------------------------------------------------------

    Class B dealers would be the next group potentially affected by 
this proposed rule. Nearly all dogs and cats supplied for use in the 
research industry by persons exempt from licensing were sold to the 
research industry through Class B dealers. Class B dealers obtain dogs 
and cats for sale to registered research facilities from pounds, Class 
A dealers, other Class B dealers, and persons exempt from licensing. In 
1997, there were 1,047 Class B dealers; however, we estimate that 
approximately 37 of them supplied dogs and cats for research purposes. 
These Class B dealers obtained 5,726 dogs and cats, which is 
approximately one-third of the dogs and cats they provided for 
research, from persons exempt from licensing. The effect of this 
proposed rule on Class B dealers would depend on the number of persons 
currently exempt from licensing who would apply for a license or reduce 
the number of animals they sell from their premises. If the 
clarification that the exemption applies to the premises, regardless of 
ownership, causes a significant decrease in the number of dogs and cats 
available from these individuals, Class B dealers could lose a primary 
source of dogs and cats and would have to depend on other sources 
(i.e., Class A dealers, pounds, or shelters) to obtain dogs and cats. 
Class B dealers most likely would not acquire animals from Class A 
dealers because of the higher cost. Class A dealers who sell directly 
to research facilities charge $300 to $500 per dog and slightly less 
per cat. Pounds and shelters may not be able to supply Class B dealers 
with the number of dogs and/or cats they need to

[[Page 47914]]

maintain their current levels of operation.
    The effect of this proposed rule on research facilities will 
primarily depend on the rule's effect on Class B dealers. Of the 
101,520 dogs and cats used in research in fiscal year 1997, less than 
one-half were random source. Class B dealers supplied approximately 36 
percent of the random source dogs and 23 percent of the random source 
cats used in research. Approximately one-third of these animals were 
obtained by the Class B dealers from persons exempt from licensing. 
Laws in many areas make Class B dealers the only viable source of these 
animals. Any increase in costs for the dogs and cats obtained by Class 
B dealers would likely be passed on to the research facilities that 
purchase the animals.

Clarification of the Regulations and Changes to Administrative 
Procedures

    This proposed rule would make a number of changes to clarify the 
regulations and correct deficiencies we have found in enforcing the 
regulations. We are also proposing amendments to a number of 
administrative procedures to make them more efficient. In addition, 
this proposed rule would require certification at the time of purchase 
or acquisition of certain animals. These changes would not have a 
significant economic effect on affected entities because the changes 
should not alter the day-to-day operations for entities that are 
currently in compliance with the Act.

Small Entities

    The Regulatory Flexibility Act requires that we specifically 
consider the economic effects of the proposed rule on small entities. 
As stated previously, the entities likely to be affected by this 
proposed rule are Class A and B dealers, Class C exhibitors, registered 
exhibitors, research facilities, and individuals who are exempt from 
licensing.
    The Small Business Administration (SBA) has established size 
criteria by Standard Industrial Classification (SIC) for determining 
which economic entities meet the definition of a small entity.
    According to the SBA, Class A dealers with less than $0.5 million 
in annual receipts are considered small. According to the 1997 Census 
of Agriculture, there were 10,045 dog and cat establishments in the 
category of all other annual production, which included Class A 
dealers. These dog and cat establishments had an average of $101,624 in 
annual receipts in 1997, which is well below the standard for a small 
entity. Class B dealers are categorized in the SIC as part of wholesale 
trade, other nondurable goods. According to SBA standards, if an entity 
in this category employs fewer than 100 employees, the entity is 
considered small. According to the 1997 Economic Census, the average 
wholesaler in other nondurable goods had just over six employees, which 
is far below the standard to be considered a small entity. We believe 
that the majority of the 37 Class B dealers potentially affected by the 
rule changes may be considered small. There are over 2,000 exhibitors 
licensed by or registered with APHIS. Under the SBA standards, an 
animal exhibitor is considered small if the entity has less than $5 
million in annual receipts. According to the 1997 Economic Census, the 
average circus (including animal acts and sideshows) had about $3.3 
million in annual receipts, the average zoo and botanical garden had 
$3.6 million in annual receipts, and the average nature park had $0.5 
million in annual receipts. In 1998, there were 1,227 active animal 
research facilities. The SBA standard for a small research or testing 
facility is one with less than $5 million in annual receipts, except 
for commercial physical and biological research, for which the standard 
is fewer than 500 employees. According to the 1997 Economic Census, the 
average noncommercial research and development entity in the life 
sciences had $3.3 million in annual receipts, the average testing 
laboratory had $1.2 million in annual receipts, and the average 
commercial research and development entity in the life sciences had 
just over 20 employees. Therefore, the average entity in each of these 
categories would be considered small.
    We do not have enough information to conclude the number of 
entities that this proposed rule would affect, particularly the 
proposed changes pertaining to the number of breeding females 
maintained on the same premises, regardless of ownership, and the 
number of dogs and/or cats that can be sold from a premises, regardless 
of ownership. However, most, if not all, affected entities are likely 
to be considered small based on SBA size standards.
    We are inviting comments concerning potential effects of this rule 
on small entities. In particular, we are interested in determining the 
number of individuals who would be affected by the proposed changes in 
exemptions from the licensing requirements, which would limit the 
exemptions to three breeding female dogs and/or cats on a single 
premises, regardless of ownership, or to the sale of fewer than 25 dogs 
and/or cats for research from a single premises, regardless of 
ownership.
    An alternative to this proposed rule would be to make no change to 
the Animal Welfare regulations. After consideration, we rejected this 
alternative because we believe that the proposed changes to the 
requirements are necessary to help ensure compliance with the intent 
and content of the regulations and the Animal Welfare Act.
    This proposed rule contains information collection requirements. 
The requirement related to requesting reinspection will take an 
estimated 0.083 hours per response and involve an estimated 350 
respondents. The requirement related to certification will take an 
estimated 0.083 hours per response and involve an estimated 150 
respondents. Therefore, the effect is expected to be minimal. These 
requirements are described in this document under the heading 
``Paperwork Reduction Act.''
    In addition, we have not identified any relevant Federal rules that 
are currently in effect that duplicate, overlap, or conflict with this 
rule.

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 proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
This rule would not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. The Act does not provide administrative procedures which must be 
exhausted prior to a judicial challenge to the provisions of this rule.

Paperwork Reduction Act

    In accordance with section 3507(d) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection 
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 APHIS, Washington, DC 20503. Please 
state that your comments refer to Docket No. 97-121-1. Also, please 
send a copy of your comments to: (1) Docket No. 97-121-1, Regulatory

[[Page 47915]]

Analysis and Development, PPD, APHIS, suite 3C03, 4700 River Road Unit 
118, Riverdale, MD 20737-1238, and (2) Clearance Officer, OCIO, USDA, 
room 404-W, 14th Street and 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.
    We are proposing to require applicants who do not pass the initial 
prelicensing inspection to request re-inspection, and, if necessary, a 
third inspection, within 90 days following the first inspection to 
demonstrate that the premises, animals, facilities, vehicles, 
equipment, other premises, and records are in compliance with the 
regulations and standards. We are also proposing to require dealers, 
exhibitors, and research facilities that acquire dogs or cats from 
individuals who are not licensed to obtain a certification from the 
seller that the animals were born and raised on their premises and that 
they are eligible for an exemption from the licensing requirements.
    We are soliciting comments from the public (as well as affected 
agencies) concerning our proposed information collection requirement. 
We need these comments to help us:
    (1) Evaluate whether the proposed information collection is 
necessary for the proper performance of our agency's functions, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of our estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the information collection on those who 
are to respond (such as through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses).
    Estimate of burden: The public reporting burden for applicants for 
the collection of information relating to requesting reinspection is 
estimated to average 0.083 hours per response. (The estimated annual 
number of respondents is 350.) The public reporting burden for dealers, 
exhibitors, and research facilities for the collection of information 
relating to certification of exemption from licensing is estimated to 
average 0.083 hours per response. (The estimated annual number of 
respondents is 150.)
    Respondents: Applicants, dealers, exhibitors, and research 
facilities.
    Estimated annual number of respondents: 500.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 500.
    Estimated total annual burden on respondents: 41 hours.

(Due to rounding, the total annual burden hours may not equal the 
product of the annual number of responses multiplied by the average 
reporting burden per response.)
    Copies of this information collection can be obtained from: 
Clearance Officer, OCIO, USDA, room 404-W, 14th Street and Independence 
Avenue SW., Washington, DC 20250.

List of Subjects

9 CFR Part 1

    Animal welfare, Pets, Reporting and recordkeeping requirements, 
Research.

9 CFR Part 2

    Animal welfare, Pets, Reporting and recordkeeping requirements, 
Research. Accordingly, we propose to amend 9 CFR parts 1 and 2 as 
follows:

PART 1--DEFINITION OF TERMS

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

    Authority: 7 U.S.C. 2131-2159; 7 CFR 2.22, 2.80, and 371.7.

    2. In Sec. 1.1, the definition of Administrator would be revised to 
read as follows:


Sec. 1.1  Definitions.

* * * * *
    Administrator. The Administrator, Animal and Plant Health 
Inspection Service, or any person authorized to act for the 
Administrator.
* * * * *

PART 2--REGULATIONS

    3. The authority citation for part 2 would be revised to read as 
follows:

    Authority: 7 U.S.C. 2131-2159; 7 CFR 2.22, 2.80, and 371.7.

    4. Section 2.1 would be amended as follows:
    a. In paragraph (a)(1), the first sentence, by removing the word 
``desiring'' and adding in its place the word ``intending''.
    b. In paragraph (a)(2), the last sentence, by removing the 
reference to ``paragraph (d)'' and adding in its place a reference to 
``paragraph (c)'.
    c. By revising paragraphs (a)(3)(iii) and (a)(3)(iv).
    d. By removing paragraph (b) and redesignating paragraphs (c), (d), 
(e), and (f) as paragraphs (b), (c), (d), and (e), respectively, and by 
revising newly redesignated paragraphs (c) and (d).


Sec. 2.1  Requirements and application.

    (a) * * *
    (3) * * *
    (iii) Any person who maintains a total of three (3) or fewer 
breeding female dogs, cats, and/or small exotic or wild mammals such as 
hedgehogs, degus, spiny mice, prairie dogs, flying squirrels, and 
jerboas, and who sells only the offspring of these dogs, cats, or small 
exotic or wild mammals, which were born and raised on his or her 
premises, for pets or exhibition, and is not otherwise required to 
obtain a license. This exemption does not extend to any person residing 
in a household that collectively maintains a total of more than three 
breeding female dogs, cats, and/or small exotic or wild mammals, 
regardless of ownership, nor to any person maintaining breeding female 
dogs, cats, and/or small exotic or wild mammals on premises on which 
more than three breeding female dogs, cats, and/or small exotic or wild 
mammals are maintained, nor to any person acting in concert with others 
where they collectively maintain a total of more than three breeding 
female dogs, cats, and/or small exotic or wild mammals regardless of 
ownership;
    (iv) Any person who sells fewer than 25 dogs and/or cats per year, 
which were born and raised on his or her premises, for research, 
teaching, or testing purposes or to any research facility and is not 
otherwise required to obtain a license. This exemption does not extend 
to any person residing in a household that collectively sells 25 or 
more dogs and/or cats, regardless of ownership, nor to any person 
acting in concert with others where they collectively sell 25 or more 
dogs and/or cats, regardless of ownership. The sale of any dog or cat 
not born and raised on the premises for research purposes requires a 
license;
* * * * *
    (c) A license will be issued to any applicant, except as provided 
in Secs. 2.10 and 2.11, when:
    (1) The applicant has met the requirements of this section and 
Secs. 2.2 and 2.3; and
    (2) The applicant has paid the application fee of $10 and the 
annual license fee indicated in Sec. 2.6 to the appropriate Animal Care 
regional office for an initial license, and, in the case of a license 
renewal, the annual license fee has been received by the appropriate

[[Page 47916]]

Animal Care regional office on or before the expiration date of the 
license.
    (d)(1) A licensee who wishes a renewal must submit to the 
appropriate Animal Care regional office a completed application form 
and the annual license fee indicated in Sec. 2.6 by certified check, 
cashier's check, personal check, or money order. The application form 
and the annual license fee must be received by the appropriate Animal 
Care regional office on or before the expiration date of the license. 
An applicant whose check is returned by the bank will be charged a fee 
of $20 for each returned check. A returned check will be deemed 
nonpayment of fee and will result in the denial of the license. If an 
applicant's check is returned, subsequent fees must be paid by 
certified check, cashier's check, or money order.
    (2) A license fee indicated in Sec. 2.6 must also be paid if an 
applicant is applying for a changed class of license. The applicant may 
pay the fee by certified check, cashier's check, personal check, or 
money order. An applicant whose check is returned by a bank will be 
charged a fee of $20 for each returned check. If an applicant's check 
is returned, subsequent fees must be paid by certified check, cashier's 
check, or money order.
* * * * *
    5. In Sec. 2.2, paragraph (b) would be revised to read as follows:


Sec. 2.2  Acknowledgment of regulations and standards.

* * * * *
    (b) Application for license renewal. APHIS will renew a license 
after the applicant certifies by signing the application form that, to 
the best of the applicant's knowledge and belief, he or she is in 
compliance with the regulations and standards and agrees to continue to 
comply with the regulations and standards. APHIS will supply a copy of 
the applicable regulations and standards to the applicant upon request.
    6. In Sec. 2.3, paragraph (b) would be revised to read as follows:


Sec. 2.3  Demonstration of compliance with standards and regulations.

* * * * *
    (b) Each applicant for an initial license must be inspected by 
APHIS and demonstrate compliance with the regulations and standards, as 
required in paragraph (a) of this section, before APHIS will issue a 
license. If the first inspection reveals that the applicant's animals, 
premises, facilities, vehicles, equipment, other premises, or records 
do not meet the requirements of this subchapter, APHIS will advise the 
applicant of existing deficiencies and the corrective measures that 
must be completed to come into compliance with the regulations and 
standards. An applicant who fails the first inspection will have two 
additional chances to demonstrate his or her compliance with the 
regulations and standards through a second inspection by APHIS. The 
applicant must request the second inspection, and if applicable, the 
third inspection, within 90 days following the first inspection. If the 
applicant fails inspection or fails to request re-inspections within 
the 90-day period, he or she will forfeit the application fee and 
cannot reapply for a license for a period of 6 months from the date of 
the failed third inspection or the expiration of the time to request a 
third inspection. Issuance of a license will be denied until the 
applicant demonstrates upon inspection that the animals, premises, 
facilities, vehicles, equipment, other premises, and records are in 
compliance with all regulations and standards in this subchapter.
    7. In Sec. 2.5, paragraphs (a)(4) and (b) would be revised to read 
as follows:


Sec. 2.5  Duration of license and termination of license.

    (a) * * *
    (4) The annual license fee has not been paid to the appropriate 
Animal Care regional office as required; provided, however, that a 
grace period of 30 days is provided subject to the payment of a late 
payment fee of $25.00 and, if applicable, any fee for a check that has 
been returned unpaid. There will not be a refund of the annual license 
fee if a license is terminated prior to its expiration date.
    (b) Any person who is licensed must file an application for a 
license renewal and an annual report form (APHIS Form 7003), as 
required by Sec. 2.7 of this part, and pay the required annual license 
fee. The required annual license fee must be received in the 
appropriate Animal Care regional office on or before the expiration 
date of the license or the license will expire and automatically 
terminate. Failure to comply with the annual reporting requirements or 
pay the required annual license fee on or before the expiration date of 
the license will result in automatic termination of the license.
* * * * *
    8. In Sec. 2.6, paragraphs (a) and (c) would be revised to read as 
follows:


Sec. 2.6  Annual license fees.

    (a) For an initial license, the applicant must submit a $10 
application fee in addition to the initial license fee prescribed in 
this section. Licensees applying for license renewal or changed class 
of license must submit only the license fee prescribed in this section. 
The license fee for an initial license, license renewal, or changed 
class of license is determined from table 1 or 2 in paragraph (c) of 
this section. Paragraph (b) of this section indicates the method used 
to calculate the license fee. All initial license and changed class of 
license fees must be submitted to the appropriate Animal Care regional 
office, and, in the case of license renewals, all fees must be received 
by the appropriate Animal Care regional office on or before the 
expiration date of the license.
* * * * *
    (c) The license fee shall be computed in accordance with the 
following tables:

            Table 1.--Dealers, Brokers and Operators of an Auction Sale Class ``A'' and ``B'' License
----------------------------------------------------------------------------------------------------------------
                                                                                                     Annual or
                              Over                                 But not over       Initial      changed class
                                                                                    license fee   of license fee
----------------------------------------------------------------------------------------------------------------
$0..............................................................            $500             $30             $40
500.............................................................           2,000              60              70
2,000...........................................................          10,000             120             130
10,000..........................................................          25,000             225             235
25,000..........................................................          50,000             350             360
50,000..........................................................         100,000             475             485
100,000.........................................................  ..............             750             760
----------------------------------------------------------------------------------------------------------------


[[Page 47917]]


                Table 2.--Exhibitors--Class ``C'' License
------------------------------------------------------------------------
                                                              Annual or
                                                  Initial      changed
               Number of animals                license fee    class of
                                                             license fee
------------------------------------------------------------------------
1 to 5........................................          $30          $40
6 to 25.......................................           75           85
26 to 50......................................          175          185
51 to 500.....................................          225          235
501 and up....................................          300          310
------------------------------------------------------------------------

* * * * *
    9. In Sec. 2.10, paragraph (a) would be amended by adding a new 
sentence at the end of the paragraph to read as follows:


Sec. 2.10  Licensees whose licenses have been suspended or revoked.

    (a) * * * No license will be renewed during the period that it is 
suspended.
* * * * *
    10. Section 2.11 would be amended as follows:
    a. By revising paragraphs (a)(4) and (a)(5), and by adding a new 
paragraph (a)(6).
    b. By revising paragraph (b).
    c. By adding a new paragraph (d).


Sec. 2.11  Denial of initial license application.

    (a) * * *
    (4) Has pled nolo contendere (no contest) or has been found to have 
violated any Federal, State, or local laws or regulations pertaining to 
animal cruelty within 1 year of application, or after 1 year if the 
Administrator determines that the circumstances render the applicant 
unfit to be licensed;
    (5) Is or would be operating in violation or circumvention of any 
Federal, State, or local laws; or
    (6) Has made any false or fraudulent statements or provided any 
false or fraudulent records to the Department or other government 
agencies, or has pled nolo contendere (no contest) or has been found to 
have violated any Federal, State, or local laws or regulations 
pertaining to the transportation, ownership, neglect, or welfare of 
animals, or is otherwise unfit to be licensed and the Administrator 
determines that the issuance of a license would be contrary to the 
purposes of the Act.
    (b) An applicant whose license application has been denied may 
request a hearing in accordance with the applicable rules of practice 
for the purpose of showing why the application for license should not 
be denied. The license denial shall remain in effect until the final 
legal decision has been rendered. Should the license denial be upheld, 
the applicant may again apply for a license 1 year from the date of the 
final order denying the application, unless the order provides 
otherwise.
* * * * *
    (d) No license will be issued under circumstances that the 
Administrator determines would circumvent any order suspending, 
revoking, terminating, or denying a license under the Act.
    11. A new Sec. 2.12 would be added to read as follows:


Sec. 2.12  Termination of a license.

    A license may be terminated for any reason that an initial license 
application may be denied pursuant to Sec. 2.11 after a hearing in 
accordance with the applicable rules of practice.
    12. Section 2.25 would be amended by adding a new paragraph (c) to 
read as follows:


Sec. 2.25  Requirements and procedures.

* * * * *
    (c) No registrant or person required to be registered shall 
interfere with, threaten, abuse (including verbally abuse), or harass 
any APHIS official who is in the course of carrying out his or her 
duties.
    13. Section 2.30 would be amended by adding a new paragraph (d) to 
read as follows:


Sec. 2.30  Registration.

* * * * *
    (d) No research facility shall interfere with, threaten, abuse 
(including verbally abuse), or harass any APHIS official who is in the 
course of carrying out his or her duties.
    14. Section 2.35 would be amended as follows:
    a. In paragraph (b), by removing the period at the end of paragraph 
(b)(7) and adding in its place a semicolon, and by adding a new 
paragraph (b)(8).
    b. In paragraph (b)(3), by adding the words ``(or photographic 
identification card for nondrivers issued by a State)'' after the words 
``driver's license number''.
    c. In paragraph (d)(1), by removing the words ``/VS Form 18-1'' 
after ``APHIS Form 7001'' and removing the words ``/VS Form 18-5'' 
after ``APHIS Form 7005''.
    d. In paragraph (d)(2), by removing the words ``/VS Form 18-1'' 
after ``APHIS Form 7001'' and removing the words ``/VS Form 18-6'' 
after ``APHIS Form 7006''.


Sec. 2.35  Recordkeeping requirements.

* * * * *
    (b) * * *
    (8) If dogs or cats are acquired from any person not licensed or 
registered under the Act and not a pound or shelter, the research 
facility must obtain a certification that the animals were born and 
raised on the person's premises and that the person has sold fewer than 
25 dogs and/or cats that year.
* * * * *
    15. Section 2.38 would be amended as follows:
    a. In paragraph (h)(3), by removing the words ``/VS Form 18-1'' 
after ``APHIS Form 7001''.
    b. In paragraph (i)(3), by removing the words ``/VS Form 18-9'' 
after the words ``APHIS Form 7009''.
    c. By revising paragraph (k)(2).


Sec. 2.38  Miscellaneous.

* * * * *
    (k) * * *
    (2) No person shall obtain live dogs or cats by use of false 
pretenses, misrepresentation, or deception.
* * * * *


Sec. 2.75  [Amended]

    16. Section 2.75 would be amended as follows:
    a. In paragraphs (a)(2) and (a)(2)(i), by removing the words ``/VS 
Form 18-5'' after ``APHIS Form 7005'' each time they appear and by 
removing the words ``/VS Form 18-6'' after ``APHIS Form 7006'' each 
time they appear.
    b. In paragraph (a)(3), by removing the words ``/VS Form 18-1'' 
after ``APHIS Form 7001''.
    c. In paragraph (b)(2) by removing the words ``/VS Form 18-19'' 
after ``APHIS Form 7019'' and by removing the words ``/VS Form 18-20'' 
after ``APHIS Form 7020''.
    d. In paragraphs (a)(1)(iii) and (b)(1)(iii) by adding the phrase 
``(or photographic identification card for nondrivers issued by a 
State)'' immediately following the words ``driver's license''.


Sec. 2.76  [Amended]

    17. In Sec. 2.76, paragraph (a)(4) would be amended by adding the 
phrase ``(or photographic identification card for nondrivers issued by 
a State)'' immediately following the words ``driver's license''.


Sec. 2.78  [Amended]

    18. In Sec. 2.78, paragraph (d) would be amended by removing the 
words ``/VS Form 18-1'' after ``APHIS Form 7001''.


Sec. 2.102  [Amended]

    19. In Sec. 2.102, paragraph (a)(3) would be amended by removing 
the words ``/VS Form 18-9'' after ``APHIS Form 7009''.
    20. In Sec. 2.126, paragraph (b) would be revised to read as 
follows:

[[Page 47918]]

Sec. 2.126  Access and inspection of records and property.

* * * * *
    (b) The use of a room, table, or other facilities necessary for the 
proper examination of the records and inspection of the property or 
animals must be extended to APHIS officials by the dealer, exhibitor, 
intermediate handler or carrier, and a responsible adult shall be made 
available to accompany APHIS officials during the inspection process.
    21. In Sec. 2.131, paragraphs (a), (b), (c), and (d) would be 
redesignated as paragraphs (b), (c), (d), and (e), respectively, and a 
new paragraph (a) would be added to read as follows:


Sec. 2.131  Handling of animals.

    (a) All licensees who maintain wild or exotic animals must 
demonstrate adequate experience and knowledge of the species they 
maintain.
* * * * *
    22. Section 2.132 would be amended as follows:
    a. By revising the section heading.
    b. By removing paragraphs (b) and (c), and redesignating paragraphs 
(d) and (e) as paragraphs (b) and (c), respectively, and by revising 
newly redesignated paragraph (b).
    c. In newly designated paragraph (c)(3), by removing the words 
``random source.''
    d. By adding a new paragraph (d).


Sec. 2.132  Procurement of dogs, cats, and other animals; dealers.

* * * * *
    (b) No person shall obtain live dogs, cats, or other animals by use 
of false pretenses, misrepresentation, or deception.
* * * * *
    (d) No dealer or exhibitor shall knowingly obtain any dog, cat, or 
other animal from any person who is required to be licensed but who 
does not hold a current, valid, and unsuspended license. No dealer or 
exhibitor shall knowingly obtain any dog or cat from any person who is 
not licensed, other than a pound or shelter, without obtaining a 
certification that the animals were born and raised on that person's 
premises and, if the animals are for research purposes, that the person 
has sold fewer than 25 dogs and/or cats that year, or, if the animals 
are for use as pets, that the person does not maintain more than three 
breeding female dogs and/or cats.

    Done in Washington, DC, this 27th day of July 2000 .
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 00-19725 Filed 8-3-00; 8:45 am]
BILLING CODE 3410-34-U