[Federal Register Volume 66, Number 45 (Wednesday, March 7, 2001)]
[Proposed Rules]
[Pages 13679-13681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5493]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 66, No. 45 / Wednesday, March 7, 2001 / 
Proposed Rules  

[[Page 13679]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1439

RIN: 0560-AG33


Livestock Indemnity Program

AGENCIES: Commodity Credit Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule implements provisions of the Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2001 related to the Livestock Indemnity Program-
2000 (LIP-2000). This proposed rule announces the program's 
availability and requirements and seeks comments on the program.

DATES: Comments on this rule must be received by April 6, 2001. 
Comments on the information collections in this rule must be received 
by May 7, 2001.

ADDRESSES: Comments should be mailed to: Sharon Biastock, Price Support 
Division, Farm Service Agency (FSA), U.S. Department of Agriculture, 
1400 Independence Ave., SW, Washington, DC, 20250-0540, telephone (202) 
720-6336, STOP 0517; e-mail address: [email protected]. 
Comments can be inspected in Room 4093 South Building, Washington, DC, 
between 7:30 a.m. and 4:30 p.m., Monday through Friday, except 
holidays.

FOR FURTHER INFORMATION CONTACT: Sharon Biastock, Production, 
Emergencies, and Compliance Division, Farm Service Agency (FSA), U.S. 
Department of Agriculture, 1400 Independence Ave., SW, Washington, DC, 
20250-0540, telephone (202) 720-6336, STOP 0517; e-mail address: 
[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866 and has been determined to be significant and has been reviewed 
by the Office of Management and Budget.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because USDA is not required by 5 U.S.C. 553 or 
any other provision of law to publish a notice of proposed rulemaking 
with respect to the subject matter of this rule.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an environmental assessment nor an 
Environmental Impact Statement is needed.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988. The provisions of this rule preempt State laws to the extent 
such laws are inconsistent with the provisions of this rule. Before any 
judicial action may be brought concerning the provisions of this rule, 
the administrative remedies must be exhausted.

Unfunded Mandates Reform Act of 1995

    The provisions of Title II of the Unfunded Mandates Reform Act of 
1995 are not applicable to this rule because USDA is not required by 5 
U.S.C. 553 or any other provision of law to publish a notice of 
proposed rulemaking with respect to the subject matter of this rule. 
Further, in any case, these provisions do not impose any mandates on 
State, local or tribal governments, or the private sector.

Paperwork Reduction Act

    Title: Certification of Livestock Losses For Eligible Disaster.
    OMB Control Number: 0560-0179.
    Type of Request: Reinstatement and revision of a previously 
approved information collection.
    Abstract: The information previously collected under OMB Control 
Number 0560-0179, as identified above, is all that is currently 
required by FSA to meet administrative and statutory requirements for 
the Livestock Indemnity Program. Information collected from livestock 
owners will be used by CCC to approve or determine the eligibility and 
amount of assistance in accordance with this subpart. The CCC considers 
the information collected essential to prudent eligibility and 
assistance determinations. Failure to make sound decisions in providing 
livestock indemnity program payments would result in inaccurate 
payments to livestock owners and losses to the Government.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 1 hour per response.
    Respondents: Livestock Owners.
    Estimated number of Respondents: 2,000.
    Estimated Number of Responses per Respondent: 1.5.
    Estimated Total Annual Burden on Respondents: 3,000 hours.
    Proposed topics for comment include: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (b) the accuracy of the agency's estimate of burden including 
the validity of the methodology and assumptions used; (c) ways to 
enhance the quality, utility, and clarity of the information collected; 
or (d) ways to minimize the burden of the collection of the information 
on those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology. Comments should be 
sent to the Desk Officer for Agriculture, Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington, DC 
20503 and to Sharon Biastock, Program Specialist, Compliance Branch, 
Production, Emergencies, and Compliance Division, Farm Service Agency, 
United States Department of Agriculture, STOP 0517,

[[Page 13680]]

1400 Independence Avenue, SW, Washington, DC. 20250-0517, telephone 
(202) 720-6336.

Background

    This proposed rule implements Sec. 813 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2001 (Pub. Law 106-387) related to the Livestock 
Indemnity Program-2000 (LIP-2000). The statute provides that the 
Secretary of Agriculture (the Secretary) use up to $10 million of the 
funds of the Commodity Credit Corporation to make livestock indemnity 
payments to producers on a farm for qualifying livestock losses 
occurring in the period beginning on January 1, 2000, and ending on 
December 31, 2000. A Government-Wide rescission of appropriated funds 
required by the FY 2001 Consolidated Appropriations Bill (Pub. Law 106-
554, section 1403) reduces the funds available for by 0.22 percent. 
Funding available for LIP-2000 is therefore $9.978 million.
    Pub. Law 106-387 specifically includes fires and anthrax as 
compensable losses under the new LIP-2000. LIP-2000 is a new 
authorization of funds and includes two new causes of disaster loss. 
However, in authorizing the program, Congress did not make any 
additional changes to the prior program so that, as proposed, the LIP-
2000 will parallel many of the prior LIP program requirements and 
program parameters.
    The losses must be due to disasters or wild fires in areas covered 
by a qualifying disaster declaration issued by the President or 
Secretary of Agriculture that was requested for calendar year 2000 and 
subsequently approved. In addition, the Act specifically requires LIP-
2000 to include losses due to anthrax, but because disaster 
declarations are not issued for such losses, anthrax losses will be 
compensable without the declaration of a disaster by the Secretary or 
the President.
    As in prior LIP's, losses due to drought will not be covered by the 
program because these losses are partially preventable by providing 
adequate shelter, food and water, which would be required to prove 
actions consistent with proper animal husbandry standards. No person 
can receive more than $40,000 in payments and no person can receive any 
payment if that person's annual gross revenue exceeds $2.5 million. 
Payment rates will vary by class of livestock involved and the payment 
rate will be a percentage of the assigned market price for the class. 
Should eligible claims exceed the available funds, the claims will, to 
the extent practicable, be prorated. Losses will be compensable only to 
the extent that they were caused by the disaster and were in excess of 
normal losses for the operation for the particular livestock category 
involved. This rule also amends the regulations to provide that 
payments will be made to livestock owners who have legal ownership of 
the livestock and are citizens, or legal resident aliens in, the United 
States. Previously, payments were made to livestock producers, which 
was defined as one who had a beneficial interest in eligible livestock, 
had a financial risk in the livestock, and were citizens of, or 
resident aliens in, the United States.
    LIP-2000 is being published at Subpart C of 7 CFR part 1439 (7 CFR 
1439.200 et seq.). Accordingly, the LIP program for prior years can be 
found at Subpart C of 7 CFR part 1439 in the Code of Federal 
Regulations as it existed on January 1, 2001, and the LIP-2000, once 
adopted as final, will completely replace that subpart. The public is 
invited to comment on all aspects of LIP-2000.

List of Subjects in 7 CFR Part 1439

    Animal feeds, Disaster assistance, Livestock, Pasture, Reporting 
and record keeping requirements.
    For the reasons set out in the preamble, 7 CFR part 1439 is amended 
as follows:

PART 1439--EMERGENCY LIVESTOCK ASSISTANCE

    1. The statutory authority for part 1439 continues to read as 
follows:

    Authority: 7 U.S.C. 1427a; 15 U.S.C. 714 et seq.; Sec. 1103, 
Pub. Law 105-277, 112 Stat. 2681-42-44; Pub. Law 106-31, 113 Stat. 
57; Pub. Law 106-78, 113 Stat. 1135; Pub. Law 106-113, 113 Stat. 
1501; Sec. 257, Pub. Law 106-224, 114 Stat. 358; Secs. 802, 806, and 
813, Pub. Law 106-387, 114 Stat. 1549.

    2. Revise Subpart C of part 1439 to read as follows:
Subpart C--Livestock Indemnity Program
Sec.
1439.201  Applicability.
1439.202  Administration.
1439.203  Definitions.
1439.204  Sign-up period.
1439.205  Proof of loss.
1439.206  Indemnity benefits.
1439.207  Availability of funds.
1439.208  Limitations on payments.

Subpart C--Livestock Indemnity Program


Sec. 1439.201  Applicability.

    (a) This subpart sets forth the terms and conditions applicable to 
the Livestock Indemnity Program for 2000 (LIP-2000). Benefits will be 
provided under this subpart only for losses (deaths) of livestock 
occurring as a result of:
    (1) Natural disasters, except drought;
    (2) Fires; or
    (3) Anthrax.
    (b) Losses due to natural disasters and fires (except drought) will 
be considered eligible for benefits in counties included in the 
geographic area covered by a qualifying natural disaster declaration, 
excluding contiguous counties, issued by the President of the United 
States or the Secretary of Agriculture of the United States which 
declaration was requested and approved for the period of January 1, 
2000, through December 31, 2000, inclusive.
    (c) A Presidential declaration or Secretarial designation is not 
required for losses due to anthrax.
    (d) Owners will be compensated by livestock category as established 
by CCC. The owner's loss must be the result of the declared disaster or 
anthrax and in excess of the normal losses, established by CCC, for the 
owner's livestock operation. Losses to livestock due to drought 
conditions are deemed to have been avoidable and are not eligible for 
benefits under LIP-2000.


Sec. 1439.202  Administration.

    Where circumstances preclude compliance with Sec. 1439.204 due to 
circumstances beyond the applicant's control, the FSA county or State 
committee may request that relief be granted by the Deputy 
Administrator under this section. In such cases, except for statutory 
deadlines and other statutory requirements, the Deputy Administrator 
may, in order to more equitably accomplish the goals of this subpart, 
waive or modify deadlines and other program requirements if the failure 
to meet such deadlines or other requirements does not adversely affect 
operation of the program and are not prohibited by statute.


Sec. 1439.203  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of administering this subpart. The terms defined in 
Sec. 1439.3 shall also be applicable, except where those definitions 
conflict with the definitions set forth in this subpart.
    Anthrax means a disease of animals caused by bacillus anthracis.
    Application means the Form CCC-661, Livestock Indemnity Program 
Application.
    Eligible disasters are any natural disasters occurring in 2000 that 
are named in the Presidential declaration or Secretarial designation, 
except drought or extreme heat.

[[Page 13681]]

    Fires means wild fires that occurred in forests, brush, etc., and, 
as a result, livestock was killed when it was caught in these fires or 
in structures that burned in these fires. It does not include structure 
fires that were not the result of a wild fire.
    Livestock means beef and dairy cattle, sheep, goats, swine, poultry 
(including egg-producing poultry), equine animals used for food or in 
the production of food, and buffalo and beefalo when maintained on the 
same basis and in the same manner as beef cattle maintained for 
commercial slaughter.
    Livestock owner means a person who has legal ownership of the 
livestock and is a citizen of, or legal resident alien in, the United 
States. A farm cooperative, private domestic corporation, partnership, 
or joint operation in which a majority interest is held by members, 
stockholders, or partners who are citizens of, or legal resident aliens 
in, the United States, if such cooperative, corporation, partnership, 
or joint operation owns or jointly owns eligible livestock or poultry, 
will be considered livestock owners. Any Native American tribe (as 
defined in section 4(b) of the Indian Self-Determination and Education 
Assistance Act (Public Law 93-638, 88 Stat. 2203)); any Native American 
organization or entity chartered under the Indian Reorganization Act; 
any tribal organization under the Indian Self-Determination and 
Education Assistance Act; and any economic enterprise under the Indian 
Financing Act of 1974 will be considered livestock owners so long as 
they meet the terms of the definition.


Sec. 1439.204  Sign-up period.

    A request for benefits under this subpart must be submitted to the 
CCC at the FSA county office serving the county where the livestock 
loss occurred. All applications must be filed in the FSA county office 
prior to the close of business on such date as determined and announced 
by the Deputy Administrator.


Sec. 1439.205  Proof of loss.

    (a) In the case of fires or natural disasters, livestock owners 
must, in accordance with instructions issued by the Deputy 
Administrator, provide adequate proof that the death of the eligible 
livestock occurred during the recognized natural disaster period, as 
provided in Sec. 1439.201(b); or was reasonably related to the 
disaster.
    (b) The livestock owner shall provide any available supporting 
documents that will assist the county committee, or is requested by the 
county committee, in verifying:
    (1) The quantity of eligible livestock that perished in the natural 
disaster including, but not limited to, purchase records, veterinarian 
receipts, bank loan papers, rendering truck certificates, Federal 
Emergency Management Agency and National Guard records, auction barn 
receipts, and any other documents available to confirm the presence of 
the livestock and subsequent losses; and
    (2) That the loss was reasonably related to the recognized disaster 
in the declaration or designation, including, but not limited to, 
newspaper articles or other media reports, photographs of disaster 
damage, veterinarian records, and any other documents available to 
confirm that the disaster occurred and was responsible for the 
livestock losses.
    (c) Livestock owners requesting benefits for losses due to anthrax 
shall provide documentation verifying the quantity of livestock deaths 
that was caused by anthrax.
    (d) Certifications by third parties or the owner and other such 
documentation as the county committee determines to be necessary in 
order to verify the information provided by the owner must also be 
submitted. Third-party verifications may be accepted only if the owner 
certifies in writing that there is no other documentation available. 
Third-party verification must be signed by the party that is verifying 
the information. Failure to provide documentation that is satisfactory 
to the county committee will result in the disapproval of the 
application by the county committee.
    (e) Livestock owners shall certify the accuracy of the information 
provided. All information provided is subject to verification and spot 
checks by the CCC. A failure to provide information requested by the 
county committee or by agency officials is cause for denial of any 
application filed under this part.


Sec. 1439.206  Indemnity benefits.

    (a) Livestock indemnity payments for losses of eligible livestock 
as determined by CCC are authorized to be made to livestock owners, 
based on the owner's share of the livestock, who file an application 
for the specific livestock category in accordance with instructions 
issued by the Deputy Administrator, if:
    (1) The livestock owner submits an approved proof of loss in 
accordance with Sec. 1439.205; and
    (2) The FSA county or State committee determines that because of an 
eligible disaster condition the livestock owner had a loss in the 
specific livestock category in excess of the normal mortality rate 
established by CCC, based on the number of animals in the livestock 
category that were in the owner's inventory at the time of the 
disaster.
    (b) If the number of losses in the animal category exceeds the 
normal mortality rate established by CCC for such category, the loss of 
livestock that shall be used in making a payment shall be the number of 
animal losses in the animal category that exceed the normal mortality 
threshold established by CCC.
    (c) Payments shall be calculated by multiplying the national 
payment rate for the livestock category as determined by CCC, by the 
number of qualifying animals determined under paragraph (b) of this 
section. Adjustments, if necessary, shall apply in accordance with 
Sec. 1439.207.


Sec. 1439.207  Availability of funds.

    (a) In the event that the total amount of eligible claims submitted 
under this subpart exceeds $10 million allocated by the Act, then each 
payment shall be reduced by a uniform national percentage.
    (b) Such payment reductions shall be applied after the imposition 
of applicable per-person payment limitation provisions.


Sec. 1439.208  Limitations on payments.

    (a) The provisions of Secs. 1439.10 and 1439.11 apply to LIP-2000.
    (b) Payments earned under other programs contained in this part 
shall not reduce the amount payable under this subpart.
    (c) Disaster benefits under this part are not subject to 
administrative offset. See Sec. 842 of Pub. L. 106-387.
    (d) No interest will be paid or accrue on disaster benefits under 
this part that are delayed or are otherwise not timely issued unless 
otherwise mandated by law.

    Dated: March 1, 2001.
James R. Little,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 01-5493 Filed 3-5-01; 1:12 pm]
BILLING CODE 3410-05-P