[Federal Register Volume 67, Number 34 (Wednesday, February 20, 2002)]
[Rules and Regulations]
[Pages 7583-7592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4059]



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  Federal Register / Vol. 67, No. 34 / Wednesday, February 20, 2002 / 
Rules and Regulations  

[[Page 7583]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Parts 50 and 77

[Docket No. 00-106-1]
RIN 0579-AB29


Animals Destroyed Because of Tuberculosis; Payment of Indemnity

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: We are amending the regulations regarding the payment of 
indemnity for animals destroyed because of bovine tuberculosis to 
provide that the Animal and Plant Health Inspection Service will pay 
owners of the animals an indemnity equal to the difference between the 
net salvage received and the appraised value of the animals destroyed, 
up to $3,000 per animal. This action is necessary to further 
tuberculosis eradication efforts and to protect livestock not infected 
with bovine tuberculosis from the disease.

DATES: This interim rule was effective February 14, 2002. We will 
consider all comments we receive that are postmarked, delivered, or e-
mailed by April 22, 2002.

ADDRESSES: You may submit comments by postal mail/commercial delivery 
or by e-mail. If you use postal mail/commercial delivery, please send 
four copies of your comment (an original and three copies) to: Docket 
No. 00-106-1, Regulatory Analysis and Development, PPD, APHIS, Station 
3C71, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please state 
that your comment refers to Docket No. 00-106-1. If you use e-mail, 
address your comment to [email protected]. Your comment must 
be contained in the body of your message; do not send attached files. 
Please include your name and address in your message and ``Docket No. 
00-106-1'' on the subject line.
    You may read any comments that we receive on this docket in our 
reading room. The reading room is located in 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 dockets, are available on the Internet at 
http://www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr. Joseph Van Tiem, Senior Staff 
Veterinarian, National Animal Health Programs, VS, APHIS, 4700 River 
Road Unit 43, Riverdale, MD 20737-1231; (301) 734-7716.

SUPPLEMENTARY INFORMATION:

Background

    Bovine tuberculosis (tuberculosis) is a contagious, infectious, and 
communicable disease caused by Mycobacterium bovis. It affects cattle, 
bison, deer, elk, goats, and other warm-blooded species, including 
humans. Tuberculosis in infected animals and humans manifests itself in 
lesions of the lung, bone, and other body parts, causes weight loss and 
general debilitation, and can be fatal. At the beginning of the past 
century, tuberculosis caused more losses of livestock than all other 
livestock diseases combined. This prompted the establishment of the 
National Cooperative State/Federal Bovine Tuberculosis Eradication 
Program for bovine tuberculosis in livestock. Through this program, the 
Animal and Plant Health Inspection Service (APHIS) works cooperatively 
with the national livestock industry and State animal health agencies 
to eradicate tuberculosis from domestic livestock in the United States 
and prevent its recurrence.
    Federal regulations implementing this program are contained in 9 
CFR part 77, ``Tuberculosis,'' and in the ``Uniform Methods and Rules--
Bovine Tuberculosis Eradication'' (UMR), January 22, 1999, edition, 
which is incorporated by reference into the regulations in part 77. 
Additionally, the regulations in 9 CFR part 50 (referred to below as 
the regulations) provide for the payment of indemnity to owners of 
certain animals destroyed because of tuberculosis, in order to 
encourage destruction of animals that are infected with, or at risk of 
being infected with, the disease.

Use of the Terms ``Affected'' and ``Infected''

    Prior to the effective date of this interim rule, when our intent 
in part 50 was to refer to individual animals infected with 
tuberculosis, we referred to the animals as being ``affected'' with the 
disease. However, such usage is inconsistent with the tuberculosis 
regulations in part 77, which refer to infected animals as 
``infected.'' Additionally, it is inconsistent with our general policy 
of using the term ``affected'' to mean animals that are either infected 
with or exposed to a disease. Therefore, in this interim rule, wherever 
our intent is to refer in part 50 only to animals infected with 
tuberculosis, we are replacing the term ``affected with'' with 
``infected with.''
    Making such a change, however, creates the situation of our using 
two different terms in this explanatory SUPPLEMENTARY INFORMATION to 
mean the same thing--i.e., referring to individual animals affected 
with tuberculosis when describing the content of the regulations prior 
to this interim rule and referring to individual animals infected with 
tuberculosis when describing the content of this interim rule. To make 
clear that both terms refer to the same category of animals, when we 
refer in this Supplementary Information to the description used prior 
to this interim rule of individual animals ``affected'' with 
tuberculosis, we follow that reference with the term
    ``infected'' in parentheses.
    Throughout part 50, there are also references to herds that contain 
infected animals. In some cases in the regulations, these herds are 
referred to as being ``infected'' with tuberculosis; in other cases the 
herds are referred to as being ``affected'' with the disease. In such 
cases where reference is made to a herd of animals that includes at 
least

[[Page 7584]]

one infected animal, but in which other animals in the herd are not 
necessarily known to be infected, it is more accurate to refer to the 
herd as ``affected,'' to indicate that it contains at least one 
infected animal and also other animals that have likely been exposed to 
tuberculosis. Therefore, in this interim rule, when we refer to a herd 
that contains at least one infected animal, we refer to the herd as 
being ``affected'' with tuberculosis.

Previous Indemnity Limits

    Prior to the effective date of this interim rule, the regulations 
in Sec. 50.3 set a maximum dollar figure on the amount that could be 
paid by APHIS for an animal destroyed because of tuberculosis. When 
these amounts were established, they approximated the fair market value 
of the animals, minus any salvage value that could be received for the 
animals. The limits per animal were as follows:
     $750 for cattle, bison, and captive cervids affected 
(infected) with tuberculosis;
     $450 for cattle, bison, and captive cervids exposed to 
tuberculosis;
     $450 for cattle, bison, and captive cervids classified as 
tuberculosis suspect; and
     $200 for swine exposed to tuberculosis.
    For the most part, however, these amounts were set in 1980 and, in 
recent years, even when added to the amount received by an owner for 
salvage, they often came to less than the appraised value of the 
animals. In this interim rule, we are updating the amount that can be 
paid for animals destroyed because of tuberculosis to once again allow 
for payment for the appraised value of the animals, minus salvage 
value.
    In recent years, the disparity between the amount that APHIS could 
pay for an animal destroyed because of tuberculosis and its appraised 
value has made some owners reluctant to immediately remove a suspect 
animal from a herd so that confirmation could be made at slaughter of 
its tuberculosis status. This has sometimes hindered timely detection 
and traceback of tuberculous animals, because if a suspect animal were 
sent to slaughter immediately, and was confirmed there as being 
infected with tuberculosis, traceback of other animals in the infected 
animal's herd could have begun immediately, to determine whether they 
had come in contact with animals from other herds.
    However, in instances where cattle have been classified as suspects 
for tuberculosis based on an official tuberculosis test, many owners 
have decided to wait 60 days (the minimum amount of time required 
between tests of cattle and bison; the minimum interval for captive 
cervids is 90 days) to have the animal retested, rather than have the 
animal destroyed as a suspect, in the hope that on the retest the 
animal would test negative. In cases where suspect animals have turned 
out to be infected with the disease, this has delayed the start of 
traceback procedures.
    Also, because they have been unable to obtain appraised value for 
animals destroyed because of tuberculosis, instead of depopulating an 
entire herd containing animals known to be infected with or exposed to 
tuberculosis, owners have often chosen to remove only those animals 
that have tested positive for the disease. While it is possible to 
eliminate tuberculosis infection from a herd by the ``test and 
removal'' method, depopulation of the herd is the most effective method 
of ensuring that the infection is eliminated. As reported in the 
proceedings of the 1994 U.S. Animal Health Association Meeting, up to 
33 percent of herds that were released from quarantine through the test 
and removal method between 1985 and 1994 were found to be affected with 
tuberculosis by the fifth annual quarantine release test. (VanTiem J.S. 
and Essey M.A. (1994).--Status of the State/Federal bovine tuberculosis 
eradication program. Proceedings of Annual Meeting of the U.S. Animal 
Health Association, 98, 539-555.)
    Because depopulation is a significantly more effective method of 
eradicating tuberculosis than test and removal, APHIS recently amended 
the tuberculosis regulations in 9 CFR part 77 to encourage depopulation 
of affected herds in U.S. States or zones where tuberculous animals are 
detected. Under those regulations, if a tuberculosis-affected herd is 
detected in a State or zone classified as accredited-free, and the herd 
is depopulated with no evidence of the spread of the disease, the State 
or zone may retain its accredited-free status.
    To address the discrepancy that has arisen between the indemnity 
amounts allowed to be paid to owners of animals and the appraised value 
of the animals, and to accelerate the eradication of tuberculosis from 
U.S. cattle, bison, and captive cervid herds, as well as from other 
susceptible livestock, we are amending the regulations in Sec. 50.3 to 
provide that owners will receive from APHIS an amount equal to the 
appraised value of livestock destroyed because of tuberculosis, minus 
the net salvage received for the animals. This formula will apply to 
cattle, bison, and captive cervids infected with tuberculosis, exposed 
to tuberculosis, or classified as tuberculosis suspect, as well as to 
other livestock that are exposed to tuberculosis. (As defined in 
Sec. 50.1, ``livestock'' includes cattle, bison, captive cervids, 
swine, dairy goats, and other hoofed animals (such as llamas, alpacas, 
and antelope) raised or maintained in captivity for the production of 
meat and other products, for sport, or for exhibition.)
    The regulations in part 50 provide for the payment of indemnity for 
cattle, bison, and captive cervids destroyed because they are either 
affected (infected) with tuberculosis, exposed to tuberculosis, or 
determined to be suspect for tuberculosis. Additionally, the 
regulations prior to the effective date of this interim rule provided 
that indemnity could be paid for swine considered to be exposed to 
tuberculosis by association with a cattle, bison, or captive cervid 
herd depopulated because of the disease.
    We do not consider it consistent or effective, however, to provide 
for payment of indemnity for swine considered exposed to tuberculosis 
and not to allow for payment for other susceptible livestock exposed to 
the disease. In Sec. 50.1, the definition of livestock, which lists 
those livestock susceptible to tuberculosis, includes cattle, bison, 
captive cervids, swine, dairy goats, and other hoofed animals (such as 
llamas, alpacas, and antelope), raised or maintained in captivity for 
the production of meat and other products, for sport, or for 
exhibition. In this interim rule, we are providing for the payment of 
indemnity for infected, exposed, or suspect cattle, bison, and captive 
cervids, and for other livestock considered to be exposed to 
tuberculosis by reason of association with a depopulated affected herd.

Payment for Animals Destroyed

    In this interim rule, we are amending Sec. 50.3 to provide that the 
APHIS Administrator is authorized to agree on the part of the U.S. 
Department of Agriculture (Department) to pay indemnity to owners of 
the following categories of animals:
    1. Cattle, bison, or captive cervids destroyed because they are 
classified as infected with or exposed to tuberculosis;
    2. Cattle, bison, or captive cervids destroyed because they are 
classified as suspect for tuberculosis, except that indemnity will be 
withheld for suspect animals until the tuberculosis status of the 
suspect animal has been determined

[[Page 7585]]

(through retesting of the animals or through examination of the animals 
at slaughter) and, if the suspect cattle, bison, or captive cervid is 
found to be infected with tuberculosis, until all cattle, bison, and 
captive cervids 12 months of age or older in the claimant's herd have 
been tested for tuberculosis under APHIS or State supervision; and
    3. Other livestock destroyed because they are classified as exposed 
to tuberculosis by reason of association with a herd destroyed because 
of tuberculosis, if the designated tuberculosis epidemiologist 
determines their destruction will contribute to the tuberculosis 
eradication program.
    In each case, the amount of joint State-Federal indemnity payment, 
together with the amount of net salvage the owner receives when the 
animals are slaughtered, shall not exceed the appraised value of the 
animals. Additionally, the Department will in no case pay more than 
$3,000 for an animal that is destroyed.
    The Department and the U.S. Office of Management and Budget are 
planning to set overall criteria that would govern how the costs of 
program activities, including the payment of indemnity, are shared 
among the Federal government and cooperators such as State and local 
governments, industry and producers. This interim rule may be amended 
after publication of final cost-sharing criteria.

Section 50.9--Appraisal of Animals

    Provisions regarding the appraisal of cattle, bison, captive 
cervids, and swine destroyed because of tuberculosis are set forth in 
Sec. 50.9. Those provisions require that, except for certain 
situations, cattle, bison, captive cervids, and swine to be destroyed 
because of tuberculosis be appraised within 15 days after being 
classified as affected (infected) with tuberculosis, or otherwise being 
condemned because of the disease. The phrase ``animals condemned 
because of the disease'' refers to animals condemned by the 
Department's Food Safety and Inspection Service with regard to human 
consumption, due to the presence in the animal of tuberculosis lesions. 
Such a finding was relevant under the regulations prior to this interim 
rule because, although a suspect or exposed animal that was condemned 
at slaughter would not have any salvage value, it would become eligible 
for the indemnity rate for an affected (infected) animal ($750) rather 
than the rate for a suspect or exposed animal ($450). However, because 
this interim rule makes no distinction between infected, exposed, or 
suspect animals in the amount of indemnity to be paid, there is no need 
to include a reference to condemned animals.
    We are additionally retaining the provisions in Sec. 50.9 that when 
the animals to be destroyed are appraised, due consideration shall be 
given to their breeding value as well as to their dairy or meat value, 
and that animals presented for payment as registered must be 
accompanied by their registration papers. If the registration papers 
are temporarily not available, or if the animals are less than 3 years 
old and unregistered, the appropriate veterinarian in charge may grant 
a reasonable period of time for presentation of the registration 
papers.
    We are also retaining the provision that APHIS may decline to 
accept any appraisal that appears to be unreasonable or out of 
proportion to the value of like animals of like quality.
    Prior to the effective date of this interim rule, Sec. 50.9 
provided simply that the appraisal shall be done by an independent 
professional appraiser at the expense of APHIS, except that the 
veterinarian in charge could waive the requirement for an independent 
professional appraiser for reasons satisfactory to the veterinarian in 
charge. This provision was adequate when the amount to be paid for 
animals destroyed was a relatively low set amount and the appraisal 
process was conducted simply to ensure that the maximum set amount did 
not exceed the appraised value of a destroyed animal. However, because 
indemnity payments will now equal the appraised value of the animals 
minus net salvage received (up to $3,000 per animal), we consider it 
appropriate to provide owners of animals with the option of requesting 
a review by the Administrator of an appraised value that the owner 
considers inadequate.
    Therefore, we are amending Sec. 50.9 to provide that animals for 
which indemnity is to be paid under the regulations must be appraised 
at their fair market value by an appraiser selected by APHIS. Should 
the appraisal made by the appraiser selected by APHIS be deemed 
inadequate by the owner of the animals, the owner will have 15 days 
from the receipt of the appraisal to submit to the Administrator a 
request for a review of the appraisal, along with the reasons why the 
animals should be appraised at a higher value. The decision by the 
Administrator regarding the value of the animals is final.

Section 50.1--Definitions

    On October 23, 2000, we published a final rule in the Federal 
Register (65 FR 63502-63533, Docket No. 99-038-5) in which we made a 
number of changes to the tuberculosis regulations in part 77. Among the 
changes we made were revisions to definitions of terms used in part 77. 
Several of the terms that we revised in part 77 are also used and 
defined in part 50. In this interim rule, we are revising those 
definitions in Sec. 50.1 to be consistent with the changes we made in 
part 77. We discuss each of these changes below.
    Captive cervid. Prior to the effective date of this interim rule, 
in part 50 of the regulations captive cervid was defined in part as all 
species of deer, elk, moose, and all other members of the family 
Cervidae raised or maintained in captivity for the production of meat 
and other agricultural products, for sport, or for exhibition. That 
wording is consistent with the definition in part 77 as it appeared 
prior to our October 23, 2000, final rule. However, in that final rule, 
we amended the definition of captive cervid to clarify that the cervids 
described above will continue to be considered captive cervids during 
the time they are moved interstate and that a wild cervid that is moved 
interstate will be considered a captive cervid during the period of 
time between its capture and its release into the wild. We also 
provided that a captive cervid that escapes will continue to be 
considered a captive cervid as long as it bears an official eartag or 
other identification approved by the Administrator as unique and 
traceable with which to trace the animal back to its herd of origin. In 
this interim rule, we are amending the definition of captive cervid in 
part 50 to be consistent with the definition in part 77.
    Designated epidemiologist. Prior to the effective date of this 
interim rule, designated epidemiologist was defined in part 50 as an 
epidemiologist appointed by a cooperating State animal health official 
and the veterinarian in charge to perform functions specified by the 
``Uniform Methods and Rules Bovine Tuberculosis Eradication.'' The 
individual referred to as ``designated epidemiologist'' in part 50 is 
the same individual referred to as ``designated tuberculosis 
epidemiologist'' in part 77. However, the definition of ``designated 
tuberculosis epidemiologist'' we set forth in part 77 in our October 
23, 2000, final rule provides a more specific description of that 
individual's responsibilities than the definition of ``designated 
epidemiologist'' in part 50 prior to this interim rule. Therefore, in 
this interim rule, we are replacing the definition of designated 
epidemiologist in Sec. 50.1 with a definition of designated 
tuberculosis epidemiologist (DTE) to read: ``A State or Federal 
epidemiologist

[[Page 7586]]

designated by the Administrator to make decisions concerning the use 
and interpretation of diagnostic tests for tuberculosis and the 
management of tuberculosis affected herds. A DTE has the responsibility 
to determine the scope of epidemiologic investigations, determine the 
status of animals and herds, assist in the development of individual 
herd plans, and coordinate disease surveillance and eradication 
programs within the geographic area of the DTE's responsibility.''
    Herd. Prior to the effective date of this interim rule, herd was 
defined in part 50 as any group of livestock maintained on common 
ground for any purpose, or two or more groups of livestock under common 
ownership or supervision, geographically separated but that have an 
interchange or movement of livestock without regard to health status, 
as determined by the Administrator. That wording is consistent with the 
definition in part 77 as it appeared prior to our October 23, 2000, 
final rule, except that the part 77 definition included a clarifying 
statement that a group means one or more animals. However, in our 
October 23, 2000, final rule, we amended the part 77 definition of herd 
to provide that livestock assembled at a feedlot will not be considered 
a herd. In this interim rule, we are amending the definition of herd in 
Sec. 50.1 to make it consistent with that change to the definition in 
part 77. Additionally, on April 20, 2001, we published an interim rule 
in the Federal Register (66 FR 20187-20190, Docket No. 00-102-1) in 
which we revised the definition of herd in Sec. 93.400 as it applied to 
the provisions regarding the importation of ruminants. In that interim 
rule, we provided that for a group of animals to be considered a herd, 
the animals needed to be maintained as a group for at least 4 months. 
In this interim rule, we are adding that change to the definitions of 
herd in both Secs. 50.1 and 77.2.
    Herd depopulation. Prior to the effective date of this interim 
rule, herd depopulation was defined as removal by slaughter or other 
means of destruction of all cattle, bison, and captive cervids in a 
herd prior to restocking with new cattle, bison, or captive cervids. 
Because, as discussed above, we consider it necessary to the 
tuberculosis eradication program to destroy all exposed susceptible 
animals in an affected herd--not just cattle, bison, and captive 
cervids--we are revising the definition of herd depopulation to state 
that it involves the removal by slaughter or other means of destruction 
of all cattle, bison, and captive cervids in a herd, as well as any 
other exposed livestock in the herd, prior to restocking with new 
livestock.
    Permit. Prior to the effective date of this interim rule, the 
definition of permit referred to a permit for movement of cattle, 
bison, captive cervids, or swine. For the same reason discussed in the 
preceding paragraph, we are revising the definition of permit to refer 
to a permit for movement of livestock.
    Registered cattle, bison, and captive cervids. Prior to the 
effective date of this interim rule, Sec. 50.1 included a definition of 
registered cattle, bison, and captive cervids. Because this interim 
rule provides for payment of indemnity for livestock other than cattle, 
bison, and captive cervids, we are revising the definition of 
registered cattle, bison, and captive cervids to refer instead to 
registered livestock.
    Reactor cattle, bison, and captive cervids. The definition of 
reactor cattle, bison, and captive cervids states the manner in which 
cattle and bison are determined to be reactors for tuberculosis, then 
states that captive cervids will be determined to be reactors in the 
same way as cattle and bison. We are making a nonsubstantive change to 
combine the language regarding cattle, bison, and captive cervids to 
make the definition more concise.
    In addition to the revisions to the existing definitions in 
Sec. 50.1, discussed above, we are adding definitions of net salvage, 
State animal health official, and State representative. Net salvage is 
defined as the amount received for animals destroyed because of 
tuberculosis, after deducting freight, trucking, yardage, commission, 
slaughtering charges, and similar costs to the owner. Net salvage does 
not include any amounts received from Federal or State sources for 
indemnity. State animal health official is defined as the individual 
employed by a State who is responsible for livestock and poultry 
disease eradication programs in that State. State representative is 
defined as a veterinarian or other person who is employed in livestock 
sanitary work of a State or a political subdivision of a State and who 
is authorized by the State or political subdivision to perform the 
function involved under a memorandum of understanding with the 
Department.

Section 50.2--Cooperation With States

    Prior to the effective date of this interim rule, Sec. 50.2 stated 
that the Administrator cooperates with the proper State authorities in 
the eradication of tuberculosis and pays Federal indemnities for the 
destruction of cattle, bison, captive cervids, or swine affected 
(infected) with or exposed to tuberculosis. We are updating this 
language to make it consistent with the other provisions in part 50, by 
stating that the Administrator pays Federal indemnities for the 
destruction of cattle, bison, and captive cervids that are infected 
with, exposed to, or suspect for tuberculosis, and for other livestock 
exposed to tuberculosis.

Section 50.4--Classification of Livestock

    Prior to the effective date of this interim rule, Sec. 50.4 set 
forth only the criteria used to classify cattle, bison, or captive 
cervids as affected (infected) with, exposed to, or suspect for 
tuberculosis. In this interim rule, we are adding a paragraph (d) to 
Sec. 50.4 to provide that the designated tuberculosis epidemiologist 
will determine whether livestock other than cattle, bison, or captive 
cervids are classified as exposed to tuberculosis by reason of 
association with an affected herd of cattle, bison, or captive cervids.

Section 50.6--Identification of Animals To Be Destroyed

    Section 50.6 of the regulations sets forth requirements for the 
identification of animals that are to be destroyed because of 
tuberculosis. Those provisions include the requirement that, except in 
certain specified situations, cattle, bison, captive cervids, and swine 
to be destroyed because of tuberculosis must be identified within 15 
days after being classified as reactors or otherwise condemned because 
of the disease. Consistent with the change we are making to the 
regulations at Sec. 50.9 regarding the appraisal of animals for which 
indemnity is to be paid, we are providing in Sec. 50.6 that the 15-day 
time limit for identifying animals to be destroyed because of 
tuberculosis applies to animals classified as either tuberculosis 
reactors or animals suspect for tuberculosis.

Section 50.7--Destruction of Animals

    Section 50.7 of the regulations sets forth certain requirements for 
the destruction of cattle, bison, captive cervids, and swine destroyed 
because of tuberculosis and for which indemnity will be paid. We are 
amending Sec. 50.7(a) and (b) to make the requirements of the section 
applicable to all livestock.

Section 50.8--Payment for Transportation and Disposal

    Section 50.8 of the regulations provides that the Department may 
pay one-half or more of the expenses of transporting affected 
(infected),

[[Page 7587]]

exposed, or suspect cattle, bison, and captive cervids to slaughter 
because of tuberculosis or to the point where disposal will otherwise 
take place, and may also pay one-half or more of the expenses of 
destroying, burying, incinerating, rendering, or otherwise disposing of 
the animals. To encourage the destruction of all susceptible livestock 
exposed to tuberculosis, we are expanding the payment provisions of 
Sec. 50.8 to include all such livestock.

Section 50.10--Report of Appraisals

    Section 50.10 includes provisions for recording information 
regarding the appraisal of cattle, bison, captive cervids, and swine 
destroyed because of tuberculosis. We are amending the section to make 
its provisions applicable to all livestock destroyed because of 
tuberculosis.

Section 50.11--Report of Salvage Proceeds

    Section 50.11 includes provisions for the reporting of salvage 
proceeds for cattle, bison, captive cervids, and swine destroyed 
because of tuberculosis. We are amending the section to make its 
provisions applicable to all livestock destroyed because of 
tuberculosis.

Section 50.12  Claims for indemnity

    Section 50.12 includes provisions for making a claim for indemnity 
for cattle, bison, captive cervids, and swine destroyed because of 
tuberculosis. We are amending the section to make its provisions 
applicable to all livestock destroyed because of tuberculosis. 
Similarly, we are applying to all livestock destroyed because of 
tuberculosis the provision in Sec. 50.12 that no charges for holding 
animals on the farm pending slaughter or for trucking by the owner 
shall be paid by the Department.

Section 50.14  Claims not Allowed

    Section 50.14 provides that claims for compensation for cattle, 
bison, or captive cervids destroyed because of tuberculosis will not be 
allowed under certain conditions. For instance, compensation will be 
not be allowed if all cattle, bison, and captive cervids in the 
claimant's herd have not been tested for tuberculosis, except under 
certain specified conditions. Nor will claims be paid if there is 
substantial evidence that the owner of the animals has attempted to 
obtain indemnity unlawfully or improperly.
    In this interim rule, we are amending Sec. 50.14 by revising 
certain provisions and adding others. We are changing the introductory 
language of Sec. 50.14, and also Sec. 50.14(d) so that these sections 
apply to all livestock destroyed because of tuberculosis, not just to 
cattle, bison, and captive cervids. In Sec. 50.14(d), we are removing 
references to animals condemned because of tuberculosis, consistent 
with changes we are making elsewhere in the part.
    Prior to this interim rule, paragraph (b) of Sec. 50.14 provided 
that claims for payment were not allowed if all cattle, bison, and 
captive cervids 2 years of age or older in the claimant's herd had not 
been tested for tuberculosis under APHIS or State supervision. However, 
in our October 2000 final rule, discussed above, we provided that, in 
general, animals 12 months of age or older in a herd, rather than 2 
years of age or older, needed to be tested for a test to qualify as a 
whole herd test. Consistent with the provisions of part 77, we are 
applying the testing requirement in Sec. 50.14(b) to animals 12 months 
of age or older, rather than 2 years of age or older.
    Finally, we are adding a new paragraph (g) to Sec. 50.14 to provide 
that claims for compensation for livestock other than cattle bison, and 
captive cervids that are destroyed because of association with herds of 
affected cattle, bison, or captive cervids will not be allowed if any 
of the following apply: (1) The livestock did not reside among the herd 
for a period of 4 months or more; (2) the livestock have not received a 
postmortem examination for tuberculosis; or (3) the livestock were 
added to a herd that was under quarantine for tuberculosis at the time 
the livestock were added to the herd, unless an approved herd plan was 
in effect at that time. The requirement that the livestock must have 
resided among the herd for a period of 4 months or more is consistent 
with the change we are making to the definition of herd, discussed 
above, to provide that a group of animals maintained on common ground 
will not be considered a herd unless they have been maintained together 
for at least 4 months.

Section 50.15  Payment Disclaimer

    We are removing Sec. 50.15 because it is no longer necessary. Prior 
to the effective date of this interim rule, Sec. 50.15 stated that no 
claim for Federal indemnity for cattle and bison destroyed because of 
tuberculosis would be paid under the regulations in part 53, but rather 
would be paid under the regulations in part 50. That section was added 
a number of years ago when the provisions that are currently in part 50 
were established. Those provisions have been in place long enough now 
to make it unnecessary to state that tuberculosis indemnity payments 
will not be paid under part 53.

Section 50.16  Cattle on the Island of Molokai

    We are also removing Sec. 50.16 because it is no longer necessary. 
Prior to the effective date of this interim rule, Sec. 50.16 contained 
provisions governing the payment of indemnity for cattle on the island 
of Molokai in Hawaii that had been exposed to tuberculosis. These 
provisions provided that, under certain conditions, indemnity could be 
paid for exposed cattle on Molokai that were moved to a quarantined 
feedlot. Because tuberculosis no longer exists among livestock on 
Molokai, we are removing the provisions of Sec. 50.16.

Emergency Action

    This rulemaking is necessary on an emergency basis to ensure that 
livestock affected by tuberculosis are destroyed as soon as possible to 
allow for rapid detection of the disease and prevent its spread. Under 
these circumstances, the Administrator has determined that prior notice 
and opportunity for public comment are contrary to the public interest 
and that there is good cause under 5 U.S.C. 553 for making this rule 
effective less than 30 days after publication in the Federal Register.
    We will consider comments that are received within 60 days of 
publication of this rule in the Federal Register. After the comment 
period closes, we will publish another document in the Federal 
Register. The document will include a discussion of any comments we 
receive and any amendments we are making to the rule as a result of the 
comments.

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been reviewed under Executive Order 12866. The rule 
has been determined to be significant for the purposes of Executive 
Order 12866 and, therefore, has been reviewed by the Office of 
Management and Budget.

Tuberculosis Eradication Strategic Plan

    The program to eliminate tuberculosis in livestock in the United 
States was begun in 1917. Since that time, the rate of tuberculosis has 
been reduced from about 5 percent of susceptible livestock to today's 
rate of less than .0002 percent. However, the final instances of a 
disease are often the most difficult to find and eliminate. The action 
being taken in this interim rule is one component of a strategic plan 
APHIS has developed to complete the eradication of bovine tuberculosis 
in domestic livestock. In addition to the

[[Page 7588]]

increase in allowable indemnities for cattle and other livestock, we 
also have implemented, or are in the process of implementing, the 
following: Improvement of Federal diagnostic capabilities and national 
surveillance for tuberculosis; payment of indemnity for the 
depopulation of herds at high risk for recurrence of the disease; 
establishment of identification requirements for animals imported into 
the United States for feeding and slaughter; assistance in eradicating 
tuberculosis from foreign areas adjacent to the United States that are 
at high risk for the disease; and research, control, and surveillance 
of tuberculosis in wildlife, captive cervids, and zoos in the United 
States.
    On October 23, 2000, we published in the Federal Register a notice 
of a declaration by the U.S. Secretary of Agriculture (65 FR 63227, 
Docket No. 00-066-1), effective October 11, 2000, that authorized the 
transfer and use of emergency funds to expand the tuberculosis 
eradication program in the United States, as described in the preceding 
paragraph. Approximately $1 million of the emergency funds was 
earmarked for the current fiscal year for livestock eligible for 
indemnity under this interim rule. APHIS has requested appropriated 
funding for such indemnity payments for future years to equal 
approximately $1.6 million per year.
    Prior to the effective date of this interim rule, the regulations 
in Sec. 50.3 set a maximum dollar figure on the amount that could be 
paid by APHIS for an animal destroyed because of tuberculosis. When 
these amounts were established, they approximated the fair market value 
of the animals, minus any salvage value that could be received for the 
animals. For the most part, however, these amounts were set in 1980 
and, in recent years, even when added to the amount received by an 
owner for salvage, they often came to less than the appraised value of 
the animals. In this interim rule, we are updating the amount that can 
be paid for animals destroyed because of tuberculosis to once again 
allow for payment for the appraised value of the animals, minus salvage 
value.
    In recent years, the disparity between the amount that APHIS could 
pay for an animal destroyed because of tuberculosis and its appraised 
value has made some owners reluctant to immediately remove a suspect 
animal from a herd so that confirmation could be made at slaughter of 
its tuberculosis status. This has sometimes hindered timely detection 
and traceback of tuberculous animals, because if a suspect animal were 
sent to slaughter immediately, and was confirmed there as being 
infected with, traceback of other animals in the infected animal's herd 
could have begun immediately, to determine whether they had come in 
contact with animals from other herds.
    However, in instances where cattle have been classified as suspects 
for tuberculosis based on an official tuberculosis test, many owners 
have decided to wait 60 days (the minimum amount of time required 
between tests of cattle and bison; the minimum interval for captive 
cervids is 90 days) to have the animal retested, rather than have the 
animal destroyed as a suspect, in the hope that on the retest the 
animal would test negative. In cases where suspect animals have turned 
out to be infected with the disease, this has delayed the start of 
traceback procedures.
    Also, because they have been unable to obtain appraised value for 
animals destroyed because of tuberculosis, instead of depopulating an 
entire herd containing animals known to be infected with or exposed to 
tuberculosis, owners have often chosen to remove only those animals 
that have tested positive for the disease. Studies have shown that up 
to 33 percent of herds that were released from quarantine through the 
test and removal method between 1985 and 1994 were found to be affected 
with tuberculosis by the fifth annual quarantine release test. (VanTiem 
J.S. and Essey M.A. (1994).--Status of the State/Federal bovine 
tuberculosis eradication program. Proceedings of Annual Meeting of the 
U.S. Animal Health Association, 98, 539-555.)

Livestock Other Than Cattle, Bison, Captive Cervids, and Swine

    Prior to this interim rule, the tuberculosis indemnity regulations 
allowed for payment for cattle, bison, captive cervids, and swine. In 
this interim rule, we are also providing payment of indemnity for other 
livestock considered to be exposed to tuberculosis by reason of 
association with a depopulated affected herd of cattle, bison, or 
captive cervids. These ``other livestock'' are defined as including 
dairy goats and other hoofed animals, such as llamas, alpacas, and 
antelope. Our primary concern with such animals is that they might 
spread tuberculosis to cattle, bison, or captive cervids, among which 
they are sometimes kept. We anticipate that there will be a low 
likelihood that indemnity will need to be paid for such other 
livestock, but we are including them in this regulation to address 
those limited situations where such indemnity will be necessary.

Changes in Indemnity Maximums

    Currently, herd owners are paid up to $750 for animals infected 
with tuberculosis and up to $450 for suspect and exposed animals. 
Initially, these indemnity limits were consistent with the relative 
market value of the animals. However, prevailing market values of 
animals vary by weight class, by breed, and by function. During the 
past 20 years, the value of livestock has increased while the indemnity 
rates have remained constant. Livestock entities also specialize in 
high value stock that exceed these limits of Federal indemnity. This 
interim rule will allow for higher indemnity payments than do the 
existing regulations by raising the maximum amount that will be paid 
for cattle, bison, captive cervids, or other livestock destroyed 
because of tuberculosis. As with the existing regulations, this interim 
rule provides for payment of indemnity up to a limit set in the 
regulations. However, the increase in the limit will, in most cases, 
provide owners with payment equal to the appraised value of the 
animals. Also, it will continue to allow for payment by APHIS for one-
half or more of the cost of transporting affected animals or herds to 
diagnostic labs or to slaughter.
    These changes are expected to speed up the diagnosis of 
tuberculosis and, if necessary, herd depopulation. This action will 
produce positive benefits at relatively minimal cost by hastening the 
eradication of an economically damaging disease from the United States. 
This action will have long-term positive budgetary effects. If, as 
expected, many owners respond to this incentive, initial indemnity 
costs will rise, but the rapid diagnosis and depopulation of bovine 
tuberculosis herds will aid in reducing costs of the National 
Tuberculosis Eradication Program. Additionally, both small and large 
herd owners will experience a positive economic impact as they will now 
be fairly compensated for the destruction of any suspect animals, 
thereby allowing the removal of any interstate quarantines. 
Furthermore, the value of their herds will increase, both domestically 
and internationally, when tuberculosis is eliminated from the United 
States.

Economic Analysis

    As of January 1, 2000, the total number of cattle in the United 
States was approximately 98 million, valued at approximately $58 
billion. There were 1,095,960 U.S. operations with cattle.

[[Page 7589]]

Over 99.1 percent of these operations were small businesses with gross 
annual receipts of $500,000 or less. Slaughtering is more concentrated 
than production of animals. Four firms accounted for 70 percent of 
commercial cattle slaughter, while over 99 percent of cattle are 
produced by small herd owners. Nearly 63 percent of slaughters occurred 
in plants that slaughtered more than a million steers and heifers.
    There are about 112,700 bison on 1,150 premises in the United 
States, valued at about $250 million. Additionally, in 1999, there were 
about 165,000 known captive cervids, valued at about $390 million, of 
which 50.9 percent were deer and 48.9 percent, elk. Cervid operations 
vary in size and degree of commercialization, and many cervid producers 
also rely on other sources of income. Most, if not all, cervid 
operations are relatively small and earn less than $500,000.
    Prevailing spot market prices of animals are likely to vary by 
breed, by market, and by weight class. Generally, purebred animals 
command much higher prices than nonpurebred animals. Registered animals 
earn more than nonregistered animals. Prices are likely to be 
influenced by whether the animal is purebred or crossbred, its grade, 
and by factors such as calving ease, reproductive soundness, weight and 
body consistency, the calving season, and the animal's general health. 
Market conditions can also influence the price of bred cows and heifers 
and bulls. High calf or dairy product prices can induce an interest in 
beef cow or dairy cow herd expansion, which will in turn lead to an 
increased demand for bred heifers.
    Average grade bred heifer prices range between $800 and $2,000 and 
most are around $1,500. Top selling bulls are priced a little above 
this amount. Average grade 2-year old bison heifers sell for about 
$2,100 (average of Kansas and Nebraska), with average prices ranging 
between $975 and $2,900. The prices of 2-year old bison bulls range 
between $750 and $3,250, with the average price about $1,150. Average 
grade deer prices range between $600 and $1,000, with an average of 
about $800. Reported elk prices are at the higher end. Bred heifers 
average about $4,000, while bulls average about $5,500. All of these 
prices are spot market prices and are likely to vary over time 
depending on the market situation and the economic outlook.
    There is no salvage value when a reactor or suspect animal is taken 
to a diagnostic laboratory for postmortem examination for bovine 
tuberculosis. When an animal is found to be infected, the other animals 
in the herd are all classified at least as exposed. A reactor is 
generally not salvageable because the Department's Food Safety and 
Inspection Service requires the meat to be cooked, and most slaughter 
plants currently do not cook meat from tuberculous animals. Any exposed 
or suspect animal with post mortem evidence of bovine tuberculosis is 
classified as a reactor. Exposed animals that were previously tested 
and had a response to a presumptive test are classified as reactors. 
Under the regulations prior to this interim rule, an indemnity of $750 
each was paid for reactor animals.
    A reactor animal can be reclassified as a suspect animal by the 
epidemiologist under some conditions and can go to slaughter and 
receive salvage value and up to $450 indemnity if there are no 
tuberculosis lesions. Exposed animals have been treated the same as 
suspect animals with regard to the amount of indemnity, and salvage has 
been paid accordingly. Salvage values of cattle also vary by weight, 
age, and type. Salvage values of bred heifers or cows range between 
$350 and $750, with an average of about $550. Bison bulls sell at about 
$2 per pound of dressed weight. The dressed weight of a bison averages 
about 640 pounds, with a range of between 550 and 775 pounds, with a 
consequent average value of about $1,300 (ranging from $1,100 to 
$1,450). Bison cows are of lower value and sell at about $1 per pound. 
Their weight is similar to that of bulls. Elk sell on average for $2 
per pound of dressed weight. Elk bulls average 700 pounds, with a range 
of 600 and 1,000 pounds, while an elk cow averages 500 pounds, with a 
range of between 450 and 650 pounds. Dressed weight is about 67 percent 
of live weight. Thus, using an average of $2 per pound, the salvage 
value of an average elk bull and cow is about $938 and $670, 
respectively.
    Given the variability of spot market prices for cattle, bison, and 
cervids, the current indemnity payments are not sufficient for 
replacement bred heifers and live bulls auctioned for breeding purpose. 
This rule, by making a close connection between indemnity payments of 
animals destroyed because of tuberculosis and their market values at 
the time the animals are destroyed, provides owners sufficient 
incentive to eliminate possibly infected animals. This change is 
expected to speed up the diagnosis of tuberculosis and, when necessary, 
subsequent herd depopulation.
    Because the number of herds and cattle infected with tuberculosis 
is small relative to the national cattle supply, it is unlikely that 
this rule will measurably affect livestock prices. Disease status is 
only one of the components affecting prices of animals. Accelerated and 
expanded surveillance and testing could yield more suspect herds or 
animals. However, complete depopulation of an affected herd has been 
shown to be the most effective way of eliminating tuberculosis in the 
United States. Reported recurrences of bovine tuberculosis in herds 
after release of quarantine by test and removal have been estimated at 
up to 33 percent.
    It is expected that final fiscal year 2001 Federal costs for 
tuberculosis indemnity will total approximately $775,000, as payment 
for approximately 1,050 animals. However, slightly more than 1,000 of 
those animals were from Michigan, where known pockets of infection are 
disproportionately high in comparison to the rest of the United States. 
Following the depopulation of herds in Michigan in fiscal year 2001, 
the number of animals eligible for indemnity in that State is expected 
to fall significantly.
    In the remainder of the United States, there is expected to be an 
increase in the amount of Federal costs for animals depopulated because 
of tuberculosis, due to the increase in the maximum amount to be paid 
per animal under this interim rule, along with the likelihood that a 
greater percentage of owners with indemnity-eligible animals will 
choose to have their animals destroyed. Projected indemnity costs for 
each of the 3 years following the effective date of this interim rule 
are expected to total approximately $1.6 million, as payment for 
approximately 1,100 animals per year. As noted above, APHIS has 
requested appropriated funding for such indemnity payments for the next 
3 years. Our goal during that period is to reach the point where there 
are no reported cases of tuberculosis in the United States. However, 
even at that point, surveillance for tuberculosis will continue in the 
United States, and it is expected that sporadic cases of tuberculosis 
will be detected in this country in future years, and that indemnity 
will need to be paid for the destruction of those affected animals.
    Compared to the significance of the livestock industry in the U.S. 
economy, these additional short-term costs are small. The livestock 
industry plays a very important role in the U.S. economy. It accounts 
for over $60 billion of the U.S. gross domestic product. Additionally, 
it plays a very significant role in international trade. In 1999, the 
total earnings from exports of live cattle, beef and veal were

[[Page 7590]]

approximately $2.8 billion. The U.S. competitiveness in international 
markets depends to a great degree upon its reputation for producing 
high quality animals, a reputation that would be enhanced if bovine 
tuberculosis were eradicated in this country. Purchasers' perceptions 
of quality contribute to continued world market acceptance. Although 
relationships between perceived quality and export levels are not 
sufficiently developed to estimate impacts on trade, it is concluded 
that eradication of bovine tuberculosis serves the best economic 
interests of the nation.
    Indemnity payments that will be made under this rule for the 
current fiscal year will come from emergency funds authorized by the 
Secretary of Agriculture. APHIS has requested appropriated funding for 
such indemnity payments for future years. This action will have no 
effect on other Federal agencies or local governments. State 
governments, however, will benefit from the rapid diagnostic sampling 
and, if necessary, the depopulation of affected herds. This action will 
have long-term `positive budgetary effects. Additionally, both small 
and large herd owners will eventually experience a positive economic 
effect as a result of this action since they will now have an incentive 
to destroy suspect animals, thereby allowing the removal of quarantine. 
The value of their herds will increase when tuberculosis is eliminated 
from the United States. Expediting increased indemnity payments will 
further rapid detection of tuberculous animals, and thus protect 
against the spread of tuberculosis in the United States and accelerate 
eradication of the disease in U.S. livestock.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12372

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

Executive Order 12988

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

Paperwork Reduction Act

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

List of Subjects

9 CFR Part 50

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

9 CFR Part 77

    Animal diseases, Bison, Cattle, Incorporation by reference, 
Reporting and recordkeeping requirements, Transportation, Tuberculosis.


    Accordingly, we are amending 9 CFR parts 50 and 77 as follows:

PART 50--ANIMALS DESTROYED BECAUSE OF TUBERCULOSIS

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

    Authority: 21 U.S.C. 111-113, 114, 114a, 114a-1, 120, 121, 125, 
and 134b; 7 CFR 2.22, 2.80, and 371.4.

    2. In Sec. 50.1, the definitions of captive cervid, herd, herd 
depopulation, permit, and reactor cattle, bison, and captive cervids 
are revised; the definition of designated epidemiologist is removed and 
a definition of designated tuberculosis epidemiologist (DTE) is added 
in its place; the definition of registered cattle, bison, or captive 
cervids is removed and a definition of registered livestock is added in 
its place; and definitions of net salvage and State animal health 
official, and State representative are added in alphabetical order, to 
read as follows:


Sec. 50.1  Definitions.

* * * * *
    Captive cervid. All species of deer, elk, moose, and all other 
members of the family Cervidae raised or maintained in captivity for 
the production of meat and other agricultural products, for sport, or 
for exhibition, including time such animals are moved interstate; or 
any wild cervid that is moved interstate, during the period of time 
from capture until release into the wild. A captive cervid that escapes 
will continue to be considered a captive cervid as long as it bears an 
official eartag or other identification approved by the Administrator 
as unique and traceable with which to trace the animal back to its herd 
of origin.
* * * * *
    Designated tuberculosis epidemiologist (DTE). A State or Federal 
epidemiologist designated by the Administrator to make decisions 
concerning the use and interpretation of diagnostic tests for 
tuberculosis and the management of tuberculosis affected herds. A DTE 
has the responsibility to determine the scope of epidemiologic 
investigations, determine the status of animals and herds, assist in 
the development of individual herd plans, and coordinate disease 
surveillance and eradication programs within the geographic area of the 
DTE's responsibility.
* * * * *
    Herd. Except for livestock assembled at feedlots, any group of 
livestock maintained for at least 4 months on common ground for any 
purpose, or two or more groups of livestock under common ownership or 
supervision, geographically separated but that have an interchange or 
movement of livestock without regard to health status, as determined by 
the Administrator.
    Herd depopulation. Removal by slaughter or other means of 
destruction of all cattle, bison, and captive cervids in a herd, as 
well as any other exposed livestock in the herd, prior to restocking 
with new livestock.
* * * * *
    Net salvage. The amount received for animals destroyed because of 
tuberculosis, after deducting freight, trucking, yardage, commission, 
slaughtering charges, and similar costs to the owner.
* * * * *
    Permit. A permit for movement of livestock directly to slaughter, 
listing the disease status and identification of the animal, where 
consigned, cleaning and disinfection requirements, and proof of 
slaughter certification.
* * * * *
    Reactor cattle, bison, and captive cervids. Cattle, bison, and 
captive cervids are classified as reactors for tuberculosis in 
accordance with the ``Uniform Methods and Rules Bovine Tuberculosis 
Eradication,'' based on a positive response to an official tuberculin 
test.
    Registered livestock. Livestock for which individual records of 
ancestry are maintained, and for which individual registration 
certificates are issued and recorded by a recognized breed association 
whose purpose is the improvement of the breed.
* * * * *

[[Page 7591]]

    State animal health official. The individual employed by a State 
who is responsible for livestock and poultry disease control and 
eradication programs in that State.
    State representative. A veterinarian or other person who is 
employed in livestock sanitary work of a State or a political 
subdivision of a State and who is authorized by the State or political 
subdivision to perform the function involved under a memorandum of 
understanding with the Department.
* * * * *

    3. Section 50.2 is revised to read as follows:


Sec. 50.2  Cooperation with States.

    The Administrator cooperates with the proper State authorities in 
the eradication of tuberculosis and pays Federal indemnities for the 
destruction of cattle, bison, and captive cervids that are infected 
with, exposed to, or suspect for tuberculosis, as well as for other 
livestock that are exposed to tuberculosis.

    4. Section 50.3 is revised to read as follows:


Sec. 50.3  Payment to owners for animals destroyed.

    (a) The Administrator is authorized to agree on the part of the 
Department to pay indemnity to owners of the following animals:
    (1) Cattle, bison, or captive cervids destroyed because the animals 
are infected with or exposed to tuberculosis;
    (2) Cattle, bison, or captive cervids that have been classified as 
suspect for tuberculosis, except that the payment of indemnity for the 
destruction of suspect cattle, bison, and captive cervids will be 
withheld until the tuberculosis status of the suspect animal has been 
determined and, if the cattle, bison, or captive cervid is found to be 
infected with tuberculosis, until all cattle, bison, and captive 
cervids 12 months of age or older in the claimant's herd have been 
tested for tuberculosis under APHIS or State supervision; and
    (3) Other livestock destroyed because they are classified as 
exposed to tuberculosis by the designated tuberculosis epidemiologist 
by reason of an association with an affected herd of cattle, bison, or 
captive cervids.
    (b) In each case, the joint State-Federal indemnity paid, together 
with the amount for net salvage the owner receives, may not exceed the 
appraised value of the animal, as determined in accordance with 
Sec. 50.9. Additionally, the Department will in no case pay more than 
$3,000 for an animal that is destroyed.

    5. Section 50.4 is amended as follows:
    a. The section heading is revised.
    b. Paragraph (a) is amended by removing the word ``affected'' and 
adding the word ``infected'' in its place.
    c. A new paragraph (d) is added.


Sec. 50.4  Classification of cattle, bison, captive cervids, and other 
livestock as infected, exposed, or suspect.

* * * * *
    (d) The designated tuberculosis epidemiologist will determine 
whether livestock other than cattle, bison, or captive cervids are 
classified as exposed to tuberculosis by reason of association with an 
affected herd of cattle, bison, or captive cervids.

    6. Section 50.6 is revised to read as follows:


Sec. 50.6  Identification of animals to be destroyed because of 
tuberculosis.

    (a) Livestock to be destroyed because of tuberculosis must be 
identified as follows:
    (1) Livestock classified as reactors for tuberculosis must be 
identified within 15 days after being classified as reactors, except 
that the veterinarian in charge may extend the time limit for 
identification to 30 days when he or she receives a request for such an 
extension prior to the expiration date of the original 15-day period 
allowed and circumstances beyond the control of the owner warrant such 
an extension, and the Administrator may extend the time limit for 
identification beyond 30 days upon request in specific cases when 
circumstances beyond the control of the owner warrant such an 
extension.
    (2) Livestock other than reactors for tuberculosis that are to be 
destroyed because of tuberculosis must be identified prior to movement 
from the premises of origin to the place of destruction.
    (b) Reactor cattle, bison, and captive cervids. Reactor cattle, 
bison, and captive cervids must be identified by branding the letter 
``T,'' at least 5 by 5 centimeters (2 by 2 inches) in size, high on the 
left hip near the tailhead and by attaching to the left ear an approved 
metal eartag bearing a serial number and the inscription ``U.S. 
Reactor,'' or a similar State reactor tag. Reactor cattle, bison, and 
captive cervids may be moved interstate to slaughter without branding 
if they are permanently identified by the letters ``TB'' tattooed 
legibly in the left ear, they are sprayed on the left ear with yellow 
paint, and they are either accompanied by an APHIS or State 
representative or moved directly to slaughter in vehicles closed with 
official seals. The official seals must be applied and removed by an 
APHIS representative, State representative, accredited veterinarian, or 
an individual authorized for this purpose by an APHIS representative.
    (c) Exposed cattle, bison, and captive cervids. Exposed cattle, 
bison, and captive cervids must be identified by branding the letter 
``S,'' at least 5 by 5 centimeters (2 by 2 inches) in size, high on the 
left hip near the tailhead and by attaching to either ear an approved 
metal eartag bearing a serial number. Exposed cattle, bison, and 
captive cervids may be moved interstate to slaughter without branding 
if they are either accompanied by an APHIS or State representative or 
moved directly to slaughter in vehicles closed with official seals. The 
official seals must be applied and removed by an APHIS representative, 
State representative, accredited veterinarian, or an individual 
authorized for this purpose by an APHIS representative.
    (d) Other exposed livestock. Livestock other than cattle, bison, or 
captive cervids that are destroyed under the provisions of Sec. 50.3 
must be identified by tagging with a serially numbered metal eartag 
attached to either ear. All such animals to be destroyed must be 
transported to the place of destruction in vehicles closed with seals 
provided by APHIS or shall be accompanied to the place of destruction 
by an APHIS or State representative: Provided, however, that animals 
destroyed and disposed of under the direct supervision of an APHIS or 
State representative on the premises where they were exposed do not 
require individual identification.


Sec. 50.7  [Amended]

    7. In Sec. 50.7, paragraphs (a) and (b) are amended by removing the 
words ``Cattle, bison, captive cervids, or swine'' and adding in their 
place the word ``Livestock''


Sec. 50.8  [Amended]

    8. Section 50.8, including the section heading, is amended by 
removing the word ``affected'' each time it appears, and adding in its 
place the word ``infected''; and by removing the words ``cattle, bison, 
and captive cervids'' each time they appear, and adding in their place 
the word ``livestock''.

    9. Section 50.9 is revised to read as follows:


Sec. 50.9  Appraisals.

    (a) Livestock to be destroyed because of tuberculosis under 
Sec. 50.3 must be appraised within 15 days after being classified as 
infected with tuberculosis, except that the veterinarian in charge may 
extend the time limit for appraisal to 30 days when he or she receives 
a

[[Page 7592]]

request for such an extension before the end of the expiration date of 
the original 15-day period allowed and circumstances beyond the control 
of the owner warrant such an extension, and the Administrator may 
extend the time limit for appraisal beyond 30 days upon request in 
specific cases when circumstances beyond the control of the owner 
warrant such an extension.
    (b) Animals for which indemnity is to be paid under this part must 
be appraised at their fair market value by an appraiser selected by 
APHIS. APHIS may decline to accept any appraisal that appears to it to 
be unreasonable or out of proportion to the value of like animals of a 
like quality. Should the appraisal made by the appraiser selected by 
APHIS be deemed inadequate by the owner of the animals, the owner will 
have 15 days from the receipt of the appraisal to submit to the 
Administrator a request for a review of the appraisal, along with the 
reasons why the animals should be appraised at a higher value. The 
decision by the Administrator regarding the value of the animals is 
final.
    (c) When livestock to be destroyed because of tuberculosis are 
appraised, due consideration will be given to their breeding value as 
well as to their dairy or meat value. Livestock presented for payment 
as registered must be accompanied by their registration papers. If the 
registration papers are temporarily not available, or if the livestock 
are less than 3 years old and unregistered, the veterinarian in charge 
may grant a reasonable time for the presentation of their registration 
papers.


Sec. 50.10  [Amended]

    10. Section 50.10 is amended by removing the words ``cattle, bison, 
captive cervids, and swine'' and adding in their place the word 
``livestock''.


Sec. 50.11  [Amended]

    11. Section 50.11 is amended by removing the words ``cattle, bison, 
captive cervids, or swine'' both times they appear, and adding in their 
place the word ``livestock''; and by removing the words ``cattle, 
bison, captive cervids, and swine'' and adding in their place the word 
``livestock''.


Sec. 50.12  [Amended]

    12. Section 50.12 is amended by removing the words ``cattle, bison, 
captive cervids, or swine'' both times they appear, and adding in their 
place the word ``livestock''.


Sec. 50.13  [Amended]

    13. Section 50.13 is amended by removing the word ``affected'' and 
adding in its place the word ``infected''.

    14. Section 50.14 is revised to read as follows:


Sec. 50.14  Claims not allowed.

    Claims for compensation for livestock destroyed because of 
tuberculosis will not be allowed in any of the following cases:
    (a) The claimant has failed to comply with any of the requirements 
of this part:
    (b) All cattle, bison, and captive cervids 12 months of age or over 
in the claimant's herd have not been tested for tuberculosis under 
APHIS or State supervision: Provided, however, that cattle, bison, and 
captive cervids destroyed because of tuberculosis are exempt from this 
testing requirement if the cattle, bison, and captive cervids are 
subjected to a postmortem examination for tuberculosis by a Federal or 
State veterinarian.
    (c) There is substantial evidence that the owner of the animals or 
the agent of the owner has in any way been responsible for any attempt 
to obtain indemnity funds for the animals unlawfully or improperly.
    (d) At the time the cattle, bison, or captive cervids in the 
claimant's herd were tested for tuberculosis, the cattle, bison, 
captive cervids, or other livestock in the herd belonged to or were on 
the premises of any person to whom they had been sold, shipped, or 
delivered for slaughter unless or until all of the cattle, bison, 
captive cervids, and other livestock remaining on the premises or in 
the herd from which the tested cattle, bison, or captive cervids 
originated are tested or otherwise examined for tuberculosis in a 
manner satisfactory to the Administrator or his or her designated 
representative.
    (e) If the cattle, bison, or captive cervids were added to a herd 
while the herd was quarantined for tuberculosis, unless an approved 
herd plan was in effect at the time the claim was filed. As part of the 
approved herd plan, cattle, bison, or captive cervids added to a herd 
quarantined for tuberculosis must:
    (1) Be from an accredited herd, as defined in Sec. 77.1 of this 
chapter; or (2)(i) Be from a herd that tested negative to an official 
tuberculin test, as defined in Sec. 77.1 of this chapter, during the 60 
days before the cattle, bison, or captive cervids were added to the 
claimant's herd; and
    (ii) Have been found negative to an official tuberculin test, as 
defined in Sec. 77.1 of this chapter, during the 60 days before the 
cattle, bison, or captive cervids were added to the claimant's herd.
    (f) For exposed cattle, bison, or captive cervids destroyed during 
herd depopulation, if a designated tuberculosis epidemiologist has 
determined that other livestock in the herd have been exposed to 
tuberculosis by reason of association with tuberculous livestock, and 
those other livestock determined to have been exposed to tuberculosis 
have not been destroyed.
    (g) For livestock other than cattle, bison, and captive cervids 
that are destroyed because of association with herds of affected 
cattle, bison, or captive cervids:
    (1) If the livestock did not reside among the herd for a period of 
4 months or more;
    (2) If the livestock have not received a postmortem examination for 
tuberculosis; or
    (3) If the livestock were added to a herd that was under quarantine 
for tuberculosis at the time the livestock were added to the herd, 
unless an approved herd plan was in effect at that time.


Secs. 50.15 and 50.16  [Removed and Reserved]

    15. Sections 50.15 and 50.16 are removed and reserved.

PART 77--TUBERCULOSIS

    16. The authority citation for part 77 continues to read as 
follows:

    Authority: 21 U.S.C. 111, 114, 114a, 115-117, 120, 121, 134b, 
and 134f; 7 CFR 2.22, 2.80, and 371.4.


    17. In Sec. 77.2, the definition of herd is revised to read as 
follows:


Sec. 77.2  Definitions.

* * * * *
    Herd Except for livestock assembled at feedlots, any group of 
livestock maintained for at least 4 months on common ground for any 
purpose, or two or more groups of livestock under common ownership or 
supervision, geographically separated but that have an interchange or 
movement of livestock without regard to health status, as determined by 
the Administrator.
* * * * *

    Done in Washington, DC, this 14th day of February 2002.
Bill Hawks,
Under Secretary for Marketing and Regulatory Programs.
[FR Doc. 02-4059 Filed 2-19-02; 8:45 am]
BILLING CODE 3410-34-U