This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

6299 

Vol. 75, No. 26 

Tuesday, February 9, 2010 

1However, GIPSA may suspend a registration for 

cause. 

DEPARTMENT OF AGRICULTURE 

Grain Inspection, Packers and 

Stockyards Administration 

9 CFR Part 201 

RIN 0580–AB03 

Registration, Five-Year Terms 

AGENCY: Grain Inspection, Packers and 

Stockyards Administration, USDA 

ACTION: Final rule. 

SUMMARY: The Department of 

Agriculture’s (USDA) Grain Inspection, 

Packers and Stockyards Administration 

(GIPSA) is amending the regulations 

under the Packers and Stockyards Act, 

1921, as amended and supplemented 

(P&S Act), regarding the registration of 

market agencies and dealers. Under the 

current regulations, there is no 

expiration date or renewal process for 

the registration of a market agency or 

dealer under the P&S Act. Under this 

final rule, a market agency or dealer’s 

registration will not expire, provided 

that the market agency or dealer timely 

files its annual reports with GIPSA. This 

action will further assist USDA in 

regulating the business operations of 

market agencies and dealers through the 

effective enforcement of the P&S Act. 

DATES: Effective Date: March 11, 2010. 

FOR FURTHER INFORMATION CONTACT: 

S. Brett Offutt, Director, Policy and 

Litigation Division, P&SP, GIPSA, 1400 

Independence Ave., SW., Washington, 

DC 20250, (202) 720–7363, 

s.brett.offutt@usda.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Grain Inspection, Packers and 

Stockyards Administration (GIPSA) 

administers and enforces the P&S Act. 

Under authority delegated to GIPSA by 

the Secretary of Agriculture in section 

407(a) of the P&S Act (7 U.S.C. 228), we 

are authorized to write regulations 

necessary to carry out the provisions of 

the P&S Act. 

Section 303 of the P&S Act (7 U.S.C. 

203) requires that market agencies and 

dealers register with USDA. Section 

201.10 of the regulations (9 CFR 201.10) 

currently requires that any person 

operating or desiring to operate as a 

market agency or dealer must apply for 

registration (Form P&SP 1000). When 

applying for a registration, the applicant 

must certify that its financial condition 

meets the P&S Act’s requirements, list 

its type of business organization, state 

whether it will operate on a calendar 

year or fiscal year basis, identify the 

character of its business, and name the 

species of livestock it will handle. If 

registration is granted, a market agency 

or dealer receives an acceptance letter 

from GIPSA, which includes the 

registration number and the 

registration’s effective date. 

Under current § 201.10(b) of the P&S 

Act regulations (9 CFR 210.10(b)), 

GIPSA’s Administrator may deny a 

registration if the Administrator believes 

that the applicant is unfit to engage in 

the business of a market agency and/or 

dealer. If a registration is denied, 

however, the applicant may request a 

formal hearing before a USDA 

administrative law judge who decides if 

the Administrator’s decision should be 

overturned. Once issued by GIPSA, 

however, the registration does not 

expire.1 After a registration is granted, 

the registration becomes inactive if the 

registrant notifies GIPSA that it has 

ceased business operations. Otherwise, 

a registration is effective indefinitely. 

We have found that many market 

agencies and dealers registered under 

the P&S Act do not provide GIPSA with 

updates of information about their 

business operations. Without a 

registrant’s current and accurate 

business information, we found that 

GIPSA could not adequately investigate 

complaints received from livestock 

sellers about a registrant’s business 

practices, and therefore could not 

effectively enforce the P&S Act. As a 

result, GIPSA issued a notice of 

proposed rulemaking in the Federal 

Register on December 15, 2008 (73 FR 

242), seeking comment on amending the 

regulations under the P&S Act to 

establish a 5-year time period for 

registrations, as well as renewal 

procedures. We also proposed a 

requirement that regulated entities file 

applications for registration and renewal 

in the geographic area where their 

primary place of business is located. 

The comment period ended on February 

17, 2009. 

Discussion of Comments and Final 

Action 

GIPSA received one comment from a 

trade organization representing over 800 

livestock auctions, dealers and related 

business members of the regulated 

industry. After reviewing the issues 

raised in this comment, we have 

determined that we will modify the 

proposed amendments in the final rule 

as noted below: 

The commenter asserted that the 

annual reports required under section 

201.97 of the P&S Act regulations (9 

CFR 201.97) provide sufficient 

information on registrants’ business 

operations. The commenter suggested 

that if there is additional information 

GIPSA needs, GIPSA should redesign 

the annual report to gather the necessary 

information. Upon reconsideration, 

GIPSA agrees with the commenter and 

will not impose any additional burden 

on entities by requiring a 5-year 

registration period. Instead, registrations 

will continue in effect indefinitely and 

only expire if a registered entity fails to 

timely file the annual report required 

under section 201.97 of the P&S Act 

regulations (9 CFR 201.97). GIPSA will 

therefore issue a final rule that does not 

establish a 5-year term for registrations. 

The commenter also concluded that 

GIPSA’s data management system is 

outdated and badly managed, after 

finding inconsistencies between its 

membership records and those of 

GIPSA. The commenter suggested that 

GIPSA improve its data management 

system as an alternative to requiring a 

5-year registration term. Independent of 

this comment, GIPSA has already 

implemented an improved data 

management system that allows for 

better tracking and uniform oversight of 

regulated entities. This system 

consolidates information about 

registrants into one database, and 

includes registration information, 

annual report information, and records 

regarding compliance and violations. In 

addition, GIPSA created a new work 

unit whose sole function is to 


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6300 Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Rules and Regulations 

administer the annual reporting 

requirements under the P&S Act and 

regulations. 

The commenter further suggested that 

rather than require registrants to renew 

their registrations every 5 years, GIPSA 

could require that registrants provide 

notification when they plan to cease 

operating. GIPSA’s objective in 

proposing to amend the registration 

requirements is to better account for 

those entities actively operating as 

dealers or market agencies. Relying on 

registrants to notify GIPSA when they 

cease operating would not provide 

complete and accurate information. 

GIPSA now believes that it would be 

able to maintain accurate records of 

entities currently operating subject to 

the P&S Act, without imposing new and 

additional burdens on registrants, 

provided that they file their annual 

reports timely. 

The commenter also stated that the 

new requirements would not improve 

enforcement of the P&S Act; they would 

only interfere in the business of those 

who are already in compliance with the 

P&S Act. We disagree with the 

commenter’s assertions that having 

registered entities provide information 

regarding their business is a new burden 

on registered entities. Persons operating 

subject to the P&S Act are required to 

report certain information about their 

current business operations. This issue, 

however, is now moot since we are not 

implementing the proposed requirement 

to renew registrations every 5 years. 

The commenter also requested that a 

timeframe be established for GIPSA to 

process applications to ensure that 

registrations do not expire while waiting 

for agency action. This issue, however, 

is also now moot since we are not 

implementing the proposed requirement 

to renew registrations every 5 years. 

Again, registrations would continue in 

effect indefinitely, and only expire if a 

registered entity fails to timely file the 

annual report required under section 

201.97 of the P&S Act regulations (9 

CFR 201.97). 

Finally, the commenter stated that if 

a registration is denied, GIPSA should 

fully describe the reasons for the denial. 

By not implementing the proposed 

requirement to renew registrations every 

5 years, GIPSA will not be routinely 

considering whether to approve or deny 

registration renewal applications. 

Registrants, whose registrations expire 

because the required annual report is 

not filed within the time period 

allowed, will be required to file a new 

application for registration in order to 

continue in business. In cases of new 

registrations where the Administrator 

has reason to believe an applicant is 

unfit to conduct business under the P&S 

Act, the applicant will have an 

opportunity for a hearing, as the 

regulations currently allow, in which 

the applicant can show cause why its 

application should not be denied. 

Based on the comment discussed 

above, we are therefore modifying 

proposed 201.10(e) (9 CFR 201.10(e)) in 

this final rule to provide that 

registrations continue indefinitely 

provided that the annual report is 

timely filed as required under section 

201.97 of the P&S Act regulations (9 

CFR 201.97). Failure to file an annual 

report by the date required in section 

201.97 of the P&S Act regulations (9 

CFR 201.97) will result in the issuance 

of a default notice. Thirty days after 

receipt of the default notice, a 

registrant’s registration will expire if 

GIPSA does not receive the required 

annual report. If the Administrator has 

reason to believe that an applicant is 

unfit to engage in the activity for which 

the applicant seeks registration, a 

proceeding such as described in existing 

paragraph 201.10(b) (9 CFR 201.10(b)) 

shall be promptly initiated. This 

includes cases of new applications for 

registration as well as those filed by 

applicants whose registrations expired 

due to untimely filing of an annual 

report. 

The one comment received did not 

address the other amendments to 

§ 201.10 contained in the proposed rule. 

Therefore, the proposed amendments to 

§ 201.10(a)–(d), and new paragraph (f) 

are finalized without change. 

Executive Order 12866 and Regulatory 

Flexibility Act 

The Office of Management and Budget 

(OMB) has designated this final rule as 

not significant for the purposes of 

Executive Order 12866. 

We have determined that this final 

rule will not have a significant 

economic impact on a substantial 

number of small entities as defined in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601 et seq.). Most of the entities 

to which this rule applies do meet the 

applicable size standard for small 

entities in the Small Business 

Administration (SBA) regulations (13 

CFR 121.201). For the North American 

Industry Classification System, codes 

that apply to animal production 

(subsector 112), the SBA size standard 

is $750,000 in average annual receipts. 

Based on the information that we have 

on bonded registrants, about 75 percent 

of the approximately 5,400 entities to 

which this final rule applies have 

annual receipts of less than $750,000. 

While the proposed rule would have 

imposed a burden of 30 minutes of 

effort to complete the application to 

renew registration every 5 years, GIPSA 

has determined that this final rule will 

impose no new burden since registrants 

must already submit up-to-date business 

information on their annual reports, 

which is covered under the currently 

approved OMB information collection 

0580–0015. Only if a new application is 

filed after a registration expires due to 

untimely filing of an annual report will 

the estimated 30 minutes of effort to 

complete a registration application be 

necessary. Therefore, we have 

determined that this final rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Executive Order 12988 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. These actions are not 

intended to have retroactive effect. This 

final rule will not pre-empt state or local 

laws, regulations, or policies, unless 

they present an irreconcilable conflict 

with this rule. There are no 

administrative procedures that must be 

exhausted prior to any judicial 

challenge to the provisions of this final 

rule. 

Paperwork Reduction Act 

In accordance with Office of 

Management and Budget regulations (5 

CFR part 1320) that implement the 

Paperwork Reduction Act of 1995 (44 

U.S.C. Chapter 35), the information 

collection and recordkeeping 

requirements that are covered by this 

final rule were approved under OMB 

number 0580–0015 on February 21, 

2008, and expire on February 28, 2011. 

E-Government Act Compliance 

GIPSA is committed to complying 

with the E-Government Act, to promote 

the use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

List of Subjects in 9 CFR Part 201 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, we are amending 9 CFR part 

201.10 as follows: 

■ 1. The authority citation for Part 201 

continues to read as follows: 

Authority: 7 U.S.C. 181–229c. 

■ 2. Section 201.10 is amended to revise 

paragraphs (a) through (d) and to add 

paragraphs (e) and (f) to read as follows: 


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Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Rules and Regulations 6301 

§ 201.10 Requirements and Procedures. 

(a) Every person operating or desiring 

to operate as a market agency or dealer 

as defined in section 301 of the Act (7 

U.S.C. 201) must apply for registration. 

To apply, such persons must file a 

properly executed application for 

registration on a form furnished by the 

Agency. Each applicant must file an 

application for registration with the 

regional office for the region where the 

applicant has his or her primary place 

of business, and file and maintain a 

bond as required in §§ 201.27 through 

201.34 (9 CFR 201.27 through 201.34). 

(b) If, upon review of an application, 

the Administrator has reason to believe 

the applicant is unfit to engage in the 

activity for which application has been 

made, a proceeding shall be instituted 

promptly affording the applicant the 

opportunity for a full hearing, in 

accordance with the Department’s Rule 

of Practice Governing Formal 

Adjudicatory Proceedings (7 CFR 

Subpart H), to show cause why the 

application for registration should not 

be denied. If after the hearing the 

application is denied, as soon as the 

issue(s) that formed the basis of the 

denial have been remedied, the 

applicant may file a new application for 

registration. 

(c) Any person regularly employed on 

salary, or other comparable method of 

compensation, by a packer to buy 

livestock for such packer is subject to 

the regulation requirements of this 

section. Such person must be registered 

as a dealer to purchase livestock for 

slaughter on behalf of the packer. 

(d) Every person clearing or desiring 

to clear the buying operations of other 

registrants must apply for registration as 

a market agency providing clearing 

services by filing a properly executed 

application on a form furnished by the 

Agency, and file and maintain a bond as 

required in §§ 201.27 through 201.34. 

(e) If an application for registration is 

granted, a market agency or dealer 

receives an acceptance letter from the 

Agency that issues the registration 

number and the effective date of the 

registration. Each registration issued in 

accordance with this section will not 

expire, provided that the registrant 

timely files its annual report with the 

Agency as required in section 201.97. 

Failure of a registrant to file an annual 

report by the date required in section 

201.97 will result in the issuance of a 

default notice. Thirty days after receipt 

of the default notice, the registration 

will expire if the Agency does not 

receive an annual report from the 

registrant. A registrant who fails to 

renew its registration in a timely 

manner, and continues to operate, will 

be engaged in business subject to the 

Act without a valid registration in 

violation of section 303 of the Act (7 

U.S.C. 203). 

(f) Registrations that expire during a 

period of suspension imposed as a 

result of an order or injunction may be 

renewed, but the renewal will not be 

effective until the specified suspension 

period terminates. 

J. Dudley Butler, 

Administrator, Grain Inspection, Packers and 

Stockyards Administration. 

[FR Doc. 2010–2845 Filed 2–8–10; 8:45 am] 

BILLING CODE 3410–KD–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 740 

[Docket No. 0812241645–91422–01] 

RIN 0694–AE52 

Revisions to License Exception GOV 

To Provide Authorization for Exports 

and Reexports of Commodities for Use 

on the International Space Station 

(ISS) 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This rule amends the Export 

Administration Regulations (EAR or 

Regulations) by revising an existing 

license exception to provide a new 

authorization for exports and reexports 

of certain commodities subject to the 

EAR when those commodities are 

intended for use on the International 

Space Station (ISS). This rule 

establishes specific terms and 

conditions with which exports or 

reexports must comply in order to take 

advantage of the new authorization. For 

example, an export or reexport 

undertaken in accordance with the new 

authorization must be consigned to an 

eligible recipient involved in the launch 

of the commodity to the ISS. This new 

authorization is limited to commodities 

that are subject to the EAR that are 

needed at a launch destination outside 

the United States on short notice. This 

rule defines ‘short notice’ as a 

requirement to have a commodity 

manifested and at the scheduled launch 

site for hatch-closure (final stowage) no 

more than forty-five (45) days from the 

time the exporter or reexporter received 

complete documentation. ‘Complete 

documentation’ means the exporter or 

reexporter received the technical 

description of the commodity and 

purpose for use of the commodity on the 

ISS. This rule defines ‘hatch-closure 

(final stowage)’ as the final date 

specified by a launch provider by which 

items must be at a specified location in 

a launch country in order to be included 

on a mission to the ISS. BIS has 

determined there is a low risk of 

diversion and a high benefit for 

authorizing these types of transactions 

to proceed under a license exception. 

DATES: Effective Date: This rule is 

effective February 9, 2010. Although 

there is no formal comment period, 

public comments on this regulation are 

welcome on a continuing basis. 

ADDRESSES: You may submit comments, 

identified by RIN 0694–AE52, by any of 

the following methods: 

E-mail: publiccomments@bis.doc.gov. 

Include ‘‘RIN 0694–AE52’’ in the subject 

line of the message. 

Fax: (202) 482–3355. Please alert the 

Regulatory Policy Division, by calling 

(202) 482–2440, if you are faxing 

comments. 

Mail or Hand Delivery/Courier: 

Timothy Mooney, U.S. Department of 

Commerce, Bureau of Industry and 

Security, Regulatory Policy Division, 

14th St. & Pennsylvania Avenue, NW., 

Room 2705, Washington, DC 20230, 

Attn: RIN 0694–AE52. 

Send comments regarding the 

collection of information associated 

with this rule, including suggestions for 

reducing the burden, to Jasmeet K. 

Seehra, Office of Management and 

Budget (OMB), by e-mail to 

Jasmeet_K._Seehra@omb.eop.gov, or by 

fax to (202) 395–7285; and to the 

Regulatory Policy Division, Bureau of 

Industry and Security, Department of 

Commerce, 14th St. & Pennsylvania 

Avenue, NW., Room 2705, Washington, 

DC 20230. Comments on this collection 

of information should be submitted 

separately from comments on the final 

rule (i.e., RIN 0694–AE52)—all 

comments on the latter should be 

submitted by one of the three methods 

outlined above. 

FOR FURTHER INFORMATION CONTACT: 

Gene Christiansen, Senior Engineer/ 

Licensing Officer, Office of National 

Security and Technology Transfer 

Controls, telephone: (202) 482–2984. 

SUPPLEMENTARY INFORMATION: 

Background 

This rule adds a new paragraph (d) to 

License Exception GOV in 15 CFR 

740.11 (Governments, international 

organizations, and international 

inspections under the Chemical 

Weapons Convention (GOV)) to provide 

authorization for the export or reexport 

of certain commodities subject to the 


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