Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 /Rules and Regulations 34259

II. Analysis of Amendments

This final rule amends two provisions

in the interim rule which are located at

5 CFR 3501.101(b)(3) and 43 CFR

20.201(a), respectively, dealing with the

designation of the Department’s

Designated Agency Ethics Official.

These two provisions in the interim rule

state that ‘‘Designated Agency Ethics

Official’’ (DAEO) means the Assistant

Secretary—Policy, Management and

Budget.

Because future administrations and

reorganizations may change the position

title of the Assistant Secretary—Policy,

Management and Budget, or result in

the DAEO responsibilities being

assigned to an employee in a different

position, the Department has

determined that it is not practical or

cost efficient to publish in this rule the

title of the officer who has been

assigned the responsibilities of the

DAEO. As a result, the final rule in 5

CFR 3501.101(b)(3) has been amended

to delete the provision specifying the

title of the employee who serves as the

DAEO. As the procedure for designation

of the DAEO is already referenced in the

definition section of the Standards at 5

CFR 2635.102(f), no substitute for the

deleted supplemental provision is

necessary. In the Department’s separate

residual regulation at 43 CFR 20.201(a),

the final rule has been amended to read

that the DAEO means the official

designated under 5 CFR 2638.201 to

coordinate and manage the

Department’s ethics program. The

authority citation to the Department’s

residual regulation is also being revised

by adding a reference to 5 U.S.C. 7301

and by revising the citation to 43 U.S.C.

31 to 43 U.S.C. 31(a). Other than these

amendments to the Department’s

residual regulation, the final rule adopts

the revisions to the Department’s

residual regulation made in the interim

rule without change.

III. Correction of Typographical Error

The Department is also correcting in

this final rule a typographical error that

appeared in the interim rule which was

published in the Federal Register on

October 16, 1997 (62 FR 53720). The

citation mentioned in 5 CFR

3501.105(b)(4)(ii)(E) is incorrect and is

being amended to read ‘‘(b)(4)(ii) (A)

through (D) of this section.’’

IV. Matters of Regulatory Procedure

Executive Order 12886

In promulgating this final rule, the

Department has adhered to the

regulatory philosophy and the

applicable principles of regulation set

forth in section 1 of Executive Order

12866, Regulatory Planning and Review.

This regulation has not been reviewed

by the Office of Management and

Budget under that Executive Order since

it deals with agency organization,

management, and personnel matters and

is not, in any event, deemed

‘‘significant’’ thereunder.

Administrative Procedure Act

The Department has found good

cause, pursuant to 5 U.S.C. 553(d)(3), for

waiving the 30-day delay in

effectiveness as to this final rule. The

reason for this determination is that it

is important that these minor technical

amendments effective as soon as

possible.

Regulatory Flexibility Act

The Department has determined that

these regulations will not have a

significant economic impact on a

substantial number of small entities

within the meaning of the Regulatory

Flexibility Act (5 U.S.C. 605).

Paperwork Reduction Act

The Department has determined that

these regulations do not contain any

information collection requirements that

require the approval of the Office of

Management and Budget pursuant to the

Paperwork Reduction Act (44 U.S.C.

chapter 35).

List of Subjects in 5 CFR Part 3501 and

43 CFR Part 20

Conflict of interests, Government

employees.

Dated: June 11, 1998.

John D. Leshy,

Solicitor, Department of the Interior.

Approved: June 17, 1998.

Stephen D. Potts,

Director, Office of Government Ethics.

Accordingly, for the reasons set forth

in the preamble, the Department of the

Interior, with the concurrence of the

Office of Government Ethics, is adopting

the interim rule adding 5 CFR chapter

XXV, consisting of part 3501, and

amending 43 CFR part 20 which was

published at 62 FR 53713–53726 on

October 16, 1997, as a final rule with the

following changes:

CHAPTER XXV—DEPARTMENT OF

THE INTERIOR

PART 3501—SUPPLEMENTAL

STANDARDS OF ETHICAL CONDUCT

FOR EMPLOYEES OF THE

DEPARTMENT OF THE INTERIOR

1. The authority citation for part 3501

continues to read as follows:

Authority: 5 U.S.C. 301, 7301; 5 U.S.C.

App. (Ethics in Government Act of 1978); 30

U.S.C. 1211; 43 U.S.C. 11, 31(a); E.O. 12674,

3 CFR, 1989 Comp., p. 215, as modified by

E.O. 12731, 3 CFR, 1990 Comp., p. 306; 5

CFR 2635.105, 2635.203(a), 2635.403(a),

2635.803.

§ 3501.101 [Amended]

2. Section 3501.101 is amended by

removing paragraph (b)(3) and

redesignating paragraphs (b)(4) and

(b)(5) as paragraphs (b)(3) and (b)(4),

respectively.

§ 3501.105 [Amended]

3. Section 3501.105 is amended by

removing the cross-reference ‘‘(c)(4)(ii)

(A) through (D)’’ in paragraph

(b)(4)(ii)(E) and adding in its place the

cross-reference ‘‘(b)(4)(ii)(A) through

(D)’’.

TITLE 43—[AMENDED]

SUBTITLE A—[AMENDED]

PART 20—EMPLOYEE

RESPONSIBILITIES AND CONDUCT

4. The authority citation for part 20 is

revised to read as follows:

Authority: 5 U.S.C. 301, 7301; 5 U.S.C.

App. (Reorganization Plan No. 3 of 1950); 30

U.S.C. 1211; 43 U.S.C. 11, 31(a); 5 CFR

2634.903, 2634.905.

5. Section 20.201 is amended by

revising paragraph (a) to read as follows:

§ 20.201 Ethics officials.

(a) Designated Agency Ethics Official

refers to the official designated under 5

CFR 2638.201 to coordinate and manage

the Department’s ethics program.

* * * * *

[FR Doc. 98–16688 Filed 6–23–98; 8:45 am]

BILLING CODE 4310–10–M

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 50

[Docket No. 98–033–1]

Tuberculosis in Cattle, Bison, and

Captive Cervids; Indemnity for

Suspects

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the

regulations concerning animals

destroyed because of tuberculosis to

provide for the payment of Federal

indemnity to owners of cattle, bison,

and captive cervids that have been
34260 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 /Rules and Regulations

classified as suspects for tuberculosis

and have been destroyed, when it has

been determined by the Animal and

Plant Health Inspection Service that the

destruction of the suspect animals will

contribute to the tuberculosis

eradication program in U.S. livestock.

We are also amending the regulations to

allow the U.S. Department of

Agriculture to pay herd owners some of

their expenses for transporting the

suspect cattle, bison, and captive

cervids to slaughter or to the point of

disposal, and for disposing of the

animals. Prior to this interim rule,

owners of cattle, bison, and captive

cervids could only receive Federal

indemnity for affected and exposed

animals destroyed because of

tuberculosis, and animals in an affected

herd destroyed as part of a herd

depopulation. Indemnity for suspects

will provide incentive for owners to

promptly destroy suspect animals,

thereby hastening the diagnosis of

tuberculosis in a herd. This interim rule

is necessary to ensure continued

progress toward eradicating tuberculosis

in U.S. livestock.

DATES: Interim rule effective June 17,

1998. Consideration will be given only

to comments received on or before

August 24, 1998.

ADDRESSES: Please send an original and

three copies of your comments to

Docket No. 98–033–1, Regulatory

Analysis and Development, PPD,

APHIS, suite 3C03, 4700 River Road

Unit 118, Riverdale, MD 20737–1238.

Please state that your comments refer to

Docket No. 98–033–1. Comments

received may be inspected at USDA,

room 1141, South Building, 14th Street

and Independence Avenue SW.,

Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday,

except holidays. Persons wishing to

inspect comments are requested to call

ahead on (202) 690–2817 to facilitate

entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Dr.

James P. Davis, Senior Staff

Veterinarian, National Animal Health

Programs, VS, APHIS, 4700 River Road

Unit 36, Riverdale, MD 20737–1231,

(301) 734–5970; or e-mail:

jdavis@aphis.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

Bovine tuberculosis (referred to below

as tuberculosis) is a serious

communicable disease of cattle, bison,

and other species, including humans,

caused by Mycobacterium bovis.

Tuberculosis causes weight loss, general

debilitation, and sometimes death. The

regulations at 9 CFR part 50, ‘‘Animals

Destroyed Because of Tuberculosis’’ (the

regulations), administered by the

Animal and Plant Health Inspection

Service (APHIS) of the U.S. Department

of Agriculture (the Department), provide

for payment of Federal indemnity to

owners of certain cattle, bison, captive

cervids, and swine destroyed because of

tuberculosis.

As part of the program to control and

eradicate tuberculosis in cattle, bison,

and captive cervids, the regulations

have provided for the payment of

indemnity for the destruction of cattle,

bison, and captive cervids that are

affected with or exposed to tuberculosis.

Because the continued presence of

tuberculosis in a herd seriously

threatens the health of other animals in

that herd and possibly other herds, the

prompt destruction of tuberculosisaffected and -exposed animals is critical

if tuberculosis eradication efforts in the

United States are to succeed. Indemnity

is intended to provide owners with an

incentive for promptly destroying such

cattle, bison, and captive cervids.

As set forth in § 50.4 of the

regulations, cattle, bison, and captive

cervids are classified as affected with

tuberculosis on the basis of an

intradermal tuberculin test applied by a

Federal, State, or an accredited

veterinarian, or by another diagnostic

procedure approved in advance by the

Administrator of APHIS. Cattle, bison,

and captive cervids are classified as

exposed to tuberculosis when such

cattle, bison, and captive cervids (1) are

part of a known affected herd, or (2) are

found to have moved from an affected

herd before the time infection was

disclosed in the herd and after the time

the herd had apparently become

affected, or (3) are found to have been

exposed by virtue of nursing from a

reactor dam.

Cattle, bison, and captive cervids that

respond to an intradermal tuberculin

test are not always classified as affected

with tuberculosis. Cattle, bison, and

captive cervids are classified as affected

with tuberculosis based on an

intradermal test when they are classified

as reactors to that test. The Uniform

Methods and Rules—Bovine

Tuberculosis Eradication (UMR)

(incorporated into the regulations by

reference in 9 CFR part 77) contains the

requirements for classifying cattle and

bison. In accordance with the UMR, in

herds of unknown tuberculosis status,

an initial response to an intradermal

tuberculin test (specifically, the caudal

fold test) causes an animal to be

classified as a suspect. When an animal

is classified as a suspect, the herd is

quarantined and a second intradermal

tuberculin test (the comparative cervical

test) is scheduled. The animal’s

response to the comparative cervical test

is plotted on a scattergram. If the

animal’s response indicates a suspect

classification, another retest is

scheduled. The testing schedule for

captive cervids is similar to that for

cattle and bison. Consequently, cattle,

bison, and captive cervids in herds of

unknown tuberculosis status are

classified as reactors only after at least

two, and in many cases three, responses

to an intradermal tuberculin test.

Under this testing schedule, an

animal may remain a suspect for

between 12 and 120 days until the

animal tests negative for tuberculosis or

a reactor classification is achieved. If a

suspect is infected with tuberculosis,

this period provides opportunity for the

spread of the disease to healthy animals

in the herd. If the suspect were

destroyed immediately instead of being

retested, APHIS could perform a

necropsy on the suspect to determine if

the animal is infected. This would allow

us to diagnose tuberculosis faster and to

take other appropriate actions to ensure

that the disease is not spread.

Immediate slaughter and necropsy of

suspects would be especially valuable

in herds that we believe are at an

increased risk for tuberculosis infection,

such as herds in an area where

tuberculosis infection is known to exist

in wild animal populations or herds

adjacent to an affected herd. The

program to eradicate tuberculosis in

U.S. cattle, bison, and captive cervids is

in its final stages, and we believe total

eradication is possible by the year 2002.

The most critical element of the

program at this point is surveillance of

herds that are at an increased risk for

tuberculosis infection. Rapid diagnosis

of tuberculosis in such herds, made

possible by the immediate slaughter of

suspects, will be a critical factor in

allowing us to achieve our target

eradication date of 2002.

Many herd owners elect to keep

suspect animals in their herd until

testing reveals them to be free of

tuberculosis or they are classified as

reactors. This is because the regulations

have not provided for the payment of

indemnity for the destruction of suspect

cattle, bison, and captive cervids unless

they are part of a known affected herd.

We believe that offering indemnity for

the destruction of suspects will

encourage herd owners to promptly

destroy suspect animals. For this reason,

we believe it is appropriate at this time

to provide for the payment of Federal

indemnity to owners of cattle, bison,

and captive cervids that have been

classified as suspects for tuberculosis

and have been destroyed, when it has
Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 /Rules and Regulations 34261

been determined by APHIS that the

destruction of the suspect animals will

contribute to the tuberculosis

eradication program in U.S. livestock.

We believe that the destruction of

suspects would contribute to the

tuberculosis eradication program if the

suspects are in a herd that we consider

to be at an increased risk for

tuberculosis infection, such as herds in

an area where tuberculosis infection is

known to exist in wild animal

populations or herds adjacent to an

affected herd.

We will not offer the indemnity for

the destruction of suspect cattle, bison,

or captive cervids in all instances where

they are found because the majority of

suspect animals are not infected with

tuberculosis. Typically, in herds of

unknown tuberculosis status, we expect

that between two and three percent of

cattle and bison tested with the caudal

fold intradermal tuberculin test will

respond to that test, and subsequently

will be classified as suspects. Greater

than 95 percent of these responses are

false positives, and subsequent testing

with more specific tests shows these

suspects not to be infected with

tuberculosis. The response rate for

captive cervids on the single cervical

test (the primary intradermal tuberculin

test used in captive cervid herds) is

similar to that of the caudal fold

intradermal tuberculin test for cattle and

bison.

In herds that we do not consider to be

at an increased risk for tuberculosis, we

would expect this response rate and

would not usually deem it advantageous

to destroy the suspect animals.

However, in herds that are at an

increased risk of tuberculosis infection,

the likelihood of a suspect animal

actually being infected with

tuberculosis is higher. In such herds,

rapid diagnosis would significantly

improve our ability to contain the

disease. When this is the case,

indemnity for destruction of the suspect

animals may be offered.

Therefore, we are amending the

regulations to provide for the payment

of Federal indemnity to owners of cattle,

bison, and captive cervids that have

been classified as suspects for

tuberculosis and have been destroyed,

when it has been determined by the

Administrator of APHIS that the

destruction of the suspect animals will

contribute to the tuberculosis

eradication program in U.S. livestock.

Indemnity will not exceed $450 per

animal. Further, the joint State-Federal

indemnity payments, plus salvage, may

not exceed the appraised value of each

animal. We are adding these provisions

in a new paragraph (d) to § 50.3,

‘‘Payment to owners for animals

destroyed.’’ We are also adding a

requirement in § 50.3(d) that payment of

indemnity for suspects will be withheld

until the tuberculosis status of the

suspect has been determined and, if the

suspect is found to be infected with

tuberculosis, all cattle, bison, and

captive cervids 2 years of age or over in

the herd have been tested for

tuberculosis under APHIS or State

supervision. This requirement will help

ensure that the remainder of the herd is

tested for tuberculosis.

We are also adding a new paragraph

(c) to § 50.4, ‘‘Determination of

existence of or exposure to

tuberculosis,’’ to describe how cattle,

bison, and captive cervids will be

classified as suspects for tuberculosis.

The new paragraph (c) will state that

cattle and bison are classified as

suspects for tuberculosis based on a

positive response to an official

tuberculin test, in accordance with the

‘‘Uniform Methods and Rules—Bovine

Tuberculosis Eradication’’ (incorporated

into the regulations by reference in part

77); and that captive cervids are

classified as suspects for tuberculosis in

the same manner as cattle and bison.

Because of the addition of suspect

classification, we are revising the

heading for § 50.4 to read ‘‘Classification

of cattle, bison, and captive cervids as

affected, exposed, or suspect.’’

We are also revising § 50.8,

concerning payment of expenses for

transporting and disposing of affected

and exposed animals, to allow the same

payments for suspect cattle, bison, and

captive cervids. Some slaughtering

establishments refuse to take suspect

animals because, if the animals are

found to be infected with tuberculosis,

restrictions on the use of the meat

increase slaughtering costs and reduce

the value of the meat. Consequently,

some herd owners may have to transport

suspect animals long distances in order

to find a slaughtering establishment

willing to take them. In such cases, the

Department may pay some of the

expenses for transporting and disposing

of the suspect animals, so that owners

do not opt to keep their suspect animals

in the herd for further testing, rather

than pay for long-distance shipping.

Under § 50.8, as amended, the

Department may pay herd owners onehalf the expenses of transporting

suspect cattle, bison, and captive

cervids to slaughter or to the point

where disposal will take place, and

disposing of the animals, provided that

the Department may pay more than onehalf of the expenses when the

Administrator of APHIS determines that

doing so will contribute to the

tuberculosis eradication program. The

APHIS Veterinarian in Charge for the

State in which the animals reside must

approve the payment in advance in

writing. For reimbursement to be made,

the owner of the animals must present

the APHIS Veterinarian in Charge with

a copy of either a receipt for expenses

paid or a bill for services rendered. Any

bill for services rendered by the owner

may not be greater than the normal fee

charged by commercial haulers or

renderers for similar services. These are

the same provisions that currently apply

to the transport and disposal of affected

and exposed cattle, bison, and captive

cervids. In conjunction with this

change, we are revising the heading for

§ 50.8 to read ‘‘Payment of expenses for

transporting and disposing of affected,

exposed, and suspect animals.’’

We are also revising § 50.14, ‘‘Claims

not allowed.’’ Paragraph (b) of § 50.14

has provided that claims for

compensation for cattle, bison, or

captive cervids destroyed because of

tuberculosis will not be allowed if all

cattle, bison, and captive cervids 2 years

of age or over in the claimant’s herd

have not been tested for tuberculosis

under APHIS or State supervision.

Paragraph (b) has further provided that

cattle, bison, and captive cervids

destroyed under §§ 50.3(b) and 50.3(c)

are exempt from this requirement if the

cattle, bison, and captive cervids are

given a post-mortem examination for

tuberculosis by a Federal or State

veterinarian. Section 50.3(b) concerns

cattle, bison, and captive cervids

destroyed as part of a herd

depopulation; 50.3(c) concerns cattle,

bison, and captive cervids destroyed

because of exposure to tuberculosis.

We are revising § 50.14(b) to also

exempt cattle, bison, and captive

cervids destroyed under new § 50.3(d)

from the requirement that all cattle,

bison, and captive cervids 2 years of age

or over in the herd must be tested before

indemnity may be claimed. Section

50.3(d) is added to the regulations by

this document to provide indemnity for

certain suspect cattle, bison, and captive

cervids. The exemption is necessary in

cases where all cattle, bison, and cervids

in the herd have not been tested, but it

is still advantageous to destroy the

suspect animal. As in new § 50.3(d),

revised § 50.14(b) will require that if the

suspect is found to be infected with

tuberculosis, the remainder of the herd

must be tested for tuberculosis if

indemnity is to be paid.

Miscellaneous Change

The regulations at 9 CFR part 50

provide for the payment of Federal

indemnity to owners of certain cattle,
34262 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 /Rules and Regulations

bison, cervids, and swine destroyed

because of tuberculosis. On April 4,

1996, we published a proposed rule in

the Federal Register (61 FR 14982–

14999, Docket No. 92–076–1) to add

interstate movement and testing

requirements for cervids to 9 CFR part

77. Comments we received on the

proposal for part 77 brought to our

attention that the proposed regulations

for interstate movement and testing of

cervids could be interpreted to apply to

wild cervids. While we have not

published a final rule regarding part 77,

we are adding the term ‘‘captive’’ before

‘‘cervid’’ each time it appears in part 50

to clarify our intent.

In § 50.1, a captive cervid is defined

to mean ‘‘All species of deer, elk, and

moose raised or maintained in captivity

for the production of meat and other

products, for sport, or for exhibition.’’ In

the final rule for part 77, based on

comments received, we are considering

revising the definition for captive cervid

to read: ‘‘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. 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 APHIS with which to trace

the animal back to its herd of origin.’’

If we do add this definition of captive

cervid to part 77, we propose to revise

the definition of captive cervid in part

50 to be consistent with part 77.

Immediate Action

The Administrator of the Animal and

Plant Health Inspection Service has

determined that there is good cause for

publishing this interim rule without

prior opportunity for public comment.

Immediate action is necessary to

facilitate the prompt removal and

destruction of certain suspect cattle,

bison, and captive cervids from U.S.

livestock herds. Further, immediate

action will give the agency time to

utilize funds designated for tuberculosis

indemnity purposes in fiscal year 1998

to pay indemnity for suspects before the

end of the fiscal year. Prompt

destruction of suspect animals will help

ensure continued progress toward

eradicating tuberculosis in the U.S.

livestock population.

Because prior notice and other public

procedures with respect to this action

are impracticable and contrary to the

public interest under these conditions,

we find good cause under 5 U.S.C. 553

to make it effective upon signature. 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. It 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 not significant for

the purposes of Executive Order 12866

and, therefore, has not been reviewed by

the Office of Management and Budget.

This interim rule amends the

regulations concerning animals

destroyed because of tuberculosis to

provide for the payment of Federal

indemnity to owners of cattle, bison,

and captive cervids that have been

classified as suspects for tuberculosis

and have been destroyed, when it has

been determined by APHIS that the

destruction of the suspect animals will

contribute to the tuberculosis

eradication program in U.S. livestock.

This rule also allows the U.S.

Department of Agriculture to pay herd

owners some of their expenses for

transporting the suspect cattle, bison,

and captive cervids to slaughter or to

the point of disposal, and for disposing

of the animals. Prior to this interim rule,

owners of cattle, bison, and captive

cervids could only receive Federal

indemnity for affected and exposed

animals destroyed because of

tuberculosis, and for animals in an

affected herd destroyed as part of a herd

depopulation. Indemnity for suspects

will provide incentive for owners to

promptly destroy suspect animals,

thereby hastening the diagnosis of

tuberculosis in a herd. This interim rule

is necessary to ensure continued

progress toward eradicating tuberculosis

in U.S. livestock.

The U.S. livestock industry relies on

healthy animals for its economic well

being. The well being of the overall U.S.

economy depends, in turn, partly on a

healthy livestock industry. The

industry’s role in the economy is

relatively significant. For example, the

total value of U.S. livestock output in

1991 was $66.6 billion, about half of the

value of all agricultural production in

the United States that year. The value of

live animal exports and exports of meat

products totaled $4.3 billion in 1991,

equivalent to 10 percent of the value of

all U.S. agricultural exports that year. In

1997, the value of live cattle, beef, and

veal exports alone was approximately

$2.6 billion.

In 1997, there were 1,167,910 U.S.

operations with cattle and bison, and

the inventory of cattle and bison at the

end of that year stood at 101.2 million

head. The value of cattle and bison in

the United States in 1997 was

approximately $53 billion. Additionally,

there were approximately 1600 cervid

producers in the United States in 1997,

raising about 125,000 deer and elk

valued at about $150 million. Over 97

percent of the 1,167,910 cattle and bison

operations in 1997 had a gross income

of less than $500,000, classifying them

as small businesses. For cervid

operations, holdings vary in size and

degree of commercialization, with many

producers relying on other sources of

income. Most, if not all, U.S. cervid

operations earn less than $500,000

annually and would be considered

small businesses.

Recent studies on the economic

impact of a tuberculosis epidemic in

U.S. livestock are not available.

However, an earlier study indicates that

the impact would be significant. A

comprehensive computer model

developed by Canada in 1979 indicates

that, if the tuberculosis eradication

program were discontinued, annual

losses in the United States would

amount to over $1 billion. Another

study, conducted in 1972, concluded

that the benefits of the tuberculosis

eradication program exceeded costs by a

3.64 to 1 margin.

Under this interim rule, owners of

cattle, bison, and captive cervids that

have been classified as suspects for

tuberculosis and have been destroyed

will be eligible to receive up to $450 in

indemnity per animal, when it has been

determined by APHIS that the

destruction of the suspect animals will

contribute to the tuberculosis

eradication program in U.S. livestock.

Table 1 shows our expected

indemnity payments under the

tuberculosis eradication program for

cattle, bison, and captive cervids for FY

1998 if we did not offer the indemnity

for suspects provided by this interim

rule.

TABLE 1.—FY 1998 PAYMENTS

WITHOUT INDEMNITY FOR SUSPECTS

Indemnity paid for reactors (300

animals at $750 each) ............ $225,000

Indemnity paid for exposed animals for herd depopulation

(300 animals at $450 each) .... 135,000

Total estimated indemnity

for FY 1998 without indemnity for suspects ........ 360,000

We estimate that the number of

suspect animals that herd owners

choose to slaughter as a result of being
Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 /Rules and Regulations 34263

able to receive indemnity will reduce

the number of reactor animals by one

half. This will result in a savings on the

amount of indemnity paid for reactors.

We estimate that approximately 250

suspect cattle, bison, and captive

cervids will be eligible for indemnity

under this interim rule in FY 1998.

However, because of the reduced

number of indemnity payments for

destruction of reactors, we do not expect

this interim rule to increase the total

indemnity paid annually under the

tuberculosis eradication program. Table

2 shows our expected indemnity

payments in FY 1998 if we do offer the

indemnity for suspects provided by this

interim rule.

TABLE 2.—FY 1998 PAYMENTS WITH

INDEMNITY FOR SUSPECTS

Indemnity paid for reactors (150 animals at

$750 each) .................. $112,500

Indemnity paid for suspects (200–250 animals at $450 each) ..... 90,000–112,500

Indemnity paid for exposed animals for herd

depopulation (300 animals at $450 each) ..... 135,000

Total estimated indemnity for FY

1998 with indemnity for suspects ... 337,500–360,000

These estimates are for FY 1998 only.

However, we believe that costs will be

even lower in succeeding years as the

prevalence of tuberculosis declines in

the United States.

The indemnity offered for suspects

under this interim rule will be less than

the indemnity currently offered for

reactors (reactors qualify for $750 in

indemnity; suspects will qualify for

$450 in indemnity). Even so, there are

other incentives that we believe will

cause many herd owners to choose to

slaughter their suspect animals and

accept the lower indemnity. Foremost is

that reactor animals are almost always

condemned for public health reasons,

whether or not they are found upon

examination of the carcass to be infected

with tuberculosis, and cannot be sold as

meat. If a suspect animal is found upon

examination of the carcass to be

negative for tuberculosis, it can be sold

as meat, so that the owner will get some

value from the animal. Generally, cattle

to be sold for meat are valued at about

$750 per animal; bison and elk are

valued at an average of $3500 per

animal; good quality fallow does and

bucks have an average value of $600.

Offering suspect indemnity will also

reduce the amount of required testing,

resulting in savings to herd owners.

Normally, suspect animals are given

additional testing to determine if they

are reactors. This additional testing will

be eliminated if owners choose to

slaughter their suspect animals. Also,

herds found to contain reactor animals

must undergo additional testing to be

released from quarantine. If owners

choose to slaughter their suspect

animals, the additional testing to release

the herd from quarantine will be

eliminated, provided that the

slaughtered suspect is found negative

for tuberculosis upon examination of

the carcass. Herd owners incur costs for

testing due to the need for extra

handling for rounding up animals, and

quarantines restrict owners from

marketing their animals. The reduction

in subsequent testing and extended

quarantines will substantially reduce

costs for herd owners who choose to

slaughter their suspect animals and

receive indemnity.

This rule also allows the U.S.

Department of Agriculture to pay herd

owners one-half the expenses of

transporting suspect cattle, bison, and

captive cervids to slaughter or to the

point where disposal will take place,

and disposing of the animals, provided

that the Department may pay more than

one-half of the expenses when the

Administrator of APHIS determines that

doing so will contribute to the

tuberculosis eradication program. This

is necessary in cases where an owner

must transport a suspect animal a long

distance to a slaughtering facility. The

cost of transporting an animal from the

quarantine site to a slaughtering facility

ranges from $50 to $100 per animal,

depending on the distance between the

two locations. As stated previously, we

estimate that approximately 250 suspect

cattle, bison, and captive cervids will be

eligible for indemnity under this interim

rule in FY 1998. If we assume that the

Department will pay one half of the

expenses for the transport and disposal

of every suspect animal eligible for

indemnity in FY 1998, we estimate that

APHIS’ costs under this portion of the

rule will not exceed $7,812.50 in FY

1998 (based on 75 percent of the

payments at $25 per animal and 25

percent of the payments at $50 per

animal). We expect the Department will

rarely determine that it is necessary to

pay more than one-half of transport and

disposal costs. Further, we do not

expect that it will be necessary to offer

any transport expenses for the disposal

of most suspect animals. We also expect

that costs will be lower in succeeding

years as the prevalence of tuberculosis

in U.S. livestock declines.

Although the benefits of this interim

rule (i.e., enhanced values for U.S.

livestock, particularly in export

markets) are difficult to quantify, those

benefits should certainly exceed the cost

of the program.

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 collection or recordkeeping

requirements under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.).

List of Subjects in 9 CFR Part 50

Animal diseases, Bison, Cattle, Hogs,

Indemnity payments, Reporting and

recordkeeping requirements,

Tuberculosis.

Accordingly, 9 CFR part 50 is

amended 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 371.2(d).

§ 50.1 [Amended]

2. In § 50.1, the defined term Cervid

is revised to read Captive cervid.

3. In § 50.1, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ in the

following places:

a. The definition of Herd

depopulation, each time it appears.

b. The definition of Livestock.

c. The definition of Permit.

d. The defined term Reactor cattle,

bison, and cervids.
34264 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 /Rules and Regulations

e. The defined term Registered cattle,

bison, or cervids, and in the text of the

definition.

4. In § 50.1, in the definition of

Reactor cattle, bison, and cervids, the

last sentence, the word ‘‘Cervids’’ is

removed and the words ‘‘Captive

cervids’’ are added in its place.

§ 50.2 [Amended]

5. In § 50.2, the word ‘‘captive’’ is

added before the word ‘‘cervids’’.

§ 50.3 [Amended]

6. In § 50.3, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ in the

following places:

a. Paragraph (a), in the heading and in

the text.

b. Paragraph (b), in the heading and

in the text each time it appears.

c. Paragraph (c), in the heading and in

the text each time it appears.

7. In § 50.3, paragraph (d) is

redesignated as paragraph (e), and a new

paragraph (d) is added to read as

follows:

§ 50.3 Payment to owners for animals

destroyed.

* * * * *

(d) Suspect cattle, bison, and captive

cervids. The Administrator may

authorize the payment of Federal

indemnity to owners of cattle, bison,

and captive cervids destroyed because

of tuberculosis not to exceed $450 for

any animal that has been classified as a

suspect in accordance with § 50.4(c)

when it has been determined by the

Administrator that the destruction of the

suspect cattle, bison, or captive cervids

will contribute to the Tuberculosis

Eradication Program; but the joint StateFederal indemnity payments, plus

salvage, must not exceed the appraised

value of each animal: Provided,

however, that payment of indemnity for

the destruction of suspect cattle, bison,

and captive cervids will be withheld

until the tuberculosis status of the

suspect has been determined and, if the

cattle, bison, or captive cervid is found

to be infected with tuberculosis, all

cattle, bison, and captive cervids 2 years

of age or over in the claimant’s herd

have been tested for tuberculosis under

APHIS or State supervision.

* * * * *

8. In § 50.4, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ in the

following places:

a. Paragraph (a).

b. Paragraph (b), the introductory text,

each time it appears.

c. Paragraph (b)(3).

9. In § 50.4, the heading is revised and

a new paragraph (c) is added to read as

follows:

§ 50.4 Classification of cattle, bison, and

captive cervids as affected, exposed, or

suspect.

* * * * *

(c) Cattle and bison are classified as

suspects for tuberculosis based on a

positive response to an official

tuberculin test, in accordance with the

‘‘Uniform Methods and Rules—Bovine

Tuberculosis Eradication’’ (incorporated

into the regulations by reference in part

77). Captive cervids are classified as

suspects for tuberculosis in the same

manner as cattle and bison.

§ 50.5 [Amended]

10. In § 50.5, the word ‘‘captive’’ is

added before the word ‘‘cervid’’.

§ 50.6 [Amended]

11. In § 50.6, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ in the

following places:

a. The introductory text.

b. Paragraph (d), in the heading and

in the text each time it appears.

c. Paragraph (e), in the heading and in

the text each time it appears.

§ 50.7 [Amended]

12. In § 50.7, in paragraphs (a) and (b),

the word ‘‘captive’’ is added before the

word ‘‘cervids’’.

§ 50.8 [Amended]

13. In § 50.8, the heading is revised to

read ‘‘Payment of expenses for

transporting and disposing of affected,

exposed, and suspect animals.’’

14. In § 50.8, the phrase ‘‘affected or

exposed cattle, bison, and cervids’’ is

removed both times it appears and the

phrase ‘‘affected, exposed, or suspect

cattle, bison, and captive cervids’’ is

added in its place.

§ 50.9 [Amended]

15. In § 50.9, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ each

time it appears.

§ 50.10 [Amended]

16. In § 50.10, the word ‘‘captive’’ is

added before the word ‘‘cervids’’.

§ 50.11 [Amended]

17. In § 50.11, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ each

time it appears.

§ 50.12 [Amended]

18. In § 50.12, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ each

time it appears.

19. In § 50.14, the word ‘‘captive’’ is

added before the word ‘‘cervids’’ in the

following places:

a. The introductory text.

b. Paragraph (d), each time it appears.

c. Paragraph (e), the introductory text,

each time it appears.

d. Paragraph (e)(2)(i).

e. Paragraph (e)(2)(ii).

f. Paragraph (f).

20. In § 50.14, paragraph (b) is revised

to read as follows:

§ 50.14 Claims not allowed.

* * * * *

(a) * * *

(b) If all cattle, bison, and captive

cervids 2 years of age or over in the

claimant’s herd have not been tested for

tuberculosis under APHIS or State

supervision: Provided, however, that:

(1) Cattle, bison, and captive cervids

destroyed because of tuberculosis under

§ 50.3(b) or (c) are exempt from this

requirement if the cattle, bison, or

captive cervids are subjected to a postmortem examination for tuberculosis by

a Federal or State veterinarian; and

(2) Cattle, bison, and captive cervids

destroyed because of tuberculosis under

§ 50.3(d) are exempt from this

requirement if the cattle, bison, or

captive cervids are subjected to a postmortem examination for tuberculosis by

a Federal or State veterinarian and

found not to have tuberculosis.

* * * * *

Done in Washington, DC, this 17th day of

June 1998.

Charles Schwalbe,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 98–16747 Filed 6–23–98; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 78

[Docket No. 98–068–1]

Brucellosis in Cattle; State and Area

Classifications; Louisiana

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the

brucellosis regulations concerning the

interstate movement of cattle by

changing the classification of Louisiana

from Class Free to Class A. We have

determined that Louisiana no longer

meets the standards for Class Free

status. This action imposes certain

restrictions on the interstate movement

of cattle from Louisiana.

DATES: Interim rule effective June 16,

1998. Consideration will be given only

to comments received on or before

August 24, 1998.