[Federal Register Volume 63, Number 121 (Wednesday, June 24, 1998)]
[Rules and Regulations]
[Pages 34259-34264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16747]


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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.

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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

[[Page 34260]]

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: 
<a href="/cdn-cgi/l/email-protection#e48e8085928d97a485948c8d97ca91978085ca838b92"><span class="__cf_email__" data-cfemail="5d37393c2b342e1d3c2d35342e73282e393c733a322b">[email protected]</span></a>.

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 tuberculosis-affected 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 Sec. 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

[[Page 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 
Sec. 50.3, ``Payment to owners for animals destroyed.'' We are also 
adding a requirement in Sec. 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 Sec. 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 Sec. 50.4 to read 
``Classification of cattle, bison, and captive cervids as affected, 
exposed, or suspect.''
    We are also revising Sec. 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 Sec. 50.8, as amended, the Department may 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. 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 Sec. 50.8 
to read ``Payment of expenses for transporting and disposing of 
affected, exposed, and suspect animals.''
    We are also revising Sec. 50.14, ``Claims not allowed.'' Paragraph 
(b) of Sec. 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 Secs. 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 Sec. 50.14(b) to also exempt cattle, bison, and 
captive cervids destroyed under new Sec. 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 Sec. 50.3(d), revised Sec. 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,

[[Page 34262]]

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 Sec. 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

[[Page 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).

Sec. 50.1  [Amended]

    2. In Sec. 50.1, the defined term Cervid is revised to read Captive 
cervid.
    3. In Sec. 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.

[[Page 34264]]

    e. The defined term Registered cattle, bison, or cervids, and in 
the text of the definition.
    4. In Sec. 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.


Sec. 50.2  [Amended]

    5. In Sec. 50.2, the word ``captive'' is added before the word 
``cervids''.


Sec. 50.3  [Amended]

    6. In Sec. 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 Sec. 50.3, paragraph (d) is redesignated as paragraph (e), 
and a new paragraph (d) is added to read as follows:


Sec. 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 Sec. 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 State-Federal 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 Sec. 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 Sec. 50.4, the heading is revised and a new paragraph (c) is 
added to read as follows:


Sec. 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.


Sec. 50.5  [Amended]

    10. In Sec. 50.5, the word ``captive'' is added before the word 
``cervid''.


Sec. 50.6  [Amended]

    11. In Sec. 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.


Sec. 50.7  [Amended]

    12. In Sec. 50.7, in paragraphs (a) and (b), the word ``captive'' 
is added before the word ``cervids''.


Sec. 50.8  [Amended]

    13. In Sec. 50.8, the heading is revised to read ``Payment of 
expenses for transporting and disposing of affected, exposed, and 
suspect animals.''
    14. In Sec. 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.


Sec. 50.9  [Amended]

    15. In Sec. 50.9, the word ``captive'' is added before the word 
``cervids'' each time it appears.


Sec. 50.10  [Amended]

    16. In Sec. 50.10, the word ``captive'' is added before the word 
``cervids''.


Sec. 50.11  [Amended]

    17. In Sec. 50.11, the word ``captive'' is added before the word 
``cervids'' each time it appears.


Sec. 50.12  [Amended]

    18. In Sec. 50.12, the word ``captive'' is added before the word 
``cervids'' each time it appears.
    19. In Sec. 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 Sec. 50.14, paragraph (b) is revised to read as follows:


Sec. 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 Sec. 50.3(b) or (c) are exempt from this requirement 
if the cattle, bison, or captive cervids are subjected to a post-mortem 
examination for tuberculosis by a Federal or State veterinarian; and
    (2) Cattle, bison, and captive cervids destroyed because of 
tuberculosis under Sec. 50.3(d) are exempt from this requirement if the 
cattle, bison, or captive cervids are subjected to a post-mortem 
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


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