[Federal Register Volume 65, Number 75 (Tuesday, April 18, 2000)]
[Rules and Regulations]
[Pages 20706-20712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9668]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 52

[Docket No. 98-123-6]
RIN 0579-AB10


Pseudorabies in Swine; Payment of Indemnity

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: We are amending the regulations regarding the payment of 
indemnity for herds of swine depopulated because of pseudorabies to 
provide that the Animal and Plant Health Inspection Service will pay 
owners of the swine an indemnity equal to the difference between the 
net salvage received and the fair market value of the swine destroyed. 
We are also providing for the payment of indemnity for individual 
breeding sows destroyed because they are infected with pseudorabies. We 
have determined that this action will allow for the payment of 
indemnity from accelerated pseudorabies eradication program funds for a 
greater number of swine disposed of because they are infected with 
pseudorabies. This action is necessary to further pseudorabies 
eradication efforts and to protect swine not infected with pseudorabies 
from the disease.

DATES: Interim rule effective April 12, 2000. Consideration will be 
given only to comments received on or before June 19, 2000.

ADDRESSES: Please send your comment and three copies to: Docket No. 98-
123-6, 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. 98-123-6.
    You may read any comments that we receive on this docket in our 
reading room. The reading room is located in room 1141 of the USDA 
South Building, 14th Street and Independence Avenue SW., Washington, 
DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through 
Friday, except holidays. To be sure someone is there to help you, 
please call (202) 690-2817 before coming.
    APHIS documents published in the Federal Register, and related 
information, including the names of organizations and individuals who 
have commented on APHIS dockets, are available on the Internet at 
http://www.aphis.usda.gov/ppd/rad/webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr. Arnold Taft, Senior Staff 
Veterinarian, Swine Diseases, VS, APHIS, 4700 River Road Unit 43, 
Riverdale, MD 20737-1231, (301) 734-7708.

SUPPLEMENTARY INFORMATION:

Background

    The Animal and Plant Health Inspection Service's (APHIS's) 
regulations in 9 CFR part 85 govern the interstate movement of swine 
and other livestock (cattle, sheep, and goats) in order to help prevent 
the spread of pseudorabies.
    Pseudorabies is a contagious, infectious, and communicable disease 
of livestock, primarily swine. The disease, also known as Aujeszky's 
disease, mad itch, and infectious bulbar paralysis, is caused by a 
herpes virus, and is known to cause reproductive problems, including 
abortion and stillborn death, and death in neonatal pigs, and 
occasional death losses in breeding and finishing hogs. Prior to 1998, 
the cost of pseudorabies to pork producers alone in the United States 
was over $30 million annually. Of this amount, more than half, $17 
million, represented the cost of vaccination, and another $11 million 
was attributable to pig deaths. The remainder was spent on testing.
    A Federal eradication program for pseudorabies was implemented in 
the United States in 1989. The program is cooperative in nature and 
involves Federal, State, and industry participation. In an interim rule 
published in the Federal Register on January 15, 1999, and effective as 
of

[[Page 20707]]

January 12, 1999 (64 FR 2545-2550, Docket No. 98-123-2), APHIS 
promulgated regulations to establish an accelerated pseudorabies 
eradication program that provided, among other things, for the payment 
of indemnity by the United States Department of Agriculture 
(Department) for the voluntary depopulation of herds of swine known to 
be infected with pseudorabies.

Indemnity Paid by the Department

    In our January 15, 1999, interim rule, we explained that we 
considered it appropriate to accelerate the pseudorabies eradication 
program through whole-herd buyouts because of a combination of three 
factors: (1) The danger that some owners might eliminate eradication 
efforts, such as vaccination of swine, due to depressed market 
conditions; (2) the relatively small number of herds infected with 
pseudorabies; and (3) the fact that markedly depressed prices for swine 
would lessen the cost to the Federal Government of whole-herd buyouts.
    We explained that a surplus of live swine, due in part to reduced 
export markets, had slaughter facilities operating at maximum 
capability. Consequently, swine producers were being forced to continue 
feeding swine that could not go to slaughter. Swine that were being 
slaughtered were being sold at prices below the costs of feeding and 
transportation.
    Under the regulations governing the accelerated eradication 
program, we began paying owners fair market value for herds of swine 
depopulated because of pseudorabies. In addition to paying 100 percent 
of the fair market value of the animals, we have been paying for 
trucking to disposal, for euthanasia and disposal, and for cleaning and 
disinfection of conveyances used for transporting the swine to 
disposal. To date, we have disposed of the herds depopulated under the 
accelerated eradication program by rendering. Although pseudorabies 
does not affect humans, we chose rendering as the method for disposal 
at the outset of the program because, as noted, a surplus of live swine 
was causing slaughtering establishments to operate at maximum 
capability.
    Since January 1999, a reduction in swine inventories has 
contributed to an increase in the market value of swine. Additionally, 
this has created a situation where slaughtering establishments are 
generally not operating at maximum capability. Although the price per 
pound APHIS is paying for swine destroyed under the eradication program 
has increased over the past year, we consider it necessary to the 
eradication of pseudorabies to continue the accelerated eradication 
program. However, because slaughtering establishments can now handle 
swine to be destroyed under the accelerated eradication program, we 
consider it prudent to revise the method by which owners of swine will 
receive fair market value for their animals under the accelerated 
eradication program.
    Instead of the Department paying each owner 100 percent of the fair 
market value of all swine disposed of under the accelerated eradication 
program, we will pay indemnity for the difference between whatever 
payment for net salvage an owner receives for herds of swine disposed 
of through slaughter and the fair market value of those animals. Net 
salvage is the amount derived from the sale of an animal after 
deducting freight, trucking, yardage, commission, slaughtering charges, 
and similar costs to the owner. This change will increase the number of 
pseudorabies-infected herds that can be depopulated using available 
program funds. Under either formula, a swine owner receives the fair 
market value of the swine.
    To ensure that the swine for which indemnity is paid do not pose a 
pseudorabies risk to any swine not moving to slaughter, and to ensure 
that APHIS receives documentation that the swine have been destroyed, 
we are requiring that the swine be sent under permit directly to a 
recognized slaughtering establishment, where State or Federal meat 
inspection is available. We are requiring that the swine be moved to 
the recognized slaughtering establishment in a conveyance closed with 
an official seal that is applied and removed by an APHIS employee, a 
State representative, an accredited veterinarian, or an individual 
authorized for this purpose by an APHIS employee.
    We are adding definitions in Sec. 52.1 of this interim rule for the 
terms accredited veterinarian, official seal, permit, and recognized 
slaughtering establishment.
    We define accredited veterinarian to mean a veterinarian approved 
by the Administrator in accordance with the provisions of 9 CFR part 
161 to perform functions specified in 9 CFR, chapter I, subchapters B, 
C, and D. This definition is consistent with that set forth elsewhere 
in 9 CFR chapter I.
    We define official seal to mean a serially numbered metal or 
plastic strip, consisting of a self-locking device on one end and a 
slot on the other end, that forms a loop when the ends are engaged and 
that cannot be reused if opened, or a serially numbered, self-locking 
button that can be used for this purpose.
    We define permit to mean an official document for movement of swine 
that is issued by an APHIS employee, State representative, or 
accredited veterinarian and that lists the disease status and 
individual identification of the animal, where consigned, cleaning and 
disinfection requirements, and proof of slaughter certification by a 
recognized slaughtering establishment. It is standard practice for the 
State or Federal inspector at the recognized slaughtering establishment 
to submit a signed copy of the permit to the APHIS veterinarian in 
charge when the animal is destroyed.
    We define recognized slaughtering establishment to mean a 
slaughtering establishment operating under the Federal Meat Inspection 
Act (21 U.S.C. 601-695) or a State meat inspection act. (A list of 
recognized slaughtering establishments can be obtained by contacting 
the person listed in this Supplementary Information under For Further 
Information Contact.)
    As under the program to date, the fair market value will be 
primarily based on a per pound compensation. The per pound compensation 
will continue to be based on weighted average base market prices from 
the previous week (as released in ``USDA-AMS Livestock Market News'' 
and as determined by calculating the average of the Wednesday through 
Friday prices). An additional producer cost offset will also continue 
to be paid according to whether the animal is a breeder pig, a baby 
pig, a market hog less than 200 pounds, or a market hog greater than 
200 pounds.
    Although we expect that the great majority of swine disposed of 
under the accelerated eradication program will be disposed of through 
sale to slaughter, we recognize that this may not be reasonable or 
possible for some swine. For instance, some swine may be too small to 
provide a profitable yield to the slaughtering facility or may not be 
of sufficient size to be handled by slaughtering machinery that is set 
for larger animals. Additionally, recognized slaughtering 
establishments may not accept swine that have some visible health 
problem, such as an abscess. Such swine are usually readily 
identifiable by owners and APHIS employees or State representatives 
without actually being sent to a recognized slaughtering establishment. 
In this interim rule, we are providing that we will continue to pay 100 
percent of the fair market value for swine that are identified for 
destruction under the accelerated eradication program, even if they are 
not accepted by a recognized slaughtering establishment. We may

[[Page 20708]]

also pay 100 percent of the fair market value for swine that the owner 
and an authorized APHIS employee or State representative agree will not 
be accepted by a recognized slaughtering establishment.

Appraisal of Swine

    Prior to this interim rule, Sec. 52.3 of the regulations provided 
that swine to be destroyed under the accelerated eradication program 
were to be appraised by an APHIS employee and a representative of the 
State jointly, or, if the State authorities approved, by an APHIS 
employee alone. The regulations did not specifically provide for 
appraisal by a State representative alone because the States were 
willing to allow APHIS to assume a lead role in carrying out the 
depopulation and indemnity process. Recently, however, States have 
indicated to APHIS a willingness to assume an increased role in the 
appraisal of swine. Increasing State involvement would reduce the 
demands on APHIS resources and, in some cases, promote more rapid 
completion of the appraisal process. Therefore, we are amending 
Sec. 52.3 to provide that swine to be destroyed under the accelerated 
eradication program may be appraised by a State representative alone.

Groups of Swine Eligible for Indemnity

    Section 52.2 of the regulations provides that the Administrator is 
authorized to agree, on the part of the Department, to pay 100 percent 
of the expenses of purchase, destruction, and disposition of herds of 
swine that are destroyed because the herds are known to be infected 
with pseudorabies.
    In Sec. 52.1 of the regulations, a herd is defined as a group of 
swine maintained on common ground for any purpose, or two or more 
groups of swine under common ownership or supervision, that are 
geographically separated but have an interchange or movement of animals 
without regard to whether the animals are infected with or exposed to 
pseudorabies.
    The definition of herd includes two or more groups of swine under 
common ownership because it is standard practice in the swine industry 
for a production facility to maintain groups of swine in different 
units in different buildings, pens, etc. The swine from the different 
units may or may not come into contact with each other. If there is an 
interchange or movement of animals between groups without regard to 
whether the animals are infected with or exposed to pseudorabies, then, 
for disease and indemnity purposes, the groups must be considered as 
one herd.
    For the most part under the accelerated eradication program, it has 
been clear to APHIS and owners of swine whether different groups of 
swine should be considered as one herd for disease purposes. However, 
in certain cases, questions have arisen as to whether there was a risk 
of disease transmission between groups of swine under common ownership. 
To help address this situation, we are providing in the definition of 
herd that any risk of disease transmission between two groups of swine 
will be determined by the official pseudorabies epidemiologist. 
(Official pseudorabies epidemiologist is defined in the regulations as 
a State or Federally employed veterinarian designated by the 
veterinarian in charge and the State animal health official to 
investigate and diagnose pseudorabies in livestock.) The factors the 
official pseudorabies epidemiologist will use in making this 
determination include the physical layout of the premises and the 
management practices of the facility, including whether groups of swine 
are kept in separate areas with no interchange of potential 
contaminants. Additionally, the epidemiologist will examine the 
pseudorabies testing and vaccination history of the animals on the 
premises to assess where the occurrence of pseudorabies is focused and 
the likelihood of its transmission to separated groups of swine.

Breeding Sows

    We are also including in this interim rule a provision to allow 
owners of breeding sows that are identified as being infected with 
pseudorabies to receive indemnity if those sows are sent directly to 
slaughter, even if the rest of the herd they are part of is not 
depopulated. Although depopulation of an entire herd is the quickest 
and surest method of ensuring that pseudorabies is eradicated, some 
swine owners with infected herds have chosen not to depopulate the 
entire herd due to the loss of production during the time necessary to 
replace the herd. In such cases, the alternative method of ridding a 
herd of pseudorabies is to remove from the herd individual sows that 
test positive for pseudorabies. Prior to the implementation of 
indemnity payments for herd depopulation under the accelerated 
pseudorabies eradication program, ``test and removal'' of individual 
sows was the primary method used to further the pseudorabies 
eradication program, although owners of individual swine disposed of 
because of pseudorabies were not eligible to receive indemnity from 
APHIS for those animals.
    Because a number of swine owners have chosen not to depopulate 
their infected herds under the accelerated eradication program, we 
believe it is necessary for the continued progress of the pseudorabies 
eradication program to provide owners of infected herds with an 
incentive to rid their herds of those animals most likely to perpetuate 
pseudorabies within a herd. The swine that constitute the greatest risk 
are the breeding sows in a herd. As their name denotes, the primary 
purpose of breeding sows is to produce litters, whereas the purpose of 
other swine in the herd is generally to be moved to slaughter. Because 
breeding sows remain in a herd over a period of years, a sow that is 
infected with pseudorabies can come into contact with, and possibly 
infect, a number of swine in the herd over the course of its lifetime.
    Therefore, to encourage the prompt removal of infected breeding 
sows from a herd, we are providing in Sec. 52.2(a) of this interim rule 
that APHIS will pay indemnity to owners of breeding sows known to be 
infected with pseudorabies that are sent under permit directly to a 
recognized slaughtering establishment. The payment of indemnity will be 
carried out by the same method as that described above for whole herd 
depopulations--i.e., APHIS will pay the owner of the swine the 
difference between the amount of the net salvage value the owner 
receives when the animal is slaughtered and the fair market value of 
the animal. The option of receiving indemnity for less than whole-herd 
depopulation will not apply to any swine other than breeding sows known 
to be infected with pseudorabies.
    In order to make clear the criteria APHIS will use in determining 
whether an individual breeding sow is infected with pseudorabies, we 
are adding to Sec. 52.1 a definition of known infected breeding sow. 
Under this definition, which is the same as the definition of known 
infected herd, except that it applies to individual breeding sows 
rather than to entire herds, breeding sows known to be infected are 
those that have been determined to be infected with pseudorabies based 
on an official pseudorabies test or an approved differential 
pseudorabies test, or based on a diagnosis by an official pseudorabies 
epidemiologist.

Presentation of Claims

    Prior to this interim rule, the provisions governing the 
presentation to APHIS of claims for indemnity for swine destroyed 
because of pseudorabies were set forth in Secs. 52.5 and 52.6. Because 
herds of swine destroyed under the accelerated

[[Page 20709]]

pseudorabies program prior to this interim rule were purchased in their 
entirety by APHIS for shipment to rendering, there was no need for the 
owner to report any salvage value for the swine. Under this interim 
rule, however, owners may receive indemnity for swine that are not 
purchased by APHIS but that are sent directly to slaughter. Therefore, 
it is necessary that the owner of the swine submit to APHIS, along with 
a claim for indemnity, documentation of the amount of net salvage 
proceeds received for the swine at slaughter. This documentation, along 
with the certification of destruction that APHIS will receive from the 
recognized slaughtering establishment when the animals are destroyed, 
will provide APHIS with the information needed to process payment of 
indemnity. We are adding the requirement for submission of a net 
salvage proceeds report at Sec. 52.5 of this interim rule (discussed 
below).
    For those swine eligible for indemnity that are purchased by APHIS 
rather than sent to a slaughtering establishment, the procedures for 
indemnity claims will be the same as those in place prior to this 
interim rule. (Those procedures, which were contained in Secs. 52.5 and 
52.6 prior to this interim rule, are consolidated in Sec. 52.4 of this 
interim rule.)

Report of Net Salvage Proceeds

    In Sec. 52.5 of this interim rule, we are setting forth procedures 
by which an owner must report to APHIS net salvage proceeds received 
when swine infected with pseudorabies are sent to slaughter under the 
accelerated eradication program. We are providing that a report of the 
amount received for net salvage must be made on a salvage form that 
shows the gross receipts, expenses, if any, and net proceeds. An 
original or copy of the salvage form must be furnished by the owner to 
the veterinarian in charge.
    We are defining ``net salvage'' in Sec. 52.1 to mean the amount 
received for swine destroyed because of pseudorabies, after deducting 
freight, trucking, yardage, commission, slaughtering charges, and 
similar costs to the owner.

Nonsubstantive Changes

    In this interim rule, we are also making some nonsubstantive 
changes to part 52 by redesignating Sec. 52.4 as Sec. 52.7, 
redesignating Sec. 52.7 as Sec. 52.6, and combining the provisions of 
Secs. 52.5 and 52.6 into one section, new Sec. 52.4. Additionally, we 
are amending the definition of known infected herd to remove some 
redundant language.

Benefits of This Interim Rule

    By revising the method by which owners receive fair market value 
for swine disposed of under the accelerated eradication program, we 
will significantly extend the use of APHIS' accelerated pseudorabies 
eradication program funds. This will help ensure that pseudorabies is 
eradicated from the United States by the end of 2000.

Emergency Action

    The Administrator of the Animal and Plant Health Inspection Service 
has determined that an emergency exists that warrants publication of 
this interim rule without prior opportunity for public comment. The 
nature of the emergency is the immediate need to extend the funds 
available to APHIS for the accelerated pseudorabies eradication program 
before these funds are exhausted. This action is necessary to effect 
the eradication of pseudorabies in the United States by the end of 
2000.
    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. 533 to make the 
rule effective less than 30 days after publication. 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.
    An analysis of the economic effects of this rule on small entities, 
as required by the Regulatory Flexibility Act, follows.

Potential Economic Effects

    Pseudorabies is a herpes virus disease, primarily affecting swine, 
that is known to cause reproductive problems, including abortion, 
stillborn death, and death in neonatal pigs, and occasional death 
losses in breeding and finishing hogs. The disease is recognized to 
cause considerable economic losses.
    A Federal eradication program for pseudorabies was implemented in 
the United States in 1989. The program is cooperative in nature and 
involves Federal, State, and industry participation. The Federal 
Government coordinates the national program, the State Governments 
promulgate and enforce intrastate regulations, and producers have 
contributed by testing their herds and purchasing vaccines.
    In January 1999, we published regulations to establish an 
accelerated pseudorabies eradication program that provided, among other 
things, for the payment of indemnity by the Department for the 
voluntary depopulation of herds of swine known to be infected with 
pseudorabies.
    Under the regulations governing the accelerated eradication 
program, we have been paying owners fair market value for herds of 
swine depopulated because of pseudorabies. In addition to paying 100 
percent of the fair market value of the animals, we have been paying 
for trucking to disposal, for euthanasia and disposal, and for cleaning 
and disinfection of conveyances used for transporting the swine to 
disposal. To date, the herds that have been depopulated under the 
accelerated eradication program have been disposed of by rendering.
    In this interim rule, we are providing that, instead of the 
Department paying each owner 100 percent of the fair market value of 
all swine destroyed under the accelerated eradication program, the 
Department will also pay indemnity for the difference between whatever 
net salvage value is received for herds of swine disposed of through 
slaughter and the fair market value of those animals. Additionally, we 
are providing that indemnity may be paid for breeding sows that are 
disposed of because they are known to be infected with pseudorabies, 
even if the remainder of the herd the sow is part of is not 
depopulated. We will continue to pay full purchase price for those 
swine that are not accepted at recognized slaughtering establishments.
    The total amount paid to each owner whose herd is depopulated 
because of pseudorabies will be the same under this interim rule as 
under the regulations prior to this interim rule. The difference will 
be in how much the Department pays of that amount and how much is paid 
by other sources. The provision we are adding to the regulations to 
allow for the payment of indemnity for individual breeding sows 
disposed of because they are known to be infected with pseudorabies is 
expected to provide indemnity to owners who would not otherwise have 
received indemnity under the accelerated eradication program.
    As explained below, we expect the number of infected herds sold to

[[Page 20710]]

slaughter to be a very small portion of swine slaughter sales overall. 
In turn, the number of individual breeding sows sold to slaughter will 
comprise a small fraction of the number of pseudorabies-infected swine 
sent to slaughter.
    For the purposes of our analysis, we used information from 
accelerated eradication program activities for the first 4 months of 
fiscal year (FY) 2000 (October 1, 1999 to January 28, 2000) because we 
expect the participation in the accelerated eradication program that 
occurred during that period to be representative of participation 
during the 4 months following publication of this interim rule. Longer 
term projections, as the accelerated eradication program approaches its 
eradication goal and the number of participating herds decreases, would 
be more problematic.
    From October 1, 1999, through January 28, 2000, a total of 146,300 
swine from 112 herds were depopulated through the accelerated 
eradication program. Although this results in a nationwide average herd 
size of 1,306 swine, average herd sizes varied widely by State, from 39 
swine (the average for the three herds depopulated in Florida) to 2,688 
swine (the average for the 10 herds depopulated in Indiana).
    In comparison to the 146,300 swine destroyed under the accelerated 
eradication program during the first 4 months of FY 2000, the total 
number of swine slaughtered nationwide during the same period averaged 
approximately 8,910,700 swine per month (slaughter numbers for January 
were projected based on the average of the first 3 months), yielding a 
4-month total of 35,642,800. Therefore, the number of swine slaughtered 
under the accelerated eradication program represented about 0.4 percent 
of the total number of swine slaughtered. Assuming similar national and 
accelerated eradication program totals during the coming 4 months, any 
effect on slaughter prices due to infected animals going to slaughter 
will be slight, as explained below.
    We estimated the effect on slaughter prices by considering the 
price flexibility for slaughter swine. The flexibility coefficient for 
a commodity is the percentage change in price associated with a 1 
percent change in quantity, other factors being held constant. Assuming 
a flexibility coefficient for swine of about -0.8 to -0.9\1\, a 0.4 
percent increase in the quantity of slaughter swine would result in a 
0.32 to 0.36 percent decrease in price. Thus, entry of swine from the 
accelerated eradication program into the slaughter market could result 
in slaughter prices falling from, for example, 40 cents per pound to 
39.86 or 39.87 cents per pound, assuming all other market determinants 
remained constant.
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    \1\ Flexibility coefficients based on William F. Hahn, ``An 
Annotated Bibliography of Recent Elasticity and Flexibility 
Estimates for Meat and Livestock,'' Economic Research Service, 
Commercial Agriculture Division, Staff Paper No. AGES-9611, July 
1996.
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Savings to the Accelerated Pseudorabies Eradication Program

    The major effect of this interim rule will be in reducing expenses 
to the accelerated pseudorabies eradication program. Program costs will 
be reduced by the amount that is paid at slaughter for swine destroyed 
under the program. Maximum potential savings can be estimated using 
accelerated eradication program data for the first 4 months of FY 2000. 
Indemnity payments, including producer cost offsets, during this period 
totaled $11,097,796. The producer cost offsets comprised $2,782,300 of 
that amount.
    If accelerated eradication program participation during the coming 
4 months is similar to what took place during the first 4 months of FY 
2000, and assuming that the amount an owner receives at slaughter 
equals the fair market value of the animal minus the producer cost 
offset, the savings to the accelerated eradication program in indemnity 
payments would exceed $8 million ($11,097,796-$2,782,300 = $8,315,496). 
Even after taking into account indemnity program-related expenses 
during the first 4 months of FY 2000 ($2,602,860) and enhanced 
surveillance expenses during that period ($97,024), total expenses to 
the program under the scenario described would be reduced to about 40 
percent of what they would be without the slaughter sale option. 
Although, realistically, not all infected swine to be destroyed will be 
sold for slaughter, and the prices received at slaughter will usually 
not match the fair market value of the animals, savings to the 
accelerated eradication program are expected to be considerable.

Effects on Small Entities

    This interim rule is not expected to have an effect on the total 
amount of compensation swine owners will receive for pseudorabies-
infected swine. Additionally, it is not expected to have a significant 
effect on the price per pound paid for swine at slaughter.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
not have a significant impact on a substantial number of small 
entities.

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

    In accordance with section 3507(j) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection or 
recordkeeping requirements included in this interim rule have been 
submitted for emergency approval to the Office of Management and Budget 
(OMB). OMB has assigned control number 0579-0151 to the information 
collection and recordkeeping requirements.
    We plan to request continuation of that approval for 3 years. 
Please send written comments on the 3-year approval request to the 
following addresses: (1) Docket No. 98-123-6, Regulatory Analysis and 
Development, PPD, APHIS, suite 3C03, 4700 River Road Unit 118, 
Riverdale, MD 20737-1238, and (2) Clearance Officer, OCIO, USDA, room 
404-W, 14th Street and Independence Avenue SW., Washington, DC 20250. 
Please state that your comments refer to Docket No. 98-123-6 and send 
your comments within 60 days of publication of this rule.
    This interim rule provides that APHIS will pay an indemnity for 
swine destroyed because of pseudorabies that is equal to the difference 
between the net salvage received and the fair market value of the swine 
destroyed. Under these provisions, owners seeking indemnity for swine 
destroyed will be required to obtain a movement permit and submit to 
APHIS a report of net salvage proceeds. Additionally, the swine must be 
moved to slaughter in a means of conveyance sealed with an official 
seal. We are soliciting comments from the public concerning our 
information collection and recordkeeping requirements. These comments 
will help us:
    (1) Evaluate whether the information collection is necessary for 
the proper performance of our agency's functions, including whether the 
information will have practical utility;
    (2) Evaluate the accuracy of our estimate of the burden of the 
information collection, including the validity of the methodology and 
assumptions used;

[[Page 20711]]

    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the information collection on those who 
are to respond (such as through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses).
    Estimate of burden: Public reporting burden for this collection of 
information is estimated to average .14257 hour per response.

Estimated number of respondents: 300.

Estimated number of responses per respondent: 23.33.

Estimated total annual number of responses: 7,000.

Estimated total annual burden on respondents: 998 hours.

    Copies of this information collection can be obtained from: 
Clearance Officer, OCIO, USDA, room 404-W, 14th Street and Independence 
Avenue, SW., Washington, DC 20250.

List of Subjects in 9 CFR Part 52

    Animal diseases, Pseudorabies, Swine, Indemnity payments, 
Transportation.

    Accordingly, we are amending 9 CFR part 52 as follows:

PART 52--SWINE DESTROYED BECAUSE OF PSEUDORABIES

    1. The authority citation for part 52 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).


    2. Section 52.1 is amended by revising the definitions of ``herd'' 
and ``known infected herd'' and by adding definitions of ``accredited 
veterinarian'', ``known infected breeding sow'', ``net salvage'', 
``official seal'', ``permit'', and ``recognized slaughtering 
establishment'', in alphabetical order, to read as follows:


Sec. 52.1  Definitions

    Accredited veterinarian. A veterinarian approved by the 
Administrator in accordance with the provisions of part 161 of this 
chapter to perform functions specified in subchapters B, C, and D of 
this chapter.
* * * * *
    Herd. Any group of swine maintained on common ground for any 
purpose, or two or more groups of swine under common ownership or 
supervision that are geographically separated but that are determined 
by an official pseudorabies epidemiologist to have an interchange or 
movement of animals that could cause the transmission of pseudorabies 
from one group to another.
* * * * *
    Known infected breeding sow. Any breeding sow that has been 
determined to be infected with pseudorabies based on an official 
pseudorabies test or an approved differential pseudorabies test, or as 
diagnosed by an official pseudorabies epidemiologist as having 
pseudorabies.
    Known infected herd. Any herd in which swine have been determined 
to be infected with pseudorabies based on an official pseudorabies test 
or an approved differential pseudorabies test, or based on a diagnosis 
by an official pseudorabies epidemiologist.
* * * * *
    Net salvage. The amount received for swine destroyed because of 
pseudorabies, after deducting freight, trucking, yardage, commission, 
slaughtering charges, and similar costs to the owner.
* * * * *
    Official seal. A serially numbered metal or plastic strip, 
consisting of a self-locking device on one end and a slot on the other 
end, that forms a loop when the ends are engaged and that cannot be 
reused if opened, or a serially numbered, self-locking button that can 
be used for this purpose.
    Permit. An official document for movement of swine under this part 
that is issued by an APHIS employee, State representative, or 
accredited veterinarian and that lists the disease status and 
individual identification of the animal, where consigned, cleaning and 
disinfection requirements, and proof of slaughter certification by a 
recognized slaughtering establishment.
* * * * *
    Recognized slaughtering establishment. A slaughtering establishment 
operating under the Federal Meat Inspection Act (21 U.S.C. 601-695) or 
a State meat inspection act.\4\
---------------------------------------------------------------------------

    \4\ A list of recognized slaughtering establishments is 
available upon request from the Animal and Plant Health Inspection 
Service, 4700 River Road Unit 37, Riverdale, Maryland 20737-1231.
---------------------------------------------------------------------------

* * * * *

    3. Section 52.2 is revised to read as follows:


Sec. 52.2  Payment of indemnity.

    (a) Except as provided in paragraph (b) of this section, the 
Administrator is authorized to agree on the part of the Department to 
pay indemnity to the owner of herds of swine destroyed because the 
herds are known to be infected with pseudorabies, or individual 
breeding sows destroyed because they are known to be infected with 
pseudorabies. The amount of indemnity paid, together with the amount 
for net salvage the owner receives when the animals are slaughtered, 
shall not exceed the fair market value of the swine. Such swine must be 
sent directly to slaughter under permit in a conveyance closed with an 
official seal applied and removed by either an APHIS employee, a State 
representative, an accredited veterinarian, or an individual authorized 
for this purpose by an APHIS employee. The swine must be sent to a 
recognized slaughtering establishment.
    (b) If swine from herds that are destroyed because the herds are 
known to be infected with pseudorabies are not accepted at a recognized 
slaughtering establishment, or the owner and an APHIS employee or State 
representative agree they will not be accepted by a recognized 
slaughtering establishment, the Administrator is authorized to pay 100 
percent of the expenses of the purchase, destruction, and disposition 
of such swine.

(Approved by the Office of Management and Budget under control 
number 0579-0151)


    4. In Sec. 52.3, paragraph (a) is revised to read as follows:


Sec. 52.3  Appraisal of swine.

    (a) Herds of swine and individual breeding sows to be destroyed 
because they are known to be infected with pseudorabies will be 
appraised by an APHIS employee and a representative of the State 
jointly, a representative of the State alone, or, if the State 
authorities approve, by an APHIS employee alone.
* * * * *

    5. Section 52.6 is removed, Sec. 52.7 is redesignated as Sec. 52.6, 
Sec. 52.4 is redesignated as Sec. 52.7, Sec. 52.5 is redesignated as 
Sec. 52.4 and revised, and a new Sec. 52.5 is added, to read as 
follows:


Sec. 52.4  Presentation of claims.

    (a) When swine have been destroyed under Sec. 52.2(a), any claim 
for indemnity must be presented, along with the report of net salvage 
proceeds required under Sec. 52.5, to the veterinarian in charge on a 
form furnished by APHIS.
    (b) When swine have been destroyed under Sec. 52.2(b), any claim 
for indemnity must be presented, through the inspector in charge, to 
APHIS on a form furnished by APHIS.
    (c) For all claims for indemnity, the owner of the swine must 
certify on the

[[Page 20712]]

claim form that the swine covered are, or are not, subject to any 
mortgage as defined in this part. If the owner states there is a 
mortgage, the owner and each person holding a mortgage on the swine 
must sign, consenting to the payment of indemnity to the person 
specified on the form.

(Approved by the Office of Management and Budget under control 
number 0579-0137)


Sec. 52.5  Report of net salvage proceeds.

    A report of the amount for net salvage derived from the sale of 
each animal for which a claim for indemnity is made under Sec. 52.2(a) 
must be made on a salvage form that shows the gross receipts, expenses 
if any, and net proceeds. The original or a copy of the salvage form 
must be furnished by the owner to the veterinarian in charge.

(Approved by the Office of Management and Budget under control 
number 0579-0151)

    Done in Washington, DC, this 12th day of April 2000.
Bobby R. Acord,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 00-9668 Filed 4-17-00; 8:45 am]
BILLING CODE 3410-34-U