Expenses Associated With Transporting and Disposing of Tuberculosis-Exposed Animals

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 50

[Docket No. 97-061-1]

Expenses Associated With Transporting and Disposing of

Tuberculosis-Exposed Animals

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 allow the U.S. Department of Agriculture to

pay herd owners some of their expenses for transporting tuberculosis-

exposed cattle, bison, and cervids to slaughter or to the point of

disposal, and for disposing of the animals. Prior to this interim rule,

herd owners could only receive help with these costs for affected

animals. Consequently, herd owners in some cases elected to keep

exposed animals in a herd until testing revealed them to be either free

of tuberculosis or affected with tuberculosis, or elected not to

depopulate an affected herd, providing opportunity for further spread

of the disease. This interim rule also makes minor changes to the

provisions for paying some of the expenses for transporting

tuberculosis-affected animals to the point of disposal and disposing of

them. This interim rule is necessary to ensure continued progress

toward eradicating tuberculosis in the U.S. livestock population.

DATES: Interim rule effective September 17, 1997. Consideration will be

given only to comments received on or before November 24, 1997.

ADDRESSES: Please send an original and three copies of your comments to

Docket No. 97-061-1, 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. 97-061-1. 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. Mitchell A. Essey, Senior Staff

Veterinarian, National Animal Health Programs, VS, APHIS, 4700 River

Road Unit 36, Riverdale, MD 20737-1231, (301) 734-7727.

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, cervids, and swine destroyed because of tuberculosis.

As part of the program to control and eradicate tuberculosis in

livestock, the payment of indemnity is intended to provide owners with

an incentive for promptly destroying cattle, bison, and cervids that

are affected with or exposed to tuberculosis and, in limited cases,

swine that are 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.

As set forth in Sec. 50.4 of the regulations, cattle, bison, and

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 other diagnostic procedure approved in

advance by the Administrator of APHIS. Cattle, bison, and cervids are

classified as exposed to tuberculosis when such cattle, bison, and

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

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apparently become affected, or (3) are found to have been exposed by

virtue of nursing an affected dam.

For affected cattle, bison, and cervids eligible for indemnity, the

regulations provide for Federal help in paying a portion of the

expenses incurred by owners in transporting the animals to the point of

disposal, and disposing of the animals (see Sec. 50.8). However, there

are no similar provisions for paying a portion of the expenses of

transporting tuberculosis-exposed cattle, bison, and cervids to

slaughter or to the point where disposal will take place, or disposing

of these animals.

When the provisions concerning payment of expenses for transporting

and disposing of affected animals were added to the regulations in

1980, it was done because many slaughtering establishments were

refusing to accept affected animals, and the animals often had to be

shipped long distances to slaughtering plants that would accept them,

or had to be disposed of by other means, such as by burial,

incineration, or rendering. The refusal to take affected animals was

due, at least in part, to the requirement that meat taken from affected

animals and intended for consumption be cooked, for public health

reasons, thereby increasing slaughtering costs and reducing the value

of the meat. Most slaughtering establishments continued to accept

tuberculosis-exposed animals, however, because meat from a

tuberculosis-exposed animal may be used without restriction if the

animal is found free of tuberculosis upon inspection at slaughter.

Today, however, the incidence of tuberculosis in the United States

has declined markedly. As we approach eradication, far fewer animals,

either affected with or exposed to tuberculosis, are moving to

slaughter. Many slaughtering establishments are not willing to take

even tuberculosis-exposed animals. Consequently, tuberculosis-exposed

animals must sometimes be shipped long distances to slaughtering plants

that will accept them. In such cases, rather than pay for such long-

distance shipping, some owners opt to keep the exposed animals in their

herd until testing reveals them to be either free of tuberculosis or

affected with tuberculosis, or elect not to depopulate an affected

herd. This ``wait and see'' approach provides opportunity for the

disease to progress and spread, particularly in herds that have

received an animal subsequently identified as tuberculosis-exposed.

It is possible that, if the number of slaughtering establishments

willing to take exposed animals declines further, some owners of

exposed animals may need to find other means of disposal. And whereas

slaughtering establishments generally pay some salvage value for the

meat from exposed animals, owners having to dispose of their animals by

other means would have to pay all costs for that disposal and could

expect no salvage value from their animals. Under these circumstances,

owners might choose to keep exposed animals in the herd, thereby

impeding tuberculosis eradication efforts in the United States.

Therefore, we are amending Sec. 50.8 to allow the Department to pay

herd owners some of their expenses associated with transporting

tuberculosis-exposed cattle, bison, and cervids to slaughter or to the

point where disposal will take place, and disposing of the animals. We

believe this action is necessary to ensure continued progress toward

eradicating tuberculosis in the United States. Specifically, the

regulations, as amended, will allow the Department to pay herd owners

one-half the expenses of transporting tuberculosis-exposed cattle,

bison, and 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.

Section 50.8 has contained provisions, applicable to owners of

tuberculosis-affected animals, requiring (1) that claims for payment of

transportation or disposal expenses be made on forms furnished by

APHIS, (2) that the forms be signed by an APHIS or State

representative, or jointly by them, and (3) that the owner of the

animals also sign the forms certifying acceptance of the amount

claimed. APHIS will no longer require use of special claims forms for

payment of expenses for disposal or transportation of tuberculosis-

affected animals. Rather, the owner will be asked simply to document

those expenses by submitting to the Veterinarian in Charge a copy of

either a receipt for expenses paid or a bill for services rendered.

Therefore, we are amending Sec. 50.8 to remove the provisions

concerning forms for payment of expenses for disposal or transportation

of tuberculosis-affected animals. Instead, Sec. 50.8 will require

owners of affected animals to present the APHIS Veterinarian in Charge

with a copy of either a receipt for expenses paid or a bill for

services rendered.

We are also amending Sec. 50.8 to allow the Department to pay herd

owners more than one-half of the expenses for transporting

tuberculosis-affected cattle, bison, and cervids to slaughter or to the

point where disposal will take place, and disposing of the animals,

when the Administrator of APHIS determines that doing so will

contribute to the tuberculosis eradication program.

Finally, we are amending Sec. 50.8 to remove the provision that the

Department will not pay any portion of expenses of transporting or

disposing of affected animals when the transportation or disposal is

provided by the owner of the affected animals. This no longer appears

to be a necessary prohibition because owners can often provide

transportation and carry out disposal for less money than they would

have to pay someone else to do it.

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

tuberculosis-exposed animals from U.S. livestock herds. Of particular

concern at this time is the prompt removal and destruction of

tuberculosis-exposed cattle on the Island of Molokai, in Hawaii, where

tuberculosis was recently confirmed in one herd of cattle. Because

wildlife on this small island intermingles with the cattle, the cattle

must be removed as quickly as possible to minimize the risk that

tuberculosis will be spread both to wildlife and to cattle in

neighboring herds. Outlets for tuberculosis-exposed animals in Hawaii

are very limited and, for animals that have not yet reached market

weight, nonexistent. About 160 animals in the affected herd on Molokai

have not reached market weight and must be transported to the U.S.

mainland for slaughter at considerable expense to the owner. This

interim rule is necessary to assist the owner with transportation costs

so that the cattle can be promptly removed from the island to minimize

the potential spread of tuberculosis.

Because prior notice and other public procedures with respect to

this action

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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 publication in the Federal Register. We will consider comments

that are received within 60 days of publication of this rule in the

Federal Register. After the comment period closes, we will publish

another document in the Federal Register. 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 allow the Department to pay herd

owners one half of their expenses for transporting tuberculosis-exposed

animals to slaughter or to the point of disposal, and for disposing of

the animals. It also allows the Department to pay more than one half of

the expenses for transporting and disposing of tuberculosis-affected or

tuberculosis-exposed animals, when the Administrator of APHIS

determines that doing so will contribute to the tuberculosis

eradication program in the United States, and allows herd owners to be

reimbursed for one half of their expenses for transporting or disposing

of exposed or affected animals when the transportation or disposal is

provided by the owner of the animals.

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, on a healthy livestock industry. The industry's role

in the economy is significant. For example, the total value of U.S.

livestock output in l991 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 totalled $4.3

billion in l991, equivalent to 10 percent of the value of all U.S.

agricultural exports that year. In l996, there were 1,194,390 U.S.

operations with cattle and calves, and the inventory of cattle and

calves at the end of that year stood at 101.2 million head. The value

of cattle and calves in the United States in l996 was more than $52

billion.

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

l972, concluded that the benefits of the tuberculosis eradication

program exceeded costs by a 3.64 to 1 margin.

APHIS's costs for administering this interim rule are not expected

to exceed $67,500 annually, based on the following: We estimate that

the average cost of transporting a tuberculosis-exposed animal to

slaughter would be $50. In most cases, APHIS would pay one half of that

cost, or $25. We estimate that approximately 2,000 tuberculosis-exposed

cattle, bison, and cervids may be moved to slaughter or other point of

disposal during the first year after this rule is effective, and that

we would pay approximately $25 each toward transportation for three

quarters of them, and an average of $50 each for one quarter of them.

Costs would be lower in succeeding years as the prevalence of

tuberculosis declines in the United States.

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.

The 2,000 tuberculosis-exposed animals that we estimate might be

moved to slaughter or other disposal during the first year of this

program represent about 20 different herds. About 4 of these herds,

with 200-400 animals each, may be depopulated. The remainder of the

herds are expected to send only a few animals each to slaughter. We

estimate that no more than 15 of the herds are owned by entities that

would be considered ``small'' under criteria (fewer than 200 cattle

each) established by the Small Business Administration.

Under these circumstances, the Administrator of APHIS 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).

2. Section 50.8 is revised to read as follows:

Sec. 50.8 Payment of expenses for transporting and disposing of

affected and exposed animals.

The Department may pay, when approved in advance in writing by the

Veterinarian in Charge, one half the expenses of transporting affected

or exposed cattle, bison, and cervids to slaughter or to the point

where disposal will take place, and one half the expenses of

destroying, burying, incinerating, rendering, or otherwise disposing of

affected or exposed cattle, bison, and cervids; Provided that, the

Department may pay more than one-half of the expenses when the

Administrator determines that doing so will contribute to the

tuberculosis eradication program. For reimbursement to be made, the

owner of the animals must present the 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 must not be

greater than the normal fee for similar services provided by a

commercial hauler or renderer.

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Done in Washington, DC, this 17th day of September 1997.

Craig A. Reed,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 97-25214 Filed 9-22-97; 8:45 am]

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