Livestock Mandatory Reporting: Revision of Lamb Reporting Requirements, 10057-10063 [2016-04047]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 81, Number 39 (Monday, February 29, 2016)]
[Rules and Regulations]
[Pages 10057-10063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04047]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 59

[Doc. No. AMS-LPS-15-0071]
RIN 0581-AD46


Livestock Mandatory Reporting: Revision of Lamb Reporting 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Direct final rule.

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SUMMARY: On April 2, 2001, the U.S. Department of Agriculture's (USDA) 
Agricultural Marketing Service (AMS) implemented the Livestock 
Mandatory Reporting (LMR) program as required by the Livestock 
Mandatory Reporting Act of 1999 (1999 Act). The LMR program was 
reauthorized in October 2006 and again in September 2010. On September 
30, 2015, the Agriculture Reauthorizations Act of 2015 (2015 
Reauthorization Act) reauthorized the

[[Page 10058]]

LMR program for an additional 5 years and directed the Secretary of 
Agriculture (Secretary) to amend the LMR lamb reporting requirements by 
redefining terms within the Code of Federal Regulations not later than 
180 days after enactment. This direct final rule incorporates the lamb 
reporting changes contained within the 2015 Reauthorization Act under 
the USDA LMR regulations.

DATES: Effective Date: This rule is effective May 31, 2016 unless the 
Agency receives substantive adverse comments on or before April 29, 
2016. If any timely substantive adverse comments are received, this 
direct final rule will be withdrawn in part or in whole by publication 
of a document in the Federal Register within 30 days after the comment 
period ends. Pursuant to the Paperwork Reduction Act, comments on the 
information collection burden that would result from this direct final 
rule must be received by April 29, 2016.

ADDRESSES: Comments should be submitted electronically at https://www.regulations.gov. Comments may also be sent to Michael Lynch, 
Director; Livestock, Poultry, and Grain Market News Division; 
Livestock, Poultry, and Seed Program; AMS, USDA, Room 2619-S, STOP 
0252; 1400 Independence Avenue SW., Washington, DC 20250-0251; 
telephone (202) 720-4868; fax (202) 690-3732; or email to 
Michael.Lynch@ams.usda.gov.
    Comments should reference docket number AMS-LPS-15-0071 and the 
date and page number of this issue of the Federal Register. Submitted 
comments will be available for public inspection at https://www.regulations.gov, or during regular business hours at the above 
address. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the Internet at 
the address provided above.
    Comments that specifically pertain to the information collection 
and recordkeeping requirements of this action should also be sent to 
the Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, 725 17th Street NW., Room 725, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Michael Lynch, Director; Livestock, 
Poultry, and Grain Market News Division; Livestock, Poultry, and Seed 
Program; AMS, USDA, Room 2619-S, STOP 0252; 1400 Independence Avenue 
SW., Washington, DC 20250-0251; telephone (202) 720-4868; fax (202) 
690-3732; or email to Michael.Lynch@ams.usda.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    The 1999 Act was enacted into law on October 22, 1999, [Pub. L. 
106-78; 113 Stat. 1188; 7 U.S.C. 1635-1636(i)] as an amendment to the 
Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621 et seq.). 
On April 2, 2001, AMS Livestock, Poultry, and Seed Program's (LPS) 
Livestock, Poultry, and Grain Market News Division (LPGMN) implemented 
the LMR program as required by the 1999 Act. The purpose was to 
establish a program of easily understood information regarding the 
marketing of cattle, swine, lambs, and livestock products; improve the 
price and supply reporting services of the USDA; and encourage 
competition in the marketplace for livestock and livestock products. 
The LMR regulations (7 CFR part 59) set the requirements for certain 
packers or importers to electronically submit purchase and sales 
information of livestock and livestock products to meet this purpose.
    The statutory authority for the program lapsed on September 30, 
2005. In October 2006, Congress passed the Livestock Mandatory 
Reporting Reauthorization Act (2006 Reauthorization Act) [Pub. L. 109-
296]. The 2006 Reauthorization Act re-established the regulatory 
authority for the continued operation of LMR through September 30, 
2010. On July 15, 2008, the LMR final rule became effective (73 FR 
28606, May 16, 2008).
    On September 28, 2010, Congress passed the Mandatory Price 
Reporting Act of 2010 (2010 Reauthorization Act) [Pub. L. 111-239]. The 
2010 Reauthorization Act reauthorized LMR for an additional 5 years 
through September 30, 2015. On January 7, 2013, the LMR final rule 
became effective (77 FR 50561, August 22, 2012).
    On September 30, 2015, the Agriculture Reauthorizations Act of 2015 
(2015 Reauthorization Act) [Pub. L. 114-54] reauthorized the LMR 
program for an additional 5 years and directed the Secretary to revise 
the LMR lamb reporting requirements by modifying the definitions of 
packer and importer within the Code of Federal Regulations not later 
than 180 days after enactment.
    It is found and determined that good cause exists for implementing 
this direct final rule on May 31, 2016. This rule has been determined 
to be a ``non-significant regulatory action'' under section 3(f) of 
Executive Order 12866; and, AMS finds that under 5 U.S.C. 553(b)(3)(B) 
and 808(2) good cause exists to publish a direct final rule without 
prior publication of a notice of proposed rulemaking. The Agriculture 
Reauthorizations Act of 2015 directed the Secretary to revise the LMR 
lamb reporting requirements by redefining terms within the Code of 
Federal Regulations not later than 180 days after enactment which was 
September 30, 2015. This statutory deadline made it impracticable for 
AMS to publish a proposed rule prior to issuing a direct final rule. 
Additionally, prior notice and opportunity for comment are unnecessary 
because the revisions in the direct final rule are based upon lamb 
industry recommendations and AMS does not expect substantive public 
comments for this rulemaking due to the minor nature and minimal impact 
of the revision. The Livestock Marketing Information Center (LMIC), an 
independent provider of economic analyses concerning the livestock 
industry, conducted an analysis of the current LMR program for lamb 
reporting in 2013 at the request of the American Sheep Industry 
Association, an industry organization representing sheep producers 
throughout the U.S. The regulatory revisions within this rulemaking are 
based upon this study.\1\
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    \1\ Hearing to Review Reauthorization of the Livestock Mandatory 
Reporting Act: Hearing before the Subcommittee on Livestock and 
Foreign Agriculture of the Committee on Agriculture, House of 
Representatives, 114th Cong., 1st sess. (Serial No. 114-12). (2015). 
Retrieved from GPO's Federal Digital System: https://www.gpo.gov/fdsys/pkg/CHRG-114hhrg94372/pdf/CHRG-114hhrg94372.pdf.
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    This direct final rule incorporates the lamb reporting changes 
contained within the 2015 Reauthorization Act under the USDA LMR 
regulations. As part of this direct final rule, interested parties may 
submit comments by April 29, 2016. If AMS receives substantive adverse 
comments on the rule, it will evaluate the comment to determine whether 
they are sufficiently compelling to warrant reconsideration of the 
effective date of the rule. Accordingly, this rule will be effective on 
May 31, 2016.
    Section 241 of the 1999 Act gives USDA authority to establish a 
mandatory lamb price reporting program that will: (1) Provide timely, 
accurate, and reliable market information; (2) facilitate more informed 
marketing decisions; and (3) promote competition in the lamb 
slaughtering industry. AMS established submission requirements for lamb 
packers and lamb importers in accordance with this authority based upon 
its extensive knowledge of the lamb industry gained

[[Page 10059]]

through a program of voluntary market information reporting of lamb.
    Under the current LMR regulation, the term packer includes 
federally inspected lamb processing plants that slaughtered or 
processed an average of 75,000 head of lamb during the immediately 
preceding 5 calendar years. Additionally, a lamb processing plant that 
did not slaughter or process an average of 75,000 lambs during the 
immediately preceding 5 calendar years was required to report 
information if the Secretary determined the processing plant should be 
considered a packer based on its capacity. According to the regulation, 
packers are required to report information daily on domestic sales of 
boxed lamb cuts each reporting day including the price and quantity for 
each sale, the type of sale, the USDA grade, trim specification, weight 
range, delivery period, the product state of refrigeration, and any 
branded product characteristics. USDA reports on domestic boxed lamb 
cut sales to the public once each reporting day.
    For any calendar year, a lamb importer who imported an average of 
2,500 metric tons of lamb meat products per year during the immediately 
preceding 5 calendar years is required to report to USDA weekly the 
prices received for imported lamb cuts sold on the domestic market. 
Additionally, the term includes those that did not import an average of 
2,500 metric tons of lamb meat products during the immediately 
preceding 5 calendar years, if USDA determines that the person should 
be considered an importer based on their volume of lamb imports. In the 
original rule, this threshold was an average of 5,000 metric tons of 
lamb meat products during the immediately preceding 5 calendar years, 
but was subsequently lowered to 2,500 metric tons in a final rule 
published in 2004 (69 FR 53784, September 2, 2004). Because there are 
not enough daily sales of imported products to meet the confidentiality 
guidelines and allow USDA to publish daily reports, lamb importers are 
required to report information on a weekly basis for sales of imported 
boxed lamb cuts sold on the domestic market during the prior week 
including the price and quantity for each sale, the type of sale, the 
USDA grade, trim specification, weight range, delivery period, the 
product state of refrigeration, and any branded product 
characteristics.
    Since the implementation of LMR in 2001 and its subsequent 
revisions, the U.S. lamb industry has become more concentrated at all 
levels of the production system through consolidation, impacting AMS' 
ability to publish certain market information in accordance with the 
confidentiality provisions of the 1999 Act. To help address this issue, 
LMIC conducted an analysis of the current LMR program for lamb 
reporting in 2013 at the request of the American Sheep Industry 
Association.\2\ Based on this study, recommendations were proposed to 
amend the current LMR regulations to improve the price and supply 
reporting services of AMS and better align LMR lamb reporting 
requirements with current industry marketing practices. These 
recommendations are the basis for the lamb reporting changes contained 
within the 2015 Reauthorization Act under the USDA LMR regulations.
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    \2\ Hearing to Review Reauthorization of the Livestock Mandatory 
Reporting Act: Hearing before the Subcommittee on Livestock and 
Foreign Agriculture of the Committee on Agriculture, House of 
Representatives, 114th Cong., 1st sess. (Serial No. 114-12). (2015). 
Retrieved from GPO's Federal Digital System: https://www.gpo.gov/fdsys/pkg/CHRG-114hhrg94372/pdf/CHRG-114hhrg94372.pdf.
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    The 2015 Reauthorization Act revised the LMR lamb reporting 
requirements by modifying the definitions of packer and importer 
contained within the Code of Federal Regulations. Under the 2015 
Reauthorization Act, the term ``packer'' includes any person with 50 
percent or more ownership in a facility that slaughtered or processed 
an average of 35,000 lambs during the immediately preceding 5 calendar 
years, or a facility that did not slaughter or process an average of 
35,000 lambs during the immediately preceding 5 calendar years if the 
Secretary determines that the processing plant should be considered a 
packer after considering its capacity.
    In addition, under the 2015 Reauthorization Act, the term 
``importer'' includes any person that imported an average of 1,000 
metric tons of lamb meat products per year during the immediately 
preceding 4 calendar years, or did not import an average 1,000 metric 
tons of lamb meat products during the immediately preceding 4 calendar 
years and the Secretary determines that the person should be considered 
an importer based on their volume of lamb imports.
    For consistency, the establishment of the 1,000 metric tons 
reporting provision on lamb importers will be comparable with the 
35,000 head provision defining a lamb packer for purposes of LMR. The 
1,000 metric tons provision is equal to approximately 2.2 million 
pounds of lamb meat product (1,000 metric tons x 2,204.6 pounds = 
2,204,600 pounds). The 35,000 head provision is equal to approximately 
2.4 million pounds of lamb meat product based upon an average lamb 
carcass weight of 69 pounds (National Agricultural Statistics Service 
data for 2014) (35,000 head x 69 pounds = 2,415,000 pounds).

II. Requirements

    As required by the 2015 Reauthorization Act, the reporting 
requirements for lamb are revised by modifying the definitions of 
packer and importer within the Code of Federal Regulations not later 
than 180 days after enactment. Subpart D of part 59 lists the 
requirements of lamb reporting beginning with Sec.  59.300, 
establishing definitions for terms used throughout the subpart 
including those of packer and importer, which are the entities required 
to report under this rule. Therefore, under this direct final rule, the 
definition of a packer is modified within Sec.  59.300 to include any 
person with 50 percent or more ownership in a facility that slaughtered 
or processed an average of 35,000 lambs during the immediately 
preceding 5 calendar years, or that did not slaughter or process an 
average of 35,000 lambs during the immediately preceding 5 calendar 
years if the Secretary determines that the processing plant should be 
considered a packer after considering its capacity. Additionally, under 
this direct final rule, the definition of an importer is modified 
within Sec.  59.300 to include any person that imported an average of 
1,000 metric tons of lamb meat products per year during the immediately 
preceding 4 calendar years, or did not import an average 1,000 metric 
tons of lamb meat products during the immediately preceding 4 calendar 
years and the Secretary determines that the person should be considered 
an importer based on their volume of lamb imports.
    For entities that did not slaughter or process an average of 35,000 
lambs during the immediately preceding 5 calendar years, AMS will 
project the plant's annual slaughter or production based upon the 
plant's estimate of annual slaughter capacity to determine which 
entities meet the definition of a packer as defined in these 
regulations.
    For importers of lamb meat products, AMS will annually review 
import lamb volume data obtained from the U.S. Customs and Border 
Protection to determine which importers are required to report imported 
lamb information under these regulations.

[[Page 10060]]

III. Classification

Executive Order 12866 and Executive Order 13563

    This direct final rule is being issued by USDA with regard to the 
LMR program in conformance with Executive Orders 12866 and 13563.
    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives, and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    This action has been designated as a ``non-significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget (OMB) has waived the review process for 
this action.

Regulatory Flexibility Act

    In General. This direct final rule has been reviewed under the 
requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-
612). The purpose of RFA is to consider the economic impact of a rule 
on small business entities. Alternatives, which would accomplish the 
objectives of the rule without unduly burdening small entities or 
erecting barriers that would restrict their ability to compete in the 
marketplace, have been evaluated. Regulatory action should be 
appropriate to the scale of the businesses subject to the action. The 
collection of information is necessary for the proper performance of 
the functions of AMS concerning the mandatory reporting of livestock 
information. Information is only available directly from those entities 
required to report under these regulations and exists nowhere else. 
Therefore, this direct final rule does not duplicate market information 
reasonably accessible to the USDA.
    Objectives and Legal Basis. The objective of this direct final rule 
is to improve the price and supply reporting services of the USDA to 
encourage competition in the marketplace for lambs and lamb meat 
products as specifically directed by the 2015 Reauthorization Act and 
these regulations, as described in detail in the background section.
    Estimated Number of Small Businesses. Under the 2015 
Reauthorization Act, a lamb packer includes any person with 50 percent 
or more ownership in a facility that slaughtered or processed an 
average of 35,000 lambs during the immediately preceding 5 calendar 
years, or that did not slaughter or process an average of 35,000 lambs 
during the immediately preceding 5 calendar years if the Secretary 
determines that the processing plant should be considered a packer 
after considering its capacity. Additionally, under the 2015 
Reauthorization Act, a lamb importer includes any person that imported 
an average of 1,000 metric tons of lamb meat products per year during 
the immediately preceding 4 calendar years, or did not import an 
average of 1,000 metric tons of lamb meat products during the 
immediately preceding 4 calendar years if the Secretary determines that 
the person should be considered an importer based on their volume of 
lamb imports. AMS estimates that approximately 1 additional company 
operating 1 lamb slaughtering plant and approximately 3 additional 
firms that import lamb carcasses and/or lamb meat are required to 
report market information under this final rule.
    For this regulatory flexibility analysis, AMS utilized the North 
American Industry Classification System (NAICS), the standard used by 
Federal statistical agencies to classify business establishments for 
the purpose of collecting, analyzing, and publishing statistical data 
related to the U.S. business economy. This analysis compares the size 
of lamb packing companies and importing firms to the NAICS standards to 
determine the percentage of small businesses within the industry 
affected by this rule. Under these size standards, meat packing 
companies with 500 or less employees are considered small business 
entities.\3\ Based on this size standard and its knowledge of the lamb 
industry, AMS estimates that all lamb packing companies currently 
required to report under LMR are considered to be small businesses. As 
such, the additional company affected by this direct final rule under 
the 2015 Reauthorization Act is also considered to be a small business. 
Additionally, the NAICS small business size standard for meat importers 
is 100 or less employees.\4\ Based on its knowledge of the industry and 
previous experience with LMR, AMS estimates that the additional lamb 
importers affected by this direct final rule are classified as small 
businesses under the NAICS standard.
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    \3\ North American Industry Classification System, code 311611 
for abattoirs.
    \4\ North American Industry Classification System, code 424470 
for meat and meat product merchant wholesalers.
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    The LMR regulations require lamb slaughter and processing plants 
and lamb importers of a certain size to report information to the USDA 
at prescribed times throughout the day and week. The LMR regulations 
already exempt many small businesses by the establishment of annual 
slaughter, processing, and import capacity thresholds. Based on figures 
published by the National Agricultural Statistics Service, there were 
522 federally inspected lamb slaughter plants operating in the U.S. at 
the end of 2014. This LMR regulation requires 16 lamb packers and 
importers to report information (less than 2 percent of all federally 
inspected lamb plants and approximately 1 percent of all lamb 
importers). Therefore, approximately 98 percent of lamb packers and 
approximately 99 percent of lamb importers are exempt from reporting 
information by this direct final rule. As previously discussed, this 
final rule does not change this exemption. With regard to alternatives, 
if the definitions of a lamb packer and importer are not changed, AMS 
would continue to be hindered in reporting more accurate and reliable 
information on purchases of slaughter lambs and sales of domestic and 
imported boxed lamb cuts due to information confidentiality 
requirements of the 1999 Act.
    Projected Reporting. The LMR regulations require the reporting of 
specific market information regarding the buying and selling of 
livestock and livestock products. This information is reported to AMS 
by electronic means and the adoption of this direct final rule will not 
affect this requirement. Electronic reporting involves the transfer of 
data from a packer's or importer's electronic recordkeeping system to a 
centrally located AMS electronic database. The packer or importer is 
required to organize the information in an AMS-approved format before 
electronically transmitting the information to AMS. Once the required 
information has been entered into the AMS database, it is aggregated 
and processed into various market reports, which are released according 
to the daily and weekly time schedule set forth in the LMR regulations. 
As an alternative, AMS also developed and made available web-based 
input forms for submitting data online as AMS found that some of the 
smaller entities covered under mandatory price reporting would benefit 
from such a web-based submission system. AMS estimates the total annual 
burden on each lamb packer to be $7,973,

[[Page 10061]]

including $5,406 for annual costs associated with electronically 
submitting data, $699 for startup/annual maintenance costs, and $1,868 
for the storage and maintenance of electronic files submitted to AMS. 
AMS estimates the total annual burden on each importer of lamb to be 
$2,682, including $115 for annual costs associated with electronically 
submitting data, $699 for startup/annual maintenance costs, and $1,868 
for the storage and maintenance of electronic files submitted to AMS.
    This rule does not substantially change these prior estimates. 
Adjusting the 75,000 head provision that establishes those lamb packers 
covered under the LMR regulation to 35,000 head increases the number of 
lamb packers required to report by 1 company; the estimated cost burden 
of $7,973 per packer remains the same. Likewise, the amended 2,500 
metric tons provision that establishes those lamb importers covered 
under the LMR regulations to 1,000 metric tons increases the number of 
lamb importers required to report by 3; the estimated annual cost 
burden of $2,682 per importer remains the same.
    Each packer and importer required to report information to USDA 
under LMR must maintain such records as are necessary to verify the 
accuracy of the information provided to AMS. This includes information 
regarding price, class, head count, weight, quality grade, yield grade, 
and other factors necessary to adequately describe each transaction. 
These records are already kept by the industry. Reporting packers and 
importers are required to maintain and make available the original 
contracts, agreements, receipts, and other records associated with any 
transaction relating to the purchase, sale, pricing, transportation, 
delivery, weighing, slaughter, or carcass characteristics of all 
livestock, and to maintain these records for a minimum of 2 years. 
Packers and importers are not required to report any other new or 
additional information they do not generally have available or 
maintain. Further, they are not required to keep any information that 
would prove unduly burdensome to maintain. The paperwork burden imposed 
on the packers and importers is further discussed in the following 
section entitled Paperwork Reduction Act.
    In addition, AMS has not identified any relevant federal rules 
currently in effect that duplicate, overlap, or conflict with this 
rule. Professional skills required for recordkeeping under the LMR 
regulations are not different than those already employed by the 
reporting entities. Reporting is accomplished using computers or 
similar electronic means. This direct final rule does not affect the 
professional skills required for recordkeeping already employed by the 
reporting entities. Reporting will be accomplished using computers or 
similar electronic means. AMS believes the skills needed to maintain 
such systems are already in place in those small businesses affected by 
this rule.
    Alternatives. This direct final rule requires lamb packing plants 
and lamb importers of a certain size to report information to the 
Secretary at prescribed times throughout the day and week. The 1999 Act 
and these regulations exempt the vast majority of small businesses by 
the establishment of slaughter, processing, and import capacity 
thresholds.
    AMS recognizes that most of the economic impact of this direct 
final rule on those small entities required to report involves the 
manner in which information must be reported to the Secretary. However, 
in developing this direct final rule, AMS considered other means by 
which the objectives of this direct final rule could be accomplished, 
including reporting the required information by telephone, facsimile, 
and regular mail. AMS believes these alternatives are not capable of 
meeting the program objectives, especially timely reporting. The LMR 
regulations prescribe specific times that reporting entities must 
report to AMS and similarly prescribes specific times for publication 
of reports by AMS. AMS believes electronic submission to be the only 
method capable of allowing AMS to collect, review, process, aggregate, 
and publish reports while complying with the specific time-frames set 
forth in the 1999 Act and regulations.
    To respond to concerns of smaller operations, AMS developed a web-
based input form for submitting data online. Based on prior experience, 
AMS found that some of the smaller entities covered under mandatory 
price reporting would benefit from such a Web-based submission system. 
Accordingly, AMS developed such a system for program implementation.
    Additionally, to further assist small businesses, AMS may provide 
for an exception to electronic reporting in emergencies, such as power 
failures or loss of Internet accessibility, or in cases when an 
alternative is agreeable between AMS and the reporting entity.
    Other than these alternatives, there are no other practical and 
feasible alternatives to the methods of data transmission that are less 
burdensome to small businesses. AMS will continue to work actively with 
those small businesses required to report and provide the technical 
assistance needed, in an effort to minimize the burden on them to the 
maximum extent practicable.

Paperwork Reduction Act

    In accordance with OMB regulations (5 CFR part 1320) that implement 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), the 
information collection requirements included in 7 CFR part 59 were 
previously approved by OMB and were assigned control number 0581-0186 
Livestock Mandatory Reporting Act of 1999. The purpose of this direct 
final rule is to amend the LMR regulations to modify the requirement 
for the submission of information on domestic and imported lamb sales. 
All other provisions of the LMR regulations remain the same.
    Adjusting the 75,000 head provision that establishes those lamb 
packers covered under the LMR regulation to 35,000 head, increases the 
number of lamb packers required to report from 7 to 8; likewise, the 
amended 2,500 metric tons provision that establishes those lamb 
importers covered under the LMR regulations to 1,000 metric tons 
increases the number of lamb importers required to report from 5 to 
8.\5\ This change does not substantially impact the overall total 
burden hours from the increase of 4 entities and 16 plants 
(respondents).
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    \5\ The 4 additional entities reporting under the amended 
requirements own multiple plants, each of which are reflected as 
individual respondents under the previously approved 0581-0186.
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    The new collective overall burden for this collection is as 
follows:
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average .172 hours per response.
    Respondents: Business or other for profit entities, individuals or 
households, farms, and the Federal Government.
    Estimated Number of Respondents: 438 respondents.
    Estimated Number Responses: 139,776 responses.
    Estimated Number of Responses per Respondent: 319 responses.
    Estimated Total Annual Burden on Respondents: 24,055 hours.
    New Estimate of Burden: Public reporting burden for this collection 
of information is estimated to average .23 hours per response.
    Respondents: Business or other for profit entities, individuals or 
households, farms, and the Federal Government.
    Estimated Number of Respondents: 16 respondents.

[[Page 10062]]

    Estimated Number Responses: 1,248 responses.
    Estimated Number of Responses per Respondent: 78 responses.
    Estimated Total Annual Burden on Respondents: 289 hours.
    Upon publication of this direct final rule, AMS will submit a 
Justification for Change to OMB for approval of an increase in number 
of respondents and an increase in burden hours for the following forms 
under the currently approved OMB 0581-0186 Livestock Mandatory 
Reporting Act of 1999: LS-121 Live Lamb Daily Report--Current 
Established Prices, LS-123 Live Lamb Weekly Report, LS-124 Live Lamb 
Weekly Report--Formula Purchases, LS-125 Lamb Premiums and Discounts 
Weekly Report, LS-128 Boxed Lamb Daily Report, and LS-129 Lamb Carcass 
Report.
    AMS is committed to implementation of the Government Paperwork 
Elimination Act which provides for the use of information resources to 
improve the efficiency and effectiveness of governmental operations, 
including providing the public with the option of submitting 
information or transacting business electronically to the extent 
practicable. AMS believes the burden savings resulting from 
electronically compiling and submitting a reduced number of sales 
transactions to be negligible.
    It is hereby found that this direct final rule, as hereinafter set 
forth, is consistent with and will effectuate the declared policy of 
the Livestock Mandatory Reporting Act of 1999 and the Agriculture 
Reauthorizations Act of 2015.

Executive Order 12988

    This direct final rule has been reviewed under Executive Order 
12988, Civil Justice Reform. This direct final rule is not intended to 
have retroactive effect. Section 259 of the 1999 Act prohibits States 
or political subdivisions of a State to impose any requirement that is 
in addition to, or inconsistent with, any requirement of the 1999 Act 
with respect to the submission or reporting of information, or the 
publication of such information, on the prices and quantities of 
livestock or livestock products. In addition, the 1999 Act does not 
restrict or modify the authority of the Secretary to administer or 
enforce the Packers and Stockyards Act of 1921 (7 U.S.C. 181 et seq.); 
administer, enforce, or collect voluntary reports under the 1999 Act or 
any other law; or access documentary evidence as provided under 
Sections 9 and 10 of the Federal Trade Commission Act (15 U.S.C. 49, 
50). There are no administrative procedures that must be exhausted 
prior to any judicial challenge to the provisions of this direct final 
rule.

Civil Rights Review

    AMS has considered the potential civil rights implications of this 
direct final rule on minorities, women, or persons with disabilities to 
ensure that no person or group shall be discriminated against on the 
basis of race, color, national origin, gender, religion, age, 
disability, sexual orientation, marital or family status, political 
beliefs, parental status, or protected genetic information. This review 
included persons who are employees of the entities that are subject to 
this regulation. This direct final rule does not require affected 
entities to relocate or alter their operations in ways that could 
adversely affect such persons or groups. Further, this direct final 
rule will not deny any persons or groups the benefits of the program or 
subject any persons or groups to discrimination.

Executive Order 13132

    This direct final rule has been reviewed under Executive Order 
13132, Federalism. This Order directs agencies to construe, in 
regulations and otherwise, a Federal Statute to preempt State law only 
when the statute contains an express preemption provision. This direct 
final rule is required by the 1999 Act. Section 259 of the 1999 Act, 
Federal Preemption states, ``In order to achieve the goals, purposes, 
and objectives of this title on a nationwide basis and to avoid 
potentially conflicting State laws that could impede the goals, 
purposes, or objectives of this title, no State or political 
subdivision of a State may impose a requirement that is in addition to, 
or inconsistent with, any requirement of this subtitle with respect to 
the submission or reporting of information, or the publication of such 
information, on the prices and quantities of livestock or livestock 
products.''
    Prior to the passage of the 1999 Act, several States enacted 
legislation mandating, to various degrees, the reporting of market 
information on transactions of cattle, swine, and lambs conducted 
within that particular State. However, since the federal LMR program 
was implemented on April 2, 2001, these State programs are no longer in 
effect. Therefore, there are no federalism implications associated with 
this rulemaking.

Executive Order 13175

    This direct final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. AMS has considered the potential 
implications of this direct final rule to ensure this regulation will 
not have substantial and direct effects on Tribal governments and will 
not have significant Tribal implications.

List of Subjects in 7 CFR Part 59

    Cattle, Hogs, Lamb, Livestock, Sheep.

    For the reasons set forth in the preamble, title 7, part 59 is 
amended as follows:

PART 59--LIVESTOCK MANDATORY REPORTING

0
1. The authority citation for 7 CFR part 59 continues to read as 
follows:

    Authority:  7 U.S.C. 1635-1636i.


0
2. Section 59.300 is amended by revising the definitions for 
``Importer'' and ``Packer'' to read as follows:


Sec.  59.300  Definitions.

* * * * *
    Importer. The term ``importer'' means any person engaged in the 
business of importing lamb meat products with the intent to sell or 
ship in U.S. commerce. For any calendar year, the term includes only 
those that imported an average of 1,000 metric tons of lamb meat 
products per year during the immediately preceding 4 calendar years. 
Additionally, the term includes those that did not import an average 
1,000 metric tons of lamb meat products during the immediately 
preceding 4 calendar years, if the Secretary determines that the person 
should be considered an importer based on their volume of lamb imports.
    Packer. The term ``packer'' means any person with 50 percent or 
more ownership in a facility engaged in the business of buying lambs in 
commerce for purposes of slaughter, of manufacturing or preparing meat 
products from lambs for sale or shipment in commerce, or of marketing 
meats or meat products from lambs in an unmanufactured form acting as a 
wholesale broker, dealer, or distributor in commerce. For any calendar 
year, the term includes only a federally inspected lamb processing 
plant which slaughtered or processed the equivalent of an average of 
35,000 head of lambs per year during the immediately preceding 5 
calendar years. Additionally, the term includes a lamb processing plant 
that did not slaughter or process an average of 35,000 lambs during the 
immediately preceding 5 calendar years if the Secretary

[[Page 10063]]

determines that the processing plant should be considered a packer 
after considering its capacity.
* * * * *

    Dated: February 22, 2016.
Elanor Starmer,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2016-04047 Filed 2-26-16; 8:45 am]
 BILLING CODE 3410-02-P