Livestock Mandatory Reporting: Reauthorization of Livestock Mandatory Reporting and Revision of Swine and Lamb Reporting Requirements, 52969-52974 [2016-19040]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 81, Number 155 (Thursday, August 11, 2016)]
[Rules and Regulations]
[Pages 52969-52974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19040]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 81, No. 155 / Thursday, August 11, 2016 / 
Rules and Regulations

[[Page 52969]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 59

[Doc. #AMS-LPS-15-0070]
RIN 0581-AD45


Livestock Mandatory Reporting: Reauthorization of Livestock 
Mandatory Reporting and Revision of Swine and Lamb Reporting 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

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 September 2010. On September 30, 2015, 
the Agriculture Reauthorizations Act of 2015 (2015 Reauthorization Act) 
reauthorized the LMR program for an additional 5 years until September 
30, 2020, and directed the Secretary of Agriculture (Secretary) to 
amend the LMR swine reporting requirements. This final rule 
incorporates the swine reporting revisions contained within the 2015 
Reauthorization Act and a minor revision to the lamb reporting 
requirements under the Agricultural Marketing Act of 1946, USDA 
Livestock Mandatory Reporting regulations.

DATES: This final rule is effective October 11, 2016.

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 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, the 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 packers or 
importers to 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] was enacted; it 
reauthorized the LMR program for an additional 5 years through 
September 30, 2020, and amended the reporting requirements for swine 
purchase types and late afternoon swine purchases. On February 29, 
2016, AMS published a proposed rule for these swine reporting changes 
and for changes to lamb reporting requirements as requested by the lamb 
industry which included new definitions and requirements for packers to 
report lambs committed for future delivery to the packer and prices of 
pelts paid to the producer and an amendment to the definition of 
packer-owned lambs (81 FR 10132, February 29, 2016). The proposed rule 
included a 60-day comment period. AMS received 11 timely comments. Nine 
were substantive and relevant and two were outside the scope of 
regulation.
    This final rule incorporates the swine reporting revisions 
contained within the 2015 Reauthorization Act and the lamb reporting 
revision to amend the definition of packer-owned lambs as requested by 
the lamb industry, under the USDA LMR regulations. Based on the 
comments received, AMS chose not to incorporate in this final rule the 
proposed reporting revisions concerning lambs committed for future 
delivery and prices of pelts paid to producers due to the burden 
increase on the packers affected by this rule and the possible negative 
implications on U.S. trade within domestic and international markets.

II. Comments and Responses

    AMS received nine relevant comments from organizations representing 
livestock producers and meat packers and processors. A review of AMS 
responses to the comments follows below.

Swine

    Summary of Comments: Two commenters supported reporting negotiated 
formula purchases and the publication of late afternoon barrow and gilt 
purchases in reports issued the following day. These commenters noted 
that these revisions should provide more information about buyer/seller 
interactions indicating the manner in which swine is marketed and 
increase the volume of barrow and gilt data able to be published in 
daily purchase reports.
    Agency Response: AMS made no changes.

Lamb--Lambs Committed

    Summary of Comments: Two commenters supported the requirement to 
report lambs committed, one commenter requested clarification 
concerning the specificity of the number of animals and the date of 
delivery

[[Page 52970]]

reported, and four commenters, representing a majority of the entities 
affected by this requirement opposed this requirement. The opposing 
commenters requested AMS reconsider this revision. Of the opposing 
commenters, two stated that the requirement would be overly burdensome 
and exceed the scope of the LMR program as it could change the manner 
in which purchase contracts are written and implemented. One commenter 
stated that commitments or schedules to deliver lambs vary based on 
factors including feedlot performance, weather, transportation 
availability, feed availability, producer management, plant capacity, 
and customer demand for lambs and therefore would be difficult to 
report. This commenter also stated that the reporting requirement would 
require a significant amount of recordkeeping to maintain compliance. 
Other commenters noted that the requirement would provide too much 
market intelligence about the domestic lamb packing industry regarding 
packer buying positions and would therefore be detrimental to the U.S. 
lamb industry putting it at a competitive disadvantage to importers of 
Australian and New Zealand lamb.
    Agency Response: AMS recognizes the value of information this 
requirement could provide for the industry; however, the domestic and 
international trade implications raise serious concerns. Therefore, AMS 
has removed the aforementioned provision for the reporting requirement 
concerning lambs committed from this final rule.

Lamb--Pelts

    Summary of Comments: Two commenters supported the requirement to 
report lamb pelts noting voluntary reporting of pelt market 
interactions between packers and pelt processors has become static and 
no longer indicative of current marketing practices due to 
consolidation of the lamb packing and pelt processing industries. 
Furthermore, these commenters noted that the requirement to report 
volumes and prices for pelts paid to the producer by the packer, 
instead of the current voluntary practice of providing market 
interactions between the packer and pelt processor, would provide 
producers with market information to better determine the whole value 
of a slaughter lamb. One commenter requested clarification about 
whether the requirement would apply to each lot of animals or 
individual animals. Three commenters, representing a majority of the 
entities affected by this requirement, were opposed to the requirement, 
noting the increase in burden on the reporting entities with little or 
no benefit to the industry. These opposing commenters acknowledged the 
importance of reporting market information for pelts and stressed the 
point that AMS currently reports the pelt market on a voluntary basis; 
therefore, they suggested that mandatory pelt reporting would be 
redundant. Commenters opposing this provision noted that grouping pelts 
into the proposed classification categories within each lot would be 
difficult and time-consuming because pelts are sorted by a third-party 
based on quality characteristics inconsistent with the classification 
categories in the proposed rule. Also, the commenters opposing the 
revision suggested that compliance with the requirement would be 
subjective and difficult to verify since there are no standard pelt 
grades used consistently throughout the industry. Two of the opposing 
commenters explained that pelts are typically sent to another part of a 
plant after removal and therefore impossible to match pelt information 
with specific animals. Another commenter expressed that considering the 
consolidation of the U.S. pelt processing industry, this provision to 
require detailed pelt reporting, and thereby increase market 
transparency, could negatively affect trade by providing a competitive 
advantage to international buyers of pelts.
    Agency Response: AMS recognizes the value of information on the 
pelt market this provision could provide for the industry. However, the 
concerns raised by the commenters about the burden and difficulty in 
meeting this requirement with limited benefit to the industry cannot be 
overlooked. Therefore, AMS has removed the aforementioned provision for 
the reporting requirement concerning pelts from this final rule.

Lamb--Packer-Owned Lambs

    Summary of Comments: One commenter supported the revision of the 
definition of packer-owned lambs to include animals a packer owns for 
at least 28 days immediately before slaughter. The commenter noted this 
revised definition would help address the need to amend current 
reporting for lambs in order to provide useful market information 
readily understood by producers and improve AMS market reporting 
services.
    Agency Response: AMS made no changes.

III. Final Revisions

    Under the LMR regulations, certain cattle, swine and lamb packers 
and processors, and lamb importers are required to report purchases of 
livestock for slaughter and sales of meat products to AMS. This final 
rule amends the LMR regulations for swine reporting and lamb reporting 
requirements as described below.

Swine

    The swine reporting requirement revisions within this final rule 
are authorized through the 2015 Reauthorization Act. This final rule 
minimally increases the reporting burden for swine packers.
    Swine packers are required to report purchase data by four types of 
purchase: negotiated purchase, other market formula purchase, swine or 
pork market formula purchase, or other purchase arrangement. A 
`negotiated purchase' is a cash or spot market purchase by a packer 
under which the base price for the swine is determined by seller-buyer 
interaction and agreement on a delivery day; and the swine are 
scheduled for delivery to the packer not more than 14 days after the 
date on which the swine are committed to the packer. An `other market 
formula purchase' is a purchase of swine by a packer in which the 
pricing mechanism is a formula price based on any market other than the 
market for swine, pork, or pork product, and includes a formula 
purchase in a case where the price formula is based on one or more 
futures or options contracts. A `swine or pork market formula purchase' 
is a purchase of swine by a packer in which the pricing mechanism is a 
formula price based on a market for swine, pork, or pork product, other 
than a future or option for swine, pork, or pork product. An `other 
purchase arrangement' is a purchase of swine by a packer that is not a 
negotiated purchase, swine or pork market formula purchase, or other 
market formula purchase, and does not involve packer-owned swine.
    The 2015 Reauthorization Act amended the swine reporting 
requirements, subpart C of part 59, by adding an additional purchase 
type definition for negotiated formula purchases of swine, which 
requires swine packers to report swine purchased on a negotiated 
formula basis as a separate purchase type. As defined in Sec.  59.200, 
the term ``negotiated formula'' is a swine or pork market formula 
purchase under which the formula is determined by negotiation on a lot-
by-lot basis, and swine are scheduled for delivery to the packer not

[[Page 52971]]

later than 14 days after the date on which the formula is negotiated 
and swine are committed to the packer. Packers will be required to 
report any swine purchased in this manner as a negotiated formula 
purchase.
    Adding a negotiated formula purchase type provides market 
participants with more specific information about the various purchase 
methods used in the daily marketing of swine and a better understanding 
of the marketplace concerning formulated prices and spot negotiated 
prices.
    Packers are required to report purchase data for barrows and gilts 
for a morning report not later than 10 a.m. Central time and an 
afternoon report not later than 2 p.m. Central time. The information to 
be reported is the same for the morning and afternoon reports and 
includes an estimate of the total number of barrows and gilts purchased 
by each type of purchase, the total number of barrows and gilts 
purchased, the base price paid for all negotiated purchases of barrows 
and gilts, and the base price paid for each type of purchase of barrows 
and gilts other than through a negotiated purchase. This information 
must be submitted for all covered transactions that occur within one-
half hour of each specified reporting time. Packers completing 
transactions during the half-hour prior to the previous reporting time 
report those transactions at the next prescribed reporting time.
    The 2015 Reauthorization Act directed the Secretary to include in 
the morning and afternoon daily reports for the following day, the 
purchase information for any barrows and gilts purchased or priced 
after the afternoon reporting time of the current reporting day. Under 
this final rule, the required information reported remains the same for 
the morning and afternoon reports; however, the morning report 
requirements under Sec.  59.202 now requires packers to report purchase 
data for barrows and gilts purchased after 1:30 p.m. Central time of 
the previous reporting day and up to that time of the reporting day for 
the total number of barrows and gilts purchased, the base price paid 
for all negotiated purchases of barrows and gilts, and the base price 
paid for each type of purchase of barrows and gilts other than through 
a negotiated purchase. Under this final rule, the LMR regulations for 
the afternoon reporting requirements remain unchanged. The inclusion of 
the late afternoon swine purchase information in the following day's 
reports increases the volume of barrows and gilts shown in the daily 
morning and afternoon purchase reports and better represents the daily 
market conditions.

Lamb

    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, 
the Livestock Marketing Information Center, 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.\1\ 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 change as proposed by the lamb industry for this final rule.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    The revision to the lamb reporting requirements, subpart D of part 
59, is an amended definition under Sec.  59.300 for the term ``packer-
owned lambs.'' This final rule amends the definition for the term 
``packer-owned lambs'' to cover lambs owned by a packer for at least 28 
days immediately before slaughter.

Appendices

    The last section of this document contains three appendices; the 
proposed rule contained four. As explained in section II above, based 
on the comments received, AMS chose not to incorporate in this final 
rule the proposed reporting revisions concerning lambs committed for 
future delivery and prices of pelts paid to producers. Therefore, AMS 
deleted appendix B in its entirety, removed all references to lamb 
forms in appendices C and D, and re-lettered appendices C and D as 
appendices B and C, respectively. Appendix A lists the forms used by 
swine packers required to report information under the LMR program. 
Appendix B provides a description of the forms, while appendix C 
contains the actual reporting forms. These appendices will not appear 
in the Code of Federal Regulations.
    With this final rule, all form and guideline identification numbers 
associated with the LMR program are updated to reflect the change in 
the program name from the AMS Livestock and Seed Program (LS) to the 
AMS Livestock, Poultry, and Seed Program (LPS); therefore, form number 
designations are changed from LS-XXX to LPS-XXX. This change to the 
form numbers is included in the request for an extension of a currently 
approved information collection for OMB 0581-0186 (Commodities Covered 
by the Livestock Mandatory Reporting Act of 1999); and in the 
appendices of this final rule.
    Amendments to two swine reporting forms, LPS-118 Swine Prior Day 
Report and LPS-119 Swine Daily Report, were made to include the new 
purchase type under this final rule, ``negotiated formula purchase.'' 
One form for swine reporting, LPS-119 Swine Daily Report, requires an 
amendment to the description of the form to include the reporting of 
the late afternoon purchased barrows and gilts from the previous 
reporting day in the following reporting day's daily reports, as shown 
in appendix B.

IV. Classification

Executive Order 12866 and Executive Order 13563

    This 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 has waived the review process for this 
action.

Regulatory Flexibility Act

    In General. This final rule was reviewed under the requirements of 
the Regulatory Flexibility Act (RFA) (5

[[Page 52972]]

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 final rule does not duplicate market 
information reasonably accessible to the USDA.
    Objectives and Legal Basis. The objective of this final rule is to 
improve the price and supply reporting services of the USDA in order to 
encourage competition in the marketplace for swine and lambs as 
specifically directed by the 2015 Reauthorization Act and the lamb 
industry requested revisions as authorized through the 1999 Act and 
these regulations, as described in detail in the background section.
    Estimated Number of Small Businesses. For this regulatory 
flexibility analysis, AMS utilized the North American Industry 
Classification System (NAICS), which is 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 meat packing companies to the NAICS standards to determine the 
percentage of small businesses within the industry affected by this 
final rule. Under these size standards, meat packing companies with 500 
or less employees are considered small business entities.\2\
---------------------------------------------------------------------------

    \2\ North American Industry Classification System, code 311611 
for abattoirs.
---------------------------------------------------------------------------

    This final rule amends the reporting requirements for swine packers 
by adding a new purchase type for negotiated formula purchases of 
barrows and gilts, and including late afternoon purchases of barrows 
and gilts from the previous reporting day in the morning and afternoon 
daily reports of the current reporting day. For swine packers, this 
final rule applies only to federally inspected swine processing 
facilities that slaughtered an average of at least 100,000 swine per 
year during the immediately preceding 5 calendar years and a person 
that slaughtered an average of at least 200,000 sows, boars, or 
combination thereof per year during the immediately preceding 5 
calendar years. Additionally, in the case of a swine processing plant 
or person that did not slaughter swine during the immediately preceding 
5 calendar years, it would be considered a packer if the Secretary 
determines the processing plant or person should be considered a packer 
under this subpart after considering its capacity.
    Approximately 36 individual pork packing companies representing a 
total of 55 individual plants are required to report information to 
AMS. Based on the NAICS size standard for meat packing companies with 
500 or less employees, AMS estimates that 24 of these 36 pork packing 
companies would be considered small businesses, representing 27 
individual plants that are required to report. The figure of 55 plants 
required to report represents 8.9 percent of the federally inspected 
swine plants in the U.S. The remaining 91.1 percent of swine plants, 
nearly all estimated to qualify as small business, are exempt from 
mandatory reporting.
    To implement the swine reporting changes in this final rule, AMS 
estimated the total annual burden on each swine packer to be $108, 
which includes the annual share of initial startup costs of $415. There 
is no annual cost increase associated with electronically submitting 
data or for the storage and maintenance of electronic files submitted 
to AMS due to this final rule.
    For lamb reporting, this final rule amends the definition of the 
term ``packer-owned lambs'' to include lambs owned by a packer for at 
least 28 days immediately before slaughter.
    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.
    The LMR regulations require 10 lamb packers to report information, 
which is less than 2 percent of all federally inspected lamb plants. 
Therefore, approximately 98 percent of lamb packers are exempt from 
reporting information by this final rule. Based on the NAICS size 
standard for meat packing companies with 500 or less employees and its 
knowledge of the lamb industry, AMS estimates that all lamb packing 
companies currently required to report under LMR would be considered 
small businesses. As this final rule amends a definition and does not 
impose additional burdens, AMS estimates no costs to implement the lamb 
reporting changes in this final rule. There is no annual cost increase 
associated with electronically submitting data or for the storage and 
maintenance of electronic files submitted to AMS due to this final 
rule.
    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 this final rule does 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.
    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 two 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.

[[Page 52973]]

    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 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 final rule requires swine and lamb packing 
plants 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 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 final rule, AMS considered other means by which the objectives of 
this final rule could be accomplished, including reporting the required 
information by telephone, facsimile, and regular mail. 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 
regulation.
    To respond to the 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 work actively with those small 
businesses required to report and minimize the burden on them to the 
maximum extent practicable.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), we included the changes in reporting and recordkeeping 
requirements for 7 CFR part 59 associated with this action into the 
program's request for an extension of a currently approved information 
collection for OMB 0581-0186 (Commodities Covered by the Livestock 
Mandatory Reporting Act of 1999).

Executive Order 12988

    This final rule was reviewed under Executive Order 12988, Civil 
Justice Reform. This 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 final rule.

Civil Rights Review

    AMS reviewed the potential civil rights implications of this 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 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 final rule does not deny any persons or groups 
the benefits of the program or subject any persons or groups to 
discrimination.

Executive Order 13132

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

List of Subjects in 7 CFR Part 59

    Cattle, Hogs, Lamb, Livestock, Sheep, Swine.

    For the reasons set forth in the preamble, 7 CFR 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. Amend Sec.  59.200 by:
0
a. Adding a definition for ``Negotiated formula purchase'' in 
alphabetical order;

[[Page 52974]]

0
b. Revising the definition of ``Other purchase arrangement''; and

0
c. Revising paragraphs (3) and (4) and adding paragraph (5) in the 
definition of ``Type of purchase''.
    The additions and revisions read as follows:


Sec.  59.200   Definitions.

* * * * *
    Negotiated formula purchase. The term ``negotiated formula 
purchase'' means a swine or pork market formula purchase under which:
    (1) The formula is determined by negotiation on a lot-by-lot basis; 
and
    (2) The swine are scheduled for delivery to the packer not later 
than 14 days after the date on which the formula is negotiated and 
swine are committed to the packer.
* * * * *
    Other purchase arrangement. The term ``other purchase arrangement'' 
means a purchase of swine by a packer that is not a negotiated 
purchase, swine or pork market formula purchase, negotiated formula 
purchase, or other market formula purchase; and does not involve 
packer-owned swine.
* * * * *
    Type of purchase. * * *
    (3) A swine or pork market formula purchase;
    (4) Other purchase arrangement; and
    (5) A negotiated formula purchase.
* * * * *

0
3. Amend Sec.  59.202 by revising paragraphs (b)(2) through (4) to read 
as follows:


Sec.  59.202   Mandatory daily reporting for barrows and gilts.

* * * * *
    (b) * * *
    (2) The total number of barrows and gilts, and barrows and gilts 
that qualify as packer-owned swine, purchased since 1:30 p.m. central 
time of the previous reporting day and up to that time of the reporting 
day through each type of purchase;
    (3) All purchase data for base market hogs purchased since 1:30 
p.m. central time of the previous reporting day and up to that time of 
the reporting day through negotiated purchases;
    (4) All purchase data for base market hogs purchased through each 
type of purchase other than negotiated purchase since 1:30 p.m. central 
time of the previous reporting day and up to that time of the reporting 
day, unless such information is unavailable due to pricing that is 
determined on a delayed basis. The packer shall report information on 
such purchases on the first reporting day or scheduled reporting time 
on a reporting day after the price has been determined.
* * * * *

0
4. Amend Sec.  59.300 by revising the definition for ``Packer-owned 
lambs'' to read as follows:


Sec.  59.300   Definitions.

* * * * *
    Packer-owned lambs. The term ``packer-owned lambs'' means lambs 
that a packer owns for at least 28 days immediately before slaughter.
* * * * *

    Dated: August 5, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-19040 Filed 8-10-16; 8:45 am]
 BILLING CODE 3410-02-P