95-13615. Regulations and Statements of General Policy Issued Under the Packers and Stockyards Act: Scales & Weighing, Restrictions of Competition, Records, Packer Financial, Packer-Custom Feeding and Dealer/Order Buyer Arrangements, Meat Packer ...  

  • [Federal Register Volume 60, Number 107 (Monday, June 5, 1995)]
    [Proposed Rules]
    [Pages 29506-29511]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-13615]
    
    
    
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    Proposed Rules
                                                    Federal Register
    ________________________________________________________________________
    
    This section of the FEDERAL REGISTER contains notices to the public of 
    the proposed issuance of rules and regulations. The purpose of these 
    notices is to give interested persons an opportunity to participate in 
    the rule making prior to the adoption of the final rules.
    
    ========================================================================
    
    
    Federal Register / Vol. 60, No. 107 / Monday, June 5, 1995 / Proposed 
    Rules
    
    [[Page 29506]]
    
    DEPARTMENT OF AGRICULTURE
    
    Grain Inspection, Packers and Stockyards Administration
    
    9 CFR Part 201
    
    RIN 0590-AA09
    
    
    Regulations and Statements of General Policy Issued Under the 
    Packers and Stockyards Act: Scales & Weighing, Restrictions of 
    Competition, Records, Packer Financial, Packer-Custom Feeding and 
    Dealer/Order Buyer Arrangements, Meat Packer Sales and Purchase 
    Contracts, Gifts to Government Employees, and Packer/Dealer Service 
    Charges
    
    AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.
    
    ACTION: Proposed rules; review of existing regulations.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Packers and Stockyards Programs, Grain Inspection, Packers 
    and Stockyards Administration, is currently reviewing all regulations 
    and policy statements issued under the provisions of the Packers and 
    Stockyards (P&S) Act. Review of 20 regulations and statements of 
    general policy, which have been identified as Group II, has been 
    completed. As a result of the review, this document proposes to modify 
    six trade practice regulations and retain seven regulations and seven 
    statements of general policy in their present form.
    
    DATES: Comments must be submitted on or before August 4, 1995.
    
    ADDRESSES: Comments may be mailed to the Deputy Administrator, Packers 
    and Stockyards Programs, Grain Inspection, Packers and Stockyards 
    Administration, Room 3039 South Building, U.S. Department of 
    Agriculture, Washington, D.C. 20250-2810. Comments received may be 
    inspected during normal business hours in the Office of the Deputy 
    Administrator.
    
    FOR FURTHER INFORMATION CONTACT: Dan VanAckeren, Acting Director, 
    Livestock Marketing Division, (202) 720-6951, or Tommy Morris, 
    Director, Packer and Poultry Division, (202) 720-7363.
    
    SUPPLEMENTARY INFORMATION: Advance Notice of Proposed Rulemaking was 
    published in the Federal Register (57 FR 42515) on September 15, 1992. 
    Comments were solicited, at that time, concerning the relevance and 
    importance of each regulation and statement of general policy to 
    today's livestock, meat, and poultry industries, and which sections 
    should be retained, modified or removed. To complete the review 
    process, the rules covered by the Advance Notice of Proposed Rulemaking 
    were divided into three groupings and this document relates to those 
    rules identified as Group II.
        In response to a request for comments in the Advance Notice of 
    Proposed Rulemaking, the Agency received a total of fourteen comments 
    relating to the rules in Group II. Comments were received from five 
    livestock producer and trade associations, two legal service groups 
    representing producer and poultry grower associations, four poultry 
    grower associations, two livestock marketing interests, and one 
    livestock auction market.
        Six comments were received recommending modification of 
    Sec. 201.49. This regulation requires that interested parties be 
    furnished certain specified information in transactions that are based 
    on the weight of livestock and live poultry. The generation, 
    distribution, and maintenance of scale tickets is a necessary part of 
    this process. One comment recommended a modification to the current 
    regulations to specify that all scales, including those used to 
    purchase livestock on a dressed weight basis, be equipped with printing 
    devices. Five comments recommended that the current regulations be 
    modified to require that scale tickets, similar to those required for 
    livestock and poultry, be made a requirement for poultry feed delivered 
    to growers where feed weight is part of the grower's compensation 
    formula. The commentors proposed that the feed scale printing device 
    print the time and date on the ticket. These same five commentors also 
    recommended a modification to the existing regulations to emphasize the 
    civil penalties of up to $10,000 per livestock weighing offense that 
    are currently available under section 203 of the P&S Act (7 U.S.C 193).
        The same six commentors also proposed revision of Sec. 201.71 which 
    requires that all scales used by stockyard owners, market agencies, 
    dealers, packers, and live poultry dealers be installed, maintained, 
    and operated to insure accurate weights and requires that all scales 
    used to weigh livestock and live poultry, with the exception of 
    monorail scales, be equipped with a printing device.
        The Agency proposes to amend subsection (a) of Sec. 201.49 by 
    modifying the last sentence to specifically state that all scales used 
    to purchase livestock on a dressed weight basis be equipped with 
    printing devices. The Agency also proposes to amend subsection (b) of 
    Sec. 201.49 to require weighmaster identification on executed poultry 
    scale tickets that is uniform with identification required by livestock 
    weighers. The Agency is considering addressing the issue of poultry 
    feed weighing where feed weight is a part of the grower's compensation 
    formula under a separate rulemaking.
        The Agency adopts standards, specifications, and tolerances as 
    approved by the National Institute of Standards and Technology (NIST) 
    and printed in NIST Handbook 44. The Agency proposes to amend 
    subsection (a) of Sec. 201.71 to incorporate by reference the 1995 
    edition of NIST Handbook 44 to replace references to the currently 
    adopted 1989 edition, as the 1995 handbook contains the most current 
    standards, specifications, and tolerances approved by NIST. The Agency 
    also proposes to amend subsection (b) of Sec. 201.71 to specifically 
    require that scales used to purchase livestock on a carcass weight 
    basis be equipped with printing devices. The Agency is considering 
    addressing the issue of poultry feed weighing where feed weight is a 
    part of the grower's compensation formula under a separate rulemaking.
        Section 201.55 requires that purchases and sales of livestock be 
    made on the basis of actual weights and that any adjustments to the 
    weights be fully and accurately explained on the accountings. The 
    Agency proposes to amend Sec. 201.55 by modifying the first sentence to 
    include the purchase, sale, acquisition, and settlement of live 
    poultry. This proposed change will provide uniform requirements for 
    [[Page 29507]] livestock and live poultry. No comments were received 
    concerning this section.
        No comments were received concerning the modification of 
    Sec. 201.73-1. The Agency proposes a technical change to Sec. 201.73-1 
    to more accurately reflect where forms are available and where they are 
    to be filed.
        Three comments were received concerning the modification of 
    Sec. 201.98. This regulation prohibits packers and dealers from 
    charging commission, yardage, or other selling fees to livestock 
    sellers. Of the three comments, one was received from each of the 
    following: a trade association, a livestock auction market, and an 
    agricultural cooperative. One comment recommended modifying the current 
    regulation to exempt charges for services that are mandated by law or 
    regulation from this prohibition. The other two comments recommended a 
    modification that would only prohibit this practice if it resulted in 
    anticompetitive behavior or was not disclosed to the seller.
        The Agency proposes to amend Sec. 201.98 by adding the wording, 
    ``unless the charge is for services mandated by law or statute'', at 
    the end of the last sentence of the regulation. This change would allow 
    buyers to charge for services rendered at the time livestock is 
    received, such as animal identification, provided the service is 
    necessary to comply with statutory requirements.
        No comments were received concerning the modification of 
    Sec. 201.108-1. This regulation consists of instructions for live 
    poultry weighers that inform them of requirements and procedures which 
    must be followed in order to assure accurate weighing of live poultry 
    on vehicle scales.
        The Agency proposes to amend and update Sec. 201.108-1 by 
    incorporating instructions for weighing live poultry on electronic 
    scales with digital readouts. Currently, Sec. 201.108-1 contains 
    instructions for weighing live poultry on weighbeam and dial scales, 
    but does not include electronic scales. We also propose to amend the 
    regulation to assure uniformity of requirements for weighing livestock 
    and poultry.
        A review of the following regulations and statements of general 
    policy has been completed and the Agency proposes to retain each in its 
    present form:
    
    Sec. 201.53  Persons subject to the Act not to circulate misleading 
    reports about market conditions or prices.
    Sec. 201.69  Furnishing information to competitor buyers.
    Sec. 201.70  Restriction or limitation of competition between 
    packers and dealers prohibited.
    Sec. 201.73  Scale operators to be qualified.
    Sec. 201.76  Reweighing.
    Sec. 201.100  Records to be furnished poultry growers and sellers.
    Sec. 201.200  Sale of livestock to a packer on credit.
    Sec. 203.2  Statement of general policy with respect to the giving 
    by meat packers of meat and other gifts to Government employees.
    Sec. 203.4  Statement with respect to the disposition of records by 
    packers, live poultry dealers, stockyard owners, market agencies and 
    dealers.
    Sec. 203.7  Statement with respect to meat packer sales and purchase 
    contracts.
    Sec. 203.15  Trust benefits under sections 206 and 207 of the Act.
    Sec. 203.16  Mailing of checks in payment for livestock purchased 
    for slaughter, for cash and not on credit.
    Sec. 203.18  Statement with respect to packers engaging in the 
    business of custom feeding livestock.
    Sec. 203.19  Statement with respect to packers engaging in the 
    business of livestock dealers or buying agencies.
    
        In the process of reviewing these regulations, it was determined 
    that they were necessary to the efficient and effective enforcement of 
    the P&S Act and to the orderly conduct of the marketing system. The 
    absence of any of the regulations would be detrimental to the industry 
    and could result in increased litigation.
        Comments received pursuant to the Advance Notice of Proposed 
    Rulemaking concerning Secs. 203.2, 203.15 and 203.16 were generally in 
    support of retaining each in its present form. No comments were 
    received concerning Secs. 201.69, 201.200 and 203.7.
        Five comments were received concerning modification of Sec. 201.53. 
    This regulation prohibits packers, live poultry dealers, stockyard 
    owners, market agencies, or dealers from knowingly making, issuing, or 
    circulating false or misleading reports concerning market conditions or 
    prices on the sale of livestock, meat, or live poultry. One comment 
    came from a legal service group representing a poultry grower 
    association and four from poultry grower associations recommending that 
    the regulation be broadened to prohibit the distribution of false or 
    misleading information about the income contract growers receive or 
    could expect to receive in a contract growing arrangement. The Agency 
    is not proposing any changes in the requirements of Sec. 201.53 and 
    believes the regulation, as written, adequately specifies that the 
    Agency considers it an unfair practice under section 202 of the P&S Act 
    to disseminate false or misleading market information.
        Two comments were received concerning modification of Sec. 201.70. 
    This regulation requires that packers and dealers operate their 
    livestock buying operations in competition with, and independently of, 
    one another to avoid a restriction of competition. The comments came 
    from a trade association and a livestock auction market and recommended 
    that the regulation be limited to cover only those situations that 
    result in anticompetitive behavior. The Agency is not proposing any 
    changes in the current requirements of Sec. 201.70, as the regulation, 
    coupled with the provisions of the P&S Act, is adequate to ensure that 
    the intent of the Act is not compromised.
        Five comments were received concerning modification of Sec. 201.73. 
    This regulation requires that stockyard owners, market agencies, 
    dealers, packers, and live poultry dealers employ only qualified 
    persons to operate their scales and requires that such employees 
    operate the scales in accordance with the regulations. One comment came 
    from a legal service group representing a poultry grower association 
    and four from poultry grower associations recommending that the 
    regulation be broadened to require live poultry dealers to employ 
    qualified weighmasters to weigh poultry feed delivered to contract 
    poultry growers. The same five commentors recommended that Sec. 201.76, 
    which requires stockyard owners, market agencies, dealers, packers and 
    live poultry dealers to reweigh livestock, livestock carcasses, or live 
    poultry on request of any authorized representative of the Secretary, 
    be broadened to include poultry feed in the reweighing requirements. 
    The Agency is proposing no changes to Sec. 201.73 or Sec. 201.76. The 
    Agency is considering addressing the issue of poultry feed weighing 
    where feed weight is a part of the grower's compensation formula under 
    a separate rulemaking.
        Seven comments were received concerning modification of 
    Sec. 201.100. This regulation requires that poultry growing agreements 
    be written and that they contain essential specified elements. It also 
    provides that growers are entitled to receive documents necessary for 
    independent verification of their settlement. Two comments were 
    received from legal service groups representing poultry producers, four 
    from poultry growers associations, and one from a producer association. 
    Five of the seven comments recommended adding language to subsection 
    (d) to prohibit employees of live poultry dealers who also raise 
    poultry under growing arrangements with the dealer by whom they are 
    employed from being included in a grouping or ranking of 
    [[Page 29508]] poultry growers. One comment recommended expanding 
    subsection (a) to include livestock. The seventh comment recommended 
    that this regulation be diligently enforced to ensure that growers have 
    sufficient information to understand their settlement checks. Past 
    investigations of growout arrangements have not shown that employees of 
    a live poultry dealer, who also happen to raise poultry, have an 
    inherent advantage over other contract growers that would warrant 
    prohibiting employee and nonemployee contract growers from being 
    grouped together. Further, the Agency is aware that more and more 
    livestock is being produced under various contractual arrangements, 
    however, other provisions of the statute and regulations have been 
    sufficient to address concerns thus far. Therefore, the Agency is not 
    proposing any changes in Sec. 201.100.
        Six comments were received concerning modification of Sec. 203.4. 
    This policy statement notifies persons subject to the P&S Act that 
    certain records may be disposed of after a specific period of time. It 
    also states that the Deputy Administrator may require that records 
    should be retained for a longer period pending completion of an 
    investigation. The policy statement advises that if records are 
    disposed of before the specified periods, the Agency will consider 
    taking formal action. One comment was received from a legal service 
    group representing a poultry grower association, four from poultry 
    grower associations, and another from a producers association. One 
    comment recommended no change and the other five recommended modifying 
    the policy statement to require that records be maintained for a 5-year 
    period. This section has not caused problems in administering the 
    provisions of the P&S Act. Further, the Agency has the authority to 
    require that records be retained for longer periods when deemed 
    necessary.
        Four comments were received concerning modifications of 
    Sec. 203.18. This policy statement notifies packers that ownership or 
    operation of custom feedlots may, under certain circumstances, result 
    in a conflict of interest or anticompetitive violations. It suggests 
    packers consult with the Agency before commencing such activity. All 
    four comments were from producer associations. Two comments recommend 
    section (c) be modified to require consultation with the Agency prior 
    to acquiring, merging with, or operating a custom feedlot. The two 
    other comments recommend a strict prohibition against packers owning or 
    operating custom feedlots. While the Agency continues to be concerned 
    about potential conflicts of interest, current arrangements do not 
    appear to have created conflicts warranting a per se prohibition. Also, 
    current authority under the P&S Act is sufficient to allow the Agency 
    to review any arrangement, at any time that it appears that it may 
    result in an unfair practice or advantage. For these reasons, no 
    changes are being proposed in Sec. 203.18 at this time. The Agency will 
    continue to evaluate these types of arrangements on a case-by-case 
    basis.
        Four comments suggested modifications to Sec. 203.19. This policy 
    statement notifies packers that operating as a livestock dealer or 
    buying agency may, under certain circumstances, result in violations of 
    the P&S Act. All four comments were from producer associations. Two 
    comments recommend subsection (c)(1) be modified to require 
    consultation with the Agency prior to operating as a market agency or 
    dealer. Another comment suggested the policy statement be broadened to 
    place the burden of proof on the packer to prove such ownership does 
    not restrain trade. The fourth comment recommends packers be prohibited 
    from operating as dealers or buying agencies. The Agency has not 
    proposed changes in Sec. 203.19 at this time, but will continue to 
    evaluate each such arrangement on a case-by-case basis. As a practical 
    matter, most packers consult with the Agency before entering into such 
    arrangements. Amending this rule to require such consultation does not 
    appear necessary. Attempting to shift the burden of proof that the 
    arrangement does not restrain trade would not relieve the Agency of the 
    responsibility to investigate and make a factual determination.
        The proposed changes in Secs. 201.49, 201.55, 201.71, 201.73-1, 
    201.98, and 201.108-1 do not impose or change any recordkeeping or 
    information collection requirements. Existing requirements in these 
    regulations have been previously approved by OMB under Control No. 
    0590-0001.
        As provided by the Regulatory Flexibility Act, it is hereby 
    certified that these proposed amended rules will not have a significant 
    economic impact on a substantial number of small entities and a 
    statement explaining the reasons for the certification is set forth in 
    the following paragraph and is being provided to the Chief Counsel for 
    Advocacy of the Small Business Administration.
        While these proposed amended rules impact small entities, they will 
    not have a significant economic impact on any entity, large or small. 
    The primary effect of the changes in rules Secs. 201.49 and 201.71 is 
    to require that when livestock is purchased on the basis of carcass 
    weight the scale used on such purchases be equipped with a printer. The 
    primary effect of the rule change in Sec. 201.55 is to require that 
    when poultry is bought, sold, acquired, or settled on a weight basis, 
    then the actual weight on the scale ticket be used for such purposes, 
    as is currently required for livestock. The primary effect of the rule 
    change in Sec. 201.73-1 is to make a technical change in the name of 
    the Agency pursuant to Pub. L. 103-354, the Federal Crop Insurance 
    Reform and the Department of Agriculture's Reorganization Act of 1994. 
    The primary effect of the rule change in Sec. 201.98 is to allow 
    packers and dealers to charge for services that are mandated by law or 
    statute. The primary effect of the rule change in Sec. 201.108-1 is to 
    update the regulation.
        This rule has been determined to be not significant for purposes of 
    executive order 12866 and therefore has not been reviewed by OMB. These 
    amendments do not impose any new paperwork requirements and do not have 
    implications of Federalism under the criteria of E.O. 12612.
        These proposed amendments have been reviewed under E.O. 12778, 
    Civil Justice Reform, and are not intended to have retroactive effect. 
    These amendments will not preempt state or local laws, regulations, or 
    policies unless they present an irreconcilable conflict with this 
    amendment. Prior to judicial challenge of the amendment to rule, a 
    party must first be found by the Secretary to be in violation of the 
    P&S Act and in violation of the accompanying regulations. Second, the 
    party must appeal that finding and the validity of the regulation to 
    the Secretary in the course of the administrative proceeding. Only 
    after taking these steps, the party may challenge the regulation in a 
    court of competent jurisdiction.
    
    List of Subjects in 9 CFR Part 201
    
        Reporting and recordkeeping requirements, Stockyards, Trade 
    practices.
    
        Done at Washington, D.C. this 26th day of May 1995.
    James R. Baker,
    Administrator, Grain Inspection, Packers and Stockyards Administration.
    
        For the reasons set forth in the preamble, the Grain Inspection, 
    Packers and Stockyards Administration proposes to amend 9 CFR part 201 
    as follows:
        1. The authority citation for part 201 continues to read as 
    follows:
    
        [[Page 29509]] Authority: 7 U.S.C. 204, 228: 7 CFR 2.17(e), 
    2.56.
    
        2. Revise Sec. 201.49 to read as follows:
    
    
    Sec. 201.49  Requirements regarding scale tickets evidencing weighing 
    of livestock and live poultry.
    
        (a) Livestock. When livestock is weighed for the purpose of 
    purchase or sale, a scale ticket shall be issued which shall be 
    serially numbered and used in numerical sequence. Sufficient copies 
    shall be executed to provide a copy to all parties to the transaction. 
    In instances where the weight values are automatically recorded 
    directly on the account of purchase, account of sale or other basic 
    record, this record may serve in lieu of a scale ticket. When livestock 
    is purchased on a carcass weight or carcass grade and weight basis, the 
    hot carcass weights shall be recorded using a scale equipped with a 
    printing device, and such printed weights shall be retained as part of 
    the person or firm's business records to substantiate settlement on 
    each transaction. Scale tickets issued under this section shall show:
    
    (1) The name and location of the agency performing the weighing 
    service;
    (2) The date of the weighing;
    (3) The name of the buyer and seller or consignor, or a designation by 
    which they may be readily identified;
    (4) The number of head;
    (5) Kind of livestock;
    (6) Actual weight of each draft of livestock; and
    (7) The name, initials, or number of the person who weighed the 
    livestock, or if required by State law, the signature of the weigher.
    
        (b) Poultry. When live poultry is weighed for the purpose of 
    purchase, sale, acquisition, or settlement by a live poultry dealer, a 
    scale ticket shall be issued which shall show:
    
    (1) The name of the agency performing the weighing service;
    (2) The name of the live poultry dealer;
    (3) The name and address of the grower, purchaser, or seller;
    (4) The name or initials or number of the person who weighed the 
    poultry, or if required by State law, the signature of the weigher;
    (5) The location of the scale;
    (6) The gross weight, tare weight, and net weight;
    (7) The date and time gross weight and tare weight are determined;
    (8) The number of poultry weighed;
    (9) The weather conditions;
    (10) Whether the driver was on or off the truck at the time of 
    weighing; and
    (11) The license number of the truck or the truck number; provided, 
    that when live poultry is weighed on a scale other than a vehicle 
    scale, the scale ticket need not show the information specified in 
    paragraphs (b)(9)-(11) of this section. Scale tickets issued under this 
    paragraph shall be at least in duplicate form and shall be serially 
    numbered and used in numerical sequence. One copy shall be furnished to 
    the grower, purchaser, or seller, and one copy shall be furnished to or 
    retained by the live poultry dealer.
    
    (Approved by the Office of Management and Budget under control 
    number 0590-0001)
    
        3. Revise Sec. 201.55 to read as follows:
    
    
    Sec.  201.55  Purchases, sales, acquisitions, and settlements to be 
    made on actual weights.
    
        When livestock or live poultry is bought, sold, acquired, or 
    settled on a weight basis, settlement therefor shall be on the basis of 
    the actual weight on the scale ticket. If the actual weight used is not 
    obtained on the date and at the place of transfer of possession, this 
    information shall be disclosed with the date and location of the 
    weighing on the accountings, bills, or statements issued. Any 
    adjustment to the actual weights shall be fully and accurately 
    explained on the accountings, bills, or statements issued and records 
    shall be maintained to support such adjustment.
    
    (Approved by the Office of Management and Budget under control 
    number 0590-0001)
    
        4. Revise Sec. 201.71 (a) and (b) to read as follows:
    
    
    Sec. 201.71  Scales, accurate weights, repairs, adjustments or 
    replacements after inspection.
    
        (a) All scales used by stockyard owners, market agencies, dealers, 
    packers, and live poultry dealers to weigh livestock, livestock 
    carcasses, or live poultry for the purpose of purchase, sale, 
    acquisition, or settlement shall be installed, maintained, and operated 
    to insure accurate weights. Such scales shall meet applicable 
    requirements contained in the General Code, Scale Code, and Weights 
    Code of the 1995 edition of National Institute of Standards and 
    Technology Handbook 44, ``Specifications, Tolerances and Other 
    Technical Requirements for Weighing and Measuring Devices,'' which is 
    hereby incorporated by reference. This incorporation by reference was 
    approved by the Director of the Federal Register on [insert date of 
    approval]. These materials are incorporated as they exist on the date 
    of approval and a notice of any change in these materials will be 
    published in the Federal Register. This handbook is for sale by the 
    Superintendent of Documents, U.S. Government Printing Office, 
    Washington, D.C. 20402. It is also available for inspection at the 
    Office of the Federal Register Information Center, 800 North Capitol 
    Street, N.W., Suite 700, Washington, D.C. 20408.
        (b) All scales used by stockyard owners, market agencies dealers, 
    packers, and live poultry dealers to weigh livestock or live poultry 
    for the purpose of purchase, sale, acquisition or settlement and all 
    scales used for the purchase, sale, acquisition, or settlement of 
    livestock on a carcass weight basis shall be equipped with a printing 
    device which shall be used for recording weight values on a scale 
    ticket or other document used for this purpose.
    * * * * *
        5. Revise Sec. 201.73-1 introductory text to read as follows:
    
    
    Sec. 201.73-1  Instructions for weighing livestock.
    
        Stockyard operators, market agencies, dealers, and packers who 
    operate scales on which livestock is weighed in purchase or sales 
    transactions are responsible for the accurate weighing of such 
    livestock. They shall supply copies of the instructions in this section 
    to all persons who perform weighing operations for them and direct such 
    person to familiarize themselves with the instructions and to comply 
    with them at all times. This section shall also apply to any additional 
    weighers who are employed at any time. Weighers must acknowledge their 
    receipt of these instructions and agree to comply with them, by signing 
    in duplicate, P&SA Form 215 provided by the Packers and Stockyards 
    Programs. One copy of the form is to be filed with a regional office of 
    the Packers and Stockyards Programs and the other retained by the 
    agency employing the weighers.
    * * * * *
        6. Revise Sec. 201.98 to read as follows:
    
    
    Sec. 201.98  Packers and dealers not to charge, demand, or collect 
    commission, yardage, or other services charges.
    
        No packer or dealer shall, in connection with the purchase of 
    livestock in commerce, charge, demand, or collect from the seller of 
    the livestock any compensation in the form of commission, yardage, or 
    other service charge unless the charge is for services mandated by law 
    or statute and is not inconsistent with the provisions of the Act.
        7. Revise Sec. 201.108-1 introductory paragraph and paragraphs, (a) 
    and (c)-(f) to read as follows: [[Page 29510]] 
    
    
    Sec. 201.108-1  Instructions for weighing live poultry.
    
        Live poultry dealers who operate scales on which live poultry is 
    weighed for purposes of purchase, sale, acquisition, or settlement are 
    responsible for the accurate weighing of such poultry. They shall 
    supply copies of the instructions in this section to all persons who 
    perform weighing operations for them and direct such persons to 
    familiarize themselves with the instructions and to comply with them at 
    all times. This section shall also apply to any additional weighers who 
    are employed at any time. Weighers must acknowledge their receipt of 
    these instructions and agree to comply with them by signing in 
    duplicate, on a form provided by the Packers and Stockyards Programs, 
    Grain Inspection, Packers and Stockyards Administration. One copy of 
    this form is to be filed with a regional office of the Packers and 
    Stockyards Programs, Grain Inspection, Packers and Stockyards 
    Administration and the other copy retained by the agency employing the 
    weighers. The following instructions shall be applicable to the 
    weighing of live poultry on all scales, except that paragraph (c)(1) of 
    this section is only applicable to the weighing of live poultry on 
    vehicle scales.
        (a) Balancing the empty scale. (1) The scale shall be maintained in 
    zero balance at all times. The empty scale shall be balanced each day 
    before weighing begins and thereafter its zero balance shall be 
    verified before any poultry is weighed. In addition, the zero balance 
    of the scale shall be verified whenever a weigher resumes weighing 
    duties after an absence from the scale.
        (2) Before balancing the empty scale, the weigher shall notify 
    parties outside the scale house of his intention and shall assure 
    himself that no persons or vehicles are in contact with the platform. 
    When the empty scale is balanced and ready for weighing, he shall so 
    indicate by appropriate signal.
        (3) Weighbeam scales shall be balanced by first seating each poise 
    securely in its zero notch and then moving the balance ball to such 
    position that a correct zero balance is obtained. A scale equipped with 
    a balance indicator is correctly balanced when the indicator comes to 
    rest in the center of the target area. A scale not equipped with a 
    balance indicator is correctly balanced if the weighbeam, when released 
    at the top or bottom of the trig loop, swings freely in the trig loop 
    in such manner that it will come to rest at the center of the trig 
    loop.
        (4) Dial scales shall be balanced by releasing all drop weights and 
    operating the balance ball or other balancing device to obtain a 
    correct zero balance. The indicator must visibly indicate zero on the 
    dial reading face and the ticket printer must record a correct zero 
    balance. ``Balance tickets'' shall be filed with other scale tickets 
    issued on that date.
        (5) Electronic digital scales should be properly warmed up before 
    use. In most cases it is advisable to leave the electric power on 
    continuously. The zero balance shall be verified by recording the zero 
    balance on a scale ticket. The main indicating element and the remote 
    visual weight display shall indicate zero when the balance is verified. 
    The proper procedure for balancing this type of scale will vary 
    according to the manufacture. Refer to the operator's manual for 
    specific instructions.
        (6) A balance ball or other balancing device shall be operated only 
    when balancing the empty scale and shall not be operated at any other 
    time or for any other purpose.
        (7) The time at which the empty scale is balanced or its zero 
    balance verified shall be marked on scale tickets or other permanent 
    records.
    * * * * *
        (c) Weighing the load. (1) Vehicle scales used to weigh live 
    poultry shall be of sufficient length and capacity to weigh an entire 
    vehicle as a unit; provided, that a trailer may be uncoupled from a 
    tractor and weighed as a single unit. Before weighing a vehicle, either 
    coupled or uncoupled, the weigher shall assure himself that the entire 
    vehicle is on the scale platform and that no persons are on the scale 
    platform.
        (i) On a weighbeam scale with a balance indicator the weight of a 
    vehicle shall be determined by moving the poises to such positions that 
    the indicator will come to rest within the central target area.
        (ii) On a weighbeam scale without a balance indicator the weight 
    shall be determined by moving the poises to such positions that the 
    weighbeam, when released from the top or bottom of the trig loop, will 
    swing freely in the trig loop and come to rest at the approximate 
    center of the trig loop.
        (iii) On a dial scale the weight of a vehicle is indicated 
    automatically when the indicator revolves around the dial face and 
    comes to rest.
        (iv) On an electronic digital scale the weight of a vehicle is 
    indicated automatically when the weight value indicated is stable.
        (2) The correct weight is the value in pounds indicated by a 
    weighbeam, dial or digital scale when a stable load balance is 
    obtained. In any case, the weigher should concentrate his attention 
    upon the beam tip, balance indicator, dial or digital indicator while 
    weighing and not concern himself with reading the visible weight 
    indications until a stable load balance is obtained. On electronic 
    digital scales, the weigher should concentrate on the pulsing or 
    flickering of weight values to assure that the unit indicates a stable 
    weight before activating the print button.
        (d) Recording the weight. (1) The gross or tare weight shall be 
    recorded immediately after the load balance is obtained and before any 
    poises are moved or load removed from the scale platform. The weigher 
    shall make certain that the printed weight record agrees with the 
    weight value visibly indicated on the weighbeam, dial or digital 
    indicator when correct load balance is obtained. The weigher shall also 
    assure that the printed weight value is sufficiently distinct and 
    legible.
        (2) The weight printing device on a scale shall be operated only to 
    produce a printed or impressed record of the weight while the load is 
    on the scale and correctly balanced. If the weight is not printed 
    clearly and correctly, the ticket shall be marked void and a new one 
    printed before the load is removed from the scale.
        (e) Weigher's responsibilities. (1) The primary responsibility of a 
    weigher is to determine and record the true weight of live poultry 
    without prejudice or favor to any person or agency and without regard 
    for poultry ownership, price, condition, shrink, or other 
    considerations. A weigher shall not permit the representations or 
    attitudes of any persons or agencies to influence his judgment or 
    action in performing his duties.
        (2) Scale tickets issued shall be serially numbered and used in 
    numerical sequence. Sufficient copies shall be executed to provide a 
    copy to all parties to the transaction. Unused scale tickets or those 
    which are partially executed shall not be left exposed or accessible to 
    other parties. All such tickets shall be kept under lock when the 
    weigher is not at his duty station.
        (3) Accurate weighing and weight recording require that a weigher 
    shall not permit his operations to be hurried to the extent that 
    inaccurate weights or incorrect weight records may result. The gross, 
    tare and net weights must be determined accurately to the nearest 
    minimum graduation. Manual operations connected with balancing, 
    weighing, and recording shall be performed with the care necessary to 
    prevent damage to the accurately machined and adjusted parts of 
    [[Page 29511]] weighbeams, poises, and printing devices. Rough handling 
    of these parts shall be avoided.
        (4) Poultry growers, live poultry dealers, sellers, or others 
    having legitimate interest in a load of poultry are entitled to observe 
    the balancing, weighing, and recording procedures. A weigher shall not 
    deny such persons that right or withhold from them any information 
    pertaining to the weight. He shall check the zero balance of the scale 
    or reweigh a load of poultry when requested by such parties or duly 
    authorized representatives of the Administrator.
        (f) General precautions. (1) The poises of weighbeam scales are 
    carefully adjusted and sealed to a definite weight at the factory and 
    any change in that weight seriously affects weighing accuracy. A 
    weigher, therefore, shall observe if poise parts are broken, loose or 
    lost or if material is added to a poise and shall report any such 
    condition to his superior or employer. Balancing or weighing shall not 
    be performed while a scale ticket is in the slot of a weighbeam poise.
        (2) Stops are provided on scale weighbeams to prevent movement of 
    poises back of the zero graduation when balancing or weighing. When the 
    stops become worn or broken and allow a poise to be set behind the zero 
    position, this condition must be reported by the weigher to his 
    superior or employer and corrected without delay.
        (3) Motion detection circuits are a part of electronic scales. They 
    are designed to prevent the printing of weight values if the load has 
    not stabilized within prescribed limits. The weighmaster's duty is to 
    print the actual weight of the load within these limits. This requires 
    printing the actual weight of the load, not one of the other weights 
    that may be within the motion detection limits.
        (4) Foreign objects or loose material in the form of nuts, bolts, 
    washers, or other material on any part of the weighbeam assembly, 
    including the counter-balance hanger or counter-balance weights, are 
    potential sources of weighing error. Loose balancing material must be 
    enclosed in the shot cup of the counter-balance hanger and counter-
    balance weights must not be of the slotted type which can readily be 
    removed.
        (5) Whenever, for any reason, a weigher has reason to believe that 
    a scale is not functioning properly or not yielding correct weight 
    values, he shall discontinue weighing, report the facts to the parties 
    responsible for scale maintenance and request inspection, test or 
    repair of the scale.
        (6) When a scale has been adjusted, modified, or repaired in any 
    manner which can affect the accuracy of weighing or weight recording, 
    the weigher shall not use the scale until it has been tested and 
    inspected and found to be accurate.
    
    [FR Doc. 95-13615 Filed 6-2-95; 8:45 am]
    BILLING CODE 3410-KD-P
    
    

Document Information

Published:
06/05/1995
Department:
Grain Inspection, Packers and Stockyards Administration
Entry Type:
Proposed Rule
Action:
Proposed rules; review of existing regulations.
Document Number:
95-13615
Dates:
Comments must be submitted on or before August 4, 1995.
Pages:
29506-29511 (6 pages)
RINs:
0590-AA09
PDF File:
95-13615.pdf
CFR: (20)
9 CFR 201.49
9 CFR 201.53
9 CFR 201.55
9 CFR 201.69
9 CFR 201.70
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