80 FR 34097 - Market Agencies Selling on Commission; Purchases From Consignment
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration Federal Register Volume 80, Issue 114 (June 15, 2015)
Grain Inspection, Packers and Stockyards Administration
Federal Register Volume 80, Issue 114 (June 15, 2015)
| Page Range | 34097-34098 | |
| FR Document | 2015-14538 |
[Federal Register Volume 80, Number 114 (Monday, June 15, 2015)] [Proposed Rules] [Pages 34097-34098] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-14538] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Grain Inspection, Packers and Stockyards Administration 9 CFR Part 201 Market Agencies Selling on Commission; Purchases From Consignment AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA. ACTION: Request for information. ----------------------------------------------------------------------- SUMMARY: The United States Department of Agriculture's (USDA) Grain Inspection, Packers and Stockyards Administration (GIPSA) is seeking comments from the public regarding regulations issued under the Packers and Stockyards Act, 1921, as amended and supplemented (P&S Act). GIPSA regulations address circumstances under which a market agency is allowed to sell livestock on a commission basis to its owners, officers, and employees. There may be some need to update this regulation to address current marketing practices. GIPSA would like to determine whether additional information is needed in clarifying the circumstances under which key employees of the market agency, those designated as an auctioneer, weighmaster, or salesman, may purchase livestock. DATES: We will consider comments we receive by August 14, 2015. ADDRESSES: We invite you to submit comments on this request for information. You may submit comments by any of the following methods:E-Mail: comments.gipsa@usda.gov. Mail: M. Irene Omade, GIPSA, USDA, 1400 Independence Avenue SW., Room 2542A-S, Washington, DC 20250-3613. Fax: (202) 690-2173. Hand Delivery or Courier: M. Irene Omade, GIPSA, USDA, 1400 Independence Avenue SW., Room 2542A-S, Washington, DC 20250-3613. Internet: http://www.regulations.gov. Follow the on-line instructions for submitting comments. Instructions: All comments should make reference to the date and page number of this issue of the Federal Register. Regulatory analyses and other documents relating to this action will be available for public inspection in Room 2542A-S, 1400 Independence Avenue SW., Washington, DC 20250-3613 during regular business hours. All comments will be available for public review in the above office during regular business hours (7 CFR 1.27(b)). Please call the Management and Budget Services staff of GIPSA at (202) 720-7486 to arrange a viewing of comments. FOR FURTHER INFORMATION CONTACT: S. Brett Offutt, Director, Policy and Litigation Division, P&SP, GIPSA, 1400 Independence Ave. SW., Washington, DC 20250-3646, (202) 720-7363, s.brett.offutt@usda.gov. SUPPLEMENTARY INFORMATION: GIPSA enforces the P&S Act. Under the authority granted to the Secretary of Agriculture (Secretary) and delegated to GIPSA, the Packers & Stockyards Program (P&SP) is authorized (7 U.S.C. 228) to make regulations necessary to carry out the provisions of the P&S Act. Section 312 (7 U.S.C. 213) of the P&S Act makes it unlawful for markets to engage in or use any unfair, unjustly discriminatory, or deceptive practice or device in connection with the marketing, buying, or selling of livestock on a commission basis. Section 307 (7 U.S.C. 208) of the P&S Act makes it the duty of every stockyard owner and market agency to establish, observe, and enforce just, reasonable, and nondiscriminatory regulations and practices with respect to the furnishing of stockyard services and makes every unjust, unreasonable, or discriminatory regulation or practice prohibited and unlawful. Section 201.56 (9 CFR 201.56) of the regulations issued under the P&S Act explains when and under what circumstances market agencies, individuals, or firms affiliated with a market agency, may purchase consigned livestock from sales conducted by the market agency. Section 201.56 was amended in October 1993 [58 FR 52886]. Since then only a minor technical amendment has been made to Section 201.56. This amendment revised the Office of Management and Budget control number [68 FR 75388, December 31, 2003]. GIPSA is considering whether to update paragraph (c). Section 201.56(c) of the regulations recognizes ``auctioneers,'' ``weighmasters,'' and ``salesmen'' as key employees of market agencies. Key employees are those market agency employees whose duties involve performing key functions (i.e., functions involving determinations or decisions directly affecting the interests of consignors). Individuals performing key functions for a market agency are restricted to a greater degree as to the purchases they may make from consignments to the market. Section 201.56(c) of the regulations currently states that key employees may not purchase livestock out of consignment for their own account (personal or business) for any purpose. Key employees may still purchase livestock in the name of the market agency; for example, key employees can bid in the name of the market agency to make market support purchases. Market support purchases are purchases made in the name of the market agency when the market agency believes that the highest bid does not reflect the true market value of the livestock being offered for sale. Key employees may also purchase livestock in the market agency's name for the market agency's livestock dealer account. Market agencies and their owners, officers, agents, non-key employees, and firms in which these individuals have an ownership or financial interest may purchase livestock out of consignments for any purpose. Only those employees designated as key employees may not purchase livestock for their own accounts. In forty different locations within the regulations promulgated under the P&S Act, GIPSA refers to the livestock scale operator as the ``weigher.'' The regulations refer to the scale operator as the ``weighmaster,'' only twice. Section 201.56(c) is one of the two exceptions. To our knowledge there is no difference meant or intended between the two terms. For the sake of consistency, GIPSA is considering changing ``weighmaster'' to ``weigher'' in the list of key employees. GIPSA is also considering the need to retain ``salesmen'' on the list of key employees. Historically, salesmen have been owners or employees of market agencies engaged in selling livestock on a commission basis in privately negotiated sales. Presently we know of [[Page 34098]] no market agencies selling livestock through privately negotiated sales. The stockyards in which privately negotiated sales occurred now sell livestock in public auctions. While some employees may have retained a ``salesman'' job title, these employees no longer perform those functions that made them key employees. GIPSA is requesting comments from livestock industry representatives that address the following: (1) Which of the following should be included as a key employee, and why: (a) Auctioneer (b) Clerk of Sale (c) Ringmen (d) Salesmen (e) Weighmaster/Weigher (f) Manager or Owner (2) If weighers are otherwise considered key employees, should a weigher be allowed to bid on livestock when: (a) The market scale is equipped with a digital indicator (b) Livestock are not sold by weight (3) If livestock scale operators remain on the list of key employees would you object to GIPSA referring to the livestock scale operator as the ``weigher'' rather than the ``weighmaster'' in 201.56(c)? GIPSA is also interested to hear comments on whether key employees may purchase livestock during a sale under specific circumstances, or for specific purposes, such as: (4) If a key employee would step down from the auctioneer's booth or scale during a sale: (a) Could the key employee then bid on livestock for their own account from the bleachers with the other buyers as long as the employee provided no key services while doing so: (i) Should this be limited to a specific species; (ii) Should their time spent bidding or serving in a key capacity be documented, and if so, how; (iii) Should a key employee be allowed to return to the auctioneer's booth or scale, to perform key employee duties, after bidding on livestock from the bleachers? (5) Should GIPSA allow a key employee to buy livestock for market support or to fill orders held by their employer, the market agency? (6) What is perceived to be the greatest impediment or barrier to effective competition at a market agency selling livestock on a commission basis? GIPSA welcomes any comments addressing these issues and any other aspects of the general subject of permitting key employees to purchase livestock from consignments to a market agency. Susan B. Keith, Acting Administrator, Grain Inspection, Packers and Stockyards Administration. [FR Doc. 2015-14538 Filed 6-12-15; 8:45 am] BILLING CODE 3410-KD-P
![Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Proposed Rules 34097
or to any benefit that may arise • Mail: M. Irene Omade, GIPSA, been made to Section 201.56. This
therefrom, but this provision shall not USDA, 1400 Independence Avenue amendment revised the Office of
be construed to extend to the Payment SW., Room 2542A–S, Washington, DC Management and Budget control
Guarantee if made with a corporation 20250–3613. number [68 FR 75388, December 31,
for its general benefit. • Fax: (202) 690–2173. 2003]. GIPSA is considering whether to
(b) OMB control number assigned • Hand Delivery or Courier: M. Irene update paragraph (c).
pursuant to the Paperwork Reduction Omade, GIPSA, USDA, 1400 Section 201.56(c) of the regulations
Act. The information collection Independence Avenue SW., Room recognizes ‘‘auctioneers,’’
requirements contained in this part (7 2542A–S, Washington, DC 20250–3613. ‘‘weighmasters,’’ and ‘‘salesmen’’ as key
CFR part 1493) have been approved by • Internet: http:// employees of market agencies. Key
the Office of Management and Budget www.regulations.gov. Follow the on-line employees are those market agency
(OMB) in accordance with the instructions for submitting comments. employees whose duties involve
provisions of 44 U.S.C. chapter 35 and Instructions: All comments should performing key functions (i.e., functions
have been assigned OMB Control make reference to the date and page involving determinations or decisions
Number 0551–0032. number of this issue of the Federal directly affecting the interests of
Register. Regulatory analyses and other consignors).
Dated: April 29, 2015. Individuals performing key functions
documents relating to this action will be
Philip Karsting, for a market agency are restricted to a
available for public inspection in Room
Administrator, Foreign Agricultural Service, 2542A–S, 1400 Independence Avenue greater degree as to the purchases they
and Vice President, Commodity Credit may make from consignments to the
SW., Washington, DC 20250–3613
Corporation. market. Section 201.56(c) of the
during regular business hours. All
[FR Doc. 2015–14449 Filed 6–12–15; 8:45 am] regulations currently states that key
comments will be available for public
BILLING CODE 3410–10–P
review in the above office during regular employees may not purchase livestock
business hours (7 CFR 1.27(b)). Please out of consignment for their own
call the Management and Budget account (personal or business) for any
DEPARTMENT OF AGRICULTURE purpose. Key employees may still
Services staff of GIPSA at (202) 720–
7486 to arrange a viewing of comments. purchase livestock in the name of the
Grain Inspection, Packers and market agency; for example, key
Stockyards Administration FOR FURTHER INFORMATION CONTACT:
employees can bid in the name of the
S. Brett Offutt, Director, Policy and
market agency to make market support
9 CFR Part 201 Litigation Division, P&SP, GIPSA, 1400
purchases. Market support purchases
Independence Ave. SW., Washington,
Market Agencies Selling on are purchases made in the name of the
DC 20250–3646, (202) 720–7363,
Commission; Purchases From market agency when the market agency
s.brett.offutt@usda.gov.
believes that the highest bid does not
Consignment SUPPLEMENTARY INFORMATION: GIPSA reflect the true market value of the
AGENCY: Grain Inspection, Packers and enforces the P&S Act. Under the livestock being offered for sale. Key
Stockyards Administration, USDA. authority granted to the Secretary of employees may also purchase livestock
Agriculture (Secretary) and delegated to in the market agency’s name for the
ACTION: Request for information. GIPSA, the Packers & Stockyards market agency’s livestock dealer
SUMMARY: The United States Department Program (P&SP) is authorized (7 U.S.C. account. Market agencies and their
of Agriculture’s (USDA) Grain 228) to make regulations necessary to owners, officers, agents, non-key
Inspection, Packers and Stockyards carry out the provisions of the P&S Act. employees, and firms in which these
Administration (GIPSA) is seeking Section 312 (7 U.S.C. 213) of the P&S individuals have an ownership or
comments from the public regarding Act makes it unlawful for markets to financial interest may purchase
regulations issued under the Packers engage in or use any unfair, unjustly livestock out of consignments for any
and Stockyards Act, 1921, as amended discriminatory, or deceptive practice or purpose. Only those employees
and supplemented (P&S Act). GIPSA device in connection with the designated as key employees may not
regulations address circumstances marketing, buying, or selling of purchase livestock for their own
under which a market agency is allowed livestock on a commission basis. accounts.
to sell livestock on a commission basis Section 307 (7 U.S.C. 208) of the P&S In forty different locations within the
to its owners, officers, and employees. Act makes it the duty of every stockyard regulations promulgated under the P&S
There may be some need to update this owner and market agency to establish, Act, GIPSA refers to the livestock scale
regulation to address current marketing observe, and enforce just, reasonable, operator as the ‘‘weigher.’’ The
practices. GIPSA would like to and nondiscriminatory regulations and regulations refer to the scale operator as
determine whether additional practices with respect to the furnishing the ‘‘weighmaster,’’ only twice. Section
information is needed in clarifying the of stockyard services and makes every 201.56(c) is one of the two exceptions.
circumstances under which key unjust, unreasonable, or discriminatory To our knowledge there is no difference
employees of the market agency, those regulation or practice prohibited and meant or intended between the two
designated as an auctioneer, unlawful. Section 201.56 (9 CFR 201.56) terms. For the sake of consistency,
of the regulations issued under the P&S GIPSA is considering changing
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
weighmaster, or salesman, may
purchase livestock. Act explains when and under what ‘‘weighmaster’’ to ‘‘weigher’’ in the list
circumstances market agencies, of key employees.
DATES: We will consider comments we individuals, or firms affiliated with a GIPSA is also considering the need to
receive by August 14, 2015. market agency, may purchase consigned retain ‘‘salesmen’’ on the list of key
ADDRESSES: We invite you to submit livestock from sales conducted by the employees. Historically, salesmen have
comments on this request for market agency. been owners or employees of market
information. You may submit comments Section 201.56 was amended in agencies engaged in selling livestock on
by any of the following methods: October 1993 [58 FR 52886]. Since then a commission basis in privately
• E-Mail: comments.gipsa@usda.gov. only a minor technical amendment has negotiated sales. Presently we know of
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![34098 Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Proposed Rules
no market agencies selling livestock livestock from consignments to a market • Fax: 202–493–2251.
through privately negotiated sales. The agency. • Mail: U.S. Department of
stockyards in which privately Transportation, Docket Operations, M–
Susan B. Keith,
negotiated sales occurred now sell 30, West Building Ground Floor, Room
livestock in public auctions. While Acting Administrator, Grain Inspection, W12–140, 1200 New Jersey Avenue SE.,
Packers and Stockyards Administration.
some employees may have retained a Washington, DC 20590.
[FR Doc. 2015–14538 Filed 6–12–15; 8:45 am]
‘‘salesman’’ job title, these employees no • Hand Delivery: U.S. Department of
longer perform those functions that BILLING CODE 3410–KD–P Transportation, Docket Operations, M–
made them key employees. 30, West Building Ground Floor, Room
GIPSA is requesting comments from W12–140, 1200 New Jersey Avenue SE.,
livestock industry representatives that DEPARTMENT OF TRANSPORTATION Washington, DC, between 9 a.m. and 5
address the following: p.m., Monday through Friday, except
(1) Which of the following should be Federal Aviation Administration Federal holidays.
included as a key employee, and why: For Airbus service information
(a) Auctioneer 14 CFR Part 39 identified in this proposed AD, contact
(b) Clerk of Sale [Docket No. FAA–2015–1981; Directorate Airbus SAS, Airworthiness Office—
(c) Ringmen Identifier 2014–NM–204–AD] EAL, 1 Rond Point Maurice Bellonte,
(d) Salesmen 31707 Blagnac Cedex, France; telephone
RIN 2120–AA64
(e) Weighmaster/Weigher +33 5 61 93 36 96; fax +33 5 61 93 45
(f) Manager or Owner Airworthiness Directives; Airbus 80; email airworthiness.A330–A340@
(2) If weighers are otherwise Airplanes airbus.com; Internet http://
considered key employees, should a www.airbus.com. For Messier-Dowty
weigher be allowed to bid on livestock AGENCY: Federal Aviation service information contact Messier-
when: Administration (FAA), DOT. Dowty Limited, Cheltenham Road,
(a) The market scale is equipped with a ACTION: Notice of proposed rulemaking Cloucester, GL2 9QH, England;
digital indicator (NPRM). telephone +44(0) 1452 712424; fax+
(b) Livestock are not sold by weight 44(0) 1452 713821; Internet http://
(3) If livestock scale operators remain SUMMARY: We propose to adopt a new www.messier-dowtycom). You may view
on the list of key employees would you airworthiness directive (AD) for certain this referenced service information at
object to GIPSA referring to the Airbus Model A330–200 Freighter, the FAA, Transport Airplane
livestock scale operator as the A330–200, A330–300, A340–200, and Directorate, 1601 Lind Avenue SW.,
‘‘weigher’’ rather than the A340–300 series airplanes. This Renton, WA. For information on the
‘‘weighmaster’’ in 201.56(c)? proposed AD was prompted by reports availability of this material at the FAA,
GIPSA is also interested to hear that the inner bore of some main call 425–227–1221.
comments on whether key employees landing gear (MLG) unit bogie beams
were insufficiently re-protected against Examining the AD Docket
may purchase livestock during a sale
under specific circumstances, or for corrosion after inspection or You may examine the AD docket on
specific purposes, such as: maintenance actions were the Internet at http://
(4) If a key employee would step accomplished. This proposed AD would www.regulations.gov by searching for
down from the auctioneer’s booth or require, for certain MLG units, and locating Docket No. FAA–2015–
scale during a sale: determining which revision of the 1981; or in person at the Docket
(a) Could the key employee then bid component maintenance manual (CMM) Management Facility between 9 a.m.
on livestock for their own account from was used to accomplish the most recent and 5 p.m., Monday through Friday,
the bleachers with the other buyers as MLG unit overhaul; a detailed except Federal holidays. The AD docket
long as the employee provided no key inspection for missing or damaged contains this proposed AD, the
services while doing so: paint, and if necessary, a detailed regulatory evaluation, any comments
(i) Should this be limited to a specific inspection of the cadmium plating for received, and other information. The
species; discrepancies, measurement of the street address for the Docket Operations
(ii) Should their time spent bidding or depth of the cadmium plating, a general office (telephone 800–647–5527) is in
serving in a key capacity be visual inspection of the base metal for the ADDRESSES section. Comments will
documented, and if so, how; corrosion or damage, a detailed be available in the AD docket shortly
(iii) Should a key employee be inspection of repaired areas for cracking after receipt.
allowed to return to the auctioneer’s or corrosion; and corrective actions if FOR FURTHER INFORMATION CONTACT:
booth or scale, to perform key employee necessary. We are proposing this AD to Vladimir Ulyanov, Aerospace Engineer,
duties, after bidding on livestock from detect and correct corrosion in the bore International Branch, ANM 116,
the bleachers? of each MLG unit bogie beam, which Transport Airplane Directorate, FAA,
(5) Should GIPSA allow a key could result in collapse of a MLG unit, 1601 Lind Avenue SW., Renton, WA
employee to buy livestock for market and subsequent damage to the airplane 98057–3356; telephone 425–227–1138;
support or to fill orders held by their and injury to occupants. fax 425–227–1149.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
employer, the market agency? DATES: We must receive comments on SUPPLEMENTARY INFORMATION:
(6) What is perceived to be the this proposed AD by July 30, 2015.
greatest impediment or barrier to ADDRESSES: You may send comments,
Comments Invited
effective competition at a market agency using the procedures found in 14 CFR We invite you to send any written
selling livestock on a commission basis? 11.43 and 11.45, by any of the following relevant data, views, or arguments about
GIPSA welcomes any comments methods: this proposed AD. Send your comments
addressing these issues and any other • Federal eRulemaking Portal: Go to to an address listed under the
aspects of the general subject of http://www.regulations.gov. Follow the ADDRESSES section. Include ‘‘Docket No.
permitting key employees to purchase instructions for submitting comments. FAA–2015–1981; Directorate Identifier
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Document Created: 2015-12-15 15:13:23
Document Modified: 2015-12-15 15:13:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Request for information. | |
| Dates | We will consider comments we receive by August 14, 2015. | |
| Contact | S. Brett Offutt, Director, Policy and Litigation Division, P&SP, GIPSA, 1400 Independence Ave. SW., Washington, DC 20250-3646, (202) 720-7363, [email protected] | |
| FR Citation | 80 FR 34097 |
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