[Federal Register: April 17, 2007 (Volume 72, Number 73)]
[Rules and Regulations]
[Page 19108-19109]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ap07-4]
[[Page 19108]]
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DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
9 CFR Part 202
RIN 0580-AA97
Rules of Practice Governing Proceedings Under the Packers and
Stockyards Act
AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.
ACTION: Final rule.
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SUMMARY: This document amends Chapter 2 of Title 9 CFR to provide
Supplemental Rules of Practice that will provide a mechanism for
settling cases without the institution of formal proceedings.
EFFECTIVE DATE: April 17, 2007.
FOR FURTHER INFORMATION CONTACT: S. Brett Offutt, Director, Policy and
Litigation Division, P&SP, GIPSA, 1400 Independence Ave., SW.,
Washington, DC 20250, (202) 720-7363, s.brett.offutt@usda.gov.
SUPPLEMENTARY INFORMATION:
Background
The Grain Inspection, Packers and Stockyards Administration (GIPSA)
of the U.S. Department of Agriculture (USDA) administers the Packers
and Stockyards Act of 1921, as amended and supplemented (7 U.S.C. 181-
229) (P&S Act). The P&S Act is a statute that provides comprehensive
regulation of the marketing of livestock, meat and poultry in
interstate commerce. Its principal purposes are to enforce fair trade
practices and financial protections, and to take action against certain
anticompetitive practices in the livestock, meat and poultry
industries.
Under the Administrative Regulations of the Department of
Agriculture (7 CFR Part 1), any hearing to assess a civil penalty for
violations of the P&S Act must be conducted in accordance with the
``Rules of Practice Governing Formal Adjudicatory Proceedings
Instituted by the Secretary of Agriculture Under Various Statutes'' as
contained in Subpart H of Part 1, Subtitle A, 7 CFR.
Chapter 2, Title 9 CFR contains regulations issued pursuant to the
P&S Act. This document adds new sections to Part 202 to provide
Supplemental Rules of Practice to provide a mechanism for settling
cases without the institution of formal proceedings.
Under the existing rules of practice, persons alleged to be in
violation of the P&S Act may be served with an administrative complaint
and may ultimately be required to appear in a hearing before a United
States Department of Agriculture Administrative Law Judge. Legal fees
and other expenses related to this administrative process, and
suspensions and/or civil penalties that may result from a finding of
violation of the P&S Act, may be costly. This rule provides
supplemental rules of practice to allow both GIPSA and the violator to
resolve proceedings in a more timely and less costly manner.
Executive Order 12866 and Regulatory Flexibility Act
The Office of Management and Budget (OMB) designated this rule as
not significant for the purposes of Executive Order 12866. This final
rule implements additional Supplemental Rules of Practice relating to
circumstances arising in connection with proceedings under the P&S Act.
These new Supplemental Rules of Practice provide a mechanism for
settling cases without the institution of formal administrative
proceedings. The rule allows the Administrator discretion to enter into
stipulation agreements with persons believed to be in violation of the
P&S Act. The stipulations will occur before a formal administrative
complaint is issued and will include payment of a civil penalty.
Agreeing to the stipulation will be voluntary on the violator's part.
If the violator does not agree, the Administrator retains the right to
proceed through formal administrative proceedings.
For example, if our investigation reveals a person to be
inaccurately weighing livestock in violation of the P&S Act, we will
provide notice of the violation and opportunity for a hearing. The
notice will also give the violator the option to settle the case by
paying a specified penalty. If the case were to go through the formal
adjudicatory procedures, we could ask the administrative law judge to
impose a penalty of $11,000 per violation. By entering a stipulation
agreement, the alleged violator would pay a discounted civil penalty
that is substantially less and would save the expense of litigation.
The government would also save the expense of litigation. If the
violator elects not to accept the stipulation, we would still have
opportunity to pursue enforcement through the formal adjudicatory
process.
To ensure that stipulations remain an effective tool for achieving
compliance with the P&S Act, we will adopt internal procedures that
generally do not allow repeat violators an opportunity to agree to
stipulated monetary penalties. In most cases, repeat violators and
those violators whose conduct results in substantial economic harm to
other persons will not be offered stipulations, but would be subject to
having a formal administrative complaint filed against them. Our
procedures to use stipulations for less serious violations will ensure
that these stipulations will promote efficiency and cost savings while
still providing an additional deterrent against violations of the P&S
Act.
This rule is not a rule as defined by the Regulatory Flexibility
Act (5 U.S.C. 601-612). Therefore, this rule is exempt from the
requirements of that Act.
Executive Order 12988
This rule has been reviewed under E.O. 12988, Civil Justice Reform.
This action is not intended to have retroactive effect. This rule will
not pre-empt State or local laws, regulations, or policies, unless they
present an irreconcilable conflict with this rule. There are no
administrative procedures that must be exhausted prior to any judicial
challenge to the provisions of this rule.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) does not
apply to this rule because the rule does not seek answers to identical
questions or impose reporting, recordkeeping, or third party disclosure
requirements on 10 or more persons, and the information collected is
not used for general statistical purposes.
E-Government Act Compliance
We are committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
Effective Date
This rule (1) relates to internal agency management, and (2)
improves the administration of programs regulated by the Packers and
Stockyards Act because it affords more timely and less costly
resolution of cases brought by USDA. No useful purpose would be served
by delaying the effective date of implementing the use of stipulation
agreements. Therefore, as allowed in 5 U.S.C. 553, it is found upon
good cause that notice and other public procedure with respect to this
rule change are impracticable and contrary to the public interest, and
good cause is found for making this rule effective less than 30 days
after publication in the Federal Register.
[[Page 19109]]
List of Subjects in 9 CFR Part 202
Administrative practice and procedure, Stockyards.
0
For the reasons set forth in the preamble, GIPSA amends 9 CFR part 202
as follows:
PART 202--RULES OF PRACTICE GOVERNING PROCEEDINGS UNDER THE PACKERS
AND STOCKYARDS ACT
0
1. Revise the authority citation for part 202 to read as follows:
Authority: 7 U.S.C. 228(a); 7 CFR 2.22 and 2.81.
0
2. Immediately following Sec. 202.123 add a new undesignated center
heading and Sec. Sec. 202.200 and 202.210 to read as set forth below:
Rules of Practice Applicable to All Other Proceedings
Sec. 202.200 Scope and applicability of rules of practice.
The Uniform Rules of Practice for the Department of Agriculture
promulgated in Subpart H of Part 1, Subtitle A, Title 7, Code of
Federal Regulations, are the Rules of Practice applicable to
adjudicatory, administrative proceedings under the Packers and
Stockyards Act, as amended (7 U.S.C. 181 et seq.). In addition, the
Supplemental Rules of Practice set forth in this part shall be
applicable to such proceedings.
Sec. 202.210 Stipulations.
(a) The Administrator may enter into a stipulation with any person
operating subject to the Packers and Stockyards Act, as amended (P&S
Act), prior to issuing a complaint that seeks a civil penalty against
that person.
(1) The Administrator will give the person notice of an alleged
violation of the P&S Act or regulations and provide an opportunity for
a hearing;
(2) The person has the option to expressly waive the opportunity
for a hearing and agree to pay a specified civil penalty within a
designated time;
(3) The Administrator will agree to settle the matter by accepting
payment of the specified civil penalty within a designated time;
(4) If the person does not agree to the stipulation, or does not
pay the penalty within the specified time, the Administrator may issue
an administrative complaint citing the alleged violation; and
(5) The civil penalty that the Administrator proposed in a
stipulation agreement has no bearing on the civil penalty amount that
may be sought in a formal administrative proceeding against the same
person for the same alleged violation.
(b) [Reserved].
James E. Link,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. E7-7041 Filed 4-16-07; 8:45 am]
BILLING CODE 3410-KD-P