[Federal Register Volume 73, Number 143 (Thursday, July 24, 2008)]
[Proposed Rules]
[Pages 43171-43175]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16949]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 50

[Docket No. APHIS-2006-0193]
RIN 0579-AC65


Tuberculosis; Require Approved Herd Plans Prior to Payment of 
Indemnity

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to amend the regulations regarding the 
payment of indemnity for animals destroyed because of bovine 
tuberculosis to provide that an approved herd plan must be in place 
prior to the payment of indemnity, and to provide that 10 percent of 
the gross indemnity payment be withheld by the Animal and Plant Health 
Inspection Service until the conditions of an approved herd plan have 
been implemented. We are also proposing to amend the regulations to 
deny payments of Federal indemnity for a herd whose owner has failed to 
follow the provisions of an approved herd plan, or has violated the 
conditions of an approved herd plan. We believe these proposed changes 
would further tuberculosis eradication efforts in the United States and 
protect livestock not affected with tuberculosis from the disease.

DATES: We will consider all comments that we receive on or before 
September 22, 2008.

ADDRESSES: You may submit comments by either of the following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov/fdmspublic/component/
main?main=DocketDetail&d=APHIS-2006-0193 to submit or view comments and 
to view supporting and related materials available electronically.
     Postal Mail/Commercial Delivery: Please send two copies of 
your comment to Docket No. APHIS-2006-0193, Regulatory Analysis and 
Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, 
Riverdale, MD 20737-1238. Please state that your comment refers to 
Docket No. APHIS-2006-0193.
    Reading Room: You may read any comments that we receive on this 
docket in our reading room. The reading room is located in room 1141 of 
the USDA South Building, 14th Street and Independence Avenue, SW., 
Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., 
Monday through Friday, except holidays. To be sure someone is there to 
help you, please call (202) 690-2817 before coming.
    Other Information: Additional information about APHIS and its 
programs is available on the Internet at http://www.aphis.usda.gov.

FOR FURTHER INFORMATION CONTACT: Dr. C. William Hench, Senior Staff 
Veterinarian, National Tuberculosis Eradication Program, VS, APHIS, 
2150 Centre Avenue, Building B, MS 3E20, Ft. Collins, CO 80526; (970) 
494-7378.

SUPPLEMENTARY INFORMATION:

Background

    Federal regulations implementing the National Cooperative State/
Federal Bovine Tuberculosis Eradication Program for bovine tuberculosis 
in livestock are contained in 9 CFR part 77, ``Tuberculosis,'' and in 
the ``Uniform Methods and Rules--Bovine Tuberculosis Eradication'' 
(UMR), January 22, 1999, edition, which is incorporated by reference 
into the regulations in part 77. Additionally, the regulations in 9 CFR 
part 50 (referred to below as the regulations) provide for the payment 
of indemnity to owners of certain animals destroyed because of 
tuberculosis in order to encourage destruction of animals that are 
infected with, or at significant risk of being infected with, the 
disease.
    Since 1998, a total of 78 livestock herds have become affected with 
tuberculosis in the United States, and at least 4 of these herds were 
on premises where herds previously had been affected with tuberculosis 
and had either been depopulated and the herd owners paid Federal and 
State indemnity or undergone the approved quarantine, test, and removal 
program. Research has shown that there are ways to mitigate the spread 
of infection from wildlife to livestock, and herd plans have been 
developed for numerous herds specifying the mitigations that owners 
must implement to prevent reinfection.
    In order to place more responsibility on owners to adhere to 
prescribed mitigation measures and protect their herds from 
reinfection, we are proposing to amend the regulations

[[Page 43172]]

regarding the payment of indemnity for animals destroyed because of 
bovine tuberculosis to provide that an approved herd plan be in place 
prior to the payment of indemnity, and to provide that 10 percent of 
the gross indemnity payment will be withheld by the Animal and Plant 
Health Inspection Service (APHIS) until the conditions of the herd plan 
have been implemented. We are also proposing to amend the regulations 
to deny payments of Federal indemnity for herds whose owners have 
failed to follow the provisions of an approved herd plan, or have 
violated the conditions of an approved herd plan. We believe that by 
linking implementation of an approved herd plan and compliance with it 
to eligibility for Federal indemnity, we would further tuberculosis 
eradication efforts in the United States and protect livestock not 
affected with tuberculosis from the disease.

Approved Herd Plans

    An approved herd plan is a herd management and testing plan based 
on the disease history and movement patterns of an individual herd, 
designed by the herd owner and a State representative or APHIS 
representative to determine the disease status of livestock in the herd 
and to eradicate tuberculosis within the herd. The plan must be jointly 
approved by the State animal health official and the Veterinarian in 
Charge. The herd plan must include appropriate herd test frequencies, 
tests to be employed, and any additional disease management or herd 
management practices deemed necessary to eradicate tuberculosis from 
the herd and prevent further spread of infection in an efficient and 
effective manner. Approved herd plans generally require a change in 
herd management, construction of barriers, pest control, and, in some 
cases, additional surveillance for tuberculosis on the owner's 
property. Thus, in most cases, compliance with an approved herd plan 
will be evident during a site visit and would not require the owner to 
provide any additional information or documentation.

Approved Herd Plans Linked to Indemnity

    The existing regulations do not require herd owners who have 
tuberculosis-infected livestock to have an approved herd plan, nor do 
the regulations penalize owners whose subsequent failure to follow an 
approved herd plan results in reinfection of the herd or the infection 
of a replacement herd.
    For owners that agree to follow an approved herd plan, the proposed 
rule would not change the amount of indemnity for which the herd owner 
is eligible; it would merely provide that only 90 percent of the gross 
indemnity payment be made after a herd plan has been approved and that 
10 percent of the gross indemnity payment be withheld until the herd 
plan is effectively implemented. This change would provide owners with 
a strong incentive for participation because eligibility for Federal 
indemnity payments would be linked to participation in the program. 
This change would also provide an incentive for States to enforce 
approved herd plans and take action if owners are not adhering to them. 
The incentive to do so comes from the indirect effect of not having 
Federal indemnity available. Under sec. 10407(d) of the Animal Health 
Protection Act (AHPA) (7 U.S.C. 8306(d)), no payment of indemnity will 
be made for ``any animal, article, facility, or means of conveyance 
that becomes or has become affected with or exposed to any pest or 
disease of livestock because of a violation of an agreement for the 
control and eradication of diseases or pests [such as an approved herd 
plan] or a violation of this subtitle [i.e., the AHPA] by the owner.'' 
Accordingly, if a herd was to become reinfected as a result of a herd 
owner's failure to follow an approved herd plan and, pursuant to the 
AHPA, the owner was denied Federal indemnity, the affected State would 
have to pay the costs of indemnity or the herd would remain in place 
under quarantine. If a sufficient number of affected herds were 
detected and not depopulated, it could ultimately result in a downgrade 
of the State's tuberculosis status.

Similar Disease Programs

    While these proposed changes would be new to the tuberculosis 
eradication program, similar strategies have been used in other plant 
and animal disease programs. Two such programs include the cooperative 
infectious salmon anemia (ISA) control program administered by APHIS 
and the State of Maine, and the voluntary control programs for low 
pathogenicity H5 and H7 avian influenza in poultry (LPAI). These 
programs provide strong incentives for participation because 
eligibility for Federal indemnity payments is linked to participation 
in the programs.
    Regulations in 9 CFR part 53 provide that, in order for producers 
in the State of Maine to receive indemnity for fish destroyed because 
of ISA, claimants must participate fully in the cooperative ISA control 
program described in Sec.  53.10(e). An economic analysis we prepared 
in connection with the rulemaking that established those regulations 
cited several benefits that flowed from those requirements, including 
reduced costs to the Maine salmon industry from animal mortality, costs 
from possible State regulatory actions, and trade restrictions on U.S. 
salmon product exports. In addition, an aggressive program early on, 
while the number of known affected pens was reasonably small, obviated 
the need for higher future Federal costs to contain a more widespread 
outbreak. As a result of the ISA program, one-half of Maine's salmon 
industry (along the West Coast of Cobscook Bay) avoided exposure to 
ISA.
    Similarly, the regulations for the control of H5/H7 LPAI and a new 
indemnity program (9 CFR parts 56, 146, and 147) as part of the 
National Poultry Improvement Plan (NPIP) provide for the authority to 
pay indemnity of 100 percent of eligible costs associated with 
eradication of H5 and H7 LPAI for most participating producers and 
provide for the establishment of cooperative agreements with 
participating States through which States are eligible to receive 100 
percent of the costs covered under the cooperative agreements. However, 
to qualify for 100 percent compensation, both the State and producers 
must participate in the LPAI control program; otherwise the 
compensation rate is only 25 percent. We believe that limiting 
indemnity payments to only 25 percent of associated costs serves as an 
incentive for participation in the voluntary control program for those 
few commercial poultry producers and States that do not participate in 
the NPIP and for those breeding poultry producers who participate in 
NPIP but not in its LPAI programs. Thus, given the expected 
participation rates among commercial growers and States, nearly all 
producers and States will qualify for 100 percent indemnification in an 
H5 or H7 outbreak.

Payment to Owners for Animals Destroyed

    Section 50.3 of the regulations provides that we will pay indemnity 
to owners for cattle, bison, or captive cervids destroyed because of 
bovine tuberculosis, and sets a limit on the amount of joint State-
Federal indemnity payment the owner receives when the animals are 
slaughtered.
    We propose to amend Sec.  50.3 by adding a new paragraph (c) that 
would provide for the payment of 90 percent

[[Page 43173]]

of the gross indemnity amount for which the herd owner is eligible 
after a herd plan has been approved. APHIS would withhold the remaining 
10 percent of the gross indemnity until the Veterinarian in Charge or 
official designated by him has conducted a site visit and has found 
that the herd owner has implemented the approved herd plan.

Claims for Indemnity

    Section 50.12 includes provisions for making a claim for indemnity 
for cattle, bison, or captive cervids destroyed because of 
tuberculosis. Currently, the regulations provide that payment will be 
made only if the APHIS indemnity claim form has been approved by a 
proper State official and if payment of the claim has been recommended 
by the appropriate Veterinarian in Charge or an official designated by 
him. We would amend this section by adding the requirement that an 
approved herd plan be jointly completed by the herd owner and the State 
or Federal veterinarian as required under Sec.  50.3(c) before a 
claimant may receive indemnity.

Claims Not Allowed

    Section 50.14 provides that claims for compensation for cattle, 
bison, or captive cervids destroyed because of tuberculosis will not be 
allowed under certain specified conditions. For instance, indemnity 
will not be allowed if all cattle, bison, or captive cervids in the 
claimant's herd have not been tested for tuberculosis, except under 
certain specified conditions. Nor will claims be paid if there is 
substantial evidence that the owner of the animals has attempted to 
obtain indemnity unlawfully or improperly.
    We are proposing to amend the regulations in Sec.  50.14 to ensure 
that producers have in place, and comply with the requirements of, an 
approved herd plan in order to receive Federal indemnity payments for 
livestock destroyed because of tuberculosis. We would add a new 
paragraph (h) to provide that claims for compensation will not be 
allowed unless an approved herd plan is in place that has been jointly 
approved by the herd owner(s) and/or their representative(s) and a 
State or Federal veterinarian as required under Sec.  50.3(c). We would 
also add a new paragraph (i) to provide that claims for indemnity for 
livestock that have become reinfected with or exposed to tuberculosis 
because the claimant has failed to follow the provisions of an approved 
herd plan or has otherwise violated the conditions of an approved herd 
plan will not be allowed.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866. 
The rule has been determined to be significant for the purposes of 
Executive Order 12866 and, therefore, has been reviewed by the Office 
of Management and Budget.
    We are proposing to amend the regulations regarding the payment of 
indemnity for animals destroyed because of bovine tuberculosis to 
provide that an approved herd plan must be in place prior to the 
payment of indemnity, and to provide that 10 percent of the gross 
indemnity amount be held by APHIS until the conditions of an approved 
herd plan have been implemented. We are also proposing to amend the 
regulations to deny payments of Federal indemnity for a herd whose 
owner has failed to follow an approved herd plan, or has violated the 
conditions of an approved herd plan. We believe these proposed changes 
would further tuberculosis eradication efforts in the United States and 
protect livestock not affected with tuberculosis from the disease.
    For this rule, we have prepared an economic analysis. The analysis 
considers the potential economic effects of the proposed changes on 
small entities, as required by the Regulatory Flexibility Act, and 
provides a discussion of the potential costs and benefits, as required 
by Executive Order 12866.
    The economic affects associated with the proposed changes are 
likely to be limited. There are about 1 million cattle herds in the 
United States. Over the past 5 years, only about 1 out of every 100,000 
cattle herds in the United States have been affected by bovine 
tuberculosis (table 1). Since 1998, there have been 78 tuberculosis-
infected livestock herds in the United States. Of the 78 infected 
herds, 4 were on premises that had previously contained tuberculosis-
infected herds. Had the provisions we are proposing in this document 
been in place, these four herds would have been denied Federal 
indemnity only if the herd owners had not followed specific 
requirements in the herd plan intended to prevent reinfection. Herd 
plans have been used for many years in the tuberculosis program. 
Because herd plans are routinely used and because this proposed rule 
would not change the amount of the indemnity for which the herd owner 
is eligible, the costs associated with the proposed changes in terms of 
forgone indemnity payments are expected to be minimal.

 Table 1.--Number of Bovine Tuberculosis (TB) Cases Not of Foreign Origin Per Year and Percentage of U.S. Herds
                                        Affected, Fiscal Years 2003-2007
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                                                                   Number of                     Percentage of
                                                                  positive TB    Total number     U.S. cattle
                          Fiscal year                            cases not of   of U.S. cattle  herds affected
                                                                foreign origin       herds         by TB \1\
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2003..........................................................              11       1,013,570        < 0.0011
2004..........................................................              14         989,460        < 0.0015
2005..........................................................              13         982,510        < 0.0014
2006..........................................................               2         971,400        < 0.0002
2007..........................................................               9         971,400       < 0.0010
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Source: Adapted from the table at http://www.aphis.usda.gov/animal_health/animal_diseases/tuberculosis/
downloads/tb_erad.pdf.
\1\ Two or more positive tuberculosis cases may have the same herd of origin.

    Since 2001, APHIS has paid $91 million in tuberculosis indemnities. 
The amount paid out in indemnities depends on a number of variables 
specific to each individual herd. Experience demonstrates that 
reasonable estimates of indemnity payments per animal range from $1,000 
to $1,200 for beef cattle and from $2,100 to $2,300 for dairy cattle. 
Records show that over the last decade, the average tuberculosis-
affected dairy herd contained about 2,150 animals, and the average 
tuberculosis-affected beef herd contained about 170 animals. Based on

[[Page 43174]]

these ranges for indemnity payments, the depopulation of a single 
reinfected beef herd of average size could cost the Federal government 
between $170,000 and $200,000 in indemnities, and the depopulation of a 
single reinfected dairy herd of average size could cost between $4.5 
million and $4.9 million in indemnities.
    The four premises where reinfections have occurred contained small 
numbers of cattle; the herds were about half as large as the average 
beef herd and less than one-twenty-fifth as large as the average dairy 
herd. A total of about $250,000 in indemnities was paid for the 
depopulation of reinfected herds on these four premises. As noted 
previously, these four herds would have been denied Federal indemnity 
under the provisions we are proposing if the herd owners had not 
followed specific requirements in the herd plan intended to prevent 
reinfection. By linking implementation of an approved herd plan and 
compliance with it to eligibility for Federal indemnity, we will place 
more responsibility on owners to adhere to prescribed mitigation 
measures and protect their herds from reinfection. We believe this 
would further tuberculosis eradication efforts in the United States and 
protect livestock not affected with tuberculosis from the disease.
    According to Small Business Administration (SBA) size standards for 
beef cattle ranching and farming (North American Industry 
Classification System [NAICS] 112111) and for dairy cattle and milk 
production (NAICS 112120), operations with not more than $750,000 in 
annual sales are considered small entities. Less than 4 percent of 
farms in the United States have sales of more than $500,000. Because 
most farms in the United States are considered small by SBA standards, 
farm operations potentially affected by the proposed changes are likely 
to be small.
    As noted previously, since 1998, there have been 78 livestock herds 
infected with tuberculosis in the United States. This is a very small 
portion of the total number of livestock herds. The proposed changes 
would only affect those premises that become reinfected with 
tuberculosis and are found to have not followed a herd plan to prevent 
reinfection. For owners that do follow a herd plan, the proposed rule 
would not change the amount of indemnity for which the herd owner would 
be eligible; it would merely provide that 90 percent of the gross 
indemnity payment be made after the herd plan has been approved and 
that 10 percent of the gross indemnity payment be held until the herd 
plan is implemented.
    As an alternative to the proposed changes, we considered 
maintaining the status quo. Although the existing regulations provide 
for the use of approved herd plans as a post-exposure management tool, 
those regulations do not require the implementation of herd plans in 
order for herd owners who have tuberculosis-infected livestock to 
qualify for indemnity payments, nor do the regulations penalize owners 
whose subsequent failure to follow an approved herd plan results in 
reinfection of the herd or the infection of a replacement herd. Since 
1998, a total of 78 livestock herds have become affected with 
tuberculosis in the United States, and at least 4 of these herds were 
on premises where herds previously had been affected with tuberculosis 
and had either been depopulated and the herd owners paid Federal and 
State indemnity or undergone the approved quarantine, test, and removal 
program. Therefore, leaving the regulations unchanged would be 
unsatisfactory, because it would perpetuate the current situation, 
i.e., one in which premises become re-infected because owners fail to 
implement approved herd plans.
    As another alternative to the proposed changes, we considered a 
different set of payment criteria than is proposed. While it is 
possible to propose other payment options to withhold a larger or 
smaller percent of the Federal indemnity until the herd plan is 
implemented, APHIS seeks to strike a reasonable balance between making 
timely payment for herds that are depopulated and providing an 
incentive for herd owners to follow the provisions of herd plans. As 
such, requiring that 10 percent of the gross indemnity payment be 
withheld until the conditions of an approved herd plan have been 
implemented is a reasonable balance that addresses both objectives.
    Nevertheless, we invite public comment on the proposed rule, 
including any comment on the expected impacts for small entities, and 
on how the proposed rule could be modified to reduce expected costs or 
burdens for small entities consistent with its objectives. Any comment 
suggesting changes to the proposed criteria should be supported with an 
explanation of why the changes should be considered. Given that a very 
small number of herd owners would be affected and the amount of 
indemnity would not change, the changes we are proposing are not likely 
to have any measurable economic effects. They would, however, increase 
the incentive for herd owners to comply with herd plans and therefore 
would reduce the likelihood of reinfection, which in turn would reduce 
the amount of Federal funds paid in indemnification. For producers 
generally, the proposed changes would help achieve the national goal of 
tuberculosis eradication.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action would 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12372

    This program/activity is listed in the Catalog of Federal Domestic 
Assistance under No. 10.025 and is subject to Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. If this proposed rule is adopted: (1) All State 
and local laws and regulations that are in conflict with this rule will 
be preempted; (2) no retroactive effect will be given to this rule; and 
(3) administrative proceedings will not be required before parties may 
file suit in court challenging this rule.

Paperwork Reduction Act

    In accordance with section 3507(d) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the information collection or 
recordkeeping requirements included in this proposed rule have been 
submitted for approval to the Office of Management and Budget (OMB). 
Please send written comments to the Office of Information and 
Regulatory Affairs, OMB, Attention: Desk Officer for APHIS, Washington, 
DC 20503. Please state that your comments refer to Docket No. APHIS-
2006-0193. Please send a copy of your comments to: (1) Docket No. 
APHIS-2006-0193, Regulatory Analysis and Development, PPD, APHIS, 
Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238, 
and (2) Clearance Officer, OCIO, USDA, room 404-W, 14th Street and 
Independence Avenue, SW., Washington, DC 20250. A comment to OMB is 
best assured of having its full effect if OMB receives it within 30 
days of publication of this proposed rule.
    This proposed rule would require that an approved herd plan must be 
in place prior to the payment of indemnity for animals destroyed 
because of bovine tuberculosis, and to provide that 10 percent of the 
gross indemnity payment be withheld by the Animal and Plant Health 
Inspection Service until the

[[Page 43175]]

conditions of an approved herd plan have been effectively implemented, 
and the Veterinarian in Charge or official designated by him has 
conducted a site visit to attest that the herd owner is in compliance 
with the approved herd plan.
    We are soliciting comments from the public (as well as affected 
agencies) concerning our proposed information collection and 
recordkeeping requirements. These comments will help us:
    (1) Evaluate whether the proposed information collection is 
necessary for the proper performance of our agency's functions, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of our estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the information collection on those who 
are to respond (such as through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology; e.g., permitting electronic 
submission of responses).
    Estimate of burden: Public reporting burden for this collection of 
information is estimated to average 25 hours per response.
    Respondents: Bovine herd owners and State animal health officials.
    Estimated annual number of respondents: 20.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 20.
    Estimated total annual burden on respondents: 500 hours. (Due to 
averaging, the total annual burden hours may not equal the product of 
the annual number of responses multiplied by the reporting burden per 
response.)
    Copies of this information collection can be obtained from Mrs. 
Celeste Sickles, APHIS' Information Collection Coordinator, at (301) 
851-2908.

E-Government Act Compliance

    The Animal and Plant Health Inspection Service is committed to 
compliance 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. For information pertinent to E-Government Act 
compliance related to this proposed rule, please contact Mrs. Celeste 
Sickles, APHIS' Information Collection Coordinator, at (301) 851-2908.

List of Subjects in 9 CFR Part 50

    Animal diseases, Bison, Cattle, Hogs, Indemnity payments, Reporting 
and recordkeeping requirements, Tuberculosis.

    Accordingly, we propose to amend 9 CFR part 50 as follows:

PART 50--ANIMALS DESTROYED BECAUSE OF TUBERCULOSIS

    1. The authority citation for part 50 continues to read as follows:

    Authority: 7 U.S.C. 8301-8317; 7 CFR 2.22, 2.80, and 371.4.

    2. Section 50.3 is amended by adding a new paragraph (c) to read as 
follows:


Sec.  50.3  Payment to owners for animals destroyed.

* * * * *
    (c) In each case, the herd owner must cooperate with a State 
representative or an APHIS representative in the development of an 
approved herd plan in order for the owner to be eligible to receive 
indemnity for livestock destroyed because of tuberculosis. Once a herd 
plan is approved, the herd owner will be eligible for a payment of 90 
percent of the gross indemnity amount. The Department will withhold the 
remaining 10 percent of the gross indemnity amount until the 
Veterinarian in Charge or official designated by him has conducted a 
site visit \1\ and has found that the herd owner has implemented the 
approved herd plan.
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    \1\ A herd owner may request a site visit conducted by the 
Veterinarian in Charge. The location of the Veterinarian in Charge 
may be obtained by writing to National Center for Animal Health 
Program, VS, APHIS, 4700 River Road Unit 43, Riverdale, MD 20737, or 
by referring to the local telephone book.
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    3. In Sec.  50.12, the third sentence is revised to read as 
follows:


Sec.  50.12  Claims for indemnity.

    * * * Payment will be made only if the APHIS indemnity claim form 
has been approved by a proper State official, if payment of the claim 
has been recommended by the appropriate Veterinarian in Charge or 
official designated by him, and if a herd plan has been jointly 
approved by the herd owner(s) and/or their representative(s) and a 
State or Federal veterinarian as required under Sec.  50.3(c). * * *
    4. Section 50.14 is amended by adding paragraphs (h) and (i) to 
read as follows:


Sec.  50.14  Claims not allowed.

* * * * *
    (h) The claimant does not have an approved herd plan in place that 
has been jointly approved by the herd owner(s) and/or their 
representative(s) and a State or Federal veterinarian as required under 
Sec.  50.3(c).
    (i) The herd or replacement herd has become reinfected with or 
exposed to tuberculosis because the claimant has failed to follow the 
provisions of an approved herd plan or has otherwise violated the 
conditions of an approved herd plan.


Sec.  50.20  [Amended]

    5. Section 50.20 is amended by redesignating footnote 3 as footnote 
2.

    Done in Washington, DC, this 18th day of July 2008.
Bruce Knight,
Under Secretary for Marketing and Regulatory Programs.
 [FR Doc. E8-16949 Filed 7-23-08; 8:45 am]
BILLING CODE 3410-34-P