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Federal Register / Vol. 72, No.

156 / Tuesday, August 14, 2007 / Notices 45415

Department of Agriculture, and the U.S. 1400 Independence Ave., SW., commissions than small volume
Customs and Border Protection, U.S. Washington, DC 20250, (202) 720–7363, consignors. For example, a standard
Department of Homeland Security. s.brett.offutt@usda.gov. commission rate of $10 per cow for 10
The regulation at 7 CFR 6.33(a) SUPPLEMENTARY INFORMATION: cows and a non-tiered discounted rate
provides that a fee will be charged for of $9 per cow for larger sales could
each license issued to a person or firm Background result in the seller of 11 cows paying
by the Licensing Authority in order to The Grain Inspection, Packers and less in commission ($99) than the seller
reimburse the Department of Stockyards Administration (GIPSA) of 10 cows ($100). Historically, GIPSA
Agriculture for the costs of enforces the Packers and Stockyards believed this practice to be
administering the licensing system Act, 1921 (7 U.S.C. 181–229) (P&S Act). discriminatory. The prohibition on non-
under this regulation. Under the P&S Act, market agencies tiered application of volume-based rate
The regulation at 7 CFR 6.33(a) also selling on commission (market agencies) discounts prevented a reduction in the
provides that the Licensing Authority at stockyards posted by GIPSA as public total amount of commissions paid as the
will announce the annual fee for each livestock sales facilities operating in number of animals consigned increased.
license and that such fee will be set out interstate commerce (posted stockyards)
New Policy
in a notice to be published in the must file a tariff with GIPSA. These
Federal Register. Accordingly, this tariffs list the rates charged for Representatives from livestock
notice sets out the fee for the licenses to stockyard services the market agency industry groups including the Livestock
be issued for the 2008 calendar year. provides, including selling commissions Marketing Association requested that
(7 U.S.C. 207(a)). The use of GIPSA examine its prohibition of non-
Notice discriminatory rates in tariffs is tiered commission discounts. Allowing
The total cost to the Department of prohibited (7 U.S.C. 206). Neither the the non-tiered commission discounts to
Agriculture of administering the Packers and Stockyards Act, nor all animals consigned in large groups
licensing system for 2008 has been regulations promulgated thereunder, affords qualifying consignors significant
estimated to be $360,000, and the describe specifically what constitutes a reductions in selling cost on a per head
estimated number of licenses expected discriminatory rate. Since 1978, GIPSA basis. Livestock industry stakeholders
to be issued is 2,400. Of the total cost, has investigated the reasonableness of have presented a number of reasons
$230,000 represents staff and rates only in response to specific why allowing non-tiered volume
supervisory costs directly related to complaints or other compelling discounting of commissions would
administering the licensing system, and circumstances. This general policy with benefit the industry as a whole.
$130,000 represents other miscellaneous regards to GIPSA investigation of rates Primarily, the argument presented by
costs, including travel, postage, is published at 9 CFR 203.17. industry groups in favor of the new
publications, forms, Internet software policy is that non-tiered discounts are
Current Policy fair because they more accurately reflect
development, and ADP system
contractors. Currently, GIPSA policy permits the market agencies’ actual cost of the
Accordingly, notice is hereby given volume-based rate discounts in tariffs, transaction. Most of the cost accrued by
that the fee for each license issued to a but the policy historically has the market agency is per transaction, not
person or firm for the 2008 calendar considered non-tiered volume discounts per animal. Also, the industry groups
year, in accordance with 7 CFR 6.33, to be discriminatory and therefore argue that stockyards now face
will be $150.00 per license. prohibited. Tiered discounts involve competition from markets that did not
commission rate structures with lower exist in 1921, such as satellite video and
Dated: Issued at Washington, DC the 31st
day of July, 2007.
selling commission rates per head above internet auctions, which are not
a specified number of head threshold, or required to file tariffs with GIPSA.
Ronald Lord,
lower selling commissions above a Livestock industry groups believe that
Licensing Authority. certain dollar threshold of gross prohibiting non-tiered volume discounts
[FR Doc. 07–3944 Filed 8–13–07; 8:45 am] proceeds. For example, in a tiered discriminates against market agencies at
BILLING CODE 3410–10–M volume-based discount rate system, the posted stockyards.
commission would be the standard rate Stakeholders have told us that small
for the first 10 cows, then a discounted volume consignors are not harmed
DEPARTMENT OF AGRICULTURE rate for the next ten, or it might be the when consignors of larger groups of
standard rate for the first $10,000 in animals receive volume-based discounts
Grain Inspection, Packers and even if the discount is applied in a non-
gross proceeds, then a discounted rate
Stockyards Administration tiered manner because the same
for the next $10,000 in gross proceeds.
Guideline Change Involving Volume GIPSA currently requires that the volume-based discounts are available to
Discounts in Tariffs discounted rate be applied only to that small volume consignors whenever they
portion of a consignment above the have the opportunity to consign in
AGENCY: Grain Inspection, Packers and specified number of head or dollar larger volumes. An examination of
Stockyards Administration, USDA. threshold, although GIPSA doesn’t set tiered tariffs conducted by the GIPSA
ACTION: Notice. what the threshold must be. The current Midwest regional office found that in
policy is that those animals in the same some cases, the threshold for obtaining
SUMMARY: We are announcing a change consignment group below the specified the volume discount was as small as
in policy to accept non-tiered volume- number or dollar threshold must be five (5) head or $3000. Market agencies
based rate discounts in tariffs. assessed the non-discounted rate. stated that the effort and cost to sell a
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DATES: Effective Date: August 14, 2007. Allowing the application of non-tiered large group of animals as a unit is
FOR FURTHER INFORMATION CONTACT: S. volume-based discounted rates to all the comparable to that for small
Brett Offutt, Director, Policy and animals consigned in large consignments, which is why they are
Litigation Division, Packers and consignments could in some willing to offer a discount on a per-
Stockyards Program, Grain Inspection, circumstances result in large volume animal basis for volume consigners.
Packers and Stockyards Administration, consignors paying less in total selling Market agencies also stated that large

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45416 Federal Register / Vol. 72, No. 156 / Tuesday, August 14, 2007 / Notices

groups of livestock of uniform quality Authority: 7 U.S.C. 203, 205, 206, 207, 211, meeting date because of internal
and size help attract large volume 228. processing delays.
buyers to sales at posted stockyards. James E. Link, Dated in Washington, DC, August 9, 2007.
They posit that this increases the level Administrator, Grain Inspection, Packers and Ivy Davis,
of competition among all buyers Stockyards Administration. Acting Chief, Regional Programs
benefiting both small and large [FR Doc. E7–15814 Filed 8–13–07; 8:45 am] Coordination Unit.
consignors. Finally, market agencies BILLING CODE 3410–KD–P [FR Doc. E7–15915 Filed 8–13–07; 8:45 am]
operating at posted stockyards argue
BILLING CODE 6335–02–P
they are under increasing pressure to
compete with market agencies selling COMMISSION ON CIVIL RIGHTS
videotaped herds of cattle by satellite
telecast or over the Internet. Video and Agenda and Notice of Public Meeting DEPARTMENT OF COMMERCE
Internet cattle sales tend to attract and of the Georgia Advisory Committee
draw consignments of large groups of International Trade Administration
cattle away from posted stockyards. Notice is hereby given, pursuant to
Market agencies at posted stockyards the provisions of the rules and U.S. Travel and Tourism Advisory
feel the non-tiered volume-base rate regulations of the U.S. Commission on Board: Meeting of the U.S. Travel and
Civil Rights (Commission), and the Tourism Advisory Board
discounts will help them compete more
Federal Advisory Committee Act
effectively for large consignment
(FACA), that a planning meeting with AGENCY:International Trade
business. briefing of the Georgia Advisory Administration, U.S. Department of
GIPSA has examined its policy on Committee to the Commission will Commerce.
non-tiered volume-based commission convene at 9 a.m. and adjourn at 12 p.m.
rate discounting and the arguments on Wednesday, August 29, 2007, at the ACTION: Notice of an open meeting.
presented by livestock industry groups Sam Nunn Federal Center Building, 61
and market agencies. GIPSA has Forsyth Street, SW., Conference Room SUMMARY: The U.S. Travel and Tourism
determined that it will change its policy Center, Conference Room A, Atlanta, Advisory Board (Board) will hold a
to allow the use of non-tiered volume- GA, 30303. The purpose of this meeting meeting to discuss topics related to the
based commission rate discounting is to review the Committee’s school travel and tourism industry. The Board
methods in tariffs submitted for desegregation report and receive a was established on October 1, 2003, and
approval. GIPSA policy will not attempt briefing on fair housing issues in the reconstituted October 1, 2005, to advise
to differentiate between levels of state. the Secretary of Commerce on matters
discounting but will rely on competition Members of the public are entitled to relating to the travel and tourism
submit written comments; the industry.
among markets and marketing systems
to set rate levels that are fair to market comments must be received in the
regional office by September 14, 2007. DATES:September 5, 2007.
agencies and livestock producers.
The address is: Southern Regional Time: 10:30 a.m. to 12 p.m. (EDT).
However, GIPSA still will consider non-
Office, Sam Nunn Federal Center ADDRESSES: Department of Commerce,
tiered volume-based rate discounts to be
Building, 61 Forsyth Street, SW., Suite 1401 Constitution Avenue, NW., Room
discriminatory if a market agency does 18T40, Atlanta, GA., 30303. Persons
not provide the same discount to all 4830, Washington, DC, 20230. Because
wishing to e-mail their comments, or to of building security, all non-government
qualifying consignors. present their comments verbally at the attendees must pre-register. This
Rate Regulation Investigations and meeting, or who desire additional program will be physically accessible to
Compliance information should contact Peter people with disabilities. Seating is
Minarik, Ph.D., Regional Director, (404) limited and will be on a first come, first
GIPSA will continue to investigate the 562–7000, or by e-mail: served basis. Requests for sign language
validity of complaints alleging pminarik@usccr.gov. interpretation, other auxiliary aids, or
discriminatory rates for stockyard Hearing-impaired persons who will pre-registration, should be submitted no
services (9 CFR 203.17(c)). Under the attend the meeting and require the later than August 29, 2007, to J. Marc
P&S Act (7 U.S.C. 207(e)), GIPSA can services of a sign language interpreter Chittum, U.S. Travel and Tourism
suspend the use of new rates believed should contact the Regional Office at Advisory Board, Room 4043, 1401
to be unlawful. With or without least ten (10) working days before the Constitution Avenue, NW., Washington,
complaints received, GIPSA may scheduled date of the meeting. DC 20230, telephone 202–482–4501,
conduct an investigation and provide an Records generated from this meeting Marc.Chittum@mail.doc.gov.
opportunity for a hearing on a rate tariff may be inspected and reproduced at the
set for stockyard services and if a rate Southern Regional Office, as they FOR FURTHER INFORMATION CONTACT: J.
is deemed in violation of the P&S Act become available, both before and after Marc Chittum, U.S. Travel and Tourism
the meeting. Persons interested in the Advisory Board, Room 4043, 1401
(7 U.S.C. 205, 206, 207), GIPSA can
work of this advisory committee are Constitution Avenue, NW., Washington,
establish a different rate and order the
advised to go to the Commission’s Web DC 20230, telephone: 202–482–4501,
market agency to cease using the rate (7
site, http://www.usccr.gov, or to contact e-mail: Marc.Chittum@mail.doc.gov.
U.S.C. 211). the Southern Regional Office at the
Dated: August 7, 2007.
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Effective Date above e-mail or street address.


The meeting will be conducted J. Marc Chittum,
This notice becomes final upon pursuant to the provisions of the rules Executive Secretary, U.S. Travel and Tourism
publication in the Federal Register. and regulations of the Commission and Advisory Board.
FACA. It was not possible to publish [FR Doc. 07–3947 Filed 8–13–07; 4:54 pm]
this notice 15 days in advance of the BILLING CODE 3510–DR–P

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