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statement in the first sentence that he does not intend to be present.

(b) The Grain Inspection, Packers and Stockyards Administration (Packers and Stockyards Programs) believes that such an agreement would not constitute an extension of credit within the meaning of section 206 of the Act because it would not give the purchaser any more time to issue a check than is provided in section 409(a). (Approved by the Office of Management and Budget under control number 0580-0015) (Sec. 401, 42 Stat. 168 (7 U.S.C 221); sec. 407, 42 Stat. 169 (7 U.S.C. 228); sec. 409, as added by sec. 7, 90 Stat. 1250 (7 U.S.C. 228b); 7 CFR 2.17, 2.54; 42 FR 35625; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.); 7 U.S.C. 222 and 228 and 15 U.S.C. 46) [42 FR 49929, Sept. 28, 1977, as amended at 49 FR 39516, Oct. 9, 1984; 68 FR 75388, Dec. 31, 2003]

(d) Grain Inspection, Packers and Stockyards Administration (Packers and Stockyards Programs) will continue to insure that the schedules of rates and charges filed with the Department are applied uniformly and in a nondiscriminatory manner. (Approved by the Office of Management and Budget under control number 0580-0015) (7 U.S.C. 203, 204, 207, 217a, 222 and 228) [49 FR 33004, Aug. 20, 1984, as amended at 68 FR 75388, Dec. 31, 2003]

$ 203.17 Statement of general policy

with respect to rates and charges at

posted stockyards. (a) Requests have been received from stockyard operators, market agencies, and livestock producers urging a reduction of rate regulation at posted stockyards. Their requests are based on the belief that competition among markets will set a level of rates and charges fair to both the market operator and to the livestock producer. Grain Inspection, Packers and Stockyards Administration (Packers and Stockyards Programs) will accept for filing tariffs containing any level of charges after 10 days' notice to the public and to the Secretary as required by the Act.

(b) Grain Inspection, Packers and Stockyards Administration (Packers and Stockyards Programs) will not investigate the level of rates and charges established by stockyard owners and market agencies for reasonableness except upon receipt of a valid complaint or under compelling circumstances warranting such investigation. Stockyard owners and market agencies will have substantial flexibility in setting their own rates and charges.

(c) Complaints filed about the reasonableness of rates and charges will be investigated to determine the validity of such complaints and appropriate action taken if warranted.

$ 203.18 Statement with respect to

packers engaging in the business of

custom feeding livestock. (a) In its administration of the Packers and Stockyards Act, the Grain Inspection, Packers and Stockyards Administration (Packers and Stockyards Programs) has sought to promote and maintain open and fair competition in the livestock and packing industries, and to prevent unfair or anticompetitive practices when they are found to exist. It is the opinion of the Administration that the ownership or operation of custom feedlots by packers presents problems which may, under some circumstances, result in violations of the Packers and Stockyards Act.

(b) Packers contemplating entering into such arrangements with custom feedlots are encouraged to consult with the Administration prior to the commencement of such activities. Custom feedlots are not only places of production, but are also important marketing centers, and in connection with the operation of a custom feedlot, it is customary for the feedlot operator to assume responsibility for marketing fed livestock for the accounts of feedlot customers. When a custom feedlot is owned or operated by a packer, and when such packer purchases fed livestock from the feedlot, this method of operation potentially gives rise to a conflict of interest. In such situations, the packer's interest in the fed livestock as a buyer is in conflict with its obligations to feedlot customers to market their livestock to the customer's best advantage. Under these circumstances, the packer should take appropriate measures to eliminate any

an

conflict of interest. At a minimum, (b) Traditionally, livestock dealers such measures should insure:

and buying agencies purchase livestock (1) That feedlot customers are fully for resale or to fill orders for farmers, advised of the common ties between ranchers, producers, other livestock the feedlot and the packer, and of their firms and packers. When a livestock rights and options with respect to the dealer or buying agency is owned or opmarketing of their livestock;

erated by a packer, and when such (2) That all feedlot customers are packer is also buying livestock for its treated equally by the packer/custom own operational requirements, there is feedlot in connection with the mar- a potential conflict of interest. Furketing of fed livestock; and

thermore, the purchase and sale of live(3) That marketing decisions rest stock by meat packers may result in solely with the feedlot customer unless control of markets and prices which otherwise expressly agreed.

could adversely affect both livestock (c) Packer ownership or operation of producers, competing packers, and concustom feedlots may also give rise to

sumers. competitive problems in some situa

(c) Arrangements between packers tions. Packers contemplating or engag

and dealers or buying agencies which ing in the business of operating a cus

do not normally create a conflict of intom feedlot should carefully review

terest or result in a restraint of comtheir operations to assure that no re

petition include: striction of competition exists or is

(1) Operations utilizing different spelikely to occur.

cies or classes of livestock; (2) oper

ations where the business activities are (d) The Grain Inspection, Packers and Stockyards Administration (Pack

widely separated geographically; and ers and Stockyards Programs) does not

(3) operations where tie-in purchases or consider the existence of packer/cus

sales are not involved. Packers contom feedlot relationships, by itself, to

templating engaging in the business of

a livestock dealer or a buying agency constitute a violation of the Act. In the event it appears that a packer/cus

are encouraged to consult with the tom feedlot arrangement gives rise to a

Grain Inspection, Packers and Stockviolation of the Act, an investigation

yards Administration (Packers and will be made on a case-by-case basis,

Stockyards Programs) prior to the

commencement of such activities. and, where warranted, appropriate action will be taken.

(d) In the event a packer/dealer or a

packer/buying agency arrangement ap(Approved by the Office of Management and pears to give rise to a violation of the Budget under control number 0580-0015) Act, an investigation will be made on a (7 U.S.C. 203, 204, 207, 217a, 222 and 228)

case-by-case basis and, where war

ranted, appropriate action will be [49 FR 33004, Aug. 20, 1984, as amended at 68

taken. FR 75388, Dec. 31, 2003)

(Approved by the Office of Management and 8203.19 Statement with respect to Budget under control number 0580-0015) packers engaging in the business of

(7 U.S.C. 228, 228b, 222, 15 U.S.C. 46) livestock dealers or buying agencies.

(49 FR 32845, Aug. 17, 1984; 54 FR 26349, June

23, 1989, as amended at 68 FR 75388, Dec. 31, (a) In its administration of the Pack

2003] ers and Stockyards Act, the Grain Inspection, Packers and Stockyards Ad

PART 204-ORGANIZATION AND ministration (Packers and Stockyards

FUNCTIONS Programs) has sought to prevent conflicts of interest and to maintain open

PUBLIC INFORMATION and fair competition in the livestock and meat packing industries. The own- Sec. ership or operation of livestock dealers

204.1 Introduction.

204.2 Organization. or buying agencies by packers, under

204.3 Delegation of authority. some circumstances, may result in vio

204.4 Public inspection and copying. lations of the Packers and Stockyards 204.5 Indexes. Act.

204.6 Requests for records.

204.7 Appeals.

nications with producer and industry AUTHORITY: 5 U.S.C. 552.

groups.

(1) Administrator. The Secretary of SOURCE: 49 FR 46528, Nov. 27, 1984, unless

Agriculture has delegated responsiotherwise noted.

bility for administration of the PackPUBLIC INFORMATION

ers and Stockyards Act to the Admin

istrator who is responsible for the gen$ 204.1 Introduction.

eral direction and supervision of pro

grams and activities assigned to the The Grain Inspection, Packers and

Grain Inspection, Packers and StockStockyards Administration (Packers

yards Administration (Packers and and Stockyards Programs) hereby de

Stockyards Programs) except such acscribes its central and field organiza

tivities as are reserved to the Judicial tion; indicates the established places at

Officer (32 FR 7468). The Administrator which, and methods whereby, the pub

reports to the Assistant Secretary for lic may secure information; directs at

Marketing and Inspection Services. tention to the general course and

(2) Deputy Administrator. The Deputy method by which its functions are

Administrator assists the Adminischanneled; and sets forth the proce- trator in the overall responsibility for dures governing the availability of

the general direction and supervision opinions, orders, and other records in

of programs and activities assigned to the files of said Administration.

the Grain Inspection, Packers and $ 204.2 Organization.

Stockyards Administration (Packers

and Stockyards Programs). (a) The Grain Inspection, Packers (3) Assistant to the Administrator. The and Stockyards Administration (Pack- Assistant to the Administrator particiers and Stockyards Programs) consists pates with the Administrator and Depof a headquarters office located in the uty Administrator in the development South Building of the U.S. Department and analysis of policies and programs, of Agriculture in Washington, DC, and and directs the management support 12 regional offices. The Washington services and related activities of the headquarters office is organized to in- Grain Inspection, Packers and Stockclude the Office of the Administrator yards Administration (Packers and and two Divisions, the Packer and Stockyards Programs). Poultry Division and the Livestock (4) Director, Industry Analysis Staff. Marketing Division.

The Director of the Industry Analysis (b) Office of the Administrator. This of- Staff participates with the Adminisfice has overall responsibility for ad- trator and Deputy Administrator in ministering the provisions of the Pack- the development and analysis of poliers and Stockyards Act, 1921, cies and programs and directs ecoamended and supplemented (7 U.S.C. nomic studies of structure and per181 et seq.), for enforcement of the formance of the livestock, meat, and Truth-in-Lending Act (15 U.S.C. 1601- poultry marketing, processing, and 1665) with respect to any activities sub- wholesaling industries. The results of ject to the Packers and Stockyards Act these studies are used to provide ecoand for executing assigned civil defense nomic advice to the Administrator in and defense mobilization activities. developing overall policy on antitrust These responsibilities include formula- matters and effects of practices or imtion of current and long-range pro- pediments in the marketing system. grams relating to assigned functions; The Director works closely with the execution of the policies and programs Directors of the Packer and Poultry administered by the Grain Inspection, and the Livestock Marketing Divisions Packers and Stockyards Administra- in connection with investigations to tion (Packers and Stockyards Pro- provide economic advice and expert grams); review and evaluation of pro- testimony in trials and administrative gram operations for uniform, effective, hearings. The Director also coordinates and efficient administration of the activities and works closely with the Packers and Stockyards Act; and Federal Trade Commission and Justice maintenance of relations and commu- Department in studying the effects of

as

mergers and antitrust matters in the the Agency's responsibilities and funclivestock, meat packing and poultry tions. The Director implements and diindustries.

rects the policies and programs per(c) Packer and Poultry Division. This taining to the Livestock Marketing DiDivision carries out the enforcement of vision through the three branches. the provisions of the Packers and (e) Field Services. (1) The field services Stockyards Act relating to packers and of the Grain Inspection, Packers and live poultry dealers and handlers. The Stockyards Administration (Packers responsibilities and functions include: and Stockyards Programs) is divided Determination of applicability of the into 12 regional offices. These offices provisions of the Act to individual are responsible for supervision of operpacker and poultry operations; surveil- ations of stockyard companies, market lance of these operations; investigation agencies, dealers, packers and live of complaints; initiation of formal pro- poultry dealers and handlers to assure ceedings, when warranted, to correct compliance with the Act. They formuillegal practices; and maintenance of late recommendations relating to the working relationships with the meat enforcement of the Act; receive and inpacker and poultry industries. These vestigate complaints, including repararesponsibilities and functions are ac- tion complaints; audit books, records, complished with programs and activi- and reports of persons subject to the ties directed through the Livestock

Act; conduct investigations to deterProcurement Branch, Meat Merchan- mine the existence of and develop evidising Branch, and Poultry Branch.

dence of unfair, deceptive, and disThe Division Director participates with

criminatory trade practices; prepare the Administrator and Deputy Admin

investigative reports and recommend istrator in the development and eval- corrective action; assist in the prosecuuation of policies and programs to ful

tion of cases; review applications for fill the Agency's responsibilities and

registration and rate changes for accufunctions. The Director implements

racy and compliance; and maintain reand directs the policies and programs

lationships with producers, the trade, pertaining to the Packer and Poultry

States and other groups interested in Division through the three branches.

the welfare of the livestock, meat (d) Livestock Marketing Division. This

packing, and poultry industries conDivision enforces those provisions of

cerning enforcement of the Act. the Packers and Stockyards Act relat

(2) The addresses and the States coving to stockyard owners, market agen

ered by these offices, which are under cies, and dealers. The responsibilities

regional supervisors, are as follows: and functions include: determination of Atlanta-Room 338, 1720 Peachtree Street, the applicability of the jurisdiction, NW., Atlanta, Georgia 30309 (Alabama, bonding, financial and trade practice Florida, Georgia, South Carolina) provisions of the Act to individual op

Bedford-Turnpike Road, Box 101E, Bedford,

Virginia 25423 (District of Columbia, Delaerations; supervision of the installa

ware, Maryland, North Carolina, Virginia, tion, maintenance, and testing of

West Virginia) scales; surveillance and investigations Denver-208 Livestock Exchange Building, of stockyards, market agencies, and Denver, Colorado 80216 (Colorado, Mondealers; initiation of formal pro

tana, New Mexico, Utah, Wyoming) ceedings, when warranted, to correct

Fort Worth-Room 8A36, Federal Building, illegal practices; and maintenance of

819 Taylor Street, Fort Worth, Texas 76102

(Oklahoma, Texas) working relationships with producer

Indianapolis-Room 434 Federal Building and and industry groups. These responsibil

U.S. Courthouse, 46 E. Ohio Street, Indianities and functions are accomplished apolis, Indiana 46204 (Illinois, Indiana, Kenwith programs and activities directed tucky, Michigan, Ohio) through the Financial Protection Kansas City—828 Livestock Exchange BuildBranch, Marketing Practices Branch, ing, Kansas City, Missouri 64102 (Kansas, and Scales and Weighing Branch. The

Missouri)

Lawndale-15000 Aviation Boulevard, Room Division Director participates with the

2W6, P.O. Box 6102, Lawndale, California Administrator and Deputy Adminis

90261 (Arizona, California, Hawaii, Nevada) trator in the development and evalua- Memphis—Room 459, Federal Building, 167 tion of policies and programs to fulfill Main Street, Memphis, Tennessee 38103 (Arkansas, Louisiana, Mississippi, Ten- persons deemed to be subject to the nessee)

bonding requirements in 7 U.S.C. 204 of North Brunswick-825 Georges Road, Room

their obligations to file bonds or trust 303, North Brunswick, New Jersey 08902 (Connecticut, Maine, Massachusetts, New

fund agreements in conformity with Hampshire, New Jersey, New York, Penn

regulations issued under this chapter sylvania, Rhode Island, Vermont)

including authority to determine that Omaha-909 Livestock Exchange Building, a bond is inadequate under $201.30(f) of

Omaha, Nebraska 68107 (Iowa, Nebraska) this chapter and to give notice to the Portland-9370 S.W. Greenburg Road, Suite

person of the amount of bond required; E, Portland, Oregon 97223 (Alaska, Idaho,

to notify persons deemed to be subject Oregon, Washington)

to the reporting South St. Paul-208 Post Office Building,

requirements in Box 8, South St. Paul, Minnesota 55075

$201.97 of this chapter of their obliga(Minnesota, North Dakota, South Dakota, tions to file annual reports; and to Wisconsin)

grant reasonable requests for exten

sions of 30 days or less for the filing of 8 204.3 Delegation of authority.

such annual reports. (a) Deputy Administrator. Under the (2) The Regional Supervisors are direction of the Administrator, the hereby individually delegated authorDeputy Administrator is hereby dele- ity, when there is reason to believe gated authority to perform all the du- that there is a question as to the true ties and exercise all the functions and ownership of livestock sold by any perpowers which are now or which may son, to disclose information relating to hereafter be, vested in the Adminis- such questionable ownership to any intrator (including the power of redelega- terested person. tion).

(d) Investigative employees. All em(b) Division Directors. The Directors of ployees of the Grain Inspection, Packthe Industry Analysis Staff, the Live- ers and Stockyards Administration stock Marketing Division, and the (Packers and Stockyards Programs) asPacker and Poultry Division, under ad- signed to or responsible for investigaministrative and technical direction of tions in the enforcement of the Packthe Administrator and the Deputy Ad- ers and Stockyards Act, 1921, as ministrator, are hereby individually amended (7 U.S.C. 181 et seq.), or the endelegated authority, in connection forcement of the Truth-in-Lending Act with the respective functions assigned (15 U.S.C. 1601-1665), with respect to to each of said organizational units in any activities subject to the Packers 8204.2 to perform all the duties and to and Stockyards Act, are hereby indiexercise all the functions and powers vidually delegated authority under the which are now, or which may hereafter Act of January 31, 1925, 43 Stat. 803, 7 be, vested in the Administrator (in- U.S.C. 2217, to administer to or take cluding the power of redelegation) ex- from any person an oath, affirmation, cept such authority as is reserved to or affidavit whenever such oath, affirthe Administrator and Deputy Admin- mation, or affidavit is for use in any istrator under paragraph (g) of this sec- prosecution or proceeding under or in tion.

the enforcement of the aforementioned (c) Regional Supervisors. (1) The Re- Acts. This authority may not be regional Supervisors of the Grain Inspec- delegated and will automatically extion, Packers and Stockyards Adminis- pire upon the termination of the emtration (Packers and Stockyards Pro- ployment of such employees with the grams) are hereby individually dele- Grain Inspection, Packers and Stockgated authority under the provisions of yards Administration (Packers and section 402 of the Packers and Stock- Stockyards Programs). yards Act, 1921, as amended (7 U.S.C. (e) Concurrent authority. No delega222), to issue special orders pursuant to tion prescribed herein shall preclude the provisions of section 6(b) of the the Administrator or Deputy AdminisFederal Trade Commission Act (15 trator from exercising any of the powU.S.C. 46(b)), and, with respect thereto, ers or functions or from performing to issue notices of default provided for any of the duties conferred upon them, in section 10 of the Federal Trade Com- and any such delegation is subject at mission Act (15 U.S.C. 50); to notify all times to withdrawal or amendment

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