[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12261]


[[Page Unknown]]

[Federal Register: May 19, 1994]


                                                    VOL. 59, NO. 96

                                             Thursday, May 19, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Stabilization and Conservation Service

7 CFR Parts 735, 736, 737, 738, 739, 740, 741, and 742

RIN 0560-AD14

 

U.S. Warehouse Act Fees

AGENCY: Agricultural Stabilization and Conservation Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Stabilization and Conservation Service (ASCS) 
is proposing to increase fees charged warehousemen for licensing and 
inspection services under the United States Warehouse Act (USWA) for 
grain, tobacco, wool, dry beans, nuts, syrup, and cottonseed. In 
addition, an initial schedule of fees for cotton warehousemen is being 
added. Future fee changes will be announced by a notice in the Federal 
Register prior to July 1, to be effective October 1 of each year, when 
such changes have been determined to be necessary.

DATES: Written comments must be received on or before close of business 
on June 3, 1994. to be sure of consideration.

ADDRESSES: Written comments on this proposed rule should be sent to the 
Director, Licensing Authority Division, U.S. Department of Agriculture 
(USDA), ASCS, P.O. Box 2415, room 5962-S, Washington, DC 20013-2415, 
telephone 202-720-2121, FAX 202-690-0014.
    All submissions will be available for public inspection during 
regular business hours from 8 a.m. to 4:30 p.m. eastern time, in room 
5962, South Agriculture Building, USDA, 14th and Independence Avenue 
SW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Ms. Lynda Moore or Mr. Bill March 
at 202-720-2121 or FAX 202-690-0014.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866. OMB has determined that this rule is significant.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372 which requires intergovernmental consultation with State and 
local officials. See the notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Executive Order 12778

    The Office of General Counsel has certified to the Office of 
Management and Budget that these regulations meet the applicable 
standards provided in sections 2(a) and 2(b)(2) of this Executive 
Order.

Paperwork Reduction Act

    The amendments set forth in this proposed rule do not generate any 
new or revised information collection or recordkeeping requirements on 
the public.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this proposed rule because it has been determined that 
this rule will not have a significant effect on a substantial number of 
small businesses because licensing under the United States Warehouse 
Act is strictly voluntary on the part of the warehouseman. The actions 
taken herein are required by statute.

Executive Order 12612

    It has been determined that the policies and procedures contained 
in this rule will not have substantial direct effects on states or 
their political subdivisions, or on the distribution of power and 
responsibilities among the various levels of government.

National Environmental Policy Act

    This action is not expected to have any significant impact on the 
quality of the human environment, health, and safety. Therefore, either 
an Environmental Assessment nor an Environmental Impact Statement is 
needed.

Background

    The Omnibus Budget Reconciliation Act of 1981 requires the 
imposition of fees for federally licensed warehouses. That Act 
stipulates that:

    The Secretary of Agriculture * * * shall charge, assess, and 
cause to be collected a reasonable fee for (1) each examination or 
inspection of a warehouse * * *; (2) each license issued to any 
person to classify, inspect, grade, sample, or weigh agricultural 
products stored or to be stored * * *; (3) each annual warehouse 
license issued to a warehouseman to conduct a warehouse * * *; and 
(4) each warehouse license amended, modified, extended, or 
reinstated * * *. Such fees shall cover, as nearly as practicable, 
the costs of providing such services and licenses * * * including 
administrative and supervisory costs * * *

    This proposed rule would add to and change the fees charged and 
collected, discontinue publication of fee amounts in the Regulations 
for Warehouses (7 CFR, chapter VII, subchapter c), and allow fees to be 
adjusted annually in order to cover program costs. Fees that will be 
charged beginning October 1, 1994, are contained below. When subsequent 
fee changes become necessary, fees will be announced prior to July 1, 
to be effective the following October 1, by Notice in the Federal 
Register. ASCS' goal is to have the added and revised fees implemented 
at the beginning of fiscal year 1995 due to the projection of a 
continued shortfall in the USWA user fee account. Annual program 
obligations require about $3.5 million.
    If public comment leads the agency to reject fee increases, other 
methods of statutory compliance would be required such as severe 
manpower and service adjustments. Any changes must be implemented by 
October 1, 1994. Because of budget constraints, it is imperative that 
ASCS implement a final rule before October 1, 1994.
    ASCS will consider all comments received regardless of whether the 
comment addresses the addition, increase, or the method by which fees 
will be announced. ASCS is requesting a 15-day comment period. Good 
cause is shown for a priority notice and comment period of less than 60 
days, because ASCS must implement these fees for 1995 fiscal year. 
Affected parties should not be disadvantaged, because ASCS issued a 
Notice requesting comments in the Federal Register on August 20, 1993 
(58 FR 44320), and held several meetings with various warehousing 
organizations. These organizations have alerted their members and 
others as to the effect of this rule.

Proposed Warehouse and Service License Fees

    Warehouse license fees for cotton, grain, tobacco, wool, dry beans, 
nut, syrup, and cottonseed are proposed to be increased from $50 to 
$65.
    Service license fees issued to individuals and entities to inspect, 
sample, grade, classify, or weigh commodities are proposed to be 
increased from $20 to $26.

Proposed Warehouse Annual and Inspection Fees

    The annual and inspection fees are outlined in the following tables 
by the agricultural product stored. The inspection fees are based on 
licensing a first-time applicant and adding space to an existing 
license. The purpose of the inspection fee is to cover the cost of 
licensing space while the annual fee is applicable to performing 
unannounced inspection and is assessed independently of the inspection 
fee.

------------------------------------------------------------------------
                            Cotton (in bales)                           
-------------------------------------------------------------------------
                                                      Annual            
                                                     fee for     Annual 
                                                       each     fee for 
                                                    warehouse     each  
                                                     location  warehouse
                 Licensed capacity                    with a    location
                                                       CCC     without a
                                                     storage      CCC   
                                                    agreement   storage 
                                                               agreement
------------------------------------------------------------------------
1-20,000..........................................       $500     $1,000
20,001-40,000.....................................        650      1,300
40,001-60,000.....................................        800      1,600
60,001-80,000.....................................      1,000      2,000
80,001-100,000....................................      1,250      2,500
100,001-120,000...................................      1,500      3,000
120,001-140,000...................................      1,750      3,500
140,001-160,000...................................      2,000      4,000
160,001 +.........................................      2,300     4,600 
------------------------------------------------------------------------
Inspection fees will be charged at the rate of $65 for each 1,000 bales 
  of licensed capacity, or fraction thereof, but in no case less than   
  $130 nor more than $1,300.                                            


------------------------------------------------------------------------
                           Grain (in bushels)                           
-------------------------------------------------------------------------
                                                      Annual     Annual 
                                                     fee for    fee for 
                                                       each       each  
                                                    warehouse  warehouse
                                                     location   location
                Licensed capacity                     with a   without a
                                                       CCC        CCC   
                                                     storage    storage 
                                                    agreement  agreement
                                                                        
------------------------------------------------------------------------
1-150,000.........................................       $130       $260
150,001-250,000...................................        260        520
250,001-500,000...................................        390        780
500,001-750,000...................................        520      1,040
750,001-1,000,000.................................        650      1,300
1,000,001-1,200,000...............................        780      1,560
1,200,001-1,500,000...............................        910      1,820
1,500,001-2,000,000...............................      1,040      2,080
2,000,001-2,500,000...............................      1,170      2,340
2,500,001-5,000,000...............................      1,300      2,600
5,000,001-7,500,000...............................      1,430      2,860
7,500,001-10,000,000..............................      1,560      3,120
10,000,001 +......................................   \1\1,560   \2\3,120
------------------------------------------------------------------------
\1\Plus $40 per million bushels above 10,000,000 or fraction thereof.   
\2\Plus $80 per million bushels above 10,000,000 or fraction thereof.   
Inspection fees will be charged at the rate of $13 for each 10,000      
  bushels or fraction thereof, but in no case less than $130 nor more   
  than $1,300.                                                          


------------------------------------------------------------------------
                      Dry Beans (in hundredweight)                      
-------------------------------------------------------------------------
                                                                 Annual 
                       Licensed capacity                           fee  
------------------------------------------------------------------------
1-90,000......................................................      $650
90,001-150,000................................................       910
150,001-300,000...............................................     1,170
300,001-450,000...............................................     1,430
450,001-600,000...............................................     1,690
600,001-720,000...............................................     1,950
720,001-900,000...............................................     2,210
900,001-1,200,000.............................................     2,470
1,200,001-1,500,000...........................................     2,730
1,500,001-3,000,000...........................................     2,990
3,000,001 +...................................................     3,250
------------------------------------------------------------------------
Inspection fees will be charged at the rate of $13 for each 1,000       
  hundredweight, or fraction thereof, but in no case less than $130 nor 
  more than $650.                                                       

Tobacco and Wool

    Annual fee: $13 for each 100,000 pounds of licensed capacity, or 
fraction thereof, but in no case less than $520 nor more than $2,600.
    Inspection fee: $13 for each 100,000 pounds of licensed capacity, 
or fraction thereof, but in no case less than $130 nor more than $650.

Nuts

    Annual fee: 13 cents for each short ton of licensed capacity, or 
fraction thereof, but in no case less than $520 nor more than $2,600.
    Inspection fee: $7 for each 100 short ton of licensed capacity, or 
fraction thereof, of peanuts, and $13 for each 1,000 hundredweight, or 
fraction thereof, of other nuts, but in no case less than $130 nor more 
than $1,300.

Syrup

    Annual fee: $4 for each 5,000 gallons of licensed capacity, or 
fraction thereof, but in no case less than $520 nor more than $2,600.
    Inspection fee: $4 for each 5,000 gallons, or fraction thereof, but 
in no case less than $130 nor more than $650.

Cottonseed

    Annual fee: $13 for each 1,000 short tons of licensed capacity, or 
fraction thereof, but in no case less than $520 nor more than $2,600.
    Inspection fee: $13 for each 1,000 short tons of licensed capacity, 
or fraction thereof, but in no case less than $130 nor more than $650.

List of Subjects in 7 CFR Parts 735, 736, 737, 738, 739, 740, 741, 
and 742

    Administrative practice and procedure, Agricultural commodities, 
Reporting and recordkeeping requirements, Surety bonds, Warehouses.
    Accordingly, it is proposed that 7 CFR parts 735 through 742 be 
amended as follows:

PART 735--COTTON WAREHOUSES

PART 736--GRAIN WAREHOUSES

PART 737--TOBACCO WAREHOUSES

PART 738--WOOL WAREHOUSES

PART 739--DRY BEAN WAREHOUSES

PART 740--NUT WAREHOUSES

PART 741--SIRUP WAREHOUSES

PART 742--COTTONSEED WAREHOUSES

    1. The authority citation for 7 CFR parts 735, 736, 737, 738, 739, 
740, 741, and 742 is revised to read as follows:

    Authority: 7 U.S.C. 241 et seq.

    2. Sections 735.50, 736.57, 737.48, 738.46, 739.55, 740.56, 741.48, 
and 742.58 are revised to read as follows:


Sec. ________  License fees.

    (a) Fees are collected in advance for each original, amended, 
modified, extended, reinstated, or duplicate warehouseman's license; 
and for each original, duplicate, or modified license issued to 
inspect, sample, grade, classify, or weigh commodities.
    (b) Fee changes, if applicable, will be announced by Notice in the 
Federal Register on or before July 1, and effective the following 
October 1.
    3. Sections 735.51, 736.58, 737.49, 738.47, 739.56, 740.57, 741.49, 
and 742.59 are revised to read as follows:


Sec. ________  Warehouse annual and inspection fees.

    Warehousemen must pay:
    (a) An annual fee which will be determined by computing the 
capacity for each warehouse location under a single license and adding 
those amounts together to determine the total due. The fee will be 
assessed and payable when the warehouse bond is furnished in accordance 
with these regulations, for acceptance by the Secretary and annually 
thereafter on the bond renewal date. The capacity for each identifiable 
location will be determined by the Secretary. The total capacity of all 
locations may not exceed the capacity stated in the current license. An 
identifiable location is a fully functional public warehouse as 
determined by the Secretary. The annual fee a licensed warehouseman is 
assessed may be adjusted by the amount Commodity Credit Corporation 
(CCC) pays, if CCC has a storage contract or agreement with the 
warehouseman.
    (b) An inspection fee for each original and amendment inspection.
    (c) An inspection fee at the rate of 100 percent of the annual fee 
charged warehouses without a CCC storage agreement, in all cases where 
the license has been suspended and the warehouseman has requested 
reinstatement. No fee will be charged if the Secretary determines that 
the suspension was not justified.
    (d) A fee for each inspection requested by the warehouseman at the 
rate of 100 percent of the annual fee charged warehouses without a CCC 
storage agreement.

    Signed at Washington, DC on May 13, 1994.
Grant Buntrock,
Administrator, Agricultural Stabilization and Conservation Service.
[FR Doc. 94-12261 Filed 5-18-94; 8:45 am]
BILLING CODE 3410-05-P