[Federal Register Volume 60, Number 187 (Wednesday, September 27, 1995)]
[Notices]
[Pages 49827-49829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23908]



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DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration


Pilot Programs Allowing More Than One Official Agency to Provide 
Official Services Within a Single Geographic Area

AGENCY: Grain Inspection, Packers and Stockyards Administration 
(GIPSA).

ACTION: Notice

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SUMMARY: GIPSA announces two pilot programs allowing more than one 
official agency to provide official services within a single geographic 
area.

EFFECTIVE DATE: November 1, 1995.

ADDRESSES: Neil E. Porter, Director, Compliance Division, GIPSA, USDA, 
Room 1647 South Building, P.O. Box 96454, Washington, DC 20090-6454.

FOR FURTHER INFORMATION CONTACT: Neil E. Porter, telephone 202-720-
8262.

SUPPLEMENTARY INFORMATION:
    Sections 7(f) and 7A of the United States Grain Standards Act, as 
amended (Act), were amended by the U.S. Grain Standards Act Amendments 
of 1993 (Public Law 103-156) on November 24, 1993, to authorize GIPSA's 
Administrator to conduct pilot programs allowing more than one official 
agency to provide official services within a single geographic area 
without undermining the declared policy of the Act. The purpose of 
pilot programs is to evaluate the impact of allowing more than one 
official agency to provide 

[[Page 49828]]
official services within a single geographic area.
    GIPSA requested comments on five possible pilot programs in the 
March 14, 1994, Federal Register (59 FR 11759): timely service; barges 
on selected rivers or portions of rivers; exceptions; commercial 
inspections; and submitted samples. Comments were due by April 22, 
1994. GIPSA received 41 comments on these possible pilot programs: 
seventeen comments from official agencies or employees of official 
agencies opposed these pilot programs; twenty-two comments from grain 
firms, grain trade associations, and a few official agencies supported 
these pilot programs; and two comments from official agencies were 
neutral.
    The comments submitted by official agencies expressed their concern 
over being pressured to grade more leniently or risk losing customers, 
the possible issuance of multiple original grades on a single lot of 
grain, losing major customers to competing official agencies, being 
forced to give preferential treatment to large customers over small 
customers, and maintaining a relatively uniform inspection volume 
sufficient to preserve their personnel base.
    Comments from the grain trade noted difficulty in getting services 
when needed to avoid additional charges and the possibility of better 
service and/or lower cost if they could choose the official agency to 
provide such services. They also indicated a desire for pilot programs 
encompassing all services, a more specific proposal to comment on, and 
a concern that the structure of a pilot program could determine its 
success or failure.
    After considering these comments and other information, GIPSA, in 
the March 10, 1995, Federal Register (60 FR 13113), developed and asked 
for comments on two proposed pilot programs: ``Timely Service'' (one of 
the original five pilot programs) and ``Open Season'' (an additional 
pilot program). The remaining four pilot programs proposed in March 14, 
1994, Federal Register (barges on selected rivers or portions of 
rivers, exceptions, commercial inspections, and submitted samples) were 
determined to be too narrow in scope to conduct an appropriate pilot 
program.
    Comments on these two proposed pilot programs were due by May 5, 
1995. GIPSA received 15 comments. Seven official agencies and one 
official agency organization opposed these pilot programs citing their 
belief that the pilot programs would have an adverse impact on the 
integrity of the official inspection system. Three of these agencies 
also expressed concern about grain handling facilities being able to 
participate in the open season pilot program as a result of seasonal 
shipping patterns or doing without official services for 6 months. 
GIPSA recognizes these concerns, but believes that there are adequate 
safeguards in the proposed pilot programs. Two official agencies, one 
grain handling facility, and four grain trade organizations supported 
these pilot programs citing their belief that the pilot programs would 
promote more timely official inspection services. Two of the trade 
organizations recommended that timely service be redefined to mean when 
the final grades are received by the customer. GIPSA agrees and has 
modified the Timely Service pilot program to differentiate between 
obtaining sampling/weighing services and receiving inspection results.
    The following two pilot programs will start on November 1, 1995, 
and end on October 31, 1996.
    1. Timely Service. This pilot program allows official agencies to 
provide official services to facilities outside their assigned 
geographic area on a case-by-case basis when these official services 
can not be provided in a timely manner by the official agency 
designated to serve that area. A timely manner is defined as follows:
    Sampling/weighing services. 6 hours when a service request is 
received between 6 a.m. and noon, Monday through Friday, by the 
official agency designated to provide service; and 12 hours when a 
service request is received any other time by the official agency 
designated to provide service. This means 6 hours or 12 hours to have a 
sampler/weigher at the facility requesting service unless the customer 
requests a later arrival.
    Inspection results. 12 hours from the completion of sampling of the 
units to be inspected. This means that the official agency providing 
the service shall provide inspection results to the customer not later 
than 12 hours upon completion of the sampling. This notification of 
results may be by telephone, telefax, or other electronic means, and 
does not apply to certification.
    Facilities unable to obtain service within these time limits may 
request such service from another official agency. Customers using this 
pilot program must maintain sufficient documentation to establish that 
they could not receive timely service from the official agency 
designated to serve them (e.g., copy of faxed request for service). If 
GIPSA determines that a customer violates the provisions of this pilot 
program, such customer will no longer be permitted to participate in 
the program.
    Official agencies are encouraged to establish a means to accept 
customer orders during other than normal business hours. Official 
agencies must handle customer requests for service in the order 
received, where practicable. Official agencies asked to provide 
official services outside their assigned geographic area under the 
Timely Service pilot program must notify the Compliance Division, 
GIPSA.
    The definition of timeliness in this pilot program supersedes the 
definition of ``timely manner'' currently stated in section 
800.46(b)(5), and also, supersedes the time requirements stated in 
section 800.116(b) of the regulations under the Act for purposes of the 
pilot program only. These sections state that official personnel may 
not be available to provide requested services if the request is not 
received by 2 p.m., the preceding business day.
    2. Open Season. This pilot program would allow official agencies an 
open season during which they may offer their services to facilities 
outside their assigned geographic area where no official sample-lot or 
official weighing services have been provided in the previous 6 months. 
Official agencies desiring to participate in this pilot program must 
submit their plans to provide official services to customers outside 
their assigned geographic area to Compliance Division, GIPSA, for 
review in consultation with the field office supervising the official 
agency. Upon approval by the Compliance Division, these official 
agencies would be permitted to participate in this program.
    Official agencies participating in these pilot programs can 
provide, during the test period, any official services for which they 
are designated. Official agencies participating in pilot programs must 
arrange for any equipment (including laboratories and access to 
diverter-type mechanical samplers) that may be needed to provide 
official services at each site outside the area they are currently 
designated to serve.
    These pilot programs will run for 1 year, starting November 1, 
1995, and ending October 31, 1996. During this time, GIPSA will monitor 
these pilot programs. If, at any time, GIPSA determines that a pilot 
program is having a negative impact on the official system or is not 
working as intended, the pilot program may be modified or discontinued.

    Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C. 
71 et seq.)


[[Page 49829]]

    Dated: September 19, 1995
David R. Shipman
Deputy Administrator
[FR Doc. 95-23908 Filed 9-26-95; 8:45 am]
BILLING CODE 3410-EN-F