[Federal Register Volume 61, Number 8 (Thursday, January 11, 1996)]
[Proposed Rules]
[Pages 1013-1015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-325]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 61, No. 8 / Thursday, January 11, 1996 / 
Proposed Rules  

[[Page 1013]]


DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868


Fees for Rice Inspection

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Federal Grain Inspection Service (FGIS), of the Grain 
Inspection, Packers and Stockyards Administration (GIPSA), is proposing 
to increase the fees for Federal Rice Inspection Services, as performed 
under the Agricultural Marketing Act (AMA) of 1946. This fee increase 
is intended to cover, as nearly as practicable, the projected operating 
costs, including related supervisory and administrative costs, for 
Federal Rice Inspection Services rendered, and to generate sufficient 
revenues to cover costs and maintain an appropriate operating reserve.

DATES: Written comments must be submitted on or before February 12, 
1996.

ADDRESSES: Written comments must be submitted to George Wollam, GIPSA-
FGIS, USDA, Room 0623-South Building, P.O. Box 96454, Washington, DC, 
20090-6454, FAX (202) 720-4628.
    All comments received will be made available for public inspection 
in Room 0623-South Building, 1400 Independence Avenue, SW., Washington, 
DC, during regular business hours. (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: George Wollam, address as above, 
telephone (202) 720-0292.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and Regulatory Flexibility Act

    This 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. This proposed increase in the service fees is 
necessary to recover operating losses in the Federal Rice Inspection 
Services. These fees were last increased on January 1, 1995, (56 FR 
15483) but due to significant increases in expenses, revenue is not 
covering operating costs. The overall cost of operating the Federal 
Rice Inspection Service program increased between FY 93 and 94 by more 
than 9 percent. The cost increase occurred simultaneously with a more 
than 9 percent downturn in revenue due to fewer service requests. In 
fiscal year 1994, the program generated revenue of $3,500,597 with 
operating costs of $4,022,194, resulting in a 1-year operating loss of 
$521,597. Currently, as of July 31, 1995, the rice program's retained 
earnings are a negative $1,046,376.
    The Administrator of the Grain Inspection, Packers and Stockyards 
Administration has determined that this proposed action will not have a 
significant economic impact on a substantial number of small entities.

Executive Order 12778

    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This action is not intended to have a retroactive 
effect. This proposed rule will not preempt any State or local laws, 
regulations, or policies unless they present irreconcilable conflict 
with this rule. There are no administrative procedures which must be 
exhausted prior to any judicial challenge to provisions of this rule.

Regulatory Flexibility Act Certification

    James R. Baker, Administrator, GIPSA, has determined that this 
proposed rule will not have a significant economic impact on a 
substantial number of small entities as defined in the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) because most users of the rice 
inspection services do not meet the requirements for small entities. In 
addition, FGIS is required by statute to recover the costs of providing 
rice inspection services.

Information Collection and Record Keeping Requirements

    In compliance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
Chapter 35), the previously approved information collection and 
recordkeeping requirements concerning applications for official 
inspection services including rice inspections, have been approved by 
the Office of Management and Budget under control number 0580-0013.

Background

    The rice inspection fees were last amended on January 1, 1995, (56 
FR 15483). These fees were to cover, as nearly as practicable, the 
level of operating costs as projected for fiscal year 1995. They 
presently appear in Sec. 868.91 on tables 1 and 2 of the regulations (7 
CFR 868.91 (Tables 1 and 2)).
    FGIS continually monitors its cost, revenue, and operating reserve 
levels to ensure that there are sufficient resources for operations. 
During fiscal years 1992, 1993, and 1994 respectively, FGIS implemented 
cost-saving measures in an effort to provide more cost effective 
services. However, while the quantity of rice inspections may 
fluctuate, certain FGIS costs remain constant, consequently, revenues 
($2,869,010; $3,758,893; and $3,500,597) did not cover operating costs 
($3,346,899; $3,847,762; and $4,022,194) for fiscal years 1992, 1993, 
and 1994 respectively. This reflects a reduction to operating reserves 
for all three fiscal years.
    Fiscal year 1994 offers the most current one-year figures available 
to compare FGIS' rice inspection operating costs with revenue. The 
figures for this year were used to project the budgeted fiscal year 
1995 rice inspection operating costs and establish revenue levels 
necessary to cover projected operating costs. During the period of 
October 1, 1994, to July 31, 1995, the actual operating cost was 
$3,760,305 and revenue was $3,438,683, resulting in a reduction in 
operating reserves of $321,667. This trend, which is expected to 
continue, necessitates an increase in fees and an increase to the per 
hundred weight volume charge for services performed at export port 
locations on lots at rest in order to recover the projected operating 
costs and maintain a 3 month operating reserve currently, as of July 
31, 1995, at a negative $1,046,376.

Proposed Action

    Section 203(h) of the AMA (7 U.S.C. 1622(h)) provides for the 
establishment and collection of fees that are reasonable and, as nearly 
as practicable, cover the costs of the services rendered. These 

[[Page 1014]]
fees cover the FGIS administrative and supervisory costs for the 
performance of official services, including personnel compensation, 
personnel benefits, travel, rent, communications, utilities, 
contractual services, supplies, and equipment.
    Section 868.91, Tables 1 and 2 (as currently shown in section 
868.91, Tables 1 and 2 of the regulations) are proposed to be revised 
to provide for the increase in rice inspection fees. A 3-stage increase 
plan is proposed to raise hourly rates and unit fees by approximately 6 
percent for calendar years 1996, 1997, and 1998. These incremental 
increases will lessen the impact of the amount of increase required to 
replenish retained earnings to appropriate levels by spreading it over 
3 years.
    FGIS will review its cost, revenue, and operating reserve levels to 
ensure that the fee increases for calendar years 1996, 1997, and 1998, 
are required at the levels specified and sufficient to maintain 
official rice inspection services, upon request. In the event a change 
in the fees is necessary, FGIS will engage in notice and comment 
rulemaking before making any changes.

List of Subjects in 7 CFR Part 868

    Administrative practice and procedure, Agricultural commodities.

    For reasons set out in the preamble, 7 CFR Part 868 is proposed to 
be amended as follows:

PART 868--GENERAL REGULATIONS AND STANDARDS FOR CERTAIN 
AGRICULTURAL COMMODITIES

    1. The authority citation for part 868 continues to read as 
follows:

    Authority: Secs. 202-208, 60 Stat. 1087, as amended (7 U.S.C. 
1621 et seq.)

    2. Section 868.91 is revised to read as follows:


Sec. 868.91  Fees for certain Federal Rice Inspection Services.

    The fees shown in Tables 1 and 2 apply to Federal Rice Inspection 
Services.

                Table 1.--Hourly Rates/Unit Rate Per CWT                
               [Fees for Federal Rice Inspection Services]              
------------------------------------------------------------------------
                                 Regular workday     Nonregular workday 
         Service\1\             (Monday-Saturday)     (Sunday-Holiday)  
------------------------------------------------------------------------
                         EFFECTIVE APRIL 1, 1996                        
------------------------------------------------------------------------
Contract (per hour per                                                  
 Service representative)....         $35.80                $49.80       
Noncontract (per hour per                                               
 Service representative)....          43.50                 60.50       
Export Port Services\2\.....            .042/CWT              .042/CWT  
                                                                        
------------------------------------------------------------------------
                        EFFECTIVE JANUARY 1, 1997                       
------------------------------------------------------------------------
Contract (per hour per                                                  
 Service representative)....         $37.90                $52.80       
Noncontract (per hour per                                               
 Service representative)....          46.10                 64.10       
Export Port Services\2\.....            .045/CWT              .045/CWT  
                                                                        
------------------------------------------------------------------------
                        EFFECTIVE JANUARY 1, 1998                       
------------------------------------------------------------------------
Contract (per hour per                                                  
 Service representative)....         $40.20                $56.00       
Noncontract (per hour per                                               
 Service representative)....          48.90                 67.90       
Export Port Services\2\.....            .048/CWT              .048/CWT  
------------------------------------------------------------------------
\1\Original and appeal inspection services include: Sampling, grading,  
  weighing, and other services requested by the applicant when performed
  at the applicant's facility.                                          
\2\Services performed at export port locations on lots at rest.         


                          Table 2.--Unit Rates                          
------------------------------------------------------------------------
                                                   Brown rice           
              Service1,3                  Rough        for       Milled 
                                           rice    processing     rice  
------------------------------------------------------------------------
                   EFFECTIVE APRIL 1, 1996                              
------------------------------------------------------------------------
Inspection for quality (per lot,                                        
 sublot, or sample inspection)........    $29.20      $25.30     $18.00 
Factor analysis for any single factor                                   
 (per factor):                                                          
    (a) Milling yield (per sample)....     22.70       22.70   .........
    (b) All other factors (per factor)     10.80       10.80      10.80 
Total oil and free fatty acid.........  .........      35.40      35.40 
Interpretive line samples:2                                             
    (a) Milling degree (per set)......  .........  ..........     75.80 
    (b) Parboiled light (per sample)..  .........  ..........     19.00 
Extra copies of certificates (per                                       
 copy)................................      3.00        3.00       3.00 
                                                                        
------------------------------------------------------------------------
                  EFFECTIVE JANUARY 1, 1997                             
------------------------------------------------------------------------
Inspection for quality (per lot,                                        
 sublot, or sample inspection)........    $31.00      $26.80     $19.10 
Factor analysis for any single factor                                   
 (per factor):                                                          
    (a) Milling yield (per sample)....     24.10       24.10   .........
    (b) All other factors (per factor)     11.40       11.40      11.40 
Total oil and free fatty acid.........  .........      37.50      37.50 

[[Page 1015]]
                                                                        
Interpretive line samples:2                                             
    (a) Milling degree (per set)......  .........  ..........     80.30 
    (b) Parboiled light (per sample)..  .........  ..........     20.10 
Extra copies of certificates (per                                       
 copy)................................      3.00        3.00       3.00 
                                                                        
------------------------------------------------------------------------
                  EFFECTIVE JANUARY 1, 1998                             
------------------------------------------------------------------------
Inspection for quality (per lot,                                        
 sublot, or sample inspection)........    $32.90      $28.40     $20.20 
Factor analysis for any single factor                                   
 (per factor):                                                          
    (a) Milling yield (per sample)....     25.50       25.50   .........
    (b) All other factors (per factor)     12.10       12.10      12.10 
Total oil and free fatty acid.........  .........      39.80      39.80 
Interpretive line samples:2                                             
    (a) Milling degree (per set)......  .........  ..........     85.10 
    (b) Parboiled light (per sample)..  .........  ..........     21.30 
Extra copies of certificates (per                                       
 copy)................................      3.00        3.00       3.00 
------------------------------------------------------------------------
\1\Fees apply to determinations (original or appeals) for kind, class,  
  grade, factor analysis, equal to type, milling yield, or any other    
  quality designation as defined in the U.S. Standards for Rice or      
  applicable instructions, whether performed singly or combined at other
  than at the applicant's facility.                                     
\2\Interpretive line samples may be purchased from the U.S. Department  
  of Agriculture, Federal Grain Inspection Service, Field Management    
  Division, Board of Appeals and Review, USDA, FGIS Technical Center,   
  10383 North Executive Hills Boulevard, Kansas City, MO 68030.         
  Interpretive line samples also are available for examination at       
  selected FGIS field offices. A list of field offices may be obtained  
  from the Deputy Director, Field Management Division, USDA, GIPSA,     
  FGIS, P.O. Box 96454, Washington, DC 20090-6454. The interpretive line
  samples illustrate the lower limit for milling degrees only and the   
  color limit for the factor ``Parboiled Light'' rice.                  
\3\Fees for other services not referenced in Table 2 will be based on   
  the noncontract hourly rate listed in Section 868.90, Table 1.        


    Dated: January 3, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-325 Filed 1-10-96; 8:45 am]
BILLING CODE 3410-EN-M