[Federal Register Volume 63, Number 10 (Thursday, January 15, 1998)]
[Proposed Rules]
[Pages 2353-2354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-920]


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 Proposed Rules
                                                 Federal Register
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 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.
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  Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / 
Proposed Rules  

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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868

RIN No. 0580-AA54


General Regulations and Standards for Certain Agricultural 
Commodities

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

ACTION: Proposed rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is proposing to amend the regulations under the Agricultural 
Marketing Act (Act) of 1946 to allow GIPSA and State cooperators to use 
contractors to perform specified inspection services. GIPSA has 
determined that private firms, institutions, and individuals, working 
under contract with GIPSA field offices and State cooperators may be 
able to perform some inspection services, at certain locations, more 
effectively or at less cost than if those services were performed by 
Department or State employees. Consequently, GIPSA is proposing to 
amend the regulations to allow GIPSA and State cooperators to contract 
for service work and to license individual contractors and those 
employed by contractors.

DATES: Comments must be received on or before March 16, 1998.

ADDRESSES: Written comments must be submitted to George Wollam, USDA, 
GIPSA, ART, Stop 3649, Washington, DC 20250-3649; FAX (202) 720-4628. 
All comments received will be made available for public inspection in 
Room 0623, USDA South Building, 1400 Independence Avenue, SW., 
Washington, DC, during regular business hours (7 CFR 1.27(b)).

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

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be nonsignificant for the purpose 
of Executive Order 12866, and therefore has not been reviewed by the 
Office of Management and Budget.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have preemptive effect 
with respect to any State or local laws, regulations, or policies 
unless they present an irreconcilable conflict with this rule. This 
rule is not intended to have retroactive effect. There are no 
administrative procedures which must be exhausted prior to any judicial 
challenge to the provisions of this rule or application of its 
provisions.

Effects on Small Entities

    GIPSA has determined that this proposed rule will not have a 
significant economic impact on a substantial number of small entities 
as defined under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
GIPSA believes that allowing contracts with private firms, 
institutions, individuals, and others for inspection work will foster 
more cost-effective operations. Many users of the inspection services 
do not meet the requirements for small entities as defined in the 
Regulatory Flexibility Act. For example, the primary user of pulse 
inspection services is the U.S. government. It is estimated that 
between 80 and 90 percent of all inspections are performed (directly or 
indirectly) at the request of either the USDA's Farm Service Agency or 
Foreign Agricultural Service, or the U.S. Agency for International 
Development. The proposed change would allow GIPSA and the 13 State 
cooperators to use contractors to perform specified inspection 
services. Currently, contract samplers are used by both GIPSA and State 
cooperators which has resulted in reduced operating expenses and, in 
many cases, quicker services to applicants for services. It is expected 
that this action would result in similar benefits.

Information Collection and Recordkeeping Requirements

    In compliance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
chapter 35), the information collection and recordkeeping requirements 
in part 868 have been approved previously by OMB and assigned OMB No. 
0580-0013.

Background

    GIPSA is committed to carrying out its statutory and regulatory 
mandates in a cost effective manner that best serves the public 
interest. Concurrently, GIPSA is constantly seeking ways to reduce the 
cost of providing official services, without reducing the quality of 
that service. One measure that has proven effective is the use of 
contract samplers at outlying service points or during periods of peak 
demand. By judiciously using contract samplers, GIPSA field offices and 
State cooperators have been able to reduce their operating expenses 
and, in many cases, provide quicker service to their applicants for 
services. GIPSA believes that contract inspections may be equally 
beneficial in certain situations; e.g., providing quality inspections 
on an intermittent basis at geographically isolated service points. 
Additionally, GIPSA feels that allowing GIPSA and State cooperators to 
contract with private firms, institutions, individuals, and others for 
inspection work will foster more cost-effective operations, which in 
turn, may lessen the need for future fee increases.
    The Act of 1946, as amended, provides authority to the Secretary of 
Agriculture to enter into contracts and agreements with States and 
agencies of States, private firms, institutions, and individuals for 
the purpose of performing specified inspection services. According to 
section 868.1(b)(23) of the regulations, such services may include 
``applying such tests and making examinations of a commodity and 
records by official personnel as may be necessary to determine the 
kind, class, grade, other quality designation, the quantity, or 
condition of commodity; performing condition of container, carrier 
stowage examination; and any other services as related to commodities, 
as necessary; and issuing an inspection certificate.'' However, section 
868.80(a)(1) of the regulations states that only persons employed by a 
cooperator may be licensed to inspect commodities or to perform related 
services. Consequently, GIPSA is proposing to amend the regulations to 
provide for GIPSA and

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State cooperators to contract for quality (grading) inspection services 
and to license individual contractors and those employed by a 
contractor.

Proposed Action

    To provide for more responsive, cost-effective inspection services 
under the Act of 1946, GIPSA is proposing to revise:
    1. Section 868.1(b)(13) to expand the definition of contractor to 
provide for cooperators to use contractors for specified services.
    2. Section 868.80(a)(1) to add provisions for licensing individual 
contractors and employees of contractors.

List of Subjects in 7 CFR Part 868

    Administrative practice and procedure, Agricultural commodities.
    For reasons set forth 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 868.1(b)(13) is revised to read as follows:


Sec. 868.1  Meaning of terms.

* * * * *
    (b) * * *
    (13) Contractor. Any person who enters into a contract with the 
Service or with a cooperator to perform specified inspection services.
* * * * *
    2. Section 868.80(a)(1) is revised to read as follows:


Sec. 868.80  Who may be licensed.

    (a) Inspectors. * * *
    (1) Is employed by a cooperator, is a contractor, or is employed by 
a contractor.
* * * * *
    Dated: January 9, 1998.
James R. Baker,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 98-920 Filed 1-14-98; 8:45 am]
BILLING CODE 3410-EN-P