[Federal Register Volume 63, Number 250 (Wednesday, December 30, 1998)]
[Rules and Regulations]
[Pages 71728-71729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34523]



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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 130

[Docket No. 98-005-2]


Veterinary Services User Fees; Embryo Collection Center Approval 
Fee

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are amending the existing user fees for the inspection and 
approval of embryo collection centers. Existing user fees require 
embryo collection centers to pay user fees based on hourly rates for 
inspections and approval. We are replacing the hourly rates for this 
specific service with a flat rate annual user fee that will cover the 
cost of approval and all required inspections of the facility for that 
year. We are taking this action in order to make the collection of user 
fees simpler and to allow centers to better predict the costs of APHIS' 
inspection and approval.

EFFECTIVE DATE: January 29, 1999.

FOR FURTHER INFORMATION CONTACT: Ms. Donna Ford, Section Head, 
Financial Systems and Services Branch, Budget and Accounting Division, 
ABS, APHIS, 4700 River Road Unit 54, Riverdale, MD 20737-1232; (301) 
734-8351.

SUPPLEMENTARY INFORMATION:

Background

    User fees to reimburse the Animal and Plant Health Inspection 
Service (APHIS) for the costs of providing veterinary diagnostic 
services and import-related and export-related services for live 
animals and birds and animal products are contained in 9 CFR part 130. 
Section 130.21 lists the user fees charged for APHIS' inspection and 
approval of export facilities, including embryo collection centers, 
within the United States. Section 130.8 lists miscellaneous flat rate 
user fees.
    On July 28, 1998, we published in the Federal Register (63 FR 
40200-40202, Docket No. 98-005-1) a proposal to amend the regulations 
by revising the user fees for the inspection and approval of embryo 
collection centers. Existing user fees require embryo collection 
centers to pay user fees based on hourly rates for inspections and 
approval. We are replacing the hourly rates for this specific service 
with a flat rate annual user fee that will cover the cost of approval 
and all required inspections of the facility for that year.
    We solicited comments concerning our proposal for 60 days ending 
September 28, 1998. We did not receive any comments. Therefore, for the 
reasons given in the proposed rule, we are adopting the proposed rule 
as a final rule without change.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866. 
The rule has been determined to be not significant for the purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget.
    User fees to reimburse APHIS for the costs of providing veterinary 
diagnostic services and import- and export-related services for live 
animals and birds and animal products are contained in 9 CFR 130. We 
are amending the regulations by removing the hourly rate user fees for 
inspection and approval of embryo collection centers and the animals in 
them. We are replacing the hourly rates with a flat rate annual user 
fee, which does not include costs for inspecting any animals in the 
facility.
    The flat rate annual user fee was arrived at using the average 
number of hours required for an APHIS inspector to complete an 
inspection (including travel time), the average number of inspections 
performed during a year (two per center), the average direct labor 
involved, and proportional share of support costs, overhead, and 
departmental charges.
    The flat rate annual user fee of $278.50 per center should not be 
significantly different from what customers have paid per year in the 
past for inspection and approval at hourly rates. Variations should 
generally be a result of different travel times to individual centers.
    There are approximately 90 currently licensed embryo collection 
centers in the United States. Under Small Business Administration (SBA) 
guidelines, an embryo collection center with less than $5 million in 
annual sales qualifies as a small entity. While we could not determine 
exactly how many of the embryo collection centers are ``small 
entities,'' it is likely that the majority of them have less than $5 
million in annual sales. However, since the flat fee should not be 
significantly different from what customers have paid in the past for 
approval and inspection at hourly rates, the effect on customers should 
be minimal.
    This action should also have a minimal impact on the customers of 
embryo collection centers, whether small or large. Any change in cost 
to users that occurs as a result of this action should be small, 
relative to the product value of even a small operation. An average 
animal embryo sells for approximately $400, with certain animal embryos 
ranging in price from $100 to $2500 each. An average collection center 
collects approximately 3,400 animal embryos a year. Considering the 
volume of animal embryos collected at collection facilities per year 
and the value of individual embryos, the effect on user costs should be 
minimal.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12372

    This program/activity is listed in the Catalog of Federal Domestic 
Assistance under No. 10.025 and is subject to Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule: (1) Preempts all State and local laws and 
regulations that are inconsistent with this rule; (2) has no 
retroactive effect; and (3) does not require administrative proceedings 
before parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This rule contains no new information collection or recordkeeping 
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, 
et seq.).

Regulatory Reform

    This action is part of the President's Regulatory Reform 
Initiative, which, among other things, directs agencies to remove 
obsolete and unnecessary regulations and to find less burdensome ways 
to achieve regulatory goals.

List of Subjects in 9 CFR Part 130

    Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry and 
poultry products, Quarantine, Reporting and recordkeeping requirements, 
Tests.
    Accordingly, we are amending 9 CFR part 130 as follows:

PART 130--USER FEES

    1. The authority citation for part 130 continues to read as 
follows:

    Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21 
U.S.C. 102-105, 111, 114,

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114a, 134a, 134b, 134c, 134d, 134f, 135, 136, and 136a; 31 U.S.C. 
3701, 3716, 3717, 3719, and 3720A; 7 CFR 2.22, 2.80, and 371.2(d).

    2. In Sec. 130.8, paragraph (a) is amended by adding a new entry at 
the end of the table to read as follows:


Sec. 130.8  User fees for other services.

    (a) * * *

------------------------------------------------------------------------
                Service                              User fee
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*                  *                  *                    *
                    *                  *                  *
Embryo collection center inspection and  $278.50 for all inspections
 approval.                                required during the year for
                                          facility approval.
------------------------------------------------------------------------

* * * * *


Sec. 130.21  [Amended]

    3. In Sec. 130.21, paragraph (a)(6) is amended by removing the 
words ``embryo or'' and adding the words ``artificial insemination 
center or a'' in their place.

    Done in Washington, DC, this 22nd day of December 1998.
Joan M. Arnoldi,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 98-34523 Filed 12-29-98; 8:45 am]
BILLING CODE 3410-34-P