[Federal Register Volume 64, Number 209 (Friday, October 29, 1999)]
[Proposed Rules]
[Pages 58358-58359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28374]


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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. 64, No. 209 / Friday, October 29, 1999 / 
Proposed Rules  

[[Page 58358]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 75

[Docket Number LS-99-06]


Increase in Fees for Federal Seed Testing and Certification 
Services

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Marketing Service (AMS) proposes to increase 
the hourly fee rate charged for voluntary Federal seed testing and 
certification services. The fee rate needs to be increased to cover 
increases in salaries of Federal employees, rent, supplies, replacement 
equipment, and other increased Agency costs.

DATES: Comments must be received on or before December 28, 1999.

ADDRESSES: Send written comments to Richard C. Payne, Acting Chief; 
Seed Regulatory and Testing Branch, Livestock and Seed Program, AMS, 
USDA; Building 306, Room 209, BARC-East; Beltsville, MD 20705-2325. 
Comments may be faxed to (301) 504-8098.
    State that your comments refer to Docket No. LS-99-06 and note the 
date and page number of this issue of the Federal Register.
    Comments received may be inspected at the above location between 
8:00 a.m. and 4:30 p.m., Eastern Time, Monday through Friday, except 
holidays.

FOR FURTHER INFORMATION CONTACT: Richard C. Payne, Acting Chief, Seed 
Regulatory and Testing (SRT) Branch, (301) 504-9430.

SUPPLEMENTARY INFORMATION:

A. Executive Order 12866

    This rule has been determined to be not significant for purposes of 
Executive Order 12866, and therefore, has not been reviewed by the 
Office of Management and Budget (OMB).

B. Regulatory Flexibility Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601 et seq.), the AMS has considered 
the economic impact of this action on small entities. It is determined 
that its provisions would not have a significant economic impact on a 
substantial number of small entities.
    The AMS provides, under the authority of the Agricultural Marketing 
Act (AMA) of 1946, a voluntary, user-fee funded seed testing and 
certification service to approximately 65 businesses per year. Many of 
the users of the testing and certification services would be considered 
small businesses under the criteria established by the Small Business 
Administration (13 CFR 121.601). Over ninety percent of the samples 
tested in this program represent seed and grain scheduled for export. 
Grain is examined for the presence of specified weed and crop seeds 
upon request of the Department's Grain Inspection, Packers and 
Stockyards Administration. A Federal Seed Analysis Certificate, 
containing purity, germination, noxious-weed seed examination, and 
other test results is issued upon completion of the testing. The 
Federal Seed Analysis Certificate is required documentation for 
shipments of seed and grain from the United States entering certain 
countries.
    The AMS regularly reviews its user fee financed programs to 
determine if the fees are adequate. The most recent review determined 
that the existing fee schedule will not generate sufficient revenues to 
cover program costs while maintaining an adequate reserve balance. 
Without a fee increase, FY 2000 revenues for seed testing and 
certification services are projected at $104,000, costs are projected 
at $108,000, and the trust fund balance would be $78,000. With a fee 
increase, FY 2000 revenues are projected at $114,000, costs are 
projected at $113,000, and the trust fund balance would be $83,000.
    This action would raise the hourly rate charged to users of the 
seed testing and certification services. The AMS estimates that this 
proposed rule would yield an additional $10,000 during FY 2000. The 
hourly rate for seed testing and certification services would increase 
by approximately 9.9 percent. The costs to entities will be 
proportional to their use of the service, so that costs are shared 
equitably by all users. The increase in costs to individual firms would 
be, on average, approximately $6.70 per Federal Seed Analysis 
Certificate issued. There would also be an increase of $1.10 for each 
duplicate certificate issued.

C. Civil Justice Reform

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

D. Paperwork Reduction Act

    The information collection requirements that appear in Part 75 of 
the regulations have been previously approved by OMB and assigned OMB 
Control Number 0581-0140 under the Paperwork Reduction Act (44 U.S.C. 
Chapter 35).

Background and Proposed Changes

    The Secretary of Agriculture is authorized by the AMA of 1946, as 
amended, 7 U.S.C. 1621 et seq., to provide voluntary Federal seed 
testing and certification services to facilitate the orderly marketing 
of seed and grain and to enable consumers to obtain the quality of seed 
and grain they desire. The AMA provides that reasonable fees be 
collected from users of the program services to cover, as nearly as 
practicable, the costs of services rendered.
    The AMS regularly reviews programs to determine if fees are 
adequate and if costs are reasonable. This action would increase the 
hourly fee rate and charges for voluntary seed testing and 
certification services provided to the seed and grain industries to 
reflect the costs currently associated with providing the services.
    A recent review of the current hourly fee rate, effective October 
1, 1998, revealed that anticipated revenue will not cover increased 
program costs. Without a fee increase FY 2000 revenues for seed testing 
and certification services are projected at $104,000, costs are 
projected at $108,000, and the trust fund balance would be $78,000. 
With a fee increase,

[[Page 58359]]

FY 2000 revenues are projected at $114,000, costs are projected at 
$113,000, and the trust fund balance would be $83,000.
    The hourly fee for service is established by distributing the 
projected annual program operating costs over the estimated hours of 
service--revenue hours--provided to users of the service. Revenue hours 
include the time spent conducting tests, keeping sample logs, preparing 
Federal Seed Analysis Certificates and storing samples. As program 
operating costs continue to rise, the hourly fees must be adjusted to 
enable the program to remain financially self-supporting as required by 
law. Program operating costs include salaries and fringe benefits of 
seed analysts, supervision, training, and all administrative costs of 
operating the program.
    Employee salaries and benefits account for approximately 90 percent 
of the total budget. A general and locality salary increase of 3.68 
percent for Federal employees involved in the seed testing and 
certification service became effective in January 1999 and has 
materially affected program costs. Another general and locality salary 
increase estimated at 4.8 percent is expected in January 2000.
    This proposed fee increase is necessary to offset increased program 
operating costs resulting from: (1) Salary increases for all Federal 
employees for 1999 and projected increases in 2000, (2) increases in 
rent, (3) increases in costs of supplies needed for testing samples, 
and (4) purchases of replacement equipment needed to provide the 
service.
    In view of these increases in costs, the Agency is proposing to 
increase the hourly rate charged to applicants for the service, 
including the issuance of Federal Seed Analysis Certificates from 
$40.40 to $44.40. The fee for issuing additional duplicate certificates 
would increase from $10.10 to $11.10.
    The proposed action will fully recover all costs associated with 
providing the voluntary testing service to the seed and grain industry. 
Although the proposed user-fee increase would increase costs to 
individual firms, the cost for providing the seed testing and 
certification services would increase by an average of only $6.70 per 
Federal Seed Analysis Certificate and $1.10 for each duplicate 
certificate. It is estimated that the total revenue generated will 
increase by approximately $10,000 annually.

List of Subjects in 7 CFR Part 75

    Administrative practice and procedure, Agricultural commodities, 
Reporting and recordkeeping requirements, Seeds, Vegetables.
    For the reasons set forth in the preamble, 7 CFR part 75 is 
proposed to be amended as follows:

PART 75--REGULATIONS FOR INSPECTION AND CERTIFICATION OF QUALITY OF 
AGRICULTURAL AND VEGETABLE SEEDS

    1. The authority citation for part 75 continues to read as follows:

    Authority: 7 U.S.C. 1622 and 1624


Sec. 75.41  [Amended]

    2. In Sec. 75.41, ``$40.40'' is removed and ``$44.40'' is added in 
its place.


Sec. 75.47  [Amended]

    3. In Sec. 75.47, ``$10.10'' is removed and ``$11.10'' is added in 
its place.

    Dated: October 26, 1999.
Barry L. Carpenter,
Deputy Administrator, Livestock and Seed Program.
[FR Doc. 99-28374 Filed 10-28-99; 8:45 am]
BILLING CODE 3410-02-P