[Federal Register Volume 65, Number 51 (Wednesday, March 15, 2000)]
[Proposed Rules]
[Pages 13917-13919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6317]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR PART 97

[Docket Number: ST 99-006]

RIN 0581-AB71


Revision of Plant Variety Protection Office Fees

AGENCY: Agricultural Marketing Agency, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: The Agricultural Marketing Service (AMS) proposes to increase 
Plant Variety Protection Office application, search, and certificate 
issuance fees by approximately 10 percent. Due to operating cost 
increases, the last fee increase in 1995 is no longer adequate to cover 
costs for this fully user-fee funded program. Also, the information 
symbol used by the Plant Variety Protection Office on the seal on 
certificates of Plant Variety Protection is added to the USDA/AMS 
inventory of symbols and would appear in the regulations.

DATES: Comments must be received on or before April 14, 2000.

ADDRESSES: Interested persons are invited to submit comments concerning 
this proposed rule. Comments should be sent in triplicate to 
Commissioner, Plant Variety Protection Office (PVPO), Rm. 500 N.A.L. 
Building, 10301 Baltimore Blvd. Beltsville MD 20705, telephone 1-301-
504-7475; fax 1-301-504-5291, and should refer to the docket title and 
number located in the heading of this document. Comments received will 
be available for public inspection at the same location, between the 
hours of 10 am and 4 p.m. Eastern Standard Time, Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Dr. Ann Marie Thro, Commissioner, 
PVPO; telephone 1-301-504-7475 or fax 1-301-504-5291.

SUPPLEMENTARY INFORMATION:  

I. Executive Order 12866 and the 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 (OMB).
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601 et seq.), the Administrator of AMS has 
considered the economic impact of this action on small entities. There 
are more than 800 users of the PVPO's variety protection service, of 
whom about 100 may file applications in a given year. Some of these 
users are small entities under the criteria established by the Small 
Business Administration (13 CFR 121.201). The Administrator of AMS 
determined that this action would not have a significant economic 
impact on a substantial number of these small entities.
    This rule has also been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provision of this rule.
    The Plant Variety Protection Office (PVPO) administers the Plant 
Variety Protection Act by issuing Certificates of Protection which 
provide legal intellectual property rights to developers of new 
varieties of plants. A Certificate of Protection is awarded to an owner 
of a variety after an examination shows that it is new, distinct from 
other varieties, and genetically uniform and stable through successive 
generations.
    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 programs costs while maintain an adequate reserve balance. 
Without a fee increase, fiscal year (FY) 2000 revenues are projected at 
$1,100,000; costs are projected at $1,300,000, and trust fund balances 
would be $1,500,000. With a fee increase, FY 2000 revenues are 
projected at $1,200,000 and costs are projected at $1,300,000. With the 
increase in revenue, the trust fund balance would be maintained at 
$1,600,000, its level at the end of FY1999.
    This action would raise the fee charged to users of plant variety 
protection. The AMS estimates that this proposed rule would yield an 
additional $100,000 during FY 2000. The fee for plant variety 
protection would increase by approximately 10 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 users would be approximately $275.00 per Plant Variety 
Protection Certificate issued. Plant Variety Protection is

[[Page 13918]]

sought on a voluntary basis. Any decision on their part to discontinue 
the use of plant variety protection would not hinder these entities 
from marketing their varieties. Finally, the addition of the 
information symbol to the USDA/AMS inventory of symbols and its 
inclusion in the regulations would not add further costs to users of 
the variety protection services.

III. Paperwork Reduction Act

    This proposed rule does not contain any information collection or 
record keeping requirements that are subject to the Office of 
Management and Budget (OMB) approval under the Paperwork Reduction Act 
of 1995 (44 U.S.C. Chapter 35).

IV. Background information

    The Plant Variety Protection Program is a voluntary, user fee-
funded service, conducted under the Authority of the Plant Variety 
Protection Act (7 U.S.C. 2321 et seq.) (PVPA) of 1970, as amended. The 
Act authorizes the Secretary of Agriculture to provide intellectual 
property rights that facilitate marketing of new varieties of seed-
propagated crops and potatoes. The act also requires that reasonable 
fees be collected from the users of the services to cover the costs of 
maintaining the program.
    On April 4, 1995, AMS published a rule in the Federal Register (60 
FR 17188) that increased Plant Variety Protection Office fees pursuant 
to amendments to the Plant Variety Protection Act that became effective 
April 4, 1995. In its analysis of projected costs for fiscal year 2000, 
AMS has identified increases in the costs of providing plant variety 
protection. Anticipated revenue will not cover increased program costs. 
Without a fee increase, FY 2000 revenues are projected at $1,100,000; 
costs are projected at $1,300,000, and trust fund balances would be 
$1,500,000. With a fee increase, FY 2000 revenues are projected at 
$1,200,000 and costs are projected at $1,300,000. Due to the increase 
in revenue, the trust fund balance would be maintained at $1,600,000, 
its value at the end of FY 1999. The AMS estimates that this proposed 
rule would yield an additional $100,000 during FY 2000.
    Program operating costs include salaries and benefits of examining 
staff, supervision, training, and all administrative costs of operating 
the program. Cost increases are attributed mainly (80 percent of total 
operating budget) to national and locality pay raises and increased 
benefit costs for Federal employees. A general and locality salary 
increase for Federal employees, totaling approximately 4.4 percent for 
the Washington, D.C. area, will materially affect the costs of plant 
variety protection. Increases are expected to continue in following 
years. Administrative costs, including salary increases, increases in 
rent, increases in costs of supplies and replacement equipment, and 
training have increased, in amounts ranging from 3.1 to 22 percent per 
item. Due to these operating cost increases, the last fee increase in 
1995 is no longer adequate to cover obligations and maintain an 
adequate reserve balance.
    The fees set forth in Sec. 97.175 would be increased. The 
application fee will be increased from $300 to $320, the search fee 
from $2,150 to $2,385, and the issuance fee from $300 to $320. The fees 
for reviving an abandoned application, correcting or reissuance of a 
certificate are increased from $300 to $320. The charge for granting an 
extension for responding to a request is increased from $50 to $55. The 
hourly charge for any other service not specified is increased from $60 
to $66. The fee for appeal to the Secretary (refundable if appeal 
overturns the Commissioner's decision) is increased from $2,750 to 
$3,050. These fee increases are necessary to cover costs of this fee-
funded program.
    The Plant Variety Protection Advisory Board has been informed of 
cost increases, including anticipated salary increases, and consulted 
on a fee increase on March 24, 1999. The Board recommended that fees be 
increased. This proposed rule makes the minimum changes in the 
regulations to implement the recommended increased fees to maintain the 
program as a fee-funded program.
    The form of the official identification symbol, an umbrella over 
plant reproductive organs (a pistil with four stamens) illustrates the 
concept of intellectual property rights protection for sexually-
reproduced crops.
    A 30-day comment period is provided to allow interested persons the 
opportunity to respond to the proposal, including any regulatory and 
informational impact of this action on small businesses. Thirty days is 
deemed appropriate because present fees are inadequate to properly 
cover program costs and additional revenues need to be generated to 
effectively operate the program.

List of Subjects in 7 CFR Part 97

    Plants, seeds.
    For reasons set forth in the preamble, it is proposed that 7 CFR 
part 97 be amended as follows.

PART 97--PLANT VARIETY AND PROTECTION

    1. The authority citation for part 97 continues to read as follows:

    Authority: 7 U.S.C. 2321 et seq.

    2. Section 97.175 is revised to read as follows:


Sec. 97.175  Fees and charges.

    The following fees and charges apply to the services and actions 
specified below:

(a) Filing the application and notifying the public of filing: $320.00
(b) Search or examination: $2,385.00
(c) Allowance and issuance of certificate and notifying public of 
issuance: $320.00
(d) Revive an abandoned application: $320.00
(e) Reproduction of records, drawings, certificates, exhibits, or 
pointed material (copy per page of material): $1.10
(f) Authentication (each page): $1.10
(g) Correcting or re-issuance of a certificate: $320.00
(h) Recording assignments (per certificate/application): $28.00
(i) Copies of 8 x 10 photographs in color: $28.00
(j) Additional fee for reconsideration: $320.00
(k) Additional fee for late payment: $28.00
(l) Additional fee for late replenishment of seed: $28.00
(m) Appeal to Secretary (refundable if appeal overturns the 
Commissioner's decision): $3,050.00
(n) Granting of extensions for responding to a request: $55.00
(o) Field inspections by a representative of the Plant Variety 
Protection Office, made at the request of the applicant, shall be 
reimbursable in full (including travel, per diem or subsistence, and 
salary) in accordance with Standardized Government Travel Regulation.

    3. Section 97.900 is added to read as follows:


Sec. 97.900  Form of official identification symbol.

    The symbol set forth in Figure 1, containing the words ``Plant 
Variety Protection Office'' and ``U.S. Department of Agriculture'', 
shall be the official identification symbol of the Plant Variety 
Protection Office. This information symbol, used by the Plant Variety 
Protection Office on the seal on certificates of Plant Variety 
Protection, has been approved by the Office of Communications to be 
added to the USDA/AMS inventory of symbols. It is approved for use with 
AMS materials.

[[Page 13919]]

[GRAPHIC] [TIFF OMITTED] TP15MR00.001


    Dated: March 8, 2000.
William J. Franks, Jr.,
Deputy Administrator, Science and Technology.
[FR Doc. 00-6317 Filed 3-14-0; 8:45 am]
BILLING CODE 3410-02-P