[Federal Register Volume 65, Number 58 (Friday, March 24, 2000)]
[Rules and Regulations]
[Pages 15830-15832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7276]


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

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: Final rule.

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

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

EFFECTIVE DATE: Effective April 24, 2000.

FOR FURTHER INFORMATION CONTACT: Richard C. Payne, Chief, Seed

[[Page 15831]]

Regulatory and Testing Branch, Livestock and Seed Program, AMS, Room 
209, Building 306, BARC-E., Beltsville, Maryland 20705-2325, Telephone 
(301) 504-9430, FAX (301) 504-8098.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final 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).

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have a retroactive effect. 
The 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 that must be exhausted prior 
to judicial challenge to the provision of this rule.

Regulatory Flexibility Act and Paperwork Reduction Act

    The Administrator, AMS, has certified that this action will not 
have a significant impact on a substantial number of small entities as 
defined in the Regulatory Flexibility Act.
    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 will raise the hourly rate charged to users of the seed 
testing and certification services. The AMS estimates that this 
proposed rule will yield an additional $10,000 during FY 2000. The 
hourly rate for seed testing and certification services will 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 will 
be, on average, approximately $6.70 per Federal Seed Analysis 
Certificate issued. There will also be an increase of $1.10 for each 
duplicate certificate issued.
    This action will result in no increase to the previously approved 
information collection requirements for the voluntary Federal seed 
testing and certification service. 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

    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 its user fee financed programs to 
determine if the fees are adequate and if costs are reasonable. This 
action will increase the hourly fee rate and changes 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, 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 of 4.94 percent became effective in January 2000.
    This fee increase is necessary to offset increased program 
operating costs resulting from: (1) salary increases for all Federal 
employees for 1999 and 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 increasing 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 will increase 
from $10.10 to $11.10.
    The action will fully recover all costs associated with providing 
the voluntary testing service to the seed and grain industry. Although 
the user-fee increase will increase costs to individual firms, the cost 
for providing the seed testing and certification services will 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.

[[Page 15832]]

Summary of Public Comment

    A notice of proposed rulemaking was published in the Federal 
Register (64 FR 58358) on October 29, 1998. Interested persons were 
invited to submit comments until December 28, 1999. No comments were 
received.

List of Subjects in 7 CFR Part 75

    Administrative practice and procedure, Agricultural commodities, 
Reporting and record keeping requirements, Seeds, Vegetables.

    For the reasons set forth in the preamble, 7 CFR Part 75 is 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: March 20, 2000.
Barry L. Carpenter,
Deputy Administrator, Livestock and Seed Program.
[FR Doc. 00-7276 Filed 3-23-00; 8:45 am]
BILLING CODE 3410-02-P