[Federal Register Volume 65, Number 62 (Thursday, March 30, 2000)]
[Rules and Regulations]
[Pages 16783-16787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7880]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 65, No. 62 / Thursday, March 30, 2000 / Rules 
and Regulations  

[[Page 16783]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AA69


Fees for Official Inspection and Official Weighing Services

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

ACTION: Final rule.

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

SUMMARY: The Federal Grain Inspection Service (FGIS) of the Grain 
Inspection, Packers and Stockyards Administration (GIPSA) is increasing 
fees by approximately 2.4 percent for all hourly rates, certain unit 
rates, and the administrative tonnage fee. These fees apply to official 
inspection and weighing services performed in the United States under 
the United States Grain Standards Act (USGSA), as amended. These 
increases are needed to cover increased operational costs resulting 
from the approximate 4.8 percent mandated January 2000 Federal pay 
increase.

EFFECTIVE DATE: May 1, 2000.

FOR FURTHER INFORMATION CONTACT: Dave Orr, Director, Field Management 
Division, at his E-mail address: [email protected], or telephone 
him at (202) 720-0228.

SUPPLEMENTARY INFORMATION:

Executive Order 12866, Regulatory Flexibility Act, and the 
Paperwork Reduction Act

    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.
    Also, pursuant to the requirements set forth in the Regulatory 
Flexibility Act, James R. Baker, Administrator, GIPSA, has determined 
that this final rule will not have a significant economic impact on a 
substantial number of small entities as defined in the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).
    GIPSA regularly reviews its user-fee financed programs to determine 
if the fees are adequate. GIPSA has and will continue to seek out cost-
saving opportunities and implement appropriate changes to reduce costs. 
Such actions can provide alternatives to fee increases. However, even 
with these efforts, GIPSA's existing fee schedule will not generate 
sufficient revenues to cover program costs while maintaining an 
adequate reserve balance. In fiscal year (FY) 1998, GIPSA's operating 
costs were $23,021,166 with revenue of $21,776,323, resulting in a loss 
of $1,244,843 and a reserve balance of $55,862. In FY 1999, GIPSA's 
operating costs were $22,883,063 with revenue of $22,971,204 that 
resulted in a positive margin of $88,141. As of December 31, 1999, 
GIPSA's FY 2000 operating costs were $6,066,322 with revenue of 
$6,333,381 that resulted in a positive margin of $267,059. Even with 
the positive margins for FY 1999 and thus far for FY 2000, the reserve 
balance was $569,669, below the desired 3-month operating reserve of 
approximately $5.7 million.
    Employee salaries and benefits are major program costs that account 
for approximately 84 percent of GIPSA's total operating budget. A 
general and locality salary increase that averages 4.8 percent for 
GIPSA employees, effective January 2000, will increase program costs by 
approximately $691,613.
    We have reviewed the financial position of our inspection and 
weighing program based on the increased salary and benefit costs, along 
with the projected FY 2000 workload. Based on the review, we have 
concluded that nearly half of the projected $691,613 salary increase 
can be absorbed through existing program efficiencies. Therefore, the 
other half needs to be covered through an increase in fees that will 
collect an estimated $390,000 in additional revenues.
    The fee increase primarily applies to entities engaged in the 
export of grain. Under the provisions of the USGSA, grain exported from 
the United States must be officially inspected and weighed. Mandatory 
inspection and weighing services are provided by GIPSA on a fee basis 
at 37 export facilities. All of these facilities are owned and managed 
by multi-national corporations, large cooperatives, or public entities 
that do not meet the criteria for small entities established by the 
Small Business Administration.
    Some entities who request nonmandatory official inspection and 
weighing services at other than export locations could be considered 
small entities. The impact on these small businesses is similar to any 
other business; that is, an average 2.4 percent increase in the cost of 
official inspection and weighing services. This nominal increase should 
not significantly affect any business requesting official inspection 
and weighing services. Furthermore, any of these businesses that wish 
to avoid the fee increase may elect to do so by using an alternative 
source for inspection and weighing services. Such a decision should not 
prevent the business from marketing its products.
    There would be no additional reporting or record keeping 
requirements imposed by this action. In compliance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. Chapter 35), the information 
collection and record keeping requirements in Part 800 have been 
previously approved by the Office of Management and Budget under 
control number 0580-0013. GIPSA has not identified any other Federal 
rules which may duplicate, overlap, or conflict with this final rule.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action is not intended to have a retroactive 
effect. The USGSA provides in Sec. 87g that no subdivision may require 
or impose any requirements or restrictions concerning the inspection, 
weighing, or description of grain under the Act. Otherwise, this final 
rule will not preempt any State or local laws, regulations, or policies 
unless they present irreconcilable conflict with this final rule. There 
are no administrative procedures that must be exhausted prior to any 
judicial challenge to the provisions of this final rule.

Background

    On January 3, 2000, GIPSA proposed in the Federal Register (65 FR 
75) to increase fees for official inspection and

[[Page 16784]]

weighing services performed under the USGSA by approximately 2.4 
percent.
    The USGSA (7 U.S.C. 71 et seq.) authorizes GIPSA to provide 
official grain inspection and weighing services and to charge and 
collect reasonable fees for performing these services. The fees 
collected are to cover, as nearly as practicable, GIPSA's costs for 
performing these services, including related administrative and 
supervisory costs. The current USGSA fees were published in the Federal 
Register on December 23, 1998 (63 FR 70990), and became effective on 
February 1, 1999. A correction to the minimum fees for stowage 
examinations was published in the Federal Register and became effective 
on February 11, 1999 (64 FR 6783).
    GIPSA regularly reviews its user-fee financed programs to determine 
if the fees are adequate. While GIPSA continues to explore ways to 
reduce its costs, the existing fee schedule will not generate 
sufficient revenues to cover program costs while maintaining an 
adequate reserve balance. In FY 1998, GIPSA's operating costs were 
$23,021,166 with revenue of $21,776,323, resulting in a loss of 
$1,244,843 and a reserve balance of $55,862. In FY 1999, GIPSA's 
operating costs were $22,883,063 with revenue of $22,971,204, resulting 
in a positive margin of $88,141. As of December 31, 1999, GIPSA's FY 
2000 operating costs were $6,066,322 with revenue of $6,333,381 that 
resulted in a positive margin of $267,059. Even with the positive 
margins for FY 1999 and thus far for FY 2000, the reserve balance was 
$569,669, below the desired 3-month operating reserve of approximately 
$5.7 million.
    Employee salaries and benefits are major program costs that account 
for approximately 84 percent of GIPSA's total operating budget. The 
January 2000 general and locality salary increase that averages 4.8 
percent for GIPSA employees will increase program costs by an estimated 
$691,613. Based on a review of projected FY 2000 workload and operating 
costs, the Agency has determined that approximately half of the 
projected $691,613 salary increase can be absorbed through existing 
program efficiencies. The other half needs to be covered through an 
increase in fees that will collect an estimated $390,000 in additional 
revenues.
    The hourly fees covered by this rule will generate revenue to cover 
the basic salary, benefits, and leave for those employees providing 
direct service delivery. Other associated costs, including nonsalary 
related overhead, are collected through other fees contained in the fee 
schedule and are at levels that would not require any change under this 
rule.
    The current hourly fees are:

----------------------------------------------------------------------------------------------------------------
                                                     Monday to       Monday to       Saturday,
                                                  Friday (6 a.m.  Friday (6 p.m.    Sunday, and      Holidays
                                                    to 6 p.m.)      to 6 a.m.)       overtime
----------------------------------------------------------------------------------------------------------------
1-year contract.................................          $25.20          $27.20          $35.40          $42.60
6-month contract................................           27.60           29.40           37.60           49.40
3-month contract................................           31.60           32.60           41.00           51.00
Noncontract.....................................           36.60           38.60           46.80           57.60
----------------------------------------------------------------------------------------------------------------

    GIPSA has also identified certain unit fees, for services not 
performed at an applicant's facility, that contain direct labor costs 
and would require a fee increase. Further, GIPSA has identified those 
costs associated with salaries and benefits that are covered by the 
administrative metric tonnage fee. The 2.4 percent cost-of-living 
increase to salaries and benefits covered by the administrative tonnage 
fee results in an average overall increase of 2.4 percent to the 
administrative tonnage fee.

Comment Review

    GIPSA received two comments during the 60-day comment period. The 
comments came from two grain trade associations. Both associations 
generally supported the proposed rule; however, each one encouraged the 
Agency to seek ways to streamline operations in an effort to reduce 
costs. One commentor suggested that GIPSA strive to reduce overall 
staffing, thereby reducing the impact of future cost-of-living raises. 
The commentor further suggested that GIPSA set a goal for 
administrative and supervisory costs not to exceed 20 percent of the 
total cost of service. Finally, one association suggested the fee 
increases only be applied to the hourly rates and certain unit rates 
and not to the administrative tonnage fee. This, in the association's 
view, would serve as a financial incentive to automate the inspection 
and weighing services at export facilities.
    GIPSA has and will continue to explore ways to reduce costs. 
Current program improvements have enabled the Agency to avoid passing 
the full 4.8 percent salary increase on to its customers through 
increased fees. Similar efforts will continue in the future, including 
the introduction of new technology that improves program efficiencies 
and reduces staffing needs.
    The Agency's efforts to reduce the number of employees providing 
service has been a direct result of program initiatives designed to 
streamline operations at export elevators. The Agency has and will 
continue to explore ways to streamline these operations. Over the past 
several years, automated material handling systems have been introduced 
at export locations. These systems have reduced the number of employees 
needed to perform service. Other efforts currently underway, including 
inspection automation and automation of specific administrative 
functions, will provide more timely and efficient service. These 
initiatives not only address future costs of providing service, but are 
designed to help improve the operational efficiencies of export 
facilities, thereby reducing the overall exporters' costs.
    Increasing only the hourly and unit fees fails to address the 
increased supervision and administrative salary costs covered by the 
administrative tonnage fee. The recommendation to establish a 20 
percent cap on supervision and administrative costs reflects a strong 
desire to control costs. The USGSA has had a 40 percent cap since FY 
1985. Since that time, the Agency has operated well below that level 
and will continue to establish appropriate goals and objectives to 
address future supervision and administrative costs.
    Efforts to contain and reduce these costs have and will continue to 
be taken. However, these efforts will not adequately cover the 
increased salary costs incurred by the pay raise. GIPSA, therefore, 
must increase all hourly fees, certain unit fees, and the 
administrative tonnage fee by 2.4 percent in order to recover the 
increased supervision administrative costs.

Final Action

    Accordingly, GIPSA is applying an approximate 2.4 percent increase 
to

[[Page 16785]]

those hourly rates, certain unit rates, and the administrative tonnage 
fee, as proposed, in 7 CFR 800.71. Table 1--Fees for Official Services 
Performed at an Applicant's Facility in an Onsite GIPSA Laboratory; 
Table 2--Services Performed at Other Than an Applicant's Facility in a 
GIPSA Laboratory; and Table 3, Miscellaneous Services.

List of Subjects in 7 CFR Part 800

    Administrative practice and procedure; Grain.

    For the reasons set out in the preamble, 7 CFR Part 800 is amended 
as follows:

PART 800--GENERAL REGULATIONS

    1. The authority citation for part 800 continues to read as 
follows:

    Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C. 
71 et seq.)
    2. Section 800.71 is amended by revising Schedule A in paragraph 
(a) to read as follows:


Sec. 800.71  Fees assessed by the Service.

    (a) * * *
Schedule A.--Fees for Official Inspection and Weighing Services 
Performed in the United States.

   Table 1.--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS Laboratory \1\
----------------------------------------------------------------------------------------------------------------
                                                     Monday to       Monday to       Saturday,
                                                  Friday (6 a.m.  Friday (6 p.m.    Sunday, and      Holidays
                                                    to 6 p.m.)      to 6 a.m.)     Overtime \2\
----------------------------------------------------------------------------------------------------------------
                 (1) Inspection and Weighing Services Hourly Rates (per service representative)
----------------------------------------------------------------------------------------------------------------
1-year contract.................................          $25.80          $28.00          $36.40          $43.60
6-month contract................................           28.40           30.20           38.60           50.60
3-month contract................................           32.40           33.40           42.00           52.20
Noncontract.....................................           37.60           39.60           48.00           59.00
----------------------------------------------------------------------------------------------------------------


(2) Additional Tests (cost per test, assessed in
 addition to the hourly rate) \3\
    (i) Aflatoxin (other than Thin Layer Chromatography)           $8.50
    (ii) Aflatoxin (Thin Layer Chromatography method)...           20.00
    (iii) Corn oil, protein, and starch (one or any                 1.50
     combination).......................................
    (iv) Soybean protein and oil (one or both)..........            1.50
    (v) Wheat protein (per test)........................            1.50
    (vi) Sunflower oil (per test).......................            1.50
    (vii) Vomitoxin (qualitative).......................            7.50
    (viii) Vomitoxin (quantitative).....................           12.50
    (ix) Waxy corn (per test)...........................            1.50
    (x) Fees for other tests not listed above will be
     based on the lowest noncontract hourly rate.
    (xi) Other services
        (a) Class Y Weighing (per carrier)
            (1) Truck/container.........................             .30
            (2) Railcar.................................            1.25
            (3) Barge...................................            2.50
(3) Administrative Fee (assessed in addition to all
 other applicable fees, only one administrative fee will
 be assessed when inspection and weighing services are
 performed on the same carrier).
    (i) All outbound carriers (per-metric-ton) \4\
        (a) 1-1,000,000.................................         $0.1038
        (b) 1,000,001-1,500,000.........................          0.0947
        (c) 1,500,001-2,000,000.........................          0.0512
        (d) 2,000,001-5,000,000.........................          0.0379
        (e) 5,000,001-7,000,000.........................          0.0205
        (f) 7,000,001+..................................         0.0092
\1\ Fees apply to original inspection and weighing, reinspection, and
  appeal inspection service and include, but are not limited to,
  sampling, grading, weighing, prior to loading stowage examinations,
  and certifying results performed within 25 miles of an employee's
  assigned duty station. Travel and related expenses will be charged for
  service outside 25 miles as found in Sec.  800.72 (a).
\2\ Overtime rates will be assessed for all hours in excess of 8
  consecutive hours that result from an applicant scheduling or
  requesting service beyond 8 hours, or if requests for additional
  shifts exceed existing staffing.
\3\ Appeal and reinspection services will be assessed the same fee as
  the original inspection service.
\4\ The administrative fee is assessed on an accumulated basis beginning
  at the start of the Service's fiscal year (October 1 each year).


Table 2.--Services Performed at Other Than an Applicant's Facility in an
                           FGIS Laboratory 1 2
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(1) Original Inspection and Weighing (Class X) Services
    (i) Sampling only (use hourly rates from Table 1)
    (ii) Stationary lots (sampling, grade/factor, &
     checkloading)
        (a) Truck/trailer/container (per carrier).......          $18.50
        (b) Railcar (per carrier).......................           28.30
        (c) Barge (per carrier).........................          178.50
        (d) Sacked grain (per hour per service                      0.02
         representative plus an administrative fee per
         hundredweight) (CWT)...........................
    (iii) Lots sampled online during loading (sampling
     charge under (i) above, plus):
        (a) Truck/trailer container (per carrier).......            9.85
        (b) Railcar (per carrier).......................           19.10
        (c) Barge (per carrier).........................          108.10
        (d) Sacked grain (per hour per service                      0.02
         representative plus an administrative fee per
         hundredweight) (CWT)...........................
    (iv) Other services
        (a) Submitted sample (per sample--grade and                10.90
         factor)........................................

[[Page 16786]]

 
        (b) Warehouseman inspection (per sample)........           18.00
        (c) Factor only (per factor--maximum 2 factors).            4.70
        (d) Checkloading/condition examination (use                 0.02
         hourly rates from Table 1, plus an
         administrative fee per hundredweight if not
         previously assessed) (CWT).....................
        (e) Reinspection (grade and factor only.                   11.90
         Sampling service additional, item (i) above)...
        (f) Class X Weighing (per hour per service                 49.20
         representative)................................
    (v) Additional tests (excludes sampling)
        (a) Aflatoxin (per test--other than TLC method).           26.30
        (b) Aflatoxin (per test--TLC method)............          104.00
        (c) Corn oil, protein, and starch (one or any               8.30
         combination)...................................
        (d) Soybean protein and oil (one or both).......            8.30
        (e) Wheat protein (per test)....................            8.30
        (f) Sunflower oil (per test)....................            8.30
        (g) Vomitoxin (qualitative).....................           26.70
        (h) Vomitoxin (quantitative)....................           31.80
        (i) Waxy corn (per test)........................            9.60
        (j) Canola (per test--00 dip test)..............            9.60
        (k) Pesticide Residue Testing \3\
            (1) Routine Compounds (per sample)..........          204.80
            (2) Special Compounds (per service                    102.40
             representative)............................
        (l) Fees for other tests not listed above will
         be based on the lowest noncontract hourly rate
         from Table 1.
(2) Appeal inspection and review of weighing service.\4\
    (i) Board Appeals and Appeals (grade and factor)....           78.50
        (a) Factor only (per factor--max 2 factors).....           40.60
        (b) Sampling service for Appeals additional
         (hourly rates from Table 1)
    (ii) Additional tests (assessed in addition to all
     other applicable fees)
        (a) Aflatoxin (per test, other than TLC)........           26.30
        (b) Aflatoxin (TLC).............................          104.00
        (c) Corn oil, protein, and starch (one or any              16.20
         combination)...................................
        (d) Soybean protein and oil (one or both).......           16.20
        (e) Wheat protein (per test)....................           16.20
        (f) Sunflower oil (per test)....................           16.20
        (g) Vomitoxin (per test--qualitative)...........           37.00
        (h) Vomitoxin (per test--quantitative)..........           42.10
        (i) Vomitoxin (per test--HPLC Board Appeal).....          131.10
        (j) Pesticide Residue Testing \3\
            (1) Routine Compounds (per sample)..........          204.80
            (2) Special Compounds (per service                    102.40
             representative)............................
        (k) Fees for other tests not listed above will
         be based on the lowest noncontract hourly rate
         from Table 1.
    (iii) Review of weighing (per hour per service                 71.40
     representative)....................................
(3) Stowage examination (service-on-request) \3\
    (i) Ship (per stowage space) (minimum $252.50 per              50.50
     ship)..............................................
    (ii) Subsequent ship examinations (same as original)
     (minimum $151.50 per ship)
    (iii) Barge (per examination).......................           40.50
    (iv) All other carriers (per examination)...........          15.50
------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, reinspection, and
  appeal inspection service and include, but are not limited to,
  sampling, grading, weighing, prior to loading stowage examinations,
  and certifying results performed within 25 miles of an employee's
  assigned duty station. Travel and related expenses will be charged for
  service outside 25 miles as found in Sec.  800.72 (a).
\2\ An additional charge will be assessed when the revenue from the
  services in Schedule A, Table 2, does not cover what would have been
  collected at the applicable hourly rate as provided in Sec.  800.72
  (b).
\3\ If performed outside of normal business, 1\1/2\ times the applicable
  unit fee will be charged.
\4\ If, at the request of the Service, a file sample is located and
  forwarded by the Agency for an official agency, the Agency may, upon
  request, be reimbursed at the rate of $2.50 per sample by the Service.


                  Table 3.-- Miscellaneous Services \1\
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(1) Grain grading seminars (per hour per service                  $49.20
 representative) \2\....................................
(2) Certification of diverter-type mechanical samplers             49.20
 (per hour per service representative) \2\..............
(3) Special weighing services (per hour per service
 representative) \2\
    (i) Scale testing and certification.................           49.20
    (ii) Evaluation of weighing and material handling              49.20
     systems............................................
    (iii) NTEP Prototype evaluation (other than Railroad           49.20
     Track Scales)......................................
    (iv) NTEP Prototype evaluation of Railroad Track               49.20
     Scales (plus usage fee per day for test car).......          110.00
    (v) Mass standards calibration and reverification...           49.20
    (vi) Special projects...............................           49.20
(4) Foreign travel (per day per service representative).          445.40
(5) Online customized data EGIS service
    (i) One data file per week for 1 year...............          500.00
    (ii) One data file per month for 1 year.............          300.00
(6) Samples provided to interested parties (per sample).            2.50
(7) Divided-lot certificates (per certificate)..........            1.50
(8) Extra copies of certificates (per certificate)......            1.50
(9) Faxing (per page)...................................            1.50

[[Page 16787]]

 
(10) Special mailing (actual cost)
(11) Preparing certificates onsite or during other than
 normal business hours (use hourly rates from Table 1)
------------------------------------------------------------------------
\1\ Any requested service that is not listed will be performed at $49.20
  per hour.
\2\ Regular business hours--Monday through Friday--service provided at
  other than regular hours charged at the applicable overtime hourly
  rate.

* * * * *

    Date: March 21, 2000.
James R. Baker,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 00-7880 Filed 3-29-00; 8:45 am]
BILLING CODE 3410-EN-U