[Federal Register Volume 65, Number 149 (Wednesday, August 2, 2000)]
[Rules and Regulations]
[Pages 47243-47245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19452]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 149 / Wednesday, August 2, 2000 / 
Rules and Regulations  

[[Page 47243]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 97

[Docket number ST 99-006 FR]
RIN 0581-AB71


Revision of Plant Variety Protection Office Fees

AGENCY: Agricultural Marketing Agency, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service (AMS) is increasing 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.

EFFECTIVE DATE: September 1, 2000.

FOR FURTHER INFORMATION CONTACT: Dr. Ann Marie Thro, Commissioner, 
Plant Variety Protection Office, Rm. 500 N.A.L. Building, 10301 
Baltimore Blvd. Beltsville MD 20705, telephone 1-301-504-5518 and -
7475; fax 1-301-504-5291.

SUPPLEMENTARY INFORMATION:

I. Executive Orders 12866 and 12988, and the Regulatory Flexibility 
Act

    This 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).
    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.
    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.
    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 maintaining 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 will be maintained at 
$1,600,000, its level at the end of FY 1999.
    This action raises the fee charged to users of plant variety 
protection. The AMS estimates that this 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 will 
be approximately $275.00 per Plant Variety Protection Certificate 
issued. Plant Variety Protection is sought on a voluntary basis. Any 
decision on their part to discontinue the use of plant variety 
protection would not prevent 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 will not 
add further costs to users of the variety protection services.

II. Paperwork Reduction Act

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

III. Background information

    The Plant Variety Protection Program is a voluntary, user fee-
funded service, conducted under the Authority of the Plant Variety 
Protection Act (PVPA), 7 U.S.C. 2321 et seq. The Act authorizes the 
Secretary of Agriculture to provide intellectual property rights that 
facilitate marketing of new varieties of seed-propagated crops and 
tubers. 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 became effective 
April 4, 1995. In its analysis of projected costs for FY 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

[[Page 47244]]

$1,600,000, its value at the end of FY 1999. The AMS estimates that 
this 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 4.8 percent for 
the Washington, D.C. metropolitan 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 Section 97.175 will 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 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.

Summary of Public Comment

    A notice of proposed rule making was published in the Federal 
Register (65 FR 13917) on March 15, 2000. A 30-day comment period was 
provided to allow interested persons the opportunity to respond to the 
proposal, including any regulatory and informational impact of this 
action on small businesses.
    The commentor observed that a charge for ``any other service not 
specified'' is in the current fee schedule, but was omitted from the 
proposed revised regulatory text. The hourly charge for ``any other 
service not specified'' was omitted from the list of fees and charges 
in Sec. 97.175 due to an electronic error; however, it was included in 
the discussion of proposed increases in the text of the ``Background'' 
section of the proposed rule as published on March 15. The proposed 
increase was from $60 to $66. Accordingly, the text of Sec. 97.175 is 
changed to reflect this fee. The comment also noted that first priority 
should be given to the examination and issue of certificates. This is 
done to the extent practicable.

List of Subjects in 7 CFR Part 97

    Administrative practice and procedure, Labeling, Laboratories, 
Plants, Reporting and recordkeeping requirements.
    For reasons set forth in the preamble, 7 CFR part 97 is 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 
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 Regulations.
    (p) Any other service not covered above will be charged for at 
rates prescribed by the Commissioner, but in no event shall they exceed 
$66.00 per employee-hour.

    2. A new 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 47245]]

[GRAPHIC] [TIFF OMITTED] TR02AU00.006


    Dated: July 27, 2000.
Robert L. Epstein,
Acting Deputy Administrator, Science and Technology.
[FR Doc. 00-19452 Filed 8-1-00; 8:45 am]
BILLING CODE 3410-02-P