[Federal Register Volume 66, Number 65 (Wednesday, April 4, 2001)]
[Proposed Rules]
[Pages 17817-17821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8145]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 66, No. 65 / Wednesday, April 4, 2001 / 
Proposed Rules  

[[Page 17817]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

[Docket No. FGIS-2001-001a]
RIN 0580-AA75


Fees for Official Inspection and Official Weighing Services

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

ACTION: Proposed rule.

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

SUMMARY: The Federal Grain Inspection Service (FGIS) of the Grain 
Inspection, Packers and Stockyards Administration (GIPSA) is proposing 
an increase in fees of approximately 6.1 percent. Contract and 
noncontract hourly rates, certain unit rates, and the administrative 
tonnage fee will be increased. These fees apply to official inspection 
and weighing services performed in the United States under the United 
States Grain Standards Act (USGSA), as amended. This proposed fee 
increase of 6.1 percent is based on the cost-of-living increases 
utilizing an average of the locality pay adjustments and actual cost of 
performing official inspection services of 2.4 percent and 3.7 percent 
in FY 2000 and FY 2001, respectively. GIPSA anticipates the proposed 
increase in the user fees will generate approximately $575,000 in 
additional revenue.

DATES: Written comments must be received on or before May 4, 2001.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Written comments must be submitted to Sharon 
Vassiliades, GIPSA, USDA, 1400 Independence Avenue, SW, Room 1647-S, 
Washington, DC 20250-3604, or faxed to (202) 690-2755. Comments may 
also be sent by E-mail to: [email protected]. Please state that 
your comments refer to Docket No. FGIS 2001-001a. Comments will be 
available for public inspection in the above office during regular 
business hours (7 CFR 1.27 (b)).

FOR FURTHER INFORMATION CONTACT: David 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, it has been determined that this proposed 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 FY 1999, GIPSA's operating costs were 
$23,176,643 with revenue of $22,971,204, resulting in a negative margin 
of $205,440. In FY 2000, GIPSA's operating costs were $24,146,428 with 
revenue of $23,150,188 that resulted in a negative margin of $996,240 
and a negative reserve balance of $938,147. As of December 31, 2000, 
GIPSA's FY 2001 operating costs were $6,274,097 with revenue of 
$6,066,322 that resulted in a positive margin of $52,486. The current 
reserve negative balance of $792,794 is well below the desired 3-month 
reserve of approximately $3 million.
    Employee salaries and benefits are major program costs that account 
for approximately 84 percent of FGIS's total operating budget. 
Effective May 1, 2000, GIPSA increased fees as published March 30, 
2000, in the Federal Register (65 FR 16783), by 2.4 percent. The 
average Federal salary increase effective January 2000 was 4.8 percent. 
GIPSA had anticipated that savings could offset the remaining 2.4 
percent of the Federal salary increase. GIPSA had anticipated an 
increase in metric tons inspected and/or weighed which in conjunction 
with a projected decrease in the number of paid hours could have offset 
the remaining half of the Federal salary increase. However, there was a 
7 percent decrease in metric tons FGIS inspected in FY 2000. This 
decrease caused a reduction in hours billed. FGIS also experienced a 
shift from noncontracted service hours to contracted service hours, 
which caused an increase in nonrevenue productive hours in some 
locations. These factors were not enough to offset the remaining 2.4 
percent Federal salary increases. The salary increase that became 
effective January 2001 averages 3.7 percent for FGIS employees. 
Overall, program costs are estimated to increase by approximately 
$575,000.
    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 2001 workload of 82 million metric tons. Based on 
the review, we have concluded that a 6.1 percent increase will have to 
be recovered through increases in fees.
    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 that 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 6.1 percent increase in the cost of 
official inspection and weighing services. This increase should not 
significantly affect any business requesting official inspection and 
weighing services. Furthermore, any of these small businesses that wish 
to avoid the fee increase may elect to do

[[Page 17818]]

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 recordkeeping 
requirements imposed by this action. In compliance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. Chapter 35), the information 
collection and recordkeeping 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 proposed 
rule.

Executive Order 12988

    This proposed 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 
proposed rule will not preempt any State or local laws, regulations, or 
policies unless they present irreconcilable conflict with this proposed 
rule. There are no administrative procedures that must be exhausted 
prior to any judicial challenge to the provisions of this proposed 
rule.

Proposed Action

    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 March 30, 2000 (65 FR 16783), and became effective on May 
1, 2000.
    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 FY 1999, GIPSA's operating costs were 
$23,176,643 with revenue of $22,971,204, resulting in a negative margin 
of $205,440. In FY 2000, GIPSA's operating costs were $24,146,428 with 
revenue of $23,150,188 that resulted in a negative margin of $996,240 
and a negative reserve balance of $938,147. As of December 31, 2000, 
GIPSA's FY 2001 operating costs were $6,274,097 with revenue of 
$6,066,322 that resulted in a positive margin of $52,468. The current 
reserve negative balance of 4792,794 is well below the desired 3-month 
reserve of approximately $3 million.
    Employee salaries and benefits are major program costs that account 
for approximately 84 percent of GIPSA's total operating budget. 
Effective May 1, 2000, GIPSA increased fees as published March 30, 
2000, in the Federal Register (65 FR 16783), by 2.4 percent. The 
average Federal salary increase that became effective January 2000 was 
4.8 percent. GIPSA had anticipated that savings could offset the 
remaining 2.4 percent of the Federal salary increase. GIPSA had 
anticipated an increase in metric tons inspected and/or weighed which 
in conjunction with a projected decrease in the number of paid hours 
could have offset the remaining half of the Federal salary increase. 
However, there was a 7 percent decrease in metric tons FGIS inspected 
in FY 2000. This decrease caused a reduction in hours billed. FGIS also 
experienced a shift from noncontracted service hours to contracted 
service hours, which caused an increase in nonrevenue productive hours 
in some locations. These factors were not enough to offset the 
remaining 2.4 percent Federal salary increases. The salary increase 
that became effective January 2001 averages 3.7 percent for FGIS 
employees. Overall, program costs are estimated to increase by 
approximately $575,000.
    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 2001 workload of 82 million metric tons. Based on 
the review, we have concluded that a 6.1 percent increase will have to 
be recovered through increases in fees.
    The current hourly fees are:

----------------------------------------------------------------------------------------------------------------
                                                     Monday to       Monday to
                                                    Friday  (6      Friday  (6       Saturday,
                                                    a.m. to  6      p.m. to  6      Sunday, and      Holidays
                                                       p.m.            a.m.)         overtime
----------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------

    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 6.1 percent cost-of-living 
increase to salaries and benefits covered by the administrative tonnage 
fee results in an overall increase of an average of 6.1 percent to the 
administrative tonnage fee. Accordingly, GIPSA is proposing a 6.1 
percent increase to certain hourly rates, certain unit rates, and 
increase and change the administrative tonnage fee in 7 CFR 800.71, 
Table 1--Fees for Official Services Performed at an Applicant's 
Facility in an Onsite FGIS Laboratory; Table 2--Services Performed at 
Other Than an Applicant's Facility in an FGIS Laboratory; and Table 3, 
Miscellaneous Services.
    This proposed rule provides a 30-day period for interested persons 
to comment. This comment period is deemed appropriate because grain 
export volume and associated requests for official services for such 
grain are projected to further decrease in the coming months due to 
seasonal and other adjustments. Accordingly, given the current level of 
the operating reserve, it would be necessary to implement any fee 
increase that may result from this rulemaking as soon as possible.

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 proposed 
to be amended as follows:

[[Page 17819]]

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

    (1) Inspection and Weighing Services Hourly Rates (per service 
representative).

   Table 1.--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS Laboratory \1\
----------------------------------------------------------------------------------------------------------------
                                                     Monday to       Monday to
                                                    Friday  (6      Friday  (6       Saturday,
                                                    a.m. to  6      a.m. to  6      Sunday, and      Holidays
                                                       p.m.)           p.m.)       overtime \2\
----------------------------------------------------------------------------------------------------------------
1-year contract.................................          $27.40          $29.80          $38.60          $46.40
3-month contract................................           30.20           32.00           41.00           53.60
6-month contract................................           34.40           35.60           44.60           55.40
Noncontract.....................................           40.00           42.00           51.00           62.60
----------------------------------------------------------------------------------------------------------------

    (2) Additional Tests (cost per test, assessed in addition to the 
hourly rate).\3\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)...........................           12.50
(viii) Vomitoxin (quantitative).........................           18.50
(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.....................................         $0.1101
    (b) 1,000,001-1,500,000.............................          0.1005
    (c) 1,500,001-2,000,000.............................          0.0543
    (d) 2,000,001-5,000,000.............................          0.0402
    (e) 5,000,001-7,000,000.............................           0.022
    (f) 7,000,001 +.....................................          0.0100
------------------------------------------------------------------------
\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).......          $19.00
        (b) Railcar (per carrier).......................           28.60
        (c) Barge (per carrier).........................          181.00
        (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                11.20
         factor)........................................
        (b) Warehouseman inspection (per sample)........           19.00
        (c) Factor only (per factor--maximum 2 factors).            5.00

[[Page 17820]]

 
        (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.                   12.40
         Sampling service additional, item (i) above)...
        (f) Class X Weighing (per hour per service                 52.50
         representative)................................
    (v) Additional tests (excludes sampling)
        (a) Aflatoxin (per test--other than TLC method).           28.00
        (b) Aflatoxin (per test--TLC method)............          106.00
        (c) Corn oil, protein, and starch (one or any               8.60
         combination)...................................
        (d) Soybean protein and oil (one or both).......            8.60
        (e) Wheat protein (per test)....................            8.60
        (f) Sunflower oil (per test)....................            8.60
        (g) Vomitoxin (qualitative).....................           29.50
        (h) Vomitoxin (quantitative)....................           36.50
        (i) Waxy corn (per test)........................            9.85
        (j) Canola (per test--00 dip test)..............            9.85
        (k) Pesticide Residue Testing \3\
            (1) Routine Compounds (per sample)..........          207.00
            (2) Special Compounds (per service                    106.00
             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)               79.00
        (a) Factor only (per factor--max 2 factors).....           41.50
        (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)........           27.50
        (b) Aflatoxin (TLC).............................          115.00
        (c) Corn oil, protein, and starch (one or any              16.50
         combination)...................................
        (d) Soybean protein and oil (one or both).......           16.50
        (e) Wheat protein (per test)....................           16.50
        (f) Sunflower oil (per test)....................           16.50
        (g) Vomitoxin (per test--qualitative)...........           39.00
        (h) Vomitoxin (per test--quantitative)..........           44.00
        (i) Vomitoxin (per test--HPLC Board Appeal).....          134.00
        (j) Pesticide Residue Testing \3\...............
            (1) Routine Compounds (per sample)..........          207.00
            (2) Special Compounds (per service                    106.00
             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                 75.80
     representative)....................................
(3) Stowage examination (service-on-request): \3\
    (i) Ship (per stowage space) (minimum $252.50 per              51.00
     ship)..............................................
    (ii) Subsequent ship examinations (same as original)
     (minimum $151.50 per ship)
    (iii) Barge (per examination).......................           41.00
    (iv) All other carriers (per examination)...........          16.00
------------------------------------------------------------------------
\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                  $52.50
 representative) \2\....................................
(2) Certification of diverter-type mechanical samplers             52.50
 (per hour per service representative) \2\..............
(3) Special weighing services (per hour per service
 representative): \2\
    (i) Scale testing and certification.................           52.50
    (ii) Evaluation of weighing and material handling              52.50
     systems............................................
    (iii) NTEP Prototype evaluation (other than Railroad           52.50
     Track Scales)......................................
    (iv) NTEP Prototype evaluation of Railroad Track               52.50
     Scales (plus usage fee per day for test car).......          110.00
    (v) Mass standards calibration and reverification...           52.50
    (vi) Special projects...............................           52.50
(4) Foreign travel (per day per service representative).          475.00
(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).            2.60
(7) Divided-lot certificates (per certificate)..........            1.50
(8) Extra copies of certificates (per certificate)......            1.50
(9) Faxing (per page)...................................            1.50
(10) Special mailing (actual cost)

[[Page 17821]]

 
(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 $52.50
  per hour.
\2\ Regular business hours-Monday through Friday-service provided at
  other than regular hours charged at the applicable overtime hourly
  rate.


    Dated: March 28, 2001.
David R. Shipman,
Acting Administrator, Grain Inspection, Packers and Stockyards 
Administration.
[FR Doc. 01-8145 Filed 4-3-01; 8:45 am]
BILLING CODE 3410-EN-P