[Federal Register Volume 66, Number 205 (Tuesday, October 23, 2001)]
[Proposed Rules]
[Pages 53550-53551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26592]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 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.
 
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  Federal Register / Vol. 66, No. 205 / Tuesday, October 23, 2001 / 
Proposed Rules  

[[Page 53550]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 75

[Docket Number LS-01-07]


Increase in Fees for Voluntary Federal Seed Testing and 
Certification Services and Establishment of a Fee for Preliminary Test 
Reports

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Marketing Service (AMS) proposes to increase 
the hourly fee rate charged for voluntary Federal seed testing and 
certification services and establish a fee for issuing preliminary test 
reports. The fee rate needs to be increased to cover increases in 
salaries of Federal employees, rent, supplies, replacement equipment, 
and other increased Agency costs. A new fee needs to be established to 
recover the cost of providing preliminary test reports.

DATES: Comments must be received on or before December 24, 2001.

ADDRESSES: Send written comments to Richard C. Payne, Chief, Seed 
Regulatory and Testing Branch, Livestock and Seed Program, AMS, USDA, 
Room 209, Building 306, BARC-East, Beltsville, MD 20705-2325. Comments 
may be faxed to (301) 504-8098.
    State that your comments refer to Docket No. LS-01-07 and note the 
date and page number of this issue of the Federal Register.
    Comments received may be inspected at the above location between 
8:00 a.m. and 4:30 p.m., Eastern Time, Monday through Friday, except 
holidays.

FOR FURTHER INFORMATION CONTACT: Richard C. Payne, Chief, Seed 
Regulatory and Testing Branch, Livestock and Seed Program, AMS, USDA, 
Room 209, Building 306, BARC-East, Beltsville, Maryland 20725-2325; 
telephone: (301) 504-9430, Fax: (301) 504-8098; E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

A. Executive Order 12866

    This rule has been reviewed by the Office of Management and Budget 
(OMB) and determined to be not significant for purposes of Executive 
Order 12866.

B. Regulatory Flexibility Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601 et seq.), the AMS has considered 
the economic impact of this action on small entities. It is determined 
that its provisions would not have a significant economic impact on a 
substantial number of small entities.
    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 121.201). Over ninety-five 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 USDA'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 2002 revenues for seed testing and 
certification services are projected at $138,000, costs are projected 
at $149,000, and the trust fund balance is projected to be $92,000 or 
7.4 months of operating reserve. With a fee increase, FY 2002 revenues 
are projected at $160,000, costs are projected at $151,000, and the 
trust fund balance is projected to be $113,000 or 9.0 months of 
operating reserve.
    This action will raise the hourly rate charged to users of the seed 
testing and certification services. This proposed fee increase is 
necessary to offset increased program operating costs resulting from: 
(1) Salary increases for all Federal employees for 2001 and projected 
increases in 2002, (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.
    The AMS estimates that this proposed rule will yield an additional 
$22,000 during FY 2002. The hourly rate for seed testing and 
certification services will increase by approximately 17 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 $13.00 per Federal 
Seed Analysis Certificate issued. There will also be an increase of 
$1.90 for each duplicate certificate issued. In addition, this action 
will establish a fee of $13.00 to recover the cost of issuing 
preliminary test reports.

C. Civil Justice Reform

    This action has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This rule would 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 any judicial challenge to the provisions of this rule.

D. Paperwork Reduction Act

    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 and Proposed Changes

    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.

[[Page 53551]]

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 programs to determine if fees are 
adequate and if costs are reasonable. This action will increase the 
hourly fee rate and charges 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 March 1, 
2001, revealed that anticipated revenue will not cover increased 
program costs. Without a fee increase, FY 2002 revenues for seed 
testing and certification services are projected at $138,000, costs are 
projected at $149,000, and the trust fund balance is projected to be 
$92,000 or 7.4 months of operating reserve. With a fee increase, FY 
2002 revenues are projected at $160,000, costs are projected at 
$151,000, and the trust fund balance is projected to be $113,000 or 9.0 
months of operating reserve.
    The hourly fee for service is established by distributing the 
projected annual program operating costs over the estimated revenue 
hours of service 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 the salaries and fringe benefits 
of seed analysts, supervision, training, and all administrative costs 
of operating the program.
    Employee salaries and benefits account for approximately 75 percent 
of the total budget. A general and locality salary increase of 3.81 
percent for Federal employees involved in the seed testing and 
certification service became effective in January 2001 and has 
materially affected program costs. Another general and locality salary 
increase is expected in January 2002.
    This proposed fee increase is necessary to offset increased program 
operating costs resulting from: (1) Salary increases for all Federal 
employees for 2001 and projected increases in 2002, (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 proposing to 
increase the hourly rate charged to applicants for the service, 
including the issuance of Federal Seed Analysis Certificates from 
$44.40 to $52.00. The fee for issuing additional duplicate certificates 
will increase from $11.10 to $13.00 and a fee of $13.00 will be 
established for issuing preliminary reports.
    The proposed action will recover the costs associated with 
providing the voluntary testing service to the seed and grain industry. 
Although the proposed 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 $13.00 per 
Federal Seed Analysis Certificate and $1.90 for each duplicate 
certificate. It is estimated that the total revenue generated will 
increase by approximately $22,000 annually.

List of Subjects in 7 CFR Part 75

    Administrative practice and procedure, Agricultural commodities, 
Reporting and recordkeeping requirements, Seeds, Vegetables.
    For the reasons set forth in the preamble, 7 CFR Part 75 is 
proposed to be 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, ``$44.40'' is removed and ``$52.00'' is added in 
its place.
    3. In Sec. 75.43, a new paragraph (c) is added to read as follows:


Sec. 75.43  Laboratory testing.

* * * * *
    (c) The charge for a preliminary report issued prior to completion 
of testing shall be $13.00 and billed in accordance with paragraph (a) 
of this section.


Sec. 75.47  [Amended]

    4. In Sec. 75.47, ``$11.10'' is removed and ``$13.00'' is added in 
its place.

    Dated: October 17, 2001.
Kenneth C. Clayton,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 01-26592 Filed 10-22-01; 8:45 am]
BILLING CODE 3410-02-P