[Federal Register Volume 67, Number 1 (Wednesday, January 2, 2002)]
[Proposed Rules]
[Pages 25-29]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-32154]


 ========================================================================
 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. 67, No. 1 / Wednesday, January 2, 2002 / 
Proposed Rules  

[[Page 25]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

[Docket No. FGIS-2001-003a]
RIN 0580-AA79


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 
to increase certain fees by approximately 4.6 percent; i.e., contract 
and noncontract hourly rates, certain unit rates, and the 
administrative tonnage fee increases. These fees apply only 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 4.6 percent anticipated January 2002 Federal pay 
increase. GIPSA anticipates the increase in the user fees will generate 
approximately $703,000 in additional revenue.

DATES: February 1, 2002.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Written comments must be submitted to Tess 
Butler, 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: comments@gipsadc,gov. Please state that your 
comments refer to Docket No. FGIS 2001-003a. 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. Retained earnings balances are adjusted to 
reflect prior year revenue and obligations realized in the year 
reported. 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. Using the most recent data 
available, GIPSA's FY 2001 operating costs were $25,670,126 with 
revenue of $23,977,240 that resulted in a negative margin of 
$1,692,886. The current reserve negative balance of $2,572,080 is well 
below the desired 3-month reserve of approximately $6 million.
    Employee salaries and benefits are major program costs that account 
for approximately 84 percent of GIPSA's total operating budget. The 
anticipated general and locality salary increase that averages 4.6 
percent for GIPSA employees, effective January 2002, will increase 
GIPSA's costs by approximately $703,000.
    GIPSA has reviewed the financial position of the inspection and 
weighing program based on the anticipated increased salary and benefit 
costs along with the projected FY 2002 workload of 77 million metric 
tons. Based on the review, GIPSA has concluded that an approximate 4.6 
percent increase will have to be recovered through increases in fees.
    The proposed 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 32 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 4.6 percent increase in the cost of 
official inspection and weighing services. This proposed 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 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

[[Page 26]]

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 July 9, 2001 (66 FR 35751), and became effective on August 
8, 2001.
    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. Retained earnings balances are adjusted to 
reflect prior year revenue and obligations realized in the year 
reported. 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. Using the most recent data 
available, GIPSA's FY 2001 operating costs were $25,670,126 with 
revenue of $23,977,240 that resulted in a negative margin of 
$1,692,886. The current reserve negative balance of $2,572,080 is well 
below the desired 3-month reserve of approximately $6 million. Employee 
salaries and benefits are major program costs that account for 
approximately 84 percent of GIPSA's total operating budget. The salary 
increase that GIPSA anticipates becoming effective in January 2002 
averages 4.6 percent for GIPSA employees. Overall, program costs are 
estimated to increase by approximately $703,000. GIPSA has reviewed the 
financial position of the inspection and weighing program based on the 
anticipated increased salary and benefit costs, along with the 
projected FY 2002 workload of 77 million metric tons. Based on the 
review, GIPSA has concluded that an approximate 4.6 percent increase 
will have to be recovered through increases in fees.
    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.............................           $27.40           $29.80           $38.60           $46.40
6-month contract............................            30.20            32.00            41.00            53.00
3-month contract............................            34.40            35.60            44.60            55.40
Noncontract.................................            40.00            42.00            51.00            62.60
----------------------------------------------------------------------------------------------------------------

    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 anticipated 4.6 percent cost-of-
living increase to salaries and benefits covered by the administrative 
tonnage fee results in an overall increase of an average of 4.6 percent 
to the administrative tonnage fee. Accordingly, GIPSA is proposing an 
approximate 4.6 percent increase to certain hourly rates, certain unit 
rates, and 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:

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\
----------------------------------------------------------------------------------------------------------------
                                                                                   Saturday,
                                         Monday to Friday    Monday to Friday     Sunday, and        Holidays
                                        (6 a.m. to 6 p.m.)  (6 p.m. to 6 a.m.)    overtime \2\
----------------------------------------------------------------------------------------------------------------
(1) Inspection and Weighing Services Hourly Rates (per service representative)
1-year contract.......................              $28.60              $31.20           $40.40           $48.60
6-month contract......................               31.60               33.40            42.80            56.00
3-month contract......................               36.00               37.20            46.60            58.00

[[Page 27]]

 
Noncontract...........................               41.80               44.00            53.40            65.40
----------------------------------------------------------------------------------------------------------------
(2) Additional Tests (cost per test,
 assessed in addition to the hourly
 rate) \3\
    (i) Aflatoxin (other than Thin                   $8.50
     Layer Chromatography)............
    (ii) Aflatoxin (Thin Layer                       20.00
     Chromatography method)...........
    (iii) Corn oil, protein, and                      1.50
     starch (one or any combination)..
    (iv) Soybean protein and oil (one                 1.50
     or both).........................
    (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...............             $0.1152
        (b) 1,000,001-1,500,000.......              0.1051
        (c) 1,500,001-2,000,000.......              0.0568
        (d) 2,000,001-5,000,000.......              0.0420
        (e) 5,000,001-7,000,000.......              0.0230
        (f) 7,000,001 +...............             0.0105
----------------------------------------------------------------------------------------------------------------
\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)......           $19.25
        (b) Railcar (per carrier)......................            28.90
        (c) Barge (per carrier)........................           185.00
        (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)......             9.95
        (b) Railcar (per carrier)......................            19.25
        (c) Barge (per carrier)........................           110.00
        (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                11.50
         factor).......................................
        (b) Warehouseman inspection (per sample).......            19.50
        (c) Factor only (per factor--maximum 2 factors)             5.15
        (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.                   12.80
         Sampling service additional, item (i) above)..
        (f) Class X Weighing (per hour per service                 55.00
         representative)...............................
    (v) Additional tests (excludes sampling)
        (a) Aflatoxin (per test--other than TLC method)            29.00
        (b) Aflatoxin (per test--TLC method)...........           110.00
        (c) Corn oil, protein, and starch (one or any               8.80
         combination)..................................
        (d) Soybean protein and oil (one or both)......             8.80
        (e) Wheat protein (per test)...................             8.80
        (f) Sunflower oil (per test)...................             8.80
        (g) Vomitoxin (qualitative)....................            30.50
        (h) Vomitoxin (quantitative)...................            37.50
        (i) Waxy corn (per test).......................            10.00
        (j) Canola (per test--00 dip test).............            10.00

[[Page 28]]

 
        (k) Pesticide Residue Testing \3\
            (1) Routine Compounds (per sample).........           210.00
            (2) Special Compounds (per service                    110.00
             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)...            79.50
        (a) Factor only (per factor--max 2 factors)....            41.80
        (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).......            29.50
        (b) Aflatoxin (TLC)............................           118.00
        (c) Corn oil, protein, and starch (one or any              16.80
         combination)..................................
        (d) Soybean protein and oil (one or both)......            16.80
        (e) Wheat protein (per test)...................            16.80
        (f) Sunflower oil (per test)...................            16.80
        (g) Vomitoxin (per test--qualitative)..........            40.00
        (h) Vomitoxin (per test--quantitative).........            45.00
        (i) Vomitoxin (per test--HPLC Board Appeal)....           136.00
        (j) Pesticide Residue Testing \3\
            (1) Routine Compounds (per sample).........           210.00
            (2) Special Compounds (per service                    110.00
             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                 79.20
     representative)...................................
(3) Stowage examination (service-on-request) \3\
    (i) Ship (per stowage space) (Minimum $255.00 per              51.00
     ship).............................................
    (ii) Subsequent ship examinations (same as
     original) (Minimum $153.00 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                  $55.00
 representative) \2\...................................
(2) Certification of diverter-type mechanical samplers             55.00
 (per hour per service representative) \2\.............
(3) Special weighing services (per hour per service
 representative) \2\
    (i) Scale testing and certification................            55.00
    (ii) Evaluation of weighing and material handling              55.00
     systems...........................................
    (iii) NTEP Prototype evaluation (other than                    55.00
     Railroad Track Scales)............................
    (iv) NTEP Prototype evaluation of Railroad Track               55.00
     Scales............................................           110.00
                                                             (plus usage
                                                         fee per day for
                                                               test car)
    (v) Mass standards calibration and reverification..            55.00
    (vi) Special projects..............................            55.00
(4) Foreign travel (per day per service representative)           490.00
(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)
(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 $55.00
  per hour.
\2\ Regular business hours-Monday through Friday-service provided at
  other than regular hours charged at the applicable overtime hourly
  rate.



[[Page 29]]

    Dated: December 26, 2001.
John Pitchford,
Acting Administrator, Grain Inspection, Packers and Stockyards 
Administration.
[FR Doc. 01-32154 Filed 12-31-01; 8:45 am]
BILLING CODE 3410-EN-U