[Federal Register Volume 67, Number 50 (Thursday, March 14, 2002)]
[Rules and Regulations]
[Pages 11383-11384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6142]



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 Rules and Regulations
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  Federal Register / Vol. 67, No. 50 / Thursday, March 14, 2002 / Rules 
and Regulations  

[[Page 11383]]



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: Final rule.

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

EFFECTIVE DATE: April 15, 2002.

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 received by the Office of Management and Budget 
and has been 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 has determined 
that its provisions will 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 $137,000, costs are projected 
at $172,000, and the trust fund balance is projected to be $47,000 or 
3.28 months of operating reserve. With a fee increase, FY 2002 revenues 
are projected at $160,000, costs are projected at $174,000, and the 
trust fund balance is projected to be $68,000 or 4.69 months of 
operating reserve.
    This action will raise the hourly rate charged to users of the seed 
testing and certification services. This fee increase is necessary to 
offset increased program operating costs resulting from: (1) Salary 
increases for all Federal employees in 2001 and 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 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 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 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 Changes

    The USDA 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. 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,

[[Page 11384]]

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 $137,000, costs are projected 
at $172,000, and the trust fund balance is projected to be $47,000 or 
3.28 months of operating reserve. With a fee increase, FY 2002 revenues 
are projected at $160,000, costs are projected at $174,000, and the 
trust fund balance is projected to be $68,000 or 4.69 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 2001 and 4.77 percent for 2002 for Federal employees 
involved in the seed testing and certification service became effective 
in January 2002 and will affect program costs.
    This fee increase is necessary to offset increased program 
operating costs resulting from: (1) Salary increases for all Federal 
employees for 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 increasing 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 is increasing 
from $11.10 to $13.00 and a fee of $13.00 is established for issuing 
preliminary reports.
    This action will recover the costs associated with providing the 
voluntary testing service to the seed and grain industry. Although the 
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.

Summary of Public Comment

    A notice of proposed rulemaking was published in the Federal 
Register (66 FR 53550) on October 23, 2001. No comments were received.

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 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: March 11, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-6142 Filed 3-13-02; 8:45 am]
BILLING CODE 3410-02-P