[Federal Register Volume 68, Number 40 (Friday, February 28, 2003)]
[Proposed Rules]
[Pages 9589-9593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4688]


 ========================================================================
 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.
 
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 

  Federal Register / Vol. 68, No. 40 / Friday, February 28, 2003 / 
Proposed Rules  

[[Page 9589]]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AA81


Fees for Official Inspection and Official Weighing Services

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

ACTION: Proposed rule.

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SUMMARY: The Federal Grain Inspection Service (FGIS) of the Grain 
Inspection, Packers and Stockyards Administration (GIPSA) is proposing 
to increase certain fees by approximately 4.1 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 4.1 percent January 2003 Federal pay increase. 
GIPSA anticipates the increase in the user fees will generate 
approximately $685,000 in additional revenue.

DATES: March 31, 2003.

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: [email protected]. Please state that 
your comments refer to RIN No. 0580-AA81. 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 under the 
United States Grain Standards Act (7 U.S.C. 71 et seq.) 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 Fiscal Year (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. In FY 
2001, GIPSA's operating costs were $25,670,126 with revenue of 
$23,977,240 that resulted in a negative margin of $1,692,886 and a 
negative reserve balance of $2,572,080. Using the most recent data 
available, GIPSA's FY 2002 operating costs were $23,812,292 with 
revenue of $23,322,247 that resulted in a negative margin of $490,045. 
The current reserve negative balance of $3,318,041 is well below the 
desired 3-month reserve of approximately $6 million. GIPSA recognizes 
the fact that retained earnings are well below the desired level. This 
proposed action will not have a major impact on improving GIPSA's 
financial position. GIPSA has been reviewing the fees and will propose 
changes that will address this deficit in the near future.
    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 4.1 
percent for GIPSA employees, effective January 2003, will increase 
GIPSA's costs by approximately $685,000.
    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 2003 workload of 78 million metric 
tons. Based on the review, GIPSA has concluded that an approximate 4.1 
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 4.1 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

[[Page 9590]]

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 21, 2002 (67 FR 13084), and became effective on April 
22, 2002.
    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 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. In FY 2001, GIPSA's 
operating costs were $25,670,126 with revenue of $23,977,240 that 
resulted in a negative margin of $1,692,886 and a negative reserve 
balance of $2,572,080. Using the most recent data available, GIPSA's FY 
2002 operating costs were $23,812,292 with revenue of $23,322,247 that 
resulted in a negative margin of $490,045. The current reserve negative 
balance of $3,318,041 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 2003 averages 4.1 percent for GIPSA 
employees. Overall, program costs are estimated to increase by 
approximately $685,000. GIPSA recognizes that retained earnings are 
well below the desired level and that this proposed action will not 
have a major impact on improving its financial position. As a result, 
GIPSA has been reviewing its overall fee structure. Changes that will 
address this structure will be considered in the near future and will 
be proposed as appropriate. GIPSA remains committed to providing the 
most cost-effective services possible to the grain industry while 
maintaining program quality and integrity.
    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 2003 workload of 78 million metric 
tons. Based on the review, GIPSA has concluded that an approximate 4.1 
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.................................          $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
Noncontract.....................................           41.80           44.00           53.40           65.40
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    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 4.1 percent cost-of-
living increase to salaries and benefits covered by the administrative 
tonnage fee results in an overall increase of an average of 4.1 percent 
to the administrative tonnage fee. Accordingly, GIPSA is proposing an 
approximate 4.1 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 the 
anticipated Federal pay increase is scheduled to become effective on 
January 1, 2003, and 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

[[Page 9591]]



   Table 1.--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS Laboratory \1\
                [(1) Inspection and Weighing Services Hourly Rates (per service representative)]
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                                                     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 \2\
----------------------------------------------------------------------------------------------------------------
1-year contract.................................          $29.80          $32.60          $42.10          $50.60
6-month contract................................           33.00           34.80           44.60           58.40
3-month contract................................           37.00           38.80           48.60           60.40
Noncontract.....................................           43.60           45.80           55.60           68.00
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(2) Additional Tests (cost per test, assessed in addition to
 the hourly rate) \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......................................    $0.1199
        (b) 1,000,001-1,500,000..............................     0.1094
        (c) 1,500,001-2,000,000..............................     0.0591
        (d) 2,000,001-5,000,000..............................     0.0437
        (e) 5,000,001-7,000,000..............................     0.0239
        (f) 7,000,001 +......................................     0.0109 
 
\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).............    $19.80
        (b) Railcar (per carrier).............................     29.50
        (c) Barge (per carrier)...............................    187.50
        (d) Sacked grain (per hour per service representative       0.02
         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 representative       0.02
         plus an administrative fee per hundredweight) (CWT)..
    (iv) Other services
        (a) Submitted sample (per sample--grade and factor)...     11.80
        (b) Warehouseman inspection (per sample)..............     20.00
        (c) Factor only (per factor--maximum 2 factors).......      5.30
        (d) Checkloading/condition examination (use hourly          0.02
         rates from Table 1, plus an administrative fee per
         hundredweight if not previously assessed) (CWT)......
        (e) Reinspection (grade and factor only. Sampling          13.00
         service additional, item (i) above)..................
        (f) Class X Weighing (per hour per service                 57.40
         representative)......................................
    (v) Additional tests (excludes sampling)
        (a) Aflatoxin (per test--other than TLC method).......     29.80
        (b) Aflatoxin (per test--TLC method)..................    113.00
        (c) Corn oil, protein, and starch (one or any               9.00
         combination).........................................
        (d) Soybean protein and oil (one or both).............      9.00
        (e) Wheat protein (per test)..........................      9.00
        (f) Sunflower oil (per test)..........................      9.00
        (g) Vomitoxin (qualitative)...........................     31.00
        (h) Vomitoxin (quantitative)..........................     38.50

[[Page 9592]]

 
        (i) Waxy corn (per test)..............................     10.30
        (j) Canola (per test--00 dip test)....................     10.30
        (k) Pesticide Residue Testing \3\.....................
            (1) Routine Compounds (per sample)................    216.00
            (2) Special Compounds (per service representative)    114.00
        (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)
        (a) Factor only (per factor--max 2 factors)...........     82.00
        (b) Sampling service for Appeals additional (hourly        43.00
         rates from Table 1)..................................
    (ii) Additional tests (assessed in addition to all other
     applicable fees)
        (a) Aflatoxin (per test, other than TLC)..............     30.00
        (b) Aflatoxin (TLC)...................................    120.00
        (c) Corn oil, protein, and starch (one or any              17.20
         combination).........................................
        (d) Soybean protein and oil (one or both).............     17.20
        (e) Wheat protein (per test)..........................     17.20
        (f) Sunflower oil (per test)..........................     17.20
        (g) Vomitoxin (per test--qualitative).................     41.00
        (h) Vomitoxin (per test--quantitative)................     46.00
        (i) Vomitoxin (per test--HPLC Board Appeal)...........    140.00
        (j) Pesticide Residue Testing \3\.....................
            (1) Routine Compounds (per sample)................    216.00
            (2) Special Compounds (per service representative)    114.00
        (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                 82.60
     representative)..........................................
(3) Stowage examination (service-on-request) \3\
    (i) Ship (per stowage space) (Minimum $255.00 per ship)...     51.00
    (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 $2.65 per sample by the Service.


                  Table 3.--Miscellaneous Services \1\
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(1) Grain grading seminars (per hour per service                  $57.40
 representative)\2\...........................................
(2) Certification of diverter-type mechanical samplers (per        57.40
 hour per service representative)\2\..........................
(3) Special weighing services (per hour per service
 representative)\2\
    (i) Scale testing and certification.......................     57.40
    (ii) Evaluation of weighing and material handling systems.     57.40
    (iii) NTEP Prototype evaluation (other than Railroad Track     57.40
     Scales)..................................................
    (iv) NTEP Prototype evaluation of Railroad Track..........     57.40
        Scales (plus usage fee per day for test car)..........    110.00
    (v) Mass standards calibration and reverification.........     57.40
    (vi) Special projects.....................................     57.40
(4) Foreign travel (per day per service representative).......    510.00
(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).......      2.65
(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 $57.40
  per hour.
\2\ Regular business hours--Monday through Friday--service provided at
  other than regular hours charged at the applicable overtime hourly
  rate.



[[Page 9593]]

    Dated: February 24, 2003.
Donna Reifschneider,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 03-4688 Filed 2-27-03; 8:45 am]
BILLING CODE 3410-EN-P