[Federal Register Volume 68, Number 40 (Friday, February 28, 2003)]
[Proposed Rules]
[Pages 9593-9595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4689]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868

RIN 0580-AA82


Fees for Rice Inspection Services

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

ACTION: Proposed rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is proposing an approximate 4.1 percent increase in fees for 
all hourly rates and certain unit rates for inspection services 
performed under the Agricultural Marketing Act (AMA) of 1946 in the 
rice inspection program. These increases are needed to cover increased 
operational costs resulting from the January 2003 Federal pay increase.

DATES: Written comments must be submitted on or before 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, 
Washington, DC 20250-3604, or faxed to (202) 690-2755. Comments may 
also be sent by electronic mail or Internet to: 
[email protected]. All comments should make reference to the date 
and page number of this issue of the Federal Register and 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, the Regulatory Flexibility Act, and the 
Paperwork Reduction Act

    This proposed 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, Donna Reifschneider, Administrator, GIPSA, has 
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 programs to determine if the 
fees are adequate and continues to seek cost-saving opportunities and 
implement appropriate changes to reduce costs. Such actions can provide 
alternatives to fee increases. Employee salaries and benefits are major 
program costs that account for approximately 84 percent of GIPSA's 
total operating budget. An anticipated January 2003 general and 
locality salary increase that averages 4.1 percent for all GIPSA 
employees will increase program costs in the rice inspection program.
    The existing fee schedule for GIPSA's rice inspection program will 
not generate sufficient revenues to cover program costs while 
maintaining an adequate reserve balance. Fees for this program are in 
Tables 1 and 2 of 7 CFR 868.91. In Fiscal Year (FY) 2000, operating 
costs in the rice program were $4,034,964 with revenue of $4,837,116 
that resulted in a positive margin of $802,152 and a positive reserve 
of $406,359. In FY 2001, operating costs in the rice program were 
$3,842,326 with revenue of $4,102,960 that resulted in a positive 
margin of $260,634 and a positive reserve of $611,654. Using the most 
recent data available, GIPSA's FY 2002 operating costs were $3,382,574 
with revenue of $3,385,121 that resulted in a positive margin of 
$2,547. The current positive reserve balance of $311,596 is well below 
the desired 3-month reserve of approximately $1 million.
    GIPSA has reviewed the financial position of our rice inspection 
program based on the anticipated increased salary and benefit costs, 
along with the projected FY 2003 workload. Even though the financial 
status of the rice inspection program has improved, GIPSA has concluded 
that it cannot absorb the increased costs caused by the anticipated 4.1 
percent salary increase with the small positive reserve balance. This 
fee increase will collect an estimated $155,500 in additional revenues 
in the rice program based on the projected FY 2003 work volume of 3.4 
million metric tons.
    This fee increase applies primarily to GIPSA customers that 
produce, process, and market rice for the domestic and international 
markets. There are approximately 550 such customers located primarily 
in Arkansas, Louisiana, and Texas. Many of these customers meet the 
criteria for small entities established by the Small Business 
Administration criteria for small businesses. Even though the fees are 
being increased, the proposed increase will not be excessive (4.1 
percent) and should not significantly affect those entities. Those 
entities are under no obligation to use GIPSA's service and, therefore, 
any decision on their part to discontinue the use of service should not 
prevent them from marketing their products.
    There will be no additional reporting or record keeping 
requirements imposed by this proposed action. In compliance with the 
Paperwork Reduction Act of 1995 (44 U.S.C. 35), the information 
collection and record keeping requirements in Part 868 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 proposed action is not intended to have a 
retroactive effect. This proposed action will not preempt any State or 
local laws, regulations, or policies unless they present irreconcilable 
conflict with this 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 current rice fees were published in the Federal Register on 
April 4, 2001 (66 FR 17775), and became effective on May 4, 2001. Under 
the provisions of the AMA (7 U.S.C. 1621, (et seq.)), rice inspection 
services are provided upon request and GIPSA must collect a fee from 
the customer to cover the cost of providing such services. Section 
203(h) of the AMA (7 U.S.C. 1622(h)) provides for the establishment and 
collection of fees that are reasonable and, as nearly as practicable, 
cover the costs of the services rendered. These fees cover the GIPSA 
administrative and supervisory costs for the performance of official 
services, including personnel compensation and benefits, travel, rent, 
communications, utilities, contractual services, supplies, and 
equipment.
    The existing fee schedule for GIPSA's rice inspection program will 
not generate sufficient revenues to cover program costs while 
maintaining an adequate reserve balance. Fees for this program are in 
Tables 1 and 2 of 7 CFR 868.91. In FY 2000, operating costs in

[[Page 9594]]

the rice program were $4,034,964 with revenue of $4,837,116 that 
resulted in a positive margin of $802,152 and a positive reserve of 
$406,359. In FY 2001, operating costs in the rice program were 
$3,842,326 with revenue of $4,102,960 that resulted in a positive 
margin of $260,634 and a positive reserve of $611,654. Using the most 
recent data available, GIPSA's FY 2002 operating costs were $3,382,574 
with revenue of $3,385,121 that resulted in a positive margin of 
$2,547. The current positive reserve balance of $311,596 is well below 
the desired 3-month reserve of approximately $1 million.
    GIPSA has reviewed the financial position of its rice inspection 
program based on the anticipated salary and benefit costs, along with 
the projected FY 2003 workload. Even though the financial status of the 
rice inspection program has improved, GIPSA has concluded that with the 
small positive reserve balance it cannot absorb the increased costs 
caused by the 4.1 percent salary increase. This fee increase will 
collect an estimated $155,500 in additional revenues in the rice 
program based on the projected FY 2003 work volume of 3.4 million 
metric tons.
    In 7 CFR 868.91, Table 1--Hourly Rates/Unit Rate Per CWT and Table 
2--Unit Rates, currently the regular workday contract and noncontract 
fees are $44.60 and $54.30, respectively, while the nonregular workday 
contract and noncontract fees are $61.80 and $75.00, respectively. The 
unit rate per hundredweight for export port services is currently 
$0.054 per hundredweight. The rice current unit rates are:

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                                                                                  Brown rice for
                             Service                                Rough rice      processing      Milled rice
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Inspection for quality (per lot, sublot, or sample inspection)..          $34.80          $30.00          $21.50
Factor analysis for any single factor (per factor):               ..............  ..............  ..............
    (a) Milling yield (per sample)..............................           27.00           27.00  ..............
    (b) All other factors (per factor)..........................           12.90           12.90           12.90
Total oil and free fatty acid...................................  ..............           42.60           42.60
Interpretive line samples:
    (a) Milling degree (per set)................................  ..............  ..............           91.00
    (b) Parboiled light (per sample)............................  ..............  ..............           22.60
Extra copies of certificates (per copy).........................            3.00            3.00            3.00
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    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, rice inspection volume and associated requests for 
official services for such rice inspection requests 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 868

    Administrative practice and procedure, Agricultural commodities.
    For reasons set out in the preamble, 7 CFR Part 868 is amended as 
follows:

PART 868--GENERAL REGULATIONS AND STANDARDS FOR CERTAIN 
AGRICULTURAL COMMODITIES

    1. The authority citation for part 868 continues to read as 
follows:

    Authority: Secs. 202-208, 60 Stat. 1087 as amended (7 U.S.C. 
1621, et seq.)
    2. Section 868.91 is revised to read as follows:


Sec.  868.91  Fees for certain Federal rice inspection services.

    The fees shown in Tables 1 and 2 apply to Federal rice inspection 
services.

                                    Table 1.--Hourly Rates/Unit Rate Per CWT
                                   [Fees for Federal Rice Inspection Services]
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                                                                                                   Nonregular
                                Service \1\                                   Regular workday   workday (Sunday-
                                                                             (Monday-Saturday)      Holiday)
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Contract (per hour per Service representative).............................           $46.40            $64.40
Noncontract (per hour per Service representative)..........................            56.60             78.00
Export Port Services (per hundredweight) \2\...............................              .056              .056
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\1\ Original and appeal inspection services include: Sampling, grading, weighing, and other services requested
  by the applicant when performed at the applicant's facility.
\2\ Services performed at export port locations on lots at rest.


                                              Table 2.--Unit Rates
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                                                                                  Brown rice for
                          Service \1,3\                             Rough rice      processing      Milled rice
----------------------------------------------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample inspection)..          $35.50          $30.50          $22.00
Factor analysis for any single factor (per factor):
    (a) Milling yield (per sample)..............................           27.50           27.50  ..............
    (b) All other factors (per factor)..........................           13.20           13.20           13.20
Total oil and free fatty acid...................................  ..............           43.00           43.00

[[Page 9595]]

 
Interpretive line samples: \2\
    (a) Milling degree (per set)................................  ..............  ..............           94.00
    (b) Parboiled light (per sample)............................  ..............  ..............           23.00
Extra copies of certificates (per copy).........................            3.00            3.00           3.00
----------------------------------------------------------------------------------------------------------------
\1\ Fees apply to determinations (original or appeals) for kind, class, grade, factor analysis, equal to type,
  milling yield, or any other quality designation as defined in the U.S. Standards for Rice or applicable
  instructions, whether performed singly or in combination at other than at the applicant's facility.
\2\ Interpretive line samples may be purchased from the U.S. Department of Agriculture, GIPSA, FGIS, Technical
  Services Division, 10383 North Ambassador Drive, Kansas City, Missouri 64153-1394. Interpretive line samples
  also are available for examination at selected FGIS field offices. A list of field offices may be obtained
  from the Director, Field Management Division, USDA, GIPSA, FGIS, 1400 Independence Avenue, SW., STOP 3630,
  Washington, DC 20250-3630. The interpretive line samples illustrate the lower limit for milling degrees only
  and the color limit for the factor ``Parboiled Light'' rice.
\3\ Fees for other services not referenced in Table 2 will be based on the noncontract hourly rate listed in
  Sec.   868.90, Table 1.


    Dated: February 24, 2003.
Donna Reifschneider,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 03-4689 Filed 2-27-03; 8:45 am]
BILLING CODE 3410-EN-P