[Federal Register Volume 68, Number 90 (Friday, May 9, 2003)]
[Rules and Regulations]
[Pages 24859-24861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11595]



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  Federal Register / Vol. 68, No. 90 / Friday, May 9, 2003 / Rules and 
Regulations  

[[Page 24859]]



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: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is implementing 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 mandated January 2003 Federal pay 
increase.

EFFECTIVE DATE: June 9, 2003.

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 final 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 final 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. The mandated January 2003 general and locality 
salary increase that averages 4.1 percent for all GIPSA employees has 
increased 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. In FY 2002, 
operating costs in the rice program were $3,882,574 with revenue of 
$3,885,121 that resulted in a positive margin of $2,547 and a positive 
reserve of $311,596. The current positive reserve balance of $311,596 
is below the desired 3-month reserve of approximately $1 million.
    GIPSA has reviewed the financial position of our rice inspection 
program based on the 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 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 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 final 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 final rule.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This final action is not intended to have a 
retroactive effect. This final 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 final rule.

Background

    In the February 28, 2003, Federal Register (68 FR 9593) GIPSA 
proposed an approximate 4.1 percent increase in fees for rice 
inspection services performed under the Agricultural Marketing Act of 
1946. 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

[[Page 24860]]

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 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. In FY 
2002, operating costs in the rice program were $3,882,574 with revenue 
of $3,885,121 that resulted in a positive margin of $2,547 and a 
positive reserve of $311,596. The current positive reserve balance of 
$311,596 is below the desired 3-month reserve of approximately $1 
million.
    GIPSA has reviewed the financial position of its rice inspection 
program based on the projected 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 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 inspection programs current unit 
rates are:

----------------------------------------------------------------------------------------------------------------
                                                                                  Brown rice for
                             Service                                Rough rice      processing      Milled rice
----------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------

Comment Review

    GIPSA received no comments in response to the proposed rulemaking 
published February 28, 2003, in the Federal Register at (68 FR 9593).

Final Action

    Section 203 of the AMA (7 U.S.C. 1622) provides for the 
establishment and collection of fees that are reasonable and, as nearly 
as practicable, cover the costs of the service rendered. These fees 
cover the GIPSA costs, including administrative and supervisory costs, 
for the performance of official services, including personnel 
compensation, personnel benefits, travel, rent, communications, 
utilities, contractual services, supplies, and equipment.

List of Subjects in 7 CFR Part 868

    Administrative practice and procedure, Agricultural commodities.

0
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

0
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.)

0
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]
------------------------------------------------------------------------
                                                           Nonregular
            Service \1\               Regular Workday   Workday (Sunday-
                                     (Monday-Saturday)      Holiday)
------------------------------------------------------------------------
Contract (per hour per Service                $46.40            $64.40
 representative)...................
Noncontract (per hour per Service              56.60             78.00
 representative)...................
Export Port Services (per                        .056              .056
 hundredweight)\2\.................
------------------------------------------------------------------------
\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
----------------------------------------------------------------------------------------------------------------
                                                                                  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):

[[Page 24861]]

 
    (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
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, D.C. 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: May 6, 2003.
Donna Reifschneider,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 03-11595 Filed 5-8-03; 8:45 am]
BILLING CODE 3410-EN-P