[Federal Register Volume 68, Number 138 (Friday, July 18, 2003)]
[Proposed Rules]
[Pages 42644-42646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18265]


 ========================================================================
 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. 68, No. 138 / Friday, July 18, 2003 / 
Proposed Rules  

[[Page 42644]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868

RIN 0580-AA84


Fees for Processed Commodity Analytical Services

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

ACTION: Proposed rule.

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

SUMMARY: The Federal Grain Inspection Service (FGIS), a program of the 
Grain Inspection, Packers and Stockyards Administration (GIPSA), is 
proposing to increase fees for the analytical testing of processed 
commodities and remove certain tests from the fee schedule for services 
that are no longer requested. These tests apply only to official 
processed commodity testing services performed under the Agricultural 
Marketing Act of 1946. These changes are needed to generate revenue 
sufficient to cover, as nearly as practicable, rising fixed costs and 
the 4.1 percent January 2003 Federal pay increase.
    GIPSA anticipates that the increase in user fees will generate 
approximately $135,000 in additional revenue.

DATES: Written comments must be filed before September 16, 2003.

ADDRESSES: Interested persons are invited to submit 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].
    All comments received will be made available for public inspection 
in the above office during regular business hours (7 CFR 1.27 (b)).

FOR FURTHER INFORMATION CONTACT: Steven Tanner, Director, Technical 
Services Division, at his e-mail address: [email protected] or 
telephone him at (816) 891-0401.

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 
Office of Management and Budget (OMB).
    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-financed programs to determine 
if the fees are adequate. Additionally, GIPSA has and will continue to 
seek out cost saving opportunities and implement appropriate changes to 
reduce costs. Such actions can provide alternatives to new or increased 
fees. However, even with these efforts, GIPSA has determined that its 
existing fee schedule will not generate sufficient revenues to cover 
program costs for providing processed commodity testing services. 
Further revenue losses are projected if adjustments to the existing fee 
schedule are not made. In FY 2002, GIPSA's operating costs for the 
processed commodity testing program were $233,707 with revenue of 
$104,380 that resulted in a negative margin of $129,327.
    GIPSA has reviewed the financial position of the processed 
commodity testing program and concluded that $135,000 in additional 
yearly revenue is needed to fully recover operating costs. This is 
based on projected program costs of approximately of $240,000 a year 
and an estimated testing workload of approximately 1,700 samples per 
year. These changes are needed to generate revenue sufficient to cover, 
as nearly as practicable, operational costs resulting from a steep 
decline in requests for services and the associated loss of revenue and 
increased operational costs resulting from the mandated 4.1 percent 
January 2003 Federal pay increase. In Fiscal Year 1999, the number of 
samples tested was 16,377, with a revenue of $1,475,579; in FY 2000, 
12,872 samples and $1,212,215; in FY 2001, 3,620 samples and $219,033 
in revenue; in FY 2002, 1,755 samples and $104,380 in revenue.
    The proposed rule will increase the fees charged to businesses for 
voluntary processed commodity analytical services and generate 
approximately $135,000 in additional revenue. Some of these businesses, 
which consist of processors and shippers of products such as wheat 
flour, vegetable oil, and corn meal, may meet the criteria for small 
entities established by the Small Business Administration criteria for 
small businesses. Even so, the new fees should not significantly affect 
those entities. It is estimated that there will be approximately nine 
entities effected. Further, those entities are under no obligation to 
use GIPSA services and, therefore, any decision on their part to 
discontinue the use of this service should not prevent them from 
marketing their products. Due to the decline in demand of the processed 
commodity analytical testing services, GIPSA will conduct another 
analysis of the demand for this program's services, including all costs 
and revenues generated specific to the program, one year after 
operating under the proposed fee increase.
    There will be no additional reporting or record keeping 
requirements imposed by this action. In accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 35), the information collection and 
recordkeeping requirements in Part 868 have been previously approved by 
OMB under control number 0580-0012. GIPSA has not identified any other 
Federal rules which may duplicate, overlap, or conflict with this 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. This action 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.

Proposed Action

    The Agricultural Marketing Act (AMA) of 1946 (7 U.S.C. 1621, et 
seq.) authorizes GIPSA to provide official processed commodity testing 
services and to collect reasonable fees for

[[Page 42645]]

performing these 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 testing services, 
including personnel compensation and benefits, travel, rent, 
communication, utilities, contractual services, supplies, and 
equipment.
    The processed commodity testing fees were last amended on April 4, 
2001, and became effective May 4, 2001 (66 FR 17775). These fees were 
to cover, as nearly as practicable, the level of operating costs as 
projected for FY 2001 and FY 2002, respectively. GIPSA continually 
monitors its cost, revenue, and operating reserve levels to ensure that 
there are sufficient resources for operations. Further, GIPSA has 
implemented cost-saving measures in the processed commodity program in 
an effort to provide more cost-effective services. The cost containment 
measures included a reduction in full-time commodity testing laboratory 
personnel and increased cross utilization of personnel from other GIPSA 
programs.
    GIPSA regularly reviews its user-fee-financed programs to determine 
if the fees are adequate and continues 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. Using the most recent data 
available, GIPSA's FY 2002 operating costs for this program were 
$233,707 with revenue of $104,380 that resulted in a negative margin of 
$129,327.
    GIPSA has reviewed the financial position of its processed 
commodity testing program. Based on this review, GIPSA has concluded 
that it needs to generate $135,000 in additional yearly revenue to 
recover program costs. These changes are needed to generate revenue 
sufficient to cover, as nearly as practicable, operational costs 
resulting from a steep decline in requests for services and the 
associated loss of revenue and increased operational costs resulting 
from the 4.1 percent January 2003 Federal pay increase. Therefore, 
GIPSA proposes to revise section 868.90, paragraph (d), Table 2--Fees 
for Laboratory Test Services, to: (1) Increase the fees for laboratory 
testing services. These laboratory tests are: Ash, Brix, Calcium, 
Carotenoid Color, Cold test (oil), Color test (syrups), Cooking tests 
(pasta), Crude fat, Crude fiber, Falling number, Free fatty acid, 
Insoluble impurities (oils and shortenings), Iron enrichment, Lovibond 
color, Moisture, Moisture and volatile matter, Peroxide Value, Popping 
ratio, Protein, Sanitation (light filth), Sieve test, Smoke point, 
Solid fat index, Visual exam, Vomitoxin (Qualitative--Test Kit), and 
Vomitoxin (Quantitative--Test Kit); (2) establish new fees for new 
testing services: Aflatoxin (Quantitative--HPLC), Aflatoxin 
(Quantitative--Test Kit), Aflatoxin (Qualitative Test Kit) and 
Oxidative stability index (OSI); (3) eliminate references and fees for 
testing services that are no longer requested on a routine basis. These 
tests are: Alpha monoglycerides, Aflatoxin test (other than TLC or 
minicolumn method), Aflatoxin (TLC), Aflatoxin (Minicolumn method), 
Bacteria, count, Baking tests (cookies), Bostwick (cooked), Bostwick 
(uncooked/cook test/dispersibility), Dough handling (baking), E. coli, 
Fat (acid hydrolysis), Fat-Stability (A.O.M), Flash point (open and 
closed cup), Hydrogen ion activity--pH, Iodine number/value, Linolenic 
acid (Fatty acid profile), Lipid phosphorus, Margarine (nonfat solids), 
Moisture Average(crackers), Performance test (prepared bakery mix), 
Phosphorus, Popcorn kernels (total defects), Potassium bromate, Rope 
spore count, Salmonella, Salt or Sodium content, Specific volume 
(bread), Staphylococcus aureus, Texture, Tilletia controversa kuhn 
(TCK)(Qualitative), Tilletia controversa kuhn (TCK)(Quantitative), 
Unsaponifiable (matter), Urease activity, Visual exam (hop pellet), 
Visual exam (insoluble impurities, oils and shortenings), Visual exam 
(pasta), Visual exam (processed grain products), Visual exam (total 
foreign material other than cereal grains), Vitamin enrichment, 
Vomitoxin (TLC), Water activity, and Wiley melting point.
    Due to the decline in demand of the processed commodity analytical 
testing services, GIPSA will conduct another analysis of the demand for 
this program's services, including all costs and revenues generated 
specific to the program, one year after operating under the proposed 
fee increase.

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 proposed to 
be 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 868.90, paragraph (d) is revised to read as follows:


Sec.  868.90  Fees for certain Federal inspection services.

* * * * *
    (d) Laboratory tests referenced in table 2 of this section will be 
charged at the applicable laboratory fee when performed at field 
locations other than at the applicant's facility.

             Table 2.--Fees for Laboratory Test Services \1\
------------------------------------------------------------------------
                      Laboratory tests                           Fees
------------------------------------------------------------------------
(1) Aflatoxin (Quantitative--HPLC).........................      $182.00
(2) Aflatoxin (Quantitative--Test Kit).....................        87.00
(3) Aflatoxin (Qualitative--Test Kit)......................        47.00
(4) Appearance and odor....................................         7.00
(5) Ash....................................................        17.00
(6) Brix...................................................        16.00
(7) Calcium................................................        27.00
(8) Carotenoid Color.......................................        27.00
(9) Cold test (oil)........................................        20.00
(10) Color test (syrups)...................................        13.00
(11) Cooking tests (pasta).................................        13.00
(12) Crude fat.............................................        20.00
(13) Crude fiber...........................................        27.00

[[Page 42646]]

 
(14) Falling number........................................        24.00
(15) Free fatty acid.......................................        24.00
(16) Insoluble impurities (oils and shortenings)...........         9.00
(17) Iron enrichment.......................................        30.00
(18) Lovibond color........................................        20.00
(19) Moisture..............................................        13.00
(20) Moisture and volatile matter..........................        17.00
(21) Oxidative stability index (OSI).......................        54.00
(22) Peroxide Value........................................        27.00
(23) Popping ratio.........................................        38.00
(24) Protein...............................................        16.00
(25) Sanitation (light filth)..............................        47.00
(26) Sieve test............................................        11.00
(27) Smoke Point...........................................        43.00
(28) Solid fat index.......................................       168.00
(29) Visual exam...........................................        22.00
(30) Vomitoxin (Qualitative--Test Kit).....................        61.00
(31) Vomitoxin (Quantitative--Test Kit)....................        81.00
(32) Other laboratory analytical services (per hour per           67.00
 service representative)...................................
------------------------------------------------------------------------
\1\ When laboratory tests/services are provided for GIPSA by a private
  laboratory, the applicant will be assessed a fee, which, as nearly as
  practicable, covers the costs to GIPSA for the service provided.


    Dated: July 15, 2003.
Donna Reifschneider,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 03-18265 Filed 7-17-03; 8:45 am]
BILLING CODE 3410-EN-P