[Federal Register Volume 69, Number 8 (Tuesday, January 13, 2004)]
[Rules and Regulations]
[Pages 1893-1895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-569]



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  Federal Register / Vol. 69 , No. 8 / Tuesday, January 13, 2004 / 
Rules and Regulations  

[[Page 1893]]



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: Final rule.

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

SUMMARY: The Federal Grain Inspection Service (FGIS), a program of the 
Grain Inspection, Packers and Stockyards Administration (GIPSA), is 
increasing the fees for processed commodity analytical services 
performed under the Agricultural Marketing Act (AMA) of 1946 and 
removing certain tests from the fee schedule. These changes are needed 
to cover rising fixed costs and increased operational costs resulting 
from the mandated January 2003 Federal pay increase. GIPSA anticipates 
that this increase in user fees will generate approximately $135,000 in 
additional yearly revenue.

EFFECTIVE DATE: February 12, 2004.

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 the 
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 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-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 Fiscal Year (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 revisions are designed 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 FY 1999, the number of 
samples tested was 16,377, which generated $1,475,579 in revenue; in FY 
2000, 12,872 samples were tested, with revenue of $1,212,215; in FY 
2001, 3,620 samples were tested, with revenue of $219,033; and in FY 
2002, 1755 samples were tested, with revenue of $104,380. The changes 
to the fee schedule 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 are not excessive and should 
not significantly affect those entities. It is estimated that there 
will be nine entities affected. 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 new fee schedule.
    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 
record keeping requirements in part 800 have been previously approved 
by OMB under control number 0580-0013. GIPSA has not identified any 
other Federal rules which may duplicate, overlap, or conflict with this 
rule.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It 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.

Background

    On July 18, 2003, GIPSA proposed in the Federal Register (68 FR 
42644) to increase fees for processed commodity analytical services 
performed under the AMA and remove certain tests from the fee schedule. 
Under the provisions of the AMA (7 U.S.C. 1621, et seq.), GIPSA 
provides official processed commodity testing services upon request and 
collects reasonable fees from the customers for 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

[[Page 1894]]

official testing services, including personnel compensation and 
benefits, travel, rent, communication, utilities, contractual services, 
supplies, and equipment.
    The processed commodity testing services 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 previous fee schedule did 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.

Comment Review

    GIPSA did not receive any comments in response to the proposed 
rulemaking published on July 18, 2003, at 68 FR 42644.

Final Action

    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.
    Accordingly, GIPSA is revising the fees for processed commodity 
analytical services performed under the AMA in 7 CFR 868.90, paragraph 
(d), Table 2--Fees for Laboratory Test Services.

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


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.

             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
(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.



[[Page 1895]]

Donna Reifschneider,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 04-569 Filed 1-12-04; 8:45 am]
BILLING CODE 3410-EN-P