[Federal Register Volume 69, Number 80 (Monday, April 26, 2004)]
[Proposed Rules]
[Pages 22458-22459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9427]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 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. 69, No. 80 / Monday, April 26, 2004 / 
Proposed Rules  

[[Page 22458]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 28

[Doc. No. CN-03-007]
RIN 0581-AC34


Revision of User Fees for 2004 Crop Cotton Classification 
Services to Growers

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Marketing Service (AMS) is proposing to raise 
user fees for cotton producers for 2004 crop cotton classification 
services under the Cotton Statistics and Estimates Act in accordance 
with the formula provided in the Uniform Cotton Classing Fees Act of 
1987. The 2003 user fee for this classification service was $1.45 per 
bale. This proposal would raise the fee for the 2004 crop to $1.65 per 
bale. The proposed fee and the existing reserve are sufficient to cover 
the costs of providing classification services, including costs for 
administration and supervision.

DATES: Comments must be received on or before May 11, 2004.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to Norma McDill, Deputy Administrator, 
Cotton Program, AMS, USDA, STOP 0224, 1400 Independence Avenue, SW., 
Washington, DC 20250-0224. Comments should be submitted in triplicate. 
Comments may also be submitted electronically to: 
[email protected]. or Regulations.gov, http://www.regulations.gov. All comments should reference the docket number 
and the date and the page of this issue of the Federal Register. All 
comments received will be available for public inspection during 
regular business hours at the above office in Rm. 2641-South Building, 
1400 Independence Avenue, SW., Washington, DC. A copy of this notice 
may be found at: www.ams.usda.gov/cotton/rulemaking.htm.

FOR FURTHER INFORMATION CONTACT: Norma McDill, Deputy Administrator, 
Cotton Program, AMS, USDA, Room 2641-S, STOP 0224, 1400 Independence 
Avenue, SW., Washington, DC 20250-0224. Telephone (202) 720-2145, 
facsimile (202) 690-1718, or e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866; and, therefore has not been reviewed 
by the Office of Management and Budget (OMB).

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
This rule would 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.

Regulatory Flexibility Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601 et seq.) AMS has considered the economic impact 
of this action on small entities and has determined that its 
implementation will not have a significant economic impact on a 
substantial number of small businesses.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. There are an estimated 35,000 cotton 
growers in the U.S. who voluntarily use the AMS cotton classing 
services annually, and the majority of these cotton growers are small 
businesses under the criteria established by the Small Business 
Administration (13 CFR 121.601). The increase above the 2003 crop level 
as stated will not significantly affect small businesses as defined in 
the RFA because:
    (1) The fee represents a very small portion of the cost-per-unit 
currently borne by those entities utilizing the services. (The 2003 
user fee for classification services was $1.45 per bale; the fee for 
the 2004 crop would be increased to $1.65 per bale; the 2004 crop is 
estimated at 18,300,000 bales).
    (2) The fee for services will not affect competition in the 
marketplace; and
    (3) The use of classification services is voluntary. For the 2003 
crop, 18,224,000 bales were produced; and, almost all of these bales 
were voluntarily submitted by growers for the classification service.
    (4) Based on the average price paid to growers for cotton from the 
2002 crop of 44.5 cents per pound, 500 pound bales of cotton are worth 
an average of $222 each. The proposed user fee for classification 
services, $1.65 per bale, is less than one percent of the value of an 
average bale of cotton.

Paperwork Reduction Act

    In compliance with OMB regulations (5 CFR part 1320), which 
implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.), 
the information collection requirements contained in the provisions to 
be amended by this proposed rule have been previously approved by OMB 
and were assigned OMB control number 0581-0009 under the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.).
    It is anticipated that the proposed changes, if adopted, would be 
made effective July 1, 2004, as provided by the Cotton Statistics and 
Estimates Act.

Fees for Classification under the Cotton Statistics and Estimates Act 
of 1927

    The user fee charged to cotton producers for High Volume Instrument 
(HVI) classification services under the Cotton Statistics and Estimates 
Act (7 U.S.C. 473a) was $1.45 per bale during the 2003 harvest season 
as determined by using the formula provided in the Uniform Cotton 
Classing Fees Act of 1987, as amended by Public Law 102-237. The fees 
cover salaries, costs of equipment and supplies, and other overhead 
costs, including costs for administration, and supervision.
    This proposed rule establishes the user fee charged to producers 
for HVI classification at $1.65 per bale during the 2004 harvest 
season.
    Public Law 102-237 amended the formula in the Uniform Cotton 
Classing Fees Act of 1987 for establishing the

[[Page 22459]]

producer's classification fee so that the producer's fee is based on 
the prevailing method of classification requested by producers during 
the previous year. HVI classing was the prevailing method of cotton 
classification requested by producers in 2003. Therefore, the 2004 
producer's user fee for classification service is based on the 2003 
base fee for HVI classification.
    The fee was calculated by applying the formula specified in the 
Uniform Cotton Classing Fees Act of 1987, as amended by Public Law 102-
237. The 2003 base fee for HVI classification exclusive of adjustments, 
as provided by the Act, was $2.28 per bale. An increase of 1.61 
percent, or 4 cents per bale, increase due to the implicit price 
deflator of the gross domestic product added to the $2.28 would result 
in a 2004 base fee of $2.32 per bale. The formula in the Act provides 
for the use of the percentage change in the implicit price deflator of 
the gross national product (as indexed for the most recent 12-month 
period for which statistics are available). However, gross national 
product has been replaced by gross domestic product by the Department 
of Commerce as a more appropriate measure for the short-term monitoring 
and analysis of the U.S. economy.
    The number of bales to be classed by the United States Department 
of Agriculture from the 2004 crop is estimated at 17,662,245 bales. The 
2004 base fee was decreased 15 percent based on the estimated number of 
bales to be classed (1 percent for every 100,000 bales or portion 
thereof above the base of 12,500,000, limited to a maximum adjustment 
of 15 percent). This percentage factor amounts to a 35 cents per bale 
reduction and was subtracted from the 2004 base fee of $2.32 per bale, 
resulting in a fee of $1.97 per bale.
    With a fee of $1.97 per bale, the projected operating reserve would 
be 32.37 percent. The Act specifies that the Secretary shall not 
establish a fee which, when combined with other sources of revenue, 
will result in a projected operating reserve of more than 25 percent. 
Accordingly, the fee of $1.97 must be reduced by 32 cents per bale, to 
$1.65 per bale, to provide an ending accumulated operating reserve for 
the fiscal year of not more than 25 percent of the projected cost of 
operating the program. This would establish the 2004 season fee at 
$1.65 per bale.
    Accordingly, Sec.  28.909, paragraph (b) would be revised to 
reflect the increase of the HVI classification fee from $1.45 to $1.65 
per bale.
    As provided for in the Uniform Cotton Classing Fees Act of 1987, as 
amended, a 5 cent per bale discount would continue to be applied to 
voluntary centralized billing and collecting agents as specified in 
Sec.  28.909(c).
    Growers or their designated agents receiving classification data 
would continue to incur no additional fees if only one method of 
receiving classification data was requested. The fee for each 
additional method of receiving classification data in Sec.  28.910 
would remain at 5 cents per bale, and it would be applicable even if 
the same method were requested. The fee in Sec.  28.910(b) for an owner 
receiving classification data from the central database would remain at 
5 cents per bale, and the minimum charge of $5.00 for services provided 
per, monthly billing period would remain the same. The provisions of 
Sec.  28.910(c) concerning the fee for new classification memoranda 
issued from the central database for the business convenience of an 
owner without reclassification of the cotton will remain the same.
    The fee for review classification in Sec.  28.911 would be 
increased from $1.45 to $1.65 per bale.
    The fee for returning samples after classification in Sec.  28.911 
would remain at 40 cents per sample.
    A 15-day comment period is provided for public comments. This 
period is appropriate because it is anticipated that the proposed 
changes, if adopted, would be made effective July 1, 2004, as provided 
by the Cotton Statistics and Estimates Act.

List of Subjects in 7 CFR Part 28

    Administrative practice and procedure, Cotton, Cotton samples, 
Grades, Market news, Reporting and recordkeeping requirements, 
Standards, Staples, Testing, Warehouses.

    For the reasons set forth in the preamble, 7 CFR part 28 is 
proposed to be amended as follows:

PART 28--[Amended]

    1. The authority citation for 7 CFR part 28, subpart D, continues 
to read as follows:

    Authority: 7 U.S.C. 471-476.

    2. In Sec.  28.909, paragraph (b) is revised to read as follows:


Sec.  28.909  Costs.

* * * * *
    (b) The cost of High Volume Instrument (HVI) cotton classification 
service to producers is $1.65 per bale.
* * * * *
    3. In Sec.  28.911, the last sentence of paragraph (a) is revised 
to read as follows:


Sec.  28.911  Review classification.

    (a) *** The fee for review classification is $1.65 per bale.
* * * * *

    Dated: April 21, 2004.
A. J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-9427 Filed 4-23-04; 8:45 am]
BILLING CODE 3410-02-P