[Federal Register: July 18, 2003 (Volume 68, Number 138)]
[Proposed Rules]
[Page 42644-42646]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jy03-31]
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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.
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[[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.
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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: H.Tess.Butler@usda.gov. 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: Steven.N.Tanner@usda.gov 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
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(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
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(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]