[Federal Register: April 11, 2006 (Volume 71, Number 69)]
[Proposed Rules]
[Page 18231-18236]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11ap06-21]
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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 18231]]
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
7 CFR Part 868
RIN 0580-AA92
Fees for Rice Inspection Services
AGENCY: Grain Inspection Packers and Stockyards Administration, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would revise the regulations governing the
sampling, inspection, weighing, and certification for rice by
increasing certain fees charged for the services by approximately 18
percent. Further, the rice fees would be increased an additional 3
percent each year through fiscal year 2010 and establish a stowage
examination fee. These revisions are necessary in order to recover, as
nearly as practicable, the costs of performing these services under the
Agricultural Marketing Act of 1946 (AMA).
DATES: Comments must be received on or before June 12, 2006.
ADDRESSES: We invite you to submit comments on this proposed rule. You
may submit comments by any of the following methods:
E-Mail: Send comments via electronic mail to
comments.gipsa@usda.gov.
Mail: Send hardcopy written comments to Tess Butler,
GIPSA, USDA, 1400 Independence Avenue, SW., room 1647-S, Washington, DC
20260-3604.
Fax: Send comments by facsimile transmission to: (202)
690-2755.
Hand Delivery or Courier: Deliver comments to: Tess
Butler, GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647-S,
Washington, DC 20250-3604.
Federal eRulemaking Portal: Go to http://www.regulations.gov.
Follow the online instructions for submitting
comments.
Instructions: All comments should make reference to the date and
page number of this issue of the Federal Register.
Read Comments: All comments will be available for public inspection
in the above office during regular business hours (7 CFR 1.27(b)).
FOR FURTHER INFORMATION CONTACT: John Giler, Deputy Director, Field
Management Division, at his E-mail address: john.c.giler@usda.gov,
telephone (202) 720-0228.
SUPPLEMENTARY INFORMATION:
Executive Order 12866 and Regulatory Flexibility Act
This rule has been determined to be non-significant for the
purposes 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 (RFA); the Grain Inspection, Packers and Stockyards
Administration (GIPSA) has considered the economic impact of this
action on small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. The proposed action
described herein is being taken because additional user fee revenues
are needed to cover the costs of providing current and future program
operations and services.
There are approximately 135 applicants who receive rice inspection
and weighing services. A small portion of these users are small
entities under the criteria established by the Small Business
Administration (13 CFR 121.201). There would be no additional
reporting, recordkeeping, or other compliance requirements imposed upon
small entities as a result of this proposed rule. GIPSA has not
identified any other Federal rules which may duplicate, overlap or
conflict with this proposed rule.
GIPSA has determined that this proposed rule does not have a
significant economic impact on a substantial number of small entities
as defined under the RFA. The majority of applicants that apply for
services do not meet the requirements of small entities. Rice
inspection and weighing services are provided upon request and the fees
charged to users of these services vary with usage. However, the impact
on all businesses, including small entities, is very similar. Further,
the rice industry businesses are under no obligation to use these
services, and, therefore, any decision on their part to discontinue the
use of the services should not prevent them from marketing their
products.
GIPSA regularly reviews its user-fee financed programs to determine
if the fees are adequate. GIPSA has and will continue to seek out cost
saving opportunities and implement appropriate changes to reduce its
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 while maintaining
the Agency 3-month operating retained earnings. During fiscal year
2004, the rice program revenue was nearly $4.3 million with costs at
approximately $4.4 million resulting in an approximate $0.2 million
program deficit. Current revenue for GIPSA's rice program during fiscal
year 2005 was $4.4 million with costs at $4.7 million resulting in a
$0.3 million program deficit. GIPSA's costs of operating the rice
program are expected to be approximately $4.4 million during fiscal
year 2006 and will gradually escalate to approximately $4.9 million by
fiscal year 2010. These cost increases (2006 to 2010) are due to
employee salaries and benefits coupled with estimated annual cost of
living adjustments, the future costs of $50,000 to replace aging rice
inspection equipment in the offices, and the need to fund $300,000 for
an information technology upgrade to improve certification efficiency
and program management. The current fee structure will not fully fund
the rice program this fiscal year or future fiscal years resulting in
continued program deficits. GIPSA will also remain below the Agency's
3-month operating retained earnings level.
This proposed 18 percent fee increase will initially increase the
revenue of the program; however, this will not cover all of GIPSA's
costs. GIPSA will need to continue to increase fees by 3 percent
annually through fiscal year 2010 in order to cover the program's
operating cost and replenish the 3-month retained earnings balance.
GIPSA believes that an initial increase in fees followed by annual
incremental increases is appropriate at this time. To minimize the
impact of a fee increase, GIPSA has decided to propose fee rates that
will collect sufficient revenue over time to
[[Page 18232]]
cover operating expenses, while striving to create a 3-month operating
reserve by FY 2010. The cost of living projections used in calculating
future salary, benefits, and all other non-salary expenses out to FY
2010 were supplied by the Office of Management and Budget (OMB) as set
forth in their Federal Register publication (69 FR 26900) on May 14,
2004. GIPSA will evaluate the financial status of the rice program on a
continuous basis to determine if it is meeting the goal of obtaining a
3-month operating reserve by FY 2010, and to determine if other
adjustments are necessary.
GIPSA's financial projections indicate the retained earnings
balance will meet the target level by the end of fiscal year 2010 after
an initial 18 percent increase in fees followed by the annual 3 percent
increases. GIPSA financial projections also considered plans to
introduce program changes which will better control increases in long-
term costs. These program changes will involve a realignment of staff
to better control rising personnel costs in the future.
The following table reflects GIPSA's financial rice program
projections through fiscal year 2010.
Table 1.--Rice Program Projections
[Million Dollars]*
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FY05 FY06 FY07 FY08 FY09 FY10
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Revenue......................................................... $4.4 $4.0 $4.7 $4.9 $5.0 $5.2
Obligations..................................................... 4.7 4.4 4.5 4.6 4.7 4.7
Retained Earnings--Projected.................................... 0.4 0 0.3 0.5 0.8 1.2
Retained Earnings--Target (3-months operating obligations)...... 1.2 1.1 1.1 1.2 1.2 1.2
----------------------------------------------------------------------------------------------------------------
* Figures may not sum due to rounding.
This proposed rule will initially increase user fees by 18 percent
and will follow with subsequent 3 percent increases until fiscal year
2010. GIPSA is also proposing a new fee for stowage examination
services which are provided as a service upon request.
This action is authorized under the AMA (7 U.S.C. 1622 (h)) which
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 services, supplies, and equipment.
Paperwork Reduction Act and Government Paperwork Elimination Act
In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
included in this proposed rule has been approved by the OMB under
control number 0580-0013.
GIPSA is committed to compliance with the Government Paperwork
Elimination Act, which requires Government agencies, in general, to
provide the public the option of submitting information or transacting
business electronically to the maximum extent possible.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This action is not intended to have retroactive
effect. This rule 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 which must be exhausted
prior to any judicial challenge to the provisions of this rule.
Proposed Action
The AMA of 1946 authorizes official inspection and weighing
services, on a user-fee basis, of rice. The AMA of 1946 provides that
reasonable fees be collected from the users of the services to cover,
as nearly as practicable, the costs of the services rendered. This
proposed rule would amend the schedule for fees and charges for
inspection and weighing services rendered to the rice industry to
reflect the costs necessary to operate the program.
GIPSA regularly reviews its user-fee programs to determine if the
fees are adequate. While GIPSA continues to search for opportunities to
reduce its costs, the existing fee schedule will not generate
sufficient revenues to cover program costs while maintaining the Agency
3-month operating retained earnings. During fiscal year 2004, the rice
program revenue was nearly $4.3 million with costs at approximately
$4.4 million resulting in an approximate $0.2 million program deficit.
Current revenue for GIPSA's rice program during fiscal year 2005 was
$4.4 million with costs at $4.7 million resulting in a $0.3 million
program deficit. GIPSA's costs of operating the rice program are
expected to be approximately $4.4 million during fiscal year 2006 and
will escalate to approximately $4.9 million by fiscal year 2010. These
cost increases (2006 to 2010) are due to employee salaries and benefits
coupled with estimated annual cost of living adjustments, the future
costs of $50,000 to replace aging rice inspection equipment in the
offices, and the need to fund $300,000 for an information technology
upgrade to improve certification efficiency and program management. The
current fee structure will not fully fund the rice program this fiscal
year or future fiscal years resulting in a continued program deficit.
GIPSA will also remain below the Agency's 3-month operating retained
earnings level.
This proposed 18 percent fee increase will initially increase the
revenue of the program; however, this will not cover all of GIPSA's
costs. GIPSA will need to continue to increase fees by 3 percent
annually through fiscal year 2010 in order to cover the program's
operating cost and replenish the 3-month retained earnings balance.
GIPSA believes that an initial increase in fees followed by annual
incremental increases is appropriate at this time. GIPSA's financial
projections indicate the retained earnings balance will meet the target
level by the end of fiscal year 2010 after an initial 18 percent
increase in fees followed by the annual 3 percent increases (see Table
1 in preceding section of the document). GIPSA financial projections
also considered plans to introduce program changes which will better
control increases in long-term costs.
This proposed rule will initially increase user fees by 18 percent
and will follow with subsequent 3 percent increases until fiscal year
2010. GIPSA is also proposing a new fee for stowage examination
services which are provided as a service upon request.
Based on the aforementioned analysis of this program's costs, GIPSA
proposes
[[Page 18233]]
to increase the fees for services under the rice program. GIPSA will
review its cost, revenue, and operating reserve levels to ensure that
the fee increases for the noted calendar years are required at the
levels specified and sufficient to maintain official rice inspection
and weighing services, upon request. In the event a change in the fees
is necessary, GIPSA will engage in notice and comment rulemaking before
making any changes.
The following table compares current fees and charges with the
proposed 18 percent fee increase as found in 7 CFR 868.91. This table
also reflects the additional fees for stowage examination services that
are provided upon request.
Table 2
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Current fees and charges Proposed fees and charges
-------------------------------------------------------------------------------
Hourly rates/unit rate per CWT Nonregular Nonregular
Regular workday workday (Sunday- Regular workday workday (Sunday-
(Monday-Saturday) Holiday) (Monday-Saturday) Holiday)
----------------------------------------------------------------------------------------------------------------
Contract (per hour per Service $46.40 $64.40 $54.80 $76.00
representative)................
Noncontract (per hour per 56.60 78.00 66.80 92.10
Service representative)........
Export Port Services (per .056 .056 0.066 0.066
hundredweight).................
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------------------------------------------------------------------------
Current fees and Proposed fees and
Unit Rates charges charges
------------------------------------------------------------------------
Rough Rice:
Inspection for quality (per lot, $35.50 $41.90
sublot, or sample inspection)..
(a) Milling yield (per 27.50 32.50
Sample)..................
(b) All other factors (per 13.20 15.60
factor)..................
Brown Rice for Processing:
Inspection for quality (per lot, 30.50 36.00
sublot, or sample inspection)..
(a) Milling yield (per 27.50 32.50
Sample)..................
(b) All other factors 9per 13.20 15.60
factor)..................
Total oil and free fatty acid. 43.00 50.80
Milled Rice:
Inspection for quality (per 22.00 26.00
lot, sublot, or sample
inspection)..................
All other factors (per factor) 13.20 15.60
Total oil and free fatty acid. 43.00 50.80
Interpretive line samples:
(a) Milling degree (per 94.00 111.00
set).....................
(b) Parboiled light (per 23.00 27.20
sample)..................
Stowage Examination (service on
request):
Ship (per stowage space) ................. 50.50
(minimum $252.50 per ship)...
Subsequent ship examinations (same
as original) (minimum $151.50 per
ship):
Barge (per examination)....... ................. $40.50
All other carriers (per ................. $15.50
examination).................
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A 60-day comment period is provided for interested persons to
comment on this proposed action.
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 868.91 is revised to read as follows:
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
------------------------------------------------------------------------
Nonregular
Service \1\ Regular workday workday (Sunday-
(Monday-Saturday) Holiday)
------------------------------------------------------------------------
Effective October 1, 2006
------------------------------------------------------------------------
Contract (per hour per Service $54.80 $76.00
representative)................
Noncontract (per hour per 66.80 92.10
Service representative)........
Export Port Services (per 0.066 0.066
hundredweight) \2\.............
------------------------------------------------------------------------
Effective October 1, 2007
------------------------------------------------------------------------
Contract (per hour per Service $56.40 $78.30
representative)................
Noncontract (per hour per 68.80 94.80
Service representative)........
Export Port Services (per 0.068 0.068
hundredweight) \2\.............
------------------------------------------------------------------------
[[Page 18234]]
Effective October 1, 2008
------------------------------------------------------------------------
Contract (per hour per Service $58.10 $80.70
representative)................
Noncontract (per hour per 70.90 97.70
Service representative)........
Export Port Services (per 0.070 0.070
hundredweight) \2\.............
------------------------------------------------------------------------
Effective October 1, 2009
------------------------------------------------------------------------
Contract (per hour per Service $59.90 $83.10
representative)................
Noncontract (per hour per 73.00 100.60
Service representative)........
Export Port Services (per 0.072 0.072
hundredweight) \2\.............
------------------------------------------------------------------------
Effective October 1, 2010
------------------------------------------------------------------------
Contract (per hour per Service $61.70 $85.60
representative)................
Noncontract (per hour per 75.20 103.60
Service representative)........
Export Port Services (per 0.074 0.074
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 Service 1, 3
------------------------------------------------------------------------
------------------------------------------------------------------------
Effective October 1, 2006
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample
inspection):
(a) Rough rice......................................... $41.90
(b) Brown rice for processing.......................... 36.00
(c) Milled rice........................................ 26.00
Factor analysis for any single factor (per factor): ...........
(a) Milling yield (per sample) (Rough or Brown rice)... 32.50
(b) All other factors (per factor) (all rice).......... 15.60
Total oil and free fatty acid............................ 50.80
Interpretive line samples: 2 ...........
(a) Milling degree (per set)........................... 111.00
(b) Parboiled light (per sample)....................... 27.20
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request): 4 ...........
(a) Ship (per stowage space) (minimum $252.50 per ship) 50.50
(b) Subsequent ship examination (same as original) ...........
minimum $151.50 per ship).............................
(c) Barge (per examination)............................ 40.50
(d) All other carriers (per examination)............... 15.50
------------------------------------------------------------------------
Effective October 1, 2007
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample ...........
inspection):
(a) Rough rice......................................... $43.20
(b) Brown rice for processing.......................... 37.10
(c) Milled rice........................................ 26.80
Factor analysis for any single factor (per factor): ...........
(a) Milling yield (per sample) (Rough or Brown rice)... 33.50
(b) All other factors (per factor) (all rice).......... 16.10
Total oil and free fatty acid.............................. 52.30
Interpretive line samples:2 ...........
(a) Milling degree (per set)........................... 114.30
(b) Parboiled light (per sample)....................... 28.00
Faxed and extra copies of certificates (per copy) 3.00
Stowage Examination (service-on-request): 4 ...........
(a) Ship (per stowage space) (minimum $252.50 per ship) 50.50
(b) Subsequent ship examination (same as original) ...........
minimum $151.50 per ship).............................
(c) Barge (per examination)............................ 40.50
(d) All other carriers (per examination)............... 15.50
------------------------------------------------------------------------
Effective October 1, 2008
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample ...........
inspection):
(a) Rough rice......................................... $44.50
(b) Brown rice for processing.......................... 38.20
(c) Milled rice........................................ 27.60
Factor analysis for any single factor (per factor): ...........
[[Page 18235]]
(a) Milling yield (per sample) (Rough or Brown rice)... 34.50
(b) All other factors (per factor) (all rice).......... 16.60
Total oil and free fatty acid.............................. 53.90
Interpretive line samples:2
(a) Milling degree (per set)........................... 117.70
(b) Parboiled light (per sample)....................... 28.80
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request): 4 ...........
(a) Ship (per stowage space) (minimum $252.50 per ship) 50.50
(b) Subsequent ship examination (same as original) ...........
minimum $151.50 per ship).............................
(c) Barge (per examination)............................ 40.50
(d) All other carriers (per examination)............... 15.50
------------------------------------------------------------------------
Effective October 1, 2009
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample ...........
inspection):
(a) Rough rice......................................... $45.80
(b) Brown rice for processing.......................... 39.40
(c) Milled rice........................................ 28.40
Factor analysis for any single factor (per factor): ...........
(a) Milling yield (per sample) (Rough or Brown rice)... 35.50
(b) All other factors (per factor) (all rice).......... 17.10
Total oil and free fatty acid.............................. 55.50
Interpretive line samples:2
(a) Milling degree (per set)........................... 121.30
(b) Parboiled light (per sample)....................... 29.70
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request): 4
(a) Ship (per stowage space) (minimum $252.50 per ship) 50.50
(b) Subsequent ship examination (same as original) ...........
minimum $151.50 per ship).............................
(c) Barge (per examination)............................ 40.50
(d) All other carriers (per examination)............... 15.50
------------------------------------------------------------------------
Effective October 1, 2010
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample ...........
inspection):
(a) Rough rice......................................... $47.20
(b) Brown rice for processing.......................... 40.60
(c) Milled rice........................................ 29.30
Factor analysis for any single factor (per factor): ...........
(a) Milling yield (per sample) (Rough or Brown rice)... 36.60
(b) All other factors (per factor) (all rice).......... 17.60
Total oil and free fatty acid.............................. 57.20
Interpretive line samples:2
(a) Milling degree (per set)........................... 124.90
(b) Parboiled light (per sample)....................... 30.60
Faxed and extra copies of certificates (per copy) 3.00
Stowage Examination (service-on-request): 4
(a) Ship (per stowage space) (minimum $252.50 per ship) 50.50
(b) Subsequent ship examination (same as original) ...........
minimum $151.50 per ship).............................
(c) Barge (per examination)............................ 40.50
(d) All other carriers (per examination)............... 15.50
------------------------------------------------------------------------
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. 868.91, Table 1.
4 If performed outside of normal business hours, 1\1/2\ times the
applicable unit fee will be charged.
[[Page 18236]]
James E. Link,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 06-3507 Filed 4-10-06; 8:45 am]
BILLING CODE 3410-EN-P