[Federal Register: March 30, 2007 (Volume 72, Number 61)]
[Rules and Regulations]
[Page 15011-15021]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30mr07-1]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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[[Page 15011]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 91 and 92
[Docket Number: AMS-ST-07-0045: ST-05-01]
RIN 0581-AC48
Changes in Hourly Fee Rates for Science and Technology Laboratory
Services--Fiscal Years 2007-2009
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Agricultural Marketing Service (AMS) is changing the
hourly fee rates for Science and Technology (S&T) Laboratory Services.
The agency is raising these rates to reflect, among other factors,
national and locality pay increases for Federal employees and
inflation, operating costs, instrumentation and training, and program
and agency administrative overhead costs. In the past, AMS has amended
its regulations on an as needed basis in order to recover laboratory
program costs. With this regulation, AMS is providing for three annual
standard hourly fee rate increases for fiscal years 2007-2009. This
will provide the agricultural commodity industries and other
stakeholders with more timely and relevant information regarding user
fees for voluntary laboratory testing services. The agency is also
removing tables and schedules with listings of individual tests and
services. Three annual hourly fee rate adjustments are established by
this action for appeals, holiday, and overtime services to reflect the
anticipated increase cost of providing these laboratory services each
fiscal year. The regulations also are updated to identify current
facility addresses. Part 92 is obsolete and therefore has been removed.
DATES: Effective March 31, 2007.
FOR FURTHER INFORMATION CONTACT: James V. Falk, Docket Manager, USDA,
AMS, Science and Technology Programs, 1400 Independence Avenue, SW.,
Mail Stop 0272, Washington, DC 20250-0272; telephone (202) 690-4089;
fax (202) 720-4631, or e-mail: James.falk@usda.gov.
SUPPLEMENTARY INFORMATION:
Background
Science and Technology (S&T) Programs has been performing voluntary
laboratory services under the Agricultural Marketing Act of 1946, as
amended, for the AMS commodity programs (Fruit and Vegetable, Cotton,
Livestock and Seed, Poultry, Dairy, and Tobacco) and applicable
customers in these industries since its inception on August 17, 1988.
Before that, voluntary laboratory testing was provided for a user fee
by AMS under the various commodity programs. The current standard
hourly rate of $45.00 and the premium hourly rate of $67.50 have been
in effect since publication in the Federal Register on October 27, 2000
(65 FR 64302). The standard fee rate for laboratory services will be
$60.00 per hour for the remainder of fiscal year 2007, and will
increase to $63.00 per hour in fiscal year 2008, and $67.00 per hour in
fiscal year 2009. The premium hourly fee rates will also be adjusted
for fiscal years 2007 through 2009. An increase in the premium hourly
rates over the three fiscal years for laboratory services performed on
holidays, appeal samples, and overtime basis is also needed since
Science and Technology laboratory personnel may be required to work
extended hours of service at the time and a half pay or the double
hourly pay to accommodate clients. This is due to stakeholder demand
for immediate test results. Generally, the processing of all laboratory
samples is continuous over a 24/7 timeframe due to the recent
introduction of automated equipment.
The AMS laboratory testing programs are voluntary, user fee
services, conducted under the authority of the Agricultural Marketing
Act of 1946 (AMA), as amended (7 U.S.C. 1621, et seq.). The AMA
authorizes the Secretary of Agriculture to provide Federal analytical
testing services that facilitate marketing and trade. In addition,
consumers may be able to determine the quality and wholesomeness
characteristics of a commodity or product through laboratory testing.
This allows agricultural products to be assigned official AMS grade
designations or to meet specifications. The AMA also requires that
reasonable fees be collected from the users of the services to cover as
nearly as possible the costs of maintaining the programs.
With this rulemaking, AMS will amend its regulations to provide for
annual hourly fee rate increases for laboratory services over three
years (FYs 2007 through 2009) in one action. AMS will continue to
perform a yearly cost analysis to determine whether the voluntary
hourly fee rates established for its user-fee-supported laboratory
service programs are adequate to cover expenses. The most recent review
determined that the existing fee schedules and tables of individual
tests or services, which have been in place since October 27, 2000,
will not generate sufficient revenues to recover operating costs.
A more flexible user fee system, using set hourly rates for
multiple fiscal years, is established by this rulemaking to ensure that
AMS properly recovers its full costs for providing laboratory services,
and that all stakeholders are charged reasonable fees. By enacting a
three year fee increase instead of a single year fee increase, AMS will
help ensure that the fee increases are effective at the beginning of
each fiscal year (October 1).
In addition, the existing fee schedules and tables in 7 CFR, part
91, Sec. 91.37 will be removed. The analytical tests listed in the
tables are not specific to individual commodity testing requirements or
stakeholder needs. The current tables do not represent the actual
operational costs to perform single tests and newer methodologies.
Laboratory services are provided for five types of analytical testing:
Microbiological, physical, residue chemistry, proximate analysis for
composition, and biomolecular testing. AMS must recover the costs of
providing these services. The new hourly fee rates will recover these
costs, and none of the fees collected for testing services referenced
in this final rule are used for a biotechnology verification program
specified in Federal Register Notice (67 FR 50853), August 6, 2002.
[[Page 15012]]
AMS calculated its actual costs for fiscal years 2001 through 2006
and its projected increases in salaries and inflation in fiscal years
2007 through 2009. The increases in salaries for fiscal year 2006 as
the base year and the succeeding out years are from the Office of
Management and Budget's (OMB) multi-year ``Economic Assumptions''
tables. The Federal pay raise for calendar years 2002, 2003, and 2004
were 4.6 percent, 4.1 percent and 4.1 percent, respectively. This
information comes from Table 11-1, ``Economic Assumptions'', of the
Office of Management and Budget's Fiscal Year 2005 Budget which is
available at http://www.whitehouse.gov/omb/budget/fy2005/econ.html. The
average fiscal year pay raise for Federal employees in calendar years
2005 and 2006 was 3.5 percent effective January 2005 and 3.1 percent
effective January 2006. The average combined national and locality pay
raise is estimated to be 2.2 percent for fiscal years 2007, 2008, and
2009. Inflation for fiscal year 2006 is 2.1 percent. Inflation for
fiscal year 2007 is estimated to be 2.2 percent. Inflation for fiscal
year 2008 is estimated to be 2.1 percent. Inflation for fiscal year
2009 is estimated to be 2.1 percent. These estimates for inflation
percent can be obtained from Table 12-1, ``Economic Assumptions'', of
the OMB's Fiscal Year 2007 Budget which is available at http://www.whitehouse.gov/omb/budget/fy2007/econ.html
.
The Agency will initiate another rulemaking to adjust any fee
established, only if estimated increases for pay and inflation do not
adequately cover the Agency's costs of providing the services. The cost
of providing laboratory services includes both direct and overhead
costs. Direct costs include the cost of salaries, employee benefits,
operation cost and infrastructure cost. The Agency is able to estimate
the employee benefits attributable to overtime work and has included
these in the fee calculations.
Table 1.--Current and New Hourly Fee Rates (Per Hour) by Type of Service
----------------------------------------------------------------------------------------------------------------
FY 2007 rate FY 2008 rate FY 2009 rate
Service Current rate \1\ \2\ \3\
----------------------------------------------------------------------------------------------------------------
Laboratory...................................... $ 45.00 $ 60.00 $ 63.00 $ 67.00
Appeal.......................................... 67.50 71.00 74.00 78.00
Overtime........................................ 67.50 71.00 74.00 78.00
Legal Holiday................................... 67.50 82.00 85.00 89.00
----------------------------------------------------------------------------------------------------------------
1 2 3 Hourly values for FY 2007-FY 2009 are rounded off to nearest whole dollar.
With this action, the AMS will amend its regulations to provide for
three annual fee increases in one action. Table 1 shows the summary of
the current rates and the new hourly fee rates for fiscal years 2007
through 2009 for the four different types of services (regular
laboratory, appeal, overtime, and legal holiday work) that Science and
Technology Programs employees perform.
Table 2.--Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2006
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
FY 2006 Pay Adjustment \2\ = [Actual FY 2005 1.48
Salaries ($20.00)] x 0.031 + $0.86 (weighted
changes with payroll for within-grade pay step
increases for General Schedule salaries, promotion
pay costs and new employee position pay costs).....
Benefits \3\........................................ 6.90
Operational Costs \4\............................... 11.60
Infrastructure Cost \5\............................. 8.78
Program Overhead \6\................................ 3.44
Agency Overhead \7\................................. 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.............
---------------
Total Rate Per Hour-Base Time................... 56.01
------------------------------------------------------------------------
\1\ Actual cost of FY 2005 salaries ($2,787,474) / (2,080 program hours
times 67 program employees) = $20.00 unit cost.
\2\ Actual cost of FY 2006 pay adjustment ($205,911) / (2,080 program
hours times 67 program employees) = $1.48 unit cost.
\3\ Actual cost of benefits ($961,668) / (2,080 program hours times 67
program employees) = $6.90 unit cost.
\4\ Actual cost of operational costs ($1,616,645) / (2,080 program hours
times 67 program employees) = $11.60 unit cost.
\5\ Actual cost of infrastructure ($1,223,570) / (2,080 program hours
times 67 program employees) = $8.78 unit cost.
\6\ Actual cost of Program overhead ($479,000) / (2,080 program hours
times 67 program employees) = $3.44 unit cost.
\7\ Actual cost of Agency overhead ($457,000) / (2,080 program hours
times 67 program employees) = $3.28 unit cost.
Table 3.--Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2007
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
FY 2006 Salaries = Actual FY 2005 Salaries ($20.00) $21.48
+ FY 2006 Pay Adjustment ($1.48)...................
FY 2007 Pay Adjustment = FY 2006 Salaries x 0.022... 0.47
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 11.75
Program Overhead.................................... 3.44
[[Page 15013]]
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
---------------
Total Rate Per Hour-Base Time................... 60.02
------------------------------------------------------------------------
Table 4.-- Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2008
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
FY 2007 Salaries = FY 2006 Salaries ($21.48) + FY $21.95
2007 Pay Adjustment ($0.47)........................
FY 2008 Pay Adjustment = FY 2007 Salaries x 0.022... 0.48
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 13.47
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Base Time................... 62.77
------------------------------------------------------------------------
Table 5.--Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2009
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
FY 2008 Salaries = FY 2007 Salaries ($21.95) + FY $ 22.43
2008 Pay Adjustment ($0.48)........................
FY 2009 Pay Adjustment = FY 2008 Salaries x 0.022... 0.49
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 16.15
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
FY 2009 Inflation (2.1%) = [Costs excluding 0.56
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Base Time................... 66.50
------------------------------------------------------------------------
In order to project the hourly fee rates for the laboratory program
services for fiscal years 2007 through 2009, the current fiscal year
2006 is used as a base. The total base time hourly fee rate calculation
(Table 2) for fiscal year 2006 begins with the actual salaries for
fiscal year 2005 ($2,787,474) and adds the fiscal year 2006 pay raises
(3.1 percent) and add other fiscal year 2006 pay adjustments ($119,500)
for within-grade pay step increases for General Schedule (GS) salaries,
promotion pay costs, and new employee position pay costs. Table 2
contains footnotes 1-7 that provide the common mathematical formula
used to calculate the apportioned rate for each fee charge category for
fiscal year 2006. The formula uses the actual cost or projected cost in
dollars for the applicable fiscal year for each individual fee charge
category divided by the available program hours and further divided by
the number of laboratory service program employees. The formula derives
the apportioned fee rate for each fee charge category (salaries with
pay adjustment, benefits, operational costs, infrastructure cost,
program administrative overhead and agency overhead). The same formula
that is used in Table 2 and that is indicated in its footnotes is also
applied in the other tables to derive each category unit rate with the
different actual costs or variable projected costs to be inserted in
the formula equation for the applicable fiscal year.
Table 3 through Table 5 show the calculation of the total standard
hourly fee rates to be rounded off for fiscal years 2007 through 2009.
[[Page 15014]]
Table 6.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2006
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
and a half)
($20.00)] x 1.5....................................
FY 2006 Pay Adjustment = [Actual FY 2005 Salaries 2.22
$119,500 increase for the FY 2006 period changes
with payroll for within-grade pay step increases
for General Schedule salaries, promotion pay costs,
and new employee position pay costs)] x 1.5........
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 8.78
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 66.75
------------------------------------------------------------------------
Table 7.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2007
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
and a half)
($20.00) + 2006 Pay Adjustment ($1.48)] x 1.5......
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 11.75
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 71.00
------------------------------------------------------------------------
Table 8.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2008
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
and a half)
+ FY 2007 Pay Adjustment ($0.47)] x 1.5............
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 13.47
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 73.99
------------------------------------------------------------------------
Table 9.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2009
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
and a half)
+ FY 2008 Pay Adjustment ($0.48)] x 1.5............
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 16.15
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
[[Page 15015]]
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
FY 2009 Inflation (2.1%) = [Costs excluding 0.56
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 77.97
------------------------------------------------------------------------
Table 6 through Table 9 show the calculation of the total appeal
and total overtime hourly fee rates to be rounded off for fiscal years
2006 through 2009. These tables incorporate the differentials in costs
associated with the necessity of laboratory personnel to work extended
hours of service at the time and a half pay doing either overtime or
appeal sample testing.
Table 10.--Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2006
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
($20.00)] x 2.0....................................
FY 2006 Pay Adjustment = [Actual FY 2005 Salaries 2.96
$119,500 increase for the FY 2006 period changes
with payroll for within-grade pay step increases
for General Schedule salaries, promotion pay costs,
and new employee position pay costs)] x 2.0........
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 8.78
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Holidays.................... 77.49
------------------------------------------------------------------------
Table 11.--Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2007
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
($20.00) + 2006 Pay Adjustment ($1.48)] x 2.0......
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 11.75
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
---------------
Total Rate Per Hour-Holidays.................... 81.98
------------------------------------------------------------------------
Table 12.--Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2008
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
+ FY 2007 Pay Adjustment ($0.47)] x 2.0............
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 13.47
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
[[Page 15016]]
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Holidays.................... 85.21
------------------------------------------------------------------------
Table 13.-- Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2009
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
+ FY 2008 Pay Adjustment ($0.48)] x 2.0............
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 16.15
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
FY 2009 Inflation (2.1%) = [Costs excluding 0.56
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Holidays.................... 89.43
------------------------------------------------------------------------
Table 10 through Table 13 show the calculation of the total legal
holiday hourly fee rates to be rounded off for fiscal years 2006
through 2009. These tables incorporate the differentials in costs
associated with the necessity of laboratory personnel to work extended
hours of service at the double hourly pay rate doing sample testing on
a Federal holiday or a designated day for the Federal holiday.
The Agency must recover the actual cost of services for multiple
fiscal years covered by this rule. These fee increases are essential
for the continued sound financial management of the Agency's budget. In
order to enhance the transparency of the hourly fee rates in the
aforementioned Tables 3 through 13 for fiscal year 2007, fiscal year
2008 and fiscal year 2009, a description is provided of each fee charge
category. Federal salaries with national and locality pay adjustments
and choices in benefits are made available on an annual basis by the
Office of Personnel Management (OPM). Operational costs include
expenses for rents, communications, utilities, medical examinations,
safety equipment, sample preparation equipment, training, trash and
hazardous waste disposal, travel and transportation costs.
Communication expenditures include costs for photocopying, printing, e-
mailing, Internet services, telephone, and faxing equipment. There have
been large capital improvement expenditures in the laboratories in
recent years. These expenditures include costs for the Food Emergency
Response Network (FERN) and the capital improvements for the
Environmental Management Systems (EMS) in accordance with the
applicable mandates for Federal laboratories of Executive Order 13148
of April 21, 2000, Greening the Government Through Leadership in
Environmental Management (65 FR 24593). These capital improvement costs
are included in the normal operations of the Science and Technology
field service laboratories. In addition, operational costs include
expenses for office and laboratory supplies, chemicals, reagents,
security and guard services, waste removal, robots, cleaning and
internal building maintenance, billing and collection services, and a
Laboratory Information Management System (LIMS). Infrastructure costs
are mainly laboratory instruments and capital equipment with service
and maintenance contracts and replacement spare parts. Infrastructure
expenses include consumable supply costs associated directly with the
proper operation of analytical instruments and laboratory equipment.
Stakeholders demand that AMS provide cost effective and timely product
testing requiring modern and sometimes automated instrumentation. These
instruments are expensive and undergo equipment capitalization for
determining costs. Equipment capitalization is the determined cost per
year to replace the equipment after its useful service life has been
established. Infrastructure costs include database acquisitions and
maintenance for e-business. Infrastructure costs include large computer
hardware and software expenses. Agency and Program overhead is the pro-
rated share, attributable to a particular service, of the agency's
management and support costs. Management and administrative support
costs include the costs of providing budget and accounting services,
regulatory services, investigative and enforcement services, debt-
management services, personnel services, public information services,
legal services, statistical services, and other general program and
agency management services of support activities above the local
laboratory level. Overhead expenditures are allocated across the Agency
for each direct hour of laboratory service.
AMS no longer uses the Billings and Collections System (BLCO) for
billings and collections through the National Finance Center (NFC) in
New Orleans, LA. The Agency now uses the ``accounts receivable''
functions in Foundation Financial Information System (FFIS) as the
document feeder system for customer billings and the collections now
come through our lockbox.
[[Page 15017]]
Accordingly, Sec. 91.42 will be updated to reflect these changes. The
regulations also are updated to identify current facility addresses.
This rule will also remove and reserve 7 CFR Part 92. Part 92 is
obsolete because it relates to the mandatory testing of imported
tobacco for prohibited pesticide residues and the statutory requirement
for such testing has been removed by the Fair and Equitable Tobacco
Reform Act of 2004 (7 U.S.C. 518). The tests had been conducted by
Science and Technology (S&T) Programs for the AMS Tobacco Program,
which sampled imported tobacco and administered the program for
imported tobacco.
Proposed Rule and Comments
AMS published a proposed rule on September 22, 2006 (71 FR 55369),
stating that it was proposing changing fees for laboratory services for
FYs 2007 through 2009. AMS provided for a 30 day comment period, ending
October 23, 2006. AMS received no comments.
Executive Order 12866, Regulatory Flexibility Act, and Paperwork
Reduction Act
This rule has been reviewed under Executive Order 12866. Although
not economically significant, this rule has been determined to be
significant for the purposes of Executive Order 12866 and, therefore,
has been reviewed by the Office of Management and Budget (OMB).
An economic analysis follows to review the impacts on laboratory
customers of the new revisions in AMS voluntary user fees for
laboratory services. The economic analysis provides a cost-benefit
analysis as required by Executive Order 12866 and an analysis of the
potential economic effects on small entities as required by the
Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.). In accordance
with 5 U.S.C. 604, AMS has prepared a final Regulatory Flexibility
Analysis for this rule.
Regulations must be designed in the most cost-effective manner
possible to obtain the objective of a sustainable cost recovery program
while imposing the least burden on society. AMS has prepared a
Regulatory Impact Assessment (RIA) consisting of a statement of the
need for the rulemaking action, an examination of alternative
approaches, and an economic analysis of the benefits and costs.
Need for the Rule
The AMS laboratory testing programs are voluntary, user fee
services conducted under the authority of the Agricultural Marketing
Act of 1946 (AMA), as amended (7 U.S.C. 1621, et seq.). The AMA
authorizes the Secretary of Agriculture to provide Federal analytical
testing services that facilitate marketing and trade. The AMA also
requires that reasonable fees be collected from the users of the
services to cover as nearly as practicable the costs of maintaining the
programs.
Science and Technology (S&T) Programs of AMS regularly reviews its
user-fee-financed laboratory service programs to determine if the fee
levels are adequate. The most recent review determined that the
existing fee schedule, effective October 27, 2000 (65 FR 64302) will
not generate sufficient revenues to recover operating costs. For fiscal
year 2005 the Science and Technology program reported a $702,000
deficit at the current fee levels. The Science and Technology program
costs and revenues for fiscal year 2005 were $6,393,000 and $5,691,000,
respectively. Program costs for fiscal year 2006 were projected at
$6,602,000 and revenues were projected at $5,834,000 for a deficit of
$768,000. With this action, the Agency expects to collect an estimated
$6,521,000, $7,186,000, and $7,553,000 in fiscal years 2007 through
2009 respectively, to cover the cost of routine laboratory services,
appeal requests, overtime, and holiday services for Science and
Technology customers and other program stakeholders.
Alternatives
Alternatives to the rate increase were considered by the Agency.
One alternative to this rule would be to make no changes to the current
user fees. As a result, AMS would not recover the full cost of program
activities and services would have to be reduced or terminated. Were
this to happen, the users of AMS laboratory services would be unable to
meet certain AMS program requirements, would find it more difficult to
meet foreign government or importer testing requirements, and would
lose the opportunity to support their marketing efforts with what they
believe to be preferred government laboratory test results.
Consequently, AMS does not consider this alternative to be reasonable.
Another alternative considered would be to calculate the fee
increases needed over the next three year period and then spread this
overall increase evenly in annual increments. Because the increases are
necessary to cover on-going costs, e.g., rent, salaries and benefits,
and equipment replacement, and financial stability needs to be
maintained for this program, adequate funds must be generated
immediately, rather than spread over a three year period. Thus, AMS
does not consider this alternative to be reasonable.
To ensure full costs are being covered as they are incurred, the
preferred alternative is to match fee increases with expected costs on
an annual basis over the next three years. This alternative will assure
costs are appropriately covered and that laboratory testing services
remain available as program customers request them. With this action,
the Agency expects to collect an estimated $6,521,000, $7,186,000, and
$7,553,000 in fiscal years 2007 through 2009, respectively, to cover
the cost of routine laboratory services, appeal requests, overtime, and
holiday services.
Summary of Impacts
Under this rule AMS will continue to offer laboratory testing
services under the Agricultural Marketing Act of 1946 as amended, to
facilitate marketing and allow products to obtain grade designations or
meet marketing standards. As such, the program provides a viable option
for a wide variety of clients by delivering scientific and analytical
support services to the agricultural community and provides a valuable
resource for those businesses and industries that wish to use a USDA
shield.
Further, by having a three year fee increase instead of a single
year fee increase, the Agency will help ensure that the fee increases
are effective at the beginning of each fiscal year on October 1. An
increase over three fiscal years will permit customers and other
program stakeholders an opportunity to plan for annual changes in costs
of laboratory service and to incorporate them into their budgetary
plans.
For analytical purposes, projected collections are based on
calculations using an effective date of January 1, 2007 for the fiscal
year 2007 user fees. There are essentially three rate increases being
changed for the basic laboratory services--$45 to $60 or 33.3 percent
in fiscal year 2007, $60 to $63 or 5.0 percent in fiscal year 2008 and
$63 to $67 or 6.4 percent in fiscal year 2009. The rate increases for
overtime and appeals are $67.50 to $71 or 5.2 percent, $71 to $74 or
4.2 percent, and $74 to $78 or 5.4 percent in fiscal years 2007, 2008,
and 2009, respectively. The rate increases for holiday service are
$67.50 to $82 or 21.5 percent, $82 to $85 or 3.7 percent, and $85 to
$89 or 4.7 percent in fiscal years 2007, 2008, and 2009, respectively.
This is a voluntary program and the costs to each user would be
proportional to their use of
[[Page 15018]]
laboratory services each year. The increased fees will cover inflation
and national and locality pay raises and replacement of equipment and
other infrastructure improvements.
Under the Regulatory Flexibility Act, the impact of this rule on
small businesses must be analyzed. There are 811 current users of AMS
laboratory testing services. Such users of services include food
processors, handlers, growers, Federal and State government agencies,
and exporters. Many of these users are small entities under the
criteria established by the Small Business Administration (13 CFR
121.201). Any decision by stakeholders and customers to discontinue the
use of the laboratory services because of increased fees would not
hinder food processors or other industry members from marketing their
products.
For the following cost analysis, certain assumptions are used.
First, base year data is actual fiscal year 2006 amount billed for
voluntary services performed for the public. Second, seven percent of
the total amount billed represents overtime costs and five percent
represents costs related to appeals. Third, the calculated amounts in
fiscal year 2007 are using the base year data as if the base year was
fiscal year 2006. Fourth, each of the 811 customers had the exact same
tests, using the same amount of time, and thus were billed the exact
same amount. This customer is the ``average'' laboratory customer.
Table 14 sets the total levels for the dollar ($) amounts billed in
the base year (Fiscal Year 2006).
Table 14.--Base Year Data (Fiscal Year 2006)
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Billed.......................................... $1,536,688
Basic Laboratory Services............................. 1,352,285
Overtime Costs (7%)................................... 107,568
Appeal Costs (5%)..................................... 76,834
------------------------------------------------------------------------
Table 15 presents the base year costs and estimates costs in fiscal
year 2007, fiscal year 2008, and fiscal year 2009 for the ``average''
laboratory customer. The base year values are derived by dividing basic
laboratory services, overtime costs, and appeal costs by 811. The
values for fiscal years 2007, 2008, and 2009 are derived multiplying
each year by the appropriate percentage rate.
Table 15.--Costs ($) for the ``Average'' Customer, Base Year Through Fiscal Year 2009
----------------------------------------------------------------------------------------------------------------
Total
Base year FY 2007 FY 2008 FY 2009 Diff.\1\
----------------------------------------------------------------------------------------------------------------
Lab Services........................................ 1,667 2,223 2,334 2,483 816
Overtime............................................ 133 140 146 154 21
Appeals............................................. 95 100 104 110 15
-----------------------------------------------------------
Total....................................... 1,895 2,463 2,584 2,747 852
----------------------------------------------------------------------------------------------------------------
\1\ Net difference calculated between costs in dollars ($) between base year and Fiscal Year 2009.
After the third increase, the customer will pay an additional
average of $852 for all laboratory services. This is a 44.96 percent
increase over the base year. The percentage increase for the basic
laboratory services is 49.0 percent, overtime is 15.8 percent, and an
appeal sample is 15.8 percent.
Table 16.--Costs ($) for a ``Large Business'' Customer, Base Year Through Fiscal Year (FY) 2009
----------------------------------------------------------------------------------------------------------------
Total Diff.
Base total FY 2007 FY 2008 FY 2009 \1\
----------------------------------------------------------------------------------------------------------------
Lab Services.................... 704,000 938,432 985,354 1,048,417 344,417
Overtime........................ 56,000 58,912 61,386 64,701 8,701
Appeals......................... 40,000 42,080 43,847 46,215 6,215
-------------------------------------------------------------------------------
Total................... 800,000 1,039,424 1,090,587 1,159,333 359,333
----------------------------------------------------------------------------------------------------------------
\1\ Net difference calculated between costs in dollars ($) between base year and Fiscal Year 2009.
Table 16 presents the base year costs and estimates costs in fiscal
years 2007, 2008, and 2009 for a ``large business'' laboratory
customer. While the numerical values increase significantly, the
percentages are the same. Even though the ``large business'' customer
is paying $359,333 more then what was paid for the same services in the
base year, the increase is still approximately 44.9 percent above what
was billed in the base year.
The same is true for a ``small business'' customer. Table 17
presents the costs associated with a customer billed $29,000. Again the
total difference between the billing in fiscal year 2009 and the base
year is significantly smaller than the billing of an ``average''
customer, but the percentage increase is still near 44.9 percent.
Table 17.--Costs ($) for a ``Small Business'' Customer, Base Year Through Fiscal Year (FY) 2009
----------------------------------------------------------------------------------------------------------------
Total
Base year FY 2007 FY 2008 FY 2009 Diff. \1\
----------------------------------------------------------------------------------------------------------------
Lab Services............................................. 25,520 34,018 35,719 38,005 12,485
Overtime................................................. 2,030 2,136 2,226 2,346 316
Appeals.................................................. 1,450 1,525 1,589 1,675 225
------------------------------------------------------
Total............................................ 29,000 37,679 39,534 42,026 13,026
----------------------------------------------------------------------------------------------------------------
\1\ Net difference calculated between costs in dollars ($) between base year and FY 2009.
[[Page 15019]]
Under the Regulatory Flexibility Act, the impact of this rule on
small businesses must be considered. The Agency estimates that 25
percent of the laboratory fees billed in fiscal year 2006 was to small
businesses. Thus, a total of $384,172 was billed to small businesses.
If the entire increase had been implemented, small businesses would
have been billed $556,665, a 44.9 percent increase.
One question is how each of these customers including small
businesses will react to cost increases at these amounts. The increases
are spread over a three year period which will mitigate some of the
impact. But the focus should be on the reaction to the increase
occurring in fiscal year 2007 which is a one third increase over the
base year. The answer is dependent on the customer's business, and is
proportional to the number of samples involved. The lower the cost per
unit of product being sampled, the higher the probability the customer
will continue to use AMS laboratory services and pass on some or all of
the anticipated additional costs, the exact amount of which is not
known. Also, use of AMS laboratory services is voluntary and other
private or public laboratory options are available.
This rule contains no new information collection or recordkeeping
requirements that are subject to the Office of Management and Budget
(OMB) approval under the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3520). AMS is committed to implementation of the Government
Paperwork Elimination Act which provides for the use of information
resources to improve the efficiency and effectiveness of governmental
operations, including providing the public with the option of
submitting information or transacting business electronically to the
extent practicable. USDA has not identified any relevant Federal rules
that duplicate, overlap, or conflict with this rule.
Unfunded Mandate Analysis
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of UMRA, the
Department generally must prepare a written statement, including a cost
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures to State, local, or tribal
governments, in the aggregate, or to the private sector, of $100
million or more in any one year. When such a statement is needed for a
rule, section 205 of UMRA generally requires that the Department
identify and consider a reasonable number of regulatory alternatives
and adopt the least costly, more cost-effective or least burdensome
alternative that achieves the objectives of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the UMRA) that impose costs on State, local,
or tribal governments or to the private sector of $100 million or more
in any one year. Thus, this rule is not subject to the requirements of
section 202 and 205 of UMRA.
Civil Justice Reform (Executive Order 12988)
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule does not preempt any State or local laws, regulation, 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 this rule or the application of its provisions.
Civil Rights Review
AMS has considered the potential civil rights implications of this
rule on minorities, women, or persons with disabilities to ensure that
no person or group shall be discriminated against on the basis of race,
color, national origin, gender, religion, age, disability, sexual
orientation, marital or family status, political beliefs, parental
status, or protected genetic information. AMS has included at Sec.
91.7 the provision in the regulation under part 91 to describe in
detail the requirements for nondiscrimination when reviewing or
granting any person or entity the benefits of Science and Technology
Programs laboratory service. This regulation is consistent with USDA
regulations which prohibit discrimination in its programs and
activities.
This rule does not require affected entities to relocate or alter
their operations in ways that could adversely affect such persons or
groups. Further, this rule does not deny any persons or groups the
benefits of the program or subject any persons or groups to
discrimination.
AMS has reviewed this rule in accordance with the Department
Regulation 4300-4,``Civil Rights Impact Analysis.'' AMS has determined
this action ensures the civil rights of all Science and Technology
Programs applicants and customers. They represent minorities (24.4%),
women (51.1%), and persons with disabilities (14.5%) in the same
percent proportions to the entire customer base as their compositions
are represented in the total approximate general population (300.2
million) of the United States of America available in descriptive
tables at http://www.census.gov/. In addition, each and every customer
would receive the same user fee for each identical service.
Comments and Effective Date
A thirty day comment period was provided for interested persons to
comment on the proposed rule published in Federal Register (71 FR
55369) regarding changes in user fees for voluntary laboratory testing
services. No comments were received by the end of the comment period on
October 23, 2006. The existing fee schedules have been in place since
October 2000. AMS regularly reviews its user-fee-supported programs to
determine if the fees are adequate to cover expenses. The agency is
unable to recover the full cost of its laboratory testing services.
With this regulation, AMS is providing for three annual hourly fee rate
increases for fiscal years 2007-2009. Accordingly, for these reasons,
pursuant to 5 U.S.C. 553, it is found and determined that good cause
exists for not postponing the effective date of this rule until 30 days
after publication in the Federal Register. Therefore, this final rule
is effective one day after the date of publication in the Federal
Register.
List of Subjects
7 CFR Part 91
Administrative practice and procedure, Agricultural commodities,
Laboratories, Reporting and recordkeeping requirements.
7 CFR Part 92
Agricultural commodities, Laboratories, Pesticides and pests,
Tobacco.
0
For the reasons set forth in the preamble, the Agricultural Marketing
Service amends part 91 and under the authority of 7 U.S.C. 1622, 1624
removes part 92 of Title 7, chapter I, subchapter E, of the Code of
Federal Regulations as follows:
PART 91--SERVICES AND GENERAL INFORMATION
0
1. The authority citation part 91 continues to read as follows:
Authority: 7 U.S.C. 1622, 1624.
0
2. Section 91.5 is revised to read as follows:
[[Page 15020]]
Sec. 91.5 Where services are offered.
(a) Services are offered to applicants at the Science and
Technology laboratories and facilities as listed below.
(1) Science and Technology Programs National Science Laboratory. A
variety of proximate, chemical, microbiological and biomolecular tests
and laboratory analyses performed on fruits and vegetables, poultry,
meat and meat products, fiber products and processed foods are
performed at the Science and Technology Programs (S&T) laboratory
located at: USDA, AMS, Science and Technology Programs, National
Science Laboratory (NSL), 801 Summit Crossing Place, Suite B, Gastonia,
North Carolina 28054-2193.
(2) Science and Technology (S&T) Programs Science Satellite
Laboratories. The specialty satellite laboratories performing aflatoxin
and other testing on peanuts, peanut products, dried fruits, grains,
edible seeds, tree nuts, shelled corn products, oilseed products,
vegetable oils, juices, citrus products, and other commodities are
located as follows:
(i) USDA, AMS, Science & Technology, Citrus Laboratory, 98 Third
Street, SW.,
Winter Haven, Florida 33880-2905.
(ii) USDA, AMS, Science & Technology, 6567 Chancey Mill Road,
Blakely, Georgia 39823-2785.
(iii) USDA, AMS, Science & Technology, c/o Golden Peanut Company
LLC, (Mail: P.O. Box 272), 715 Martin Luther King Drive, Dawson,
Georgia 39842-1002.
(iv) USDA, AMS, Science & Technology, 107 South Fourth Street,
Madill, Oklahoma 73446-3431.
(v) USDA, AMS, Science & Technology, (Mail: P.O. Box 1130), 308
Culloden Street, Suffolk, VA 23434-4706.
(3) Program laboratories. Laboratory services are available in all
areas covered by cooperative agreements providing for this laboratory
work and entered on behalf of the Department with cooperating Federal
or State laboratory agencies pursuant to authority contained in Act(s)
of Congress. Also, services may be provided in other areas not covered
by a cooperative agreement if the Administrator determines that it is
possible to provide such laboratory services.
(4) Other alternative laboratories. Laboratory analyses may be
conducted at alternative Science and Technology Programs laboratories
and can be reached from any commodity market in which a laboratory
facility is located to the extent laboratory personnel are available.
(5) The Plant Variety Protection (PVP) Office. The PVP office and
plant examination facility of the Science and Technology programs
issues certificates of protection to developers of novel varieties of
plants which reproduce sexually. The PVP office is located as follows:
USDA, AMS, Science & Technology Programs, Plant Variety Protection
Office, National Agricultural Library Building, Room 401, 10301
Baltimore Boulevard, Beltsville, MD 20705-2351.
(6) Science and Technology Programs headquarters offices. The
examination, licensure, quality assurance reviews, laboratory approval/
certification and consultation services are provided by headquarters
staff located in Washington, DC. The main headquarters office is
located as follows: USDA, AMS, Science and Technology Programs, Office
of the Deputy Administrator, South Agriculture Bldg., Mail Stop 0270,
1400 Independence Ave., SW., Washington, DC 20250-0270.
(7) The Information Technology (IT) Group. The IT office of the
Science and Technology Programs is headed by the Associate Deputy
Administrator for Technology/Chief Information Officer and provides
information technology services and management systems to the Agency
and other agencies within the USDA. The main IT office is located as
follows: USDA, AMS, Science and Technology, Office of the Associate
Deputy Administrator for Technology, 1752 South Agriculture Bldg., Mail
Stop 0204, 1400 Independence Ave., SW., Washington, DC 20250-0204.
(8) Statistics Branch Office. The Statistics Branch office of
Science and Technology Programs (S&T) provides statistical services to
the Agency and other agencies within the USDA. In addition, the
Statistics Branch office generates sample plans and performs consulting
services for research studies in joint efforts with or in a leading
role with other program areas of AMS or of the USDA. The Statistics
Branch office is located as follows: USDA, AMS, S&T Statistics Branch,
0603 South Agriculture Bldg., Mail Stop 0223, 1400 Independence Ave.,
SW., Washington, DC 20250-0223.
(9) Technical Services Branch Office. The Technical Services Branch
office of Science and Technology (S&T) provides technical support
services to all Agency programs and other agencies within the USDA. In
addition, the Technical Services Branch office provides certification
and approval services of private and State government laboratories as
well as oversees quality assurance programs; import and export
certification of laboratory tested commodities. The Technical Services
Branch mailing address is as follows: USDA, AMS, S&T Technical Services
Branch, South Agriculture Bldg., Mail Stop 0272, 1400 Independence
Ave., SW., Washington, DC 20250-0272. The Technical Services Branch
office is located as follows: USDA, AMS, Science and Technology
Technical Services Branch, Room 306, Cotton Annex Bldg., 300 12th
Street, SW., Washington, DC 20250.
(10) Monitoring Programs Office. Services afforded by the Pesticide
Data Program (PDP) and Microbiological Data Program (MDP) are provided
by USDA, AMS, Science and Technology Monitoring Programs Office 8609
Sudley Road, Suite 206, Manassas, VA 20110-8411.
(11) Pesticide Records Branch Office. Services afforded by the
Federal Pesticide Record Keeping Program for restricted-use pesticides
by private certified applicators are provided by USDA, AMS, Science and
Technology, Pesticide Records Branch, 8609 Sudley Road, Suite 203,
Manassas, VA 20110-8411.
(b) The addresses of the various laboratories and offices appear in
the pertinent parts of this subchapter. A prospective applicant may
obtain a current listing of addresses and telephone numbers of Science
and Technology Programs laboratories, offices, and facilities by
addressing an inquiry to the Administrative Officer, Science and
Technology Programs, Agricultural Marketing Service, United States
Department of Agriculture (USDA), 1400 Independence Ave., SW., Room
0725 South Agriculture Building, Mail Stop 0271, Washington, DC 20250-
0271.
0
3. Section 91.37 is revised to read as follows:
Sec. 91.37 Standard hourly fee rate for laboratory testing, analysis,
and other services.
(a) The standard hourly fee rate in this section for the individual
laboratory analyses cover the costs of Science and Technology
laboratory services, including issuance of certificates and personnel
and overhead costs other than the commodity inspection fees referred to
in 7 CFR 52.42 through 52.46, 52.48 through 52.51, 55.510 through
55.530, 55.560 through 55.570, 58.38 through 58.43, 58.45 through
58.46, 70.71 through 70.72, and 70.75 through 70.78. The hourly fee
rates in this part 91 apply to all commodity and processed commodity
products. The new fiscal year for Science and Technology
[[Page 15021]]
Programs commences on October 1 of each calendar year. The rate for
laboratory services is $60.00 per hour in fiscal year 2007, $63.00 per
hour in fiscal year 2008, and $67.00 per hour in fiscal year 2009.
(b) Printed updated schedules of the laboratory testing fees for
processed fruits and vegetables (7 CFR part 93), poultry and egg
products (7 CFR part 94), and meat and meat products (7 CFR part 98)
will be available for distribution to Science and Technology's
constituents and stakeholders by the individual Laboratory Managers of
Science and Technology laboratories listed in Sec. 91.5. These single
test laboratory fee schedules are based upon the applicable hourly fee
rate stated in Sec. 91.37(a).
(c) Except as otherwise provided in this section, charges will be
made at the applicable hourly rate stated in Sec. 91.37(a) for the
time required to perform the service. A charge will be made for service
pursuant to each request or certificate issued.
(d) When a laboratory test service is provided for AMS by a
commercial or State government laboratory, the applicant will be
assessed a fee which covers the costs to the Science and Technology
program for the service provided.
(e) When Science and Technology staff provides applied and
developmental research and training activities for microbiological,
physical, chemical, and biomolecular analyses on agricultural
commodities the applicant will be charged a fee on a reimbursable cost
to AMS basis.
0
4. Section 91.38 is revised to read as follows:
Sec. 91.38 Additional fees for appeal of analysis.
(a) The applicant for appeal sample testing will be charged a fee
at the hourly rate for laboratory service that appears in this
paragraph. The new fiscal year for Science and Technology Programs
commences on October 1 of each calendar year. The appeal rate for
laboratory service is $71.00 per hour in fiscal year 2007, $74.00 per
hour in fiscal year 2008, and $78.00 per hour in fiscal year 2009.
(b) The appeal fee will not be waived for any reason if analytical
testing was completed in addition to the original analysis.
0
5. Section 91.39 is revised to read as follows:
Sec. 91.39 Premium hourly fee rates for overtime and legal holiday
service.
(a) When analytical testing in a Science and Technology facility
requires the services of laboratory personnel beyond their regularly
assigned tour of duty on any day or on a day outside the established
schedule, such services are considered as overtime work. When
analytical testing in a Science and Technology facility requires the
services of laboratory personnel on a Federal holiday or a day
designated in lieu of such a holiday, such services are considered
holiday work. Laboratory analyses initiated at the request of the
applicant to be rendered on Federal holidays, and on an overtime basis
will be charged fees at hourly rates for laboratory service that appear
in this paragraph. The new fiscal year for Science and Technology
Programs commences on October 1 of each calendar year. The laboratory
analysis rate for overtime service is $71.00 per hour in fiscal year
2007, $74.00 per hour in fiscal year 2008, and $78.00 per hour in
fiscal year 2009. The laboratory analysis rate for Federal holiday or
designed holiday service is $82.00 per hour in fiscal year 2007, $85.00
per hour in fiscal year 2008, and $89.00 per hour in fiscal year 2009.
(b) Information on legal holidays or what constitutes overtime
service at a particular Science and Technology laboratory is available
from the Laboratory Manager or facility supervisor.
0
6. Section 91.42 is revised to read as follows:
Sec. 91.42 Billing.
(a) Each billing cycle will end on the 25th of the month. The
applicant will be billed by the National Finance Center (NFC) using the
Foundation Financial Information System (FFIS) on the 1st day,
following the end of the billing cycle in which voluntary laboratory
services and other services were rendered at a particular Science and
Technology laboratory or office.
(b) The total charge or fee shall normally be stated directly on
the analysis report or on a standardized official certificate form for
the laboratory analysis of a specific agricultural commodity and
related commodity products.
(c) The actual bill for collection will be issued by the USDA,
National Finance Center Billings and Collection Branch, (Mail: P.O. Box
60075), 13800 Old Gentilly Road, New Orleans, Louisiana 70160-0001.
PART 92--[REMOVED AND RESERVED]
0
7. Part 92 is removed and reserved.
Dated: March 23, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-5787 Filed 3-29-07; 8:45 am]
BILLING CODE 3410-02-P