U.S. Warehouse Act Fees

SUMMARY: The Agricultural Stabilization and Conservation Service (ASCS)

is proposing to increase fees charged warehousemen for licensing and

inspection services under the United States Warehouse Act (USWA) for

grain, tobacco, wool, dry beans, nuts, syrup, and cottonseed. In

addition, an initial schedule of fees for cotton warehousemen is being

added. Future fee changes will be announced by a notice in the Federal

Register prior to July 1, to be effective October 1 of each year, when

such changes have been determined to be necessary.

DATES: Written comments must be received on or before close of business

on June 3, 1994. to be sure of consideration.

ADDRESSES: Written comments on this proposed rule should be sent to the

Director, Licensing Authority Division, U.S. Department of Agriculture

(USDA), ASCS, P.O. Box 2415, room 5962-S, Washington, DC 20013-2415,

telephone 202-720-2121, FAX 202-690-0014.

All submissions will be available for public inspection during

regular business hours from 8 a.m. to 4:30 p.m. eastern time, in room

5962, South Agriculture Building, USDA, 14th and Independence Avenue

SW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Ms. Lynda Moore or Mr. Bill March

at 202-720-2121 or FAX 202-690-0014.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule is issued in conformance with Executive Order

12866. OMB has determined that this rule is significant.

Executive Order 12372

This program is not subject to the provisions of Executive Order

12372 which requires intergovernmental consultation with State and

local officials. See the notice related to 7 CFR part 3015, subpart V,

published at 48 FR 29115 (June 24, 1983).

Executive Order 12778

The Office of General Counsel has certified to the Office of

Management and Budget that these regulations meet the applicable

standards provided in sections 2(a) and 2(b)(2) of this Executive

Order.

Paperwork Reduction Act

The amendments set forth in this proposed rule do not generate any

new or revised information collection or recordkeeping requirements on

the public.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this proposed rule because it has been determined that

this rule will not have a significant effect on a substantial number of

small businesses because licensing under the United States Warehouse

Act is strictly voluntary on the part of the warehouseman. The actions

taken herein are required by statute.

Executive Order 12612

It has been determined that the policies and procedures contained

in this rule will not have substantial direct effects on states or

their political subdivisions, or on the distribution of power and

responsibilities among the various levels of government.

National Environmental Policy Act

This action is not expected to have any significant impact on the

quality of the human environment, health, and safety. Therefore, either

an Environmental Assessment nor an Environmental Impact Statement is

needed.

Background

The Omnibus Budget Reconciliation Act of 1981 requires the

imposition of fees for federally licensed warehouses. That Act

stipulates that:

The Secretary of Agriculture * * * shall charge, assess, and

cause to be collected a reasonable fee for (1) each examination or

inspection of a warehouse * * *; (2) each license issued to any

person to classify, inspect, grade, sample, or weigh agricultural

products stored or to be stored * * *; (3) each annual warehouse

license issued to a warehouseman to conduct a warehouse * * *; and

(4) each warehouse license amended, modified, extended, or

reinstated * * *. Such fees shall cover, as nearly as practicable,

the costs of providing such services and licenses * * * including

administrative and supervisory costs * * *

This proposed rule would add to and change the fees charged and

collected, discontinue publication of fee amounts in the Regulations

for Warehouses (7 CFR, chapter VII, subchapter c), and allow fees to be

adjusted annually in order to cover program costs. Fees that will be

charged beginning October 1, 1994, are contained below. When subsequent

fee changes become necessary, fees will be announced prior to July 1,

to be effective the following October 1, by Notice in the Federal

Register. ASCS' goal is to have the added and revised fees implemented

at the beginning of fiscal year 1995 due to the projection of a

continued shortfall in the USWA user fee account. Annual program

obligations require about $3.5 million.

If public comment leads the agency to reject fee increases, other

methods of statutory compliance would be required such as severe

manpower and service adjustments. Any changes must be implemented by

October 1, 1994. Because of budget constraints, it is imperative that

ASCS implement a final rule before October 1, 1994.

ASCS will consider all comments received regardless of whether the

comment addresses the addition, increase, or the method by which fees

will be announced. ASCS is requesting a 15-day comment period. Good

cause is shown for a priority notice and comment period of less than 60

days, because ASCS must implement these fees for 1995 fiscal year.

Affected parties should not be disadvantaged, because ASCS issued a

Notice requesting comments in the Federal Register on August 20, 1993

(58 FR 44320), and held several meetings with various warehousing

organizations. These organizations have alerted their members and

others as to the effect of this rule.

Proposed Warehouse and Service License Fees

Warehouse license fees for cotton, grain, tobacco, wool, dry beans,

nut, syrup, and cottonseed are proposed to be increased from $50 to

$65.

Service license fees issued to individuals and entities to inspect,

sample, grade, classify, or weigh commodities are proposed to be

increased from $20 to $26.

Proposed Warehouse Annual and Inspection Fees

The annual and inspection fees are outlined in the following tables

by the agricultural product stored. The inspection fees are based on

licensing a first-time applicant and adding space to an existing

license. The purpose of the inspection fee is to cover the cost of

licensing space while the annual fee is applicable to performing

unannounced inspection and is assessed independently of the inspection

fee.

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

Cotton (in bales)

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

Annual

fee for Annual

each fee for

warehouse each

location warehouse

Licensed capacity with a location

CCC without a

storage CCC

agreement storage

agreement

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

1-20,000.......................................... $500 $1,000

20,001-40,000..................................... 650 1,300

40,001-60,000..................................... 800 1,600

60,001-80,000..................................... 1,000 2,000

80,001-100,000.................................... 1,250 2,500

100,001-120,000................................... 1,500 3,000

120,001-140,000................................... 1,750 3,500

140,001-160,000................................... 2,000 4,000

160,001 +......................................... 2,300 4,600

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

Inspection fees will be charged at the rate of $65 for each 1,000 bales

of licensed capacity, or fraction thereof, but in no case less than

$130 nor more than $1,300.

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

Grain (in bushels)

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

Annual Annual

fee for fee for

each each

warehouse warehouse

location location

Licensed capacity with a without a

CCC CCC

storage storage

agreement agreement

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

1-150,000......................................... $130 $260

150,001-250,000................................... 260 520

250,001-500,000................................... 390 780

500,001-750,000................................... 520 1,040

750,001-1,000,000................................. 650 1,300

1,000,001-1,200,000............................... 780 1,560

1,200,001-1,500,000............................... 910 1,820

1,500,001-2,000,000............................... 1,040 2,080

2,000,001-2,500,000............................... 1,170 2,340

2,500,001-5,000,000............................... 1,300 2,600

5,000,001-7,500,000............................... 1,430 2,860

7,500,001-10,000,000.............................. 1,560 3,120

10,000,001 +...................................... \1\1,560 \2\3,120

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

\1\Plus $40 per million bushels above 10,000,000 or fraction thereof.

\2\Plus $80 per million bushels above 10,000,000 or fraction thereof.

Inspection fees will be charged at the rate of $13 for each 10,000

bushels or fraction thereof, but in no case less than $130 nor more

than $1,300.

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

Dry Beans (in hundredweight)

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

Annual

Licensed capacity fee

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

1-90,000...................................................... $650

90,001-150,000................................................ 910

150,001-300,000............................................... 1,170

300,001-450,000............................................... 1,430

450,001-600,000............................................... 1,690

600,001-720,000............................................... 1,950

720,001-900,000............................................... 2,210

900,001-1,200,000............................................. 2,470

1,200,001-1,500,000........................................... 2,730

1,500,001-3,000,000........................................... 2,990

3,000,001 +................................................... 3,250

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

Inspection fees will be charged at the rate of $13 for each 1,000

hundredweight, or fraction thereof, but in no case less than $130 nor

more than $650.

Tobacco and Wool

Annual fee: $13 for each 100,000 pounds of licensed capacity, or

fraction thereof, but in no case less than $520 nor more than $2,600.

Inspection fee: $13 for each 100,000 pounds of licensed capacity,

or fraction thereof, but in no case less than $130 nor more than $650.

Nuts

Annual fee: 13 cents for each short ton of licensed capacity, or

fraction thereof, but in no case less than $520 nor more than $2,600.

Inspection fee: $7 for each 100 short ton of licensed capacity, or

fraction thereof, of peanuts, and $13 for each 1,000 hundredweight, or

fraction thereof, of other nuts, but in no case less than $130 nor more

than $1,300.

Syrup

Annual fee: $4 for each 5,000 gallons of licensed capacity, or

fraction thereof, but in no case less than $520 nor more than $2,600.

Inspection fee: $4 for each 5,000 gallons, or fraction thereof, but

in no case less than $130 nor more than $650.

Cottonseed

Annual fee: $13 for each 1,000 short tons of licensed capacity, or

fraction thereof, but in no case less than $520 nor more than $2,600.

Inspection fee: $13 for each 1,000 short tons of licensed capacity,

or fraction thereof, but in no case less than $130 nor more than $650.

List of Subjects in 7 CFR Parts 735, 736, 737, 738, 739, 740, 741,

and 742

Administrative practice and procedure, Agricultural commodities,

Reporting and recordkeeping requirements, Surety bonds, Warehouses.

Accordingly, it is proposed that 7 CFR parts 735 through 742 be

amended as follows:

PART 735--COTTON WAREHOUSES

PART 736--GRAIN WAREHOUSES

PART 737--TOBACCO WAREHOUSES

PART 738--WOOL WAREHOUSES

PART 739--DRY BEAN WAREHOUSES

PART 740--NUT WAREHOUSES

PART 741--SIRUP WAREHOUSES

PART 742--COTTONSEED WAREHOUSES

1. The authority citation for 7 CFR parts 735, 736, 737, 738, 739,

740, 741, and 742 is revised to read as follows:

Authority: 7 U.S.C. 241 et seq.

2. Sections 735.50, 736.57, 737.48, 738.46, 739.55, 740.56, 741.48,

and 742.58 are revised to read as follows:

Sec. ________ License fees.

(a) Fees are collected in advance for each original, amended,

modified, extended, reinstated, or duplicate warehouseman's license;

and for each original, duplicate, or modified license issued to

inspect, sample, grade, classify, or weigh commodities.

(b) Fee changes, if applicable, will be announced by Notice in the

Federal Register on or before July 1, and effective the following

October 1.

3. Sections 735.51, 736.58, 737.49, 738.47, 739.56, 740.57, 741.49,

and 742.59 are revised to read as follows:

Sec. ________ Warehouse annual and inspection fees.

Warehousemen must pay:

(a) An annual fee which will be determined by computing the

capacity for each warehouse location under a single license and adding

those amounts together to determine the total due. The fee will be

assessed and payable when the warehouse bond is furnished in accordance

with these regulations, for acceptance by the Secretary and annually

thereafter on the bond renewal date. The capacity for each identifiable

location will be determined by the Secretary. The total capacity of all

locations may not exceed the capacity stated in the current license. An

identifiable location is a fully functional public warehouse as

determined by the Secretary. The annual fee a licensed warehouseman is

assessed may be adjusted by the amount Commodity Credit Corporation

(CCC) pays, if CCC has a storage contract or agreement with the

warehouseman.

(b) An inspection fee for each original and amendment inspection.

(c) An inspection fee at the rate of 100 percent of the annual fee

charged warehouses without a CCC storage agreement, in all cases where

the license has been suspended and the warehouseman has requested

reinstatement. No fee will be charged if the Secretary determines that

the suspension was not justified.

(d) A fee for each inspection requested by the warehouseman at the

rate of 100 percent of the annual fee charged warehouses without a CCC

storage agreement.

Signed at Washington, DC on May 13, 1994.

Grant Buntrock,

Administrator, Agricultural Stabilization and Conservation Service.

[FR Doc. 94-12261 Filed 5-18-94; 8:45 am]

BILLING CODE 3410-05-P