Fees for Beltsville Commodity Testing Laboratory Services

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868

RIN 0580-AA27

Fees for Beltsville Commodity Testing Laboratory Services

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Grain Inspection Service (FGIS), a program of the

Grain Inspection, Packers and Stockyards Administration (GIPSA), is

increasing service fees charged by the FGIS Commodity Testing

Laboratory at Beltsville, Maryland, under authority of the Agricultural

Marketing Act (AMA) of 1946. FGIS is also establishing a test and unit

fee for vomitoxin testing at the Laboratory

These revisions are necessary to cover, as nearly as practicable,

the projected operating costs, including related supervisory and

administrative costs, for commodity laboratory testing services.

EFFECTIVE DATE: September 11, 1995.

FOR FURTHER INFORMATION CONTACT:

George Wollam, USDA-GIPSA, Room 0623-South Building, 1400 Independence

Avenue, SW, Washington, DC 20090-6454, telephone (202) 720-0292.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and Regulatory Flexibility Act

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.

This increase in the service fees is necessary to recover operating

losses at the Beltsville Commodity Testing Laboratory. These fees were

increased on August 1, 1984, (49 FR 26547) and due to increases in the

operating costs, it is not being covered by revenue. The overall cost

of operating the laboratory increased between FY 92 and 93 by more than

8 percent. This cost increase occurred simultaneously with a more than

17 percent downturn in revenue due to fewer service requests. Revenue

of $1,035,411 did not cover the operating cost of $1,190,700 for FY 93,

resulting in a 1-year operating loss of $155,289. Given FY 93 volume,

the fee increase will generate revenue of $1,394,577 or an increase of

$359,166.

James R. Baker, Administrator, GIPSA, has determined that this

final rule will not have a significant economic impact on a substantial

number of small entities.

Executive Order 12778

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This action is not intended to have a retroactive

effect. This final rule will not pre-empt any State or local laws,

regulations, or policies unless they present irreconcilable conflict

with this rule. There are no administrative procedures which must be

exhausted prior to any judicial challenge to provisions of this rule.

Information Collection and Recordkeeping Requirements

In compliance with the Paperwork Reduction Act of 1980 (44 U.S.C.

Chapter 35), the previously approved information collection and

recordkeeping requirements concerning applications for inspection

services, including official commodity laboratory testing services,

have been approve by the Office of Management and Budget under control

number 0580-0013.

Background

On November 3, 1994, FGIS proposed in the Federal Register (59 FR

55067) to increase fees charged for Beltsville Commodity Testing

Laboratory Services and establish a test and unit fee for vomitoxin

testing at the Laboratory.

The fees for commodity laboratory testing services were last

increased August 1, 1984, (49 FR 26547). Subsequent adjustments were

made on April 17, 1991, (56 FR 15483), adding several new laboratory

test services and consolidating others for clarity and efficiency.

Currently, these fees appear in section 868.90, Table 4 of the

regulations (7 CFR 868.90, Table 4).

FGIS is adding a vomitoxin laboratory testing service to the

current list of fees, 7 CFR 868.90, Table 4. The new test is required

to accommodate frequent grain and food industry requests. In addition,

changes are made to Table 4 concerning the Tilletia controversa kuhn

(TCK) laboratory test services. Currently, section 868.90, Table 4

provides for a Tilletia controversa kuhn (TCK) test for $25.20. While

the proposed rule effected this test and fee in Table 4, it did not

separate the TCK testing service to specify quantitative and

qualitative testing. This final rule changes Table 4 to specify both a

qualitative and quantitative TCK testing service. The qualitative test

remains at $25.20 while the quantitative test fee will be $76.00. This

will recover, as nearly as practicable, projected operating costs.

FGIS continually strives to contain operating costs through program

efficiencies and streamlining. In fiscal year 1992, FGIS took specific

action to reduce chemical disposal costs by implementing new

technology. FGIS further enhanced laboratory procedures to improve

overall efficiency. While these changes proved successful in reducing

certain costs, the overall cost of operating the laboratory increased

between FY 92 and 93 by more than 8 precentum. This cost increase

occurred simultaneously with a more than 17 percentum downturn in

revenue due to fewer service requests. Revenue of $1,035,441 did not

cover the operating cost of $1,190,700 for fiscal year 1993, resulting

in a 1-year operating loss of $155,289.

Given fiscal year 1993 volume, the proposed fee increase will

generate revenue of $1,394,577 or an increase of $359,166.

Comment Review

FGIS received one comment during the 30-day comment period. That

comment was from a grain processing trade association. It recognized

the need for a fee increase after 10 years without an increase and

applauded initiatives taken to contain operating costs through program

efficiencies and streamlining. It further suggested that the Beltsville

Commodity Testing Laboratory be consolidated with and moved to the FGIS

Technical Center (QARD) in

[[Page 36029]]

Kansas City, Missouri, in order to reduce ongoing operating expenses

while enhancing the efficiency and timeliness of testing service.

It also requested further information regarding cost and revenue

figures, including both historical and projected, before commenting on

the reasonableness of the specific proposals. However, FGIS published

in the proposed rule all cost and revenue information necessary for the

purpose of increasing fees.

With regard to the suggestion that the Beltsville Commodity Testing

Laboratory be consolidated with and moved to QARD was not germane to

the proposed rule but will be considered if appropriate.

Based on all available information including the comment received,

FGIS is increasing the fees charged at the Beltsville Commodity Testing

Laboratory and making additional changes to Table 4 a provided in this

action.

Final Action

Section 203(h) of the AMA (7 U.S.C. 1622(h)) provides for the

establishment and collection of fees that are reasonable, and as nearly

as practicable, to cover the costs of the services rendered. These fees

cover the FGIS administrative and supervisory costs for the performance

of official services. FGIS costs include personnel compensation,

personnel benefits, travel, rent, communications, utilities,

contractual services, supplies, and equipment.

Section 868.90, Table 4 (as currently shown in section 868.90,

Table 4 of the regulations) is revised to provide for the increase in

laboratory commodity testing fees and the addition of the vomitoxin

laboratory testing and changes to the Tilletia controversa kuhn (TCK)

testing as outlined in the background. Pesticide residue testing

(Carbon Tetrachloride, Methyl Bromide and Ethylene Dibromide) is

deleted because it is no longer conducted at the Beltsville Commodity

Testing Laboratory. Such testing is provided for under the United

States Grain Standards Act (7 U.S.C. 71 et seq.)

The increased fees for laboratory tests are: Aflatoxin test (other

than TLC or Minicolumn), Aflatoxin (TLC), Aflatoxin (Minicolumn),

Appearance and Odor, Ash, Bacteria count, Baking test (cookies),

Bostwick (uncooked/cook test/dispersibility), Brix, Calcium, Carotenoid

Color, Cold test (oil), Cooking test (other than corn soy blend), Crude

fat, Crude fiber, Dough handling (baking), E. coli, Falling number, Fat

(acid hydrolysis), Fat-stability (A.O.M.), Flash point (point and

closed up), Free fatty acid, Hydrogen ion activity (pH), Iron

enrichment, Linolenic acid (fatty acid profile), Lovibond color,

Moisture, Moisture and volatile matter, Performance test (prepared

bakery mix), Peroxide value, Phosphorus, Popcorn kernels (total

defects), Popping ratio/value popcorn, Potassium bromate, Protein,

Salmonella, Salt or sodium content, Sanitation (light filth), Sieve

test, Smoke point, Solid fat index, Unsaponifiable matter, Urease

activity, Visual exam (hops pellet), Visual exam (insoluble impurities,

oils, and shortening), Visual exam (pasta), Visual exam (processed

grain products), Vitamin enrichment, and Water activity.

List of Subjects in 7 CFR Part 868

Administrative practice and procedure, Agriculture commodities.

For the reasons set out in the preamble, 7 CFR Part 868 is amended

as follows:

PART 868--GENERAL REGULATIONS AND STANDARDS FOR CERTAIN

AGRICULTURAL COMMODITIES

1. The authority citation for part 868 continues to read as

follows:

Authority: Secs. 202-208, 60 Stat. 1087, as amended (7 U.S.C.

1621 et. seq.)

2. Section 868.90 is amended by revising paragraphs (a), (b) and

(c) and Table 4 and the undesignated centerhead above paragraph (a) to

read as follows:

Sec. 868.90 Fees for certain Federal inspection services.

* * * * *

Table 3 * * *

Fees for Official Laboratory Test Services Performed at the GIPSA

Commodity Testing Laboratory at Beltsville, Maryland

For Processed Agricultural Products

(a) In addition to the fees, if any, for sampling or other

requested service, a fee will be assessed for each laboratory test

(original, retest, or appeal) as follows:

Table 4.--Laboratory Fees \1\

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Laboratory tests Fees

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(1) Alpha monoglycerides...................................... $18.00

(2) Aflatoxin test (other than TLC or Minicolumn method)...... 22.50

(3) Aflatoxin (TLC)........................................... 48.00

(4) Aflatoxin (Minicolumn method)............................. 25.00

(5) Appearance & odor......................................... 3.00

(6) Ash....................................................... 8.50

(7) Bacteria count............................................ 10.00

(8) Baking test (cookies)..................................... 28.00

(9) Bostwick (cooked)......................................... 12.60

(10) Bostwick (uncooked/cook test/dispersibility).............. 6.50

(11) Brix...................................................... 8.00

(12) Calcium................................................... 12.50

(13) Carotenoid color.......................................... 12.50

(14) Cold test (oil)........................................... 10.00

(15) Color test (syrups)....................................... 6.50

(16) Cooking test (other than corn soy blend).................. 7.00

(17) Crude fat................................................. 10.00

(18) Crude fiber............................................... 13.00

(19) Dough handling (baking)................................... 8.50

(20) E. coli................................................... 19.00

(21) Falling number............................................ 12.00

(22) Fat (acid hydrolysis)..................................... 14.00

(23) Fat stability (A.O.M.).................................... 27.00

(24) Flash point (open & close cup)............................ 14.00

(25) Free fatty acid........................................... 12.00

(26) Hydrogen ion activity (ph)................................ 9.50

(27) Iron enrichment........................................... 15.00

(28) Iodine number/value....................................... 9.50

(29) Linolenic acid (fatty acid profile)....................... 50.00

(30) Lipid phosphorous......................................... 47.00

(31) Lovibond color............................................ 10.00

(32) Margarine (nonfat solids)................................. 23.60

(33) Moisture.................................................. 6.00

(34) Moisture average (crackers)............................... 4.00

(35) Moisture & volatile matter................................ 8.50

(36) Performance test (prepared bakery mix).................... 32.00

(37) Peroxide value............................................ 13.50

(38) Phosphorus................................................ 14.00

(39) Popcorn kernels (total defects)........................... 19.00

(40) Popping ratio/value popcorn............................... 19.00

(41) Potassium bromate......................................... 20.00

(42) Protein................................................... 7.50

(43) Rope spore count.......................................... 31.50

(44) Salmonella................................................ 40.00

(45) Salt or sodium content.................................... 12.50

(46) Sanitation (filth light).................................. 24.00

(47) Sieve test................................................ 5.00

(48) Smoke point............................................... 22.00

(49) Solid fat index........................................... 85.00

(50) Specific volume (bread)................................... 21.80

(51) Staphylococcus aureus..................................... 24.50

(52) Texture................................................... 6.50

(53) Tilletia controversa kuhn (TCK) (Qualitative)............. 25.20

(54) Tilletia controversa kuhn (TCK) (Quantitative)............ 76.00

(55) Unsaponifiable matter..................................... 25.00

(56) Urease activity........................................... 12.50

(57) Visual exam (hops pellet)................................. 7.50

(58) Visual exam (insoluble impurities, oils & shortening)..... 5.00

(59) Visual exam (pasta)....................................... 10.50

(60) Visual exam (processed grain products).................... 12.00

(61) Visual exam (total foreign material other than cereal

grains)....................................................... 6.50

(62) Vitamin enrichment........................................ 7.00

(63) Vomitoxin (TLC)........................................... 40.00

(64) Vomitoxin (Qualitative)................................... 30.00

(65) Vomitoxin (Quantitative).................................. 40.00

(66) Water activity............................................ 20.00

(67) Wiley melting point....................................... 12.50

[[Page 36030]]

(68) Other laboratory tests.................................... \2\

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\1\ When laboratory test service is provided for GIPSA by a private

laboratory, the applicant will be assessed a fee which, as nearly as

practicable, covers the costs to GIPSA for the service provided.

\2\ Fees for other laboratory tests not referenced above will be based

on the noncontract hourly rate listed in Table 1.

(b) If a requested test is to be reported on a specified moisture

basis, a fee for a moisture test will also be assessed.

(c) Laboratory tests referenced in Table 4 will be charged at the

applicable laboratory fee listed in Table 4 when performed at field

locations other than at the applicant's facility.

David R. Shipman,

Acting Deputy Assistant Secretary, Marketing and Regulatory Programs.

[FR Doc. 95-16819 Filed 7-12-95; 8:45 am]

BILLING CODE 3410-EN-M