Pilot Programs Allowing More Than One Official Agency to Provide Official Services Within a Single Geographic Area

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

Pilot Programs Allowing More Than One Official Agency to Provide

Official Services Within a Single Geographic Area

AGENCY: Grain Inspection, Packers and Stockyards Administration

(GIPSA).

ACTION: Notice

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

SUMMARY: GIPSA announces two pilot programs allowing more than one

official agency to provide official services within a single geographic

area.

EFFECTIVE DATE: November 1, 1995.

ADDRESSES: Neil E. Porter, Director, Compliance Division, GIPSA, USDA,

Room 1647 South Building, P.O. Box 96454, Washington, DC 20090-6454.

FOR FURTHER INFORMATION CONTACT: Neil E. Porter, telephone 202-720-

8262.

SUPPLEMENTARY INFORMATION:

Sections 7(f) and 7A of the United States Grain Standards Act, as

amended (Act), were amended by the U.S. Grain Standards Act Amendments

of 1993 (Public Law 103-156) on November 24, 1993, to authorize GIPSA's

Administrator to conduct pilot programs allowing more than one official

agency to provide official services within a single geographic area

without undermining the declared policy of the Act. The purpose of

pilot programs is to evaluate the impact of allowing more than one

official agency to provide

[[Page 49828]]

official services within a single geographic area.

GIPSA requested comments on five possible pilot programs in the

March 14, 1994, Federal Register (59 FR 11759): timely service; barges

on selected rivers or portions of rivers; exceptions; commercial

inspections; and submitted samples. Comments were due by April 22,

1994. GIPSA received 41 comments on these possible pilot programs:

seventeen comments from official agencies or employees of official

agencies opposed these pilot programs; twenty-two comments from grain

firms, grain trade associations, and a few official agencies supported

these pilot programs; and two comments from official agencies were

neutral.

The comments submitted by official agencies expressed their concern

over being pressured to grade more leniently or risk losing customers,

the possible issuance of multiple original grades on a single lot of

grain, losing major customers to competing official agencies, being

forced to give preferential treatment to large customers over small

customers, and maintaining a relatively uniform inspection volume

sufficient to preserve their personnel base.

Comments from the grain trade noted difficulty in getting services

when needed to avoid additional charges and the possibility of better

service and/or lower cost if they could choose the official agency to

provide such services. They also indicated a desire for pilot programs

encompassing all services, a more specific proposal to comment on, and

a concern that the structure of a pilot program could determine its

success or failure.

After considering these comments and other information, GIPSA, in

the March 10, 1995, Federal Register (60 FR 13113), developed and asked

for comments on two proposed pilot programs: ``Timely Service'' (one of

the original five pilot programs) and ``Open Season'' (an additional

pilot program). The remaining four pilot programs proposed in March 14,

1994, Federal Register (barges on selected rivers or portions of

rivers, exceptions, commercial inspections, and submitted samples) were

determined to be too narrow in scope to conduct an appropriate pilot

program.

Comments on these two proposed pilot programs were due by May 5,

1995. GIPSA received 15 comments. Seven official agencies and one

official agency organization opposed these pilot programs citing their

belief that the pilot programs would have an adverse impact on the

integrity of the official inspection system. Three of these agencies

also expressed concern about grain handling facilities being able to

participate in the open season pilot program as a result of seasonal

shipping patterns or doing without official services for 6 months.

GIPSA recognizes these concerns, but believes that there are adequate

safeguards in the proposed pilot programs. Two official agencies, one

grain handling facility, and four grain trade organizations supported

these pilot programs citing their belief that the pilot programs would

promote more timely official inspection services. Two of the trade

organizations recommended that timely service be redefined to mean when

the final grades are received by the customer. GIPSA agrees and has

modified the Timely Service pilot program to differentiate between

obtaining sampling/weighing services and receiving inspection results.

The following two pilot programs will start on November 1, 1995,

and end on October 31, 1996.

1. Timely Service. This pilot program allows official agencies to

provide official services to facilities outside their assigned

geographic area on a case-by-case basis when these official services

can not be provided in a timely manner by the official agency

designated to serve that area. A timely manner is defined as follows:

Sampling/weighing services. 6 hours when a service request is

received between 6 a.m. and noon, Monday through Friday, by the

official agency designated to provide service; and 12 hours when a

service request is received any other time by the official agency

designated to provide service. This means 6 hours or 12 hours to have a

sampler/weigher at the facility requesting service unless the customer

requests a later arrival.

Inspection results. 12 hours from the completion of sampling of the

units to be inspected. This means that the official agency providing

the service shall provide inspection results to the customer not later

than 12 hours upon completion of the sampling. This notification of

results may be by telephone, telefax, or other electronic means, and

does not apply to certification.

Facilities unable to obtain service within these time limits may

request such service from another official agency. Customers using this

pilot program must maintain sufficient documentation to establish that

they could not receive timely service from the official agency

designated to serve them (e.g., copy of faxed request for service). If

GIPSA determines that a customer violates the provisions of this pilot

program, such customer will no longer be permitted to participate in

the program.

Official agencies are encouraged to establish a means to accept

customer orders during other than normal business hours. Official

agencies must handle customer requests for service in the order

received, where practicable. Official agencies asked to provide

official services outside their assigned geographic area under the

Timely Service pilot program must notify the Compliance Division,

GIPSA.

The definition of timeliness in this pilot program supersedes the

definition of ``timely manner'' currently stated in section

800.46(b)(5), and also, supersedes the time requirements stated in

section 800.116(b) of the regulations under the Act for purposes of the

pilot program only. These sections state that official personnel may

not be available to provide requested services if the request is not

received by 2 p.m., the preceding business day.

2. Open Season. This pilot program would allow official agencies an

open season during which they may offer their services to facilities

outside their assigned geographic area where no official sample-lot or

official weighing services have been provided in the previous 6 months.

Official agencies desiring to participate in this pilot program must

submit their plans to provide official services to customers outside

their assigned geographic area to Compliance Division, GIPSA, for

review in consultation with the field office supervising the official

agency. Upon approval by the Compliance Division, these official

agencies would be permitted to participate in this program.

Official agencies participating in these pilot programs can

provide, during the test period, any official services for which they

are designated. Official agencies participating in pilot programs must

arrange for any equipment (including laboratories and access to

diverter-type mechanical samplers) that may be needed to provide

official services at each site outside the area they are currently

designated to serve.

These pilot programs will run for 1 year, starting November 1,

1995, and ending October 31, 1996. During this time, GIPSA will monitor

these pilot programs. If, at any time, GIPSA determines that a pilot

program is having a negative impact on the official system or is not

working as intended, the pilot program may be modified or discontinued.

Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C.

71 et seq.)

[[Page 49829]]

Dated: September 19, 1995

David R. Shipman

Deputy Administrator

[FR Doc. 95-23908 Filed 9-26-95; 8:45 am]

BILLING CODE 3410-EN-F