General Regulations and Standards for Certain Agricultural Commodities

Proposed Rules

Federal Register

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Proposed Rules

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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868

RIN No. 0580-AA54

General Regulations and Standards for Certain Agricultural

Commodities

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

ACTION: Proposed rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration

(GIPSA) is proposing to amend the regulations under the Agricultural

Marketing Act (Act) of 1946 to allow GIPSA and State cooperators to use

contractors to perform specified inspection services. GIPSA has

determined that private firms, institutions, and individuals, working

under contract with GIPSA field offices and State cooperators may be

able to perform some inspection services, at certain locations, more

effectively or at less cost than if those services were performed by

Department or State employees. Consequently, GIPSA is proposing to

amend the regulations to allow GIPSA and State cooperators to contract

for service work and to license individual contractors and those

employed by contractors.

DATES: Comments must be received on or before March 16, 1998.

ADDRESSES: Written comments must be submitted to George Wollam, USDA,

GIPSA, ART, Stop 3649, Washington, DC 20250-3649; FAX (202) 720-4628.

All comments received will be made available for public inspection in

Room 0623, USDA South Building, 1400 Independence Avenue, SW.,

Washington, DC, during regular business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: George Wollam, address same as above,

telephone (202) 720-0292.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be nonsignificant for the purpose

of Executive Order 12866, and therefore has not been reviewed by the

Office of Management and Budget.

Executive Order 12988

This rule has been reviewed under Executive Order 12988, Civil

Justice Reform. This rule is not intended to have preemptive effect

with respect to any State or local laws, regulations, or policies

unless they present an irreconcilable conflict with this rule. This

rule is not intended to have retroactive effect. There are no

administrative procedures which must be exhausted prior to any judicial

challenge to the provisions of this rule or application of its

provisions.

Effects on Small Entities

GIPSA has determined that this proposed rule will not have a

significant economic impact on a substantial number of small entities

as defined under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

GIPSA believes that allowing contracts with private firms,

institutions, individuals, and others for inspection work will foster

more cost-effective operations. Many users of the inspection services

do not meet the requirements for small entities as defined in the

Regulatory Flexibility Act. For example, the primary user of pulse

inspection services is the U.S. government. It is estimated that

between 80 and 90 percent of all inspections are performed (directly or

indirectly) at the request of either the USDA's Farm Service Agency or

Foreign Agricultural Service, or the U.S. Agency for International

Development. The proposed change would allow GIPSA and the 13 State

cooperators to use contractors to perform specified inspection

services. Currently, contract samplers are used by both GIPSA and State

cooperators which has resulted in reduced operating expenses and, in

many cases, quicker services to applicants for services. It is expected

that this action would result in similar benefits.

Information Collection and Recordkeeping Requirements

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

chapter 35), the information collection and recordkeeping requirements

in part 868 have been approved previously by OMB and assigned OMB No.

0580-0013.

Background

GIPSA is committed to carrying out its statutory and regulatory

mandates in a cost effective manner that best serves the public

interest. Concurrently, GIPSA is constantly seeking ways to reduce the

cost of providing official services, without reducing the quality of

that service. One measure that has proven effective is the use of

contract samplers at outlying service points or during periods of peak

demand. By judiciously using contract samplers, GIPSA field offices and

State cooperators have been able to reduce their operating expenses

and, in many cases, provide quicker service to their applicants for

services. GIPSA believes that contract inspections may be equally

beneficial in certain situations; e.g., providing quality inspections

on an intermittent basis at geographically isolated service points.

Additionally, GIPSA feels that allowing GIPSA and State cooperators to

contract with private firms, institutions, individuals, and others for

inspection work will foster more cost-effective operations, which in

turn, may lessen the need for future fee increases.

The Act of 1946, as amended, provides authority to the Secretary of

Agriculture to enter into contracts and agreements with States and

agencies of States, private firms, institutions, and individuals for

the purpose of performing specified inspection services. According to

section 868.1(b)(23) of the regulations, such services may include

``applying such tests and making examinations of a commodity and

records by official personnel as may be necessary to determine the

kind, class, grade, other quality designation, the quantity, or

condition of commodity; performing condition of container, carrier

stowage examination; and any other services as related to commodities,

as necessary; and issuing an inspection certificate.'' However, section

868.80(a)(1) of the regulations states that only persons employed by a

cooperator may be licensed to inspect commodities or to perform related

services. Consequently, GIPSA is proposing to amend the regulations to

provide for GIPSA and

State cooperators to contract for quality (grading) inspection services

and to license individual contractors and those employed by a

contractor.

Proposed Action

To provide for more responsive, cost-effective inspection services

under the Act of 1946, GIPSA is proposing to revise:

1. Section 868.1(b)(13) to expand the definition of contractor to

provide for cooperators to use contractors for specified services.

2. Section 868.80(a)(1) to add provisions for licensing individual

contractors and employees of contractors.

List of Subjects in 7 CFR Part 868

Administrative practice and procedure, Agricultural commodities.

For reasons set forth in the preamble, 7 CFR Part 868 is proposed

to be amended as follows:

PART 868--GENERAL REGULATIONS AND STANDARDS FOR CERTAIN

AGRICULTURAL COMMODITIES

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

follows:

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

1621 et seq.).

2. Section 868.1(b)(13) is revised to read as follows:

Sec. 868.1 Meaning of terms.

* * * * *

(b) * * *

(13) Contractor. Any person who enters into a contract with the

Service or with a cooperator to perform specified inspection services.

* * * * *

2. Section 868.80(a)(1) is revised to read as follows:

Sec. 868.80 Who may be licensed.

(a) Inspectors. * * *

(1) Is employed by a cooperator, is a contractor, or is employed by

a contractor.

* * * * *

Dated: January 9, 1998.

James R. Baker,

Administrator, Grain Inspection, Packers and Stockyards Administration.

[FR Doc. 98-920 Filed 1-14-98; 8:45 am]

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