Fees for Official Inspection and Weighing Services

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 800

RIN 0580-AA69

Fees for Official Inspection and Weighing Services

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 an approximate 2.4 percent increase for all hourly

rates, certain unit rates, and the administrative tonnage fee. These

fees apply to official inspection and weighing services performed in

the United States under the United States Grain Standards Act (USGSA),

as amended. These increases are needed to cover increased operational

costs resulting from the approximate 4.8 percent mandated January 2000

Federal pay increase.

DATES: Written comments must be submitted on or before March 3, 2000.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Written comments must be submitted to Sharon

Vassiliades, GIPSA, USDA, 1400 Independence Avenue, SW, Room 0623-S,

Washington, DC 20250-3649, or faxed to (202) 720-4628. Comments may

also be sent by electronic mail or Internet to:

[email protected]. All comments should make reference to the

date and page number of this issue of the Federal Register and will be

available for public inspection in the above office during regular

business hours (7 CFR 1.27 (b)).

FOR FURTHER INFORMATION CONTACT: David Orr, Director, Field Management

Division, at his Email address: D[email protected] or telephone him

at (202) 720-0228.

SUPPLEMENTARY INFORMATION:

Executive Order 12866, Regulatory Flexibility Act, and the

Paperwork Reduction Act

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.

Also, pursuant to the requirements set forth in the Regulatory

Flexibility Act, James R. Baker, Administrator, GIPSA, has determined

that this proposed rule will not have a significant economic impact on

a substantial number of small entities as defined in the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.).

GIPSA regularly reviews its user-fee financed programs to determine

if the fees are adequate. GIPSA has and will continue to seek out cost

saving opportunities and implement appropriate changes to reduce costs.

Such actions can provide alternatives to fee increases. However, even

with these efforts, GIPSA's existing fee schedule will not generate

sufficient revenues to cover program costs while maintaining an

adequate reserve balance. In fiscal year 1998, GIPSA's operating costs

were $23,021,166 with revenue of $21,776,323, resulting in a loss of

$1,244,843 and a reserve balance of $55,862. In fiscal year 1999,

GIPSA's operating costs were $22,883,063 with revenue of $22,971,204

that resulted in a positive margin of $88,141. Even with the positive

margin for FY 1999, the reserve balance is still well below the desired

3-month operating reserve.

Employee salaries and benefits are major program costs that account

for approximately 84 percent of GIPSA's total operating budget. A

general and locality salary increase that averages 4.8 percent for

GIPSA employees, effective January 2000, will increase program costs.

This salary adjustment will increase GIPSA's costs by approximately

$691,613.

We have reviewed the financial position of our inspection and

weighing program based on the increased salary and benefit costs along

with the projected fiscal year 2000 workload. Based on that review, we

have concluded that nearly half of the projected $691,613 salary

increase can be absorbed through existing program efficiencies.

Therefore, the other half needs to be covered through an increase in

fees that will collect an estimated $390,000 in additional revenues.

The proposed fee increase primarily applies to entities engaged in

the export of grain. Under the provisions of the USGSA, grain exported

from the United States must be officially inspected and weighed.

Mandatory inspection and weighing services are provided by GIPSA on a

fee basis at 37 export facilities. All of these facilities are owned

and managed by multi-national corporations, large cooperatives, or

public entities that do not meet the criteria for small entities

established by the Small Business Administration.

Some entities who request non-mandatory official inspection and

weighing services at other than export locations could be considered

small entities. The impact on these small businesses is similar to any

other business; that is, an average 2.4 percent increase in the cost of

official inspection and weighing services. This nominal increase should

not significantly affect any business requesting official inspection

and weighing services. Furthermore, any business that wishes to avoid

the fee increase may elect to do so by using an alternative source for

inspection and weighing services. Such a decision should not prevent

the business from marketing its products.

There would be no additional reporting or recordkeeping

requirements imposed by this action. In compliance with the Paperwork

Reduction Act of 1995 (44 U.S.C. Chapter 35), the information

collection and recordkeeping requirements in Part 800 have been

previously approved by the Office of Management and Budget under

control number 0580-0013. GIPSA has not identified any other Federal

rules which may duplicate, overlap, or conflict with this proposed

rule.

Executive Order 12988

This proposed rule has been reviewed under Executive Order 12988,

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

effect. The USGSA provides in Sec. 87g that no subdivision may require

or impose any requirements or restrictions concerning the inspection,

weighing, or description of grain under the Act. Otherwise, this

proposed rule will not preempt any State or local laws, regulations, or

policies unless they present irreconcilable conflict with this proposed

rule. There are no administrative procedures that must be

exhausted prior to any judicial challenge to the provisions of this

proposed rule.

Proposed Action

The USGSA (7 U.S.C. 71 et seq.) authorizes GIPSA to provide

official grain inspection and weighing services and to charge and

collect reasonable fees for performing these services. The fees

collected are to cover, as nearly as practicable, GIPSA's costs for

performing these services, including related administrative and

supervisory costs. The current USGSA fees were published in the Federal

Register on December 23, 1998 (63 FR 70990), and became effective on

February 1, 1999. A correction to the minimum fees for stowage

examinations was published in the Federal Register and became effective

on February 11, 1999 (64 FR 6783).

GIPSA regularly reviews its user-fee-financed programs to determine

if the fees are adequate. While GIPSA continues to search for

opportunities to reduce its costs, the existing fee schedule will not

generate sufficient revenues to cover program costs while maintaining

an adequate reserve balance. In fiscal year 1998, GIPSA's operating

costs were $23,021,166 with revenue of $21,776,323, resulting in a loss

of $1,244,843 and a reserve balance of $55,862. In fiscal year 1999,

GIPSA's operating costs were $22,883,063 with revenue of $22,971,204,

resulting in a positive margin of $88,141. Even with the positive

margin for fiscal year 1999, the reserve balance was a negative

$65,686, below the desired 3-month operating reserve of approximately

$5.7 million.

Employee salaries and benefits are major program costs that account

for approximately 84 percent of GIPSA's total operating budget. A

general and locality salary increase that averages 4.8 percent for

GIPSA employees, effective January 2000, will increase program costs an

estimated $691,613. Based on a review of projected fiscal year 2000

workload and operating costs, the Agency has determined that

approximately half of the projected $691,613 salary increase can be

absorbed through existing program efficiencies. The other half needs to

be covered through an increase in fees that will collect an estimated

$390,000 in additional revenues.

The hourly fees covered by this rule will generate revenue to cover

the basic salary, benefits, and leave for those employees providing

direct service delivery. Other associated costs, including non-salary

related overhead, are collected through other fees contained in the fee

schedule and are at levels that would not require any change. These

fees would not be changed under this proposal.

The current hourly fees are:

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Monday to Friday Monday to Friday Saturday, Sunday,

(6 a.m. to 6 p.m.) (6 p.m. to 6 a.m.) and overtime Holidays

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1-year contract............. $25.20 $27.20 $35.40 $42.60

6-month contract............ 27.60 29.40 37.60 49.40

3-month contract............ 31.60 32.60 41.00 51.00

Noncontract................. 36.60 38.60 46.80 57.60

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GIPSA has also identified certain unit fees, for services not

performed at an applicant's facility, that contain direct labor costs

and would require a fee increase. Further, GIPSA has identified those

costs associated with salaries and benefits that are covered by the

administrative metric tonnage fee. The 2.4 percent cost-of-living

increase to salaries and benefits covered by the administrative tonnage

fee results in an average overall increase of an average of 2.4 percent

to the administrative tonnage fee. Accordingly, GIPSA is proposing a

2.4 percent increase to certain hourly rates, certain unit rates, and

the administrative tonnage fee in 7 CFR 800.71, Table 1--Fees for

Official Services Performed at an Applicant's Facility in an Onsite

GIPSA Laboratory; Table 2--Services Performed at Other Than an

Applicant's Facility in a GIPSA Laboratory; and Table 3, Miscellaneous

Services.

List of Subjects in 7 CFR Part 800

Administrative practice and procedure, Grain.

For the reasons set out in the preamble, 7 CFR part 800 is proposed

to be amended as follows:

PART 800--GENERAL REGULATIONS

1. The authority citation for part 800 continues to read as

follows:

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

71 et seq.).

2. Section 800.71 is amended by revising Schedule A in paragraph

(a) to read as follows:

Sec. 800.71 Fees assessed by the Service.

(a) * * *

Schedule A.--Fees for Official Inspection and Weighing Services

Performed in the United States

Table 1.--Fees For Official Services Performed at an Applicant's Facility in an Onsite FGIS Laboratory \1\

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Monday to Friday (6 Monday to Friday (6 Saturday, Sunday,

a.m. to 6 p.m.) p.m. to 6 a.m.) and Overtime \2\ Holidays

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(1) Inspection and Weighing Services Hourly Rates (per service representative)

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1-year contract............. $25.80 $28.00 $36.40 $43.60

6-month contract............ 28.40 30.20 38.60 50.60

3-month contract............ 32.40 33.40 42.00 52.20

Noncontract................. 37.60 39.60 48.00 59.00

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(2) Additional Tests (cost per test, assessed in addition to the

hourly rate) \3\

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(i) Aflatoxin (other than Thin Layer Chromatography).... $8.50

(ii) Aflatoxin (Thin Layer Chromatography method)....... 20.00

(iii) Corn oil, protein, and starch (one or any 1.50

combination)...........................................

(iv) Soybean protein and oil (one or both).............. 1.50

(v) Wheat protein (per test)............................ 1.50

(vi) Sunflower oil (per test)........................... 1.50

(vii) Vomitoxin (qualitative)........................... 7.50

(viii) Vomitoxin (quantitative)......................... 12.50

(ix) Waxy corn (per test)............................... 1.50

(x) Fees for other tests not listed above will be based

on the lowest noncontract hourly rate.

(xi) Other services

(a) Class Y Weighing (per carrier):

(1) Truck/container............................. .30

(2) Railcar..................................... 1.25

(3) Barge....................................... 2.50

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(3) Administrative Fee (assessed in addition to all other applicable

fees, only one administrative fee will be assessed when inspection and

weighing services are performed on the same carrier).

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(i) All outbound carriers (per-metric-ton) \4\:

(a) 1-1,000,000..................................... $ 0.1038

(b) 1,000,001-1,500,000............................. 0.0947

(c) 1,500,001-2,000,000............................. 0.0512

(d) 2,000,001-5,000,000............................. 0.0379

(e) 5,000,001-7,000,000............................. 0.0205

(f) 7,000,001+...................................... 0.0092

\1\ Fees apply to original inspection and weighing, reinspection, and

appeal inspection service and include, but are not limited to,

sampling, grading, weighing, prior to loading stowage examinations,

and certifying results performed within 25 miles of an employee's

assigned duty station. Travel and related expenses will be charged for

service outside 25 miles as found in Sec. 800.72 (a).

\2\ Overtime rates will be assessed for all hours in excess of 8

consecutive hours that result from an applicant scheduling or

requesting service beyond 8 hours, or if requests for additional

shifts exceed existing staffing.

\3\ Appeal and reinspection services will be assessed the same fee as

the original inspection service.

\4\ The administrative fee is assessed on an accumulated basis beginning

at the start of the Service's fiscal year (October 1 each year).

Table 2.--Services Performed at Other than an Applicant's Facility in an

FGIS Laboratory 1,2

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(1) Original Inspection and Weighing (Class X) Services:

(i) Sampling only (use hourly rates from Table 1):

(ii) Stationary lots (sampling, grade/factor, &

checkloading):

(a) Truck/trailer/container (per carrier)........... $18.50

(b) Railcar (per carrier)........................... 28.30

(c) Barge (per carrier)............................. 178.50

(d) Sacked grain (per hour per service 0.02

representative plus an administrative fee per

hundredweight) (CWT)...............................

(iii) Lots sampled online during loading (sampling

charge under (i) above, plus):

(a) Truck/trailer container (per carrier)........... 9.85

(b) Railcar (per carrier)........................... 19.10

(c) Barge (per carrier)............................. 108.10

(d) Sacked grain (per hour per service 0.02

representative plus an administrative fee per

hundredweight) (CWT)...............................

(iv) Other services:

(a) Submitted sample (per sample--grade and factor). 10.90

(b) Warehouseman inspection (per sample)............ 18.00

(c) Factor only (per factor--maximum 2 factors)..... 4.70

(d) Checkloading/condition examination (use hourly 0.02

rates from Table 1, plus an administrative fee per

hundredweight if not previously assessed) (CWT)....

(e) Reinspection (grade and factor only. Sampling 11.90

service additional, item (i) above)................

(f) Class X Weighing (per hour per service 49.20

representative)....................................

(v) Additional tests (excludes sampling):

(a) Aflatoxin (per test--other than TLC method)..... 26.30

(b) Aflatoxin (per test--TLC method)................ 104.00

(c) Corn oil, protein, and starch (one or any 8.30

combination).......................................

(d) Soybean protein and oil (one or both)........... 8.30

(e) Wheat protein (per test)........................ 8.30

(f) Sunflower oil (per test)........................ 8.30

(g) Vomitoxin (qualitative)......................... 26.70

(h) Vomitoxin (quantitative)........................ 31.80

(i) Waxy corn (per test)............................ 9.60

(j) Canola (per test--00 dip test).................. 9.60

(k) Pesticide Residue Testing \3\:

(1) Routine Compounds (per sample).............. 204.80

(2) Special Compounds (per service 102.40

representative)................................

(l) Fees for other tests not listed above will be

based on the lowest noncontract hourly rate from

Table 1.

(2) Appeal inspection and review of weighing service \4\:

(i) Board Appeals and Appeals (grade and factor)........ 78.50

(a) Factor only (per factor--max 2 factors)......... 40.60

(b) Sampling service for Appeals additional (hourly

rates from Table 1)

(ii) Additional tests (assessed in addition to all other

applicable fees):

(a) Aflatoxin (per test, other than TLC)............ 26.30

(b) Aflatoxin (TLC)................................. 104.00

(c) Corn oil, protein, and starch (one or any 16.20

combination).......................................

(d) Soybean protein and oil (one or both)........... 16.20

(e) Wheat protein (per test)........................ 16.20

(f) Sunflower oil (per test)........................ 16.20

(g) Vomitoxin (per test--qualitative)............... 37.00

(h) Vomitoxin (per test--quantitative).............. 42.10

(i) Vomitoxin (per test--HPLC Board Appeal)......... 131.10

(j) Pesticide Residue Testing \3\:

(1) Routine Compounds (per sample).............. 204.80

(2) Special Compounds (per service 102.40

representative)................................

(k) Fees for other tests not listed above will be

based on the lowest noncontract hourly rate from

Table 1

(iii) Review of weighing (per hour per service 71.40

representative)........................................

(3) Stowage examination (service-on-request) \3\:

(i) Ship (per stowage space) (minimum $252.50 per ship). 50.50

(ii) Subsequent ship examinations (same as original)

(minimum $151.50 per ship)

(iii) Barge (per examination)........................... 40.50

(iv) All other carriers (per examination)............... 15.50

\1\ Fees apply to original inspection and weighing, reinspection, and

appeal inspection service and include, but are not limited to,

sampling, grading, weighing, prior to loading stowage examinations,

and certifying results performed within 25 miles of an employee's

assigned duty station. Travel and related expenses will be charged for

service outside 25 miles as found in Sec. 800.72 (a).

\2\ An additional charge will be assessed when the revenue from the

services in Schedule A, Table 2, does not cover what would have been

collected at the applicable hourly rate as provided in Sec. 800.72

(b).

\3\ If performed outside of normal business, 1\1/2\ times the applicable

unit fee will be charged.

\4\ If, at the request of the Service, a file sample is located and

forwarded by the Agency for an official agency, the Agency may, upon

request, be reimbursed at the rate of $2.50 per sample by the Service.

Table 3.--Miscellaneous Services \1\

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(1) Grain grading seminars (per hour per service $49.20

representative) \2\........................................

(2) Certification of diverter-type mechanical samplers (per 49.20

hour per service representative) \2\.......................

(3) Special weighing services (per hour per service

representative) \2\:

(i) Scale testing and certification..................... 49.20

(ii) Evaluation of weighing and material handling 49.20

systems................................................

(iii) NTEP Prototype evaluation (other than Railroad 49.20

Track Scales)..........................................

(iv) NTEP Prototype evaluation of Railroad Track Scales 110.00

(plus usage fee per day for test car)..................

(v) Mass standards calibration and reverification....... 49.20

(vi) Special projects................................... 49.20

(4) Foreign travel (per day per service representative)..... 445.40

(5) Online customized data EGIS service:

(i) One data file per week for 1 year................... 500.00

(ii) One data file per month for 1 year................. 300.00

(6) Samples provided to interested parties (per sample)..... 2.50

(7) Divided-lot certificates (per certificate).............. 1.50

(8) Extra copies of certificates (per certificate).......... 1.50

(9) Faxing (per page)....................................... 1.50

(10) Special mailing (actual cost)

(11) Preparing certificates onsite or during other than

normal business hours (use hourly rates from Table 1)

\1\ Any requested service that is not listed will be performed at $49.20

per hour.

\2\ Regular business hours--Monday thru Friday--service provided at

other than regular hours charged at the applicable overtime hourly

rate.

David R. Shipman,

Acting Administrator, Grain Inspection, Packers and Stockyards

Administration.

[FR Doc. 99-33930 Filed 12-30-99; 8:45 am]

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