Fees for Rice Inspection

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868

RIN 0580-AA70

Fees for Rice Inspection

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 4.8 percent fee increase for all

hourly rates and certain unit rates. The fees apply to Federal Rice

Inspection performed under the Agricultural Marketing Act (AMA) of

1946. These increases are needed to cover increased operational costs

resulting from the 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,

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,

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 $3,820,820 with revenue of $4,011,446, resulting in a positive

margin of $190,626 and a negative reserve balance of $895,584. As of

September 30, 1999, GIPSA's operating costs were $4,105,564 with

revenue of $4,412,131 that resulted in a positive margin of $306,567

and a negative reserve balance of $508,628.

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

$135,000, based on the projected fiscal year 2000 work volume of 3.9

million metric tons

e 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

$135,000, based on the projected fiscal year 2000 work volume of 3.9

million metric tons.

We have reviewed the financial position of our rice inspection

program based on the increased salary and benefit cost along with the

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

concluded that we cannot absorb the increased costs due to salary

increase with the current negative reserve balance. The proposed fee

increase will collect an estimated $138,000 in additional revenues.

The proposed fee increase primarily applies to GIPSA customers that

produce, process, and market rice for the domestic and international

markets. There are approximately 550 such customers located primarily

in the States of Arkansas, Louisiana, and Texas. Many of these

customers meet the criteria for small entities established by the Small

Business Administration criteria for small businesses. Even though the

fees would be raised, the increase would not be excessive (4.8 percent)

and should not significantly affect these entities. Those entities are

under no obligation to use our service and, therefore, any decision on

their part to discontinue the use of our service should not prevent

them from marketing their products.

There would be no additional reporting or record keeping

requirements imposed by this action. In compliance with the Paperwork

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

collection and record keeping 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

ion. In compliance with the Paperwork

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

collection and record keeping 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 section 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

Under the provisions of the Agricultural Marketing Act of 1946 (7

U.S.C. 1621, et seq.), rice inspection services are provided upon

request and GIPSA must collect a fee from the customer to cover the

cost of providing such services. 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, cover the costs of the

services rendered. These fees cover the GIPSA administrative and

supervisory costs for the performance of official services, including

personnel compensation, personnel benefits, travel, rent,

communications, utilities, contractual services, supplies, and

equipment.

The rice inspection fees were last amended on February 12, 1999,

and became effective March 1, 1999 (64 FR 7057). These fees were to

cover, as nearly as practicable, the level of operating costs as

projected for fiscal year 1999. They presently appear at 7 CFR 868.91

in Tables 1 and 2

personnel benefits, travel, rent,

communications, utilities, contractual services, supplies, and

equipment.

The rice inspection fees were last amended on February 12, 1999,

and became effective March 1, 1999 (64 FR 7057). These fees were to

cover, as nearly as practicable, the level of operating costs as

projected for fiscal year 1999. They presently appear at 7 CFR 868.91

in Tables 1 and 2.

GIPSA continually monitors its cost, revenue, and operating reserve

levels to ensure that there are sufficient resources for operations.

During fiscal year 1998, GIPSA implemented cost-saving measures in an

effort to provide more cost effective services. The purpose of these

measures was to reduce operating costs in order to reduce the negative

retained earnings in this program. The cost containment measures

included employee buyouts and better cross utilization of personnel

between programs.

In fiscal year 1998, the program generated revenue of $4,011,446

with operating costs of $3,820,820, resulting in a positive margin of

$190,626. Even though we generated a positive margin for the year, we

continued to operate with a negative reserve balance of $895,584. The

rice program's fiscal year 1999 revenue was $4,412,131 with operating

costs of $4,105,564. In fiscal year 1999, we operated with a positive

margin of $306,567 and reduced our reserve balance to a negative

$508,628. The rice inspection program has been slowly recovering from a

long-standing deficit. Through a series of small fee increases and cost

cutting measures, GIPSA has reduced the level of the negative reserve

balance from $939,147 in fiscal year 1994 to its current level of

negative $508,628.

However, 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

d

certain unit rates in 7 CFR Part 868.91, Table 1--Hourly Rates/Unit

Rate Per CWT and Table 2--Unit Rates. Currently, the regular workday

contract and noncontract fees are $40.80 and $50.00, respectively,

while the nonregular workday contract and noncontract fees are $56.80

and $69.00, respectively. The unit rate per hundredweight for export

port services is currently $.05 per hundredweight. The other current

unit rates are:

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Brown rice for

Service Rough rice processing Milled rice

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Inspection for quality (per lot, sublot, or sample inspection).. $32.90 $28.40 $20.20

Factor analysis for any single factor (per factor):

(a) Milling yield (per sample).............................. 25.50 25.50 ..............

(b) All other factors (per factor).......................... 12.10 12.10 12.10

Total oil and free fatty acid................................... .............. 40.00 40.00

Interpretive line samples:

(a) Milling degree (per set)................................ .............. .............. 85.10

(b) Parboiled light (per sample)............................ .............. .............. 21.30

Extra copies of certificates (per copy)......................... 3.00 3.00 3.00

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List of Subjects in 7 CFR Part 868

Administrative practice and procedure, Agricultural commodities.

For reasons set out 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 868.91 is revised to read as follows:

icultural commodities.

For reasons set out 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 868.91 is revised to read as follows:

Sec. 868.91 Fees for certain Federal Rice Inspection Services.

The fees shown in Tables 1 and 2 apply to Federal Rice Inspection

Services.

Table 1.--Hourly Rates/Unit Rate Per Cwt

[Fees for Federal Rice Inspection Services]

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Regular workday Nonregular workday

Service \1\ (Monday-Saturday) (Sunday-Holiday)

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Contract (per hour per Service representative) $42.80 $59.60

Noncontract (per hour per Service representative)................. 52.40 72.40

Export Port Services \2\ (per hundredweight)...................... .052 .052

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\1\ Original and appeal inspection services included: Sampling, grading, weighing, and other services requested

by the applicant when performed at the applicant's facility.

\2\ Services performed at export port locations on lots at rest.

Table 2.--Unit Rates

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Brown rice for

Service\1\ \3\ Rough rice processing Milled rice

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Inspection for quality (per lot, sublot, or sample inspection).. $34.50 $29.80 $21.20

Factor analysis for any single factor (per factor):

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Brown rice for

Service\1\ \3\ Rough rice processing Milled rice

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Inspection for quality (per lot, sublot, or sample inspection).. $34.50 $29.80 $21.20

Factor analysis for any single factor (per factor):

(a) Milling yield (per sample)................................ 26.75 26.75 ..............

(b) All other factors (per factor)............................ 12.70 12.70 12.70

Total oil and free fatty acid................................... .............. 42.00 42.00

Interpretive line samples.\2\

(a) Milling degree (per set).................................. .............. .............. 89.20

(b) Parboiled light (per sample).............................. .............. .............. 22.35

Extra copies of certificates (per copy)......................... 3.00 3.00 3.00

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\1\ Fees apply to determinations (original or appeals) for kind, class, grade, factor analysis, equal to type,

milling yield, or any other quality designation as defined in the U.S. Standards for Rice or applicable

instructions, whether performed singly or combined at other than at the applicant's facility.

\2\ Interpretive line samples may be purchased from the U.S. Department of Agriculture, GIPSA, FGIS, Technical

Services Division, 10383 North Executive Hills Boulevard, Kansas City, Missouri 68030. Interpretive line

samples also are available for examination at selected FGIS field offices. A list of field offices may be

obtained from the Director, Field Management Division, USDA, GIPSA, FGIS, 1400 Independence Avenue, SW, STOP

3630, Washington, DC 20250-3630. The interpretive line samples illustrate the lower limit for milling degrees

only and the color limit for the factor ``Parboiled Light'' rice

e line

samples also are available for examination at selected FGIS field offices. A list of field offices may be

obtained from the Director, Field Management Division, USDA, GIPSA, FGIS, 1400 Independence Avenue, SW, STOP

3630, Washington, DC 20250-3630. The interpretive line samples illustrate the lower limit for milling degrees

only and the color limit for the factor ``Parboiled Light'' rice.

\3\ Fees for other services not referenced in Table 2 will be based on the noncontract hourly rate listed in

Sec. 868.90, Table 1.

Dated: December 20, 1999.

David R. Shipman,

Acting Administrator, Grain Inspector, Packers and Stockyards

Administration.

[FR Doc. 99-33931 Filed 12-30-99; 8:45 am]

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