Fees Assessed by the Service, 13411-13413 [05-5501]
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13411
Proposed Rules
Federal Register
Vol. 70, No. 53
Monday, March 21, 2005
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and
Stockyards Administration
7 CFR Part 800
RIN 0580–AA88
Fees Assessed by the Service
Grain Inspection, Packers and
Stockyards Administration, USDA.
AGENCY:
ACTION:
Proposed rule.
SUMMARY: The Federal Grain Inspection
Service (FGIS), of the Grain Inspection,
Packers and Stockyards Administration
(GIPSA), is proposing to increase fees
assessed to delegated States and
designated official agencies, hereafter
known as official agencies, authorized
by GIPSA to provide official inspection
and weighing services to the U.S. grain
industry. The increase in fees is
necessary to collect sufficient revenue to
cover the current and future cost of
supervising the performance of the
official agencies.
Current supervision fees are charged
to official agencies on a unit basis and
represent an average rate of
approximately 0.8 cent per metric ton of
grain inspected or weighed by the
official agencies. The proposed
supervision fee increases the rate to a
1.1 cents per metric ton charge. Official
agencies include the cost of GIPSA’s
supervision fee as part of the fee they
charge their customers for grain
services. The current average cost for
services provided by official agencies is
21 cents per metric ton. Increasing the
supervision fee by approximately 0.3
cent per metric ton should minimally
increase the total cost of inspection and
weighing services to the grain industry.
Written comments must be
submitted on or before May 20, 2005.
DATES:
We invite you to submit
comments on this proposed rule. You
may submit comments by any of the
following methods:
ADDRESSES:
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15:53 Mar 18, 2005
Jkt 205001
• E-Mail: Send comments via
electronic mail to
comments.gipsa@usda.gov.
• Mail: Send hardcopy written
comments to Tess Butler, GIPSA, USDA,
1400 Independence Avenue, SW., Room
1647–S, Washington, DC 20250–3604.
• Fax: Send comments by facsimile
transmission to (202) 690–2755.
• Hand Deliver or Courier: Deliver
comments to: Tess Butler, GIPSA,
USDA, 1400 Independence Avenue, SE.,
Room 1647, Washington, DC 20250–
3604.
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
online instructions for submitting
comments.
Instructions: All comments should
make reference to the date and page
number of this issue of the Federal
Register.
Background Documents: Regulatory
analyses and other documents relating
to this action will be available for public
inspection in the above office during
regular business hours.
Read Comments: All comments 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, telephone (202) 720–0228 at
USDA, GIPSA, Room 2409, 1400
Independence Avenue, SW.,
Washington, DC, 20250–3630; Fax
Number (202) 720–1015; E-mail address
David.M.Orr@usda.gov.
SUPPLEMENTARY INFORMATION:
Background
The United States Grain Standards
Act (USGSA) (7 U.S.C. 71 et seq.)
authorizes GIPSA to supervise grain
inspection and weighing services
provided by official agencies and to
charge and collect reasonable fees to
cover the cost of such supervision.
These fees are charged by official
agencies to their customers (grain
industry) as part of the overall fee
charged for inspection and weighing
services. Supervision fees collected by
GIPSA cover, as nearly as practicable,
the program and administrative costs of
supervising official agencies. The
current supervision fees were published
in the Federal Register on May 13, 2004
(69 FR 26476), and became effective
June 14, 2004. This action adjusted only
the supervision fee charged to delegated
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Frm 00001
Fmt 4702
Sfmt 4702
States for the inspection and weighing
of export grain shipments. All other
supervision fees remained unchanged.
The fee for export grain shipments was
increased from a unit fee of $49.20 per
inspection to 1.6 cents per metric ton.
The fees unchanged by the June 14,
2004, action were last amended in
September 23, 1985, as published in the
Federal Register (50 FR 38503) and
became effective on October 1, 1985. At
that time, supervision fees were lowered
an average 40 percent due to the
accumulation of a $4.5 million reserve
in retained earnings. The fee rates
established on October 1, 1985, were set
at a level so that the program operated
at a net loss in order to reduce the
operating reserves on a planned gradual
basis. During the 19 year span from
1985 to 2004, GIPSA has gradually
reduced the retained earnings in this
program and has reached a point where
an adjustment is needed to cover
current and future program costs. In FY
2004, the official agency supervision
program operating costs totaled
$2,606,826, while revenue amounted to
$1,527,713, a negative margin of
$1,079,113. The retained earnings
balance was $867,191 at the end of FY
2004. GIPSA projects the official agency
supervision program deficit to continue
at a comparable rate, and estimates that
at the end of FY 2006, the program’s
retained earnings will be negative $1.1
million.
GIPSA regularly reviews its user-feefinanced programs under the USGSA (7
U.S.C. 71 et seq.) to determine if the fees
are adequate. GIPSA recognizes the
need to reduce inspection and weighing
supervision costs as much as possible
before increasing fees and therefore has
taken action through the years to
minimize costs. GIPSA plans to reduce
costs by initiating a transition to a
central monitoring program. This action,
scheduled for implementation in FY
2008, should reduce overall operating
expenses an estimated $1.2 million or
43 percent. Implementing the central
monitoring process, coupled with a new
supervision fee, will assist GIPSA in
reaching an adequate 3-month retained
earnings balance.
GIPSA reviewed the official agency
inspection and weighing programs and
proposes to change the manner in which
it collects user fees and increase fees in
order to recover the retained earnings to
their desired 3-month level.
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13412
Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Proposed Rules
The current supervision fee is
assessed on a unit or carrier basis and
does not necessarily reflect the amount
of grain inspected and weighed. GIPSA
believes assessing supervision fees
proportionate to the weight of grain
inspected and/or weighed is a
reasonable approach. This process was
implemented for the supervision of
export grain inspected and weighed by
Delegated States in the changes effective
June 14, 2004 (69 FR 26476). Therefore,
GIPSA proposes charging all
supervision fees based on a per metric
ton basis.
In FY 2004, customers of official
agencies, the grain industry, paid an
estimated $39 million or 21 cents per
metric ton for official inspection and
weighing services on an estimated 187
million metric tons of grain. Of the $39
million paid for services, $1,527,713
(3.92 percent or 0.82 cents per metric
ton) represented GIPSA collected
supervision fees. GIPSA’s actual
program costs for FY 2004 were
$2,606,826 or 1.39 cents per metric ton
which resulted in a net loss of
approximately 0.57 cents per metric ton.
To minimize the impact of a fee
increase, GIPSA has decided to propose
supervision fee rates that will collect
sufficient revenue over time to cover
operating expenses, while striving to
create a 3-month operating reserve by
FY 2014. The cost of living projections
used in calculating future salary,
benefits, and all other non-salary
expenses out to FY 2014 were supplied
by the Office of Management and
Budget (OMB) as set forth in their
Federal Register publication (69 FR
26900) on May 14, 2004. In projecting
revenue to FY 2014, GIPSA used a 5
year average of the total tons inspected
and/or weighed by official agencies.
GIPSA will evaluate the financial status
of the supervision of the grain
inspection and weighing program on a
continuous basis to determine if it is
meeting the goal of obtaining a 3-month
operating reserve by FY 2014, and to
determine if other adjustments are
necessary.
GIPSA proposes to gradually
replenish the reserve rather than sharply
increase supervision fees in the short
term to immediately replenish the
retained earnings. GIPSA welcomes all
comments regarding the proposed
action.
Proposed Action
GIPSA is proposing a change in the
supervision fees and a change in the
methodology for assessing supervision
fees to official agencies. Section 800.71
of the regulations provides that the fees
shown in Schedule C apply to official
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15:53 Mar 18, 2005
Jkt 205001
inspection and weighing services
performed by delegated States and
designated agencies in the United
States, except for those State agencies
that are delegated additional
responsibilities by GIPSA. These States
are assessed annual charges as noted in
the State’s Delegation of Authority
document. GIPSA has a long-standing
agreement with the State of Washington
whereby the State pays GIPSA for direct
local costs along with their portion of
the national administrative costs. The
financial data and information used to
develop the fees for Schedule C do not
include the costs and tonnage associated
with the State of Washington since the
State is charged for their direct local
costs and their share of the national
administrative costs as established by
the agreement.
GIPSA projected that the new fees
should be implemented no later than FY
2007 and has projected costs to FY 2014
to develop the new fees for Schedule C.
GIPSA projections are based on an
average total inspection and weighing
tonnage of 170 million metric tons per
year.
GIPSA has determined that if the new
fees are implemented by FY 2007 and
the goal is to replenish the retained
earnings and 3-month operating reserve
by FY 2014, then GIPSA will need to
collect approximately $1.9 million per
year from FY 2007 through FY 2014 to
achieve this goal. GIPSA has concluded
that a 1.1 cents per metric ton fee would
generate approximately $1.9 million per
year based on an average annual service
volume of 170 million metric tons. This
new fee would generate sufficient funds
to rebuild the retained earnings to its
desired 3-month level by FY 2014.
GIPSA will continue to monitor and
evaluate the program to ensure the goal
is achieved.
GIPSA is also proposing to change the
method to assess supervision fees to the
official agencies. GIPSA has historically
charged supervision fees based on the
type of carrier serviced and further
charged supervision fees based on the
kinds and levels of services received.
GIPSA is proposing to charge the 1.1
cents per metric ton supervision fees
based on the total tonnage of grain
officially inspected and/or weighed by
official agencies. GIPSA proposes to
utilize a standard metric ton conversion
rate for submitted samples and specific
carriers serviced in order to calculate
and assess the supervision fees to the
official agencies. The following table
transmits the standard metric ton
conversion rate that GIPSA will use to
assess the total tons serviced by the
official agencies.
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Fmt 4702
Sfmt 4702
Carrier/service
Truck .........................................
Submitted Sample ....................
Container ..................................
Railcar .......................................
Midwest Barge ..........................
Pacific Northwest Barge ...........
Estimated
metric tons
19.39
19.39
20.04
103.42
1,292.74
2,267.96
GIPSA has determined that ships will
be assessed the 1.1 cents per metric ton
supervision fee based on the actual
certified weight for the ship.
The proposed change in supervision
fees will increase the average current fee
rate by approximately 0.3 cent per
metric ton. This additional increase
should minimally affect the amount an
applicant (grain industry) pays for
service.
Executive Orders 12866 and 12988
This proposed rule has been
determined to be non-significant for the
purposes of Executive Order 12866 and
therefore has not been reviewed by the
OMB. 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.
Paperwork Reduction Act and
Government Paperwork Elimination
Act
In compliance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
and record keeping requirements
included in this proposed rule has been
approved by the OMB under control
number 0580–0013.
GIPSA is committed to compliance
with the Government Paperwork
Elimination Act, which requires
Government agencies, in general, to
provide the public the option of
submitting information or transacting
business electronically to the maximum
extent possible.
Regulatory Flexibility Act Certification
GIPSA has determined that this
proposed rule does not have a
significant economic impact on a
substantial number of small entities, as
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Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 / Proposed Rules
defined in the Regulatory Flexibility Act
(5 U.S.C. 601 et seq.), because the
majority of applicants (grain industry)
that apply for these official services, and
are subjected to GIPSA supervision fees,
do not meet the requirements for small
entities. This rule will affect entities
engaged in shipping grain to and from
points within the United States and
exporting grain from the United States.
GIPSA estimates there are
approximately 9,500 off-farm storage
facilities and 18 export elevators in the
United States that could receive services
from delegated States or designated
agencies. Official services are available
from 7 delegated States and 49
designated agencies. For clarification,
any and all grain that is exported from
the U.S. export port locations must, as
required by the USGSA, be inspected
and/or weighed. These services are
either performed by GIPSA or delegated
States. Further, some grain exported
from interior locations may also require
inspection and/or weighing services
unless the services are waived as
provided in section 800.18 of the
regulations. These services are provided
by designated agencies. The USGSA
does not require inspection or weighing
services for grain marketed within the
U.S. Consequently, these services are
permissive and may be performed by
official agencies. The USGSA (7 U.S.C.
71 et seq.) authorizes GIPSA to provide
supervision of 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.
GIPSA realizes that any increase in
supervision fees will be charged by
official agencies to the users (grain
industry) of the official grain inspection
and weighing system. Although, the
overall effect of this proposal will be
passed on to the users of official grain
inspection and weighing services,
mostly large corporations, David R.
Shipman, Deputy Administrator,
GIPSA, has determined that this
proposed rule will not have a significant
impact on a substantial number of small
entities as defined in the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.).
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:
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15:53 Mar 18, 2005
Jkt 205001
PART 800—GENERAL REGULATIONS
1. The authority citation for part 800
continues to read as follows:
Authority: Public Law 94–582, 90 Stat.
2867, as amended (7 U.S.C. 71 et seq.)
2. In §800.71(a), Schedule C is
amended by removing Table 1 and
adding introductory text in its place as
set forth below, and by redesignating
Table 2 as Table 1.
§ 800.71
Fees assessed by the Service.
(a) * * *
Schedule C—Fees for FGIS Supervision
of Official Inspection and Weighing
Services Performed by Delegated States
and/or Designated Agencies in the
United States.
The supervision fee is charged at
$0.011 per metric ton inspected and/or
weighed.
*
*
*
*
*
David R. Shipman,
Acting Administrator, Grain Inspection,
Packers and Stockyards Administration.
[FR Doc. 05–5501 Filed 3–18–05; 8:45 am]
BILLING CODE 3410–EN–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Chapter III
Petition for Rulemaking to Preempt
Certain State Laws
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice of public hearing.
AGENCY:
SUMMARY: This document announces a
public hearing on a petition for
rulemaking (‘‘Petition’’) that would
preempt certain state laws. Generally,
the Petition asks the FDIC to issue a rule
that preempts the application of certain
state laws to the interstate operations
and activities of state banks. The stated
purpose of the requested rulemaking is
to establish parity between statechartered banks and national banks in
interstate activities and operations. A
copy of the Petition is attached to this
document. The FDIC has scheduled a
hearing to obtain the public’s views on
the issues presented by the Petition.
This document sets forth the date, time,
location, and other details of the
hearing; it also summarizes the Petition
and highlights several issues that
participants in the hearing may wish to
address. Opportunities to make an oral
presentation at the hearing are limited,
and not all requests may be granted.
Attendance at the hearing is not
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Fmt 4702
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13413
required in order to submit a written
statement.
The hearing will be held on
Tuesday, May 24, 2005, from 8:30 a.m.
to 5 p.m. Anyone wishing to make an
oral presentation at the hearing must (i)
deliver a written request to the
Executive Secretary of the FDIC, no later
than 5 p.m. on Monday, May 9, 2005;
and (ii) deliver a copy of his or her
written statement plus a two-page (or
less) summary of the statement to the
Executive Secretary no later than 5 p.m.
on Monday, May 16, 2005. All limitedappearance statements submitted in lieu
of an oral presentation must be received
by the Executive Secretary no later than
5 p.m. on Monday, May 16, 2005.
ADDRESSES: The hearing will be held in
the Board room at the FDIC’s
headquarters, 550 17th Street, NW.,
Washington, DC.
You may submit a written request to
make an oral presentation at the
hearing, a copy of the written statement
you will present, and the two-page (or
less) summary, or a limited-appearance
statement by any of the following
methods:
• Agency Web site: https://
www.FDIC.gov/regulations/laws/
federal/propose.html. Click on Submit
Comment.
• E-mail: comments@FDIC.gov.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Room 3060, Federal Deposit
Insurance Corporation, 550 17th Street,
NW., Washington, DC 20429.
• Hand Delivered/Courier: The guard
station at the rear of the 550 17th Street
Building (located on F Street), on
business days between 7 a.m. and 5 p.m.
• Public Inspection: All statements
and summaries may be inspected and
photocopied in the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., Washington, DC, between 9
a.m. and 4:30 p.m. on business days.
• Internet Posting: Statements and
summaries received will be posted
without change to https://www.FDIC.gov/
regulations/laws/federal/propose.html,
including any personal information
provided.
DATES:
For
questions regarding the conduct of the
hearing: contact Valerie Best, Assistant
Executive Secretary, (202) 898–3812; for
questions regarding substantive issues:
contact Robert C. Fick, Counsel, (202)
898–8962; or Joseph A. DiNuzzo,
Counsel, (202) 898–7349, Legal
Division, Federal Deposit Insurance
Corporation, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
E:\FR\FM\21MRP1.SGM
21MRP1
Agencies
[Federal Register Volume 70, Number 53 (Monday, March 21, 2005)]
[Proposed Rules]
[Pages 13411-13413]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-5501]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 70, No. 53 / Monday, March 21, 2005 /
Proposed Rules
[[Page 13411]]
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
7 CFR Part 800
RIN 0580-AA88
Fees Assessed by the Service
AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Grain Inspection Service (FGIS), of the Grain
Inspection, Packers and Stockyards Administration (GIPSA), is proposing
to increase fees assessed to delegated States and designated official
agencies, hereafter known as official agencies, authorized by GIPSA to
provide official inspection and weighing services to the U.S. grain
industry. The increase in fees is necessary to collect sufficient
revenue to cover the current and future cost of supervising the
performance of the official agencies.
Current supervision fees are charged to official agencies on a unit
basis and represent an average rate of approximately 0.8 cent per
metric ton of grain inspected or weighed by the official agencies. The
proposed supervision fee increases the rate to a 1.1 cents per metric
ton charge. Official agencies include the cost of GIPSA's supervision
fee as part of the fee they charge their customers for grain services.
The current average cost for services provided by official agencies is
21 cents per metric ton. Increasing the supervision fee by
approximately 0.3 cent per metric ton should minimally increase the
total cost of inspection and weighing services to the grain industry.
DATES: Written comments must be submitted on or before May 20, 2005.
ADDRESSES: We invite you to submit comments on this proposed rule. You
may submit comments by any of the following methods:
E-Mail: Send comments via electronic mail to
comments.gipsa@usda.gov.
Mail: Send hardcopy written comments to Tess Butler,
GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647-S, Washington, DC
20250-3604.
Fax: Send comments by facsimile transmission to (202) 690-
2755.
Hand Deliver or Courier: Deliver comments to: Tess Butler,
GIPSA, USDA, 1400 Independence Avenue, SE., Room 1647, Washington, DC
20250-3604.
Federal eRulemaking Portal: Go to https://
www.regulations.gov. Follow the online instructions for submitting
comments.
Instructions: All comments should make reference to the date and
page number of this issue of the Federal Register.
Background Documents: Regulatory analyses and other documents
relating to this action will be available for public inspection in the
above office during regular business hours.
Read Comments: All comments 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, telephone (202) 720-0228 at USDA, GIPSA, Room 2409, 1400
Independence Avenue, SW., Washington, DC, 20250-3630; Fax Number (202)
720-1015; E-mail address David.M.Orr@usda.gov.
SUPPLEMENTARY INFORMATION:
Background
The United States Grain Standards Act (USGSA) (7 U.S.C. 71 et seq.)
authorizes GIPSA to supervise grain inspection and weighing services
provided by official agencies and to charge and collect reasonable fees
to cover the cost of such supervision. These fees are charged by
official agencies to their customers (grain industry) as part of the
overall fee charged for inspection and weighing services. Supervision
fees collected by GIPSA cover, as nearly as practicable, the program
and administrative costs of supervising official agencies. The current
supervision fees were published in the Federal Register on May 13, 2004
(69 FR 26476), and became effective June 14, 2004. This action adjusted
only the supervision fee charged to delegated States for the inspection
and weighing of export grain shipments. All other supervision fees
remained unchanged. The fee for export grain shipments was increased
from a unit fee of $49.20 per inspection to 1.6 cents per metric ton.
The fees unchanged by the June 14, 2004, action were last amended
in September 23, 1985, as published in the Federal Register (50 FR
38503) and became effective on October 1, 1985. At that time,
supervision fees were lowered an average 40 percent due to the
accumulation of a $4.5 million reserve in retained earnings. The fee
rates established on October 1, 1985, were set at a level so that the
program operated at a net loss in order to reduce the operating
reserves on a planned gradual basis. During the 19 year span from 1985
to 2004, GIPSA has gradually reduced the retained earnings in this
program and has reached a point where an adjustment is needed to cover
current and future program costs. In FY 2004, the official agency
supervision program operating costs totaled $2,606,826, while revenue
amounted to $1,527,713, a negative margin of $1,079,113. The retained
earnings balance was $867,191 at the end of FY 2004. GIPSA projects the
official agency supervision program deficit to continue at a comparable
rate, and estimates that at the end of FY 2006, the program's retained
earnings will be negative $1.1 million.
GIPSA regularly reviews its user-fee-financed programs under the
USGSA (7 U.S.C. 71 et seq.) to determine if the fees are adequate.
GIPSA recognizes the need to reduce inspection and weighing supervision
costs as much as possible before increasing fees and therefore has
taken action through the years to minimize costs. GIPSA plans to reduce
costs by initiating a transition to a central monitoring program. This
action, scheduled for implementation in FY 2008, should reduce overall
operating expenses an estimated $1.2 million or 43 percent.
Implementing the central monitoring process, coupled with a new
supervision fee, will assist GIPSA in reaching an adequate 3-month
retained earnings balance.
GIPSA reviewed the official agency inspection and weighing programs
and proposes to change the manner in which it collects user fees and
increase fees in order to recover the retained earnings to their
desired 3-month level.
[[Page 13412]]
The current supervision fee is assessed on a unit or carrier basis
and does not necessarily reflect the amount of grain inspected and
weighed. GIPSA believes assessing supervision fees proportionate to the
weight of grain inspected and/or weighed is a reasonable approach. This
process was implemented for the supervision of export grain inspected
and weighed by Delegated States in the changes effective June 14, 2004
(69 FR 26476). Therefore, GIPSA proposes charging all supervision fees
based on a per metric ton basis.
In FY 2004, customers of official agencies, the grain industry,
paid an estimated $39 million or 21 cents per metric ton for official
inspection and weighing services on an estimated 187 million metric
tons of grain. Of the $39 million paid for services, $1,527,713 (3.92
percent or 0.82 cents per metric ton) represented GIPSA collected
supervision fees. GIPSA's actual program costs for FY 2004 were
$2,606,826 or 1.39 cents per metric ton which resulted in a net loss of
approximately 0.57 cents per metric ton.
To minimize the impact of a fee increase, GIPSA has decided to
propose supervision fee rates that will collect sufficient revenue over
time to cover operating expenses, while striving to create a 3-month
operating reserve by FY 2014. The cost of living projections used in
calculating future salary, benefits, and all other non-salary expenses
out to FY 2014 were supplied by the Office of Management and Budget
(OMB) as set forth in their Federal Register publication (69 FR 26900)
on May 14, 2004. In projecting revenue to FY 2014, GIPSA used a 5 year
average of the total tons inspected and/or weighed by official
agencies. GIPSA will evaluate the financial status of the supervision
of the grain inspection and weighing program on a continuous basis to
determine if it is meeting the goal of obtaining a 3-month operating
reserve by FY 2014, and to determine if other adjustments are
necessary.
GIPSA proposes to gradually replenish the reserve rather than
sharply increase supervision fees in the short term to immediately
replenish the retained earnings. GIPSA welcomes all comments regarding
the proposed action.
Proposed Action
GIPSA is proposing a change in the supervision fees and a change in
the methodology for assessing supervision fees to official agencies.
Section 800.71 of the regulations provides that the fees shown in
Schedule C apply to official inspection and weighing services performed
by delegated States and designated agencies in the United States,
except for those State agencies that are delegated additional
responsibilities by GIPSA. These States are assessed annual charges as
noted in the State's Delegation of Authority document. GIPSA has a
long-standing agreement with the State of Washington whereby the State
pays GIPSA for direct local costs along with their portion of the
national administrative costs. The financial data and information used
to develop the fees for Schedule C do not include the costs and tonnage
associated with the State of Washington since the State is charged for
their direct local costs and their share of the national administrative
costs as established by the agreement.
GIPSA projected that the new fees should be implemented no later
than FY 2007 and has projected costs to FY 2014 to develop the new fees
for Schedule C. GIPSA projections are based on an average total
inspection and weighing tonnage of 170 million metric tons per year.
GIPSA has determined that if the new fees are implemented by FY
2007 and the goal is to replenish the retained earnings and 3-month
operating reserve by FY 2014, then GIPSA will need to collect
approximately $1.9 million per year from FY 2007 through FY 2014 to
achieve this goal. GIPSA has concluded that a 1.1 cents per metric ton
fee would generate approximately $1.9 million per year based on an
average annual service volume of 170 million metric tons. This new fee
would generate sufficient funds to rebuild the retained earnings to its
desired 3-month level by FY 2014. GIPSA will continue to monitor and
evaluate the program to ensure the goal is achieved.
GIPSA is also proposing to change the method to assess supervision
fees to the official agencies. GIPSA has historically charged
supervision fees based on the type of carrier serviced and further
charged supervision fees based on the kinds and levels of services
received. GIPSA is proposing to charge the 1.1 cents per metric ton
supervision fees based on the total tonnage of grain officially
inspected and/or weighed by official agencies. GIPSA proposes to
utilize a standard metric ton conversion rate for submitted samples and
specific carriers serviced in order to calculate and assess the
supervision fees to the official agencies. The following table
transmits the standard metric ton conversion rate that GIPSA will use
to assess the total tons serviced by the official agencies.
------------------------------------------------------------------------
Estimated
Carrier/service metric tons
------------------------------------------------------------------------
Truck...................................................... 19.39
Submitted Sample........................................... 19.39
Container.................................................. 20.04
Railcar.................................................... 103.42
Midwest Barge.............................................. 1,292.74
Pacific Northwest Barge.................................... 2,267.96
------------------------------------------------------------------------
GIPSA has determined that ships will be assessed the 1.1 cents per
metric ton supervision fee based on the actual certified weight for the
ship.
The proposed change in supervision fees will increase the average
current fee rate by approximately 0.3 cent per metric ton. This
additional increase should minimally affect the amount an applicant
(grain industry) pays for service.
Executive Orders 12866 and 12988
This proposed rule has been determined to be non-significant for
the purposes of Executive Order 12866 and therefore has not been
reviewed by the OMB. 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.
Paperwork Reduction Act and Government Paperwork Elimination Act
In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and record keeping requirements
included in this proposed rule has been approved by the OMB under
control number 0580-0013.
GIPSA is committed to compliance with the Government Paperwork
Elimination Act, which requires Government agencies, in general, to
provide the public the option of submitting information or transacting
business electronically to the maximum extent possible.
Regulatory Flexibility Act Certification
GIPSA has determined that this proposed rule does not have a
significant economic impact on a substantial number of small entities,
as
[[Page 13413]]
defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.),
because the majority of applicants (grain industry) that apply for
these official services, and are subjected to GIPSA supervision fees,
do not meet the requirements for small entities. This rule will affect
entities engaged in shipping grain to and from points within the United
States and exporting grain from the United States. GIPSA estimates
there are approximately 9,500 off-farm storage facilities and 18 export
elevators in the United States that could receive services from
delegated States or designated agencies. Official services are
available from 7 delegated States and 49 designated agencies. For
clarification, any and all grain that is exported from the U.S. export
port locations must, as required by the USGSA, be inspected and/or
weighed. These services are either performed by GIPSA or delegated
States. Further, some grain exported from interior locations may also
require inspection and/or weighing services unless the services are
waived as provided in section 800.18 of the regulations. These services
are provided by designated agencies. The USGSA does not require
inspection or weighing services for grain marketed within the U.S.
Consequently, these services are permissive and may be performed by
official agencies. The USGSA (7 U.S.C. 71 et seq.) authorizes GIPSA to
provide supervision of 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.
GIPSA realizes that any increase in supervision fees will be
charged by official agencies to the users (grain industry) of the
official grain inspection and weighing system. Although, the overall
effect of this proposal will be passed on to the users of official
grain inspection and weighing services, mostly large corporations,
David R. Shipman, Deputy Administrator, GIPSA, has determined that this
proposed rule will not have a significant impact on a substantial
number of small entities as defined in the Regulatory Flexibility Act
(5 U.S.C. 601 et seq.).
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: Public Law 94-582, 90 Stat. 2867, as amended (7
U.S.C. 71 et seq.)
2. In Sec. 800.71(a), Schedule C is amended by removing Table 1 and
adding introductory text in its place as set forth below, and by
redesignating Table 2 as Table 1.
Sec. 800.71 Fees assessed by the Service.
(a) * * *
Schedule C--Fees for FGIS Supervision of Official Inspection and
Weighing Services Performed by Delegated States and/or Designated
Agencies in the United States.
The supervision fee is charged at $0.011 per metric ton inspected
and/or weighed.
* * * * *
David R. Shipman,
Acting Administrator, Grain Inspection, Packers and Stockyards
Administration.
[FR Doc. 05-5501 Filed 3-18-05; 8:45 am]
BILLING CODE 3410-EN-P