Fees for Rice Inspection Services, 1913-1917 [07-153]
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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
list of quarantined areas based on
projections of the natural spread of PSB
that make it reasonable to believe that
the pest is present in those States.
Comments on the interim rule were
required to be received on or before
December 4, 2006. We did not receive
any comments. Therefore, for the
reasons given in the interim rule, we are
adopting the interim rule as a final rule.
This action also affirms the
information contained in the interim
rule concerning Executive Order 12866
and the Regulatory Flexibility Act,
Executive Orders 12372 and 12988, and
the Paperwork Reduction Act.
Further, for this action, the Office of
Management and Budget has waived its
review under Executive Order 12866.
these services under the Agricultural
Marketing Act of 1946 (AMA).
EFFECTIVE DATE: February 16, 2007.
FOR FURTHER INFORMATION CONTACT: For
information concerning program
operations, contact John Giler, Deputy
Director, Field Management Division, at
his E-mail address:
john.c.giler@usda.gov or by telephone
(202) 720–0228. For information
concerning fee development contact,
contact Ms. Patricia Donohue-Galvin,
Director, Budget and Planning Staff, at
her E-mail address: patricia.donohuegalvin@usda.gov or by telephone (202)
690–0231.
SUPPLEMENTARY INFORMATION:
List of Subjects in 7 CFR Part 301
The AMA authorizes official
inspection and weighing services, on a
user-fee basis, of rice (7 U.S.C. 1622(h)).
The AMA provides that reasonable fees
be collected from the users of the
services to cover, as nearly as
practicable, the costs of the services
rendered.
The regulations in 7 CFR 868 list user
fees for inspection and weighing
services provided by the Grain
Inspection, Packers and Stockyards
Administration (GIPSA or Agency). This
final rule amends the schedule for fees
and charges for inspection and weighing
services that GIPSA provides to the rice
industry to reflect the costs necessary to
operate the program.
GIPSA receives no directly
appropriated funds to provide
inspection and weighing services. Our
ability to provide these services
depends on user fees.
For our user fees to cover our costs so
that we can continue to provide services
and to inform our customers of user fees
in time for advance planning, we
proposed to set user fees for our
inspection and weighing services for
fiscal years 2007 through 2010.
GIPSA regularly reviews its user fee
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 the
Agency 3-month operating reserve.
The cost of operating the rice program
was $4.4 million during fiscal year 2006
and will increase to approximately $4.8
million by fiscal year 2010. These cost
increases are due to estimated annual
cost of living adjustments for employee
salaries and benefits, equipment
replacement, and information
technology upgrades. Replacing aging
rice inspection equipment will cost
approximately $50,000. An information
Agricultural commodities, Plant
diseases and pests, Quarantine,
Reporting and recordkeeping
requirements, Transportation.
PART 301—DOMESTIC QUARANTINE
NOTICES
Accordingly, we are adopting as a
final rule, without change, the interim
rule that amended 7 CFR part 301 and
that was published at 71 FR 58243–
58246 on October 3, 2006.
I
Done in Washington, DC, this 10th day of
January 2007.
W. Ron DeHaven,
Administrator, Animal and Plant Health
Inspection Service.
[FR Doc. E7–505 Filed 1–16–07; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and
Stockyards Administration
7 CFR Part 868
RIN 0580–AA92
Fees for Rice Inspection Services
Grain Inspection Packers and
Stockyards Administration, USDA.
ACTION: Final rule.
mstockstill on PROD1PC61 with RULES
AGENCY:
SUMMARY: This final rule revises the
regulations governing the sampling,
inspection, weighing, and certification
for rice by increasing certain fees
charged for the services by
approximately 18 percent. Further, the
rice fees increase an additional 3
percent each year through fiscal year
2010 and establish a stowage
examination fee. These revisions are
necessary in order to recover, as nearly
as practicable, the costs of performing
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1913
technology upgrade to improve
certification efficiency and program
management will cost approximately
$300,000. The estimated costs
incorporate plans to introduce program
changes that will better control
increases in long-term costs.
We designed the revised fee structure
to fund the rice program this fiscal year
and future fiscal years to avoid a
continued program deficit. The
combination of the initial 18 percent
increase and the subsequent annual 3
percent increases will ultimately cover
the program’s operating cost and
replenish the 3-month retained earnings
balance.
We are also establishing a new fee for
stowage examination services that we
will provide as a service upon request.
In the April 11, 2006 Federal Register
(71 FR 18231–18236), we invited
comments on our proposed rule
identifying changes to the user fees we
charge for rice inspection and weighing
services. We solicited comments
concerning our proposal for 60 days
ending June 12, 2006. By the close of the
comment period, we received two
comments; one from representatives of a
rice mill and one from a rice industry
organization. Both commenters opposed
the fee increases. The issues raised in
these comments are discussed below.
The comments, one from a rice
industry trade organization and one
from a rice mill, both opposed the fee
increases. The trade organization stated
that the fee increase was excessive and
would lead to a reduction in service
requested from the industry, resulting in
a continuing cycle of fee increases. It
also said that the fee increase was
preemptive and premature considering
the continuing nature of discussion on
privatization.
The trade organization indicated that
GIPSA should eliminate costs, redesign
its delivery system in certain locations,
and it offered to work with GIPSA to
evaluate options.
The rice mill stated that the fees
charged by GIPSA were much higher
than private industry and that the
increase would force the industry to
look for alternatives. The mill also
questioned a statement in the proposed
rule concerning the voluntary nature of
the inspection service, because GIPSA is
the only agency issuing USDA Rice
Inspection Certificates.
We disagree with these comments.
The rice inspection program is
authorized under the AMA of 1946 and
funded by user fees. The rice fees were
last revised in 2003. Since that time,
costs have increased and retained
earnings have been depleted. Without
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1914
Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
the fee increase, the program will
continue at a deficit.
We have adopted cost savings
measures; however some aspects of the
program required upgrades, as
previously discussed. In fact, we have
already adopted program changes that
involved a realignment of staff to better
control rising personnel costs in the
future. Further, program costs and
revenues have been projected out
through 2010 with fee adjustments on a
fiscal year basis. This will minimize the
impact of the needed fee increase and
will provide the industry a template to
take into account future rice program
fees and stabilize program finances.
While the agency has implemented
appropriate cost savings measures, we
have also completed our feasibility
study that considered restructuring the
program as part of a government-wide
initiative designed to improve efficiency
and cost effectiveness (see OMB
Circular A–76). Specifically, our
feasibility study determined that the A–
76 action, which could include the use
of private vendors to deliver inspection
services, would not result in any savings
to the rice inspection program or any
long term savings to the rice industry.
Therefore, a revision to the user fees is
necessary now in order to run the
inspection program without a deficit.
Contrary to one of the commenter’s
statements, rice inspection is a
voluntary service. Applicants in fact
may choose to receive non-federal
inspection services. While it is true that
GIPSA is the only entity that issues
USDA Rice Inspection Certificates, such
certificates are not mandatory.
Finally, we will continue to work
with the rice industry, as appropriate,
concerning this program.
Miscellaneous Changes
We made the following minor
miscellaneous changes in the regulation
to add clarity. In Table 2 of 7 CFR
868.91, the fees listed as (a) and (b)
under Stowage Examination are the
same, so we added the actual fee in row
(b) instead of implying it and only
listing it in row (a). In footnote 2 of
Table 2, we added a reference to the
GIPSA Web site as an alternative source
for field office information. We moved
the text of footnote 3 in Table 2 to the
introductory text of section 868.91
because it refers the reader back to the
fees in Table 1. As a result, we
renumbered footnote 4 in Table 2 as
footnote 3.
Therefore, for the reasons given in
this proposed rule and in this
document, we are adopting the
proposed rule as a final rule, with the
changes noted in this document.
Executive Order 12866 and Regulatory
Flexibility Act
This rule has been determined to be
not significant for the purposes of
Executive Order 12866 and, therefore,
the Office of Management and Budget
(OMB) has not reviewed it.
As required by the Regulatory
Flexibility Act (RFA); we have
considered the economic impact of this
action on small entities. The purpose of
the RFA is to fit regulatory actions to the
scale of businesses subject to such
actions in order that small businesses
will not be unduly or disproportionately
burdened.
We are making these regulatory
changes because additional user fee
revenues are needed to cover the costs
of providing current and future program
operations and services.
There are approximately 135
applicants who receive rice inspection
and weighing services. A small portion
of these users are small entities under
the criteria established by the Small
Business Administration (13 CFR
121.201).
GIPSA has determined that this final
rule will not have a significant
economic impact on a substantial
number of small entities as defined
under the RFA because the majority of
applicants that apply for services do not
meet the requirements of small entities.
Rice inspection and weighing services
are provided upon request and the fees
charged to users of these services vary
with usage. However, the impact on all
businesses, including small entities, is
very similar. Further, the rice industry
businesses are under no obligation to
use these services, and, therefore, any
decision on their part to discontinue the
use of the services should not prevent
them from marketing their products.
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 its costs.
GIPSA’s cost of operating the rice
program was $4.4 million during fiscal
year 2006 and will gradually escalate to
approximately $4.8 million by fiscal
year 2010. These cost increases through
fiscal year 2010 are due to employee
salaries and benefits coupled with
estimated annual cost of living
adjustments, the future costs of
approximately $50,000 to replace aging
rice inspection equipment in the offices,
and the need to fund approximately
$300,000 for an information technology
upgrade to improve certification
efficiency and program management.
The fees cover the GIPSA
administrative and supervisory costs for
the performance of official services,
including personnel compensation and
benefits, travel, rent, communications,
utilities, contractual services, supplies,
and equipment.
The 18 percent fee increase will
initially increase the revenue of the
program. The 3 percent annual increase
through fiscal year 2010 is expected to
cover the program’s operating cost and
replenish the 3-month reserve balance.
To minimize the impact of a fee
increase, GIPSA has decided to establish
fee rates that will collect sufficient
revenue over time to cover operating
expenses, while striving to create a 3month operating reserve by FY 2010.
The following table reflects GIPSA’s
financial rice program projections
through fiscal year 2010. GIPSA will
evaluate the financial status of the rice
program on a continuous basis to
determine if it is meeting the goal of
obtaining a 3-month operating reserve
by FY 2010, and to determine if other
adjustments are necessary.
TABLE 1.—RICE PROGRAM FY06 ACTUAL AND PROJECTIONS
[Million dollars]*
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FY06
Revenue .......................................................................................................................................
Obligations ...................................................................................................................................
Projected Reserve (Retained Earnings) ......................................................................................
Target Reserve (Retained Earnings) (3-months operating obligations) ......................................
*Figures
$4.0
4.4
(0.5)
1.1
FY07
$4.6
4.4
(0.3)
1.1
may not sum due to rounding.
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FY08
$5.0
4.5
0.2
1.2
FY09
$5.1
4.6
0.7
1.2
FY10
$5.3
4.8
1.2
1.2
Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
GIPSA is also establishing a new fee
for stowage examination services that
we will provide as a service upon
request.
There is no additional reporting,
recordkeeping, or other compliance
requirements imposed upon small
entities as a result of this final rule.
Paperwork Reduction 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 final rule have been
approved by 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.
Executive Order 12988
We reviewed this final rule under
Executive Order 12988, Civil Justice
Reform. This action is not intended to
have retroactive effect. This rule will
not preempt any state or local laws,
regulations or policies, unless they
present an irreconcilable conflict with
this rule. There are no administrative
procedures that must be exhausted prior
to any judicial challenge to the
provisions of this rule.
List of Subjects in 7 CFR Part 868
Administrative practice and
procedure, Agricultural commodities,
Reporting and recordkeeping
requirements, Rice.
1915
For reasons set out in the preamble,
amend 7 CFR Part 868 as follows:
I
PART 868—GENERAL REGULATIONS
AND STANDARDS FOR CERTAIN
AGRICULTURAL COMMODITIES
1. Revise the authority citation for part
868 to read as follows:
I
Authority: 7 U.S.C. 1621–1627.
2. Revise section 868.91 to read as
follows:
I
§ 868.91 Fees for certain Federal rice
inspection services.
The fees shown in Tables 1 and 2
apply to Federal rice inspection
services. Fees for other services not
referenced in Table 2 will be based on
the non-contract hourly rate listed in
§ 868.91, Table 1.
TABLE 1.—HOURLY RATES/UNIT RATE PER CWT
Regular workday
(Monday–Saturday)
Service 1
Nonregular workday
(Sunday–Holiday)
Effective February 16, 2007
Contract (per hour per Service representative) ...............................................................................
Noncontract (per hour per Service representative) .........................................................................
Export Port Services (per hundredweight) 2 ....................................................................................
$54.80
66.80
0.066
$76.00
92.10
0.066
$56.40
68.80
0.068
$78.30
94.80
0.068
$58.10
70.90
0.070
$80.70
97.70
0.070
$59.90
73.00
0.072
$83.10
100.60
0.072
$61.70
75.20
0.074
$85.60
103.60
0.074
Effective October 1, 2007
Contract (per hour per Service representative) ...............................................................................
Noncontract (per hour per Service representative) .........................................................................
Export Port Services (per hundredweight) 2 ....................................................................................
Effective October 1, 2008
Contract (per hour per Service representative) ...............................................................................
Noncontract (per hour per Service representative) .........................................................................
Export Port Services (per hundredweight) 2 ....................................................................................
Effective October 1, 2009
Contract (per hour per Service representative) ...............................................................................
Noncontract (per hour per Service representative) .........................................................................
Export Port Services (per hundredweight) 2 ....................................................................................
Effective October 1, 2010
Contract (per hour per Service representative) ...............................................................................
Noncontract (per hour per Service representative) .........................................................................
Export Port Services (per hundredweight) 2 ....................................................................................
1 Original and appeal inspection services include: 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 SERVICE 1
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Effective February 16, 2007
Inspection for quality (per lot, sublot, or sample inspection):
(a) Rough rice ......................................................................................................................................................................................
(b) Brown rice for processing ...............................................................................................................................................................
(c) Milled rice ........................................................................................................................................................................................
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice) ..........................................................................................................................
(b) All other factors (per factor) (all rice) .............................................................................................................................................
Total oil and free fatty acid ......................................................................................................................................................................
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$41.90
36.00
26.00
32.50
15.60
50.80
1916
Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
TABLE 2.—UNIT RATES SERVICE 1—Continued
Interpretive line samples: 2
(a) Milling degree (per set) ..................................................................................................................................................................
(b) Parboiled light (per sample) ...........................................................................................................................................................
Faxed and extra copies of certificates (per copy) ...................................................................................................................................
Stowage Examination (service-on-request) 3
(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................
(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ...........................................................................
(c) Barge (per examination) .................................................................................................................................................................
(d) All other carriers (per examination) ................................................................................................................................................
111.00
27.20
3.00
50.50
50.50
40.50
15.50
Effective October 1, 2007
Inspection for quality (per lot, sublot, or sample inspection):
(a) Rough rice ......................................................................................................................................................................................
(b) Brown rice for processing ...............................................................................................................................................................
(c) Milled rice ........................................................................................................................................................................................
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice) ..........................................................................................................................
(b) All other factors (per factor) (all rice) .............................................................................................................................................
Total oil and free fatty acid ......................................................................................................................................................................
Interpretive line samples: 2
(a) Milling degree (per set) ..................................................................................................................................................................
(b) Parboiled light (per sample) ...........................................................................................................................................................
Faxed and extra copies of certificates (per copy) ...................................................................................................................................
Stowage Examination (service-on-request) 3
(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................
(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ...........................................................................
(c) Barge (per examination) .................................................................................................................................................................
(d) All other carriers (per examination) ................................................................................................................................................
$43.20
37.10
26.80
33.50
16.10
52.30
114.30
28.00
3.00
50.50
50.50
40.50
15.50
Effective October 1, 2008
Inspection for quality (per lot, sublot, or sample inspection):
(a) Rough rice ......................................................................................................................................................................................
(b) Brown rice for processing ...............................................................................................................................................................
(c) Milled rice ........................................................................................................................................................................................
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice) ..........................................................................................................................
(b) All other factors (per factor) (all rice) .............................................................................................................................................
Total oil and free fatty acid ......................................................................................................................................................................
Interpretive line samples: 2
(a) Milling degree (per set) ..................................................................................................................................................................
(b) Parboiled light (per sample) ...........................................................................................................................................................
Faxed and extra copies of certificates (per copy) ...................................................................................................................................
Stowage Examination (service-on-request) 3
(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................
(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ...........................................................................
(c) Barge (per examination) .................................................................................................................................................................
(d) All other carriers (per examination) ................................................................................................................................................
$44.50
38.20
27.60
34.50
16.60
53.90
117.70
28.80
3.00
50.50
50.50
40.50
15.50
mstockstill on PROD1PC61 with RULES
Effective October 1, 2009
Inspection for quality (per lot, sublot, or sample inspection):
(a) Rough rice ......................................................................................................................................................................................
(b) Brown rice for processing ...............................................................................................................................................................
(c) Milled rice ........................................................................................................................................................................................
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice) ..........................................................................................................................
(b) All other factors (per factor) (all rice) .............................................................................................................................................
Total oil and free fatty acid ......................................................................................................................................................................
Interpretive line samples: 2
(a) Milling degree (per set) ..................................................................................................................................................................
(b) Parboiled light (per sample) ...........................................................................................................................................................
Faxed and extra copies of certificates (per copy) ...................................................................................................................................
Stowage Examination (service-on-request) 3
(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................
(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ...........................................................................
(c) Barge (per examination) .................................................................................................................................................................
(d) All other carriers (per examination) ................................................................................................................................................
$45.80
39.40
28.40
35.50
17.10
55.50
121.30
29.70
3.00
50.50
50.50
40.50
15.50
Effective October 1, 2010
Inspection for quality (per lot, sublot, or sample inspection):
(a) Rough rice ......................................................................................................................................................................................
(b) Brown rice for processing ...............................................................................................................................................................
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$47.20
40.60
Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
1917
TABLE 2.—UNIT RATES SERVICE 1—Continued
(c) Milled rice ........................................................................................................................................................................................
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice) ..........................................................................................................................
(b) All other factors (per factor) (all rice) .............................................................................................................................................
Total oil and free fatty acid ......................................................................................................................................................................
Interpretive line samples: 2
(a) Milling degree (per set) ..................................................................................................................................................................
(b) Parboiled light (per sample) ...........................................................................................................................................................
Faxed and extra copies of certificates (per copy) ...................................................................................................................................
Stowage Examination (service-on-request) 3
(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................
(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ...........................................................................
(c) Barge (per examination) .................................................................................................................................................................
(d) All other carriers (per examination) ................................................................................................................................................
29.30
36.60
17.60
57.20
124.90
30.60
3.00
50.50
50.50
40.50
15.50
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 in combination 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
Ambassador Drive, Kansas City, Missouri 64153–1394. 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 or from the GIPSA Web site (https://www.gipsa.usda.gov). The interpretive line samples illustrate the
lower limit for milling degrees only and the color limit for the factor ‘‘Parboiled Light’’ rice.
3 If performed outside of normal business hours, 11⁄2 times the applicable unit fee will be charged.
James E. Link,
Administrator, Grain Inspection, Packers and
Stockyards Administration.
[FR Doc. 07–153 Filed 1–16–07; 8:45 am]
BILLING CODE 3410–KD–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. AMS–FV–06–0190; FV06–966–
2 FR]
Tomatoes Grown in Florida; Increased
Assessment Rate
AGENCY:
Agricultural Marketing Service,
USDA.
mstockstill on PROD1PC61 with RULES
ACTION:
Final rule.
SUMMARY: This rule increases the
assessment rate established for the
Florida Tomato Committee (Committee)
for the 2006–07 and subsequent fiscal
periods from $0.025 to $0.035 per 25pound container or equivalent of
tomatoes handled. The Committee
locally administers the marketing order
which regulates the handling of
tomatoes grown in Florida. Assessments
upon Florida tomato handlers are used
by the Committee to fund reasonable
and necessary expenses of the program.
The fiscal period begins August 1 and
ends July 31. The assessment rate will
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective Date: January 18, 2007.
FOR FURTHER INFORMATION CONTACT:
William G. Pimental, Marketing
Specialist or Christian D. Nissen,
Regional Manager, Southeast Marketing
Field Office, Marketing Order
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Administration Branch, Fruit and
Vegetable Programs, AMS, USDA;
Telephone: (863) 324–3375, Fax: (863)
325–8793, or E-mail:
William.Pimental@usda.gov or
Christian.Nissen@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington,
DC 20250–0237; telephone: (202) 720–
2491, Fax: (202) 720–8938, or E-mail:
Jay.Guerber@usda.gov.
This rule
is issued under Marketing Agreement
No. 125 and Order No. 966, both as
amended (7 CFR part 966), regulating
the handling of tomatoes grown in
Florida, hereinafter referred to as the
‘‘order.’’ The order is effective under the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the marketing order now
in effect, Florida tomato handlers are
subject to assessments. Funds to
administer the order are derived from
such assessments. It is intended that the
assessment rate as issued herein will be
applicable to all assessable tomatoes
beginning August 1, 2006, and continue
until amended, suspended, or
terminated. This rule will not preempt
any State or local laws, regulations, or
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
policies, unless they present an
irreconcilable conflict with this rule.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
This rule increases the assessment
rate established for the Committee for
the 2006–07 and subsequent fiscal
periods from $0.025 to $0.035 per 25pound container or equivalent of
tomatoes handled.
The Florida tomato marketing order
provides authority for the Committee,
with the approval of USDA, to formulate
an annual budget of expenses and
collect assessments from handlers to
administer the program. The members
of the Committee are producers and
handlers of Florida tomatoes. They are
familiar with the Committee’s needs and
with the costs for goods and services in
their local area and are thus in a
position to formulate an appropriate
budget and assessment rate. The
E:\FR\FM\17JAR1.SGM
17JAR1
]]>Agencies
[Federal Register Volume 72, Number 10 (Wednesday, January 17, 2007)]
[Rules and Regulations]
[Pages 1913-1917]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-153]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
7 CFR Part 868
RIN 0580-AA92
Fees for Rice Inspection Services
AGENCY: Grain Inspection Packers and Stockyards Administration, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule revises the regulations governing the
sampling, inspection, weighing, and certification for rice by
increasing certain fees charged for the services by approximately 18
percent. Further, the rice fees increase an additional 3 percent each
year through fiscal year 2010 and establish a stowage examination fee.
These revisions are necessary in order to recover, as nearly as
practicable, the costs of performing these services under the
Agricultural Marketing Act of 1946 (AMA).
EFFECTIVE DATE: February 16, 2007.
FOR FURTHER INFORMATION CONTACT: For information concerning program
operations, contact John Giler, Deputy Director, Field Management
Division, at his E-mail address: john.c.giler@usda.gov or by telephone
(202) 720-0228. For information concerning fee development contact,
contact Ms. Patricia Donohue-Galvin, Director, Budget and Planning
Staff, at her E-mail address: patricia.donohue-galvin@usda.gov or by
telephone (202) 690-0231.
SUPPLEMENTARY INFORMATION:
Background
The AMA authorizes official inspection and weighing services, on a
user-fee basis, of rice (7 U.S.C. 1622(h)). The AMA provides that
reasonable fees be collected from the users of the services to cover,
as nearly as practicable, the costs of the services rendered.
The regulations in 7 CFR 868 list user fees for inspection and
weighing services provided by the Grain Inspection, Packers and
Stockyards Administration (GIPSA or Agency). This final rule amends the
schedule for fees and charges for inspection and weighing services that
GIPSA provides to the rice industry to reflect the costs necessary to
operate the program.
GIPSA receives no directly appropriated funds to provide inspection
and weighing services. Our ability to provide these services depends on
user fees.
For our user fees to cover our costs so that we can continue to
provide services and to inform our customers of user fees in time for
advance planning, we proposed to set user fees for our inspection and
weighing services for fiscal years 2007 through 2010.
GIPSA regularly reviews its user fee 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 the Agency
3-month operating reserve.
The cost of operating the rice program was $4.4 million during
fiscal year 2006 and will increase to approximately $4.8 million by
fiscal year 2010. These cost increases are due to estimated annual cost
of living adjustments for employee salaries and benefits, equipment
replacement, and information technology upgrades. Replacing aging rice
inspection equipment will cost approximately $50,000. An information
technology upgrade to improve certification efficiency and program
management will cost approximately $300,000. The estimated costs
incorporate plans to introduce program changes that will better control
increases in long-term costs.
We designed the revised fee structure to fund the rice program this
fiscal year and future fiscal years to avoid a continued program
deficit. The combination of the initial 18 percent increase and the
subsequent annual 3 percent increases will ultimately cover the
program's operating cost and replenish the 3-month retained earnings
balance.
We are also establishing a new fee for stowage examination services
that we will provide as a service upon request.
In the April 11, 2006 Federal Register (71 FR 18231-18236), we
invited comments on our proposed rule identifying changes to the user
fees we charge for rice inspection and weighing services. We solicited
comments concerning our proposal for 60 days ending June 12, 2006. By
the close of the comment period, we received two comments; one from
representatives of a rice mill and one from a rice industry
organization. Both commenters opposed the fee increases. The issues
raised in these comments are discussed below.
The comments, one from a rice industry trade organization and one
from a rice mill, both opposed the fee increases. The trade
organization stated that the fee increase was excessive and would lead
to a reduction in service requested from the industry, resulting in a
continuing cycle of fee increases. It also said that the fee increase
was preemptive and premature considering the continuing nature of
discussion on privatization.
The trade organization indicated that GIPSA should eliminate costs,
redesign its delivery system in certain locations, and it offered to
work with GIPSA to evaluate options.
The rice mill stated that the fees charged by GIPSA were much
higher than private industry and that the increase would force the
industry to look for alternatives. The mill also questioned a statement
in the proposed rule concerning the voluntary nature of the inspection
service, because GIPSA is the only agency issuing USDA Rice Inspection
Certificates.
We disagree with these comments.
The rice inspection program is authorized under the AMA of 1946 and
funded by user fees. The rice fees were last revised in 2003. Since
that time, costs have increased and retained earnings have been
depleted. Without
[[Page 1914]]
the fee increase, the program will continue at a deficit.
We have adopted cost savings measures; however some aspects of the
program required upgrades, as previously discussed. In fact, we have
already adopted program changes that involved a realignment of staff to
better control rising personnel costs in the future. Further, program
costs and revenues have been projected out through 2010 with fee
adjustments on a fiscal year basis. This will minimize the impact of
the needed fee increase and will provide the industry a template to
take into account future rice program fees and stabilize program
finances.
While the agency has implemented appropriate cost savings measures,
we have also completed our feasibility study that considered
restructuring the program as part of a government-wide initiative
designed to improve efficiency and cost effectiveness (see OMB Circular
A-76). Specifically, our feasibility study determined that the A-76
action, which could include the use of private vendors to deliver
inspection services, would not result in any savings to the rice
inspection program or any long term savings to the rice industry.
Therefore, a revision to the user fees is necessary now in order to run
the inspection program without a deficit.
Contrary to one of the commenter's statements, rice inspection is a
voluntary service. Applicants in fact may choose to receive non-federal
inspection services. While it is true that GIPSA is the only entity
that issues USDA Rice Inspection Certificates, such certificates are
not mandatory.
Finally, we will continue to work with the rice industry, as
appropriate, concerning this program.
Miscellaneous Changes
We made the following minor miscellaneous changes in the regulation
to add clarity. In Table 2 of 7 CFR 868.91, the fees listed as (a) and
(b) under Stowage Examination are the same, so we added the actual fee
in row (b) instead of implying it and only listing it in row (a). In
footnote 2 of Table 2, we added a reference to the GIPSA Web site as an
alternative source for field office information. We moved the text of
footnote 3 in Table 2 to the introductory text of section 868.91
because it refers the reader back to the fees in Table 1. As a result,
we renumbered footnote 4 in Table 2 as footnote 3.
Therefore, for the reasons given in this proposed rule and in this
document, we are adopting the proposed rule as a final rule, with the
changes noted in this document.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been determined to be not significant for the
purposes of Executive Order 12866 and, therefore, the Office of
Management and Budget (OMB) has not reviewed it.
As required by the Regulatory Flexibility Act (RFA); we have
considered the economic impact of this action on small entities. The
purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened.
We are making these regulatory changes because additional user fee
revenues are needed to cover the costs of providing current and future
program operations and services.
There are approximately 135 applicants who receive rice inspection
and weighing services. A small portion of these users are small
entities under the criteria established by the Small Business
Administration (13 CFR 121.201).
GIPSA has determined that this final rule will not have a
significant economic impact on a substantial number of small entities
as defined under the RFA because the majority of applicants that apply
for services do not meet the requirements of small entities. Rice
inspection and weighing services are provided upon request and the fees
charged to users of these services vary with usage. However, the impact
on all businesses, including small entities, is very similar. Further,
the rice industry businesses are under no obligation to use these
services, and, therefore, any decision on their part to discontinue the
use of the services should not prevent them from marketing their
products.
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 its
costs.
GIPSA's cost of operating the rice program was $4.4 million during
fiscal year 2006 and will gradually escalate to approximately $4.8
million by fiscal year 2010. These cost increases through fiscal year
2010 are due to employee salaries and benefits coupled with estimated
annual cost of living adjustments, the future costs of approximately
$50,000 to replace aging rice inspection equipment in the offices, and
the need to fund approximately $300,000 for an information technology
upgrade to improve certification efficiency and program management.
The fees cover the GIPSA administrative and supervisory costs for
the performance of official services, including personnel compensation
and benefits, travel, rent, communications, utilities, contractual
services, supplies, and equipment.
The 18 percent fee increase will initially increase the revenue of
the program. The 3 percent annual increase through fiscal year 2010 is
expected to cover the program's operating cost and replenish the 3-
month reserve balance. To minimize the impact of a fee increase, GIPSA
has decided to establish fee rates that will collect sufficient revenue
over time to cover operating expenses, while striving to create a 3-
month operating reserve by FY 2010. The following table reflects
GIPSA's financial rice program projections through fiscal year 2010.
GIPSA will evaluate the financial status of the rice program on a
continuous basis to determine if it is meeting the goal of obtaining a
3-month operating reserve by FY 2010, and to determine if other
adjustments are necessary.
Table 1.--Rice Program FY06 Actual and Projections
[Million dollars]*
----------------------------------------------------------------------------------------------------------------
FY06 FY07 FY08 FY09 FY10
----------------------------------------------------------------------------------------------------------------
Revenue.......................................................... $4.0 $4.6 $5.0 $5.1 $5.3
Obligations...................................................... 4.4 4.4 4.5 4.6 4.8
Projected Reserve (Retained Earnings)............................ (0.5) (0.3) 0.2 0.7 1.2
Target Reserve (Retained Earnings) (3-months operating 1.1 1.1 1.2 1.2 1.2
obligations)....................................................
----------------------------------------------------------------------------------------------------------------
\*\Figures may not sum due to rounding.
[[Page 1915]]
GIPSA is also establishing a new fee for stowage examination
services that we will provide as a service upon request.
There is no additional reporting, recordkeeping, or other
compliance requirements imposed upon small entities as a result of this
final rule.
Paperwork Reduction 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 final rule have been approved by 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.
Executive Order 12988
We reviewed this final rule under Executive Order 12988, Civil
Justice Reform. This action is not intended to have retroactive effect.
This rule will not preempt any state or local laws, regulations or
policies, unless they present an irreconcilable conflict with this
rule. There are no administrative procedures that must be exhausted
prior to any judicial challenge to the provisions of this rule.
List of Subjects in 7 CFR Part 868
Administrative practice and procedure, Agricultural commodities,
Reporting and recordkeeping requirements, Rice.
0
For reasons set out in the preamble, amend 7 CFR Part 868 as follows:
PART 868--GENERAL REGULATIONS AND STANDARDS FOR CERTAIN
AGRICULTURAL COMMODITIES
0
1. Revise the authority citation for part 868 to read as follows:
Authority: 7 U.S.C. 1621-1627.
0
2. Revise section 868.91 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. Fees for other services not referenced in Table 2 will be
based on the non-contract hourly rate listed in Sec. 868.91, Table 1.
Table 1.--Hourly Rates/Unit Rate per CWT
------------------------------------------------------------------------
Regular workday Nonregular workday
Service \1\ (Monday-Saturday) (Sunday-Holiday)
------------------------------------------------------------------------
Effective February 16, 2007
------------------------------------------------------------------------
Contract (per hour per $54.80 $76.00
Service representative)....
Noncontract (per hour per 66.80 92.10
Service representative)....
Export Port Services (per 0.066 0.066
hundredweight) \2\.........
------------------------------------------------------------------------
Effective October 1, 2007
------------------------------------------------------------------------
Contract (per hour per $56.40 $78.30
Service representative)....
Noncontract (per hour per 68.80 94.80
Service representative)....
Export Port Services (per 0.068 0.068
hundredweight) \2\.........
------------------------------------------------------------------------
Effective October 1, 2008
------------------------------------------------------------------------
Contract (per hour per $58.10 $80.70
Service representative)....
Noncontract (per hour per 70.90 97.70
Service representative)....
Export Port Services (per 0.070 0.070
hundredweight) \2\.........
------------------------------------------------------------------------
Effective October 1, 2009
------------------------------------------------------------------------
Contract (per hour per $59.90 $83.10
Service representative)....
Noncontract (per hour per 73.00 100.60
Service representative)....
Export Port Services (per 0.072 0.072
hundredweight) \2\.........
------------------------------------------------------------------------
Effective October 1, 2010
------------------------------------------------------------------------
Contract (per hour per $61.70 $85.60
Service representative)....
Noncontract (per hour per 75.20 103.60
Service representative)....
Export Port Services (per 0.074 0.074
hundredweight) \2\.........
------------------------------------------------------------------------
\1\ Original and appeal inspection services include: 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 Service \1\
------------------------------------------------------------------------
------------------------------------------------------------------------
Effective February 16, 2007
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample
inspection):
(a) Rough rice........................................... $41.90
(b) Brown rice for processing............................ 36.00
(c) Milled rice.......................................... 26.00
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice)..... 32.50
(b) All other factors (per factor) (all rice)............ 15.60
Total oil and free fatty acid.............................. 50.80
[[Page 1916]]
Interpretive line samples: \2\
(a) Milling degree (per set)............................. 111.00
(b) Parboiled light (per sample)......................... 27.20
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request) \3\
(a) Ship (per stowage space) (minimum $252.50 per ship).. 50.50
(b) Subsequent ship examination (same as original) 50.50
(minimum $151.50 per ship)..............................
(c) Barge (per examination).............................. 40.50
(d) All other carriers (per examination)................. 15.50
------------------------------------------------------------------------
Effective October 1, 2007
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample
inspection):
(a) Rough rice........................................... $43.20
(b) Brown rice for processing............................ 37.10
(c) Milled rice.......................................... 26.80
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice)..... 33.50
(b) All other factors (per factor) (all rice)............ 16.10
Total oil and free fatty acid.............................. 52.30
Interpretive line samples: \2\
(a) Milling degree (per set)............................. 114.30
(b) Parboiled light (per sample)......................... 28.00
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request) \3\
(a) Ship (per stowage space) (minimum $252.50 per ship).. 50.50
(b) Subsequent ship examination (same as original) 50.50
(minimum $151.50 per ship)..............................
(c) Barge (per examination).............................. 40.50
(d) All other carriers (per examination)................. 15.50
------------------------------------------------------------------------
Effective October 1, 2008
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample
inspection):
(a) Rough rice........................................... $44.50
(b) Brown rice for processing............................ 38.20
(c) Milled rice.......................................... 27.60
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice)..... 34.50
(b) All other factors (per factor) (all rice)............ 16.60
Total oil and free fatty acid.............................. 53.90
Interpretive line samples: \2\
(a) Milling degree (per set)............................. 117.70
(b) Parboiled light (per sample)......................... 28.80
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request) \3\
(a) Ship (per stowage space) (minimum $252.50 per ship).. 50.50
(b) Subsequent ship examination (same as original) 50.50
(minimum $151.50 per ship)..............................
(c) Barge (per examination).............................. 40.50
(d) All other carriers (per examination)................. 15.50
------------------------------------------------------------------------
Effective October 1, 2009
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample
inspection):
(a) Rough rice........................................... $45.80
(b) Brown rice for processing............................ 39.40
(c) Milled rice.......................................... 28.40
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice)..... 35.50
(b) All other factors (per factor) (all rice)............ 17.10
Total oil and free fatty acid.............................. 55.50
Interpretive line samples: \2\
(a) Milling degree (per set)............................. 121.30
(b) Parboiled light (per sample)......................... 29.70
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request) \3\
(a) Ship (per stowage space) (minimum $252.50 per ship).. 50.50
(b) Subsequent ship examination (same as original) 50.50
(minimum $151.50 per ship)..............................
(c) Barge (per examination).............................. 40.50
(d) All other carriers (per examination)................. 15.50
------------------------------------------------------------------------
Effective October 1, 2010
------------------------------------------------------------------------
Inspection for quality (per lot, sublot, or sample
inspection):
(a) Rough rice........................................... $47.20
(b) Brown rice for processing............................ 40.60
[[Page 1917]]
(c) Milled rice.......................................... 29.30
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice)..... 36.60
(b) All other factors (per factor) (all rice)............ 17.60
Total oil and free fatty acid.............................. 57.20
Interpretive line samples: \2\
(a) Milling degree (per set)............................. 124.90
(b) Parboiled light (per sample)......................... 30.60
Faxed and extra copies of certificates (per copy).......... 3.00
Stowage Examination (service-on-request) \3\
(a) Ship (per stowage space) (minimum $252.50 per ship).. 50.50
(b) Subsequent ship examination (same as original) 50.50
(minimum $151.50 per ship)..............................
(c) Barge (per examination).............................. 40.50
(d) All other carriers (per examination)................. 15.50
------------------------------------------------------------------------
\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 in combination 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
Ambassador Drive, Kansas City, Missouri 64153-1394. 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 or from the GIPSA
Web site (https://www.gipsa.usda.gov). The interpretive line samples
illustrate the lower limit for milling degrees only and the color
limit for the factor ``Parboiled Light'' rice.
\3\ If performed outside of normal business hours, 1\1/2\ times the
applicable unit fee will be charged.
James E. Link,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 07-153 Filed 1-16-07; 8:45 am]
BILLING CODE 3410-KD-P
