99-31371. Veterinary Services User Fees; Biosecurity Level Three Laboratory Inspection Fee  

  • [Federal Register Volume 64, Number 232 (Friday, December 3, 1999)]
    [Rules and Regulations]
    [Pages 67697-67698]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-31371]
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Animal and Plant Health Inspection Service
    
    9 CFR Part 130
    
    [Docket No. 98-052-2]
    
    
    Veterinary Services User Fees; Biosecurity Level Three Laboratory 
    Inspection Fee
    
    AGENCY: Animal and Plant Health Inspection Service, USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: We are amending existing user fees for the inspection for 
    approval of biosecurity level three laboratories. Existing user fees 
    require biosecurity level three laboratories to pay user fees for 
    inspection based on hourly rates. We are replacing the hourly rates for 
    this specific service with a flat rate user fee that would cover all 
    the costs of inspection related to approving a laboratory for handling 
    one defined set of organisms or vectors. We are taking this action in 
    order to ensure that the user fees cover our costs.
    
    EFFECTIVE DATE: January 3, 2000.
    
    FOR FURTHER INFORMATION CONTACT: For information concerning program 
    operations for Veterinary Services, contact Ms. Louise Lothery, 
    Administrative Officer, Management Support Staff, VS, APHIS, 4700 River 
    Road Unit 44, Riverdale, MD 20737-1231; (301) 734-7517.
        For information concerning rate development of the proposed user 
    fee, contact Ms. Donna Ford, Section Head, Financial Systems and 
    Services Branch, Budget and Accounting Service Enhancement Unit, MRPBS, 
    APHIS, 4700 River Road Unit 54, Riverdale, MD 20737-1232; (301) 734-
    8351.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        User fees to reimburse the Animal and Plant Health Inspection 
    Service (APHIS) for the costs of providing veterinary diagnostic 
    services and import- and export-related services for live animals and 
    birds and animal products are contained in 9 CFR part 130. Section 
    130.8 lists miscellaneous flat rate user fees. Section 130.9 lists the 
    hourly rate user fees charged for APHIS' import or entry services, 
    including inspection of laboratories within the United States.
        On July 14, 1999, we published in the Federal Register (64 FR 
    37903-37905, Docket No. 98-052-1) a proposal to amend the existing user 
    fees for the inspection for approval of biosecurity level three 
    laboratories. Existing user fees require biosecurity level three 
    laboratories to pay user fees for inspection based on hourly rates. We 
    proposed to replace the hourly rates for this specific service with a 
    flat rate user fee that would cover all the costs of inspection related 
    to approving a laboratory for handling one defined set of organisms or 
    vectors.
        We solicited comments concerning our proposal for 60 days ending 
    September 13, 1999. We did not receive any comments. Therefore, for the 
    reasons given in the proposed rule, we are adopting the proposed rule 
    as a final rule, without change.
    
    Executive Order 12866 and Regulatory Flexibility Act
    
        This rule has been reviewed under Executive Order 12866. The rule 
    has been determined to be not significant for the purposes of Executive 
    Order 12866 and, therefore, has not been reviewed by the Office of 
    Management and Budget.
        In accordance with 5 U.S.C. 604, we have performed a final 
    regulatory flexibility analysis, which is set out below, regarding the 
    economic effects of this rule on small entities.
        User fees to reimburse APHIS for the costs of providing veterinary 
    diagnostic services and import- and export-related services for live 
    animals and birds and animal products are contained in 9 CFR part 130. 
    Prior to the effective date of this rule, APHIS charged user fees for 
    the inspection of biosecurity level three laboratories under the hourly 
    rate user fees contained in Sec. 130.9.
        APHIS inspects several laboratories in the United States that 
    conduct biosecurity level three research on high-risk organisms and 
    vectors. Under the hourly rate user fees, laboratories pay an average 
    of $462 for inspections required to be approved to handle a defined set 
    of organisms or vectors. The average actual cost of providing this 
    service, including the cost of air travel and lodging necessary to 
    inspect certain laboratories, is $977 per laboratory. APHIS has not 
    been able to recover all costs of inspection associated with approving 
    these laboratories under the hourly rate user fee structure because the 
    regulations only provide for 6 hours of ground travel.
        Therefore, we are amending the regulations in Sec. 130.8 by 
    establishing a flat rate user fee of $977 for this service, which would 
    cover the average cost of inspection related to approving a laboratory 
    to handle one defined set of organisms or vectors. The flat rate user 
    fee will enable all laboratories to know in advance what costs they 
    will incur.
        We arrived at the flat rate user fee by using the average of the 
    number of hours required for an APHIS inspector
    
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    to complete an inspection, travel costs (including airfare and lodging, 
    when appropriate), per diem, and miscellaneous travel expenses.
    
    Effects on Small Entities
    
        Under Small Business Administration (SBA) guidelines, a biosecurity 
    level three laboratory with less than $5 million in annual sales is 
    considered a small entity. All of the laboratories we inspect are small 
    entities.
        We anticipate that the economic effects of this rule on these 
    laboratories will be minimal. An informal survey of several of the 
    affected laboratories revealed that in some cases inspection costs at 
    laboratories are charged directly to a client if the client requested 
    analysis of the particular organism or vector for which the inspection 
    was undertaken. However, in most cases, laboratories pay for 
    inspections with overhead funds from their operating budget. There are 
    two types of biosecurity level three laboratories that we inspect. Some 
    laboratories are privately owned, for-profit enterprises that charge 
    clients fees to use the laboratory to research biosecurity level three 
    organisms or vectors. These laboratories typically bill their clients 
    for the cost of APHIS' inspection service and, therefore, are not 
    directly affected by the cost of inspections.
        Other laboratories are publicly owned and are attached to 
    universities or government agencies. These laboratories typically 
    include anticipated APHIS inspection costs in their yearly budgets. We 
    do not have the data to assess the effect of the rate change on these 
    laboratories. On average, laboratories are inspected twice a year. 
    However, a laboratory working with many different types of organisms 
    could be subject to additional inspections.
        In our proposal, we solicited comments on the potential effects of 
    the proposed action on small entities. In particular, we sought data 
    and other information to help us better determine what effects, if any, 
    this rule would on the small entities mentioned above. We received no 
    comments on the proposed rule.
    
    Alternatives Considered
    
        In developing this rule, we considered: (1) Making no changes to 
    our existing method of recovering costs for inspecting biosecurity 
    level three laboratories; (2) charging laboratories the exact costs 
    incurred during each individual inspection, including costs of travel 
    and lodging; or (3) charging a flat rate user fee for the inspection of 
    biosecurity level three laboratories.
        We rejected the first alternative because, if we made no changes to 
    the regulations, we would continue to be unable to recover all of the 
    costs associated with the inspection of biosecurity level three 
    laboratories. All costs to APHIS for providing this service must be 
    recovered solely through user fees; there is no other form of funding 
    available to us that would cover this service.
        We also rejected the second alternative, in which each laboratory 
    would be charged the exact cost of inspection, including travel and 
    lodging for APHIS personnel. We believe it is unfair to charge certain 
    customers higher fees than others simply because a qualified APHIS 
    inspector may not be stationed nearby. We believe that the fairest 
    method of charging customers for this service is through a flat rate 
    user fee.
        This rule contains no new information collection or recordkeeping 
    requirements.
    
    Executive Order 12372
    
        This program/activity is listed in the Catalog of Federal Domestic 
    Assistance under No. 10.025 and is subject to Executive Order 12372, 
    which requires intergovernmental consultation with State and local 
    officials. (See 7 CFR part 3015, subpart V.)
    
    Executive Order 12988
    
        This final rule has been reviewed under Executive Order 12988, 
    Civil Justice Reform. This rule: (1) Preempts all State and local laws 
    and regulations that are inconsistent with this rule; (2) has no 
    retroactive effect; and (3) does not require administrative proceedings 
    before parties may file suit in court challenging this rule.
    
    Paperwork Reduction Act
    
        This final rule contains no new information collection or 
    recordkeeping requirements under the Paperwork Reduction Act of 1995 
    (44 U.S.C. 3501 et seq.).
    
    List of Subjects in 9 CFR Part 130
    
        Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry and 
    poultry products, Quarantine, Reporting and recordkeeping requirements, 
    Tests.
        Accordingly, we are amending 9 CFR part 130 as follows:
    
    PART 130--USER FEES
    
        1. The authority citation for part 130 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21 
    U.S.C. 102-105, 111, 114, 114a, 134a, 134c, 134d, 134f, 136, and 
    136a; 31 U.S.C. 3701, 3716, 3717, 3719, and 3720A; 7 CFR 2.22, 2.80, 
    and 371.2(d).
    
        2. In Sec. 130.1, a definition for ``biosecurity level three 
    laboratory'' is added in alphabetical order to read as follows:
    
    
    Sec. 130.1  Definitions.
    
    * * * * *
        Biosecurity level three laboratory. A laboratory or production 
    facility that works with foreign or domestic animal disease agents, 
    organisms, or vectors that spread by aerosol route and that have 
    serious or lethal effects, therefore requiring special biocontainment 
    measures.
    * * * * *
        3. In Sec. 130.8, paragraph (a), the table is amended by adding a 
    new entry in alphabetical order to read as follows:
    
    
    Sec. 130.8  User fees for other services.
    
        (a) * * *
    
    ------------------------------------------------------------------------
                      Service                             User fee
    ------------------------------------------------------------------------
     
                    *        *           *        *        *
    Inspection for approval of biosecurity      $977.00 for all costs of
     level three laboratories.                   inspection related to
                                                 approving the laboratory
                                                 for handling one defined
                                                 set of organisms or
                                                 vectors.
     
                    *        *           *        *        *
    ------------------------------------------------------------------------
    
    * * * * *
        4. In Sec. 130.9, the introductory text of paragraph (a) is revised 
    to read as follows:
    
    
    Sec. 130.9  Hourly user fees for import or entry services.
    
        (a) User fees for import or entry services listed in paragraphs 
    (a)(1) through (a)(5) of this section, except those services covered by 
    flat rate user fees elsewhere in this part, will be calculated at 
    $56.00 per hour, or $14.00 per quarter hour, with a minimum fee of 
    $16.50, for each employee required to perform the service. The person 
    for whom the service is provided and the person requesting the service 
    are jointly and severally liable for payment of these user fees in 
    accordance with Secs. 130.50 and 130.51.
    * * * * *
        Done in Washington, DC, this 29th day of November 1999.
    Bobby R. Acord,
    Acting Administrator, Animal and Plant Health Inspection Service.
    [FR Doc. 99-31371 Filed 12-2-99; 8:45 am]
    BILLING CODE 3410-34-U
    
    
    

Document Information

Effective Date:
1/3/2000
Published:
12/03/1999
Department:
Animal and Plant Health Inspection Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-31371
Dates:
January 3, 2000.
Pages:
67697-67698 (2 pages)
Docket Numbers:
Docket No. 98-052-2
PDF File:
99-31371.pdf
CFR: (3)
9 CFR 130.1
9 CFR 130.8
9 CFR 130.9