[Federal Register Volume 63, Number 144 (Tuesday, July 28, 1998)]
[Proposed Rules]
[Pages 40200-40202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20157]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Part 130
[Docket No. 98-005-1]
Veterinary Services User Fees; Embryo Collection Center Approval
Fee
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: We are proposing to amend existing user fees for the
inspection and approval of embryo collection centers. Existing user
fees require embryo collection centers to pay user fees based on hourly
rates for inspections and approval. We are proposing to replace the
hourly rates for this specific service with a flat rate annual user fee
that would cover the cost of approval and all required inspections of
the facility for that year. We are taking this action in order to make
the collection of user fees simpler and to allow centers to better
predict the costs of APHIS' inspection and approval.
DATES: Consideration will be given only to comments received on or
before September 28, 1998.
ADDRESSES: Please send an original and three copies of your comments to
Docket No. 98-005-1, Regulatory Analysis and Development, PPD, APHIS,
suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please
state that your comments refer to Docket No. 98-005-1. Comments
received may be inspected at USDA, room 1141, South Building, 14th
Street and Independence Avenue SW., Washington, DC, between 8 a.m. and
4:30 p.m., Monday through Friday, except holidays. Persons wishing to
inspect comments are requested to call ahead on (202) 690-2817 to
facilitate entry into the comment reading room.
FOR FURTHER INFORMATION CONTACT: Ms. Donna Ford, Section Head,
Financial Systems and Services Branch, Budget and Accounting Division,
ABS, 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-related and export-related services for live
animals and birds and animal products are contained in 9 CFR part 130.
Section 130.21 lists the user fees charged for
[[Page 40201]]
APHIS' inspection and approval of export facilities, including embryo
collection centers, within the United States. Section 130.8 lists
miscellaneous flat rate user fees.
Currently, under Sec. 130.21, APHIS charges an hourly rate user fee
for inspections and approval of embryo collection centers. The same
rate applies to both stationary and mobile facilities.
We are proposing to amend 9 CFR part 130 to establish a flat rate
annual user fee of $ 278.50 to cover the cost of APHIS' inspection and
approval of embryo collection centers, both stationary and mobile. The
flat fee would cover inspection and approval of the facility only. The
cost of any animal inspections is not included in the proposed fee.
We are proposing this action based on requests from embryo industry
representatives that we modify our user fees to make it easier for them
to know in advance what their costs will be. This would, in turn,
enable the industry to quote accurate costs to their customers. We have
determined that the most effective way to provide the requested service
to our customers is to establish a flat rate annual user fee, which
would effectively eliminate any variation in cost that could otherwise
result in charging hourly rates for inspections.
The proposed flat rate annual user fee for inspection and approval
of embryo collection centers was calculated to reflect the average
annual cost of providing this service. The average annual cost includes
the time to provide the service and travel time, which are both
currently billed at an hourly rate. The total charge to the customer
would not be significantly different from what he or she currently
pays.
We are proposing to add the flat rate annual user fee of $278.50
for inspection and approval of embryo collection centers to the table
in Sec. 130.8(a), which includes the flat rate user fees for other
inspection and approval services. In addition, we are proposing to
remove the provision in Sec. 130.21(a)(6) that applies hourly rate user
fees for inspection and approval of embryo collection centers.
We would continue to charge hourly rate user fees, in accordance
with Sec. 130.21(a)(6), for inspecting and approving semen collection
centers. We are making no change to these user fees because we have not
received any comments from the industry requesting such a change, and
the current fees provide us with an adequate means of recovering our
costs.
We are also proposing to make a nonsubstantive change to
Sec. 130.21(a)(6) to clarify that artificial insemination centers are
subject to the same user fees as semen collection centers. APHIS
currently regulates both under the term semen collection center.
Executive Order 12866 and Regulatory Flexibility Act
This proposed 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.
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 130.
Currently, we charge hourly rate user fees for inspection and approval
of embryo collection centers and the animals in them. We are proposing
to amend the regulations by removing these hourly rate user fees for
inspection and approval and replacing them with a flat rate annual user
fee, which would not include costs for inspecting any animals in the
facility.
The flat rate annual user fee that we are proposing was arrived at
using the average number of hours required for an APHIS inspector to
complete an inspection (including travel time), the average number of
inspections performed during a year (two per center), the average
direct labor involved, and proportional share of support costs,
overhead, and departmental charges.
The proposed flat rate annual user fee of $278.50 per center should
not be significantly different from what customers have paid per year
in the past for inspection and approval at hourly rates. Variations
would generally be a result of different travel times to individual
centers.
There are approximately 90 currently licensed embryo collection
centers in the United States. Under Small Business Administration (SBA)
guidelines, an embryo collection center with less than $5 million in
annual sales qualifies as a small entity. While we could not determine
exactly how many of the embryo collection centers are ``small
entities,'' it is likely that the majority of them have less than $5
million in annual sales. However, since the proposed flat fee should
not be significantly different from what customers have paid in the
past for approval and inspection at hourly rates, the effect on
customers should be minimal.
The proposed rule should also have a minimal impact on the
customers of embryo collection centers, whether small or large. Any
change in cost to users that does occur should be small, relative to
the product value of even a small operation. An average animal embryo
sells for approximately $400, with certain animal embryos ranging in
price from $100 to $2500 each. An average collection center collects
approximately 3,400 animal embryos a year. Considering the volume of
animal embryos collected at collection facilities per year and the
value of individual embryos, the effect on user costs should be
minimal.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action would
not have a significant economic impact on a substantial number of small
entities.
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 proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. If this proposed rule is adopted: (1) All State
and local laws and regulations that are inconsistent with this rule
will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings will not be required before
parties may file suit in court challenging this rule.
Paperwork Reduction Act
This proposed rule contains no new information collection or
recordkeeping requirements under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.).
Regulatory Reform
This action is part of the President's Regulatory Reform
Initiative, which, among other things, directs agencies to remove
obsolete and unnecessary regulations and to find less burdensome ways
to achieve regulatory goals.
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 propose to amend 9 CFR part 130 as follows:
PART 130--USER FEES
1. The authority citation for part 130 would continue to read as
follows:
[[Page 40202]]
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, 134b, 134c, 134d, 134f, 135,
136, and 136a; 7 CFR 2.22, 2.80, and 371.2(d).
2. In Sec. 130.8, paragraph (a) would be amended by adding a new
entry at the end of the table to read as follows:
Sec. 130.8 User fees for other services.
(a) * * *
------------------------------------------------------------------------
Service User fee
------------------------------------------------------------------------
* * * *
* * *
Embryo collection center inspection and $278.50 for all inspections
approval. required during the year for
facility approval.
------------------------------------------------------------------------
* * * * *
Sec. 130.21 [Amended]
3. In Sec. 130.21, paragraph (a)(6) would be amended by removing
the words ``embryo or'' and adding the words ``artificial insemination
center or a'' in their place.
* * * * *
Done in Washington, DC, this 22nd day of July 1998.
Charles P. Schwalbe,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 98-20157 Filed 7-27-98; 8:45 am]
BILLING CODE 3410-34-P
