[Federal Register: March 31, 2003 (Volume 68, Number 61)]
[Proposed Rules]
[Page 15385-15387]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31mr03-34]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 28
RIN 0581-AC17
[Doc. CN-02-006]
User Fees for 2003 Crop Cotton Classification Services to Growers
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is proposing to
maintain user fees for cotton producers for 2003 crop cotton
classification services under the Cotton Statistics and Estimates Act
at the same level as in 2002. This is in accordance with the formula
provided in the Uniform Cotton Classing Fees Act of 1987. The 2002 user
fee for this classification service was $1.45 per bale. This proposal
would maintain the fee for the 2003 crop at $1.45 per bale. The
proposed fee and the existing reserve are sufficient to cover the costs
of providing classification services, including costs for
administration and supervision.
DATES: Comments must be received on or before April 15, 2003.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule to Norma McDill, Deputy Administrator,
Cotton Program, AMS, USDA, STOP 0224, 1400 Independence Avenue, SW.,
Washington, DC 20250-0224. Comments should be submitted in triplicate.
Comments may also be submitted electronically to:
cottoncomments@usda.gov <mailto:
cottoncomments@usda.gov>. All comments should reference the docket
number and the date and the page of this issue of the Federal Register.
All comments received will be available for public inspection during
regular business hours at the above office in Rm. 2641-South Building,
1400 Independence Avenue, SW., Washington, DC. A copy of this notice
may be found at: www.ams.usda.gov/cotton/rulemaking.htm <http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=www.ams.usda.gov/cotton/rulemaking.htm>.
FOR FURTHER INFORMATION CONTACT: Norma McDill, Deputy Administrator,
Cotton Program, AMS, USDA, Room 2641-S, STOP 0224, 1400 Independence
Avenue, SW., Washington, DC 20250-
[[Page 15386]]
0224. Telephone (202) 720-2145, facsimile (202) 690-1718, or e-mail
norma.mcdill@usda.gov <mailto:
norma.mcdill@usda.gov>.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866; and, therefore has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
This rule would 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.
Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5U.S.C. 601 et seq.) AMS has considered the economic impact
of this action on small entities and has determined that its
implementation will not have a significant economic impact on a
substantial number of small businesses.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. There are an estimated 35,000 cotton
growers in the U.S. who voluntarily use the AMS cotton classing
services annually, and the majority of these cotton growers are small
businesses under the criteria established by the Small Business
Administration (13 CFR 121.601). Continuing the user fee at the 2002
crop level as stated will not significantly affect small businesses as
defined in the RFA because:
(1) The fee represents a very small portion of the cost-per-unit
currently borne by those entities utilizing the services. (The 2002
user fee for classification services was $1.45 per bale; the fee for
the 2003 crop would be maintained at $1.45 per bale; the 2003 crop is
estimated at 17,200,000 bales).
(2) The fee for services will not affect competition in the
marketplace; and
(3) The use of classification services is voluntary. For the 2002
crop, 17,145,000 bales were produced; and, virtually all of these bales
were voluntarily submitted by growers for the classification service.
(4) Based on the average price paid to growers for cotton from the
2001 crop of 29.8 cents per pound, 500 pound bales of cotton are worth
an average of $149 each. The proposed user fee for classification
services, $1.45 per bale, is less than one percent of the value of an
average bale of cotton.
Paperwork Reduction Act
In compliance with OMB regulations (5 CFR part 1320), which
implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.),
the information collection requirements contained in the provisions to
be amended by this proposed rule have been previously approved by OMB
and were assigned OMB control number 0581-0009 under the Paperwork
Reduction Act (44 U.S.C. 3501 et seq.).
It is anticipated that the proposed changes, if adopted, would be
made effective July 1, 2003, as provided by the Cotton Statistics and
Estimates Act.
Fees for Classification Under the Cotton Statistics and Estimates Act
of 1927
The user fee charged to cotton producers for High Volume Instrument
(HVI) classification services under the Cotton Statistics and Estimates
Act (7 U.S.C. 473a) was $1.45 per bale during the 2002 harvest season
as determined by using the formula provided in the Uniform Cotton
Classing Fees Act of 1987, as amended by Public Law 102-237. The fees
cover salaries, costs of equipment and supplies, and other overhead
costs, including costs for administration, and supervision.
This proposed rule establishes the user fee charged to producers
for HVI classification at $1.45 per bale during the 2003 harvest
season.
Public Law 102-237 amended the formula in the Uniform Cotton
Classing Fees Act of 1987 for establishing the producer's
classification fee so that the producer's fee is based on the
prevailing method of classification requested by producers during the
previous year. HVI classing was the prevailing method of cotton
classification requested by producers in 2002. Therefore, the 2003
producer's user fee for classification service is based on the 2002
base fee for HVI classification.
The fee was calculated by applying the formula specified in the
Uniform Cotton Classing Fees Act of 1987, as amended by Public Law 102-
237. The 2002 base fee for HVI classification exclusive of adjustments,
as provided by the Act, was $2.28 per bale. An increase of .84 percent,
or 2 cents per bale, increase due to the implicit price deflator of the
gross domestic product added to the $2.28 would result in a 2003 base
fee of $2.30 per bale. The formula in the Act provides for the use of
the percentage change in the implicit price deflator of the gross
national product (as indexed for the most recent 12-month period for
which statistics are available). However, gross national product has
been replaced by gross domestic product by the Department of Commerce
as a more appropriate measure for the short-term monitoring and
analysis of the U.S. economy.
The number of bales to be classed by the United States Department
of Agriculture from the 2003 crop is estimated at 16,793,610 bales. The
2003 base fee was decreased 15 percent based on the estimated number of
bales to be classed (1 percent for every 100,000 bales or portion
thereof above the base of 12,500,000, limited to a maximum adjustment
of 15 percent). This percentage factor amounts to a 35 cents per bale
reduction and was subtracted from the 2003 base fee of $2.30 per bale,
resulting in a fee of $1.95 per bale.
With a fee of $1.95 per bale, the projected operating reserve would
be 51.09 percent. The Act specifies that the Secretary shall not
establish a fee which, when combined with other sources of revenue,
will result in a projected operating reserve of more than 25 percent.
Accordingly, the fee of $1.95 must be reduced by 50 cents per bale, to
$1.45 per bale, to provide an ending accumulated operating reserve for
the fiscal year of 25 percent of the projected cost of operating the
program. This would establish the 2003 season fee at $1.45 per bale.
Accordingly, Sec. 28.909, paragraph (b) would reflect the
continuation of the HVI classification fee at $1.45 per bale.
As provided for in the Uniform Cotton Classing Fees Act of 1987, as
amended, a 5 cent per bale discount would continue to be applied to
voluntary centralized billing and collecting agents as specified in
Sec. 28.909 (c).
Growers or their designated agents receiving classification data
would continue to incur no additional fees if only one method of
receiving classification data was requested. The fee for each
additional method of receiving classification data in Sec. 28.910
would remain at 5 cents per bale, and it would be applicable even if
the same method were requested. The fee in Sec. 28.910 (b) for an
owner receiving classification data from the central database would
remain at 5 cents per bale, and the minimum charge of $5.00 for
services provided per, monthly billing period would remain the same.
The provisions of Sec. 28.910 (c) concerning the fee for new
classification memoranda issued from the central
[[Page 15387]]
database for the business convenience of an owner without
reclassification of the cotton will remain the same.
The fee for review classification in Sec. 28.911 would be
maintained at $1.45 per bale.
The fee for returning samples after classification in Sec. 28.911
would remain at 40 cents per sample.
A 15-day comment period is provided for public comments. This
period is appropriate because it is anticipated that the proposed
changes, if adopted, would be made effective July 1, 2003, as provided
by the Cotton Statistics and Estimates Act.
List of Subjects in 7 CFR Part 28
Administrative practice and procedure, Cotton, Cotton samples,
Grades, Market news, Reporting and record keeping requirements,
Standards, Staples, Testing, Warehouses.
For the reasons set forth in the preamble, 7 CFR Part 28 is
proposed to be amended as follows:
PART 28--[Amended]
1. The authority citation for 7 CFR Part 28, Subpart D, continues
to read as follows:
Authority: 7 U.S.C. 471-476.
2. In Sec. 28.909, paragraph (b) is revised to read as follows:
Sec. 28.909 Costs.
* * * * *
(b) The cost of High Volume Instrument (HVI) cotton classification
service to producers is $1.45 per bale.
* * * * *
3. In Sec. 28.911, the last sentence of paragraph (a) is revised
to read as follows:
Sec. 28.911 Review classification.
(a) * * * The fee for review classification is $1.45 per bale.
* * * * *
Dated: March 24, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-7631 Filed 3-28-03; 8:45 am]
BILLING CODE 3410-02-P
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