User fees: Veterinary services; embryo collection center approval fees,

[Federal Register: December 30, 1998 (Volume 63, Number 250)]

[Rules and Regulations]

[Page 71728-71729]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr30de98-3]

[[Page 71728]]

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 130

[Docket No. 98-005-2]

Veterinary Services User Fees; Embryo Collection Center Approval Fee

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

SUMMARY: We are amending the 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 replacing the hourly rates for this specific service with a flat rate annual user fee that will 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.

EFFECTIVE DATE: January 29, 1999.

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 APHIS' inspection and approval of export facilities, including embryo collection centers, within the United States. Section 130.8 lists miscellaneous flat rate user fees.

On July 28, 1998, we published in the Federal Register (63 FR 40200-40202, Docket No. 98-005-1) a proposal to amend the regulations by revising the 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 replacing the hourly rates for this specific service with a flat rate annual user fee that will cover the cost of approval and all required inspections of the facility for that year.

We solicited comments concerning our proposal for 60 days ending September 28, 1998. 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 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. We are amending the regulations by removing the hourly rate user fees for inspection and approval of embryo collection centers and the animals in them. We are replacing the hourly rates with a flat rate annual user fee, which does not include costs for inspecting any animals in the facility.

The flat rate annual user fee 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 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 should 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 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.

This action should also have a minimal impact on the customers of embryo collection centers, whether small or large. Any change in cost to users that occurs as a result of this action 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 will 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 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 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 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,

   [[Page 71729]]

   114a, 134a, 134b, 134c, 134d, 134f, 135, 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. 130.8, paragraph (a) is 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) is 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 December 1998. Joan M. Arnoldi, Acting Administrator, Animal and Plant Health Inspection Service.

   [FR Doc. 98-34523Filed12-29-98; 8:45 am]

   BILLING CODE 3410-34-P