29530 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 /Rules and Regulations

Dated: May 26, 1998.

Enrique E. Figueroa,

Administrator, Agricultural Marketing

Service.

[FR Doc. 98–14423 Filed 5–29–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and

Stockyards Administration

7 CFR Part 868

RIN 0580–AA54

General Regulations and Standards for

Certain Agricultural Commodities

AGENCY: Grain Inspection, Packers and

Stockyards Administration, USDA.

ACTION: Final rule.

SUMMARY: The Grain Inspection, Packers

and Stockyards Administration (GIPSA)

is amending the regulations under the

Agricultural Marketing Act (Act) of 1946

to allow GIPSA and State cooperators to

use contractors to perform specified

inspection services. GIPSA has

determined that private firms,

institutions, and individuals, working

under contract with GIPSA field offices

and State cooperators, may be able to

perform some inspection services, at

certain locations, more effectively or at

less cost than if those services were

performed by Department or State

employees. Consequently, GIPSA is

amending the regulations to allow

GIPSA and State cooperators to contract

for service work and to license

individual contractors and those

employed by contractors.

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT:

George Wollam, USDA, GIPSA, Room

0623–S, Stop 3649, Washington, D.C.

20250–3649; FAX (202) 720–4628; or Email gwollam@fgisdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final rule has been determined to

be nonsignificant for the purpose of

Executive Order 12866, and, therefore,

has not been reviewed by the Office of

Management and Budget.

Executive Order 12988

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. This action is not

intended to have preemptive effect with

respect to any State or local laws,

regulations, or policies unless they

present an irreconcilable conflict with

this rule. This final rule is not intended

to have retroactive effect. There are no

administrative procedures which must

be exhausted prior to any judicial

challenge to the provisions of this rule

or application of its provisions.

Effects on Small Entities

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 Regulatory Flexibility Act (5

U.S.C. 601 et seq.). GIPSA believes that

allowing contracts with private firms,

institutions, individuals, and others for

inspection work will foster more costeffective operations. Many users of the

inspection services do not meet the

requirements for small entities as

defined in the Regulatory Flexibility

Act. For example, the primary user of

pulse inspection services is the U.S.

Government. It is estimated that

between 80 and 90 percent of all

inspections are performed (directly or

indirectly) at the request of either the

USDA’s Farm Service Agency or Foreign

Agricultural Service, or the U.S. Agency

for International Development. The

action will allow GIPSA and the 13

State cooperators to use contractors to

perform specified inspection services.

Currently, contract samplers are used by

both GIPSA and State cooperators

which has resulted in reduced operating

expenses and, in many cases, quicker

services to applicants for services. It is

expected that this action would result in

similar benefits.

Information Collection and

Recordkeeping Requirements

In compliance with the Paperwork

Reduction Act of 1995 (44 U.S.C.

Chapter 35), the information collection

and recordkeeping requirements in Part

868 have been approved previously by

OMB and assigned OMB No. 0580–

0013.

Background

GIPSA is committed to carrying out

its statutory and regulatory mandates in

a cost-effective manner that best serves

the public interest. Concurrently, GIPSA

is constantly seeking ways to reduce the

cost of providing official services,

without reducing the quality of that

service. One measure that has proven

effective is the use of contract samplers

at outlying service points or during

periods of peak demand. By judiciously

using contract samplers, GIPSA field

offices and State cooperators have been

able to reduce their operating expenses

and, in many cases, provide quicker

service to their applicants for services.

GIPSA believes that contract inspections

may be equally beneficial in certain

situations; e.g., providing quality

inspections on an intermittent basis at

geographically isolated service points.

On January 15, 1998, GIPSA

published in the Federal Register (63

FR 2353) a proposal to amend the

regulations under the Act of 1946 to

allow GIPSA and State cooperators to

use contractors to perform specified

inspection services. The Act of 1946

provides authority to the Secretary of

Agriculture to enter into contracts and

agreements with States and agencies of

States, private firms, institutions, and

individuals for the purpose of

performing specified inspection

services. According to Section

868.1(b)(23) of the regulations, such

services may include ‘‘applying such

tests and making examinations of a

commodity and records by official

personnel as may be necessary to

determine the kind, class, grade, other

quality designation, the quantity, or

condition of commodity; performing

condition of container, carrier stowage

examination; and any other services as

related to commodities, as necessary;

and issuing an inspection certificate.’’

However, Section 868.80(a)(1) of the

regulations states that only persons

employed by a cooperator may be

licensed to inspect commodities or to

perform related services. Consequently,

GIPSA proposed to amend the

regulations to provide for GIPSA and

State cooperators to contract for quality

(grading) inspection services and to

license individual contractors and those

employed by a contractor.

Comment Review

During the 60-day comment period,

GIPSA received eight comments: One

from a Midwest bean export company;

one from a national association that

represents grain, feed, and processing

companies; one from a regional grain

exchange; one from an animal welfare

organization; and four from privatelyowned official inspection and weighing

agencies. Seven of the commenters

supported the proposed action, as

written. One commenter noted several

concerns, but did not object to the

proposed action.

Several of the commenters indicated

that private firms, institutions, and

individuals, working under contract

with GIPSA field offices and State

cooperators, would improve the

timeliness of service. One commenter

stated that allowing GIPSA to use

contractors ‘‘would eliminate time

consumed by mailing samples to the

field offices, which should result in

quicker turnaround and be more costeffective.’’ Another indicated that this

action ‘‘would greatly simplify and

speed up the process of exporting.’’
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 /Rules and Regulations 29531

The national grain industry

association commented that, ‘‘In today’s

highly competitive business

environment, it is important that all

service providers seek new ways to meet

customer needs in the most costeffective way possible. We are not

surprised to learn that GIPSA has

determined that private contractors can,

in some cases, perform inspection

services more effectively or, at least, at

less cost than traditional service

providers. For example, GIPSA reports

that the use of private contractors has

proven effective when using contract

samplers at remote service points. Also,

as GIPSA notes, the use of private

contractors can increase the flexibility

of GIPSA and State cooperators to meet

customer needs during periods of peak

demand.’’ An official agency also

commented that using contractors

would help lower the cost of providing

official services.

The animal welfare organization

indicated several concerns about any

type of inspection services which the

Government is considering contracting

out. The organization stated that it is

imperative that ‘‘All contractors,

subcontractors, and employees of either

must be properly trained and free of any

financial or other business interest in

any of the ‘commodities’ they inspect.’’

They went on to state that ‘‘Citizens

expect that the law and its regulations

will be enforced objectively, and the

inspectors will be licensed using criteria

which is designed to select only

experienced and qualified men and

women.’’ We do note that all official

inspection personnel, whether

employed by GIPSA, a cooperator, or a

contractor, will be held to the same

standards of fitness; i.e., they must be

fully trained, tested according to

established GIPSA procedures, free of

any conflicts of interest, and licensed/

authorized by GIPSA to inspect graded

commodities.

On the basis of these comments and

other available information, GIPSA has

decided to amend the regulations to

allow GIPSA and cooperators to contract

for service work and to license

individual contractors and those

employed by contractors.

Final Action

To provide for more responsive, costeffective inspection services under the

Act of 1946, GIPSA is revising:

1. Section 868.1(b)(13) to expand the

definition of contractor to provide for

cooperators to use contractors for

specified services.

2. Section 868.80(a)(1) to add

provisions for licensing individual

contractors and employees of

contractors.

List of Subjects in 7 CFR Part 868

Administrative practice and

procedure, Agricultural commodities.

For reasons set forth in the preamble,

7 CFR part 868 is amended as follows:

PART 868—GENERAL REGULATIONS

AND STANDARDS FOR CERTAIN

AGRICULTURAL COMMODITIES

1. The authority citation for Part 868

continues to read as follows:

Authority: Secs. 202–208, 60 Stat. 1087, as

amended (7 U.S.C. 1621 et seq.).

2. Section 868.1(b)(13) is revised to

read as follows:

§ 868.1 Meaning of terms.

* * * * *

(b) * * *

(13) Contractor. Any person who

enters into a contract with the Service

or with a cooperator to perform

specified inspection services.

* * * * *

3. Section 868.80(a)(1) is revised to

read as follows:

§ 868.80 Who may be licensed.

(a) Inspectors. * * *

(1) Is employed by a cooperator, is a

contractor, or is employed by a

contractor.

* * * * *

Dated: May 21, 1998.

James R. Baker,

Administrator, Grain Inspection, Packers and

Stockyards Administration.

[FR Doc. 98–14054 Filed 5–29–98; 8:45 am]

BILLING CODE 3410–EN–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[FV98–989–1 FIR]

Raisins Produced From Grapes Grown

in California; Final Free and Reserve

Percentages for 1997–98 Crop Natural

(Sun-Dried) Seedless and Zante

Currant Raisins

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting, as

a final rule, without change, the

provisions of an interim final rule

which established final volume

regulation percentages for 1997–98 crop

Natural (sun-dried) Seedless (Naturals)

and Zante Currant (Zantes) raisins

covered under the Federal marketing

order for California raisins. The order

regulates the handling of raisins

produced from grapes grown in

California and is administered locally

by the Raisin Administrative Committee

(Committee). The volume regulation

percentages are 66 percent free and 34

percent reserve for Naturals and 44

percent free and 56 percent reserve for

Zantes. Free tonnage raisins may be sold

by handlers to any market. Reserve

raisins must be held in a pool for the

account of the Committee and are

disposed of through various programs

authorized under the order. The volume

regulation percentages are intended to

help stabilize raisin supplies and prices

and strengthen market conditions.

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT:

Maureen T. Pello, Marketing Specialist,

California Marketing Field Office, Fruit

and Vegetable Programs, AMS, USDA,

2202 Monterey Street, suite 102B,

Fresno, California 93721; telephone:

(209) 487–5901, Fax: (209) 487–5906; or

George Kelhart, Technical Advisor,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, room 2525-S, P.O. Box

96456, Washington, DC 20090–6456;

telephone: (202) 720–2491, or Fax: (202)

205–6632. Small businesses may request

information on compliance with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, P.O. Box 96456, room

2525-S, Washington, DC 20090–6456;

telephone (202) 720–2491; Fax: (202)

205–6632.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 989 (7 CFR part 989),

both as amended, regulating the

handling of raisins produced from

grapes grown in California, 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 is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the order provisions now

in effect, final free and reserve

percentages may be established for

raisins acquired by handlers during the

crop year. This rule establishes final free

and reserve percentages for Natural and

Zante raisins for the 1997–98 crop year,

which began August 1, 1997, and ends

July 31, 1998. This rule will not