[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12586]


[[Page Unknown]]

[Federal Register: May 24, 1994]


                                                    VOL. 59, NO. 99

                                              Tuesday, May 24, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 52

[FV-94-327]
RIN 0581-AB16

 

Processed Fruits and Vegetables, Processed Products Thereof, and 
Certain Other Processed Food Products Regulations Governing Inspection 
and Certification\1\

AGENCY: Agricultural Marketing Service, USDA.
---------------------------------------------------------------------------

    \1\Other processed products may include the following: Honey; 
molasses, except for stockfeed; nuts and nut products, except oil; 
sugar (cane, beet, and maple); sirups (blended), sirups, except from 
grain; tea, cocoa, coffee, spices, condiments.

---------------------------------------------------------------------------
ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would revise the Regulations Governing 
Inspection and Certification of Processed Fruits and Vegetables and 
Certain Other Products by increasing the fees charged for inspection 
and by adding a section concerning cancellation of contracts. These 
amendments are necessary in order to recover, as nearly as practicable, 
the costs of performing inspection services under the Agricultural 
Marketing Act of 1946.

DATES: Comments must be received on or before: June 23, 1994.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent in duplicate to the 
Office of the Branch Chief, Processed Products Branch, Fruit and 
Vegetable Division, Agricultural Marketing Service, U.S. Department of 
Agriculture, P.O. Box 96456, Room 0709 South Building, Washington, DC 
20090-6456. Comments should note the date and page number of this issue 
of the Federal Register and will be made available for public 
inspection in the office of the Branch Chief during regular business 
hours.

FOR FURTHER INFORMATION CONTACT: Mr. James R. Rodeheaver, Processed 
Products Branch, Fruit and Vegetable Division, Agricultural Marketing 
Service, U.S. Department of Agriculture, P.O. Box 96456, Room 0709 
South Building, Washington, DC 20090-6456, Telephone (202) 720-4693.

SUPPLEMENTARY INFORMATION: This rule has been determined to be not-
significant for purposes of Executive Order 12866 and therefore has not 
been reviewed by OMB.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This action 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 which 
must be exhausted prior to any judicial challenge to the provisions of 
this rule.
    The Administrator, Agricultural Marketing Service (AMS), has 
certified that this action will not have a significant economic impact 
on a substantial number of small entities, as defined in the Regulatory 
Flexibility Act, Public Law 96-354 (5 U.S.C. 601).
    The proposed rule reflects fee increases needed to recover the 
costs of services rendered in accordance with the Agricultural 
Marketing Act (AMA) of 1946. The inspection, grading and certification 
program for processed fruits and vegetables and related products is 
voluntary.
    The AMA authorizes official inspection, grading, and certification 
on a user-fee basis, of processed food products including processed 
fruits, vegetables, and processed products made from them. The AMA 
provides that reasonable fees be collected from the user of the program 
services to cover as nearly as practicable the costs of services 
rendered. This proposal would amend the schedule of fees and charges 
for inspection, grading, and certification services to more nearly 
reflect the costs currently associated with the program. The amendment 
would include the addition of the new Section 52.47 pertaining to 
charges when service is canceled or changed in order to manage the 
program in the most cost effective manner. Former Sec. 52.47, which was 
removed, pertained to microbiological and other types of testing 
functions which were transferred to the AMS Science Division.
    AMS regularly reviews its programs to determine if fees are 
adequate. Employee salary and fringe benefits are major program costs 
that account for approximately 85 percent of the total operating 
budget. Two salary increases for Federal employees, a 3.7 percent pay 
increase effective January 10, 1993, and a locality pay increase, 
ranging from 3.09 to 6.52 percent depending upon locality, effective 
January 8, 1994, have materially affected program costs. Unemployment 
insurance, FTS 2000 telecommunications, General Services Administration 
rent, and other administrative, supervisory, and program costs have 
also increased.
    In addition, the Agricultural Appropriation Bill for fiscal year 
1994 directed AMS to establish a user fee program to recover the costs 
associated with agricultural commodities quality standards. In 
response, the service has implemented cost-cutting actions 
(reorganization and/or downsizing of field offices and technical 
support services) which reduced obligations by $569,175 from FY-92 to 
FY-93. Nonetheless, despite these measures, the Agency has determined 
that due to the increases in program operating costs, an increase in 
fees is necessary to meet rising costs and prevent financial losses.
    Based on the Agency's analysis of increased costs since 1993, AMS 
proposes to increase the fees relating to such services as shown in the 
following table. The table compares current fees and charges with 
proposed fees and charges for processed fruit and vegetable inspection 
as found in 7 CFR 52.42-52.51. For inspection services charged under 
Sec. 52.42, overtime and holiday work would continue to be charged as 
provided in that section. For inspection services charged on a contract 
basis under section 52.51 overtime work would also continue to be 
charged as provided in that section. Unless otherwise provided for by 
regulation or written agreement between the applicant and the 
Administrator, the charges in the schedule of fees as found in 
Sec. 52.42 are:

Current: $37.00/hr.
Proposed: $39.50/hr.

    Charges for travel and other expenses as found in Sec. 52.50:
Current: $37.00/hr.
Proposed: $39.50/hr.

    Charges for year-round in-plant inspection services on a contract 
basis as found in Sec. 52.51 (c):
    (1) For personnel assigned on a year-round basis:
    Each Inspector:

Current: $32.00/hr.
Proposed: $34.00/hr.

    (2) For personnel assigned on less than a year-round basis:
    Each inspector:

Current: $37.00/hr.
Proposed: $39.50/hr.

In-plant sampler: $20.00/hr.--$22.00/hr.

    Charges for less than year-round in-plant inspection services (four 
or more consecutive 40 hour weeks) on a contract basis as found in 
Sec. 52.51 (d):

Current--Proposed
(1) Each inspector: $37.00/hr.--$39.50/hr.
(2) In-plant sampler:--$20.00/hr. $22.00/hr.

List of Subjects in 7 CFR Part 52

    Food grades and standards, Food labeling, Frozen foods, Fruit 
juices, Fruits, Reporting and record keeping requirements, and 
Vegetables.

    For the reasons set forth in the preamble, 7 CFR part 52 is 
proposed to be amended as follows:

PART 52-- REGULATIONS GOVERNING INSPECTION AND CERTIFICATION OF 
PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS THEREOF, AND 
CERTAIN OTHER PROCESSED FOOD PRODUCTS

    1. The authority citation for part 52 is revised to read as 
follows:

    Authority: 7 U.S.C. 1622, 1624.

    2. Section 52.42 is revised to read as follows:


Sec. 52.42  Schedule of fees.

    Unless otherwise provided in a written agreement between the 
applicant and the Administrator, the fee for any inspection service 
performed under the regulations in this part, shall be at the rate of 
$39.50 per hour plus one-half the hourly rate per hour for all 
scheduled overtime hours. When work is performed on a holiday, an 
additional hour shall be charged at the regular hourly rate for each 
hour worked. A ten (10) percent night differential charge will be made 
for all work performed between the hours of 6 p.m. and 6 a.m.
    3. A new Sec. 52.47 is added to read as follows:


Sec. 52.47  Changing types of service.

    If an applicant cancels a new year-round contract before a full 
year has elapsed, the applicant shall be charged the difference between 
the year-round rate and less than year-round rate for the full period 
the year-round contract was in effect. If an applicant cancels a year-
round contract after a full year or more of uninterrupted service, the 
fee remains at the year-round rate.
    4. In Sec. 52.50, the 1st sentence is revised to read as follows:


Sec. 52.50  Travel and other expenses.

    Charges may be made to cover the cost of travel time incurred in 
connection with the performance of any inspection service, including 
appeal inspections, at the rate of $39.50 per hour. * * *
    5. In Sec. 52.51, paragraphs (c) (1), (c)(2), (d)(1), and (d)(2) 
are revised to read as follows:


Sec. 52.51  Charges for inspection services on a contract basis.

* * * * *
    (c) * * *
    (1) For personnel assigned on a year-round basis:

Each inspector--$34.00 per hour.
    (2) For personnel assigned on less than a year-round basis:

Each inspector--$39.50 per hour.

In-plant sampler--$22.00 per hour.
* * * * *
    (d) * * *

    (1) Each inspector--$39.50 per hour.\1\
---------------------------------------------------------------------------

    \1\Except a minimum of 8 hours per day will be billed in lieu of 
a minimum of 40 hours a week.
---------------------------------------------------------------------------

    (2) In-plant sampler--$22.00 per hour.
* * * * *
    Dated: May 16, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-12586 Filed 5-23-94; 8:45 am]
BILLING CODE 3410-02-P