[Federal Register Volume 59, Number 146 (Monday, August 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18599]


[[Page Unknown]]

[Federal Register: August 1, 1994]


                                                   VOL. 59, NO. 146

                                             Monday, August 1, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 55, 56, 59, and 70

[Docket No. PY-94-005]
RIN 0581-ABB3

 

Increase in Fees and Charges for Egg Products Inspection and Egg, 
Poultry, and Rabbit Grading

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Marketing Service (AMS) proposes to increase 
the fees and charges for Federal voluntary egg products inspection; 
voluntary egg, poultry, and rabbit grading; and overtime, holiday, and 
appeal services under mandatory egg products inspection. These fees and 
charges need to be increased to cover the increase in salaries of 
Federal employees, salary increases of State employees cooperatively 
utilized in administering the programs, and other increased Agency 
costs.

DATES: Comments must be received on or before August 31, 1994.

ADDRESSES: Send written comments, in duplicate, to Janice L. Lockard, 
Chief, Standardization Branch, Poultry Division, Agricultural Marketing 
Service, U.S. Department of Agriculture, room 3944-South, P.O. Box 
96456, Washington, DC 20090-6456. Comments received may be inspected at 
this location between 8:00 a.m. and 4:30 p.m., Eastern Time, Monday 
through Friday, except holidays. State that your comments refer to 
Docket No. PY-94-005.

FOR FURTHER INFORMATION CONTACT: Larry W. Robinson, Chief, Grading 
Branch, 202-720-3271.

SUPPLEMENTARY INFORMATION: This rule has been determined significant 
for purposes of Executive Order 12866 and has been reviewed by the 
Office of Management and Budget.
    This proposed rule has been reviewed under Executive Order 12778, 
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 which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    The AMS Administrator has determined that this proposed rule, if 
promulgated, will not have a significant economic impact on a 
substantial number of small entities, as defined by the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.), because (i) the fees and 
charges merely reflect, on a cost-per-unit-graded/inspected basis, a 
minimal increase in the costs currently borne by those entities 
utilizing the services and (ii) competitive effects are offset under 
the major voluntary programs (resident shell egg and poultry grading) 
through administrative charges based on the volume of product handled; 
i.e., the cost to users increases in proportion to increased volume.
    The information collection requirements that appear in the sections 
to be amended by the proposed rule have been previously approved by the 
Office of Management and Budget and assigned OMB Control Numbers under 
the Paperwork Reduction Act of 1980 as follows: Sec. 56.52(a)(4)--No. 
0581-0128; Sec. 59.126 and Sec. 59.128(a)--No. 0581-0113; and 
Sec. 70.77(a)(4)--No. 0581-0127.

Background and Proposed Changes

    The Agricultural Marketing Act of 1946, as amended, provides for 
the collection of fees approximately equal to the cost of providing 
voluntary egg products inspection and voluntary egg, poultry, and 
rabbit grading. Likewise, the Egg Products Inspection Act requires the 
collection of fees to cover costs of overtime, holiday, and appeal 
inspection services. Each fiscal year, these fees undergo a cost 
analysis to determine if they are adequate to recover the cost of 
providing the services.
    Grading and inspection fees were last increased effective November 
1, 1993. Since then, operating costs have increased more than expected, 
primarily due to a salary increase for Federal employees of 3.1 percent 
in January 1994. Also, the cost of life insurance, health benefits, and 
Medicare increased by about 5 percent, and salaries and fringe benefits 
of federally licensed State employees increased by about 3 percent.
    The regular hourly rate for resident voluntary grading and 
inspection service would be increased about 7 percent. Resident fees 
cover Federal and State salaries, fringe benefits, relief, and other 
service-related costs. Administrative service charges apply to the 
costs of supervision and other overhead and administrative costs and 
are assessed on each case of shell eggs and each pound of poultry 
handled in plants using resident grading service. In 1993, these unit 
rates were established at $0.034 per case of shell eggs and $0.00029 
per pound of poultry, with a minimum of $200 and maximum of $2,000 per 
monthly billing period for each official plant. The charges per case of 
shell eggs and pound of poultry would be increased to $0.036 and 
$0.00031, respectively, with a monthly minimum charge of $215 and a 
maximum of $2,150.
    The hourly rate for nonresident voluntary grading and inspection 
service would be increased from $31.44 to $33.64. The hourly rate for 
such services performed on Saturdays, Sundays, or holidays would be 
increased from $32.88 to $35.52. The hourly rate for voluntary appeal 
gradings or inspections would be increased from $26.64 to $27.36. The 
hourly rates for mandatory egg products inspection services would be 
increased from $23.80 to $26.16 for overtime inspection and from $16.24 
to $17.44 for holiday inspection. The hourly rate would also increase 
from $26.64 to $27.36 for certain mandatory appeal inspections.
    Administrative charges for resident voluntary rabbit grading, 
resident voluntary egg products inspection, and nonresident voluntary 
continuous poultry and egg grading will continue to be based on 25 
percent of the grader's or inspector's total salary costs. The minimum 
charge per monthly billing period for these programs would be increased 
from $200 to $215 per official plant.

List of Subjects

7 CFR Parts 55 and 56

    Eggs and egg products, Food grades and standards, Food labeling, 
Reporting and recordkeeping requirements.

7 CFR Part 59

    Eggs and egg products, Exports, Food grades and standards, Food 
labeling, Imports, Polychlorinated biphenyls (PCB's), Reporting and 
recordkeeping requirements.

7 CFR Part 70

    Food grades and standards, Food labeling, Poultry and poultry 
products, Rabbits and rabbit products, Reporting and recordkeeping 
requirements.

    For reasons set forth in the preamble, it is proposed that 7 CFR 
Parts 55, 56, 59, and 70 be amended as follows.

PART 55-VOLUNTARY INSPECTION OF EGG PRODUCTS AND GRADING

    1. The authority citation for Part 55 continues to read as follows:

    Authority: 7 U.S.C. 1621-1627.

    2. Section 55.510 is amended by revising paragraphs (b), (c), and 
(d) to read as follows:


Sec. 55.510  Fees and charges for services other than on a continuous 
resident basis.

* * * * *
    (b) Fees for product inspection and sampling for laboratory 
analysis will be based on the time required to perform the services. 
The hourly charge shall be $33.64 and shall include the time actually 
required to perform the sampling and inspection, waiting time, travel 
time, and any clerical costs involved in issuing a certificate.
    (c) Services rendered on Saturdays, Sundays, or legal holidays 
shall be charged for at the rate of $35.52 per hour. Information on 
legal holidays is available from the Supervisor.
    (d) The cost of an appeal grading, inspection, laboratory analysis, 
or review of a grader's or inspector's decision shall be borne by the 
appellant at an hourly rate of $27.36 for time spent performing the 
appeal and travel time to and from the site of the appeal, plus any 
additional expenses. If the appeal grading, inspection, laboratory 
analysis, or review of a grader's or inspector's decision discloses 
that a material error was made in the original determination, no fee or 
expenses will be charged.
    3. Section 55.560 is amended by revising paragraph (a)(3) to read 
as follows:


Sec. 55.560  Charges for continuous inspection and grading service on a 
resident basis.

* * * * *
    (a) * * *
    (3) An administrative service charge equal to 25 percent of the 
grader's or inspector's total salary costs. A minimum charge of $215 
will be made each billing period. The minimum charge also applies where 
an approved application is in effect and no product is handled.
* * * * *

PART 56--GRADING OF SHELL EGGS AND U.S. STANDARDS, GRADES, AND 
WEIGHT CLASSES FOR SHELL EGGS

    4. The authority citation for Part 56 continues to read as follows:

    Authority: 7 U.S.C. 1621-1627.

    5. Section 56.46 is amended by revising paragraphs (b) and (c) to 
read as follows:


Sec. 56.46  On a fee basis.

* * * * *
    (b) Fees for grading services will be based on the time required to 
perform the services. The hourly charge shall be $33.64 and shall 
include the time actually required to perform the grading, waiting 
time, travel time, and any clerical costs involved in issuing a 
certificate.
    (c) Grading services rendered on Saturdays, Sundays, or legal 
holidays shall be charged for at the rate of $35.52 per hour. 
Information on legal holidays is available from the Supervisor.
    6. Section 56.47 is revised to read as follows:


Sec. 56.47  Fees for appeal grading or review of a grader's decision.

    The cost of an appeal grading or review of a grader's decision 
shall be borne by the appellant at an hourly rate of $27.36 for the 
time spent in performing the appeal and travel time to and from the 
site of the appeal, plus any additional expenses. If the appeal grading 
or review of a grader's decision discloses that a material error was 
made in the original determination, no fee or expenses will be charged.
    7. Section 56.52 is amended by revising paragraph (a)(4) to read as 
follows:


Sec. 56.52  Continuous grading performed on a resident basis.

* * * * *
    (a) * * *
    (4) An administrative service charge based upon the aggregate 
number of 30-dozen cases of all shell eggs handled in the plant per 
billing period multiplied by $0.036, except that the minimum charge per 
billing period shall be $215 and the maximum charge shall be $2,150. 
The minimum charge also applies where an approved application is in 
effect and no product is handled.
* * * * *
    8. Section 56.54 is amended by revising paragraph (a)(2) to read as 
follows:


Sec. 56.54  Charges for continuous grading performed on a nonresident 
basis.

* * * * *
    (a) * * *
    (2) An administrative service charge equal to 25 percent of the 
grader's total salary costs. A minimum charge of $215 will be made each 
billing period. The minimum charge also applies where an approved 
application is in effect and no product is handled.
* * * * *

PART 59--INSPECTION OF EGGS AND EGG PRODUCTS (EGG PRODUCTS 
INSPECTION ACT)

    9. The authority citation for Part 59 continues to read as follows:

    Authority: 21 U.S.C. 1031-1056.

    10. Section 59.126 is revised to read as follows:


Sec. 59.126  Overtime inspection service.

    When operations in an official plant require the services of 
inspection personnel beyond their regularly assigned tour of duty on 
any day or on a day outside the established schedule, such services are 
considered as overtime work. The official plant shall give reasonable 
advance notice to the inspector of any overtime service necessary and 
shall pay the Service for such overtime at an hourly rate of $26.16 to 
cover the cost thereof.
    11. Section 59.128 is amended by revising paragraph (a) to read as 
follows:


Sec. 59.128  Holiday inspection service.

    (a) When an official plant requires inspection service on a holiday 
or a day designated in lieu of a holiday, such service is considered 
holiday work. The official plant shall, in advance of such holiday 
work, request the inspector in charge to furnish inspection service 
during such period and shall pay the Service therefor at an hourly rate 
of $17.44 to cover the cost thereof.
* * * * *
    12. Section 59.370 is amended by revising paragraph (b) to read as 
follows:


Sec. 59.370  Cost of appeals.

* * * * *
    (b) The costs of an appeal shall be borne by the appellant at an 
hourly rate of $27.36, including travel time and expenses if the appeal 
was frivolous, including but not being limited to the following: The 
appeal inspection discloses that no material error was made in the 
original inspection, the condition of the product has undergone a 
material change since the original inspection, the original lot has 
changed in some manner, or the Act or these regulations have not been 
complied with.

PART 70--VOLUNTARY GRADING OF POULTRY PRODUCTS AND RABBIT PRODUCTS 
AND U.S. CLASSES, STANDARDS, AND GRADES

    13. The authority citation for Part 70 continues to read as 
follows:

    Authority: 7 U.S.C. 1621-1627.

    14. Section 70.71 is amended by revising paragraphs (b) and (c) to 
read as follows:


Sec. 70.71  On a fee basis.

* * * * *
    (b) Fees for grading services will be based on the time required to 
perform such services for class, quality, quantity (weight test), or 
condition, whether ready-to-cook poultry, ready-to-cook rabbits, or 
specified poultry food products are involved. The hourly charge shall 
be $33.64 and shall include the time actually required to perform the 
work, waiting time, travel time, and any clerical costs involved in 
issuing a certificate.
    (c) Grading services rendered on Saturdays, Sundays, or legal 
holidays shall be charged for at the rate of $35.52 per hour. 
Information on legal holidays is available from the Supervisor.
    15. Section 70.72 is revised to read as follows:


Sec. 70.72  Fees for appeal grading, laboratory analysis, or 
examination or review of a grader's decision.

    The costs of an appeal grading, laboratory analysis, or examination 
or review of a grader's decision will be borne by the appellant at an 
hourly rate of $27.36 for the time spent in performing the appeal and 
travel time to and from the site of the appeal, plus any additional 
expenses. If the appeal grading, laboratory analysis, or examination or 
review of a grader's decision discloses that a material error was made 
in the original determination, no fee or expenses will be charged.
    16. Section 70.76 is amended by revising paragraph (a)(2) to read 
as follows:


Sec. 70.76  Charges for continuous poultry grading performed on a 
nonresident basis.

* * * * *
    (a) * * *
    (2) An administrative service charge equal to 25 percent of the 
grader's total salary costs. A minimum charge of $215 will be made each 
billing period. The minimum charge also applies where an approved 
application is in effect and no product is handled.
* * * * *
    17. Section 70.77 is amended by revising paragraphs (a)(4) and 
(a)(5) to read as follows:


Sec. 70.77  Charges for continuous poultry or rabbit grading performed 
on a resident basis.

* * * * *
    (a) * * *
    (4) For poultry grading: An administrative service charge based 
upon the aggregate weight of the total volume of all live and ready-to-
cook poultry handled in the plant per billing period computed in 
accordance with the following: Total pounds per billing period 
multiplied by $0.00031, except that the minimum charge per billing 
period shall be $215 and the maximum charge shall be $2,150. The 
minimum charge also applies where an approved application is in effect 
and no product is handled.
    (5) For rabbit grading: An administrative service charge equal to 
25 percent of the grader's total salary costs. A minimum charge of $215 
will be made each billing period. The minimum charge also applies where 
an approved application is in effect and no product is handled.
* * * * *
    Dated: July 22, 1994
Lon Hatamiya,
Administrator.
[FR Doc. 94-18599 Filed 7-29-94; 8:45 am]
BILLING CODE 3410-02-P