[Federal Register Volume 59, Number 200 (Tuesday, October 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25664]


[[Page Unknown]]

[Federal Register: October 18, 1994]


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Part V





Department of Agriculture





_______________________________________________________________________



Agricultural Marketing Service



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7 CFR Part 55, et al.




Increase in Fees and Charges for Egg Products Inspection and Egg, 
Poultry, and Rabbit Grading; Final Rule
DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 55, 56, 59, and 70

[Docket No. PY-94-005]
RIN 0581-AB33

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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service (AMS) is increasing 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 are 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.

EFFECTIVE DATE: November 1, 1994.

FOR FURTHER INFORMATION CONTACT: Janice L. Lockard, Chief, 
Standardization Branch, (202) 720-3506.

SUPPLEMENTARY INFORMATION: This rule has been determined not-
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 will 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 rule 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 
that are amended 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

    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, 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 will increase 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 will increase 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 will increase from $31.44 to $33.64. The hourly rate for such 
services performed on Saturdays, Sundays, or holidays will increase 
from $32.88 to $35.52. The hourly rate for voluntary appeal gradings or 
inspections will increase from $26.64 to $27.36. The hourly rates for 
mandatory egg products inspection services will increase from $23.80 to 
$26.16 for overtime inspection and from $16.24 to $17.44 for holiday 
inspection. The hourly rate will 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 will increase from 
$200 to $215 per official plant.

Comments

    Based on analysis of costs to provide these services, a proposed 
rule to increase the fees for these services was published in the 
Federal Register (59 FR 38944) on August 1, 1994. Comments on the 
proposed rule were solicited from interested parties until August 31, 
1994.
    During the 30 day comment period, the Agency received one comment 
from a national egg industry organization in opposition to the 
proposal. It expressed a general concern about the ability of the egg 
and egg products industry to meet and maintain the continually 
increasing financial obligations of the programs now and in the years 
to come. The AMA and the EPIA authorize user fees to recover the costs 
of providing services. The overall fee structure has been designed to 
be the most equitable and reasonable method to ensure recovery of the 
costs of providing services on a nationwide basis. The timing of the 
fee increases has followed increases in Federal pay costs authorized by 
Congress. Accordingly, no changes will be made in the proposal.
    Pursuant to 5 U.S.C. 553, it is found and determined that good 
cause exists for not postponing the effective date of the action until 
30 days after publication in the Federal Register, because the fees 
need to be implemented on an expedited basis in order to minimize the 
period of time between the effective date of the Federal pay increase 
and the effective date of the fee increase. Also, the fee increase 
coincides with the next available billing cycle beginning on November 
1, 1994.

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, Title 7, Code of Federal 
Regulations, parts 55, 56, 59, and 70 is 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 therefore 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: October 11, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-25664 Filed 10-17-94; 8:45 am]
BILLING CODE 3410-02-P