[Federal Register Volume 60, Number 151 (Monday, August 7, 1995)]
[Proposed Rules]
[Pages 40115-40116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19331]



      
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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 60, No. 151 / Monday, August 7, 1995 / 
Proposed Rules  


[[Page 40115]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 58

[DA-95-17]
RIN 0581-AB40


Grading and Inspection, General Specifications for Approved 
Plants and Standards for Grades of Dairy Products; Proposed Increase in 
Fees

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Marketing Service proposes to increase the 
fees charged for services provided under the dairy inspection and 
grading program. The program is a voluntary, user-fee program conducted 
under the authority of the Agricultural Marketing Act of 1946, as 
amended. The proposed increases would result in a fee of $43.00 per 
hour for continuous resident services and $48.00 per hour for 
nonresident services between the hours of 6:00 a.m. and 6:00 p.m. The 
fee for nonresident services between the hours of 6:00 p.m. and 6:00 
a.m. would be $52.80 per hour. These proposed fees represent an 
increase of 80 cents per hour.
    The fees are being increased to cover the costs of recent salary 
increases and locality adjustments, the full funding for 
standardization activities, and normal inflationary pressures.

DATES: Comments should be mailed by September 6, 1995.

ADDRESSES: Comments should be sent to: Office of the Director, USDA/
AMS/Dairy Division, Room 2968-S, P.O. Box 96456, Washington, D.C. 
20090-6456. Comments received will be available for public inspection 
at this location during regular business hours.

FOR FURTHER INFORMATION CONTACT: Lynn G. Boerger, USDA/AMS/Dairy 
Division, Dairy Grading Branch, Room 2750-South Building, P.O. Box 
96456, Washington, D.C. 20090-6456, (202)720-9381.

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. This rule is not intended to have preemptive 
effect with respect to any State or local laws, regulations or 
policies. This rule is not intended to have retroactive effect. There 
are no administrative procedures which must be exhausted prior to any 
judicial challenge to this rule or the application of its provisions.
    The proposed rule also has been reviewed in accordance with the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., and the 
Administrator, Agricultural Marketing Service, has determined that the 
proposed rule, if promulgated, would not have a significant economic 
impact on a substantial number of small entities. The proposed changes 
will not significantly affect the cost per unit for grading and 
inspection services. The Agricultural Marketing Service estimates that 
overall this rule will yield an additional $87,000 during fiscal year 
1996. The Agency does not believe the increases will affect 
competition. Furthermore, the dairy grading program is a voluntary 
program.
    The Agricultural Marketing Act of 1946, as amended, authorizes the 
Secretary of Agriculture to provide Federal dairy grading and 
inspection services that facilitate marketing and help consumers obtain 
the quality of dairy products they desire. The Act provides that 
reasonable fees be collected from the users of the services to cover, 
as nearly as practicable, the cost of maintaining the program.
    Since the costs of the grading program are covered entirely by user 
fees, it is essential that fees be increased when necessary to cover 
the cost of maintaining a financially self-supporting program. The last 
fee increase under this program became effective on February 9, 1994. 
Since that time, Congress increased the salaries of Federal employees 
by 2.6 percent as of January 8, 1995, which included locality pay. 
Also, there have been normal increases in other operating costs. In 
addition, recent congressional action may result in additional salary 
increases of 2.4 percent in 1996. Although the program's operating 
reserves were adequate to cover the January 8, 1995, salary increase, 
this will not be the case for 1996 salary increases, and a fee increase 
is needed.
    The grading program fees also need to be increased to cover the 
remaining costs related to the development of dairy product standards 
and other activities now performed by the Dairy Division's 
Standardization Branch. In FY 1994 Congress appropriated money for the 
development of standards by the Agricultural Marketing Service but at 
the same time stipulated that the program costs be recovered through 
user fees, with the fees being turned over to the U.S. Treasury. The 
fee increase which took effect on February 9, 1994, provided for \2/3\ 
of the cost of that program. Since the dairy standardization program is 
an essential part of the dairy grading program, it is appropriate that 
all of the standardization program costs be recovered through the fees 
charged the users of the grading program. The projected cost of the 
dairy standardization program for FY 1996 is $440,000.

Proposed Changes

    This rule proposes the following changes in the regulations 
implementing the dairy inspection and grading program:
    1. Increase the hourly fee for nonresident services from $47.20 to 
$48.00 for services performed between 6:00 a.m. and 6:00 p.m. The 
nonresident hourly rate is charged to users who request an inspector or 
grader for particular dates and amounts of time to perform specific 
grading and inspection activities. These users of nonresident services 
are charged for the amount of time required to perform the task and 
undertake related travel plus travel costs.
    2. Increase the hourly fee for continuous resident services from 
$42.20 to $43.00. The resident hourly rate is charged to those who are 
using grading and inspection services performed by an inspector or 
grader assigned to a plant on a continuous, year-round resident basis.
Timing of Fee Increase

    It is contemplated that the proposed fee increases would be 
implemented on 

[[Page 40116]]
an expedited basis in order to minimize the period of revenue 
shortfall. Accordingly, it is anticipated that the fee increases, if 
adopted, would become effective upon publication, or very soon after 
publication, of the final rule in the Federal Register and that 
delaying the effective date of the final rule until 30 days after 
publication in the Federal Register would not occur. An approximate 
effective date would be October 1, 1996.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
business hours.

List of Subjects in 7 CFR Part 58

    Dairy products, Food grades and standards, Food labeling, Reporting 
and recordkeeping requirements.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR Part 58 be amended as follows:

PART 58--GRADING AND INSPECTION, GENERAL SPECIFICATIONS FOR 
APPROVED PLANTS AND STANDARDS FOR GRADES OF DAIRY PRODUCTS

    1. The authority citation for part 58 is revised to read as 
follows:

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

Subpart A--[Amended]

    2. Section 58.43 is revised to read as follows:


Sec. 58.43  Fees for inspection, grading, and sampling.

    Except as otherwise provided in Secs. 58.38 through 58.46, charges 
shall be made for inspection, grading, and sampling service at the 
hourly rate of $48.00 for service performed between 6:00 a.m. and 6:00 
p.m. and $52.80 for service performed between 6:00 p.m. and 6:00 a.m., 
for the time required to perform the service calculated to the nearest 
15-minute period, including the time required for preparation of 
certificates and reports and the travel time of the inspector or grader 
in connection with the performance of the service. A minimum charge of 
one-half hour shall be made for service pursuant to each request or 
certificate issued.
    3. Section 58.45 is revised to read as follows:


Sec. 58.45  Fees for continuous resident services.

    Irrespective of the fees and charges provided in Secs. 58.39 and 
58.43, charges for the inspector(s) and grader(s) assigned to a 
continuous resident program shall be made at the rate of $43.00 per 
hour for services performed during the assigned tour of duty. Charges 
for service performed in excess of the assigned tour of duty shall be 
made at a rate of 1\1/2\ times the rate stated in this section.

    Dated: July 31, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-19331 Filed 8-4-95; 8:45 am]
BILLING CODE 3410-02-P