[Federal Register Volume 61, Number 48 (Monday, March 11, 1996)]
[Proposed Rules]
[Pages 9654-9655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5715]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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. 61, No. 48 / Monday, March 11, 1996 / 
Proposed Rules  

[[Page 9654]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 52

[FV-96-326]


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

AGENCY : Agricultural Marketing Service, USDA.

ACTION : Proposed rule.

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SUMMARY: This document would revise the Regulations Governing 
Inspection and Certification of Processed Fruits and Vegetables and 
Certain Other Products \1\ by increasing the lot inspection and less 
than year round fees charged for the inspection of processed fruits and 
vegetables and certain other products. These revisions are necessary in 
order to recover, as nearly as practicable, the costs of performing 
inspection services under the Agricultural Marketing Act of 1946.

    \1\ 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.
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DATES: Comments must be received on or before April 10, 1996.

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, D.C. 
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, 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, D.C. 20090-6456, Telephone (202) 720-
4693.

SUPPLEMENTARY INFORMATION: This proposed rule has been determined to be 
not significant for purposes of Executive Order 12866, and therefore 
has not been reviewed by the Office of Management and Budget.
    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, P.L. 96-354 (5 U.S.C. 601).
    The proposed rule reflects certain 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 voluntary 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 for fees and 
charges for lot inspection and less than year round inspection services 
rendered to the processed fruit and vegetable industry to reflect the 
costs currently associated with the program.
    AMS regularly reviews these programs to determine if fees are 
adequate. Employee salary and benefits are major program costs that 
account for approximately 85 percent of the total operating budget. A 
general and locality salary increase for Federal employees, ranging 
from 3.09 to 6.25 percent depending on locality, effective January 
1995, has materially affected program costs. Another general and 
locality salary increase, ranging from 2.39 to 2.87 percent depending 
upon locality (amounting to approximately $625,000), was effective 
January 1996; further standardization program costs, previously funded 
by appropriated funds, must be paid for by user fees.
    While a concerted effort to cut costs resulted in overhead savings 
of $623,926 in FY95 over FY94, the last fee increase in August 1994 did 
not result in collection of enough revenue to cover all these increases 
and still maintain an adequate reserve balance (four months of costs) 
called for by Agency policy and prudent financial management. Currently 
the Processed Products Branch (PPB) trust fund reserve balance for all 
programs is approximately $1.480 mil. under the desirable level of 
$11.031. Further action is necessary to meet rising costs and maintain 
adequate reserve balances. This action will assist in moving the PPB 
trust fund toward a more adequate level and will result in an estimated 
$368,000 in additional revenues. Projected FY96 revenues for the lot 
inspection and less than year round inspection programs are $8.291 mil. 
with costs projected at $8.194 and a reserve of $2.682.
    Based on the Agency's analysis of increased costs since 1994, 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 
section 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 section 
52.42 are:

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                  Current                             Proposed          
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$39.50/hr.................................  $41.00/hr.                  
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[[Page 9655]]


    Charges for travel and other expenses as found in section 52.50:

------------------------------------------------------------------------
                  Current                             Proposed          
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$39.50/hr.................................  $41.00/hr.                  
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    Charges for year-round in-plant inspection services on a contract 
basis as found in section 52.51 (c):
    (2) For personnel assigned on less than a year-round basis:

------------------------------------------------------------------------
                  Current                             Proposed          
------------------------------------------------------------------------
Each inspector:                                                         
$39.50/hr.................................  $42.00/hr.                  
In-plant sampler:                                                       
$22.00/hr.................................  $22.00/hr.                  
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    Charges for less than year-round in-plant inspection services (four 
or more consecutive 40 hour weeks) on a contract basis as found in 
section 52.51 (d):

------------------------------------------------------------------------
                  Current                             Proposed          
------------------------------------------------------------------------
(1) Each inspector:                                                     
$39.50/hr.................................  $42.00/hr.                  
(2) In-plant sampler:                                                   
$22.00/hr.................................  $22.00/hr.                  
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List of Subjects in 7 CFR Part 52

    Food grades and standards, Food labeling, Frozen foods, Fruit 
juices, Fruits, Reporting and recordkeeping requirements, 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\

    \1\ 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.
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    1. The authority citation for 7 CFR Part 52 continues to read as 
follows:

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


Sec. 52.42  [Amended]

    2. In Sec. 52.42, the figure ``$39.50'' is removed and the figure 
``$41.00'' is added in its place.


Sec. 52.50  [Amended]

    3. In Sec. 52.50, the figure ``$39.50'' is removed and the figure 
``$41.00'' is added in its place.


Sec. 52.51  [Amended]

    4. In Sec. 52.51, paragraph (c)(2) is amended by removing the 
figure ``$39.50'' and adding in its place ``$42.00'' and paragraph 
(d)(1) is amended by removing the figure ``$39.50'' and adding the 
figure ``$42.00'' in its place.

    Dated: February 29, 1996.
David N. Lewis,
Acting Administrator.
[FR Doc. 96-5715 Filed 3-8-96; 8:45 am]
BILLING CODE 3410-02-P