[Federal Register Volume 61, Number 100 (Wednesday, May 22, 1996)]
[Rules and Regulations]
[Pages 25549-25550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12835]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Rules 
and Regulations  

[[Page 25549]]



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: Final rule.

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SUMMARY: This final rule revises 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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EFFECTIVE DATE: October 6, 1996.

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 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 final 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 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. 
The final 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 final rule amends the schedule of 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.
    A notice of proposed rulemaking was published in the Federal 
Register (61 FR 9654) on March 11, 1996 with a thirty day comment 
period. The comment period closed on April 11, 1996. Interested persons 
were invited to participate in this rulemaking proceeding by submitting 
written comments on the proposal to the Agricultural Marketing Service. 
No comments were received regarding this proposed rule.
    After consideration of all relevant matter presented, this action 
makes final the changes as proposed on March 11, 1996. The changes are 
made effective October 6, 1996 to coincide with the beginning of the 
first accounting period in the 1997 fiscal year.

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 amended 
as follows:

PART 52--[AMENDED]

    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 revised to read 
``$41.00''.

[[Page 25550]]

Sec. 52.50  [Amended]

    3. In Sec. 52.50, the figure ``$39.50'' is revised to read 
``$41.00''.


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 in its 
place ``$42.00''.

    Dated: May 16, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-12835 Filed 5-21-96; 8:45 am]
BILLING CODE 3410-02-P