[Federal Register Volume 61, Number 252 (Tuesday, December 31, 1996)]
[Rules and Regulations]
[Pages 68997-68998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33267]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 58

[DA-96-10]
RIN 0581-AB43


Grading and Inspection, General Specifications for Approved 
Plants and Standards for Grades of Dairy Products: Revision of User 
Fees

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service is increasing the fees 
charged for services provided under the dairy inspection and grading 
program. This rule will yield an estimated $272,000 in fiscal year 
1997. The program is a voluntary, user-fee program conducted under the 
authority of the Agricultural Marketing Act of 1946, as amended. This 
action increases the hourly rate to $47.00 per hour for continuous 
resident services and $52.00 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 $57.20 per hour. 
These fees represent an increase of four dollars per hour. The fees are 
being increased to cover the costs of recent salary increases and 
locality adjustments, the costs necessary to maintain adequate levels 
of service during changing production and purchasing patterns within 
the dairy industry, the continued full funding for standardization 
activities, and other operating costs.

EFFECTIVE DATE: January 5, 1997.

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 to be not 
significant for purposes of Executive Order 12866 and has not been 
reviewed by the Office of Management and Budget.
    This final rule has been reviewed under Executive Order 12988, 
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.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) 5 U.S.C. 601 et seq., the Agricultural Marketing 
Service (AMS) has considered the economic impact of this action on 
small entities.
    There are more than 600 users of Dairy Grading Branch's inspection 
and grading services. Many of these users are small entities under the 
criteria established by the Small Business Administration (13 CFR 
121.601). This rule will raise the fee charged to businesses for 
voluntary inspection services and grading services for dairy and 
related products. Even though the fee will be raised, the increase is 
approximately 8.6 percent and will not significantly affect these 
entities. These businesses are under no obligation to use these 
services, and any decision on their part to discontinue the use of the 
services would not prevent them from marketing their products. The 
Agricultural Marketing Service (AMS) estimates that overall this rule 
will yield an additional $272,000 during fiscal year 1997. The rule 
reflects certain fee increases needed to recover the cost of inspection 
and grading services rendered in accordance with the Agricultural 
Marketing Act (AMA) of 1946.
    The Agricultural Marketing Service (AMS) has determined that this 
action will not have a significant impact on a

[[Page 68998]]

substantial number of small entities, as defined in the Regulatory 
Flexibility Act (5 U.S.C. 601).
    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 October 1, 1995. 
Since that time, Congress increased the salaries of Federal employees 
by 2.9 percent as of January 7, 1996, which included locality pay. 
Also, there have been normal increases in other nonpay operating costs 
that include utilities, office space, and reimbursable travel. In 
addition, recent congressional action may result in additional salary 
increases of 3.0 percent in 1997. Although the program's operating 
reserves were adequate to cover the January 7, 1996, salary increase, 
this will not be the case for 1997 salary increases, and a fee increase 
is needed.
    The grading program fees need to be increased to cover the costs 
associated with maintaining adequate levels of service during shifting 
production patterns within the dairy industry. The industry changes 
include plant consolidations, geographical shifts of dairy production 
areas, and changes in the types of dairy products being manufactured 
and offered for inspection and grading services. To minimize the 
necessary fee increase, the Department has initiated cost-reduction 
efforts which include the reduction of staff and program overhead.
    On November 14, 1996, the Agricultural Marketing Service published 
in the Federal Register (61 FR 58345) for public comment a document 
proposing a $4.00 increase in the hourly fee for both resident and 
nonresident programs. No comments were received.
    Pursuant to 5 U.S.C. 553, it is hereby found that good cause exists 
for not delaying the effective date of this action until 30 days after 
publication of this final rule in the Federal Register. A revenue 
shortfall warrants putting the higher rates into effect as quickly as 
possible. The increase in fees is essential for effective management 
and operation of the program and to satisfy the intent of the 
Agricultural Marketing Act of 1946. A proposed rule setting forth 
proposed fee increases was published in the Federal Register on 
November 14, 1996 (61 FR 58345). Therefore, the provisions of this 
final rule are known to interested parties.
    Accordingly, the program fees are being increased as set forth 
below.

Program Changes Adopted in the Final Rule

    This rule document makes the following changes in the regulations 
implementing the dairy inspection and grading program:
    1. Increases the hourly fee for nonresident services from $48.00 to 
$52.00 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. Increases the hourly fee for continuous resident services from 
$43.00 to $47.00. 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.

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, 7 CFR Part 58 is 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 continues to read as follows:

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

    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 $52.00 for service performed between 6:00 a.m. and 6:00 
p.m. and $57.20 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 $47.00 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: December 24, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-33267 Filed 12-30-96; 8:45 am]
BILLING CODE 3410-02-P