[Federal Register Volume 65, Number 125 (Wednesday, June 28, 2000)]
[Proposed Rules]
[Pages 39824-39825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16373]


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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. 65, No. 125 / Wednesday, June 28, 2000 / 
Proposed Rules  

[[Page 39824]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 52

[Doc. No. FV-00-326]
RIN 0581-AB85


Processed Fruits and Vegetables

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise the regulations governing 
inspection and certification for processed fruits, vegetables, and 
processed products made from them by increasing by approximately three 
to nine percent fees charged for the inspection services. 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. The fees charged to persons required to have 
inspections on imported commodities in accordance with the Agricultural 
Marketing Act of 1937 would also be affected.

DATES: Comments must be submitted on or before August 28, 2000.

ADDRESSES: Interested persons are invited to submit comments on the 
internet or written comments concerning this proposal. Comments must be 
sent in duplicate to the Office of the Branch Chief, Processed Products 
Branch, Fruit and Vegetable Programs, Agricultural Marketing Service, 
U.S. Department of Agriculture, P.O. Box 96456, Room 0709 South 
Building, Washington, DC 20090-6456. Comments should make reference to 
the date and page number of this issue of the Federal Register and will 
be made available for public inspection in the above office during 
regular business hours and on the internet at http://www.ams.usda.gov/fv/ppbdocketlist.htm.

FOR FURTHER INFORMATION CONTACT: Mr. James R. Rodeheaver at the above 
address, call (202) 720-4693, or e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been determined not significant for purposes of 
Executive Order 12866 and has not been reviewed by the Office of 
Management and Budget. Also, pursuant to the requirements of the 
Regulatory Flexibility Act (RFA), the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action on small 
entities.
    AMS regularly reviews its user fee financed programs to determine 
if the fees are adequate. The Processed Products Branch (PPB) of the 
Fruit and Vegetable Programs, AMS, has and will continue to seek out 
cost savings opportunities and implement appropriate changes to reduce 
its costs. Such actions can provide alternatives to fee increases. The 
fee schedule was last revised on October 4, 1998 (63 FR 50745). 
However, even with such efforts, the existing fee schedule will not 
generate sufficient revenues to cover lot, and year round and less than 
year round inspection program costs and sustain an adequate reserve 
balance. PPB programs for lot, year round, and less than year round 
will have obligations in FY 2000 of approximately $12.9 million, 
necessitating a reserve of $4.3 million. The current reserve is $2.6 
million. Current revenue projections for FY 2000 without a fee increase 
are $12.0 million as program costs increase to approximately $13.1 
million in FY 2001. These cost increases will result primarily from 
increases in salaries and benefits. Accounting for a significant 
portion of the total operating budget, salaries rose from 3.54 to 4.02 
percent, effective January 1999, increasing the cost of operating these 
programs by $295,000. A 4.8 percent pay increase effective January 1, 
2000, increased program costs another $385,000. The revenue 
projections, that include proposed fees, are $12.3 million for FY 2000 
and $13.5 million for FY 2001. The proposed fee increase of 
approximately 3 to 9 percent, should result in an estimated $0.3 
million during FY 2000 and an additional approximately $1.0 million in 
FY 2001 and should enable PPB to cover its costs and re-establish 
adequate program reserves.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. This action would 
increase user fee revenue generated under the lot inspection program, 
and the year round and less than year round inspection programs by 
approximately $1,020,000 annually. This action is authorized under the 
AMA of 1946 (see 7 U.S.C. 1622(h)) which provides that the Secretary of 
Agriculture assess and collect ``such fees as will be reasonable and as 
nearly as may be to cover the costs of services rendered * * *''.
    There are more than 1,250 users of PPB's lot, and less than year 
round and year round inspection services (including applicants who must 
meet import requirements \1\, inspections which amount to under 2 
percent of all lot inspections performed). A small portion of these 
users are small entities under the criteria established by the Small 
Business Administration (13 CFR 121.201). There will be no additional 
reporting, recordkeeping, or other compliance requirements imposed upon 
small entities as a result of this proposed rule.
    PPB has not identified any other federal rules which may duplicate, 
overlap or conflict with this proposed rule.
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    \1\ Section 8e of the Agricultural Marketing Agreement Act of 
1937, as amended (7 U.S.C. 601-604), requires that whenever the 
Secretary of Agriculture issues grade, size, quality or maturity 
regulations under domestic marketing orders for certain commodities, 
the same or comparable regulations on imports of those commodities 
must be issued. Import regulations apply only during those periods 
when domestic marketing order regulations are in effect.
    Currently, there are 4 processed commodities subject to 8e 
import regulations: canned ripe olives, dates, prunes, and processed 
raisins. A current listing of the regulated commodities can be found 
under 7 CFR parts 944 and 999.
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    Inspection services covered by this proposed rule are voluntary, 
except when required for certain imported commodities under 7 CFR parts 
944 and 999. The total fees charged to users of these services vary 
with usage. The impact on all businesses, including small entities, is 
very similar. Further, even though fees will be increased, the amount 
of the increase is small (three to nine percent), and should not

[[Page 39825]]

significantly affect these entities. Finally, except for those 
applicants who are required to obtain inspections in connection with 
certain imports these businesses are under no obligation to use these 
inspection services.

Executive Order 12988

    The rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have a retroactive effect 
and 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.

Proposed Action

    The AMA authorizes official inspection, grading and certification 
for processed fruits, vegetables, and processed products made from 
them. The AMA provides that the Secretary collect reasonable fees from 
the users of the services to cover, as nearly as practicable, the costs 
of the services rendered. This proposed rule will amend the schedule 
for fees for inspection services rendered to the processed fruit and 
vegetable industry to reflect the costs necessary to operate the 
program.
    AMS regularly reviews its user fee programs to determine if the 
fees are adequate. While PPB continues to pursue opportunities to 
reduce its costs, the existing fee schedule will not generate 
sufficient revenues to cover lot, and less than year round and year 
round inspection program costs while maintaining an adequate reserve 
balance.
    PPB programs for lot, year round, and less than year round will 
have obligations in FY 2000 of approximately $12.9 million, 
necessitating a reserve of $4.3 million. The current reserve is $2.6 
million. Current revenue projections for FY 2000 without a fee increase 
are $12.0 million as program costs increase to approximately $13.1 
million in FY 2001. These cost increases will result primarily from 
increases in salaries and benefits. Accounting for a significant 
portion of the total operating budget, salaries rose from 3.54 to 4.02 
percent, effective January 1999, increasing the cost of operating these 
programs by $295,000. A 4.8 percent pay increase effective January 1, 
2000, increased program costs another $385,000. The revenue 
projections, that include proposed fees, are $12.3 million for FY 2000 
and $13.5 million for FY 2001. The proposed fee increase of 
approximately 3 to 9 percent, should result in an estimated $0.3 
million during FY 2000 and an additional approximately $1.0 million in 
FY 2001 and should enable PPB to cover its costs and re-establish 
adequate program reserves.
    AMS proposes to increase the fees relating to lot inspection 
service and the fees for less than year round and year round inspection 
services. For inspection services charged under Sec. 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 
Sec. 52.51 overtime work would also continue to be charged as provided 
in that section. The following fee schedule 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. 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 
Sec. 52.42 are:

 
                          Current                             Proposed
 
$43.00/hr.................................................    $47.00/hr.
 

    Charges for travel and other expenses as found in Sec. 52.50 are:

 
                          Current                             Proposed
 
$43.00/hr.................................................    $47.00/hr.
 

    Charges for year-round in-plant inspection services on a contract 
basis as found in Sec. 52.51 (c) are:
    (1) For inspector assigned on a year-round basis:

 
                          Current                             Proposed
 
$35.00/hr.................................................    $36.00/hr.
 

    (2) For inspector assigned on less than a year-round basis: Each 
inspector:

 
                          Current                             Proposed
 
$45.00/hr.................................................    $48.00/hr.
 

    Charges for less than year-round in-plant inspection services (four 
or more consecutive 40 hour weeks) on a contract basis as found in 
Sec. 52.51 (d) are:
    (1) Each inspector:

 
                          Current                             Proposed
 
$45.00/hr.................................................    $48.00/hr.
 

List of Subjects in 7 CFR Part 52

    Food grades and standards, Food labeling, Frozen foods, Fruit 
juices, Fruits, Reporting and record keeping requirements, Vegetables.
    For the reasons set forth in the preamble, it is proposed that 7 
CFR Part 52 be amended as follows:

PART 52--[AMENDED]

    1. The authority citation for 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 ``$43.00'' is revised to read 
``$47.00''.


Sec. 52.50  [Amended]

    3. In Sec. 52.50, the figure ``$43.00'' is revised to read 
``$47.00''.


Sec. 52.51  [Amended]

    4. In Sec. 52.51, paragraph (c)(1), the figure ``$35.00'' is 
revised to read ``$36.00'', in paragraph (c)(2), the figure ``$45.00'' 
is revised to read ``$48.00'', and in paragraph (d)(1), the figure 
``$45.00'' is revised to read ``$48.00''.

    Dated: June 22, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-16373 Filed 6-27-00; 8:45 am]
BILLING CODE 3410-02-P