[Federal Register Volume 65, Number 145 (Thursday, July 27, 2000)]
[Proposed Rules]
[Pages 46114-46115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18964]


 ========================================================================
 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. 145 / Thursday, July 27, 2000 / 
Proposed Rules  

[[Page 46114]]



DEPARTMENT OF AGRICULTURE

7 CFR Part 51

[Docket Number FV-99-302]
RIN 0581-AB63


Withdrawal of Proposed Rule for Fee Increase for Destination 
Market Inspections of Fresh Fruits, Vegetables and Other Products

AGENCY: Agricultural Marketing Service (AMS), USDA.

ACTION: Proposed rule: withdrawal.

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SUMMARY: AMS is withdrawing a proposed rule published in the Federal 
Register on September 20, 1999 (64 FR 50774). The proposed rule would 
have revised the regulations governing the inspection and certification 
for fresh fruits, vegetables and other products by increasing by 
approximately 14 percent most of the fees charged for the inspection of 
these products at destination markets. The fees for inspecting multiple 
lots of the same product during inspections would have increased more 
significantly and the per package fees for dock-side inspections would 
have increased and changed from a three interval schedule, based on 
weight, to a two interval schedule based on different weight 
thresholds. These revisions were necessary in order to recover, as 
nearly as practicable, the costs of performing inspection services at 
destination markets under the Agricultural Marketing Act of 1946 (AMA 
of 1946). The fees charged to persons required to have inspections on 
imported commodities in accordance with the Agricultural Marketing 
Agreement Act of 1937 and for imported peanuts under the Agricultural 
Act of 1949 also would have been affected.

DATES: The proposed rule is withdrawn as of July 28, 2000.

ADDRESSES: Supporting information used in developing the proposed rule, 
including comments received during the period for public comment on the 
proposed rule, are available for public inspection and copy at the 
Fresh Products Branch Docket File at USDA, AMS, FVP, Fresh Products 
Branch, Room 2049 South, USDA Stop 0240, 1400 Independence Ave., SW, 
Washington, DC 20250-0240. For access to the Docket materials, call 
(202) 720-5870 between 9 a.m. and 3:30 p.m. for an appointment. A 
reasonable fee may be charged for copying.

FOR FURTHER INFORMATION CONTACT: Rob Huttenlocker, USDA Stop 0240, 1400 
Independence Ave., SW, Washington, DC 20250-0240, or by calling (202) 
720-5870.

SUPPLEMENTARY INFORMATION: The AMA of 1946 authorizes official 
inspection, grading and certification, on a user-fee basis, of fresh 
fruits, vegetables and other products such as raw nuts, Christmas trees 
and flowers. The AMA of 1946 provides that reasonable fees be collected 
from the users of the services to cover, as nearly as practicable, the 
costs of the services rendered. The proposed rule would have amended 
the schedule for fees and charges for inspection services rendered to 
the fresh fruit and vegetable industry to reflect the costs necessary 
to operate the program.
    The Agricultural Marketing Service (AMS) regularly reviews its 
user-fee programs to determine if the fees are adequate. While the 
Fresh Products Branch (FPB) of the Fruit and Vegetable Programs, AMS, 
continues to search for opportunities to reduce its costs, the existing 
fee schedule would not have generated sufficient revenues to cover 
program costs while maintaining an adequate reserve balance. Current 
revenue projections for destination market inspection work during FY 99 
are $13.7 million with costs projected at $13.9 million and an end-of-
year reserve of $2.2 million. However, FPB's trust fund balance for 
this program will be approximately $2.4 million under the approximate 
$4.6 million deemed necessary to provide an adequate reserve balance in 
light of increasing program costs. Further, FPB's costs of operating 
the destination market program are expected to increase to 
approximately $14.5 million during FY 00 and to approximately $15.0 
million during FY 01. These cost increases will result from 
inflationary increases with regard to current FPB operations and 
services (primarily salaries and benefits), the training and equipment 
required to promote improved workplace safety, and the acquisition of 
additional computer and related technology.
    Employee salaries and benefits are major program costs that account 
for approximately 80 percent of FPB's total operating budget. A general 
and locality salary increase for Federal employees, ranging from 3.54 
to 4.02 percent depending on locality, effective January 1999, 
significantly increased program costs. In addition, inflation also 
impacts FPB's non-salary costs. These factors have increased FPB's 
costs of operating this program by approximately $500,000 per year. In 
addition, a general and locality salary increase of 4.8 percent was 
effective in January 2000. This salary adjustment will increase FPB's 
costs by over $600,000 per year.
    Additional revenues also were necessary in order for FPB to cover 
the costs of the additional staff, office space, and equipment needed 
in two federal market offices that were established during FY 99 (e.g., 
Brooklyn, New York, and Oklahoma City, Oklahoma). Additional revenues 
also were needed to cover the costs of providing safety orientation 
training to FPB's personnel and purchasing safety shoes for FPB's 
inspection personnel. Finally, FPB needed additional funds to cover the 
costs of securing the equipment (e.g., digital imaging cameras and 
computers and information systems upgrades) needed to expand FPB's 
services and to make existing services more efficient in the future.
    Congress recently passed and, on June 20, 2000, the President 
signed legislation (H.R. 2559) (Public Law 106-224), authorizing 
appropriated funds that will make it possible for FPB to build the 
Terminal Market Inspection Program's reserve fund by $29 million. 
Congress and the President also approved an additional $11.55 million 
in appropriated funds that will make it possible for FPB to implement 
infrastructure and system improvements. These funds are appropriated 
for fiscal year 2001. Since Public Law 106-224 addresses the funds 
needed by AMS, FPB program, it is unnecessary to continue this 
rulemaking. Therefore, AMS withdraws the proposed rule.

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


[[Page 46115]]


    Dated: July 21, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-18964 Filed 7-26-00; 8:45 am]
BILLING CODE 3410-02-P