[Federal Register Volume 68, Number 151 (Wednesday, August 6, 2003)]
[Proposed Rules]
[Pages 46504-46505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20008]


 ========================================================================
 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. 68, No. 151 / Wednesday, August 6, 2003 / 
Proposed Rules  

[[Page 46504]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 52


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. A projected fee increase ranging from 8 to 11 
percent is proposed. 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 and to ensure the 
program's financial stability. Also affected are the fees charged to 
persons required to have inspections on imported commodities in 
accordance with the Agricultural Marketing Act of 1937.

DATES: Comments must be postmarked, courier dated, or sent via the 
Internet on or before September 5, 2003.

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, STOP 0247, Washington, DC 20250-0247, 
telephone (202) 720-4693, or e-mail [email protected]. 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/ppbdocklist.htm.

FOR FURTHER INFORMATION CONTACT: Mr. Terry B. Bane 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 to be not significant for purposes of 
Executive Order 12866 and, therefore, 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 Agency 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 November 19, 2000 (63 FR 66485). 
However, even with cost control efforts, the existing fee schedule will 
not generate sufficient revenues to cover the lot, year round, and less 
than year round processed fruit and vegetable inspection program costs 
and sustain an adequate reserve balance (4 months of costs) as called 
for by Agency policy (AMS Directive 408.1).
    AMS projects that program costs will increase to approximately 
$14.4 million in FY 2004 and $14.9 million in FY 2005, primarily from 
increases in employee salaries and benefits. An estimated 3.4 percent 
pay increase for employees effective January 2004 and January 2005 will 
increase program costs approximately $375,000 in FY 2004 and 
approximately $390,000 in FY 2005. Without a fee increase, the FY 2004 
and FY 2005 end-of-year reserve balances will decline from $4.3 million 
to $3.6 million (3.0 months reserve), and $2.4 million (1.9 months 
reserve), respectively. The required 4 month level would be 
approximately $5.0 million. The proposed fee increase ranging from 8 to 
11 percent will increase revenue by $1.3 million per year and will 
enable AMS to replenish program reserves to a 4 month level, 
approximately $5.0 million, for both FYs 2004 and 2005.
    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 $1.3 million 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, year round, and less 
than 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 rule. AMS 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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    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 (ranging from 8 to 11 percent), and should not 
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

[[Page 46505]]

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 rule would 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 AMS continues to pursue opportunities to 
reduce its costs, the existing fee schedule will not generate 
sufficient revenues to cover lot, year round, and less than year round 
inspection program costs while maintaining an adequate reserve balance.
    Based on the Agency's analysis of increasing program costs, AMS is 
proposing to increase the fees relating to lot, year round, and less 
than year round inspection services.
    AMS projects that program costs will increase to approximately 
$14.4 million in FY 2004 and $14.9 million in FY 2005, primarily from 
increases in employee salaries and benefits. An estimated 3.4 percent 
pay increase for employees effective January 2004 and January 2005 will 
increase program costs approximately $375,000 in FY 2004 and 
approximately $390,000 in FY 2005. Without a fee increase, the FY 2004 
and FY 2005 end-of-year reserve balances will decline from $4.3 million 
to $3.6 million (3.0 months reserve), and $2.4 million (1.9 months 
reserve), respectively. The required 4 month level would be 
approximately $5.0 million. The proposed fee increase ranging from 8 to 
11 percent will increase revenue by $1.3 million per year and will 
enable AMS to replenish program reserves to a 4 month level, 
approximately $5.0 million, for both FYs 2004 and 2005.
    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 Sec. Sec.  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: $47.00/hr.
Proposed: $52.00/hr.

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

Current: $47.00/hr.
Proposed: $52.00/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: $36.00/hr.
Proposed: $39.00/hr.

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

Current: $48.00/hr.
Proposed: $52.00/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: $48.00/hr.
Proposed: $52.00/hr.
    A thirty day comment period is provided for interested persons to 
comment on this proposed action. Thirty days is deemed appropriate 
because it's preferable to have any fee increase, if adopted, to be in 
place as close as possible to the beginning of the fiscal year, October 
1, 2003.

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 
proposed to 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 ``$47.00'' is revised to read 
``$52.00''.


Sec.  52.50  [Amended]

    3. In Sec.  52.50, the figure ``$47.00'' is revised to read 
``$52.00''.


Sec.  52.51  [Amended]

    4. In Sec.  52.51, paragraph (c) (1), the figure ``$36.00'' is 
revised to read ``$39.00'', in paragraph (c) (2), the figure ``$48.00'' 
is revised to read ``$52.00'', and in paragraph (d) (1), the figure 
``$48.00'' is revised to read ``$52.00''.

    Dated: July 31, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-20008 Filed 8-5-03; 8:45 am]
BILLING CODE 3410-02-P