[Federal Register: December 26, 2002 (Volume 67, Number 248)]
[Rules and Regulations]
[Page 78665-78667]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26de02-1]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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[[Page 78665]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 56 and 70
[Docket No. PY-02-002]
RIN 0581-AC10
Increase in Fees and Charges for Egg, Poultry, and Rabbit Grading
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is increasing the
fees and charges for Federal voluntary egg, poultry, and rabbit
grading. These fees and charges are increased to cover the increase in
salaries of Federal employees, salary increases of State employees
cooperatively utilized in administering the programs, and other
increased Agency costs.
EFFECTIVE DATE: January 1, 2003.
FOR FURTHER INFORMATION CONTACT: David Bowden, Jr., Chief,
Standardization Branch, (202) 720-3506.
SUPPLEMENTARY INFORMATION:
Background
The Agricultural Marketing Act (AMA) of 1946 (7 U.S.C. 1621 et
seq.) authorizes official voluntary grading and certification on a
user-fee basis of eggs, poultry, and rabbits. The AMA provides that
reasonable fees be collected from users of the program services to
cover, as nearly as practicable, the costs of services rendered.
The AMS regularly reviews these programs to determine if fees are
adequate and if costs are reasonable. This rule will amend the schedule
for fees and charges for grading services rendered to the egg, poultry,
and rabbit industries to reflect the costs currently associated with
them.
A recent review of the current fee schedule, effective January 1,
2002, revealed that anticipated revenue would not adequately cover
increasing program costs. Costs in FY 2003 are projected at $27.2
million. Without a fee increase, FY 2003 revenues are projected at
$26.0 million and trust fund balances would be $15.2 million. With a
fee increase, FY 2003 revenues are projected at $27.2 million and trust
fund balances would remain at $16.4 million.
Employee salaries and benefits account for approximately 82 percent
of the total operating budget. The last general and locality salary
increase for Federal employees became effective on January 1, 2002 and
it materially affected program costs. Projected cost estimates for that
increase were based on a salary increase of 3.6 percent, however, the
increase was actually 4.52 to 5.42 percent, depending on locality.
Another general and locality salary increase estimated at 2.6 percent
is expected in January 2003. Also, from October 2001 through September
2003, salaries and fringe benefits of federally-licensed State
employees will have increased by about 6 percent.
The impact of these cost increases was determined for resident,
nonresident, and fee services. To offset projected cost increases, the
hourly resident and nonresident rate will be increased by approximately
5.8 percent and the fee rate will be increased by approximately 6
percent. The hourly rate for resident and nonresident service covers
graders' salaries and benefits. The hourly rate for fee service covers
graders' salaries and benefits, plus the cost of travel and
supervision.
Administrative charges that cover the cost of supervision for
resident poultry and shell egg grading will also be increased as shown
in the table below. Administrative charges for resident rabbit grading
and nonresident services will not be changed.
The following table compares current fees and charges with proposed
fees and charges for egg, poultry, and rabbit grading as found in 7 CFR
parts 56 and 70:
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Service Current Proposed
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Resident Service (egg, poultry, rabbit grading)
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Inauguration of service..................................................... $310 $310
Hourly charges: Regular hours............................................... 31.52 33.36
Administrative charges--Poultry grading:
Per pound of poultry.................................................... .00036 .00037
Minimum per month....................................................... 250 260
Maximum per month....................................................... 2,650 2,675
Administrative charges--Shell egg grading:
Per 30-dozen case of shell eggs......................................... .046 .048
Minimum per month....................................................... 250 260
Maximum per month....................................................... 2,650 2,675
Administrative charges--Rabbit grading: Based on 25 % of grader's salary, 260 260
minimum per month..........................................................
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Nonresident Service (egg, poultry grading)
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Hourly charges: Regular hours............................................... 31.52 33.36
Administrative charges: Based on 25 % of grader's salary, minimum per month. 260 260
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Fee and Appeal Service (egg, poultry, rabbit grading)
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Hourly charges:
[[Page 78666]]
Regular hours........................................................... 54.40 57.68
Weekend and holiday hours............................................... 62.76 66.64
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Comments
Based on the analysis of costs to provide these services, a
proposed rule to increase the fees for these services was published in
the Federal Register (67 FR 48816) on July 26, 2002. Comments on the
proposed rule were solicited from interested parties until August 26.
No comments were received. The Agency will implement these increases,
as proposed, to ensure the financial stability of its grading programs.
Executive Order 12866
This action 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 (OMB).
Regulatory Flexibility
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA)(5 U.S.C. 601 et seq.), the AMS has considered the
economic impact of this action on small entities. It is determined that
its provisions will not have a significant economic impact on a
substantial number of small entities.
There are about 400 users of Poultry Programs' grading services.
These official plants can pack eggs, poultry, and rabbits in packages
bearing the USDA grade shield when AMS graders are present to certify
that the products meet the grade requirements as labeled. Many of these
users are small entities under the criteria established by the Small
Business Administration (13 CFR 121.201). These entities are under no
obligation to use grading services as authorized under the Agricultural
Marketing Act of 1946.
The AMS regularly reviews its user fee financed programs to
determine if fees are adequate and if costs are reasonable. A recent
review determined that the existing fee schedule, effective January 1,
2002, will not generate sufficient revenues to cover program costs
while maintaining an adequate reserve balance in FY 2003. Costs in FY
2003 are projected at $27.2 million. Without a fee increase, FY 2003
revenues are projected at $26.0 million and trust fund balances would
be $15.2 million. With a fee increase, FY 2003 revenues are projected
at $27.2 million and trust fund balances would remain at $16.4 million.
This action will raise the fees charged to users of grading
services. The AMS estimates that overall, this rule would yield an
additional $1.2 million during FY 2003. The hourly rate for resident
and nonresident service will increase by approximately 5.8 percent and
the fee rate will increase by approximately 6 percent. The impact of
these rate changes in a poultry plant will range from less than 0.007
to 0.037 cents per pound of poultry handled. In a shell egg plant, the
range will be less than 0.021 to 0.036 cents per dozen eggs handled.
Civil Justice Reform
This action has been reviewed under Executive Order 12988, Civil
Justice Reform. This action is not intended to have retroactive effect.
This rule 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.
Paperwork Reduction
The information collection requirements that appear in the sections
to be amended by this action have been previously approved by OMB and
assigned OMB Control Numbers under the Paperwork Reduction Act (44
U.S.C. Chapter 35) as follows: Sec. 56.52(a)(4)--No. 0581-0128; and
Sec. 70.77(a)(4)--No. 0581-0127.
Pursuant to 5 U.S.C. 553, it is found and determined that good
cause exists for not postponing the effective date of this action until
30 days after publication in the Federal Register. The revised fees
need to be implemented on an expedite basis in order to avoid further
financial losses in the grading program. The effective date of the fee
increase will be set to coincide with the billing cycle that begins on
the first day of the first month after date of publication in the
Federal Register.
List of Subjects
7 CFR Part 56
Eggs and egg products, Food grades and standards, Food labeling,
Reporting and recordkeeping requirements.
7 CFR Part 70
Food grades and standards, Food labeling, Poultry and poultry
products, Rabbits and rabbit products, Reporting and recordkeeping
requirements.
For reasons set forth in the preamble, Title 7, Code of Federal
Regulations, parts 56 and 70 are amended as follows:
PART 56--GRADING OF SHELL EGGS
1. The authority citation for part 56 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
2. Section 56.46 is revised to read as follows:
Sec. 56.46 On a fee basis.
(a) Unless otherwise provided in this part, the fees to be charged
and collected for any service performed, in accordance with this part,
on a fee basis shall be based on the applicable rates specified in this
section.
(b) Fees for grading services will be based on the time required to
perform the services. The hourly charge shall be $57.68 and shall
include the time actually required to perform the grading, waiting
time, travel time, and any clerical costs involved in issuing a
certificate.
(c) Grading services rendered on Saturdays, Sundays, or legal
holidays shall be charged for at the rate of $66.64 per hour.
Information on legal holidays is available from the Supervisor.
3. In Sec. 56.52, paragraph (a)(4) is revised to read as follows:
Sec. 56.52 Continuous grading performed on resident basis.
* * * * *
(a) * * *
(4) An administrative service charge based upon the aggregate
number of 30-dozen cases of all shell eggs handled in the plant per
billing period multiplied by $0.048, except that the minimum charge per
billing period shall be $260 and the maximum charge shall be $2,675.
The minimum charge also applies where an approved application is in
effect and no product is handled.
* * * * *
PART 70--VOLUNTARY GRADING OF POULTRY PRODUCTS AND RABBIT PRODUCTS
4. The authority citation for part 70 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
5. Section 70.71 is revised to read as follows:
[[Page 78667]]
Sec. 70.71 On a fee basis.
(a) Unless otherwise provided in this part, the fees to be charged
and collected for any service performed, in accordance with this part,
on a fee basis shall be based on the applicable rates specified in this
section.
(b) Fees for grading services will be based on the time required to
perform such services for class, quality, quantity (weight test), or
condition, whether ready-to-cook poultry, ready-to-cook rabbits, or
specified poultry food products are involved. The hourly charge shall
be $57.68 and shall include the time actually required to perform the
work, waiting time, travel time, and any clerical costs involved in
issuing a certificate.
(c) Grading services rendered on Saturdays, Sundays, or legal
holidays shall be charged for at the rate of $66.64 per hour.
Information on legal holidays is available from the Supervisor.
6. In Sec. 70.77, paragraph (a)(4) is revised to read as follows:
Sec. 70.77 Charges for continuous poultry or rabbit grading performed
on a resident basis.
* * * * *
(a) * * *
(4) For poultry grading: An administrative service charge based
upon the aggregate weight of the total volume of all live and ready-to-
cook poultry handled in the plant per billing period computed in
accordance with the following: Total pounds per billing period
multiplied by $0.00037, except that the minimum charge per billing
period shall be $260 and the maximum charge shall be $2,675. The
minimum charge also applies where an approved application is in effect
and no product is handled.
* * * * *
Dated: December 19, 2002.
A. J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-32504 Filed 12-24-02; 8:45 am]
BILLING CODE 3410-02-P