[Federal Register: August 6, 2003 (Volume 68, Number 151)]
[Proposed Rules]
[Page 46504-46505]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06au03-30]
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Proposed Rules
Federal Register
________________________________________________________________________
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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[[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 Terry.Bane@usda.gov. 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 Terry.Bane@usda.gov.
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