[Federal Register: October 30, 2003 (Volume 68, Number 210)]
[Rules and Regulations]
[Page 61733-61734]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30oc03-1]
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Rules and Regulations
Federal Register
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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.
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[[Page 61733]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 52
Processed Fruits and Vegetables
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule revises the regulations governing inspection
and certification for processed fruits, vegetables, and processed
products made from them by a fee increase ranging from 8 to 11 percent
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 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.
EFFECTIVE DATE: October 31, 2003.
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 should be
approximately $5.0 million. The final 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 will 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 final
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 procedures which must be exhausted prior to any
judicial challenge to the provisions of this rule.
Final Action
A proposed rule was published in the Federal Register at 68 FR
46504 on August 6, 2003, providing interested persons with a thirty-day
period to comment. No comments were received.
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
[[Page 61734]]
practicable, the costs of the services rendered. This 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 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
will 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 should be
approximately $5.0 million. The final 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 will continue to be charged as provided in that section.
For inspection services charged on a contract basis under Sec.
52.51 overtime work will also continue to be charged as provided in
that section. The following fee schedule compares current fees and
charges with final 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:
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Current Final
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$47.00/hr. $52.00/hr.
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Charges for travel and other expenses as found in Sec. 52.50 are:
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Current Final
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$47.00/hr. $52.00/hr.
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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:
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Current Final
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$36.00/hr. $39.00/hr.
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(2) For inspector assigned on less than a year-round basis: Each
inspector:
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Current Final
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$48.00/hr. $52.00/hr.
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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:
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Current Final
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$48.00/hr. $52.00/hr.
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It is preferable to have the fee increase to be in place at the
beginning of the fiscal year, October 1, 2003, which is also the
beginning of a billing cycle. Further, a thirty day comment period was
provided for interested persons to comment on this proposed action. No
comments were received regarding this proposed rule.
List of Subjects in 7 CFR Part 52
Food grades and standards, Food labeling, Frozen foods, Fruit
juices, Fruits, Reporting and recordkeeping requirements, and
Vegetables.
0
For the reasons set forth in the preamble, 7 CFR part 52 is amended as
follows:
PART 52--[AMENDED]
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.
0
1. The authority citation for part 52 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
Sec. 52.42 [Amended]
0
2. In Sec. 52.42, the figure ``$47.00'' is revised to read ``$52.00''.
Sec. 52.50 [Amended]
0
3. In Sec. 52.50, the figure ``$47.00'' is revised to read ``$52.00''.
Sec. 52.51 [Amended]
0
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: October 27, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-27412 Filed 10-29-03; 8:45 am]
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