[Federal Register Volume 59, Number 200 (Tuesday, October 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25664]
[[Page Unknown]]
[Federal Register: October 18, 1994]
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Part V
Department of Agriculture
_______________________________________________________________________
Agricultural Marketing Service
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7 CFR Part 55, et al.
Increase in Fees and Charges for Egg Products Inspection and Egg,
Poultry, and Rabbit Grading; Final Rule
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 55, 56, 59, and 70
[Docket No. PY-94-005]
RIN 0581-AB33
Increase in Fees and Charges for Egg Products Inspection and 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 products inspection;
voluntary egg, poultry, and rabbit grading; and overtime, holiday, and
appeal services under mandatory egg products inspection. 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: November 1, 1994.
FOR FURTHER INFORMATION CONTACT: Janice L. Lockard, Chief,
Standardization Branch, (202) 720-3506.
SUPPLEMENTARY INFORMATION: This rule has been determined not-
significant for purposes of Executive Order 12866 and has been reviewed
by the Office of Management and Budget.
This proposed rule has been reviewed under Executive Order 12778,
Civil Justice Reform. It 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.
The AMS Administrator has determined that this rule will not have a
significant economic impact on a substantial number of small entities,
as defined by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.),
because (i) the fees and charges merely reflect, on a cost-per-unit-
graded/inspected basis, a minimal increase in the costs currently borne
by those entities utilizing the services and (ii) competitive effects
are offset under the major voluntary programs (resident shell egg and
poultry grading) through administrative charges based on the volume of
product handled; i.e., the cost to users increases in proportion to
increased volume.
The information collection requirements that appear in the sections
that are amended have been previously approved by the Office of
Management and Budget and assigned OMB Control Numbers under the
Paperwork Reduction Act of 1980 as follows: Sec. 56.52(a)(4)--No. 0581-
0128; Sec. 59.126 and Sec. 59.128(a)--No. 0581-0113; and
Sec. 70.77(a)(4)--No. 0581-0127.
Background
The Agricultural Marketing Act of 1946, as amended, provides for
the collection of fees approximately equal to the cost of providing
voluntary egg products inspection and voluntary egg, poultry, and
rabbit grading. Likewise, the Egg Products Inspection Act requires the
collection of fees to cover costs of overtime, holiday, and appeal
inspection services. Each fiscal year, these fees undergo a cost
analysis to determine if they are adequate to recover the cost of
providing the services.
Grading and inspection fees were last increased effective November
1, 1993. Since then, operating costs have increased, primarily due to a
salary increase for Federal employees of 3.1 percent in January 1994.
Also, the cost of life insurance, health benefits, and Medicare
increased by about 5 percent, and salaries and fringe benefits of
federally licensed State employees increased by about 3 percent.
The regular hourly rate for resident voluntary grading and
inspection service will increase about 7 percent. Resident fees cover
Federal and State salaries, fringe benefits, relief, and other service-
related costs. Administrative service charges apply to the costs of
supervision and other overhead and administrative costs and are
assessed on each case of shell eggs and each pound of poultry handled
in plants using resident grading service. In 1993, these unit rates
were established at $0.034 per case of shell eggs and $0.00029 per
pound of poultry, with a minimum of $200 and maximum of $2,000 per
monthly billing period for each official plant. The charges per case of
shell eggs and pound of poultry will increase to $0.036 and $0.00031,
respectively, with a monthly minimum charge of $215 and a maximum of
$2,150.
The hourly rate for nonresident voluntary grading and inspection
service will increase from $31.44 to $33.64. The hourly rate for such
services performed on Saturdays, Sundays, or holidays will increase
from $32.88 to $35.52. The hourly rate for voluntary appeal gradings or
inspections will increase from $26.64 to $27.36. The hourly rates for
mandatory egg products inspection services will increase from $23.80 to
$26.16 for overtime inspection and from $16.24 to $17.44 for holiday
inspection. The hourly rate will also increase from $26.64 to $27.36
for certain mandatory appeal inspections.
Administrative charges for resident voluntary rabbit grading,
resident voluntary egg products inspection, and nonresident voluntary
continuous poultry and egg grading will continue to be based on 25
percent of the grader's or inspector's total salary costs. The minimum
charge per monthly billing period for these programs will increase from
$200 to $215 per official plant.
Comments
Based on analysis of costs to provide these services, a proposed
rule to increase the fees for these services was published in the
Federal Register (59 FR 38944) on August 1, 1994. Comments on the
proposed rule were solicited from interested parties until August 31,
1994.
During the 30 day comment period, the Agency received one comment
from a national egg industry organization in opposition to the
proposal. It expressed a general concern about the ability of the egg
and egg products industry to meet and maintain the continually
increasing financial obligations of the programs now and in the years
to come. The AMA and the EPIA authorize user fees to recover the costs
of providing services. The overall fee structure has been designed to
be the most equitable and reasonable method to ensure recovery of the
costs of providing services on a nationwide basis. The timing of the
fee increases has followed increases in Federal pay costs authorized by
Congress. Accordingly, no changes will be made in the proposal.
Pursuant to 5 U.S.C. 553, it is found and determined that good
cause exists for not postponing the effective date of the action until
30 days after publication in the Federal Register, because the fees
need to be implemented on an expedited basis in order to minimize the
period of time between the effective date of the Federal pay increase
and the effective date of the fee increase. Also, the fee increase
coincides with the next available billing cycle beginning on November
1, 1994.
List of Subjects
7 CFR Parts 55 and 56
Eggs and egg products, Food grades and standards, Food labeling,
Reporting and recordkeeping requirements.
7 CFR Part 59
Eggs and egg products, Exports, Food grades and standards, Food
labeling, Imports, Polychlorinated biphenyls (PCB's), 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 55, 56, 59, and 70 is amended as follows.
PART 55--VOLUNTARY INSPECTION OF EGG PRODUCTS AND GRADING
1. The authority citation for Part 55 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
2. Section 55.510 is amended by revising paragraphs (b), (c), and
(d) to read as follows:
Sec. 55.510 Fees and charges for services other than on a continuous
resident basis.
* * * * *
(b) Fees for product inspection and sampling for laboratory
analysis will be based on the time required to perform the services.
The hourly charge shall be $33.64 and shall include the time actually
required to perform the sampling and inspection, waiting time, travel
time, and any clerical costs involved in issuing a certificate.
(c) Services rendered on Saturdays, Sundays, or legal holidays
shall be charged for at the rate of $35.52 per hour. Information on
legal holidays is available from the Supervisor.
(d) The cost of an appeal grading, inspection, laboratory analysis,
or review of a grader's or inspector's decision shall be borne by the
appellant at an hourly rate of $27.36 for time spent performing the
appeal and travel time to and from the site of the appeal, plus any
additional expenses. If the appeal grading, inspection, laboratory
analysis, or review of a grader's or inspector's decision discloses
that a material error was made in the original determination, no fee or
expenses will be charged.
3. Section 55.560 is amended by revising paragraph (a)(3) to read
as follows:
Sec. 55.560 Charges for continuous inspection and grading service on a
resident basis.
* * * * *
(a) * * *
(3) An administrative service charge equal to 25 percent of the
grader's or inspector's total salary costs. A minimum charge of $215
will be made each billing period. The minimum charge also applies where
an approved application is in effect and no product is handled.
* * * * *
PART 56--GRADING OF SHELL EGGS AND U.S. STANDARDS, GRADES, AND
WEIGHT CLASSES FOR SHELL EGGS
4. The authority citation for Part 56 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
5. Section 56.46 is amended by revising paragraphs (b) and (c) to
read as follows:
Sec. 56.46 On a fee basis.
* * * * *
(b) Fees for grading services will be based on the time required to
perform the services. The hourly charge shall be $33.64 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 $35.52 per hour.
Information on legal holidays is available from the Supervisor.
6. Section 56.47 is revised to read as follows:
Sec. 56.47 Fees for appeal grading or review of a grader's decision.
The cost of an appeal grading or review of a grader's decision
shall be borne by the appellant at an hourly rate of $27.36 for the
time spent in performing the appeal and travel time to and from the
site of the appeal, plus any additional expenses. If the appeal grading
or review of a grader's decision discloses that a material error was
made in the original determination, no fee or expenses will be charged.
7. Section 56.52 is amended by revising paragraph (a)(4) to read as
follows:
Sec. 56.52 Continuous grading performed on a 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 $0.036, except that the minimum charge per
billing period shall be $215 and the maximum charge shall be $2,150.
The minimum charge also applies where an approved application is in
effect and no product is handled.
* * * * *
8. Section 56.54 is amended by revising paragraph (a)(2) to read as
follows:
Sec. 56.54 Charges for continuous grading performed on a nonresident
basis.
* * * * *
(a) * * *
(2) An administrative service charge equal to 25 percent of the
grader's total salary costs. A minimum charge of $215 will be made each
billing period. The minimum charge also applies where an approved
application is in effect and no product is handled.
* * * * *
PART 59--INSPECTION OF EGGS AND EGG PRODUCTS (EGG PRODUCTS
INSPECTION ACT)
9. The authority citation for Part 59 continues to read as follows:
Authority: 21 U.S.C. 1031-1056.
10. Section 59.126 is revised to read as follows:
Sec. 59.126 Overtime inspection service.
When operations in an official plant require the services of
inspection personnel beyond their regularly assigned tour of duty on
any day or on a day outside the established schedule, such services are
considered as overtime work. The official plant shall give reasonable
advance notice to the inspector of any overtime service necessary and
shall pay the Service for such overtime at an hourly rate of $26.16 to
cover the cost thereof.
11. Section 59.128 is amended by revising paragraph (a) to read as
follows:
Sec. 59.128 Holiday inspection service.
(a) When an official plant requires inspection service on a holiday
or a day designated in lieu of a holiday, such service is considered
holiday work. The official plant shall, in advance of such holiday
work, request the inspector in charge to furnish inspection service
during such period and shall pay the Service therefore at an hourly
rate of $17.44 to cover the cost thereof.
* * * * *
12. Section 59.370 is amended by revising paragraph (b) to read as
follows:
Sec. 59.370 Cost of appeals.
* * * * *
(b) The costs of an appeal shall be borne by the appellant at an
hourly rate of $27.36, including travel time and expenses if the appeal
was frivolous, including but not being limited to the following: The
appeal inspection discloses that no material error was made in the
original inspection, the condition of the product has undergone a
material change since the original inspection, the original lot has
changed in some manner, or the Act or these regulations have not been
complied with.
PART 70--VOLUNTARY GRADING OF POULTRY PRODUCTS AND RABBIT PRODUCTS
AND U.S. CLASSES, STANDARDS, AND GRADES
13. The authority citation for Part 70 continues to read as
follows:
Authority: 7 U.S.C. 1621-1627.
14. Section 70.71 is amended by revising paragraphs (b) and (c) to
read as follows:
Sec. 70.71 On a fee basis.
* * * * *
(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 $33.64 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 $35.52 per hour.
Information on legal holidays is available from the Supervisor.
15. Section 70.72 is revised to read as follows:
Sec. 70.72 Fees for appeal grading, laboratory analysis, or
examination or review of a grader's decision.
The costs of an appeal grading, laboratory analysis, or examination
or review of a grader's decision will be borne by the appellant at an
hourly rate of $27.36 for the time spent in performing the appeal and
travel time to and from the site of the appeal, plus any additional
expenses. If the appeal grading, laboratory analysis, or examination or
review of a grader's decision discloses that a material error was made
in the original determination, no fee or expenses will be charged.
16. Section 70.76 is amended by revising paragraph (a)(2) to read
as follows:
Sec. 70.76 Charges for continuous poultry grading performed on a
nonresident basis.
* * * * *
(a) * * *
(2) An administrative service charge equal to 25 percent of the
grader's total salary costs. A minimum charge of $215 will be made each
billing period. The minimum charge also applies where an approved
application is in effect and no product is handled.
* * * * *
17. Section 70.77 is amended by revising paragraphs (a)(4) and
(a)(5) 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 $0.00031, except that the minimum charge per billing
period shall be $215 and the maximum charge shall be $2,150. The
minimum charge also applies where an approved application is in effect
and no product is handled.
(5) For rabbit grading: An administrative service charge equal to
25 percent of the grader's total salary costs. A minimum charge of $215
will be made each billing period. The minimum charge also applies where
an approved application is in effect and no product is handled.
* * * * *
Dated: October 11, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-25664 Filed 10-17-94; 8:45 am]
BILLING CODE 3410-02-P
