[Federal Register Volume 60, Number 151 (Monday, August 7, 1995)]
[Proposed Rules]
[Pages 40115-40116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19331]
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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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Federal Register / Vol. 60, No. 151 / Monday, August 7, 1995 /
Proposed Rules
[[Page 40115]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 58
[DA-95-17]
RIN 0581-AB40
Grading and Inspection, General Specifications for Approved
Plants and Standards for Grades of Dairy Products; Proposed Increase in
Fees
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: The Agricultural Marketing Service proposes to increase the
fees charged for services provided under the dairy inspection and
grading program. The program is a voluntary, user-fee program conducted
under the authority of the Agricultural Marketing Act of 1946, as
amended. The proposed increases would result in a fee of $43.00 per
hour for continuous resident services and $48.00 per hour for
nonresident services between the hours of 6:00 a.m. and 6:00 p.m. The
fee for nonresident services between the hours of 6:00 p.m. and 6:00
a.m. would be $52.80 per hour. These proposed fees represent an
increase of 80 cents per hour.
The fees are being increased to cover the costs of recent salary
increases and locality adjustments, the full funding for
standardization activities, and normal inflationary pressures.
DATES: Comments should be mailed by September 6, 1995.
ADDRESSES: Comments should be sent to: Office of the Director, USDA/
AMS/Dairy Division, Room 2968-S, P.O. Box 96456, Washington, D.C.
20090-6456. Comments received will be available for public inspection
at this location during regular business hours.
FOR FURTHER INFORMATION CONTACT: Lynn G. Boerger, USDA/AMS/Dairy
Division, Dairy Grading Branch, Room 2750-South Building, P.O. Box
96456, Washington, D.C. 20090-6456, (202)720-9381.
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. This rule is not intended to have preemptive
effect with respect to any State or local laws, regulations or
policies. This rule is not intended to have retroactive effect. There
are no administrative procedures which must be exhausted prior to any
judicial challenge to this rule or the application of its provisions.
The proposed rule also has been reviewed in accordance with the
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., and the
Administrator, Agricultural Marketing Service, has determined that the
proposed rule, if promulgated, would not have a significant economic
impact on a substantial number of small entities. The proposed changes
will not significantly affect the cost per unit for grading and
inspection services. The Agricultural Marketing Service estimates that
overall this rule will yield an additional $87,000 during fiscal year
1996. The Agency does not believe the increases will affect
competition. Furthermore, the dairy grading program is a voluntary
program.
The Agricultural Marketing Act of 1946, as amended, authorizes the
Secretary of Agriculture to provide Federal dairy grading and
inspection services that facilitate marketing and help consumers obtain
the quality of dairy products they desire. The Act provides that
reasonable fees be collected from the users of the services to cover,
as nearly as practicable, the cost of maintaining the program.
Since the costs of the grading program are covered entirely by user
fees, it is essential that fees be increased when necessary to cover
the cost of maintaining a financially self-supporting program. The last
fee increase under this program became effective on February 9, 1994.
Since that time, Congress increased the salaries of Federal employees
by 2.6 percent as of January 8, 1995, which included locality pay.
Also, there have been normal increases in other operating costs. In
addition, recent congressional action may result in additional salary
increases of 2.4 percent in 1996. Although the program's operating
reserves were adequate to cover the January 8, 1995, salary increase,
this will not be the case for 1996 salary increases, and a fee increase
is needed.
The grading program fees also need to be increased to cover the
remaining costs related to the development of dairy product standards
and other activities now performed by the Dairy Division's
Standardization Branch. In FY 1994 Congress appropriated money for the
development of standards by the Agricultural Marketing Service but at
the same time stipulated that the program costs be recovered through
user fees, with the fees being turned over to the U.S. Treasury. The
fee increase which took effect on February 9, 1994, provided for \2/3\
of the cost of that program. Since the dairy standardization program is
an essential part of the dairy grading program, it is appropriate that
all of the standardization program costs be recovered through the fees
charged the users of the grading program. The projected cost of the
dairy standardization program for FY 1996 is $440,000.
Proposed Changes
This rule proposes the following changes in the regulations
implementing the dairy inspection and grading program:
1. Increase the hourly fee for nonresident services from $47.20 to
$48.00 for services performed between 6:00 a.m. and 6:00 p.m. The
nonresident hourly rate is charged to users who request an inspector or
grader for particular dates and amounts of time to perform specific
grading and inspection activities. These users of nonresident services
are charged for the amount of time required to perform the task and
undertake related travel plus travel costs.
2. Increase the hourly fee for continuous resident services from
$42.20 to $43.00. The resident hourly rate is charged to those who are
using grading and inspection services performed by an inspector or
grader assigned to a plant on a continuous, year-round resident basis.
Timing of Fee Increase
It is contemplated that the proposed fee increases would be
implemented on
[[Page 40116]]
an expedited basis in order to minimize the period of revenue
shortfall. Accordingly, it is anticipated that the fee increases, if
adopted, would become effective upon publication, or very soon after
publication, of the final rule in the Federal Register and that
delaying the effective date of the final rule until 30 days after
publication in the Federal Register would not occur. An approximate
effective date would be October 1, 1996.
All written submissions made pursuant to this notice will be made
available for public inspection in the Dairy Division during regular
business hours.
List of Subjects in 7 CFR Part 58
Dairy products, Food grades and standards, Food labeling, Reporting
and recordkeeping requirements.
For the reasons set forth in the preamble, it is proposed that 7
CFR Part 58 be amended as follows:
PART 58--GRADING AND INSPECTION, GENERAL SPECIFICATIONS FOR
APPROVED PLANTS AND STANDARDS FOR GRADES OF DAIRY PRODUCTS
1. The authority citation for part 58 is revised to read as
follows:
Authority: 7 U.S.C. 1621-1627.
Subpart A--[Amended]
2. Section 58.43 is revised to read as follows:
Sec. 58.43 Fees for inspection, grading, and sampling.
Except as otherwise provided in Secs. 58.38 through 58.46, charges
shall be made for inspection, grading, and sampling service at the
hourly rate of $48.00 for service performed between 6:00 a.m. and 6:00
p.m. and $52.80 for service performed between 6:00 p.m. and 6:00 a.m.,
for the time required to perform the service calculated to the nearest
15-minute period, including the time required for preparation of
certificates and reports and the travel time of the inspector or grader
in connection with the performance of the service. A minimum charge of
one-half hour shall be made for service pursuant to each request or
certificate issued.
3. Section 58.45 is revised to read as follows:
Sec. 58.45 Fees for continuous resident services.
Irrespective of the fees and charges provided in Secs. 58.39 and
58.43, charges for the inspector(s) and grader(s) assigned to a
continuous resident program shall be made at the rate of $43.00 per
hour for services performed during the assigned tour of duty. Charges
for service performed in excess of the assigned tour of duty shall be
made at a rate of 1\1/2\ times the rate stated in this section.
Dated: July 31, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-19331 Filed 8-4-95; 8:45 am]
BILLING CODE 3410-02-P
