[Federal Register Volume 59, Number 146 (Monday, August 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18599]
[[Page Unknown]]
[Federal Register: August 1, 1994]
VOL. 59, NO. 146
Monday, August 1, 1994
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 55, 56, 59, and 70
[Docket No. PY-94-005]
RIN 0581-ABB3
Increase in Fees and Charges for Egg Products Inspection and Egg,
Poultry, and Rabbit Grading
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: The Agricultural Marketing Service (AMS) proposes to increase
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 need to be 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.
DATES: Comments must be received on or before August 31, 1994.
ADDRESSES: Send written comments, in duplicate, to Janice L. Lockard,
Chief, Standardization Branch, Poultry Division, Agricultural Marketing
Service, U.S. Department of Agriculture, room 3944-South, P.O. Box
96456, Washington, DC 20090-6456. Comments received may be inspected at
this location between 8:00 a.m. and 4:30 p.m., Eastern Time, Monday
through Friday, except holidays. State that your comments refer to
Docket No. PY-94-005.
FOR FURTHER INFORMATION CONTACT: Larry W. Robinson, Chief, Grading
Branch, 202-720-3271.
SUPPLEMENTARY INFORMATION: This rule has been determined 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 would 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 proposed rule, if
promulgated, 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
to be amended by the proposed rule 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 and Proposed Changes
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 more than expected,
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 would be increased 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 would be increased 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 would be increased from $31.44 to $33.64. The hourly rate for
such services performed on Saturdays, Sundays, or holidays would be
increased from $32.88 to $35.52. The hourly rate for voluntary appeal
gradings or inspections would be increased from $26.64 to $27.36. The
hourly rates for mandatory egg products inspection services would be
increased from $23.80 to $26.16 for overtime inspection and from $16.24
to $17.44 for holiday inspection. The hourly rate would 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 would be increased
from $200 to $215 per official plant.
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, it is proposed that 7 CFR
Parts 55, 56, 59, and 70 be 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 therefor 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: July 22, 1994
Lon Hatamiya,
Administrator.
[FR Doc. 94-18599 Filed 7-29-94; 8:45 am]
BILLING CODE 3410-02-P
