Processed Fruits and Vegetables, Processed Products Thereof, and Certain Other Processed Food Products Regulations Governing Inspection and Certification\1\

\1\Other processed products may include the following: Honey;

molasses, except for stockfeed; nuts and nut products, except oil;

sugar (cane, beet, and maple); sirups (blended), sirups, except from

grain; tea, cocoa, coffee, spices, condiments.

---------------------------------------------------------------------------

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would revise the Regulations Governing

Inspection and Certification of Processed Fruits and Vegetables and

Certain Other Products by increasing the fees charged for inspection

and by adding a section concerning cancellation of contracts. These

amendments are necessary in order to recover, as nearly as practicable,

the costs of performing inspection services under the Agricultural

Marketing Act of 1946.

DATES: Comments must be received on or before: June 23, 1994.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Comments must be sent in duplicate to the

Office of the Branch Chief, Processed Products Branch, Fruit and

Vegetable Division, Agricultural Marketing Service, U.S. Department of

Agriculture, P.O. Box 96456, Room 0709 South Building, Washington, DC

20090-6456. Comments should note the date and page number of this issue

of the Federal Register and will be made available for public

inspection in the office of the Branch Chief during regular business

hours.

FOR FURTHER INFORMATION CONTACT: Mr. James R. Rodeheaver, Processed

Products Branch, Fruit and Vegetable Division, Agricultural Marketing

Service, U.S. Department of Agriculture, P.O. Box 96456, Room 0709

South Building, Washington, DC 20090-6456, Telephone (202) 720-4693.

SUPPLEMENTARY INFORMATION: This rule has been determined to be not-

significant for purposes of Executive Order 12866 and therefore has not

been reviewed by OMB.

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This action 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 Administrator, Agricultural Marketing Service (AMS), has

certified that this action will not have a significant economic impact

on a substantial number of small entities, as defined in the Regulatory

Flexibility Act, Public Law 96-354 (5 U.S.C. 601).

The proposed rule reflects fee increases needed to recover the

costs of services rendered in accordance with the Agricultural

Marketing Act (AMA) of 1946. The inspection, grading and certification

program for processed fruits and vegetables and related products is

voluntary.

The AMA authorizes official inspection, grading, and certification

on a user-fee basis, of processed food products including processed

fruits, vegetables, and processed products made from them. The AMA

provides that reasonable fees be collected from the user of the program

services to cover as nearly as practicable the costs of services

rendered. This proposal would amend the schedule of fees and charges

for inspection, grading, and certification services to more nearly

reflect the costs currently associated with the program. The amendment

would include the addition of the new Section 52.47 pertaining to

charges when service is canceled or changed in order to manage the

program in the most cost effective manner. Former Sec. 52.47, which was

removed, pertained to microbiological and other types of testing

functions which were transferred to the AMS Science Division.

AMS regularly reviews its programs to determine if fees are

adequate. Employee salary and fringe benefits are major program costs

that account for approximately 85 percent of the total operating

budget. Two salary increases for Federal employees, a 3.7 percent pay

increase effective January 10, 1993, and a locality pay increase,

ranging from 3.09 to 6.52 percent depending upon locality, effective

January 8, 1994, have materially affected program costs. Unemployment

insurance, FTS 2000 telecommunications, General Services Administration

rent, and other administrative, supervisory, and program costs have

also increased.

In addition, the Agricultural Appropriation Bill for fiscal year

1994 directed AMS to establish a user fee program to recover the costs

associated with agricultural commodities quality standards. In

response, the service has implemented cost-cutting actions

(reorganization and/or downsizing of field offices and technical

support services) which reduced obligations by $569,175 from FY-92 to

FY-93. Nonetheless, despite these measures, the Agency has determined

that due to the increases in program operating costs, an increase in

fees is necessary to meet rising costs and prevent financial losses.

Based on the Agency's analysis of increased costs since 1993, AMS

proposes to increase the fees relating to such services as shown in the

following table. The table compares current fees and charges with

proposed fees and charges for processed fruit and vegetable inspection

as found in 7 CFR 52.42-52.51. 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 section 52.51 overtime work would also continue to be

charged as provided in that section. 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: $37.00/hr.

Proposed: $39.50/hr.

Charges for travel and other expenses as found in Sec. 52.50:

Current: $37.00/hr.

Proposed: $39.50/hr.

Charges for year-round in-plant inspection services on a contract

basis as found in Sec. 52.51 (c):

(1) For personnel assigned on a year-round basis:

Each Inspector:

Current: $32.00/hr.

Proposed: $34.00/hr.

(2) For personnel assigned on less than a year-round basis:

Each inspector:

Current: $37.00/hr.

Proposed: $39.50/hr.

In-plant sampler: $20.00/hr.--$22.00/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):

Current--Proposed

(1) Each inspector: $37.00/hr.--$39.50/hr.

(2) In-plant sampler:--$20.00/hr. $22.00/hr.

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-- REGULATIONS GOVERNING INSPECTION AND CERTIFICATION OF

PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS THEREOF, AND

CERTAIN OTHER PROCESSED FOOD PRODUCTS

1. The authority citation for part 52 is revised to read as

follows:

Authority: 7 U.S.C. 1622, 1624.

2. Section 52.42 is revised to read as follows:

Sec. 52.42 Schedule of fees.

Unless otherwise provided in a written agreement between the

applicant and the Administrator, the fee for any inspection service

performed under the regulations in this part, shall be at the rate of

$39.50 per hour plus one-half the hourly rate per hour for all

scheduled overtime hours. When work is performed on a holiday, an

additional hour shall be charged at the regular hourly rate for each

hour worked. A ten (10) percent night differential charge will be made

for all work performed between the hours of 6 p.m. and 6 a.m.

3. A new Sec. 52.47 is added to read as follows:

Sec. 52.47 Changing types of service.

If an applicant cancels a new year-round contract before a full

year has elapsed, the applicant shall be charged the difference between

the year-round rate and less than year-round rate for the full period

the year-round contract was in effect. If an applicant cancels a year-

round contract after a full year or more of uninterrupted service, the

fee remains at the year-round rate.

4. In Sec. 52.50, the 1st sentence is revised to read as follows:

Sec. 52.50 Travel and other expenses.

Charges may be made to cover the cost of travel time incurred in

connection with the performance of any inspection service, including

appeal inspections, at the rate of $39.50 per hour. * * *

5. In Sec. 52.51, paragraphs (c) (1), (c)(2), (d)(1), and (d)(2)

are revised to read as follows:

Sec. 52.51 Charges for inspection services on a contract basis.

* * * * *

(c) * * *

(1) For personnel assigned on a year-round basis:

Each inspector--$34.00 per hour.

(2) For personnel assigned on less than a year-round basis:

Each inspector--$39.50 per hour.

In-plant sampler--$22.00 per hour.

* * * * *

(d) * * *

(1) Each inspector--$39.50 per hour.\1\

---------------------------------------------------------------------------

\1\Except a minimum of 8 hours per day will be billed in lieu of

a minimum of 40 hours a week.

---------------------------------------------------------------------------

(2) In-plant sampler--$22.00 per hour.

* * * * *

Dated: May 16, 1994.

Lon Hatamiya,

Administrator.

[FR Doc. 94-12586 Filed 5-23-94; 8:45 am]

BILLING CODE 3410-02-P