Increase in Fees and Charges for Egg Products Inspection and Egg, Poultry, and Rabbit Grading

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