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

SUMMARY: This final rule revises the Regulations Governing Inspection

and Certification of Processed Fruits and Vegetables and Certain Other

Products\1\ by increasing the fees charged for inspection and by adding

a section concerning cancellation of contracts. The revision is

necessary in order to recover, as nearly as practicable, the costs of

performing inspection services under the Agricultural Marketing Act of

1946.

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\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.

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EFFECTIVE DATE: August 12, 1994.

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, D.C. 20090-6456, Telephone (202) 720-4693.

SUPPLEMENTARY INFORMATION: This rule has been determined significant

for purposes of Executive Order 12866, and therefore has been reviewed

by OMB.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This action 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 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, P.L. 96-354 (5 U.S.C. 601).

The final 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 final rule amends 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 includes

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 Section 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.

A notice of proposed rulemaking was published in the Federal

Register (59 FR 26762) on May 24, 1994 with a thirty day comment

period. The comment period closed on June 24, 1994. Interested persons

were invited to participate in this rulemaking proceeding by submitting

written comments on the proposal to the Agricultural Marketing Service.

No comments were received regarding this proposed rule.

Pursuant to 5 USC 553, it is found and determined that good cause

exists for not postponing the effective date until thirty days after

the publication in the Federal Register because: (1) these programs

have incurred a loss in fiscal year 1994; (2) this action should be

made effective upon publication in the Federal Register so that fees

will reflect the costs of services rendered as soon as possible and;

(3) interested persons were afforded a thirty day comment period and no

comments were received.

List of Subjects in 7 CFR Part 52

Food grades and standards, Food labeling, Frozen foods, Fruit

juices, Fruits, Reporting and recordkeeping requirements, and

Vegetables.

For the reasons set forth in the preamble, 7 CFR Part 52 is 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 7 CFR Part 52 is revised to read as

follows:

Authority: 7 USC 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 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\

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

a minimum of 40 hours a week.

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

* * * * *

Dated: August 8, 1994.

Lon Hatamiya,

Administrator.

[FR Doc. 94-19894 Filed 8-11-94; 8:45 am]

BILLING CODE 3410-02-P