Grading and Inspection, General Specifications for Approved Plants and Standards for Grades of Dairy Products: Revision of User Fees

SUMMARY: The Agricultural Marketing Service is increasing the fees

charged for services provided under the dairy grading program. This

rule will yield an estimated $87,000 of additional user fee revenue in

FY 1996. The program is a voluntary, user-fee funded program conducted

under the authority of the Agricultural Marketing Act of 1946, as

amended. This action increases the hourly rate to $43.00 per hour for

continuous resident services and $48.00 per hour for nonresident

services between the hours of 6 a.m. and 6 p.m. These fees represent a

$0.80 per hour increase for both resident and nonresident services. The

fee for nonresident services between the hours of 6 p.m. and 6 a.m. is

$52.80 per hour, which represents an increase of $0.80 per hour.

The fees need to be increased to cover the costs of recent salary

increases and locality adjustments, the full funding of standardization

activities, and normal inflationary pressures.

EFFECTIVE DATE: October 1, 1995.

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 the purposes of Executive Order 12866 and has been

reviewed by the Office of Management and Budget.

This final 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.

This final rule 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 rule will not

have a significant economic impact on a substantial number of small

entities. The changes will not significantly affect the cost per unit

for grading and inspection services. The Agricultural Marketing Service

estimates that this rule will yield an additional $87,000 in user fee

revenue during FY 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

the cost of maintaining the program.

Since the costs of the grading program are covered by user fees, it

is essential that fees be increased 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, the

salaries of Federal employees increased by 2.6 percent as of January 8,

1995. Also, there have been normal increases in other operating costs.

In addition, recent congressional action may result in additional

salary increases of varying amounts 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 the program. Since the dairy standardization program is

an essential part of the dairy grading program, it is appropriate that

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.

On August 7, 1995, the Agricultural Marketing Service published in

the Federal Register (60 FR 40115) for public comment a document

proposing an $0.80 increase in the hourly fees for both the resident

and nonresident programs. No comments were received.

Pursuant to 5 U.S.C. 553, it is hereby found that good cause exists

for not delaying the effective date of this action until 30 days after

publication of this final rule in the Federal Register. A revenue

shortfall warrants putting the higher rates into effect as quickly as

possible. The increase in fees is essential for effective management

and operation of the program and to satisfy the intent of the

Agricultural Marketing Act of 1946. A proposed rule setting forth

proposed fee increases was published in the Federal Register on August

7, 1995 (60 FR 40115). Therefore, the provisions of this final rule are

known to interested parties.

The supplemental information section of the proposed rule

inadvertantly misstated, by one year, the approximate effective date of

the fee increase. The approximate date read October 1, 1996, instead of

October 1, 1995. We believe the effective date was understood by

readers to be October 1, 1995 because the supplemental information

referred to the implementation of the fee increase to be on an

expedited basis,

[[Page 50078]]

and, in addition, the proposed rule allowed only a 30-day comment

period.

Accordingly, the program fees are being increased as set forth

below.

Program Changes Adopted in the Final Rule

This document makes the following changes in the regulations

implementing the dairy inspection and grading program:

1. Increases the hourly fee for nonresident services from $47.20 to

$48.00 for services performed between 6 a.m. and 6 p.m. and from $52.00

to $52.80 for services performed between 6 p.m. and 6 a.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. Increases 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.

List of Subjects in 7 CFR Part 58

Food grades and standards, Dairy products, Food labeling, Reporting

and recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR Part 58 is 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 continues to read as follows:

Authority: 7 U.S.C. 1621-1627.

2. In Part 58, subpart A, Sec. 58.43 is revised to read as follows:

Sec. 58.43 Fees for inspection, grading, and sampling.

Except as otherwise provided in sections 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 a.m. and 6

p.m., and $52.80 for service performed between 6 p.m. and 6 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 and

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 service.

Irrespective of the fees and charges provided in sections 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: September 25, 1995.

M. Michael Holbrook,

Acting Administrator.

[FR Doc. 95-24122 Filed 9-27-95; 8:45 am]

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