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 lot inspection and less than year round

fees charged for the inspection of processed fruits and vegetables and

certain other products. These revisions are necessary in order to

recover, as nearly as practicable, the costs of performing inspection

services under the Agricultural Marketing Act of 1946.

\1\ 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: October 6, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. James R. Rodeheaver, 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, D.C. 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 the Office of Management and Budget.

This final 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 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.

The final rule reflects certain 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 voluntary 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 lot inspection and less than year round inspection services

rendered to the processed fruit and vegetable industry to reflect the

costs currently associated with the program.

AMS regularly reviews these programs to determine if fees are

adequate. Employee salary and benefits are major program costs that

account for approximately 85 percent of the total operating budget. A

general and locality salary increase for Federal employees, ranging

from 3.09 to 6.25 percent depending on locality, effective January

1995, has materially affected program costs. Another general and

locality salary increase, ranging from 2.39 to 2.87 percent depending

upon locality (amounting to approximately $625,000), was effective

January 1996; further standardization program costs, previously funded

by appropriated funds, must be paid for by user fees.

While a concerted effort to cut costs resulted in overhead savings

of $623,926 in FY95 over FY94, the last fee increase in August 1994 did

not result in collection of enough revenue to cover all these increases

and still maintain an adequate reserve balance (four months of costs)

called for by Agency policy and prudent financial management. Currently

the Processed Products Branch (PPB) trust fund reserve balance for all

programs is approximately $1.480 mil. under the desirable level of

$11.031. Further action is necessary to meet rising costs and maintain

adequate reserve balances. This action will assist in moving the PPB

trust fund toward a more adequate level and will result in an estimated

$368,000 in additional revenues. Projected FY96 revenues for the lot

inspection and less than year round inspection programs are $8.291 mil.

with costs projected at $8.194 and a reserve of $2.682.

A notice of proposed rulemaking was published in the Federal

Register (61 FR 9654) on March 11, 1996 with a thirty day comment

period. The comment period closed on April 11, 1996. 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.

After consideration of all relevant matter presented, this action

makes final the changes as proposed on March 11, 1996. The changes are

made effective October 6, 1996 to coincide with the beginning of the

first accounting period in the 1997 fiscal year.

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 amended

as follows:

PART 52--[AMENDED]

1. The authority citation for 7 CFR Part 52 continues to read as

follows:

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

Sec. 52.42 [Amended]

2. In Sec. 52.42, the figure ``$39.50'' is revised to read

``$41.00''.

[[Page 25550]]

Sec. 52.50 [Amended]

3. In Sec. 52.50, the figure ``$39.50'' is revised to read

``$41.00''.

Sec. 52.51 [Amended]

4. In Sec. 52.51, paragraph (c)(2) is amended by removing the

figure ``$39.50'' and adding in its place ``$42.00'' and paragraph

(d)(1)is amended by removing the figure ``$39.50'' and adding in its

place ``$42.00''.

Dated: May 16, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-12835 Filed 5-21-96; 8:45 am]

BILLING CODE 3410-02-P