This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

37298

Vol. 65, No. 115

Wednesday, June 14, 2000

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 56 and 70

[Docket No. PY–00–002]

RIN 0581–AB89

Increase in Fees and Charges for Egg,

Poultry, and Rabbit Grading

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: The Agricultural Marketing

Service (AMS) proposes to increase the

fees and charges for Federal voluntary

egg, poultry, and rabbit grading. 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 July 14, 2000.

ADDRESSES: Send written comments to

Elizabeth S. Crosby, Acting Chief,

Standardization Branch, Poultry

Programs, Agricultural Marketing

Service, U.S. Department of Agriculture,

STOP 0259, room 3944-South, 1400

Independence Avenue, SW,

Washington, DC 20250–0259.

Comments may be faxed to (202) 690–

0941.

State that your comments refer to

Docket No. PY–00–002 and note the

date and page number of this issue of

the Federal Register.

Comments received may be inspected

at the above location between 8:00 a.m.

and 4:30 p.m., Eastern Time, Monday

through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: Rex

A. Barnes, Chief, Grading Branch, (202)

720–3271.

SUPPLEMENTARY INFORMATION:

Background and Proposed Changes

The Agricultural Marketing Act

(AMA) of 1946 (7 U.S.C. 1621 et seq.)

authorizes official voluntary grading

and certification on a user-fee basis of

eggs, poultry, and rabbits. The AMA

provides that reasonable fees be

collected from users of the program

services to cover, as nearly as

practicable, the costs of services

rendered.

The AMS regularly reviews these

programs to determine if fees are

adequate and if costs are reasonable.

This action would amend the schedule

for fees and charges for grading services

rendered to the egg, poultry, and rabbit

industries to reflect the costs currently

associated with them.

A recent review of the current fee

schedule, effective October 1, 1999,

revealed that anticipated revenue will

not adequately cover increasing program

costs. Without a fee increase, FY 2001

revenues for grading services are

projected at $23.7 million, costs are

projected at $24.9 million, and trust

fund balances would be $11.3 million.

With a fee increase, FY 2001 revenues

are projected at $24.3 million, costs are

projected at $24.9 million, and trust

fund balances would be $11.9 million.

Employee salaries and benefits

account for approximately 81 percent of

the total operating budget. A general

and locality salary increase for Federal

employees, ranging from 4.76 to 5.31

percent, depending on locality, became

effective in January 2000 and has

materially affected program costs.

Another general and locality salary

increase estimated at 3.7 percent is

expected in January 2001. Also, from

October 1999 through September 2001,

salaries and fringe benefits of federally

licensed State employees will have

increased by about 6.7 percent.

The impact of these cost increases

was determined for resident,

nonresident, and fee services. To offset

projected cost increases, the hourly

resident and nonresident rate would be

increased by approximately 4 percent

and the fee rate would be increased by

approximately 6 percent. The hourly

rate for resident and nonresident service

covers graders’ salaries and benefits.

The hourly rate for fee service covers

graders’ salaries and benefits, plus the

cost of travel and supervision. The

hourly rate for an appeal grading or

review of a grader’s decision covers the

time required to perform such service.

Due to changes in the number of Poultry

Program offices and the resulting

reduction in costs, administrative

charges that cover the cost of

supervision for resident and

nonresident service would remain

unchanged as shown in the table below.

The following table compares current

fees and charges with proposed fees and

charges for egg, poultry, and rabbit

grading as found in 7 CFR parts 56 and

70:

Service Current Proposed

Resident Service (egg, poultry, rabbit grading)

Inauguration of service ........................................................................................................................................ 310 310

Hourly charges:

Regular hours ............................................................................................................................................... 28.80 29.96

Administrative charges—Poultry grading:

Per pound of poultry ..................................................................................................................................... .00035 .00035

Minimum per month ...................................................................................................................................... 225 225

Maximum per month ..................................................................................................................................... 2,625 2,625

Administrative charges—Shell egg grading:

Per 30-dozen case of shell eggs ................................................................................................................. .044 .044

Minimum per month ...................................................................................................................................... 225 225

Maximum per month ..................................................................................................................................... 2,625 2,625

Administrative charges—Rabbit grading

Based on 25% of grader’s salary.

Federal Register / Vol. 65, No. 115 / Wednesday, June 14, 2000 / Proposed Rules 37299

Service Current Proposed

Minimum per month ...................................................................................................................................... 260 260

Nonresident Service (egg, poultry grading)

Hourly charges:

Regular hours ............................................................................................................................................... 28.00 29.96

Administrative charges:

Based on 25% of grader’s salary.

Minimum per month ...................................................................................................................................... 260 260

Fee and Appeal Service (egg, poultry, rabbit grading)

Hourly charges:

Regular hours ............................................................................................................................................... 48.40 51.32

Weekend and holiday hours ......................................................................................................................... 55.76 59.12

Executive Order 12866

This action has been determined to be

not significant for purposes of Executive

Order 12866 and has not been reviewed

by the Office of Management and

Budget (OMB).

Regulatory Flexibility

Pursuant to the requirements set forth

in the Regulatory Flexibility Act (RFA)

(5 U.S.C. 601 et seq.), the AMS has

considered the economic impact of this

action on small entities. It is determined

that its provisions would not have a

significant economic impact on a

substantial number of small entities.

There are about 400 users of Poultry

Programs’ grading services. These

official plants can pack eggs, poultry,

and rabbits in packages bearing the

USDA grade shield when AMS graders

are present to certify that the products

meet the grade requirements as labeled.

Many of these users are small entities

under the criteria established by the

Small Business Administration (13 CFR

121.201). These entities are under no

obligation to use grading services as

authorized under the Agricultural

Marketing Act of 1946.

The AMS regularly reviews its user

fee financed programs to determine if

the fees are adequate. The most recent

review determined that the existing fee

schedule will not generate sufficient

revenues to cover program costs while

maintaining an adequate reserve

balance. Without a fee increase, FY 2001

revenues for grading services are

projected at $23.7 million, costs are

projected at $24.9 million, and trust

fund balances would be $11.3 million.

With a fee increase, FY 2001 revenues

are projected at $24.3 million, costs are

projected at $24.9 million, and trust

fund balances would be $11.9 million.

This action would raise the fees

charged to users of grading services. The

AMS estimates that overall, this rule

would yield an additional $0.5 million

during FY 2001. The hourly rate for

resident and nonresident service would

increase by approximately 4 percent and

the fee rate would increase by

approximately 6 percent. The impact of

these rate changes in a poultry plant

would range from less than 0.002 to 0.02

cents per pound of poultry handled. In

a shell egg plant, the range would be

less than 0.009 to 0.09 cents per dozen

eggs handled.

Civil Justice Reform

This action has been reviewed under

Executive Order 12988, 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.

Paperwork Reduction

The information collection

requirements that appear in the sections

to be amended by this action have been

previously approved by OMB and

assigned OMB Control Numbers under

the Paperwork Reduction Act (44 U.S.C.

Chapter 35) as follows: ?56.52(a)(4)—

No. 0581–0128; and ?70.77(a)(4)—No.

0581–0127.

A thirty-day comment period is

provided for interested persons to

comment on this proposed rule. This

period is appropriate in order to

implement, as early as possible in fiscal

year 2001, any fee changes adopted as

a result of this rulemaking action.

List of Subjects

7 CFR Part 56

Eggs and egg products, Food grades

and standards, Food labeling, 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 Title 7, Code of

Federal Regulations, parts 56 and 70 be

amended as follows:

PART 56—GRADING OF SHELL EGGS

1. The authority citation for part 56

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

2. Section 56.46 is revised to read as

follows:

§ 56.46 On a fee basis.

(a) Unless otherwise provided in this

part, the fees to be charged and

collected for any service performed, in

accordance with this part, on a fee basis

shall be based on the applicable rates

specified in this section.

(b) Fees for grading services will be

based on the time required to perform

the services. The hourly charge shall be

$51.32 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 $59.12

per hour. Information on legal holidays

is available from the Supervisor.

PART 70—VOLUNTARY GRADING OF

POULTRY PRODUCTS AND RABBIT

PRODUCTS

3. The authority citation for part 70

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

4. Section 70.71 is revised to read as

follows:

§ 70.71 On a fee basis.

(a) Unless otherwise provided in this

part, the fees to be charged and

collected for any service performed, in

accordance with this part, on a fee basis

37300 Federal Register / Vol. 65, No. 115 / Wednesday, June 14, 2000 / Proposed Rules

shall be based on the applicable rates

specified in this section.

(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 $51.32 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 $59.12

per hour. Information on legal holidays

is available from the Supervisor.

Dated: June 8, 2000.

Kathleen A. Merrigan,

Administrator, Agricultural Marketing

Service.

[FR Doc. 00–15013 Filed 6–13–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. FV00–982–2 PR]

Hazelnuts Grown in Oregon and

Washington; Increased Assessment

Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This rule would increase the

assessment rate established for the

Hazelnut Marketing Board (Board) for

the 2000–2001 and subsequent

marketing years from $0.004 to $0.005

per pound of hazelnuts handled. The

Board locally administers the marketing

order, which regulates the handling of

hazelnuts grown in Oregon and

Washington. Authorization to assess

hazelnut handlers enables the Board to

incur expenses that are reasonable and

necessary to administer the program.

The marketing year begins July 1 and

ends June 30. The assessment rate

would remain in effect indefinitely

unless modified, suspended, or

terminated.

DATES: Comments must be received by

July 14, 2000.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent to the Docket Clerk, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 720–5698, or

E-mail: moab.docketclerk@usda.gov.

Comments should reference the docket

number and the date and page number

of this issue of the Federal Register and

will be available for public inspection in

the Office of the Docket Clerk during

regular business hours, or can be viewed

at: http://www.ams.usda.gov/fv/

moab.html.

FOR FURTHER INFORMATION CONTACT:

Teresa L. Hutchinson, Northwest

Marketing Field Office, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, suite 385, Portland,

Oregon 97204; telephone: (503) 326–

2724, Fax: (503) 326–7440; or George

Kelhart, Technical Advisor, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 720–5698.

Small businesses may request

information on complying with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 115 and Order No. 982, both as

amended (7 CFR part 982), regulating

the handling of hazelnuts grown in

Oregon and Washington, hereinafter

referred to as the ‘‘order.’’ The

marketing agreement and order are

effective under the Agricultural

Marketing Agreement Act of 1937, as

amended (7 U.S.C. 601–674), hereinafter

referred to as the ‘‘Act.’’

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the marketing order now

in effect, hazelnut handlers are subject

to assessments. Funds to administer the

order are derived from such

assessments. It is intended that the

assessment rate as proposed herein

would be applicable to all assessable

hazelnuts beginning on July 1, 2000,

and continue until amended,

suspended, or terminated. This rule

would not preempt any State or local

laws, regulations, or policies, unless

they present an irreconcilable conflict

with this rule.

The Act provides that administrative

proceedings must be exhausted before

parties may file suit in court. Under

section 608c(15)(A) of the Act, any

handler subject to an order may file

with the Secretary a petition stating that

the order, any provision of the order, or

any obligation imposed in connection

with the order is not in accordance with

law and request a modification of the

order or to be exempted therefrom. Such

handler is afforded the opportunity for

a hearing on the petition. After the

hearing the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has his or her principal

place of business, has jurisdiction to

review the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

This rule would increase the

assessment rate established for the

Board for the 2000–2001 and

subsequent marketing years from $0.004

to $0.005 per pound of hazelnuts

handled.

The order provides authority for the

Board, with the approval of the

Department, to formulate an annual

budget of expenses and collect

assessments from handlers to administer

the program. The members of the Board

are producers and handlers of

hazelnuts. They are familiar with the

Board’s needs and with the costs for

goods and services in their local area

and are thus in a position to formulate

an appropriate budget and assessment

rate. The assessment rate and budget

were recommended by a mail vote. The

recommendation will be discussed and

reconfirmed at the Board’s next

scheduled public meeting. Thus, all

directly affected persons will have an

opportunity to participate and provide

input.

For the 1997–98 and subsequent

marketing years, the Board

recommended, and the Department

approved, an assessment rate that would

continue in effect from marketing year

to marketing year unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the Board or

other information available to the

Secretary.

The Board, in a mail vote completed

at the end of April 2000, unanimously

recommended 2000–2001 expenditures

of $596,293 and an assessment rate of

$0.005 per pound of hazelnuts. In

comparison, last year’s budgeted

expenditures were $568,457. The

assessment rate of $0.005 is $0.001

higher than the rate currently in effect.

At the current rate of $0.004 per pound

and an estimated 2000–2001 hazelnut