This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

11773 

Vol. 72, No. 49 

Wednesday, March 14, 2007 

1The required minimum level for the trust fund 

reserve is equal to four months of the revenue 

projected from collecting inspection fees during 

that fiscal year. With FY 2007 revenue projected to 

be $33.8 million, four months of the revenue in 

FY2007 equals $11.3 million. Therefore a reserve of 

$11.1 million would fall short of the required 

minimum level. 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 56 and 70 

[Docket No. AMS 2006–0142; PY–06–002] 

RIN 0581–AC64 

Increase in Fees and Charges for Egg, 

Poultry, and Rabbit Grading 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is increasing the fees and 

charges for Federal voluntary egg, 

poultry, and rabbit grading, 

certification, and audit services, and 

establishing a separate billing rate for 

the audit services. The fees and charges 

are being 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. The AMS is required to 

collect fees from users of these services 

to cover the costs of services rendered. 

DATES: Effective Date: April 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

David Bowden, Jr., Chief, USDA, AMS, 

PY, Standards, Promotion and 

Technology Branch, (202) 690–3148. 

SUPPLEMENTARY INFORMATION: 

Background and Proposed Changes 

The Agricultural Marketing Act of 

1946 (AMA), as amended, (7 U.S.C. 

1621, et seq.), gives AMS the authority 

to provide services so that agricultural 

products may be marketed to their best 

advantage, that global marketing and 

trade may be facilitated, and that 

consumers may be able to ascertain 

characteristics involved in the 

production and processing of products 

and obtain the quality of product they 

desire. The AMA also provides for the 

collection of fees from users of these 

services that are reasonable and cover 

the cost of providing services. Voluntary 

grading and certification of eggs, 

poultry, and rabbits and verification and 

conformance audits, fall within this 

authorization. 

A recent review determined that the 

existing fee schedule, effective 

September 25, 2005, will not generate 

sufficient revenue to cover program 

costs while maintaining an adequate 

trust fund reserve balance in FY 2007. 

Revenue in FY 2005 was $30.1 million 

while expenses were $33.8 million. 

After factoring in investment income, 

the result was a loss of $3.4 million. 

This loss reduced the trust fund reserve 

balance to $12.4 million. FY 2006 

revenue is currently projected at $33.8 

million and expenses in FY 2006 are 

projected at $34.8 million, which will 

reduce the trust fund reserve balance to 

$12.0 million. However, prior-year 

adjustments and projected investment 

income will increase the projected endof-year trust fund reserve balance to 

$13.3 million. Without a fee increase, 

FY 2007 revenue is projected to be $33.8 

million. Expenses are projected to be 

$36.6 million. After factoring in 

investment income, this loss would 

leave a reserve of $11.1 million, which 

is below the required minimum level.1

With a fee increase, FY 2007 revenue is 

projected at $35.1 million. 

Over $1 million in cost cutting 

measures will be taken by the Agency in 

FY 2006 and FY 2007 to maintain 

acceptable trust fund reserve levels. 

These cost reductions will include 

reorganization of field offices and not 

filling targeted vacancies. The fee 

increase in conjunction with cost 

reductions will result in trust fund 

reserve balances that would be 

maintained at the required minimum 

level. 

The review also included an in-depth 

analysis of expenses specifically related 

to auditing services. The audit program, 

initiated in 1999, was developed to 

provide industry, as well as domestic 

and foreign governmental entities, with 

verification of quality management 

systems, label claims, and other 

industry-developed standards. 

The number of audits has grown from 

five in FY 1999 to 524 in FY 2005. They 

are presently conducted by 30 full-time 

auditors. Audit fees are based on the 

approved hourly nonresident fee rate 

established for egg, poultry, and rabbit 

grading and certification services 

provided by the Agency pursuant to 7 

CFR parts 56 and 70. The review 

revealed that this rate did not 

sufficiently cover the cost of providing 

audit services, primarily due to the use 

of higher-salaried employees to perform 

audits. Consequently, a separate billing 

rate for performing audits has been 

established. 

The nonresident fee rate for audits 

was developed using the salary and 

fringe benefit information for 

Agricultural Commodity Graders 

stationed in the field, the employees 

typically assigned to perform fee 

grading service. Most of these 

employees are full-time at the GS–8/9 

pay grade classifications. However, due 

to the complexity of planning, 

performing, and interpreting the results 

of assessments, audits are typically 

performed by employees at the GS–11/ 

12 pay grade. 

Upon considering all audit 

operational expenses, the Agency 

determined that the actual cost of audit 

services, excluding travel costs, to be 

$82.16 per hour. Included in the 

analysis were employee salaries and 

benefits, overhead; total revenue hours 

available, and other anticipated costs 

such as federally mandated pay raises 

through FY 2007, rent, communications, 

utilities, contractual services, supplies, 

and equipment. Also, this action adds to 

the regulations a definition of auditing 

services and description of such 

services as appropriate. 

The Agency considered alternatives to 

creating a separate user-fee for audit 

services, but found that none were 

sufficient. Maintaining the same userfee for audit services that is currently 

used for conventional egg, poultry, and 

rabbit grading and certification services 

would not sufficiently cover the cost of 

providing audit services. Another 

option was to terminate all audit 

services, which would adversely affect 

producers, businesses, and consumers 

who desire audit services and those 

entities with already-established 

programs. 


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11774 Federal Register / Vol. 72, No. 49 / Wednesday, March 14, 2007 / Rules and Regulations 

Employee salaries and benefits 

account for approximately 85 percent of 

the total operating budget. The last 

general and locality salary increase for 

Federal employees became effective on 

January 1, 2006, and it materially 

affected program costs. Projected cost 

estimates for that increase were based 

on a salary increase of 2.2 percent; 

however, the increase was actually 3.89 

to 5.35 percent, depending on locality. 

The average increase in salary over the 

past five years has been 3.71 percent 

and was used for the projected salary 

increase for January 2007. Also, from 

October 2005 through September 2007, 

salaries and fringe benefits of federallylicensed State employees will increase 

by about 6.0 percent. 

The following table compares current 

and proposed fees and charges and 

shows the new audit fees. To offset 

projected cost increases, the hourly 

resident and nonresident rate would be 

increased by approximately 7.0 percent 

and the fee rate would also be increased 

by approximately 7.0 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 minimum monthly administrative 

volume charge for resident shell egg, 

poultry, and rabbit grading would be 

changed to $275. The billing rates for 

auditing services would be $82.16 for 

regular hours and $102.84 for weekend 

and holiday hours. 

Service Current Proposed 

Resident Service (Egg, Poultry, and Rabbit Grading) 

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

Hourly charges: 

Regular hours ................................................................................................................................................... 36.36 39.04 

Administrative charges—Poultry grading: 

Per pound of poultry ......................................................................................................................................... .00039 .00043 

Minimum per month .......................................................................................................................................... 260 275 

Maximum per month ......................................................................................................................................... 2,875 3,075 

Administrative charges—Shell egg grading: 

Per 30-dozen case of shell eggs ..................................................................................................................... .051 .053 

Minimum per month .......................................................................................................................................... 260 275 

Maximum per month ......................................................................................................................................... 2,875 3,075 

Administrative charges—Rabbit grading: 

Based on 25% of grader’s salary, minimum per month .................................................................................. 260 275 

Nonresident Service (Egg and Poultry Grading) 

Hourly charges: 

Regular hours ................................................................................................................................................... 36.36 39.04 

Administrative charges: 

Based on 25% of grader’s salary, minimum per month .................................................................................. 260 275 

Nonresident Fee and Appeal Service (Egg, Poultry, and Rabbit Grading) 

Hourly charges: 

Regular hours ................................................................................................................................................... 65.00 69.68 

Weekend and holiday hours ............................................................................................................................. 75.12 80.12 

Audit Fee (Verification of Standards and Quality Systems) 

Hourly charges: 

Regular hours ................................................................................................................................................... 65.00 82.16 

Weekend and holiday hours ............................................................................................................................. 75.12 102.84 

Comments 

Based on the analysis of costs to 

provide these services, a proposed rule 

to increase the fees for these services 

was published in the Federal Register 

(71 FR 59028) on October 6, 2006. 

Comments on the proposed rule were 

solicited from interested parties until 

November 6. One comment was 

received which was outside of the scope 

of the rulemaking. 

Executive Order 12866 

This action 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 (OMB). 

Regulatory Flexibility Act 

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 378 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 

fees are adequate and if costs are 

reasonable. A recent review determined 

that the existing fee schedule, effective 

September 25, 2005, will not generate 

sufficient revenue to cover program 

costs while maintaining an adequate 

reserve balance in FY 2007. Costs in FY 

2007 are projected at $36.6 million. 

Without a fee increase, FY 2007 revenue 

is projected at $33.8 million and the 

trust fund reserve balance would be 

below minimum required levels. With a 

fee increase, FY 2007 revenues are 

projected at $35.1 million. Strategic 


cprice-sewell on PROD1PC66 with RULES
Federal Register / Vol. 72, No. 49 / Wednesday, March 14, 2007 / Rules and Regulations 11775 

cost-cutting measures will be taken by 

the program to ensure sufficient trust 

fund levels. Cost reductions will 

include reorganization of field offices 

and not filling targeted vacancies. 

This action will raise the fees charged 

to users of grading and auditing 

services. Also, this action adds to the 

regulations a definition of auditing 

services and description of such 

services as appropriate. The AMS 

estimates that, overall, this rule will 

yield an additional $1.3 million during 

FY 2007. The hourly rate for resident 

and nonresident service will also 

increase by approximately 7.0 percent 

and the fee rate will also increase by 

approximately 7.0 percent. The impact 

of these rate changes in a poultry plant 

will not be substantial and will range 

from about $0.00013 to $0.0011 per 

pound of poultry handled. In a shell egg 

plant, the range will be $0.00022 to 

$0.00224 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. 

Pursuant to 5 U.S.C. 533, it is found 

and determined that good cause exists 

for not postponing the effective date of 

this action until 30 days after 

publication in the Federal Register. The 

revised fees need to be implemented on 

an expedited basis in order to avoid 

further financial losses in the grading 

program. The effective date of the fee 

increase, is April 1, 2007. 

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, 

Title 7, Code of Federal Regulations, 

parts 56 and 70 is amended as follows: 

PART 56—VOLUNTARY 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 56.1 is amended by adding 

‘‘Auditing Services’’ to read as follows: 

§ 56.1 Meaning of words of words and 

terms. 

* * * * * 

Auditing services means the act of 

providing independent verification of 

written quality assurance and value 

added standards for production, 

processing and distribution of shell 

eggs. Auditing services are performed by 

graders authorized by the Secretary to 

perform such audits and the service 

provided will be in accordance with the 

provisions of this part for grading 

services, as appropriate. 

* * * * * 

■ 3. In § 56.28,the section heading is 

revised and paragraph (d) is added to 

read as follows: 

§ 56.28 Types of service. 

* * * * * 

(d) Auditing service. This type of 

service is performed when an applicant 

requests independent verification of 

written quality assurance and value 

added standards for production, 

processing, and distribution of shell 

eggs. Charges or fees are based on time, 

travel, and expenses needed to perform 

the work. 

■ 4. Section 56.46 is amended by: 

■ A. Removing in paragraph (b), 

‘‘$65.00’’ and adding ‘‘$69.68’’ in its 

place. 

■ B. Removing in paragraph (c), 

‘‘$75.12’’ and adding ‘‘$80.12’’ in its 

place. 

■ C. Adding new paragraphs (d) and (e) 

to read as follows: 

§ 56.46 On a fee basis. 

* * * * * 

(d) Fees for audit services will be 

based on the time and expenses 

required to perform the audit. The 

hourly charge shall be $82.16 and shall 

include the time actually required to 

perform the audit, waiting time, travel 

time, travel expenses and any clerical 

costs involved in issuing an audit 

report. 

(e) Audit services rendered on 

Saturdays, Sundays, or legal holidays 

shall be charged for at the rate of 

$102.84 per hour. Information on legal 

holidays is available from the 

Supervisor. 

■ 5. Section 56.52 is amended by 

removing in paragraph (a)(4), ‘‘$0.051’’

and adding ‘‘$0.053’’ in its place, 

removing ‘‘$260’’ and adding ‘‘$275’’ in 

its place, and removing ‘‘$2,875’’ and 

adding ‘‘$3,075’’ in its place. 

PART 70—VOLUNTARY GRADING OF 

POULTRY PRODUCTS AND RABBIT 

PRODUCTS 

■ 6. The authority citation for part 70 

continues to read as follows: 

Authority: 7 U.S.C. 1621–1627. 

■ 7. Section 70.1 is amended by revising 

the section heading and by adding 

‘‘Auditing Services’’ to read as follows: 

§ 70.1 Definitions. 

* * * * * 

Auditing services means the act of 

providing independent verification of 

written quality assurance and value 

added standards for production, 

processing and distribution of poultry 

and rabbits. Auditing services are 

performed by graders authorized by the 

Secretary to perform such audits and the 

service provided will be in accordance 

with the provisions of this part for 

grading services, as appropriate. 

* * * * * 

■ 8. In § 70.4 the section heading is 

revised, and paragraph (c) is added to 

read as follows: 

§ 70.4 Services available. 

* * * * * 

(c) Auditing service. This type of 

service is performed when an applicant 

requests independent verification of 

written quality assurance and value 

added standards for production, 

processing, and distribution of poultry 

and rabbits. Charges or fees are based on 

time, travel, and expenses needed to 

perform the work. 

■ 9. Section 70.71 is amended by: 

■ A. Removing in paragraph (b) 

‘‘$65.00’’ and adding ‘‘$69.68’’ in its 

place. 

■ B. Removing in paragraph (c) 

‘‘$75.12’’ and adding ‘‘$80.12’’ in its 

place. 

■ C. Adding new paragraphs (d) and (e) 

to read as follows: 

§ 70.71 On a fee basis. 

* * * * * 

(d) Fees for audit services will be 

based on the time and expenses 

required to perform the audit. The 

hourly charge shall be $82.16 and shall 

include the time actually required to 


cprice-sewell on PROD1PC66 with RULES
11776 Federal Register / Vol. 72, No. 49 / Wednesday, March 14, 2007 / Rules and Regulations 

perform the audit, waiting time, travel 

time, travel expenses and any clerical 

costs involved in issuing a certificate. 

(e) Audit services rendered on 

Saturdays, Sundays, or legal holidays 

shall be charged for at the rate of 

$102.84 per hour. Information on legal 

holidays is available from the 

Supervisor. 

■ 10. Section 70.77 is amended by 

removing in paragraph (a)(4) ‘‘$0.00039’’

and adding ‘‘$0.00043’’ in its place, 

removing ‘‘$260’’ and adding ‘‘$275’’ in 

its place, and removing ‘‘$2,875’’ and 

adding ‘‘$3,075’’ in its place. 

Dated: March 9, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–4657 Filed 3–13–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Part 101 

Food Labeling 

CFR Correction 

In Title 21 of the Code of Federal 

Regulations, Parts 100 to 169, revised as 

of April 1, 2006, on page 18, in § 101.4, 

the introductory text of paragraph (h) is 

corrected by revising the phrase ‘‘or at 

the Office of the Federal Register, 800 N. 

Capitol St. NW., suite 700, Washington, 

DC.’’ to read: ‘‘or at the National 

Archives and Records Administration 

(NARA). For information on the 

availability of this material at NARA, 

call 202–741–6030, or go to: http:// 

www.archives.gov/federallregister/ 

codeloflfederallregulations/ 

ibrllocations.html.’’

[FR Doc. 07–55502 Filed 3–13–07; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[CGD07–06–237] 

RIN 1625–AA09 

Drawbridge Operation Regulations; 

Outer Clam Bay Boardwalk Bridge, 

Mile 0.3, Near North Naples, Collier 

County, FL 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard is changing 

the operating regulation governing the 

operation of the Outer Clam Bay 

Boardwalk Drawbridge, mile 0.3, near 

North Naples in Collier County, Florida. 

The rule will require the drawbridge to 

open on signal, with at least 30 minutes 

advance notice. This rule will allow the 

unrestricted movement of pedestrian 

traffic while providing for the 

reasonable needs of navigation. 

DATES: This rule is effective April 13, 

2007. 

ADDRESSES: Comments and material 

received from the public, as well as 

documents indicated in this preamble as 

being available in the docket, are part of 

docket (CGD07–06–237) and are 

available for inspection or copying at 

Commander (dpb), Seventh Coast Guard 

District, 909 SE. 1st Avenue, Room 432, 

Miami, Florida 33131–3050 between 8 

a.m. and 4:30 p.m., Monday through 

Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Barry Dragon, Seventh Coast Guard 

District, Bridge Branch, telephone 

number 305–415–6743. 

SUPPLEMENTARY INFORMATION:

Regulatory Information 

On November 17, 2006, we published 

a notice of proposed rulemaking 

(NPRM) entitled Drawbridge Operation 

Regulations; Outer Clam Bay Boardwalk 

Bridge, Mile 0.3, Near North Naples, 

Collier County, FL in the Federal 

Register (71 FR 66895). We received no 

comments on the proposed rule. No 

public meeting was requested, and none 

was held. 

Background and Purpose 

The current regulation of the Outer 

Clam Bay Boardwalk Drawbridge, mile 

0.3, near North Naples, at Collier 

County, published in 33 CFR 117.323 

requires the drawspan to open on signal 

between 9 a.m. and 5 p.m., if at least 

one-hour advance notice is given. 

Between 5 p.m. and 9 a.m., the draw is 

left in the open position. 

On October 19, 2006, the officials of 

Collier County requested that the Coast 

Guard review the existing regulations 

governing the operation of the Outer 

Clam Bay Boardwalk Drawbridge 

because they contended that the 

regulation did not meet the needs of 

pedestrians utilizing the boardwalk and 

drawspan. 

County records indicated that the 

owner has had one request for an 

opening since 1986 and the vessel did 

not show up for the requested opening. 

Night time vessel traffic is negligible. 

The boardwalk provides access to a 

recreational beachfront area 24 hours a 

day. Leaving the drawspan in the open 

position prevents beachgoers from 

accessing the recreational area between 

the hours of 5 p.m. and 9 a.m. 

Discussion of Comments and Changes 

The Coast Guard received no 

responses to the Notice of Proposed 

Rulemaking. The rule will provide 

access to the recreational beachfront 

area 24 hours a day while meeting the 

reasonable needs of navigation. 

Regulatory Evaluation 

This rule is not a ‘‘significant 

regulatory action’’ under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review, and does not 

require an assessment of potential costs 

and benefits under section 6(a)(3) of that 

Order. The Office of Management and 

Budget has not reviewed it under that 

Order. 

We expect the economic impact of 

this proposed rule to be so minimal that 

a full Regulatory Evaluation under the 

regulatory policies and procedures of 

DHS is unnecessary. This rule modifies 

the existing bridge schedule to allow 

pedestrian and vehicle traffic 

unrestricted access to the recreation area 

while providing for the reasonable 

needs of navigation. 

Small Entities 

Under the Regulatory Flexibility Act 

(5 U.S.C. 601–612), we have considered 

whether this rule would have a 

significant economic impact on a 

substantial number of small entities. 

The term ‘‘small entities’’ comprises 

small businesses, not-for-profit 

organizations that are independently 

owned and operated and are not 

dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. 

The Coast Guard certifies under 5 

U.S.C. 605(b) that this rule will not have 

a significant economic impact on a 

substantial number of small entities. 

This rule would affect the following 

entities, some of which may be small 

entities: The owners or operators of 

vessels needing to transit the Outer 

Clam Bay Boardwalk Drawbridge. The 

rule would not have a significant 

economic impact on a substantial 

number of small entities because the 

rule provides for openings to vessel 

traffic. 

Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121), 

we offered to assist small entities in 


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