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

66485

Vol. 65, No. 215

Monday, November 6, 2000

1Section 8e of the Agricultural Marketing

Agreement Act of 1937, as amended (7 U.S.C. 601–

604), requires that whenever the Secretary of

Agriculture issues grade, size, quality or maturity

regulations under domestic marketing orders for

certain commodities, the same or comparable

regulations on imports of those commodities must

be issued. Import regulations apply only during

those periods when domestic marketing order

regulations are in effect.

Currently, there are 4 processed commodities

subject to 8e import regulations: canned ripe olives,

dates, prunes, and processed raisins. A current

listing of the regulated commodities can be found

under 7 CFR Parts 944 and 999.

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 52

[FV–00–326]

Processed Fruits and Vegetables

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This final rule revises the

regulations governing inspection and

certification for processed fruits,

vegetables, and processed products

made from them by increasing by

approximately three to nine percent fees

charged for the inspection services.

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. The fees charged to persons

required to have inspections on

imported commodities in accordance

with the Agricultural Marketing Act of

1937 would also be affected.

EFFECTIVE DATE: November 19, 2000.

FOR FURTHER INFORMATION CONTACT: Mr.

James R. Rodeheaver, Branch Chief,

Processed Products Branch, Fruit and

Vegetable Programs, Agricultural

Marketing Service, U.S. Department of

Agriculture, P.O. Box 96456, Room 0709

South Building, Washington, DC 20090–

6456, telephone (202) 720–4693, or email James.Rodeheaver@usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and Regulatory

Flexibility Act

This rule has been determined not

significant for purposes of Executive

Order 12866 and has been reviewed by

the Office of Management and Budget.

Also, pursuant to the requirements of

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this action on small entities.

AMS regularly reviews its user fee

financed programs to determine if the

fees are adequate. The Processed

Products Branch (PPB) of the Fruit and

Vegetable Programs, AMS, has and will

continue to seek out cost savings

opportunities and implement

appropriate changes to reduce its costs.

Such actions can provide alternatives to

fee increases. The fee schedule was last

revised on October 4, 1998 (63 FR

50745). However, even with such

efforts, the existing fee schedule will not

generate sufficient revenues to cover lot,

year round, and less than year round

inspection program costs and sustain an

adequate reserve balance. PPB programs

for lot, year round, and less than year

round will have obligations in FY 2000

of approximately $12.9 million,

necessitating a reserve of $4.3 million.

The current reserve is $2.6 million.

Current revenue projections for FY 2000

without a fee increase are $12.0 million

while program costs increase to

approximately $13.1 million in FY

2001. These cost increases will result

primarily from increases in salaries and

benefits. Accounting for a significant

portion of the total operating budget,

salaries rose from 3.54 to 4.02 percent,

effective January 1999, increasing the

cost of operating these programs by

$295,000. A 4.8 percent pay increase

effective January 1, 2000, increased

program costs another $385,000. The

revenue projections, that include final

fees, are $13.5 million for FY 2001. The

final fee increase of approximately 3 to

9 percent, should result in an estimated

approximately $1.0 million in FY 2001

and should enable PPB to cover its costs

and re-establish adequate program

reserves.

The purpose of the RFA is to fit

regulatory actions to the scale of

businesses subject to such actions in

order that small businesses will not be

unduly or disproportionately burdened.

This action would increase user fee

revenue generated under the lot

inspection program and the year round

and less than year round inspection

programs by approximately $1,020,000

annually. This action is authorized

under the AMA of 1946 [see 7 U.S.C.

1622(h)] which provides that the

Secretary of Agriculture assess and

collect ‘‘such fees as will be reasonable

and as nearly as may be to cover the

costs of services rendered * * *’’.

There are more than 1,250 users of

PPB’s lot, and less than year round and

year round inspection services

(including applicants who must meet

import requirements,1 inspections

which amount to under 2 percent of all

lot inspections performed). A small

portion of these users are small entities

under the criteria established by the

Small Business Administration (13 CFR

121.201). There will be no additional

reporting, recordkeeping, or other

compliance requirements imposed upon

small entities as a result of this rule.

PPB has not identified any other federal

rules which may duplicate, overlap or

conflict with this final rule.

Inspection services covered by this

final rule are voluntary, except when

required for certain imported

commodities under 7 CFR Parts 944 and

999. The total fees charged to users of

these services vary with usage. The

impact on all businesses, including

small entities, is very similar. Further,

even though fees will be increased, the

amount of the increase is small (three to

nine percent), and should not

significantly affect these entities.

Finally, except for those applicants who

are required to obtain inspections in

connection with certain imports these

businesses are under no obligation to

use these inspection services.

Executive Order 12988

The rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule is not intended to

have a retroactive effect and 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.

66486 Federal Register / Vol. 65, No. 215 / Monday, November 6, 2000 / Rules and Regulations

Final Action

The AMA authorizes official

inspection, grading, and certification for

processed fruits, vegetables, and

processed products made from them.

The AMA provides that the Secretary

collect reasonable fees from the users of

the services to cover, as nearly as

practicable, the costs of the services

rendered. This rule will amend the

schedule for fees for inspection services

rendered to the processed fruit and

vegetable industry to reflect the costs

necessary to operate the program.

AMS regularly reviews its user fee

programs to determine if the fees are

adequate. While PPB continues to

pursue opportunities to reduce its costs,

the existing fee schedule will not

generate sufficient revenues to cover lot,

less than year round and year round

inspection program costs while

maintaining an adequate reserve

balance.

PPB programs for lot, year round, and

less than year round will have

obligations in FY 2000 of approximately

$12.9 million, necessitating a reserve of

$4.3 million. The current reserve is $2.6

million. Current revenue projections for

FY 2000 without a fee increase are $12.0

million while program costs increase to

approximately $13.1 million in FY

2001. These cost increases will result

primarily from increases in salaries and

benefits. Accounting for a significant

portion of the total operating budget,

salaries rose from 3.54 to 4.02 percent,

effective January 1999, increasing the

cost of operating these programs by

$295,000. A 4.8 percent pay increase

effective January 1, 2000, increased

program costs another $385,000. The

revenue projections, that include final

fees, are $13.5 million for FY 2001. The

final fee increase of approximately 3 to

9 percent, should result in an estimated

approximately $1.0 million in FY 2001

and should enable PPB to cover its costs

and re-establish adequate program

reserves.

Based on the aforementioned analysis

of increasing program costs, AMS is

increasing the fees relating to lot

inspection service and the fees for less

than year round and year round

inspection services. For inspection

services charged under § 52.42, overtime

and holiday work would continue to be

charged as provided in that section. For

inspection services charged on a

contract basis under § 52.51 overtime

work would also continue to be charged

as provided in that section. The

following fee schedule compares current

fees and charges with final fees and

charges for processed fruit and vegetable

inspection as found in 7 CFR §§ 52.42–

52.51. Unless otherwise provided for by

regulation or written agreement between

the applicant and the Administrator, the

charges in the schedule of fees as found

in § 52.42 are:

Current Final

43.00/hr ....................................... $47.00/hr.

Charges for travel and other expenses

as found in § 52.50 are:

Current Final

$43.00/hr ..................................... $47.00/hr.

Charges for year-round in-plant

inspection services on a contract basis

as found in § 52.51(c) are:

(1) For inspector assigned on a yearround basis:

Current Final

$35.00/hr ..................................... $36.00/hr.

(2) For inspector assigned on less than

a year-round basis: Each inspector:

Current Final

$45.00/hr ..................................... $48.00/hr.

Charges for less than year-round inplant inspection services (four or more

consecutive 40 hour weeks) on a

contract basis as found in § 52.51 (d)

are:

(1) Each inspector:

Current Final

$45.00/hr ..................................... $48.00/hr.

A notice of proposed rulemaking was

published in the Federal Register (65

FR 39824) on June 28, 2000, with a 60-

day comment period. The comment

period closed on August 28, 2000.

Interested persons were invited to

participate in this rulemaking

proceeding by submitting written

comments on the proposal to the

Agricultural Marketing Service. Two

comments were received regarding this

proposed rule.

The first, from a student, concerned

with the specific cost-reducing

alternatives considered by AMS to offset

salary increases, inflation and to

maintain fiscal stability in the program.

The second comment was from a

processor, which urged that we reduce

the rate of the proposed increase by

applying cost savings.

AMS is continually seeking ways to

reduce costs to the industry and

increase operational efficiency. Since

the last fee increase for processed fruit

and vegetable grading and certification

services in October 1998, AMS

downsized a field office to an inspection

point, closed three inspection points,

eliminated several grading and clerical

positions, and postponed filling several

vacated positions. These steps have

resulted in a cumulative cost saving of

approximately $561,500.

The processor expressed concern with

the rate of the fee increase,

characterizing it as ‘‘very steep.’’ The

commenter indicated that the rate

increases exceeded inflation since 1998

and that its own hourly rate for its

manufacturing personnel and its selling

prices have not risen as much as the fee

rates over the past two years. The

processor concluded that the cost

burden of the fee increases to

manufacturers would be substantial and

noted that over the past ten years the

hourly fee has increased from $28.00

per hour to $48.00. The commenter

observed that the rate of increase would

exceed wage increases in that time

frame.

As discussed above, the AMA

provides that AMS collect reasonable

fees from users of the services to cover,

as nearly as practicable, the costs of the

services rendered. While cost increases

may result primarily from increases in

salaries and benefits, other overhead

costs such as rent and materials are also

covered. The fees proposed in this

rulemaking appropriately reflect the

cost of providing the services rendered.

Actually, the rate of the proposed

increase is below the average rate of

increase for these services since 1989.

Since December 1989, fees increased by

an annualized rate of about 4.13

percent. The proposed increase will

represent an annualized increase of only

about 1.9 percent. Further, we will

continue our efforts to reduce costs to

the industry and increase efficiencies

whenever possible.

With regard to the commenter’s

concerns regarding the application of

overtime charges, the proposed fee

increase does not change the way

overtime is charged for both hourly and

contract fees. AMS has numerous

service options available with respect to

duration, regularity of hours, and fees

for inspection services. The Agency is

available to work with applicants for

services to select the type of service

which most efficiently meets its needs.

In light of the continuing need to

maintain the AMS grading program on

a financially sound basis, AMS has

decided to proceed with the fee increase

as set forth in the proposal.

Pursuant to 5 U.S.C. 553, it is found

and determined that good cause exists

for not postponing the effective date of

this action until 30 days after

Federal Register / Vol. 65, No. 215 / Monday, November 6, 2000 / Rules and Regulations 66487

publication in the Federal Register

because: (1) the fiscal year 2000 reserve

balance of the program’s trust fund is

under the desired level necessary to

ensure an adequate reserve balance; (2)

the fee change adopted herein should be

implemented as soon as possible to

begin replenishing the operating reserve

and bring revenue in line with costs;

and (3) the fee increase is to be effective

November 19, 2000.

List of Subjects in 7 CFR Part 52

Food grades and standards, Food

labeling, Frozen foods, Fruit juices,

Fruits, Reporting and record keeping

requirements.

For the reasons set forth in the

preamble, 7 CFR Part 52 is amended as

follows:

PART 52—[AMENDED]

1. The authority citation for part 52

continues to read as follows:

Authority: 7 U.S.C. 1621—1627.

§ 52.42 [Amended]

2. In § 52.42, the figure ‘‘$43.00’’ is

revised to read ‘‘$47.00’’.

§ 52.50 [Amended]

3. In § 52.50, the figure ‘‘$43.00’’ is

revised to read ‘‘$47.00’’.

§ 52.51 [Amended]

4. In § 52.51, paragraph (c)(1), the

figure ‘‘$35.00’’ is revised to read

‘‘$36.00’’, in paragraph (c)(2), the figure

‘‘$45.00’’ is revised to read ‘‘$48.00’’,

and in paragraph (d)(1), the figure

‘‘$45.00’’ is revised to read ‘‘$48.00’’.

Dated: November 1, 2000.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–28414 Filed 11–3–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

7 CFR Part 301

[Docket No. 00–076–1]

Imported Fire Ant; Addition to

Quarantined Areas

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the

imported fire ant regulations because

infestations of imported fire ant have

been discovered in additional areas in

Tennessee. This action will quarantine

two new counties and additional

portions of four other counties. As a

result of this action, the interstate

movement of regulated articles from

those areas will be restricted. This

action is necessary to prevent the

artificial spread of the imported fire ant

to noninfested areas of the United

States. We are also making

nonsubstantive changes to the

description of other quarantined areas

in Tennessee to make them easier to

understand.

DATES: This interim rule is effective

November 6, 2000. We invite you to

comment on this docket. We will

consider all comments that we receive

by January 5, 2001.

ADDRESSES: Please send four copies of

your comment (an original and three

copies) to: Docket No. 00–076–1,

Regulatory Analysis and Development,

PPD, APHIS, Suite 3C03, 4700 River

Road, Unit 118, Riverdale, MD 20737–

1238

Please state that your comment refers

to Docket No. 00–076–1.

You may read any comments that we

receive on this docket in our reading

room. The reading room is located in

room 1141 of the USDA South Building,

14th Street and Independence Avenue,

SW., Washington, DC. Normal reading

room hours are 8 a.m. to 4:30 p.m.,

Monday through Friday, except

holidays. To be sure someone is there to

help you, please call (202) 690–2817

before coming.

APHIS documents published in the

Federal Register, and related

information, including the names of

organizations and individuals who have

commented on APHIS dockets, are

available on the Internet at http://

www.aphis.usda.gov/ppd/rad/

webrepor.html.

FOR FURTHER INFORMATION CONTACT: Mr.

Ronald Milberg, Operations Officer,

PPQ, APHIS, 4700 River Road Unit 36,

Riverdale, MD 20737–1231; (301) 734–

5255.

SUPPLEMENTARY INFORMATION:

Background

The imported fire ant regulations

(contained in 7 CFR 301.81 through

301.81–10 and referred to below as the

regulations) quarantine infested States

or infested areas within States and

restrict the interstate movement of

regulated articles to prevent the

artificial spread of the imported fire ant.

The imported fire ant, Solenpsis

invicta Buren and Solenopsis richteri

Forel, is an aggressive, stinging insect

that, in large numbers, can seriously

injure and even kill livestock, pets, and

humans. The imported fire ant, which is

not native to the United States, feeds on

crops and builds large, hard mounds

that damage farm and field machinery.

The regulations are intended to prevent

the imported fire ant from spreading

throughout its ecological range within

the country.

The regulations in § 301.81–3 provide

that the Administrator of the Animal

and Plant Health Inspection Service

(APHIS) will list as a quarantined area

each State, or each portion of a State,

that is infested with the imported fire

ant. The Administrator will designate

less than an entire State as a

quarantined area only under the

following conditions: (1) The State has

adopted and is enforcing restrictions on

the intrastate movement of the regulated

articles listed in § 301.81–2 that are

equivalent to the interstate movement

restrictions imposed by the regulations;

and (2) designating less than the entire

State will prevent the spread of the

imported fire ant. The Administrator

may include uninfested acreage within

a quarantined area due to its proximity

to an infestation or its inseparability

from an infested locality for quarantine

purposes.

In § 301.81–3, paragraph (e) lists

quarantined areas. We are amending

§ 301.81–3(e) by adding portions of

Maury and Sequatchie Counties, TN,

changing the status of Lewis County,

TN, from partially to completely

infested, and revising quarantine

boundaries in Giles, Lincoln, and

Monroe Counties, TN, to incorporate

additional infested areas. We are taking

this action because recent surveys

conducted by APHIS and State and

county agencies revealed that the

imported fire ant has spread to these

areas.

We are also amending § 301.81–3(e)

by simplifying the descriptions of

quarantined areas in Decatur, Franklin,

Haywood, Henderson, Marshall, and

Moore Counties, TN, to make them

easier to understand and use. These

changes are nonsubstantive and do not

change the boundaries. See the rule

portion of this document for specific

descriptions of the new quarantined

areas and the simplified boundary

descriptions. Interested parties may also

view a map showing the imported fire

ant infested areas in the continental

United States on the Internet at http://

www.aphis.usda.gov/ppq/maps/

fireant.jpg.

Emergency Action

This rulemaking is necessary on an

emergency basis to prevent the spread of

imported fire ant into noninfested areas