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

18019

Vol. 62, No. 71

Monday, April 14, 1997

FEDERAL RETIREMENT THRIFT

INVESTMENT BOARD

5 CFR Part 1655

Thrift Savings Plan Loans

AGENCY: Federal Retirement Thrift

Investment Board.

ACTION: Final rule.

SUMMARY: The Executive Director of the

Federal Retirement Thrift Investment

Board (Board) is adopting as final the

Board’s interim Thrift Savings Plan

(TSP) loan regulations without change.

DATES: This final rule is effective April

14, 1997.

FOR FURTHER INFORMATION CONTACT:

Patrick J. Forrest on (202) 942–1662.

SUPPLEMENTARY INFORMATION: The Board

administers the Thrift Savings Plan

(TSP), a defined contribution plan for

Federal employees established by the

Federal Employees’ Retirement System

Act of 1986, Pub. L. 99–335, 100 Stat.

514, codified as amended, largely at 5

U.S.C. 8401–8479.

On January 10, 1990, the Board

published an interim rule with request

for comments in the Federal Register

(55 FR 978) which created 5 CFR part

1655 to govern the TSP loan program.

On November 18, 1996, the Board

published an interim rule with request

for comments in the Federal Register

(61 FR 58754) which amended the

interim loan regulations to conform

them with the Thrift Savings Plan Act

of 1996, Pub. L. 104–208, and to codify

improvements made to TSP loan

procedures since 1990. The Board

received no comments on either interim

rule; therefore, we are adopting the

interim regulations as final without

change.

Regulatory Flexibility Act

I certify that these regulations will not

have a significant economic impact on

a substantial number of small entities

because they will affect only employees

of the United States Government.

Paperwork Reduction Act

I certify that these regulations do not

require additional reporting under the

criteria of the Paperwork Reduction Act

of 1980.

Unfunded Mandates Reform Act of

1995

Pursuant to the Unfunded Mandates

Reform Act of 1995, Pub. L. 104–4,

section 201, 109 Stat. 48, 64, the effect

of these regulations on State, local, and

tribal governments and on the private

sector has been assessed. These

regulations will not compel the

expenditure in any one year of $100

million or more by any State, local, or

tribal governments in the aggregate or by

the private sector. Therefore, a

statement under section 202, 109 Stat.

48, 64–65, is not required.

Submission to Congress and the

General Accounting Office

Under 5 U.S.C. 801(a)(1)(A), the Board

submitted a report containing this rule

and other required information to the

U.S. Senate, the U.S. House of

Representatives, and the Comptroller

General of the United States prior to

publication of this rule in today’s

Federal Register. This rule is not a

major rule as defined at 5 U.S.C. 804(2).

Federal Retirement Thrift Investment Board

Roger W. Mehle,

Executive Director.

Accordingly, the interim rule adding

5 CFR part 1655 which was published

at 55 FR 978 on January 10, 1990, and

the portion of the interim rule amending

5 CFR part 1655 which was published

at 61 FR 58754 on November 18, 1996,

are adopted as final without change.

[FR Doc. 97–9533 Filed 4–11–97; 8:45 am]

BILLING CODE 6760–01–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 56 and 70

[Docket No. PY–97–001]

Egg, Poultry, and Rabbit Grading

Increase in Fees and Charges

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. These fees

and charges are 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.

EFFECTIVE DATE: May 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Douglas C. Bailey, Chief,

Standardization Branch, (202) 720–

3506.

SUPPLEMENTARY INFORMATION: This rule

has been determined not-significant for

purposes of Executive Order 12866 and

has not been reviewed by the Office of

Management and Budget (OMB).

This rule 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.

Pursuant to the requirements set forth

in the Regulatory Flexibility Act (RFA),

the AMS has considered the economic

impact of this action on small entities.

There are more than 400 users of the

Poultry Division’s grading services.

Many of these users are small entities

under the criteria established by the

Small Business Administration (13 CFR

121.601). This rule raises the fees

charged to all businesses for voluntary

grading services for eggs, poultry, and

rabbits. The AMS estimates that overall

this rule will yield an additional $1.2

million during fiscal year (FY) 1998.

Without the fee increase, anticipated

revenue will not cover program costs

and projected FY 98 revenues for

grading services are $21.7 million with

costs projected at $23.1 million. Trust

fund balances would be below

appropriate levels. With a fee increase,

projected FY 98 revenues are $22.9

million with costs projected at $23.1

million. The hourly resident rate will

increase by approximately 5.5 percent

while the hourly nonresident rate for

grading service will increase by

approximately 15.8 percent. The costs to
18020 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

entities will be proportional to their use

of service, so that costs are shared

equitably by all users. Furthermore,

entities are under no obligation to use

these grading services.

The AMS has certified that this action

will not have a significant impact on a

substantial number of small entities, as

defined in the RFA (5 U.S.C. 601).

The information collection

requirements that appear in the sections

amended by this rule have been

previously approved by OMB and

assigned OMB Control Numbers under

the Paperwork Reduction Act of 1980 as

follows: § 56.52(a)(4)—No. 0581–0128;

and § 70.77(a)(4)—No. 0581–0127.

Background

The Agricultural Marketing Act

(AMA) of 1946 authorizes official

grading and certification on a user-fee

basis of eggs, poultry, and rabbits. 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. AMS regularly reviews these

programs to determine if fees are

adequate and if costs are reasonable.

This rule will 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 the program.

In 1995 the egg products inspection

program was transferred to the Food

Safety and Inspection Service. In order

to offset the loss of efficiencies and to

avoid an increase in user fees for the

remaining shell egg and poultry grading

programs, AMS took several

streamlining actions in supervisory and

support activities. These actions

included reducing the number of

supervisory visits; consolidating and

closing submanagement offices;

consolidating the billing and support

functions into two regional offices;

realigning regional boundaries; and

substantially reducing the Washington,

DC headquarters staff. As a result, no fee

increase was necessary due to the

reorganization. However, increased

salaries and other costs and a

substantial shift from resident to

nonresident grading services now

require an increase in fees.

Employee salaries and benefits are

major program costs that account for

approximately 82 percent of the total

operating budget. Materially affecting

program costs were general and locality

salary increases for Federal employees

which, depending on locality, ranged

from 3.09 to 6.25 percent in January

1995, 2.39 to 2.87 percent in January

1996, and 2.24 to 4.66 percent in

January 1997. Also, from November

1994 through September 1997, salaries

and fringe benefits of federally licensed

State employees will have increased by

about 7 percent. Further, since October

1993, standardization program costs

must be recovered from grading program

user fees. As a result, the hourly

resident rate for grading services will

increase by approximately 5.5 percent.

The hourly resident rate covers graders’

salaries, fringe benefits, and related

costs.

Another factor affecting the current

fee structure is the shift from resident to

nonresident grading services.

Historically, the majority of shell egg

and poultry grading has been done on

a resident basis according to the official

U.S. quality grade standards. Today,

however, a growing volume of shell eggs

and poultry is being traded according to

product-specific purchase specifications

where USDA certification is required,

and this work is done increasingly on a

nonresident fee basis. This shift has

increased the proportion of overhead

costs necessary to administer the

nonresident services. As a result, users

of nonresident services are not

supporting their share of the program’s

overhead costs under the present fee

structure. For this reason, the hourly

nonresident rate for grading service will

increase by approximately 15.8 percent.

A recent review of the current fee

schedule, effective since November 1,

1994, revealed that anticipated revenue

will not adequately cover increasing

program costs. Without a fee increase,

projected FY 98 revenues for grading

services are $21.7 million with costs

projected at $23.1 million, and trust

fund balances would be below

appropriate levels. With a fee increase,

projected FY 98 revenues are $22.9

million with costs projected at $23.1

million.

Service Revised

Resident shell egg and

poultry grading

Administrative charges (supervision, other overhead and

administrative costs) assessed on the volume of

product handled:

Per pound of poultry ........ .00033

Per 30-dozen case of

shell eggs ..................... .038

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

Maximum per month ........ 2,250

Nonresident shell egg and

poultry grading and Resident rabbit grading

Administrative charge based

on 25% of grader’s salary,

minimum per month ............ 225

Service Revised

Nonresident fee basis poultry, shell egg and rabbit

grading

Regular time, rate per hour .... 38.96

Saturdays, Sundays, and legal

holidays, rate per hour ........ 43.24

Appeal grading and Review

of grader’s decision

Rate per hour .......................... 30.56

Inauguration of resident grading service ........................... 310

Comments

Based on an analysis of costs to

provide these services, a proposed rule

to increase the fees for these services

was published in the Federal Register

(62 FR 4662) on January 31, 1997.

Comments on the proposed rule were

solicited from interested parties until

March 3, 1997.

During the 30-day comment period,

the Agency received five comments in

opposition to the proposal; three from

egg producers, one from a national egg

industry organization, and one from a

poultry processor. They expressed a

general concern about the cost of the

grading program. Several commentors

encouraged AMS to find and implement

additional cost-saving measures in lieu

of a fee increase. Although AMS has

implemented significant cost-saving

actions over the past several years as

described above and remains committed

to controlling program costs wherever

possible, implementation of the

proposed fee increases remains

necessary to ensure the financial

stability of the grading program.

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

and determined that good cause exists

for not postponing the effective date of

the action until 30 days after

publication in the Federal Register,

because the proposed fees need to be

implemented on an expedited basis in

order to avoid financial losses in the

grading program this fiscal year. Also,

the effective date of the fee increase will

be set to coincide with the next billing

cycle beginning on May 1, 1997.

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.
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18021

For reasons set forth in the preamble,

title 7, Code of Federal Regulations,

parts 56 and 70 is 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 amended by

revising paragraphs (b) and (c) to read

as follows:

§ 56.46 On a fee basis.

* * * * *

(b) Fees for grading services will be

based on the time required to perform

the services. The hourly charge shall be

$38.96 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 $43.24

per hour. Information on legal holidays

is available from the Supervisor.

3. Section 56.47 is revised to read as

follows:

§ 56.47 Fees for appeal grading or review

of a grader’s decision.

The cost of an appeal grading or

review of a grader’s decision shall be

borne by the appellant at an hourly rate

of $30.56 for the time spent in

performing the appeal and travel time to

and from the site of the appeal, plus any

additional expenses. If the appeal

grading or review of a grader’s decision

discloses that a material error was made

in the original determination, no fee or

expenses will be charged.

4. Section 56.52 is amended by

revising paragraph (a)(4) to read as

follows:

§ 56.52 Continuous grading performed on

resident basis.

* * * * *

(a) * * *

(4) An administrative service charge

based upon the aggregate number of 30-

dozen cases of all shell eggs handled in

the plant per billing period multiplied

by $0.038, except that the minimum

charge per billing period shall be $225

and the maximum charge shall be

$2,250. The minimum charge also

applies where an approved application

is in effect and no product is handled.

* * * * *

5. Section 56.54 is amended by

revising paragraph (a)(2) to read as

follows:

§ 56.54 Charges for continuous grading

performed on a nonresident basis.

* * * * *

(a) * * *

(2) An administrative service charge

equal to 25 percent of the grader’s total

salary costs. A minimum charge of $225

will be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

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 70.71 is amended by

revising paragraphs (b) and (c) to read

as follows:

§ 70.71 On a fee basis.

* * * * *

(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 $38.96 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 $43.24

per hour. Information on legal holidays

is available from the Supervisor.

8. Section 70.72 is revised to read as

follows:

§ 70.72 Fees for appeal grading, or

examination or review of a grader’s

decision.

The costs of an appeal grading, or

examination or review of a grader’s

decision, will be borne by the appellant

at an hourly rate of $30.56 for the time

spent in performing the appeal and

travel time to and from the site of the

appeal, plus any additional expenses. If

the appeal grading, or examination or

review of a grader’s decision, discloses

that a material error was made in the

original determination, no fee or

expenses will be charged.

9. Section 70.76 is amended by

revising paragraph (a)(2) to read as

follows:

§ 70.76 Charges for continuous poultry

grading performed on a nonresident basis.

* * * * *

(a) * * *

(2) An administrative service charge

equal to 25 percent of the grader’s total

salary costs. A minimum charge of $225

will be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

10. Section 70.77 is amended by

revising paragraphs (a)(4) and (a)(5) to

read as follows:

§ 70.77 Charges for continuous poultry or

rabbit grading performed on a resident

basis.

* * * * *

(a) * * *

(4) For poultry grading: An

administrative service charge based

upon the aggregate weight of the total

volume of all live and ready-to-cook

poultry handled in the plant per billing

period computed in accordance with the

following: Total pounds per billing

period multiplied by $0.00033, except

that the minimum charge per billing

period shall be $225 and the maximum

charge shall be $2,250. The minimum

charge also applies where an approved

application is in effect and no product

is handled.

(5) For rabbit grading: An

administrative service charge equal to

25 percent of the grader’s total salary

costs. A minimum charge of $225 will

be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

Dated: April 7, 1997.

Lon Hatamiya,

Administrator.

[FR Doc. 97–9478 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 946

[Docket No. FV97–946–1 IFR]

Irish Potatoes Grown in Washington;

Amended Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final rule

decreases the assessment rate

established for the State of Washington

Potato Committee (Committee) under

Marketing Order No. 946 for the 1997–

98 and subsequent fiscal periods. The

Committee is responsible for local

administration of the marketing order

which regulates the handling of Irish

potatoes grown in Washington.