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

25150

Vol. 60, No. 91

Thursday, May 11, 1995

OFFICE OF PERSONNEL

MANAGEMENT

5 CFR Part 591

RIN 3206–AG73

Cost-of-Living Allowances (Nonforeign

Areas)

AGENCY: Office of Personnel

Management.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Office of Personnel

Management (OPM) is proposing three

regulatory changes in the nonforeign

area cost-of-living allowance (COLA)

program. One change would allow us to

simplify living-cost surveys and

analyses used to determine COLA rates

by permitting the survey and analysis of

living costs at fewer income levels than

the three levels currently used. The

second change would clarify the types

of housing units to be surveyed. The

third change would allow the payment

of foreign area post differentials without

any corresponding offset for the

nonforeign area COLA. OPM is also

announcing its intention to change the

timing of living-cost surveys conducted

in Hawaii, Guam, Puerto Rico, and the

U.S. Virgin Islands and is inviting

comments on this change in timing.

DATES: Comments must be received on

or before June 12, 1995.

ADDRESSES: Send or deliver written

comments to Donald J. Winstead, Acting

Assistant Director for Compensation

Policy, Personnel Systems and

Oversight Group, Office of Personnel

Management, Room 6H31, 1900 E Street

NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:

Allan G. Hearne, (202) 606–2838.

SUPPLEMENTARY INFORMATION: Under

section 5941 of title 5, United States

Code, and Executive Order 10000, as

amended, certain Federal employees in

nonforeign areas outside the 48

contiguous States are eligible for cost-ofliving allowances (COLA’s) when local

living costs are substantially higher than

those in the Washington, DC, area.

Nonforeign area COLA’s are paid in

Alaska, Hawaii, Puerto Rico, the U.S.

Virgin Islands, and Guam and the

Commonwealth of the Northern Mariana

Islands.

Number of Income Levels Surveyed

To determine COLA rates, OPM

conducts living-cost surveys in each of

the allowance areas and in the

Washington, DC, area. Under

§ 591.205(b) of title 5, Code of Federal

Regulations, OPM is required to

estimate living costs at ‘‘several income

levels.’’ Currently, OPM surveys and

analyzes living costs at three income

levels.

Some COLA recipients have

recommended that OPM simplify the

COLA methodology by using only one

income level. Conceptually, a multiple

income level approach should yield a

more balanced measurement of livingcost differences. In application,

however, the use of multiple income

levels requires certain subjective

assumptions. Therefore, OPM believes

the overall integrity of the model will

not be impaired if fewer income levels

are used.

In future COLA surveys and analyses,

OPM proposes to use a single income

level approach. If we adopt this

approach, we will use Washington, DC,

area Consumer Expenditure Survey

(CES) data, provided by the Bureau of

Labor Statistics, Department of Labor, to

develop category and component

expenditure weights for the COLA

model. In the past, some COLA

recipients have criticized OPM for using

nationwide CES data to develop these

weights. (Nationwide CES data are the

only data known to OPM that provide

expenditure information by income

level. Detailed DC-area CES data are not

available by income level.) By adopting

a single income level approach, OPM

would be able to use base area

expenditure data to develop category

and component weights. Since

Washington, DC, is the reference or base

area for living-cost surveys, use of DCarea derived weights would be

consistent with the overall COLA

methodology.

Some COLA recipients have suggested

that OPM should use weights based on

the expenditures of people in the

allowance areas. As OPM has stated in

previous Federal Register notices, OPM

is aware of such consumer expenditure

information for only two allowance

areas: Anchorage, Alaska, and

Honolulu, Hawaii. Although it might be

possible to use allowance area derived

weights for these two areas, OPM would

not be able to use similarly derived

weights for the nine other allowance

areas. For this reason and because of the

methodological considerations noted

above, OPM proposes to use

Washington, DC, area weights.

Types of Housing Units Surveyed

OPM is also proposing to clarify in

§ 591.205(b)(3) the parenthetical phrase

‘‘(type, size, age),’’ which modifies

‘‘standard shelter specifications.’’ We

believe it is not practical to obtain and

compare housing data for each of these

three criteria. Since we are modifying

this paragraph to accommodate the

survey of fewer income levels, we are

using this opportunity to clarify the

phrase to read ‘‘(type and size)’’.

Nonforeign Area COLA and Foreign

Post Differentials

OPM is further proposing to eliminate

the requirement in § 591.210(d) that an

employee’s nonforeign area COLA be

reduced if the employee also receives a

foreign area post differential and the

two payments combined would

otherwise exceed 25 percent of basic

pay. OPM has received comments from

Federal employees and agencies who

believe this regulation can create a

disincentive for employees in

nonforeign allowance areas to accept

long-term temporary assignments in

foreign areas. OPM agrees. Therefore,

we are proposing to eliminate the

requirement that an employee’s

nonforeign area COLA be reduced if the

employee also receives a foreign area

post differential.

Survey Timing

OPM is also announcing its intention

to change the timing of the summer

COLA surveys to correspond with the

winter COLA surveys. No regulatory

change is required to make this change,

but OPM invites comments on the

proposed change in timing. Currently,

OPM surveys Hawaii, Guam, Puerto

Rico, and the U.S. Virgin Islands (often

called ‘‘tropical allowance areas’’) in the

summer and surveys Alaska in the

winter. The Washington, DC, area is

surveyed twice—once in the summer

and once in the winter.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25151

Some Federal employees have

suggested that OPM change the timing

of the tropical area surveys to the winter

months. OPM reviewed information

from the Bureau of Labor Statistics; the

Department of Defense Per Diem,

Travel, and Transportation Allowance

Committee; the Puerto Rico Department

of Labor and Human Resources, and the

Guam Department of Commerce. With

one exception, OPM did not find

evidence of significant seasonal

variation in prices in the tropical

allowance areas or in the Washington,

DC, area. The exception was hotel and

motel prices, which appear to vary

significantly by season in Kauai,

Hawaii; Maui, Hawaii; San Juan, Puerto

Rico; and the U.S. Virgin Islands. In

terms of lodging prices, the ‘‘peak

tourist season’’ for these areas seems

generally to be the months of January

through March.

Although lodging prices may vary

significantly by season in some areas,

the evaluation of available information

leads OPM to believe that most other

prices do not. Therefore, changing the

timing of the tropical area surveys

should have little effect on the COLA

rates and will address suggestions made

by some COLA recipients. In addition,

the change should reduce the survey’s

public burden and cost. If both the

tropical areas and the Alaska areas are

surveyed in the January through March

time frame, Washington, DC, area prices

would be surveyed only once—not

twice, as is currently the case. This will

reduce the reporting burden of the

respondents in the DC area and some of

the Government’s costs associated with

the surveys. Therefore, in view of the

COLA recipients’ suggestions, the

potential benefit to the public and the

Government, and anticipated minimal

impact, OPM plans to conduct livingcost surveys in Hawaii, Guam, Puerto

Rico, and the U.S. Virgin Islands in the

first quarter of the calendar year

beginning with the next survey, which

will be conducted in the first quarter of

calendar year 1996.

E.O. 12866, Regulatory Review

This rule has been reviewed by the

Office of Management and Budget in

accordance with E.O. 12866.

Regulatory Flexibility Act

I certify that this regulation would not

have a significant economic impact on

a substantial number of small entities

because the regulation would affect only

Federal agencies and employees.

List of Subjects in 5 CFR Part 591

Government employees, Travel and

transportation expenses, Wages.

Office of Personnel Management

James B. King,

Director.

Accordingly, OPM proposes to amend

5 CFR part 591 as follows:

PART 591—ALLOWANCES AND

DIFFERENTIALS

Subpart B—Cost-of-Living Allowance

and Post Differential—Nonforeign

Areas

1. The authority citation for subpart B

of Part 591 continues to read as follows:

Authority: 5 U.S.C. 5941; E.O. 10000, 3

CFR, 1943–1948 Comp., p. 792; E.O. 12510,

3 CFR, 1985 Comp., p. 338.

2. Section 591.205 is amended by

removing the word ‘‘several’’ in

paragraphs (b) and (b)(1) and by adding

the words ‘‘one or more’’ in its place; in

paragraph (b)(3) by removing the second

and third sentences and adding in their

place the sentence, ‘‘Standard shelter

specifications (type and size) and

appropriate living communities are

selected for survey.’’; and in paragraph

(c) by revising the third sentence to read

as follows:

§ 591.205 Comparative cost index.

* * * * *

(c) * * * When two or more income

levels are used in the analyses, the

dollar amounts for each income level

are weighted into one average amount to

reflect the GS grade distribution for the

allowance area. * * *

* * * * *

§ 591.210 [Amended]

3. In § 591.210, paragraph (d) is

removed; and paragraphs (e), (f), and (g)

are redesignated as paragraphs (d), (e),

and (f), respectively.

[FR Doc. 95–11543 Filed 5–10–95; 8:45 am]

BILLING CODE 6325–01–M

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Parts 92 and 98

[Docket No. 94–085–2]

Importation of Sheep and Goats and

Germ Plasm From Sheep and Goats

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Proposed rule.

SUMMARY: We are proposing to amend

the animal importation regulations to

revise who may issue health certificates

for ruminants offered for importation.

This amendment would make the

regulations more consistent with regard

to different animals and countries and

would provide for an alternative method

of issuing health certificates. We are

also proposing to amend the animal

importation regulations to revise the

conditions for importing sheep and

goats. Likewise, we are proposing to

amend the animal germ plasm

regulations to revise the conditions for

importing germ plasm from sheep and

goats. These changes appear necessary

to prevent the importation of sheep and

goats, and germ plasm from sheep and

goats, that may be affected with scrapie.

In addition, we are proposing to

amend the animal importation

regulations to allow imported goats to

be quarantined in privately operated

quarantine facilities that meet the

requirements that now apply to

privately operated quarantine facilities

for sheep. This amendment would

provide uniform rules for the quarantine

of animals which pose an identical

disease risk.

Lastly, we are proposing to remove

from the regulations health certificate

requirements with regard to the

importation of sheep from New Zealand.

Since it appears that sheep from New

Zealand pose no greater disease risk

than sheep from other countries, it is no

longer necessary to require such sheep

to meet special health certificate

requirements.

COMMENTS: Consideration will be given

only to comments received on or before

July 10, 1995.

ADDRESSES: Please send an original and

three copies of your comments to

Docket No. 94–085–2, Animal and Plant

Health Inspection Service, Policy and

Program Development, Regulatory

Analysis and Development, 4700 River

Road Unit 118, Riverdale, MD 20737–

1228. Please state that your comments

refer to Docket No. 94–085–2.

Comments received may be inspected at

USDA, room 1141, South Building, 14th

Street and Independence Avenue SW.,

Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday,

except holidays. Persons wishing to

inspect comments are requested to call

ahead on (202) 690–2817 to facilitate

entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Dr.

Joyce Bowling, Staff Veterinarian, or Dr.

Roger Perkins, Staff Veterinarian,

Animal and Plant Health Inspection

Service, Veterinary Services, National

Center for Import and Export, 4700

River Road Unit 38, Riverdale, MD

20737–1228. Telephone: (301) 734–

8170.