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

50575 

Vol. 73, No. 167 

Wednesday, August 27, 2008 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR Parts 531 and 550 

RIN 3206–AL61 

Determining Rate of Basic Pay; 

Collection by Offset From Indebted 

Government Employees 

AGENCY: U.S. Office of Personnel 

Management. 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: The U.S. Office of Personnel 

Management is issuing proposed 

regulations to conform with provisions 

of the National Defense Authorization 

Act for Fiscal Year 2008. The proposed 

regulations revise the rules regarding 

setting pay for certain employees who 

move from nonappropriated fund 

instrumentality (NAFI) positions to 

General Schedule positions. Also, the 

proposed regulations allow certain 

NAFIs to collect debts owed to them by 

Federal employees via salary offset and 

allow Federal agencies to collect debts 

by offsetting salary payments of certain 

NAFI employees. 

DATES: Comments must be received on 

or before October 27, 2008. 

ADDRESSES: You may submit comments, 

identified by RIN ‘‘3206–AL61,’’ using 

any of the following methods: 

Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

E-mail: pay-performancepolicy@opm.gov. 

Fax: (202) 606–0824. 

Mail: Jerome D. Mikowicz, Deputy 

Associate Director for Pay and Leave 

Administration, Room 7H31, 1900 E 

Street, NW., Washington, DC 20415– 

8200. 

FOR FURTHER INFORMATION CONTACT: 

David Barash by telephone at (202) 606– 

2858; by fax at (202) 606–0824; or by email at pay-performancepolicy@opm.gov. 

SUPPLEMENTARY INFORMATION: The U.S. 

Office of Personnel Management (OPM) 

is issuing proposed regulations to revise 

the rules regarding setting pay for 

certain employees who move from 

nonappropriated fund instrumentality 

(NAFI) positions to General Schedule 

(GS) positions. Also, the proposed 

regulations allow certain NAFIs to 

collect debts owed to them by Federal 

employees via salary offset and allow 

Federal agencies to collect debts by 

offsetting salary payments of certain 

NAFI employees. The proposed 

regulations conform with sections 652 

and 1114 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181, January 28, 2008), 

hereafter referred to as ‘‘the Act.’’ These 

amendments became effective on 

January 28, 2008. 

Pay Setting Upon Movement From a 

NAFI to a GS Position 

Section 1114 of the Act amends 5 

U.S.C. 5334(f) to provide that a NAFI 

employee in the Department of Defense 

(DOD) or the United States Coast Guard 

(USCG) (as described in 5 U.S.C. 

2105(c)) who moves voluntarily to a GS 

position in DOD or USCG, respectively, 

without a break in service of more than 

3 days may (at the employing agency’s 

discretion) have the GS rate of basic pay 

set at the lowest step rate of the 

applicable GS grade that equals or 

exceeds the former NAFI rate. Under 

previous law, the employee’s GS rate of 

basic pay could not exceed the formerly 

applicable NAFI rate in such voluntary 

movements; thus, setting the rate at a GS 

step for these former NAFI employees 

generally resulted in a reduction in pay. 

The amendment permits DOD and 

USCG to set pay at the next higher step 

rate, avoiding a pay reduction. 

Therefore, we propose revising the 

regulations at 5 CFR 531.216 governing 

setting pay when a NAFI employee in 

DOD or USCG moves to a GS position 

in DOD or USCG, respectively, without 

a break in service of more than 3 days, 

to conform with changes made by the 

Act. 

Paragraph (c)(1) in § 531.216 currently 

states that when an employee covered 

under this section moves voluntarily, 

the agency may set the employee’s 

initial payable rate of basic pay at any 

step rate in the highest applicable rate 

range currently in effect for the 

employee’s GS position of record and 

official worksite which does not exceed 

the employee’s NAFI highest previous 

rate of pay, except as provided in 

paragraph (c)(2) or (3) of § 531.216. We 

propose revising this provision to allow 

DOD and USCG to set the employee’s 

initial payable rate of basic pay at the 

lowest step of the applicable GS grade 

that equals or exceeds the NAFI highest 

previous rate, or at a lower step. We also 

propose clarifying that pay may not be 

set above the maximum (step 10) rate of 

the rate range. 

We propose similar revisions in 

paragraph (c)(2) of § 531.216, which 

provides the rules for setting pay when 

a covered NAFI employee moves 

voluntarily and the highest applicable 

rate range would be different if the 

official worksite for the employee’s GS 

position of record were located at the 

place where the employee was stationed 

while earning the NAFI highest 

previous rate. 

Paragraph (d) of § 531.216 provides 

the rules for when a covered NAFI 

employee is moved involuntarily. Under 

paragraph (d)(1) of § 531.216, a covered 

employee who is moved involuntarily is 

entitled to an initial payable rate of 

basic pay at the lowest step rate of the 

grade that is equal to or greater than the 

employee’s rate of basic pay in the NAFI 

position immediately before the move. 

Paragraph (d)(2) of § 531.216 currently 

states that an agency may set the initial 

payable rate of basic pay at a step rate 

within the highest applicable rate range 

for the employee’s GS position of record 

and official worksite that does not 

exceed the employee’s NAFI highest 

previous rate (consistent with the 

method prescribed in paragraphs (c)(1) 

and (2)) if that provides a higher rate of 

basic pay than the employee’s 

entitlement under paragraph (d)(1). We 

propose revising paragraph (d)(1) of 

§ 531.216 to clarify that, if the 

employee’s former NAFI rate exceeds 

the range maximum, the agency must 

identify the maximum step rate (step 10) 

as the employee’s maximum payable 

rate. We also propose revising paragraph 

(d)(2)(i) in § 531.216 so an agency may 

set the initial payable rate of basic pay 

at the lowest step rate within the highest 

applicable rate range for the employee’s 

GS position of record and official 

worksite that equals or exceeds the 

employee’s NAFI highest previous rate, 

or any lower step rate (consistent with 

the proposed revisions to paragraphs 

(c)(1) and (2)) if that provides a higher 


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50576 Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Proposed Rules 

rate of basic pay than the employee’s 

entitlement under paragraph (d)(1). 

We are also taking this opportunity to 

clarify certain provisions. Section 

531.216 uses the phrases ‘‘without a 

change in employing agency’’ and 

‘‘same agency’’ to refer to movements 

within DOD and within USCG. 

However, these phrases are inconsistent 

with the definition of agency in 5 CFR 

531.203, which means (in part) an 

executive agency. For example, USCG is 

a component of the U.S. Department of 

Homeland Security (DHS) and is not an 

executive agency itself. The NAFI pay 

setting regulations at § 531.216 do not 

apply to a NAFI employee in the USCG 

who moves to a GS position within 

DHS, but outside of USCG. Therefore, 

we propose to clarify the regulations by 

replacing the phrases ‘‘without a change 

in employing agency’’, ‘‘different 

agency’’, and ‘‘same agency’’ in 

paragraphs (a), (c)(1) and (d)(1) of 

§ 531.216 with more descriptive and 

accurate phrases such as, ‘‘from a NAFI 

position in the Department of Defense or 

the Coast Guard to a GS position in the 

Department of Defense or the Coast 

Guard, respectively’’. 

Salary Offset 

Section 652 of the Act provides that 

employees of a NAFI of DOD or USCG 

(as described in 5 U.S.C. 2105(c)) are 

covered by the salary offset law in 5 

U.S.C. 5514. Section 5514 provides 

authority for collection of debts owed 

the Federal Government by offset of 

Federal employee salary payments. This 

amendment allows DOD and USCG 

NAFIs to collect debts owed to them by 

Federal employees via salary offset. It 

also allows Federal agencies to collect 

debts by offsetting salary payments of 

DOD and USCG NAFI employees. 

Therefore, we are proposing to revise 

the regulations at 5 CFR 550.1103 to add 

‘‘any nonappropriated fund 

instrumentality described in 5 U.S.C. 

2105(c)’’ to the definition of agency. 

In addition, we are proposing to 

revise the regulations at 5 CFR 550.1103 

to change the name of the Postal Rate 

Commission to Postal Regulatory 

Commission in the definition of agency 

as a result of section 604 of the Postal 

Accountability and Enhancement Act 

(Pub. L. 109–435, December 20, 2006), 

which amended 5 U.S.C. 5514(a)(5)(B), 

to reflect the Commission’s change in 

name. We also propose adding ‘‘If an 

agency under this definition is a 

component of an agency, the broader 

definition of agency may be used in 

applying the provisions of 5 U.S.C. 

5514(b) (concerning the authority to 

prescribe regulations).’’ This provision 

makes clear, for example, that DOD may 

issue salary offset regulations that cover 

the military departments and DOD 

NAFIs (as described in 5 U.S.C. 

2105(c)), even though each of those 

DOD components is itself an agency 

under the definition of agency in 

proposed § 550.1103. Since DOD is an 

executive department, it is a covered 

agency and can issue salary offset 

regulations that cover employees in 

every part of DOD, including employees 

in any DOD component that has 

separate status as an agency. 

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 these regulations will not 

have a significant economic impact on 

a substantial number of small entities 

because they will apply only to Federal 

agencies and employees. 

List of Subjects in 5 CFR Parts 531 and 

550 

Administrative practice and 

procedure; Claims; Government 

employees; Law enforcement officers; 

Wages. 

Office of Personnel Management. 

Michael W. Hager, 

Acting Director. 

Accordingly, OPM is proposing to 

amend 5 CFR parts 531 and 550 as 

follows: 

PART 531—PAY UNDER THE 

GENERAL SCHEDULE 

1. The authority citation for part 531 

is revised to read as follows: 

Authority: 5 U.S.C. 5115, 5307, and 5338; 

sec. 4 of Pub. L. 103–89, 107 Stat. 981; and 

E.O. 12748, 56 FR 4521, 3 CFR, 1991 Comp., 

p. 316; Subpart B also issued under 5 U.S.C. 

5303(g), 5305, 5333, 5334(a) and (b), and 

7701(b)(2); Subpart D also issued under 5 

U.S.C. 5335 and 7701(b)(2); Subpart E also 

issued under 5 U.S.C. 5336; Subpart F also 

issued under 5 U.S.C. 5304 and 5305; and 

E.O. 12883, 58 FR 63281, 3 CFR, 1993 Comp., 

p. 682 and E.O. 13106, 63 FR 68151, 3 CFR, 

1998 Comp., p. 224. 

Subpart B—Determining Rate of Basic 

Pay 

2. In § 531.216, paragraphs (a), (c)(1), 

(c)(2)(i), (c)(2)(ii), (d)(1), and (d)(2)(i) are 

revised to read as follows: 

§ 531.216 Setting pay when an employee 

moves from a Department of Defense or 

Coast Guard nonappropriated fund 

instrumentality. 

(a) General. This section governs the 

setting of pay for an employee who 

moves to a GS position in the 

Department of Defense or the Coast 

Guard from a position in a 

nonappropriated fund instrumentality 

(NAFI) (as described in 5 U.S.C. 2105(c)) 

of the Department of Defense or the 

Coast Guard, respectively, without a 

break in service of more than 3 days. If 

an employee moves from a NAFI 

position to a GS position with a break 

of more than 3 days or moves from a 

NAFI position in the Department of 

Defense or the Coast Guard to a GS 

position outside of the Department of 

Defense or the Coast Guard, 

respectively, the employee has no 

special conversion rights and this 

section does not apply. 

* * * * * 

(c) * * * (1) For a Department of 

Defense or Coast Guard employee who 

moves voluntarily, without a break in 

service of more than 3 days, from a 

NAFI position in the Department of 

Defense or the Coast Guard to a GS 

position in the Department of Defense or 

the Coast Guard, respectively, the 

agency may set the employee’s initial 

payable rate of basic pay at the lowest 

step rate in the highest applicable rate 

range currently in effect for the 

employee’s GS position of record and 

official worksite which equals or 

exceeds the employee’s NAFI highest 

previous rate of pay, or any lower step 

rate, except as provided in paragraph 

(c)(2) or (3) of this section. The 

employee’s initial payable rate of basic 

pay may not exceed the maximum step 

rate (step 10). 

(2) * * * 

(i) Compare the NAFI highest 

previous rate to the highest applicable 

rate range currently in effect in the 

location where the employee was 

stationed while earning that rate. The 

highest applicable rate range is 

determined based on the pay schedules 

that would be applicable to the 

employee’s current GS position of 

record if the employee were stationed in 

that location. Identify the lowest step 

rate in the highest applicable rate range 

that was equal to or exceeded the NAFI 

highest previous rate. If the NAFI 

highest previous rate is less than the 

range minimum, identify the minimum 

step rate (step 1). If the NAFI highest 

previous rate exceeds the range 

maximum, identify the maximum step 

rate (step 10). 

(ii) Identify the step rate in the highest 

applicable rate range for the employee’s 

current official worksite and position of 

record that corresponds to the step rate 

derived under paragraph (c)(2)(i) of this 

section. That corresponding rate is the 

maximum payable rate at which the 

agency may set the employee’s pay 


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Federal Register / Vol. 73, No. 167 / Wednesday, August 27, 2008 / Proposed Rules 50577 

under this section, except as provided 

by paragraph (c)(3) of this section. The 

agency may set the employee’s rate of 

basic pay at any step rate that does not 

exceed that maximum payable rate. 

* * * * * 

(d) * * * (1) For a Department of 

Defense or Coast Guard employee who 

is moved involuntarily (as defined in 

paragraph (d)(3) of this section), without 

a break in service of more than 3 days, 

from a NAFI position in the Department 

of Defense or the Coast Guard to a GS 

position with substantially the same 

duties in the Department of Defense or 

the Coast Guard, respectively, the 

employee is entitled to an initial 

payable rate of basic pay at the lowest 

step rate of the grade that is equal to or 

greater than the employee’s rate of basic 

pay in the NAFI position immediately 

before the move. If the employee’s 

former NAFI rate exceeds the range 

maximum, identify the maximum step 

rate (step 10). 

(2) * * * 

(i) The lowest step rate within the 

highest applicable rate range for the 

employee’s GS position of record and 

official worksite that equals or exceeds 

the employee’s NAFI highest previous 

rate, or any lower step rate (consistent 

with the method prescribed in 

paragraphs (c)(1) and (2) of this section); 

* * * * * 

PART 550—PAY ADMINISTRATION 

(GENERAL) 

Subpart K—Collection by Offset From 

Indebted Government Employees 

3. The authority citation for subpart K 

of part 550 continues to read as follows: 

Authority: 5 U.S.C. 5514; sec. 8(1) of E.O. 

11609; redesignated in sec. 2–1 of E.O. 

12107. 

4. In § 550.1103, the definition of 

agency is revised to read as follows: 

§ 550.1103 Definitions. 

* * * * * 

Agency means an executive 

department or agency; a military 

department; the United States Postal 

Service; the Postal Regulatory 

Commission; any nonappropriated fund 

instrumentality described in 5 U.S.C. 

2105(c); the United States Senate; the 

United States House of Representatives; 

any court, court administrative office, or 

instrumentality in the judicial or 

legislative branches of the Government; 

or a Government corporation. If an 

agency under this definition is a 

component of an agency, the broader 

definition of agency may be used in 

applying the provisions of 5 U.S.C. 

5514(b) (concerning the authority to 

prescribe regulations). 

* * * * * 

[FR Doc. E8–19819 Filed 8–26–08; 8:45 am] 

BILLING CODE 6325–39–P 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

7 CFR Part 319 

[Docket No. APHIS–2007–0152] 

RIN 0579–AC82 

Importation of Grapes from Chile 

Under a Systems Approach 

AGENCY: Animal and Plant Health 

Inspection Service, USDA. 

ACTION: Proposed rule. 

SUMMARY: We are proposing to amend 

the fruits and vegetables regulations to 

allow fresh table grapes from Chile to be 

imported into the continental United 

States under a systems approach. 

Currently, as a condition of entry, all 

table grapes from Chile must be 

fumigated with methyl bromide as a 

risk-mitigation measure for Brevipalpus 

chilensis. Under this proposal, we 

would allow a combination of riskmitigation measures, or systems 

approach, to be employed in lieu of 

methyl bromide fumigation. The 

systems approach would provide an 

alternative to methyl bromide while 

continuing to provide protection against 

the introduction of quarantine pests into 

the United States. 

DATES: We will consider all comments 

that we receive on or before October 27, 

2008. 

ADDRESSES: You may submit comments 

by either of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov/fdmspublic/ 

component/ 

main?main=DocketDetail&d=APHIS2007-01 52 to submit or view comments 

and to view supporting and related 

materials available electronically. 

• Postal Mail/Commercial Delivery: 

Please send two copies of your comment 

to Docket No. APHIS–2007–0152, 

Regulatory Analysis and Development, 

PPD, APHIS, Station 3A–03.8,4700 

River Road Unit 118, Riverdale, MD 

20737–1238. Please state that your 

comment refers to Docket No. APHIS–

2007–0152. 

Reading Room: 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. 

Other Information: Additional 

information about APHIS and its 

programs is available on the Internet at 

http://www.aphis.usda.gov. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Alex Belano, Assistant Branch Chief, 

Commodity Import Analysis and 

Operations, PPQ, APHIS, 4700 River 

Road Unit 133, Riverdale, MD 20737–

1231; (301) 734–5333. 

SUPPLEMENTARY INFORMATION: 

Background 

The regulations in ‘‘Subpart—Fruits 

and Vegetables’’ (7 CFR 319.56 through 

319.56–47, referred to below as the 

regulations) prohibit or restrict the 

importation of fruits and vegetables into 

the United States from certain parts of 

the world to prevent the introduction 

and dissemination of plant pests that are 

new to or not widely distributed within 

the United States. 

Currently, the importation of table 

grapes (Vitis vinifera L.) from Chile into 

the United States is authorized under 

§ 319.56–4 of the regulations. 

Accordingly, Chilean table grapes are 

listed in the Plant Protection and 

Quarantine Fresh Fruits and Vegetables 

Import Manual, which may be viewed 

on the Internet at http:// 

www.aphis.usda.gov/import_export/ 

plants/manuals/ports/downloads/ 

fv.pdf, as a commodity approved for 

entry into the United States, subject to 

certain conditions. 

The regulations in 7 CFR part 305, 

‘‘Phytosanitary Treatments,’’ specify the 

treatment schedules that must be used 

on certain commodities prior to their 

importation or entry into the United 

States. Currently, in § 305.2 of these 

regulations, paragraph (i) identifies 

several different treatment schedules for 

use on table grapes from Chile as riskmitigation measures for Brevipalpus 

chilensis mites and/or Mediterranean 

fruit fly (Ceratitis capitata, referred to 

below as Medfly), depending on the area 

of Chile from which the fruit originates. 

If the grapes originate from an area of 

Chile in which both pests are known to 

exist, the grapes must be treated with 

methyl bromide for B. chilensis 

followed by cold treatment for Medfly. 

If the table grapes originate from an area 

of Chile that the Animal and Plant 

Health Inspection Service (APHIS) has 

declared a pest-free area for Medfly in 


sroberts on PROD1PC70 with PROPOSALS