[Federal Register: July 27, 2000 (Volume 65, Number 145)]
[Proposed Rules]
[Page 46114-46115]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jy00-12]
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[[Page 46114]]
DEPARTMENT OF AGRICULTURE
7 CFR Part 51
[Docket Number FV-99-302]
RIN 0581-AB63
Withdrawal of Proposed Rule for Fee Increase for Destination
Market Inspections of Fresh Fruits, Vegetables and Other Products
AGENCY: Agricultural Marketing Service (AMS), USDA.
ACTION: Proposed rule: withdrawal.
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SUMMARY: AMS is withdrawing a proposed rule published in the Federal
Register on September 20, 1999 (64 FR 50774). The proposed rule would
have revised the regulations governing the inspection and certification
for fresh fruits, vegetables and other products by increasing by
approximately 14 percent most of the fees charged for the inspection of
these products at destination markets. The fees for inspecting multiple
lots of the same product during inspections would have increased more
significantly and the per package fees for dock-side inspections would
have increased and changed from a three interval schedule, based on
weight, to a two interval schedule based on different weight
thresholds. These revisions were necessary in order to recover, as
nearly as practicable, the costs of performing inspection services at
destination markets under the Agricultural Marketing Act of 1946 (AMA
of 1946). The fees charged to persons required to have inspections on
imported commodities in accordance with the Agricultural Marketing
Agreement Act of 1937 and for imported peanuts under the Agricultural
Act of 1949 also would have been affected.
DATES: The proposed rule is withdrawn as of July 28, 2000.
ADDRESSES: Supporting information used in developing the proposed rule,
including comments received during the period for public comment on the
proposed rule, are available for public inspection and copy at the
Fresh Products Branch Docket File at USDA, AMS, FVP, Fresh Products
Branch, Room 2049 South, USDA Stop 0240, 1400 Independence Ave., SW,
Washington, DC 20250-0240. For access to the Docket materials, call
(202) 720-5870 between 9 a.m. and 3:30 p.m. for an appointment. A
reasonable fee may be charged for copying.
FOR FURTHER INFORMATION CONTACT: Rob Huttenlocker, USDA Stop 0240, 1400
Independence Ave., SW, Washington, DC 20250-0240, or by calling (202)
720-5870.
SUPPLEMENTARY INFORMATION: The AMA of 1946 authorizes official
inspection, grading and certification, on a user-fee basis, of fresh
fruits, vegetables and other products such as raw nuts, Christmas trees
and flowers. The AMA of 1946 provides that reasonable fees be collected
from the users of the services to cover, as nearly as practicable, the
costs of the services rendered. The proposed rule would have amended
the schedule for fees and charges for inspection services rendered to
the fresh fruit and vegetable industry to reflect the costs necessary
to operate the program.
The Agricultural Marketing Service (AMS) regularly reviews its
user-fee programs to determine if the fees are adequate. While the
Fresh Products Branch (FPB) of the Fruit and Vegetable Programs, AMS,
continues to search for opportunities to reduce its costs, the existing
fee schedule would not have generated sufficient revenues to cover
program costs while maintaining an adequate reserve balance. Current
revenue projections for destination market inspection work during FY 99
are $13.7 million with costs projected at $13.9 million and an end-of-
year reserve of $2.2 million. However, FPB's trust fund balance for
this program will be approximately $2.4 million under the approximate
$4.6 million deemed necessary to provide an adequate reserve balance in
light of increasing program costs. Further, FPB's costs of operating
the destination market program are expected to increase to
approximately $14.5 million during FY 00 and to approximately $15.0
million during FY 01. These cost increases will result from
inflationary increases with regard to current FPB operations and
services (primarily salaries and benefits), the training and equipment
required to promote improved workplace safety, and the acquisition of
additional computer and related technology.
Employee salaries and benefits are major program costs that account
for approximately 80 percent of FPB's total operating budget. A general
and locality salary increase for Federal employees, ranging from 3.54
to 4.02 percent depending on locality, effective January 1999,
significantly increased program costs. In addition, inflation also
impacts FPB's non-salary costs. These factors have increased FPB's
costs of operating this program by approximately $500,000 per year. In
addition, a general and locality salary increase of 4.8 percent was
effective in January 2000. This salary adjustment will increase FPB's
costs by over $600,000 per year.
Additional revenues also were necessary in order for FPB to cover
the costs of the additional staff, office space, and equipment needed
in two federal market offices that were established during FY 99 (e.g.,
Brooklyn, New York, and Oklahoma City, Oklahoma). Additional revenues
also were needed to cover the costs of providing safety orientation
training to FPB's personnel and purchasing safety shoes for FPB's
inspection personnel. Finally, FPB needed additional funds to cover the
costs of securing the equipment (e.g., digital imaging cameras and
computers and information systems upgrades) needed to expand FPB's
services and to make existing services more efficient in the future.
Congress recently passed and, on June 20, 2000, the President
signed legislation (H.R. 2559) (Public Law 106-224), authorizing
appropriated funds that will make it possible for FPB to build the
Terminal Market Inspection Program's reserve fund by $29 million.
Congress and the President also approved an additional $11.55 million
in appropriated funds that will make it possible for FPB to implement
infrastructure and system improvements. These funds are appropriated
for fiscal year 2001. Since Public Law 106-224 addresses the funds
needed by AMS, FPB program, it is unnecessary to continue this
rulemaking. Therefore, AMS withdraws the proposed rule.
Authority: 7 U.S.C. 1621-1627.
[[Page 46115]]
Dated: July 21, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-18964 Filed 7-26-00; 8:45 am]
BILLING CODE 3410-02-P
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