[Federal Register Volume 81, Number 215 (Monday, November 7, 2016)]
[Proposed Rules]
[Pages 78057-78062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25690]
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Proposed Rules
Federal Register
________________________________________________________________________
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.
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Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 /
Proposed Rules
[[Page 78057]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 56, 62, and 70
[Doc. # AMS-LPS-15-0057]
Amendments to Quality Systems Verification Programs and
Conforming Changes
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Agricultural Marketing Service (AMS) proposes to amend its
regulations to better reflect the current needs of Quality Systems
Verification Program (QSVP) activities and to implement changes created
by the merger of the AMS Livestock and Seed Program and the AMS Poultry
Programs. These proposed changes include amending the Livestock, Meat,
and Other Agricultural Commodities QSVP to expand the commodities under
the QSVP to include those authorized under the Agricultural Marketing
Act of 1946 (hereafter referred to as ``the Act''), remove reference to
``Livestock, Meat, and Other Commodities'' in the title, more clearly
identify and define the types of programs and services offered under
QSVP, and make other technical and administrative changes.
Simultaneously, AMS proposes to make conforming changes to the
regulations pertaining to the Voluntary Grading of Shell Eggs and
Voluntary Grading of Poultry Products and Rabbit Products to remove
references to audit activities.
DATES: Comments must be received by January 6, 2017. Pursuant to the
Paperwork Reduction Act, comments on the information collection burden
that would result from this rulemaking must be received by January 6,
2017.
ADDRESSES: Comments should be submitted electronically at
www.regulations.gov. Comments received will be posted without change,
including any personal information provided. All comments should
reference the docket number AMS-LPS-15-0057, the date of submission,
and the page number of this issue of the Federal Register. Comments may
also be submitted to: Jeffrey Waite, Branch Chief, Auditing Services
Branch, Quality Assessment Division; Livestock, Poultry, and Seed
Program, Agricultural Marketing Service, U.S. Department of
Agriculture; Room 3932S, STOP 0258, 1400 Independence Avenue SW.;
Washington, DC 20250-0258. Comments will be made available for public
inspection at the above address during regular business hours or
electronically at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Jeffrey Waite, Branch Chief, Auditing
Services Branch, Quality Assessment Division; Livestock, Poultry, and
Seed Program, Agricultural Marketing Service, U.S. Department of
Agriculture; Room 3932S, STOP 0258, 1400 Independence Avenue SW;
Washington, DC 20250-0258; telephone (202) 720-4411; or email to
[email protected].
SUPPLEMENTARY INFORMATION:
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
This rulemaking has been determined to be not significant for purposes
of Executive Order 12866 or Executive Order 13563. Accordingly, the
Office of Management and Budget (OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this proposed regulation
would not have substantial and direct effects on Tribal governments and
would not have significant Tribal implications.
Regulatory Flexibility Act
AMS has determined that this proposed rule will not have a
significant impact on a substantial number of small entities, as
defined by the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612),
because the services are voluntary and provided on a fee-for-service
basis and are not subject to scalability based on the business size.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so small businesses will not be
unduly or disproportionately burdened. As such, these changes will not
impose a significant impact on applicants requesting service under the
program.
Currently, approximately 950 applicants subscribe to AMS'
voluntary, fee-for-services that are subject to the requirements of
this regulation. The U.S. Small Business Administration's Table of
Small Business Size Standards matched to the North American Industry
Classification System Codes identifies small business size by average
annual receipts or by the average number of employees at a firm. This
information can be found in the CFR at 13 CFR parts 121.104, 121.106,
and 121.201.
AMS requires that all applicants for service provide information
about their company for the purpose of processing bills. Information
collected from an applicant includes company name, address, billing
address, and similar information. AMS does not collect information
about the size of the business. However, based on working knowledge of
these operations, AMS estimates that roughly 25 percent of current
applicants may be classified as small entities. It is not anticipated
that this action would impose additional costs to applicants,
regardless of size. Current applicants will not be required to provide
any additional information to receive service. The effects of this
proposed rule are not expected to be disproportionately greater or less
for small applicants than for larger applications. As described above,
these are voluntary, fee-for-service activities.
AMS is committed to complying with the E-Government Act of 2002 to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to government
information and services, and for other purposes.
[[Page 78058]]
USDA has not identified any relevant federal rules that duplicate,
overlap, or conflict with this rulemaking.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), this proposed rule will not change the information
collection and recordkeeping requirements previously approved, and will
not impose additional reporting or recordkeeping burden on users of
these voluntary services; however, the overall reporting and
recordkeeping burden would increase due to the anticipated increase in
number of respondents.
The information collection and recordkeeping requirements of this
part have been approved by OMB under 44 U.S.C. Chapter 35 and have been
assigned OMB Control Number 0581-0128.
In September 2014, three separate OMB collections--OMB 0581-0127,
OMB 0581-0124, and OMB 0581-0128--were merged, such that the current
OMB 0581-0128 pertains to Regulations for Voluntary Grading,
Certification, and Standards and includes 7 CFR parts 54, 56, 62, and
70.
In the past fiscal year, AMS' Livestock, Poultry, and Seed Program
(LPS) has received approximately 50 inquiries related to the
verification of non-genetically engineered products. Of these
inquiries, 72 percent identified with industries outside the scope of
LPS commodities, including the manufacture of dairy, fruits,
vegetables, grains, wood products, and food and feed supplements; 8
percent identified with current industries serviced by LPS (meat and
poultry manufacturing or processing, laboratories, feed manufactures);
and 20 percent were identified as a service provider or an association
not directly related to a service category. AMS does not expect the
last group to submit an application for service; thus, the group was
not included as a potential applicant.
USDA has considered the reporting and recordkeeping burden on
applicants under this program. Currently, applicants are required to
complete an application for service and submit documentation.
Recordkeeping requirements would remain the same, though the overall
burden is expected to increase due to an increase in applications. As
previously stated, of approximately 50 inquiries for an existing
service received by LPS, approximately three-fourths of these inquiries
represented new commodities, which could potentially increase the
overall reporting and recordkeeping burden. Accordingly, if the
proposed rule is adopted, and if two-thirds of the inquirers seek
service, then LPS estimates the number of respondents will increase by
25, thereby increasing the overall reporting and recordkeeping burden
by 602.50 hours, from 1205.80 hours to 1808.30 hours annually.
Since this action proposes to expand the scope of covered
commodities, which is expected to increase the number of respondents,
the already approved OMB 0158-0128 must be revised to reflect the
increased reporting and recordkeeping burden. Therefore, AMS will
submit a Justification for Change to OMB for approval to increase these
burden hours to OMB number 0158-0128.
A 60-day comment period is provided to allow interested persons an
opportunity to respond to this proposal. All written comments received
will be considered before a final determination is made on this matter.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This proposed rule is not intended to have
retroactive effect. The Act prohibits States or political subdivisions
of a State to impose any requirement that is in addition to, or
inconsistent with, any requirement of the Act. There are no civil
justice implications associated with this proposed rule.
Civil Rights Review
AMS has considered the potential civil rights implications of this
proposed rule on minorities, women, or persons with disabilities to
ensure that no person or group shall be discriminated against on the
basis of race, color, national origin, gender, religion, age,
disability, sexual orientation, marital or family status, political
beliefs, parental status, or protected genetic information. This
proposed rule does not require affected entities to relocate or alter
their operations in ways that could adversely affect such persons or
groups. Further, this proposed rule will not deny any persons or groups
the benefits of the program or subject any persons or groups to
discrimination.
Executive Order 13132
This proposed rule has been reviewed under Executive Order 13132,
Federalism. This Order directs agencies to construe, in regulations and
otherwise, a federal statute to preempt State law only when the statute
contains an express preemption provision. There are no federalism
implications associated with this proposed rule.
Background and Proposed Revisions
The Act directs and authorizes the Secretary of Agriculture to
facilitate the competitive and efficient marketing of agricultural
products. AMS programs support a strategic marketing perspective that
adapts product and marketing decisions to consumer demands, changing
domestic and international marketing practices, and new technology. AMS
provides impartial verification services that ensure agricultural
products meet specified requirements. These services include AMS'
grading program, which verifies that product meets USDA grade
standards. In addition, AMS provides direct certification of products
in the facilities that manufacture them. Product characteristics such
as manner of cut, color, and other attributes can be directly examined
by an AMS employee to determine if a specification has been met, and
the product can be stamped and marketed as ``USDA Certified'' or ``USDA
Accepted as Specified.'' These services are voluntary, with users
paying for the cost of the requested service.
Over time, industry began to request AMS verification of factors
that were not apparent through an examination of the livestock or
products at a processing facility. Industry desired the ability to
market factors related to raising of the livestock, such as feeding
regimen, in relation to the resulting products, and to do so with
assurance to their customers.
To accommodate these requests for verification, AMS began
conducting audits of livestock production facilities as a part of its
third-party verification services. Ultimately, in 2001, AMS developed
the QSVP, a suite of audit-based programs that can provide confidence
that process points, such as livestock feeding regimen, are being
adhered to at the farm or ranch before the livestock are processed and
enter commerce as a meat product with an associated marketing claim.
The USDA Process Verified Program (PVP) is one program under QSVP.
PVP provides producers and marketers of livestock, seed products, and
poultry products a way to assure customers of their ability to provide
consistent quality products by having written production and
manufacturing processes confirmed through independent, third-party
audits. Under PVP, companies outline their own specific requirements,
and AMS ensures adherence to those processes via routine audits. This
is in contrast to other QSVP services offered by AMS, such as the
Quality Systems Assessment Program (QSA), which have program
[[Page 78059]]
requirements outlined by AMS or a party other than the producers or
marketer. For example, most of AMS' QSVP audit activities fall under
the category of Export Verification activities, which are based on
government-to-government agreements with international trading partners
regarding specific foreign market requirements.
Several factors triggered AMS' review of the regulations describing
QSVP activities. First, an organizational merger in 2013 combined the
Livestock and Seed Program and Poultry Programs to create the
Livestock, Poultry, and Seed (LPS) Program within AMS. Prior to the
merger, both Programs administered parallel QSVP services to their
respective industries. These activities were carried out under 7 CFR
part 62 for livestock, meat, and related commodities and under 7 CFR
part 56 and 7 CFR part 70 for shell eggs and poultry industries,
respectively.
Currently, all QSVP services are delivered by the same management
unit and operate by the same procedures (e.g., application process and
audit process), and audits are in large measure conducted by the same
personnel. Therefore, AMS proposes to remove any references to audit
and verification activities contained in 7 CFR parts 56 and 70 and
incorporate the commodities currently covered in those parts (i.e.,
shell eggs and poultry) into 7 CFR part 62.
Because 7 CFR part 62 accurately describes the process by which
these services are provided, AMS is proposing to amend the definition
of products describing the commodities covered under voluntary QSVP
services to include products authorized by the Act. Rather than
limiting the product type to an individual program within AMS, AMS
believes it is more appropriate to expand the definition of products to
efficiently manage the QSVP, including the PVP. AMS seeks to maintain
uniformity, transparency, and efficiency of service delivery of the
QSVP, including the PVP. Without expanding the definition of products,
AMS would be required to establish and maintain duplicate programs in
each commodity area that would essentially carry out the same functions
in regard to delivering the QSVP, including the PVP.
Other changes proposed are administrative in nature. For example,
because AMS is proposing to expand the scope of commodities that
companies can voluntary have verified by AMS under a QSVP, AMS is also
proposing to amend the title of the regulations to remove limiting
references to ``livestock and meat.'' Additionally, the USDA Office of
the Inspector General (OIG) completed an audit in 2015 of the PVP and
recommended that AMS take additional steps to unify the program, as it
was delivered under the same heading.
Additional administrative changes are necessary to reflect the
current terminology and organizational structure of AMS. These
amendments include changing the name of the Program to reflect the
merger of the Livestock and Seed Program and Poultry Programs into the
Livestock, Poultry, and Seed Program. Subsequently, LPS' Quality
Assessment Division was created to oversee the Audit Services Branch,
Grading Services Branch, and Standardization Branch. The Audit Services
Branch replaced the Audit, Review, and Compliance Branch of the
Livestock and Seed Program and incorporated auditing services that were
part of the Grading Branch of Poultry Programs. Certain managerial
titles were also updated with the merger: a Director was established,
along with an Audit Services Branch Chief.
List of Subjects
7 CFR Part 56
Grading of shell eggs, Inspections, Marketing practices, Standards.
7 CFR Part 62
Inspections, Marketing practices, Quality Systems Verification,
Standards.
7 CFR Part 70
Inspections, Marketing practices, Standards, Voluntary Grading of
Poultry Products and Rabbit Products.
For the reasons set forth in the preamble, AMS proposes to amend 7
CFR parts 56, 62, and 70 as follows:
PART 56--VOLUNTARY GRADING OF SHELL EGGS
0
1. The authority citation for 7 CFR part 56 continues to read as
follows:
Authority: 7 U.S.C. 1621-1627.
0
2. Amend Sec. 56.1 by:
0
a. Removing the paragraph containing the term and definition for
Auditing services;
0
b. Adding in alphabetical order definitions for Branch and Chief;
0
c. Removing the definition for Chief of the Grading Branch;
0
d. Adding in alphabetical order a definition for Division; and
0
e. Revising the definitions of Official standards, United States
Standards for Quality of Individual Shell Eggs, and United States
Standards, Grades, and Weight Classes for Shell Eggs (AMS 56).
The additions and revisions read as follows:
Sec. 56.1 Meaning of words and terms defined.
* * * * *
Branch means the Grading Services Branch for the Quality
Assessment Division.
* * * * *
Chief means the Chief of the Grading Services Branch for the
Quality Assessment Division.
* * * * *
Division means the Quality Assessment Division of the Livestock,
Poultry, and Seed Program.
* * * * *
Official standards means the official U.S. standards grades, and
weight classes for shell eggs maintained by and available from the
Livestock, Poultry, and Seed Program.
* * * * *
United States Standards for Quality of Individual Shell Eggs
means the official U.S. Standards, Grades, and Weight Classes for
Shell Eggs (AMS 56) that are maintained by and available from the
Livestock, Poultry, and Seed Program.
* * * * *
United States Standards, Grades, and Weight Classes for Shell
Eggs (AMS 56) means the official U.S. standards, grades, and weight
classes for shell eggs that are maintained by and available from the
Livestock, Poultry, and Seed Program.
* * * * *
Sec. 56.28 [Amended]
0
3. Amend Sec. 56.28 by removing paragraph (d).
0
4. Amend Sec. 56.46 by revising paragraph (a), revising paragraphs
(b)(1)(i) through (iii), and removing paragraph (d).
The revisions read as follows:
Sec. 56.46 On a fee basis.
(a) Unless otherwise provided in this part, the fees to be charged
and collected for any service performed, in accordance with this part,
on a fee basis shall be based on the applicable formulas specified in
this section. For each calendar year or crop year, AMS will calculate
the rate for grading services, per hour per program employee using the
following formulas:
(1) Regular rate. The total AMS grading personnel direct pay
divided by direct hours, which is then multiplied by the next year's
percentage of cost of living increase, plus the benefits rate, plus the
operating rate, plus the allowance for bad debt rate. If applicable,
travel expenses may also be added to the cost of providing the service.
(2) Overtime rate. The total AMS grading personnel direct pay
divided by direct hours, which is then multiplied by the next year's
percentage of cost of living increase and then multiplied by 1.5 plus
the benefits rate, plus the
[[Page 78060]]
operating rate, plus an allowance for bad debt. If applicable, travel
expenses may also be added to the cost of providing the service.
(3) Holiday rate. The total AMS grading personnel direct pay
divided by direct hours which is then multiplied by the next year's
percentage of cost of living increase and then multiplied by 2, plus
benefits rate, plus the operating rate, plus an allowance for bad debt.
If applicable, travel expenses may also be added to the cost of
providing the service.
(b)(1) * * *
(i) Benefits rate. The total AMS grading direct benefits costs
divided by the total hours (regular, overtime, and holiday) worked,
which is then multiplied by the next calendar year's percentage cost of
living increase. Some examples of direct benefits are health insurance,
retirement, life insurance, and Thrift Savings Plan (TSP) retirement
basic and matching contributions.
(ii) Operating rate. The total AMS grading operating costs divided
by total hours (regular, overtime, and holiday) worked, which is then
multiplied by the percentage of inflation.
(iii) Allowance for bad debt rate. Total AMS grading allowance for
bad debt divided by total hours (regular, overtime, and holiday)
worked.
* * * * *
0
5. Amend Sec. 56.61 by revising paragraph (b) to read as follows:
Sec. 56.61 Where to file an appeal.
* * * * *
(b) All other appeal requests. Any interested party who is not
satisfied with the determination of the class, quality, quantity, or
condition of product which has left the official plant where it was
graded or which was graded other than in an official plant may request
an appeal grading by filing such request with the regional director in
the area where the product is located or with the Chief.
0
6. Amend Sec. 56.64 by revising paragraph (c) to read as follows:
Sec. 56.64 Who shall perform the appeal.
* * * * *
(c) Whenever practical, an appeal grading shall be conducted
jointly by two graders. The assignment of the grader(s) who will make
the appeal grading requested under Sec. 56.61(b) shall be made by the
regional director or the Chief.
PART 62--QUALITY SYSTEMS VERIFICATION PROGRAMS
0
7. The authority citation for 7 CFR part 62 continues to read as
follows:
Authority: 7 U.S.C. 1621-1627.
0
8. Amend part 62 by revising the heading to read as set forth above and
revising all references to ``Livestock and Seed Program'' to read
``Livestock, Poultry, and Seed Program,'' and revise all references to
``LS Program'' to read ``LPS Program'' wherever they occur.
Subpart A--Quality Systems Verification Programs
0
9. Amend part 62 by revising the heading to Subpart A to read as set
forth above.
0
10. Amend Sec. 62.000 by:
0
a. Removing the definitions for Branch and Chief;
0
b. Revising the definition of Conformance;
0
c. Adding in alphabetical order definitions for Division and Division
Director;
0
d. Removing the definition of Livestock; and
0
e. Revising the definitions for Products, QSVP Procedures, and Quality
Systems Verification Programs (QSVP).
The revisions and additions read as follows:
Sec. 62.000 Meaning of terms.
* * * * *
Conformance. The fulfillment of criteria or a requirement.
* * * * *
Division. The Quality Assessment Division (QAD) of the
Livestock, Poultry, and Seed Program.
Division Director. The Director of QAD, or any officer or
employee of the Livestock, Poultry, and Seed Program to whom
authority has been delegated, or to whom authority may be delegated,
to act in the Director's stead.
* * * * *
Products. All agricultural commodities and services within the
scope of the Agricultural Marketing Act of 1946, et seq.
QSVP Procedures. The requirements and guidelines set forth by
the Agricultural Marketing Service regarding the development,
documentation, and implementation of QSVP.
* * * * *
Quality System Verification Programs (QSVP). A collection of
voluntary, audit-based, user-fee programs that allow applicants to
have program documentation and program processes assessed by an AMS
auditor.
* * * * *
Sec. 62.200 [Amended]
0
11. Amend Sec. 62.200 by removing paragraph (b).
0
12. Revise Sec. 62.202 to read as follows:
Sec. 62.202 How to apply for service.
Applicants may apply for QSVP services by submitting the following
information to the QAD office by email to [email protected]
or by mail to: USDA, AMS, LPS, QAD, 1400 Independence Avenue SW., STOP
0258, Washington, DC 20250-0258.
(a) A completed LPS-109, Application for Service;
(b) A letter requesting QSVP services; and
(c) A complete copy of the applicant's program documentation, as
described in the QSVP procedures.
0
13. Revise Sec. 62.203 to read as follows:
Sec. 62.203 How to withdraw service.
Service may be withdrawn by the applicant at any time, provided
that the applicant notifies QAD in writing of his/her desire to
withdraw the application for service and pays any expenses the
Department has incurred in connection with such application.
0
14. Amend Sec. 62.207 by revising paragraphs (b) and (c) to read as
follows:
Sec. 62.207 Official assessment.
* * * * *
(b) Program assessment. Auditors and USDA officials shall conduct
an on-site assessment of the applicant's program to ensure provisions
of the applicant's program documentation have been implemented and
conform to QSVP procedures.
(c) Program determination. Applicants determined to meet or not
meet QSVP procedures or the applicant's program requirements shall be
notified of their program's approval or disapproval.
* * * * *
0
15. Amend Sec. 62.208 by revising the introductory text and paragraphs
(a), (b), and (e) to read as follows:
Sec. 62.208 Publication of QSVP assessment status.
Approved programs shall be posted for public reference on the
agency Web site. Such postings shall include:
(a) Applicant name and contact information; and
(b) Products, services, process points, or standards included in
the scope of approval.
* * * * *
(e) Any other information deemed necessary by the Director.
0
16. Revise Sec. 62.209 to read as follows:
Sec. 62.209 Reassessment.
Approved programs are subject to periodic reassessments to ensure
ongoing conformance with LPS QSVP procedures covered under the scope of
approval. The frequency of reassessments shall be based on LPS QSVP
procedures, or as determined by the Director.
[[Page 78061]]
0
17. Amend Sec. 62.210 by revising paragraph (b) introductory text,
(b)(5), and (c) to read as follows:
Sec. 62.210 Denial, suspension, or cancellation of service.
* * * * *
(b) QSVP services may be suspended if the applicant fails to
maintain its program requirements, or conform to LPS Program QSVP
procedures; such as failure to:
* * * * *
(5) Submit significant changes to an approved program and seek
approval from the Program Manager or Program Review Committee, as
appropriate, prior to implementation of significant changes to an
approved program;
* * * * *
(c) QSVP services may be cancelled, an application may be rejected,
or program assessment may be terminated if the Director or his designee
determines that a nonconformance has remained uncorrected beyond a
reasonable amount of time.
0
18. In Sec. 62.211, revise the introductory text and paragraph (a) to
read as follows:
Sec. 62.211 Appeals.
Appeals of adverse decisions under this part, may be made in
writing to the Director at 1400 Independence Avenue SW.; Room 3932-S,
STOP 0258; Washington, DC 20250-0201. Appeals must be made within 30
days of receipt of adverse decision.
(a) Procedure for appeals. Actions under this paragraph concerning
decision of appeals of the Director shall be conducted in accordance
with the Rules of Practice Governing Formal Adjudicatory Proceedings
Instituted by the Secretary under various statutes set forth at 7 CFR
1.130 through 1.151 and the Supplemental Rules of Practice in 7 CFR
part 50.
* * * * *
0
19. Revise Sec. 62.213 to read as follows:
Sec. 62.213 Official identification.
The following, as shown in Figure 1, constitutes official
identification to show product or services produced under an approved
USDA Process Verified Program (PVP):
[GRAPHIC] [TIFF OMITTED] TP07NO16.002
(a) Products or services produced under an approved USDA PVP may
use the ``USDA Process Verified'' statement and the ``USDA Process
Verified'' shield, so long as each is used in direct association with a
clear description of the process verified points approved by the
Division.
(b) The USDA Process Verified shield must replicate the form and
design of the example in Figure 1 and must be printed legibly and
conspicuously:
(1) On a white background with a gold trimmed shield, with the term
``USDA'' in white overlaying a blue upper third of the shield, the term
``PROCESS'' in black overlaying a white middle third of the shield, and
term ``VERIFIED'' in white overlaying a red lower third of the shield.
(2) On a white or transparent background with a black trimmed
shield, with the term ``USDA'' in white overlaying a black upper third
of the shield, the term ``PROCESS'' in black overlaying a white middle
third of the shield, and the term ``VERIFIED'' in white overlaying a
black lower third of the shield.
(c) Use of the ``USDA Process Verified'' statement and the ``USDA
Process Verified'' shield shall be approved in writing by the Director
prior to use by an applicant.
0
20. Amend Sec. 62.300 by revising paragraph (e) to read as follows:
Sec. 62.300 Fees and other costs of service.
* * * * *
(e) Other costs. When costs, other than those costs specified in
paragraphs (a) through (c) of this section, are involved in providing
the QSVP services, the applicant shall be responsible for these costs.
The amount of these costs shall be determined administratively by the
Division. However, the applicant will be notified of these costs before
the service is rendered.
0
21. Revise Sec. 62.400 to read as follows:
Sec. 62.400 OMB control number assigned pursuant to the Paperwork
Reduction Act.
The information collection and recordkeeping requirements of this
part have been approved by OMB under 44 U.S.C. Chapter 35 and have been
assigned OMB Control Number 0581-0128.
PART 70--VOLUNTARY GRADING OF POULTRY PRODUCTS AND RABBIT PRODUCTS
0
22. The authority citation for part 70 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
0
23. Amend Sec. 70.1 by:
0
a. Removing the definition for Auditing services;
0
b. Adding in alphabetical order definitions for Branch and Chief;
0
c. Removing the definition of Chief of the Grading Branch; and
0
d. Adding in alphabetical order a definition for Division.
The additions read as follows:
Sec. 70.1 Definitions.
* * * * *
Branch means the Grading Services Branch for the Quality
Assessment Division.
* * * * *
Chief means the Chief of the Grading Services Branch for the
Quality Assessment Division.
Division means the Quality Assessment Division of the Livestock,
Poultry, and Seed Program, AMS.
* * * * *
Sec. 70.4 [Amended]
0
24. Amend Sec. 70.4 by removing paragraph (c).
0
25. Amend Sec. 70.6 by revising paragraph (a) to read as follows:
Sec. 70.6 OMB control number.
(a) Purpose. The collecting of information requirements in this
part has been approved by the Office of Management and Budget (OMB) and
assigned OMB control number 0581-0128.
* * * * *
0
26. Amend Sec. 70.71 by revising the introductory text and paragraphs
(a) and (b)(1)(i) through (iii) and by removing paragraph (d).
The revisions read as follows:
Sec. 70.71 On a fee basis.
* * * * *
(a) For each calendar year, AMS will calculate the rate for grading
services, per hour per program employee using the following formulas:
(1) Regular rate. The total AMS grading personnel direct pay
divided by direct hours, which is then multiplied by the next year's
percentage of cost of living increase, plus the benefits rate, plus the
operating rate, plus the allowance for bad debt rate. If applicable,
travel expenses may also be
[[Page 78062]]
added to the cost of providing the service.
(2) Overtime rate. The total AMS grading personnel direct pay
divided by direct hours, which is then multiplied by the next year's
percentage of cost of living increase and then multiplied by 1.5 plus
the benefits rate, plus the operating rate, plus an allowance for bad
debt. If applicable, travel expenses may also be added to the cost of
providing the service.
(3) Holiday rate. The total AMS grading personnel direct pay
divided by direct hours, which is then multiplied by the next year's
percentage of cost of living increase and then multiplied by 2, plus
benefits rate, plus the operating rate, plus an allowance for bad debt.
If applicable, travel expenses may also be added to the cost of
providing the service.
(b)(1) * * *
(i) Benefits rate. The total AMS grading direct benefits costs
divided by the total hours (regular, overtime, and holiday) worked,
which is then multiplied by the next calendar year's percentage cost of
living increase. Some examples of direct benefits are health insurance,
retirement, life insurance, and Thrift Savings Plan (TSP) retirement
basic and matching contributions.
(ii) Operating rate. AMS' grading total operating costs divided by
total hours (regular, overtime, and holiday) worked, which is then
multiplied by the percentage of inflation.
(iii) Allowance for bad debt rate. Total AMS grading allowance for
bad debt divided by total hours (regular, overtime, and holiday)
worked.
* * * * *
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27. Amend Sec. 70.101 by revising paragraph (b) to read as follows:
Sec. 70.101 Where to file an appeal.
* * * * *
(b) All other appeal requests. Any interested party who is not
satisfied with the determination of the class, quality, quantity, or
condition of product which has left the official plant where it was
graded, or which was graded other than in an official plant, may
request an appeal grading by filing such request with the regional
director in the area where the product is located or with the Chief.
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28. Amend Sec. 70.104 by revising paragraph (c) to read as follows:
Sec. 70.104 Who shall perform the appeal.
* * * * *
(c) Whenever practical, an appeal grading shall be conducted
jointly by two graders. The assignment of the grader(s) who will make
the appeal grading requested under Sec. 70.101(b) shall be made by the
regional director or the Chief.
Dated: October 19, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-25690 Filed 11-4-16; 8:45 am]
BILLING CODE 3410-02-P