[Federal Register Volume 59, Number 206 (Wednesday, October 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26458]


[[Page Unknown]]

[Federal Register: October 26, 1994]


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DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service

9 CFR Part 391

[Docket No. 94-013F]

 

Fee Increase for Inspection Services

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: The Food Safety and Inspection Service (FSIS) is amending the 
Federal meat and poultry products inspection regulations to increase 
the fees charged by FSIS to provide overtime and holiday inspection, 
voluntary inspection, identification, certification, or laboratory 
services to meat and poultry establishments. The fees reflect the 
increased costs of providing these services primarily as a result of 
Federal salary increases allocated by Congress under the Federal 
Employees Pay Comparability Act of 1990.

EFFECTIVE DATE: October 30, 1994.

FOR FURTHER INFORMATION CONTACT: Mr. William L. West, Director, Budget 
and Finance Division, Administrative Management, Food Safety and 
Inspection Service, U.S. Department of Agriculture, Washington, DC 
20250-3700, (202) 720-3367.

SUPPLEMENTARY INFORMATION:

Background

    The Federal Meat Inspection Act (21 U.S.C. 601 et seq.) and the 
Poultry Products Inspection Act (21 U.S.C. 451 et seq.) provide for 
mandatory inspection by Federal inspectors of meat and poultry 
slaughtered and/or processed at official establishments. Such 
inspection is required to ensure the safety, wholesomeness, and proper 
labeling of meat and poultry products. The costs of mandatory 
inspection (excluding such services performed on holidays or on an 
overtime basis) are borne by FSIS.
    In addition to mandatory inspection, FSIS provides a range of 
voluntary inspection services (9 CFR 350.7, 351.8, 351.9, 352.5, 
354.101, 355.12, and 362.5). The costs of voluntary inspection are 
totally recoverable by the Federal Government. These services, set 
forth in Subchapter B--Voluntary Inspection and Certification Service, 
are provided under the Agricultural Marketing Act of 1946, as amended 
(7 U.S.C. 1621 et seq.) to assist in the orderly marketing of various 
animal products and byproducts not subject to the Federal Meat 
Inspection Act or the Poultry Products Inspection Act.
    The fees charged by FSIS for voluntary inspection services provided 
to operators of official meat and poultry establishments, importers, or 
exporters are reviewed annually and a cost analysis1 is performed 
to determine whether they remain adequate to recover the costs FSIS 
incurs in providing the services. The fees charged are for overtime and 
holiday inspection, voluntary inspection, identification, 
certification, or laboratory services.
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    \1\The cost analysis is on file with the Docket Clerk. Copies 
may be requested free of charge from the Docket Clerk, Room 3171, 
South Building, Food Safety and Inspection Service, U.S. Department 
of Agriculture, Washington, DC 20250-3700.
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    Based on the projected Fiscal Year 1994 cost analysis, FSIS is 
increasing the fees for voluntary services. These increased costs are 
attributable to the average FSIS locality pay raise of 3.2 percent for 
Federal employees effective January 1994; the increasing number of 
employees covered by the Federal Employees Retirement System and 
subject to the Federal Insurance Contributions Act tax; and increased 
health insurance costs.
    On June 27, 1994, FSIS published a proposed rule in the Federal 
Register (59 FR 32940) to increase the fees charged by FSIS to provide 
overtime and holiday inspection, voluntary inspection, identification, 
certification, or laboratory services to meat and poultry 
establishments.
    FSIS received one comment in response to the proposal. The comment 
was from the owner of a small meat establishment who felt that the 
current fee of $30.72 per hour was excessive and a burden on his 
company. After analyzing the available data relating to costs of 
providing these services, FSIS has determined that these rates reflect 
the cost of providing inspection services. The new rates reflect only 
an incremental increase in the costs currently borne by those entities 
electing to utilize overtime and holiday inspection services and 
certain other voluntary inspection services.
    To recover these increased costs in an expeditious manner, the 
Administrator has determined that these amendments should be effective 
less than 30 days after publication in the Federal Register.

Executive Order 12866

    This final rule has been determined to be significant and was 
reviewed by the Office of Management and Budget (OMB) under Executive 
Order 12866. The fees provided for in this rule reflect a minimal 
increase in the costs currently borne by those entities which elect to 
utilize certain voluntary inspection services. As discussed in the 
background of this document, the increase in fees reflects the 
increased costs of providing these services primarily as a result of 
Federal salary increases allocated by Congress under the Federal 
Employees Pay Comparability Act of 1990.

Executive Order 12778

    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is intended to have preemptive effect 
with respect to any State or local laws, regulations or policies which 
conflict with its provisions or which would otherwise impede its full 
implementation. This rule is not intended to have retroactive effect. 
Prior to any judicial challenge to the provisions, all applicable 
administrative procedures must be exhausted. Under the Federal Meat and 
Poultry Products Inspection Acts, the administrative procedures are set 
forth in 7 CFR Part 1.

Effect on Small Entities

    The Administrator, Food Safety and Inspection Service, has 
determined that this action will not have a significant economic impact 
on a substantial number of small entities as defined by the Regulatory 
Flexibility Act (5 U.S.C. 601). The fees reflect a minimal increase in 
the costs currently borne by those entities which elect to utilize 
certain inspection services.

List of Subjects in 9 CFR Part 391

    Fees and charges, Meat inspection, Poultry products inspection.

    Accordingly, Part 391 of the Federal meat and poultry products 
inspection regulations is amended as follows:

PART 391--FEES AND CHARGES FOR INSPECTION SERVICES

    1. The authority citation for Part 391 continues to read as 
follows:

    Authority: 21 U.S.C. 601 et seq., 460 et seq.; 7 CFR 2.17 (g) 
and (i), 2.55; 7 U.S.C. 394, 1622, and 1624.

    2. Sections 391.2, 391.3, and 391.4 are revised to read as follows:


Sec. 391.2   Base time rate.

    The base time rate for inspection services provided pursuant to 
Secs. 350.7, 351.8, 351.9, 352.5, 354.101, 355.12, and 362.5 shall be 
$31.12 per hour, per program employee.


Sec. 391.3   Overtime and holiday rate.

    The overtime and holiday rate for inspection services provided 
pursuant to Secs. 307.5, 350.7, 351.8, 351.9, 352.5, 354.101, 355.12, 
362.5, and 381.38 shall be $31.80 per hour, per program employee.


Sec. 391.4   Laboratory services rate.

    The rate for laboratory services provided pursuant to Secs. 350.7, 
351.9, 352.5, 354.101, 355.12, and 362.5 shall be $52.04 per hour, per 
program employee.

    Done at Washington, DC, on: October 19, 1994.
Michael R. Taylor,
Administrator.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Inspection Services.
[FR Doc. 94-26458 Filed 10-25-94; 8:45 am]
BILLING CODE 3410-DM-P