[Federal Register Volume 60, Number 75 (Wednesday, April 19, 1995)]
[Rules and Regulations]
[Pages 19491-19492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9592]



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DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service

9 CFR PARTS 318, 381 and 391

[Docket No. 94-033F]

RIN 0583-AB87


Reduction of Accreditation Fees for FSIS Accredited Laboratories

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Confirmation of interim rule.

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SUMMARY: The Food Safety and Inspection Service (FSIS) is confirming 
the interim regulations amending provisions of the Federal meat and 
poultry products inspection regulations to reduce the fees charged 
participants in the Agency's voluntary Accredited Laboratory Program 
(ALP). Non-Federal analytical laboratories are qualified under the ALP 
to conduct analyses of official meat and poultry samples. The payment 
by laboratories of annual accreditation fees that cover the costs of 
the ALP is mandated by the Food, Agriculture, Conservation, and Trade 
Act of 1990 (the 1990 Farm Bill), as amended. FSIS determined late last 
year that reduced ALP administrative expenditures for fiscal year 1995 
would enable the Agency to charge a smaller accreditation fee than it 
did last year. Since the amount of the laboratory accreditation fee is 
set forth in the regulations, the regulations had to be changed before 
the Agency could charge a different fee. To meet fee billing deadlines, 
FSIS found it necessary to publish the fee reduction rule on an interim 
basis.
    The Agency also took the opportunity to make some editorial 
corrections to the regulations.

EFFECTIVE DATE: April 19, 1995.

FOR FURTHER INFORMATION CONTACT: Dr. Jess Rajan, Food Safety and 
Inspection Service, U.S. Department of Agriculture, Room 516A, Annex 
Building, 300 12th Street SW., Washington DC 20250-3700, (202) 205-
0679.

SUPPLEMENTARY INFORMATION:

Background

    Section 1327 (7 USC 138f) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (PL 101-624), as amended, known as the 1990 Farm 
Bill, requires USDA to charge a nonrefundable accreditation fee for 
laboratories seeking accreditation by the Secretary under the authority 
of the FMIA or PPIA. The fee is required to be in an amount that 
offsets the cost of the ALP administered by FSIS under the authority of 
the FMIA and PPIA.
    Fees are billed annually on a per-accreditation basis at a rate 
that is established by regulation (9 CFR 391.5). The ALP regulations 
define an accreditation to be a determination by FSIS that a laboratory 
is qualified to analyze official samples of meat and poultry products 
for the presence and amount of four food chemistry analytes or a 
determination that a laboratory is qualified to analyze official 
samples of product for the presence and amount of one of several 
classes of chemical residue. The per-accreditation fee for fiscal year 
1994 was $3,500.
    FSIS projected late last year that the expenses of administering 
the ALP during fiscal year 1995 would be less than the expenses for 
fiscal year 1994. The reduction came about because of management 
savings and, to a lesser extent, a smaller enrollment in the ALP than 
anticipated. The Agency determined that the smaller overall cost of 
running the program meant that it could reduce the fee per 
accreditation. The Agency determined that, for fiscal year 1995, the 
fee for original accreditations and renewals would be $2,500.
    In order to meet billing deadlines for accreditation renewals, 
avoid rebates for renewals paid for at the old rate, and avoid 
unnecessary administrative burdens on the Government and industry, the 
Agency found it necessary to promulgate an interim rule with request 
for comments on December 27, 1994 (59 FR 66446), effective the same 
date. The interim rule amended the administrative provisions of the 
Federal meat and poultry inspection regulations to change the fee. 
Also, some editorial corrections were made to the ALP regulations.
    The interim rule provided a 30-day comment period ending January 
26, 1995. During this period one comment was received from a trade 
association favoring the fee reduction.

Executive Order 12866

    This final rule has been determined to be significant and was 
reviewed by the Office of Management and Budget under Executive Order 
12866.

Executive Order 12778

    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule reduces the accreditation fees for non-
Federal analytical chemistry laboratories accredited under the Federal 
Meat and Poultry Products Inspection Acts and regulations promulgated 
thereunder.
    States and local jurisdictions are preempted under the Federal Meat 
Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA) 
from imposing any requirements with respect to federally inspected 
premises and facilities, and operations of such establishments, that 
are in addition to, or different than, those imposed under the FMIA or 
PPIA. States and local jurisdictions are also preempted under the FMIA 
and PPIA from imposing any marking, labeling, packaging, or ingredient 
requirements on federally inspected meat or poultry products that are 
in addition to, or different than, [[Page 19492]] those imposed under 
the FMIA or the PPIA, as well as preempted from imposing, under the 
PPIA for poultry products, certain storage and handling requirements. 
States and local jurisdictions may, however, exercise concurrent 
jurisdiction over meat and poultry products that are outside official 
establishments for the purpose of preventing the distribution of meat 
or poultry products that are misbranded or adulterated under the FMIA 
or PPIA or, in the case of imported articles, which are not at such an 
establishment, after their entry into the United States. States and 
local jurisdictions may also make requirements or take other actions, 
that are consistent with the FMIA and PPIA, with respect to any other 
matters regulated under the FMIA and PPIA.
    Under the FMIA and the PPIA, States that maintain meat and poultry 
inspection programs must impose requirements that are at least equal to 
those required under the FMIA or PPIA. These States may, however, 
impose more stringent requirements on such State-inspected products and 
establishments.
    This final rule will have no retroactive effect and applicable 
administrative procedures must be exhausted before any judicial 
challenge to the application of these provisions. Those administrative 
procedures are set forth in 9 CFR Secs. 306.5, 318.21(h), 381.35, and 
381.153(h).

Effect on Small Entities

    Most of the entities accredited by FSIS that will be affected by 
this final rule are large, independent laboratories or official meat 
packing establishments or States that own or operate accredited 
laboratories.
    There are currently approximately 150 laboratories in the FSIS 
accredited laboratory program. About three quarters of these are large 
entities, with respect to the volume of business, or part of such 
entities as large business corporations, State universities, or State 
governments. These laboratories provide analytical services to large 
and small establishments for analysis of official samples.
    Participation in the Agency's Accredited Laboratory Program is 
voluntary. The principal burden of the final rule on laboratories will 
be the fee charged for FSIS accreditation ($2,500 per accreditation, of 
which a laboratory may have more than one) and the minimal billing and 
accounting costs. This fee is substantially lower than the fee 
previously charged.
    Some large laboratories have multiple accreditations for food 
chemistry and chemical residues, while many small laboratories are 
accredited only for food chemistry. Thus, smaller laboratories (small 
entities) tend to pay smaller amounts of accreditation fees than large 
laboratories. Balanced against these costs are the revenues from 
analyzing official samples, which are likely to be greater because 
firms can be expected to pass much of the costs of obtaining 
accreditation to clients, and the enhancement of income from other 
services provided by the laboratories because of their status as 
``accredited by FSIS.'' As a result, the net effect of this rulemaking 
on both small and large laboratories will not be significant. The user-
fee costs for having official samples analyzed by accredited 
laboratories are passed on to the establishments doing business with 
accredited laboratories, or absorbed by the official establishment if 
the establishment has an in-house accredited laboratory. Establishments 
using the laboratories benefit from the earlier marketing of product 
released from official retention. Because of the accreditation fee 
reduction authorized by this final rule, the overall benefits to the 
meat and poultry industry, including both small and large 
establishments, from using accredited laboratories can be expected to 
increase very modestly.
    It is possible that some small laboratories that are not now 
participating in the ALP may choose to apply for the program because of 
the lower fee. If they did so, a larger number of accredited 
laboratories would be available for use by official establishments, 
including small establishments, than there are at present.
    For these reasons, the net effects of the final rule, though 
beneficial, are not likely to be significant on a substantial number of 
small entities.

List of Subjects

9 CFR Part 318

    Meat inspection, Laboratory accreditation.

9 CFR Part 381

    Poultry and poultry products inspection, Laboratory accreditation.

9 CFR 391

    Fees and charges for inspection services, Laboratory accreditation 
fees.

Final Rule

    For the reasons discussed in the preamble:


Sec. 318.21  [Amended]

    1. In part 318, the revisions of Sec. 318.21(c)(3)(ix)(A)(1), 
(A)(2), (B), and (C) published December 27, 1994 (59 FR 66446), are 
confirmed as final.


Sec. 381.153  [Amended]

    2. In part 381, the revisions of Sec. 381.153(c)(3)(ix)(A)(1), 
(A)(2), (B), and (C) published December 27, 1994 (59 FR 66446), are 
confirmed as final.


Sec. 391.5  [Amended]

    3. In part 391, the revision of Sec. 391.5 published December 27, 
1994 (59 FR 66446), is confirmed as final.

    Done at Washington, DC, on: April 12, 1995.
Michael R. Taylor,
Acting Under Secretary for Food Safety.
[FR Doc. 95-9592 Filed 4-18-95; 8:45 am]
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