[Federal Register Volume 60, Number 139 (Thursday, July 20, 1995)]
[Rules and Regulations]
[Pages 37328-37329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17862]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Part 391

[Docket No. 95-004F]


Fee Increase for Inspection Services

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

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: July 23, 1995.

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 to operators of official meat and poultry 
establishments, importers, or exporters (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. The fees charged are 
for overtime and holiday inspection, voluntary inspection, 
identification, certification, or laboratory services. These services 
are provided under the Agricultural Marketing Act of 1946, as amended 
(7 

[[Page 37329]]
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.
    Each year the fees charged by FSIS for voluntary inspection 
services are reviewed and a cost analysis 1 is performed to 
determine whether they are adequate to recover the costs FSIS incurs in 
providing the services. Based on the projected Fiscal Year 1995 cost 
analysis, FSIS is increasing the fees for voluntary services.

    \1\ The cost analysis is on file with the FSIS Docket Clerk. 
Copies may be requested free of charge from the FSIS Docket Clerk, 
Room 4352, South Agriculture Building, Food Safety and Inspection 
Service, U.S. Department of Agriculture, Washington, DC 20250-3700.
---------------------------------------------------------------------------

    The new rates are for base time, $31.92 per hour, per program 
employee; for overtime and holiday services, $32.96 per hour per 
program employee; and for laboratory services, $52.92 per hour, per 
program employee. These increased costs are attributable to the average 
FSIS national and locality pay raise of 3.2 percent for Federal 
employees effective January 1995; 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 April 12, 1995, FSIS published a proposed rule in the Federal 
Register (60 FR 18551) 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 a trade association which represents approximately 1,300 small 
to medium sized processing operations and strongly opposed any increase 
in the fees charged for overtime and holiday inspection, voluntary 
inspection, identification, certification and laboratory services to 
meat and poultry establishments.
    FSIS considered the comment and reanalyzed the available data 
relating to costs of providing these services. FSIS maintains that the 
increased rates are necessary and 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 not significant for 
purposes of Executive Order 12866.

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: 7 U.S.C. 138f; 7 U.S.C. 394, 1622, and 1624; 21 
U.S.C. 451 et seq.; 21 U.S.C. 601-695; 7 CFR 2.17(g) and (i), 2.55.

    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 
$31.92 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 $32.96 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 $52.92 per hour, per 
program employee.


    Done at Washington, DC, on: July 14, 1995.
Michael R. Taylor,
Administrator, Food Safety and Inspection Service.
[FR Doc. 95-17862 Filed 7-19-95; 8:45 am]
BILLING CODE 3410-DM-P