[Federal Register Volume 61, Number 129 (Wednesday, July 3, 1996)]
[Proposed Rules]
[Pages 34747-34749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17000]


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

DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service

9 CFR Part 391

[Docket No. 96-013P]


Fee Increase for Inspection Services

AGENCY: Food Safety and Inspection Service, USDA.


[[Page 34748]]


ACTION: Proposed rule.

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

SUMMARY: The Food Safety and Inspection Service (FSIS) is proposing to 
increase the fees FSIS charges meat and poultry establishments, 
importers, and exporters for providing voluntary inspection, 
identification, and certification services and overtime and holiday 
services. These fee increases are based upon the Agency's analysis of 
projected costs for fiscal year 1996, which identifies increased costs 
resulting from the January 1996 FSIS national and locality pay raise 
average of 2.4 percent for Federal employees and increased health 
insurance costs.
    FSIS also is proposing to reduce the fees charged for providing 
laboratory services to meat and poultry establishments. The Agency's 
analysis of projected costs for fiscal year 1996 identified decreased 
costs resulting from the use of automated equipment for testing 
laboratory samples and for other inspection related services not 
covered under the base time, overtime, and holiday costs.

DATES: Comments must be received on or before: August 2, 1996.

ADDRESSES: Submit an original and two copies of written comments 
concerning this proposed rule to: FSIS Docket Clerk, Docket #96-013P, 
Room 4352, South Agriculture Building, Food Safety and Inspection 
Service, U.S. Department of Agriculture, Washington, DC 20250-3700. 
Persons preferring to present oral comments should contact William L. 
West at (202) 720-3367. FSIS's cost analysis and comments will be 
available for public inspection in the FSIS Docket Room from 8:30 a.m. 
to 1 p.m. and from 2 p.m. to 4:30 p.m., Monday through Friday.

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 (FMIA) and the Poultry Products 
Inspection Act (PPIA) 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. Under the Agricultural Marketing Act of 
1946, as amended (7 U.S.C. 1621 et seq.), FSIS provides these services 
to assist in the orderly marketing of various animal products and 
byproducts not subject to the FMIA or the PPIA. The costs of voluntary 
inspection are totally recoverable by the Federal Government.
    Each year, FSIS reviews the fees it charges meat and poultry 
establishments, importers, and exporters for providing voluntary 
inspection, identification, and certification services, as well as 
overtime and holiday services, and performs a cost analysis to 
determine whether such fees are adequate to recover the costs FSIS 
incurs in providing the services. In its analysis of projected costs 
for fiscal year 1996, FSIS has identified increases in the costs of 
providing voluntary inspection, identification, and certification 
services, as well as overtime and holiday services. These increases are 
attributable to the average FSIS national and locality pay raise of 2.4 
percent for Federal employees effective January 1996 and increased 
health insurance costs.
    Accordingly, FSIS is proposing to amend Sec. 391.2 to increase the 
base time rate for providing voluntary inspection, identification, and 
certification services from $31.92 per hour, per program employee, to 
$32.88 per hour, per program employee. FSIS is proposing to amend 
Sec. 391.3 to increase the rate for providing overtime and holiday 
services from $32.96 per hour, per program employee, to $33.76 per 
hour, per program employee.
    In its analysis of projected costs for fiscal year 1996, FSIS also 
has identified a decrease in the cost of providing laboratory services 
to meat and poultry establishments resulting from the use of automated 
equipment for testing laboratory samples and for other inspection 
services not covered under the base time, overtime, and holiday costs, 
such as travel expenses. Therefore, FSIS proposes to amend Sec. 391.4 
of the regulations to reduce the fee charged for providing laboratory 
services from $52.92 per hour, per program employee, to $48.56 per 
hour, per program employee.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been determined to be significant and was 
reviewed by the Office of Management and Budget (OMB) under Executive 
Order 12866. The proposed fee increases for voluntary inspection, 
identification, and certification services, overtime, and holiday 
inspection services primarily reflect the 1996 increase in salaries of 
Federal employees allocated by Congress under the Federal Employees Pay 
Comparability Act of 1990. The proposed fee decrease for laboratory 
services reflects the use of automated equipment for testing laboratory 
samples and other inspection related services not covered under the 
base time, overtime, and holiday costs such as travel expenses.
    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 fee increases provided for in this 
document will reflect a minimal increase in the costs currently borne 
by those entities which elect to utilize certain inspection services 
and a decrease in program support costs.

Executive Order 12778

    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. States and local jurisdictions are preempted by 
the FMIA and the PPIA from proposing any regulations or policies which 
conflict with its provisions or which would otherwise impede its full 
implementation. This proposed rule is not intended to have retroactive 
effect. There are no applicable administrative procedures that must be 
exhausted prior to any judicial challenge to the provisions of this 
proposed rule. However, the administrative procedures are set forth in 
7 CFR part 1.

List of Subjects in 9 CFR Part 391

    Fees and charges, Meat inspection, Poultry products inspection.

    For the reasons set out in the preamble, 9 CFR part 391 is proposed 
to be amended as set forth below.

PART 391--FEES AND CHARGES FOR INSPECTION SERVICES

    1. The authority citation for part 391 is revised 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 2.18 and 2.53.

    2. Sections 391.2, 391.3, and 391.4 would be 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 
$32.88 per hour, per program employee.

[[Page 34749]]

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 $33.76 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 $48.56 per hour, per 
program employee.

    Done at Washington, DC, on June 27, 1996.
Michael R. Taylor,
Administrator, Food Safety and Inspection Service.
[FR Doc. 96-17000 Filed 7-2-96; 8:45 am]
BILLING CODE 3410-DM-P