[Federal Register Volume 61, Number 241 (Friday, December 13, 1996)]
[Rules and Regulations]
[Pages 65459-65460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31609]


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

DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service

9 CFR Part 391

[Docket No. 96-013F]
RIN 0583-AC13


Fee Increase for Inspection Services

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Food Safety and Inspection Service (FSIS) is increasing 
the fees charged to meat and poultry establishments, importers, and 
exporters for providing voluntary inspection, identification, and 
certification services; overtime and holiday services. The fee 
increases are based on 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.
    At the same time, FSIS is reducing 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.

EFFECTIVE DATE: December 13, 1996.

ADDRESSES: FSIS's cost analysis is on file with the FSIS Docket Clerk, 
Room 3806, South Agriculture Building, Food Safety and Inspection 
Service, U.S. Department of Agriculture, Washington, DC 20250-3700. It 
is 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: William L. West, Director, Budget and 
Finance Division, Administrative Management, (202) 720-3367.

SUPPLEMENTARY INFORMATION:

Background

    The Federal Meat Inspection Act (FMIA) and the Poultry Products 
Inspection Act (PPIA) provide for mandatory inspection of meat and 
poultry slaughtered 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 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 identified increases in the costs of 
providing voluntary inspection, identification, and certification 
services, as well as overtime and holiday services. The 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.

[[Page 65460]]

    On July 3, 1996, FSIS published a proposed rule in the Federal 
Register (61 FR 34748) to increase the fees charged by FSIS to provide 
voluntary inspection, identification, and certification services, and 
overtime and holiday services. FSIS also proposed to reduce the fees 
charged for providing laboratory services to meat and poultry 
establishments.
    FSIS did not receive any comments in response to the proposed rule 
and is finalizing the rule as proposed. FSIS maintains that the 
increased rates are necessary and reflect the cost of providing 
inspection services. The new rates reflect only 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.
    Accordingly, FSIS is amending 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 amending 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 
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 is amending 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.
    To recover the 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 and Regulatory Flexibility Act

    This final rule has been determined to be significant and was 
reviewed by the Office of Management and Budget under Executive Order 
12866. The 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 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, FSIS, 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 final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule (1) preempts all State and local laws, 
regulations that are inconsistent with this rule; (2) has no 
retroactive effect; and (3) does not require administrative proceedings 
before parties may file suit in court challenging this rule.

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 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 2.18 and 2.53.

    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 December 6, 1996.
Thomas J. Billy,
Administrator.
[FR Doc. 96-31609 Filed 12-12-96; 8:45 am]
BILLING CODE 3410-DM-P