[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 79992-79994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27347]


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DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

[Docket Number FSIS-2020-0033]


2021 Rate Changes for the Basetime, Overtime, Holiday, Laboratory 
Services, and Export Application Fees

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Notice.

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SUMMARY: The Food Safety and Inspection Service (FSIS) is announcing 
the 2021 rates it will charge meat and poultry establishments, egg 
products plants, and importers and exporters for providing voluntary, 
overtime, and holiday inspection and identification, certification, and 
laboratory services. Additionally, FSIS is announcing that there will 
be no changes to the fee FSIS assesses to exporters that choose to 
apply for export certificates electronically through the export 
component of the Agency's Public Health Information System.
    The 2021 basetime, overtime, holiday, and laboratory services rates 
will be applied on January 3, 2021.

DATES: FSIS will charge the rates announced in this notice beginning 
January 3, 2021.

FOR FURTHER INFORMATION CONTACT: For further information contact 
Michael Toner, Director, Budget Division, Office of the Chief Financial 
Officer, FSIS, U.S. Department of Agriculture, Room 2159, South 
Building, 1400 Independence Avenue SW, Washington, DC 20250-3700; 
Telephone: (202) 690-8398, Fax: (202) 690-4155.

SUPPLEMENTARY INFORMATION:

Background

    On April 12, 2011, FSIS published a final rule amending its 
regulations to establish formulas for calculating the rates it charges 
meat and poultry establishments, egg products plants, and importers and 
exporters for providing voluntary, overtime, and holiday inspection and 
identification, certification, and laboratory services (76 FR 20220).
    In the final rule, FSIS stated that it would use the formulas to 
calculate the annual rates, publish the rates in Federal Register 
notices prior to the start of each calendar year, and apply the rates 
on the first FSIS pay period at the beginning of the calendar year. 
This notice provides the 2021 rates, which will be applied starting on 
January 3, 2021.

Public Health Information System Export Application Fee

    On June 29, 2016, FSIS published the final rule, ``Electronic 
Export Application and Certification Charge; Flexibility in the 
Requirements for Export Inspection Marks, Devices, and Certificates; 
Egg Products Export Certification'' (81 FR 42225). The preamble to the 
final rule explained that FSIS would implement an electronic export 
application and certification system available through the Agency's 
Public Health Information System (PHIS) export component.
    The electronic export application and certification process 
provides service options to U.S. exporters, enabling them to 
electronically submit, track, and manage their export applications. To 
cover the costs of providing this service, the final rule established a 
formula-based fee for electronic export applications. The final rule 
stated that, on an annual basis, the Agency would update the fee and 
publish the new fee in the Federal Register.
    On September 6, 2017, FSIS published a Federal Register notice, 
``Public Health Information System (PHIS) Export Component Country 
Implementation'' (FR 82 42056). The

[[Page 79993]]

notice announced the delayed implementation of the export component to 
ensure sufficient testing and outreach to stakeholders and that the 
application fee would be recalculated based on available costs and 
number of applications, but would not be assessed prior to January 1, 
2019. In addition, FSIS announced that it would implement the PHIS 
Export Component with a limited number of countries and gradually 
expand implementation to additional countries.
    On April 29, 2019, FSIS published a Federal Register notice, 
``Public Health Information System Export Component Fee'' (84 FR 
17999). This notice announced that starting June 1, 2019, FSIS would 
assess a fee of $4.01 to exporters that chose to apply for export 
certificates electronically through the export component of PHIS. As 
noted below, that fee remains unchanged since 2019. The 2021 export 
component fee will be applied starting on January 3, 2021.

2021 Rates and Calculations

    The following table lists the 2021 Rates per hour, per employee, by 
type of service:

------------------------------------------------------------------------
                                                             2021 Rate
                                                            (estimates
                                                            rounded to
                         Service                              reflect
                                                             billable
                                                             quarters)
------------------------------------------------------------------------
Basetime................................................          $66.56
Overtime................................................           81.72
Holiday.................................................           96.88
Laboratory..............................................           84.64
Export Application......................................          * 4.01
------------------------------------------------------------------------
* Per application

    The regulations that cover these fees (other than the export 
application fee) state that FSIS will calculate the rates using 
formulas that include the Office of Field Operations (OFO) inspection 
program personnel's previous fiscal year's regular direct pay and 
regular hours (9 CFR 391.2, 391.3, 391.4, 590.126, 590.128, 592.510, 
592.520, and 592.530). In 2013, an Agency reorganization eliminated the 
Office of International Affairs program office and transferred all of 
its inspection program personnel to OFO. Therefore, inspection program 
personnel's pay and hours are identified in the calculations as ``OFO 
inspection program personnel's'' pay and hours.
    FSIS determined the 2021 rates using the following calculations:
    Basetime Rate = The quotient of dividing the Office of Field 
Operations (OFO) inspection program personnel's previous fiscal year's 
regular direct pay by the previous fiscal year's regular hours, plus 
the quotient multiplied by the calendar year's percentage of cost of 
living increase, plus the benefits rate, plus the travel and operating 
rate, plus the overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2021 basetime rate per hour per program 
employee is:
    [FY 2020 OFO Regular Direct Pay divided by the previous fiscal 
year's Regular Hours ($434,649,264/14,468,095)] = $30.04 + ($30.04 * 
1.0% (calendar year 2020 Cost of Living Increase)) = $30.34 + $11.15 
(benefits rate) + $2.67 (travel and operating rate) + $22.39 (overhead 
rate) + $0.00 (bad debt allowance rate) = $66.55, rounded up to $66.56, 
so that it is divisible by 4.
    Overtime Rate = The quotient of dividing the Office of Field 
Operations (OFO) inspection program personnel's previous fiscal year's 
regular direct pay by the previous fiscal year's regular hours, plus 
that quotient multiplied by the calendar year's percentage of cost of 
living increase, multiplied by 1.5 (for overtime), plus the benefits 
rate, plus the travel and operating rate, plus the overhead rate, plus 
the allowance for bad debt rate.
    The calculation for the 2021 overtime rate per hour per program 
employee is:
    [FY 2020 OFO Regular Direct Pay divided by previous fiscal year's 
Regular Hours ($434,649,264/14,468,065)] = $30.04 + ($30.04 * 1.0% 
(calendar year 2021 Cost of Living Increase)) = $30.34 * 1.5 = $45.51 + 
$11.15 (benefits rate) + $2.67 (travel and operating rate) + $22.39 
(overhead rate) + $0.00(bad debt allowance rate) = $81.72, which is 
divisible by 4.
    Holiday Rate = The quotient of dividing the Office of Field 
Operations (OFO) inspection program personnel's previous fiscal year's 
regular direct pay by the previous fiscal year's regular hours, plus 
that quotient multiplied by the calendar year's percentage of cost of 
living increase, multiplied by 2 (for holiday pay), plus the benefits 
rate, plus the travel and operating rate, plus the overhead rate, plus 
the allowance for bad debt rate.
    The calculation for the 2021 holiday rate per hour per program 
employee calculation is:
    [FY 2020 OFO Regular Direct Pay divided by Regular Hours 
($434,649,264/14,468,095)] = $30.04 + ($30.04 * 1.0% (calendar year 
2020 Cost of Living Increase)) = $30.34 * 2 = $60.68 + $11.15(benefits 
rate) + $2.67 (travel and operating rate) + $22.39 (overhead rate) + 
$0.00 (bad debt allowance rate) = $96.89, rounded down to 96.88, so 
that it is divisible by 4.
    Laboratory Services Rate = The quotient of dividing the Office of 
Public Health Science (OPHS) previous fiscal year's regular direct pay 
by the OPHS previous fiscal year's regular hours, plus the quotient 
multiplied by the calendar year's percentage cost of living increase, 
plus the benefits rate, plus the travel and operating rate, plus the 
overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2021 laboratory services rate per hour per 
program employee is:
    [FY 2020 OPHS Regular Direct Pay/OPHS Regular hours ($24,151,169/
503,692)] = $47.95 + ($47.95 * 1.0% (calendar year 2020 Cost of Living 
Increase)) = $48.43 + $11.15 (benefits rate) + $2.67 (travel and 
operating rate) + $22.39 (overhead rate) + $0.00 (bad debt allowance 
rate) = $84.64, which is already divisible by 4.

Calculations for the Benefits, Travel and Operating, Overhead, and 
Allowance for Bad Debt Rates

    These rates are components of the basetime, overtime, holiday, and 
laboratory services rates formulas.
    Benefits Rate: The quotient of dividing the previous fiscal year's 
direct benefits costs by the previous fiscal year's total hours 
(regular, overtime, and holiday), plus that quotient multiplied by the 
calendar year's percentage cost of living increase. Some examples of 
direct benefits are health insurance, retirement, life insurance, and 
Thrift Savings Plan basic and matching contributions.
    The calculation for the 2021 benefits rate per hour per program 
employee is:
    [FY 2020 Direct Benefits/(Total Regular hours + Total Overtime 
hours + Total Holiday hours) ($197,034,144/17,848,090)] = $11.04 + 
($11.04* 1.0% (calendar year 2020 Cost of Living Increase)) = $11.15.
    Travel and Operating Rate: The quotient of dividing the previous 
fiscal year's total direct travel and operating costs by the previous 
fiscal year's total hours (regular, overtime, and holiday), plus that 
quotient multiplied by the calendar year's percentage of inflation.
    The calculation for the 2021 travel and operating rate per hour per 
program employee is:
    [FY 2020 Total Direct Travel and Operating Costs/(Total Regular 
hours + Total Overtime hours + Total Holiday hours) ($46,500,647/
17,848,090)] = $2.61 + ($2.61 * 2.3% (2021 Inflation) = $2.67.
    Overhead Rate: The quotient of dividing the previous fiscal year's 
indirect costs plus the previous fiscal year's information technology 
(IT) costs

[[Page 79994]]

in the Public Health Data Communication Infrastructure System Fund plus 
the provision for the operating balance less any Greenbook costs (i.e., 
costs of USDA support services prorated to the service component for 
which fees are charged) that are not related to food inspection by the 
previous fiscal year's total hours (regular, overtime, and holiday) 
worked across all funds, plus the quotient multiplied by the calendar 
year's percentage of inflation.
    The calculation for the 2021 overhead rate per hour per program 
employee is:
    [FY 2020 Total Overhead/(Total Regular hours + Total Overtime hours 
+ Total Holiday hours) ($ 390,719,959/17,848,090)] = $21.89 + ($21.89 * 
2.3% (2020 Inflation) = $22.39.
    Allowance for Bad Debt Rate = Previous fiscal year's total 
allowance for bad debt (for example, debt owed that is not paid in full 
by plants and establishments that declare bankruptcy) divided by 
previous fiscal year's total hours (regular, overtime, and holiday) 
worked.
    The 2021 calculation for bad debt rate per hour per program 
employee is:
    [FY 2020 Total Bad Debt/(Total Regular hours + Total Overtime hours 
+ Total Holiday hours) = ($49,837/17,848,090)] = $0.00.
    2021 Electronic Export Application Fee The 2021 Electronic Export 
Application Fee:

Labor Cost ($560,901.60+ ($337,369))+ IT Cost ($1,414,285.60+$0)
576,192
= $4.01
 

    As published in the 2016 final rule, the Electronic Export 
Application Fee Formula is:

Labor Cost (Technical Support + Export Library Maintenance) + IT Cost
 (Ongoing Operations and Maintenance + eAuthentication)
------------------------------------------------------------------------
Number of Export Applications
 

    The 2021 electronic export application fee remains unchanged since 
2019. FSIS stated in the 2016 final rule (81 FR 42225) and the 2017 
Federal Register notice (FR 82 42056) that it would update and 
recalculate the fee based on the best available estimates for costs and 
number of applications; however, the number of export applications (the 
denominator in the formula) cannot be accurately assessed until a 
majority of countries are included in the export component. Therefore, 
because a majority of countries are not yet included in the PHIS Export 
component, the cost estimates and projected export applications in the 
final rule remain the best estimate for 2021, leaving the electronic 
export application fee unchanged.

Additional Public Notification

    FSIS will make copies of this Federal Register publication 
available through the FSIS Constituent Update, which is used to provide 
information regarding FSIS policies, procedures, regulations, Federal 
Register notices, FSIS public meetings, and other types of information 
that could affect or would be of interest to our constituents and 
stakeholders. The Constituent Update is available on the FSIS web page. 
Through the web page, FSIS can provide information to a much broader, 
more diverse audience. In addition, FSIS offers an email subscription 
service which provides automatic and customized access to selected food 
safety news and information. This service is available at: http://www.fsis.usda.gov/subscribe. Options range from recalls to export 
information, regulations, directives, and notices. Customers can add or 
delete subscriptions themselves and have the option to password protect 
their accounts.

USDA Non-Discrimination Statement

    No agency, officer, or employee of the USDA shall, on the grounds 
of race, color, national origin, religion, sex, gender identity, sexual 
orientation, disability, age, marital status, family/parental status, 
income derived from a public assistance program, or political beliefs, 
exclude from participation in, deny the benefits of, or subject to 
discrimination any person in the United States under any program or 
activity conducted by the USDA.

How to File a Complaint of Discrimination

    To file a complaint of discrimination, complete the USDA Program 
Discrimination Complaint Form, which may be accessed online at http://www.ocio.usda.gov/sites/default/files/docs/2012/Complain_combined_6_8_12.pdf, or write a letter signed by you or your 
authorized representative.
    Send your completed complaint form or letter to USDA by mail, fax, 
or email:
    Mail: U.S. Department of Agriculture, Director, Office of 
Adjudication, 1400 Independence Avenue SW, Washington, DC 20250-9410, 
Fax: (202) 690-7442.
    Email: [email protected].
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audiotape, etc.), should contact 
USDA's TARGET Center at (202) 720-2600 (voice and TDD).

    Done at Washington, DC.
Paul Kiecker,
Administrator.
[FR Doc. 2020-27347 Filed 12-10-20; 8:45 am]
BILLING CODE 3410-DM-P