[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]
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