# Fee Increase for Inspection Services

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URL: https://www.frixlaw.com/law-library/documents/fr%3A94-15504

## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** June 27, 1994

## Text

SUMMARY: The Food Safety and Inspection Service (FSIS) is proposing to
amend 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 proposed
fee increases reflect the increased costs of providing these services
due primarily to the increase in salaries of Federal employees
allocated by Congress under the Federal Employees Pay Comparability Act
of 1990.

DATES: Comments must be received on or before: July 27, 1994.

ADDRESSES: Send written comments to the Policy Evaluation and Planning
Staff, Attention: Diane Moore, FSIS Hearing Clerk, Room 3171, South
Agriculture Building, Food Safety and Inspection Service, U.S.
Department of Agriculture, Washington, DC 20250-3700. Oral comments as
provided under the Poultry Products Inspection Act should be directed
to Mr. William L. West, (202) 720-3367. (See also ``Comments'' under
Supplementary Information.)

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:

Executive Order 12866

This proposed rule has been determined to be not significant for
purposes of Executive Order 12866 and therefore has not been reviewed
by the Office of Management and Budget. The proposed fee increases
reflect the increased costs of providing certain inspection services
due primarily to an increase in salaries of Federal employees allocated
by Congress under the Federal Employees Pay Comparability Act of 1990.
Since FSIS is required to recover the reimbursable portion of the
increase in employee salaries, FSIS is only providing a 30-day comment
period for this proposed rule.

Executive Order 12778

This proposed rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This proposed 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 proposed rule is not intended to have
retroactive effect unless so specified in the EFFECTIVE DATE section of
this preamble. 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 provided for in this document
reflect only a minimal increase in the costs currently borne by those
entities which elect to utilize certain inspection services.

Comments

Interested persons are invited to submit written comments
concerning this proposal. Written comments should be sent to the Policy
Evaluation and Planning Staff and should refer to docket number 94-
013P. Any person desiring an opportunity for oral presentation of views
as provided under the Poultry Products Inspection Act must make such
request to Mr. West so that arrangements may be made for such views to
be presented. A record will be made of all views orally presented. All
comments submitted in response to this proposal will be available for
public inspection in the Policy Office from 9:00 a.m. to 4:00 p.m.,
Monday through Friday.

Background

Mandatory inspection by Federal inspectors of meat and poultry
slaughtered and/or processed at official establishments is provided for
under 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.). Such
inspection is required to ensure the safety, wholesomeness, and proper
labeling of meat and poultry products; the ordinary costs of inspection
are borne by the U.S. Government. However, costs for these inspection
services performed on holidays or on an overtime basis may be incurred
to accommodate the business needs of particular establishments. All of
these costs which are not a part of the mandatory inspection service
are recoverable by the Government.
Each year the fees for certain services rendered to operators of
official meat and poultry establishments, importers, or exporters by
FSIS are reviewed and a cost analysis is performed to determine if such
fees are adequate to recover the cost of providing the services.\1\ The
analysis relates to fees changed in connection with overtime and
holiday inspection, voluntary inspection, identification,
certification, or laboratory services. The proposed new fees discussed
below were determined by an analysis of data on the current cost of
these services and by increases in costs due primarily to an increase
in the salaries of Federal employees allocated by Congress under the
Federal Employees Pay Comparability Act of 1990 which provided an
average FSIS locality pay raise of 3.2 percent in January 1994. Other
increases affecting Federal employees, such as costs for benefits, are
due to the increasing number of employees covered by the Federal
Employees Retirement System in 1994 which is subject to the Federal
Insurance Contributions Act (FICA) tax, and increased health insurance
costs. Based on the Agency's analysis of the costs in providing these
services, FSIS is proposing to increase the fees relating to overtime
and holiday inspection, voluntary inspection, identification,
certification and laboratory services.
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\1\The cost analysis is on file with the FSIS Hearing Clerk.
Copies may be requested free of charge from the FSIS Hearing Clerk,
Room 3171, South Agriculture Building, Food Safety and Inspection
Service, U.S. Department of Agriculture, Washington, DC 20250-3700.
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9 CFR 307.5 of the Federal meat inspection regulations provides
that FSIS shall be reimbursed for the cost of meat inspection on
holidays or on an overtime basis at the rate specified in 9 CFR 391.3,
currently $30.72 per hour, per program employee. Similarly, 9 CFR
381.38 of the poultry products inspection regulations provides that
FSIS shall be reimbursed for the cost of poultry inspection on holidays
or on an overtime basis at the rate specified in 9 CFR 391.3, currently
$30.72 per hour, per program employee. FSIS is proposing to increase
the fee set forth in section 391.3 to $31.80 per hour, per program
employee.
FSIS also provides a range of voluntary inspection and
certification services (9 CFR 350.7, 351.8, 351.9, 352.5, 354.101,
355.12, and 362.5); the costs of which are totally recoverable by the
Government. These services, provided under Subchapter B--Voluntary
Inspection and Certification Service--are provided under the
Agricultural Marketing Act of 1946, as amended (7 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.
The base time rate for providing voluntary inspection and
certification services is currently $29.84 per hour, per program
employee, as specified in 9 CFR 391.2. The overtime and holiday rate
for voluntary inspection services is currently $30.72 per hour, per
program employee, as specified in 9 CFR 391.3. As stated above, these
fees would be increased to $31.12 per hour and $31.80 per hour, per
program employee, respectively.
The rate for laboratory services is currently $51.80 per hour, per
program employee, as specified in 9 CFR 391.4. FSIS is proposing to
increase the fee set forth in section 391.4 to $52.04 per hour, per
program employee.

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 would continue to read as
follows:

Authority: 21 U.S.C. 601 et seq., 460 et seq.; 7 CFR 2.17 (g)
and (i), 2.55; 7 U.S.C. 394, 1622, and 1624.

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
$31.13 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 $31.80 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 $52.04 per hour, per
program employee.

Done at Washington, DC, on June 22, 1994.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Inspection Services.
[FR Doc. 94-15504 Filed 6-24-94; 8:45 am]
BILLING CODE 3410-DM-M

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-15504. Public record. Not legal advice.
