Fee Increase for Inspection Services

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, importers, and

exporters. The proposed fees reflect the increased costs of providing

these services which are primarily due to the 1995 Federal salary

increases allocated by Congress under the Federal Employees Pay

Comparability Act of 1990.

DATES: Comments must be received on or before May 12, 1995.

ADDRESSES: Submit written comments in triplicate to Diane Moore, FSIS

Docket Clerk, Room 3171, South Agriculture Building, Food Safety and

Inspection Service, U.S. Department of Agriculture, Washington, DC

20250-3700. All comments should refer to Docket Number 95-004P. Oral

comments as provided under the Poultry Products Inspection Act should

be directed to Mr. William L. West, at (202) 720-3367. 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 FSIS Docket Room from 9 a.m. to 12:30 p.m. and from

1:30 p.m. to 4 p.m., Monday through Friday, except holidays.

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 (21 U.S.C. 601 et seq.) and the

Poultry Products Inspection Act (21 U.S.C. 451 et seq.) 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 and certification services (9 CFR 350.7, 351.8,

351.9, 352.5, 354.101, 355.12, and 362.5). The costs of voluntary

inspection are totally recoverable by the Federal Government. These

services, set forth in 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.

Each year, the fees charged by FSIS for voluntary inspection

services provided to operators of official meat and poultry

establishments, importers, or exporters are reviewed and a cost

analysis1 is performed to determine whether such fees are adequate

to recover the costs FSIS incurs in providing the services. The fees

charged are for overtime and holiday inspection, voluntary inspection,

identification, certification, or laboratory services.

\1\The cost analysis is on file with the FSIS Docket Clerk.

Copies may be requested free of charge from the FSIS Docket Clerk,

Room 3171, South Agriculture Building, Food Safety and Inspection

Service, U.S. Department of Agriculture, Washington, DC 20250-3700.

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Based on the projected Fiscal Year 1995 cost analysis, FSIS is

increasing the fees for voluntary services. These increased costs are

attributable to the average FSIS national and locality pay raise of 3.2

percent for Federal employees effective January 1995; the increasing

number of employees covered by the Federal Employees Retirement System

and are subject to the Federal Insurance Contributions Act tax; and

increased health insurance costs.

FSIS is proposing to increase the fees charged for overtime and

holiday inspection, voluntary inspection, identification, certification

and laboratory services to meat and poultry establishments.

Section 307.5 of the Federal meat inspection regulations (9 CFR

307.5) 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 $31.80 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 $31.80 per hour, per program employee. FSIS is

proposing to increase the fee set forth in Sec. 391.3 to $32.96 per

hour, per program employee.

The base time rate for providing voluntary inspection and

certification services is currently $31.12 per hour, per program

employee, as specified in Sec. 391.2. The overtime and holiday rate for

voluntary inspection services is currently $31.80 per hour, per program

employee, as specified in Sec. 391.3. As stated above, these fees would

be increased to $31.92 per hour and $32.96 per hour, per program

employee, respectively.

The rate for laboratory services is currently $52.04 per hour, per

program employee, as specified in Sec. 391.4. FSIS is proposing to

increase the fee set forth in section 391.4 to $52.92 per hour, per

program employee.

Executive Order 12866

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 [[Page 18552]] increases reflect the

increased costs of providing certain inspection services due primarily

to the 1995 increase in salaries of Federal employees allocated by

Congress under the Federal Employees Pay Comparability Act of 1990.

Because 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. Prior to any judicial challenge to the provisions

of this proposed rule, 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

will reflect a minimal increase in the costs currently borne by those

entities which elect to utilize certain inspection services.

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

$31.92 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 April 5, 1995.

Michael R. Taylor,

Administrator, Food Safety and Inspection Service.

[FR Doc. 95-8938 Filed 4-11-95; 8:45 am]

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