01-20099. Exemption for Retail Store Operations

AGENCY:

Food Safety and Inspection Service, USDA.

ACTION:

Notice of adjusted dollar limitations.

SUMMARY:

The Food Safety and Inspection Service (FSIS) is announcing automatic increases in the dollar limitations on sales of meat and meat food products and poultry products to hotels, restaurants, and similar institutions that do not disqualify a store for exemption from Federal inspection requirements. By action of FSIS' regulations, for calendar year 2001, the dollar limitations for meat and meat food products has increased from $42,500 to $44,900 and for poultry products from $39,000 to $39,800. These increases are based on price changes for these products evidenced by the Consumer Price Index (CPI).

EFFECTIVE DATE:

This notice is effective August 13, 2001.

FOR FURTHER INFORMATION:

For further information contact Daniel Engeljohn, Ph.D., Director, Regulations and Directives Development Staff, Office of Policy, Program Development, and Evaluation, FSIS, U.S. Department of Agriculture, Room 112, Cotton Annex Building, 300 12th Street, SW, Washington, DC 20250-3700; telephone [phone], fax [phone].

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 that the statutory provisions requiring inspection of the slaughter of livestock or poultry and the preparation or processing of products thereof do not apply to operations of types traditionally and usually conducted at retail stores and restaurants, when conducted at any retail store or restaurant or similar retail-type establishment for sale in normal retail quantities or service to consumers at such establishments (21 U.S.C. 454(c)(2) and 661 (c)(2)). In §§ 303.1(d) and 381.10(d), respectively (9 CFR 303.1(d) and 381.10(d)), FSIS regulations address the conditions under which requirements for inspection do not apply to retail operations.

Under these regulations, sales to hotels, restaurants, and similar institutions disqualify a store for exemption if they exceed either of two maximum limits: 25 percent of the dollar value of total product sales or the calendar year dollar limitation set by the Administrator. The dollar limitation is adjusted automatically during the first quarter of the year if the CPI, published by the Bureau of Labor Statistics, indicates an increase or decrease of more than $500 in the price of the same volume of product for the previous year. FSIS publishes a notice of the adjusted dollar limitations in the Federal Register. (See paragraphs (d)(2)(iii)(b) and (d)(2)(vi) of §§ 303.1 and 381.10.)

The CPI for 2000 reveals an average annual price increase for meat and meat food products of 5.6 percent and for poultry products of 2.0 percent. When rounded off to the nearest $100.00, the price increase for meat and meat food products is $2,400.00 and for poultry products is $800.00. Because the price of meat and meat food products and the price of poultry products have increased by more than $500, in accordance with §§ 300.1 (d)(2)(iii)(b) and 381.10 (d)(2)(iii)(b) of the regulations, FSIS has increased the dollar limitations on sales to hotels, restaurants, and similar institutions from $42,500 to $44,900 for meat and meat food products and from $39,000 to $39,800 for poultry products for calendar year 2001.

Additional Public Notification

Public awareness of all segments of rulemaking and policy development is important. Consequently, in an effort to better ensure that minorities, women, and persons with disabilities are aware of this final rule, FSIS will announce and provide copies of this Federal Register notice in the FSIS Constituent Update. FSIS provides a weekly FSIS Constituent Update via fax to over 300 organizations and individuals. In addition, the update is available on line through the FSIS web page located at http://www.fsis.usda.gov. The update is used to provide information regarding FSIS policies, procedures, regulations, Federal Register notices, FSIS public meetings, recalls, and any other types of information that could affect or would be of interest to our constituents/stakeholders. The constituent fax list consists of industry, trade, and farm groups, consumer interest groups, allied health professionals, scientific professionals, and other individuals that have requested to be included. Through these various channels, FSIS is able to provide information to a much broader, more diverse audience than would be otherwise possible.

For more information or to be added to the constituent fax list, fax your request to the Congressional and Public Affairs Office, at [phone].

Done at Washington, DC, on: August 7, 2001.

Thomas J. Billy,

Administrator.