[Federal Register: August 13, 2001 (Volume 66, Number 156)]
[Page 42502]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]


[[Page 42502]]


Food Safety and Inspection Service

[Docket No. 01-007N]

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 (202) 720-5627, 
fax (202) 690-0486.



    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 Secs. 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 Secs. 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 Secs. 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://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=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 
(202) 720-5704.

    Done at Washington, DC, on: August 7, 2001.
Thomas J. Billy,
[FR Doc. 01-20099 Filed 8-10-01; 8:45 am]