INSTRUCTIONS GOVERNING THE ADMINISTRATION OF POULTRY INSPECTION WHERE A FEDERAL-STATE SERVICE IS DESIRED

Basis: Supervision

$ 70.390 Basis of providing Federal-State inspection service. Inspection service rendered pursuant to regulations governing the grading and inspection of poultry and edible products thereof (Subpart A of this part) may be furnished on a Federal basis or on a Federal-State basis as provided in §§ 70.390 to 70.404. Inspection service in accordance with the regulations shall be furnished on a Federal basis in any State where arrangements have not been made with cooperating State agencies for service on a Federal-State basis. Inspection service shall be furnished on a Federal-State basis in any State in which the cooperating State agency makes a request, and becomes a party to a cooperative agreement which provides for such Federal-State service. Such cooperating parties within the State may be any responsible and qualified agency interested in promoting orderly marketing of poultry products.

$ 70.391 Supervision. All inspection service which is provided under the aforesaid regulations and cooperatives agreements shall be technically and administratively supervised by the Agricultural Marketing Service (hereafter referred to as AMS) through its national and regional supervisory organization. It shall be the responsibility of AMS to determine that the services rendered pursuant to any cooperative agreement under the regulations are conducted in a satisfactory manner, that the actual post-mortem inspection of poultry is adequate and that uniform procedures and policies are followed in all plants in accordance with the requirements of the regulations. In a State where a Federal-State supervisor of inspection is provided, this supervisor shall be immediately responsible for the activities within the State. However, any supervisory official of AMS at a higher administrative level shall have the anthority to observe independently of or in conjunction with the Federal-State supervisor, any particular station or the official activities of any particular inspector at any time he deems it advisable; and shall have the authority to supervise such activities as may be desirable and necessary. Supervisory direction should be applied through the Federal-State supervisor.

Conditions

$70.395 Regulations. The regulations of the Secretary of Agriculture governing the grading and inspection of poultry and edible products thereof and instructions of the Administrator governing the inspection of products shall apply to both Federal-State inspecion service and to Federal inspection service. AMS shall assume the responsibility for developing the regulations and any instructions issued pursuant thereto and for the supervision of inspection work carried on under the service.

$ 70.396 Qualifications of Federal-State supervisor. The Federal-State supervisor of inspection service shall meet the following qualifications:

(a) He shall have a veterinary degree from an accredited school.

(b) He shall have such technical knowledge, experience, and administrative and supervisory ability as will qualify him for satisfactorily performing the duties of a Federal-State supervisor. These qualifications shall be checked by and be acceptable to AMS.

(c) He shall have had experience in the Federal poultry inspection service or have successfully completed a course of training at an interne station which is under the supervision of the Federal poultry inspection service of AMS. (d) He shall be given a joint Federal-State or a full Federal appointment. (e) He shall perform supervisory functions in a manner satisfactory to AMS. The Federal-State supervisor may at the discretion of AMS be removed from his position and replaced by another qualified employee whenever such action is in the best interests of AMS.

$ 70.397 Duties of the Federal-State supervisor. The Federal-State supervisor of inspection service shall be responsible for the supervision and proper conduct of inspection service within the State or States to which he is assigned. He may be assigned to supervise inspection service in a single State or in two or more adjoining States providing this is agreed to by AMS and the cooperating agencies in such States, except that a Federal-State supervisor shall not have more than 35 plants under his supervision. He shall examine each prospective State inspector and recommend acceptable applicants for a license. Such

recommendation shall be in writing and be accompanied by a statement of the qualifications of the applicant. He shall be responsible for making surveys of plants applying for service within his State and present his recommendation for action on such applications in writing accompanied by appropriate supporting evidence to the Federal office of the inspection service. The assignment of State employed inspectors to plants shall be mutually agreeable to the State agency and AMS. Insofar as practicable inspectors will not be assigned to plants where they have been previously employed.

§ 70.398 Employment and licensing of State inspectors. (a) The cooperating State agency shall assume responsibility for recruitment and employment of State inspectors for plants under the Federal-State service, and the salaries of such inspectors shall be paid by the State. Such inspectors may be employed only when licensed by AMS. and it shall be understood that AMS shall have the authority to withdraw such license at any time (and thus terminate the services of any such inspector) in accordance with the provisions of the regulations. The licensed State inspector shall not under any circumstance, while a licensed inspector, accept employment money or remuneration of any kind from the company to which assigned.

(b) Each prospective State inspector shall complete a period of training under the immediate supervision of a Federally employed training supervisor. The license issued to the prospective State inspector shall be a limited license authorizing him to perform inspection work only under the supervision of the inspectorin-charge of the station to which he is assigned. A license authorizing the State inspector to serve as inspector-in-charge of a station may be issued when it has been determined by the officer-in-charge of the poultry grading and inspection service of AMS that the inspector is qualified for such a position.

$ 70.399 Duties of State-employed inspectors. The duties of the State-employed inspectors shall be the same as the duties of Federally-employed inspectors. Inspectors shall make proper, accurate and adequate post-mortem examinations of poultry carcasses and shall thoroughly familiarize themselves with and adhere to the inspection procedures and the applicable provisions of the Federal regulations governing inspection service.

$70.400 Replacement of Federal inspectors. When Federal-State inspection service is inaugurated in a State, and when such service will replace Federal inspection service furnished in the State at that time, the replacement of Federal inspectors by State inspectors shall not be carried out until satisfactory transfers of the Federal inspectors to plants out of the State can be accomplished by AMS.

§ 70.401 Collection of fees. Either the cooperating State agency or AMS, as agreed upon, may assume the responsibility for the collection of all fees for Federal-State inspection strvice in the State. The contract providing for Federal-State inspection service shall be between each firm under Federal-State inspection service and the agency responsible for the collection of fees, and each such contract, in either case, shall be approved or concurred in by AMS. § 70.402 Reimbursement of AMS by State cooperating agency. When the cooperating State agency assumes the responsibility for the collection of fees, it shall reimburse AMS from fees collected or from State appropriations, or both, for the following:

(a) An amount equal to that part of the Federal-State supervisor's salary paid by AMS.

(b) An amount equal to salaries of any Federally employed inspectors who perform inspection service in any plant operating under Federal-State inspection service, such salary costs to cover the periods of such assignments.

(c) An amount to cover accrued leave both annual and sick and travel costs incurred by persons referred to in paragraphs (a) and (b) of this section, during periods such persons are performing Federal-State service.

(d) An amount equal to 7 percent of the amounts referred to in paragraphs (a), (b), and (c) of this section.

(e) An amount sufficient to cover overhead in excess of that specified in paragraph (d) of this section, general supervision and other costs and expenses incurred by the Service in rendering the inspection service.

$70.403 Reimbursement of cooperating State agency by AMS. When AMS assumes the responsibility for the collection of fees, it shall reimburse the cooperating State agency for the salaries of the State inspectors, for periods during which such inspectors perform Federal-State inspection service, and for

such annual and sick leave as may be authorized by the State, and agreed to by AMS.

§ 70.404 Additional provisions. The cooperating State agency shall, without cost to AMS, furnish office space, office furniture and equipment, heat, light, clerical assistance, and telephone service for use by the Federal-State supervisor.

APPLICATION FOR GRADING SERVICE

§ 70.410 Application for grading service with respect to live poultry, dressed poultry and ready-to-cook poultry.

Application is hereby made, in accordance with the applicable provisions of the regulations (7 CFR Part 70) governing the grading and inspection of poultry and edible products thereof and United States classes, standards, and grades with respect thereto, for grading service to be performed at the plant hereinafter designated:

(Name of plant)

(Street address)

(City and State)

(a) Upon approval of this application by the Agricultural Marketing Service, United States Department of Agriculture (hereinafter referred to as "AMS"), AMS will furnish grading service in accordance with the terms and conditions hereof.

(b) In making this application, the applicant agrees to comply with the terms and conditions of the aforesaid regulations (including such applicable instructions as may be issued from time to time by the Administrator), and such other conditions as hereinafter enumerated.

(c) The applicant agrees to pay for the full cost of the grading service covered hereby to AMS at the time the respective invoices are rendered by AMS. The full costs shall comprise such of the following items as may be due and may be included, from time to time, in the invoice or invoices covering the period or periods during which the grading service may be rendered:

(1) A charge of $75.00 for the initial survey and examination of blueprints of the designated plant and its premises prior to the performance by AMS of the grading service covered hereby;

(ii) A charge of $100.00 for the final survey and inauguration of the grading service including the assignment of one grade and one alternate grader, provided they are installed at the same time.

(iii) A charge of $50.00 for each additional grader or replacement of a previously assigned grader to the designated plant: Provided, That, in the sole discretion of the Service no such charge will be made for a temporary replacement when such replacement is made by the use of a regular employee of the Service, or when the replacement is made necessary by a transfer of an employee of the Service for the sole benefit of the Service.

(iv) A charge equal to the salary costs paid to each grader assigned to the applicant's plant by AMS including earned annual leave and, if necessary, earned sick leave: Provided, That no charge is to be made for salary costs of any assigned grader of the designated plant while temporarily reassigned by AMS to perform grading service for other than the applicant except when the assigned grader is performing inspections for the Department of Defense on products accepted for delivery by the applicant to the Department of Defense, in which case the applicant will be given credit for the service rendered based on a formula concurred in jointly by the Departments of Defense and Agriculture.

(v) A charge equal to the salary costs, travel expenses and per diem paid by AMS to any grader whose services are required for relief purposes when regular graders are on annual or sick leave.

(vi) A charge for the actual cost to AMS of any travel and per diem incurred by each grader assigned to the plant while in the performance of grading service rendered the applicant;

(vii) A charge, at the sole discretion of AMS. of an amount not in excess of the actual cost to AMS of the travel (including the cost of movement of household goods and dependents) and per diem with respect to each grader who is transferred from an official station to the designated plant;

(viii) A charge included in salary costs equal to the Employer's tax imposed under the United States Internal Revenue Code (26 U. S. C.) for Old Age and Survivor's benefits under the Social Security System; and

(ix) An administrative service charge based upon the aggregate weight of the total monthly volume of all products handled in the plant, and computed in accordance with the following table:

(x) A charge of $4.00 per hour plus actual costs to AMS for per diem and travel costs incurred in rendering services not specifically covered by this contract; such as, surveys in addition to the initial and final.

(xi) A charge equal to 7 percent of the salary paid by AMS to each grader exclusive of one regular grader whose salary is paid by AMS.

(d) The applicant shall designate, in writing, the employees of the applicant, who will be required and authorized, to furnish each grader with such information as may be necessary for the performance of the grading service.

It is agreed that:

(a) AMS will provide an adequate number of graders to perform the grading service covered hereby;

(b) At the sole discretion of AMS the graders may be either a Federal or State employee or a licensed employee of the applicant;

(c) AMS shall not be responsible for damages accruing through any acts of commission or omission on the part of any grader;

(d) The provisions hereof shall continue in full force and effect from its effective date until suspended, withdrawn, or terminated, by (i) mutual consent of the applicant and AMS; (ii) written notice given by either party to the other to take effect on a specific date not less than 30 days from the date of the giving of such notice; (iii) one (1) day's written notice by AMS to the applicant, if the applicant fails to honor any invoice within thirty (30) days after date of invoice covering the cost of the grading service as herein provided; or (iv) termination of the services requested herein pursuant to the provisions in the following paragraph (e);

(e) The services to be rendered hereunder shall be terminated by AMS at any time AMS, acting pursuant to any applicable laws, rules, or regulations, debars the applicant from receiving any further benefits of the service, or the services hereunder may be suspended or terminated at any time AMS concludes that the applicant has not conformed, or cannot conform, hereto;

(f) All terms used herein shall have the same meaning as when used in the aforesaid regulations and instructions;

(g) A federally employed grader will be required to confine his activities to those duties necessary in the rendering of grading service and such closely related activities as may be approved by AMS: Provided, That, in no instance will the federally employed grader assume the duties of management;

(h) No Member of or Delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this agreement or to any benefit that may arise therefrom unless derived through the agreement made with a corporation for its general benefit.

Unless otherwise indicated herein the bills will be rendered to the applicant at the addresse indicated above.

Application for Inspection Service

$70.416 Application for inspection of dressed poultry and edible products thereof for condition and wholesomeness.

Application is hereby made, in accordance with the applicable provisions of the regulations (7 CFR Part 70) governing the inspection of poultry and edible products thereof, for condition and wholesomeness at the following designated plant:

Name of plant
Street address
City and State

(a) In making this application, the applicant agrees to comply with the terms and conditions of the aforesaid regulations (including, but not being limited to, such instructions governing inspection of products as may be issued, from time to time, by the Administrator), and the following:

(1) Payment for the full cost of the inspection service covered hereby shall be made by the applicant to the Agricultural Marketing Service, United States Department of Agriculture (hereinafter referred to as "AMS") not later than thirty (30) days from date of billing. Such full costs shall comprise such of the following items as may be due and may be included, from time to time, in the invoice or invoices covering the period or periods during which the inspection service may be rendered;

(i) A charge of $75.00 for the survey (required to be made with respect to an official plant pursuant to the aforesaid regulations) made of the designated plant and its premises (but no charge for the final survey) prior to the performance, by AMS, of the inspection service covered hereby: Provided, That, if at the time of submission of this application for inspection service such designated plant is an official plant in which grading service is performed by AMS and inspection service was not performed by AMS in such plant during the twelve-month period ending on the date of this application, the charge for the survey shall be computed in the manner specified in paragraph (a) (1) (ii) of this application;

(ii) Charges for each additional survey, if any, made at the request of the applicant to be computed on the basis (a) of the actual cost to AMS of the travel and per diem in lieu of subsistence incurred in the making of the survey, and (b) a charge of $4.00 per hour for the time consumed at the plant in making the

survey;

(iii) A charge of (a) $116.00 per 40-hour work week for each inspector assigned to the designated plant by AMS for the inspection of dressed poultry at the time of evisceration; (b) $98.00 per 40-hour work week for each inspector assigned to the designated plant by AMS for the inspection of canning or other processing of poultry food products; and (c) $68.00 per 40-hour work week for each inspector assigned to the designated plant by AMS for the inspection of products for condition: Provided, That, with respect to each inspector who is employed by AMS on a “when actually employed" basis, such charges shall be computed on the appropriate hourly basis: Provided, further, That, no charge