ALLcrimesfood&drugstaxestelecomcommercehealthconservationtransportationagricultureveteransbrowse all titles »
0

21 U.S.C. § 379j–31Authority to collect and use fees

submitted 88 years ago by Pub. L. 111-353 to r/title-21-FOOD-AND-DRUGS · 1,621 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets the FDA charge fees to cover food-safety reinspection costs. Fees also cover ignored recall orders and the voluntary importer program. Fees are capped, adjusted yearly for inflation, and refunded if Congress underfunds food safety.

(a) In general. (1) Purpose and authority. Starting with fiscal year 2010, the FDA must charge and collect fees from: (A) whoever is responsible for a domestic food facility, or the U.S. agent for a foreign facility, that gets reinspected that year, to cover the reinspection costs; (B) the responsible party at a domestic facility, or an importer, who doesn't comply with a recall order, to cover the FDA's recall-related work such as technical help, follow-up checks, and public notices; (C) each importer in the Voluntary Qualified Importer Program, to cover that program's administrative costs; and (D) each importer who gets reinspected that year, to cover reinspection costs. (2) Definitions. "Reinspection" means a follow-up inspection or import examination done specifically to check whether a facility or importer has fixed a food-safety problem found in an earlier inspection. "Reinspection-related costs" means all expenses of arranging, conducting, and evaluating reinspections, plus the cost of assessing and collecting the fee itself. "Responsible party" has the meaning given elsewhere in this title. (b) Establishment of fees. (1) Each year, the FDA must set these fees using the method below and publish them in the Federal Register at least 60 days before the fiscal year starts. (2) Method. Each fee category — reinspections, ignored recalls, the importer program, and importer reinspections — is set to cover 100% of the FDA's estimated costs for that category that year. In setting the importer-program fee, the FDA must account for how many importers signed up to join, and for the first 5 years after January 4, 2011 it must add a surcharge to recover the program's original startup costs. In setting reinspection fees, the FDA must credit back any amount it overestimated the year before, and may consider other adjustments as needed. Within 180 days of January 4, 2011, the FDA had to propose, with public comment, guidelines addressing the burden of these fees on small businesses, possibly including reduced fees for them; the FDA can only change the small-business fee schedule later through formal notice-and-comment rulemaking. (3) Use of fees. Fees collected for each category may only be spent on that category's costs. (c) Limitations. (1) Fees must be refunded for any year after FY2010 unless Congress's non-fee food-safety funding for that year is at least equal to FY2009's non-fee funding, increased by the inflation factor described below. (2) If the FDA skips fees for part of a year because of (1), but conditions later improve that same year, it can resume collecting fees at the normal rate, regardless of the usual due dates. (3) Adjustment factor. This is the percentage change in the national Consumer Price Index over the 12 months ending the previous June 30 (never counted as negative), added on a compounding basis to all the adjustments made since fiscal year 2009. (4) Caps. The FDA can't collect more than $20,000,000 a year in ignored-recall fees, or more than $25,000,000 combined per year in reinspection fees from domestic facilities and importers. If a facility or importer becomes newly subject to a fee after the relevant cap has already been reached, the FDA may still collect a fee from that facility or importer. (d) Crediting and availability of fees. Fees can only be spent up to what Congress allows in appropriations laws, but they stay available until spent. The FDA may transfer money between its salaries-and-expenses accounts as needed, and any transferred funds may be spent only on FDA staff and contractors doing food-safety-fee-related work. (e) Collection of fees. (1) The FDA must state in its Federal Register notice how and when these fees will be collected. (2) If a fee isn't paid within 30 days of its due date, it's treated as a debt owed to the U.S. government, handled under the federal debt-collection law. (f) Annual report to Congress. Within 120 days after each fee-collection fiscal year, the FDA must report to the Senate HELP Committee and House Energy and Commerce Committee, describing the fees assessed and collected and summarizing who paid them and what kind of business they're in. (g) Authorization of appropriations. For fiscal year 2010 and every year after, Congress is authorized to fund these fees at the total amount calculated under (b), as adjusted or otherwise affected under the rest of this section.
the actual law source: uscode.house.gov ↗public domain
(a) In general
(1) Purpose and authority

For fiscal year 2010 and each subsequent fiscal year, the Secretary shall, in accordance with this section, assess and collect fees from—

(A)

the responsible party for each domestic facility (as defined in section 350d(b) 1 of this title) and the United States agent for each foreign facility subject to a reinspection in such fiscal year, to cover reinspection-related costs for such year;

(B)

the responsible party for a domestic facility (as defined in section 350d(b)1 of this title) and an importer who does not comply with a recall order under section 350l of this title or under section 350a(f) of this title in such fiscal year, to cover food recall activities associated with such order performed by the Secretary, including technical assistance, follow-up effectiveness checks, and public notifications, for such year;

(C)

each importer participating in the voluntary qualified importer program under section 384b of this title in such year, to cover the administrative costs of such program for such year; and

(D)

each importer subject to a reinspection in such fiscal year, to cover reinspection-related costs for such year.

(2) Definitions

For purposes of this section—

(A)

the term “reinspection” means—

(i)

with respect to domestic facilities (as defined in section 350d(b)1 of this title), 1 or more inspections conducted under section 374 of this title subsequent to an inspection conducted under such provision which identified noncompliance materially related to a food safety requirement of this chapter, specifically to determine whether compliance has been achieved to the Secretary’s satisfaction; and

(ii)

with respect to importers, 1 or more examinations conducted under section 381 of this title subsequent to an examination conducted under such provision which identified noncompliance materially related to a food safety requirement of this chapter, specifically to determine whether compliance has been achieved to the Secretary’s satisfaction;

(B)

the term “reinspection-related costs” means all expenses, including administrative expenses, incurred in connection with—

(i)

arranging, conducting, and evaluating the results of reinspections; and

(ii)

assessing and collecting reinspection fees under this section; and

(C)

the term “responsible party” has the meaning given such term in section 350f(a)(1) of this title.

(b) Establishment of fees
(1) In general

Subject to subsections (c) and (d), the Secretary shall establish the fees to be collected under this section for each fiscal year specified in subsection (a)(1), based on the methodology described under paragraph (2), and shall publish such fees in a Federal Register notice not later than 60 days before the start of each such year.

(2) Fee methodology
(A) Fees

Fees amounts established for collection—

(i)

under subparagraph (A) of subsection (a)(1) for a fiscal year shall be based on the Secretary’s estimate of 100 percent of the costs of the reinspection-related activities (including by type or level of reinspection activity, as the Secretary determines applicable) described in such subparagraph (A) for such year;

(ii)

under subparagraph (B) of subsection (a)(1) for a fiscal year shall be based on the Secretary’s estimate of 100 percent of the costs of the activities described in such subparagraph (B) for such year;

(iii)

under subparagraph (C) of subsection (a)(1) for a fiscal year shall be based on the Secretary’s estimate of 100 percent of the costs of the activities described in such subparagraph (C) for such year; and

(iv)

under subparagraph (D) of subsection (a)(1) for a fiscal year shall be based on the Secretary’s estimate of 100 percent of the costs of the activities described in such subparagraph (D) for such year.

(B) Other considerations
(i) Voluntary qualified importer program

In establishing the fee amounts under subparagraph (A)(iii) for a fiscal year, the Secretary shall provide for the number of importers who have submitted to the Secretary a notice under section 384b(c) of this title informing the Secretary of the intent of such importer to participate in the program under section 384b of this title in such fiscal year.

(II)2 Recoupment

In establishing the fee amounts under subparagraph (A)(iii) for the first 5 fiscal years after January 4, 2011, the Secretary shall include in such fee a reasonable surcharge that provides a recoupment of the costs expended by the Secretary to establish and implement the first year of the program under section 384b of this title.

(ii) Crediting of fees

In establishing the fee amounts under subparagraph (A) for a fiscal year, the Secretary shall provide for the crediting of fees from the previous year to the next year if the Secretary overestimated the amount of fees needed to carry out such activities, and consider the need to account for any adjustment of fees and such other factors as the Secretary determines appropriate.

(iii) Published guidelines

Not later than 180 days after January 4, 2011, the Secretary shall publish in the Federal Register a proposed set of guidelines in consideration of the burden of fee amounts on small business. Such consideration may include reduced fee amounts for small businesses. The Secretary shall provide for a period of public comment on such guidelines. The Secretary shall adjust the fee schedule for small businesses subject to such fees only through notice and comment rulemaking.

(3) Use of fees

The Secretary shall make all of the fees collected pursuant to clause 3 (i), (ii), (iii), and (iv) of paragraph (2)(A) available solely to pay for the costs referred to in such clause (i), (ii), (iii), and (iv) of paragraph (2)(A), respectively.

(c) Limitations
(1) In general

Fees under subsection (a) shall be refunded for a fiscal year beginning after fiscal year 2010 unless the amount of the total appropriations for food safety activities at the Food and Drug Administration for such fiscal year (excluding the amount of fees appropriated for such fiscal year) is equal to or greater than the amount of appropriations for food safety activities at the Food and Drug Administration for fiscal year 2009 (excluding the amount of fees appropriated for such fiscal year), multiplied by the adjustment factor under paragraph (3).

(2) Authority

If—

(A)

the Secretary does not assess fees under subsection (a) for a portion of a fiscal year because paragraph (1) applies; and

(B)

at a later date in such fiscal year, such paragraph (1) ceases to apply,

the Secretary may assess and collect such fees under subsection (a), without any modification to the rate of such fees, notwithstanding the provisions of subsection (a) relating to the date fees are to be paid.

(3) Adjustment factor
(A) In general

The adjustment factor described in paragraph (1) shall be the total percentage change that occurred in the Consumer Price Index for all urban consumers (all items; United States city average) for the 12-month period ending June 30 preceding the fiscal year, but in no case shall such adjustment factor be negative.

(B) Compounded basis

The adjustment under subparagraph (A) made each fiscal year shall be added on a compounded basis to the sum of all adjustments made each fiscal year after fiscal year 2009.

(4) Limitation on amount of certain fees
(A) In general

Notwithstanding any other provision of this section and subject to subparagraph (B), the Secretary may not collect fees in a fiscal year such that the amount collected—

(i)

under subparagraph (B) of subsection (a)(1) exceeds $20,000,000; and

(ii)

under subparagraphs (A) and (D) of subsection (a)(1) exceeds $25,000,000 combined.

(B) Exception

If a domestic facility (as defined in section 350d(b)1 of this title) or an importer becomes subject to a fee described in subparagraph (A), (B), or (D) of subsection (a)(1) after the maximum amount of fees has been collected by the Secretary under subparagraph (A), the Secretary may collect a fee from such facility or importer.

(d) Crediting and availability of fees

Fees authorized under subsection (a) shall be collected and available for obligation only to the extent and in the amount provided in appropriations Acts. Such fees are authorized to remain available until expended. Such sums as may be necessary may be transferred from the Food and Drug Administration salaries and expenses account without fiscal year limitation to such appropriation account for salaries and expenses with such fiscal year limitation. The sums transferred shall be available solely for the purpose of paying the operating expenses of the Food and Drug Administration employees and contractors performing activities associated with these food safety fees.

(e) Collection of fees
(1) In general

The Secretary shall specify in the Federal Register notice described in subsection (b)(1) the time and manner in which fees assessed under this section shall be collected.

(2) Collection of unpaid fees

In any case where the Secretary does not receive payment of a fee assessed under this section within 30 days after it is due, such fee shall be treated as a claim of the United States Government subject to provisions of subchapter II of chapter 37 of title 31.

(f) Annual report to Congress

Not later than 120 days after each fiscal year for which fees are assessed under this section, the Secretary shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Energy and Commerce of the House of Representatives, to include a description of fees assessed and collected for each such year and a summary description of the entities paying such fees and the types of business in which such entities engage.

(g) Authorization of appropriations

For fiscal year 2010 and each fiscal year thereafter, there is authorized to be appropriated for fees under this section an amount equal to the total revenue amount determined under subsection (b) for the fiscal year, as adjusted or otherwise affected under the other provisions of this section.

Source credit: (June 25, 1938, ch. 675, § 743, as added Pub. L. 111–353, title I, § 107(a), Jan. 4, 2011, 124 Stat. 3906.)

history & why it existsrecord from the source credit
  • 1938Enacted · Pub. L. 111-353 · 124 Stat. 3906

A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-353 on 1938-06-25.

all 0 arguments · sorted by: best

0/280

no arguments yet — make the first case