[Federal Register Volume 59, Number 55 (Tuesday, March 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6591]


[[Page Unknown]]

[Federal Register: March 22, 1994]


                                                    VOL. 59, NO. 55

                                            Tuesday, March 22, 1994
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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1250

RIN 0581-AB13
[Docket No. PY-94-001]

 

Amendments to Egg Research and Promotion Order

AGENCY: Agricultural Marketing Service.

ACTION: Proposed Rule.

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SUMMARY: This proposed rule would amend the Egg Research and Promotion 
Order to exempt certain producers from the provisions of the Egg 
Research and Consumer Information Act and to provide for certain 
funding of research projects. The changes are required by amendments to 
the Egg Research and Consumer Information Act, which was enacted 
December 14, 1993.

DATES: Comments must be received on or before May 23, 1994.

ADDRESSES: Written comments are to be mailed to Janice L. Lockard, 
Chief, Standardization Branch, Poultry Division, AMS, USDA, Room 3944-
South, P.O. Box 96456, Washington, D.C. 20090-6456. Comments received 
may be inspected at this location between 8 a.m. and 4:30 p.m., Monday 
through Friday, except holidays. State that your comments refer to 
Docket No. PY-94-001.

FOR FURTHER INFORMATION CONTACT: Janice L. Lockard, 202-720-3506.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778

    The Department is issuing this proposed rule in conformance with 
Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. It is not intended to have retroactive effect. 
This rule would not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 14 of the Act, a 
person subject to an order may file a petition with the Secretary 
stating that such order, any provisions of such order or any 
obligations imposed in connection with such order are not in accordance 
with law; and requesting a modification of the order or an exemption 
therefrom. Such person is afforded the opportunity for a hearing on the 
petition. After a hearing, the Secretary would rule on the petition. 
The Act provides that the district court of the United States in any 
district in which such person is an inhabitant, or has his principal 
place of business, has jurisdiction to review the Secretary's ruling on 
the petition, if a complaint is filed within 20 days after date of the 
entry of the ruling.

Effect on Small Entities

    The Administrator of the Agricultural Marketing Service has 
determined that this proposed rule 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 et seq.).
    This proposed action would eliminate virtually all of the 
regulatory requirements under the egg research and promotion program on 
a major share of the egg producers currently subject to those 
requirements and who certify their eligibility for the statutory 
exemption. The proposal would substantially reduce the regulatory 
burden on handlers as well. Approximately 618 producers are paying 
assessments to the American Egg Board (AEB) at the rate of 5 cents per 
30-dozen case of commercial eggs marketed or the equivalent thereof. 
This action would exempt an estimated 253 small egg producers who own 
75,000 or fewer laying hens from requirements of the egg research and 
promotion program. These producers would no longer be required to pay 
the assessment of 5 cents per 30-dozen case of commercial eggs.

Paperwork Reduction

    Information collection requirements and recordkeeping provisions 
contained in 7 CFR part 1250 have been previously approved by the 
Office of Management and Budget and assigned OMB Control No. 0581-0093 
under the Paperwork Reduction Act of 1980.
    This proposed action should reduce, by approximately 70 percent, 
the number of collecting handlers who would be required to file handler 
reports on a monthly basis. Currently, there are approximately 399 
collecting handlers under the research and promotion program. It is 
estimated that 281 of these handlers would not be required to file 
monthly handler reports. In addition, handlers would not have to 
include production from exempted flocks in their monthly handler 
reports. The 253 small egg producers who own 75,000 or fewer laying 
hens would be required to file, through their handlers, an annual 
certification of exemption.

Background and Proposed Changes

    The Egg Research and Promotion Order (7 CFR 1250.301-1250.363) 
established pursuant to the Egg Research and Consumer Information Act, 
as amended (7 U.S.C. 2701 et seq.), provides in section 1250.348 that 
the following are to be exempt from paying assessments: ``(a) Any egg 
producer whose aggregate number of laying hens at any time during a 3-
consecutive-month period immediately prior to the date assessments are 
due and payable has not exceeded 30,000 laying hens, and (b) Any 
producer owning a flock of breeding hens whose production of eggs is 
primarily utilized for the hatching of baby chicks.'' Currently there 
are 579 producers who come under the 30,000-laying-hen exemption. 
Section 12(a)(1) of the Act (7 U.S.C. 2711) was amended December 14, 
1993 (Pub. L. 103-188), to exempt those producers whose aggregate 
number of laying hens at any given time during a 3-consecutive month 
period immediately prior to the date assessments are due and payable 
has not exceeded 75,000 laying hens.
    According to statistics of AEB, 253 producers owning 75,000 or 
fewer laying hens currently pay mandatory assessments at 5 cents per 
30-dozen case of commercial eggs or the equivalent thereof to finance 
research, promotion, and education activities. Although producers in 
this category represent 41 percent of the total producers covered by 
the Act, they represent only 4 percent of the total assessment income 
collected by AEB. Exempting producers owning 75,000 or fewer laying 
hens, therefore, would exempt a number of smaller producers without 
adversely impacting the capability of AEB to carry out the programs 
authorized under the Act.
    Section 8(d) of the Act (7 U.S.C. 2707) was also amended (Pub. L. 
103-188) to require that AEB, to the maximum extent practicable, 
allocate a proportion of funds for research projects in the 1994 and 
subsequent fiscal year budgets that is comparable to the amount 
appropriated for research projects in the 1993 fiscal year budget.
    Public Law 103-188 provides that the amendments proposed herein to 
the Order shall be issued after public notice and opportunity for 
comment in accordance with 5 U.S.C. 553 and without regard to 5 U.S.C. 
556 and 557 and shall be not be subject to a referendum.

List of Subjects in 7 CFR Part 1250

    Administrative practice and procedure, Advertising, Agricultural 
research, Eggs and egg products, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, Title 7, CFR Part 1250 
is proposed to be amended as follows:

PART 1250--EGG RESEARCH AND PROMOTION

    1. The authority citation of Part 1250 continues to read as 
follows:

    Authority: Pub. L. 93-428, 88 Stat. 1171, as amended, 7 U.S.C. 
2701-2718.

    2. In section 1250.336, paragraph (c) is revised to read as 
follows:


Sec. 1250.336  Duties.

* * * * *
    (c) To prepare and submit to the Secretary for his approval budgets 
on a fiscal-period basis of its anticipated expenses and disbursements 
in the administration of this subpart, including probable cost of plans 
and projects as estimated in the budget or budgets submitted to it by 
prospective contractors, with the Board's recommendations with respect 
thereto. In preparing a budget for each of the 1994 and subsequent 
fiscal years, the Board shall, to the maximum extent practicable, 
allocate a proportion of funds for research projects comparable to the 
proportion of funds allocated for research projects in the Board's 
fiscal year 1993 budget.
* * * * *
    3. In section 1250.348, the introductory text is republished and 
the first sentence of the introductory text of paragraph (a) is revised 
to read as follows:


Sec. 1250.348  Exemptions. 
    The following shall be exempt from the specific provisions of the 
Act:
    (a) Any egg producer whose aggregate number of laying hens at any 
time during a 3-consecutive-month period immediately prior to the date 
assessments are due and payable has not exceeded 75,000 laying hens. * 
* *
* * * * * 
    Dated: March 16, 1994. 
Lon Hatamiya, 
Administrator. 
[FR Doc. 94-6591 Filed 3-21-94; 8:45 am]
BILLING CODE 3410-02-P