[Federal Register Volume 59, Number 146 (Monday, August 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18600]


  Federal Register / Vol. 59, No. 146 / Monday, August 1, 1994 /
  
[[Page Unknown]]

[Federal Register: August 1, 1994]


                                                   VOL. 59, NO. 146

                                             Monday, August 1, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1250

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

 

Amendments to Egg Research and Promotion Order

AGENCY: Agricultural Marketing Service.

ACTION: Final rule.

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SUMMARY: This rule amends 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 were enacted December 14, 1993.

EFFECTIVE DATE: August 1, 1994.

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

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778

    This rule is exempt from Executive Order 12866 review.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. It is not intended to have retroactive effect. This 
rule does 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 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 action eliminates 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 action substantially 
reduces the regulatory burden on handlers as well. Approximately 618 
producers pay 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 exempts 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 are no longer 
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 action should reduce, by approximately 70 percent, the number 
of collecting handlers required to file handler reports on a monthly 
basis. Currently, there are approximately 399 collecting handlers under 
the research and promotion program. An estimated 281 of these handlers 
are no longer required to file monthly handler reports. In addition, 
handlers do 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 are 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, exempts 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.

Comments

    Public Law 103-188 provides that these amendments 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.
    A proposed rule was published in the Federal Register (59 FR 13460) 
on March 22, 1994. Comments on the proposed rule were solicited from 
interested parties until May 23, 1994. One comment was received in 
support of the amendments from a trade association.
    After consideration of all relevant matters, including the proposal 
set forth in the notice of proposed rulemaking, it is found that the 
amendments hereinafter set forth will tend to effectuate the declared 
policy of the Act.
    Pursuant to 5 U.S.C. 553, it is further found that good cause 
exists for not postponing the effective date of this action until 30 
days after publication in the Federal Register because: (1) The 
provisions of this final rule are the same as those published on March 
22, 1994; (2) interested persons were afforded a 60-day comment period 
to submit written comments, and one comment in support of the 
amenndments was received; and (3) this action will relieve 
approximately 253 producers from the regulatory provisions of the Act 
and Order under conditions prescribed by the Secretary.

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 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 Sec. 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 Sec. 1250.348, the introductory text is republished and the 
first sentence of paragraph (a) introductory text 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: July 26, 1994.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Inspection Services.
[FR Doc. 94-18600 Filed 7-29-94; 8:45 am]
BILLING CODE 3410-02-P