[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. ----------------------------------------------------------------------- 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