[Federal Register Volume 64, Number 144 (Wednesday, July 28, 1999)]
[Rules and Regulations]
[Pages 40736-40738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19290]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 57
[Docket No. PY-99-003]
Rules of Practice Governing Proceedings Under the Egg Products
Inspection Act
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is revising its
regulations governing the mandatory shell egg surveillance program to
add that the Administrator may enter into a stipulation, prior to the
issuance of a complaint, with any person to resolve violation cases
arising under the Egg Products Inspection Act (EPIA) or the
regulations, without resort to formal disciplinary proceedings. In
December 1998, regulations in 7 CFR part 59 administered by AMS were
redesignated as a new part 57. AMS is amending 7 CFR part 57 to add
regulations previously proposed to expedite the resolution of
violations under the shell egg surveillance program.
EFFECTIVE DATE: August 27, 1999.
FOR FURTHER INFORMATION CONTACT: Douglas C. Bailey, Chief,
Standardization Branch, 202/720-3506.
SUPPLEMENTARY INFORMATION: This rule has been determined to be not
significant for purposes of Executive Order 12866, and therefore, has
not been reviewed by the Office of Management and Budget (OMB). In
addition, pursuant to requirements set forth in the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601 et seq.), the AMS has considered
the economic impact of this rule on small entities and has determined
that its provisions would not have a significant economic impact on a
substantial number of small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
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businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. The Small Business
Administration (SBA) (13 CFR 121.601) defines small entities that
produce and process chicken eggs as those whose annual receipts are
less than $9,000,000. Approximately 550,000 egg laying hens are needed
to produce enough eggs to gross $9,000,000.
The Egg Products Inspection Act (EPIA) (21 U.S.C. 1031 et seq.),
enacted in 1970, authorizes the mandatory inspection of egg products
operations and the mandatory surveillance of the disposition of shell
eggs that are undesirable for human consumption. The EPIA regulations
require that shell egg handlers and hatcheries register with the United
States Department of Agriculture. The EPIA further authorizes
inspections at least once each calendar quarter of egg packers that
have 3,000 or more laying hens and pack eggs for the ultimate consumer.
There are about 700 shell egg processors registered with the Department
that have 3,000 or more laying hens. Of these 700 registered shell egg
processors, we believe approximately 500 meet the definition of a small
business.
The implementing regulations for the EPIA were originally contained
in 7 CFR part 59. Congress added provisions for imposing civil
penalties for certain EPIA violations as part of the Food, Agriculture,
Conservation and Trade Act Amendments of 1991. To implement these 1991
EPIA amendments, the AMS proposed changes to 7 CFR part 59. Before AMS
published a final rule, however, the Department consolidated food
safety issues into FSIS. Egg products inspection functions in the EPIA
were delegated to FSIS, while shell egg surveillance functions
continued to be administered by AMS. In August 1998, FSIS promulgated a
final rule to revise the regulations in 7 CFR part 59. In December
1998, those portions of part 59 pertinent to shell egg surveillance
were redesignated as a new part 57. AMS is now revising the regulations
in 7 CFR part 57 to set forth procedures for resolving compliance cases
with civil penalties as provided in the 1991 EPIA amendments.
These regulations provide that USDA's uniform rules of practice
will be applicable to formal administrative proceeding for civil
penalties. These regulations also set forth procedures for expediting
the resolution of violations before institution of formal
administrative proceeding under the shell egg surveillance program
through the use of stipulation agreements. Use of these procedures by
alleged violators is optional. These regulations impose no new
requirements on businesses.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule. There are no administrative procedures that must be exhausted
prior to any judicial challenge to the provisions of this rule.
Background
The Egg Products Inspection Act (EPIA) authorizes the mandatory
inspection of egg products operations and the mandatory surveillance of
the disposition of shell eggs that are undesirable for human
consumption. From its enactment in 1970, AMS administered the EPIA and
its regulations in 7 CFR part 59.
Congress amended the EPIA as part of the Food, Agriculture,
Conservation and Trade Act Amendments of 1991 (Pub. L. 102-237)
(hereafter referred to as ``the 1991 EPIA amendments''). The 1991 EPIA
amendments provided that civil penalties may be imposed for certain
violations of the mandatory inspection regulations. These amendments
become effective 12 months after promulgation of final regulations (21
U.S.C. 1034 note).
To implement the 1991 EPIA amendments, the AMS proposed changes to
7 CFR parts 56 and 59 (57 FR 48569, October 27, 1992). One proposed
change added that the Administrator may enter into a stipulation, prior
to the issuance of an administrative complaint, with any person to
resolve violation cases arising under the EPIA or the regulations,
without resorting to formal disciplinary proceedings. Before AMS
published a final rule, however, the Department consolidated food
safety issues into FSIS following enactment of the Federal Crop
Insurance Reform and Department of Agriculture Reorganization Act of
1994 (Pub. L. 103-354; 7 U.S.C. 2204e). This included delegating
responsibility for the EPIA egg products inspection functions to FSIS,
while the shell egg surveillance functions remained with AMS. FSIS
promulgated a final rule that implemented the 1991 EPIA amendments by
revising 7 CFR part 59 (63 FR 45663, August 27, 1998; effective August
27, 1999).
To complete the Department reorganization, other regulatory changes
have occurred to ensure that AMS and FSIS have the appropriate
regulations they need to carry out their responsibilities. The AMS
promulgated a final rule to duplicate and redesignate those portions of
7 CFR part 59 pertinent to shell egg inspection as a new 7 CFR part 57
(63 FR 69968, December 17, 1998; effective December 18, 1998). FSIS
promulgated a final rule to redesignate the remaining portions of 7 CFR
part 59 and transfer them to 9 CFR part 590 (63 FR 72351, December 31,
1998; effective December 31, 1998). AMS is now revising the regulations
in 7 CFR part 57 to provide for the settlement of cases where civil
penalties apply through a stipulation procedure, before instituting a
formal disciplinary proceeding.
Stipulation Procedure for Assessing Penalties
The amended EPIA includes provisions for imposing civil penalties
for certain violations of the mandatory inspection regulations. These
penalty provisions are applicable to the egg and egg products
inspection programs, with the exception of violations occurring in
official egg products plants and violations for which criminal
penalties have already been imposed. The Secretary of Agriculture has
the authority under the Act to impose civil penalties through formal
administrative proceedings. However, these regulations permit the AMS
Administrator, prior to initiating a formal administrative proceeding,
to enter into a written agreement or stipulation with a violator who
agrees to waive a hearing and pay a civil penalty.
Under these stipulation procedures, the AMS Administrator would
give the violator notice of the alleged violation and an opportunity
for a hearing. The violator would have the option to waive the hearing
and agree to pay a specified civil penalty within a prescribed period
of time. In turn, the Administrator would agree to accept the civil
penalty in settlement of the particular matter involved if the penalty
is paid within the specified time. If, however, the violator does not
pay the civil penalty within that period of time, the Department would
institute a formal administrative proceeding. A civil penalty offered
in a stipulation would have no bearing on the civil penalty that the
Department might seek in a formal administrative proceeding.
A formal disciplinary proceeding can take a relatively long period
of time to resolve, and can be costly for both the Department and the
violator. The Department is implementing the use of stipulation
agreements, where appropriate, to improve compliance with the EPIA.
Accordingly, AMS is amending the regulations by adding a
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subpart on stipulation procedures. This procedure would enable AMS to
better enforce the Act and regulations by expediting the resolution of
compliance cases.
List of Subjects in 7 CFR Part 57
Eggs and egg products, Exports, Food grades and standards, Food
labeling, Reporting and recordkeeping requirements.
For reasons set forth in the preamble, 7 CFR part 57 is amended as
follows:
PART 57--INSPECTION OF EGGS (EGG PRODUCTS INSPECTION ACT)
1. The authority citation for part 57 continues to read as follows:
Authority: 21 U.S.C. 1031-1056.
2. Sections 57.1 through 57.970 are designated as subpart A and the
heading of subpart A is added to read as follows:
Subpart A--Regulations Governing the Inspection of Eggs
* * * * *
3. A new subpart B is added to read as follows:
Subpart B--Rules of Practice Governing Proceedings Under the Egg
Products Inspection Act
Scope and Applicability of Rules of Practice
Sec. 57.1000 Administrative proceedings.
(a) The Uniform Rules of Practice for the Department of Agriculture
promulgated in subpart H of part 1, subtitle A, title 7, Code of
Federal Regulations, are the Rules of Practice applicable to
adjudicating administrative proceedings under section 12(c) of the Egg
Products Inspection Act (21 U.S.C. 1041).
(b) In addition to the proceedings set forth in paragraph (a) of
this section, the Administrator, in his discretion, at any time prior
to the issuance of a complaint seeking a civil penalty under the Act
may enter into a stipulation with any person, in accordance with the
following prescribed conditions:
(1) The Administrator gives notice of an apparent violation of the
Act or the regulations issued thereunder by such person and affords
such person an opportunity for a hearing regarding the matter as
provided by the Act;
(2) Such person expressly waives hearing and agrees to a specified
order including an agreement to pay a specified civil penalty within a
designated time; and
(3) The Administrator agrees to accept the specified civil penalty
in settlement of the particular matter involved if it is paid within
the designated time.
(4) If the specified penalty is not paid within the time designated
in such stipulation, the amount of the stipulated penalty shall not be
relevant in any respect to the penalty that may be assessed after the
institution of a formal administrative proceeding pursuant to the
Uniform Rules of Practice, Subpart H, Part 1, Title 7, Code of Federal
Regulations.
Dated: July 22, 1999.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 99-19290 Filed 7-27-99; 8:45 am]
BILLING CODE 3410-02-U