[Federal Register Volume 71, Number 48 (Monday, March 13, 2006)]
[Rules and Regulations]
[Pages 12613-12614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-2366]



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 Rules and Regulations
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  Federal Register / Vol. 71, No. 48 / Monday, March 13, 2006 / Rules 
and Regulations  

[[Page 12613]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 56 and 57

[Docket No. PY-05-003]
RIN 0581-AC47


Update and Clarify a Shell Egg Grading Definition

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service is amending the regulations 
governing the voluntary shell egg grading program and the regulations 
governing the inspection of eggs. The revision will revise the 
definition of washed ungraded eggs in each of the regulations. From 
time to time, sections in the regulations are affected by changes in 
egg production and processing technology. This rule updates the 
regulations to reflect these changes.

DATES: Effective Date: April 12, 2006.

FOR FURTHER INFORMATION CONTACT: Charles L. Johnson, Chief, Grading 
Branch, (202) 720-3271.

SUPPLEMENTARY INFORMATION:

Background and Proposed Changes

    AMS administers a voluntary grading program for shell eggs under 
the Agricultural Marketing Act of 1946, as amended (AMA) (7 U.S.C. 1621 
et seq.). Any interested party that applies for service must comply 
with the terms and conditions of the regulations and must pay for the 
services rendered. AMS graders monitor processing operations and verify 
the grade and size of eggs packed into packages bearing the USDA 
grademark. Regulations governing this program are contained in 7 CFR 
part 56.
    AMS also administers a mandatory inspection program for shell eggs 
under the Egg Products Inspection Act (EPIA) (21 U.S.C. 1031 et seq.). 
This inspection program ensures that shell eggs sold to consumers 
contain no more restricted eggs than are permitted in the standards for 
consumer grades. Regulations governing this program are contained in 7 
CFR part 57.
    The Agency routinely reviews its regulations to ensure that they 
are current and up-to-date. The latest review of 7 CFR part 56 and 7 
CFR part 57 identified the following changes that are needed to bring 
the regulations up-to-date with current egg production and processing 
technology.

Washed Ungraded Eggs

    The Agency will clarify the definition of washed ungraded eggs that 
appears in both regulations. The definitions currently state that 
washed ungraded eggs mean ``* * * eggs which have been washed but not 
sized or segregated for quality.'' The revised definitions will state 
that washed ungraded eggs mean ``eggs which have been washed and that 
are either sized or unsized, but not segregated for quality.''

Proposed Rule and Comments

    The proposed rule was published in Federal Register on September 
26, 2005 (70 FR 56139). The comment period ended November 25, 2005.
    We received two comments: one from a shell egg producer and one 
from an unidentified commenter. The shell egg producer supported the 
proposed amendment. The Agency did not address the second comment 
because it was outside the scope of this rulemaking.

Executive Order 12866 and Effect on Small Entities

    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.), AMS has considered the economic impact of the 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 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. The Small Business 
Administration (SBA) (13 CFR 121.201) defines small entities that 
produce and process chicken eggs as those whose annual receipts are 
less than $9,000,000. Approximately 625,000 egg laying hens are needed 
to produce enough eggs to gross $9,000,000.
    Currently, the AMA authorizes a voluntary grading program for shell 
eggs. Shell egg processors that apply for service must pay for the 
services rendered. Shell egg processors are entitled to pack their eggs 
in packages bearing the USDA grade shield when AMS graders are present 
to certify that the eggs meet the grade requirements as labeled. Plants 
in which these grading services are performed are called official 
plants. Shell egg processors who do not use USDA's grading service may 
not use the USDA grademark. There are about 540 shell egg processors 
registered with the Department that have 3,000 or more laying hens. Of 
these, 161 are official plants that use USDA's grading service and 
would be subject to this proposed rule. Of these 161 official plants, 
38 meet the small business definition.
    The 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, with implementing 
regulations in 7 CFR part 57. All of the approximate 540 shell egg 
processors registered with the Department are required to comply with 
the labeling provisions of the EPIA and would be subject to this 
proposed rule. Of these 540 shell egg processors, 313 meet the small 
business definition.
    This amendment will not have an adverse economic impact on 
processors. It will revise the AMA and the EPIA regulations by up-
dating the definition of washed ungraded eggs to reflect current egg 
production and processing technology.
    For the above reasons, the Agency has certified that this action 
will not have a significant economic impact on a substantial number of 
small entities.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they

[[Page 12614]]

present an irreconcilable conflict with this rule. There are no 
administrative procedures which must be exhausted prior to any judicial 
challenge to the provisions of this rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.) the Office of Management and Budget (OMB) has approved 
the information collection and recordkeeping requirements included in 
this proposed rule, and there are no new requirements. The assigned OMB 
control number is 0581-0128.
    AMS is committed to compliance with the Government Paperwork 
Elimination Act, which requires Government agencies in general to 
provide the public the option of submitting information or transacting 
business electronically to the maximum extent possible.

List of Subjects

7 CFR Part 56

    Eggs and egg products, Food grades and standards, Food labeling, 
Reporting and recordkeeping requirements.

7 CFR Part 57

    Eggs and egg products, Exports, Food grades and standards, Food 
labeling, Imports, Reporting and recordkeeping requirements.


0
For reasons set forth in the preamble, 7 CFR parts 56 and 57 are 
amended as follows:

PART 56--VOLUNTARY GRADING OF SHELL EGGS

0
1. The authority citation for part 56 continues to read as follows:

    Authority: 7 U.S.C. 1621-1627.


0
2. In Sec.  56.1, revise the term Washed ungraded eggs to read as 
follows:


Sec.  56.1  Meaning of words and terms defined.

* * * * *
    Washed ungraded eggs means eggs which have been washed and that are 
either sized or unsized, but not segregated for quality.

PART 57--INSPECTION OF EGGS (EGGS PRODUCTS INSPECTION ACT)

0
3. The authority citation for part 57 continues to read as follows:

    Authority: 21 U.S.C. 1031-1056.


0
4. In Sec.  57.1, revise the term Washed ungraded eggs to read as 
follows:


Sec.  57.1  Definitions.

* * * * *
    Washed ungraded eggs means eggs which have been washed and that are 
either sized or unsized, but not segregated for quality.

    Dated: March 8, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-2366 Filed 3-10-06; 8:45 am]
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