[Federal Register Volume 71, Number 141 (Monday, July 24, 2006)]
[Rules and Regulations]
[Pages 41725-41727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-11738]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1250

[Docket No. PY-06-001]


Amendment to Egg Research and Promotion Rules and Regulations

AGENCY: Agricultural Marketing Service.

ACTION: Interim final rule with request for comments.

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SUMMARY: This action will amend the Egg Research and Promotion Rules 
and Regulations by changing the State composition of the six geographic 
areas on the American Egg Board. The Board approved this change and 
requested that the Secretary amend the Rules and Regulations 
accordingly. This adjustment is based on changing geographic trends in 
egg production and would become effective beginning with the 2007-08 
membership term.

DATES: Effective July 25, 2006. Comments must be received by August 23, 
2006.

ADDRESSES: Written comments are to be mailed to Angela C. Snyder, 
Chief, Research and Promotion, Poultry Programs, AMS, USDA, Stop 0256, 
1400 Independence Avenue, SW., Washington, DC 20090-6456; or by fax to 
(202) 720-5631. Alternatively, comments may be submitted electronically 
to: [email protected]. Comments may also be submitted 
electronically to: [email protected] or http://www.regulations.gov. 
State that your comments refer to Docket No. PY-06-001. Comments should 
be submitted in duplicate. Comments received may be inspected at this 
location between 8 a.m. and 4:30 p.m., Monday through Friday, except 
holidays. Comments received also will be made available over the 
Internet in the rulemaking section of the AMS Web site http://www.ams.usda.gov/rulemaking. A copy of this interim final rule may be 
found at: http://www.ams.usda.gov/poultry/regulations/rulemaking/index.htm.

FOR FURTHER INFORMATION CONTACT: Angela C. Snyder, (202) 720-5131.

SUPPLEMENTARY INFORMATION: The Egg Research and Promotion Order (Order) 
is issued under the Egg Research and Consumer Information Act (Act), as 
amended [7 U.S.C. 2701 et seq.].

Executive Order 12866

    The Office of Management and Budget has waived the review process 
required by Executive Order 12866 for this action.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have a 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 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 
there from. 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.

Regulatory Flexibility Act

    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.). The rule imposes no new burden on the industry but merely 
adjusts area distribution to reflect geographic shifts in production 
since the last review. In accordance with the provisions of the Act and 
section 1250.328 of the Order, the area grouping of the 48 contiguous 
States are to be reviewed by the Board at least every 5 years. Based on 
the latest review, the Board has recommended adjustment of area 
distribution to reflect sustained geographic shifts in egg production. 
Total United States table egg production was 76.98 billion in 2005, 
representing a 9% increase in exports and continued increases in 
domestic per capita consumption.
    There are approximately 260 egg producers required to pay 
assessments to the Board under the Act. The Act exempts producers 
owning less than 75,000 laying hens from paying assessments; therefore, 
the nation's smallest producers are exempt from the program. The Small 
Business Administration (SBA) [13 CFR 121.201] defines small 
agricultural producers as those having receipts of $750,000 or less 
annually and small agricultural service firms as those having receipts 
of $6.5 million or less annually. None of the 260 producers subject to 
the Act are believed to be categorized by the SBA as small agricultural 
producers.

Paperwork Reduction Act

    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

[[Page 41726]]

No. 0581-0093 under the Paperwork Reduction Act of 1980.

Background and Proposed Change

    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 1250.328(d) 
that any changes in representation on the American Egg Board be 
determined by the percentage of total U.S. egg production in each of 
the six geographic areas. The Board has 18 members, and representation 
in each of the 6 areas is based on egg production in the area. The 
Order further provides in section 1250.328(e) that the Board or 
designated person or agency shall conduct periodic reviews of 
production by geographic area at any time, not to exceed 5 years. This 
ensures that representation on the Board, insofar as is practicable, is 
fair and equal.
    During the development process of the Order in 1975, the 48 
contiguous States of the United States and the District of Columbia 
were divided into 6 geographic areas for purposes of determining 
proportionate representation on the Board. The areas corresponded with 
those used by the National Agriculture Statistics Service, USDA.
    The Order provides in section 1250.328(d) that Board membership in 
each area be determined by calculating the percentage of U.S. egg 
production in the area, multiplying that total by 18 (total Board 
membership), and rounding to the nearest whole number.
    For the 2003 review, the American Egg Board 2002 production data 
were reconciled with the 2002 data from USDA to verify the shifts in 
production trends. The review showed the South Atlantic, East North 
Central, West North Central, South Central, and Western areas are no 
longer equitably represented on the Board.
    Therefore, the Board submitted a recommendation to the Secretary in 
accordance with section 1250.328(e) of the Order to redistrict the six 
areas. The following changes will be made accordingly:

                            State Composition
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                Current                             Revisions
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                            I--North Atlantic
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Connecticut, Delaware, Maine, Maryland,  None.
 Massachusetts, New Hampshire, New
 Jersey, New York, Pennsylvania, Rhode
 Island, Vermont, Virginia, West
 Virginia, District of Columbia.
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                           II--South Atlantic
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Alabama, Florida, Georgia, Kentucky,     Add Arkansas, Louisiana,
 North Carolina, South Carolina,          Mississippi, Oklahoma; Remove
 Tennessee.                               Kentucky, Tennessee.
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                         III--East North Central
------------------------------------------------------------------------
Indiana, Michigan, Ohio................  Add Kentucky, Missouri,
                                          Tennessee; Remove Indiana.
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                         IV--West North Central
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Illinois, Iowa, Minnesota, Nebraska,     Add Colorado, Idaho, Indiana,
 North Dakota, South Dakota, Wisconsin.   Montana, Wyoming; Remove Iowa,
                                          Nebraska.
------------------------------------------------------------------------
                            V--South Central
------------------------------------------------------------------------
Arkansas, Colorado, Kansas, Louisiana,   Add Iowa, Nebraska; Remove
 Mississippi, Missouri, New Mexico,       Arkansas, Colorado, Louisiana,
 Oklahoma, Texas.                         Mississippi, Missouri, New
                                          Mexico, Oklahoma, Texas.
------------------------------------------------------------------------
                               VI--Western
------------------------------------------------------------------------
Arizona, California, Idaho, Montana,     Add New Mexico, Texas; Remove
 Nevada, Oregon, Utah, Washington,        Idaho, Montana, Wyoming.
 Wyoming.
------------------------------------------------------------------------

    The change is based on production in the redistricted areas and 
application of the formula in section 1250.328(d) of the Order that 
states that changes to the Board shall be accomplished by determining 
the percentage of United States egg production in each area times 18 
(total Board membership) and rounding to the nearest whole number, as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                    % of total
                Redistricted area                 Reported cases    % of total      production         Board
                                                                    production       times 18      membership\1\
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I--North Atlantic...............................      41,440,000           15.26            2.75               3
II--South Atlantic..............................      39,900,000           14.70            2.65               3
III--East North Central.........................      43,980,000           16.20            2.92               3
IV--West North Central..........................      47,670,000           17.56            3.16               3
V--South Central................................      50,100,000           18.45            3.32               3
VI--Western.....................................      48,400,000           17.83            3.21               3
    Total U.S. Production.......................     271,490,000             100           18.01              18
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\1\ Based on rounding to the nearest whole number [Sec.   1250.328(d)].


[[Page 41727]]

    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because the Board adjustment provided for in this interim final rule 
needs to be effective as soon as possible in order to complete 2007-
2008 Board appointments.

List of Subjects in 7 CFR Part 1250

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

0
For the reasons set forth in the preamble, Title 7, CFR part 1250 is 
amended as follows:

PART 1250--EGG RESEARCH AND PROMOTION

0
1. The authority citation for part 1250 continues to read as follows:

    Authority: 7 U.S.C. 2701-2718 and 7 U.S.C. 7401.


0
2. Section 1250.510 is revised to read as follows:


Sec.  1250.510  Determination of Board Membership.

    (a) Pursuant to Sec.  1250.328 (d) and (e) of the Order, the 48 
contiguous States of the United States shall be grouped into 6 
geographic areas, as follows: Area 1 (North Atlantic States)--
Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, 
New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, 
West Virginia, and the District of Columbia; Area 2 (South Atlantic 
States)--Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, 
North Carolina, Oklahoma, South Carolina; Area 3 (East North Central 
States)--Kentucky, Michigan, Missouri, Ohio, Tennessee; Area 4 (West 
North Central States)--Colorado, Idaho, Illinois, Indiana, Minnesota, 
Montana, North Dakota, South Dakota, Wisconsin, Wyoming; Area 5 (South 
Central States)--Iowa, Kansas, Nebraska; Area 6 (Western States)--
Arizona, California, Nevada, New Mexico, Oregon, Texas, Utah, and 
Washington.
    (b) Board representation among the 6 geographic areas is 
apportioned to reflect the percentages of United States egg production 
in each area times 18 (total Board membership). The distribution of 
members of the Board is:
    Area 1-3, Area 2-3, Area 3-3, Area 4-3, Area 5-3, and Area 6-3. 
Each member will have an alternate appointed from the same area.

    Dated: July 18, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-11738 Filed 7-21-06; 8:45 am]
BILLING CODE 3410-02-P