Amendments to Egg Research and Promotion Order

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