Amendments to Egg Research and Promotion Order

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1250

RIN 0581-AB13

[Docket No. PY-94-001]

Amendments to Egg Research and Promotion Order

AGENCY: Agricultural Marketing Service.

ACTION: Proposed Rule.

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SUMMARY: This proposed rule would amend 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 was enacted

December 14, 1993.

DATES: Comments must be received on or before May 23, 1994.

ADDRESSES: Written comments are to be mailed to Janice L. Lockard,

Chief, Standardization Branch, Poultry Division, AMS, USDA, Room 3944-

South, P.O. Box 96456, Washington, D.C. 20090-6456. Comments received

may be inspected at this location between 8 a.m. and 4:30 p.m., Monday

through Friday, except holidays. State that your comments refer to

Docket No. PY-94-001.

FOR FURTHER INFORMATION CONTACT: Janice L. Lockard, 202-720-3506.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778

The Department is issuing this proposed rule in conformance with

Executive Order 12866.

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. It is not intended to have 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 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 proposed 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 proposed action would eliminate 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 proposal would substantially reduce the regulatory

burden on handlers as well. Approximately 618 producers are paying

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 would exempt 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 would no longer be 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 proposed action should reduce, by approximately 70 percent,

the number of collecting handlers who would be required to file handler

reports on a monthly basis. Currently, there are approximately 399

collecting handlers under the research and promotion program. It is

estimated that 281 of these handlers would not be required to file

monthly handler reports. In addition, handlers would 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 would be 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, would exempt 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.

Public Law 103-188 provides that the amendments proposed herein 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.

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 proposed to be 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 section 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 section 1250.348, the introductory text is republished and

the first sentence of the introductory text of paragraph (a) 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: March 16, 1994.

Lon Hatamiya,

Administrator.

[FR Doc. 94-6591 Filed 3-21-94; 8:45 am]

BILLING CODE 3410-02-P