33534 Proposed Rules Federal Register Vol. 75, No. 113 Monday, June 14, 2010 This section of the FEDERAL REGISTER 6274, e-mail address: Agricultural Marketing Service has contains notices to the public of the proposed [email protected]. considered the economic impact of this issuance of rules and regulations. The action on small entities and has certified purpose of these notices is to give interested SUPPLEMENTARY INFORMATION: This final decision maintains the current fluid that this proposed rule will not have a persons an opportunity to participate in the significant economic impact on a rule making prior to the adoption of the final milk product definition’s compositional rules. standard of 6.5 percent nonfat milk substantial number of small entities. For solids and incorporates an equivalent the purpose of the Regulatory Flexibility 2.25 percent true milk protein criterion Act, a dairy farm is considered a ‘‘small DEPARTMENT OF AGRICULTURE for determining if a product meets the business’’ if it has an annual gross compositional standard. The decision revenue of less than $750,000, and a Agricultural Marketing Service also determines how milk and milk- dairy products manufacturer is a ‘‘small derived ingredients should be priced business’’ if it has fewer than 500 7 CFR Part 1000 under all Federal milk marketing orders employees. when used in products meeting the For the purposes of determining [Doc. No. AMS–DA–09–0062; AO–14–A73, et fluid milk product definition. The which dairy farms are ‘‘small al.; DA–03–10] decision exempts drinkable yogurt businesses,’’ the $750,000 per year products containing at least 20 percent criterion was used to establish a Milk in the Northeast and Other yogurt (by weight), kefir, infant production guideline of 500,000 pounds Marketing Areas; Final Decision on formulas, dietary products (meal per month. Although this guideline does Proposed Amendments to Marketing replacements) and other products that not factor in additional monies that may Agreements and Orders may contain milk-derived ingredients be received by dairy producers, it from the fluid milk product definition. should be an inclusive standard for AGENCY: Agricultural Marketing Service, most ‘‘small’’ dairy farmers. For USDA. This administrative action is governed by the provisions of Sections 556 and purposes of determining a handler’s ACTION: Proposed rule. 557 of Title 5 of the United States Code size, if the plant is part of a larger and, therefore, is excluded from the company operating multiple plants that SUMMARY: This final decision maintains requirements of Executive Order 12866. collectively exceed the 500-employee the current fluid milk product The proposed amendments to the rules limit, the plant will be considered a definition’s compositional standard of herein have been reviewed under large business even if the local plant has 6.5 percent nonfat milk solids criterion Executive Order 12988, Civil Justice fewer than 500 employees. and incorporates an equivalent 2.25 Reform. They are not intended to have For the month of June 2005, the percent true milk protein criterion for a retroactive effect. The Agricultural month the hearing was held, 52,425 determining if a product meets the Marketing Agreement Act of 1937 (Act), dairy farmers were pooled on the compositional standard. The decision as amended (7 U.S.C. 604–674), Federal order system. Of the total, also determines how milk and milk- provides that administrative 49,160, or 94 percent were considered derived ingredients should be priced proceedings must be exhausted before small businesses. During the same under all Federal milk marketing orders parties may file suit in court. Under month, 1,530 plants were regulated by when used in products meeting the Section 608c(15)(A) of the Act, any or reported their milk receipts to their fluid milk product definition. The handler subject to an order may request respective Market Administrator. Of the decision provides exemptions for modification or exemption from such total, 847, or 55 percent were drinkable yogurt products containing at order by filing with the Department a considered small businesses. least 20 percent yogurt (by weight), petition stating that the order, any The fluid milk product definition sets kefir, and products intended to be meal provision of the order, or any obligation out the criteria for determining if the replacements from the fluid milk imposed in connection with the order is use of producer milk and milk-derived product definition. The orders as not in accordance with the law. A ingredients in such products should be amended are subject to producer handler is afforded the opportunity for priced at the Class I price. The approval by referendum before they can a hearing on the petition. After a established criteria for the classification be implemented. hearing, the Department would rule on of producer milk are applied in an FOR FURTHER INFORMATION CONTACT: the petition. The Act provides that the identical fashion to both large and small Henry H. Schaefer, Economist, USDA/ district court of the United States in any businesses and will not have any AMS/Dairy Programs, Upper Midwest district in which the handler is a different impact on those businesses Milk Market Administrators Office, habitant, or has its principal place of producing fluid milk products thus Suite 200, 1600 West 82nd Street, business, has jurisdiction in equity to assuring that similarly situated handlers Minneapolis, Minnesota 55431–1420, review the USDA’s ruling on the have the same minimum price as (952) 831–5292, e-mail address: petition, provided a bill in equity is required by Section 608(c)5 of the Act. [email protected]; or William filed not later than 20 days after the date Therefore, the amendments will not Francis, Associate Deputy of the entry of the ruling. have a significant economic impact on Administrator, USDA/AMS/Dairy a substantial number of small entities. Programs, Order Formulation and Regulatory Flexibility Act and The impact of the proposed Enforcement, Stop 0231–Room 2971–S, Paperwork Reduction Act amendments on large and small entities 1400 Independence Avenue, SW., In accordance with the Regulatory would be negligible. In fact, the Washington, DC 20250–0231, (202) 720– Flexibility Act (5 U.S.C. 601 et seq.), the amendment proposing to change the VerDate Mar<15>2010 14:20 Jun 11, 2010 Jkt 220001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\14JNP1.SGM 14JNP1 wwoods2 on DSK1DXX6B1PROD with PROPOSALS_PART 1 Federal Register / Vol. 75, No. 113 / Monday, June 14, 2010 / Proposed Rules 33535 classification of kefir and drinkable pursuant to the provisions of the further reference to these proposals will yogurt is estimated to affect blend prices Agricultural Marketing Agreement Act be made. by no more than $ 0.0026 per cwt based of 1937 (AMAA), as amended (7 U.S.C. A proposal published in the hearing on record evidence. 601–674), and the applicable rules of notice as Proposal 2, offered by Dairy The Agricultural Marketing Service is practice and procedure governing the Farmers of America, Inc. (DFA), seeks to committed to complying with the E- formulation of marketing agreements amend the fluid milk product definition Government Act to promote the use of and marketing orders (7 CFR Part 900). to include any dairy ingredient, the Internet and other information The proposed amendments set forth including whey, when calculating the technologies to provide increased below are based on the record of a milk contained in a product on a opportunities for citizen access to public hearing held in Pittsburgh, protein-equivalent or nonfat solids Government information and services, Pennsylvania, on June 20–23, 2005, equivalent basis. DFA is a dairy farmer- and for other purposes. pursuant to a notice of hearing issued member owned cooperative and at the A review of reporting requirements April 6, 2005 and published April 12, time of the hearing had 12,800 member was completed under the Paperwork 2005 (70 FR 19012); and a farms located in 49 states whose Reduction Act of 1995 (44 U.S.C. recommended decision issued May 12, members’ milk is pooled throughout the Chapter 35). It was determined that 2006 and published May 17, 2006 (71 Federal order system. these amendments would have no FR 28590). H.P. Hood LLC (H.P. Hood) owns and impact on reporting, recordkeeping, or The material issues on the record of operates milk processing and other compliance requirements because the hearing relate to: manufacturing plants in the Eastern and they would remain identical to the 1. Amending the fluid milk product Midwest United States and is the current requirements. No new forms are definition. proponent of a proposal published in proposed and no additional reporting Findings and Conclusions the hearing notice as Proposal 5 that requirements are necessary. was modified at the hearing. As This notice does not require This final decision maintains the modified, Proposal 5 seeks to amend the additional information collection that current fluid milk product definition’s fluid milk product definition to include needs clearance by the Office of compositional standard of 6.5 percent any product that, based upon Management and Budget (OMB) beyond nonfat milk solids and incorporates an substantial evidence as determined by currently approved information equivalent 2.25 percent true milk the Department, directly competes with collection. The primary sources of data protein criterion for determining other fluid milk products and that the used to complete the forms are routinely whether a product meets the Department must make a written used in most business transactions. The compositional standard. The decision determination before any product can be forms require only a minimal amount of also determines how milk and milk- classified as a fluid milk product.