To amend the Agricultural Adjustment Act to terminate Federal milk marketing orders and to replace such orders with a program to verify receipts of milk. (Introduced in the House)

HR 2324 IH

106th CONGRESS

1st Session

H. R. 2324

To amend the Agricultural Adjustment Act to terminate Federal milk marketing orders and to replace such orders with a program to verify receipts of milk.

IN THE HOUSE OF REPRESENTATIVES

June 23, 1999

Mr. OBEY introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To amend the Agricultural Adjustment Act to terminate Federal milk marketing orders and to replace such orders with a program to verify receipts of milk.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. TERMINATION OF MILK MARKETING ORDERS.

(a) TERMINATION- Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking paragraphs (5) and (18) relating to milk and its products.

(b) PROHIBITION ON SUBSEQUENT ORDERS REGARDING MILK- Paragraph (2) of such section is amended--

(1) by striking `Milk, fruits' and inserting `Fruits'; and

(2) by inserting `milk,' after `honey,' in subparagraph (B).

(c) CONFORMING AMENDMENTS- (1) Section 2(3) of such Act (7 U.S.C. 602(3) is amended by striking `, other than milk and its products,'.

(2) Section 8c of such Act (7 U.S.C. 608c) is amended--

(A) in paragraph (6), by striking `, other than milk and its products,';

(B) in paragraph (7)(B), by striking `(except for milk and cream to be sold for consumption in fluid form)';

(D) in paragraph (13)(A), by striking `, except to a retailer in his capacity as a retailer of milk and its products'; and

(E) in paragraph (17), by striking the second proviso, which relates to milk orders.

(3) Section 8d(2) of such Act (7 U.S.C. 608d(2)) is amended by striking the second sentence, which relates to information from milk handlers.

(4) Section 10(b)(2) of such Act (7 U.S.C. 610(b)) is amended--

(A) by striking clause (i);

(B) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and

(5) Section 11 of such Act (7 U.S.C. 611) is amended by striking `and milk, and its products,'.

(6) Section 715 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1994 (Public Law 103-111; 107 Stat. 1079; 7 U.S.C. 608d note), is amended by striking the third proviso, which relates to information from milk handlers.

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SEC. 2. PROGRAM TO VERIFY RECEIPTS OF MILK.

(a) PROGRAM REQUIRED- The Secretary of Agriculture shall establish a program through which the verification of receipts of all cow's milk marketed in the 48 contiguous States and the auditing of marketing agreements with respect to receipts of such milk may be accomplished.

(b) MARKET SERVICES- The program shall provide a means by which (1) market statistics and information are collected and provided to producers, handlers, and consumers, (2) the weighing, sampling, and testing of milk purchased from producers is accomplished and verified, (3) authorized deductions from payments to producers, including assessments for research and promotion programs, are collected, (4) assurance of proper payment by handlers for milk purchased is achieved, and (5) the reports, records, and facilities of handlers are reviewed and inspected to assure their accuracy. However, this subsection shall not apply to producers for whom such market services are being rendered by a cooperative marketing association qualified under the provisions of the Act of February 18, 1922 (7 U.S.C. 291-292; commonly known as the Co-operative Marketing Associations Act).

(c) REPORTING REQUIREMENTS- The program shall provide for the filing of reports by handlers of milk and milk products, and the publication of statistics by the Secretary, with respect to receipts of milk, prices paid for milk, and the purposes for which milk was used by handlers.

(d) ADMINISTRATIVE ASSESSMENT- The program shall provide for an assessment on handlers, based on relative volume of receipts of milk, for expenses related to the administration of the program, and for a deduction from producer payments by handlers, based on relative marketings of milk, for expenses related to market services provided under the program by the Secretary or a cooperative marketing association. The total revenue from such assessments and deductions shall not exceed the total cost of providing those services.

(e) MARKETING AGREEMENTS- Producers or associations of producers, including cooperative marketing associations qualified under the provisions of the Act of February 18, 1922 (7 U.S.C. 291-292; commonly known as the Co-operative Marketing Associations Act), may negotiate and enter into marketing agreements or other private contracts with handlers for the marketing and receipt of milk. Upon the request of either or both of the parties, the Secretary may perform an audit of the agreement or contract to assure compliance with its terms, except that the Secretary shall be reimbursed for any costs associated with the audit in the manner provided in the agreement or contract. If there is no provision for the reimbursement of the Secretary in the agreement or contract, the party or parties requesting the audit shall provide such reimbursement.

(f) PROHIBITION ON MARKETING LIMITATIONS- No marketing agreement or Government order or regulation applicable to milk and its products in any marketing area or jurisdiction shall prohibit or in any manner limit the marketing in that area of any milk or product of milk produced in any production area in the United States.

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