To amend the Dairy Production Stabilization Act of 1983 to ensure that all persons who benefit from the dairy promotion and research program contribute to the cost of the program, and for other purposes.

To amend the Dairy Production Stabilization Act of 1983 to ensure that all persons who benefit from the dairy promotion and research program contribute to the cost of the program, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Dairy Promotion Fairness Act'.

SEC. 2. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

(a) DECLARATION OF POLICY- Section 110(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501(b)) is amended--

(1) in the first sentence--

(A) by inserting after `commercial use' the following: `and on imported dairy products'; and

(B) by striking `products produced in the United States.' and inserting `products.'; and

(2) in the second sentence, by inserting after `produce milk' the following: `or the right of any person to import dairy products'.

(b) DEFINITIONS- Section 111 of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is amended--

(1) in subsection (k), by striking `and' at the end;

(2) in subsection (l), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following:

`(m) the term `imported dairy product' means any dairy product that is imported into the United States, including dairy products imported into the United States in the form of--

`(1) milk, cream, and fresh and dried dairy products;

`(2) butter and butterfat mixtures;

`(3) cheese; and

`(4) casein and mixtures;

`(n) the term `importer' means a person that imports an imported dairy product into the United States; and

`(o) the term `Customs' means the United States Customs Service.'.

(c) REPRESENTATION OF IMPORTERS ON BOARD- Section 113(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(b)) is amended--

(1) by inserting `NATIONAL DAIRY PROMOTION AND RESEARCH BOARD- ' after `(b)';

(2) by designating the first through ninth sentences as paragraphs (1) through (5) and paragraphs (7) through (10), respectively, and indenting the paragraphs appropriately;

(3) in paragraph (2) (as so designated), by striking `Members' and inserting `Except as provided in paragraph (6), the members'; and

(4) by inserting after paragraph (5) (as so designated) the following:

`(6) IMPORTERS-

`(A) REPRESENTATION- The Secretary shall appoint not more than 2 members who represent importers of dairy products and are subject to assessments under the order, to reflect the proportion of domestic production and imports supplying the United States market, which shall be based on the Secretary's determination of the average volume of domestic production of dairy products proportionate to the average volume of imports of dairy products in the United States over the previous three years.

`(B) ADDITIONAL MEMBERS; NOMINATIONS- The members appointed under this paragraph--

`(i) shall be in addition to the total number of members appointed under paragraph (2); and

`(ii) shall be appointed from nominations submitted by importers under such procedures as the Secretary determines to be appropriate.'.

(d) IMPORTER ASSESSMENT- Section 113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended--

(1) by inserting `ASSESSMENTS- ' after `(g)';

(2) by designating the first through fifth sentences as paragraphs (1) through (5), respectively, and indenting appropriately; and

(3) by adding at the end the following:

`(6) IMPORTERS-

`(A) IN GENERAL- The order shall provide that each importer of imported dairy products shall pay an assessment to the Board in the manner prescribed by the order.

`(B) TIME FOR PAYMENT- The assessment on imported dairy products shall be paid by the importer to Customs at the time of the entry of the products into the United States and shall be remitted by Customs to the Board. For purposes of this subparagraph, entry of the products into the United States shall be deemed to have occurred when the products are released from custody of Customs and introduced into the stream of commerce within the United States. Importers include persons who hold title to foreign-produced dairy products immediately upon release by Customs, as well as persons who act on behalf of others, as agents, brokers, or consignees, to secure the release of dairy products from Customs and the introduction of the released dairy products into the stream of commerce.

`(C) RATE- The rate of assessment on imported dairy products shall be determined in the same manner as the rate of assessment per hundredweight or the equivalent of milk.

`(D) VALUE OF PRODUCTS- For the purpose of determining the assessment on imported dairy products under subparagraph (C), the value to be placed on imported dairy products shall be established by the Secretary in a fair and equitable manner.

`(E) USE OF ASSESSMENTS ON IMPORTED DAIRY- Assessments collected on imported dairy products shall not be used for foreign market promotion.'.

(e) RECORDS- Section 113(k) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(k)) is amended in the first sentence by striking `person receiving' and inserting `importer of imported dairy products, each person receiving'.

(f) IMPORTER ELIGIBILITY TO VOTE IN REFERENDUM- Section 116(b) of the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4507(b)) is amended--

(1) in the first sentence--

(A) by inserting after `of producers' the following: `and importers'; and

(B) by inserting after `the producers' the following: `and importers'; and

(2) in the second sentence, by inserting after `commercial use' the following: `and importers voting in the referendum (who have been engaged in the importation of dairy products during the same representative period, as determined by the Secretary).'.