To ensure regulatory equity between and among all dairy farmers and handlers, including producers also acting as handlers, for sales of packaged fluid milk into certain non-federally regulated milk marketing areas from federally regulated areas and to apply minimum milk price requirements to certain handlers of Class I milk products in the Arizona-Las Vegas marketing area under certain circumstances.

To ensure regulatory equity between and among all dairy farmers and handlers, including producers also acting as handlers, for sales of packaged fluid milk into certain non-federally regulated milk marketing areas from federally regulated areas and to apply minimum milk price requirements to certain handlers of Class I milk products in the Arizona-Las Vegas marketing area under certain circumstances.

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 `Milk Regulatory Equity Act of 2003'.

SEC. 2. MINIMUM MILK PRICES FOR HANDLERS UNDER FEDERAL MILK MARKETING ORDERS.

(a) APPLICATION OF MINIMUM PRICE REQUIREMENTS- A milk handler described in subsection (b) shall be subject to all of the minimum and uniform price requirements of the Federal milk marketing order issued under section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, applicable to the county in which the plant of the handler is located, at Federal order class prices, if the handler has packaged fluid milk product route dispositions, or sales of packaged fluid milk products to other plants, in a marketing area located in a State that requires handlers to pay minimum prices for raw milk purchases.

(b) COVERED MILK HANDLERS- Except as provided in subsection (c), subsection (a) applies to a handler of Class I milk products (including a producer-handler or producer operating as a handler)--

(1) whose plant is located within the boundaries of a Federal order milk marketing area (as those boundaries are in effect as of the date of the enactment of this Act);

(2) that has packaged fluid milk product route dispositions, or sales of packaged fluid milk products to other plants, in a milk marketing area located in a State that requires handlers to pay minimum prices for raw milk purchases; and

(3) that is not otherwise obligated by a Federal milk marketing order, or a regulated milk pricing plan operated by a State, to pay minimum class prices for the raw milk represented by those milk dispositions or sales.

(c) CERTAIN HANDLERS EXEMPTED- Subsection (a) does not apply--

(1) to a handler (otherwise described in subsection (b)) that operates an exempt plant, as defined in section 1000.8(e) of title 7, Code of Federal Regulations (as in effect on the date of the enactment of this Act); or

(2) a producer-handler (otherwise described in subsection (b)) for any month during which the producer-handler has route dispositions, and sales to other plants, of packaged fluid milk products equaling less than 6,000,000 pounds of milk.

(d) EFFECTIVE DATE AND IMPLEMENTATION- Subsection (a) shall take effect on the first day of the first month beginning more than 15 days after the date of the enactment of this Act. To accomplish this expedited implementation schedule, effective on the date of the enactment of this Act, the Secretary of Agriculture shall include in the pool distributing plant provision of each Federal milk marketing order issued under section 8c(5)(B) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)(B)), reenacted with amendments by the Agricultural Marketing Agreement of 1937, language to ensure that a handler described in subsection (b) will be fully regulated by the order in which the handler's distributing plant is located. Inclusion of this language into Federal milk marketing orders shall not be subjected to a referendum under section 8c(19) of the Agricultural Adjustment Act (7 U.S.C. 608c(19)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.

SEC. 3. EXEMPTION OF MILK HANDLERS FROM MINIMUM PRICE REQUIREMENTS.

Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by adding at the end the following:

`(M) EXEMPTION OF MILK HANDLERS FROM MINIMUM PRICE REQUIREMENTS- Notwithstanding any other provision of this subsection, no handler with distribution of Class I milk products in the Arizona-Las Vegas marketing area (Order No. 131) shall be exempt during any month from any minimum milk price requirement established by the Secretary under this subsection if the total distribution of Class I products within the Arizona-Las Vegas marketing area of any such handler's own farm production exceeds 6,000,000 pounds.'.