I

104TH CONGRESS

1ST SESSION H. R. 2324

To terminate marketing orders regulating the price of milk at the end of

1995 and to provide for the gradual reduction and eventual elimination

of the price support program for milk.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 13, 1995

Mr. PETRI introduced the following bill; which was referred to the Committee

on Agriculture

A BILL

To terminate marketing orders regulating the price of milk

at the end of 1995 and to provide for the gradual reduction and eventual elimination of the price support program for milk.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. PRICE SUPPORT AND MARKETING ORDERS

4 FOR MILK.

5 (a) REDUCTION AND ELIMINATION OF MILK PRICE

6 SUPPORT.—Subsection (b) of section 204 of the Agricul7 tural Act of 1949 (7 U.S.C. 1446e) is amended by striking

8 ‘‘rate not less than $10.10 per hundredweight for milk
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1 containing 3.67 percent milkfat.’’ and inserting ‘‘rate per

2 hundredweight for milk containing 3.67 percent milkfat

3 of not less than—

4 ‘‘(1) during calendar year 1995, $10.10 per

5 hundredweight;

6 ‘‘(2) during calendar year 1996, $9.60 per hun7 dredweight;

8 ‘‘(3) during calendar year 1997, $9.10 per hun9 dredweight;

10 ‘‘(4) during calendar year 1998, $8.60 per hun11 dredweight; and

12 ‘‘(5) during calendar year 1999, $8.10 per hun13 dredweight.’’.

14 (b) CONFORMING AMENDMENTS REGARDING PRICE

15 SUPPORT.—

16 (1) REFERENCES TO SUPPORT RATE.—Section

17 204 of the Agricultural Act of 1949 (7 U.S.C.

18 1446e) is further amended—

19 (A) in subsection (c)(2), by striking ‘‘a 12-

20 month period’’ and inserting ‘‘a calendar year’’;

21 (B) in subsection (c)(3)(B)(ii), by inserting

22 before the period the following: ‘‘(as adjusted

23 by the Secretary to reflect the rate of price sup24 port in effect for a calendar year)’’;
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1 (C) by striking subsection (d), except para2 graph (5) of such subsection;

3 (D) by redesignating such paragraph (5)

4 as subsection (d) and subparagraphs (A) and

5 (B) as paragraphs (1) and (2) of such sub6 section; and

7 (E) by adjusting the margins of subsection

8 (d) (as so designated) to conform to the mar9 gins of subsection (c).

10 (2) PERIOD OF PRICE SUPPORT PROGRAM.—

11 Such section is further amended—

12 (A) in the section heading, by striking

13 ‘‘1996’’ and inserting ‘‘1999’’;

14 (B) in subsections (a), (b) (the first place

15 it appears), (g), and (k), by striking ‘‘1996’’

16 and inserting ‘‘1999’’;

17 (C) in subsection (c)(3)(B), by striking

18 ‘‘the date of enactment of the Omnibus Budget

19 Reconciliation Act of 1993’’ and inserting ‘‘Au20 gust 10, 1993’’; and

21 (D) in subsection (f), by striking ‘‘1995’’

22 and inserting ‘‘1998’’.

23 (3) TERMINATION OF PARITY PRICE PRO24 GRAM.—Effective December 31, 1999, section 201
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1 of such Act (7 U.S.C. 1446) is amended by striking

2 subsection (c).

3 (4) PROHIBITION ON PRICE SUPPORT ACTIVI4 TIES.—After December 31, 1999, the Secretary of

5 Agriculture may not support the price of milk

6 through the purchase of milk or the products of

7 milk.

8 (c) TERMINATION OF MILK MARKETING ORDERS.—

9 (1) TERMINATION OF ORDERS.—Section 8c of

10 the Agricultural Adjustment Act (7 U.S.C. 608c),

11 reenacted with amendments by the Agricultural

12 Marketing Agreement Act of 1937, is amended by

13 striking paragraphs (5) and (18) relating to milk

14 and its products.

15 (2) PROHIBITION ON SUBSEQUENT ORDERS RE16 GARDING MILK.—Paragraph (2) of such section is

17 amended—

18 (A) by striking ‘‘Milk, fruits’’ and inserting

19 ‘‘Fruits’’; and

20 (B) by inserting ‘‘milk,’’ after ‘‘honey,’’ in

21 subparagraph (B).

22 (3) CONFORMING AMENDMENTS.—(A) Section

23 2(3) of such Act (7 U.S.C. 602(3) is amended by

24 striking ‘‘, other than milk and its products,’’.
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1 (B) Section 8c of such Act (7 U.S.C. 608c) is

2 amended—

3 (i) in paragraph (6), by striking ‘‘, other

4 than milk and its products,’’;

5 (ii) in paragraph (7)(B), by striking ‘‘(ex6 cept for milk and cream to be sold for consump7 tion in fluid form)’’;

8 (iii) in paragraph (11)(B), by striking

9 ‘‘Except in the case of milk and its products,

10 orders’’ and inserting ‘‘Orders’’;

11 (iv) in paragraph (13)(A), by striking

12 ‘‘, except to a retailer in his capacity as a re13 tailer of milk and its products’’; and

14 (v) in paragraph (17), by striking the sec15 ond proviso, which relates to milk orders.

16 (C) Section 8d(2) of such Act (7 U.S.C.

17 608d(2)) is amended by striking the second sen18 tence, which relates to information from milk han19 dlers.

20 (D) Section 10(b) of such Act (7 U.S.C.

21 610(b)) is amended—

22 (i) by striking clause (i);

23 (ii) by redesignating clauses (ii) and (iii)

24 as clauses (i) and (ii), respectively; and
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1 (iii) in clause (i) (as so redesignated), by

2 striking ‘‘other commodity’’ in the first sen3 tence and inserting ‘‘commodity’’.

4 (E) Section 11 of such Act (7 U.S.C. 611) is

5 amended by striking ‘‘and milk, and its products,’’.

6 (F) Section 715 of the Agriculture, Rural De7 velopment, Food and Drug Administration, and Re8 lated Agencies Appropriations Act, 1994 (Public

9 Law 103–111; 107 Stat. 1079; 7 U.S.C. 608d note),

10 is amended by striking the third proviso, which re11 lates to information from milk handlers.

12 (4) EFFECTIVE DATE.—The amendments made

13 by this subsection shall take effect on December 31,

14 1995.

15 (d) ADJUSTMENT OF RECONCILIATION ASSESSMENT

16 TO REFLECT AMENDMENTS.—Subsection (h) of section

17 204 of the Agricultural Act of 1949 (7 U.S.C. 1446e) is

18 amended—

19 (1) in paragraph (1), by striking ‘‘Beginning

20 January 1, 1991’’ and inserting ‘‘During calendar

21 years 1991 through 1999’’;

22 (2) in paragraph (2)(C), by striking ‘‘1997’’

23 and inserting ‘‘1999’’; and

24 (3) by adding at the end the following new

25 paragraph:
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1 ‘‘(4) PRICE REDUCTION ADJUSTMENT.—During

2 each of the calendar years 1996 through 1999, the

3 Secretary shall reduce the amount of the price re4 duction specified in paragraph (2)(C) to reflect the

5 reduced expenditures by the United States resulting

6 from the termination of milk marketing orders is7 sued under section 8c of the Agricultural Adjust8 ment Act (7 U.S.C. 608c), reenacted with amend9 ments by the Agricultural Marketing Agreement Act

10 of 1937, and the rate of price support for milk in

11 effect for that calendar year.’’.

12 (e) LIABILITY OF PRODUCERS.—The amendments

13 made by this section shall not affect the liability of any

14 person under any provision of law as in effect before the

15 effective date of the amendments.

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