I

103D CONGRESS

1ST SESSION H. R. 3370

To amend the Agricultural Act of 1949 to provide for the establishment

of a multiple-tier price support program for milk to achieve a closer

correlation between annual milk production and consumption while assuring sufficient low-cost dairy products for nutrition assistance programs.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 26, 1993

Mr. SANDERS introduced the following bill; which was referred to the

Committee on Agriculture

A BILL

To amend the Agricultural Act of 1949 to provide for the

establishment of a multiple-tier price support program

for milk to achieve a closer correlation between annual

milk production and consumption while assuring sufficient low-cost dairy products for nutrition assistance programs.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Milk Supply Management and Nutrition Assistance Act

6 of 1993’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Producer referendum to recommend implementation of milk supply

management and nutrition assistance provisions.

Sec. 3. Establishment of the National Milk Marketing Board.

Sec. 4. Alternative milk price support and inventory management program.

3 SEC. 2. PRODUCER REFERENDUM TO RECOMMEND IMPLE4 MENTATION OF MILK SUPPLY MANAGEMENT

5 AND NUTRITION ASSISTANCE PROVISIONS.

6 (a) REFERENDUM.—Title II of the Agricultural Act

7 of 1949 (7 U.S.C. 1446 et seq.) is amended by inserting

8 after section 204 the following new section:

9 ‘‘SEC. 204A. MILK PRODUCER REFERENDUM REGARDING

10 IMPLEMENTATION OF ALTERNATIVE MILK

11 PRICE SUPPORT AND INVENTORY MANAGE12 MENT PROGRAM.

13 ‘‘(a) REFERENDUM.—Not later than 30 days after

14 the date of the enactment of the Milk Supply Management

15 and Nutrition Assistance Act of 1993, the Secretary shall

16 conduct a referendum to determine whether milk produc17 ers in the 48 contiguous States favor the implementation

18 of the alternative milk price support and inventory man19 agement program provided in section 204C in lieu of ap20 plying the rate of price support (and required adjust21 ments) specified in subsections (b) and (d) of section 204

22 and the excess production price reduction specified in sub23 section (g) of such section.
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1 ‘‘(b) ELIGIBLE VOTERS.—The Secretary shall con2 duct the referendum required by this section only among

3 individual milk producers in the 48 contiguous States who

4 have been producing milk during a representative period,

5 as determined by the Secretary. Only individual producers

6 may cast ballots in the referendum. An organization or

7 other person representing milk producers, including a gen8 eral farm organization, may not cast ballots in the referen9 dum on behalf of milk producers.

10 ‘‘(c) CASTING BALLOTS.—The Secretary shall estab11 lish the methods by which ballots may be cast in the ref12 erendum required by this section, except that the referen13 dum shall be conducted by secret ballot. Such methods

14 shall include casting ballots by mail (subject to appro15 priate safeguards) and in person with a representative of

16 the county office of the Agricultural Stabilization and

17 Conservation Service or the Extension Service.

18 ‘‘(d) IMPLEMENTATION REQUIRED.—If the Secretary

19 determines that at least one-half of the milk producers

20 voting in the referendum required by this section favor the

21 implementation of the alternative milk price support and

22 inventory management program provided in section 204C,

23 the Secretary (acting through the National Milk Market24 ing Board established by section 204B) shall carry out the

25 provisions of such section beginning with the first calendar
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1 year beginning after the date on which the referendum is

2 completed, and subsections (b), (d), and (g) of section 204

3 shall not apply during and after that calendar year.’’.

4 (b) CONFORMING AMENDMENTS.—Section 204 of the

5 Agricultural Act of 1949 (7 U.S.C. 1446e) is amended—

6 (1) in subsection (a), by inserting before the pe7 riod the following: ‘‘and section 204C, if that section

8 is in effect’’;

9 (2) in subsection (b), by striking ‘‘December

10 31, 1996,’’ and inserting ‘‘the date on which the al11 ternative milk price support and inventory manage12 ment program provided in section 204 takes effect

13 or December 31, 1996, whichever is earlier,’’;

14 (3) in subsection (d), by adding at the end the

15 following new paragraph:

16 ‘‘(6) EFFECT OF IMPLEMENTATION OF SECTION

17 204C.—Upon the implementation of the alternative

18 milk price support and inventory management pro19 gram provided in section 204C, if required by sec20 tion 204A(d), the support price adjustments re21 quired by this subsection and the minimum price

22 specified in paragraph (4) shall not apply.’’; and

23 (4) in subsection (g), by adding at the end the

24 following new paragraph:
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1 ‘‘(4) EFFECT OF IMPLEMENTATION OF SECTION

2 204C.—Upon the implementation of the alternative

3 milk price support and inventory management pro4 gram provided in section 204C, if required by sec5 tion 204A(d), the support price reduction required

6 by this subsection shall not apply.’’.

7 SEC. 3. ESTABLISHMENT OF THE NATIONAL MILK MARKET8 ING BOARD.

9 Title II of the Agricultural Act of 1949 (7 U.S.C.

10 1446 et seq.) is amended by inserting after section 204A,

11 as added by section 2, the following new section:

12 ‘‘SEC. 204B. NATIONAL MILK MARKETING BOARD.

13 ‘‘(a) ESTABLISHMENT OF BOARD REQUIRED.—

14 ‘‘(1) ESTABLISHMENT.—If the implementation

15 of the alternative milk price support and inventory

16 management program provided in section 204C is

17 approved in the referendum required by section

18 204A, the Secretary shall establish a National Milk

19 Marketing Board to implement, administer, and op20 erate the alternative milk price support and inven21 tory management program provided in section 204C.

22 To the extent practicable, the Board shall be estab23 lished not later than 60 days before the date on

24 which the alternative milk price support and inven25 tory management program takes effect pursuant to
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1 section 204A(d). If the Board is not established or

2 capable of administering the alternative milk price

3 support and inventory management program by that

4 date, the Secretary shall temporarily operate the

5 program until the Board is established and oper6 ational.

7 ‘‘(2) BOARD DEFINED.—For purposes of this

8 section and section 204C, the term ‘Board’ means

9 the National Milk Marketing Board established

10 under this section.

11 ‘‘(b) MEMBERSHIP.—The Board shall consist of 15

12 members appointed by the Secretary as follows:

13 ‘‘(1) Fourteen members, two from each region

14 specified in subsection (c), appointed by the Sec15 retary from nominees elected as provided in that

16 subsection.

17 ‘‘(2) One member appointed by the Secretary

18 from among individuals who have a demonstrable ex19 pertise in the area of milk production, processing, or

20 marketing.

21 ‘‘(c) NOMINATION OF PROPOSED BOARD MEM22 BERS.—

23 ‘‘(1) CONDUCT OF NOMINATING ELECTIONS.—

24 The Secretary shall conduct elections to select nomi25 nees for appointment to the Board. A separate elec-
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1 tion shall be held in each of the seven geographic re2 gions specified in paragraph (2) to elect three nomi3 nees to the Board from each region. The nominating

4 elections may be conducted by the Secretary in con5 junction with referendum required under section

6 204A to permit the timely appointment of the Board

7 before the date on which the alternative milk price

8 support and inventory management program would

9 take effect under section 204C.

10 ‘‘(2) BOARD REGIONS.—For purposes of elect11 ing nominees for appointment to the Board, the 48

12 contiguous States shall be organized into seven geo13 graphic regions as follows:

14 ‘‘(A) California, Oregon, and Washington.

15 ‘‘(B) Arizona, Arkansas, Colorado, Idaho,

16 Kansas, Montana, Nevada, New Mexico, Okla17 homa, Texas, Utah, and Wyoming.

18 ‘‘(C) Illinois, Iowa, Minnesota, Missouri,

19 Nebraska, North Dakota, and South Dakota.

20 ‘‘(D) Wisconsin.

21 ‘‘(E) Alabama, Florida, Georgia, Ken22 tucky, Louisiana, Mississippi, North Carolina,

23 South Carolina, Tennessee, and Virginia.
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1 ‘‘(F) Delaware, Indiana, Maryland, Michi2 gan, New Jersey, Ohio, Pennsylvania, and West

3 Virginia.

4 ‘‘(G) Connecticut, Maine, Massachusetts,

5 New Hampshire, New York, Rhode Island, and

6 Vermont.

7 ‘‘(3) PROCEDURE FOR NOMINATIONS.—As soon

8 as practicable after the date of the enactment of the

9 Milk Supply Management and Nutrition Assistance

10 Act of 1993, the Secretary shall solicit the names of

11 individuals to be included as candidates on the ballot

12 for the election in each region. Such names may be

13 submitted by milk producers in the region or by or14 ganizations or other persons that represent milk pro15 ducers in the region, including general farm organi16 zations. The Secretary shall establish such additional

17 rules for the conduct of these elections as are appro18 priate. Individuals shall be eligible to appear on a

19 ballot only if the Secretary determines that the indi20 vidual has a demonstrable expertise in the area of

21 milk production, processing, or marketing.

22 ‘‘(4) VOTING BY PRODUCERS.—

23 ‘‘(A) ELIGIBLE VOTERS.—The Secretary

24 shall conduct an election in each region to de25 termine the three nominees eligible for appoint-
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1 ment to the Board from that region. The elec2 tion shall be conducted only among individual

3 milk producers who have been producing milk

4 during a representative period, as determined

5 by the Secretary. Only individual producers

6 may cast ballots in the election. An organiza7 tion or other person representing milk produc8 ers, including a general farm organization, may

9 not cast ballots in the election on behalf of milk

10 producers.

11 ‘‘(B) CASTING BALLOTS.—The Secretary

12 shall establish the methods by which ballots

13 may be cast. Such methods shall include casting

14 ballots by mail (subject to appropriate safe15 guards) and in person with a representative of

16 the county office of the Agricultural Stabiliza17 tion and Conservation Service or the Extension

18 Service.

19 ‘‘(d) APPOINTMENT; REGIONAL BOARD.—

20 ‘‘(1) APPOINTMENT.—The Secretary shall ap21 point two of the three nominees elected from each

22 region specified in subsection (c) to serve as mem23 bers of the Board for that region.

24 ‘‘(2) REGIONAL BOARD.—The three nominees

25 elected from each region shall also serve as a Re-
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1 gional Milk Marketing Board for the region from

2 which the nominees were elected to assist the Board

3 in administering the alternative milk price support

4 and inventory management program provided in sec5 tion 204C in that region.

6 ‘‘(e) MEETINGS OF THE BOARD.—

7 ‘‘(1) FIRST MEETING.—Within two weeks after

8 the Secretary first appoints the members of the

9 Board under subsection (d), the Board shall convene

10 for its initial meeting and elect officers.

11 ‘‘(2) OTHER MEETINGS.—The Board shall meet

12 at the call of the chair, or as requested by the Sec13 retary, but at least once every three months.

14 ‘‘(f) PROCEDURES OF THE BOARD.—

15 ‘‘(1) QUORUM.—A quorum of the Board shall

16 be eight members.

17 ‘‘(2) RULES OF PROCEDURE AND BYLAWS.—

18 The Board shall adopt written bylaws and rules of

19 procedures to govern its operations.

20 ‘‘(3) EX OFFICIO REPRESENTATION.—The

21 Board shall notify the Secretary in advance of each

22 meeting of the Board. The Secretary, or a represent23 ative of the Secretary, shall attend each meeting as

24 a nonvoting ex officio member of the Board.

25 ‘‘(g) TERMS; COMPENSATION.—
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1 ‘‘(1) FULL TERM.—Each person appointed to

2 the Board shall serve for a four-year term, except

3 that one of the members initially appointed to the

4 Board from each region specified in subsection (c)

5 shall serve a two-year term, as designated by the

6 Secretary at the time of the appointment. The Sec7 retary may remove for cause a member from the

8 Board before the expiration of the term of the mem9 ber.

10 ‘‘(2) VACANCIES.—A vacancy on the Board

11 shall be filled in the same manner as the initial ap12 pointment.

13 ‘‘(3) REIMBURSEMENT FOR EXPENSES.—The

14 members of the Board shall serve without compensa15 tion, but shall be reimbursed for reasonable expenses

16 incurred in performing their duties as members of

17 the Board.

18 ‘‘(h) DUTIES.—

19 ‘‘(1) OPERATION OF DAIRY PROGRAM.—The

20 Board shall be responsible for implementing, admin21 istering, and operating the alternative milk price

22 support and inventory management program pro23 vided in section 204C.

24 ‘‘(2) MONITORING ACTUAL PRICE RECEIVED BY

25 PRODUCERS.—The Board may monitor actual prices
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1 received by representative producers for milk pro2 duced in the 48 contiguous States and marketed for

3 commercial use in order to compare those prices

4 with the rate of price support for milk in effect for

5 that month and dairy prices at the processor and re6 tail levels. The Board may publish reports regarding

7 the results of this monitoring.

8 ‘‘(i) POWERS.—The Board shall have such incidental

9 powers consistent with the requirements of this section

10 and section 204C as the Secretary may prescribe. Such

11 powers shall include the power to hire such staff and incur

12 such other administrative expenses as necessary to meet

13 the responsibilities of the Board, except that administra14 tive expenses for a year may not exceed three percent of

15 the funds available to the Board for that year.

16 ‘‘(j) FUNDING AND BUDGETS.—

17 ‘‘(1) BOARD FUNDS.—Consistent with the ap18 proved budget of the Board, funds of the Commodity

19 Credit Corporation shall be available to pay for ac20 tivities under this section and section 204C.

21 ‘‘(2) BUDGETS AND OPERATING PLANS.—The

22 Board shall submit to the Secretary its proposed an23 nual budget and plan of operations for each calendar

24 year in which it operates. The budget and plan of

25 operations shall be subject to the approval of the
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1 Secretary, and the Secretary may require such

2 changes in the budget or plan of operations as the

3 Secretary considers to be necessary. The Board may

4 not enter into any obligations or expend any funds

5 for a year, except as authorized in the budget for

6 the year approved by the Secretary.

7 ‘‘(k) BOOKS AND RECORDS OF THE BOARD.—

8 ‘‘(1) RECORDKEEPING AND ACCOUNTING RE9 QUIREMENTS.—The Board shall—

10 ‘‘(A) maintain such books and records,

11 which shall be available to the Secretary for in12 spection and audit, as the Secretary may pre13 scribe;

14 ‘‘(B) prepare and submit to the Secretary

15 such reports as the Secretary may prescribe;

16 and

17 ‘‘(C) account for the receipt and disburse18 ment of all funds entrusted to the Board.

19 ‘‘(2) ANNUAL INDEPENDENT AUDITS.—The

20 Board shall cause its books and records to be au21 dited by an independent auditor at the end of each

22 calendar year and a report of such audit to be sub23 mitted to the Secretary. The Secretary shall make

24 such report available to the public upon request.
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1 ‘‘(3) ACCESS BY COMPTROLLER GENERAL.—

2 The Comptroller General and the duly authorized

3 representatives of the Comptroller General shall

4 have access to and the right to examine all books,

5 documents, papers, records, or other recorded infor6 mation within the possession or control of the

7 Board.’’.

8 SEC. 4. ALTERNATIVE MILK PRICE SUPPORT AND INVEN9 TORY MANAGEMENT PROGRAM.

10 Title II of the Agricultural Act of 1949 (7 U.S.C.

11 1446 et seq.) is amended by inserting after section 204B,

12 as added by section 3, the following new section:

13 ‘‘SEC. 204C. ALTERNATIVE MILK PRICE SUPPORT AND IN14 VENTORY MANAGEMENT PROGRAM.

15 ‘‘(a) PRICE SUPPORT RATE TO REFLECT COST OF

16 PRODUCTION.—The price of milk shall be supported at

17 a rate established by the Board, and adjusted annually,

18 to reflect the costs of production for milk producers. The

19 types of factors to be considered by the Board in determin20 ing the costs of production shall include the following:

21 ‘‘(1) Prices for articles and services purchased

22 by milk producers.

23 ‘‘(2) Wages paid to hired farm workers.

24 ‘‘(3) The costs of conservation and environ25 mental requirements.
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1 ‘‘(4) Taxes on farm real estate.

2 ‘‘(b) MILK PRODUCTION AND CONSUMPTION ESTI3 MATE.—

4 ‘‘(1) ANNUAL ESTIMATE.—Not later than No5 vember 20 of each calendar year, the Board shall

6 publish in the Federal Register an estimate of—

7 ‘‘(A) the amount of milk and the products

8 of milk in pounds (on a milk equivalent, total

9 milk solids basis) necessary to satisfy domestic

10 consumption and exports of milk and the prod11 ucts of milk during the following calendar year

12 and maintain a reasonable milk reserve;

13 ‘‘(B) the amount of milk and the products

14 of milk in pounds (on a milk equivalent, total

15 milk solids basis) to be produced in the 48 con16 tiguous States during the following year; and

17 ‘‘(C) the amount of milk and the products

18 of milk in pounds (on a milk equivalent, total

19 milk solids basis) that the Commodity Credit

20 Corporation would purchase during the follow21 ing calendar year under this section or section

22 204.

23 ‘‘(2) RULES FOR ESTIMATE.—When making an

24 estimate under this subsection, the Board—
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1 ‘‘(A) shall use the rate of price support to

2 be in effect for the following calendar year; and

3 ‘‘(B) may not consider any inventory man4 agement program to balance supply and de5 mand.

6 ‘‘(3) DEFINITION.—For purposes of this sec7 tion, the term ‘milk equivalent, total milk solids

8 basis’ has the meaning given that term in section

9 204(d)(5)(A).

10 ‘‘(c) MILK MARKETING ALLOCATION FACTOR.—On

11 the basis of the estimates prepared under subparagraphs

12 (A) and (B) of subsection (b)(1) for a calendar year, the

13 Board shall establish a milk marketing allocation factor

14 for the purpose of determining milk producer bases for

15 that year. The milk marketing allocation factor shall be

16 equal to the ratio of subparagraph (A) of subsection (b)(1)

17 to subparagraph (B) of such subsection.

18 ‘‘(d) MILK MARKETING HISTORIES.—

19 ‘‘(1) PRODUCER TO INCLUDE CERTAIN MILK

20 PRODUCERS USING ANOTHER’S LAND.—For pur21 poses of this section, the term ‘producer’ includes a

22 person who is actively engaged in a dairy operation

23 on a farm as a full-time occupation (as evidenced by

24 the person’s contribution of active personal labor

25 and dairy cows to the operation), although the per-
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1 son uses the land, equipment, or facilities of another

2 person.

3 ‘‘(2) ONE- OR FIVE-YEAR AVERAGE.—For each

4 calendar year, the Board shall assign to each pro5 ducer of milk a marketing history for the producer

6 equal (at the producer’s option) to—

7 ‘‘(A) the quantity of milk marketed by the

8 producer during the preceding calendar year; or

9 ‘‘(B) the average quantity of milk mar10 keted by the producer during the five preceding

11 calendar years, excluding the year in which the

12 largest quantity was marketed and the year in

13 which the smallest quantity was marketed.

14 ‘‘(3) USE OF COUNTY COMMITTEES.—In carry15 ing out this subsection, the Board shall utilize the

16 services of the county committees established under

17 section 8(b) of the Soil Conservation and Domestic

18 Allotment Act (16 U.S.C. 590h(b)).

19 ‘‘(4) AMOUNTS PRODUCED.—For purposes of

20 determining the milk marketing history of a pro21 ducer, all milk marketed by the producer from all

22 farms of the producer for the calendar years in23 volved shall be counted, including milk subject to a

24 reduction of the price received under this section or

25 section 204.
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1 ‘‘(5) NONTRANSFERABILITY; EXCEPTIONS.—A

2 producer’s marketing history may not be transferred

3 (by sale, lease, gift, devise, or other method) except

4 as follows:

5 ‘‘(A) There is no restriction on the ability

6 of a producer who is an individual to transfer

7 the marketing history of the producer to an im8 mediate family member (such as the spouse,

9 parent, brother or sister, or child of the pro10 ducer or a person to whom the producer stands

11 in loco parentis) for use on the same farm.

12 ‘‘(B) There is no restriction on the ability

13 of a producer to sell, lease, or otherwise trans14 fer the marketing history of the producer for a

15 farm in areas in which class I monetary bases

16 have been established before the date of the en17 actment of this section.

18 ‘‘(C) The county committee shall permit a

19 producer to reestablish the marketing history of

20 a farm owned or leased by the producer at an21 other farm owned or leased by the same pro22 ducer.

23 ‘‘(D) The county committee may approve

24 the transfer of the marketing history of a pro25 ducer to another producer (for use on the same
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1 farm or another farm) to prevent extreme hard2 ship.

3 ‘‘(6) SET-ASIDE OF UNUSED MARKETING HIS4 TORY FOR COUNTY COMMITTEES.—Subject to trans5 fer options specified in paragraph (5), if a producer

6 in a county receives a milk marketing history under

7 this subsection for a calendar year and ceases the

8 production of milk during that year, the portion of

9 that milk marketing history remaining unused shall

10 be available to the county committee in which the

11 producer is located for transfer among producers in

12 accordance with this paragraph for that calendar

13 year. The county committee shall transfer any milk

14 marketing history available to the committee under

15 this paragraph to persons (excluding nonfarm cor16 porations and investors) in the following order of

17 priority:

18 ‘‘(A) A new milk producer described in

19 paragraph (7).

20 ‘‘(B) A milk producer who has been in op21 eration for less than five years.

22 ‘‘(C) A producer in the county whose milk

23 marketing history for the calendar year involved

24 is less than 1,000,000 pounds.

25 ‘‘(D) Other producers in the county.
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1 ‘‘(E) Other producers in the region in

2 which the county is located, to be recommended

3 by the Regional Milk Marketing Board.

4 ‘‘(7) NEW PRODUCERS.—A producer who has

5 been engaged in the production of milk for less than

6 12 consecutive months at the beginning of a cal7 endar year shall be assigned a marketing history by

8 the Board for that year at a reasonable level taking

9 into consideration the milk marketing histories of

10 similarly situated producers in the county. A pro11 ducer who participated in the milk production termi12 nation program under section 201(d), as added by

13 section 101(b) of the Food Security Act of 1985

14 (Public Law 99–198; 99 Stat. 1363), may reenter

15 milk production as a new producer.

16 ‘‘(8) EQUITABLE ADJUSTMENTS FOR PRODUC17 ERS RESTRAINING PRODUCTION.—In the case of a

18 producer who restrained milk production during a

19 calendar year in order to qualify for a refund under

20 subsection (f)(3) or (h)(3) of section 204 or as a re21 sult of participation in a dairy inventory manage22 ment activity conducted by the Board, the Board

23 shall assign the producer a milk marketing history

24 for the next calendar year equal (at the producer’s

25 option) to—
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1 ‘‘(A) the amount determined under para2 graph (2); or

3 ‘‘(B) the quantity of milk marketed by the

4 producer from the farm during the most recent

5 calendar year in which the producer did not re6 ceive such a refund or participate in such an

7 activity.

8 ‘‘(9) SCHEME OR DEVICE.—If the Board deter9 mines that a producer has adopted a scheme or de10 vice for a calendar year to inflate the milk market11 ing history of the producer determined under this

12 paragraph or to evade reductions in price required

13 under this section or section 204, the producer shall

14 be ineligible for that year and the succeeding cal15 endar year to receive—

16 ‘‘(A) any marketing history under this sub17 section; or

18 ‘‘(B) any milk production base under sub19 section (e).

20 ‘‘(e) DETERMINATION OF COMMERCIAL PRODUCTION

21 BASE.—

22 ‘‘(1) NOTIFICATION.—Before January 1 of each

23 calendar year, the Board shall notify each milk pro24 ducer in the 48 contiguous States of the commercial

25 production base of the producer for that year.
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1 ‘‘(2) MARKETING HISTORY EQUAL TO OR

2 UNDER 1,000,000 POUNDS.—If the milk marketing

3 history determined under subsection (d) for a milk

4 producer for a calendar year does not exceed

5 1,000,000 pounds, the commercial production base

6 for the producer for that calendar year shall be

7 equal to the product of—

8 ‘‘(A) the milk marketing history of the

9 producer; and

10 ‘‘(B) the milk marketing allocation factor

11 determined for that year under subsection (c)

12 or one, whichever is greater.

13 ‘‘(3) MARKETING HISTORY IN EXCESS OF

14 1,000,000 POUNDS.—If the milk marketing history

15 determined under subsection (d) for a milk producer

16 for a calendar year exceeds 1,000,000 pounds, the

17 commercial production base for the producer for

18 that calendar year shall be equal to the sum of—

19 ‘‘(A) 1,000,000 pounds; and

20 ‘‘(B) the product of—

21 ‘‘(i) the milk marketing history of the

22 producer (reduced by 1,000,000 pounds);

23 and
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1 ‘‘(ii) the milk marketing allocation

2 factor determined for that year under sub3 section (c).

4 ‘‘(4) MAXIMUM COMMERCIAL BASE.—The Re5 gional Milk Marketing Board for each region speci6 fied in section 204B(c) may establish a maximum

7 commercial production base for producers in that re8 gion to reflect the economic and production needs of

9 the region. Notwithstanding paragraphs (2) and (3),

10 no commercial production base determined under

11 this subsection for a producer may exceed the maxi12 mum commercial production base in effect for the

13 region in which the producer operates.

14 ‘‘(f) DETERMINATION OF NUTRITION ASSISTANCE

15 BASE.—

16 ‘‘(1) PURPOSE OF BASE.—To assure adequate

17 quantities of low-cost milk and milk products for the

18 Commodity Credit Corporation for distribution

19 through nutrition assistance programs, the Board

20 shall assign to each milk producer a nutrition assist21 ance base for each calendar year. The Commodity

22 Credit Corporation shall offer to purchase from each

23 purchaser, at the reduced price specified in sub24 section (g)(2), a quantity of milk corresponding to
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1 the nutrition assistance base of the producer for the

2 calendar year involved.

3 ‘‘(2) DETERMINATION.—The nutrition assist4 ance base for a producer for a calendar year shall

5 be equal to the product of—

6 ‘‘(A) the commercial production base of

7 the producer under subsection (e) for that year;

8 and

9 ‘‘(B) a percentage established by the

10 Board for that year, but not to exceed five per11 cent.

12 ‘‘(3) NOTIFICATION.—The notification required

13 to be provided to milk producers under subsection

14 (e)(1) for each calendar year shall also include the

15 nutrition assistance base for the producers for that

16 year.

17 ‘‘(g) REDUCTIONS IN PRICE FOR EXCESS PRODUC18 TION.—

19 ‘‘(1) PRICE REDUCTION REQUIRED.—The

20 Board shall provide for a reduction to be made in

21 the price to be received by a milk producer for any

22 quantity of milk produced in the 48 contiguous

23 States and marketed during a calendar year by the

24 producer for commercial use in excess of the com-
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1 mercial production base of the producer for that

2 year.

3 ‘‘(2) REDUCTION FOR NUTRITION BASE MAR4 KETINGS.—For quantities of milk marketed by a

5 producer in excess of the commercial production

6 base of the producer, but not in excess of the nutri7 tion assistance base of the producer, the amount of

8 the reduction under this subsection in the price re9 ceived by such producer shall be equal to the prod10 uct of—

11 ‘‘(A) 70 percent of the rate of price sup12 port for milk (per hundredweight) in effect

13 under subsection (a) for the calendar year in14 volved; and

15 ‘‘(B) the quantity of such milk (measured

16 in hundredweights) so marketed.

17 ‘‘(3) REDUCTION FOR OTHER EXCESS MARKET18 INGS.—For quantities of milk marketed by a pro19 ducer in excess of the commercial production base

20 and the nutrition assistance base of the producer,

21 the amount of the reduction under this subsection in

22 the price received by such producer shall be equal to

23 the product of—

24 ‘‘(A) 100 percent of the rate of price sup25 port for milk (per hundredweight) in effect
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1 under subsection (a) for the calendar year in2 volved; and

3 ‘‘(B) the quantity of milk (measured in

4 hundredweights) so marketed that exceeds the

5 commercial production base and the nutrition

6 assistance base of the producer.

7 ‘‘(h) ENFORCEMENT.—

8 ‘‘(1) COLLECTION.—Reductions in price re9 quired under subsection (g) shall be collected and re10 mitted to the Commodity Credit Corporation in the

11 manner prescribed by the Board.

12 ‘‘(2) PENALTIES.—If any person fails to collect

13 or remit the reduction required by subsection (g) or

14 fails to comply with such requirements for record15 keeping or otherwise as are required by the Board

16 to carry out such subsection, the person shall be lia17 ble for a civil penalty up to an amount determined

18 by multiplying—

19 ‘‘(A) the quantity of milk involved in the

20 violation; by

21 ‘‘(B) price support rate for milk (per hun22 dredweight) in effect under subsection (a) for

23 the calendar year involved.

24 ‘‘(3) ENFORCEMENT.—The Board may enforce

25 subsection (g) in the courts of the United States.’’.
27

•HR 3370 IH

Æ

HR 3370 IH——2