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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3370 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Milk Supply 
Management and Nutrition Assistance Act of 1993''.
    (b) Table of Contents.--The table of contents for 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.

SEC. 2. PRODUCER REFERENDUM TO RECOMMEND IMPLEMENTATION OF MILK SUPPLY 
              MANAGEMENT AND NUTRITION ASSISTANCE PROVISIONS.

    (a) Referendum.--Title II of the Agricultural Act of 1949 (7 U.S.C. 
1446 et seq.) is amended by inserting after section 204 the following 
new section:

``SEC. 204A. MILK PRODUCER REFERENDUM REGARDING IMPLEMENTATION OF 
              ALTERNATIVE MILK PRICE SUPPORT AND INVENTORY MANAGEMENT 
              PROGRAM.

    ``(a) Referendum.--Not later than 30 days after the date of the 
enactment of the Milk Supply Management and Nutrition Assistance Act of 
1993, the Secretary shall conduct a referendum to determine whether 
milk producers in the 48 contiguous States favor the implementation of 
the alternative milk price support and inventory management program 
provided in section 204C in lieu of applying the rate of price support 
(and required adjustments) specified in subsections (b) and (d) of 
section 204 and the excess production price reduction specified in 
subsection (g) of such section.
    ``(b) Eligible Voters.--The Secretary shall conduct the referendum 
required by this section only among individual milk producers in the 48 
contiguous States who have been producing milk during a representative 
period, as determined by the Secretary. Only individual producers may 
cast ballots in the referendum. An organization or other person 
representing milk producers, including a general farm organization, may 
not cast ballots in the referendum on behalf of milk producers.
    ``(c) Casting Ballots.--The Secretary shall establish the methods 
by which ballots may be cast in the referendum required by this 
section, except that the referendum shall be conducted by secret 
ballot. Such methods shall include casting ballots by mail (subject to 
appropriate safeguards) and in person with a representative of the 
county office of the Agricultural Stabilization and Conservation 
Service or the Extension Service.
    ``(d) Implementation Required.--If the Secretary determines that at 
least one-half of the milk producers voting in the referendum required 
by this section favor the implementation of the alternative milk price 
support and inventory management program provided in section 204C, the 
Secretary (acting through the National Milk Marketing Board established 
by section 204B) shall carry out the provisions of such section 
beginning with the first calendar year beginning after the date on 
which the referendum is completed, and subsections (b), (d), and (g) of 
section 204 shall not apply during and after that calendar year.''.
    (b) Conforming Amendments.--Section 204 of the Agricultural Act of 
1949 (7 U.S.C. 1446e) is amended--
            (1) in subsection (a), by inserting before the period the 
        following: ``and section 204C, if that section is in effect'';
            (2) in subsection (b), by striking ``December 31, 1996,'' 
        and inserting ``the date on which the alternative milk price 
        support and inventory management program provided in section 
        204 takes effect or December 31, 1996, whichever is earlier,'';
            (3) in subsection (d), by adding at the end the following 
        new paragraph:
            ``(6) Effect of implementation of section 204c.--Upon the 
        implementation of the alternative milk price support and 
        inventory management program provided in section 204C, if 
        required by section 204A(d), the support price adjustments 
        required by this subsection and the minimum price specified in 
        paragraph (4) shall not apply.''; and
            (4) in subsection (g), by adding at the end the following 
        new paragraph:
            ``(4) Effect of implementation of section 204c.--Upon the 
        implementation of the alternative milk price support and 
        inventory management program provided in section 204C, if 
        required by section 204A(d), the support price reduction 
        required by this subsection shall not apply.''.

SEC. 3. ESTABLISHMENT OF THE NATIONAL MILK MARKETING BOARD.

    Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) is 
amended by inserting after section 204A, as added by section 2, the 
following new section:

``SEC. 204B. NATIONAL MILK MARKETING BOARD.

    ``(a) Establishment of Board Required.--
            ``(1) Establishment.--If the implementation of the 
        alternative milk price support and inventory management program 
        provided in section 204C is approved in the referendum required 
        by section 204A, the Secretary shall establish a National Milk 
        Marketing Board to implement, administer, and operate the 
        alternative milk price support and inventory management program 
        provided in section 204C. To the extent practicable, the Board 
        shall be established not later than 60 days before the date on 
        which the alternative milk price support and inventory 
        management program takes effect pursuant to section 204A(d). If 
        the Board is not established or capable of administering the 
        alternative milk price support and inventory management program 
        by that date, the Secretary shall temporarily operate the 
        program until the Board is established and operational.
            ``(2) Board defined.--For purposes of this section and 
        section 204C, the term `Board' means the National Milk 
        Marketing Board established under this section.
    ``(b) Membership.--The Board shall consist of 15 members appointed 
by the Secretary as follows:
            ``(1) Fourteen members, two from each region specified in 
        subsection (c), appointed by the Secretary from nominees 
        elected as provided in that subsection.
            ``(2) One member appointed by the Secretary from among 
        individuals who have a demonstrable expertise in the area of 
        milk production, processing, or marketing.
    ``(c) Nomination of Proposed Board Members.--
            ``(1) Conduct of nominating elections.--The Secretary shall 
        conduct elections to select nominees for appointment to the 
        Board. A separate election shall be held in each of the seven 
        geographic regions specified in paragraph (2) to elect three 
        nominees to the Board from each region. The nominating 
        elections may be conducted by the Secretary in conjunction with 
        referendum required under section 204A to permit the timely 
        appointment of the Board before the date on which the 
        alternative milk price support and inventory management program 
        would take effect under section 204C.
            ``(2) Board regions.--For purposes of electing nominees for 
        appointment to the Board, the 48 contiguous States shall be 
        organized into seven geographic regions as follows:
                    ``(A) California, Oregon, and Washington.
                    ``(B) Arizona, Arkansas, Colorado, Idaho, Kansas, 
                Montana, Nevada, New Mexico, Oklahoma, Texas, Utah, and 
                Wyoming.
                    ``(C) Illinois, Iowa, Minnesota, Missouri, 
                Nebraska, North Dakota, and South Dakota.
                    ``(D) Wisconsin.
                    ``(E) Alabama, Florida, Georgia, Kentucky, 
                Louisiana, Mississippi, North Carolina, South Carolina, 
                Tennessee, and Virginia.
                    ``(F) Delaware, Indiana, Maryland, Michigan, New 
                Jersey, Ohio, Pennsylvania, and West Virginia.
                    ``(G) Connecticut, Maine, Massachusetts, New 
                Hampshire, New York, Rhode Island, and Vermont.
            ``(3) Procedure for nominations.--As soon as practicable 
        after the date of the enactment of the Milk Supply Management 
        and Nutrition Assistance Act of 1993, the Secretary shall 
        solicit the names of individuals to be included as candidates 
        on the ballot for the election in each region. Such names may 
        be submitted by milk producers in the region or by 
        organizations or other persons that represent milk producers in 
        the region, including general farm organizations. The Secretary 
        shall establish such additional rules for the conduct of these 
        elections as are appropriate. Individuals shall be eligible to 
        appear on a ballot only if the Secretary determines that the 
        individual has a demonstrable expertise in the area of milk 
        production, processing, or marketing.
            ``(4) Voting by producers.--
                    ``(A) Eligible voters.--The Secretary shall conduct 
                an election in each region to determine the three 
                nominees eligible for appointment to the Board from 
                that region. The election shall be conducted only among 
                individual milk producers who have been producing milk 
                during a representative period, as determined by the 
                Secretary. Only individual producers may cast ballots 
                in the election. An organization or other person 
                representing milk producers, including a general farm 
                organization, may not cast ballots in the election on 
                behalf of milk producers.
                    ``(B) Casting ballots.--The Secretary shall 
                establish the methods by which ballots may be cast. 
                Such methods shall include casting ballots by mail 
                (subject to appropriate safeguards) and in person with 
                a representative of the county office of the 
                Agricultural Stabilization and Conservation Service or 
                the Extension Service.
    ``(d) Appointment; Regional Board.--
            ``(1) Appointment.--The Secretary shall appoint two of the 
        three nominees elected from each region specified in subsection 
        (c) to serve as members of the Board for that region.
            ``(2) Regional board.--The three nominees elected from each 
        region shall also serve as a Regional Milk Marketing Board for 
        the region from which the nominees were elected to assist the 
        Board in administering the alternative milk price support and 
        inventory management program provided in section 204C in that 
        region.
    ``(e) Meetings of the Board.--
            ``(1) First meeting.--Within two weeks after the Secretary 
        first appoints the members of the Board under subsection (d), 
        the Board shall convene for its initial meeting and elect 
        officers.
            ``(2) Other meetings.--The Board shall meet at the call of 
        the chair, or as requested by the Secretary, but at least once 
        every three months.
    ``(f) Procedures of the Board.--
            ``(1) Quorum.--A quorum of the Board shall be eight 
        members.
            ``(2) Rules of procedure and bylaws.--The Board shall adopt 
        written bylaws and rules of procedures to govern its 
        operations.
            ``(3) Ex officio representation.--The Board shall notify 
        the Secretary in advance of each meeting of the Board. The 
        Secretary, or a representative of the Secretary, shall attend 
        each meeting as a nonvoting ex officio member of the Board.
    ``(g) Terms; Compensation.--
            ``(1) Full term.--Each person appointed to the Board shall 
        serve for a four-year term, except that one of the members 
        initially appointed to the Board from each region specified in 
        subsection (c) shall serve a two-year term, as designated by 
        the Secretary at the time of the appointment. The Secretary may 
        remove for cause a member from the Board before the expiration 
        of the term of the member.
            ``(2) Vacancies.--A vacancy on the Board shall be filled in 
        the same manner as the initial appointment.
            ``(3) Reimbursement for expenses.--The members of the Board 
        shall serve without compensation, but shall be reimbursed for 
        reasonable expenses incurred in performing their duties as 
        members of the Board.
    ``(h) Duties.--
            ``(1) Operation of dairy program.--The Board shall be 
        responsible for implementing, administering, and operating the 
        alternative milk price support and inventory management program 
        provided in section 204C.
            ``(2) Monitoring actual price received by producers.--The 
        Board may monitor actual prices received by representative 
        producers for milk produced in the 48 contiguous States and 
        marketed for commercial use in order to compare those prices 
        with the rate of price support for milk in effect for that 
        month and dairy prices at the processor and retail levels. The 
        Board may publish reports regarding the results of this 
        monitoring.
    ``(i) Powers.--The Board shall have such incidental powers 
consistent with the requirements of this section and section 204C as 
the Secretary may prescribe. Such powers shall include the power to 
hire such staff and incur such other administrative expenses as 
necessary to meet the responsibilities of the Board, except that 
administrative expenses for a year may not exceed three percent of the 
funds available to the Board for that year.
    ``(j) Funding and Budgets.--
            ``(1) Board funds.--Consistent with the approved budget of 
        the Board, funds of the Commodity Credit Corporation shall be 
        available to pay for activities under this section and section 
        204C.
            ``(2) Budgets and operating plans.--The Board shall submit 
        to the Secretary its proposed annual budget and plan of 
        operations for each calendar year in which it operates. The 
        budget and plan of operations shall be subject to the approval 
        of the Secretary, and the Secretary may require such changes in 
        the budget or plan of operations as the Secretary considers to 
        be necessary. The Board may not enter into any obligations or 
        expend any funds for a year, except as authorized in the budget 
        for the year approved by the Secretary.
    ``(k) Books and Records of the Board.--
            ``(1) Recordkeeping and accounting requirements.--The Board 
        shall--
                    ``(A) maintain such books and records, which shall 
                be available to the Secretary for inspection and audit, 
                as the Secretary may prescribe;
                    ``(B) prepare and submit to the Secretary such 
                reports as the Secretary may prescribe; and
                    ``(C) account for the receipt and disbursement of 
                all funds entrusted to the Board.
            ``(2) Annual independent audits.--The Board shall cause its 
        books and records to be audited by an independent auditor at 
        the end of each calendar year and a report of such audit to be 
        submitted to the Secretary. The Secretary shall make such 
        report available to the public upon request.
            ``(3) Access by comptroller general.--The Comptroller 
        General and the duly authorized representatives of the 
        Comptroller General shall have access to and the right to 
        examine all books, documents, papers, records, or other 
        recorded information within the possession or control of the 
        Board.''.

SEC. 4. ALTERNATIVE MILK PRICE SUPPORT AND INVENTORY MANAGEMENT 
              PROGRAM.

    Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) is 
amended by inserting after section 204B, as added by section 3, the 
following new section:

``SEC. 204C. ALTERNATIVE MILK PRICE SUPPORT AND INVENTORY MANAGEMENT 
              PROGRAM.

    ``(a) Price Support Rate to Reflect Cost of Production.--The price 
of milk shall be supported at a rate established by the Board, and 
adjusted annually, to reflect the costs of production for milk 
producers. The types of factors to be considered by the Board in 
determining the costs of production shall include the following:
            ``(1) Prices for articles and services purchased by milk 
        producers.
            ``(2) Wages paid to hired farm workers.
            ``(3) The costs of conservation and environmental 
        requirements.
            ``(4) Taxes on farm real estate.
    ``(b) Milk Production and Consumption Estimate.--
            ``(1) Annual estimate.--Not later than November 20 of each 
        calendar year, the Board shall publish in the Federal Register 
        an estimate of--
                    ``(A) the amount of milk and the products of milk 
                in pounds (on a milk equivalent, total milk solids 
                basis) necessary to satisfy domestic consumption and 
                exports of milk and the products of milk during the 
                following calendar year and maintain a reasonable milk 
                reserve;
                    ``(B) the amount of milk and the products of milk 
                in pounds (on a milk equivalent, total milk solids 
                basis) to be produced in the 48 contiguous States 
                during the following year; and
                    ``(C) the amount of milk and the products of milk 
                in pounds (on a milk equivalent, total milk solids 
                basis) that the Commodity Credit Corporation would 
                purchase during the following calendar year under this 
                section or section 204.
            ``(2) Rules for estimate.--When making an estimate under 
        this subsection, the Board--
                    ``(A) shall use the rate of price support to be in 
                effect for the following calendar year; and
                    ``(B) may not consider any inventory management 
                program to balance supply and demand.
            ``(3) Definition.--For purposes of this section, the term 
        `milk equivalent, total milk solids basis' has the meaning 
        given that term in section 204(d)(5)(A).
    ``(c) Milk Marketing Allocation Factor.--On the basis of the 
estimates prepared under subparagraphs (A) and (B) of subsection (b)(1) 
for a calendar year, the Board shall establish a milk marketing 
allocation factor for the purpose of determining milk producer bases 
for that year. The milk marketing allocation factor shall be equal to 
the ratio of subparagraph (A) of subsection (b)(1) to subparagraph (B) 
of such subsection.
    ``(d) Milk Marketing Histories.--
            ``(1) Producer to include certain milk producers using 
        another's land.--For purposes of this section, the term 
        `producer' includes a person who is actively engaged in a dairy 
        operation on a farm as a full-time occupation (as evidenced by 
        the person's contribution of active personal labor and dairy 
        cows to the operation), although the person uses the land, 
        equipment, or facilities of another person.
            ``(2) One- or five-year average.--For each calendar year, 
        the Board shall assign to each producer of milk a marketing 
        history for the producer equal (at the producer's option) to--
                    ``(A) the quantity of milk marketed by the producer 
                during the preceding calendar year; or
                    ``(B) the average quantity of milk marketed by the 
                producer during the five preceding calendar years, 
                excluding the year in which the largest quantity was 
                marketed and the year in which the smallest quantity 
                was marketed.
            ``(3) Use of county committees.--In carrying out this 
        subsection, the Board shall utilize the services of the county 
        committees established under section 8(b) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)).
            ``(4) Amounts produced.--For purposes of determining the 
        milk marketing history of a producer, all milk marketed by the 
        producer from all farms of the producer for the calendar years 
        involved shall be counted, including milk subject to a 
        reduction of the price received under this section or section 
        204.
            ``(5) Nontransferability; exceptions.--A producer's 
        marketing history may not be transferred (by sale, lease, gift, 
        devise, or other method) except as follows:
                    ``(A) There is no restriction on the ability of a 
                producer who is an individual to transfer the marketing 
                history of the producer to an immediate family member 
                (such as the spouse, parent, brother or sister, or 
                child of the producer or a person to whom the producer 
                stands in loco parentis) for use on the same farm.
                    ``(B) There is no restriction on the ability of a 
                producer to sell, lease, or otherwise transfer the 
                marketing history of the producer for a farm in areas 
                in which class I monetary bases have been established 
                before the date of the enactment of this section.
                    ``(C) The county committee shall permit a producer 
                to reestablish the marketing history of a farm owned or 
                leased by the producer at another farm owned or leased 
                by the same producer.
                    ``(D) The county committee may approve the transfer 
                of the marketing history of a producer to another 
                producer (for use on the same farm or another farm) to 
                prevent extreme hardship.
            ``(6) Set-aside of unused marketing history for county 
        committees.--Subject to transfer options specified in paragraph 
        (5), if a producer in a county receives a milk marketing 
        history under this subsection for a calendar year and ceases 
        the production of milk during that year, the portion of that 
        milk marketing history remaining unused shall be available to 
        the county committee in which the producer is located for 
        transfer among producers in accordance with this paragraph for 
        that calendar year. The county committee shall transfer any 
        milk marketing history available to the committee under this 
        paragraph to persons (excluding nonfarm corporations and 
        investors) in the following order of priority:
                    ``(A) A new milk producer described in paragraph 
                (7).
                    ``(B) A milk producer who has been in operation for 
                less than five years.
                    ``(C) A producer in the county whose milk marketing 
                history for the calendar year involved is less than 
                1,000,000 pounds.
                    ``(D) Other producers in the county.
                    ``(E) Other producers in the region in which the 
                county is located, to be recommended by the Regional 
                Milk Marketing Board.
            ``(7) New producers.--A producer who has been engaged in 
        the production of milk for less than 12 consecutive months at 
        the beginning of a calendar year shall be assigned a marketing 
        history by the Board for that year at a reasonable level taking 
        into consideration the milk marketing histories of similarly 
        situated producers in the county. A producer who participated 
        in the milk production termination program under section 
        201(d), as added by section 101(b) of the Food Security Act of 
        1985 (Public Law 99-198; 99 Stat. 1363), may reenter milk 
        production as a new producer.
            ``(8) Equitable adjustments for producers restraining 
        production.--In the case of a producer who restrained milk 
        production during a calendar year in order to qualify for a 
        refund under subsection (f)(3) or (h)(3) of section 204 or as a 
        result of participation in a dairy inventory management 
        activity conducted by the Board, the Board shall assign the 
        producer a milk marketing history for the next calendar year 
        equal (at the producer's option) to--
                    ``(A) the amount determined under paragraph (2); or
                    ``(B) the quantity of milk marketed by the producer 
                from the farm during the most recent calendar year in 
                which the producer did not receive such a refund or 
                participate in such an activity.
            ``(9) Scheme or device.--If the Board determines that a 
        producer has adopted a scheme or device for a calendar year to 
        inflate the milk marketing history of the producer determined 
        under this paragraph or to evade reductions in price required 
        under this section or section 204, the producer shall be 
        ineligible for that year and the succeeding calendar year to 
        receive--
                    ``(A) any marketing history under this subsection; 
                or
                    ``(B) any milk production base under subsection 
                (e).
    ``(e) Determination of Commercial Production Base.--
            ``(1) Notification.--Before January 1 of each calendar 
        year, the Board shall notify each milk producer in the 48 
        contiguous States of the commercial production base of the 
        producer for that year.
            ``(2) Marketing history equal to or under 1,000,000 
        pounds.--If the milk marketing history determined under 
        subsection (d) for a milk producer for a calendar year does not 
        exceed 1,000,000 pounds, the commercial production base for the 
        producer for that calendar year shall be equal to the product 
        of--
                    ``(A) the milk marketing history of the producer; 
                and
                    ``(B) the milk marketing allocation factor 
                determined for that year under subsection (c) or one, 
                whichever is greater.
            ``(3) Marketing history in excess of 1,000,000 pounds.--If 
        the milk marketing history determined under subsection (d) for 
        a milk producer for a calendar year exceeds 1,000,000 pounds, 
        the commercial production base for the producer for that 
        calendar year shall be equal to the sum of--
                    ``(A) 1,000,000 pounds; and
                    ``(B) the product of--
                            ``(i) the milk marketing history of the 
                        producer (reduced by 1,000,000 pounds); and
                            ``(ii) the milk marketing allocation factor 
                        determined for that year under subsection (c).
            ``(4) Maximum commercial base.--The Regional Milk Marketing 
        Board for each region specified in section 204B(c) may 
        establish a maximum commercial production base for producers in 
        that region to reflect the economic and production needs of the 
        region. Notwithstanding paragraphs (2) and (3), no commercial 
        production base determined under this subsection for a producer 
        may exceed the maximum commercial production base in effect for 
        the region in which the producer operates.
    ``(f) Determination of Nutrition Assistance Base.--
            ``(1) Purpose of base.--To assure adequate quantities of 
        low-cost milk and milk products for the Commodity Credit 
        Corporation for distribution through nutrition assistance 
        programs, the Board shall assign to each milk producer a 
        nutrition assistance base for each calendar year. The Commodity 
        Credit Corporation shall offer to purchase from each purchaser, 
        at the reduced price specified in subsection (g)(2), a quantity 
        of milk corresponding to the nutrition assistance base of the 
        producer for the calendar year involved.
            ``(2) Determination.--The nutrition assistance base for a 
        producer for a calendar year shall be equal to the product of--
                    ``(A) the commercial production base of the 
                producer under subsection (e) for that year; and
                    ``(B) a percentage established by the Board for 
                that year, but not to exceed five percent.
            ``(3) Notification.--The notification required to be 
        provided to milk producers under subsection (e)(1) for each 
        calendar year shall also include the nutrition assistance base 
        for the producers for that year.
    ``(g) Reductions in Price for Excess Production.--
            ``(1) Price reduction required.--The Board shall provide 
        for a reduction to be made in the price to be received by a 
        milk producer for any quantity of milk produced in the 48 
        contiguous States and marketed during a calendar year by the 
        producer for commercial use in excess of the commercial 
        production base of the producer for that year.
            ``(2) Reduction for nutrition base marketings.--For 
        quantities of milk marketed by a producer in excess of the 
        commercial production base of the producer, but not in excess 
        of the nutrition assistance base of the producer, the amount of 
        the reduction under this subsection in the price received by 
        such producer shall be equal to the product of--
                    ``(A) 70 percent of the rate of price support for 
                milk (per hundredweight) in effect under subsection (a) 
                for the calendar year involved; and
                    ``(B) the quantity of such milk (measured in 
                hundredweights) so marketed.
            ``(3) Reduction for other excess marketings.--For 
        quantities of milk marketed by a producer in excess of the 
        commercial production base and the nutrition assistance base of 
        the producer, the amount of the reduction under this subsection 
        in the price received by such producer shall be equal to the 
        product of--
                    ``(A) 100 percent of the rate of price support for 
                milk (per hundredweight) in effect under subsection (a) 
                for the calendar year involved; and
                    ``(B) the quantity of milk (measured in 
                hundredweights) so marketed that exceeds the commercial 
                production base and the nutrition assistance base of 
                the producer.
    ``(h) Enforcement.--
            ``(1) Collection.--Reductions in price required under 
        subsection (g) shall be collected and remitted to the Commodity 
        Credit Corporation in the manner prescribed by the Board.
            ``(2) Penalties.--If any person fails to collect or remit 
        the reduction required by subsection (g) or fails to comply 
        with such requirements for recordkeeping or otherwise as are 
        required by the Board to carry out such subsection, the person 
        shall be liable for a civil penalty up to an amount determined 
        by multiplying--
                    ``(A) the quantity of milk involved in the 
                violation; by
                    ``(B) price support rate for milk (per 
                hundredweight) in effect under subsection (a) for the 
                calendar year involved.
            ``(3) Enforcement.--The Board may enforce subsection (g) in 
        the courts of the United States.''.

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HR 3370 IH----2
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