II 

113TH CONGRESS 

1ST SESSION S. 670 

To improve Federal dairy programs. 

IN THE SENATE OF THE UNITED STATES 

APRIL 9, 2013 

Mrs. GILLIBRAND (for herself and Ms. COLLINS) introduced the following bill; 

which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To improve Federal dairy 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. 

4 This Act may be cited as the ‘‘Dairy Pricing Reform 

5 Act of 2013’’. 

6 SEC. 2. DEFINITION OF SECRETARY. 

7 In this Act, the term ‘‘Secretary’’ means the Sec8 retary of Agriculture. 


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1 SEC. 3. FEDERAL MILK MARKETING ORDER PROGRAM PRE2 HEARING PROCEDURE FOR CLASS III PRIC3 ING. 

4 (a) IN GENERAL.—The Secretary shall use the pre5 hearing procedure described in this section to determine 

6 to conduct a hearing to consider alternative formulas for 

7 Class III milk product pricing under section 8c of the Ag8 ricultural Adjustment Act (7 U.S.C. 608c), reenacted with 

9 amendments by the Agricultural Marketing Agreement 

10 Act of 1937. 

11 (b) REQUESTS FOR PROPOSALS.— 

12 (1) IN GENERAL.—Not later than 60 days after 

13 the date of enactment of this Act, the Secretary 

14 shall issue a request for the submission by interested 

15 persons of preliminary proposals for replacement of 

16 the Class III milk product pricing formula. 

17 (2) PRELIMINARY PROPOSALS.—Preliminary 

18 proposals submitted under paragraph (1)— 

19 (A) may include competitive pay price for20 mulas; and 

21 (B) shall provide sufficient detail in con22 cept to serve as the basis for the convening by 

23 the Secretary of a public information session 

24 for review and discussion in accordance with 

25 section 900.24 of title 7, Code of Federal Regu26 lations (as in effect on the date of enactment of 


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1 this Act), but need not conform with the other 

2 procedural requirements of part 900 of title 7, 

3 Code of Federal Regulations (as in effect on the 

4 date of enactment of this Act). 

5 (c) PRE-HEARING INFORMATION SESSION RE6 VIEW.— 

7 (1) IN GENERAL.—Not later than 180 days 

8 after the date of enactment of this Act, the Sec9 retary shall convene a public information session 

10 under section 900.24 of title 7, Code of Federal 

11 Regulations (as in effect on the date of enactment 

12 of this Act). 

13 (2) REQUIREMENTS.—The Secretary shall re14 view all preliminary proposals submitted under this 

15 section that are of sufficient conceptual detail to 

16 allow for the review described in paragraph (1). 

17 (d) HEARING DETERMINATION.— 

18 (1) IN GENERAL.—Not later than 90 days after 

19 the conduct of the public information session under 

20 subsection (c), the Secretary shall determine whether 

21 to conduct a formal hearing in accordance with part 

22 900 of title 7, Code of Federal Regulations (as in ef23 fect on the date of enactment of this Act). 

24 (2) HEARING TO BE CONDUCTED.—If the Sec25 retary determines under paragraph (1) to conduct a 


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1 formal hearing, the Secretary shall issue notice and 

2 conduct the hearing in accordance with part 900 of 

3 title 7, Code of Federal Regulations (as in effect on 

4 the date of enactment of this Act). 

5 (3) HEARING NOT TO BE CONDUCTED.—If the 

6 Secretary determines under paragraph (1) not to 

7 conduct a formal hearing, not later than 90 days 

8 after that determination, the Secretary shall submit 

9 to the Committee on Agriculture of the House of 

10 Representatives and the Committee on Agriculture, 

11 Nutrition and Forestry of the Senate a written re12 port that explains the basis for the decision. 

13 (e) PROCEEDING WITH A HEARING AT ANY TIME.— 

14 Consistent with the purposes of this section, the Secretary 

15 may dispense with the pre-hearing requirements of this 

16 section and initiate at any time a formal hearing under 

17 part 900 of title 7, Code of Federal Regulations (as in 

18 effect on the date of enactment of this Act). 

19 SEC. 4. FEDERAL MILK MARKETING ORDERS. 

20 Not later than 180 days after the date of enactment 

21 of this Act, the Secretary shall conduct hearings— 

22 (1) to analyze the implications of transitioning 

23 from a 4-class system for milk products to a 2-class 

24 system; 


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1 (2) to explore methods to improve signals for 

2 price discovery in the short- and long-term to allow 

3 dairy producers to better use risk management tools; 

4 and 

5 (3) to assess whether a 2-class competitive pay 

6 pricing system for milk products would be more or 

7 less transparent than the system in effect as of the 

8 day before the date of enactment of this Act. 

Æ 


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