IB

Union Calendar No. 137

106TH CONGRESS

1ST SESSION H. R. 1402

[Report No. 106–239]

To require the Secretary of Agriculture to implement the Class I milk price

structure known as Option 1A as part of the implementation of the

final rule to consolidate Federal milk marketing orders.

IN THE HOUSE OF REPRESENTATIVES

APRIL 14, 1999

Mr. BLUNT (for himself, Mr. SWEENEY, Mr. STENHOLM, Mr. MCHUGH, Mr.

HOLDEN, Mr. ETHERIDGE, Mr. REYNOLDS, Mr. BALDACCI, Mrs. THURMAN, Mr. HUTCHINSON, Mrs. CLAYTON, Mr. HOUGHTON, Mr. SKEEN,

Mr. BOEHLERT, Mr. WALSH, Mr. NORWOOD, Mr. ADERHOLT, Mr. CALLAHAN, Mr. CRAMER, Mr. HILLIARD, Mr. RILEY, Mr. DICKEY, Mr. PASTOR, Mr. FARR of California, Mr. LEWIS of California, Mr. HEFLEY, Ms.

DELAURO, Mr. GEJDENSON, Mrs. JOHNSON of Connecticut, Mr.

MALONEY of Connecticut, Mr. BOYD, Ms. BROWN of Florida, Mr. CANADY of Florida, Mr. DAVIS of Florida, Mr. DEUTSCH, Mr. FOLEY, Mrs.

FOWLER, Mr. MCCOLLUM, Mr. MICA, Ms. ROS-LEHTINEN, Mr. STEARNS,

Mr. BARR of Georgia, Mr. BISHOP, Mr. CHAMBLISS, Mr. COLLINS, Mr.

DEAL of Georgia, Mr. KINGSTON, Mr. LEWIS of Georgia, Mr. LINDER,

Mr. FLETCHER, Mr. LEWIS of Kentucky, Mr. WHITFIELD, Mr. BAKER,

Mr. COOKSEY, Mr. JEFFERSON, Mr. JOHN, Mr. MCCRERY, Mr.

CAPUANO, Mr. MCGOVERN, Mr. OLVER, Mr. BARTLETT of Maryland, Mr.

GILCHREST, Mrs. MORELLA, Mr. ALLEN, Mr. BARCIA, Ms. DANNER,

Mrs. EMERSON, Mr. HULSHOF, Mr. SKELTON, Mr. TALENT, Mr. PICKERING, Mr. SHOWS, Mr. TAYLOR of Mississippi, Mr. THOMPSON of Mississippi, Mr. BURR of North Carolina, Mr. COBLE, Mr. HAYES, Mr.

MCINTYRE, Mrs. MYRICK, Mr. PRICE of North Carolina, Mr. TAYLOR of

North Carolina, Mr. BASS, Mr. SUNUNU, Mr. ANDREWS, Mr. SAXTON,

Mr. CROWLEY, Mr. FORBES, Mr. GILMAN, Mr. HINCHEY, Mrs. KELLY,

Mr. LAFALCE, Mrs. LOWEY, Mrs. MCCARTHY of New York, Mr. RANGEL, Mr. TOWNS, Mr. NEY, Mr. STRICKLAND, Mr. WATKINS, Mr.

DOYLE, Mr. GREENWOOD, Mr. KANJORSKI, Mr. KLINK, Mr. MASCARA,

Mr. PETERSON of Pennsylvania, Mr. PITTS, Mr. SHUSTER, Mr. CLYBURN, Mr. BRYANT, Mr. HILLEARY, Mr. JENKINS, Mr. TANNER, Mr.
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BONILLA, Mr. HALL of Texas, Mr. SANDLIN, Mr. THORNBERRY, Mr.

HANSEN, Mr. GOODE, Mr. PICKETT, Mr. SCOTT, Mr. WOLF, Mr. SANDERS, Ms. DUNN, Mr. METCALF, Mr. NETHERCUTT, Mr. MOLLOHAN, Mr.

RAHALL, and Mr. WISE) introduced the following bill; which was referred

to the Committee on Agriculture

JULY 19, 1999

Additional sponsors: Mr. CASTLE, Mr. FOSSELLA, Mr. KING, Mr. MCNULTY,

Mr. NADLER, Mr. QUINN, Mr. LAMPSON, Mr. ENGLISH, Mr. FILNER,

Ms. SLAUGHTER, Mr. SHERWOOD, Mr. LAZIO, Mr. BERRY, Mr. TAUZIN,

Mr. BONIOR, Mr. WICKER, Mr. BALLENGER, Mr. JONES of North Carolina, Mr. BENTSEN, Mr. SISISKY, Mr. RODRIGUEZ, Mr. WYNN, Mr.

MCINNIS, Mr. ISAKSON, Mr. EVERETT, Mr. SHADEGG, Mr. TURNER, Ms.

MCCARTHY of Missouri, Mr. EDWARDS, Mrs. MEEK of Florida, Mr.

DIAZ-BALART, Mr. UDALL of New Mexico, Mr. LUCAS of Kentucky, Ms.

STABENOW, Mr. CAMP, Mr. SNYDER, Mr. LAHOOD, Ms. MCKINNEY, Mr.

HASTINGS of Florida, Mr. STUMP, Mr. LUCAS of Oklahoma, Mr. CONDIT,

Mr. SMITH of Michigan, Mr. BILIRAKIS, Mr. MORAN of Kansas, Mr.

WEXLER, Mr. WELDON of Florida, Mr. BURTON of Indiana, Mr. COOK,

Mr. BACHUS, Mr. FROST, Mr. BOUCHER, Mr. WAMP, Mr. KILDEE, Mrs.

NORTHUP, Mr. HAYWORTH, Mr. GONZALEZ, Mr. GORDON, Mr. GREEN

of Texas, Mr. TRAFICANT, Mr. BRADY of Texas, Mr. CLAY, Mr. HILL

of Montana, Mr. LARGENT, Mr. GOODLATTE, Mr. NEAL of Massachusetts, Mr. SMITH of Washington, Mr. SPENCE, Ms. HOOLEY of Oregon,

Mr. SIMPSON, Mr. YOUNG of Alaska, Mr. LARSON, Mr. INSLEE, Mr.

SPRATT, Mr. CANNON, Mr. GARY MILLER of California, Mr. HASTINGS

of Washington, Mr. RADANOVICH, Ms. WOOLSEY, Mr. DELAY, Mr. RYUN

of Kansas, Mr. PHELPS, Mr. REYES, Mr. HINOJOSA, Mr. LEVIN, Mr.

BROWN of California, Mr. ROGERS, Ms. JACKSON-LEE of Texas, Mr.

REGULA, Mr. MCKEON, Mr. UDALL of Colorado, Mr. GOODLING, Mr.

DICKS, Mr. MARTINEZ, Mr. ABERCROMBIE, Mr. CUNNINGHAM, Mr. DUNCAN, Mr. KENNEDY of Rhode Island, Mr. GIBBONS, Mr. EHRLICH, Mr.

ORTIZ, and Mr. CUMMINGS

JULY 19, 1999

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on April 14, 1999]

A BILL

To require the Secretary of Agriculture to implement the

Class I milk price structure known as Option 1A as
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part of the implementation of the final rule to consolidate

Federal milk marketing orders.

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

3 SECTION 1. REQUIRED USE OF OPTION 1A AS PRICE STRUC4 TURE FOR CLASS I MILK UNDER CONSOLI5 DATED FEDERAL MILK MARKETING ORDERS.

6 (a) USE OF OPTION 1A.—In implementing the final

7 decision for the consolidation and reform of Federal milk

8 marketing orders, as required by section 143 of the Federal

9 Agriculture Improvement and Reform Act of 1996 (7 U.S.C.

10 7253), the Secretary of Agriculture shall price fluid or Class

11 I milk under the orders using the Class I price differentials

12 identified as Option 1A ‘‘Location-Specific Differentials

13 Analysis’’ in the proposed rule published in the Federal

14 Register on January 30, 1998 (63 Fed. Reg. 4802, 4809),

15 except that the Secretary shall include the corrections and

16 modifications to such Class I differentials made by the Sec17 retary through April 2, 1999.

18 (b) EFFECT ON IMPLEMENTATION SCHEDULE.—The

19 requirement to use Option 1A in subsection (a) does not

20 modify or delay the time period for actual implementation

21 of the final decision as part of Federal milk marketing or22 ders specified in section 738 of the Agriculture, Rural De23 velopment, Food and Drug Administration, and Related

24 Agencies Appropriations Act, 1999 (as contained in section
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1 101(a) of division A of Public Law 105–277; 112 Stat.

2 2681–30).

3 SEC. 2. NECESSITY OF USING FORMAL RULEMAKING TO DE4 VELOP PRICING METHODS FOR CLASS III AND

5 CLASS IV MILK; MODIFIED MANUFACTURING

6 ALLOWANCE FOR CHEESE.

7 (a) CONGRESSIONAL FINDING.—The Class III and

8 Class IV pricing formulas included in the final decision for

9 the consolidation and reform of Federal milk marketing or10 ders, as published in the Federal Register on April 2, 1999

11 (64 Fed. Reg. 16025), do not adequately reflect public com12 ment on the original proposed rule published in the Federal

13 Register on January 30, 1998 (63 Fed. Reg. 4802), and

14 are sufficiently different from the proposed rule and any

15 comments submitted with regard to the proposed rule that

16 further emergency rulemaking is merited.

17 (b) FORMAL RULEMAKING.—

18 (1) REQUIRED.—The Secretary of Agriculture

19 shall conduct rulemaking, on the record after an op20 portunity for an agency hearing, to reconsider the

21 Class III and Class IV pricing formulas included in

22 the final decision referred to in subsection (a).

23 (2) IMPLEMENTATION.—A final decision on the

24 formula shall be implemented not later than 10

25 months after the date of the enactment of this Act.
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1 (3) EFFECT OF COURT ORDER.—The actions au2 thorized by this subsection are intended to ensure the

3 timely publication and implementation of new pric4 ing formulas for Class III and Class IV milk. In the

5 event that the Secretary is enjoined or otherwise re6 strained by a court order from implementing the final

7 decision under paragraph (2), the length of time for

8 which that injunction or other restraining order is ef9 fective shall be added to the time limitations specified

10 in paragraph (2) thereby extending those time limita11 tions by a period of time equal to the period of time

12 for which the injunction or other restraining order is

13 effective.

14 (c) FAILURE TO TIMELY COMPLETE RULEMAKING.—

15 If the Secretary of Agriculture fails to implement new Class

16 III and Class IV pricing formulas within the time period

17 required under subsection (b)(2) (plus any additional pe18 riod provided under subsection (b)(3)), the Secretary may

19 not assess or collect assessments from milk producers or

20 handlers under section 8c of the Agricultural Adjustment

21 Act (7 U.S.C. 608c), reenacted with amendments by the Ag22 ricultural Marketing Agreement Act of 1937, for marketing

23 order administration and services provided under such sec24 tion after the end of that period until the pricing formulas

25 are implemented. The Secretary may not reduce the level
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1 of services provided under that section on account of the

2 prohibition against assessments, but shall rather cover the

3 cost of marketing order administration and services through

4 funds available for the Agricultural Marketing Service of

5 the Department.

6 (d) EFFECT ON IMPLEMENTATION SCHEDULE.—Sub7 ject to subsection (e), the requirement for additional rule8 making in subsection (b) does not modify or delay the time

9 period for actual implementation of the final decision re10 ferred to in subsection (a) as part of Federal milk mar11 keting orders, as such time period is specified in section

12 738 of the Agriculture, Rural Development, Food and Drug

13 Administration, and Related Agencies Appropriations Act,

14 1999 (as contained in section 101(a) of division A of Public

15 Law 105–277; 112 Stat. 2681–30).

16 (e) MODIFIED MANUFACTURING ALLOWANCE FOR

17 CHEESE.—Pending the implementation of new pricing for18 mulas for Class III and Class IV milk as required by sub19 section (b), the Secretary of Agriculture shall modify the

20 formula used for determining Class III prices, as contained

21 in the final decision referred to in subsection (a), to replace

22 the manufacturing allowance of 17.02 cents per pound of

23 cheese each place it appears in that formula with an

24 amount equal to 14.7 cents per pound of cheese.
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1 SEC. 3. ONE-YEAR EXTENSION OF CURRENT MILK PRICE

2 SUPPORT PROGRAM.

3 (a) EXTENSION OF PROGRAM.—Subsection (h) of sec4 tion 141 of the Agricultural Market Transition Act (7

5 U.S.C. 7251) is amended by striking ‘‘1999’’ both places

6 it appears and inserting ‘‘2000’’.

7 (b) CONTINUATION OF CURRENT PRICE SUPPORT

8 RATE.—Subsection (b)(4) of such section is amended by

9 striking ‘‘year 1999’’ and inserting ‘‘years 1999 and 2000’’.

10 (c) DELAY IN RECOURSE LOAN PROGRAM FOR PROC11 ESSORS.—Section 142(e) of the Agricultural Market Tran12 sition Act (7 U.S.C. 7252(e)) is amended by striking

13 ‘‘2000’’ and inserting ‘‘2001’’.

14 SEC. 4. DAIRY FORWARD PRICING PROGRAM.

15 The Agricultural Adjustment Act (7 U.S.C. 601 et

16 seq.), reenacted with amendments by the Agricultural Mar17 keting Agreement Act of 1937, is amended by adding at

18 the end the following new section:

19 ‘‘SEC. 23. DAIRY FORWARD PRICING PROGRAM.

20 ‘‘(a) IN GENERAL.—Not later than 90 days after the

21 date of enactment of this section, the Secretary of Agri22 culture shall establish a program under which milk pro23 ducers and cooperatives are authorized to voluntarily enter

24 into forward price contracts with milk handlers.

25 ‘‘(b) MINIMUM MILK PRICE REQUIREMENTS.—Pay26 ments made by milk handlers to milk producers and co-
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1 operatives, and prices received by milk producers and co2 operatives, under the forward contracts shall be deemed to

3 satisfy all regulated minimum milk price requirements of

4 paragraphs (A), (B), (C), (D), (F), and (J) of subsection

5 (5), and subsections (7)(B) and (18), of section 8c.

6 ‘‘(c) APPLICATION.—This section shall apply only with

7 respect to the marketing of federally regulated milk (regard8 less of its use) that is in the current of interstate or foreign

9 commerce or that directly burdens, obstructs, or affects

10 interstate or foreign commerce in federally regulated milk.’’.

Union Calendar No. 137

106TH CONGRESS

1ST SESSION H. R. 1402

[Report No. 106–239]

A BILL

To require the Secretary of Agriculture to impleorders. final rule to consolidate Federal milk marketing Option 1A as part of the implementation of the ment the Class I milk price structure known as

JULY 19, 1999

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,