`[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1402 Reported in House (RH)]






                                                 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. 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 part of the implementation of the 
        final rule to consolidate Federal milk marketing orders.

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

SECTION 1. REQUIRED USE OF OPTION 1A AS PRICE STRUCTURE FOR CLASS I 
              MILK UNDER CONSOLIDATED FEDERAL MILK MARKETING ORDERS.

    (a) Use of Option 1A.--In implementing the final decision for the 
consolidation and reform of Federal milk marketing orders, as required 
by section 143 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7253), the Secretary of Agriculture shall price fluid or 
Class I milk under the orders using the Class I price differentials 
identified as Option 1A ``Location-Specific Differentials Analysis'' in 
the proposed rule published in the Federal Register on January 30, 1998 
(63 Fed. Reg. 4802, 4809), except that the Secretary shall include the 
corrections and modifications to such Class I differentials made by the 
Secretary through April 2, 1999.
    (b) Effect on Implementation Schedule.--The requirement to use 
Option 1A in subsection (a) does not modify or delay the time period 
for actual implementation of the final decision as part of Federal milk 
marketing orders specified in section 738 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999 (as contained in section 101(a) of division A 
of Public Law 105-277; 112 Stat. 2681-30).

SEC. 2. NECESSITY OF USING FORMAL RULEMAKING TO DEVELOP PRICING METHODS 
              FOR CLASS III AND CLASS IV MILK; MODIFIED MANUFACTURING 
              ALLOWANCE FOR CHEESE.

    (a) Congressional Finding.--The Class III and Class IV pricing 
formulas included in the final decision for the consolidation and 
reform of Federal milk marketing orders, as published in the Federal 
Register on April 2, 1999 (64 Fed. Reg. 16025), do not adequately 
reflect public comment on the original proposed rule published in the 
Federal Register on January 30, 1998 (63 Fed. Reg. 4802), and are 
sufficiently different from the proposed rule and any comments 
submitted with regard to the proposed rule that further emergency 
rulemaking is merited.
    (b) Formal Rulemaking.--
            (1) Required.--The Secretary of Agriculture shall conduct 
        rulemaking, on the record after an opportunity for an agency 
        hearing, to reconsider the Class III and Class IV pricing 
        formulas included in the final decision referred to in 
        subsection (a).
            (2) Implementation.--A final decision on the formula shall 
        be implemented not later than 10 months after the date of the 
        enactment of this Act.
            (3) Effect of court order.--The actions authorized by this 
        subsection are intended to ensure the timely publication and 
        implementation of new pricing formulas for Class III and Class 
        IV milk. In the event that the Secretary is enjoined or 
        otherwise restrained by a court order from implementing the 
        final decision under paragraph (2), the length of time for 
        which that injunction or other restraining order is effective 
        shall be added to the time limitations specified in paragraph 
        (2) thereby extending those time limitations by a period of 
        time equal to the period of time for which the injunction or 
        other restraining order is effective.
    (c) Failure To Timely Complete Rulemaking.--If the Secretary of 
Agriculture fails to implement new Class III and Class IV pricing 
formulas within the time period required under subsection (b)(2) (plus 
any additional period provided under subsection (b)(3)), the Secretary 
may not assess or collect assessments from milk producers or handlers 
under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), 
reenacted with amendments by the Agricultural Marketing Agreement Act 
of 1937, for marketing order administration and services provided under 
such section after the end of that period until the pricing formulas 
are implemented. The Secretary may not reduce the level of services 
provided under that section on account of the prohibition against 
assessments, but shall rather cover the cost of marketing order 
administration and services through funds available for the 
Agricultural Marketing Service of the Department.
    (d) Effect on Implementation Schedule.--Subject to subsection (e), 
the requirement for additional rulemaking in subsection (b) does not 
modify or delay the time period for actual implementation of the final 
decision referred to in subsection (a) as part of Federal milk 
marketing orders, as such time period is specified in section 738 of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1999 (as contained in section 
101(a) of division A of Public Law 105-277; 112 Stat. 2681-30).
    (e) Modified Manufacturing Allowance for Cheese.--Pending the 
implementation of new pricing formulas for Class III and Class IV milk 
as required by subsection (b), the Secretary of Agriculture shall 
modify the formula used for determining Class III prices, as contained 
in the final decision referred to in subsection (a), to replace the 
manufacturing allowance of 17.02 cents per pound of cheese each place 
it appears in that formula with an amount equal to 14.7 cents per pound 
of cheese.

SEC. 3. ONE-YEAR EXTENSION OF CURRENT MILK PRICE SUPPORT PROGRAM.

    (a) Extension of Program.--Subsection (h) of section 141 of the 
Agricultural Market Transition Act (7 U.S.C. 7251) is amended by 
striking ``1999'' both places it appears and inserting ``2000''.
    (b) Continuation of Current Price Support Rate.--Subsection (b)(4) 
of such section is amended by striking ``year 1999'' and inserting 
``years 1999 and 2000''.
    (c) Delay in Recourse Loan Program for Processors.--Section 142(e) 
of the Agricultural Market Transition Act (7 U.S.C. 7252(e)) is amended 
by striking ``2000'' and inserting ``2001''.

SEC. 4. DAIRY FORWARD PRICING PROGRAM.

    The Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted 
with amendments by the Agricultural Marketing Agreement Act of 1937, is 
amended by adding at the end the following new section:

``SEC. 23. DAIRY FORWARD PRICING PROGRAM.

    ``(a) In General.--Not later than 90 days after the date of 
enactment of this section, the Secretary of Agriculture shall establish 
a program under which milk producers and cooperatives are authorized to 
voluntarily enter into forward price contracts with milk handlers.
    ``(b) Minimum Milk Price Requirements.--Payments made by milk 
handlers to milk producers and cooperatives, and prices received by 
milk producers and cooperatives, under the forward contracts shall be 
deemed to satisfy all regulated minimum milk price requirements of 
paragraphs (A), (B), (C), (D), (F), and (J) of subsection (5), and 
subsections (7)(B) and (18), of section 8c.
    ``(c) Application.--This section shall apply only with respect to 
the marketing of federally regulated milk (regardless of its use) that 
is in the current of interstate or foreign commerce or that directly 
burdens, obstructs, or affects 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 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.

_______________________________________________________________________

                             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`