I
106TH CONGRESS
1ST SESSION
H. R. 2324
To amend the Agricultural Adjustment Act to terminate Federal milk mar-
keting orders and to replace such orders with a program to verify
receipts of milk.
IN THE HOUSE OF REPRESENTATIVES
JUNE 23, 1999
Mr. OBEY introduced the following bill; which was referred to the Committee
on Agriculture
A BILL
To amend the Agricultural Adjustment Act to terminate
Federal milk marketing orders and to replace such orders
with a program to verify receipts of milk.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TERMINATION OF MILK MARKETING ORDERS.
(a) TERMINATION.—Section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amend-
ments by the Agricultural Marketing Agreement Act of
1937, is amended by striking paragraphs (5) and (18) re-
lating to milk and its products.
(b) PROHIBITION
ON SUBSEQUENT ORDERS RE-
GARDING
MILK.—Paragraph (2) of such section is
amended—
(1) by striking ‘‘Milk, fruits’’ and inserting
‘‘Fruits’’; and
(2) by inserting ‘‘milk,’’ after ‘‘honey,’’ in sub-
paragraph (B).
(c) CONFORMING AMENDMENTS.—(1) Section 2(3) of
such Act (7 U.S.C. 602(3) is amended by striking ‘‘, other
than milk and its products,’’.
(2) Section 8c of such Act (7 U.S.C. 608c) is
amended—
(A) in paragraph (6), by striking ‘‘, other than
milk and its products,’’;
(B) in paragraph (7)(B), by striking ‘‘(except
for milk and cream to be sold for consumption in
fluid form)’’;
(C) in paragraph (11)(B), by striking ‘‘Except
in the case of milk and its products, orders’’ and in-
serting ‘‘Orders’’;
(D) in paragraph (13)(A), by striking ‘‘, except
to a retailer in his capacity as a retailer of milk and
its products’’; and
(E) in paragraph (17), by striking the second
proviso, which relates to milk orders.
(3) Section 8d(2) of such Act (7 U.S.C. 608d(2)) is
amended by striking the second sentence, which relates to
information from milk handlers.
(4) Section 10(b)(2) of such Act (7 U.S.C. 610(b))
is amended—
(A) by striking clause (i);
(B) by redesignating clauses (ii) and (iii) as
clauses (i) and (ii), respectively; and
(C) in clause (i) (as so redesignated), by strik-
ing ‘‘other commodity’’ in the first sentence and in-
serting ‘‘commodity’’.
(5) Section 11 of such Act (7 U.S.C. 611) is amended
by striking ‘‘and milk, and its products,’’.
(6) Section 715 of the Agriculture, Rural Develop-
ment, Food and Drug Administration, and Related Agen-
cies Appropriations Act, 1994 (Public Law 103–111; 107
Stat. 1079; 7 U.S.C. 608d note), is amended by striking
the third proviso, which relates to information from milk
handlers.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on llllllll.
SEC. 2. PROGRAM TO VERIFY RECEIPTS OF MILK.
(a) PROGRAM REQUIRED.—The Secretary of Agri-
culture shall establish a program through which the
verification of receipts of all cow’s milk marketed in the
48 contiguous States and the auditing of marketing agree-
ments with respect to receipts of such milk may be accom-
plished.
(b) MARKET SERVICES.—The program shall provide
a means by which (1) market statistics and information
are collected and provided to producers, handlers, and con-
sumers, (2) the weighing, sampling, and testing of milk
purchased from producers is accomplished and verified,
(3) authorized deductions from payments to producers, in-
cluding assessments for research and promotion programs,
are collected, (4) assurance of proper payment by handlers
for milk purchased is achieved, and (5) the reports,
records, and facilities of handlers are reviewed and in-
spected to assure their accuracy. However, this subsection
shall not apply to producers for whom such market serv-
ices are being rendered by a cooperative marketing asso-
ciation qualified under the provisions of the Act of Feb-
ruary 18, 1922 (7 U.S.C. 291–292; commonly known as
the Co-operative Marketing Associations Act).
(c) REPORTING REQUIREMENTS.—The program shall
provide for the filing of reports by handlers of milk and
milk products, and the publication of statistics by the Sec-
retary, with respect to receipts of milk, prices paid for
milk, and the purposes for which milk was used by han-
dlers.
(d) ADMINISTRATIVE ASSESSMENT.—The program
shall provide for an assessment on handlers, based on rel-
ative volume of receipts of milk, for expenses related to
the administration of the program, and for a deduction
from producer payments by handlers, based on relative
marketings of milk, for expenses related to market services
provided under the program by the Secretary or a coopera-
tive marketing association. The total revenue from such
assessments and deductions shall not exceed the total cost
of providing those services.
(e) MARKETING AGREEMENTS.—Producers or asso-
ciations of producers, including cooperative marketing as-
sociations qualified under the provisions of the Act of Feb-
ruary 18, 1922 (7 U.S.C. 291–292; commonly known as
the Co-operative Marketing Associations Act), may nego-
tiate and enter into marketing agreements or other private
contracts with handlers for the marketing and receipt of
milk. Upon the request of either or both of the parties,
the Secretary may perform an audit of the agreement or
contract to assure compliance with its terms, except that
the Secretary shall be reimbursed for any costs associated
with the audit in the manner provided in the agreement
or contract. If there is no provision for the reimbursement
of the Secretary in the agreement or contract, the party
or parties requesting the audit shall provide such reim-
bursement.
(f) PROHIBITION ON MARKETING LIMITATIONS.—No
marketing agreement or Government order or regulation
applicable to milk and its products in any marketing area
or jurisdiction shall prohibit or in any manner limit the
marketing in that area of any milk or product of milk pro-
duced in any production area in the United States.
(g) 
FINAL
REGULATIONS.—Not 
later 
than
llllll, the Secretary shall issue final regulations
to establish the verification program required by this sec-
tion. The regulations shall take effect on that date.
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