(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by strik-
ing ‘‘of the 1991 through 1997 marketing
years’’ each place it appears and inserting
‘‘marketing year’’;
(iii) in subsection (a)(3), by striking
‘‘1990’’ and inserting ‘‘1990, for the 1991
through 1995 marketing years, and 1995,
for the 1996 through 2002 marketing
years’’;
(iv) in subsection (b)(1)(A)—
(I) by striking ‘‘each of the 1991
through 1997 marketing years’’ and
inserting ‘‘each marketing year’’; and
(II) in clause (i), by inserting be-
fore the semicolon the following: ‘‘, in
the case of the 1991 through 1995 mar-
keting years, and the 1995 marketing
year, in the case of the 1996 through
2002 marketing years’’; and
(v) in subsection (f), by striking
‘‘1997’’ and inserting ‘‘2002’’;
(B) in section 358b (7 U.S.C. 1358b)—
(i) in the section heading, by striking
‘‘1991 THROUGH 1995 CROPS OF’’; and
(ii) in subsection (c), by striking
‘‘1995’’ and inserting ‘‘2002’’;
(C) in section 358c(d) (7 U.S.C. 1358c(d)),
by striking ‘‘1995’’ and inserting ‘‘2002’’; and
(D) in section 358e (7 U.S.C. 1359a)—
(i) in the section heading, by striking
‘‘FOR 1991 THROUGH 1997 CROPS OF
PEANUTS’’; and
(ii) in subsection (i), by striking
‘‘1997’’ and inserting ‘‘2002’’.
(2) ELIGIBILITY FOR FARM POUNDAGE QUOTA.—
(A) CERTAIN FARMS INELIGIBLE.—Section
358–1(b)(1) of the Act (7 U.S.C. 1358–1(b)(1)) is
amended by adding at the end the following:
‘‘(D) CERTAIN FARMS INELIGIBLE TO HOLD
QUOTA.—Effective beginning with the 1997 mar-
keting year, the Secretary shall no longer estab-
lish farm poundage quotas under subparagraph
(A) for farms—
‘‘(i) owned or controlled by munici-
palities, airport authorities, schools, col-
leges, refuges, and other public entities (not
including universities for research pur-
poses); or
‘‘(ii) owned or controlled by a person
who is not a producer and resides in an-
other State.’’.
(B) ALLOCATION
OF
QUOTA
TO
OTHER
FARMS.—Section 358–1(b)(2) of the Act (7
U.S.C. 1358–1(b)(2)) is amended by adding at
the end the following:
‘‘(E) TRANSFER
OF
QUOTA
FROM
INELI-
GIBLE FARMS.—Any farm poundage quota held
at the end of the 1996 marketing year by a farm
described in paragraph (1)(D) shall be allocated
to other farms in the same State on such basis
as the Secretary may by regulation prescribe.’’.
(3) ELIMINATION
OF
QUOTA
FLOOR.—Section
358–1(a)(1) of the Act (7 U.S.C. 1358–1(a)(1)) is
amended by striking the second sentence.
(4) TEMPORARY
QUOTA
ALLOCATION.—Section
358–1 of the Act (7 U.S.C. 1358–1) is amended—
(A) in subsection (a)(1), by striking ‘‘do-
mestic edible, seed,’’ and inserting ‘‘domestic edi-
ble use’’;
(B) in subsection (b)(2)—
(i) in subparagraph (A), by striking
‘‘subparagraph (B) and subject to’’; and
(ii) by striking subparagraph (B) and
inserting the following:
‘‘(B) TEMPORARY QUOTA ALLOCATION.—
‘‘(i) ALLOCATION
RELATED
TO
SEED
PEANUTS.—Temporary allocation of quota
pounds for the marketing year only in
which the crop is planted shall be made to
producers for each of the 1996 through 2002
marketing years as provided in this sub-
paragraph.
‘‘(ii) QUANTITY.—The temporary quota
allocation shall be equal to the pounds of
seed peanuts planted on the farm, as may
be adjusted under regulations prescribed by
the Secretary.
‘‘(iii) ADDITIONAL QUOTA.—The tem-
porary allocation of quota pounds under
this paragraph shall be in addition to the
farm poundage quota otherwise established
under this subsection and shall be credited,
for the applicable marketing year only, in
total to the producer of the peanuts on the
farm in a manner prescribed by the Sec-
retary.
‘‘(iv) EFFECT
OF
OTHER
REQUIRE-
MENTS.—Nothing in this section alters or
changes the requirements regarding the use
of quota and additional peanuts established
by section 358e(b).’’; and
(C) in subsection (e)(3), strike ‘‘and seed
and use on a farm’’.
(5) SPRING
AND
FALL
TRANSFERS
WITHIN
A
STATE.—Section 358b(a)(1) of the Act (7 U.S.C.
1358b(a)(1)) is amended—
(A) by striking ‘‘, conditions, or limita-
tions’’ in the matter preceding the subpara-
graphs and inserting ‘‘and conditions’’;
(B) by striking ‘‘any such lease’’ in the
matter preceding the subparagraphs and insert-
ing ‘‘any such sale or lease’’; and
(C) by striking ‘‘in the fall or after the nor-
mal planting season—’’ and subparagraphs (A)
and (B) and inserting the following: ‘‘in the
spring (or before the normal planting season) or
in the fall (or after the normal planting season)
with the owner or operator of a farm located
within any county in the same State. In the case
of a fall transfer or a transfer after the normal
planting season, the transfer may be made only
if not less than 90 percent of the basic quota (the
farm quota exclusive of temporary quota trans-
fers), plus any poundage quota transferred to the
farm under this subsection, has been planted or
considered planted on the farm from which the
quota is to be leased.’’.
(6) UNDERMARKETINGS.—Part VI of subtitle B
of title III of the Act is amended—
(A) in section 358–1(b) (7 U.S.C. 1358–
1(b))—
(i) in paragraph (1)(B), by striking
‘‘including—’’ and clauses (i) and (ii) and
inserting ‘‘including any increases resulting
from the allocation of quotas voluntarily re-
leased for 1 year under paragraph (7).’’;
(ii) in paragraph (3)(B), by striking
‘‘include—’’ and clauses (i) and (ii) and
inserting ‘‘include any increase resulting
from the allocation of quotas voluntarily re-
leased for 1 year under paragraph (7).’’;
and
(iii) by striking paragraphs (8) and
(9); and
(B) 
in 
section 
358b(a) 
(7 
U.S.C.
1358b(a))—
(i) in paragraph (1), by striking ‘‘(in-
cluding any applicable under marketings)’’
both places it appears;
(ii) in paragraph (2), by striking ‘‘(in-
cluding any applicable under marketings)’’;
and
(iii) in paragraph (3), by striking
‘‘(including 
any 
applicable
undermarketings)’’.
(7) DISASTER TRANSFERS.—Section 358–1(b) of
the Act (7 U.S.C. 1358–1(b)), as amended by para-
graph (6)(A)(iii), is further amended by adding at
the end the following:
‘‘(8) DISASTER TRANSFERS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), additional peanuts produced
on a farm from which the quota poundage was
not harvested and marketed because of drought,
flood, or any other natural disaster, or any other
condition beyond the control of the producer,
may be transferred to the quota loan pool for
pricing purposes on such basis as the Secretary
shall by regulation provide.
‘‘(B) LIMITATION.—The poundage of pea-
nuts transferred under subparagraph (A) shall
not exceed the difference between—
‘‘(i) the total quantity of peanuts meet-
ing quality requirements for domestic edible
use, as determined by the Secretary, mar-
keted from the farm; and
‘‘(ii) the total farm poundage quota,
excluding quota pounds transferred to the
farm in the fall.
‘‘(C) SUPPORT RATE.—Peanuts transferred
under this paragraph shall be supported at 70
percent of the quota support rate for the market-
ing years in which the transfers occur. The
transfers for a farm shall not exceed 25 percent
of the total farm quota pounds, excluding pounds
transferred in the fall.’’.
SEC. 107. SUGAR PROGRAM.
(a) SUGARCANE.—The Secretary shall make loans
available to processors of domestically grown sugarcane at
a rate equal to 18 cents per pound for raw cane sugar.
(b) SUGAR BEETS.—The Secretary shall make loans
available to processors of domestically grown sugar beets at
a rate equal to 22.9 cents per pound for refined beet sugar.
(c) REDUCTION IN LOAN RATES.—
(1) REDUCTION REQUIRED.—The Secretary shall
reduce the loan rate specified in subsection (a) for do-
mestically grown sugarcane and subsection (b) for do-
mestically grown sugar beets if the Secretary deter-
mines that negotiated reductions in export subsidies
and domestic subsidies provided for sugar of the Eu-
ropean Union and other major sugar growing, pro-
ducing, and exporting countries in the aggregate ex-
ceed the commitments made as part of the Agreement
on Agriculture.
(2) EXTENT
OF
REDUCTION.—The Secretary
shall not reduce the loan rate under subsection (a) or
(b) below a rate that provides an equal measure of
support to that provided by the European Union and
other major sugar growing, producing, and exporting
countries, based on an examination of both domestic
and export subsidies subject to reduction in the Agree-
ment on Agriculture.
(3) ANNOUNCEMENT OF REDUCTION.—The Sec-
retary shall announce any loan rate reduction to be
made under this subsection as far in advance as is
practicable.
(4) MAJOR
SUGAR
COUNTRIES
DEFINED.—For
purposes of this subsection, the term ‘‘major sugar
growing, 
producing, 
and 
exporting 
countries’’
means—
(A) the countries of the European Union;
and
(B) the ten foreign countries not covered by
subparagraph (A) that the Secretary determines
produce the greatest amount of sugar.
(5) AGREEMENT ON AGRICULTURE DEFINED.—
For purposes of this subsection, the term ‘‘Agreement
on Agriculture’’ means the Agreement on Agriculture
referred to in section 101(d)(2) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(2)).
(d) TERM OF LOANS.—
(1) IN GENERAL.—Loans under this section dur-
ing any fiscal year shall be made available not earlier
than the beginning of the fiscal year and shall mature
at the earlier of—
(A) the end of 9 months; or
(B) the end of the fiscal year.
(2) SUPPLEMENTAL LOANS.—In the case of loans
made under this section in the last 3 months of a fis-
cal year, the processor may repledge the sugar as col-
lateral for a second loan in the subsequent fiscal year,
except that the second loan shall—
(including the transfer or delivery of the sugar
to a refinery for further processing or market-
ing).
(2) SUGAR BEETS.—Effective for marketings of
beet sugar during the 1996 through 2003 fiscal years,
the first processor of sugar beets shall remit to the
Commodity Credit Corporation a nonrefundable mar-
keting assessment in an amount equal to—
(A) in the case of marketings during fiscal
year 1996, 1.1794 percent of the loan rate estab-
lished under subsection (a) per pound of beet
sugar, processed by the processor from domesti-
cally produced sugar beets or sugar beet molas-
ses, that has been marketed; and
(B) in the case of marketings during each
of fiscal years 1997 through 2003, 1.47425 per-
cent of the loan rate established under subsection
(a) per pound of beet sugar, processed by the
processor from domestically produced sugar beets
or sugar beet molasses, that has been marketed.
(3) COLLECTION.—
(A) TIMING.—A marketing assessment re-
quired under this subsection shall be collected on
a monthly basis and shall be remitted to the
Commodity Credit Corporation not later than 30
days after the end of each month. Any cane
sugar or beet sugar processed during a fiscal
year that has not been marketed by September
30 of the year shall be subject to assessment on
that date. The sugar shall not be subject to a sec-
ond assessment at the time that it is marketed.
(B) MANNER.—Subject to subparagraph
(A), marketing assessments shall be collected
under this subsection in the manner prescribed
by the Secretary and shall be nonrefundable.
(4) PENALTIES.—If any person fails to remit the
assessment required by this subsection or fails to com-
ply with such requirements for recordkeeping or other-
wise as are required by the Secretary to carry out
this subsection, the person shall be liable to the Sec-
retary for a civil penalty up to an amount deter-
mined by multiplying—
(A) the quantity of cane sugar or beet sugar
involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) ENFORCEMENT.—The Secretary may enforce
this subsection in a court of the United States.
(g) FORFEITURE PENALTY.—
(1) IN GENERAL.—A penalty shall be assessed on
the forfeiture of any sugar pledged as collateral for a
nonrecourse loan under this section.
(2) CANE SUGAR.—The penalty for cane sugar
shall be 1 cent per pound.
(3) BEET SUGAR.—The penalty for beet sugar
shall bear the same relation to the penalty for cane
sugar as the marketing assessment for sugar beets
bears to the marketing assessment for sugarcane.
(4) EFFECT
OF
FORFEITURE.—Any payments
owed producers by a processor that forfeits of any
sugar pledged as collateral for a nonrecourse loan
shall be reduced in proportion to the loan forfeiture
penalty incurred by the processor.
(h) INFORMATION REPORTING.—
(1) DUTY OF PROCESSORS AND REFINERS TO RE-
PORT.—A sugarcane processor, cane sugar refiner,
and sugar beet processor shall furnish the Secretary,
on a monthly basis, such information as the Secretary
may require to administer sugar programs, including
the quantity of purchases of sugarcane, sugar beets,
and sugar, and production, importation, distribution,
and stock levels of sugar.
(2) PENALTY.—Any person willfully failing or
refusing to furnish the information, or furnishing
willfully any false information, shall be subject to a
civil penalty of not more than $10,000 for each such
violation.
(3) MONTHLY REPORTS.—Taking into consider-
ation the information received under paragraph (1),
the Secretary shall publish on a monthly basis com-
posite data on production, imports, distribution, and
stock levels of sugar.
(i) MARKETING ALLOTMENTS.—Part VII of subtitle B
of title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359aa et seq.) is repealed.
(j) CROPS.—This section (other than subsection (i))
shall be effective only for the 1996 through 2002 crops of
sugar beets and sugarcane.
SEC. 108. ADMINISTRATION.
(a) COMMODITY CREDIT CORPORATION.—
(1) USE OF CORPORATION.—The Secretary shall
carry out this title through the Commodity Credit
Corporation.
(2) 
PROHIBITION
ON
SALARIES
AND
EX-
PENSES.—Notwithstanding any other provision of
law, no funds of the Corporation shall be used for any
salary or expense of any officer or employee of the De-
partment of Agriculture.
(b) DETERMINATIONS BY SECRETARY.—A determina-
tion made by the Secretary under this title or the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) shall
be final and conclusive.
(c) REGULATIONS.—The Secretary may issue such reg-
ulations as the Secretary determines necessary to carry out
this title.
SEC. 109. ELIMINATION OF PERMANENT PRICE SUPPORT
AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The
Agricultural Adjustment Act of 1938 is amended—
(1) in title III—
(A) in subtitle B—
(i) by striking parts II through V (7
U.S.C. 1326–1351); and
(ii) in part VI—
(I) by moving subsection (c) of
section 358d (7 U.S.C. 1358d(c)) to
appear after section 301(b)(17) (7
U.S.C. 1301(b)(17)), redesignating the
subsection as paragraph (18), and
moving the margin of the paragraph 2
ems to the right; and
(II) by striking sections 358,
358a, and 358d (7 U.S.C. 1358, 1358a,
and 1359); and
(B) by striking subtitle D (7 U.S.C. 1379a–
1379j); and
(2) by striking title IV (7 U.S.C. 1401–1407).
(b) AGRICULTURAL ACT OF 1949.—
(1) TRANSFER OF CERTAIN SECTIONS.—The Ag-
ricultural Act of 1949 is amended—
(A) by transferring sections 106, 106A, and
106B (7 U.S.C. 1445, 1445–1, 1445–2) to appear
after section 314A of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1314–1) and redesig-
nating the transferred sections as sections 315,
315A, and 315B, respectively;
(B) by transferring section 111 (7 U.S.C.
1445f) to appear after section 304 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1304)
and redesignating the transferred section as sec-
tion 305; and
(C) by transferring sections 404 and 416 (7
U.S.C. 1424 and 1431) to appear after section
390 of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1390) and redesignating the trans-
ferred sections as sections 390A and 390B, re-
spectively.
(2) REPEAL.—The Agricultural Act of 1949 (7
U.S.C. 1421 et seq.) (as amended by paragraph (1))
is repealed.
(c) CONFORMING AMENDMENTS.—
(1) Section 361 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1361) is amended by striking
‘‘, corn, wheat, cotton, peanuts, and rice, established’’.
(2) Section 371 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1371) is amended—
(A) in the first sentence of subsection (a), by
striking ‘‘cotton, rice, peanuts, or’’; and
(B) in the first sentence of subsection (b), by
striking ‘‘cotton, rice, peanuts or’’.
SEC. 110. EFFECT OF AMENDMENTS.
(a) EFFECT ON PRIOR CROPS.—Except as otherwise
specifically provided and notwithstanding any other provi-
sion of law, this title and the amendments made by this
title shall not affect the authority of the Secretary to carry
out a price support or production adjustment program for
any of the 1991 through 1995 crops of an agricultural com-
modity established under a provision of law in effect imme-
diately before the date of the enactment of this Act.
(b) LIABILITY.—A provision of this title or an amend-
ment made by this title shall not affect the liability of any
person under any provision of law as in effect before the
date of the enactment of this Act.
TITLE II—DAIRY
Subtitle A—Milk Price Support and
Other Activities
SEC. 201. MILK PRICE SUPPORT PROGRAM.
(a) SUPPORT ACTIVITIES.—To replace the milk price
support program established under section 204 of the Agri-
cultural Act of 1949 (7 U.S.C. 1446e), which is repealed
by section 109(b)(2)), the Secretary of Agriculture shall use
the authority provided in this section to support the price
of milk produced in the 48 contiguous States through the
purchase of cheddar cheese produced from such milk. Until
the first day of the first month beginning not less than 30
days after the date of the enactment of this Act, the Sec-
retary also may support the price of milk under this section
through the purchase of butter and nonfat dry milk pro-
duced from milk produced in the 48 contiguous States.
(b) RATE.—The price of milk shall be supported at the
following rates per hundredweight for milk containing 3.67
percent butterfat:
(1) During calendar year 1996, not less than
$10.35.
(2) During calendar year 1997, not less than
$10.25.
(3) During calendar year 1998, not less than
$10.15.
(4) During calendar year 1999, not less than
$10.05.
(5) During calendar year 2000, not less than
$9.95.
(6) During calendar years 2001 and 2002, not
less than $9.85.
(c) BID PRICES.—The Commodity Credit Corporation
support purchase prices under this section for cheddar
cheese (and for butter and nonfat dry milk subject to sub-
section (a)) announced by the Corporation shall be the same
for all of that milk product sold by persons offering to sell
the product to the Corporation. The purchase prices shall
be sufficient to enable plants of average efficiency to pay
producers, on average, a price not less than the rate of price
support for milk in effect during a 12-month period under
this section.
(d) USE OF COMMODITY CREDIT CORPORATION.—The
Secretary shall use the funds, facilities, and authorities of
the Commodity Credit Corporation to carry out this section.
(e) RESIDUAL AUTHORITY FOR REFUND OF BUDGET
DEFICIT ASSESSMENTS.—
(1) APPLICATION
OF
SUBSECTION.—This sub-
section shall apply with respect to the reductions
made under subsection (h)(2) of section 204 of the Ag-
ricultural Act of 1949, as in effect on the day before
the date of the enactment of this Act, in the price of
milk received by producers during calendar years
1995 and 1996.
(2) REFUND
REQUIRED.—The Secretary shall
provide a refund of the entire reduction made under
such subsection (h)(2) in the price of milk received by
a producer during a calendar year referred to in
paragraph (1) if the producer provides evidence that
the producer did not increase marketings in that cal-
endar year when compared to the preceding calendar
year.
(3) TREATMENT OF REFUNDS.—A refund under
this subsection shall not be considered as any type of
price support or payment for purposes of sections
1211 and 1221 of the Food Security Act of 1985 (16
U.S.C. 3811, 3821).
(g) TRANSFER OF MILK PRODUCTS TO MILITARY AND
VETERANS HOSPITALS.—
(1) TRANSFER AUTHORIZED.—As a means of in-
creasing the utilization of milk and milk products,
upon the certification by the Secretary of Veterans Af-
fairs or by the Secretary of the Army, acting for the
military departments under the Single Service Pur-
chase Assignment for Subsistence of the Department
of Defense, that the usual quantities of milk products
have been purchased in the normal channels of trade,
the Commodity Credit Corporation shall make avail-
able—
(A) to the Secretary of Veterans Affairs at
warehouses where milk products are stored, such
milk products acquired under this section as the
Secretary of Veterans Affairs certifies are re-
quired in order to provide milk products as a
part of the ration in hospitals under the jurisdic-
tion of the Secretary of Veterans Affairs; and
(B) to the Secretary of the Army, at ware-
houses where milk products are stored, such milk
products acquired under this section as the Sec-
retary of the Army certifies can be utilized in
order to provide additional milk products as a
part of the ration—
(i) of the Army, Navy, Air Force, or
Coast Guard;
(ii) in hospitals under the jurisdiction
of the Department of Defense; and
(iii) of cadets and midshipmen at, and
other personnel assigned to, the United
States Merchant Marine Academy.
(2) REPORTS.—The Secretary of Veterans Affairs
and the Secretary of the Army shall report every six
months to the Committee on Agriculture, Nutrition,
and Forestry of the Senate and the Committee on Ag-
riculture of the House of Representatives and the Sec-
retary of Agriculture the amount of milk products
used under this subsection.
(3) PROCESS.—The Secretary of Veterans Affairs
and the Secretary of the Army shall reimburse the
Commodity Credit Corporation for all costs associated
in making milk products available under this sub-
section.
(4) LIMITATION.—The obligation of the Commod-
ity Credit Corporation to make milk products avail-
able pursuant to this subsection shall be limited to
milk products acquired by the Corporation under this
section and not disposed of under provisions (1) and
(2) of section 390B(a) of the Agricultural Adjustment
Act of 1938.
(h) PERIOD
OF EFFECTIVENESS.—Notwithstanding
any other provision of law, this section shall be effective
only during the period—
(1) beginning on the date of the enactment of
this Act; and
(2) ending on December 31, 2002.
SEC. 202. RECOURSE LOANS FOR COMMERCIAL PROC-
ESSORS OF DAIRY PRODUCTS.
(a) RECOURSE LOANS AVAILABLE.—The Secretary of
Agriculture shall make recourse loans available to commer-
cial processors of eligible dairy products to assist such proc-
essors to manage inventories of eligible dairy products to
assure a greater degree of price stability for the dairy indus-
try during the year. Recourse loans may be made available
under such reasonable terms and conditions as the Sec-
retary may prescribe. The Secretary shall use the funds, fa-
cilities, and authorities of the Commodity Credit Corpora-
tion to carry out this section.
(b) AMOUNT OF LOAN.—The Secretary shall establish
the amount of a loan for eligible dairy products, which shall
reflect 90 percent of the reference price for that product.
The rate of interest charged participants in this program
shall not be less than the rate of interest charged the Com-
modity Credit Corporation by the United States Treasury.
(c) PERIOD OF LOANS.—A recourse loan made under
this section may not extend beyond the end of the fiscal year
during which the loan is made, except that the Secretary
may extend the loan for an additional period not to exceed
the end of the next fiscal year.
(d) DEFINITIONS.—In this section:
(1) The term ‘‘eligible dairy products’’ means
cheddar cheese, butter, and nonfat dry milk.
(2) The term ‘‘reference price’’ means—
(A) for cheddar cheese, the average National
(Green Bay) Cheese Exchange price for 40 pound
blocks of cheddar cheese for the previous three
months;
(B) for butter, the average Chicago Mer-
cantile Exchange price for Grade AA butter for
the previous three months; and
(C) for nonfat dry milk, the average West-
ern States Extra Grade and Grade A price for
nonfat dry milk for the previous three months.
SEC. 203. DAIRY EXPORT INCENTIVE PROGRAM.
(a) DURATION.—Subsection (a) of section 153 of the
Food Security Act of 1985 (15 U.S.C. 713a–14) is amended
by striking ‘‘2001’’ and inserting ‘‘2002’’.
(b) ELEMENTS OF PROGRAM.—Subsection (c) of such
section is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(1);
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and
(3) by adding at the end the following new para-
graphs:
‘‘(3) the maximum volume of dairy product ex-
ports allowable consistent with the obligations of the
United States as a member of the World Trade Orga-
nization are exported under the program each year
(minus the volume sold under section 1163 of this Act
(7 U.S.C. 1731 note) during that year), except to the
extent that the export of such a volume under the pro-
gram would, in the judgment of the Secretary, exceed
the limitations on the value set forth in subsection (f);
and
‘‘(4) payments may be made under the program
for exports to any destination in the world for the
purpose of market development, except a destination
in a country with respect to which shipments from
the United States are otherwise restricted by law.’’.
(c) SOLE DISCRETION.—Subsection (b) of such section
is amended by inserting ‘‘sole’’ before ‘‘discretion’’.
(d) MARKET DEVELOPMENT.—Subsection (e)(1) of
such section is amended—
(1) by striking ‘‘and’’ and inserting ‘‘the’’; and
(2) by inserting before the period the following:
‘‘, and any additional amount that may be required
to assist in the development of world markets for
United States dairy products’’.
(e) MAXIMUM ALLOWABLE AMOUNTS.—Such section is
further amended by adding at the end the following:
‘‘(f) REQUIRED FUNDING.—The Commodity Credit
Corporation shall in each year use money and commodities
for the program under this section in the maximum amount
consistent with the obligations of the United States as a
member of the World Trade Organization, minus the
amount expended under section 1163 of this Act (7 U.S.C.
1731 note) during that year. However, the Commodity
Credit Corporation may not exceed the limitations specified
in subsection (c)(3) on the volume of allowable dairy prod-
uct exports.’’.
SEC. 204. DAIRY PROMOTION PROGRAM.
(a) EXPANSION TO COVER DAIRY PRODUCTS IM-
PORTED INTO THE UNITED STATES.—Section 110(b) of the
Dairy Production Stabilization Act of 1983 (7 U.S.C.
4501(b)) is amended by inserting after ‘‘commercial use’’
the following: ‘‘and dairy products imported into the Unit-
ed States’’.
(b) DEFINITIONS.—
(1) MILK.—Subsection (d) of section 111 of such
Act (7 U.S.C. 4502) is amended by inserting before
the semicolon the following: ‘‘or cow’s milk imported
into the United States in the form of dairy products
intended for consumption in the United States’’.
(2) DAIRY PRODUCTS.—Subsection (e) of such
section is amended by inserting before the semicolon
the following: ‘‘and casein (except casein imported
under 
sections 
3501.90.20 
(casein 
glue) 
and
3501.90.50 (other) of the Harmonized Tariff Sched-
ule)’’.
(3) RESEARCH.—Subsection (j) of such section is
amended by inserting before the semicolon the follow-
ing: ‘‘or to reduce the costs associated with processing
or marketing those products’’.
(4) UNITED STATES.—Subsection (l) of such sec-
tion is amended to read as follows:
‘‘(l) the term ‘United States’ means the several
States and the District of Columbia;’’.
(5) IMPORTERS AND EXPORTERS.—Such section
is further amended—
(A) in subsection (k), by striking ‘‘and’’ at
the end of such subsection; and
(B) by adding at the end the following new
subsections:
‘‘(m) the term ‘importer’ means the first person
to take title to dairy products imported into the
United States for domestic consumption; and
‘‘(n) the term ‘exporter’ means any person who
exports dairy products from the United States.’’.
(c) MEMBERSHIP OF BOARD.—Section 113(b) of such
Act (7 U.S.C. 4504(b)) is amended—
(1) in the first sentence, by striking ‘‘thirty-six
members’’ and inserting ‘‘38 members, including one
representative of importers and one representative of
exporters to be appointed by the Secretary’’;
(2) in the second sentence, by striking ‘‘Mem-
bers’’ and inserting ‘‘The remaining members’’; and
(3) in the third sentence, by striking ‘‘United
States’’ and inserting ‘‘United States, including Alas-
ka and Hawaii’’.
(d) ASSESSMENT.—Section 113(g) of such Act (7
U.S.C. 4504(g)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) The order shall provide that each importer of
dairy products intended for consumption in the United
States shall remit to the Board, in the manner prescribed
by the order, an assessment equal to 1.2 cents per pound
of total milk solids contained in the imported dairy prod-
ucts, or 15 cents per hundredweight of milk contained in
the imported dairy products, whichever is less. If an im-
porter can establish that it is participating in active, ongo-
ing qualified State or regional dairy product promotion or
nutrition programs intended to increase the consumption
of milk and dairy products, the importer shall receive credit
in determining the assessment due from that importer for
contributions to such programs of up to .8 cents per pound
of total milk solids contained in the imported dairy prod-
ucts, or 10 cents per hundredweight of milk contained in
the imported dairy products, whichever is less. The assess-
ment collected under this paragraph shall be used for the
purpose specified in paragraph (1).’’.
(e) RECORDS.—Section 113(k) of such Act (7 U.S.C.
4504(k)) is amended in the first sentence by inserting after
‘‘commercial use,’’ the following: ‘‘each importer of dairy
products,’’.
(f) TERMINATION OR SUSPENSION OF ORDER.—Sec-
tion 116(b) of such Act (7 U.S.C. 4507(b)) is amended—
(1) by inserting ‘‘and importers’’ after ‘‘produc-
ers’’ each place it appears;
(2) by striking ‘‘who, during a representative pe-
riod (as determined by the Secretary), have been en-
gaged in the production of milk for commercial use’’;
and
(3) by adding at the end the following new sen-
tences: ‘‘A producer shall be eligible to vote in the ref-
erendum if the producer, during a representative pe-
riod (as determined by the Secretary), has been en-
gaged in the production of milk for commercial use.
An importer shall be eligible to vote in the referendum
if the importer, during a representative period (as de-
termined by the Secretary), has been engaged in the
importation of dairy products into the United States
intended for consumption in the United States.’’.
(g) PROMOTION IN INTERNATIONAL MARKETS.—Sec-
tion 113(e) of such Act (7 U.S.C. 4504(e)) is amended by
adding at the end the following new sentence: ‘‘For each
of the fiscal years 1996 through 2000, the Board’s budget
shall provide for the expenditure of not less than 10 percent
of the anticipated revenues available to the Board to develop
international markets for, and to promote within such mar-
kets, the consumption of dairy products produced in the
United States from milk produced in the United States.’’.
(h) IMPLEMENTATION OF AMENDMENTS.—
(1) IMPLEMENTATION PROCESS.—To implement
the amendments made by this section, the Secretary
of Agriculture shall issue an amended dairy products
promotion and research order under section 112 of the
Dairy Production Stabilization Act of 1983 (7 U.S.C.
4503) reflecting such amendments, and no other
changes, in the order in existence on the date of the
enactment of this Act.
(2) PROPOSAL OF AMENDED ORDER.—Not later
than 60 days after the date of the enactment of this
Act, the Secretary shall publish a proposed dairy
products promotion and research order reflecting the
amendments made by this section. The Secretary shall
provide notice and an opportunity for public com-
ment on the proposed order.
(3) ISSUANCE OF AMENDED ORDER.—After no-
tice and opportunity for public comment are provided
in accordance with paragraph (2), the Secretary shall
issue a final dairy products promotion and research
order, taking into consideration the comments re-
ceived and including in the order such provisions as
are necessary to ensure that the order is in conform-
ity with the amendments made by this section.
(4) EFFECTIVE DATE.—The final dairy products
promotion and research order shall be issued and be-
come effective not later than 120 days after publica-
tion of the proposed order.
(i) REFERENDUM ON AMENDMENTS.—Not later than
36 months after the issuance of the dairy products pro-
motion and research order reflecting the amendments made
by this section, the Secretary of Agriculture shall conduct
a referendum under section 115 of the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4506) for the sole pur-
pose of determining whether the requirements of such
amendments shall be continued. The Secretary shall conduct
the referendum among persons who have been producers or
importers (as defined in section 111 of such Act (7 U.S.C.
4502)) during a representative period as determined by the
Secretary. The requirements of such amendments shall be
continued only if the Secretary determines that such re-
quirements have been approved by not less than a majority
of the persons voting in the referendum. If continuation of
the amendments is not approved, the Secretary shall issue
a new order, within six months after the announcement of
the results of the referendum, that is identical to the order
in effect on the date of the enactment of this Act. The new
order shall become effective upon issuance and shall not be
subject to referendum for approval.
SEC. 205. FLUID MILK STANDARDS UNDER MILK MARKET-
ING ORDERS.
(a) NATURE OF STANDARDS.—Each marketing order
issued with respect to milk and its products under section
8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reen-
acted with amendments by the Agricultural Marketing
Agreement Act of 1937, shall contain terms and conditions
to provide that all dispositions of fluid milk products con-
taining milk of the highest use classification covered by such
orders shall comply with the following requirements:
(1) In the case of milk marketed as whole milk,
not less than 12.05 percent total milk solids consisting
of not less than 8.8 percent milk solids not fat and
not less than 3.25 percent milk fat.
(2) In the case of milk marketed as 2 percent (or
lowfat) milk, not less than 12 percent total milk solids
consisting of not less than 10 percent milk solids not
fat and not less than 2 percent milk fat.
(3) In the case of milk marketed as 1 percent (or
light) milk, not less than 12 percent total milk solids
consisting of not less than 11 percent milk solids not
fat and not less than 1 percent milk fat.
(4) In the case of milk marketed as skim (or
nonfat) milk, not less than 9 percent total milk solids
consisting of not less than 9 percent milk solids not
fat and not more than .25 percent milk fat.
(b) VIOLATIONS.—A violation of the requirements spec-
ified in subsection (a) shall be subject to the penalties pro-
vided in section 8c(14) of the Agricultural Adjustment Act
(7 U.S.C. 608c(14)), reenacted with amendments by the Ag-
ricultural Marketing Agreement Act of 1937.
(c) EFFECTIVE DATE.—The requirements imposed by
this section shall apply to fluid milk marketed on and after
the first day of the first month beginning not less than 30
days after the date of the enactment of this Act.
SEC. 206. MANUFACTURING ALLOWANCE.
(a) MAXIMUM ALLOWANCES ESTABLISHED.—No State
shall provide for a manufacturing allowance for the process-
ing of milk in excess of—
(1) in the case of milk manufactured into butter,
butter oil, nonfat dry milk, or whole dry milk—
(A) $1.65 per hundredweight of milk, for
milk marketed during the 2-year period begin-
ning on the effective date of this section; and
(B) such allowance per hundredweight of
milk as the Secretary of Agriculture may estab-
lish under section 221(b)(3), for milk marketed
after the end of such period; and
(2) in the case of milk manufactured into cheese
and whey—
(A) $1.80 per hundredweight of milk, for
milk marketed during the 2-year period begin-
ning on the effective date of this section; and
(B) such allowance per hundredweight of
milk as the Secretary may establish under sec-
tion 221(b)(3), for milk marketed after the end
of such period.
(b) YIELDS.—In converting the weight of milk to dairy
products during the two-year period beginning on the effec-
tive date of this section, the Secretary shall use the following
yields with respect to a hundred pounds of milk:
(1) Butter: 4.2 pounds.
(2) Nonfat dry milk: 8.613 pounds.
(3) 40 pound block cheddar cheese: 10.169
pounds.
(4) Whey cream butter: .27 pounds.
(c) SOURCES OF PRODUCT PRICE VALUES.—In deter-
mining the manufacturing allowance applicable in a State
during the 2-year period beginning on the effective date of
this section, the Secretary shall use the following sources
for product price values:
(1) For butter, Chicago Mercantile Exchange
Grade AA butter.
(2) For nonfat dry milk, California Manufactur-
ing Plants Extra Grade and Grade A nonfat dry
milk.
(3) For cheese, National (Green Bay) Cheese Ex-
change 40 pound block cheddar cheese.
(4) For whey cream butter, Chicago Mercantile
Exchange Grade B butter.
(d) MANUFACTURING ALLOWANCE DEFINED.—In this
section, the term ‘‘manufacturing allowance’’ means—
(1) the amount by which the product price value
of butter and nonfat dry milk manufactured from a
hundred pounds of milk containing 3.5 pounds of
milk fat and 8.7 pounds of milk solids not fat exceeds
the class price for the milk used to produce those
products; or
(2) an amount by which the product price value
of cheese and whey manufactured from a hundred
pounds of milk containing 3.6 pounds of milk fat and
8.7 pounds of milk solids not fat exceeds the class
price for the milk used to produce those products.
(e) EFFECT OF VIOLATION.—If the Secretary deter-
mines that a State has in effect a manufacturing allowance
that exceeds the manufacturing allowance authorized in
subsection (a), the Secretary shall suspend, until such time
as the State complies with such subsection—
(1) purchases under section 201 of cheddar cheese
produced in that State; and
(2) disbursements from the Class IV equalization
pool under section 208 to milk marketing orders oper-
ating in that State with respect to milk produced in
that State.
(f) CONFORMING SUSPENSION AND REPEAL.—
100
(1) SUSPENSION AND REPEAL.—During the 2-
year period beginning on the effective date of this sec-
tion, the requirements of section 102 of the Food, Ag-
riculture, Conservation, and Trade Act of 1990 (7
U.S.C. 1446e–1) shall not apply. Effective on the first
day after the end of such period, such section is re-
pealed.
(2) EXCEPTION.—Notwithstanding paragraph
(1), in the event that an injunction or other order of
a court prohibits or impairs the implementation of
this section or the activities of the Secretary under
this section, the Secretary shall use the authorities
provided by section 102 of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 1446e–1)
until such time as the injunction or other court order
is lifted.
(g) EFFECTIVE DATE; IMPLEMENTATION.—This sec-
tion shall take effect on the first day of the first month be-
ginning not less than 30 days after the date of the enact-
ment of this Act. After such effective date, the Secretary may
exercise the authority provided to the Secretary under this
section without regard to the issuance of regulations in-
tended to carry out this section.
101
SEC. 207. ESTABLISHMENT OF TEMPORARY CLASS I PRICE
AND TEMPORARY CLASS I EQUALIZATION
POOLS.
(a) TEMPORARY PRICING FOR MILK OF THE HIGHEST
USE CLASSIFICATION (CLASS I MILK).—
(1) ESTABLISHMENT OF MINIMUM PRICE.—Dur-
ing the 2-year period beginning on the effective date
of this section, the minimum price for milk of the
highest use classification marketed under a marketing
order issued under section 8c of the Agricultural Ad-
justment Act (7 U.S.C. 608c), reenacted with amend-
ments by the Agricultural Marketing Agreement Act
of 1937, shall not be less than the sum of—
(A) $12.87 per hundredweight; and
(B) the aggregate adjustment in effect under
clauses (1) and (2) of the second sentence of
paragraph (5)(A) of such section on December
31, 1995, for milk of the highest use classifica-
tion in that order.
(2) ADDITION TO MINIMUM PRICE.—If the basic
formula price for milk exceeds $12.87 per hundred-
weight in any month during the 2-year period begin-
ning on the effective date of this section, the positive
difference between the basic formula price and $12.87
shall be added to the price for milk of the highest use
classification marketed under a marketing order is-
102
sued under such section 8c in the second month fol-
lowing the month in which the difference occurred.
(3) EFFECT ON OTHER USE CLASSIFICATIONS.—
This subsection shall not affect the calculation of the
basic formula price used to determine the price for
milk of use classifications other than the highest use
classification.
(b) CLASS I EQUALIZATION POOLS.—
(1) COLLECTIONS.—During the 2-year period be-
ginning on the effective date of this section, the Sec-
retary of Agriculture shall collect, on a monthly basis,
from each marketing order issued with respect to milk
and its products under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agree-
ment Act of 1937, and from the comparable milk
marketing order issued by the State of California, an
amount equal to the product of—
(A) $0.80 per hundredweight; and
(B) the total hundredweights of all milk of
the highest use classification marketed under the
order for the month.
(2) DISBURSEMENTS.—The Secretary shall pay,
on a monthly basis, to each marketing order referred
103
to in paragraph (1) an amount equal to the product
of—
(A) the total collection under paragraph (1)
for the month; and
(B) the ratio of the total hundredweights of
all milk marketed for the month under that order
to all milk marketed for the month under all
such orders.
(3) EFFECT ON BLEND PRICES.—Producer blend
prices under a milk marketing order shall be adjusted
to account for collections made under paragraph (1)
and disbursements made under paragraph (2).
(c) ENFORCEMENT.—
(1) IN GENERAL.—Amounts for which a milk
marketing order are responsible under subsection (b)
shall be determined on a monthly basis and shall be
collected and remitted to the Secretary in the manner
prescribed by the Secretary.
(2) PENALTIES.—If any person fails to remit the
amount required in subsection (b) or fails to comply
with such requirements for recordkeeping or otherwise
as are required by the Secretary to carry out this sec-
tion, the person shall be liable to the Secretary for a
civil penalty up to an amount determined by mul-
tiplying—
104
(A) the quantity of milk involved in the vio-
lation; by
(B) the support rate for milk in effect at the
time of the violation under section 201.
(3) ENFORCEMENT.—The Secretary may enforce
this section in the courts of the United States.
(d) CONFORMING REPEAL.—Section 8c(5)(A) of the
Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)), reen-
acted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended by striking out the sen-
tence beginning ‘‘Throughout the 2-year period’’ and all
that follows through the end of the subparagraph.
(e) EFFECTIVE DATE.—Except as provided in sub-
section (f), this section shall take effect on the first day of
the first month beginning not less than 30 days after the
date of the enactment of this Act.
(f) IMPLEMENTATION.—Not later than the effective
date of this section, the Secretary shall amend Federal milk
marketing orders issued under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amend-
ments by the Agricultural Marketing Agreement Act of
1937, to effectuate the requirements of this section. The
amendments shall not be—
(1) subject to a referendum under subsection (17)
or (19) of such section among milk producers to deter-
105
mine whether issuance of such order is approved or
favored by milk producers;
(2) preconditioned on the existence of a market-
ing agreement among handlers under subsection (8) of
such section and section 8b of such Act (7 U.S.C.
608b);
(3) subject to rulemaking under title 5, United
States Code; or
(4) subject to review or approval by other execu-
tive agencies.
SEC. 208. ESTABLISHMENT OF TEMPORARY CLASS IV PRICE
AND TEMPORARY CLASS IV EQUALIZATION
POOL.
(a) TEMPORARY
CLASSIFICATION
OF
CLASS
IV
MILK.—
(1) 
CLASSIFICATION.—For 
purposes 
of
classifying milk in accordance with the form in which
or the purpose for which it is used, the Secretary of
Agriculture shall designate all milk marketed in the
48 contiguous States of the United States and used to
produce butter, butter oil, nonfat dry milk, or dry
whole milk as Class IV milk. The Secretary may in-
clude other products of milk, except cheese, within the
Class IV classification if the Secretary determines
106
that inclusion of the product would be fair and equi-
table.
(2) USE OF CLASSIFICATION.—Each marketing
order issued with respect to milk and its products
under section 8c of the Agricultural Adjustment Act
(7 U.S.C. 608c), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, and
each comparable State milk marketing order, shall
use the classification required by paragraph (1) in
lieu of any other classification, such as Class III–A
milk, to properly classify milk used to produce butter,
butter oil, nonfat dry milk, or dry whole milk.
(b) ESTABLISHMENT OF CLASS IV POOL.—The Sec-
retary shall establish a Class IV pool for the purpose of
making collections and disbursements related to milk classi-
fied as Class IV milk under subsection (a). The Class IV
pool shall apply to milk covered by a milk marketing order
referred to in subsection (a) and unregulated milk.
(c) ESTABLISHMENT OF MONTHLY CLASS IV PRICE.—
For the purpose of determining whether the Secretary will
make collections and disbursements under the Class IV
equalization pool, the Secretary shall establish, on a month-
ly basis, a price for dairy products manufactured from
Class IV milk on a 3.5 percent butterfat basis. In determin-
107
ing that price, the Secretary shall calculate the amount
equal to—
(1) the sum of—
(A) the product of the Western States Extra
Grade and Grade A price per pound for nonfat
dry milk and 8.613; and
(B) the product of the Chicago Mercantile
Exchange Grade AA price per pound for butter
and 4.2; less
(2) a manufacturing allowance equal to $1.65
per hundredweight of milk.
(d) OPERATION OF CLASS IV EQUALIZATION POOL.—
(1) APPLICATION
OF
SUBSECTION.—This sub-
section shall apply in any month in which the sup-
port price for milk under section 201, adjusted to 3.5
percent butterfat, exceeds the Class IV price estab-
lished under subsection (c).
(2) COLLECTION.—In any month in which the
Class IV equalization pool is in operation under
paragraph (1), each milk marketing order referred to
in subsection (a) and each handler of unregulated
milk shall pay into the Class IV equalization pool an
amount equal to the product of—
(A) the total hundredweights of Class IV
milk used to manufacture dairy products during
108
that month under all such orders and by all such
handlers;
(B) 50 percent of the amount by which the
support price for milk under section 201, ad-
justed to 3.5 percent butterfat, exceeded the Class
IV price determined under subsection (c) for that
month; and
(C) the ratio of the total hundredweights of
all milk marketed during that month under that
order 
or 
by 
that 
handler 
to 
the 
total
hundredweights of all milk marketed for that
month under all such orders and by all such
handlers.
(3) DISBURSEMENTS.—In any month in which
the Class IV equalization pool is in operation under
paragraph (1), each milk marketing order referred to
in subsection (a) in which products were manufac-
tured from Class IV milk during that month and each
handler of unregulated milk that manufactured prod-
ucts from Class IV milk during that month shall re-
ceive from the Class IV equalization pool an amount
equal to the product of—
(A) the total collection under paragraph (2)
for the month; and
109
(B) the ratio of the total hundredweights of
Class IV milk manufactured into dairy products
during that month under that order or by that
handler to the total hundredweights of Class IV
milk manufactured into dairy products during
that month under all such orders and by all such
handlers.
(4) EFFECT ON BLEND PRICES.—Producer blend
prices under a milk marketing order referred to in
subsection (a) shall be adjusted to account for collec-
tions under paragraph (2) and disbursements under
paragraph (3).
(e) ENFORCEMENT.—
(1) IN GENERAL.—Amounts for which a milk
marketing order or handler are responsible under sub-
section (b) shall be determined on a monthly basis
and shall be collected and remitted to the Secretary
in the manner prescribed by the Secretary.
(2) PENALTIES.—If any person fails to remit the
amount required in subsection (c) or fails to comply
with such requirements for recordkeeping or otherwise
as are required by the Secretary to carry out this sec-
tion, the person shall be liable to the Secretary for a
civil penalty up to an amount determined by mul-
tiplying—
110
(A) the quantity of milk involved in the vio-
lation; by
(B) the support rate for milk in effect at the
time of the violation under section 201.
(3) ENFORCEMENT.—The Secretary may enforce
this section in the courts of the United States.
(f) EFFECTIVE DATE.—Except as provided in sub-
section (g), this section shall—
(1) take effect on the first day of the first month
beginning not less than 30 days after the date of the
enactment of this Act; and
(2) apply during the 2-year period beginning on
such effective date.
(g) IMPLEMENTATION.—Not later than the start of the
effective date of this section, the Secretary shall amend Fed-
eral milk marketing orders issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement
Act of 1937, to effectuate the requirements of this section.
The amendments shall not be—
(1) subject to referendum under subsection (17)
or (19) of such section among milk producers to deter-
mine whether issuance of such order is approved or
favored by milk producers;
111
(2) preconditioned on the existence of a market-
ing agreement among handlers under subsection (8) of
such section and section 8b of such Act (7 U.S.C.
608b);
(3) subject to rulemaking under title 5, United
States Code; or
(4) subject to review or approval by other execu-
tive agencies.
SEC. 209. AUTHORITY FOR ESTABLISHMENT OF STANDBY
POOLS.
(a) AUTHORITY TO ESTABLISH.—As soon as possible
after the effective date of this section, the Secretary of Agri-
culture shall publish in the Federal Register an invitation
for interested persons to submit proposals for the establish-
ment within Federal milk marketing orders issued under
section 8c of the Agricultural Adjustment Act (7 U.S.C.
608c), reenacted with amendments by the Agricultural Mar-
keting Agreement Act of 1937, of standby pools to facilitate
the movement of milk over long distances during periods
of shortage through the sharing of proceeds from sales of
milk of the highest use classification due to producers under
the order with producers shipping to plants regulated by
another order to provide a reserve supply of milk in the
other market.