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that it should undertake if approved by the Sec-
retary, regarding those anticipated purchases in
excess of 7,000,000,000 pounds, using for such
purposes monies transferred to the Dairy Sta-
bilization Fund by the Commodity Credit Cor-
poration from the collected reductions in price
under section 204(g).
‘‘(D) CONTINUATION
AND
CARRYOVER.—
For the second and succeeding Plans, to the ex-
tent necessary or appropriate, the Plan shall
provide for the continuation of activities initi-
ated in the preceding year and the carryover of
funds made available for the preceding year but
not expended and the payment of obligations in-
curred in the preceding year but not paid.
‘‘(D) 1998 PLAN.—The Plan for calendar
year 1998 shall cover activities and expendi-
tures of the Board in 1999 to wind up the busi-
ness of the Board.
‘‘(2) RATE OF DEDUCTION.—For any year in
which the Secretary estimates, by November 20 of
the preceding year, that Commodity Credit Corpora-
tion purchases of milk and the products of milk will
exceed 5,000,000,000 pounds (milk equivalent, total
milk solids basis), the Plan for such year also shall
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establish the rate, per hundredweight, of the market
stabilization deduction from producer revenues
under section 204(h)(2) at a level sufficient to cover
the budgeted outlays of the Board (other than for
administrative costs) for its activities under the plan
during such year, net of any monies otherwise in the
Daily Stabilization Fund or otherwise allocated to
the Board for such year.
‘‘(b) SCHEDULE FOR DEVELOPMENT OF PLAN.—
‘‘(1) PREPARATION
AND
SUBMITTAL.—Each
Dairy Stabilization Plan for a year (A) shall be pre-
pared, and the rate of the market stabilization de-
duction determined (if necessary of such year), dur-
ing the period after the preliminary estimate of net
Commodity Credit Corporation purchases of milk
and milk products for a year is issued on August 1
of the preceding year, and (B) shall be submitted to
the Secretary for approval not later than October 31
preceding the year the plan addresses.
‘‘(2) REVIEW BY SECRETARY.—The Secretary
shall review each proposed Plan and rate of the mar-
ket stabilization deduction (if necessary for such
year), and either approve or disapprove the Plan and
rate, within 20 days after receiving them. If the Sec-
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retary disapproves a proposed Plan or the rate of
deduction, the Secretary shall—
‘‘(A) specify the reasons for disapproval,
and give the Board an additional 10 days to
modify the Plan or deduction rate to meet those
concerns and resubmit it for the Secretary’s ap-
proval; or
‘‘(B) with respect to a disapproved Plan,
draft an alternative play or program for imple-
mentation by the Board that would achieve the
same goals as the Plan proposed by the Board
at the same or lower cost to milk producers.
‘‘(c) QUARTERLY REVISIONS.—
‘‘(1) IN
GENERAL.—The Dairy Stabilization
Plan for any year shall be updated and revised at
the beginning of each of the second, third, and
fourth quarters of the year, or at such other times
specified by the Secretary or determined necessary
by the Board. Any such revision may not go into ef-
fect until approved by the Secretary.
‘‘(2) REVISION OF DEDUCTION RATE.—Any re-
vision of a Plan at the beginning of the second,
third, or fourth quarter of a year, as provided in
paragraph (1), may include a revision in the rate,
per hundredweight, of the market stabilization de-
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duction from producer revenues under section
204(h)(2) for such year, as necessary to reflect
changes in anticipated costs under the Plan for such
year based on revisions in the estimate of Commu-
nity Credit Corporation purchases of milk and the
products of milk during such year. Any such revision
may not go into effect until approved by the Sec-
retary.
‘‘(d) ACTIVITIES OF THE BOARD IN IMPLEMENTING
A PLAN.—
‘‘(1) WHEN ESTIMATED CCC PURCHASES EX-
CEED 5,000,000,000 POUNDS.—The Dairy Stabiliza-
tion Board, in implementing the Dairy Stabilization
Plan for any year in which the Secretary estimates,
by November 20 of the preceding year, that Com-
modity Credit Corporation purchases of milk and the
products of milk will exceed 5,000,000,000 pounds
(milk equivalent, total milk solids basis), the Board
may undertake the following activities as authorized
under the Plan:
‘‘(A) To acquire, or otherwise cause the re-
moval of, dairy products from domestic com-
mercial markets on the basis of bids by sellers
in response to initiations for bids announced by
the Board.