I
103D CONGRESS
1ST SESSION
H. R. 3370
To amend the Agricultural Act of 1949 to provide for the establishment
of a multiple-tier price support program for milk to achieve a closer
correlation between annual milk production and consumption while assur-
ing sufficient low-cost dairy products for nutrition assistance programs.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 26, 1993
Mr. SANDERS introduced the following bill; which was referred to the
Committee on Agriculture
A BILL
To amend the Agricultural Act of 1949 to provide for the
establishment of a multiple-tier price support program
for milk to achieve a closer correlation between annual
milk production and consumption while assuring suffi-
cient low-cost dairy products for nutrition assistance pro-
grams.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Milk Supply Management and Nutrition Assistance Act
of 1993’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Producer referendum to recommend implementation of milk supply
management and nutrition assistance provisions.
Sec. 3. Establishment of the National Milk Marketing Board.
Sec. 4. Alternative milk price support and inventory management program.
SEC. 2. PRODUCER REFERENDUM TO RECOMMEND IMPLE-
MENTATION OF MILK SUPPLY MANAGEMENT
AND NUTRITION ASSISTANCE PROVISIONS.
(a) REFERENDUM.—Title II of the Agricultural Act
of 1949 (7 U.S.C. 1446 et seq.) is amended by inserting
after section 204 the following new section:
‘‘SEC. 204A. MILK PRODUCER REFERENDUM REGARDING
IMPLEMENTATION OF ALTERNATIVE MILK
PRICE SUPPORT AND INVENTORY MANAGE-
MENT PROGRAM.
‘‘(a) REFERENDUM.—Not later than 30 days after
the date of the enactment of the Milk Supply Management
and Nutrition Assistance Act of 1993, the Secretary shall
conduct a referendum to determine whether milk produc-
ers in the 48 contiguous States favor the implementation
of the alternative milk price support and inventory man-
agement program provided in section 204C in lieu of ap-
plying the rate of price support (and required adjust-
ments) specified in subsections (b) and (d) of section 204
and the excess production price reduction specified in sub-
section (g) of such section.
‘‘(b) ELIGIBLE VOTERS.—The Secretary shall con-
duct the referendum required by this section only among
individual milk producers in the 48 contiguous States who
have been producing milk during a representative period,
as determined by the Secretary. Only individual producers
may cast ballots in the referendum. An organization or
other person representing milk producers, including a gen-
eral farm organization, may not cast ballots in the referen-
dum on behalf of milk producers.
‘‘(c) CASTING BALLOTS.—The Secretary shall estab-
lish the methods by which ballots may be cast in the ref-
erendum required by this section, except that the referen-
dum shall be conducted by secret ballot. Such methods
shall include casting ballots by mail (subject to appro-
priate safeguards) and in person with a representative of
the county office of the Agricultural Stabilization and
Conservation Service or the Extension Service.
‘‘(d) IMPLEMENTATION REQUIRED.—If the Secretary
determines that at least one-half of the milk producers
voting in the referendum required by this section favor the
implementation of the alternative milk price support and
inventory management program provided in section 204C,
the Secretary (acting through the National Milk Market-
ing Board established by section 204B) shall carry out the
provisions of such section beginning with the first calendar
year beginning after the date on which the referendum is
completed, and subsections (b), (d), and (g) of section 204
shall not apply during and after that calendar year.’’.
(b) CONFORMING AMENDMENTS.—Section 204 of the
Agricultural Act of 1949 (7 U.S.C. 1446e) is amended—
(1) in subsection (a), by inserting before the pe-
riod the following: ‘‘and section 204C, if that section
is in effect’’;
(2) in subsection (b), by striking ‘‘December
31, 1996,’’ and inserting ‘‘the date on which the al-
ternative milk price support and inventory manage-
ment program provided in section 204 takes effect
or December 31, 1996, whichever is earlier,’’;
(3) in subsection (d), by adding at the end the
following new paragraph:
‘‘(6) EFFECT OF IMPLEMENTATION OF SECTION
204C.—Upon the implementation of the alternative
milk price support and inventory management pro-
gram provided in section 204C, if required by sec-
tion 204A(d), the support price adjustments re-
quired by this subsection and the minimum price
specified in paragraph (4) shall not apply.’’; and
(4) in subsection (g), by adding at the end the
following new paragraph:
‘‘(4) EFFECT OF IMPLEMENTATION OF SECTION
204C.—Upon the implementation of the alternative
milk price support and inventory management pro-
gram provided in section 204C, if required by sec-
tion 204A(d), the support price reduction required
by this subsection shall not apply.’’.
SEC. 3. ESTABLISHMENT OF THE NATIONAL MILK MARKET-
ING BOARD.
Title II of the Agricultural Act of 1949 (7 U.S.C.
1446 et seq.) is amended by inserting after section 204A,
as added by section 2, the following new section:
‘‘SEC. 204B. NATIONAL MILK MARKETING BOARD.
‘‘(a) ESTABLISHMENT OF BOARD REQUIRED.—
‘‘(1) ESTABLISHMENT.—If the implementation
of the alternative milk price support and inventory
management program provided in section 204C is
approved in the referendum required by section
204A, the Secretary shall establish a National Milk
Marketing Board to implement, administer, and op-
erate the alternative milk price support and inven-
tory management program provided in section 204C.
To the extent practicable, the Board shall be estab-
lished not later than 60 days before the date on
which the alternative milk price support and inven-
tory management program takes effect pursuant to
section 204A(d). If the Board is not established or
capable of administering the alternative milk price
support and inventory management program by that
date, the Secretary shall temporarily operate the
program until the Board is established and oper-
ational.
‘‘(2) BOARD DEFINED.—For purposes of this
section and section 204C, the term ‘Board’ means
the National Milk Marketing Board established
under this section.
‘‘(b) MEMBERSHIP.—The Board shall consist of 15
members appointed by the Secretary as follows:
‘‘(1) Fourteen members, two from each region
specified in subsection (c), appointed by the Sec-
retary from nominees elected as provided in that
subsection.
‘‘(2) One member appointed by the Secretary
from among individuals who have a demonstrable ex-
pertise in the area of milk production, processing, or
marketing.
‘‘(c) NOMINATION
OF
PROPOSED
BOARD
MEM-
BERS.—
‘‘(1) CONDUCT OF NOMINATING ELECTIONS.—
The Secretary shall conduct elections to select nomi-
nees for appointment to the Board. A separate elec-
tion shall be held in each of the seven geographic re-
gions specified in paragraph (2) to elect three nomi-
nees to the Board from each region. The nominating
elections may be conducted by the Secretary in con-
junction with referendum required under section
204A to permit the timely appointment of the Board
before the date on which the alternative milk price
support and inventory management program would
take effect under section 204C.
‘‘(2) BOARD REGIONS.—For purposes of elect-
ing nominees for appointment to the Board, the 48
contiguous States shall be organized into seven geo-
graphic regions as follows:
‘‘(A) California, Oregon, and Washington.
‘‘(B) Arizona, Arkansas, Colorado, Idaho,
Kansas, Montana, Nevada, New Mexico, Okla-
homa, Texas, Utah, and Wyoming.
‘‘(C) Illinois, Iowa, Minnesota, Missouri,
Nebraska, North Dakota, and South Dakota.
‘‘(D) Wisconsin.
‘‘(E) Alabama, Florida, Georgia, Ken-
tucky, Louisiana, Mississippi, North Carolina,
South Carolina, Tennessee, and Virginia.
‘‘(F) Delaware, Indiana, Maryland, Michi-
gan, New Jersey, Ohio, Pennsylvania, and West
Virginia.
‘‘(G) Connecticut, Maine, Massachusetts,
New Hampshire, New York, Rhode Island, and
Vermont.
‘‘(3) PROCEDURE FOR NOMINATIONS.—As soon
as practicable after the date of the enactment of the
Milk Supply Management and Nutrition Assistance
Act of 1993, the Secretary shall solicit the names of
individuals to be included as candidates on the ballot
for the election in each region. Such names may be
submitted by milk producers in the region or by or-
ganizations or other persons that represent milk pro-
ducers in the region, including general farm organi-
zations. The Secretary shall establish such additional
rules for the conduct of these elections as are appro-
priate. Individuals shall be eligible to appear on a
ballot only if the Secretary determines that the indi-
vidual has a demonstrable expertise in the area of
milk production, processing, or marketing.
‘‘(4) VOTING BY PRODUCERS.—
‘‘(A) ELIGIBLE
VOTERS.—The Secretary
shall conduct an election in each region to de-
termine the three nominees eligible for appoint-
ment to the Board from that region. The elec-
tion shall be conducted only among individual
milk producers who have been producing milk
during a representative period, as determined
by the Secretary. Only individual producers
may cast ballots in the election. An organiza-
tion or other person representing milk produc-
ers, including a general farm organization, may
not cast ballots in the election on behalf of milk
producers.
‘‘(B) CASTING
BALLOTS.—The Secretary
shall establish the methods by which ballots
may be cast. Such methods shall include casting
ballots by mail (subject to appropriate safe-
guards) and in person with a representative of
the county office of the Agricultural Stabiliza-
tion and Conservation Service or the Extension
Service.
‘‘(d) APPOINTMENT; REGIONAL BOARD.—
‘‘(1) APPOINTMENT.—The Secretary shall ap-
point two of the three nominees elected from each
region specified in subsection (c) to serve as mem-
bers of the Board for that region.
‘‘(2) REGIONAL BOARD.—The three nominees
elected from each region shall also serve as a Re-
gional Milk Marketing Board for the region from
which the nominees were elected to assist the Board
in administering the alternative milk price support
and inventory management program provided in sec-
tion 204C in that region.
‘‘(e) MEETINGS OF THE BOARD.—
‘‘(1) FIRST MEETING.—Within two weeks after
the Secretary first appoints the members of the
Board under subsection (d), the Board shall convene
for its initial meeting and elect officers.
‘‘(2) OTHER MEETINGS.—The Board shall meet
at the call of the chair, or as requested by the Sec-
retary, but at least once every three months.
‘‘(f) PROCEDURES OF THE BOARD.—
‘‘(1) QUORUM.—A quorum of the Board shall
be eight members.
‘‘(2) RULES OF PROCEDURE AND BYLAWS.—
The Board shall adopt written bylaws and rules of
procedures to govern its operations.
‘‘(3) 
EX
OFFICIO
REPRESENTATION.—The
Board shall notify the Secretary in advance of each
meeting of the Board. The Secretary, or a represent-
ative of the Secretary, shall attend each meeting as
a nonvoting ex officio member of the Board.
‘‘(g) TERMS; COMPENSATION.—
‘‘(1) FULL TERM.—Each person appointed to
the Board shall serve for a four-year term, except
that one of the members initially appointed to the
Board from each region specified in subsection (c)
shall serve a two-year term, as designated by the
Secretary at the time of the appointment. The Sec-
retary may remove for cause a member from the
Board before the expiration of the term of the mem-
ber.
‘‘(2) VACANCIES.—A vacancy on the Board
shall be filled in the same manner as the initial ap-
pointment.
‘‘(3) REIMBURSEMENT
FOR
EXPENSES.—The
members of the Board shall serve without compensa-
tion, but shall be reimbursed for reasonable expenses
incurred in performing their duties as members of
the Board.
‘‘(h) DUTIES.—
‘‘(1) OPERATION
OF
DAIRY
PROGRAM.—The
Board shall be responsible for implementing, admin-
istering, and operating the alternative milk price
support and inventory management program pro-
vided in section 204C.
‘‘(2) MONITORING ACTUAL PRICE RECEIVED BY
PRODUCERS.—The Board may monitor actual prices