IB
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. THUR-
MAN, Mr. HUTCHINSON, Mrs. CLAYTON, Mr. HOUGHTON, Mr. SKEEN,
Mr. BOEHLERT, Mr. WALSH, Mr. NORWOOD, Mr. ADERHOLT, Mr. CAL-
LAHAN, Mr. CRAMER, Mr. HILLIARD, Mr. RILEY, Mr. DICKEY, Mr. PAS-
TOR, 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. CAN-
ADY 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. PICK-
ERING, Mr. SHOWS, Mr. TAYLOR of Mississippi, Mr. THOMPSON of Mis-
sissippi, 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. RAN-
GEL, 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. CLY-
BURN, 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. SAND-
ERS, 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 Caro-
lina, 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 Massachu-
setts, 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. DUN-
CAN, 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 Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REQUIRED USE OF OPTION 1A AS PRICE STRUC-
TURE FOR CLASS I MILK UNDER CONSOLI-
DATED 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 Sec-
retary 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 or-
ders specified in section 738 of the Agriculture, Rural De-
velopment, 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 DE-
VELOP 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 or-
ders, as published in the Federal Register on April 2, 1999
(64 Fed. Reg. 16025), do not adequately reflect public com-
ment 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 op-
portunity 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 au-
thorized by this subsection are intended to ensure the
timely publication and implementation of new pric-
ing formulas for Class III and Class IV milk. In the
event that the Secretary is enjoined or otherwise re-
strained 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 ef-
fective shall be added to the time limitations specified
in paragraph (2) thereby extending those time limita-
tions 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 pe-
riod 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 Ag-
ricultural Marketing Agreement Act of 1937, for marketing
order administration and services provided under such sec-
tion after the end of that period until the pricing formulas
are implemented. The Secretary may not reduce the level