II 113th CONGRESS 1st Session S. 670 IN THE SENATE OF THE UNITED STATES April 9, 2013 Mrs. Gillibrand (for herself and Ms. Collins ) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To improve Federal dairy programs.

1. Short title This Act may be cited as the Dairy Pricing Reform Act of 2013 . 2. Definition of Secretary In this Act, the term Secretary means the Secretary of Agriculture. 3. Federal milk marketing order program pre-hearing procedure for Class III pricing (a) In general The Secretary shall use the pre-hearing procedure described in this section to determine to conduct a hearing to consider alternative formulas for Class III milk product pricing under section 8c of the Agricultural Adjustment Act ( 7 U.S.C. 608c ), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937. (b) Requests for proposals (1) In general Not later than 60 days after the date of enactment of this Act, the Secretary shall issue a request for the submission by interested persons of preliminary proposals for replacement of the Class III milk product pricing formula. (2) Preliminary proposals Preliminary proposals submitted under paragraph (1)— (A) may include competitive pay price formulas; and (B) shall provide sufficient detail in concept to serve as the basis for the convening by the Secretary of a public information session for review and discussion in accordance with section 900.24 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act), but need not conform with the other procedural requirements of part 900 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act). (c) Pre-Hearing information session review (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary shall convene a public information session under section 900.24 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act). (2) Requirements The Secretary shall review all preliminary proposals submitted under this section that are of sufficient conceptual detail to allow for the review described in paragraph (1). (d) Hearing determination (1) In general Not later than 90 days after the conduct of the public information session under subsection (c), the Secretary shall determine whether to conduct a formal hearing in accordance with part 900 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act). (2) Hearing to be conducted If the Secretary determines under paragraph (1) to conduct a formal hearing, the Secretary shall issue notice and conduct the hearing in accordance with part 900 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act). (3) Hearing not to be conducted If the Secretary determines under paragraph (1) not to conduct a formal hearing, not later than 90 days after that determination, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition and Forestry of the Senate a written report that explains the basis for the decision. (e) Proceeding with a hearing at any time Consistent with the purposes of this section, the Secretary may dispense with the pre-hearing requirements of this section and initiate at any time a formal hearing under part 900 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act). 4. Federal milk marketing orders Not later than 180 days after the date of enactment of this Act, the Secretary shall conduct hearings— (1) to analyze the implications of transitioning from a 4-class system for milk products to a 2-class system; (2) to explore methods to improve signals for price discovery in the short- and long-term to allow dairy producers to better use risk management tools; and (3) to assess whether a 2-class competitive pay pricing system for milk products would be more or less transparent than the system in effect as of the day before the date of enactment of this Act.