7 U.S.C. § 9071 — Milk donation program

Page 2290 TITLE 7—AGRICULTURE § 9059 mium payments for participation in dairy mar- gin coverage. (Pub. L. 113–79, title I, § 1408, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, § 1401(k)(9), Dec. 20, 2018, 132 Stat. 4517.) Editorial Notes AMENDMENTS 2018—Subsec. (a)(2). Pub. L. 115–334, § 1401(k)(9)(A), substituted ‘‘dairy margin coverage’’ for ‘‘margin pro- tection’’. Subsec. (b). Pub. L. 115–334, § 1401(k)(9)(B), substituted ‘‘dairy margin coverage’’ for ‘‘the margin protection program’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title. § 9059. Duration Dairy margin coverage shall end on December 31, 2025. (Pub. L. 113–79, title I, § 1409, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, § 1401(l), Dec. 20, 2018, 132 Stat. 4518; Pub. L. 118–22, div. B, title I, § 102(c)(2)(B)(i), Nov. 17, 2023, 137 Stat. 115; Pub. L. 118–158, div. D, § 4101(c)(4)(A)(i), Dec. 21, 2024, 138 Stat. 1768.) Editorial Notes AMENDMENTS 2024—Pub. L. 118–158 substituted ‘‘December 31, 2025’’ for ‘‘December 31, 2024’’. 2023—Pub. L. 118–22 substituted ‘‘2024’’ for ‘‘2023’’. 2018—Pub. L. 115–334 substituted ‘‘Dairy margin cov- erage’’ for ‘‘The margin protection program’’ and ‘‘2023’’ for ‘‘2018’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2024 AMENDMENT Amendment by Pub. L. 118–158 to be applied and ad- ministered as if enacted on Sept. 30, 2024, see section 4101(g) of Pub. L. 118–158, set out in an Extension of Ag- ricultural Programs note under section 9001 of this title. EFFECTIVE DATE OF 2023 AMENDMENT Amendment by Pub. L. 118–22 to be applied and ad- ministered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agri- cultural Programs note under section 9001 of this title. EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title. § 9060. Administration and enforcement (a) In general The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out dairy margin coverage. (b) Reconstitution The Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the purpose of the dairy pro- ducer receiving dairy margin coverage pay- ments. (c) Administrative appeals Using authorities under section 1308(h) of this title and subtitle H of the Department of Agri- culture Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary shall promulgate regula- tions to provide for administrative appeals of decisions of the Secretary that are adverse to participants of dairy margin coverage. (Pub. L. 113–79, title I, § 1410, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, § 1401(k)(10), Dec. 20, 2018, 132 Stat. 4518.) Editorial Notes REFERENCES IN TEXT The Department of Agriculture Reorganization Act, referred to in subsec. (c), probably means the Depart- ment of Agriculture Reorganization Act of 1994 which is title II of Pub. L. 103–354, Oct. 13, 1994, 108 Stat. 3209. Subtitle H of the Act is classified principally to sub- chapter VIII (§ 6991 et seq.) of chapter 98 of this title. For complete classification of this Act to the Code, see Tables. CODIFICATION Section is comprised of section 1410 of Pub. L. 113–79. Subsec. (d) of section 1410 of Pub. L. 113–79 amended section 7253 of this title. AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 1401(k)(10)(A), sub- stituted ‘‘dairy margin coverage’’ for ‘‘the margin pro- tection program’’. Subsec. (b). Pub. L. 115–334, § 1401(k)(10)(B), sub- stituted ‘‘dairy margin coverage payments’’ for ‘‘mar- gin protection payments’’. Subsec. (c). Pub. L. 115–334, § 1401(k)(10)(A), sub- stituted ‘‘dairy margin coverage’’ for ‘‘the margin pro- tection program’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title. PART B—MILK DONATION PROGRAM Editorial Notes CODIFICATION Pub. L. 115–334, title I, § 1404(b)(1), Dec. 20, 2018, 132 Stat. 4519, substituted ‘‘Milk Donation Program’’ for ‘‘Dairy Product Donation Program’’ in part heading. § 9071. Milk donation program (a) Definitions In this section: (1) Eligible dairy organization The term ‘‘eligible dairy organization’’ means a dairy farmer (either individually or as part of a cooperative), or a dairy processor, who— (A) accounts to a Federal milk marketing order marketwide pool; and (B) incurs qualified expenses under sub- section (e). (2) Eligible distributor The term ‘‘eligible distributor’’ means a public or private nonprofit organization that distributes donated eligible milk. Page 2291 TITLE 7—AGRICULTURE § 9071 (3) Eligible milk The term ‘‘eligible milk’’ means Class I fluid milk products produced and processed in the United States. (4) Eligible partnership The term ‘‘eligible partnership’’ means a partnership between an eligible dairy organi- zation and an eligible distributor. (5) Participating partnership The term ‘‘participating partnership’’ means an eligible partnership for which the Sec- retary has approved a donation and distribu- tion plan for eligible milk under subsection (c)(2). (b) Program required; purposes Not later than 180 days after December 20, 2018, the Secretary shall establish and admin- ister a milk donation program for the purposes of— (1) encouraging the donation of eligible milk; (2) providing nutrition assistance to individ- uals in low-income groups; and (3) reducing food waste. (c) Donation and distribution plans (1) In general To be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that— (A) describes the process that the eligible partnership will use for the donation, proc- essing, transportation, temporary storage, and distribution of eligible milk; (B) includes an estimate of the quantity of eligible milk that the eligible partnership will donate each year, based on— (i) preplanned donations; and (ii) contingency plans to address unan- ticipated donations; and (C) describes the rate at which the eligible partnership will be reimbursed, which shall be based on a percentage of the limitation described in subsection (e)(2), not to exceed 100 percent. (2) Review and approval Not less frequently than annually, the Sec- retary shall— (A) review donation and distribution plans submitted under paragraph (1); and (B) determine whether to approve or dis- approve each of those donation and distribu- tion plans. (d) Reimbursement (1) In general On receipt of appropriate documentation under paragraph (2), the Secretary shall reim- burse an eligible dairy organization that is a member of a participating partnership on a regular basis for qualified expenses described in subsection (e). (2) Documentation (A) In general An eligible dairy organization shall submit to the Secretary such documentation as the Secretary may require to demonstrate the qualified expenses described in subsection (e) of the eligible dairy organization. (B) Verification The Secretary may verify the accuracy of documentation submitted under subpara- graph (A) by spot checks and audits. (3) Retroactive reimbursement In providing reimbursements under para- graph (1), the Secretary may provide reim- bursements for qualified expenses incurred be- fore the date on which the donation and dis- tribution plan for the applicable participating partnership was approved by the Secretary. (e) Qualified expenses (1) In general The amount of a reimbursement under sub- section (d) shall be an amount equal to the product of— (A) the quantity of eligible milk donated by the eligible dairy organization under a donation and distribution plan approved by the Secretary under subsection (c); and (B) subject to the limitation under para- graph (2), the rate described in that donation and distribution plan under subsection (c)(1)(C). (2) Limitation Expenses eligible for reimbursement under subsection (d) shall not exceed the value that an eligible dairy organization incurred by ac- counting to the Federal milk marketing order pool at the difference in the Class I milk value and the lowest classified price for the applica- ble month (either Class III milk or Class IV milk). (f) Preapproval (1) In general The Secretary shall— (A) establish a process for an eligible part- nership to apply for preapproval of donation and distribution plans under subsection (c); and (B) not less frequently than annually, preapprove an amount for qualified expenses described in subsection (e) that the Sec- retary will allocate for reimbursement under each donation and distribution plan preapproved under subparagraph (A), based on an assessment of— (i) the feasibility of the plan; and (ii) the extent to which the plan ad- vances the purposes described in sub- section (b). (2) Preference In preapproving amounts for reimbursement under paragraph (1)(B), the Secretary shall give preference to eligible partnerships that will provide funding and in-kind contributions in addition to the reimbursements. (3) Adjustments (A) In general The Secretary shall adjust or increase amounts preapproved for reimbursement under paragraph (1)(B) based on performance and demand. Page 2292 TITLE 7—AGRICULTURE § 9071a (B) Requests for increase (i) In general The Secretary shall establish a proce- dure for a participating partnership to re- quest an increase in the amount preapproved for reimbursement under paragraph (1)(B) based on changes in con- ditions. (ii) Interim approval; incremental increase The Secretary may provide an interim approval of an increase requested under clause (i) and an incremental increase in the amount of reimbursement to the appli- cable participating partnership to allow time for the Secretary to review the re- quest without interfering with the dona- tion and distribution of eligible milk by the participating partnership. (g) Prohibition on resale of products (1) In general An eligible distributor that receives eligible milk donated under this section may not sell the products back into commercial markets. (2) Prohibition on future participation An eligible distributor that the Secretary determines has violated paragraph (1) shall not be eligible for any future participation in the program established under this section. (h) Administration The Secretary shall publicize opportunities to participate in the program established under this section. (i) Reviews The Secretary shall conduct appropriate re- views or audits to ensure the integrity of the program established under this section. (j) Funding Of the funds of the Commodity Credit Corpora- tion, the Secretary shall use to carry out this section $9,000,000 for fiscal year 2019, and $5,000,000 for each fiscal year thereafter, to re- main available until expended. (Pub. L. 113–79, title I, § 1431, as added Pub. L. 115–334, title I, § 1404(b)(1), Dec. 20, 2018, 132 Stat. 4519.) Editorial Notes PRIOR PROVISIONS A prior section 9071, Pub. L. 113–79, title I, § 1431, Feb. 7, 2014, 128 Stat. 695, related to dairy product donation program, prior to repeal by Pub. L. 115–334, title I, § 1404(a), Dec. 20, 2018, 132 Stat. 4519. § 9071a. Dairy donation program (a) Definitions In this section: (1) Eligible dairy organization The term ‘‘eligible dairy organization’’ has the meaning given the term in section 9071(a) of this title. (2) Eligible dairy product The term ‘‘eligible dairy product’’ means a product primarily made from milk, including fluid milk, that is produced and processed in the United States. (3) Eligible distributor The term ‘‘eligible distributor’’ means a public or private nonprofit organization that distributes donated eligible dairy products to recipient individuals and families. (4) Eligible partnership The term ‘‘eligible partnership’’ means a partnership between an eligible dairy organi- zation and an eligible distributor. (b) Establishment and purposes Not later than 60 days after December 27, 2020, the Secretary shall establish and administer a dairy donation program for the purposes of— (1) facilitating the timely donation of eligi- ble dairy products; and (2) preventing and minimizing food waste. (c) Donation and distribution plans (1) In general To be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that describes the process that the eligible partnership will use for the donation, processing, transportation, tem- porary storage, and distribution of eligible dairy products. (2) Review and approval (A) In general Not later than 15 business days after re- ceiving a plan described in paragraph (1), the Secretary shall— (i) review that plan; and (ii) issue an approval or disapproval of that plan. (B) Emergency and disaster-related prioritization (i) In general In receiving and reviewing a donation and distribution plan submitted under paragraph (1), the Secretary shall deter- mine whether an emergency or disaster was a substantial factor in the submission, including— (I) a declared or renewed public health emergency under section 247d of title 42; and (II) a disaster designated by the Sec- retary. (ii) Priority review On making an affirmative determination under clause (i) with respect to a donation and distribution plan submitted under paragraph (1), the Secretary shall give pri- ority to the approval or disapproval of that plan. (d) Reimbursement (1) In general On receipt of appropriate documentation under paragraph (3), the Secretary shall reim- burse an eligible dairy organization that is a member of an eligible partnership for which the Secretary has approved a donation and