7 U.S.C. § 7253 — Consolidation and reform of Federal milk

Page 1983 TITLE 7—AGRICULTURE § 7253 204(h)(2) of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in effect on the day be- fore the amendment made by subsection (g), in the price of milk received by a producer dur- ing calendar year 1995 or 1996, if the producer provides evidence that the producer did not in- crease marketings in calendar year 1995 or 1996 when compared to calendar year 1994 or 1995, respectively. (2) Exception This subsection shall not apply with respect to a producer for a particular calendar year if the producer has already received a refund under section 204(h) of the Agricultural Act of 1949 for the same fiscal year before the effec- tive date of this section. (3) Treatment of refund A refund under this subsection shall not be considered as any type of price support or pay- ment for purposes of sections 3811 and 3821 of title 16. (f) Commodity Credit Corporation The Secretary shall carry out the program au- thorized by this section through the Commodity Credit Corporation. (g) Omitted (h) Period of effectiveness This section (other than subsection (g)) shall be effective only during the period beginning on the first day of the first month beginning after April 4, 1996, and ending on May 31, 2002. The program authorized by this section shall termi- nate on May 31, 2002, and shall be considered to have expired notwithstanding section 907 of title 2. (Pub. L. 104–127, title I, § 141, Apr. 4, 1996, 110 Stat. 914; Pub. L. 106–78, title VIII, § 807(a), Oct. 22, 1999, 113 Stat. 1181; Pub. L. 106–387, § 1(a) [title VII, § 742(a)], Oct. 28, 2000, 114 Stat. 1549, 1549A–35; Pub. L. 107–76, title VII, § 772(a), Nov. 28, 2001, 115 Stat. 745.) Editorial Notes REFERENCES IN TEXT Section 204 of the Agricultural Act of 1949, referred to in subsec. (e)(1), (2), was classified to section 1446e of this title prior to repeal by subsec. (g) of this section. See Codification note below. CODIFICATION Section is comprised of section 141 of Pub. L. 104–127. Subsec. (g) of section 141 of Pub. L. 104–127 repealed sec- tion 1446e of this title and enacted provisions set out as a note under section 1446e of this title. AMENDMENTS 2001—Subsec. (b)(5). Pub. L. 107–76, § 772(a)(1), added par. (5). Subsec. (h). Pub. L. 107–76, § 772(a)(2), substituted ‘‘May 31, 2002’’ for ‘‘December 31, 2001’’ in two places. 2000—Subsec. (b)(4). Pub. L. 106–387, § 1(a) [title VII, § 742(a)(1)], substituted ‘‘through 2001’’ for ‘‘and 2000’’. Subsec. (h). Pub. L. 106–387, § 1(a) [title VII, § 742(a)(2)], substituted ‘‘2001’’ for ‘‘2000’’ in two places. 1999—Subsec. (b)(4). Pub. L. 106–78, § 807(a)(1), sub- stituted ‘‘each of calendar years 1999 and 2000’’ for ‘‘cal- endar year 1999’’. Subsec. (h). Pub. L. 106–78, § 807(a)(2), substituted ‘‘2000’’ for ‘‘1999’’ in two places. § 7252. Repealed. Pub. L. 107–76, title VII, § 772(b), Nov. 28, 2001, 115 Stat. 745 Section, Pub. L. 104–127, title I, § 142, Apr. 4, 1996, 110 Stat. 915; Pub. L. 106–78, title VIII, § 807(b), Oct. 22, 1999, 113 Stat. 1181; Pub. L. 106–387, § 1(a) [title VII, § 742(b)], Oct. 28, 2000, 114 Stat. 1549, 1549A–35, related to recourse loan program for commercial processors of dairy prod- ucts. § 7253. Consolidation and reform of Federal milk marketing orders (a) Amendment of orders (1) Required consolidation The Secretary shall amend Federal milk marketing orders issued under section 608c of this title to limit the number of Federal milk marketing orders to not less than 10 and not more than 14 orders. (2) Inclusion of California as separate order Upon the petition and approval of California dairy producers in the manner provided in sec- tion 608c of this title, the Secretary shall des- ignate the State of California as a separate Federal milk marketing order. The order cov- ering California shall have the right to reblend and distribute order receipts to recognize quota value. Subsection (b) does not apply to the authority of the Secretary under this sub- section. (3) Related issues addressed in consolidation Among the issues the Secretary is author- ized to implement as part of the consolidation of Federal milk marketing orders are the fol- lowing: (A) The use of utilization rates and mul- tiple basing points for the pricing of fluid milk. (B) The use of uniform multiple compo- nent pricing when developing 1 or more basic formula prices for manufacturing milk. (4) Effect of existing law In implementing the consolidation of Fed- eral milk marketing orders and related re- forms under this subsection, the Secretary may not consider, or base any decision on, the table contained in section 608c(5)(A) of this title. (b) Expedited process (1) Use of informal rulemaking To implement the consolidation of Federal milk marketing orders and related reforms under subsection (a), the Secretary shall use the notice and comment procedures provided in section 553 of title 5. (2) Time limitations (A) Proposed amendments The Secretary shall announce the proposed amendments to be made under subsection (a) not later than 2 years after April 4, 1996. (B) Final amendments The Secretary shall implement the amend- ments not later than 3 years after April 4, 1996. (3) Effect of court order The actions authorized by this subsection are intended to ensure the timely publication Page 1984 TITLE 7—AGRICULTURE § 7253 and implementation of new and amended Fed- eral milk marketing orders. In the event that the Secretary is enjoined or otherwise re- strained by a court order from publishing or implementing the consolidation and related reforms under subsection (a), the length of time for which that injunction or other re- straining order is effective shall be added to the time limitations specified in paragraph (2) thereby extending those time limitations 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 consolidate orders If the Secretary fails to implement the con- solidation required under subsection (a)(1) with- in the time period required under subsection (b)(2)(B) (plus any additional period provided under subsection (b)(3)), the Secretary may not assess or collect assessments from milk pro- ducers or handlers under such section 608c of this title for marketing order administration and services provided under such section after the end of that period until the consolidation is completed. The Secretary may not reduce the level of services provided under the section on account of the prohibition against assessments, but shall rather cover the cost of marketing order administration and services through funds available for the Agricultural Marketing Serv- ice of the Department. (d) Report regarding further reforms (1) Report required Not later than April 1, 1997, the Secretary shall submit to Congress a report— (A) reviewing the Federal milk marketing order system established pursuant to section 608c of this title in light of the reforms re- quired by subsection (a); (B) describing the efforts underway and the progress made in implementing the re- forms required by subsection (a); and (C) containing such recommendations as the Secretary considers appropriate for fur- ther improvements and reforms to the Fed- eral milk marketing order system. (2) Effect of other laws Any limitation imposed by Act of Congress on the conduct or completion of reports to Congress shall not apply to the report required under this section, unless the limitation spe- cifically refers to this section. (Pub. L. 104–127, title I, § 143, Apr. 4, 1996, 110 Stat. 915; Pub. L. 113–79, title I, § 1410(d), Feb. 7, 2014, 128 Stat. 693.) Editorial Notes AMENDMENTS 2014—Subsec. (a)(2). Pub. L. 113–79 inserted at end ‘‘Subsection (b) does not apply to the authority of the Secretary under this subsection.’’ Statutory Notes and Related Subsidiaries USE OF OPTION 1A AS PRICE STRUCTURE FOR CLASS I MILK UNDER CONSOLIDATED FEDERAL MILK MAR- KETING ORDERS Pub. L. 106–113, div. B, § 1000(a)(8) [§ 1], Nov. 29, 1999, 113 Stat. 1536, 1501A–517, provided that: ‘‘(a) FINAL RULE DEFINED.—In this section, the term ‘final rule’ means the final rule for the consolidation and reform of Federal milk marketing orders that was published in the Federal Register on September 1, 1999 (64 Fed. Reg. 47897–48021), to comply with section 143 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7253). ‘‘(b) IMPLEMENTATION OF FINAL RULE FOR MILK ORDER REFORM.—Subject to subsection (c), the final rule shall take effect, and be implemented by the Secretary of Agriculture, on the first day of the first month begin- ning at least 30 days after the date of the enactment of this Act [Nov. 29, 1999]. ‘‘(c) USE OF OPTION 1A FOR PRICING CLASS I MILK.—In lieu of the Class I price differentials specified in the final rule, the Secretary of Agriculture shall price fluid or Class I milk under the Federal milk marketing or- ders 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 modifica- tions to such Class I differentials made by the Sec- retary through April 2, 1999. ‘‘(d) EFFECT OF PRIOR ANNOUNCEMENT OF MINIMUM PRICES.—If the Secretary of Agriculture announces minimum prices for milk under Federal milk mar- keting orders pursuant to section 1000.50 of title 7, Code of Federal Regulations, before the effective date speci- fied in subsection (b), the minimum prices so an- nounced before that date shall be the only applicable minimum prices under Federal milk marketing orders for the month or months for which the prices have been announced. ‘‘(e) IMPLEMENTATION OF REQUIREMENT.—The imple- mentation of the final rule, as modified by subsection (c), shall not be subject to any of the following: ‘‘(1) The notice and hearing requirements of section 8c(3) of the Agricultural Adjustment Act (7 U.S.C. 608c(3)), reenacted with amendments by the Agricul- tural Marketing Agreement Act of 1937, or the notice and comment provisions of section 553 of title 5, United States Code. ‘‘(2) A referendum conducted by the Secretary of Agriculture pursuant to subsections (17) or (19) of sec- tion 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricul- tural Marketing Agreement Act of 1937. ‘‘(3) The Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking. ‘‘(4) Chapter 35 of title 44, United States Code (com- monly known as the Paperwork Reduction Act). ‘‘(5) Any decision, restraining order, or injunction issued by a United States court before the date of the enactment of this Act [Nov. 29, 1999].’’ FURTHER RULEMAKING TO DEVELOP PRICING METHODS FOR CLASS III AND CLASS IV MILK UNDER MAR- KETING ORDERS Pub. L. 106–113, div. B, § 1000(a)(8) [§ 2], Nov. 29, 1999, 113 Stat. 1536, 1501A–518, provided that: ‘‘(a) CONGRESSIONAL FINDING.—The Class III and Class IV milk pricing formulas included in the final decision for the consolidation and reform of Federal milk mar- keting orders, as published in the Federal Register on April 2, 1999 (64 Fed. Reg. 16025), do not adequately re- flect public comment on the original proposed rule pub- lished 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 rule- making is merited. ‘‘(b) RULEMAKING REQUIRED.—The Secretary of Agri- culture shall conduct rulemaking, on the record after an opportunity for an agency hearing, to reconsider the Class III and Class IV milk pricing formulas included in the final rule for the consolidation and reform of Fed- eral milk marketing orders that was published in the Page 1985 TITLE 7—AGRICULTURE § 7256 1 See Codification note below. 1 So in original. Probably should be preceded by ‘‘of’’. Federal Register on September 1, 1999 (64 Fed. Reg. 47897–48021). ‘‘(c) TIME PERIOD FOR RULEMAKING.—On December 1, 2000, the Secretary of Agriculture shall publish in the Federal Register a final decision on the Class III and Class IV milk pricing formulas. The resulting formulas shall take effect, and be implemented by the Secretary, on January 1, 2001. ‘‘(d) EFFECT OF COURT ORDER.—The actions author- ized by subsections (b) and (c) 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 of Agriculture is enjoined or otherwise restrained by a court order from imple- menting a final decision within the time period speci- fied in subsection (c), the length of time for which that injunction or other restraining order is effective shall be added to the time limitations specified in subsection (c) thereby extending those time limitations by a pe- riod of time equal to the period of time for which the injunction or other restraining order is effective. ‘‘(e) FAILURE TO TIMELY COMPLETE RULEMAKING.—If the Secretary of Agriculture fails to implement new Class III and Class IV milk pricing formulas within the time period required under subsection (c) (plus any ad- ditional period provided under subsection (d)), the Sec- retary may not assess or collect assessments from milk producers or handlers under section 8c of the Agricul- tural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, for marketing order administration and services provided under such section after the end of that period until the pricing formulas are imple- mented. The Secretary may not reduce the level of services provided under that section on account of the prohibition against assessments, but shall rather cover the cost of marketing order administration and serv- ices through funds available for the Agricultural Mar- keting Service of the Department. ‘‘(f) IMPLEMENTATION OF REQUIREMENT.—The imple- mentation of the final decision on new Class III and Class IV milk pricing formulas shall not be subject to congressional review under chapter 8 of title 5, United States Code.’’ § 7254. Effect on fluid milk standards in State of California Nothing in this Act or any other provision of law shall be construed to preempt, prohibit, or otherwise limit the authority of the State of California, directly or indirectly, to establish or continue to effect any law, regulation, or re- quirement regarding— (1) the percentage of milk solids or solids not fat in fluid milk products sold at retail or marketed in the State of California; or (2) the labeling of such fluid milk products with regard to milk solids or solids not fat. (Pub. L. 104–127, title I, § 144, Apr. 4, 1996, 110 Stat. 917.) § 7255. Milk manufacturing marketing adjust- ment (a) Maximum allowances established No State shall provide for a manufacturing al- lowance for the processing of milk in excess of— (1) $1.65 per hundredweight of milk for milk manufactured into butter and nonfat dry milk; and (2) $1.80 per hundredweight of milk for milk manufactured into cheese. (b) ‘‘Manufacturing allowance’’ defined In this section, the term ‘‘manufacturing al- lowance’’ means— (1) the amount by which the product price value of butter and nonfat dry milk manufac- tured from a hundred pounds of milk con- taining 3.5 pounds of butterfat and 8.7 pounds of milk solids not fat resulting from a State’s yield and product price formulas exceeds the class price for the milk used to produce those products; or (2) the amount by which the product price value of cheese manufactured from a hundred pounds of milk containing 3.5 pounds of but- terfat and 8.7 pounds of milk solids not fat re- sulting from a State’s yield and product price formulas exceeds the class price for the milk used to produce cheese. (c) Effect of violation If the Secretary determines following a hear- ing that a State has in effect a manufacturing allowance that exceeds the manufacturing al- lowance authorized in subsection (a), the Sec- retary shall suspend purchases of cheddar cheese, butter, and nonfat dry milk produced in that State until such time as the State complies with such subsection. (d) Effective date; implementation This section (other than subsection (e) 1) shall be effective during the period beginning on the first day of the first month beginning after April 4, 1996, and ending on December 31, 1999. During that period, the Secretary may exercise the au- thority provided to the Secretary under this sec- tion without regard to the issuance of regula- tions intended to carry out this section. (Pub. L. 104–127, title I, § 145, Apr. 4, 1996, 110 Stat. 917.) Editorial Notes CODIFICATION Section is comprised of section 145 of Pub. L. 104–127. Subsec. (e) of section 145 of Pub. L. 104–127 repealed sec- tion 1446e–1 of this title and enacted provisions set out as a note under section 1446e–1 of this title. § 7256. Northeast Interstate Dairy Compact Congress hereby consents to the Northeast Interstate Dairy Compact entered into among the States of Connecticut, Maine, Massachu- setts, New Hampshire, Rhode Island and Vermont as specified in section 1(b) Senate 1 Joint Resolution 28 of the 104th Congress, as placed on the calendar of the Senate, subject to the following conditions: (1) Finding of compelling public interest Based upon a finding by the Secretary of a compelling public interest in the Compact re- gion, the Secretary may grant the States that have ratified the Northeast Interstate Dairy Compact, as of April 4, 1996, the authority to implement the Northeast Interstate Dairy Compact. (2) Limitation on manufacturing price The Northeast Interstate Dairy Compact Commission shall not regulate Class II, Class III, or Class III–A milk used for manufacturing