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106th CONGRESS
2d Session
S. 3198
To provide a pool credit under Federal milk marketing orders for
handlers of certified organic milk used for Class I purposes.
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IN THE SENATE OF THE UNITED STATES
October 12 (legislative day, September 22), 2000
Mr. Jeffords (for himself and Mr. Leahy) introduced the following bill;
which was read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
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A BILL
To provide a pool credit under Federal milk marketing orders for
handlers of certified organic milk used for Class I purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. POOL CREDIT FOR HANDLERS OF ORGANIC MILK.
(a) In General.--Section 8c(5) of the Agricultural Adjustment Act
(7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended by adding at the end the
following:
``(M) Pool credit for handlers of organic milk.--
``(i) Definitions.--In this subparagraph:
``(I) Class i milk price.--The term
`Class I milk price' means the minimum
price payable for milk classified as
Class I milk under an order issued
pursuant to this section.
``(II) Organic milk handler.--The
term `organic milk handler' means--
``(aa) a person that is
considered to be a handler
under an order issued pursuant
to this section to the extent
that the person performs the
functions of a handler with
respect to organic milk; and
``(bb) to the extent
determined necessary by the
Secretary, any other person
that purchases organic milk
directly from a producer of
organic milk.
``(III) Organic milk.--The term
`organic milk' means milk that is
certified as organically produced in
accordance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501
et seq.).
``(IV) Organic milk pay price.--The
term `organic milk pay price' means the
price paid by an organic milk handler
to a producer of organic milk for the
entire volume of milk purchased from
the producer, including the price paid
for transporting the milk to the
organic milk handler.
``(ii) Credit.--In the case of an order
applicable to milk and milk products, an
organic milk handler shall be entitled to
receive a credit against the pool obligation of
the organic milk handler for a month that is
equal to the product obtained by multiplying--
``(I) the quantity of the pool
obligation of the organic milk handler
for the preceding month; and
``(II) the applicable credit factor
for the preceding month determined
under clause (iii).
``(iii) Amount.--Except as provided in
clause (iv), the amount of a credit provided to
an organic milk handler under this subparagraph
shall be based on the amount by which the
organic milk pay price paid by the organic milk
handler for the organic milk exceeds the Class
I milk price in accordance with the following
table:
``If the organic milk pay price The credit factor shall be:
exceeds the Class I milk
price by:
Less than $2.00................
80 percent.
More than $2.00 but not more
than $3.00.
85 percent.
More than $3.00 but not more
than $4.00.
90 percent.
More than $4.00................
95 percent.
``(iv) Limitations.--
``(I) In general.--Except as
provided in subclause (II), the amount
of the pool obligation of an organic
milk handler for organic milk under
this subparagraph shall be not less
than 10 nor more than 50 cents per
hundredweight of organic milk.
``(II) Lower pool obligation for
nonorganic milk.--If the amount of the
pool obligation for milk that is not
organic milk (as calculated under an
order issued pursuant to this section)
is less than the amount of the pool
obligation for organic milk (as
calculated under such an order), the
amount of the pool obligation of an
organic milk handler for organic milk
under this subparagraph shall be equal
to the amount of the pool obligation
for milk that is not organic milk.''.
(b) Regulations.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary of Agriculture shall
promulgate such regulations as are necessary to implement the
amendment made by subsection (a).
(2) Informal rulemaking.--Notwithstanding section 8c(5) of
the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted
with amendments by the Agricultural Marketing Agreement Act of
1937, except as provided in paragraph (3)(A), the Secretary
shall carry out paragraph (1) in accordance with section 553 of
title 5, United States Code.
(3) Procedure.--The promulgation of the regulations and
administration of the amendment made by subsection (a) shall be
made without regard to--
(A) the notice and comment provisions of section
553 of title 5, United States Code;
(B) 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; and
(C) chapter 35 of title 44, United States Code
(commonly known as the ``Paperwork Reduction Act'').
(4) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(c) Effective Date.--The amendment made by subsection (a) takes
effect on the earlier of--
(1) the date on which the Secretary of Agriculture
promulgates final regulations to carry out the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.); or
(2) January 1, 2001.
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