
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC7253]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
                    SUBCHAPTER IV--OTHER COMMODITIES
 
                              Part A--Dairy
 
Sec. 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 section 608c of this title, the Secretary 
    shall designate the State of California as a separate Federal milk 
    marketing order. The order covering California shall have the right 
    to reblend and distribute order receipts to recognize quota value.

            (3) Related issues addressed in consolidation

        Among the issues the Secretary is authorized to implement as 
    part of the consolidation of Federal milk marketing orders are the 
    following:
            (A) The use of utilization rates and multiple basing points 
        for the pricing of fluid milk.
            (B) The use of uniform multiple component pricing when 
        developing 1 or more basic formula prices for manufacturing 
        milk.

                     (4) Effect of existing law

        In implementing the consolidation of Federal milk marketing 
    orders and related reforms 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) of this section, 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) of this section not later than 2 years 
        after April 4, 1996.

        (B) Final amendments

            The Secretary shall implement the amendments 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 and implementation of new and amended Federal 
    milk marketing orders. In the event that the Secretary is enjoined 
    or otherwise restrained by a court order from publishing or 
    implementing the consolidation and related reforms under subsection 
    (a) of this section, the length of time for which that injunction or 
    other restraining 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 consolidation required under 
subsection (a)(1) of this section within the time period required under 
subsection (b)(2)(B) of this section (plus any additional period 
provided under subsection (b)(3) of this section), the Secretary may not 
assess or collect assessments from milk producers 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 Service 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 required by subsection (a) of this section;
            (B) describing the efforts underway and the progress made in 
        implementing the reforms required by subsection (a) of this 
        section; and
            (C) containing such recommendations as the Secretary 
        considers appropriate for further improvements and reforms to 
        the Federal 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 specifically 
    refers to this section.

(Pub. L. 104-127, title I, Sec. 143, Apr. 4, 1996, 110 Stat. 915.)


Use of Option 1A as Price Structure for Class I Milk Under Consolidated 
                      Federal Milk Marketing Orders

    Pub. L. 106-113, div. B, Sec. 1000(a)(8) [Sec. 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 
beginning 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 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 Secretary 
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 marketing orders pursuant to section 1000.50 of title 7, Code of 
Federal Regulations, before the effective date specified in subsection 
(b), the minimum prices so announced 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 implementation 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 Agricultural 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 section 8c of the 
    Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
    amendments by the Agricultural 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 (commonly 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 Marketing Orders

    Pub. L. 106-113, div. B, Sec. 1000(a)(8) [Sec. 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 marketing orders, as published in the Federal 
Register on April 2, 1999 (64 Fed. Reg. 16025), do not adequately 
reflect public comment 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) Rulemaking Required.--The Secretary of Agriculture 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 Federal 
milk marketing orders that was published in the 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 authorized by subsections 
(b) and (c) are intended to ensure the timely publication and 
implementation of new pricing 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 implementing a final decision within 
the time period specified 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 period 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 
additional period provided under subsection (d)), 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 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 implemented. 
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 services 
through funds available for the Agricultural Marketing Service of the 
Department.
    ``(f) Implementation of Requirement.--The implementation 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.''
