To clarify the obligation of certain producers and handlers of mild to Federal order pools, to apply minimum milk price requirements to certain handlers of Class I milk products in the Arizona-Las Vegas marketing area under certain circumstances, and to exclude Nevada from Federal milk marketing orders.

1. Inserts new text on page 80, between lines 3 and 4

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   Inserted: (a) Study on the Sale of Milk Into California.--Within 90 days, the Secretary shall report to Congress on the economic impacts to California dairy farmers from handlers or processors of Class I milk products in the Las Vegas-Nevada-Arizona region selling milk or milk products into the California state order.

   Inserted: (b) Exemption of Milk Handlers From Minimum Price Requirements.--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 (as amended by subsection (a)), is amended by adding at the end the following:

   Inserted: "(N) Exemption of milk handlers from minimum price requirements.--Notwithstanding any other provision of this subsection, prior to January 1, 2005 no handler with distribution of Class I milk products in the Arizona-Las Vegas marketing area (Order No. 131) or Pacific Northwest Marketing Order (Order No. 124) shall be exempt during any month from any minimum milk price requirement established by the Secretary under this subsection if the total distribution of Class I products within the Arizona-Las Vegas marketing area or the Pacific Northwest Marketing area of any handler's own farm production exceeds the lesser of--

   Inserted: "(i) 3 percent of the total quantity of Class I products distributed in the Arizona-Las Vegas marketing area (Order No. 131); or the Pacific Northwest Marketing area (Order No. 124); or

   Inserted: "(ii) 5,000,000 pounds.".

   Inserted: (c) Exclusion of Clark County, Nevada From Federal Milk Marketing Orders.--

   Inserted: (1) In general.--Section 8c(11)(C) the Agricultural Adjustment Act (7 U.S.C. 608c(11)(C)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking the last sentence and inserting the following: "In the case of milk and its products, Clark County, Nevada shall not be within a marketing area defined in any order issued under this section.".

   Inserted: (2) Informal rulemaking.--The Secretary of Agriculture may modify an order issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to implement the amendment made by paragraph (1) by promulgating regulations, without regard to sections 556 and 557 of title 5, United States Code.

   Original wording

   On page 80, between lines 3 and 4, insert the following:

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As printed