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. Adds SEC. 7__. FEDERAL MILK MARKETING on page 80, between lines 3 and 4

   Adds a sectionPrinted page

   Inserted: SEC. 7__. FEDERAL MILK MARKETING.

   Inserted: (a) Exemption of Milk Producers and Handlers From Obligation to Pool Milk.--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:

   Inserted: "(M) Obligation of certain milk producers and handlers to pool milk.--

   Inserted: "(i) Definition of covered producer or handler.--

   Inserted: "(I) In general.--In this subparagraph, the term 'covered producer or handler' means a producer-handler, producer operating as a handler, or handler of Class I milk products--

   Inserted: "(aa) a plant of which is located within the boundaries of a marketing area (as those boundaries are in effect as of the date of enactment of this subparagraph) and covered by an order issued pursuant to this paragraph;

   Inserted: "(bb) that has packaged fluid milk product dispositions, or sales of packaged fluid milk products to other plants, in a milk marketing area located in a State that enforces minimum prices to handlers for milk purchases; and

   Inserted: "(cc) that is not otherwise obligated by an order under this paragraph, or a regulated milk pricing plan operated by a State, to pay minimum class prices for the raw milk presented by those milk dispositions or sales.

   Inserted: "(II) Exclusions.--The term 'covered producer or handler' does not include--

   Inserted: "(aa) a handler that operates an exempt plant (as defined in section 1000.8(e) of title 7, Code of Federal Regulations (as in effect on the date of enactment of this subparagraph)); or

   Inserted: "(bb) a producer-handler that has route dispositions, and sales to other plants, of packaged fluid milk products equaling less than 6,000,000 pounds of milk in any 30-day period.**

   Inserted: "(ii) Requirement.--Notwithstanding any other provision of this subsection and without limiting the authority of the Secretary to otherwise regulate a noncovered producer or handler, a covered producer or handler shall be subject to all minimum price requirements of the Federal milk marketing order in which the plant of the covered producer or handler is located, at Federal order class prices for the county in which the plant is located.".

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   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, no handler with distribution of Class I milk products in the Arizona-Las Vegas marketing area (Order No. 131) 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 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

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

   Inserted: (c) Exclusion of 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, no county located within the State of Nevada shall 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