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[DOCID: f:h3264ih.txt]






107th CONGRESS
  1st Session
                                H. R. 3264

To terminate all Federal programs relating to price support and supply 
management for milk and to grant the consent of Congress to cooperative 
          efforts by States to manage milk prices and supply.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 8, 2001

 Mr. Peterson of Minnesota (for himself and Mr. Pombo) introduced the 
following bill; which was referred to the Committee on Agriculture, and 
   in addition to the Committee on the Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To terminate all Federal programs relating to price support and supply 
management for milk and to grant the consent of Congress to cooperative 
          efforts by States to manage milk prices and supply.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPEAL OF MILK PRICE SUPPORT PROGRAM AND TERMINATION OF 
              AUTHORITY TO SUPPORT MILK PRICES.

    (a) Repeal of Current Milk Price Support Program.--Section 141 of 
the Agricultural Market Transition Act (7 U.S.C. 7251) is repealed.
    (b) Repeal of Recourse Loan Program for Processors.--Section 142 of 
the Agricultural Market Transition Act (7 U.S.C. 7252(e)) is repealed.
    (c) Prohibition on Future Price Support Activities.--The Secretary 
of Agriculture may not use section 201 of the Agricultural Act of 1949 
(7 U.S.C. 1446) or the general authorities of the Commodity Credit 
Corporation to support the price of milk through the purchase of 
cheese, butter, or nonfat dry milk.

SEC. 2. TERMINATION OF MILK MARKETING ORDERS AND AUTHORITY TO ISSUE 
              SUCH ORDERS.

    (a) Repeal of Existing Orders.--Section 8c of the Agricultural 
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended by striking 
paragraphs (5) and (18) relating to milk and its products.
    (b) Prohibition on Subsequent Orders Regarding Milk.--Paragraph (2) 
of such section is amended--
            (1) by striking ``Milk, fruits'' and inserting ``Fruits''; 
        and
            (2) by inserting ``milk,'' after ``honey,'' in subparagraph 
        (B).
    (c) Conforming Amendments.--(1) Section 2(3) of such Act (7 U.S.C. 
602(3) is amended by striking ``, other than milk and its products,''.
    (2) Section 8c of such Act (7 U.S.C. 608c) is amended--
            (A) in paragraph (6), by striking ``, other than milk and 
        its products,'';
            (B) in paragraph (7)(B), by striking ``(except for milk and 
        cream to be sold for consumption in fluid form)'';
            (C) in paragraph (11)(B), by striking ``Except in the case 
        of milk and its products, orders'' and inserting ``Orders'';
            (D) in paragraph (13)(A), by striking ``, except to a 
        retailer in his capacity as a retailer of milk and its 
        products''; and
            (E) in paragraph (17), by striking the second proviso, 
        which relates to milk orders.
    (3) Section 8d(2) of such Act (7 U.S.C. 608d(2)) is amended by 
striking the second sentence, which relates to information from milk 
handlers.
    (4) Section 10(b)(2) of such Act (7 U.S.C. 610(b)) is amended--
            (A) by striking clause (i);
            (B) by redesignating clauses (ii) and (iii) as clauses (i) 
        and (ii), respectively; and
            (C) in clause (i) (as so redesignated), by striking ``other 
        commodity'' in the first sentence and inserting ``commodity''.
    (5) Section 11 of such Act (7 U.S.C. 611) is amended by striking 
``and milk, and its products,''.
    (6) Section 715 of the Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies Appropriations Act, 1994 
(Public Law 103-111; 107 Stat. 1079; 7 U.S.C. 608d note), is amended by 
striking the third proviso, which relates to information from milk 
handlers.

SEC. 3. CONGRESSIONAL CONSENT TO STATE ESTABLISHMENT OF MINIMUM FLUID 
              MILK PRICE AND OTHER MILK PRICE SUPPORT ACTIVITIES.

    (a) Authority of States To Set Minimum Price for Fluid Milk.--A 
State or compact of States is hereby authorized to establish a minimum 
price for fluid milk produced in that State or compact of States.
    (b) Regulation of Other Milk.--A State or compact of States is also 
authorized to regulate milk produced in that State or compact of States 
and used for manufacturing purposes.

SEC. 4. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
January 1, 2001.
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