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.

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

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REPEAL OF CURRENT MILK PRICE SUPPORT PROGRAM- Section 141 of the Agricultural Market Transition Act (7 U.S.C. 7251) is repealed.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OF RECOURSE LOAN PROGRAM FOR PROCESSORS- Section 142 of the Agricultural Market Transition Act (7 U.S.C. 7252(e)) is repealed.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.

END