1.Short title; table of
contents
(a)This Act may be cited
as the Dairy Security Act of
2011
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Dairy Producer Margin Protection and Dairy Market
Stabilization Programs
Sec. 101. Definitions.
Sec. 102. Calculation of average feed cost and actual dairy
producer margins.
Subtitle A—Dairy Producer Margin Protection
Program
Sec. 111. Establishment of dairy producer margin protection
program.
Sec. 112. Eligibility and registration of dairy producers for
margin protection program.
Sec. 113. Production history and annual production quantity of
participating dairy producers.
Sec. 114. Basic margin protection.
Sec. 115. Supplemental margin protection.
Sec. 116. Effect of failure to pay administrative fees or
premiums.
Sec. 117. No payment limitations.
Subtitle B—Dairy Market Stabilization Program
Sec. 131. Establishment of dairy market stabilization
program.
Sec. 132. Threshold for implementation and reduction in dairy
producer payments.
Sec. 133. Producer milk marketings information.
Sec. 134. Calculation and collection of reduced dairy producer
payments.
Sec. 135. Remitting monies to Commodity Credit
Corporation.
Sec. 136. Suspension of reduced payment
requirement.
Sec. 137. Audit requirements.
Sec. 138. Board of directors.
Subtitle C—Commodity Credit Corporation
Sec. 151. Use of Commodity Credit Corporation.
Subtitle D—Duration
Sec. 161. Duration.
Title II—Federal Milk Marketing Order Reform
Sec. 201. Required amendments to Federal milk marketing
orders.
Sec. 202. Amendment process.
Sec. 203. Development of effective balancing programs for milk
markets.
Title III—Repeal of Superseded Provisions
Sec. 301. Repeal of dairy product price support and milk income
loss contract programs.
Sec. 302. Repeal of permanent price support authority for
milk.
Sec. 303. Repeal of dairy export incentive program.
Sec. 304. Effective date.
<enum>I</enum><header>Dairy
Producer Margin Protection and Dairy Market Stabilization Programs</header>
<section id="H3189B3F521BB4B00898EE3FD64D6866F"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="HAC903CAB90734BBCA63B81A96C4A95E0"><enum>(1)</enum><header>Actual dairy
producer margin</header><text display-inline="yes-display-inline">The term
<term>actual dairy producer margin</term> means the difference between the
all-milk price and the average feed cost, as calculated under section
102.</text>
</paragraph><paragraph id="H898DDD632D6D4935BA5E54F6A0CF5C69"><enum>(2)</enum><header>All-milk
price</header><text>The term <term>all-milk price</term> means the average
price received, per hundredweight of milk, by dairy producers for all milk sold
to plants and dealers in the United States, as reported by the National
Agricultural Statistics Service.</text>
</paragraph><paragraph id="HF63C6ADC179A4002826A56506D3E2E8F"><enum>(3)</enum><header>Annual
production quantity</header><text display-inline="yes-display-inline">The term
<term>annual production quantity</term> means the quantity of annual milk
marketings determined for a dairy producer under section 113(b) for each year
in which the dairy producer participates in the margin protection
program.</text>
</paragraph><paragraph id="H2CF0B56A56DC48F4A628BBE0C755FE3A"><enum>(4)</enum><header>Average feed
cost</header><text display-inline="yes-display-inline">The term <term>average
feed cost</term> means the average cost of feed used by a dairy operation to
produce a hundredweight of milk, determined under section 102 using the sum of
the following:</text>
<subparagraph id="HEEC73A414DD74EF3A266A5D845B55AD4"><enum>(A)</enum><text>The product
determined by multiplying 1.192 by the price of corn per bushel.</text>
</subparagraph><subparagraph id="H8020C9096C944962B3A6F690A338289E"><enum>(B)</enum><text display-inline="yes-display-inline">The product determined by multiplying
0.00817 by the price of soybean meal per ton.</text>
</subparagraph><subparagraph id="HF3B6428587BC4EBDB8010BD30340BEA3"><enum>(C)</enum><text display-inline="yes-display-inline">The product determined by multiplying
0.0152 by the price of alfalfa hay per ton.</text>
</subparagraph></paragraph><paragraph id="H9406EEF4CEE245A19E4726758891AAB4"><enum>(5)</enum><header>Board of
directors</header><text>The term <term>board of directors</term> means the
board of directors appointed by the Secretary under section 138.</text>
</paragraph><paragraph id="HF5C88CC2F35244B78C1A5E8448CA3C3C"><enum>(6)</enum><header>Consecutive
two-month period</header><text>The term <term>consecutive two-month
period</term> refers to the two-month period consisting of the months of
January and February, March and April, May and June, July and August, September
and October, or November and December, respectively.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H7B5C13D109DD4125A8882C7F7606D1E5"><enum>(7)</enum><header>Dairy
producer</header><text display-inline="yes-display-inline">The term <term>dairy
producer</term> means an individual or entity that directly or indirectly (as
determined by the Secretary)—</text>
<subparagraph id="H4ACA6215A8C3475EA0C545398F68A52A"><enum>(A)</enum><text>shares in the risk
of producing milk; and</text>
</subparagraph><subparagraph id="H06E80B6505184187B2967BE8AD2C5983"><enum>(B)</enum><text>makes
contributions (including land, labor, management, equipment, or capital) to the
dairy operation of the individual or entity that are at least commensurate with
the share of the individual or entity of the proceeds of the operation.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HEC17999609C047909900E8E3F0B450D2"><enum>(8)</enum><header>Handler</header>
<subparagraph id="H329DB1C5102944EA9AA4CF6E517E6F16"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>handler</term> means a person making payment to a dairy producer for milk
produced in the United States and marketed for commercial use.</text>
</subparagraph><subparagraph id="H561EE2A20955468DA3F01DBB2C3BF6D7"><enum>(B)</enum><header>Producer-handler</header><text>The
term includes a producer-handler.</text>
</subparagraph></paragraph><paragraph id="HD4C6A169317E417881D1263BCF578089"><enum>(9)</enum><header>Margin
protection program</header><text display-inline="yes-display-inline">The term
<term>margin protection program</term> means the dairy producer margin
protection program required by subtitle A.</text>
</paragraph><paragraph id="HAA0F16AF535D496CAD285D672CF67604"><enum>(10)</enum><header>Participating
dairy producer</header><text>The term <term>participating dairy producer</term>
means a dairy producer that—</text>
<subparagraph id="H2C32B4ADA51C4516B2D3236524657BBC"><enum>(A)</enum><text display-inline="yes-display-inline">registers under section 112(b) to
participate in the margin protection program under subtitle A; and</text>
</subparagraph><subparagraph id="HDF80F1A8290D446CB35C3B9308CF5450"><enum>(B)</enum><text>as a result of
such registration, also participates in the stabilization program under
subtitle B.</text>
</subparagraph></paragraph><paragraph id="HE7E94330B2144822AF2A6AAE1FD0C09A"><enum>(11)</enum><header>Production
history</header><text display-inline="yes-display-inline">The term
<term>production history</term> means the quantity of annual milk marketings
determined for a dairy producer under section 113(a).</text>
</paragraph><paragraph id="H35C4DEC2F2D240158280525F6AB9BBB0"><enum>(12)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the
Secretary of Agriculture.</text>
</paragraph><paragraph id="H4D3E451C1F5646CCA0287B685E8CFB74"><enum>(13)</enum><header>Stabilization
program</header><text display-inline="yes-display-inline">The term
<term>stabilization program</term> means the dairy market stabilization program
required by subtitle B for all participating dairy producers.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H59F231AD96D249ECAACA9341283696D9"><enum>(14)</enum><header>Stabilization
program base</header><text>The term <term>stabilization program base</term>,
with respect to a participating dairy producer, means the stabilization program
base calculated for the producer under section 131(b).</text>
</paragraph><paragraph id="H9BC26B2DAF054F42B11780DA6CBB0621"><enum>(15)</enum><header>United
States</header><text display-inline="yes-display-inline">The term <term>United
States</term>, in a geographical sense, means the 50 States.</text>
</paragraph></section><section id="HCF21A13515824C878DD84D9EC9A76E15"><enum>102.</enum><header>Calculation of
average feed cost and actual dairy producer margins</header>
<subsection display-inline="no-display-inline" id="H374AA1514F5D44ABA66D8FE74E447644"><enum>(a)</enum><header>Calculation of
average feed cost</header><text display-inline="yes-display-inline">The
Secretary shall calculate the national average feed cost for each month using
the following data:</text>
<paragraph id="H8ACFA4054F8B4545AAC03DD853C2F716"><enum>(1)</enum><text display-inline="yes-display-inline">The price of corn for a month shall be the
price received during that month by farmers in the United States for corn, as
reported by the National Agricultural Statistics Service.</text>
</paragraph><paragraph id="H1E888BD75EAD42AE9048E2AE59830D5A"><enum>(2)</enum><text display-inline="yes-display-inline">The price of soybean meal for a month shall
be the central Illinois price for soybean meal, as reported by the Agricultural
Marketing Service.</text>
</paragraph><paragraph id="H14423D6E0F9E462C9653D2336323C01C"><enum>(3)</enum><text display-inline="yes-display-inline">The price of alfalfa hay for a month shall
be the price received during that month by farmers in the United States for
alfalfa hay, as reported by the National Agricultural Statistics
Service.</text>
</paragraph></subsection><subsection id="HE0DB392592654802BBFA740020D5D15E"><enum>(b)</enum><header>Calculation of
actual dairy producer margins</header>
<paragraph display-inline="no-display-inline" id="H65B4F3ED4A1443049C1DDCA6D4594897"><enum>(1)</enum><header>Margin
protection program</header><text display-inline="yes-display-inline">For use in
the margin protection program under subtitle A, the Secretary shall calculate
the actual dairy producer margin for each consecutive two-month period by
subtracting—</text>
<subparagraph id="HAB1ECA822B7846AA9AD84D01AB985592"><enum>(A)</enum><text>the average feed
cost for that consecutive two-month period, determined in accordance with
subsection (a); from</text>
</subparagraph><subparagraph id="H24DE615514AD4E9BA86B6492C5A3F3D2"><enum>(B)</enum><text>the all-milk price
for that consecutive two-month period.</text>
</subparagraph></paragraph><paragraph id="HEF985CA3C7584E64AD8C768CAA645B1C"><enum>(2)</enum><header>Stabilization
program</header><text display-inline="yes-display-inline">For use in the
stabilization program under subtitle B, the Secretary shall calculate (not
later than 20th of each month) the actual dairy producer margin for the
preceding month by subtracting—</text>
<subparagraph id="H2F582016AB9B4BD19CDCE2FD2B9CFB30"><enum>(A)</enum><text>the average feed
cost for that preceding month, determined in accordance with subsection (a);
from</text>
</subparagraph><subparagraph id="HEF018442A88349018D97DEE8255F7F30"><enum>(B)</enum><text>the all-milk price
for that preceding month.</text>
</subparagraph></paragraph></subsection></section><subtitle id="H0A65FE4387C14852A0150934871D85B8"><enum>A</enum><header>Dairy Producer
Margin Protection Program</header>
<section id="HCF57E4E5BFF24B09A7FA15BA67978775"><enum>111.</enum><header>Establishment
of dairy producer margin protection program</header><text display-inline="no-display-inline">The Secretary shall establish and administer
a dairy producer margin protection program for the purpose of protecting dairy
producer income by paying participating dairy producers—</text>
<paragraph id="H0BA6BCA924824CFBB9BBF60310D47B8E"><enum>(1)</enum><text display-inline="yes-display-inline">basic margin protection payments when
actual dairy producer margins are less than the threshold levels for such
payments; and</text>
</paragraph><paragraph id="H969D7313F2A74D35806CD8D0F46E6999"><enum>(2)</enum><text display-inline="yes-display-inline">supplemental margin protection payments if
purchased by a participating dairy producer.</text>
</paragraph></section><section id="HEA814CA8C8E5411A987D8666D412AFD1"><enum>112.</enum><header>Eligibility and
registration of dairy producers for margin protection program</header>
<subsection id="H382D8B094F154F06A0FCCC57B1348B14"><enum>(a)</enum><header>Eligibility</header><text display-inline="yes-display-inline">All dairy producers in the United States
are eligible to participate in the margin protection program, except that a
dairy producer must be registered with the Secretary before the producer may
receive—</text>
<paragraph id="H1D448F4E0D284927BBBB8A19267A719A"><enum>(1)</enum><text>basic margin
protection payments under section 114; and</text>
</paragraph><paragraph id="H0DBB8B5C70C545258E38C053A7D3AEE4"><enum>(2)</enum><text display-inline="yes-display-inline">if the dairy producer purchases
supplemental margin protection under section 115, supplemental margin
protection payments under such section.</text>
</paragraph></subsection><subsection id="HA11E419C793B44D9A03ED504340F1A9E"><enum>(b)</enum><header>Registration
process</header>
<paragraph id="HC1CF72D3449346279626AF9945D0B757"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
register all interested dairy producers in the margin protection program. The
Secretary shall specify the manner and form by which a dairy producer must
register.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE2DE8CCE91BA4C388F5519442C6AA207"><enum>(2)</enum><header>Treatment of
multi-producer operations</header><text display-inline="yes-display-inline">If
a dairy operation consists of more than one dairy producer, all of the dairy
producers of the operation shall be treated as a single dairy producer for
purposes of—</text>
<subparagraph id="HE7596FA15C294D9984784B010770CC69"><enum>(A)</enum><text>registration to
receive basic margin protection and purchase supplemental margin
protection;</text>
</subparagraph><subparagraph id="H3AAD8659947843F9B942DED0DDFF1719"><enum>(B)</enum><text>payment of the
administrative fee under subsection (d) and producer premiums under section
115; and</text>
</subparagraph><subparagraph id="H7183FBC0E21241FB837CD2FA25A9E16C"><enum>(C)</enum><text>participation in
the stabilization program under subtitle B.</text>
</subparagraph></paragraph><paragraph id="H6A07DC6966CB48F78AA110694CAED2FB"><enum>(3)</enum><header>Treatment of
Producers with Multiple dairy Operations</header><text display-inline="yes-display-inline">If a dairy producer operates two or more
dairy operations, each dairy operation of the producer shall require a separate
registration to receive basic margin protection and purchase supplemental
margin protection. Only those dairy operations so registered shall be subject
to the stabilization program.</text>
</paragraph></subsection><subsection id="H39FE8CBA95C542049E9EDE9769F78A0B"><enum>(c)</enum><header>Time for
registration</header>
<paragraph id="H200957E7C7DE46E09EEE96E86705C58A"><enum>(1)</enum><header>Existing Dairy
Producers</header><text>During the one-year period beginning on the date of the
enactment of this Act, a dairy producer that is actively engaged in a dairy
operation as of such date may register with the Secretary—</text>
<subparagraph id="HA383B4AFE62B4FE38AE7EC9F7089F067"><enum>(A)</enum><text>to receive basic
margin protection; and</text>
</subparagraph><subparagraph id="HB6A99978314B41C486D482CF0815D37F"><enum>(B)</enum><text>if the producer
elects, to purchase supplemental margin protection.</text>
</subparagraph></paragraph><paragraph commented="no" id="H819695BF80054DA9954071D23DA95051"><enum>(2)</enum><header>New
Entrants</header><text display-inline="yes-display-inline">A dairy producer
that has no existing interest in a dairy operation as of the date of the
enactment of this Act, but that, after such date, establishes a new dairy
operation, may register with the Secretary during the 180-day period beginning
on the date on which the dairy operation first markets milk
commercially—</text>
<subparagraph commented="no" id="HDAC4FD28A8214539A91282A5B977EE31"><enum>(A)</enum><text>to receive basic
margin protection; and</text>
</subparagraph><subparagraph commented="no" id="H231B4796A0794AD0A208759A0D23A2FD"><enum>(B)</enum><text>if the producer
elects, to purchase supplemental margin protection.</text>
</subparagraph></paragraph></subsection><subsection id="H2B629E7E6DB140F787FB4E8D9111F6B1"><enum>(d)</enum><header>Administrative
fee for registration</header>
<paragraph id="HF3FA94A07DD648B4A1CBBD696F5E73E5"><enum>(1)</enum><header>Administrative
fee required</header><text display-inline="yes-display-inline">A dairy producer
shall pay an administrative fee under this subsection to register for the
margin protection program. The participating dairy producer shall pay the
administrative fee annually thereafter to remain registered for the margin
protection program.</text>
</paragraph><paragraph id="HE31854F06A78439D86E2E7A53D37C6D2"><enum>(2)</enum><header>Fee
amount</header><text>The administrative fee for a dairy producer shall be as
follows:</text>
<subparagraph id="H4A1F74BE3C63431CAC14E0744F906CC9"><enum>(A)</enum><text>If the dairy
producer marketed less than 10 million pounds of milk in the previous calendar
year, the administrative fee shall be equal to $100.</text>
</subparagraph><subparagraph id="HCB0E9CCF5E4547CA97F1B1EF300CCF5D"><enum>(B)</enum><text display-inline="yes-display-inline">If the dairy producer marketed between 10
million and 40 million pounds of milk in the previous calendar year, the
administrative fee shall be equal to $400.</text>
</subparagraph><subparagraph id="HD67D7953DFF3476DBBB288A6DA95CAED"><enum>(C)</enum><text display-inline="yes-display-inline">If the dairy producer marketed more than 40
million pounds of milk in the previous calendar year, the administrative fee
shall be equal to $1,000.</text>
</subparagraph></paragraph></subsection><subsection id="H25F96FC3147E49C5BCFD74699B3574E2"><enum>(e)</enum><header>Reconstitution</header><text display-inline="yes-display-inline">The Secretary shall ensure that a dairy
producer does not reconstitute a dairy operation for the sole purpose of
receiving basic margin protection, purchasing supplemental margin protection,
or avoiding participation in the stabilization program.</text>
</subsection></section><section id="HB6052B276B0147BC971E2F5A87C5D436"><enum>113.</enum><header>Production
history and annual production quantity of participating dairy
producers</header>
<subsection id="HD5C91AD500BF45029D196A8F8817CC74"><enum>(a)</enum><header>Determination of
production history</header>
<paragraph id="HF6DE12E0526746F5B1844B925F7BA64C"><enum>(1)</enum><header>Determination
required</header><text display-inline="yes-display-inline">The Secretary shall
determine the production history of the dairy operation of each participating
dairy producer in the margin protection program.</text>
</paragraph><paragraph commented="no" id="H71D5DCB5518F484BAF88D163844C7C5F"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">Except as provided in paragraph (3), the
production history of a participating dairy producer is equal to the highest
annual milk marketings of the dairy producer during any one of the three
calendar years immediately preceding the dairy producer’s registration for
participation in the margin protection program.</text>
</paragraph><paragraph id="H5F5106805C6648849F2869126263D7F9"><enum>(3)</enum><header>New
producers</header><text display-inline="yes-display-inline">If a dairy producer
has been in operation for less than a year, the Secretary shall determine the
production history of the dairy producer by extrapolating the actual milk
marketings for the months the dairy producer has been in operation to a yearly
amount.</text>
</paragraph><paragraph commented="no" id="H72E4837FD9BB4A14B8BC5E7C29318C99"><enum>(4)</enum><header>No change in
production history for basic margin protection</header><text display-inline="yes-display-inline">Once the production history of a
participating dairy producer is determined under paragraph (2) or (3), the
production history shall not be subsequently changed for purposes of
determining the amount of any basic margin protection payments for the dairy
producer made under section 114.</text>
</paragraph></subsection><subsection id="H963959C9F23145A3B3BFD41E2FB3BCA6"><enum>(b)</enum><header>Determination of
annual production quantity for supplemental margin protection</header>
<paragraph id="H03829FA3870148508BDB8EBE4496911C"><enum>(1)</enum><header>Determination
required</header><text display-inline="yes-display-inline">If a dairy producer
selects the growth option when purchasing supplemental margin protection under
section 115, the Secretary shall determine the annual production quantity of
the dairy operation of the dairy producer under paragraph (2).</text>
</paragraph><paragraph commented="no" id="H4F3C6F9027AA4287B3ADE7DCA961F3D3"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">The annual production quantity of a
participating dairy producer is equal to the actual milk marketings of the
dairy producer during each calendar year in which the dairy producer purchases
supplemental margin protection, including the calendar year during which the
dairy producer first purchases such supplemental margin protection.</text>
</paragraph></subsection><subsection id="HD9F3F9842F314F0FB97F3A32BFD5DF60"><enum>(c)</enum><header>Required
information</header><text display-inline="yes-display-inline">A participating
dairy producer shall provide all information that the Secretary may require in
order to establish—</text>
<paragraph id="H24F92726733F4AFEB2B0BC3F6637D3FE"><enum>(1)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the dairy producer; and</text>
</paragraph><paragraph id="H32669233547F4C29A96803AD7C2A1D76"><enum>(2)</enum><text display-inline="yes-display-inline">the annual production quantity of the dairy
operation of the dairy producer if the dairy producer selects the growth option
when purchasing supplemental margin protection under section 115.</text>
</paragraph></subsection><subsection id="HC40E4F6E3D87436A9846766C5B0CD883"><enum>(d)</enum><header>Transfer of
production history or annual production quantity</header>
<paragraph id="HBCC2A7A199754E22BD031A30D209651E"><enum>(1)</enum><header>Transfer by
sale</header>
<subparagraph id="H673778B2FFCF4B52A2C9BC61782C1F0F"><enum>(A)</enum><header>Request for
transfer</header><text display-inline="yes-display-inline">If an existing dairy
producer, as described in section 112(c)(1), sells an entire dairy operation to
another party, the seller and purchaser may jointly request that the Secretary
transfer to the purchaser the seller’s interest in—</text>
<clause id="HB71D399ED81146D5BEC27A9A5811DF63"><enum>(i)</enum><text>production history
of the dairy operation; and</text>
</clause><clause id="H65121056199C4F019BABD294673244C0"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation for each year in which the margin protection
program has been in effect.</text>
</clause></subparagraph><subparagraph id="H65DDAEB5E8D641BE9AF30F6CFC9675C2"><enum>(B)</enum><header>Transfer</header><text>If
the Secretary determines that the seller has sold the entire dairy operation to
the purchaser, the Secretary shall approve the transfer described in
subparagraph (A), and, thereafter, the seller shall have no interest in—</text>
<clause id="H9069C0F9633E4F94A0E0CAAFA5494155"><enum>(i)</enum><text>the
production history of the sold dairy operation; or</text>
</clause><clause id="H30991A02142E4617A5822D2A369DC4F0"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H3F174556BDCF4359A240667DAC01BAF8"><enum>(2)</enum><header>Transfer by
Lease</header>
<subparagraph id="HEC34EB556FF8479EB8F56635CD66FD1C"><enum>(A)</enum><header>Request for
transfer</header><text display-inline="yes-display-inline">If an existing dairy
producer, as described in section 112(c)(1), leases an entire dairy operation
to another party, the lessor and lessee may jointly request that the Secretary
transfer to the lessee for the duration of the term of the lease the lessor’s
interest in—</text>
<clause id="H081502857000442CA0FA1DDD2D238455"><enum>(i)</enum><text>production history
of the dairy operation; and</text>
</clause><clause id="H19B90016885D4C80B6B045CEF2B60614"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation for each year in which the margin protection
program has been in effect.</text>
</clause></subparagraph><subparagraph id="HC9C23CCAA6BC42288A1D80382E3A1FDC"><enum>(B)</enum><header>Transfer</header><text display-inline="yes-display-inline">If the Secretary determines that the lessor
has leased the entire dairy operation to the lessee, the Secretary shall
approve the transfer described in subparagraph (A), and, thereafter, the lessor
shall have no interest for the duration of the term of the lease in—</text>
<clause id="H7500EE6D800146ABA461077FD58ACB85"><enum>(i)</enum><text>the
production history of the leased dairy operation; or</text>
</clause><clause id="HC021147D256244E5938A6F108788C31B"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation.</text>
</clause></subparagraph></paragraph><paragraph id="H54CB931E757E435ABB36415DC897F410"><enum>(3)</enum><header>Coverage
level</header>
<subparagraph id="H7CC2D8D910ED4A00A7809F3B351E5735"><enum>(A)</enum><header>Basic margin
protection</header><text display-inline="yes-display-inline">A purchaser or
lessee to whom the Secretary transfers a production history or annual
production quantity under this subsection may not obtain a different level of
basic margin protection than the basic margin protection coverage held by the
seller or lessor from whom the transfer was obtained.</text>
</subparagraph><subparagraph id="H4871F222B15840E2A0EADEEA9FA5D001"><enum>(B)</enum><header>Supplemental
margin protection</header><text display-inline="yes-display-inline">A purchaser
or lessee to whom the Secretary transfers a production history or annual
production quantity under this subsection may not obtain a different level of
supplemental margin protection coverage than the supplemental margin protection
coverage held by the seller or lessor from whom the transfer was
obtained.</text>
</subparagraph></paragraph><paragraph id="HB72F6AAD328E4CF8B41206281E8CD687"><enum>(4)</enum><header>New
entrants</header><text display-inline="yes-display-inline">The Secretary may
not transfer the production history or annual production quantity determined
for a dairy producer described in section 112(c)(2) to another person.</text>
</paragraph></subsection><subsection id="HBA312889882B4AA8B4FEE7487FF05E3F"><enum>(e)</enum><header>Movement and
transfer of production history or annual production quantity</header>
<paragraph id="H0C4F8B915B3642E596AB1FC95FF16DF3"><enum>(1)</enum><header>Movement and
transfer authorized</header><text display-inline="yes-display-inline">Subject
to paragraph (2), if a dairy producer moves from one location to another
location, the dairy producer may maintain the production history and annual
production quantity associated with the operation.</text>
</paragraph><paragraph id="H64E74F5BCBEE4329B3FF31027B056DDE"><enum>(2)</enum><header>Notification
requirement</header><text>A dairy producer shall notify the Secretary of any
move of a dairy operation under paragraph (1).</text>
</paragraph><paragraph id="HBB5FA1A7D5D243BB9CD723FBE66B24CB"><enum>(3)</enum><header>Subsequent
occupation of vacated location</header><text display-inline="yes-display-inline">A party subsequently occupying a dairy
operation location vacated as described in paragraph (1) shall have no interest
in the production history or annual production quantity previously associated
with the operation at such location.</text>
</paragraph></subsection></section><section id="H3DF9BF44A9D547139B245FE0FE3389B8"><enum>114.</enum><header>Basic margin
protection</header>
<subsection id="HA6C9F0F211CF47719091A5684D4847D4"><enum>(a)</enum><header>Eligibility</header><text display-inline="yes-display-inline">All participating dairy producers are
eligible to receive basic margin protection under the margin protection
program.</text>
</subsection><subsection id="H3D15E0A3574045CE92C038B74D2DEF10"><enum>(b)</enum><header>Payment
threshold</header><text display-inline="yes-display-inline">Participating dairy
producers shall receive a basic margin protection payment whenever the average
actual dairy producer margin for a consecutive two-month period is less than
$4.00 per hundredweight of milk.</text>
</subsection><subsection id="H6FA7689D30EF4E6B8030849124465B60"><enum>(c)</enum><header>Basic margin
protection payment</header>
<paragraph id="HB286EF6E05404A4F873A209DCFA2D9DF"><enum>(1)</enum><header>Payment
required</header><text display-inline="yes-display-inline">The Secretary shall
make a basic margin protection payment to each participating dairy producer for
a consecutive two-month period whenever such a payment is required by
subsection (b) for that period.</text>
</paragraph><paragraph id="H0D718EBE64B64C8AA643BE08680D5626"><enum>(2)</enum><header>Amount of
payment</header><text display-inline="yes-display-inline">The basic margin
protection payment for the dairy operation of a participating dairy producer
for a consecutive two-month period shall be determined as follows:</text>
<subparagraph id="HE0CF149AD2BB4DC7B64BB95542B3C1C8"><enum>(A)</enum><text>The Secretary
shall calculate the difference between the average actual dairy producer margin
for the consecutive two-month period and $4.00, except that, if the difference
is more than $4.00, the Secretary shall use $4.00.</text>
</subparagraph><subparagraph id="H0F17319E9A0B4175A0F1DA70A6127F4D"><enum>(B)</enum><text display-inline="yes-display-inline">The Secretary shall multiply the amount
under subparagraph (A) by of the lesser of the following:</text>
<clause id="H0D82E444811C46BC830F28BAE9AED666"><enum>(i)</enum><text>Eighty percent of
the production history of the dairy producer, divided by six.</text>
</clause><clause id="H510EDA52BBAA4CC4BA3D91993C8440DB"><enum>(ii)</enum><text>The
actual amount of milk marketed by the dairy operation of the dairy producer
during the consecutive two-month period.</text>
</clause></subparagraph></paragraph></subsection></section><section id="HF04BFE94F7C54B92BC032C331442C1E2"><enum>115.</enum><header>Supplemental
margin protection</header>
<subsection id="H1CBA77DB947547B3BC724DCB69CCE2DF"><enum>(a)</enum><header>Election of
supplemental margin protection</header><text display-inline="yes-display-inline">At the time of the registration of a dairy
producer in the margin protection program under section 112, the dairy producer
may purchase supplemental margin protection to protect a higher level of the
income of a participating dairy producer than the income level guaranteed by
basic margin protection under section 114.</text>
</subsection><subsection id="H2EA8F0788BDD49FE8167000384A4CD6A"><enum>(b)</enum><header>Selection of
payment threshold</header><text display-inline="yes-display-inline">A
participating dairy producer purchasing supplemental margin protection shall
elect a coverage level that is higher, in any increment of $0.50, than the
payment threshold for basic margin protection specified in section 114(b), but
not to exceed $8.00.</text>
</subsection><subsection id="H875B6D8663B24590892333871095AABB"><enum>(c)</enum><header>Selection of
coverage percentage</header><text display-inline="yes-display-inline">A
participating dairy producer purchasing supplemental margin protection shall
elect a percentage of coverage, equal to not more than 90 percent nor less than
25 percent, of—</text>
<paragraph display-inline="no-display-inline" id="HB54C885FF4FA4987835F1A15A391FEBC"><enum>(1)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the participating dairy producer; or</text>
</paragraph><paragraph id="H1941BD5229BA4B109933927C2C514F5D"><enum>(2)</enum><text display-inline="yes-display-inline">if the participating dairy producer elects
the growth option under subsection (d)—</text>
<subparagraph id="HBF71319BB98742C99776CAE6864FFBE6"><enum>(A)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the dairy producer, to be used for the calendar year during which
the dairy producer registers for participation in the margin protection
program; and</text>
</subparagraph><subparagraph id="HB869B286F5134ABD9786BCC4C0AF0E4A"><enum>(B)</enum><text>for subsequent
calendar years in which the margin protection program is in effect, the greater
of—</text>
<clause id="HFE2086D384C44DBF84DB91687C5F63FF"><enum>(i)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the dairy producer; or</text>
</clause><clause id="HFCED3DDE7C8340A1AB73C31926DE6AB5"><enum>(ii)</enum><text display-inline="yes-display-inline">the highest annual production quantity of
the dairy operation of the dairy producer during any previous calendar year in
which the margin protection program was in effect.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H3E7490FCD51B422C938E1A792C6F2167"><enum>(d)</enum><header>Availability of
growth option</header><text display-inline="yes-display-inline">When a dairy
producer purchases supplemental margin protection, the dairy producer may elect
a growth option that authorizes the use of the annual production quantity of
the dairy operation of the dairy producer, in lieu of production history, as
provided in subsection (c)(2) to determine supplemental margin protection
payments for the dairy producer under subsection (h).</text>
</subsection><subsection id="HF6D1314F52D0478592E19CC7CFC777EB"><enum>(e)</enum><header>Producer
Premiums</header>
<paragraph id="HBD864EC35D564B3CB7EB5B0F07AFE7D7"><enum>(1)</enum><header>Premiums
required</header><text display-inline="yes-display-inline">A participating
dairy producer that purchases supplemental margin protection shall pay an
annual premium equal to the product obtained by multiplying—</text>
<subparagraph id="H541C1C9F9A564FDDAA1F70934F09BD05"><enum>(A)</enum><text>the percentage
selected by the dairy producer under subsection (c);</text>
</subparagraph><subparagraph id="H07759AC17DB14544BBFAB6232CB6A57B"><enum>(B)</enum><text>the production
history or annual production quantity applicable to the dairy producer under
such subsection; and</text>
</subparagraph><subparagraph id="H35B4B376FADF4AD287C538E4F001B67C"><enum>(C)</enum><text>the premium per
hundredweight of milk, as follows:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type="">
<tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Coverage Level</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Premium per Cwt.</entry>
</row>
</thead>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$4.50</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.015</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.00</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.036</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.50</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.081</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.00</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.155</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.50</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.230</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.00</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.434</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.50</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.590</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$8.00</entry><entry align="center" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.922.</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph></paragraph><paragraph id="HA95496CE0BAB41D39007CB791580255E"><enum>(2)</enum><header>Time for
payment</header>
<subparagraph id="HC2CE629C235D440B899BCF07E52FCAFE"><enum>(A)</enum><header>First
year</header><text display-inline="yes-display-inline">As soon as practicable
after a dairy producer registers to participate in the margin protection
program and purchases supplemental margin protection, the dairy producer shall
pay the premium determined under paragraph (1) for the dairy producer for the
first calendar year of such supplemental margin protection.</text>
</subparagraph><subparagraph id="HBE138F63A9CD4A299BE5084852D37501"><enum>(B)</enum><header>Subsequent
years</header><text display-inline="yes-display-inline">When the dairy producer
first purchases supplemental margin protection, the dairy producer shall also
elect the method by which the dairy producer will pay premiums under this
subsection for subsequent years in accordance with one of the following
schedules:</text>
<clause id="H34E71B8E60BE448C979991C2FCEB40E9"><enum>(i)</enum><header>Single annual
Payment</header><text display-inline="yes-display-inline">The participating
dairy producer may elect to pay 100 percent of the annual premium determined
under paragraph (1) for the dairy producer for a calendar year not later than
January 15 of the calendar year.</text>
</clause><clause id="HE8B5F9594CF247A7B93A618449AA0E85"><enum>(ii)</enum><header>Semi-annual
Payment</header><text display-inline="yes-display-inline">The participating
dairy producer may elect to pay 50 percent of the annual premium determined
under paragraph (1) for the dairy producer for a calendar year not later than
January 15 of the calendar year and the remaining 50 percent of the premium not
later than June 15 of the calendar year.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H85A2306A20D24311B6C125C80282D9BD"><enum>(f)</enum><header>Producer’s
Premium Obligations</header>
<paragraph id="HFED63640BAA945F49558060B80F733C6"><enum>(1)</enum><header>Pro-ration of
first year premium</header><text>A participating dairy producer that purchases
supplemental margin protection after initial registration in the margin
protection program shall pay a pro-rated premium for the first calendar year
based on the date on which the producer purchases the coverage.</text>
</paragraph><paragraph id="H26554E015A84419AA25E6AFCD1F80EE7"><enum>(2)</enum><header>Subsequent
premiums</header><text>Other than as provided in paragraph (1), the annual
premium for a participating dairy producer shall be determined under subsection
(e) for each year in which the margin protection program is in effect.</text>
</paragraph><paragraph id="H199F6D74AB504956997E15AD9EFAB201"><enum>(3)</enum><header>Legal
obligation</header><text>A participating dairy producer that purchases
supplemental margin protection shall be legally obligated to pay the applicable
premiums for the entire period of the margin protection program (as provided in
the payment schedule elected under subsection (e)(2)), and may not opt out of
the margin protection program, except—</text>
<subparagraph id="H8BDBCD4647B3418DBD0EAFDF02886945"><enum>(A)</enum><text>if the dairy
producer dies, the estate of the deceased may cancel the supplemental margin
protection and shall not be responsible for any further premium payments;
or</text>
</subparagraph><subparagraph id="H37625329C09B4E1CA5F5D6133FF47D9B"><enum>(B)</enum><text display-inline="yes-display-inline">if the dairy producer retires, the producer
may request that Secretary cancel the supplemental margin protection if the
producer has terminated the dairy operation entirely and certifies under oath
that the producer will not be actively engaged in any dairy operation for at
least the next seven years.</text>
</subparagraph></paragraph></subsection><subsection id="H5306282B5C8C424E83963DC8A752A568"><enum>(g)</enum><header>Supplemental
Payment threshold</header><text display-inline="yes-display-inline">A
participating dairy producer with supplemental margin protection shall receive
a supplemental margin protection payment whenever the average actual dairy
producer margin for a consecutive two-month period is less than the coverage
level threshold selected by the dairy producer under subsection (b).</text>
</subsection><subsection id="H74E6D0AEF6364406885C559D932E4236"><enum>(h)</enum><header>Supplemental
margin protection payments</header>
<paragraph id="H0F3433A0A11B4BB1A40A6DBD6932160E"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The supplemental
margin protection payment for a participating dairy producer is in addition to
the basic margin protection payment.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H3056378DAB444407B678CFAF763156C5"><enum>(2)</enum><header>Amount of
payment</header><text display-inline="yes-display-inline">The supplemental
margin protection payment for the dairy operation of a participating dairy
producer shall be determined as follows:</text>
<subparagraph id="HE5922BABE2984B7CA7E9C6A5BF9A5775"><enum>(A)</enum><text display-inline="yes-display-inline">The Secretary shall calculate the
difference between the coverage level threshold selected by the dairy producer
under subsection (b) and the greater of—</text>
<clause id="H511D94CEF89F4EFD9BD4A261D01788C9"><enum>(i)</enum><text>the
average actual dairy producer margin for the consecutive two-month period;
or</text>
</clause><clause id="H98C6355DC65541649810B51BEDA642B9"><enum>(ii)</enum><text>$4.00.</text>
</clause></subparagraph><subparagraph id="HAC55F4071FE241B59950E2FBBD0ADE76"><enum>(B)</enum><text display-inline="yes-display-inline">The amount determined under subparagraph
(A) shall be multiplied by the percentage selected by the dairy producer under
subsection (c) and by the lesser of the following:</text>
<clause id="H466BAE6345C044F2A69A6EF21528E9BE"><enum>(i)</enum><text display-inline="yes-display-inline">The production history or annual production
quantity applicable to the producer under subsection (c), divided by
six.</text>
</clause><clause id="H8AF22F2A7EE64C1EAFCE41AD2DA8D3A2"><enum>(ii)</enum><text>The
actual amount of milk marketed by the dairy operation of the dairy producer
during the consecutive two-month period.</text>
</clause></subparagraph></paragraph></subsection></section><section id="H5CBF78FD6A924DA2BBB075861E686329"><enum>116.</enum><header>Effect of
failure to pay administrative fees or premiums</header>
<subsection id="H76577EC6C6A3459A88F4594231CAD44D"><enum>(a)</enum><header>Loss of
benefits</header><text display-inline="yes-display-inline">A participating
dairy producer that fails to pay the required administrative fee under section
112 or is in arrears on premium payments for supplemental margin protection
under section 115—</text>
<paragraph id="HC2BA4F1A0DE345D4883E5C90E65BB45C"><enum>(1)</enum><text display-inline="yes-display-inline">remains legally obligated to pay the
administrative fee or premiums, as the case may be; and</text>
</paragraph><paragraph id="H7C59C795FA9A410B854266B2FAE5FDAA"><enum>(2)</enum><text display-inline="yes-display-inline">may not receive basic margin protection
payments or supplemental margin protection payments until the fees or premiums
are fully paid.</text>
</paragraph></subsection><subsection id="HC2F9FCAB621F428E9F771A9DC46E265A"><enum>(b)</enum><header>Enforcement</header><text display-inline="yes-display-inline">The Secretary may take such action as
necessary to collect administrative fees and premium payments for supplemental
margin protection.</text>
</subsection></section><section id="HFA29BC99F10C481586D6A1848D9D3749"><enum>117.</enum><header>No payment
limitations</header><text display-inline="no-display-inline">Notwithstanding
any other provision of law (except section 116), basic margin protection
payments and supplemental margin protection payments received by a
participating dairy producer shall not be subject to limitations for any
reason.</text>
</section></subtitle><subtitle id="HF274A4883ABF49FFA6D3E50C2E88FC94"><enum>B</enum><header>Dairy Market
Stabilization Program</header>
<section id="H71C7F4F5D02C41B29B5C9714F2888C8E"><enum>131.</enum><header>Establishment
of dairy market stabilization program</header>
<subsection id="HAA98F90EF5394D1D9DBC12F6E64E37E3"><enum>(a)</enum><header>Program
required; purpose</header><text display-inline="yes-display-inline">The
Secretary shall establish and administer a dairy market stabilization program
applicable to participating dairy producers for the purpose of assisting in
balancing the supply of milk with demand when dairy producers are experiencing
low or negative operating margins.</text>
</subsection><subsection id="HFCB6007E1E944F49AC315C6957C2DFD3"><enum>(b)</enum><header>Election of
stabilization program base calculation method</header>
<paragraph id="HB15E57FF91EB4E548D2EC98BBE47653D"><enum>(1)</enum><header>Deadline for
election</header><text display-inline="yes-display-inline">Not later than
January 15, 2012, each participating dairy producer shall inform the Secretary
of the method by which the stabilization program base for the dairy producer
for 2012 will be calculated under paragraph (3).</text>
</paragraph><paragraph id="H5A2FD646074F4D6DBF5445E342BB7E02"><enum>(2)</enum><header>Change in
calculation method</header><text>A participating dairy producer may change the
stabilization program base calculation method to be used for a calendar year by
notifying the Secretary of the change not later than January 15 of that
year.</text>
</paragraph><paragraph id="H21237770135B47C19682E9307DAAF29F"><enum>(3)</enum><header>Calculation
methods</header><text>A participating dairy producer may elect either of the
following methods for calculation of the stabilization program base for the
producer:</text>
<subparagraph id="HAA262A4EA04144C9A9A95AABD590ADF7"><enum>(A)</enum><text>The volume of the
average monthly milk marketings of the dairy producer for the three months
immediately preceding the announcement by the Secretary that the stabilization
program will become effective.</text>
</subparagraph><subparagraph id="H633C192D0642486181BEFB264E5F47C4"><enum>(B)</enum><text display-inline="yes-display-inline">The volume of the monthly milk marketings
of the dairy producer for the same month in the preceding year as the month for
which the Secretary has announced the stabilization program will become
effective.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H8A08E1745DCE40CE8CA54680E1FED628"><enum>(c)</enum><header>Treatment of
multi-Producer operations</header><text display-inline="yes-display-inline">As
provided in section 112(b)(2), if a dairy operation consists of more than one
dairy producer, all of the dairy producers of the operation shall be treated as
a single participating dairy producer for purposes of operation of the
stabilization program with respect to the producers.</text>
</subsection><subsection display-inline="no-display-inline" id="H3432820F994143CFA64B4851B8B69754"><enum>(d)</enum><header>Treatment of
Producers with Multiple dairy Operations</header><text display-inline="yes-display-inline">As provided in section 112(b)(3), if a
participating dairy producer operates two or more dairy operations, only those
dairy operations of the dairy producer registered under section 112 shall be
subject to the stabilization program.</text>
</subsection></section><section id="HB61E381D30BD4537AB6C36D955456CD2"><enum>132.</enum><header>Threshold for
implementation and reduction in dairy producer payments</header>
<subsection id="HC44F13560A5343E3859B824C575393BD"><enum>(a)</enum><header>When
stabilization program required</header><text display-inline="yes-display-inline">The Secretary shall announce that the
stabilization program is in effect and order reduced payments for any
participating dairy producer that exceeds the applicable percentage of the
producer’s stabilization program base whenever—</text>
<paragraph id="H4B824B1C8E61402B81DD56FD0F679EB7"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy producer margin has been
$6.00 or less per hundredweight of milk for the immediately preceding two
months; or</text>
</paragraph><paragraph id="H28EDF9CFCA5F4C6488F2A981F6BF86BF"><enum>(2)</enum><text display-inline="yes-display-inline">the actual dairy producer margin has been
$4.00 or less per hundredweight of milk for the immediately preceding
month.</text>
</paragraph></subsection><subsection id="H02D5F8EED80B47A4878C20214EB69AD7"><enum>(b)</enum><header>Effective date
for implementation of payment reductions</header><text>Reductions in dairy
producer payments shall commence beginning on the first day of the month
immediately following the announcement by the Secretary under subsection
(a).</text>
</subsection></section><section id="H0C31CE7E6FFE4B1FBC7C1D1BC0DF223D"><enum>133.</enum><header>Producer milk
marketings information</header>
<subsection id="HAA4604B566054121A354ED1AF0830BBB"><enum>(a)</enum><header>Collection of
milk marketing data</header><text display-inline="yes-display-inline">For each
month during which the stabilization program is in effect, each handler shall
calculate the following:</text>
<paragraph id="H3450020EBEF74423AD671C8211B2BC2A"><enum>(1)</enum><text>The volume of milk
marketings the handler has received from each participating dairy producer
during that month.</text>
</paragraph><paragraph id="H1AFCD8FC47AF46628F5EAC7E2A6B3546"><enum>(2)</enum><text display-inline="yes-display-inline">The volume of milk marketings the handler
has received from each participating dairy producer during the same month of
the preceding year.</text>
</paragraph><paragraph id="H63EE426F00E74DB58A059CC5B0F0F7CE"><enum>(3)</enum><text display-inline="yes-display-inline">The volume of milk marketings the handler
has received from each participating dairy producer during each of the three
months preceding the month in which the Secretary makes the announcement that
the stabilization program will be in effect.</text>
</paragraph></subsection><subsection id="H266610582A624ED392B63C5129FB20C3"><enum>(b)</enum><header>Effect of
changing handlers</header><text>If a participating dairy producer changes
handlers, the producer shall ensure that milk marketings data required to make
the calculations under subsection (a) is provided to the new handler.</text>
</subsection></section><section id="HD5BA6B0F499A46AD93D783913B656322"><enum>134.</enum><header>Calculation and
collection of reduced dairy producer payments</header>
<subsection id="H5AFB9D27AB1045E0926D872A37E661FE"><enum>(a)</enum><header>Reduced producer
payments required</header><text display-inline="yes-display-inline">During any
month in which payment reductions are in effect under the stabilization
program, each handler shall reduce payments to each participating dairy
producer from whom the handler receives milk.</text>
</subsection><subsection id="H7075A7592E8B4D848820AD64CBE88402"><enum>(b)</enum><header>Reductions based
on actual dairy producer margin</header>
<paragraph id="H12F22D56D46649478863E5B2374D1B68"><enum>(1)</enum><header>Reduction
requirement 1</header><text display-inline="yes-display-inline">Unless the
reduction required by paragraph (2) or (3) applies, when the actual dairy
producer margin has been $6.00 or less per hundredweight of milk for two
consecutive months, the handler shall make payments to a participating dairy
producer for a month based on the greater of the following:</text>
<subparagraph id="HF1CD051B918F4D93AB7240729D79F4B2"><enum>(A)</enum><text>Ninety-eight
percent of the stabilization program base of the dairy producer.</text>
</subparagraph><subparagraph id="HD06793D09C47460FA3EE19DFB814DF58"><enum>(B)</enum><text>Ninety-four
percent of the marketings of milk for the month by the producer.</text>
</subparagraph></paragraph><paragraph id="HE6E30C12F72949A6BFF65C5990F08860"><enum>(2)</enum><header>Reduction
requirement 2</header><text display-inline="yes-display-inline">Unless the
reduction required by paragraph (3) applies, when the actual dairy producer
margin has been $5.00 or less per hundredweight of milk for two consecutive
months, the handler shall make payments to a participating dairy producer for a
month based on the greater of the following:</text>
<subparagraph id="H781D8DB67AE64A908BE4F4303F4E4EC6"><enum>(A)</enum><text display-inline="yes-display-inline">Ninety-seven percent of the stabilization
program base of the dairy producer.</text>
</subparagraph><subparagraph id="H1CC8B29C2B67409696460B1D1C892B7E"><enum>(B)</enum><text display-inline="yes-display-inline">Ninety-three percent of the marketings of
milk for the month by the producer.</text>
</subparagraph></paragraph><paragraph id="H41C5E018EF8144C58712FD29DFC0DA80"><enum>(3)</enum><header>Reduction
requirement 3</header><text display-inline="yes-display-inline">When the actual
dairy producer margin has been $4.00 or less for any one month, the handler
shall make payments to a participating dairy producer for a month based on the
greater of the following:</text>
<subparagraph id="HEA06EC9B08BD4CA4B59645EF74343C3A"><enum>(A)</enum><text display-inline="yes-display-inline">Ninety-six percent of the stabilization
program base of the dairy producer.</text>
</subparagraph><subparagraph id="H68DF708137584AAC89E506617B13FF6E"><enum>(B)</enum><text display-inline="yes-display-inline">Ninety-two percent of the marketings of
milk for the month by the producer.</text>
</subparagraph></paragraph></subsection><subsection id="HDE5CDD4CA139452EB2F75DF9231A2C12"><enum>(c)</enum><header>Continuation of
reductions</header><text>The largest level of payment reduction required under
paragraph (1), (2), or (3) of subsection (b) shall be continued for each month
until the Secretary suspends the stabilization program and terminates payment
reductions in accordance with section 136.</text>
</subsection><subsection id="HDE71F26F629544939AB2AC42EED60544"><enum>(d)</enum><header>Payment
reduction exception</header><text display-inline="yes-display-inline">Notwithstanding any preceding subsection of
this section, a handler shall make no payment reductions for a dairy producer
for a month if the producer’s milk marketings for the month are equal to or
less than the percentage of the stabilization program base applicable to the
producer under paragraph (1), (2), or (3) of subsection (b).</text>
</subsection></section><section id="H6D3E39011C354073B903A6FBCF107347"><enum>135.</enum><header>Remitting
monies to Commodity Credit Corporation</header>
<subsection id="H2CB235994C4E4EB886AEC4DE84AFF3D3"><enum>(a)</enum><header>Remitting
monies</header><text display-inline="yes-display-inline">As soon as practicable
after the end of each month during which payment reductions are in effect under
the stabilization program, each handler shall remit to the Commodity Credit
Corporation an amount equal to the amount by which payments to participating
dairy producers are reduced by the handler under section 134.</text>
</subsection><subsection id="H49512199406D4CFBA4B472F716AF8F01"><enum>(b)</enum><header>Availability of
monies</header><text display-inline="yes-display-inline">As soon as practicable
after receipt of monies under subsection (a), the Commodity Credit Corporation
shall make the monies available to the board of directors under section
138.</text>
</subsection></section><section display-inline="no-display-inline" id="HE293ED717B704558AEE43F00AC7CBA37" section-type="subsequent-section"><enum>136.</enum><header>Suspension of
reduced payment requirement</header>
<subsection id="H23FF75002AE744AA9D00A5CE74C294DD"><enum>(a)</enum><header>Suspension
thresholds</header><text display-inline="yes-display-inline">The Secretary
shall suspend the stabilization program whenever the Secretary determines
that—</text>
<paragraph id="H0C37058BF1864FC194FB43BC72AFD764"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy producer margin is greater
than $6.00 per hundredweight of milk for two consecutive months; or</text>
</paragraph><paragraph id="H6B6CCB9BD97F4B19950CE8660103482A"><enum>(2)</enum><text>the price in the
United States for either cheddar cheese or skim milk powder (non-fat dry milk)
is more than 20 percent above the world price for that same commodity for two
consecutive months.</text>
</paragraph></subsection><subsection id="H357178F35229403098230DF9FFB7E714"><enum>(b)</enum><header>Implementation
by handlers</header><text display-inline="yes-display-inline">Handlers shall
cease reducing payments to participating dairy producers under the
stabilization program upon receiving notice of the suspension of the
stabilization program from the Secretary.</text>
</subsection></section><section id="HB7D1080A448D4EB39B45B1F30A7AC291"><enum>137.</enum><header>Audit
requirements</header>
<subsection id="H33107BB9C1DD4D72BC6972123E57AEE2"><enum>(a)</enum><header>Audits of
producer and handler compliance</header>
<paragraph id="HD7EBC34FF19B4242A930A55BB3FBEA4B"><enum>(1)</enum><header>Audits
authorized</header><text display-inline="yes-display-inline">If determined by
the Secretary to be necessary to ensure compliance by participating dairy
producers and handlers with the stabilization program, the Secretary may
conduct periodic audits of participating dairy producers and handlers.</text>
</paragraph><paragraph id="H01375A514ABC4260A1D8BEC68A87E6EE"><enum>(2)</enum><header>Sample of dairy
producers</header><text>Any audit conducted under this subsection shall
include, at a minimum, investigation of a statistically valid and random sample
of participating dairy producers.</text>
</paragraph></subsection><subsection id="H22DD771E28AB4B64A08749E03C001F89"><enum>(b)</enum><header>Audit by
inspector general</header>
<paragraph id="H23AD17E996FE48268E2C42757ABE21A9"><enum>(1)</enum><header>Audit
required</header><text display-inline="yes-display-inline">At the end of the
second year of operation of the stabilization program, the Inspector General of
the Department of Agriculture shall audit and evaluate the effectiveness of the
stabilization program. In conducting the audit and evaluation, the Inspector
General shall include the use of established dairy economic models to ascertain
the effectiveness, operation, and administration of the program.</text>
</paragraph><paragraph id="HD3B1F7B6423D4C52918B8E8C83808A6E"><enum>(2)</enum><header>Submission of
results</header><text>The Inspector General shall submit the results of the
audit and evaluation conducted under paragraph (1) to the Secretary, who shall
make such recommendations to Congress as the Secretary considers appropriate
regarding the stabilization program.</text>
</paragraph></subsection></section><section commented="no" id="H2FCE3380BCBA46F881830FE4283739B3"><enum>138.</enum><header>Board of
directors</header>
<subsection commented="no" id="H43826F77371847BBB8605C43AF1645B1"><enum>(a)</enum><header>Establishment;
purpose</header><text display-inline="yes-display-inline">The Secretary shall
establish a board of directors for the stabilization program for the purpose
of—</text>
<paragraph commented="no" id="H40BCD45A75FB485E8D6FAE370DBEFDFB"><enum>(1)</enum><text>administering the
monies made available to the board of directors under section 135; and</text>
</paragraph><paragraph commented="no" id="H8F01B9B8754A44EFB94B9880ED604997"><enum>(2)</enum><text>determining the
most effective use of such monies.</text>
</paragraph></subsection><subsection commented="no" id="HEBF9D1D8DA8A405693B04E2B2611BF07"><enum>(b)</enum><header>Appointment of
directors</header>
<paragraph commented="no" id="HEF4062D0C62E40A0B91BADF27679B714"><enum>(1)</enum><header>Number and
qualifications</header><text display-inline="yes-display-inline">The Secretary
shall appoint 15 members to serve on the board of directors, who shall be
representative of the United States dairy producer community, taking into
account geographical diversity, cooperative membership, and volumes of milk
produced in various States and regions.</text>
</paragraph><paragraph commented="no" id="HCE9505FC5BA540B3BBE26E4CC22151B1"><enum>(2)</enum><header>Reimbursement of
expenses</header><text display-inline="yes-display-inline">Monies made
available to the board of directors under section 135 may be used to reimburse
a member of the board of directors for reasonable and appropriate costs
incurred by the member to serve on the board of directors.</text>
</paragraph></subsection><subsection commented="no" id="H98D7C8DE7F1947C99AE81E10AD4E18C5"><enum>(c)</enum><header>Decisionmaking</header><text>The
board of directors shall reach decisions by an affirmative vote of
<fraction>2/3</fraction> of its members.</text>
</subsection><subsection commented="no" id="HBDA8791243004C93AAC08A63347FB022"><enum>(d)</enum><header>Removal of dairy
products and expansion of demand</header>
<paragraph commented="no" id="H3ED90FE3C4EC4F4A8074C5A9269A90BF"><enum>(1)</enum><header>Spending
authority</header><text display-inline="yes-display-inline">The board of
directors shall have the authority to use monies made available to the board of
directors under section 135—</text>
<subparagraph commented="no" id="HF3AE82509FF04CC7B379E348DCE0D21B"><enum>(A)</enum><text>to purchase dairy
products through commercial sources for donation to food banks and other food
programs that the Board determines appropriate, within three months of
collecting the funds; and</text>
</subparagraph><subparagraph commented="no" id="H390B20C4D64A481597FC93055EF5D91E"><enum>(B)</enum><text>to expand
consumption and build demand for dairy products.</text>
</subparagraph></paragraph><paragraph commented="no" id="H8C7B6B1ABFF148B49953318D9260E2B9"><enum>(2)</enum><header>No duplication
of effort</header><text display-inline="yes-display-inline">The board of
directors shall ensure that projects supported under paragraph (1) are
compatible with, and do not duplicate, programs supported by the dairy research
and promotion activities conducted under the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4501 et seq.).</text>
</paragraph><paragraph commented="no" id="H146E88C4CE524FBDBB667756627D3833"><enum>(3)</enum><header>Management
contract</header><text>The board of directors may enter into a contract with a
managing entity to carry out this subsection.</text>
</paragraph></subsection><subsection id="H6B4FE4CCF0D14FCEA6081437C40CDF58"><enum>(e)</enum><header>Accounting and
reporting requirement</header>
<paragraph id="HE90B3ABA58B34FEB80492BF4124EC62C"><enum>(1)</enum><header>Accounting</header><text display-inline="yes-display-inline">The board of directors shall keep an
accurate account of all monies made available to the board of directors under
section 135.</text>
</paragraph><paragraph id="H7041BAC0FA254741A56050FE5ED821C5"><enum>(2)</enum><header>Reporting</header><text display-inline="yes-display-inline">Not later than December 31 of each year
that the stabilization program is in effect, the board of directors shall
provide to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report that
provides an accurate accounting of the monies received by the board of
directors during that year and all expenditures made by the board of directors
during that year.</text>
</paragraph></subsection></section></subtitle><subtitle id="HAD2175A18B53474C87996F89062C03B3"><enum>C</enum><header>Commodity Credit
Corporation</header>
<section display-inline="no-display-inline" id="HAED88D56F5394B37BBF5010C69600945" section-type="subsequent-section"><enum>151.</enum><header>Use of Commodity
Credit Corporation</header><text display-inline="no-display-inline">The
Secretary shall use the funds, facilities, and the authorities of the Commodity
Credit Corporation to carry out this title.</text>
</section></subtitle><subtitle id="HCE5A9DE714BF4050ACC742E07A8C6DC9"><enum>D</enum><header>Duration</header>
<section id="HD488587231BA4679B8F0ED4E03CA608A"><enum>161.</enum><header>Duration</header><text display-inline="no-display-inline">The Secretary shall conduct the margin
protection program and the stabilization program during the period beginning on
January 1, 2012, and ending on December 31, 2017.</text>
</section></subtitle><enum>II</enum><header>Federal Milk
Marketing Order Reform</header>
<section id="H3080C142E478424EA0478BF60288E9B2"><enum>201.</enum><header>Required
amendments to Federal milk marketing orders</header>
<subsection id="H4563D4C0D6164A84B15AC47C75968361"><enum>(a)</enum><header>Amendments
required</header>
<paragraph commented="no" id="HC237881CB3DD489989D849E7C4652CF5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Agriculture shall amend each Federal milk marketing 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 (in this title
referred to as a <term>milk marketing order</term>), as required by this
section.</text>
</paragraph><paragraph id="H67EEDD0C97C84B1F9B34180F41A27DBF"><enum>(2)</enum><header>Relation to
other laws</header><text display-inline="yes-display-inline">Except as provided
in section 202, the Secretary shall execute the amendments required by this
section without regard to any provision of section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, as in effect on the day before the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection id="H4DA8987C3ABD4DC89453F3E37BA5493E"><enum>(b)</enum><header>Use of
end-Product price formulas</header><text display-inline="yes-display-inline">The Secretary shall eliminate the use of
end-product price formulas for setting prices for Class III milk, and instead
use a competitive price for setting prices for Class III milk.</text>
</subsection><subsection id="H9789E56B0E4147F385A44E24A6AF40FA"><enum>(c)</enum><header>Administrative
authority</header><text display-inline="yes-display-inline">In addition to and
notwithstanding the authority provided under section 8d of the Agricultural
Adjustment Act (7 U.S.C. 608d), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, the Secretary may—</text>
<paragraph id="HFB2EB9464D54462C87914C11C882FFAF"><enum>(1)</enum><text>require handlers
to report, maintain, and make available all information and records as the
Secretary considers necessary for the administration of any milk marketing
order; and</text>
</paragraph><paragraph id="H6D645D4BBD9445838ECC24297E8E6B5B"><enum>(2)</enum><text>adopt only such
conforming amendments to milk marketing orders as the Secretary determines to
be necessary to implement the amendments required by this section.</text>
</paragraph></subsection></section><section id="H70B7C7DD2C5E4A76BEEF1F69E19476D9"><enum>202.</enum><header>Amendment
process</header>
<subsection id="HE556F787A6D146AEB7B11F11BFFCB050"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The amendments to
milk marketing orders required to be made by section 201 shall be subject to
the provisions of sections 8c(17) and 8c(19) of the Agricultural Adjustment Act
(7 U.S.C. 608c(17) and (19)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, except as follows:</text>
<paragraph id="HB151428B1FF74430BF17E02A6C19C38D"><enum>(1)</enum><header>Notice of final
decision on proposed amendments</header><text display-inline="yes-display-inline">Not later than 270 days after the date of
the enactment of this Act, the Secretary of Agriculture shall publish in the
Federal Register notice of a final decision on the proposed amendments to be
made to milk marketing orders in order to comply with the requirements of
section 201.</text>
</paragraph><paragraph id="HEC7E9F8B48CA4C8A967C0EDBDC6C5A8C"><enum>(2)</enum><header>Producer
referendum</header>
<subparagraph id="HD86C132C72744284A988AF66E887030B"><enum>(A)</enum><header>Referendum
required</header><text display-inline="yes-display-inline">As soon as
practicable after publication of the final decision on the proposed amendments
under paragraph (1), the Secretary shall conduct a producer referendum
regarding the final decision on the proposed amendments.</text>
</subparagraph><subparagraph id="H1FBA6B7834134DF3BC58DE3733D10EF6"><enum>(B)</enum><header>Terms of
referendum; exceptions</header><text display-inline="yes-display-inline">The
producer referendum shall be conducted in the manner provided by section 8c(19)
of the Agricultural Adjustment Act (7 U.S.C. 608c(19)), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, except
that—</text>
<clause id="H5B9F0C9D190A4BF0BEA501DB81AA5C97"><enum>(i)</enum><text>the
referendum shall be a single referendum upon which approval or failure of the
proposed amendments to all milk marketing orders shall depend; and</text>
</clause><clause id="H10E9937A12704540998589DEF545F19D"><enum>(ii)</enum><text>the
proposed amendments shall require approval by one-half of participating
producers or by volume of production (rather than two-thirds) in order for the
referendum to pass and the proposed amendments to take effect.</text>
</clause></subparagraph><subparagraph id="H4B80CB4BE85C4AB78D80F1B7A06DBDA1"><enum>(C)</enum><header>Effect of
failure</header><text>If the referendum fails, the milk marketing orders shall
remain in force as in effect before the proposed amendments were
published.</text>
</subparagraph></paragraph></subsection><subsection id="H708DA87822684578AF98DEB2BFF0EB46"><enum>(b)</enum><header>Effect of Court
Order</header><text display-inline="yes-display-inline">In the event that the
Secretary is enjoined or otherwise restrained by a court order from executing
the amendments to milk marketing orders required by section 201, the length of
time for which that injunction or other restraining order is effective shall be
added to any time limitation in effect under paragraph (1) or (2) of subsection
(a), 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 in
effect.</text>
</subsection><subsection id="HB663F9F084A2404AA43A72892172D825"><enum>(c)</enum><header>Relation to
other amendment authority</header><text display-inline="yes-display-inline">Nothing in this title affects the authority
of the Secretary to subsequently amend milk marketing orders, or the ability of
producers or other persons to seek such amendments, in accordance with the
rulemaking process provided by section 8c(17) of the Agricultural Adjustment
Act (7 U.S.C. 608c(17)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937.</text>
</subsection></section><section id="HC26196071499436D90C2AF71981135D8"><enum>203.</enum><header>Development of
effective balancing programs for milk markets</header>
<subsection id="H9F98856CF4684BFAB4386FCC3F1EA647"><enum>(a)</enum><header>Advanced notice
of proposed rulemaking</header><text>Not later than 90 days after the enactment
of this Act, the Secretary of Agriculture shall publish in the Federal Register
an Advanced Notice of Proposed Rulemaking seeking public comment on, and
proposals recommending, effective programs that address the issues of the costs
of balancing milk markets, including the use of inter- and intra-marketing
transportation credits. The Secretary shall solicit comments and proposals
that—</text>
<paragraph id="HECC142B9B5914FABB1D9DE8CBA54EC94"><enum>(1)</enum><text>address the
market’s balancing needs;</text>
</paragraph><paragraph id="H18381E02BDF043FEAABC6AE827808B4B"><enum>(2)</enum><text>target support to
those producers and handlers who provide balancing services; and</text>
</paragraph><paragraph id="HB24DAFCC697D4309BCFF83D00BC0D186"><enum>(3)</enum><text>provide
compensation that is in line with the costs of providing the services and with
the benefits to the market of the services.</text>
</paragraph></subsection><subsection id="H7D189607F6C342C6A6E425CA827E95CF"><enum>(b)</enum><header>Timeliness of
rulemaking</header><text>Not later than one year after the date of the
enactment of this Act, the Secretary shall—</text>
<paragraph id="HF0DD73F454034A12BBA55EAE4C47BBAE"><enum>(1)</enum><text display-inline="yes-display-inline">initiate formal rulemaking (by publishing
in the Federal Register a hearing notice) in response to the public comments
received under subsection (a); or</text>
</paragraph><paragraph id="HA81E57961F2A4A41A885E5296D84814A"><enum>(2)</enum><text>publish notice of
the reasons that such a rulemaking is not to be initiated.</text>
</paragraph></subsection></section><enum>III</enum><header>Repeal of
Superseded Provisions</header>
<section id="HAF8E4E21C26F4BB78F681092F5C0B855"><enum>301.</enum><header>Repeal of dairy
product price support and milk income loss contract programs</header>
<subsection id="H6440B515A260462395EB70D7369B17A4"><enum>(a)</enum><header>Repeal of dairy
product price support program</header><text>Section 1501 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed.</text>
</subsection><subsection id="H6AC22CE86047474E918D6BACD060F1EB"><enum>(b)</enum><header>Repeal of milk
income loss contract program</header><text>Section 1506 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.</text>
</subsection></section><section id="HE98067183AAF414998CAA21099F4AADE"><enum>302.</enum><header>Repeal of
permanent price support authority for milk</header>
<subsection id="HCC9BE62CB8994E23904E020261452C91"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 201 of the Agricultural Act of 1949
(7 U.S.C. 1446) is amended—</text>
<paragraph id="H1DBEAE61DC4D4540A65A0F0D2A1A09D7"><enum>(1)</enum><text>in subsection (a),
by striking <quote>milk,</quote>; and</text>
</paragraph><paragraph id="H73DCE9C3557842599DF234DC8224C025"><enum>(2)</enum><text>by striking
subsections (c) and (d).</text>
</paragraph></subsection><subsection id="H7DAE85EF7AB74EA394DD5FB7B1E95C83"><enum>(b)</enum><header>Exclusion from
price support for other nonbasic agricultural commodities</header><text>Section
301 of the Agricultural Act of 1949 (7 U.S.C. 1447) is amended by inserting
<quote>(other than milk)</quote> after <quote>agricultural
commodity</quote>.</text>
</subsection></section><section id="HEA69BD0484F642BB9460884559F22F61" section-type="subsequent-section"><enum>303.</enum><header>Repeal of dairy
export incentive program</header><text display-inline="no-display-inline">Section 153 of the Food Security Act of 1985
(15 U.S.C. 713a–14) is repealed.</text>
</section><section commented="no" id="H9E00B73B69F541B4A6C860B55B470D34"><enum>304.</enum><header>Effective
date</header><text display-inline="no-display-inline">The amendments made by
this title shall take effect on January 1, 2012.</text>
</section>