[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 670 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 670

                   To improve Federal dairy programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 9, 2013

Mrs. Gillibrand (for herself and Ms. Collins) introduced the following 
      bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
                   To improve Federal dairy programs.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dairy Pricing Reform Act of 2013''.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

SEC. 3. FEDERAL MILK MARKETING ORDER PROGRAM PRE-HEARING PROCEDURE FOR 
              CLASS III PRICING.

    (a) In General.--The Secretary shall use the pre-hearing procedure 
described in this section to determine to conduct a hearing to consider 
alternative formulas for Class III milk product pricing under section 
8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937.
    (b) Requests for Proposals.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary shall issue a request for 
        the submission by interested persons of preliminary proposals 
        for replacement of the Class III milk product pricing formula.
            (2) Preliminary proposals.--Preliminary proposals submitted 
        under paragraph (1)--
                    (A) may include competitive pay price formulas; and
                    (B) shall provide sufficient detail in concept to 
                serve as the basis for the convening by the Secretary 
                of a public information session for review and 
                discussion in accordance with section 900.24 of title 
                7, Code of Federal Regulations (as in effect on the 
                date of enactment of this Act), but need not conform 
                with the other procedural requirements of part 900 of 
                title 7, Code of Federal Regulations (as in effect on 
                the date of enactment of this Act).
    (c) Pre-Hearing Information Session Review.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall convene a public 
        information session under section 900.24 of title 7, Code of 
        Federal Regulations (as in effect on the date of enactment of 
        this Act).
            (2) Requirements.--The Secretary shall review all 
        preliminary proposals submitted under this section that are of 
        sufficient conceptual detail to allow for the review described 
        in paragraph (1).
    (d) Hearing Determination.--
            (1) In general.--Not later than 90 days after the conduct 
        of the public information session under subsection (c), the 
        Secretary shall determine whether to conduct a formal hearing 
        in accordance with part 900 of title 7, Code of Federal 
        Regulations (as in effect on the date of enactment of this 
        Act).
            (2) Hearing to be conducted.--If the Secretary determines 
        under paragraph (1) to conduct a formal hearing, the Secretary 
        shall issue notice and conduct the hearing in accordance with 
        part 900 of title 7, Code of Federal Regulations (as in effect 
        on the date of enactment of this Act).
            (3) Hearing not to be conducted.--If the Secretary 
        determines under paragraph (1) not to conduct a formal hearing, 
        not later than 90 days after that determination, the Secretary 
        shall submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition and 
        Forestry of the Senate a written report that explains the basis 
        for the decision.
    (e) Proceeding With a Hearing at Any Time.--Consistent with the 
purposes of this section, the Secretary may dispense with the pre-
hearing requirements of this section and initiate at any time a formal 
hearing under part 900 of title 7, Code of Federal Regulations (as in 
effect on the date of enactment of this Act).

SEC. 4. FEDERAL MILK MARKETING ORDERS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall conduct hearings--
            (1) to analyze the implications of transitioning from a 4-
        class system for milk products to a 2-class system;
            (2) to explore methods to improve signals for price 
        discovery in the short- and long-term to allow dairy producers 
        to better use risk management tools; and
            (3) to assess whether a 2-class competitive pay pricing 
        system for milk products would be more or less transparent than 
        the system in effect as of the day before the date of enactment 
        of this Act.
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