[Congressional Record Volume 146, Number 135 (Wednesday, October 25, 2000)]
[House]
[Pages H10874-H10875]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DAIRY MARKET ENHANCEMENT ACT OF 2000
Mr. SIMPSON. Mr. Speaker, I ask unanimous consent to take from the
Speaker's table the Senate bill (S. 2773) to amend the Agricultural
Marketing Act of 1946 to enhance dairy markets through dairy product
mandatory reporting, and for other purposes, and ask for its immediate
consideration in the House.
The Clerk read the title of the Senate bill.
Mr. KIND. Mr. Speaker, I rise tonight to share my strong support for
S. 2773--the Dairy Marketing Enhancement Act of 2000. To our nation's
dairy farmers this legislation is commonly referred to as the mandatory
price reporting bill. This legislation was passed by the Senate earlier
today. Identical legislation, H.R. 5495, was introduced by myself,
Congressman Simpson and others. This legislation is urgently needed to
restore producer confidence in the dairy market following recent cheese
and butter price/inventory reporting fiascoes that sent markets
plunging.
As my colleagues who represent dairy farmers know, recent reporting
errors in cheese and butter stocks have highlighted the need to make
reporting of storable dairy products mandatory, verifiable and
enforceable. A Chicago Mercantile Exchange warehouse reporting error
resulted in a sizable inventory adjustment and caused a 10 cent drop in
the double a butter price.
This latest inventory reporting error came less than a year after a
similar error with the U.S. Department of Agriculture cheese inventory.
Following that reporting error cheese prices dropped within a week to
their lowest levels in almost a decade. These events have caused a
great deal of concern among our nation's dairy producers.
Under current law, manufacturers of dairy products voluntarily
provide the USDA with the amount and price of dairy commodities (cheese
and butter) that the manufacturer has sold during a given month.
This information is then used by the USDA to establish the minimum
monthly prices under the federal milk marketing order system. This
legislation will foster a more accurate price and inventory reporting
system for dairy products and enable farmers to base business decisions
on the most accurate information.
By requiring mandatory reporting, dairy producers will be given more
accurate, complete and timely market information. This information will
lead to a better price discovery for all dairy products and allow
producers and other market participants to make fully informed business
decisions with respect to the marketing of raw milk.
Mr. Speaker, since the beginning of the calender year, dairy farmers
have experienced excruciating low milk prices. These inhospitable
market conditions have resulted in the loss of 3-to-4 family dairy
farmers in my home state of Wisconsin each day. With the loss of these
farmers, the economies of our rural communities are also placed under
extreme financial pressure.
While this legislation is no panacea for ailing milk prices, it will
go a long way in improving prevailing attitude and restore some much
needed optimism.
It is for this reason that I ask all of my colleagues to join me in
passing this simple but important piece of legislation.
Mr. STENHOLM. Mr. Speaker, I rise in strong support of S. 2733. The
bill represents a consensus among processor and producer groups. It
will benefit the entire industry.
Mr. Speaker, under recently reformed Federal milk marketing orders,
monthly minimum prices are determined based on market prices for
manufactured dairy products, including nonfat dry milk, butter, cheddar
cheese, and whey. USDA determines those product prices by surveying
manufacturers. The responses are voluntary and USDA has limited
authority to verify accuracy.
Mr. Speaker, because the determination of accurate market prices is
key to establishing milk orders that are reflective of supply and
demand, processors have agreed to subject themselves to the
requirements that will result from the passage of this bill. The bill
requires that USDA use the current survey format as a starting point
for mandating reporting. For many processors, this will mean that
little will change with the establishment of the mandatory program.
Mr. Speaker, in order to ensure accuracy, the bill allows the
Secretary to require that reporting companies make their records
available for Department audit. Any willful and intentional violation
of requirements to make accurate and timely reports is punishable by a
civil fine of up to $20,000 under the terms of the bill.
The bill also requires that USDA guard the confidentiality of
information from each reporting company.
Mr. Speaker, I urge my colleagues to support S. 2733.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Idaho?
There was no objection.
The Clerk read the Senate bill, as follows:
S. 2773
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 Market Enhancement Act
of 2000''.
SEC. 2. DAIRY PRODUCT MANDATORY REPORTING.
The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et
seq.) is amended by adding at the end the following:
``Subtitle C--Dairy Product Mandatory Reporting
``SEC. 271. PURPOSE.
``The purpose of this subtitle is to establish a program of
information regarding the marketing of dairy products that--
``(1) provides information that can be readily understood
by producers and other market participants, including
information with respect to prices, quantities sold, and
inventories of dairy products;
``(2) improves the price and supply reporting services of
the Department of Agriculture; and
``(3) encourages competition in the marketplace for dairy
products.
``SEC. 272. DEFINITIONS.
``In this subtitle:
``(1) Dairy products.--The term `dairy products' means
manufactured dairy products that are used by the Secretary to
establish minimum prices for Class III and Class IV milk
under a 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.
``(2) Manufacturer.--The term `manufacturer' means any
person engaged in the business of buying milk in commerce for
the purpose of manufacturing dairy products.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 273. MANDATORY REPORTING FOR DAIRY PRODUCTS.
``(a) Establishment.--The Secretary shall establish a
program of mandatory dairy product information reporting that
will--
``(1) provide timely, accurate, and reliable market
information;
``(2) facilitate more informed marketing decisions; and
``(3) promote competition in the dairy product
manufacturing industry.
``(b) Requirements.--
``(1) In general.--In establishing the program, the
Secretary shall only--
``(A)(i) subject to the conditions described in paragraph
(2), require each manufacturer to report to the Secretary
information concerning the price, quantity, and moisture
content of dairy products sold by the manufacturer; and
``(ii) modify the format used to provide the information on
the day before the date of enactment of this subtitle to
ensure that the information can be readily understood by
market participants; and
``(B) require each manufacturer and other person storing
dairy products to report to the Secretary, at a periodic
interval determined by the Secretary, information on the
quantity of dairy products stored.
``(2) Conditions.--The conditions referred to in paragraph
(1)(A)(i) are that--
``(A) the information referred to in paragraph (1)(A)(i) is
required only with respect to those package sizes actually
used to establish minimum prices for Class III or Class IV
milk under a Federal milk marketing order;
``(B) the information referred to in paragraph (1)(A)(i) is
required only to the extent that the information is actually
used to establish minimum prices for Class III or Class IV
milk under a Federal milk marketing order;
``(C) the frequency of the required reporting under
paragraph (1)(A)(i) does not exceed the frequency used to
establish minimum prices for Class III or Class IV milk under
a Federal milk marketing order; and
``(D) the Secretary may exempt from all reporting
requirements any manufacturer that processes and markets less
than 1,000,000 pounds of dairy products per year.
``(c) Administration.--
[[Page H10875]]
``(1) In general.--The Secretary shall promulgate such
regulations as are necessary to ensure compliance with, and
otherwise carry out, this subtitle.
``(2) Confidentiality.--
``(A) In general.--Except as otherwise directed by the
Secretary or the Attorney General for enforcement purposes,
no officer, employee, or agent of the United States shall
make available to the public information, statistics, or
documents obtained from or submitted by any person under this
subtitle other than in a manner that ensures that
confidentiality is preserved regarding the identity of
persons, including parties to a contract, and proprietary
business information.
``(B) Relation to other requirements.--Notwithstanding any
other provision of law, no facts or information obtained
under this subtitle shall be disclosed in accordance with
section 552 of title 5, United States Code.
``(3) Verification.--The Secretary shall take such actions
as the Secretary considers necessary to verify the accuracy
of the information submitted or reported under this subtitle.
``(4) Enforcement.--
``(A) Unlawful act.--It shall be unlawful and a violation
of this subtitle for any person subject to this subtitle to
willfully fail or refuse to provide, or delay the timely
reporting of, accurate information to the Secretary in
accordance with this subtitle.
``(B) Order.--After providing notice and an opportunity for
a hearing to affected persons, the Secretary may issue an
order against any person to cease and desist from continuing
any violation of this subtitle.
``(C) Appeal.--
``(i) In general.--The order of the Secretary under
subparagraph (B) shall be final and conclusive unless an
affected person files an appeal of the order of the Secretary
in United States district court not later than 30 days after
the date of the issuance of the order.
``(ii) Findings.--A finding of the Secretary under this
paragraph shall be set aside only if the finding is found to
be unsupported by substantial evidence.
``(D) Noncompliance with order.--
``(i) In general.--If a person subject to this subtitle
fails to obey an order issued under this paragraph after the
order has become final and unappealable, or after the
appropriate United States district court has entered a final
judgment in favor of the Secretary, the United States may
apply to the appropriate United States district court for
enforcement of the order.
``(ii) Enforcement.--If the court determines that the order
was lawfully made and duly served and that the person
violated the order, the court shall enforce the order.
``(iii) Civil penalty.--If the court finds that the person
violated the order, the person shall be subject to a civil
penalty of not more than $10,000 for each offense.
``(5) Fees.--The Secretary shall not charge or assess a
user fee, transaction fee, service charge, assessment,
reimbursement fee, or any other fee under this subtitle for--
``(A) the submission or reporting of information;
``(B) the receipt or availability of, or access to,
published reports or information; or
``(C) any other activity required under this subtitle.
``(6) Recordkeeping.--Each person required to report
information to the Secretary under this subtitle shall
maintain, and make available to the Secretary, on request,
original contracts, agreements, receipts, and other records
associated with the sale or storage of any dairy products
during the 2-year period beginning on the date of the
creation of the records.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.
The Senate bill was ordered to be read a third time, was read the
third time, and passed, and a motion to reconsider was laid on the
table.
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