[Congressional Record (Bound Edition), Volume 146 (2000), Part 17]
[House]
[Pages 24353-24354]
[From the U.S. 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.
  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

[[Page 24354]]

     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.--
       ``(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.''.

  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 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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