[109th Congress Public Law 215]
[From the U.S. Government Printing Office]


[DOCID: f:publ215.109]

[[Page 327]]

                   MILK REGULATORY EQUITY ACT OF 2005

[[Page 120 STAT. 328]]

Public Law 109-215
109th Congress

                                 An Act


 
  To ensure regulatory equity between and among all dairy farmers and 
 handlers for sales of packaged fluid milk in federally regulated milk 
marketing areas and into certain non-federally regulated milk marketing 
          areas from federally regulated areas, and for other 
             purposes. <<NOTE: Apr. 11, 2006 -  [S. 2120]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Milk Regulatory Equity Act 
of 2005.>> assembled,

SECTION 1. <<NOTE: 7 USC 601 note.>> SHORT TITLE.

    This Act may be cited as the ``Milk Regulatory Equity Act of 2005''.

SEC. 2. MILK REGULATORY EQUITY.

    (a) Minimum Milk Prices for Handlers; Exemption.--Section 8c(5) of 
the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, is 
amended by adding at the end the following new subparagraphs:
    ``(M) Minimum Milk Prices for Handlers.--
            ``(i) Application of minimum price requirements.--
        Notwithstanding any other provision of this section, a milk 
        handler described in clause (ii) shall be subject to all of the 
        minimum and uniform price requirements of a Federal milk 
        marketing order issued pursuant to this section applicable to 
        the county in which the plant of the handler is located, at 
        Federal order class prices, if the handler has packaged fluid 
        milk product route dispositions, or sales of packaged fluid milk 
        products to other plants, in a marketing area located in a State 
        that requires handlers to pay minimum prices for raw milk 
        purchases.
            ``(ii) Covered milk handlers.--
        Except <<NOTE: Applicability.>> as provided in clause (iv), 
        clause (i) applies to a handler of Class I milk products 
        (including a producer-handler or producer operating as a 
        handler) that--
                    ``(I) operates a plant that is located within the 
                boundaries of a Federal order milk marketing area (as 
                those boundaries are in effect as of the date of the 
                enactment of this subparagraph);
                    ``(II) has packaged fluid milk product route 
                dispositions, or sales of packaged fluid milk products 
                to other plants, in a milk marketing area located in a 
                State that requires handlers to pay minimum prices for 
                raw milk purchases; and
                    ``(III) is not otherwise obligated by a Federal milk 
                marketing order, or a regulated milk pricing plan 
                operated

[[Page 120 STAT. 329]]

                by a State, to pay minimum class prices for the raw milk 
                that is used for such dispositions or sales.
            ``(iii) Obligation to pay minimum class prices.--For 
        purposes of clause (ii)(III), the Secretary may not consider a 
        handler of Class I milk products to be obligated by a Federal 
        milk marketing order to pay minimum class prices for raw milk 
        unless the handler operates the plant as a fully regulated fluid 
        milk distributing plant under a Federal milk marketing order.
            ``(iv) Certain handlers exempted.--Clause (i) does not apply 
        to--
                    ``(I) a handler (otherwise described in clause (ii)) 
                that operates a nonpool plant (as defined in section 
                1000.8(e) of title 7, Code of Federal Regulations, as in 
                effect on the date of the enactment of this 
                subparagraph);
                    ``(II) a producer-handler (otherwise described in 
                clause (ii)) for any month during which the producer-
                handler has route dispositions, and sales to other 
                plants, of packaged fluid milk products equaling less 
                than 3,000,000 pounds of milk; or
                    ``(III) a handler (otherwise described in clause 
                (ii)) for any month during which--
                          ``(aa) less than 25 percent of the total 
                      quantity of fluid milk products physically 
                      received at the plant of the handler (excluding 
                      concentrated milk received from another plant by 
                      agreement for other than Class I use) is disposed 
                      of as route disposition or is transferred in the 
                      form of packaged fluid milk products to other 
                      plants; or
                          ``(bb) less than 25 percent in aggregate of 
                      the route disposition or transfers are in a 
                      marketing area or areas located in one or more 
                      States that require handlers to pay minimum prices 
                      for raw milk purchases.

    ``(N) Exemption for Certain Milk Handlers.--Notwithstanding any 
other provision of this section, no handler with distribution of Class I 
milk products in the marketing area described in Order No. 131 shall be 
exempt during any month from any minimum price requirement established 
by the Secretary under this subsection if the total distribution of 
Class I products during the preceding month of any such handler's own 
farm production exceeds 3,000,000 pounds.
    ``(O) Rule of Construction Regarding Producer-Handlers.--
Subparagraphs (M) and (N) shall not be construed as affecting, 
expanding, or contracting the treatment of producer-handlers under this 
subsection except as provided in such subparagraphs.''.
    (b) Exclusion of Nevada From Federal Milk Marketing Orders.--Section 
8c(11) of the Agriculture Adjustment Act (7 U.S.C. 608c(11)), reenacted 
with amendments by the Agriculture Marketing Agreement Act of 1937, is 
amended--
            (1) in subparagraph (C), by striking the last sentence; and
            (2) by adding at the end the following new subparagraph:

    ``(D) In the case of milk and its products, no county or other 
political subdivision of the State of Nevada shall be within the 
marketing area definition of any order issued under this section.''.

[[Page 120 STAT. 330]]

    (c) Records and <<NOTE: 7 USC 608c note.>> Facility Requirements.--
Notwithstanding any other provision of this section, or the amendments 
made by this section, a milk handler (including a producer-handler or a 
producer operating as a handler) that is subject to regulation under 
this section or an amendment made by this section shall comply with the 
requirements of section 1000.27 of title 7, Code of Federal Regulations, 
or a successor regulation, relating to handler responsibility for 
records or facilities.

    (d) Effective <<NOTE: 7 USC 608c note.>> Date and Implementation.--
The amendments made by this section take effect on the first day of the 
first month beginning more than 15 days after the date of the enactment 
of this Act. To accomplish the expedited implementation of these 
amendments, effective on the date of the enactment of this Act, the 
Secretary of Agriculture shall include in the pool distributing plant 
provisions of each Federal milk marketing order issued under 
subparagraph (B) of section 8c(5) of the Agriculture Adjustment Act (7 
U.S.C. 608c(5)), reenacted with amendments by the Agriculture Marketing 
Agreement Act of 1937, a provision that a handler described in 
subparagraph (M) of such section, as added by subsection (a) of this 
section, will be fully regulated by the order in which the handler's 
distributing plant is located. These amendments shall not be subject to 
a referendum under section 8c(19) of such Act (7 U.S.C. 608c(19)).

    Approved April 11, 2006.

LEGISLATIVE HISTORY--S. 2120:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD:
                                                        Vol. 151 (2005):
                                    Dec. 16, considered and passed 
                                        Senate.
                                                        Vol. 152 (2006):
                                    March 28, considered and passed 
                                        House.

                                  <all>