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which he shall deposit all payments made rors resulting in moneys due (a) the by handlers pursuant to $$ 1063.61, market administrator from such han1063.62, 1063,84, and 1063.86 and out of dler, (b) such handler from the market which he shall make all payments to administrator, or (c) any producer or handlers pursuant to $$ 1063.85 and cooperative association from such han1063.86.

dler, the market administrator shall 134 F.R. 18665, Nov. 22, 1969)

promptly notify such handler of any

amount so due; and payment thereof 8 1063.84 Payments to the producer

shall be made on or before the next settlement fund.

date for making payment set forth in On or before the 12th day after the the provisions under which such error end of the month each handler shall pay occurred. to the market administrator the amount, if any, by which the total amounts speci

8 1063.87 Expense of administration. fied in paragraph (a) of this section ex- As his pro rata share of the expense ceed the amounts specified in paragraph of administration of the order, each (b) of this section:

handler shall pay to the market ad(a) The total of the net pool obliga- ministrator on or before the 15th day tion computed pursuant to $1063.70 for after the end of the month three cents such handler; and

per hundredweight or such lesser amount (b) The sum of

as the Secretary may prescribe, with re(1) The value of such handler's pro- spect to (a) producer milk, (b) other ducer milk at the applicable uniform

source milk allocated to Class I pursuant prices specified in § 1063.80; and

to $ 1063.46(a) (3) and (7) and the (2) The value at the weighted aver- corresponding steps of $ 1063.46 (b) and age price applicable at the location of (c) Class I milk disposed of from a the plant(s), from which received (not partially regulated distributing plant on to be less than the value at the Class II routes in the marketing area that exprice) with respect to other source milk ceeds Class I milk received during the for which a value is computed pursuant month at such plant from pool plants to $ 1063.70(e).

and other order plants. (29 F.R. 10938, July 30, 1964)

(29 F.R. 10938, July 30, 1964) 8 1063.85 Payments out of the producer- § 1063.88 Marketing services. settlement fund.

(a) Except as set forth in paragraph On or before the 14th day after the (b) of this section, each handler in makend of each month the market adminis- ing payments to each producer pursuant trator shall pay to each handler the to $ 1063.80, shall deduct 6 cents per hunamount, if any, by which the amount dredweight or such lesser amount as the computed pursuant to § 1063.84 (b) ex- Secretary may prescribe with respect to ceeds the amount computed pursuant to all milk received by such handler from § 1063.84(a): Provided, That if the bal- such producer (except such handler's ance in the producer-settlement fund is own farm production), during the month, insufficient to make all payments pur- and shall pay such deductions to the suant to this paragraph, the market ad- market administrator not later than the ministrator shall reduce uniformly such 15th day after the end of the month. payments and shall complete such pay- Such money shall be used by the market ments as soon as the necessary funds are administrator to verify or establish available. A handler who has not re- weights, samples, and tests of milk received the balance of such payments ceived by handlers from such producers from the market administrator shall during the month and to provide such not be considered in violation of $ 1063.80 producers with market information. if he reduces his payments to producers (b) In case of producers for whom a by not more than the amount of the cooperative association is actually perreduction in payment from the pro- forming, as determined by the Secretary, ducer-settlement fund.

the services set forth in paragraph (a) (29 F.R. 10938, July 30, 1964]

of this section, each handler shall make

in lieu of the deductions specified in § 1063.86 Adjustment of accounts.

paragraph (a) of this section, such deWhenever audit by the market ad- ductions as are authorized by such proministrator of any handler's reports, ducers and, on or before the 15th day books, records, or accounts discloses er- after the end of each month, pay over

such deductions to the association ren- of the handler against whom the oblidering such services.

gation is sought to be imposed. § 1063.89 Termination of obligations.

(d) Any obligation on the part of the

market administrator to pay a handler The provisions of this section shall any money which such handler claims apply to any obligation under this part to be due him under the terms of this for the payment of money.

part shall terminate 2 years after the (a) The obligation of any handler to end of the calendar month during which pay money required to be paid under the the skim milk and butterfat involved in terms of this part shall, except as pro- the claim were received if an underpayvided in paragraphs (b) and (c) of this ment is claimed, or 2 years after the section, terminate 2 years after the end of the calendar month during which last day of the calendar month during the payment (including deduction or setwhich the market administrator receives off by the market administrator) was the handler's utilization report on the made by the handler if a refund on such skim milk and butterfat involved in such payment is claimed, unless such handler, obligation, unless within such 2-year within the applicable period of time, period the market administrator noti- files pursuant to section 8c(15) (A) of fies the handler in writing that such the Act, a petition claiming such money. money is due and payable. Service of

[25 F.R. 12987, Dec, 20, 1960, as amended at such notice shall be complete upon mail- 34 F.R. 18665, Nov. 22, 1969) ing to the handler's last known address, and it shall contain but need not be

MISCELLANEOUS PROVISIONS limited to, the following information: § 1063.90 Effective time. (1) The amount of the obligation;

The provisions of this part, or any (2) The month(s) during which the

amendment to this part, shall become skim milk and butterfat, with respect to effective at such time as the Secretary which the obligation exists, were received may declare and shall continue in force or handled; and

until suspended or terminated. (3) If the obligation is payable to one or more producers or to an association § 1063.91 Suspension or termination. of producers, the name of such pro- The Secretary shall, whenever he finds ducer(s) or association of producers, or this part, or any provision hereof, obif the obligation is payable to the market structs or does not tend to effectuate the administrator, the account for which it declared policy of the act, terminate or is to be paid.

suspend the operation of this part or any (b) If a handler fails or refuses, with such provision of this part. respect to any obligation under this

§ 1063.92 Continuing obligations. part, to make available to the market administrator or his representatives all

If, upon the suspension or termination books and records required by this

of any or all provisions of this part, there part to be made available, the market

are any obligations hereunder the final

accrual or ascertainment of which readministrator may, within the two-year period provided for in paragraph (a) of

quire further acts by any person (inthis section, notify the handler in writ

cluding the market administrator) such ing of such failure or refusal. If the

further acts shall be performed notwithmarket administrator so notifies a han

standing such suspension or termination. dler, the said two-year period with re- § 1063.93 Liquidation. spect to such obligation shall not begin Upon the suspension or termination to run until the first day of the calendar of the provisions of this part, except this month following the month during section, the market administrator, or which all such books and records per- such other liquidating agent as the Sectaining to such obligation are made retary may designate, shall, if so directed available to the market administrator or by the Secretary, liquidate the business his representatives.

of the market administrator's office, dis(c) Notwithstanding the provisions of pose of all property in his possession or paragraphs (a) and (b) of this section, control, including accounts receivable, a handler's obligation under this part and execute and deliver all assignments to pay money shall not be terminated or other instruments necessary or apwith respect to any transaction involving propriate to effectuate any such disposifraud or willful concealment of a fact, tion. If a liquidating agent is so desigmaterial to the obligation, on the part nated all accounts, books, and records

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of the market administrator shall be transferred promptly to such liquidating agent. If, upon such liquidation the funds on hand exceed the amounts required to pay outstanding obligations of the office of the market administrator and to pay necessary expenses of liquidation and distribution, such excess shall be distributed to contributing handlers and producers in an equitable manner. 8 1063.94 Agents.

The Secretary may, by designation in writing, name any oficer or employee of the United States to act as his agent or representative in connection with any of the provisions of this part. $ 1063.95 Separability of provisions.

If any provision of this part or its application to any person or circumstance, is held invalid, the application of such provision, and of the remaining provisions of this part, to other persons or circumstances shall not be affected thereby.


DEFINITIONS Sec. 1064.1 Act. 1064.2 Secretary. 1064.3 Department. 1064.4 Person. 1064.5 Cooperative association. 1064.6 Greater Kansas City marketing

area. 1064.7 Handler. 1064.8 Producer-handler. 1064.9 Producer. 1064.10 Dist buting plant. 1064.11 Supply plant. 1064,12

Pool plant. 1064.13 Nonpool plant. 1064.14 Producer milk. 1064.15 Diverted milk. 1064.16 Other source milk. 1064.17 Fluid milk product. 1064.17a Filled milk. 1064.18 Route. 1064.19 Base milk and excess milk.

MARKET ADMINISTRATOR 1064.20 Designation. 1064.21 Powers. 1064.22 Duties.

REPORTS, RECORDS, AND FACILITIES 1064.30 Reports of receipts and utilization. 1064.31 Payroll reports. 1064.32 Other reports. 1064.33 Records and facilities. 1064.34 Retention of records.

CLASSIFICATION Sec. 1064.40 Skim milk and butterfat to be

classified 1064.41 Classes of utilization. 1064.42 Shrinkage. 1064.43 Responsibility of handlers and re

classification of milk. 1064.44 Transfers. 1064.45 Computation of skim milk and

butterfat in each class. 1064.46 Allocation of skim milk and but

terfat classified.

MINIMUM PRICES 1064.50 Basic formula price. 1064.51

Class prices. 1064.52 Butterfat differentials to handlers. 1064.53 Location adjustments to handlers. 1064.54 Use of equivalent prices.

APPLICATION OF PROVISIONS 1064.60 Exempt handlers. 1064.61 Obligations of handler operating a

partially regulated distributing

plant. 1064.62 Plants subject to other Federal


DETERMINATION OF BASE 1064.65 Computation of daily base for each

producer. 1064.66 Daily base rules.

DETERMINATION OF UNIFORM PRICI 1064.70 Computation of the net pool obli

gation of each pool handler. 1064.71 Computation of uniform price. 1064.72 Computation of uniform prices for

base milk and excess milk.

PAYMENTS 1064.80 Time and method of payment. 1064.81 Location differentials to producers

and on nonpool milk. 1064.82 Producer butterfat differential. 1064.83 Producer-settlement fund. 1064.84 Payments to the producer-settle

ment fund. 1064.85 Payments out of the producer-set

tlement fund. 1064.86 Adjustment of accounts. 1064.87 Marketing service. 1064.88 Expense of administration. 1064.89 Termination of obligation. EFFECTIVE TIME, SUSPENSION, OR TERMINATION 1064.90 Effective time. 1064.91 Suspension or termination. 1064.92 Continuing obligations. 1064.93 Liquidation.

MISCELLANEOUS PROVISIONS 1064.100 Agents. 1064.101 Separability of provisions.

AUTHORITY: The provisions of this part 1064 issued under secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674.

SOURCE: The provisions of this part 1064 appear at 31 F.R. 11345, Aug. 27, 1966, unless otherwise noted.

DEFINITIONS 8 1064.1 Act.

“Act" means Public Act No. 10, 73d Congress, as amended and as reenacted and amended by the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.). § 1064.2 Secretary.

"Secretary" means the Secretary of Agriculture of the United States or any officer or employee of the United States authorized to exercise the powers and perform the duties of the Secretary of Agriculture. § 1064.3 Department.

"Department” means the U.S. Department of Agriculture. § 1064.4 Person.

"Person" means any individual, partnership, corporation, association, or other business unit. § 1064.5 Cooperative association.

“Cooperative association” means any cooperative marketing association of producers which the Secretary determines after application by the association:

(a) To be qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the Capper-Volstead Act”; and

(b) To have full authority in the sale of milk of its members and is engaged in making collective sales of or marketing milk or milk products for its members. § 1064.6 Greater Kansas City marketing


Marshall. Brown.

Miami. Clay.

Morris. Cloud.

Nemaba. Dickinson.

Ottawa. Doniphan.

Pottawatomie. Douglas.

Republic. Geary.

Riley. Jackson.

Saline. Jefferson,

Shawnee. Johnson.

Wabaunsee. Leavenworth.

Washington. Lyon.

Wyandotte. § 1064.7 Handler.

“Handler" means:

(a) Any person in his capacity as the operator of a pool plant;

(b) Any cooperative association with respect to producer milk which it causes to be diverted from a pool plant to a nonpool plant or a pool supply plant for the account of such cooperative association;

(c) Any cooperative association with respect to the milk of its producers which is received by the cooperative from the farm for delivery to the pool plant of another handler in a tank truck owned or operated by or under contract to such cooperative association if the cooperative association, prior to delivery, notifies the market administrator in writing that it will be the handler for the milk. Such milk shall be considered to have been received at the location of the pool plant to which delivery is made;

(d) Any person who operates a partially regulated distributing plant;

(e) A producer-handler, any person who operates an unregulated supply plant, or any person who operates an other order plant that is either a distributing plant or a supply plant; and

(f) A state educational institution which operates either a nonpool distributing plant or supply plant. $ 1064.8 Producer-handler.

"Producer-handler" means a person who operates both a dairy farm and a distributing plant at which each of the following conditions is met during the month:

(a) Milk is received from the dairy farm of such person but from no other dairy farm;

(b) The butterfat or skim milk disposed of in the form of a fluid milk product does not exceed the butterfat or skim milk, respectively, received in the form of milk from the dairy farm of


Greater Kansas

City marketing area," hereinafter called "marketing area," means all the territory within the boundaries of the counties listed below, including territory within such boundaries occupied by Government (municipal, State, or Federal) reservations, installations, institutions, or other similar establishments:


Henry. Atchison,

Holt. Bates.

Jackson. Buchanan,

Johnson. Cass.

Lafayette. Clay.

Nodaway. Clinton.

Pettis. Daviess.

Platte. De Kalb.

St. Clair. Gentry.


such person and in the form of a fluid plant is disposed of on routes in the form milk product from pool plants of other of fluid milk products, except filled milk: handlers; and

Provided, That the combined receipts and (c) Such person shall furnish proof disposition of each handler who operates satisfactory to the market administrator more than one distributing plant, each that the care and management of the of which meets the performance requiredairy animals and other resources nec

ment of subparagraph (1) of this paraessary for the production of milk in his graph, shall be used in determining the name and the operation of the processing percentages specified in this subparaand packaging business are the personal graph: enterprise and risk of such person.

(i) April through June, 35 percent;

(ii) September and October, 50 per§ 1064.9 Producer.

cent; and "Producer” means any person (except (iii) All other months, 45 percent. a handler pursuant to $ 1064.7(f), or a (b) A supply plant from which during producer-handler as defined in any order the month the volume of Grade A fluid (including this part) issued pursuant to milk products, except filled milk, shipped the Act, or a person who is a producer of to and received at pool plants pursuant the same milk under the terms of to paragraph (a) of this section and/or another order issued pursuant to the disposed of in the marketing area as Act) who produces milk in compliance Class I, except filled milk, on routes with Grade A inspection requirements is not less than 30 percent during Novemof a duly constituted health authority, ber, December, and January and not less which milk is received at a pool plant or than 50 percent during all other months diverted pursuant to § 1064.15 from a of the volume of Grade A milk received pool plant to a nonpool plant.

from dairy farmers at such plant (in

cluding receipts from a handler pur$ 1064.10 Distributing plant.

suant to § 1064.7(c) except receipts of “Distributing plant" means a plant diverted milk pursuant to § 1064.15): from which a Grade A fluid milk product Provided, That any supply plant which is that is processed or packaged in such a pool plant during September through plant is disposed of during the month in January shall be pooled for the following the marketing area on routes.

months of February through August if $ 1064.11 Supply plant.

the required percentages pursuant to this

paragraph are not met, unless such oper“Supply plant” means a plant from ator requests the market administrator which a Grade A fluid milk product is in writing that such plant not be a pool shipped during the month to a pool plant. plant, such nonpool status to be effective & 1064.12 Pool plant.

the first month following such notice and

thereafter until the plant qualifies as a "Pool plant” means a plant (except a

pool plant on the basis of shipments. plant exempt pursuant to § 1064.60 or

(c) A supply plant which is operated $ 1064.62) specified in paragraph (a),

by a cooperative association in any (b), or (c) of this section:

month in which the member producer (a) A distributing plant from which

milk of such cooperative association reduring the month or the immediately

ceived during the month at pool distribpreceding month:

uting plants either by transfer from such (1) Not less than 15 percent of the

supply plant or directly from member total Grade A fluid milk products, ex

producers' farms is equal to or in excess cept filled milk, received at such plant, of the following percentages of such coincluding producer milk diverted to

operatives' total inember producer milk: other plants pursuant to § 1064.15 by

September, October, November, Decemthe handler operating such plant is dis- ber, and January, 65 percent; all other posed of in the marketing area on routes months, 50 percent. If two or more coin the form of fluid milk products, except operative associations desire to qualify, a filled milk, and

supply plant operated by one of such co(2) Not less than the following per- operatives as a pool plant on the basis of centage of the total Grade A fluid milk their combined deliveries to pool distribproducts, except filled milk, received at uting plants and have filed a request to such plant, including producer milk di- this effect in writing with the market adverted to other plants pursuant to ministrator on or before the first day of § 1064.15 by the handler operating such the month the agreement is effective,

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