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such a supply plant shall be a pool plant tributing plant but which is moved during the month if the above specified directly from a dairy farm to a nonpool percentages of the total member pro- plant or to a pool supply plant for the ducer milk of such cooperative associa- account of a 'handler operating a pool tions was received during the month at distributing plant or a handler pursuant pool distributing plants.

to $ 1064.7(b). Such milk shall be (34 F.R. 18665, Nov. 22, 1969)

deemed to have been received by the

diverting handler at the location of the NOTE: In 1064.12(c), the 65 percent or more requirement for the month of January 1971

pool plant from which diverted except is reduced to 50 percent or more by an order

that milk diverted to a plant located appearing at 35 F.R. 18447, Dec. 4, 1970.

more than 125 miles by the shortest

highway distance as determined by the $ 1064.13 Nonpool plant.

market administrator from the nearest “Nonpool plant” means any milk or of the City Halls of Kansas City, Mo., filled milk receiving, manufacturing, or or Topeka, Kans., shall be deemed to processing plant other than a pool plant. have been received at the location of the The following categories of nonpool plant to which diverted in applying plants are further defined as follows: $ $ 1064.53 and 1064.81. The diversion of

(a) "Other order plant" means a plant producer milk from a pool plant to a that is fully subject to the pricing and nonpool plant or a pool supply plant is pooling provisions of another order is- subject to the following conditions: sued pursuant to the Act.

(a) A handler pursuant to § 1064.7(b) (b) "Producer-handler plant” means may divert for its account without limit a plant operated by a producer-handler during the other days of the month the as defined in any order (including this milk of any member producer whose milk part) issued pursuant to the Act.

is received at a pool distributing plant (c) "Partially regulated distributing for at least 1 days' delivery during the plant” means a nonpool plant (except month. The total quantity of milk so the plant of a handler pursuant to diverted may not exceed 35 percent in § 1064.7(f), an other order plant, or a September through January and 100 producer-handler plant) from which

percent in February through August of fluid milk products in consumer-type the larger of the following amounts: (1) packages or dispenser units are distrib

The total quantity of its member prouted in the marketing area on routes ducer milk received at all pool distribduring the month.

uting plants during the current month, (d) “Unregulated supply plant”

or (2) the average daily quantity of its means a nonpool plant which is not an

member producer milk received at pool other order plant, a producer-handler

distributing plants during the previous plant, or a plant of a handler pursuant month multiplied by the number of days to $ 1064.7(f) from which a fluid milk

in the current month; product is shipped during the month to (b) A handler in his capacity as the a pool plant.

operator of a pool distributing plant may [34 F.R. 18666, Nov. 22, 1969)

divert for his account the milk of any § 1064.14 Producer milk.

producer, other than a member of a co

operative association which has diverted "Producer milk” means the skim milk

milk pursuant to paragraph (a) of this and butterfat contained in Grade A milk:

section, whose milk is received at his (a) Received at a pool plant directly

pool distributing plant for at least 1 days' from a producer or a handler pursuant

delivery during the month, without to $ 1064.7(c);

limit during the other days of such (b) Diverted subject to the provisions

month. However, the total quantity of of $ 1064.15 from a pool plant to a pool

milk so diverted may not exceed 35 persupply plant or to a nonpool plant other than an other order plant; or

cent in September through January and (c) Received by a cooperative asso

100 percent in February through August

of the larger of the following amounts: ciation handler pursuant to § 1064.7(c)

(1) The total quantity of producer milk from producers in excess of the quantity delivered to pool plants.

received at such plant during the current

month from producers who are not mem§ 1064.15 Diverted milk.

bers of a cooperative association which “Diverted milk” means producer milk has diverted milk pursuant to paragraph that is normally received at a pool dis- (a) of this section, or (2) the average

50-018471-48

daily quantity of producer milk received at such plant during the previous month multiplied by the number of days in the current month from producers who are not members of a cooperative association which has diverted milk in the current month pursuant to paragraph (a) of this section; and

(c) Diversions in excess of the applicable percentages pursuant to paragraphs (a) and (b) of this section shall first be assigned to diversions to nonpool plants and any excess quantity assigned to nonpool plants shall not be producer milk and shall not be deemed to have been received by the diverting handler. The diverting handler shall specify the dairy farmers whose milk shall not be included as producer milk pursuant to this paragraph. Excess diversions to a pool supply plant shall be producer milk at the supply plant in applying $$ 1064.12, 1064.53, and 1064.81. (31 F.R. 11345, Aug. 27, 1966, as amended at 32 F.R. 2364, Feb. 3, 1967; 34 F.R. 7067, Apr. 30, 1969)

NOTE: At 35 F.R. 18447, Dec. 4, 1970, the following provision was suspended for the month of January 1971: in § 1064.15 (a) and (b), the provision: "35 percent in September through January and 100 percent in February through August of". § 1064.16 Other source milk.

“Other source milk” means the skim milk and butterfat contained in or represented by:

(a) Receipts during the month of fluid milk products except:

(1) Producer milk;

(2) Fluid milk products received from other pool plants;

(3) Fluid milk products in inventory at the beginning of the month; and

(4) Sterilized cream received and disposed of in the same hermetically sealed container; and

(b) Products (other than fluid milk products, cottage cheese and cottage cheese curd) from any source (including those produced at the plant) that are reprocessed, converted into or combined with another product in the plant during the month, and any disappearance of products other than fluid milk products not otherwise accounted for. § 1064.17 Fluid milk product.

“Fluid milk product” means milk, skim milk, buttermilk, flavored milk, flavored

milk drinks, fortified milk or skim milk, reconstituted milk or skim milk, filled milk, sweet or sour cream and any mixture of such cream and milk or skim milk (including such mixtures containing less than the required butterfat standard for cream but not including any cultured sour mixtures to which cheese or any food substance other than a milk product has been added in an amount not less than 3 percent by weight of the finished product) and concentrated (frozen or fresh) milk, flavored milk, or flavored milk drinks which are neither sterilized nor in hermetically sealed cans. This definition shall not include a product which contains 6 percent or more nonmilk fat (or oil). [34 F.R. 18666, Nov. 22, 1969) § 1064.17a Filled milk.

“Filled milk” means any combination of nonmilk fat (or oil) with skim milk (whether fresh, cultured, reconstituted or modified by the addition of nonfat milk solids), with or without milkfat, so that the product (including stabilizers, emulsifiers or flavoring) resembles milk or any other fluid milk product; and contains less than 6 percent nonmilk fat (or oil). [34 F.R. 18666, Nov. 22, 1969) § 1064.18 Route.

“Route” means a delivery either direct or through a distributing facility such as a distribution point, a plant store, a vendor or vending machine of a fluid milk product classified as Class I pursuant to § 1064.41 (a) (1), other than a delivery to a pool plant or a nonpool plant. § 1064.19 Base milk and excess milk.

(a) "Base milk” means that producer milk received by a handler from a producer in each month of February through July that is not in excess of such producer's daily base computed pursuant to $ 1064.65 multiplied by the number of days of production in the month that such milk was received by the handler.

(b) "Excess milk” means that producer milk received by a handler from a producer in each month of February through July that is in excess of base milk received from such producer in such month and shall include all milk received from a producer for whom no daily base can be computed pursuant to § 1064.65. MARKET ADMINISTRATOR § 1064.20 Designation.

The agency for the administration of this part shall be a market administrator, selected by the Secretary, who shall be entitled to such compensation as may be determined by, and shall be subject to removal by the Secretary. $ 1064.21 Powers.

The market administrator shall have the following powers with respect to this part:

(a) Administer its terms and provisions;

(b) Receive, investigate, and report to the Secretary complaints of violations;

(c) Make rules and regulations to effectuate its terms and provisions; and

(d) Recommend amendments to the Secretary. $ 1064.22 Duties.

The market administrator shall perform all duties necessary to administer the terms and provisions of this part, including but not limited to the following:

(a) Within 45 days following the date on which he enters upon his duties, or such lesser period as may be prescribed by the Secretary, execute and deliver to the Secretary a bond effective as of the date on which he enters upon such duties, and conditioned upon the faithful performance of such duties in an amount and with surety thereon satisfactory to the Secretary;

(b) Employ and fix the compensation of such persons as may be necessary to enable him to administer its terms and provisions;

(c) Obtain a bond in a reasonable amount and with reasonable surety thereon covering each employee who handles funds entrusted to the market administrator;

(d) Pay out of funds provided by $ 1064.88 the cost of his bond and of the bonds of his employees, his own compensation, and all other expenses (except those incurred under $ 1964.87) necessarily incurred by him in the maintenance and functioning of his office and in the performance of his duties;

(e) Keep such books and records as will clearly reflect the transactions provided for herein, and upon request by the Secretary surrender the same to such other person as the Secretary may designate;

(f) Submit his books and records to examination by the Secretary and furnish such information and reports as the Secretary may request;

(g) Verify all reports and payments by each handler by audit or such other investigation as may be necessary, of such handler's records and facilities and of the records and facilities of any other handler or person upon whose utilization the classification of skim milk or butterfat for such handler depends;

(h) Publicly announce, at his discretion, unless otherwise directed by the Secretary, by posting in a conspicuous place in his office and by such other means as he deems appropriate, the name of any person who, within 10 days after the date upon which he is required to perform such acts, has not;

(1) Made reports pursuant to $ $ 1064.30 through 1064.32,

(2) Maintained adequate records and facilities pursuant to § 1064.33, or

(3) Made payments pursuant to $ $ 1064.80 through 1064.86;

(i) On or before the 14th day after the end of each month, report to each cooperative association which so requests the amount and class utilization of milk received by each handler from such cooperative association in its capacity as a handler pursuant to § 1064.7(c) and directly from members of such cooperative association. For the purpose of this report, the milk so received shall be prorated to each class in proportion to the utilization by such handler in each class remaining after the allocation pursuant to § 1064.46 (a) (1) through (9) and the corresponding steps of § 1064.46(b);

(j) Publicly announce by posting in a conspicuous place in his office and by such other means as he deems appropriate the prices determined for each month as follows:

(1) On or before the 5th day of each month, the minimum prices for Class I milk pursuant to § 1064.51(a) and the Class I butterfat differential pursuant to § 1064.52, both for the current month; and on or before the 5th day of each month the minimum prices for Class II milk pursuant to § 1064.51(b) and Class III milk pursuant to § 1064.51(c) and the Class II and Class III butterfat differentials pursuant to $ 1064.52, all for the month immediately preceding; and

(2) On or before the 12th day of each month the applicable uniform prices computed pursuant to $$ 1064.71 and

1064.72 and the producer butterfat dif- administrator in the detail and on forms ferential computed pursuant to $ 1064.82, prescribed by the market administrator both applicable to milk delivered during as follows: the previous month;

(a) The receipts at each plant of milk (k) Prepare and disseminate to the from each producer, the average butterpublic such statistics and other informa- fat test, the pounds of butterfat contion as he deems advisable and as do not tained therein, the number of days on reveal confidential information;

which milk was received from such (1) Whenever required for the pur- producer (for each of the months of pose of allocating receipts from other February through July, the pounds of order plants pursuant to § 1064.46(a) (8) base and excess milk received from each and the corresponding step of $ 1064.- producer) and the total quantity of milk 46(b), the market administrator shall and butterfat received from each handler estimate and publicly announce the com- pursuant to § 1064.7(c); bined utilization (to the nearest whole (b) The quantities of skim milk and percentage) in Class II and Class III butterfat contained in (or used in the during the month of skim milk and but- production of) fluid milk products reterfat, respectively, in producer milk of ceived from other pool plants; all handlers. Such estimate shall be (c) The quantities of skim milk and based upon the most current available butterfat contained in receipts of other data and shall be final for such purpose; source milk;

(m) Report to the market administra- (d) The utilization of all skim milk tor of the other order, as soon as possible and butterfat required to be reported after the report of receipts and utiliza- pursuant to this section; tion for the month is received from a (e) The disposition of fluid milk prodhandler who has received fluid milk ucts on routes wholly outside the marketproducts from an other order plant, the ing area and a statement showing sepclassification to which such receipts are arately in-area and outside area route allocated pursuant to § 1064.46 pursuant disposition of filled milk; to such report, and thereafter any (f) The pounds of skim milk and butchange in such allocation required to terfat contained in all fluid milk prodcorrect errors disclosed in verification of ucts on hand at the beginning and at such report;

the end of the month; (n) Furnish to each handler operating (g) Such other information with rea pool plant who has shipped fluid milk spect to receipts and utilization as the products to an other order plant, the

market administrator may prescribe; ciassification to which the skim milk and

and butterfat in such fluid milk products were

(h) Each handler specified in § 1064.7

(d) who operates a partially regulated allocated by the market administrator of

distributing plant shall report as rethe other order on the basis of the re

quired in this section, with receipts in port of the receiving handler; and, as

Grade A milk reported in lieu of those necessary, any changes in such classifica

in producer milk. Such report shall intion arising in the verification of such

clude a separate statement showing Class report; and

I disposition on routes in the marketing (0) On or before February 1 of each

area of each of the following: skim milk year in writing notify each producer

and butterfat, respectively in fluid milk who made deliveries of milk during the

products and the quantity thereof which previous September through December

is reconstituted skim milk. and the handler receiving milk from sucn

(31 F.R. 11345, Aug. 27, 1966, as amended at producer of the daily base established

34 F.R. 18666, Nov. 22, 1969) by such producer.

§ 1064.31 Payroll reports. REPORTS, RECORDS AND FACILITIES

On or before the 23d day of each § 1064.30 Reports of receipts and utili- month, each handler except a producerzation.

handler, a handler pursuant to § 1064.7 On or before the 7th day after the end (f), or a handler making payments purof each month each handler, except a suant to § 1064.61(b) shall submit to the producer-handler, a handler pursuant to market administrator his producer pay§ 1064.7(c), and a handler pursuant to roll (or in the case of a handler making § 1064.7(f), shall report to the market payments pursuant to § 1064.61(a) his

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payroll for dairy farmers delivering Grade A milk) for receipts during the preceding month which shall show:

(a) The total pounds of milk, the average butterfat test thereof, and the pounds of butterfat received from each producer and cooperative association including, for each month of February through July, such producer's deliveries of base milk and excess milk, and the number of days on which milk was received from such producer;

(b) The amount of payment to each producer and cooperative association; and

(c) The nature and amount of any deductions or charges involved in such payments. § 1064.32

Other reports. (a) Each producer-handler, each handler pursuant to $ 1064.7(f), and each handler making payments pursuant to § 1064.61(b) shall make reports to the market administrator at such time and in such manner as the market administrator may prescribe.

(b) Each handler pursuant to § 1064.7(c) shall report to the market administrator in detail and on forms prescribed by the market administrator on or before the 7th day after the end of each month the quantities of skim milk and butterfat in producer milk delivered to each pool plant in such month and all other producer milk for which it is the handler. For each month of February through July, the quantity of producer milk that is base milk and excess milk shall also be reported.

(c) Each handler who receives milk from producers, payment for which is to be made to a cooperative association pursuant to § 1064.80(c) shall report to such cooperative association with respect to each such producer, on forms approved by the market administrator, as follows:

(1) On or before the 23rd day of the month, the total pounds of milk received during the first 15 days of the month;

(2) On or before the 7th day after the end of the month;

(i) The pounds per shipment, the total pounds of milk and the average butterfat test of milk received from such producer during the month;

(ii) The amount or rate and nature of any deductions; and

(iii) The amount of any payments due such producer pursuant to § 1064.86.

§ 1064.33 Records and facilities.

Each handler shall maintain and make available to the market administrator or to his representative during the usual hours of business such accounts and records of his operations and such facilities as are necessary for the market administrator to verify or establish the correct data with respect to:

(a) The receipts of producer milk and other source milk and the utilization of such receipts;

(b) The weights and tests for butterfat and other content of all milk, skim milk, cream and milk products (including filled milk) handled;

(c) Payments to producers and cooperative associations; and

(d) The pounds of skim milk and butterfat contained in or represented by all milk, skim milk, cream and each milk product (including filled milk) on hand at the beginning and at the end of each month. (31 F.R. 11345, Aug. 27, 1966, as amended at 34 F.R. 18666, Nov. 22, 1969] § 1064.34 Retention of records.

All books and records required under this order to be made available to the market administrator shall be retained by the handler for a period of 3 years to begin at the end of the calendar month to which such books and records pertain: Provided, That if, within such 3-year period, the market administrator notifies the handler in writing that the retention of such books and records, or of specified books and records, is necessary in connection with a proceeding under section 8C(15) (A) of the Act or in a court action specified in such notice, the handler shall retain such books and records, or specified books and records, until further written notification from the market administrator. In either case the market administrator shall give further written notification to the handler promptly upon the termination of the litigation or when the records are no longer necessary in connection therewith.

CLASSIFICATION § 1064.40 Skim milk and butterfat to be

classified. (a) The skim milk and butterfat required to be reported pursuant to § 1064.30 and $ 1064.32(b) shall be classified by the market administrator pursuant to the provisions of $$ 1064.41 through 1064.46; and

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