"Nonpool plant" means any milk or filled milk receiving, manufacturing, or processing plant other than a pool plant. The following categories of nonpool plants are further defined as follows:

(a) "Other order plant" means a plant that is fully subject to the pricing and pooling provisions of another order issued pursuant to the Act.

(b) "Producer-handler plant" means a plant operated by a producer-handler as defined in any order (including this part) issued pursuant to the Act.

(c) "Partially regulated distributing plant" means a nonpool plant (except the plant of a handler pursuant to § 1064.7 (f), an other order plant, or a producer-handler plant) from which fluid milk products in consumer-type packages or dispenser units are distributed in the marketing area on routes during the month.

(d) "Unregulated supply plant" means a nonpool plant which is not an other order plant, a producer-handler plant, or a plant of a handler pursuant to § 1064.7 (f) from which a fluid milk product is shipped during the month to a pool plant.

[34 F.R. 18666, Nov. 22, 1969]

"Producer milk" means the skim milk and butterfat contained in Grade A milk: (a) Received at a pool plant directly from a producer or a handler pursuant to § 1064.7(c);

(b) Diverted subject to the provisions of § 1064.15 from a pool plant to a pool supply plant or to a nonpool plant other than an other order plant; or

(c) Received by a cooperative association handler pursuant to § 1064.7 (c) from producers in excess of the quantity delivered to pool plants.

50-018-71-8

tributing plant but which is moved directly from a dairy farm to a nonpool plant or to a pool supply plant for the account of a handler operating a pool distributing plant or a handler pursuant to § 1064.7(b). Such milk shall be deemed to have been received by the diverting handler at the location of the pool plant from which diverted except that milk diverted to a plant located more than 125 miles by the shortest highway distance as determined by the market administrator from the nearest of the City Halls of Kansas City, Mo., or Topeka, Kans., shall be deemed to have been received at the location of the plant to which diverted in applying §§ 1064.53 and 1064.81. The diversion of producer milk from a pool plant to a nonpool plant or a pool supply plant is subject to the following conditions:

(a) A handler pursuant to § 1064.7(b) may divert for its account without limit during the other days of the month the milk of any member producer whose milk is received at a pool distributing plant for at least 1 days' delivery during the month. The total quantity of milk so diverted may not exceed 35 percent in September through January and 100 percent in February through August of the larger of the following amounts: (1) The total quantity of its member producer milk received at all pool distributing plants during the current month, or (2) the average daily quantity of its member producer milk received at pool distributing plants during the previous month multiplied by the number of days in the current month;

(b) A handler in his capacity as the operator of a pool distributing plant may divert for his account the milk of any producer, other than a member of a cooperative association which has diverted milk pursuant to paragraph (a) of this section, whose milk is received at his pool distributing plant for at least 1 days' delivery during the month, without limit during the other days of such month. However, the total quantity of milk so diverted may not exceed 35 percent in September through January and 100 percent in February through August of the larger of the following amounts: (1) The total quantity of producer milk received at such plant during the current month from producers who are not members of a cooperative association which has diverted milk pursuant to paragraph (a) of this section, or (2) the average

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".

(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.

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 § 1064.87) 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 §§ 1064.30 through 1064.32,

to

(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 differential computed pursuant to § 1064.82, both applicable to milk delivered during the previous month;

(k) Prepare and disseminate to the public such statistics and other information as he deems advisable and as do not reveal confidential information;

(1) Whenever required for the purpose of allocating receipts from other order plants pursuant to § 1064.46(a) (8) and the corresponding step of § 1064.46(b), the market administrator shall estimate and publicly announce the combined utilization (to the nearest whole percentage) in Class II and Class III during the month of skim milk and butterfat, respectively, in producer milk of all handlers. Such estimate shall be based upon the most current available data and shall be final for such purpose;

(m) Report to the market administrator of the other order, as soon as possible after the report of receipts and utilization for the month is received from a handler who has received fluid milk products from an other order plant, the classification to which such receipts are allocated pursuant to § 1064.46 pursuant to such report, and thereafter any change in such allocation required to correct errors disclosed in verification of such report;

(n) Furnish to each handler operating a pool plant who has shipped fluid milk products to an other order plant, the classification to which the skim milk and butterfat in such fluid milk products were allocated by the market administrator of the other order on the basis of the report of the receiving handler; and, as necessary, any changes in such classification arising in the verification of such report; and

(0) On or before February 1 of each year in writing notify each producer who made deliveries of milk during the previous September through December and the handler receiving milk from sucn producer of the daily base established by such producer.

REPORTS, RECORDS AND FACILITIES § 1064.30 Reports of receipts and utili

zation.

On or before the 7th day after the end of each month each handler, except a producer-handler, a handler pursuant to § 1064.7 (c), and a handler pursuant to § 1064.7(f), shall report to the market

administrator in the detail and on forms prescribed by the market administrator as follows:

(a) The receipts at each plant of milk from each producer, the average butterfat test, the pounds of butterfat contained therein, the number of days on which milk was received from such producer (for each of the months of February through July, the pounds of base and excess milk received from each producer) and the total quantity of milk and butterfat received from each handler pursuant to § 1064.7 (c);

(b) The quantities of skim milk and butterfat contained in (or used in the production of) fluid milk products received from other pool plants;

(c) The quantities of skim milk and butterfat contained in receipts of other source milk;

(d) The utilization of all skim milk and butterfat required to be reported pursuant to this section;

(e) The disposition of fluid milk products on routes wholly outside the marketing area and a statement showing separately in-area and outside area route disposition of filled milk;

(f) The pounds of skim milk and butterfat contained in all fluid milk products on hand at the beginning and at the end of the month;

(g) Such other information with respect to receipts and utilization as the market administrator may prescribe; and

(h) Each handler specified in § 1064.7 (d) who operates a partially regulated distributing plant shall report as required in this section, with receipts in Grade A milk reported in lieu of those in producer milk. Such report shall include a separate statement showing Class I disposition on routes in the marketing area of each of the following: skim milk and butterfat, respectively in fluid milk products and the quantity thereof which is reconstituted skim milk.

[31 F.R. 11345, Aug. 27, 1966, as amended at 34 F.R. 18666, Nov. 22, 1969]

§ 1064.31 Payroll reports.

On or before the 23d day of each month, each handler except a producerhandler, a handler pursuant to § 1064.7 (f), or a handler making payments pursuant to § 1064.61(b) shall submit to the market administrator his producer payroll (or in the case of a handler making payments pursuant to § 1064.61 (a) his

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