7 USC 9071a – Dairy donation program
(a) Definitions
In this section:
(1) Eligible dairy organization
The term “eligible dairy organization” has the meaning given the term in section 9071(a) of this title.
(2) Eligible dairy product
The term “eligible dairy product” means a product primarily made from milk, including fluid milk, that is produced and processed in the United States.
(3) Eligible distributor
The term “eligible distributor” means a public or private nonprofit organization that distributes donated eligible dairy products to recipient individuals and families.
(4) Eligible partnership
The term “eligible partnership” means a partnership between an eligible dairy organization and an eligible distributor.
(b) Establishment and purposes
Terms Used In 7 USC 9071a
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
Not later than 60 days after December 27, 2020, the Secretary shall establish and administer a dairy donation program for the purposes of—
(1) facilitating the timely donation of eligible dairy products; and
(2) preventing and minimizing food waste.
(c) Donation and distribution plans
(1) In general
To be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that describes the process that the eligible partnership will use for the donation, processing, transportation, temporary storage, and distribution of eligible dairy products.
(2) Review and approval
(A) In general
Not later than 15 business days after receiving a plan described in paragraph (1), the Secretary shall—
(i) review that plan; and
(ii) issue an approval or disapproval of that plan.
(B) Emergency and disaster-related prioritization
(i) In general
In receiving and reviewing a donation and distribution plan submitted under paragraph (1), the Secretary shall determine whether an emergency or disaster was a substantial factor in the submission, including—
(I) a declared or renewed public health emergency under section 247d of title 42; and
(II) a disaster designated by the Secretary.
(ii) Priority review
On making an affirmative determination under clause (i) with respect to a donation and distribution plan submitted under paragraph (1), the Secretary shall give priority to the approval or disapproval of that plan.
(d) Reimbursement
(1) In general
On receipt of appropriate documentation under paragraph (3), the Secretary shall reimburse an eligible dairy organization that is a member of an eligible partnership for which the Secretary has approved a donation and distribution plan under subsection (c)(2)(A)(ii) at a rate equal to the product obtained by multiplying—
(A) the current reimbursement price described in paragraph (2); and
(B) the volume of milk required to make the donated eligible dairy product.
(2) Reimbursement price
The Secretary—
(A) shall set the reimbursement price referred to in paragraph (1)(A) at a value that shall—
(i) be representative of the cost of the milk required to make the donated eligible dairy product;
(ii) be between the lowest and highest of the class I, II, III, or IV milk prices on the date of the production of the eligible dairy product;
(iii) be sufficient to avoid food waste; and
(iv) not interfere with the commercial marketing of milk or dairy products;
(B) may set appropriate reimbursement prices under subparagraph (A) for different eligible dairy products by class and region for the purpose of—
(i) encouraging the donation of surplus eligible dairy products;
(ii) facilitating the orderly marketing of milk;
(iii) reducing volatility relating to significant market disruptions;
(iv) maintaining traditional price relationships between classes of milk; or
(v) stabilizing on-farm milk prices.
(3) Documentation
(A) In general
An eligible dairy organization shall submit to the Secretary such documentation as the Secretary may require to demonstrate—
(i) the production of the eligible dairy product; and
(ii) the donation of the eligible dairy product to an eligible distributor.
(B) Verification
The Secretary may verify the accuracy of documentation submitted under subparagraph (A).
(4) Retroactive reimbursement
In providing reimbursements under paragraph (1), the Secretary may provide reimbursements for eligible dairy product costs incurred before the date on which the donation and distribution plan for the applicable participating partnership was approved by the Secretary under subsection (c)(2)(A)(ii).
(5) Emergency and disaster-related prioritization
In providing reimbursements under paragraph (1), the Secretary shall give priority to reimbursements to eligible dairy organizations covered by a donation and distribution plan for which the Secretary makes an affirmative determination under subsection (c)(2)(B)(i).
(e) Prohibition on resale of products
(1) In general
An eligible distributor that receives eligible dairy products donated under this section may not sell the eligible dairy products into commercial markets.
(2) Prohibition on future participation
An eligible distributor that the Secretary determines has violated paragraph (1) shall not be eligible for any future participation in the program established under this section.
(f) Reviews
The Secretary shall conduct appropriate reviews or audits to ensure the integrity of the program established under this section.
(g) Publication of donation activity
The Secretary, acting through the Administrator of the Agricultural Marketing Service, shall publish on the publicly accessible website of the Agricultural Marketing Service periodic reports describing donation activity under this section.
(h) Supplemental reimbursements
(1) In general
The Secretary shall make a supplemental reimbursement to an eligible dairy organization that received a reimbursement under the milk donation program established under section 9071 of this title during the period beginning on January 1, 2020, and ending on the date on which amounts made available under subsection (i) are no longer available.
(2) Reimbursement calculation
A supplemental reimbursement described in paragraph (1) shall be an amount equal to—
(A) the reimbursement calculated under subsection (d); minus
(B) the reimbursement under the milk donation program described in paragraph (1).
(i) Funding
Out of any amounts of the Treasury not otherwise appropriated, there is appropriated to the Secretary to carry out this section $400,000,000, to remain available until expended.