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 his 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 the funds received pursuant to § 902.88:

(1) The cost of his bond and the bonds of his employees,

(2) His own compensation, and

(3) All other expenses except those incurred under § 902.87, 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 in this part, and, upon request by the Secretary, surrender the same to such other person as the Secretary may designate;

(f) 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 5 days after the date upon which he is required to perform such acts, has not made reports pursuant to § 902.30 or payments pursuant to §§ 902.80 to 902.88,

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

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

(i) Prepare and make available for the benefit of producers, consumers, and handlers, such general statistics and information concerning the operation of this part as do not reveal confidential information;

(j) on or before the date specified, publicly announce by posting in a conspicuous place in his office and by such other means as he deems appropriate, the following:

(1) The 5th day of each month, the Class I price computed pursuant to § 902.50 (a) for the current month, and the Class II price computed pursuant to § 902.50(b) and the handler butterfat differentials computed pursuant to § 902.51, both for the preceding month; and

(2) The 11th day of each month, the uniform price computed pursuant to § 902.71 and the producer butterfat differential computed pursuant to § 902.81 both for the preceding month; and

CODIFICATION: In paragraph (1)(2), the phrase "10th day" was changed to read "11th day," 25 F.R. 8248, Aug. 30, 1960.

(k) On or before the 10th day after the end of each month, report to each cooperative association which so requests, the class utilization of milk purchased from such association or delivered to the pool plant (s) of each

handler by producers who are members of such cooperative association. For the purpose of this report, the milk so purchased or received shall be allocated to each class in the same ratio as all producer milk received by such handler during such month.

REPORTS, RECORDS AND FACILITIES

§ 902.30 Reports of receipts and utilization.

(a) On or before the 8th day after the end of each month each pool handler, shall report for each of his pool plants to the market administrator in the detail and on forms prescribed by the market administrator as follows:

(1) The quantities of skim milk and butterfat contained in (i) receipts of producer milk (including such handler's own production), (ii) receipts from other pool plants in the form of products designated as Class I milk pursuant to § 902.41 (a) (1), and (iii) receipts of other source milk.

(2) Inventories of products designated as Class I milk pursuant to § 902.41 (a) (1) on hand at the beginning and end of the month; and

(3) The utilization of all skim milk and butterfat required to be reported pursuant to this paragraph.

(b) Each handler operating a nonpool approved plant pursuant to § 902.8 (a) shall, unless otherwise directed by the market administrator, report for such plant at the same time and in the same manner prescribed for pool handlers in paragraph (a) of this section.

(c) Except as provided in paragraph (b) of this section, each nonpool handler shall make reports to the market administrator at such time and in such manner as the market administrator may prescribe.

§ 902.31 Other reports.

(a) Each pool handler, shall report to the market administrator in the detail and on forms prescribed by the market administrator as follows:

(1) On or before the 20th day after the end of the month, for each of his pool plants, his producer payroll for such month, which shall show for each producer; (i) his name and address, (ii) the total pounds of milk received from such producer, (iii) the average butterfat content of such milk, and (iv) the net amount of the handler's payment, to

(b) Promptly after & prvLSA from one farm to anothe resumes deliveries to am of a be pool plants, the handier s. 10 the market administrator a teyr ing the producer's name and pos address, the health departiteu, pe.. number, the date on which the s took place, and the farm and platil tion involved.

(c) Each pool handler who receive milk during the month from produce... for which payment is to be made wa cooperative association pursuant * § 902.80 (b) shall on or before the 202 day after the end of each month report to such cooperative association concern ing each producer-member of such cooperative association from whom he received milk during the month as follows:

(1) The name, address and code number, if any;

(2) The total deliveries and the number of days on which delivery was made; (3) The average butterfat test of the milk delivered; and

(4) The nature and amount of any deductions to be made in payments due such producer.

(d) Each handler dumping skim milk pursuant to § 902.41(b) (3) shall give the market administrator during normal duty hours, not less than 3 hours advance notice of intention to make such disposition and of the quantities of skim milk involved.

to verify or establish the correct data for each month, with respect to:

(a) The receipt and utilization of all skim milk and butterfat handled in any form;

(b) The weights and tests for butterfat and other content of all milk and milk products handled;

(c) The pounds of skim milk and butterfat contained in or represented by all items in inventory at the beginning and end of each month required to be reported pursuant to § 902.30(a) (2); and

(d) Payments to producers and cooperative associations, including any deductions and the disbursement of money so deducted.

§ 902.33 Retention of records.

All books and records required under this part to be made available to the market administrator shall be retained by the handler for a period of three years to begin at the end of the month to which such books and records pertain: Provided, That if, within such three-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 a court action specified in such notice, the handler shall retain such books and records, or specified books and records, until further 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.

All skim milk and butterfat received within the month at pool plants and which is required to be reported pursuant to § 902.30 shall be classified by the market administrator in accordance with the provisions of §§ 902.41 to 902.46. § 902.41

Classes of utilization.

Subject to the conditions set forth in §§ 902.42 to 902.46 the classes of utilization shall be as follows:

(a) Class I milk. Class I milk shall be all skim milk (including that used to produce concentrated milk and reconstituted or fortified skim milk) and but

terfat: (1) Disposed of (other than in hermetically sealed containers) in fluid form or as frozen concentrated milk for human consumption as milk, flavored milk, skim milk, flavored skim milk, cultured skim milk, buttermilk, cream (except aerated cream and sour cream) including any mixture of cream and milk or skim milk (except eggnog) disposed of for consumption in fluid form; and (2) not specifically accounted for as Class II milk.

(b) Class II milk. Class II milk shall be all skim milk and butterfat (1) used to produce any product other than those designated as Class I milk pursuant to paragraph (a) (1) of this section; (2) disposed of for livestock feed; (3) contained in skim milk dumped if the conditions of § 902.31(d) are met by the handler; (4) contained in inventory of products designated in paragraph (a) (1) of this section on hand at the end of the month; (5) in actual plant shrinkage not to exceed one and one half percent of skim milk and butterfat, respectively, in producer milk; and (6) in shrinkage of other source milk.

§ 902.42 Shrinkage.

The market administrator shall allocate shrinkage at each pool plant as follows:

(a) Compute the total shrinkage of skim milk and butterfat respectively; and

(b) Allocate the resulting amounts pro rata to skim milk and butterfat, respectively, in producer milk and other source milk.

§ 902.43

Responsibility of handlers and the reclassification of milk.

(a) All skim milk and butterfat shall be Class I milk unless the handler who first receives such skim milk and butterfat proves to the market administrator that such skim milk or butterfat should be classified otherwise.

(b) Any skim milk or butterfat shall be reclassified if verification by the market administrator discloses that the original classification was incorrect. § 902.44 Transfers.

Skim milk or butterfat disposed of during the month from a pool plant shall be classified:

(a) As Class I milk if transferred in the form of any product designated as Class I milk pursuant to § 902.41 (a) (1) to a pool plant of another handler unless utilization as Class II milk is claimed

by both handlers in their reports submitted for the month to the market administrator pursuant to § 902.30 (a): Provided, That the skim milk or butterfat so assigned to Class II milk shall be limited to the amount thereof remaining in Class II milk in the plant of the transferee handler after the assignment of other source milk pursuant to § 902.46 and any additional amounts of such skim milk or butterfat shall be assigned to Class I milk: And provided further, That if either or both handlers have received other source milk, the skim milk or butterfat so transferred shall be classified at both plants so as to allocate the greatest possible Class I utilization to the producer milk at both plants.

(b) As Class I milk if transferred in the form of any product designated as Class I milk pursuant to § 902.41 (a) (1) to a producer-handler.

(c) As Class I milk if transferred or diverted in the form of any product designated as Class I milk pursuant to § 902.41 (a) (1) to an approved plant, other than a pool plant or the plant of a producer-handler, to the extent of such plant's disposition of skim milk and butterfat, respectively, as Class I milk in the marketing area: Provided, That any remaining amount of such transfer or diversion shall be assigned to the highest remaining utilization in the transferee plant after the prior assignment of receipts at such plant from dairy farmers who the market administrator determines constitute its regular source of supply.

(d) As Class I milk if transferred or diverted in bulk in the form of milk, skim milk or cream, to a nonpool plant, other than an approved plant, located less than 300 miles from the zero milestone in Washington, D.C., unless (1) the handler claims Class II utilization in his report submitted pursuant to § 902.30 (a), (2) the operator of the transferee plant maintains books and records showing the utilization of all skim milk and butterfat at such plant which are made available if requested by the market administrator for the purpose of verification, and (3) not less than an equivalent amount of skim milk and butterfat was actually utilized in such plant during the month in the use indicated in such report: Provided, That if upon inspection of the records of such plant it is found that an equivalent amount of skim milk and butterfat was

not actually used in such indicated use the remaining pounds shall be classified as Class I milk.

(e) As Class I milk if transferred or diverted in bulk in the form of milk, skim milk or cream, to a nonpool plant other than an approved plant located 300 miles or more from the zero milestone in Washington, D.C.

§ 902.45 Computation of skim milk and butterfat in each class.

For each month, the market administrator shall correct for mathematical and for other obvious errors the reports of receipts and utilization submitted pursuant to § 902.30 (a) for each pool plant of each handler and shall compute the pounds of skim milk and butterfat in Class I milk and Class II milk for such handlers.

§ 902.46

Allocation of skim milk and butterfat classified.

After making the computations pursuant to § 902.45 the market administrator shall determine the classification of producer milk received at each pool plant as follows:

(a) Skim milk shall be allocated in the following manner:

(1) Subtract from the total pounds of skim milk in Class II milk the pounds of skim milk in producer milk classified pursuant to § 902.41 (b) (5);

(2) Subtract from the remaining pounds of skim milk in each class, in series beginning with Class II milk, the pounds of skim milk in other source milk received during the month in a form other than products specified in § 902.41 (a) (1);

(3) Subtract from the remaining pounds of skim milk in each class, in series beginning with Class II milk, the pounds of skim milk in other source milk which is received in the form of products specified in § 902.41 (a) (1) and which is not fully subject to the pricing provisions of another order issued pursuant to the Act.

[Subparagraph (3) amended, 25 F.R. 2511, Mar. 25, 1960]

(4) Subtract from the pounds of skim milk remaining in each class in series beginning with Class II milk the pounds of skim milk in other source milk received in the form of products specified in § 902.41(a) (1) from a plant(s) which is fully subject to the pricing provisions of another order issued pursuant to the Act;

(5) Subtract from the pounds of skim milk remaining in each class in series beginning with Class II milk, the pounds of skim milk contained in inventory of products specified in 902.41(a) (1) on hand at the beginning of the month; (6) Subtract from the remaining pounds of skim milk in each class the pounds of skim milk received from the pool plants of other handlers in the form of products specified in 902.41(a) (1) according to the classification thereof as determined pursuant to § 902.44(a).

(7) Add to the remaining pounds of skim milk in Class II the pounds of skim milk subtracted pursuant to subparagraph (1) of this paragraph; and

(8) If the remaining pounds of skim milk in both classes exceed the pounds of skim milk contained in producer milk, subtract such excess from the remaining pounds of skim milk in each class in series beginning with Class II milk. Any amount so subtracted shall be known as "overage."

(b) Butterfat shall be allocated in accordance with the same procedure outlined for skim milk in paragraph (a) of this section; and

(c) Add the pounds of skim milk and the pounds of butterfat allocated to the producer milk in each class computed pursuant to paragraphs (a) and (b) of this section, and determine the weighted average butterfat content of each class.

MINIMUM PRICES

902.50 Class prices.

Subject to the provisions of 1902.51 and 902.52 each handler shall pay, at the time and in the manner set forth in #902.80 for each hundredweight of milk containing 3.5 percent butterfat received at his pool plant(s) during the month from producers or a cooperative association not less than the following prices per hundredweight for the respective quantities of milk in each class computed pursuant to § 902.46.

(a) Class I price. During the first 18 months after the effective date of this part the price for Class I milk shall be $5.55 for the months of July through February and $5.10 for the months of March through June: Provided, That such price in any month shall be adjusted to reflect the deviation of the average of the Federal order Class I prices for the Philadelphia, New York and Chicago markets for such month from such

NOTE: In paragraph (a), the pharse reading "During the first 18 months after the effective date of this part" was suspended effective January 1, 1961, 25 F.R. 13683, Dec. 24, 1960.

(b) Class II price. The price for Class II milk shall be the sum of the values of butterfat and skim milk computed as follows:

(1) Butterfat. Add all weekly quotations per 40-quart can of 40 percent sweet cream approved for Pennsylvania and New Jersey in the Philadelphia market as reported each week ending within the month by the United States Department of Agriculture, divide by the number of quotations, subtract $2.00, divide by 33.48. multiply by 3.5: Provided, That such butterfat value shall not be less than 3.5 times 120 percent of the average Grade A (92-score) butter price at New York as reported by the United States Department of Agriculture for the month for which payment is to be made less 17 cents.

(2) Skim milk. The average of carlot prices per pound for nonfat dry milk, spray and roller process, respectively, for human consumption, f.o.b. manufacturing plants in the Chicago area, as reported for the period from the 26th day of the preceding month through the 25th day of the current month by the Department of Agriculture shall determine the skim values as follows:

Average price per pound of nonfat dry milk-spray and

roller process:

20.065 or below.

Skim

value

$0.075