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2	Overview Where Have Federal Orders Been Where Are Federal Orders Now Federal Order Issues Impacting Direction
3	Where Have Federal Orders Been?
4	Where Have Federal Orders Been? Smaller marketing areas/more orders Specific order provisions Less concentration (producers and processors) Simpler regulatory amendment process
5	Where Are Federal Orders Now?
6	Where Are Federal Orders Now?
7	Federal Order Hearings Recent Hearings: Emergency Hurricane Relief Florida, Appalachian and Southeast Hearing held October 7, 2004 Reimburse handlers for transportation expenses incurred during several hurricanes Effective December 10, 2004 Classification of Milk Interim final rule – April 23, 2004 Final Order effective December 1, 2004
8	Federal Order Hearings - Current Southeast Merger Hearing held February 23-26, 2004 Briefs due August 16, 2004 Decision in progress Producer-Handler Exemption Hearing held September 23-January 22, 2004 Tempe, Arizona; Alexandria, Virginia; Seattle, Washington Briefs due August 2, 2004 3,117 pages of testimony and 63 exhibits Tentative Decision Issued December 23, 2004 – “Double Dipping” Decision in progress on P-D issue
9	Federal Order Hearings - Current Upper Midwest Hearing held August 16-19, 2004 Briefs due October 15, 2004 Record certified October 28, 2004 Decision in progress Central Hearing held December 6-9, 2004 Pooling standards and other issues Briefs due February 18, 2005
10	Federal Order Issues Upcoming Hearing: Mideast Hearing scheduled to begin March 7, 2005 Pooling provisions and producer-handler exemption
11	Potential Federal Order Hearings Fluid Milk Product Definition Initial request received September 2003 Proposals due January 31, 2005 15A filed by H.P. Hood – Carb Countdown Hearing held December 14-15, 2004 Reviewing proposals received Class III and IV Make Allowance Changes
12	Federal Order Issues Western Order Termination Impacts Pricing/Pooling Issues Decision Time Requirements Hearing to Effective Interim Amendments: 9 months Hearing to Effective Amendments 14 months Possible legislation to address
13	Federal Order Rulemaking Phase I: AMS controls process (2.5 months) Proposal Received Decision to request additional proposals Hearing Notice Published (Minimum 15 day notice provided to public preferred) Phase II. ALJ controls process (2 months) Hearing begins (3-10 days based on nature of issue under consideration) Hearing concludes -ALJ establishes transcript correction date and briefing date Obtain transcript from reporting company -Public and USDA review for corrections Hearing record corrections completed
14	Federal Order Rulemaking Phase III: AMS controls process (2.5 months) Record analyzed and economic and policy decisions made (10 weeks) Determine type of decision to issue which affects implementation schedule: 1) Tentative/Interim Final Decision -issue if hearing record data supports emergency marketing conditions exist to warrant immediate implementation 2) Recommended Decision -issue if hearing record data does not support immediate implementation of provisions Phase IV. OGC controls process (1 month) Decision sent to OGC for legal sufficiency
15	Federal Order Rulemaking Phase V: USDA controls process (1 month) Review and Department Clearance (Decision cleared by AMS, MRP, OBPA, OCE, OSEC, others) Phase VI. FR controls process (3-5 days) Decision Issued and Published in Federal Register
16	Federal Order Rulemaking SUMMARY: Time to Issue Decision from Proposal Receipt: Phase I-VI: 9 months, 1 week Time to Issue Decision from Hearing Transcript Receipt: Phase III-VI: 4 months, 3 weeks
17	Federal Order Rulemaking Time to Effectuate Amendments: 11 months Time from Proposal to Amendments: 20 mo, 1 wk Time from Hearing to Amendments: 15 mo, 3 wks
18	Federal Order Rulemaking Time from Proposal to Interim Amendments: 12 mo, 3 wks Time from Hearing to Interim Amendments: 8 mo, 1 wk Time from Proposal to Amendments: 18 mo, 3 wks Time from Hearing to Amendments: 14 mo, 1 wk
19	Steps Taken To Speed Process Contract independently with court reporting services Issue tentative decisions when possible Reviewing internal procedures Utilizing more MA staff Expediting processes within Dairy Programs control Holding pre-hearing discussions
20	Where Are Federal Orders Headed?
21	???? QUESTIONS ????