ALLOCATION OF CERTAIN MILK.

SEC. 4601. ALLOCATION OF CERTAIN MILK.Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by adding at the end the following: “(K) (i) Notwithstanding any other provision of law, milk produced by dairies— “(I) owned or controlled by foreign persons; and “(II) financed by or with the use of bonds the interest on which is exempt from Federal income tax under section 103 of the Internal Revenue Code of 1986; shall be treated as other-source milk, and shall be allocated as milk received from producer-handlers for the purposes of classifying producer milk, under the milk marketing program established under this Act. For the purposes of this subparagraph, the term ‘foreign person’ has the meaning given such term under section 9(3) of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508(3)). “(ii) The Secretary of Agriculture shall prescribe regulations to carry out this subparagraph. “(iii) This subparagraph shall not apply with respect to any dairy that began operation before May 6, 1986.”.