[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1000.27]

[Page 11-12]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1000_GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS--Table 
of Contents
 
      Subpart E_Rules of Practice and Procedure Governing Handlers
 
Sec.  1000.27  Handler responsibility for records and facilities.


    Each handler shall maintain and retain records of its operations and 
make such records and its facilities available to the market 
administrator. If adequate records of a handler, or of any other 
persons, that are relevant to the obligation of such handler are not 
maintained and made available, any skim milk and butterfat required to 
be reported by such handler for which adequate records are not available 
shall be considered as used in the highest-priced class.
    (a) Records to be maintained. (1) Each handler shall maintain 
records of its operations (including, but not limited to, records of 
purchases, sales, processing, packaging, and disposition) as are 
necessary to verify whether such handler has any obligation under the 
order and if so, the amount of such obligation. Such records shall be 
such as to establish for each plant or other receiving point for each 
month:
    (i) The quantities of skim milk and butterfat contained in, or 
represented

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by, products received in any form, including inventories on hand at the 
beginning of the month, according to form, time, and source of each 
receipt;
    (ii) The utilization of all skim milk and butterfat showing the 
respective quantities of such skim milk and butterfat in each form 
disposed of or on hand at the end of the month; and
    (iii) Payments to producers, dairy farmers, and cooperative 
associations, including the amount and nature of any deductions and the 
disbursement of money so deducted.
    (2) Each handler shall keep such other specific records as the 
market administrator deems necessary to verify or establish such 
handler's obligation under the order.
    (b) Availability of records and facilities. Each handler shall make 
available all records pertaining to such handler's operations and all 
facilities the market administrator finds are necessary to verify the 
information required to be reported by the order and/or to ascertain 
such handler's reporting, monetary, or other obligation under the order. 
Each handler shall permit the market administrator to weigh, sample, and 
test milk and milk products and observe plant operations and equipment 
and make available to the market administrator such facilities as are 
necessary to carry out his/her duties.
    (c) Retention of records. All records required under the 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 month to 
which such records pertain. If, within such 3-year period, the market 
administrator notifies the handler in writing that the retention of such 
records, or of specified 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 records, or 
specified records, until further written notification from the market 
administrator. 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.