2023-2024 Regular Session SB 1297 PN 1837 Bill Text (HTM)

PRINTER'S NO. 1837

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1297

Session of

2024

INTRODUCED BY VOGEL, SCHWANK, COSTA, MASTRIANO, BAKER, CULVER,

KANE AND DUSH, JULY 17, 2024

REFERRED TO AGRICULTURE AND RURAL AFFAIRS, JULY 17, 2024

AN ACT

Amending the act of April 28, 1937 (P.L.417, No.105), entitled,

as amended, "An act relating to milk and the products

thereof; creating a Pennsylvania Milk Board; establishing its

jurisdiction, powers and duties; regulating the production,

transportation, manufacturing, processing, storage,

distribution, delivery and sale of milk and certain products

thereof; providing for the licensing of milk dealers and the

payment of fees therefor; requiring milk dealers to file

bonds to secure payment for milk to producers and certain

milk dealers; authorizing the holding of hearings and the

issuance of subpoenas by the board; conferring jurisdiction

upon courts to punish contempts and to prohibit violations of

this act and of rules, regulations and orders of the board;

authorizing the board to adopt rules, regulations and orders,

and to enter into interstate and Federal compacts; requiring

persons who weigh, measure, sample or test milk to procure

permits or certificates, to take examinations, to pay fees

therefor, to furnish certain notices, records and statements,

and to use certain methods of weighing, measuring, sampling

and testing; authorizing the board to examine the business,

papers and premises of milk dealers and producers, requiring

the keeping of records and the filing of reports by milk

dealers, and permitting, with limitations, the use of

information obtained thereby; authorizing the board to fix

prices for milk and certain milk products subject to the

approval of the Governor, and conferring certain powers upon

the Governor with respect thereto; providing for appeals to

the courts from decisions of the board, and for the burden of

proof upon such appeals; prescribing penalties, fines and

imprisonment for violations of this act and rules,

regulations and orders of the board; defining perjury;

defining remedies; repealing legislation supplied and

superseded by this act, and saving rights, duties and

proceedings thereunder; and making appropriations," in

purpose, short title and definitions, further providing for

definitions and construction; in general powers of the board,

providing for collection of premiums; in prices of milk,

providing for board-established premiums and further

providing for cooperatives; and, in moneys and expenses of

board, further providing for Milk Marketing Fund and for

payment and providing for audits.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 103 of the act of April 28, 1937

(P.L.417, No.105), known as the Milk Marketing Law, is amended

by adding a definition to read:

Section 103. Definitions; Construction.--The following terms

shall be construed in this act to have the following meanings,

except in those instances where the context clearly indicates

otherwise:

* * *

"Board-established premium" means a fee or charge established

by official order of the board on Class 1 fluid milk.

* * *

Section 2. The act is amended by adding sections to read:

Section 312. Collection of Premiums .--(a) The board is

hereby vested with the power to coordinate, facilitate or

establish the collection and distribution of board-established

premiums in accordance with section 801.1.

(b) For the purposes of subsection (a), the board shall

coordinate with the Department of Revenue and the Department of

Revenue shall facilitate the collection of board-established

premiums.

Section 801.1. Board-Established Premiums.--(a) The board

may fix, by official order, a board-established premium based on

evidence presented on cost of production, price received and

return on equity.

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(b) The board shall submit an official order under

subsection (a) and section 1104(b) to the Agriculture and Rural

Affairs Committee of the Senate and the Agriculture and Rural

Affairs Committee of the House of Representatives for review

based on the criteria specified under subsection (a) and section

1104(b).

Senate shall, within thirty calendar days or six legislative

session days, whichever is later, from receipt of an official

order under subsection (b) notify the board that the Agriculture

and Rural Affairs Committee of the Senate has approved or

disapproved the official order. The Agriculture and Rural

Affairs Committee of the House of Representatives shall, within

thirty calendar days or six legislative session days, whichever

is later, from receipt of an official order under subsection (b)

notify the board that the Agriculture and Rural Affairs

Committee of the House of Representatives has approved or

disapproved the official order. If the Agriculture and Rural

Affairs Committee of the Senate or the Agriculture and Rural

Affairs Committee of the House of Representatives do not notify

the board of a disapproval of the official order by the deadline

specified under this subsection, the official order shall be

deemed approved. As used in this subsection, the term

"legislative session day" means any day when the Senate or the

House of Representatives is in session.

(d) The board shall transmit to the Legislative Reference

Bureau for publication in the next available issue of the

Pennsylvania Bulletin notice of an official order approved or

deemed approved under subsection (c). A board-established

premium shall take effect upon publication in the Pennsylvania

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Bulletin.

(e) An official order under subsection (a) shall be exempt

from the following:

(1) Section 612 of the act of April 9, 1929 (P.L.177,

No.175), known as "The Administrative Code of 1929."

(2) Article II of the act of July 31, 1968 (P.L.769,

No.240), referred to as the Commonwealth Documents Law.

(3) Section 204(b) of the act of October 15, 1980 (P.L.950,

No.164), known as the "Commonwealth Attorneys Act."

(4) The act of June 25, 1982 (P.L.633, No.181), known as the

"Regulatory Review Act."

Section 3. Sections 809 and 1101 of the act are amended to

read:

Section 809. Cooperatives.--(a) It is hereby declared to be

the legislative intent that no provision of this act shall

prevent, and no provision contained herein shall be deemed or

construed to prevent, any cooperative agricultural association

or corporation organized under the laws of this Commonwealth, or

a similar association or corporation organized under the laws of

this or any other state, and engaged in making collective sales

or in the marketing of milk for the producers thereof, from

blending the net proceeds of its sales or consignments or

deliveries in all its markets or of its sales or deliveries

within any particular market in various classes and whether in

fluid form or as manufactured products, both within and without

the Commonwealth, and paying its producers such blended price,

with such deductions and differentials as may be authorized

under contract between such association or corporation, and its

producers, and with prior written approval of the board, or from

making collective sales of the milk of its members and other

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producers represented by it, or from making such sales or

deliveries at a blended price based upon sales or deliveries

thereof in the various classes, and whether in fluid form or as

manufactured products, both within and without the Commonwealth,

which price is to be paid either directly to the producers or to

the cooperative agricultural association or corporation. Nothing

herein contained shall prevent any milk dealer or handler from

contracting for his milk with such cooperative agricultural

association or corporation, upon such basis; but all such

contracts shall be upon the basis of the prices fixed by the

board, with the result that the net price received for milk by

such cooperative association or corporation shall be

commensurate with such prices. No director or officer of a

cooperative association or corporation shall offer, nor shall

milk dealers or handlers, or agents thereof, receive from any

producer or from such cooperative association or corporation,

directly or indirectly, any discounts, rebates, free service, or

compensation through rentals, extension of credit, or otherwise

for the purpose or with the effect, of reducing the net cost to

the dealer or handler for milk purchased or received by or

through such cooperative association or corporation.

(b) No provision of this act shall be deemed or construed to

affect the contracts of such cooperative agricultural

association or corporation with its producers, except as

hereinafter specifically provided, nor to affect or abridge the

rights and powers of such an association or any of its

operations: Provided, however, That the powers of subpoena,

entry, and inspection, vested in the board under this act, shall

apply for the purpose of examining and auditing books and

records of any such cooperative agricultural association or

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corporation, at reasonable intervals, for the purpose of

administering this act. This section shall not, however, be

construed to exempt such association or corporation from the

jurisdiction of the board over [the] any of the following:

(1) The prices at which it may sell milk to milk dealers or

handlers, stores or consumers.

(2) The collection of board-established premiums under

section 312.

(3) The distribution of moneys under section 1104.

(4) The provisions of section 1107.

corporation operating under the provisions of this section shall

file with the board a copy of its certificate of incorporation

and by-laws, and a copy of each form of contract employed in its

relations with producers, within sixty (60) days after the

effective date of this act.

Section 1101. Milk Marketing Fund.--(a) All moneys

collected or received by the board, arising from license fees,

penalties, permits or any other source, shall be paid by the

board into the State Treasury through the Department of Revenue,

and shall, by the State Treasurer, be placed in a separate fund

to be known as the "Milk Marketing Fund." Fines imposed under

this act shall be payable to, and collected by, the board, and

similarly placed in the Milk Marketing Fund.

(b) Moneys collected or received by the board, that are not

funds of the Commonwealth, but are due to producers, dealers or

handlers for, or on account of, milk acquired or received by

dealers or handlers from producers or other dealers or handlers,

and placed in the Milk Marketing Fund, shall be paid to the

persons entitled thereto by the State Treasurer, as directed by

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the board.

board may direct the State Treasurer to transfer excess moneys

in the Milk Marketing Fund to the General Fund.

Section 4. Section 1104 of the act, amended November 6, 2023

(P.L.161, No.25), is amended to read:

Section 1104. Payment.--(a) Moneys in the Milk Marketing

Fund appropriated to the board shall be paid out upon warrant of

the State Treasurer drawn after requisition by the secretary of

the board.

(b) Moneys transferred from the General Fund to the Milk

Marketing Fund shall, by official order of the board, be

distributed by the board to producers, dealers or handlers in a

manner that accounts for cost of production, price received and

return on equity.

Section 5. The act is amended by adding a section to read:

Section 1107. Audits. -- Moneys distributed to producers,

dealers or handlers under section 1104(b) shall be subject to an

audit by the board or its designee. The board or its designee

shall conduct an audit under this section within six months of

the first distributions under section 1104(b) and annually

thereafter .

Section 6. This act shall take effect in 60 days.

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