Makes provisions relating to establishing a dairy farmers' bill of rights

BILL NUMBER:S8085

Title of bill

An act to amend the agriculture and markets law and the cooperative corporations law, in relation to establishing a dairy farmers' bill of rights

Purpose or general idea of bill

The purpose of this bill is to provide dairy farmers with protection from milk dealers who engage in interference with the farmers' right to join or remain in an association of producers or to remain an independent producer. This would be accomplished by two amendments to existing laws.

First, the Agriculture and Markets Law would be amended in relation to the business relationships between milk dealers and farmers, to delineate what constitutes an unfair practice by a milk dealer. This bill also provides for the Commissioner of the Department of Agriculture and Markets to take action to restrain such violations upon the application of an association of producers.

Second, this bill strengthens the Cooperative Corporations Law by increasing the penalties to handlers per contract violation from $100 to a maximum of $10,000, while extending the law to also cover the employees of these dealers (handlers) who are more likely to engage in these unfair practices.

Summary of specific provisions

Section 1 adds two new sections, 256-C and 256-D to the Agriculture and Markets Law entitled "Dairy Farmers' bill of rights, and "unfair practices by dealers". The "unfair practices by dealers" is similar to the Federal "Agriculture Fair Practices Act": (7 U.S.C. 2303), but expands and further defines prohibited practices by milk dealers in their business relationship with dairy farmers. Enforcement of these provisions is by the Department of Agriculture and Markets. Specifically this measure makes it unlawful for any milk dealer or employee to engage in the following practices:

1) Coercions; 2) Breach of Contract; 3) Bribery; 4) Refusal to Deal; 5) Falsehood; and 6) Conspiracy.

Section 2 amends section 74 of the Cooperative Corporations Law to expand the list of those individuals who may not engage in encouraging or permitting violations of marketing agreements, to include "agent or employee" in the existing "officer or manager" Listing. Also, this section is further amended by increasing the penalty for each such violation from $100 to $10,000 for each contract.

Justification

Farmer's rights are about enabling farmers to continue their work as stewards and innovators of agriculture, biodiversity, and about recognizing and rewarding them for the contribution to the global pool of genetic resources. New York State Agriculture and Markets Law recognizes the need for and supports the dairy farmers in whatever marketing method for their milk they should chose, should it be through a cooperative or independently. The addition of these

provisions to state law will specifically delineate prohibited practices and provide for expedited action by the state against such violations, while expanding and strengthening the currently applicable statute.

Fiscal implications

None.

Effective date

Immediately.