S T A T E O F N E W Y O R K
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8085
I N S E N A T E
June 7, 2010
___________
Introduced by Sen. AUBERTINE -- read twice and ordered printed, and when
printed to be committed to the Committee on Agriculture
AN ACT to amend the agriculture and markets law and the cooperative
corporations law, in relation to establishing a dairy farmers' bill of
rights
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The agriculture and markets law is amended by adding two
new sections 256-c and 256-d to read as follows:
S 256-C. DAIRY FARMERS' BILL OF RIGHTS; DECLARATION OF POLICY. THE
EXPRESSED INTENT OF THE AGRICULTURE AND MARKETS LAW AND THE POLICY OF
THIS STATE IS TO FOSTER AND ENCOURAGE THE MARKETING OF MILK THROUGH FAIR
AND HONEST MEANS. THE ORDERLY MARKETING OF MILK FOR THE BENEFIT OF FARM-
ERS, MILK DEALERS, AND CONSUMERS IS ENHANCED WHEN MILK PRODUCERS ARE
FREE TO MAKE AN INDEPENDENT UNCOERCED DECISION REGARDING THEIR PARTIC-
IPATION IN COOPERATIVE ASSOCIATIONS, AS AUTHORIZED BY STATE AND FEDERAL
LAW. INTERFERENCE IN THE EXERCISE OF THIS FREE RIGHT OF CHOICE IS
CONTRARY TO THE PUBLIC INTEREST. FOR THIS REASON, THE LEGISLATURE FINDS
THAT THE PUBLIC INTEREST REQUIRES THAT THERE BE A SPECIFICATION OF
PROHIBITED UNFAIR TRADE PRACTICES WHICH HAVE THE PURPOSE OF INTEN-
TIONALLY IMPAIRING A PRODUCER'S FREEDOM TO BARGAIN COLLECTIVELY WITH
OTHER PRODUCERS IN THE MARKETING OF THE PRODUCER'S PRODUCT OR TO REMAIN
INDEPENDENT.
FOR PURPOSES OF THIS SECTION, (I) AN "ASSOCIATION OF PRODUCERS" OR
"COOPERATIVE" SHALL MEAN ANY CORPORATION OR ASSOCIATION OF PERSONS
ENGAGED IN THE PRODUCTION OF MILK AND OPERATING FOR THE MUTUAL BENEFIT
OF ITS MEMBERS IN CONFORMITY WITH THE REQUIREMENT OF THE CAPPER-VOLSTEAD
ACT, AND ANY FEDERATION OF SUCH CORPORATIONS OR ASSOCIATIONS, OR OF SUCH
CORPORATIONS, ASSOCIATIONS, AND INDIVIDUAL PRODUCERS, AND (II) AN ASSO-
CIATION OF PRODUCERS SHALL NOT BE CONSIDERED TO BE A MILK DEALER.
S 256-D. UNFAIR PRACTICES BY DEALERS. 1. IT SHALL BE UNLAWFUL FOR ANY
MILK DEALER OR ANY OF ITS OFFICERS, MANAGERS, AGENTS, OR EMPLOYEES TO
INTENTIONALLY IMPAIR A PRODUCER'S FREEDOM TO JOIN, NOT JOIN, OR TO
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08448-03-0
S. 8085 2
PARTICIPATE IN AN ASSOCIATION OF PRODUCERS OR COOPERATIVE OR TO REMAIN
INDEPENDENT BY:
(A) COERCING, THROUGH THREAT OF INJURY TO PERSON OR PROPERTY, OR TO
HEALTH, SAFETY, BUSINESS OR FINANCIAL CONDITION, REPUTATION OR PERSONAL
RELATIONSHIPS ANY PRODUCER IN THE EXERCISE OF HIS OR HER RIGHT TO JOIN
AND BELONG TO AN ASSOCIATION OF PRODUCERS OR COOPERATIVE OR TO REMAIN
INDEPENDENT;
(B) SOLICITING OR REQUESTING ANY PRODUCER TO BREACH A MARKETING AGREE-
MENT OR OTHER CONTRACTUAL AGREEMENT BETWEEN THE PRODUCER AND AN ASSOCI-
ATION OF PRODUCERS OR COOPERATIVE;
(C) MAKING A LOAN OR GIFT OF MONEY, OR OF ANYTHING ELSE OF VALUE, OR
OFFERING TO MAKE SUCH A LOAN OR GIFT FOR THE SPECIFIC PURPOSE OF INDUC-
ING A PRODUCER TO REFUSE OR CEASE TO BELONG TO AN ASSOCIATION OF PRODUC-
ERS OR COOPERATIVE;
(D) REFUSING TO DEAL WITH ANY PRODUCER, BECAUSE OF THE EXERCISE OF THE
PRODUCER'S RIGHT TO JOIN AND BELONG TO AN ASSOCIATION OF PRODUCERS OR
COOPERATIVE OR TO REMAIN INDEPENDENT;
(E) MAKING FALSE REPORTS ABOUT THE FINANCES OR MANAGEMENT OF AN ASSO-
CIATION OF PRODUCERS OR OTHER MILK DEALERS IN RECKLESS DISREGARD OF THE
TRUTH OR KNOWING THAT SUCH STATEMENTS ARE UNTRUE AND THAT THERE IS A
REASONABLE LIKELIHOOD THAT SUCH STATEMENTS WILL IMPAIR A PRODUCER'S
RIGHT TO MAKE AN INDEPENDENT DECISION TO BELONG TO AN ASSOCIATION OF
PRODUCERS OR COOPERATIVE OR TO REMAIN INDEPENDENT; AND
(F) CONSPIRING, COMBINING, AGREEING, OR ARRANGING WITH ANY OTHER
PERSON TO DO, OR AID AND ABET THE DOING OF, ANY ACT MADE UNLAWFUL BY
THIS SECTION.
2. FOR PURPOSES OF THIS SECTION: (A) AN "ASSOCIATION OF PRODUCERS" OR
"COOPERATIVE" SHALL MEAN ANY CORPORATION OR ASSOCIATION OF PERSONS
ENGAGED IN THE PRODUCTION OF MILK AND OPERATING FOR THE MUTUAL BENEFIT
OF ITS MEMBERS IN CONFORMITY WITH THE REQUIREMENTS OF THE CAPPER-VOL-
STEAD ACT, AND ANY FEDERATION OF SUCH CORPORATIONS OR ASSOCIATIONS, OR
OF SUCH CORPORATIONS, ASSOCIATIONS, AND INDIVIDUAL PRODUCERS, AND (B) AN
ASSOCIATION OF PRODUCERS SHALL NOT BE CONSIDERED TO BE A MILK DEALER.
3. NOTHING IN THIS SECTION IS INTENDED TO PREVENT BARGAINING BETWEEN
MILK DEALERS AND PRODUCERS OR ASSOCIATIONS OF PRODUCERS WITH RESPECT TO
PRICE OR ANY OTHER TERMS OF PURCHASE OR HANDLING OF MILK IN A COURSE OF
DEALING NOT PROSCRIBED BY THIS SECTION, NOR TO PREVENT PRODUCERS FROM
REQUIRING THAT PAYMENT BE MADE THROUGH AN ASSOCIATION OF PRODUCERS OR
COOPERATIVE.
4. WHENEVER THE COMMISSIONER HAS REASON TO BELIEVE A VIOLATION OF THIS
SECTION HAS OCCURRED, THE COMMISSIONER MAY COMMENCE SUCH JUDICIAL
ACTION, OR INSTITUTE SUCH INVESTIGATION OR PROCEEDING AND ISSUE AN ORDER
BASED THEREON, AS IS PROVIDED BY THIS ARTICLE OR ARTICLE THREE OF THIS
CHAPTER; PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL TAKE NO ACTION
AGAINST A MILK DEALER UNDER SECTION TWO HUNDRED FIFTY-EIGHT-C OF THIS
ARTICLE FOR CONDUCT WHICH IS A VIOLATION OF THIS SECTION UNLESS SUCH
DEALER IS AT THE TIME OF SUCH CONDUCT SUBJECT TO A FINAL ADMINISTRATIVE
OR JUDICIAL ORDER WHICH PROHIBITS SUCH CONDUCT BY SUCH DEALER; AND
PROVIDED FURTHER THAT NOTHING CONTAINED IN THIS SECTION SHALL IMPAIR OR
DELAY THE PRIVATE RIGHT OF ACTION CREATED BY SECTION SEVENTY-FOUR OF THE
COOPERATIVE CORPORATIONS LAW FOR ANY VIOLATION OF THAT SECTION.
5. MILK PRODUCERS ARE FREE TO NEGOTIATE ANY TRANSPORTATION-RELATED
COST INCURRED AFTER A MILK PRODUCER'S RAW MILK LEAVES THE FARM OPERA-
TION, INCLUDING BUT NOT LIMITED TO HAULING FEES, STOP FEES AND FUEL
SURCHARGES WITH A MILK DEALER.
S. 8085 3
S 2. Section 74 of the cooperative corporations law is amended to read
as follows:
S 74. Liability for damages for encouraging or permitting delivery of
products in violation of marketing agreements. Any person, firm or
corporation who solicits or persuades or aids or abets any member of any
cooperative corporation incorporated under or subject to this chapter to
breach his marketing contract with the corporation by accepting or
receiving such member's products for sale, marketing, manufacturing or
processing thereof contrary to the terms of any marketing agreement of
which said person or any officer [or], manager, AGENT OR EMPLOYEE of the
said corporation has knowledge or notice, shall be liable in the penal
sum of [one hundred] NOT MORE THAN TEN THOUSAND dollars for each
contract, to the cooperative corporation aggrieved in a civil suit for
damages; and such cooperative corporation shall be entitled to an
injunction against such person, firm or corporation to prevent further
breaches.
S 3. This act shall take effect immediately.
