S T A T E   O F   N E W   Y O R K
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                                  7284

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 27, 2009
                               ___________

Introduced  by  M. of A. FINCH, BUTLER, ERRIGO, CROUCH, BURLING, KOLB --
  Multi-Sponsored by -- M. of A. MAGEE, McDONOUGH,  MOLINARO,  QUINN  --
  read once and referred 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
PRODUCER  OWNED  AND  CONTROLLED  COOPERATIVES. THE ORDERLY MARKETING OF
MILK FOR THE BENEFIT OF FARMERS, MILK DEALERS, AND CONSUMERS IS ENHANCED
WHEN MILK PRODUCERS ARE FREE TO MAKE AN INDEPENDENT  UNCOERCED  DECISION
REGARDING THEIR PARTICIPATION 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 INTENTIONALLY  IMPAIRING  A  PRODUCER'S  FREEDOM  TO  BARGAIN
COLLECTIVELY  WITH  OTHER  PRODUCERS  IN THE MARKETING OF THE PRODUCER'S
PRODUCT.
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08448-01-9
              

A. 7284                             2

  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 OR TO  PARTICIPATE  IN
AN ASSOCIATION OF PRODUCERS OR COOPERATIVE 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;
  (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;
  (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; 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.
  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

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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.