S T A T E O F N E W Y O R K
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9105
2009-2010 Regular Sessions
I N A S S E M B L Y
August 17, 2009
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Introduced by M. of A. SCOZZAFAVA, CROUCH -- read once and referred to
the Committee on Agriculture
AN ACT to amend the New York state urban development corporation act and
the agriculture and markets law, in relation to establishing the dairy
assistance program; making an appropriation therefor; and providing
for the repeal of such provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 16-h of section 1 of chapter 174 of the laws of
1968, constituting the New York state urban development corporation act,
is amended by adding a new subdivision 3-a to read as follows:
3-A. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, FUNDS
OF THIS PROGRAM, WITHIN AVAILABLE APPROPRIATIONS TOTALING UP TO THIRTY
MILLION DOLLARS, SHALL BE AVAILABLE FOR THE DAIRY ASSISTANCE PROGRAM
PURSUANT TO ARTICLE 21-D OF THE AGRICULTURE AND MARKETS LAW.
S 2. The agriculture and markets law is amended by adding a new arti-
cle 21-D to read as follows:
ARTICLE 21-D
DAIRY ASSISTANCE PROGRAM
SECTION 258-OO. LEGISLATIVE INTENT.
258-PP. DAIRY ASSISTANCE PROGRAM.
S 258-OO. LEGISLATIVE INTENT. THE LEGISLATURE HEREBY FINDS THAT THIS
STATE'S DAIRY FARMERS CONTINUE TO LABOR UNDER A COMBINATION OF EXTREMELY
LOW MILK PRICES WELL BELOW THOSE OF TWENTY-FIVE YEARS AGO, ALONG WITH
VERY HIGH FUEL, FEED, ENERGY, FERTILIZER AND OTHER OPERATING COSTS.
THESE CONDITIONS HAVE RESULTED IN UNPRECEDENTED LOSSES FOR DAIRY FARMS.
THE PRICE OF MILK CONTINUES TO BE WELL BELOW THE COST OF PRODUCTION.
MANY OF THE VENDORS AND SERVICE INDUSTRIES SERVING DAIRY FARMERS HAVE
HAD TO PROVIDE AN INCREASING AMOUNT OF CREDIT TO SUCH FARMERS. THIS
ARTICLE IS ENACTED TO ASSIST THE DAIRY FARMERS OF THIS STATE AND THEIR
INDUSTRY IN A TIME OF GREAT NEED AND TO PREVENT FURTHER LOSS IN THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14573-01-9
A. 9105 2
DAIRY INDUSTRY AND ITS INFRASTRUCTURE WHICH ARE CRITICAL TO THE STATE'S
AGRICULTURAL ECONOMY.
S 258-PP. DAIRY ASSISTANCE PROGRAM. 1. A DAIRY ASSISTANCE PROGRAM IS
HEREBY ESTABLISHED WITHIN THE DEPARTMENT FOR THE PURPOSES OF PROVIDING
PAYMENT TO PRODUCERS FOR MILK PRODUCED DURING THE TWO THOUSAND NINE--TWO
THOUSAND TEN CALENDAR YEARS. THE DAIRY ASSISTANCE PROGRAM SHALL PAY
ELIGIBLE PRODUCERS THE DIFFERENCE BETWEEN TARGET PRICES TO BE ESTAB-
LISHED BY THE COMMISSIONER AND THE COMBINED ANNOUNCED NORTHEAST FEDERAL
ORDER STATISTICAL UNIFORM PRICE PLUS THE AMOUNT OF THE MILK INCOME LOSS
CONTRACT X PAYMENT RATE ON A PER-HUNDREDWEIGHT BASIS. FURTHER, OTHER
FACTORS MAY BE USED BY THE COMMISSIONER IN DETERMINING PAYMENT TO
PRODUCERS FOR MILK. DAIRY PRODUCERS SHALL RECEIVE PAYMENT FROM THE NEW
YORK STATE URBAN DEVELOPMENT CORPORATION, AFTER CONSULTATION WITH THE
COMMISSIONER, IN THE FORM OF A SEPARATE CHECK BASED ON POUNDS OF MILK
PRODUCED DURING THE TWO THOUSAND NINE--TWO THOUSAND TEN CALENDAR YEARS.
SUCH PAYMENT SHALL BE MADE NO LATER THAN THIRTY DAYS FOLLOWING THE
EFFECTIVE DATE OF THIS ARTICLE.
2. THE COMMISSIONER SHALL REQUEST THE UNITED STATES DEPARTMENT OF
AGRICULTURE'S FARM SERVICE AGENCY TO PROVIDE PRODUCTION DATA FOR PRODUC-
ERS AND ASSIST THE DEPARTMENT IN ADMINISTERING THE PROGRAM. PRODUCTION
DATA SHALL ONLY BE OBTAINED FROM PRODUCERS IN THIS MANNER PROVIDED SUCH
PRODUCER SUBMIT A FORM, PRESCRIBED BY THE COMMISSIONER, AUTHORIZING THE
RELEASE OF SUCH DATA. PRODUCERS WHO DO NOT PARTICIPATE IN THE MILK
INCOME LOSS CONTRACT X PROGRAM SHALL SUBMIT TO THE DEPARTMENT ALTERNA-
TIVE MEANS OF VERIFYING PRODUCTION DATA AS PRESCRIBED BY THE COMMISSION-
ER, INCLUDING BUT NOT LIMITED TO MILK MARKETING PAYMENT STUBS, BULK TANK
RECORDS, MILK HANDLER RECORDS AND DAILY MILK MARKETING RECORDS.
3. THE FOLLOWING SHALL NOT BE CONSIDERED COMMERCIALLY MARKETED MILK
AND SHALL BE INELIGIBLE FOR THE DAIRY ASSISTANCE PROGRAM:
(A) DUMPED MILK THAT CAUSES BULK LOAD CONTAMINATION FOR WHICH A
PRODUCER RECEIVES AN INSURANCE INDEMNITY; AND
(B) MILK DUMPED ON THE FARM BY ORDER OF ANY STATE OFFICER OR EMPLOYEE.
4. ALL PRODUCERS SHALL BE REIMBURSED FOR UP TO FOUR MILLION EIGHT
HUNDRED THOUSAND POUNDS OF MILK PRODUCED DURING THE TWO THOUSAND
NINE--TWO THOUSAND TEN CALENDAR YEARS UNTIL SUCH TIME AS THIRTY MILLION
DOLLARS IN STATE FUNDING IS EXPENDED PURSUANT TO SECTION SIXTEEN-H OF
THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT. THE COMMISSIONER
IS HEREBY AUTHORIZED TO PROMULGATE ANY ADDITIONAL RULES AND REGULATIONS
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE.
S 3. The sum of thirty million dollars ($ 30,000,000), or so much
thereof as may be necessary, is hereby appropriated to the department of
agriculture and markets out of any moneys in the state treasury in the
general fund to the credit of the state purposes account, not otherwise
appropriated, and made immediately available, for the purpose of carry-
ing out the provisions of this act. Such moneys shall be payable on the
audit and warrant of the comptroller on vouchers certified or approved
by the commissioner of agriculture and markets based on competitive
grant process established by the department of agriculture and markets
in the manner prescribed by law.
S 4. This act shall take effect immediately and shall expire and be
deemed repealed December 31, 2010.