Senate Bill S6140

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

                                  6140

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             August 28, 2009
                               ___________

Introduced by Sens. YOUNG, SEWARD -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN  ACT  to amend the agriculture and markets law, in relation to estab-
  lishing a dairy assistance program; 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. The agriculture and markets law is amended by adding a  new
article 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
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 PERIOD COMMENCING ON
JULY FIRST, TWO THOUSAND EIGHT AND ENDING ON JUNE THIRTIETH,  TWO  THOU-
SAND NINE. THE DAIRY ASSISTANCE PROGRAM SHALL PAY ELIGIBLE PRODUCERS THE
DIFFERENCE  BETWEEN  TARGET PRICES TO BE ESTABLISHED BY THE COMMISSIONER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14692-02-9
              

S. 6140                             2

AND THE COMBINED ANNOUNCED NORTHEAST FEDERAL ORDER  STATISTICAL  UNIFORM
PRICE PLUS THE AMOUNT OF THE MILK INCOME LOSS CONTRACT PAYMENT RATE ON A
PER-HUNDREDWEIGHT  BASIS.  FURTHER,  OTHER  FACTORS  MAY  BE USED BY THE
COMMISSIONER IN DETERMINING PAYMENT TO PRODUCERS FOR MILK. DAIRY PRODUC-
ERS SHALL RECEIVE PAYMENT FROM FUNDS MADE AVAILABLE THROUGH THE AMERICAN
RECOVERY  AND  REINVESTMENT  ACT  OF  2009,  AFTER CONSULTATION WITH THE
COMMISSIONER, IN THE FORM OF A SEPARATE CHECK BASED ON  POUNDS  OF  MILK
PRODUCED  DURING THE PERIOD COMMENCING ON JULY FIRST, TWO THOUSAND EIGHT
AND ENDING ON JUNE THIRTIETH, TWO THOUSAND NINE.  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 PROGRAM SHALL SUBMIT TO THE DEPARTMENT ALTERNATIVE
MEANS OF VERIFYING PRODUCTION DATA AS PRESCRIBED  BY  THE  COMMISSIONER,
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  FIVE  MILLION  NINE
HUNDRED  SEVENTY  THOUSAND  POUNDS  OF  MILK  PRODUCED DURING THE PERIOD
COMMENCING ON JULY FIRST, TWO THOUSAND EIGHT AND ENDING ON JUNE  THIRTI-
ETH,  TWO  THOUSAND  NINE OR UNTIL SUCH TIME AS SIXTY MILLION DOLLARS IS
EXPENDED. THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE ANY  ADDI-
TIONAL  RULES  AND  REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF
THIS ARTICLE.
  5. STATE FUNDS IN THE AMOUNT OF SIXTY MILLION DOLLARS  SHALL  BE  MADE
AVAILABLE FOR THE DAIRY ASSISTANCE PROGRAM TO BE SUPPORTED THROUGH FUNDS
MADE  AVAILABLE  THROUGH  THE  AMERICAN RECOVERY AND REINVESTMENT ACT OF
2009 INCLUDING BUT NOT LIMITED TO SAVINGS RESULTING FROM  THE  INCREASED
FEDERAL  MEDICAL  ASSISTANCE  PERCENTAGE (FMAP) PROVIDED PURSUANT TO THE
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009.
  S 2. This act shall take effect immediately and shall  expire  and  be
deemed repealed December 31, 2010.