S T A T E O F N E W Y O R K
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8492
2017-2018 Regular Sessions
I N A S S E M B L Y
June 16, 2017
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Introduced by M. of A. MAGEE -- (at request of the Department of Agri-
culture and Markets) -- read once and referred to the Committee on
Agriculture
AN ACT to amend the agriculture and markets law, in relation to the
financial security requirements for small business milk dealers and
increasing the minimum farm products sales threshold for requiring a
farm products dealer license and security
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The opening paragraph of subdivision 4 of section 57 of the
agriculture and markets law, as amended by chapter 596 of the laws of
1986, is amended to read as follows:
Application for a license, or licenses shall be made upon a form
prescribed by the commissioner. The applicant shall furnish satisfactory
evidence of good moral character, and shall give proof of his ability to
perform the functions for which a license is applied, to the satisfac-
tion of the commissioner. [The applicant shall pay a license fee of five
dollars to the commissioner for remittance to the state treasury.] The
commissioner, in his discretion, may combine in one license authority to
perform any of the functions for which a license is required pursuant to
the provisions of subdivisions one, two and three of this section. A
license shall be for a period not exceeding five years, and may be
renewed, in the discretion of the commissioner, for successive periods
of not exceeding five years each [upon payment of a license fee of two
dollars to the commissioner for remittance to the state treasury].
§ 2. The first undesignated paragraph of section 57-a of the agricul-
ture and markets law, as amended by chapter 149 of the laws of 1969, is
amended to read as follows:
No person shall test milk and/or cream in order to determine the
bacterial or leucocyte count or make other tests to determine the pres-
ence or absence of abnormal milk, where the results of such test affects
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09990-02-7
A. 8492 2
the rate of payment to the producer for such milk and/or cream, the
classification of milk and/or cream as received from the producer, or
the acceptance or rejection of such milk and/or cream by the operator of
a milk-receiving or manufacturing plant, unless licensed by the commis-
sioner. Application for such license shall be made upon a form
prescribed by the commissioner. The applicant shall furnish satisfactory
evidence of good moral character, and shall demonstrate his ability to
make such tests by an examination under the direction of the commission-
er. [The applicant shall pay a license fee of five dollars to the
commissioner for remittance to the state treasury.] A license shall be
for a period not exceeding five years. A license may be renewed in the
discretion of the commissioner, without an examination, for successive
periods of not exceeding five years each [upon payment of a license fee
of two dollars to the commissioner for remittance to the state treas-
ury].
§ 3. Paragraph (b) of subdivision 2 of section 244 of the agriculture
and markets law, as added by chapter 367 of the laws of 1996, is amended
to read as follows:
(b) The licensing, bonding and stated grape price provisions of this
article shall not apply to: (i) any person whose annual dealings in
farm products do not exceed the sum of [ten] TWENTY thousand dollars; or
(ii) any agricultural cooperative with respect to the receipt, process-
ing and marketing of grapes or grape products of its producer members or
non-members of such cooperative on the basis of their patronage,
provided, however, that the annual purchase of grape or grape products
from non-members of such cooperative shall not exceed the sum of one
hundred thousand dollars; or (iii) a charitable not-for-profit organiza-
tion which receives for distribution donated farm salvage, as defined in
section two hundred seventeen of this chapter.
§ 4. Paragraph (b) of subdivision 1 of section 250 of the agriculture
and markets law, as added by chapter 367 of the laws of 1996, is amended
to read as follows:
(b) In addition to the bond or letter of credit required by section
two hundred forty-eight of this article, a fee for deposit in the agri-
cultural producers security fund shall be paid annually to the commis-
sioner at the time application is made for a license. Such fee shall be
determined on the basis of the annual dollar volume of purchases of farm
products as shown in the application for license under this article in
accordance with the following schedule:
Annual Volume Fee
$5,000,000 and over $2,500
3,000,000 - 4,999,999 1,750
1,000,000 - 2,999,999 1,000
500,000 - 999,999 750
300,000 - 499,999 500
50,000 - 299,999 300
20,000 - 49,999 200
[10,000 - 19,999] [100]
§ 5. Subdivision 1 of section 258-b of the agriculture and markets law
is amended by adding a new paragraph (d) to read as follows:
(D) UPON AN APPLICATION OF A DEALER, AND PURSUANT TO REGULATIONS
PROMULGATED TO EFFECTUATE THE PROVISIONS OF THIS PARAGRAPH, A DEALER
THAT PURCHASES LESS THAN ONE HUNDRED THOUSAND POUNDS OF MILK PER MONTH
SHALL NOT BE SUBJECT TO BOND OR ASSESSMENT UNDER THE SECURITY PROVISIONS
OF THIS SECTION WHEN THE COMMISSIONER WAIVES SUCH PROVISIONS. NOTWITH-
STANDING SUCH WAIVER, A CLAIM MAY BE FILED AND PURSUED AGAINST SUCH A
A. 8492 3
DEALER AS PROVIDED FOR IN THIS SECTION; AND ANY CLAIM THAT IS CERTIFIED
FOR PAYMENT BY THE COMMISSIONER SHALL BE PAID FROM FUNDS DERIVED FROM
LICENSE FEES ASSESSED UPON MILK DEALERS PURSUANT TO SECTION TWO HUNDRED
FIFTY-EIGHT-A OF THIS ARTICLE.
THE DEFAULTING DEALER SHALL BE LIABLE FOR REIMBURSEMENT TO THE COMMIS-
SIONER FOR THE VALUE OF THE CLAIM IN THE SAME MANNER AS IF THE CLAIM WAS
PAID OUT OF THE MILK PRODUCERS SECURITY FUND AS PROVIDED FOR IN PARA-
GRAPH (E) OF SUBDIVISION FIVE OF THIS SECTION.
§ 6. This act shall take effect immediately.