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
                                ___________
 
 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

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 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.