NY State Senate Bill 2017-S5302A

Senate Bill S5302A

Signed By Governor

2017-2018 Legislative Session

Relates to financial security requirements for small business milk dealers

download bill text pdf

Archive: Last Bill Status Via A8492 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 25, 2017	signed chap.123
Jul 13, 2017	delivered to governor
Jun 21, 2017	returned to assembly passed senate 3rd reading cal.2124 substituted for s5302a
Jun 21, 2017	substituted by a8492 ordered to third reading cal.2124 committee discharged and committed to rules
Jun 13, 2017	print number 5302a
Jun 13, 2017	amend (t) and recommit to finance
May 09, 2017	reported and committed to finance
Mar 20, 2017	referred to agriculture

Votes

- Jun 21, 2017 - Floor Vote
  A8492
  
  62
  
  Aye
  
  0
  
  Nay
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 21, 2017
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      absent (1)
      
      Sanders Jr.
  Jun 21, 2017 - Rules Committee Vote
  S5302A
  
  23
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 21, 2017
      
      aye (23)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (2)
      
      Krueger
      
      Montgomery
  May 9, 2017 - Agriculture Committee Vote
  S5302A
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Agriculture Committee Vote: May 9, 2017
      
      aye (11)
      
      Brooks
      
      Comrie
      
      Funke
      
      Gallivan
      
      Montgomery
      
      O'Mara
      
      Ranzenhofer
      
      Ritchie
      
      Serrano
      
      Seward
      
      Valesky

Bill Amendments

Original

A (Active)

2017-S5302 - Details

See Assembly Version of this Bill:: A8492
Law Section:: Agriculture and Markets Law
Laws Affected:: Amd §§57, 57-a, 244, 250 & 258-b, Ag & Mkts L

2017-S5302 - Summary

Relates to financial security requirements for small business milk dealers.

2017-S5302 - Sponsor Memo

                                 BILL NUMBER:  S5302

 TITLE OF BILL :  An act to amend the agriculture and markets law, in
relation to milk dealer and receiver licenses and license fees; in
relation to the financial security requirements for small business
milk dealers; and in relation to increasing the minimum farm products
sales threshold for requiring a farm products dealer license and
security

 PURPOSE OF THE BILL :

This bill would modify the Agriculture and Markets Law (AML) to
relieve unnecessary licensing and financial security requirements for
small business milk and farm products dealers.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend AML § 57(4) to remove nuisance
license fees of $2.00 and $5.00 for a milk receiver's license.

Section 2 of the bill would amend AML § 57-a to remove nuisance
license fees of $2.00 and $5.00 for a milk testing license.

Section 3 of the bill would amend AML § 244(2)(b) to increase the
minimum sales threshold for licensing and security under the farm
products dealer provisions of AML Article 20 from $10,000 to $20,000.

Section 4 of the bill would amend AML § 250(1)(b) to remove the farm
products sales category of $10,000 - $19,999 and the corresponding fee
of $100.

Section 5 of the bill would amend AML § 258-a(1) to increase the milk
dealer license fees to correspond with the proposed amendment of AML §
258-b, authorizing a two year license period.

Section 6 of the bill would amend AML § 258-b to permit a two-year
license.

Section 7 of the bill would amend AML § 258-b(1) by adding a new
paragraph (d) to authorize the Commissioner to, upon an application of
a small milk dealer (i.e., one who purchases less than 100,000 pounds
of milk per month), waive the security requirements of AML § 258-b
(Milk Producers Security Fund). The new paragraph would allow claims
to be filed against such milk dealers under the same process currently
provided for in § 258-b; provided, however, any claims that are
certified for payment shall be paid from license fees collected under
AML § 258-a. Defaulting small milk dealers would continue to be liable
for reimbursement of claims paid as provided for in § 258-b.

Section 8 of this bill would provide for an immediate effective date;
provided, however, that sections 5 and 6 of the bill shall apply to
licenses issued for any license period commencing on or after the
effective date.

 JUSTIFICATION :

 SMALL BUSINESS MILK DEALERS

The Department of Agriculture and Markets processes approximately 600
milk dealer licenses annually. The Department charges Milk Receivers a
$5.00 fee for a five-year license, and a $2.00 renewal fee for each
five-year license after that. The administrative costs to collect and
process these fees exceed the fees. These fees should, therefore, be
eliminated. The total revenues generated by these licenses would not
be impacted as the license fee would increase to reflect the longer,
two year license period.
Small business milk dealers that purchase a relatively small amount of
milk from New York State producers or cooperatives are also required
to provide financial security. The administrative effort required of
these dealers and the Department is significant, and provides little
additional benefit to New York producers. Waiver of the security
requirement for small dealers, and authority to utilize license fee
revenues to provide this security in place of these small
contributions, would improve the efficiency of the program. Producer
claims are rare occurrences, and claims from small dealers are even
rarer. The Department would still be able to seek restitution from the
defaulting dealer in the unlikely event of .a claim.

 SMALL BUSINESS FARM PRODUCTS DEALERS - The purchase threshold for a
farm products dealer license was increased from $3,000 to $10,000 in
1997, almost 20 years ago. The existing law requires low volume, low
risk Farm Products Dealers to submit to an extensive, detailed
licensing process, imposing burdens on both the dealers and the
Department. By increasing the minimum purchase threshold, dealers
would save time and money; and the program would be able to operate
more efficiently due to a lower intake of license applications from
dealers that do not contribute a substantial amount to the fund and
are generally considered low risk.

Currently, there are only 20 licenses in New York State that fall in
between $10,000-$20,000 in annual purchases. Since 2010, there has not
been a single claim filed against a dealer in this purchase range.
There would be no added costs of implementing this change. It would
result in increased efficiency, which should lower the administration
fees charged to the program.

 PRIOR LEGISLATIVE HISTORY :

This is a new proposal.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
The amendments take effect upon enactment; provided, however, that
sections 5 and 6 of the bill shall apply to licenses issued for any
license period commencing on or after the effective date.

2017-S5302 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5302
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2017
                                ___________
 
 Introduced  by Sen. RITCHIE -- (at request of the Department of Agricul-
   ture and Markets) -- read twice and ordered printed, and when  printed
   to be committed to the Committee on Agriculture
 
 AN  ACT  to  amend  the agriculture and markets law, in relation to milk
   dealer and receiver licenses and license  fees;  in  relation  to  the
   financial  security  requirements for small business milk dealers; and
   in relation to 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09990-01-7

 S. 5302                             2
 
 ence or absence of abnormal milk, where the results of such test affects
 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. Subdivisions 1, 2, 5, 6, 7, 8 and 9 of section 258-a of the agri-
 culture  and  markets law, as amended by chapter 62 of the laws of 1989,
 are amended to read as follows:
   1. A milk dealer receiving, purchasing, handling or selling during any
 of the twelve calendar months immediately preceding the period for which
 the license is issued a daily average total quantity of milk not exceed-
 ing four thousand pounds shall pay a license fee of  [one]  TWO  hundred

 S. 5302                             3

 dollars;  and  for each additional four thousand pounds of milk or frac-
 tion thereof received, purchased, handled or sold, the license fee shall
 be increased [forty] EIGHTY dollars.  In  no  event,  however,  shall  a
 license  fee in excess of [seven thousand five hundred] FIFTEEN THOUSAND
 dollars be required.
   2. An applicant who has not previously engaged in such business  shall
 pay  the minimum license fee as provided herein for the type of business
 which he proposes to conduct. Any such applicant who during any calendar
 month of the first year covered  by  his  license  receives,  purchases,
 handles  or  sells  a  greater quantity of milk than that upon which the
 license fee paid by such milk dealer was based shall for each additional
 four thousand pounds of milk  or  fraction  thereof  pay  an  additional
 license fee of [forty] EIGHTY dollars.
   5.  A  milk  dealer who neither buys nor sells milk but who operates a
 plant in which milk is pasteurized, processed or  handled  shall  pay  a
 license fee of [one] TWO hundred dollars.
   6. A milk dealer which is a producers' bargaining and collecting coop-
 erative  and  does  not operate milk plants or handle milk physically or
 operate farm bulk tank milk routes shall pay a license fee of [one]  TWO
 hundred dollars.
   7.  A  milk  dealer who neither buys nor sells milk but who operates a
 plant in which milk is manufactured shall pay a license fee of [one] TWO
 hundred dollars.
   8. A milk broker shall pay a license fee of [one] TWO hundred dollars.
   9. A milk dealer who is not a cooperative corporation and who does not
 buy or sell milk but who hauls milk for other milk dealers shall  pay  a
 license fee of [one] TWO hundred dollars.
   §  6. The second undesignated paragraph of section 258 of the agricul-
 ture and markets law, as amended by chapter 540 of the laws of 1987,  is
 amended to read as follows:
   A license shall be for a period not exceeding [one year] TWO YEARS. An
 application for renewal of license must be duly made at least sixty days
 before  the  expiration  of  such license by all milk dealers then doing
 business.
   § 7. 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
 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.
   §  8.  This act shall take effect immediately; provided, however, that
 sections five and six of this act shall apply to licenses issued for any
 license period commencing on or after such effective date.

2017-S5302A (ACTIVE) - Details

See Assembly Version of this Bill:: A8492
Law Section:: Agriculture and Markets Law
Laws Affected:: Amd §§57, 57-a, 244, 250 & 258-b, Ag & Mkts L

2017-S5302A (ACTIVE) - Summary

Relates to financial security requirements for small business milk dealers.

2017-S5302A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5302A

 TITLE OF BILL :  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

 PURPOSE OF THE BILL :

The purpose of this bill is to modify the Agriculture and Markets Law
(AML) to relieve unnecessary licensing and financial security
requirements for small business milk and farm products dealers. The
bill would eliminate nuisance fees for milk receiver and testing
licenses; and revise the financial security requirements for small
business milk dealers. The bill would also increase the minimum sales
threshold for licensing and security under the farm products dealer
provisions of AML Article 20 from $10,000 to $20,000.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends AML § 57(4) to remove nuisance license
fees of $2.00 and $5.00 for a milk receiver's license.

Section 2 of the bill amends AML § 57-a to remove nuisance license
fees of $2.00 and $5.00 for a milk testing license.

Section 3 of the bill amends AML § 244(2)(b) to increase the minimum
sales threshold for licensing and security under the farm products
dealer provisions of AML Article 20 from $10,000 to $20,000.

Section 4 of the bill amends AML § 250(1)(b) to remove the farm
products sales category of $10,000 - $19,999 and the corresponding fee
of $100.

Section 5 of the bill amends AML § 258-b(1) by adding a new paragraph
(d) to authorize the Commissioner to, upon an application of a small
milk dealer (i.e., one who purchases less than 100,000 pounds of milk
per month), waive the security requirements of AML § 258-b (Milk
Producers Security Fund). The new paragraph would also allow claims to
be filed against such milk dealers under the same process currently
provided for in § 258-b; provided, however, any claims that are
certified for payment shall be paid from license fees collected under
AML § 258-a. Defaulting small milk dealers would continue to be liable
for reimbursement of claims paid as provided for in § 258-b.

 JUSTIFICATION :

 SMALL BUSINESS MILK DEALERS -

The Department charges Milk Receivers a $5.00 fee for a five-year
license, and a $2.00 renewal fee for each five-year license after
that.  The administrative costs to collect and process these fees
exceed the fees. These fees should, therefore, be eliminated.

Small business milk dealers that purchase a relatively small amount of
milk from New York State producers or cooperatives are required to
provide financial security. The administrative effort required of
these dealers and the Department is significant, and provides little
additional benefit to New York producers. Waiver of the security
requirement for small dealers, and authority to utilize license fee
revenues to provide this security in place of these small
contributions, would improve the efficiency of the program. Producer
claims are rare occurrences, and claims from small dealers are even
rarer. The Department would still be able to seek restitution from the
defaulting dealer in the unlikely event of a claim.

 SMALL BUSINESS FARM PRODUCTS DEALERS -

The purchase threshold for a farm products dealer license was
increased from $3,000 to $10,000 in 1997, almost 20 years ago. The
existing law requires low volume, low risk Farm Products Dealers to
submit to an extensive, detailed licensing process, imposing burdens
on both the dealers and the Department. By increasing the minimum
purchase threshold, dealers would save time and money; and the program
would be able to operate more efficiently due to a lower intake of
license applications from dealers that do not contribute a substantial
amount to the fund and are generally considered low risk. Currently,
there are only 20 licenses in the entire state that fall in between
$10,000- $20,000 in annual purchases. Since 2010, there has not been a
single claim filed against a dealer in this purchase range.

There would be no added costs of implementing this change. It would
result in increased efficiency, which should lower the administration
fees charged to the program.

 PRIOR LEGISLATIVE HISTORY :

This is a new proposal.

 FISCAL IMPLICATIONS :

None expected.

 EFFECTIVE DATE :
The amendments take effect upon enactment.

2017-S5302A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5302--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2017
                                ___________
 
 Introduced  by Sen. RITCHIE -- (at request of the Department of Agricul-
   ture and Markets) -- read twice and ordered printed, and when  printed
   to  be committed to the Committee on Agriculture -- reported favorably
   from said committee and committed  to  the  Committee  on  Finance  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09990-03-7

 S. 5302--A                          2
 
   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
 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

 S. 5302--A                          3

 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
 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.

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