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This entry was published on 2014-09-22
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SECTION 256-B
Accounting of milk dealers and cooperatives to producers
Agriculture & Markets (AGM) CHAPTER 69, ARTICLE 21
§ 256-b. Accounting of milk dealers and cooperatives to producers. 1.
For purposes of this section, any corporation or association of persons
engaged in the production of agricultural products and operating for the
mutual benefit of its members in conformity with the requirements of the
Capper-Volstead Act, and any federation of such corporations or
associations, shall be deemed to be a cooperative.

2. Every milk dealer and cooperative, subject to license or regulation
under this article, in making payments to producers for milk sold or
delivered to such dealer or cooperative, shall clearly set forth the
unit price for such milk, whether determined pursuant to federal or
state market order or pursuant to agreement, together with the amount of
all premiums, subsidies or differentials, all deductions, service fees,
hauling charges, supply expenses, costs or adjustments of any nature
whatsoever, in such a manner as to fully disclose to the producer the
rate, basis and manner of computing such payment.

3. Each cooperative subject to license or regulation pursuant to this
article shall, prior to its annual meeting, mail or personally deliver a
copy of a written report of audit, prepared in the form and manner
prescribed under section seventy-five of the cooperative corporations
law, to each member of the cooperative and to individual producer
members of any constituent cooperatives. The printing of such report in
a publication regularly distributed to the cooperative's entire
membership shall satisfy the delivery requirement.

4. Each milk producer who applies for membership in such a cooperative
shall, prior to issuance of a membership certificate or entry into a
milk marketing agreement with the cooperative, be provided with the
following documents of such cooperative and of any federation of
cooperatives of which it is a member: (a) a copy of the cooperative's
written report of audit required to be provided to the cooperative's
membership, pursuant to subdivision three of this section, for the
fiscal year preceding the date of such application; (b) a copy of the
certificate of incorporation; (c) a copy of the bylaws in effect at the
time of such producer's application for membership; and (d) a written
statement of the current equity requirements and policy on the
allocation of net margins and losses.

5. The commissioner may make or permit disclosure of a written report
of audit made pursuant to subdivision three of this section for any
cooperative subject to license or regulation pursuant to this article.

6. The commissioner may promulgate rules and regulations necessary to
assure such uniform requirements as will carry out the provisions of
this section.