Legislation

* § 258-aa. Dairy promotion act. 1. Declaration of policy. It is
hereby declared that the dairy industry is a paramount agricultural
industry of this state, and is an industry affecting the health and
welfare of the inhabitants of the state; that the continued existence of
the dairy industry and the continued production of milk on the farms of
this state is of vast economic importance to the state and to the health
and welfare of the inhabitants thereof; that it is essential, in order
to assure such continued production of milk and its handling and
distribution, that prices to producers be such as to return reasonable
costs of production, and at the same time assure an adequate supply of
milk and dairy products to consumers at reasonable prices; and to these
ends it is essential that consumers and others be adequately informed as
to the dietary needs and advantages of milk and dairy products and as to
the economies resulting from the use of milk and dairy products, and to
command for milk and dairy products, consumer attention and demand
consistent with their importance and value. It is further declared that
continued decline in the consumption of fluid milk and some other dairy
products will jeopardize the production of adequate supplies of milk and
dairy products because of increasing surpluses necessarily returning
less to producers; and that continued adequate supplies of milk and
dairy products is a matter of vital concern as affecting the health and
general welfare of the people of this state. It is therefore declared to
be the legislative intent and policy of the state:

(a) To enable milk producers and others in the dairy industry, with
the aid of the state, to more effectively promote the consumption of
milk and dairy products;

(b) To provide methods and means for the development of new and
improved dairy products, and to promote their use; and

(c) To this end, eliminate the possible impairment of the purchasing
power of the milk producers of this state and to assure an adequate
supply of milk for consumers at reasonable prices.

2. Definitions. As used in this section the following terms shall have
the following meanings:

(a) "Dairy products" means milk and products derived therefrom, and
products of which milk or a portion thereof is a significant part.

(b) "Producer" means any person in this state who is engaged in the
production of milk or who causes milk to be produced for any market in
this or any other state.

(c) "Advisory board" means the persons appointed by the commissioner
from nominations from producers as herein defined to assist the
commissioner in administering a dairy promotion order.

(d) "Milk dealer" means any person who purchases or handles or
receives or sells milk, including individuals, partnerships,
corporations, cooperative associations, and unincorporated cooperative
associations.

(e) "Dairy promotion order" means an order issued by the commissioner,
pursuant to the provisions of this section.

(f) "Cooperative" means an association or federation or cooperative of
milk producers organized under the laws of New York state, or any other
state, having agreements with their producer members to market, bargain
for or sell the milk of such producers, and is actually performing one
or more of these services in the marketing of the milk produced by their
members, through the cooperative or through a federation of milk
cooperatives in which the cooperative has membership.

3. Powers and duties of the commissioner. (a) The commissioner shall
administer and enforce the provisions of this section and shall have and
may exercise any or all the administrative powers conferred upon the
head of a department. In order to effectuate the declared policy of this
section the commissioner may, after due notice and hearing, make and
issue a dairy promotion order, or orders.

(b) Such order or orders shall be issued and amended or terminated in
accordance with the following procedures:

(i) Before any such order may become effective it shall be approved by
fifty-one per centum of the producers of milk voting in the referendum
for the area to be regulated by such order. Such referendum shall not
constitute valid approval unless fifty-one per centum of all milk
producers for the area to be regulated vote in the referendum.

(ii) Producers may vote by individual ballot or through their
cooperatives in accordance with the following procedures:

(1) Cooperatives may submit written approval of such order within a
period of one hundred twenty days after the commissioner has announced a
referendum on a proposed order, for such producers who are listed and
certified to the commissioner as members of such cooperative, provided,
however, that any cooperative before submitting such written approval
shall give at least sixty days prior written notice to each producer who
is its member, of the intention of the cooperative to approve such
proposed order, and further provide that if such cooperative does not
intend to approve such proposed order, it shall likewise give written
notice of at least sixty days to each such producer who is its member,
of its intention not to approve of such proposed order.

(2) Any producer may obtain a ballot from the commissioner so that
they may register their own approval or disapproval of the proposed
order.

(3) A producer who is a member of a cooperative which has notified
such producer of its intent to approve or not to approve of a proposed
order, and who obtains a ballot and with such ballot expresses the
producer's approval or disapproval of the proposed order, shall notify
the commissioner as to the name of the cooperative of which the producer
is a member, and the commissioner shall remove such producer's name from
the list certified by such cooperative.

(4) In order to ensure that all milk producers are informed regarding
a proposed order, the commissioner shall notify all milk producers that
an order is being considered, and that each producer may register the
producer's approval or disapproval with the commissioner either directly
or through the producer's cooperative.

(5) The commissioner may appoint a referendum advisory committee to
assist and advise the commissioner in the conduct of the referendum.
Such committee shall review referendum procedures and the tabulation of
results and shall advise the commissioner of its findings. The final
certification of the referendum results shall be made by the
commissioner. The committee shall consist of not less than three
members, none of whom shall be persons directly affected by the
promotion order being voted upon. Two members shall be representatives
of general farm organizations which are not directly affected by the
order being voted upon. The members of the committee shall not receive a
salary but shall be entitled to actual and reasonable expenses incurred
in the performance of their duties.

(6) The commissioner may, and upon written petition of not less than
ten per centum of the producers in the area, either as individuals or
through cooperative representation shall, call a hearing to amend or
terminate such order, and any such amendment or termination shall be
effective only upon approval of fifty-one per centum of the producers of
milk for the area regulated participating in a referendum vote as
provided pursuant to this paragraph.

(c) The commissioner shall administer and enforce any such dairy
promotion order while it is in effect, for the purpose of:

(i) Encouraging the consumption of milk and dairy products by
acquainting consumers and others with the advantages and economy of
using more of such products.

(ii) Protecting the health and welfare of consumers by assuring an
adequate supply of milk and dairy products.

(iii) Providing for research programs designed to develop new and
improved dairy products.

(iv) Providing for research programs designed to acquaint consumers
and the public generally with the effects of the use of milk and dairy
products on the health of such consumers.

(d) Carrying out, in other ways, the declared policy and intent of
this section.

4. Provisions of dairy promotion orders. Any dairy promotion order or
orders may contain, among others, any or all of the following:

(a) Provision for levying an assessment against all producers subject
to the regulation for the purpose of carrying out the provisions of such
order and to pay the cost of administering and enforcing such order. In
order to collect any such assessments, provision shall be made for each
milk dealer who receives milk from producers to deduct the amount of
assessment from moneys otherwise due to producers for the milk so
delivered. The rate of such assessment shall not exceed two per cent per
hundredweight of the gross value of the producer's milk, and there may
be credited against any such assessment the amounts per hundredweight
otherwise paid by any producer covered by the order by voluntary
contribution or otherwise pursuant to any other federal or state milk
market order for any similar research promotion or program.
Notwithstanding the provisions of paragraph (b) of subdivision three of
this section, the commissioner, upon written petition of no less than
twenty-five per cent of producers in the area, either as individuals or
through cooperative representation, may call a hearing for the sole
purpose of establishing a new rate of assessment hereunder and may
submit a proposed change in the rate of assessment to the producers for
acceptance or rejection without otherwise affecting the order. The
producers in the area may vote on the proposed rate either as
individuals or through cooperative representation. Notwithstanding the
foregoing provisions of this paragraph and of paragraph (b) of
subdivision three of this section, or the provisions of any order
promulgated pursuant to this section, the rate of assessment, for any
period during which a dairy products promotion and research order
established pursuant to the federal dairy and tobacco adjustment act of
1983 is in effect, shall not be less than an amount equal to the maximum
credit which producers participating in this state's dairy products
promotion or nutrition education programs may receive pursuant to
subdivision (g) of section 113 of such federal act.

(b) Provision for payments to organizations engaged in campaigns by
advertisements or otherwise, including participation in similar regional
or national plans or campaigns to promote the increased consumption of
milk and dairy products, to acquaint the public with the dietary
advantages of milk and dairy products and with the economy of their
inclusion in the diet and to command, for milk and dairy products,
consumer attention consistent with their importance and value.

(c) Provision for payments to institutions or organizations engaged in
research leading to the development of new or improved dairy products or
research with respect to the value of milk and dairy products in the
human diet.

(d) Provision for requiring records to be kept and reports to be filed
by milk dealers with respect to milk received from producers and with
respect to assessments on the milk of such producers.

(e) Provision for the auditing of the records of such milk dealers for
the purpose of verifying payment of producer assessments.

(f) Provision for an advisory board as hereinafter indicated.

(g) Such other provisions as may be necessary to effectuate the
declared policies of this section.

5. Matters to be considered. In carrying out the provisions of this
section and particularly in determining whether or not a dairy promotion
order shall be issued, the commissioner shall take into consideration,
among others, facts available to them with respect to the following:

(a) The total production of milk in the area and the proportion of
such milk being utilized in fluid form and in other products;

(b) The prices being received for milk by producers in the area;

(c) The level of consumption per capita for fluid milk and of other
dairy products;

(d) The purchasing power of consumers; and

(e) Other products which compete with milk and dairy products and
prices of such products.

6. Interstate orders for compacts. The commissioner is authorized to
confer and cooperate with the legally constituted authorities of other
states and of the United States with respect to the issuance and
operation of joint and concurrent dairy promotion orders or other
activities tending to carry out the declared intent of this section. The
commissioner may join with such other authorities in conducting joint
investigations, holding joint hearings, and issuing joint or concurrent
order or orders complementary to those of the federal government and
shall have the authority to employ or designate a joint agent or joint
agencies to carry out and enforce such joint, concurrent, or
supplementary orders.

7. Prior assessments. Prior to the effective date of any dairy
promotion order as provided in this section, the commissioner may
require that cooperatives which have petitioned for such an order and
who have approved of the issuance of such an order, to deposit with the
commissioner such amounts as the commissioner may deem necessary to
defray the expense of administering and enforcing such order until such
time as the assessments as herein before provided are adequate for that
purpose. Such funds shall be received, deposited, and disbursed by the
commissioner in the same manner as other funds received pursuant to this
section and the commissioner shall reimburse those who paid these prior
assessments from other funds received pursuant to this section.

8. Status of funds. Any moneys collected under any market order issued
pursuant to this section shall not be deemed to be state funds and shall
be deposited in a bank or other depository in this state, approved by
the commissioner and the state comptroller, allocated to each dairy
promotion order under which they were collected, and shall be disbursed
by the commissioner only for the necessary expenses incurred by the
commissioner with respect to each separate order, all in accordance with
the rules and regulations of the commissioner. All such expenses shall
be audited by the state comptroller at least annually and within thirty
days after the completion thereof the state comptroller shall give a
copy thereof to the commissioner. Any moneys remaining in such fund
allocable to a particular order, after the termination of such order and
not required by the commissioner to defray the expenses of operating
such order, may in the discretion of the commissioner be refunded on a
pro-rata basis to all persons from whom assessments therefor were
collected; provided, however, that if the commissioner finds that the
amounts so refundable are so small as to make impracticable the
computation and refunding of such moneys, the commissioner may use such
moneys to defray the expenses incurred by them in the promulgation,
issuance, administration or enforcement of any other similar dairy
promotion order or in the absence of any other such dairy promotion
order, the commissioner may pay such moneys to any organization or
institution as provided in paragraph (b) or (c) of subdivision four of
this section.

9. Budget. The commissioner shall prepare a budget for the
administration and operating costs and expenses including advertising
and sales promotion when required in any dairy promotion order executed
hereunder and to provide for the collection of such necessary fees or
assessments to defray costs and expenses, in no case to exceed two
percent per hundredweight of the gross value of milk marketed by
producers in the area covered by the order.

10. Advisory board. (a) Any dairy promotion order issued pursuant to
this section shall provide for the establishment of an advisory board to
advise and assist the commissioner in the administration of such order.
This board shall consist of not less than five members and shall be
appointed by the commissioner from nominations submitted by producers
marketing milk in the area to which the order applies. Nominating
procedure, qualification, representation, and size of the advisory board
shall be prescribed in the order for which such board was appointed.

(b) No member of an advisory board shall receive a salary but shall be
entitled to reimbursement of the member's actual and reasonable expenses
incurred while performing such member's duties as authorized herein.

(c) The duties and responsibilities of the advisory board shall be
prescribed by the commissioner, and the commissioner may specifically
delegate to the advisory board, by inclusion in the dairy promotion
order, all or any of the following duties and responsibilities:

(i) The recommendation to the commissioner of administrative rules and
regulations relating to the order.

(ii) Recommending to the commissioner such amendments to the order as
seems advisable.

(iii) The preparation and submission to the commissioner of an
estimated budget required for the proper operation of the order.

(iv) Recommending to the commissioner methods for assessing producers
and methods for collecting the necessary funds.

(v) Assisting the commissioner in the collection and assembly of
information and data necessary for the proper administration of the
order.

(vi) The performance of such other duties in connection with the order
as the commissioner shall designate.

11. Rules and regulations enforcement. (a) The commissioner may, with
the advice and assistance of the advisory board, make and issue such
rules and regulations as may be necessary to effectuate the provisions
and intent of this section and to enforce the provisions of any dairy
promotion order, all of which shall have the force and effect of law.

(b) The commissioner may institute such action at law or in equity as
may appear necessary to enforce compliance with any provision of this
section, or any rule or regulation, or dairy promotion order committed
to the commissioner's administration, and in addition to any other
remedy under article three of this chapter or otherwise, may apply for
relief by injunction if necessary to protect the public interest without
being compelled to allege or prove that an adequate remedy at law does
not exist. Such application shall be made to the supreme court in any
district or county provided in the civil practice law or rules, or to
the supreme court in the third judicial district.

* NB Effective July 1, 2026