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SECTION 258-L
Producers' bargaining agencies and distributors' bargaining agencies
Agriculture & Markets (AGM) CHAPTER 69, ARTICLE 21
§ 258-l. Producers' bargaining agencies and distributors' bargaining
agencies. (a) Incorporated producers' associations operated under and
subject to the cooperative corporations law of this state, or similar
laws of another state and organized and controlled by milk producers,
may establish producers' bargaining agencies for the various production
areas of the state designated by the commissioner. Cooperative
corporations similarly incorporated hereafter and owned and controlled
by producers shall be entitled to use and participate in such a
bargaining agency and be represented by it in order that producers not
now represented by a cooperative association may be entitled to the
benefits of this act.

Upon presentation of a written certification by a cooperative
corporation qualified to receive cooperative payments under a state or a
joint federal and state milk marketing order, or orders, or by a
cooperative corporation affiliated with a federation of cooperative
corporations similarly qualified, to a licensed milk dealer, setting
forth a list of its members for the payment of whose milk said dealer is
responsible, such dealer shall make payments to such cooperative
corporation from moneys due such listed members for milk purchased by
the dealer in such amounts as such cooperative shall certify is payable
to it; provided that (a) at least the names of 10 members are one the
list, or (b) in the case of dealers receiving milk from 17 or less
producers at a plant, the names of at least 51% of such producers are on
the list. Such amounts shall be payable monthly to the treasurer of the
cooperative corporation, together with a compilation of milk poundage to
which such payment is related. At intervals, not more frequent than
monthly, each such cooperative shall certify to the dealer involved any
additions or withdrawals from its listed membership. As to such changes
in memberships so certified, the dealer shall make payments on the
additional producers, but shall not be required to make payments to the
cooperative corporation on the withdrawn producers. In no event shall a
dealer be required to make payments on a producer who is not listed as a
member by the certifying cooperative corporation.

The voting power of each association participating in such an agency
shall be on the basis of one vote for each one hundred producers under
contract with such association for the marketing of their milk within
such marketing area, and in case of an association with less than one
hundred producers under contract with it, a fractional vote in
proportion to the number of such producers. Only active contracts shall
be considered.

The purpose of a producers' bargaining agency is to negotiate
agreements on the basis of orders in the respective marketing areas for
presentation to the commissioner for his consideration and approval, as
provided in section two hundred and fifty-eight-m herein. A producers'
bargaining agency shall be authorized to negotiate with a distributors'
bargaining agency in such marketing area in regard to arrangements or
agreements to be presented to the commissioner as a basis of marketing
agreements or orders pursuant to said section two hundred and
fifty-eight-m.

Each association upon joining or employing the producers' bargaining
agency shall file with it a certified copy of its certificate of
incorporation, its by-laws, copies of form of contracts with its
producers and a certified statement of the number of such contracts
which are in force.

A producers' bargaining agency may appear before and negotiate with
the commissioner in regard to marketing agreements or orders, as
provided in section two hundred and fifty-eight-m herein.

It shall be lawful for such producers' bargaining agency to act as a
common marketing agency for the various cooperative associations of
producers which it represents and such cooperative associations may make
contracts with each other and with such producers' agency for such
purpose and for the collective processing, preparing for market,
handling and marketing of the products of such associations and for
effectuating the purposes of this act. In order to carry out and
effectuate such purposes, contracts and agreements may be made pursuant
to section twenty-five of the co-operative corporations law and as to
interstate commerce pursuant to act of congress of February eighteenth,
nineteen hundred twenty-two, entitled "An act to authorize association
of producers of agricultural products,"

(b) A distributors' bargaining agency may be organized by the
distributors in a marketing area. The voting power of each distributor
in such bargaining agency shall be in proportion to the quantity of milk
distributed by him in such area. Such quantity shall be determined by
that distributed during the preceding year as reported to the
commissioner. In the New York metropolitan milk marketing area the
voting power of each distributor shall be on the basis of one vote for
each ten million pounds of milk distributed in such market during the
preceding year and in case of a distributor handling a less quantity of
milk, a proportionate fractional vote. In other marketing areas the
voting basis shall be one vote for each one hundred thousand pounds
distributed during the preceding year in such market with a
proportionate fractional vote in case of distributors handling a less
quantity of milk. The purpose of distributors' bargaining agencies is to
negotiate with producers' bargaining agencies as to the agreements or
the basis of orders in the respective marketing areas for presentation
to the commissioner for his consideration and approval, as provided in
section two hundred fifty-eight-m herein.

A distributors' bargaining agency may appear before and negotiate with
the commissioner in regard to marketing agreements or orders, as
provided in section two hundred fifty-eight-m herein.

Producers' bargaining agencies and distributors' bargaining agencies
may also meet and negotiate in order to carry out the purposes of this
act and subject to the approval of the commissioner, as provided in
section two hundred fifty-eight-m, may make marketing agreements with
each other and with cooperative associations in relation to the
marketing of milk which may be handled or distributed in more than one
marketing area. Such agencies may also meet and negotiate and take such
reasonable measures as are necessary and advisable to cooperate with the
commissioner and legally constituted authorities of other states and of
the United States with respect to the handling and control of milk
handled in interstate commerce and carry out and effectuate the
provisions of section two hundred fifty-eight-n.

Except as specifically provided in section two hundred fifty-eight-m,
the activities and operations of producers' bargaining agencies and
distributors' bargaining agencies and of the constituent members
thereof, and contracts, agreements or arrangements made by them,
pursuant to the provisions of this subdivision, and of section two
hundred fifty-eight-m hereof, shall not be deemed or construed to be
conspiracies, combinations, contracts or agreements in restraint of
trade or commerce or an illegal monopoly.

"Milk production area" as used in this article means those dairy farms
maintained primarily as a source of fluid milk for a marketing area.
Such primary source of supply shall include farms from which all
shipments of milk have been subject to the minimum uniform price
provisions of a marketing order or agreement for such market during at
least a portion of the preceding two years, together with such other
farms as may hereafter be designated by the commissioner as a source of
supply for the marketing area in the manner prescribed by section two
hundred fifty-eight-j.