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PRIOR PRINTER'S NO. 2870
PRINTER'S NO. 2980
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
224
Session of
2022
INTRODUCED BY LAWRENCE, OWLETT, MOUL, CAUSER, BERNSTINE, BOBACK,
BURGOS, COOK, SCHLEGEL CULVER, ECKER, FEE, HENNESSEY,
HICKERNELL, IRVIN, JAMES, KAUFFMAN, KENYATTA, LONGIETTI,
MENTZER, MILLARD, B. MILLER, PICKETT, RYAN, STAMBAUGH,
STRUZZI, HERSHEY, ZIMMERMAN, GILLEN, ARMANINI AND JOZWIAK,
MARCH 24, 2022
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
APRIL 12, 2022
AN ACT
Amending the act of April 28, 1937 (P.L.417, No.105), entitled
"An act relating to milk and the products thereof; creating a
Milk Marketing Board; establishing its jurisdiction, powers
and duties; regulating the production, transportation,
manufacturing, processing, storage, distribution, delivery
and sale of milk and certain products thereof; providing for
the licensing of milk dealers and the payment of fees
therefor; requiring milk dealers to file bonds to secure
payment for milk to producers and certain milk dealers;
authorizing the holding of hearings and the issuance of
subpoenas by the board; conferring jurisdiction upon courts
to punish contempts and to prohibit violations of this act
and of rules, regulations and orders of the board;
authorizing the board to adopt rules, regulations and orders,
and to enter into interstate and Federal compacts; requiring
persons who weigh, measure, sample or test milk to procure
permits or certificates, to take examinations, to pay fees
therefor, to furnish certain notices, records and statements,
and to use certain methods of weighing, measuring, sampling
and testing; authorizing the board to examine the business,
papers and premises of milk dealers and producers, requiring
the keeping of records and the filing of reports by milk
dealers, and permitting, with limitations, the use of
information obtained thereby; authorizing the board to fix
prices for milk and certain milk products subject to the
approval of the Governor, and conferring certain powers upon
the Governor with respect thereto; providing for appeals to
the courts from decisions of the board, and for the burden of
proof upon such appeals; prescribing penalties, fines and
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imprisonment for violations of this act and rules,
regulations and orders of the board; defining perjury;
defining remedies; repealing legislation supplied and
superseded by this act, and saving rights, duties and
proceedings thereunder; and making appropriations," in
purpose, short title and definitions, further providing for
definitions and construction; in general powers of the board,
providing for collection of premiums; in prices of milk,
providing for board established premiums and further
providing for cooperatives; and, in moneys and expenses of
board, further providing for Milk Marketing Fund and for
payment and providing for audits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 103 of the act of April 28, 1937
(P.L.417, No.105), known as the Milk Marketing Law, is amended
by adding a definition to read:
Section 103. Definitions; Construction.--The following terms
shall be construed in this act to have the following meanings,
except in those instances where the context clearly indicates
otherwise:
* * *
"Board established premium" means a fee or charge established
by official order of the board on a class or classes of milk
that is in addition to a price fixed for milk.
* * *
Section 2. The act is amended by adding sections to read:
Section 312. Collection of Premiums .--The board is hereby
vested with the authority to, by official order, coordinate,
facilitate or establish the collection and distribution of board
established premiums.
Section 801.1. Board Established Premiums.--The board may
fix, by official order, board established premiums.
Section 3. Sections 809, 1101 and 1104 of the act are
amended to read:
Section 809. Cooperatives.--(a) It is hereby declared to be
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the legislative intent that no provision of this act shall
prevent, and no provision contained herein shall be deemed or
construed to prevent, any cooperative agricultural association
or corporation organized under the laws of this Commonwealth, or
a similar association or corporation organized under the laws of
this or any other state, and engaged in making collective sales
or in the marketing of milk for the producers thereof, from
blending the net proceeds of its sales or consignments or
deliveries in all its markets or of its sales or deliveries
within any particular market in various classes and whether in
fluid form or as manufactured products, both within and without
the Commonwealth, and paying its producers such blended price,
with such deductions and differentials as may be authorized
under contract between such association or corporation, and its
producers, and with prior written approval of the board, or from
making collective sales of the milk of its members and other
producers represented by it, or from making such sales or
deliveries at a blended price based upon sales or deliveries
thereof in the various classes, and whether in fluid form or as
manufactured products, both within and without the Commonwealth,
which price is to be paid either directly to the producers or to
the cooperative agricultural association or corporation. Nothing
herein contained shall prevent any milk dealer or handler from
contracting for his milk with such cooperative agricultural
association or corporation, upon such basis; but all such
contracts shall be upon the basis of the prices fixed by the
board, with the result that the net price received for milk by
such cooperative association or corporation shall be
commensurate with such prices. No director or officer of a
cooperative association or corporation shall offer, nor shall
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milk dealers or handlers, or agents thereof, receive from any
producer or from such cooperative association or corporation,
directly or indirectly, any discounts, rebates, free service, or
compensation through rentals, extension of credit, or otherwise
for the purpose or with the effect, of reducing the net cost to
the dealer or handler for milk purchased or received by or
through such cooperative association or corporation.
(b) No provision of this act shall be deemed or construed to
affect the contracts of such cooperative agricultural
association or corporation with its producers, except as
hereinafter specifically provided, nor to affect or abridge the
rights and powers of such an association or any of its
operations: Provided, however, That the powers of subpoena,
entry, and inspection, vested in the board under this act, shall
apply for the purpose of examining and auditing books and
records of any such cooperative agricultural association or
corporation, at reasonable intervals, for the purpose of
administering this act. This section shall not, however, be
construed to exempt such association or corporation from the
jurisdiction of the board over the prices at which it may sell
milk to milk dealers or handlers, stores or consumers[.] or from
the jurisdiction of the board over the collection and
distribution of board established premiums under section 312.
(c) Every cooperative agricultural association or
corporation operating under the provisions of this section shall
file with the board a copy of its certificate of incorporation
and by-laws, and a copy of each form of contract employed in its
relations with producers, within sixty (60) days after the
effective date of this act.
Section 1101. Milk Marketing Fund.--(a) All moneys
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collected or received by the board, arising from license fees,
penalties, permits or any other source, shall be paid by the
board into the State Treasury through the Department of Revenue,
and shall, by the State Treasurer, be placed in a separate fund
to be known as the "Milk Marketing Fund." Fines imposed under
this act shall be payable to, and collected by, the board, and
similarly placed in the Milk Marketing Fund.
(b) Moneys collected or received by the board, that are not
funds of the Commonwealth, but are due to producers, dealers or
handlers for, or on account of, milk acquired or received by
dealers or handlers from producers or other dealers or handlers,
and placed in the Milk Marketing Fund, shall be paid to the
persons entitled thereto by the State Treasurer, as directed by
the board.
(c) The board may direct, by official order, a transfer by
the State Treasurer of excess moneys within the Milk Marketing
Fund to the General Fund.
Section 1104. Payment.--(a) Moneys in the Milk Marketing
Fund appropriated to the Milk Marketing Board shall be paid out
upon warrant of the State Treasurer drawn after requisition by
the secretary of the Milk Marketing Board.
(b) Moneys appropriated by the General Assembly to the Milk
Marketing Fund shall be designated, by official order of the
board, to be paid to producers, dealers or handlers. THE MONEYS
TRANSFERRED UNDER THIS SUBSECTION ARE RESTRICTED TO THE USES OF
THE MILK MARKETING FUND SPECIFIED UNDER THIS ACT.
Section 4. The act is amended by adding a section to read:
Section 1107. Audits. -- Moneys paid to producers, dealers or
handlers under section 1104 shall be subject to an audit by the
board or its designee. An audit conducted under this section may
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be authorized by official order of the board.
Section 5. This act shall take effect in 60 days.
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