S T A T E   O F   N E W   Y O R K
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                                  11284

                          I N  A S S E M B L Y

                              May 25, 2010
                               ___________

Introduced by M. of A. P. LOPEZ -- read once and referred to the Commit-
  tee on Agriculture

AN  ACT  to  amend  the  agriculture and markets law, in relation to the
  establishment of the dairy assistance program; and providing  for  the
  repeal of such provisions upon expiration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The agriculture and markets law is amended by adding a  new
article 21-D to read as follows:
                               ARTICLE 21-D
                        DAIRY ASSISTANCE PROGRAM
SECTION 258-OO. LEGISLATIVE INTENT.
        258-PP. DAIRY ASSISTANCE PROGRAM.
  S  258-OO.  LEGISLATIVE INTENT. THE LEGISLATURE HEREBY FINDS THAT THIS
STATE'S DAIRY FARMERS CONTINUE TO LABOR UNDER A COMBINATION OF EXTREMELY
LOW MILK PRICES WELL BELOW THOSE OF TWENTY-FIVE YEARS  AGO,  ALONG  WITH
VERY  HIGH  FUEL,  FEED,  ENERGY,  FERTILIZER AND OTHER OPERATING COSTS.
THESE CONDITIONS HAVE RESULTED IN UNPRECEDENTED LOSSES FOR DAIRY  FARMS.
THE  PRICE  OF  MILK  CONTINUES TO BE WELL BELOW THE COST OF PRODUCTION.
MANY OF THE VENDORS AND SERVICE INDUSTRIES SERVING  DAIRY  FARMERS  HAVE
HAD  TO  PROVIDE  AN  INCREASING  AMOUNT OF CREDIT TO SUCH FARMERS. THIS
ARTICLE IS ENACTED TO ASSIST THE DAIRY FARMERS OF THIS STATE  AND  THEIR
INDUSTRY  IN  A  TIME  OF  GREAT NEED AND TO PREVENT FURTHER LOSS IN THE
DAIRY INDUSTRY AND ITS INFRASTRUCTURE WHICH ARE CRITICAL TO THE  STATE'S
AGRICULTURAL ECONOMY.
  S  258-PP.  DAIRY ASSISTANCE PROGRAM. 1. A DAIRY ASSISTANCE PROGRAM IS
HEREBY ESTABLISHED WITHIN THE DEPARTMENT FOR THE PURPOSES  OF  PROVIDING
PAYMENT  TO  PRODUCERS FOR MILK PRODUCED DURING THE PERIOD COMMENCING ON
JANUARY FIRST, TWO THOUSAND NINE AND ENDING  ON  DECEMBER  THIRTY-FIRST,
TWO  THOUSAND  NINE.  THE  DAIRY  ASSISTANCE  PROGRAM SHALL PAY ELIGIBLE
PRODUCERS THE DIFFERENCE BETWEEN TARGET PRICES TO BE ESTABLISHED BY  THE
COMMISSIONER  AND THE COMBINED ANNOUNCED NORTHEAST FEDERAL ORDER STATIS-
TICAL UNIFORM PRICE PLUS THE AMOUNT OF THE  MILK  INCOME  LOSS  CONTRACT
PAYMENT RATE ON A PER-HUNDREDWEIGHT BASIS. FURTHER, OTHER FACTORS MAY BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD16619-01-0

A. 11284                            2

USED  BY  THE COMMISSIONER IN DETERMINING PAYMENT TO PRODUCERS FOR MILK.
DAIRY PRODUCERS SHALL RECEIVE PAYMENT FROM FUNDS MADE AVAILABLE FROM THE
COMMUNITY PROJECTS FUND, AFTER CONSULTATION WITH  THE  COMMISSIONER,  IN
THE FORM OF A SEPARATE CHECK BASED ON POUNDS OF MILK PRODUCED DURING THE
PERIOD  COMMENCING  ON  JANUARY  FIRST,  TWO THOUSAND NINE AND ENDING ON
DECEMBER THIRTY-FIRST, TWO THOUSAND NINE. SUCH PAYMENT SHALL BE MADE  NO
LATER THAN THIRTY DAYS FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE.
  2. THE COMMISSIONER SHALL REQUEST THE UNITED STATE DEPARTMENT OF AGRI-
CULTURE'S  FARM  SERVICE AGENCY TO PROVIDE PRODUCTION DATA FOR PRODUCERS
AND ASSIST THE DEPARTMENT IN ADMINISTERING THE PROGRAM.  PRODUCTION DATA
SHALL ONLY BE OBTAINED FROM  PRODUCERS  IN  THIS  MANNER  PROVIDED  SUCH
PRODUCER  SUBMIT A FORM, PRESCRIBED BY THE COMMISSIONER, AUTHORIZING THE
RELEASE OF SUCH DATA. PRODUCERS WHO  DO  NOT  PARTICIPATE  IN  THE  MILK
INCOME  LOSS CONTRACT PROGRAM SHALL SUBMIT TO THE DEPARTMENT ALTERNATIVE
MEANS OF VERIFYING PRODUCTION DATA AS PRESCRIBED  BY  THE  COMMISSIONER,
INCLUDING  BUT  NOT  LIMITED  TO MILK MARKETING PAYMENT STUBS, BULK TANK
RECORDS, MILK HANDLER RECORDS AND DAILY MILK MARKETING RECORDS.
  3. THE FOLLOWING SHALL NOT BE CONSIDERED  COMMERCIALLY  MARKETED  MILK
AND SHALL BE INELIGIBLE FOR THE DAIRY ASSISTANCE PROGRAM:
  (A)  DUMPED  MILK  THAT  CAUSES  BULK  LOAD  CONTAMINATION FOR WHICH A
PRODUCER RECEIVES AN INSURANCE INDEMNITY; AND
  (B) MILK DUMPED ON THE FARM BY ORDER OF ANY STATE OFFICER OR EMPLOYEE.
  4. ALL PRODUCERS SHALL BE REIMBURSED  FOR  UP  TO  FIVE  MILLION  NINE
HUNDRED  SEVENTY  THOUSAND  POUNDS  OF  MILK  PRODUCED DURING THE PERIOD
COMMENCING ON JANUARY FIRST, TWO THOUSAND NINE AND  ENDING  ON  DECEMBER
THIRTY-FIRST,  TWO  THOUSAND NINE. THE COMMISSIONER IS HEREBY AUTHORIZED
TO PROMULGATE ANY ADDITIONAL RULES AND REGULATIONS NECESSARY  TO  IMPLE-
MENT THE PROVISIONS OF THIS ARTICLE.
  5.  STATE  FUNDS  SHALL  BE  MADE  AVAILABLE  FOR THE DAIRY ASSISTANCE
PROGRAM TO BE SUPPORTED THROUGH THE SUPPORT OF  THE  COMMUNITY  PROJECTS
FUND.
  S  2.  This  act shall take effect immediately and shall expire and be
deemed repealed December 31, 2011.