S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5533
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 19, 2021
                                ___________
 
 Introduced by M. of A. LEMONDES -- read once and referred to the Commit-
   tee on Agriculture
 
 AN  ACT  to  amend  the  agriculture and markets law and the cooperative
   corporations law, in relation to establishing a dairy farmers' bill of
   rights
 
   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 two
 new sections 256-c and 256-d to read as follows:
   § 256-C. DAIRY FARMERS' BILL OF RIGHTS; DECLARATION OF  POLICY.    THE
 EXPRESSED  INTENT  OF  THE AGRICULTURE AND MARKETS LAW AND THE POLICY OF
 THIS STATE IS TO FOSTER AND ENCOURAGE  THE  MARKETING  OF  MILK  THROUGH
 PRODUCER  OWNED  AND  CONTROLLED  COOPERATIVES. THE ORDERLY MARKETING OF
 MILK FOR THE BENEFIT OF FARMERS, MILK DEALERS, AND CONSUMERS IS ENHANCED
 WHEN MILK PRODUCERS ARE FREE TO MAKE AN INDEPENDENT  UNCOERCED  DECISION
 REGARDING THEIR PARTICIPATION IN COOPERATIVE ASSOCIATIONS, AS AUTHORIZED
 BY  STATE  AND  FEDERAL LAW.   INTERFERENCE IN THE EXERCISE OF THIS FREE
 RIGHT OF CHOICE IS CONTRARY TO THE PUBLIC INTEREST. FOR THIS REASON, THE
 LEGISLATURE FINDS THAT THE PUBLIC INTEREST  REQUIRES  THAT  THERE  BE  A
 SPECIFICATION  OF  PROHIBITED  UNFAIR  TRADE  PRACTICES  WHICH  HAVE THE
 PURPOSE OF INTENTIONALLY  IMPAIRING  A  PRODUCER'S  FREEDOM  TO  BARGAIN
 COLLECTIVELY  WITH  OTHER  PRODUCERS  IN THE MARKETING OF THE PRODUCER'S
 PRODUCT.
   FOR PURPOSES OF THIS SECTION, (I) AN  "ASSOCIATION  OF  PRODUCERS"  OR
 "COOPERATIVE"  SHALL  MEAN  ANY  CORPORATION  OR  ASSOCIATION OF PERSONS
 ENGAGED IN THE PRODUCTION OF MILK AND OPERATING FOR THE  MUTUAL  BENEFIT
 OF ITS MEMBERS IN CONFORMITY WITH THE REQUIREMENT OF THE CAPPER-VOLSTEAD
 ACT, AND ANY FEDERATION OF SUCH CORPORATIONS OR ASSOCIATIONS, OR OF SUCH
 CORPORATIONS,  ASSOCIATIONS, AND INDIVIDUAL PRODUCERS, AND (II) AN ASSO-
 CIATION OF PRODUCERS SHALL NOT BE CONSIDERED TO BE A MILK DEALER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09418-01-1
              

 A. 5533                             2
 
   § 256-D. UNFAIR PRACTICES BY DEALERS. 1. IT SHALL BE UNLAWFUL FOR  ANY
 MILK  DEALER  OR  ANY OF ITS OFFICERS, MANAGERS, AGENTS, OR EMPLOYEES TO
 INTENTIONALLY IMPAIR A PRODUCER'S FREEDOM TO JOIN OR TO  PARTICIPATE  IN
 AN ASSOCIATION OF PRODUCERS OR COOPERATIVE BY:
   (A)  COERCING,  THROUGH  THREAT OF INJURY TO PERSON OR PROPERTY, OR TO
 HEALTH, SAFETY, BUSINESS OR FINANCIAL CONDITION, REPUTATION OR  PERSONAL
 RELATIONSHIPS  ANY  PRODUCER IN THE EXERCISE OF HIS OR HER RIGHT TO JOIN
 AND BELONG TO AN ASSOCIATION OF PRODUCERS OR COOPERATIVE;
   (B) SOLICITING OR REQUESTING ANY PRODUCER TO BREACH A MARKETING AGREE-
 MENT OR OTHER CONTRACTUAL AGREEMENT BETWEEN THE PRODUCER AND AN  ASSOCI-
 ATION OF PRODUCERS OR COOPERATIVE;
   (C)  MAKING  A LOAN OR GIFT OF MONEY, OR OF ANYTHING ELSE OF VALUE, OR
 OFFERING TO MAKE SUCH A LOAN OR GIFT FOR THE SPECIFIC PURPOSE OF  INDUC-
 ING A PRODUCER TO REFUSE OR CEASE TO BELONG TO AN ASSOCIATION OF PRODUC-
 ERS OR COOPERATIVE;
   (D) REFUSING TO DEAL WITH ANY PRODUCER, BECAUSE OF THE EXERCISE OF THE
 PRODUCER'S  RIGHT  TO  JOIN AND BELONG TO AN ASSOCIATION OF PRODUCERS OR
 COOPERATIVE;
   (E) MAKING FALSE REPORTS ABOUT THE FINANCES OR MANAGEMENT OF AN  ASSO-
 CIATION  OF PRODUCERS OR OTHER MILK DEALERS IN RECKLESS DISREGARD OF THE
 TRUTH OR KNOWING THAT SUCH STATEMENTS ARE UNTRUE AND  THAT  THERE  IS  A
 REASONABLE  LIKELIHOOD  THAT  SUCH  STATEMENTS  WILL IMPAIR A PRODUCER'S
 RIGHT TO MAKE AN INDEPENDENT DECISION TO BELONG  TO  AN  ASSOCIATION  OF
 PRODUCERS OR COOPERATIVE; AND
   (F)  CONSPIRING,  COMBINING,  AGREEING,  OR  ARRANGING  WITH ANY OTHER
 PERSON TO DO, OR AID AND ABET THE DOING OF, ANY  ACT  MADE  UNLAWFUL  BY
 THIS SECTION.
   2.  FOR PURPOSES OF THIS SECTION: (A) AN "ASSOCIATION OF PRODUCERS" OR
 "COOPERATIVE" SHALL MEAN  ANY  CORPORATION  OR  ASSOCIATION  OF  PERSONS
 ENGAGED  IN  THE PRODUCTION OF MILK AND OPERATING FOR THE MUTUAL BENEFIT
 OF ITS MEMBERS IN CONFORMITY WITH THE REQUIREMENTS  OF  THE  CAPPER-VOL-
 STEAD  ACT,  AND ANY FEDERATION OF SUCH CORPORATIONS OR ASSOCIATIONS, OR
 OF SUCH CORPORATIONS, ASSOCIATIONS, AND INDIVIDUAL PRODUCERS, AND (B) AN
 ASSOCIATION OF PRODUCERS SHALL NOT BE CONSIDERED TO BE A MILK DEALER.
   3. NOTHING IN THIS SECTION IS INTENDED TO PREVENT  BARGAINING  BETWEEN
 MILK  DEALERS AND PRODUCERS OR ASSOCIATIONS OF PRODUCERS WITH RESPECT TO
 PRICE OR ANY OTHER TERMS OF PURCHASE OR HANDLING OF MILK IN A COURSE  OF
 DEALING  NOT  PROSCRIBED  BY THIS SECTION, NOR TO PREVENT PRODUCERS FROM
 REQUIRING THAT PAYMENT BE MADE THROUGH AN ASSOCIATION  OF  PRODUCERS  OR
 COOPERATIVE.
   4. WHENEVER THE COMMISSIONER HAS REASON TO BELIEVE A VIOLATION OF THIS
 SECTION  HAS  OCCURRED,  THE  COMMISSIONER  MAY  COMMENCE  SUCH JUDICIAL
 ACTION, OR INSTITUTE SUCH INVESTIGATION OR PROCEEDING AND ISSUE AN ORDER
 BASED THEREON, AS IS PROVIDED BY THIS ARTICLE OR ARTICLE THREE  OF  THIS
 CHAPTER;  PROVIDED,  HOWEVER, THAT THE COMMISSIONER SHALL TAKE NO ACTION
 AGAINST A MILK DEALER UNDER SECTION TWO HUNDRED  FIFTY-EIGHT-C  OF  THIS
 ARTICLE  FOR  CONDUCT  WHICH  IS A VIOLATION OF THIS SECTION UNLESS SUCH
 DEALER IS AT THE TIME OF SUCH CONDUCT SUBJECT TO A FINAL  ADMINISTRATIVE
 OR  JUDICIAL  ORDER  WHICH  PROHIBITS  SUCH  CONDUCT BY SUCH DEALER; AND
 PROVIDED FURTHER THAT NOTHING CONTAINED IN THIS SECTION SHALL IMPAIR  OR
 DELAY THE PRIVATE RIGHT OF ACTION CREATED BY SECTION SEVENTY-FOUR OF THE
 COOPERATIVE CORPORATIONS LAW FOR ANY VIOLATION OF THAT SECTION.
   § 2. Section 74 of the cooperative corporations law is amended to read
 as follows:
   §  74. Liability for damages for encouraging or permitting delivery of
 products in violation of marketing agreements.    Any  person,  firm  or

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 corporation who solicits or persuades or aids or abets any member of any
 cooperative corporation incorporated under or subject to this chapter to
 breach  his  marketing  contract  with  the  corporation by accepting or
 receiving  such  member's products for sale, marketing, manufacturing or
 processing thereof contrary to the terms of any marketing  agreement  of
 which said person or any officer [or], manager, AGENT OR EMPLOYEE of the
 said  corporation  has knowledge or notice, shall be liable in the penal
 sum of [one hundred]  NOT  MORE  THAN  TEN  THOUSAND  dollars  for  each
 contract,  to  the cooperative corporation aggrieved in a civil suit for
 damages; and such  cooperative  corporation  shall  be  entitled  to  an
 injunction  against  such person, firm or corporation to prevent further
 breaches.
   § 3.  This act shall take effect immediately.