S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6163
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 3, 2023
                                ___________
 
 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  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.  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 FARM PRODUCTS
 THROUGH PRODUCER OWNED AND CONTROLLED COOPERATIVES. THE ORDERLY  MARKET-
 ING  OF  FARM  PRODUCTS  FOR  THE  BENEFIT OF FARMERS, DISTRIBUTORS, AND
 CONSUMERS IS ENHANCED WHEN FARMERS ARE FREE TO MAKE AN INDEPENDENT UNCO-
 ERCED DECISION REGARDING  THEIR  PARTICIPATION  IN  COOPERATIVE  ASSOCI-
 ATIONS,  AS  AUTHORIZED  BY  STATE AND FEDERAL LAW.  INTERFERENCE IN THE
 EXERCISE OF THIS FREE RIGHT OF CHOICE IS CONTRARY TO THE  PUBLIC  INTER-
 EST.  FOR  THIS  REASON,  THE LEGISLATURE FINDS THAT THE PUBLIC INTEREST
 REQUIRES THAT THERE BE A SPECIFICATION OF PROHIBITED UNFAIR TRADE  PRAC-
 TICES WHICH HAVE THE PURPOSE OF INTENTIONALLY IMPAIRING A FARMER'S FREE-
 DOM  TO  BARGAIN COLLECTIVELY WITH OTHER FARMERS IN THE MARKETING OF THE
 FARMER'S PRODUCT.
   FOR PURPOSES OF THIS SECTION,  (I)  AN  "ASSOCIATION  OF  FARMERS"  OR
 "COOPERATIVE"  SHALL  MEAN  ANY  CORPORATION  OR  ASSOCIATION OF PERSONS
 ENGAGED IN THE PRODUCTION OF FARM PRODUCTS 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  ASSOCI-
 ATIONS,  OR  OF SUCH CORPORATIONS, ASSOCIATIONS, AND INDIVIDUAL FARMERS,
 AND (II) AN ASSOCIATION OF FARMERS SHALL  NOT  BE  CONSIDERED  TO  BE  A
 DISTRIBUTOR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01302-02-3
              

 A. 6163                             2
 
   §  256-D. UNFAIR PRACTICES BY DEALERS. 1. IT SHALL BE UNLAWFUL FOR ANY
 DISTRIBUTOR OR ANY OF ITS OFFICERS, MANAGERS, AGENTS,  OR  EMPLOYEES  TO
 INTENTIONALLY  IMPAIR A FARMER'S FREEDOM TO JOIN OR TO PARTICIPATE IN AN
 ASSOCIATION OF FARMERS 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 FARMER IN THE EXERCISE OF HIS OR HER RIGHT TO JOIN AND
 BELONG TO AN ASSOCIATION OF FARMERS 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 FARMERS 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 FARMER TO REFUSE OR CEASE TO BELONG TO AN ASSOCIATION  OF  FARMERS
 OR COOPERATIVE;
   (D)  REFUSING  TO DEAL WITH ANY FARMER, BECAUSE OF THE EXERCISE OF THE
 FARMER'S RIGHT TO JOIN AND BELONG TO AN ASSOCIATION OF FARMERS OR  COOP-
 ERATIVE;
   (E)  MAKING FALSE REPORTS ABOUT THE FINANCES OR MANAGEMENT OF AN ASSO-
 CIATION OF FARMERS OR OTHER DEALERS IN RECKLESS DISREGARD OF  THE  TRUTH
 OR  KNOWING  THAT SUCH STATEMENTS ARE UNTRUE AND THAT THERE IS A REASON-
 ABLE LIKELIHOOD THAT SUCH STATEMENTS WILL IMPAIR  A  FARMER'S  RIGHT  TO
 MAKE  AN  INDEPENDENT DECISION TO BELONG TO AN ASSOCIATION OF FARMERS 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  FARMERS"  OR
 "COOPERATIVE"  SHALL  MEAN  ANY  CORPORATION  OR  ASSOCIATION OF PERSONS
 ENGAGED IN THE PRODUCTION OF FARM PRODUCTS AND OPERATING FOR THE  MUTUAL
 BENEFIT  OF  ITS  MEMBERS  IN  CONFORMITY  WITH  THE REQUIREMENTS OF THE
 CAPPER-VOLSTEAD ACT, AND ANY FEDERATION OF SUCH CORPORATIONS OR  ASSOCI-
 ATIONS, OR OF SUCH CORPORATIONS, ASSOCIATIONS, AND INDIVIDUAL PRODUCERS,
 AND  (B)  AN  ASSOCIATION  OF  FARMERS  SHALL  NOT BE CONSIDERED TO BE A
 DISTRIBUTOR.
   3. NOTHING IN THIS SECTION IS INTENDED TO PREVENT  BARGAINING  BETWEEN
 DISTRIBUTORS  AND  FARMERS  OR  ASSOCIATIONS  OF FARMERS WITH RESPECT TO
 PRICE OR ANY OTHER TERMS OF PURCHASE OR HANDLING OF FARM PRODUCTS  IN  A
 COURSE OF DEALING NOT PROSCRIBED BY THIS SECTION, NOR TO PREVENT FARMERS
 FROM REQUIRING THAT PAYMENT BE MADE THROUGH AN ASSOCIATION OF FARMERS 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 DISTRIBUTOR UNDER SECTION TWO HUNDRED  FIFTY-EIGHT-C  OF  THIS
 ARTICLE  FOR  CONDUCT  WHICH  IS A VIOLATION OF THIS SECTION UNLESS SUCH
 DISTRIBUTOR IS AT THE TIME OF SUCH CONDUCT SUBJECT TO A  FINAL  ADMINIS-
 TRATIVE OR JUDICIAL ORDER WHICH PROHIBITS SUCH CONDUCT BY SUCH DISTRIBU-
 TOR;  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:
 A. 6163                             3
 
   § 74. Liability for damages for encouraging or permitting delivery  of
 products  in  violation  of  marketing agreements.   Any person, firm or
 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.