MILK PRODUCERS' AND COOPERATIVE SECURITY FUNDS ACT - REPEALED — 1980 Pa. Act 104 (historical enacted text)

Historical Act text

HOUSE AMENDED
PRIOR PRINTER'S NOS. 1618, 1928 PRINTER'S NO. 1970
INTRODUCED BY STAPLETON, O'CONNELL, KURY, MESSINGER, O'PAKE,
MELLOW, MOORE, SCHAEFER, ORLANDO, SMITH, REIBMAN, ROSS,
GURZENDA, LINCOLN, MURRAY, KUSSE, HAGER, HESS AND DWYER,
MARCH 10, 1980
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 30, 1980
AN ACT
1 Requiring prompt payment to milk producers, providing for the
2 establishment of a Milk Producers' Security Fund and a
3 Cooperative Security Fund, providing for a procedure to
4 process claims against the Milk Producers' Security Fund and
5 Cooperative Security Fund, providing for alternative methods
6 of security on behalf of milk producers, and providing for
7 certain prohibitions and penalties.
8 TABLE OF CONTENTS
9 Section 1. Short title.
10 Section 2. Declaration of policy.
11 Section 3. Scope of coverage.
12 Section 4. Definitions.
13 Section 5. Prompt payment of milk.
14 Section 6. Payments to security funds.
15 Section 7. Milk Producers' Security Fund.
16 Section 8. Claims against Milk Producers' Security Fund.
17 Section 9. Surety bonds.
18 Section 10. Alternative methods of security.
1 Section 11. Additional bond or alternative security.
2 Section 12. Claims against bond or alternative security.
3 Section 13. Time for providing security.
4 Section 14. Notice of failure to provide security.
5 Section 15. Cooperative Security Fund.
6 Section 16. Withdrawals from Cooperative Security Fund.
7 Section 17. Adjustment for Federal support program.
8 Section 18. Title to milk.
9 Section 19. Prohibitions and violations.
10 Section 20. Rules and regulations.
11 Section 21. Notice of election to participate in security
12 fund.
13 Section 22. Repealer.
14 Section 23. Effective dates.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Short title.
18 This act shall be known and may be cited as the "Milk
19 Producers' and Cooperative Security Funds Act."
20 Section 2. Declaration of policy.
21 It is hereby declared that the dairy industry is a paramount
22 agricultural industry of this Commonwealth and that the normal
23 processes of producing and marketing milk is an enterprise of
24 vast economic importance to the Commonwealth and of vital
25 importance to the consuming public which ought to be safeguarded
26 and protected in the public interest. The General Assembly finds
27 that the marketing of milk requires dairy farmers and
28 cooperatives to receive prompt payment from dealers and
29 handlers. It has been, and continues to be, the policy of this
30 Commonwealth to protect producers and cooperatives against loss
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1 of payment for milk because of defaults by purchasers. The
2 public interest requires the establishment of a Milk Producers'
3 Security Fund and a Cooperatives' Security Fund as well as other
4 alternative forms of security.
5 Section 3. Scope of coverage.
6 (a) For purposes of this act, a cooperative corporation or
7 association of producers shall be deemed to be a producer and
8 not a dealer with respect to the milk of its producer members OR <--
9 OF ITS PRODUCER-PATRONS UNDER SPECIFIC NONMEMBER MARKETING
10 AGREEMENTS, or of other qualified cooperatives under annual
11 contract with such cooperative provided that such contract is on
12 file with AND APPROVED BY the Milk Marketing Board. It shall be <--
13 deemed to be a dealer with respect to milk purchased or received
14 from producers other than those specified above.
15 (b) It shall be unlawful for a milk dealer or handler to
16 purchase, acquire or receive on consignment or otherwise milk
17 from producers unless said milk dealer or handler shall be in
18 good standing with regard to payments to the security fund
19 pursuant to sections 6 and 7, or shall have on file with the
20 Milk Marketing Board an alternative form of security pursuant to
21 sections 9, 10 and 11.
22 (c) It shall be unlawful for a cooperative, corporation or
23 association of producers to purchase, acquire, receive on
24 consignment or handle milk from producers and/or members unless
25 said cooperative shall be in good standing with regard to
26 payments to the Cooperative Security Fund pursuant to sections 6
27 and 15 or has opted out under the provisions of section 6(c).
28 Section 4. Definitions.
29 The following words and phrases when used in this act shall
30 have, unless the context clearly indicates otherwise, the
19800S1287B1970 - 3 -
1 meanings given to them in this section:
2 "Blend price." The actual price due or paid to producers
3 after computation of the licensed dealer's or handler's producer
4 obligation pursuant to the applicable rules, regulations or
5 orders of the Milk Marketing Board.
6 "Board." The Milk Marketing Board.
7 "Cooperative." A cooperative agricultural association or
8 corporation of producers organized under the Laws of this
9 Commonwealth or of any other state, which qualifies as such
10 under the provisions of the Federal Capper-Volstead Act, and
11 engaged in making collective sales or in the marketing of milk
12 for producers under contract with it. A cooperative shall not be
13 deemed a milk dealer or handler, but shall be deemed a producer,
14 except as otherwise provided herein.
15 "Handle" or "to handle." The doing of any one or several or
16 all of the following acts, to buy, sell, barter, acquire, store,
17 process, consign, receive, transport, control as owner, buyer,
18 seller, consignee, consignor, bailee, bailor, broker or factor.
19 "Milk." Fluid milk and cream, fresh, sour or storage,
20 skimmed milk, flavored milk or milk drink, buttermilk, ice cream
21 mix, and condensed or concentrated whole or skimmed milk, except
22 when contained in hermetically sealed cans.
23 "Milk dealer" or "handler." Any person, including any store
24 or subdealer or subhandler, as hereinafter defined, who
25 purchases or receives or handles on consignment or otherwise
26 milk within the Commonwealth, for sale, shipment, storage,
27 processing or manufacture, within or without the Commonwealth,
28 whether on behalf of himself or others, or both. A producer who
29 delivers milk to a milk dealer or handler only shall not be
30 deemed a milk dealer or handler. If a cooperative distributes or
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1 makes available on consignment or otherwise milk within this
2 Commonwealth to stores, as defined in the act of April 28, 1937
3 (P.L.417, No.105), known as the "Milk Marketing Law," or to
4 consumers, as defined in the Milk Marketing Law, or acts as an
5 agent for its members, it shall be deemed to be a milk dealer or
6 handler as to that part of its business, and shall be governed
7 by the provisions of the Milk Marketing Law applicable thereto.
8 Such cooperative shall be governed by the applicable provisions
9 of the Milk Marketing Law as to the prices at which it sells,
10 markets or bargains to sell or make available on consignment or
11 otherwise milk within this Commonwealth to milk dealers,
12 handlers and others.
13 "Pay period." The dates and terms of payment as required
14 under section 5 and under rules, regulations and orders of the
15 Milk Marketing Board promulgated pursuant to section 5.
16 "Producer." A person producing milk.
17 Section 5. Prompt payment of milk.
18 All milk dealers shall pay for milk purchased or received
19 from producers with final payments to be made no later than the
20 fiftieth day from which the milk was received or purchased. The
21 board may, in its sole discretion after a public meeting <--
22 HEARING, shorten the time period in which final payments for <--
23 milk are made. It is the specific intent of the General Assembly
24 that final milk payments be made in as short a time period as
25 possible from the date milk was received or purchased.
26 Therefore, the board is empowered to hold public meetings <--
27 HEARINGS as often as possible to consider the time period for <--
28 final milk payments and to shorten the time period whenever
29 appropriate.
30 Section 6. Payments to security funds.
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1 (a) Any milk dealer, except a cooperative, who has not filed
2 a bond or other alternative security pursuant to sections 9, 10
3 and 11, and who buys, receives or otherwise handles milk
4 received from producers, shall pay monthly to the board one cent
5 per hundredweight on all such milk purchased, received or
6 handled. Such payments shall be deposited in the Milk Producers'
7 Security Fund established by section 7.
8 (b) All cooperatives or associations of producers, who buy,
9 sell, receive or otherwise handle milk received from producers
10 and/or members, shall pay to the board one cent per
11 hundredweight on all such milk purchased, received or handled.
12 Such payments shall be deposited in the Cooperative Security
13 Fund established by section 15. The board shall apportion all
14 payments from cooperatives into:
15 (1) the Milk Producers' Security Fund when milk is from
16 producers who are nonmembers and the cooperative is deemed to
17 be a dealer or handler; and
18 (2) the Cooperative Security Fund when milk is from
19 members or other qualified cooperatives under annual contract
20 with such cooperative provided that such contract is on file
21 with AND APPROVED BY the board. <--
22 (c) Any cooperative or association of producers may choose
23 to opt out of the provisions of subsection (b)(2) in one of the <--
24 following methods:
25 (1) an affirmative vote by a majority of the members of
26 the board of directors of the cooperative or association of
27 producers to opt out of the Cooperative Security Fund; or <--
28 (2) an affirmative vote for a resolution of intent to
29 opt out of the Cooperative Security Fund by a majority of the
30 voting delegates at an annual or special meeting. shall be <--
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1 necessary before the cooperative or association of producers
2 can opt out of the Cooperative Security Fund.
3 (d) Prior to a cooperative or association of producers
4 invoking the provisions of either subsection (c)(1) or (c)(2)
5 hereof, there shall be mailed to each member of such cooperative
6 or association of producers notice of said action. The notice
7 shall contain, inter alia, the following:
8 (1) the time, place and date of the meeting;
9 (2) which provision under section 6 is to be invoked;
10 (3) the purpose of the meeting; and
11 (4) a brief explanation as to the purposes and intent of
12 this act.
13 The notice shall be mailed at least 30 days prior to the
14 scheduled meeting. The board shall through regulation determine
15 the form and procedure for the notice provisions under this
16 section.
17 (e) Any cooperative or association of producers may within
18 six months from the date that this act becomes law notify the
19 board of a vote under subsection (c)(1) or hold a special or
20 annual meeting under subsection (c)(2). After this initial six-
21 month period has expired, any cooperative or association of
22 producers may invoke the provisions of subsection (c)(1) or
23 (c)(2) only one time in any 12-month period.
24 Section 7. Milk Producers' Security Fund.
25 (a) The board shall transmit all moneys received by it from
26 milk dealers pursuant to section 6(a) to a trust company
27 designated by the board as fiscal agent, which fiscal agent
28 shall establish a fund to be designated as a Milk Producers'
29 Security Fund. The funds so received and deposited shall not be
30 deemed to be Commonwealth funds. The fiscal agent shall be
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1 empowered to place such funds in interest bearing accounts to
2 the maximum extent possible and consistent with the purposes of
3 this act. All earned interest shall accrue to the fund. The
4 expense of administering the provisions of the security fund and
5 of administering section 6 shall be paid from the fund by the
6 fiscal agent at the direction of the board. Such payments shall
7 not exceed 1 1/4% of the total fund or $50,000 per annum,
8 whichever is greater. The board shall make an annual report of
9 the receipts to and disbursements from the fund, including the
10 cost of administration of the fund, which report shall be made
11 available to each milk dealer who has made payments into the
12 current fund and to any other person having an interest in the
13 fund.
14 (b) After the security fund shall have equaled $4,000,000 or
15 shall consist of such greater or lesser amount which in the
16 opinion of the board is sufficient to protect the interests of
17 producers and which bears a rational relationship to the scope
18 of the debt covered by such fund, the board shall administer the
19 fund in the manner prescribed herein.
20 (c) At the inception of the Milk Producers' Security Fund,
21 each milk dealer who elects to make payments to such fund shall,
22 while maintaining its existing bond or other form of security,
23 be required to pay to such fund on a date designated by the
24 board one cent per hundredweight of the milk purchased, received
25 or handled from the producers during the three months
26 immediately preceding such date. After the establishment of the
27 Milk Producers' Security Fund, any milk dealer who first elects
28 to make payments to such fund shall make a similar advance
29 payment: Provided, however, That the advance payment shall be
30 computed for no more than three months preceding such date. A
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1 milk dealer who has elected to participate in the fund and has
2 made the initial deposit as herein required, may apply to the
3 board for termination of an existing bond or return of existing
4 security filed with the board which the board is empowered to
5 release at such time as the security fund reaches a level the
6 board considers adequate to secure milk producers.
7 Section 8. Claims against Milk Producers' Security Fund.
8 (a) If the board has reason to believe that a licensed milk
9 dealer who is participating in the Milk Producers' Security Fund
10 has defaulted in making payments for milk to producers, the
11 board shall give reasonable notice to the producers believed to
12 be affected to file verified claims and may fix a reasonable
13 time within which such claims must be filed.
14 (b) No claims against the Milk Producers' Security Fund
15 shall be allowed for sales of milk to dealers not licensed by
16 the board. No claims shall be allowed for deliveries of milk by
17 a producer in excess of 75% of the blend price amount owed for a
18 period of no more than ten days longer than the applicable pay
19 period as established under section 5. The board may, after a
20 public hearing, increase the percentage amount paid on claims,
21 if the board declares that the Milk Producers' Security Fund has
22 sufficient assets in accordance with generally accepted
23 actuarial principles.
24 (c) The board shall examine the claims so filed, determine
25 after hearing upon reasonable notice to the claimant and to the
26 defaulting dealer the amount, due upon such claims and certify
27 the amount due each claimant. The certification of the amount
28 due shall be filed WITH THE FISCAL AGENT AND INTERESTED PARTIES <--
29 within 45 days after the claimants have filed verified claims.
30 (d) The board's determination certifying the amount due each
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1 claimant shall be final unless the defaulting milk dealer or the
2 claimant shall institute an appeal to the Commonwealth Court
3 within 15 days from the date of personal service of a copy of
4 the written determination upon the milk dealer and producer
5 affected thereby. If after the expiration of the 15-day period,
6 the board's determination has not been stayed by the
7 Commonwealth Court in a proceeding instituted to review it, the
8 board shall direct the fiscal agent to pay the claimants from
9 the moneys available in the Milk Producers' Security Fund.
10 (e) If any claim is paid from the security fund, the
11 defaulting dealer shall be liable to the board for repayment to
12 the fund of the amount of claims so paid. If the defaulting
13 dealer has not paid the board within 15 days after personal
14 service upon him of the board's certification of payment of a
15 claim from the fund for which the dealer has been found liable
16 to the claimant, the board shall have the power, in its
17 discretion, to sue on behalf of the fund. Suit may be brought in
18 the name of the Commonwealth upon the relation of the board, in
19 such manner as debts are now by law recoverable.
20 Section 9. Surety bonds.
21 (a) Each milk dealer who purchases, receives or otherwise
22 handled milk received from producers may execute and file with
23 the board a corporate surety bond or collateral bond in lieu of
24 participation in the security fund. The bond shall be on a form
25 prescribed by the board conditioned for the payment by the milk
26 dealer or handler of all amounts due under this act and the
27 order of the board, for milk purchased or otherwise acquired
28 from producers by the milk dealer or handler during the license
29 year, which payments shall be made within the time limits
30 specified in this act and/or the regulations of the board, and
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1 shall be upon such other terms and conditions as the board may
2 prescribe.
3 (b) A corporate surety bond shall be executed to the
4 Commonwealth by the milk dealer as principal, and by a corporate
5 surety company. The board shall have no power to reject any
6 corporate surety bond which is so executed by a corporate surety
7 company authorized to do business in this Commonwealth as
8 surety, so long as the amount of the bond is equal to or less
9 than the amount the surety company is authorized to execute on a
10 single bond without obtaining collateral security from the
11 principal. The board may reject any bond which exceeds such
12 amount. A collateral bond shall be executed to the Commonwealth
13 by the milk dealer as principal, shall set forth the collateral
14 posted with such bond, and shall have attached thereto the
15 collateral properly assigned and transferred to the Commonwealth
16 of Pennsylvania. The collateral posted with such bond shall be
17 cash in an amount equal to the amount of the bond; or, such bond
18 shall be secured by an actual deposit with the board of a bank,
19 bank and trust company or national bank with WITHIN the <--
20 Commonwealth of money to the full amount of the bond, or
21 securities to the amount of the bond consisting of interest
22 bearing obligations of the United States Government.
23 (c) A milk dealer who on the effective date of this act has
24 on file with the board a collateral bond, the collateral for
25 which is an irrevocable letter or letters of credit for the
26 account of the milk dealer authorizing the board to draw on a
27 bank or a trust company or banks or trust companies LOCATED <--
28 WITHIN AND authorized to do business in the Commonwealth of
29 Pennsylvania to the amount of the bond, may continue to file
30 such security with his collateral bond.
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1 (d) Except as otherwise herein provided, the bond shall be
2 in a sum equal to the value of the highest aggregate amount of
3 milk owed by the dealer or handler to producers during the
4 preceding 12 months, and the amount owed in the same period to
5 the United States Department of Agriculture equalization or
6 producer settlement fund.
7 (e) Milk purchased, acquired or received by a milk dealer or
8 handler from producers outside the Commonwealth and sold or
9 distributed by such dealers or handlers as fluid milk within the
10 Commonwealth, shall be included in computing the amount of such
11 dealer's or handler's bond, except where such dealer or handler
12 has filed a bond or other security for the protection of such
13 producers with the state wherein the milk is purchased, acquired
14 or received.
15 (f) A milk dealer or handler purchasing or acquiring or
16 receiving or intending to purchase or receive milk from
17 producers, but not engaged during the preceding 12 months, shall
18 file a bond in a sum to be fixed by the board in accordance with
19 the handler's anticipated purchases from producers and his
20 obligation to a producer settlement or equalization fund. The
21 board shall review the operations of the dealer or handler each
22 two months and such bond shall be modified or phased out by the
23 board at such time as the board is satisfied that the producers
24 are adequately secured.
25 Section 10. Alternative methods of security.
26 Each milk dealer buying milk from producers may in lieu of
27 participation in the Milk Producers' Security Fund or in lieu of
28 filing a surety bond provide an equal amount of protection for
29 the producers from whom he purchases or receives milk, in one or
30 more of the following forms:
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1 (1) cash deposited with a bank or trust company and held
2 under an escrow agreement with the board whereby it is solely
3 for the protection of producers until such time as the board
4 finds that it is no longer needed for that purpose;
5 (2) NEGOTIABLE bonds of the United States; <--
6 (3) a letter or letters of credit for the account of the
7 milk dealer authorizing the board to draw on a bank or trust
8 company or banks or trust companies LOCATED WITHIN AND <--
9 authorized to do business in the Commonwealth of
10 Pennsylvania; AND <--
11 (4) the assignment of the current "cash surrender value"
12 of life insurance policies issued to the milk dealer, or in
13 case the milk dealer is a partnership or corporation, such
14 policy or policies issued to its partners or officers.; or <--
15 (5) marketable securities with fixed market value which
16 securities have regularly reported quotations.
17 Section 11. Additional bond or alternative security.
18 Whenever the board shall determine that the value of milk
19 purchased or received from producers by a dealer who is not
20 participating in the Milk Producers' Security Fund has
21 increased, or that such increase may reasonably be anticipated,
22 so that the total amount of security does not comply with the
23 formula set forth in section 9, as applied to any consecutive
24 two-month period during the current year, the board shall
25 require such additional surety bond or securities in lieu
26 thereof as will afford producers the protection intended by this
27 act. A dealer shall report to the board any increase or
28 anticipated increase in the value of milk purchased or received
29 from producers. FAILURE TO REPORT ANY INCREASE OR ANTICIPATED <--
30 INCREASE AS PROVIDED ABOVE SHALL BE A VIOLATION OF THIS ACT. ANY
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1 DEALER COMMITTING SUCH A VIOLATION SHALL BE SUBJECT TO
2 SUSPENSION OR REVOCATION OF HIS MILK DEALER'S LICENSE OR
3 PENALTIES PROVIDED BY SECTION 19.
4 Section 12. Claims against bond or alternative security.
5 (a) Claims by producers against a dealer who had filed a
6 bond or alternative security shall be processed by the board in
7 the same manner as is provided in section 8 with respect to
8 claims against the Milk Producers' Security Fund and such claims
9 shall be subject to the same limitations. The board's
10 determination certifying the amount due claimants shall be
11 subject to judicial review in the same manner and subject to the
12 same limitations. In the case of a dealer who has filed
13 alternative security, the board shall proceed to obtain from
14 such security the funds with which to pay the claims. In the
15 case of a dealer who has filed a surety bond, the board may
16 bring an action on the bond, and for the purposes of such action
17 his ITS determination certifying the amounts due shall be <--
18 presumptive evidence of the facts therein stated. If recovery
19 upon the bond or alternative security is not sufficient to pay
20 all claims, the amount recovered shall be divided pro rata among
21 claimants.
22 (b) In the case of a dealer who has filed a collateral bond,
23 the board shall proceed to obtain from the collateral the funds
24 with which to pay the claims. The board shall have the power, in
25 its discretion, to sue on the bond on behalf of producers. Suit
26 may be brought in the name of the Commonwealth upon relation of
27 the board in such manner as debts are now by law recoverable.
28 Section 13. Time for providing security.
29 (a) Surety bonds or securities for the license year shall be
30 filed with the board not later than the first FIFTEENTH day of <--
19800S1287B1970 - 14 -
1 the month before the beginning of each license year. A milk
2 dealer who elects to participate in the security fund in lieu of
3 filing a surety bond or alternative security, shall notify the
4 board not later than two months prior to the date on which such
5 change is to be made, and shall make the initial payment as
6 required by section 7(c) not later than one month before such
7 change is to be made.
8 (b) If any milk dealer who purchases or receives milk from
9 producers has not filed a surety bond or securities in lieu
10 thereof, and has not been relieved from filing such surety bond
11 or securities by participation in the Milk Producers' Security
12 Fund, by the first FIFTEENTH day of the month prior to the <--
13 beginning of the license year, the board shall notify such
14 producers that such milk dealer has not filed any security or
15 made other provisions for assuring payments for milk purchases,
16 for the license year commencing the first day of the next month.
17 Section 14. Notice of failure to provide security.
18 (a) Whenever a milk dealer fails to pay into the Milk
19 Producers' Security Fund or to file the surety bond or
20 securities as provided pursuant to this act within the time or
21 times fixed by this act or the board's demand for additional
22 security, the board shall publish in a newspaper or newspapers
23 having circulation in the area or areas in which the producers
24 whose milk is sold or delivered to such milk dealer reside, a
25 notice stating that:
26 (1) it made such demand or request of said milk dealer;
27 (2) the milk dealer has failed to comply;
28 (3) the board does not have on file such surety bond or
29 securities as demanded, or that it has not paid moneys due
30 the Milk Producers' Security Fund as required by him; and
19800S1287B1970 - 15 -
1 (4) adequate security to protect such producer may not
2 be available to them as provided in this act.
3 In addition to such published notice to producers, the board
4 shall send by certified mail a copy of such notice to each
5 producer delivering milk to such milk dealer as the board may be
6 able to determine from records available to the board and such
7 notice shall be addressed to such producer's last known place of
8 residence and/or business.
9 (b) Whenever a cooperative or association of producers fails
10 to pay into the Cooperative Security Fund as provided pursuant
11 to this act within the time or times fixed by this act, the
12 board shall send by certified mail a notice to each member of
13 the cooperative stating that:
14 (1) the board made such demand or request of said
15 cooperative;
16 (2) the cooperative has failed to comply;
17 (3) it has not paid moneys due the Cooperative Security
18 Fund as required by the board; and
19 (4) adequate security to protect the members may not be
20 available to them as provided in this act.
21 Section 15. Cooperative Security Fund.
22 (a) The board shall transmit all moneys received from
23 cooperatives pursuant to section 6(b) to a trust company
24 designated by it as fiscal agent, which fiscal agent shall
25 establish a fund to be known as the Cooperative Security Fund.
26 The funds so received and deposited shall not be deemed to be
27 Commonwealth funds. The fiscal agent shall be empowered to place
28 such funds in interest bearing accounts to the maximum extent
29 possible consistent with the purposes of this act. The expenses
30 of administering the fund and of administering section 6 shall
19800S1287B1970 - 16 -
1 be paid from the fund by the fiscal agent at the discretion of
2 the board. Such payments shall not exceed 1 1/4% of the total
3 fund or $50,000 per annum, whichever is greater. The board shall
4 make an annual report of the receipts to and disbursements from
5 the fund, including the cost of administration of the fund,
6 which report shall be made available to each member of a
7 cooperative who has made payments into the current fund and to
8 any other person having an interest in the fund.
9 (b) After the security fund shall have equaled $2,000,000 or
10 shall consist of such greater or lesser amount which in the
11 opinion of the board is sufficient to protect the interests of
12 the members of the cooperative participating in the fund and
13 which bears a rational relationship to the scope of the debt
14 covered by such fund, the board shall administer the fund in the
15 manner prescribed herein.
16 Section 16. Withdrawals from Cooperative Security Fund.
17 The members and producers of a participating cooperative may
18 apply to the board for the withdrawal of funds in the
19 Cooperative Security Fund after the cooperative has been
20 adjudicated bankrupt in any Federal Bankruptcy Court in the
21 United States, in an amount not to exceed 90% of the
22 cooperative's unpaid milk money of the member or producer. An
23 application for withdrawal under this section shall be in a form
24 and manner prescribed by the board. A final determination of the
25 board of an application under this section shall be subject to
26 review in a proceeding brought in the Commonwealth Court within
27 30 days from the date of service by mail of the determination
28 upon the member and/or producer.
29 Section 17. Adjustment for Federal support program.
30 Any milk dealer who makes payment to the Milk Producers'
19800S1287B1970 - 17 -
1 Security Fund and any cooperative required to make payments to
2 the Cooperative Security Fund shall be eligible to receive
3 rebates or credits pursuant to regulations promulgated by the
4 board with respect to the milk equivalent value of butter,
5 cheese and non-fat dry milk manufactured by such dealer or
6 cooperative and sold to the Commodity Credit Corporation of the
7 United States.
8 Section 18. Title to milk.
9 Title to milk shall be deemed to have transferred from the
10 seller, producer or agent of same to the buyer, dealer or
11 handler at the point of shipment of the milk. Nothing in this
12 section shall be construed as to supersede any Federal OR <--
13 PENNSYLVANIA MILK MARKETING BOARD order requiring the costs of
14 shipment of milk to be F.O.B. the place of destination. THIS <--
15 SECTION SHALL APPLY ONLY AND BE LIMITED TO THE ADMINISTRATION OF
16 THIS ACT. IT SHALL HAVE NO EFFECT ON ANY PROVISION OF THE ACT OF
17 APRIL 28, 1937 (P.L.417, NO.105), KNOWN AS THE "MILK MARKETING
18 LAW."
19 Section 19. Prohibitions and violations.
20 (a) It shall be unlawful for a milk dealer or a
21 participating cooperative to purchase or receive milk from
22 producers or from other dealers or cooperatives for resale or
23 manufacture unless such dealer or cooperative makes prompt
24 payment of any assessment due to the board pursuant to section
25 6, or where applicable, has filed a bond or other alternative
26 security pursuant to sections 9, 10 and 11. It shall also be
27 unlawful for a milk dealer or cooperative to sell milk to
28 another milk dealer or cooperative, if it has been notified by
29 the board that the buying dealer or cooperative has failed to
30 make payment to a producer, within the time period prescribed
19800S1287B1970 - 18 -
1 under section 5, to the Milk Producers' Security Fund, to the
2 Cooperative Security Fund or to the producer settlement fund, or
3 if such buying dealer or cooperative has exceeded the credit
4 period as provided pursuant to section 5 and the sale was not
5 made upon the basis of cash on delivery, or said buying dealer
6 has failed to provide a bond or other alternative security as
7 provided pursuant to sections 9, 10 and 11.
8 (b) A violation of this act shall subject a milk dealer or a
9 participating cooperative to a penalty of $50 for each day that
10 it is late in making payment into the security fund of the
11 assessment required by this act, for each day it sells milk to a
12 milk dealer after being notified by the board of the milk
13 dealer's failure to provide security as provided herein, or for
14 each day a milk dealer or participating cooperative who has
15 failed to make payments for milk purchased as provided pursuant
16 to section 5. Any person who buys or sells in violation of the
17 credit period provided in section 5 shall be liable for
18 suspension or revocation of his milk dealer's license in
19 pursuance of the Milk Marketing Law, or the board may accept
20 from the licensee an offer in compromise a penalty at the rate
21 of $50 for each day of violation.
22 (c) In addition to the prohibitions and penalties under this
23 section, the board may, in its sole discretion, commence a
24 proceeding in the Commonwealth Court to seek temporary and/or
25 permanent injunctive relief against a milk dealer or a
26 participating cooperative to cease its operations until it has
27 complied with the requirements under this act.
28 Section 20. Rules and regulations.
29 The board, after due notice and public hearing, may
30 promulgate rules and regulations to carry out the provisions and
19800S1287B1970 - 19 -
1 intent of this act.
2 Section 21. Notice of election to participate in security fund.
3 All milk dealers electing to participate in the security fund
4 as provided by sections 6 and 7 shall file written notice of
5 their intention to do so and pay to the board their payment
6 pursuant to section 7(c) on or before the forty-fifth day
7 following the effective date of sections 6 and 7.
8 Section 22. Repealer.
9 Article V SECTIONS 501, 502, 503, 504, 505, 506, 507, 508, <--
10 509, 510, 511 AND 512 of the act of April 28, 1937 (P.L.417,
11 No.105), known as the "Milk Marketing Law," is ARE repealed. <--
12 Section 23. Effective dates.
13 This act shall take effect as follows:
14 (1) Section 19 shall take effect immediately.
15 (2) Section 22 shall take effect in 180 days.
16 (3) The remainder of the act shall take effect in 90
17 days.
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