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A07266 Summary:BILL NO A07266
SAME AS Same as S 4404
SPONSOR Magee (MS)
COSPNSR Castro, Cook, Eddington, Fields, Gabryszak, Gunther, Jaffee, Lupardo,
Reilly, Stirpe, Koon, Gordon, Lifton
MLTSPNSR Brennan, Lopez P, Magnarelli, McEneny, Titone
Amd S258-b, Ag & Mkts L
Relates to the milk producers security fund.
A07266 Actions:BILL NO A07266
03/26/2009 referred to agriculture
04/28/2009 reported referred to ways and means
05/19/2009 reported
05/21/2009 advanced to third reading cal.629
05/26/2009 passed assembly
05/26/2009 delivered to senate
05/26/2009 REFERRED TO AGRICULTURE
05/27/2009 SUBSTITUTED FOR S4404
05/27/2009 3RD READING CAL.291
05/27/2009 PASSED SENATE
05/27/2009 RETURNED TO ASSEMBLY
06/25/2009 delivered to governor
07/07/2009 signed chap.85
A07266 Votes:BILL: A07266 DATE: 05/26/2009 MOTION: YEA/NAY: 143/000
Abbate Y Cahill Y Errigo Y Hyer-Sp Y Mayerso ER Quinn Y Stirpe Y
Alessi Y Calhoun Y Espaill Y Jacobs Y McDonou Y Rabbitt Y Sweeney Y
Alfano Y Camara Y Farrell Y Jaffee Y McEneny Y Raia Y Tedisco Y
Amedore Y Canestr Y Fields Y Jeffrie Y McKevit Y Ramos Y Thiele Y
Arroyo Y Carrozz Y Finch Y John Y Meng Y Reilich Y Titone Y
Aubry Y Castro Y Fitzpat Y Jordan Y Miller Y Reilly Y Titus Y
Bacalle Y Christe Y Gabrysz Y Kavanag Y Millman Y Rive J Y Tobacco Y
Ball Y Clark ER Galef Y Kellner Y Molinar Y Rive N Y Towns Y
Barclay Y Colton Y Gantt Y Kolb Y Morelle Y Rive PM Y Townsen Y
Barra Y Conte Y Gianari Y Koon Y Nolan Y Robinso Y Walker ER
Barron Y Cook Y Giglio Y Lancman Y Oaks Y Rosenth Y Weinste Y
Benedet Y Corwin Y Glick Y Latimer Y O'Donne Y Russell Y Weisenb Y
Benjami Y Crouch Y Gordon Y Lavine Y O'Mara Y Saladin Y Weprin Y
Bing Y Cusick Y Gottfri Y Lentol Y Ortiz Y Sayward Y Wright Y
Boyland Y Cymbrow Y Gunther Y Lifton Y Parment Y Scarbor Y Zebrows Y
Boyle ER DelMont Y Hawley Y Lope PD Y Paulin Y Schimel Y Mr Spkr Y
Bradley Y DenDekk Y Hayes Y Lope VJ ER Peoples Y Schimmi Y
Brennan Y Destito Y Heastie Y Lupardo Y Peralta Y Schroed Y
Brodsky Y Dinowit Y Hevesi Y Magee Y Perry Y Scozzaf Y
Brook-K Y Duprey Y Hikind Y Magnare Y Pheffer Y Seminer Y
Burling Y Eddingt Y Hooper Y Maisel Y Powell Y Skartad Y
Butler Y Englebr Y Hoyt Y Markey Y Pretlow Y Spano Y
A07266 Memo:BILL NUMBER:A7266
TITLE OF BILL: An act to amend the agriculture and markets law, in
relation to the milk producers security fund
Purpose:
The purpose of this bill is to provide increased payment protection to
New York's dairy farmers.
Summary of provisions:
Section 1 of this bill would amend AML S258-b(3)(b) to raise, from 7.5
percent to 15 percent, the percent of the value of milk purchases
covered by the Milk Producers Security Fund (MPS Fund), as determined by
the Commissioner, that results in a reduction, from one and one-half
tenths of one percent to one-tenth of one percent, of the maximum rates
established by AML S258-b(3)(a).
Section 2 of this bill would amend AML S258-b(4)(b) to increase, from
$7.5 million to $12 million, the cap on the MPS Fund; and to increase,
from 7.5 percent to 15 percent, the cap on the value of milk purchases
covered by the MPS Fund.
Section 3 of this bill provides that the bill would take effect on the
thirtieth day after it becomes law.
Existing law:
AML S258-b(3)(b) establishes 7.5 percent as the percent of value of milk
purchases covered by the MPS Fund, as determined by the Commissioner,
that results in a reduction, from one and one-half tenths of one percent
to one-tenth of one percent, of the maximum rates established by AML
S258-b(a).
AML S258-b(4)(b) establishes $7.5 million, or such greater or lesser
amount up to 7.5 percent of the value of milk purchases to be covered by
the MPS Fund, as the Commissioner may determine is sufficient to protect
producers' interests, as a cap on the MPS Fund.
Legislative history:
This is a new bill
Statement in support:
New York maintains the MPS Fund as part of its Milk Security Program for
the purpose of protecting milk producers against loss of income in the
event a milk dealer defaults in paying for milk received. Milk dealers
who have not filed a bond or other required security and who buy,
receive or otherwise handle milk received from producers, are generally
required to pay into the MPS Fund an amount up to one and one-half
tenths of one percent of a price per hundredweight of milk, or set
pursuant to an alternative formula, as determined by the Commissioner.
Whenever the Commissioner determines that the balance in the MPS Fund
exceeds 7.5 percent of the value of milk purchases covered by the fund,
the maximum rates paid by milk dealers pursuant to AML S 258-b(3) (a)
are reduced. See AML S 258-b(3)(b). The Fund is capped at $7.5 million,
or such greater or lesser amount, up to 7.5 percent of the value of milk
purchases to be covered by the fund, calculated upon the basis of the
average value of the milk covered by the fund during the preceding
calendar year, as the Commissioner may determine is sufficient to
protect producers' interests.
The dollar value of monthly milk purchases by the largest volume dealers
participating in the MPS Fund has increased in recent years, raising
concerns that a default by a large volume dealer could exhaust or seri-
ously deplete the MPS Fund, thereby depriving milk producers of payment
protection.
This bill addresses this concern by amending AML S258-b(4)(b) to
increase, from $7 million to $12 million, the cap on the MPS Fund and to
increase, from 7.5 percent to 15 percent the cap on the value of milk
purchases covered by the MPS Fund. This bill also amends AML
S258-b(3)(b), governing the maximum rates of MPS Fund assessments paid
by milk dealers, to reflect the increase in the MPS Fund cap. The
increases will provide the Commissioner with flexibility to maintain the
MPS Fund at a level sufficient to protect producers.
Budget implications:
None.
Effective Date:
This bill would take effect on the thirtieth day after it becomes a law.
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