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A06130 Summary:

BILL NOA06130
 
SAME ASNo Same As
 
SPONSORLemondes
 
COSPNSR
 
MLTSPNSR
 
Add §§256-c & 256-d, Ag & Mkts L; amd §74, Coop Corps L
 
Establishes a farmers' bill of rights; specifies 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; provides that the commissioner of the department of agriculture and markets shall take action to restrain such violations upon the application of an association of producers; increases the limit on damages for encouraging or permitting delivery of products in violation of marketing agreements.
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A06130 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6130
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 26, 2025
                                       ___________
 
        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:
 
     1    Section 1. The agriculture and markets law is amended  by  adding  two
     2  new sections 256-c and 256-d to read as follows:
     3    §  256-c.  Farmers'  bill  of  rights;  declaration  of  policy.   The
     4  expressed intent of the agriculture and markets law and  the  policy  of
     5  this  state  is  to  foster and encourage the marketing of farm products
     6  through producer owned and controlled cooperatives. The orderly  market-
     7  ing  of  farm  products  for  the  benefit of farmers, distributors, and
     8  consumers is enhanced when farmers are free to make an independent unco-
     9  erced decision regarding  their  participation  in  cooperative  associ-
    10  ations,  as  authorized  by  state and federal law.  Interference in the
    11  exercise of this free right of choice is contrary to the  public  inter-
    12  est.  For  this  reason,  the legislature finds that the public interest
    13  requires that there be a specification of prohibited unfair trade  prac-
    14  tices which have the purpose of intentionally impairing a farmer's free-
    15  dom  to  bargain collectively with other farmers in the marketing of the
    16  farmer's product.
    17    For purposes of this section,  (i)  an  "association  of  farmers"  or
    18  "cooperative"  shall  mean  any  corporation  or  association of persons
    19  engaged in the production of farm products and operating for the  mutual
    20  benefit  of  its  members  in  conformity  with  the  requirement of the
    21  Capper-Volstead act, and any federation of such corporations or  associ-
    22  ations,  or  of such corporations, associations, and individual farmers,
    23  and (ii) an association of farmers shall  not  be  considered  to  be  a
    24  distributor.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08684-01-5

        A. 6130                             2
 
     1    §  256-d. Unfair practices by dealers. 1. It shall be unlawful for any
     2  distributor or any of its officers, managers, agents,  or  employees  to
     3  intentionally  impair a farmer's freedom to join or to participate in an
     4  association of farmers or cooperative by:
     5    (a)  coercing,  through  threat of injury to person or property, or to
     6  health, safety, business or financial condition, reputation or  personal
     7  relationships  any  farmer in the exercise of the farmer's right to join
     8  and belong to an association of farmers or cooperative;
     9    (b) soliciting or requesting any producer to breach a marketing agree-
    10  ment or other contractual agreement between the producer and an  associ-
    11  ation of farmers or cooperative;
    12    (c)  making  a loan or gift of money, or of anything else of value, or
    13  offering to make such a loan or gift for the specific purpose of  induc-
    14  ing  a  farmer to refuse or cease to belong to an association of farmers
    15  or cooperative;
    16    (d) refusing to deal with any farmer, because of the exercise  of  the
    17  farmer's  right to join and belong to an association of farmers or coop-
    18  erative;
    19    (e) making false reports about the finances or management of an  asso-
    20  ciation  of  farmers or other dealers in reckless disregard of the truth
    21  or knowing that such statements are untrue and that there is  a  reason-
    22  able  likelihood  that  such  statements will impair a farmer's right to
    23  make an independent decision to belong to an association of  farmers  or
    24  cooperative; and
    25    (f)  conspiring,  combining,  agreeing,  or  arranging  with any other
    26  person to do, or aid and abet the doing of, any  act  made  unlawful  by
    27  this section.
    28    2.  For  purposes  of this section: (a) an "association of farmers" or
    29  "cooperative" shall mean  any  corporation  or  association  of  persons
    30  engaged  in the production of farm products and operating for the mutual
    31  benefit of its members  in  conformity  with  the  requirements  of  the
    32  Capper-Volstead  act, and any federation of such corporations or associ-
    33  ations, or of such corporations, associations, and individual producers,
    34  and (b) an association of farmers  shall  not  be  considered  to  be  a
    35  distributor.
    36    3.  Nothing  in this section is intended to prevent bargaining between
    37  distributors and farmers or associations  of  farmers  with  respect  to
    38  price  or  any other terms of purchase or handling of farm products in a
    39  course of dealing not proscribed by this section, nor to prevent farmers
    40  from requiring that payment be made through an association of farmers or
    41  cooperative.
    42    4. Whenever the commissioner has reason to believe a violation of this
    43  section has  occurred,  the  commissioner  may  commence  such  judicial
    44  action, or institute such investigation or proceeding and issue an order
    45  based  thereon,  as is provided by this article or article three of this
    46  chapter; provided, however, that the commissioner shall take  no  action
    47  against  a  distributor  under section two hundred fifty-eight-c of this
    48  article for conduct which is a violation of  this  section  unless  such
    49  distributor  is  at the time of such conduct subject to a final adminis-
    50  trative or judicial order which prohibits such conduct by such distribu-
    51  tor; and provided further that nothing contained in this  section  shall
    52  impair  or delay the private right of action created by section seventy-
    53  four of the cooperative corporations  law  for  any  violation  of  that
    54  section.
    55    § 2. Section 74 of the cooperative corporations law is amended to read
    56  as follows:

        A. 6130                             3
 
     1    §  74. Liability for damages for encouraging or permitting delivery of
     2  products in violation of marketing agreements.    Any  person,  firm  or
     3  corporation who solicits or persuades or aids or abets any member of any
     4  cooperative corporation incorporated under or subject to this chapter to
     5  breach  [his]  such  member's marketing contract with the corporation by
     6  accepting or receiving such member's products for sale, marketing, manu-
     7  facturing or processing thereof contrary to the terms of  any  marketing
     8  agreement  of  which  said person or any officer [or], manager, agent or
     9  employee of the said corporation  has  knowledge  or  notice,  shall  be
    10  liable  in  the  penal  sum  of [one hundred] not more than ten thousand
    11  dollars for each contract, to the cooperative corporation aggrieved in a
    12  civil suit for damages; and such cooperative corporation shall be  enti-
    13  tled  to  an  injunction  against  such  person,  firm or corporation to
    14  prevent further breaches.
    15    § 3.  This act shall take effect immediately.
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