N.Y. Agriculture & Markets Law § 256-b: Accounting of milk dealers and cooperatives to producers

§ 256-b. Accounting of milk dealers and cooperatives to producers. 1.

For purposes of this section, any corporation or association of persons

engaged in the production of agricultural 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

associations, shall be deemed to be a cooperative.

2. Every milk dealer and cooperative, subject to license or regulation

under this article, in making payments to producers for milk sold or

delivered to such dealer or cooperative, shall clearly set forth the

unit price for such milk, whether determined pursuant to federal or

state market order or pursuant to agreement, together with the amount of

all premiums, subsidies or differentials, all deductions, service fees,

hauling charges, supply expenses, costs or adjustments of any nature

whatsoever, in such a manner as to fully disclose to the producer the

rate, basis and manner of computing such payment.

3. Each cooperative subject to license or regulation pursuant to this

article shall, prior to its annual meeting, mail or personally deliver a

copy of a written report of audit, prepared in the form and manner

prescribed under section seventy-five of the cooperative corporations

law, to each member of the cooperative and to individual producer

members of any constituent cooperatives. The printing of such report in

a publication regularly distributed to the cooperative's entire

membership shall satisfy the delivery requirement.

4. Each milk producer who applies for membership in such a cooperative

shall, prior to issuance of a membership certificate or entry into a

milk marketing agreement with the cooperative, be provided with the

following documents of such cooperative and of any federation of

cooperatives of which it is a member: (a) a copy of the cooperative's

written report of audit required to be provided to the cooperative's

membership, pursuant to subdivision three of this section, for the

fiscal year preceding the date of such application; (b) a copy of the

certificate of incorporation; (c) a copy of the bylaws in effect at the

time of such producer's application for membership; and (d) a written

statement of the current equity requirements and policy on the

allocation of net margins and losses.

5. The commissioner may make or permit disclosure of a written report

of audit made pursuant to subdivision three of this section for any

cooperative subject to license or regulation pursuant to this article.

6. The commissioner may promulgate rules and regulations necessary to

assure such uniform requirements as will carry out the provisions of

this section.