N.Y. Agriculture & Markets Law § 258-l: Producers' bargaining agencies and distributors' bargaining agencies

§ 258-l. Producers' bargaining agencies and distributors' bargaining

agencies. (a) Incorporated producers' associations operated under and

subject to the cooperative corporations law of this state, or similar

laws of another state and organized and controlled by milk producers,

may establish producers' bargaining agencies for the various production

areas of the state designated by the commissioner. Cooperative

corporations similarly incorporated hereafter and owned and controlled

by producers shall be entitled to use and participate in such a

bargaining agency and be represented by it in order that producers not

now represented by a cooperative association may be entitled to the

benefits of this act.

Upon presentation of a written certification by a cooperative

corporation qualified to receive cooperative payments under a state or a

joint federal and state milk marketing order, or orders, or by a

cooperative corporation affiliated with a federation of cooperative

corporations similarly qualified, to a licensed milk dealer, setting

forth a list of its members for the payment of whose milk said dealer is

responsible, such dealer shall make payments to such cooperative

corporation from moneys due such listed members for milk purchased by

the dealer in such amounts as such cooperative shall certify is payable

to it; provided that (a) at least the names of 10 members are one the

list, or (b) in the case of dealers receiving milk from 17 or less

producers at a plant, the names of at least 51% of such producers are on

the list. Such amounts shall be payable monthly to the treasurer of the

cooperative corporation, together with a compilation of milk poundage to

which such payment is related. At intervals, not more frequent than

monthly, each such cooperative shall certify to the dealer involved any

additions or withdrawals from its listed membership. As to such changes

in memberships so certified, the dealer shall make payments on the

additional producers, but shall not be required to make payments to the

cooperative corporation on the withdrawn producers. In no event shall a

dealer be required to make payments on a producer who is not listed as a

member by the certifying cooperative corporation.

The voting power of each association participating in such an agency

shall be on the basis of one vote for each one hundred producers under

contract with such association for the marketing of their milk within

such marketing area, and in case of an association with less than one

hundred producers under contract with it, a fractional vote in

proportion to the number of such producers. Only active contracts shall

be considered.

The purpose of a producers' bargaining agency is to negotiate

agreements on the basis of orders in the respective marketing areas for

presentation to the commissioner for his consideration and approval, as

provided in section two hundred and fifty-eight-m herein. A producers'

bargaining agency shall be authorized to negotiate with a distributors'

bargaining agency in such marketing area in regard to arrangements or

agreements to be presented to the commissioner as a basis of marketing

agreements or orders pursuant to said section two hundred and

fifty-eight-m.

Each association upon joining or employing the producers' bargaining

agency shall file with it a certified copy of its certificate of

incorporation, its by-laws, copies of form of contracts with its

producers and a certified statement of the number of such contracts

which are in force.

A producers' bargaining agency may appear before and negotiate with

the commissioner in regard to marketing agreements or orders, as

provided in section two hundred and fifty-eight-m herein.

It shall be lawful for such producers' bargaining agency to act as a

common marketing agency for the various cooperative associations of

producers which it represents and such cooperative associations may make

contracts with each other and with such producers' agency for such

purpose and for the collective processing, preparing for market,

handling and marketing of the products of such associations and for

effectuating the purposes of this act. In order to carry out and

effectuate such purposes, contracts and agreements may be made pursuant

to section twenty-five of the co-operative corporations law and as to

interstate commerce pursuant to act of congress of February eighteenth,

nineteen hundred twenty-two, entitled "An act to authorize association

of producers of agricultural products,"

(b) A distributors' bargaining agency may be organized by the

distributors in a marketing area. The voting power of each distributor

in such bargaining agency shall be in proportion to the quantity of milk

distributed by him in such area. Such quantity shall be determined by

that distributed during the preceding year as reported to the

commissioner. In the New York metropolitan milk marketing area the

voting power of each distributor shall be on the basis of one vote for

each ten million pounds of milk distributed in such market during the

preceding year and in case of a distributor handling a less quantity of

milk, a proportionate fractional vote. In other marketing areas the

voting basis shall be one vote for each one hundred thousand pounds

distributed during the preceding year in such market with a

proportionate fractional vote in case of distributors handling a less

quantity of milk. The purpose of distributors' bargaining agencies is to

negotiate with producers' bargaining agencies as to the agreements or

the basis of orders in the respective marketing areas for presentation

to the commissioner for his consideration and approval, as provided in

section two hundred fifty-eight-m herein.

A distributors' bargaining agency may appear before and negotiate with

the commissioner in regard to marketing agreements or orders, as

provided in section two hundred fifty-eight-m herein.

Producers' bargaining agencies and distributors' bargaining agencies

may also meet and negotiate in order to carry out the purposes of this

act and subject to the approval of the commissioner, as provided in

section two hundred fifty-eight-m, may make marketing agreements with

each other and with cooperative associations in relation to the

marketing of milk which may be handled or distributed in more than one

marketing area. Such agencies may also meet and negotiate and take such

reasonable measures as are necessary and advisable to cooperate with the

commissioner and legally constituted authorities of other states and of

the United States with respect to the handling and control of milk

handled in interstate commerce and carry out and effectuate the

provisions of section two hundred fifty-eight-n.

Except as specifically provided in section two hundred fifty-eight-m,

the activities and operations of producers' bargaining agencies and

distributors' bargaining agencies and of the constituent members

thereof, and contracts, agreements or arrangements made by them,

pursuant to the provisions of this subdivision, and of section two

hundred fifty-eight-m hereof, shall not be deemed or construed to be

conspiracies, combinations, contracts or agreements in restraint of

trade or commerce or an illegal monopoly.

"Milk production area" as used in this article means those dairy farms

maintained primarily as a source of fluid milk for a marketing area.

Such primary source of supply shall include farms from which all

shipments of milk have been subject to the minimum uniform price

provisions of a marketing order or agreement for such market during at

least a portion of the preceding two years, together with such other

farms as may hereafter be designated by the commissioner as a source of

supply for the marketing area in the manner prescribed by section two

hundred fifty-eight-j.