HB 830-FN-A – AS INTRODUCED
2007 SESSION
08/04
HOUSE BILL 830-FN-A
AN ACT relative to milk support prices in New Hampshire.
SPONSORS: Rep. M. Rollo, Straf 2; Rep. Phinizy, Sull 5; Rep. Owen, Merr 4; Rep. Skinder, Sull 1; Rep. D. Rollo, Straf 2
COMMITTEE: Environment and Agriculture
This bill establishes an emergency milk relief fund in the department of agriculture, markets, and food. This bill also establishes a tax on milk sold by dairy processors in New Hampshire.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0120
08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to milk support prices in New Hampshire.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Emergency Milk Relief Fund. Amend RSA 184 by inserting after section 105 the following new subdivision:
184:106 Definitions. The terms “commissioner,” “department,” “milk plant,” “milk producer,” and “milk” shall be as defined in RSA 184:79.
184:107 Fund Established; Collection.
I. There is established an emergency milk relief fund in the office of the state treasurer. This fund shall be used and administrated by the department of agriculture, markets, and foods to reimburse producers of raw milk when the price of milk falls below $0.12 per pound. Such fund shall be nonlapsing and continually appropriated to the department. Moneys collected for the fund shall be deposited with the state treasurer to the credit of said fund and may be invested as provided by law. Interest received on such investment shall also be credited to the fund.
II. Any milk plant which distributes milk in this state shall first be licensed with the department of agriculture, markets and food. A fee of $0.025 per gallon of milk shall be assessed at the time of distribution in this state. All fees shall be deposited in the emergency milk relief fund established in paragraph I. When the commissioner of agriculture, markets, and food certifies to the state treasurer that the balance of the fund exceeds $3,000,000, the imposition of the fee shall be suspended and shall be reestablished when the balance of the fund is less than $1,000,000.
III. The fee provided for in this section shall be collected by the department of agriculture, markets and food, as provided for in RSA 184:110. Such funds shall be deposited in the emergency milk relief fund established under paragraph I.
IV. No milk plant licensed under this section shall distribute milk in this state without paying the fee required by this section.
V. The fee collected on raw milk shall be deposited in the emergency milk relief fund.
184:108 Emergency Milk Relief Fund Board Established; Membership.
I. There is established the emergency milk relief fund board, to be composed of the following members:
(a) Two members of the house of representatives, appointed by the speaker of the house of representatives.
(b) Two members of the senate, appointed by the president of the senate.
(c) The commissioner of the department of agriculture, markets and food, or designee.
(d) The commissioner of the department of health and human services, or designee.
(e) Four members representing milk producers and distributors, appointed by the governor.
(f) Two public members with no financial interest in the dairy industry, appointed by governor.
II. The board shall select a chairperson from among its members at its initial meeting which shall occur no more than 3 months after the effective date of this section.
III. The board members shall serve without compensation, except that legislative members shall be reimbursed for mileage at the legislative rate while attending to the duties of the board.
IV. Any member of the board having an individual interest, or an interest in another business, which may conflict with an issue under consideration by the board, shall not participate in any deliberations or vote of the board on the issue before the board.
V. The terms of the board members shall expire on January 1, 2010. Subsequent terms for state agency and legislative members shall be the same as their terms in office. New board members appointed under subparagraphs I(e) and I(f) shall have 3-year terms. Upon term expiration, each appointed member shall hold office until a successor is appointed and qualified. Board members may be reappointed to subsequent terms, including those members whose terms expire as of January 1, 2010.
184:109 Board Powers and Duties
I. The board shall adopt rules, pursuant to RSA 541-A, relative to:
(a) Processing applications for compensation from the emergency milk relief fund.
(b) Procedures for verifying claims presented under this chapter.
(c) Specifying costs in relation to reimbursements claimed.
(d) Developing eligibility criteria in addition to the requirements of RSA 184:110.
(e) Waiver of penalties due or past due under RSA 184:111.
(f) Establishing the rate at which penalties under RSA 184:111 shall bear interest.
II. The board shall submit an annual report of the status of the emergency milk relief fund no later than October 1, to the speaker of the house of representatives and the president of the senate. The first such report shall be submitted no later than October 1, 2008.
III. The board, with approval of the governor and council, may employ legal counsel as necessary to perform its duties in administering the emergency milk relief fund.
IV. The board may request that the attorney general issue subpoenas, examine witnesses, or request any other information on behalf of the board for the purposes of determining eligibility for reimbursement under this subdivision.
184:110 Eligible Emergency Milk Relief Fund Recipients.
I. When the price of milk falls below $0.12 per pound according to the Suffolk County milk price, as determined each month by the Northeast Market Administrator of the United States Department of Agriculture, funds from the emergency milk relief fund shall be available to milk plants distributing a minimum of 16,500 herd weight of milk in the previous 3 months. Ownership of facilities which have been closed on or after July 1, 2007 may be transferred to a new owner and the new owner shall be eligible to apply to the fund subject to the same criteria established in this section and by the milk relief fund board pursuant to 184:109.
184:111 Determination and Payment of Dairy Processor Fee.
I. Each milk producer shall on or before the twentieth day of each calendar month submit compensation claims to the department on forms prescribed and furnished by the commissioner. The return shall show the total number of gallons sold in the state during the previous calendar month and include such other information as the commissioner may require for the reasonable administration of this subdivision.
II. Failure to file by the required date or to enclose fees due shall result in the assessment of a 10 percent penalty to be added to the amount of fees due for that month. If no fees are due, a penalty of $1 per day shall be assessed. Said penalty shall immediately accrue and thereafter the overdue fees and the penalty shall bear interest at the rate established by the emergency milk relief fund board.
III. Any person who violates any provision of this subdivision shall be guilty of a misdemeanor if a natural person or guilty of a felony if any other person.
2 Minimum Prices. Amend RSA 434:56 to read as follows:
434:56 Establishment of Minimum Producer Dairy Prices. The commissioner, after consulting with the agricultural advisory board, may establish by order an equitable minimum price to be paid to dairy producers for raw milk produced in New Hampshire on the basis of the use thereof in the various classes, grades and forms. The commissioner, after consulting with the agricultural advisory board, may from time to time make, amend or rescind an order if the commissioner finds that the federal milk marketing order covering New Hampshire is adequate or inadequate as the case may be to ensure a stable raw milk production and distribution system in the state. [In no case shall the commissioner establish by order a price greater than the average price established for comparable classes, grades and forms of raw milk in the contiguous states.]
3 New Subparagraph; Emergency Milk Relief Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (252) the following new subparagraph:
(253) Money received under RSA 186:107, which shall be credited to the emergency milk relief fund.
4 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-0120
01/24/07
HB 830-FN-A - FISCAL NOTE
AN ACT relative to milk support prices in New Hampshire.
FISCAL IMPACT:
The Department of Agriculture, Markets and Food states this bill will increase state revenue by $650,000 and state expenditures by $691,698 in FY 2008 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department states this bill will establish the Emergency Milk Relief Fund to reimburse producers of raw milk when the prices fall below $0.12 per pound and establishes the Emergency Milk Relief Fund Board. This fund shall be nonlapsing and continually appropriated to the Department. A fee of $0.025 per gallon of milk shall be assessed at the time of distribution with the fees deposited into the Emergency Milk Relief Fund. If the balance in the fund exceeds $3 million, the fee shall be suspended and reestablished when the fund balance is less than $1 million. The Department states the estimated per capita fluid milk consumption at 20 gallons a year and the estimated state population at 1.3 million, resulting in an increase in state revenue of $650,000 (20 gallons/year * 1.3 million * $0.025 per gallon fee). The state expenditure will increase up to $650,000 in FY 2008 and each year thereafter, depending on how much of the fund is redistributed.
The Department also assumes it will be responsible for administrative costs associated with the Emergency Milk Relief Fund Board. The Department assumes only 6 of the 12 board members will seek mileage reimbursement. Board costs are estimated to increase state expenditures by $41,698 in FY 2008 and each year thereafter.
Board Costs FY 2008 and each year thereafter | |
Board Member Travel (6 members *100 miles * 8 meetings* $0.485 per mile) |
$2,328 |
Printing of Forms |
1,000 |
Telephone ($100 month *12 months) |
1,200 |
Postage (250 pieces/month * $0.39) |
1,170 |
Legal Counsel (20 hours *$150 hour *12 months) |
36,000 |
Total |
$41,698 |