Bill Details - HB476 (2019)

HB 476-FN - AS AMENDED BY THE SENATE

 

28Feb2019... 0443h

05/15/2019   1886s

05/15/2019   1949s

 

2019 SESSION

19-0086

08/10

 

HOUSE BILL 476-FN

 

AN ACT replacing the milk producers emergency relief fund with the dairy premium fund.

 

SPONSORS: Rep. O'Connor, Rock. 6; Rep. Pearl, Merr. 26; Sen. Kahn, Dist 10

 

COMMITTEE: Environment and Agriculture

 

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ANALYSIS

 

This bill:

 

I.  Replaces the milk producers emergency relief fund with the dairy premium fund.

 

II.  Provides money to milk producers who ship milk in the state of New Hampshire regardless of the destination of such milk.

 

III.  Establishes the diary premium fund board.

 

IV.  Authorizes the commissioner of the department of agriculture, markets, and food to expend up to $200,000 from the agricultural product and scale testing fund for promotion of the dairy premium program.

 

This bill is a request of the department of agriculture, markets, and food.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

28Feb2019... 0443h

05/15/2019   1886s

05/15/2019   1949s 19-0086

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT replacing the milk producers emergency relief fund with the dairy premium fund.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Dairy Premium Fund; Program Established.  RSA 184:106 through RSA 184:111 and the subdivision heading preceding RSA 184:106 are repealed and reenacted to read as follows:

Dairy Premium Fund

184:106  Definitions.  In this subdivision:

I.  "Commissioner" means the commissioner of the department of agriculture, markets, and foods.

II.  "Department" means the department of agriculture, markets, and foods.

III.  "Federal promotion deduction" means the administrative assessment and marketing service deduction assessed in accordance with 7 C.F.R. part 1000, subpart I.

IV.  "Milk producer" means any person who owns or controls one or more hooved mammals, a part or all of the milk or milk products from which are sold, or offered for sale.

V.  "Milk processor" means any person who processes and markets commercially fluid milk products in consumer-type packages in the United States.

VI.  "Private label" means a product that is processed by a contract or third-party processor and sold under a retailer's brand name.

VII.  "Producer baseline production" means the average production of a milk producer over the previous 12 months.

VIII. "State baseline production" means the total of all producer baseline production.

184:107  Program.

I.  The dairy premium program is established to provide payments to milk producers who ship milk in the state of New Hampshire regardless of the destination of such milk.

II.  Participation by milk processors in the dairy premium program is voluntary.

III.  All milk products sold as dairy premium program milk shall display the program logo adopted pursuant to rules adopted under RSA 184:108.

IV.  To participate in the program, milk processors shall label a portion of the milk produced for sale at retail establishments as dairy premium program milk with a label developed in accordance with rules adopted by the commissioner.

V.  Milk products labeled as "dairy premium program milk products" shall not be labeled with a price that exceeds the price of the same milk product which is not part of the dairy premium program by more than the premium established by the commissioner with a 2/3 majority vote of the dairy premium fund board.

VI.  Milk processors shall collect the premium from the net sales of dairy premium program milk and remit it to the department of agriculture, markets and food on the 15th of each month for deposit into the dairy premium fund established in RSA 184:109.

VII.  Within 30 days of the effective date of this section, all dairy cooperatives and/or bulk haul purchasers of milk in the state shall submit a list of eligible milk producers to the department and the records of their previous 12 months of production.  The commissioner, in consultation with the New Hampshire milk products board, shall calculate a producer baseline for each milk producer by calculating the average milk production over the previous 12 months.  If a milk producer did not produce milk in all 12 months prior to the effective date of this section, the baseline shall be the average milk production of the number of months the milk producer was in production.  A milk producer shall be eligible to receive a dairy premium under paragraph VIII if he or she directs $0.10 from his or her federal promotion deduction to Granite State Dairy Promotion.

VIII.  The commissioner shall calculate the premium to be paid to eligible milk producers.  The producers share shall be 86 percent of the dairy premium fund.  The department shall use the remainder of the moneys in the dairy premium fund to promote the dairy premium program.  The premium rate shall be the producers' share divided by the state baseline production.  Each producer shall be paid their producer baseline production multiplied by the premium rate.

IX.  The baseline production shall also be adjusted when a milk producer leaves the market or 6 months after a milk producer enters the market, but not more than 2 times in a 12-month period.

X.  Any milk processor or private label may participate in the program as long as it certifies to the commissioner that either:

(a)  The final product contains no less than 85 percent New Hampshire produced milk or a higher percentage of New Hampshire produced milk as set in rule by the dairy premium fund board, in which case the product shall qualify for labeling as "New Hampshire's Own;" or

(b)  The final product contains 100 percent New England produced milk, in which case it shall qualify for labeling as "Supporting NH Dairy Farms."

XI.  Milk producers in New Hampshire who process milk products on site for direct sales to consumers may participate in the program.  However, all milk products produced by such a milk producer shall be sold as dairy premium program milk.  A milk producer who is also a milk processor who does not participate in the program shall have his or her base calculated only on the milk shipped through a commercial hauler.

XII.  A manufacturer of dairy products other than fluid milk may also use the dairy premium program logo if such manufacturer remits a portion of sales of such products to the dairy premium fund based on a formula agreed to by the commissioner and approved by the dairy premium board.  Each product a manufacturer produces shall be certified as participating under subparagraph X(a) or (b).

184:108  Authority; Rulemaking.

I.  The commissioner shall adopt rules, pursuant to RSA 541-A, relative to:

(a)  Verification of the volume of milk produced and net sales of premium milk through audits.

(b)  A process to fund the cost of further segregation of New Hampshire milk from the dairy premium fund, if necessary.

(c)  The development of logos for use on premium milk products and rules for their use.

(d)  The process of certification for the use of the logos by milk manufacturers of dairy products and collection of money from use of the dairy premium fund logos.

(e)  The content and design of all forms and reports required by this subdivision.

(f)  The percentage of New Hampshire produced milk a final product shall contain in order to qualify for labeling as "New Hampshire's Own."

II.  The commissioner may:

(a)  Accept private donations for the dairy premium fund to promote the dairy premium program.

(b)  Include the names of retail brands of companies participating in the dairy premium program as well as the names of the retail locations where such premium milk products are sold in advertising for the program.

184:109  Dairy Premium Fund.  There is established a dairy premium fund which shall be administered by the commissioner.  The commissioner shall deposit into the fund any appropriations from the program made to the department from the general fund to be used consistent with the definitions and provisions of this subdivision, to distribute a quarterly premium payment to New Hampshire milk producers who ship milk in the state of New Hampshire.  The fund shall be nonlapsing and shall be continually appropriated to the department.  The commissioner is authorized to accept public sector and private sector grants, gifts, or donations of any kind for the purpose of funding the provisions of this subdivision.  The commissioner may employ legal counsel as deemed necessary.

184:110  Dairy Premium Fund Board Established; Membership.

I.  The dairy premium fund board is established and shall be comprised of the following members:

(a)  The commissioner of the department of agriculture, markets, and food.

(b)  The executive director of Granite State Dairy Promotion.

(c)  Two members from dairy cooperatives, appointed by the governor.

(d)  One member from the milk processing industry, appointed by the governor.

(e)  One member who shall be from a retail store that sells dairy premium milk, appointed by the governor.

(f)  Two members who are milk producers receiving a quarterly premium payment, appointed by the governor.

(g)  One member of the general public, appointed by the governor.

II.  The commissioner shall be the chair of the board and the executive director of Granite State Dairy Promotion the vice chair.

III.  The board shall meet at the call of the chair or at the request of no fewer than 5 members.

IV.  The board shall advise the commissioner regarding any changes to policies or rules regarding the dairy premium program prior to their adoption.

V.  Appointed members of the board shall serve 3-year staggered terms.  Initial appointments made by the governor shall be staggered for terms of one, 2, or 3 years.  A board member whose term of office is expiring may continue beyond the end of the term until reappointed or until a successor is nominated.  Vacancies shall be filled for the unexpired term.

184:111  Mislabeling of Milk; Prohibition and Penalties.

I.  The labeling of milk that does not meet the requirements of RSA 184:79, XXII through XXII-c as "fresh," "New Hampshire fresh," or "northeastern fresh" is prohibited.

II.  The knowingly and falsely labeling of milk as participating in the dairy premium program is prohibited.

III.  Any person who knowingly violates any provision of this section shall be subject to an administrative fine levied by the commissioner not to exceed $1,000 for each violation.

2  Fund Name Change.  Amend RSA 6:12, I(b)(268) to read as follows:

(268)  Moneys deposited in the [milk producers emergency relief] dairy premium fund established under [RSA 184:107] RSA 184:109.

3  Cross Reference; Fund Name Changed.  Amend RSA 425:2-a, II(i) to read as follows:

(i)  The New Hampshire dairy industry is vital to the state's economy.  It impacts state and local economies via millions of dollars in total economic output, thousands of jobs and millions more dollars in labor income.  The dairy industry should be further supported through the [milk producers emergency relief] dairy premium fund as specified in [RSA 184:107] RSA 184:109, and other methods that will encourage the success of the state's dairy industry.

4  Commissioner of Agriculture; Authorization.  The commissioner of the department of agriculture, markets, and food is authorized to expend up to $200,000 from the agricultural product and scale testing fund established in RSA 435:20 for promotion of the dairy premium program.  Such money shall be spent by December 31, 2019.  Any unspent money shall lapse back to the agricultural product and scale testing fund.  

5  Milk Producer Dairy Prices; Milk Producers Emergency Relief Fund Board; Cross References Removed.  Amend RSA 434:56 to read as follows:

434:56  Establishment of Minimum Producer Dairy Prices. [Notwithstanding the provisions of RSA 184:106-110,] The commissioner[, after consulting with the milk producers emergency relief fund board,] may establish by order an equitable minimum price to be paid to milk 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 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.

6  Contingent Nullification of Repeal; HB 458.  If HB 458 of the 2019 regular legislative session becomes law, then section 1, paragraph XV and section 11 of HB 458 of the 2019 regular legislative session, relative to the milk producers emergency relief fund and board, are hereby nullified and shall not take effect.

7  Effective Date.  This act shall take effect upon its passage.

 

LBAO

19-0086

Amended 3/8/19

 

HB 476-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2019-0443h)

 

AN ACT replacing the milk producers emergency relief fund with the dairy premium fund.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Agricultural product and scale testing and dairy premium funds

 

 

 

 

 

METHODOLOGY:

This bill replaces the milk producers emergency relief fund with the dairy premium fund,  provides assistance to milk producers who ship milk in New Hampshire, establishes the dairy premium fund board, and authorizes the Commissioner of the Department of Agriculture, Markets, and Foods to spend up to $200,000 from the agricultural product and scale testing fund for promotion of the program.

 

The Department of Agriculture, Markets and Food indicates this bill would increase State expenditures and revenue by an indeterminable amount in FY 2020 and in each year thereafter.  The Department does not have information to estimate how much revenue would be collected from the sale of dairy premium milk or how much would be paid to eligible milk producers.  Money remaining in the fund after payment of the premiums would be available to promote the program.  The Commissioner is authorized to spend up to $200,000 from the agricultural product and scale testing fund to promote the program until December 31, 2019 after which any remaining funds would lapse back to the agricultural product and scale testing fund.  The Department states it would not need additional staff to administer the program and there would be no impact on county and local revenues or expenditures.

 

AGENCIES CONTACTED:

Department of Agriculture, Markets, and Food

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Environment and Agriculture HJ 3 P. 15
Jan. 29, 2019 Public Hearing: 01/29/2019 02:30 pm LOB 303
Feb. 7, 2019 Full Committee Work Session: 02/07/2019 11:45 am LOB 301-303
Feb. 12, 2019 Executive Session: 02/12/2019 01:00 pm LOB 303
Committee Report: Ought to Pass with Amendment # 2019-0443h (Vote 20-0; RC)
Feb. 27, 2019 Committee Report: Ought to Pass with Amendment # 2019-0443h for 02/27/2019 (Vote 20-0; RC) HC 13 P. 29
Feb. 28, 2019 Amendment # 2019-0443h: AA VV 02/28/2019 HJ 7 P. 59
Feb. 28, 2019 Ought to Pass with Amendment 2019-0443h: MA VV 02/28/2019 HJ 7 P. 59
March 14, 2019 Introduced 03/14/2019 and Referred to Energy and Natural Resources; SJ 9
March 26, 2019 Hearing: 03/26/2019, Room 103, SH, 10:15 am; SC 15
May 15, 2019 Committee Report: Ought to Pass with Amendment # 2019-1886s, 05/15/2019; SC 22
May 15, 2019 Committee Amendment # 2019-1886s, AA, VV; 05/15/2019; SJ 16
May 15, 2019 Sen. Fuller Clark Floor Amendment # 2019-1949s, AA, VV; 05/15/2019; SJ 16
May 15, 2019 Ought to Pass with Amendments 2019-1886s and 2019-1949s, MA, VV; OT3rdg; 05/15/2019; SJ 16
May 23, 2019 House Concurs with Senate Amendment 1886s and 1949s (Rep. Gourgue): MA VV 05/23/2019

Action Dates

Date Body Type
Jan. 29, 2019 House Hearing
Feb. 12, 2019 House Exec Session
House Floor Vote
Feb. 27, 2019 House Floor Vote
March 26, 2019 Senate Hearing
May 15, 2019 Senate Floor Vote

Bill Text Revisions

HB476 Revision: 4678 Date: Jan. 10, 2019, 3:39 p.m.
HB476 Revision: 5442 Date: March 11, 2019, 10:11 a.m.
HB476 Revision: 6021 Date: May 16, 2019, 11:32 a.m.