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State of Arkansas

87th General Assembly A Bill

Regular Session, 2009 HOUSE BILL 1451


By: Representatives Hoyt, T. Baker, Breedlove, J. Brown, Cole, L. Cowling,

Dismang, George, Hall, Harrelson, Hawkins, House, Lovell, McCrary, Overbey, Perry, Pierce, Powers, Reynolds, Saunders, Slinkard, Stewart, Summers, Tyler, Wagner, Webb, Wells, B. WilkinsBy: Senators Bryles, J. Jeffress, G. Jeffress, J. Taylor, D. Wyatt


For An Act To Be Entitled

AN ACT TO ENSURE AN ADEQUATE SUPPLY OF ARKANSAS MILK FOR ARKANSAS CONSUMERS; TO STABILIZE AND STIMULATE DAIRY FARMS IN ARKANSAS; TO CREATE THE DAIRY STABILIZATION FUND; AND FOR OTHER PURPOSES.


Subtitle

AN ACT TO ENSURE AN ADEQUATE SUPPLY OF

ARKANSAS MILK FOR ARKANSAS CONSUMERS; TO

STABILIZE AND STIMULATE DAIRY FARMS IN

ARKANSAS; AND TO CREATE THE DAIRY

STABILIZATION FUND.




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:


SECTION 1. Arkansas Code Title 2, Chapter 10, is amended to add an additional subchapter to read as follows:

2-10-201. Definitions.

As used in this subchapter:

(1) "Milk producer” means any person or entity that operates a bovine dairy farm that possesses a valid permit signed by the administrator of the Arkansas Grade “A” Milk Program; and

(2) “Wholesaler” means a person or entity that is engaged as a distributor or manufacturer who receives, stores, manufactures, or sells milk or other dairy products to retail sellers in Arkansas.



2-10-202. Dairy stabilization fee.

(a) A wholesaler shall pay a dairy stabilization fee of not more than thirty cents (30¢) per hundred weight on packaged milk and an equivalent amount as determined by the Secretary of the Arkansas Agriculture Department on other dairy products sold in Arkansas.

(b)(1) The dairy stabilization fee shall be assessed and collected by the Director of the Department of Finance and Administration.

(2) The director shall deposit the dairy stabilization fee into the Dairy Stabilization Fund established in § 19-6-811.

(c) A wholesaler that is subject to the dairy stabilization fee under this section shall file a monthly return and remit the fee for the month to the Director of the Department of Finance and Administration on or before the 15th day of the month next following the month in which the sale was made.

(d) The secretary shall provide quarterly reports to the Arkansas Milk Stabilization Board regarding the assessment, collection, and disbursement of moneys collected under this section.


2-10-203. Dairy stabilization payments.

(a)(1)(A) The Secretary of the Arkansas Agriculture Department shall calculate monthly the difference between the average monthly blend price of milk received by Arkansas milk producers as estimated by the secretary and seventy percent (70%) of the average monthly cost of producing milk in Missouri and Tennessee as estimated by the United States Department of Agriculture.

(B) If the average monthly blend price of milk received by Arkansas milk producers is lower than the calculated average cost of producing milk in Missouri and Tennessee, the secretary shall pay the milk producer the difference.

(2) The secretary shall not pay a milk producer more than five dollars ($5.00) per hundred weight of milk per month under subdivision (a)(1) of this section.


(b) Payments received by a milk producer under this section shall not exceed an annual average of two dollars ($2.00) per hundred weight of milk.

(c)(1) The secretary shall not make payments under this subchapter unless the Dairy Stabilization Fund established in § 19-6-811 contains enough moneys to provide payments.

(2) The secretary shall make the determination of the fund balance required under subdivision (c)(1) of this section in cooperation with the Director of the Department of Finance and Administration.


2-10-204. Milk production and quality incentives.

(a) If funds are available, as an incentive to continue milk production and to improve milk quality, the Secretary of the Arkansas Agriculture Department may pay a milk producer the following incentive payments from the Dairy Stabilization Fund:

(1)(A) Fifty cents (50¢) per hundred weight of milk for each hundred weight of milk produced above the milk producer's average annual milk production.

(B) A milk producer's average annual milk production specified under subdivision (a)(1)(A) of this section shall be calculated over the two (2) years preceding the year of disbursement; and

(2) Fifty cents (50¢) per hundred weight of milk if the milk contains less than a four-hundred-thousand somatic cell count.

(b) Milk producers that begin milk production after the effective date of this subchapter qualify for payments under subsection (a) of this section after the completion of one (1) continuous year of milk production in Arkansas.

(c) Annual payments to a milk producer under this section shall not exceed fifty thousand dollars ($50,000).


2-10-205. Rules.

The Secretary of the Arkansas Agriculture Department shall adopt rules to implement this subchapter.

SECTION 2. Arkansas Code Title 19, Chapter 6, Subchapter 8 is amended to add an additional section to read as follows:


19-6-811. Dairy Stabilization Fund.

(a) There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Dairy Stabilization Fund”.

(b)(1) All moneys collected under § 2-10-202 shall be deposited into the State Treasury to the credit of the fund as special revenues.

(2) The fund also shall consist of any other revenues as may be authorized by law.

(c) The Secretary of the Arkansas Agriculture Department shall use the fund to provide:

(1) Dairy stabilization payments under § 2-10-203; and

(2) Milk production and quality incentives under § 2-10-204.