1.1                          A bill for an act
  1.2             relating to agriculture; establishing and activating a 
  1.3             mechanism for over-order milk prices; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 32. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [32.76] [MILK OVER-ORDER PREMIUM; PURPOSE; 
  1.7   IMPLEMENTATION; ASSESSMENT FORMULA; EXEMPTIONS; DISCLOSURE; 
  1.8   REPORT.] 
  1.9      Subdivision 1.  [PURPOSE.] The legislature hereby 
  1.10  establishes an over-order premium for milk to benefit the 
  1.11  incomes of all Minnesota dairy producers and stabilize the 
  1.12  economy in rural communities. 
  1.13     Subd. 2.  [IMPLEMENTATION.] If the price for class I milk, 
  1.14  as announced for each month by the federal Milk Marketing Order 
  1.15  that includes Minnesota, falls below $13.20 per hundred pounds, 
  1.16  the provisions of this section are effective and the 
  1.17  commissioner shall implement the over-order premium program. 
  1.18     Subd. 3.  [ASSESSMENT FORMULA.] For each cent the announced 
  1.19  price per hundred pounds of milk falls below $13.20, the 
  1.20  commissioner shall collect from the wholesaler that makes the 
  1.21  first wholesale sale of selected class I dairy products for 
  1.22  retail sale in Minnesota an assessment of $0.0225.  The 
  1.23  commissioner shall deposit the assessments in the Minnesota milk 
  1.24  over-order premium account which account is hereby created. 
  1.25     Subd. 4.  [EXEMPTIONS.] Selected class I dairy products 
  2.1   sold as home delivery retail sales, sales involving the women, 
  2.2   infants, and children nutrition program (WIC), and sales to 
  2.3   public or nonpublic schools are exempt from assessment under 
  2.4   this section. 
  2.5      Subd. 5.  [EQUALIZATION POOL.] Money in the Minnesota milk 
  2.6   over-order premium account is appropriated to the commissioner 
  2.7   to pool and redistribute payments at a uniform rate to Minnesota 
  2.8   Grade A and B milk producers.  The commissioner may make 
  2.9   payments to a responsible person who, in turn, must pay Grade A 
  2.10  and B milk producers at the uniform distribution rate. 
  2.11     Subd. 6.  [DISCLOSURE.] Payments of the over-order premium 
  2.12  to a producer must be accompanied by a statement specifying the 
  2.13  over-order premium rate, the dates of delivery to which the 
  2.14  premium applies, the total hundredweight of milk to which the 
  2.15  over-order premium applies, and the over-order premium amount 
  2.16  paid to the producer. 
  2.17     Sec. 2.  [EFFECTIVE DATE.] 
  2.18     Section 1 is effective 90 days after the effective date of 
  2.19  legislation by the United States Congress authorizing the state 
  2.20  of Minnesota to initiate and enforce an over-order premium 
  2.21  program substantially similar to the one described in section 1.