Act No. 48

(S.89)

Agriculture; commerce; milk pricing

This act directs the Vermont milk commission to resume the deliberations on an over-order premium for milk producers that was suspended in the winter of 2008; amends the commission's enabling language by requiring the commission to meet only annually, when directed by the general assembly, and when called together by the chair; provides authority for the commission to impose administrative assessments; and modifies the commission's rules so that if an assessment is adopted pursuant to the act, producers will vote directly on the proposed assessment rather than through milk cooperative block voting.

Sec. 5 of the act requires two studies. First, the attorney general is directed to investigate possible anti-competitive practices in the Northeast milk market. Second, the commission is directed to consider why milk cooperatives have not been able to utilize the authority granted under the Capper-Volstead Act of 1922 to stabilize and better control farm-gate dairy prices. The commission is further directed to study the continued effectiveness of the Capper-Volstead Act. Both the commission and the attorney general must report to the senate and house committees on agriculture by January 15, 2010.

Sec. 6 of this act amends language relating to sureties for dairy producers. The amendments require that all purchasers of fluid milk from producers or from producer's cooperatives furnish surety, in the form of a bond or letter of credit, for the amount of milk purchased. Bonds for the purchase of cow's milk must equal 100 percent of the highest 41-day total from the previous 12-month period. Bonds for other milk must be only 50 percent. Purchases between cooperatives are exempt from the surety requirements as are purchases by handlers purchasing fewer than 150,000 pounds per month from cooperatives and purchases by handlers paying in advance or at the time of the exchange.

Secs. 7, 8, and 9 prohibit certain municipal regulation of working farm dogs which are dogs bred or trained to herd or protect livestock or poultry or to protect crops and that are used for those purposes. Working farm dogs are exempt from municipal regulations relating to barking and running at large so long as the dog is registered as a working farm dog and is barking or running at large for the purpose of protecting livestock, poultry, or crops.

Sec. 10 creates a new grade of milk known as "manufacturing grade goat milk," which is milk sold for processing and not for fluid consumption. The maximum somatic cell count (SCC) for manufacturing grade goat milk is 1,500,000 per milliliter, which is lower than the standard for Grade A goat milk. This section will sunset if the U.S. Food and Drug Administration approves a Grade A maximum SCC of 1,500,000 per milliliter or lower.

Date Signed by the Governor: May 28, 2009

Effective Date: On passage (May 28, 2009, the date on which the governor signed the bill)