2018 Regular Session ENROLLED SENATE BILL NO. 560(Substitute of Senate Bill No. 434 by Senator Mizell) BY SENATOR MIZELL 1 AN ACT 2 To enact Part IV of Chapter 2 of Title 24 of the Louisiana Revised Statutes of 1950, to be 3 comprised of R.S. 24:121, relative to the dairy industry; to create the Dairy 4 Stabilization Study Commission; to provide for the membership of the commission; 5 to provide for the duties of the commission; to provide relative to meetings and per 6 diem; to authorize public hearings; to provide relative to public entity records, data, 7 and information; to require a committee report; to provide for termination of the 8 commission; and to provide for related matters. 9 Be it enacted by the Legislature of Louisiana: 10 Section 1. Part IV of Chapter 2 of Title 24 of the Louisiana Revised Statutes of 1950, 11 comprised of R.S. 24:121, is hereby enacted to read as follows: 12 PART IV. DAIRY STABILIZATION STUDY COMMISSION 13 ยง121. Dairy Stabilization Study Commission; creation; purpose; membership; 14 duties; reporting; termination 15 A.(1) The legislature finds that the decline of the dairy industry in 16 Louisiana has reached a tragic level, which is a matter of great importance to 17 the state's health and welfare. 18 (2) The legislature further finds that the dairy industry is an essential 19 agricultural activity in Louisiana and dairy farmers, processors, distributors, 20 retailers, and consumers are an integral component of the state's economy. 21 (3) The legislature further finds that consumers should be protected 22 against inadequate supplies of milk and dairy products and against excessive 23 prices for milk and dairy products. 24 (4) The legislature further finds that it is in the best interest of the state's 25 dairy industry and the dairy consumers in the state to create a commission to 26 study and review the Dairy Stabilization Law as provided in R.S. 3:4101 et seq. ACT No. 611 Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 560 ENROLLED 1 B. There is hereby created the Dairy Stabilization Study Commission, 2 referred to in this Part as the "commission", for the purposes of studying and 3 reviewing milk pricing in Louisiana, recommending best practices and 4 strategies to best assist the dairy industry, and recommending any necessary 5 statutory and regulatory changes to the legislature and the Department of 6 Agriculture and Forestry related to the study. 7 C. The membership of the commission shall be comprised of twenty-one 8 members as follows: 9 (1) The commissioner of agriculture or his designee. 10 (2) Three dairy farmers appointed by the Louisiana Farm Bureau 11 Federation, Inc. 12 (3) A dairy processor appointed by the Louisiana Dairy Products 13 Association. 14 (4) A dairy distributor appointed by the Louisiana Retailers Association. 15 (5) The president of the Senate or his designee. 16 (6) The speaker of the House of Representatives or his designee. 17 (7) The chairman of the House Committee on Agriculture, Forestry, 18 Aquaculture and Rural Development or his designee. 19 (8) The chairman of the Senate Committee on Agriculture, Forestry, 20 Aquaculture and Rural Development or his designee. 21 (9) Two economists from a public postsecondary four-year institution 22 appointed by the commissioner of higher education. 23 (10) An agriculture economist appointed by the chancellor of the 24 Louisiana State University Agricultural Center. 25 (11) An agriculture economist appointed by the chancellor of the 26 Southern University Agricultural Research and Extension Center. 27 (12) A consumer advocate appointed by the president of the Senate. 28 (13) A consumer advocate appointed by the speaker of the House of 29 Representatives. 30 (14) One member appointed by the Public Affairs Research Council of Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 560 ENROLLED 1 Louisiana. 2 (15) One member appointed by the Louisiana Association of Business 3 and Industry. 4 (16) One member appointed by the Louisiana chapter of the National 5 Federation of Independent Business. 6 (17) An independent dairy processor appointed by the commissioner of 7 agriculture. 8 (18) The United States Department of Agriculture Milk Market 9 Administrator representing the Southeast Marketing Area Federal Order No. 10 7 or his designee. 11 D. Legislative members of the commission shall receive the same per 12 diem and travel allowance for attending meetings of the commission as is 13 normally provided for meetings of legislative committees. Other members of the 14 commission shall serve without compensation. 15 E. The legislature shall provide the facilities needed by the commission 16 to accomplish its tasks and shall designate staff from the Senate Committee on 17 Agriculture, Forestry, Aquaculture and Rural Development and the House 18 Committee on Agriculture, Forestry, Aquaculture and Rural Development to 19 assist the commission in performing its duties and responsibilities. 20 F. The chairman of the Senate Committee on Agriculture, Forestry, 21 Aquaculture and Rural Development and the chairman of the House Committee 22 on Agriculture, Forestry, Aquaculture and Rural Development shall serve as 23 cochairmen of the commission and shall convene the commission for its first 24 meeting by September 1, 2018. The commission shall meet upon the call of the 25 cochairmen as often as deemed necessary to carry out its duties. The 26 cochairmen shall establish a meeting schedule with a minimum of three 27 meetings and time line for completion of the commission's duties. 28 G. The commission may hold public hearings as part of its evaluation 29 process, and may appoint advisory groups to conduct studies, research, or 30 analyses, and make reports and recommendations with respect to a matter Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 560 ENROLLED 1 within the jurisdiction of the commission. At least one member of the 2 commission shall serve on each advisory group. 3 H. The names of the persons who are to serve on the commission shall be 4 submitted to the president of the Senate and the speaker of the House of 5 Representatives on or before August 15, 2018. 6 I. At a minimum, the commission shall study and make 7 recommendations on the following: 8 (1) The retail price of milk and milk products in Louisiana, including an 9 analysis of how cost markups of milk and milk products at the retail level affect 10 the prices paid to milk processors, milk distributors, and dairy farmers. 11 (2) A comparison of other state programs which set minimum prices paid 12 to milk processors, milk distributors, and dairy farmers. 13 (3) A comparison of other state programs which regulate or establish 14 wholesale or retail prices of milk and milk products. 15 (4) An analysis on the effectiveness of the disruptive trade practices 16 provisions of the Dairy Stabilization Law as provided in R.S. 3:4108 and rules 17 adopted pursuant thereto. 18 (5) An analysis of whether supply and demand forces influenced by 19 federal and state dairy programs determine the price dairy farmers receive for 20 raw milk. 21 J. Except as provided in R.S. 3:4110, the commission shall be authorized 22 to request and receive such records, data, and information produced by any 23 public entity and such entity shall respond to the request in a timely manner. 24 K. The commission shall submit a written report of its findings and 25 recommendations to the president of the Senate, the speaker of the House of 26 Representatives, the Senate Committee on Agriculture, Forestry, Aquaculture 27 and Rural Development and the House Committee on Agriculture, Forestry, 28 Aquaculture and Rural Development not later than sixty days prior to the 29 convening of the 2019 Regular Session of the Legislature of Louisiana. The 30 report also shall include recommendations for any changes to laws, rules, Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 560 ENROLLED 1 regulations, or guidelines that the commission deems necessary in order to 2 strengthen the dairy industry in Louisiana and protect consumers against 3 excessive prices for milk and dairy products. 4 L. The commission shall terminate on June 30, 2019. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.