PRINTER'S NO. 668
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.689
Session of
2025
INTRODUCED BY VOGEL, SCHWANK, BARTOLOTTA, KANE, FONTANA, CULVER,
PENNYCUICK, COSTA, STEFANO AND J. WARD, APRIL 28, 2025
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, APRIL 28, 2025
AN ACT
Amending the act of April 28, 1937 (P.L.417, No.105), entitled
"An act relating to milk and the products thereof; creating a
Pennsylvania Milk Board; establishing its jurisdiction,
powers and duties; regulating the production, transportation,
manufacturing, processing, storage, distribution, delivery
and sale of milk and certain products thereof; providing for
the licensing of milk dealers and the payment of fees
therefor; requiring milk dealers to file bonds to secure
payment for milk to producers and certain milk dealers;
authorizing the holding of hearings and the issuance of
subpoenas by the board; conferring jurisdiction upon courts
to punish contempts and to prohibit violations of this act
and of rules, regulations and orders of the board;
authorizing the board to adopt rules, regulations and orders,
and to enter into interstate and Federal compacts; requiring
persons who weigh, measure, sample or test milk to procure
permits or certificates, to take examinations, to pay fees
therefor, to furnish certain notices, records and statements,
and to use certain methods of weighing, measuring, sampling
and testing; authorizing the board to examine the business,
papers and premises of milk dealers and producers, requiring
the keeping of records and the filing of reports by milk
dealers, and permitting, with limitations, the use of
information obtained thereby; authorizing the board to fix
prices for milk and certain milk products subject to the
approval of the Governor, and conferring certain powers upon
the Governor with respect thereto; providing for appeals to
the courts from decisions of the board, and for the burden of
proof upon such appeals; prescribing penalties, fines and
imprisonment for violations of this act and rules,
regulations and orders of the board; defining perjury;
defining remedies; repealing legislation supplied and
superseded by this act, and saving rights, duties and
proceedings thereunder; and making appropriations," in
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34 purpose, short title and definitions, further providing for
definitions and construction; in general powers of the board,
providing for collection of premiums; in prices of milk,
providing for board-established premiums and further
providing for cooperatives; and, in moneys and expenses of
board, further providing for Milk Marketing Fund and for
payment and providing for audits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 103 of the act of April 28, 1937
(P.L.417, No.105), known as the Milk Marketing Law, is amended
by adding a definition to read:
Section 103. Definitions; Construction.--The following terms
shall be construed in this act to have the following meanings,
except in those instances where the context clearly indicates
otherwise:
* * *
"Board-established premium" means a fee or charge established
by official order of the board on Class 1 fluid milk.
* * *
Section 2. The act is amended by adding sections to read:
Section 312. Collection of Premiums .--(a) The board is
hereby vested with the power to coordinate, facilitate or
establish the collection and distribution of board-established
premiums in accordance with section 801.1.
(b) For the purposes of subsection (a), the board shall
coordinate with the Department of Revenue and the Department of
Revenue shall facilitate the collection of board-established
premiums.
Section 801.1. Board-Established Premiums.--(a) The board
may fix, by official order, a board-established premium based on
evidence presented on cost of production, price received and
return on equity.
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33 (b) The board shall submit an official order under
subsection (a) and section 1104(b) to the Agriculture and Rural
Affairs Committee of the Senate and the Agriculture and Rural
Affairs Committee of the House of Representatives for review
based on the criteria specified under subsection (a) and section
1104(b).
(c) The Agriculture and Rural Affairs Committee of the
Senate shall, within thirty calendar days or six legislative
session days, whichever is later, from receipt of an official
order under subsection (b) notify the board that the Agriculture
and Rural Affairs Committee of the Senate has approved or
disapproved the official order. The Agriculture and Rural
Affairs Committee of the House of Representatives shall, within
thirty calendar days or six legislative session days, whichever
is later, from receipt of an official order under subsection (b)
notify the board that the Agriculture and Rural Affairs
Committee of the House of Representatives has approved or
disapproved the official order. If the Agriculture and Rural
Affairs Committee of the Senate or the Agriculture and Rural
Affairs Committee of the House of Representatives do not notify
the board of a disapproval of the official order by the deadline
specified under this subsection, the official order shall be
deemed approved. As used in this subsection, the term
"legislative session day" means any day when the Senate or the
House of Representatives is in session.
(d) The board shall transmit to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin notice of an official order approved or
deemed approved under subsection (c). A board-established
premium shall take effect upon publication in the Pennsylvania
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30 Bulletin.
(e) An official order under subsection (a) shall be exempt
from the following:
(1) Section 612 of the act of April 9, 1929 (P.L.177,
No.175), known as "The Administrative Code of 1929."
(2) Article II of the act of July 31, 1968 (P.L.769,
No.240), referred to as the Commonwealth Documents Law.
(3) Section 204(b) of the act of October 15, 1980 (P.L.950,
No.164), known as the "Commonwealth Attorneys Act."
(4) The act of June 25, 1982 (P.L.633, No.181), known as the
"Regulatory Review Act."
Section 3. Sections 809, 1101 and 1104 of the act are
amended to read:
Section 809. Cooperatives.-- (a) It is hereby declared to be
the legislative intent that no provision of this act shall
prevent, and no provision contained herein shall be deemed or
construed to prevent, any cooperative agricultural association
or corporation organized under the laws of this Commonwealth, or
a similar association or corporation organized under the laws of
this or any other state, and engaged in making collective sales
or in the marketing of milk for the producers thereof, from
blending the net proceeds of its sales or consignments or
deliveries in all its markets or of its sales or deliveries
within any particular market in various classes and whether in
fluid form or as manufactured products, both within and without
the Commonwealth, and paying its producers such blended price,
with such deductions and differentials as may be authorized
under contract between such association or corporation, and its
producers, and with prior written approval of the board, or from
making collective sales of the milk of its members and other
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30 producers represented by it, or from making such sales or
deliveries at a blended price based upon sales or deliveries
thereof in the various classes, and whether in fluid form or as
manufactured products, both within and without the Commonwealth,
which price is to be paid either directly to the producers or to
the cooperative agricultural association or corporation. Nothing
herein contained shall prevent any milk dealer or handler from
contracting for his milk with such cooperative agricultural
association or corporation, upon such basis; but all such
contracts shall be upon the basis of the prices fixed by the
board, with the result that the net price received for milk by
such cooperative association or corporation shall be
commensurate with such prices. No director or officer of a
cooperative association or corporation shall offer, nor shall
milk dealers or handlers, or agents thereof, receive from any
producer or from such cooperative association or corporation,
directly or indirectly, any discounts, rebates, free service, or
compensation through rentals, extension of credit, or otherwise
for the purpose or with the effect, of reducing the net cost to
the dealer or handler for milk purchased or received by or
through such cooperative association or corporation.
(b) No provision of this act shall be deemed or construed to
affect the contracts of such cooperative agricultural
association or corporation with its producers, except as
hereinafter specifically provided, nor to affect or abridge the
rights and powers of such an association or any of its
operations: Provided, however, That the powers of subpoena,
entry, and inspection, vested in the board under this act, shall
apply for the purpose of examining and auditing books and
records of any such cooperative agricultural association or
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30 corporation, at reasonable intervals, for the purpose of
administering this act. This section shall not, however, be
construed to exempt such association or corporation from the
jurisdiction of the board over [ the] any of the following:
(1) The prices at which it may sell milk to milk dealers or
handlers, stores or consumers.
(2) The collection of board-established premiums under
section 312.
(3) The distribution of moneys under section 1104.
(4) The provisions of section 1107.
(c) Every cooperative agricultural association or
corporation operating under the provisions of this section shall
file with the board a copy of its certificate of incorporation
and by-laws, and a copy of each form of contract employed in its
relations with producers, within sixty (60) days after the
effective date of this act.
Section 1101. Milk Marketing Fund.-- (a) All moneys
collected or received by the board, arising from license fees,
penalties, permits or any other source, shall be paid by the
board into the State Treasury through the Department of Revenue,
and shall, by the State Treasurer, be placed in a separate fund
to be known as the "Milk Marketing Fund." Fines imposed under
this act shall be payable to, and collected by, the board, and
similarly placed in the Milk Marketing Fund.
(b) Moneys collected or received by the board, that are not
funds of the Commonwealth, but are due to producers, dealers or
handlers for, or on account of, milk acquired or received by
dealers or handlers from producers or other dealers or handlers,
and placed in the Milk Marketing Fund, shall be paid to the
persons entitled thereto by the State Treasurer, as directed by
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30 the board.
(c) Except for moneys described under subsection (b), the
board may direct the State Treasurer to transfer excess moneys
in the Milk Marketing Fund to the General Fund.
Section 1104. Payment.-- (a) Moneys in the Milk Marketing
Fund appropriated to the board shall be paid out upon warrant of
the State Treasurer drawn after requisition by the secretary of
the board.
(b) Moneys transferred from the General Fund to the Milk
Marketing Fund shall, by official order of the board, be
distributed by the board to producers, dealers or handlers in a
manner that accounts for cost of production, price received and
return on equity.
Section 4. The act is amended by adding a section to read:
Section 1107. Audits. -- Moneys distributed to producers,
dealers or handlers under section 1104(b) shall be subject to an
audit by the board or its designee. The board or its designee
shall conduct an audit under this section within six months of
the first distributions under section 1104(b) and annually
thereafter .
Section 5. This act shall take effect in 60 days.
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