CHAPTER 431
MILK INDUSTRY

Table of Contents

Sec. 22-205. Definitions.
Sec. 22-230. License applications.
Sec. 22-231. Grounds for refusal, suspension or revocation of license.
Sec. 22-235a. Method of computation of license fees for milk dealers. Regulations.
Sec. 22-236. License fees. Regulations. Waiver.
Sec. 22-245. Cease and desist directives. Corrective terms and conditions.

PART I
MILK MARKETING ACT

      Sec. 22-205. Definitions. The following terms shall be construed in this part to have the following meanings, unless the context otherwise requires: (1) "Commissioner" means the Commissioner of Agriculture; (2) "consumer" means any person, other than a dealer, who purchases milk for consumption or use; (3) "cooperative marketing association" means a producer-owned and producer-controlled association or corporation of producers, organized under the cooperative laws of this state, or of any other state and authorized to do business in this state, and conforming to the requirements of the Act of Congress of February 18, 1922, as amended, known as the "Capper-Volstead Act", and such association shall be governed by the applicable provisions of this part as to the prices at which it sells, markets or bargains to sell milk to dealers and others; (4) "dealer" means milk dealer, including any person, store, subdealer or producer-dealer, who purchases, receives, distributes or handles fluid milk or milk products for sale, but "dealer" does not include a producer who delivers milk to a dealer alone, retail raw milk producers, raw milk cheese manufacturers or cooperative marketing association as herein defined. A cooperative marketing association as defined in this section shall be deemed a producer if such association sells milk to stores or consumers. It shall be deemed a dealer as to such operations and shall be governed by the provisions of this part applicable thereto; (5) "licensee" means a licensed dealer; (6) "marketing area" means any city, town, borough, or state, or two or more cities, towns, boroughs, or states, or parts thereof and territory contiguous thereto, so designated by the Commissioner of Agriculture and having reasonable uniformity or similarity of marketing conditions among producers or dealers; (7) "milk" means fluid milk and cream, all products defined in sections 22-127 and 22-133, fresh, sour or storage, skimmed milk, buttermilk and flavored milk or milk drink; and reference in this part to quantity of milk shall be construed to include its whole milk equivalent; (8) "person" means any individual, firm, corporation, limited liability company, partnership or association; (9) "producer" means a person producing milk and includes community marketing associations; (10) "producer-dealer" means a dealer who is also a producer; (11) "store" means a grocery store, hotel, restaurant, drug store, dairy products store or any similar mercantile establishment which sells milk, except "store" does not include any establishment that sells milk only for consumption on the premises; (12) "subdealer" means any person, firm or corporation that sells fluid milk or milk products in their finished form for human consumption within the state to stores, other dealers or subdealers, restaurants, manufacturers or any place where the final sale of such fluid milk or milk products takes place in the same containers in which such person, firm or corporation purchased it from other dealers; (13) "cheese manufacturer" means any person, firm, corporation or dealer within the state that purchases fluid milk, or receives or handles fluid milk for the purpose of manufacturing cheese; (14) "yogurt manufacturer" means a milk dealer that purchases fluid milk or receives or handles fluid milk for the purpose of manufacturing yogurt for sale or distribution in the state; (15) "dry milk manufacturer" means any person, firm, corporation or dealer within the state who purchases fluid or dried milk, or receives or handles fluid or dried milk for the purpose of manufacturing or remanufacturing dry milk to be included or blended with fluid milk or be reconstituted into a milk product.

      (1949 Rev., S. 3113; 1959, P.A. 637, S. 2; 1961, P.A. 67; 1971, P.A. 872, S. 446, 448; P.A. 91-312, S. 32; P.A. 95-79, S. 86, 189; June 30 Sp. Sess. P.A. 03-6, S. 146(e); P.A. 04-189, S. 1; P.A. 05-175, S. 15.)

      History: 1959 act replaced commissioner of agriculture with commissioner of agriculture, conservation and natural resources; 1961 act replaced commissioner of agriculture, conservation and natural resources with commissioner of agriculture and natural resources; 1971 act replaced commissioner of agriculture and natural resources with commissioner of agriculture; P.A. 91-312 amended the definition of "marketing area" to include any state or two or more states; P.A. 95-79 redefined "person" to include a limited liability company, effective May 31, 1995; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Agriculture with Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004; P.A. 05-175 added Subdiv. designators, redefined "dealer", "milk", "producer", "producer-dealer", "store" and "subdealer", added new definitions of "cheese manufacturer", "yogurt manufacturer" and "dry milk manufacturer" and made technical changes.

(Return to
Chapter Table of Contents)
(Return to
List of Chapters)
(Return to
List of Titles)

      Sec. 22-230. License applications. (a) An application for a license to do business as a dealer, subdealer, cheese manufacturer, dry milk manufacturer or yogurt manufacturer shall be made to the commissioner. Any person who desires to enter business as a dealer, subdealer, cheese manufacturer, dry milk manufacturer or yogurt manufacturer shall file application not less than fifteen days prior to the date for which he is applying to engage in such business. Application for renewal of a license shall be made no later than July first of each year.

      (b) In order to be complete, each application shall be accompanied by the license fee provided for by sections 22-235a and 22-236. An applicant who fails to apply for renewal of a license on or before July first of each license year shall be assessed a late filing fee of fifty dollars and in the case of a store the late filing fee shall be fifteen dollars. Such late filing fee shall be in addition to any fees normally due for renewal of a license.

      (c) The applicant shall state such information in regard to his business or proposed business as is required by the commissioner, upon such form as he prescribes. Such information may include: (1) The nature of the business to be conducted; (2) the full name and address of the person applying; if the applicant is a copartnership, the full name of each member shall be stated; if the applicant is an association or corporation, the names and addresses of all officers and directors shall be stated; (3) the location at which the business is to be conducted and the locations or areas in which such business is to be operated; (4) the financial condition of the applicant; (5) a showing that he has complied and will comply with this part and all orders, rulings, regulations or directions issued hereunder; (6) the quantities, sources and type of outlets of milk handled during the calendar year preceding the period for which the license is desired; (7) such other facts with respect to the applicant's business as may be required by the commissioner pursuant to this part. The commissioner shall grant or renew a license to an applicant qualifying under and complying with all provisions of this part and orders, rulings, regulations and directions issued under this section.

      (d) Licenses shall not be transferable.

      (e) The licensing period shall be from the first day of July through the thirtieth day of June of the following year. The reporting period shall be the first day of April through the thirty-first day of March of the following year. During the month of March, the commissioner shall send a notice to each milk dealer, subdealer, cheese manufacturer, dry milk manufacturer and yogurt manufacturer, regarding their license renewal date and licensing reporting requirements.

      (f) The fees accompanying their application shall be returned to applicants who have been refused a license by the commissioner.

      (g) License fees collected shall be credited to the General Fund.

      (h) A milk dealer or a yogurt, dry milk and cheese manufacturer who fails to submit required information or fees no later than sixty days after the end of the licensing period shall be deemed to have surrendered its license and shall be notified by the commissioner via certified mail that its license is expired and deemed to have been surrendered. In the case of a store, such notification may be via first class mail. In the month of September, the commissioner shall furnish all licensed dealers, by electronic or other means deemed acceptable by the commissioner, a listing of all known milk dealers and stores that have failed to renew a license or whose license was revoked. The commissioner may update the listing from time to time.

      (i) No license shall be issued to any person, firm or corporation who has surrendered its license or whose license was revoked, until the commissioner has received all past due license or late fees.

      (1949 Rev., S. 3141; 1959, P.A. 116, S. 3; 1961, P.A. 424, S. 1; P.A. 91-312, S. 34; P.A. 96-25; P.A. 05-175, S. 16.)

      History: 1959 act replaced "administrator", i.e. milk administrator, with "commissioner", i.e. commissioner of agriculture, established two-dollar license fee and one-dollar additional charge for late renewal, replacing provision for minimum fee of one dollar and increase of five per cent for late renewals; 1961 act replaced fee provision with reference to fees as provided in Secs. 22-235a and 22-236; P.A. 91-312 divided section into Subsecs., amended Subsec. (a) to require an application for renewal to be made "during the month of May and no later than June first" rather than "on or before June first" and amended Subsec. (b) to replace provision increasing the license fee by one dollar for a late renewal with provision imposing a late filing fee of fifteen dollars in addition to the normal renewal fees for an applicant who fails to apply for renewal on or before June first; P.A. 96-25 amended Subsecs. (a) and (b) to revise time for application for renewal of license; P.A. 05-175 required subdealers and cheese, dry milk and yogurt manufacturers to make application to commissioner in Subsec. (a), added fifty-dollar late filing fee and fifteen-dollar store late filing fee in Subsec. (b), made a technical change in Subsec. (c) and added new Subsecs. (d) to (i), inclusive, re licensing fees and issuance.

(Return to
Chapter Table of Contents)
(Return to
List of Chapters)
(Return to
List of Titles)

      Sec. 22-231. Grounds for refusal, suspension or revocation of license. The Commissioner of Agriculture may refuse to grant or renew a license, or may suspend, revoke or refuse to transfer a license already granted, after the commissioner has determined that the applicant or dealer: (1) Has failed to comply, or has been a responsible member or officer of a partnership or corporation which failed to comply, with any provision of this part or any order, ruling, regulation or direction issued hereunder; (2) has insufficient financial responsibility, personnel or equipment to properly to conduct the milk business; (3) is a person, partnership, corporation or other business entity, in which any individual holding a material position, interest or power of control has previously been responsible in whole or in part for any act on account of which a license was or may be denied, suspended or revoked under the provisions of this part; (4) has failed to file a bond required by the commissioner under the provisions of this part; (5) if located out of the state, has failed to obtain a satisfactory milk sanitation compliance rating from a certified state milk sanitation rating officer or is not in compliance with all laws and regulations of the state pertaining to health and sanitation in the production, processing, handling or sale of milk; (6) has rejected, without reasonable cause, any milk purchased from a producer, or has refused to accept, without either reasonable cause or reasonable advance notice, milk delivered by or on behalf of a producer in ordinary continuance of a previous course of dealing, except when the contract has been lawfully terminated; provided, in the absence of an express or implied fixing of a period in the contract, "reasonable advance notice" shall be construed to mean not less than one week nor more than two weeks; (7) has continued in a course of dealing of such nature as to show an intent to deceive, defraud or impose upon producers or consumers; (8) has violated any stipulation or written agreement entered into with the commissioner in the course of any proceeding under this part; (9) has made a false material statement in his application; or (10) has failed to provide information required under this chapter.

      (1949 Rev., S. 3142; 1959, P.A. 637, S. 2; 1961, P.A. 67; 1971, P.A. 872, S. 446, 448; P.A. 91-312, S. 46, 48; June 30 Sp. Sess. P.A. 03-6, S. 146(e); P.A. 04-189, S. 1; P.A. 05-175, S. 17.)

      History: 1959 act replaced commissioner of agriculture with commissioner of agriculture, conservation and natural resources; 1961 act replaced commissioner of agriculture, conservation and natural resources with commissioner of agriculture and natural resources; 1971 act replaced commissioner of agriculture and natural resources with commissioner of agriculture; P.A. 91-312 made technical change and added reference to Sec. 22-211b which is included in existing reference to "this part"; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Agriculture with Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004; P.A. 05-175 made a technical change and added provision in Subdiv. (5) re dealer located out of state and new Subdiv. (10) re failure to provide required information.

(Return to
Chapter Table of Contents)
(Return to
List of Chapters)
(Return to
List of Titles)

      Sec. 22-235a. Method of computation of license fees for milk dealers. Regulations. License fees for all milk dealers, except stores, shall be based upon the volume of milk and milk products sold in the state during the reporting period. The Commissioner of Agriculture shall adopt regulations, in accordance with the provisions of chapter 54, necessary to carry out the provisions of this section.

      (1961, P.A. 424, S. 2; P.A. 05-175, S. 18.)

      History: P.A. 05-175 deleted former provisions re computation of milk dealer licensing fees and added provisions re computation of milk dealer licensing fees based on volume of milk and milk products sold and requiring commissioner to adopt regulations.

(Return to
Chapter Table of Contents)
(Return to
List of Chapters)
(Return to
List of Titles)

      Sec. 22-236. License fees. Regulations. Waiver. (a) The annual license fee for each milk dealer, yogurt manufacturer, or subdealer shall be fifty dollars. The license fee for dealers and subdealers with yearly sales in excess of one hundred thousand quarts shall be increased at a rate of .021 cents per one hundred quarts of milk product sold during the reporting period.

      (b) The license fee for each cheese manufacturer shall be fifty dollars.

      (c) The license fee for each dry milk manufacturer shall be fifty dollars.

      (d) The license fee for each store shall be thirty dollars.

      (e) The Commissioner of Agriculture shall adopt regulations, in accordance with the provisions of chapter 54, necessary to carry out the provisions of this section.

      (f) The commissioner may grant a waiver from any fee established in this chapter to any nonprofit organization, as defined in Section 501(c)(3) of the United States Internal Revenue Code, upon presentation to the commissioner of adequate proof of the organization's nonprofit status.

      (1949 Rev., S. 3147; 1959, P.A. 116, S. 5; 1961, P.A. 424, S. 3; February, 1965, P.A. 51; 1967, P.A. 656, S. 20; 1971, P.A. 256, S. 2; P.A. 74-226, S. 1, 2; P.A. 82-91, S. 12, 38; P.A. 84-326, S. 1, 2; P.A. 91-312, S. 35, 48; P.A. 05-175, S. 19.)

      History: 1959 act deleted provisions setting forth license fees based on quantities of milk handled, whether or not sales are a part of the business, etc. reflecting amendments to Sec. 22-230; 1961 act inserted new fee schedule with varying rates based on quantities of milk, number of stores involved, type of sales made, etc.; 1965 act deleted phrase "from producers" in provision re those who purchase milk but do not sell milk or cream; 1967 act added Subsecs. (c) and (d) re disposition of fees collected; 1971 act raised basis of fee determined on quantity to one hundred quarts where previously there existed a two-tiered fee of two dollars for quantities up to ten quarts and three dollars for quantities from eleven to one hundred quarts and raised fee addition from one to two dollars for quantities beyond hundred quart level and amended Subsec. (d) to specify that funds generated through fee increase be segregated for the administration of Secs. 22-236 and 22-242b; P.A. 74-226 required that any funds segregated as provided in 1971 act be transferred to general fund and that no more be so segregated; P.A. 82-91 increased license fee for daily average not exceeding 100 quarts of milk from $2.00 to $3.00, increased rate of fee increase from that point for each daily average of 100 quarts or fraction thereof from $2.00 to $3.00, increased license fee for each separate store location from $5.00 to $15.00, increased license fee for dealer who purchases milk but does not sell milk or cream from $15.00 to $25.00, increased license fee for dealer who sells or disposes of milk only in another state from $15.00 to $30.00 if the dealer's daily average amount of milk does not exceed 500 quarts, and from $25.00 to $50.00 if such daily average exceeds 500 quarts, increased transfer re:CHY:cording fee from $1.00 to $5.00 and deleted obsolete provision concerning transfer of reserve account funds to general fund; P.A. 84-326 amended Subsec. (a) by increasing the standard from one hundred to three hundred quarts and increasing the fee from three to fifteen dollars and from three to five dollars for each hundred quarts or fraction thereof above three hundred; P.A. 91-312 increased license fee for daily average not exceeding three hundred quarts from fifteen to twenty-five dollars, increased rate of fee increase for each daily average of one hundred quarts or fraction thereof in excess of three hundred quarts from five dollars to seven dollars and fifty cents, increased the license fee for each separate store location from fifteen to twenty-five dollars and increased the fee for re:CHY:cording a transfer from five to fifteen dollars; P.A. 05-175 replaced former section with new Subsecs. (a) to (f), inclusive, re license fees, regulations and waivers for nonprofit organizations.

(Return to
Chapter Table of Contents)
(Return to
List of Chapters)
(Return to
List of Titles)

      Sec. 22-245. Cease and desist directives. Corrective terms and conditions. After such hearing and finding, the Commissioner of Agriculture may issue against such dealer or store a directive to cease and desist, and prescribe such corrective terms and conditions as he determines upon the hearing evidence to be in the public interest. Such corrective terms and conditions may include one or more of the following or parts thereof, and other reasonable and similar terms or conditions with like corrective purpose, subject to such regulations as the commissioner prescribes in aid of the effectiveness of such directive: (1) In cases in which prices are favoring, special or discriminatory, directing the revision of prices at which milk is so sold; or directing and specifying restoration of nondiscriminatory prices; or directing that no further sales be made to favored purchasers for a period not exceeding ninety days. Such provision may prohibit the sale or offer of reasonably similar quantities and qualities of milk under similar conditions to different purchasers at unreasonably different prices; or the sale or offer of milk of special properties or quality, or with an uncustomary amount of service or in an unusual container at prices which do not make allowance for differences in cost existing between such sales or offers and usual sales; (2) directing the revision of prices at which milk is sold; or directing and specifying restoration of normally prevailing resale prices for a period not exceeding ninety days considering comparable milk in the same locality at any reasonable preceding period of time in which resale price conditions were sufficiently stable to protect producers' prices, adjusting for any difference in producers' prices at such time and place; (3) prohibiting any dealer or store, directly or indirectly, from furnishing or receiving or offering to furnish or receive in connection with a sale or purchase of milk or offer to sell or purchase milk any rebate, discount, premium, gift or other thing of value, an unreasonable service or extension of credit, or an advertising allowance; from charging a combined price for milk, together with another commodity, or a service which is less, or is represented to be less, than the aggregate of the price of the milk and the price or value of such commodity or service when sold or offered for sale separately; or from otherwise applying or attempting to apply any method or device intended to defeat the policy of this part, or to defeat or evade any provision of this part or of any order, ruling or regulation issued hereunder. Nothing in this section shall be construed to prevent a dealer from participating in any program sponsored or conducted by the commissioner or any other governmental authority, designed to make milk available at specially low prices to groups designated by appropriate public authorities for the purpose of increasing consumption. Hearings may be held and directions issued under this section affecting one or more dealers concurrently or independently; and may be held only on such notice as the emergency reasonably permits. Directions under this section may be served upon a dealer at his place of business or by registered or certified mail to his last-known address.

      (1949 Rev., S. 3155; 1959, P.A. 637, S. 2; 1961, P.A. 67; 1971, P.A. 872, S. 446, 448; P.A. 91-312, S. 39; June 30 Sp. Sess. P.A. 03-6, S. 146(e); P.A. 04-189, S. 1; P.A. 05-175, S. 20.)

      History: 1959 act replaced commissioner of agriculture with commissioner of agriculture, conservation and natural resources; 1961 act replaced commissioner of agriculture, conservation and natural resources with commissioner of agriculture and natural resources; 1971 act replaced commissioner of agriculture and natural resources with commissioner of agriculture; P.A. 91-312 replaced "direction" with "directive" and deleted as a corrective term or condition former Subdiv. (1) re the public posting of resale prices and price changes, which may include an itemization of names of purchasers and the milk sold, in the commissioner's office once or from time to time over a period not exceeding ninety days, and renumbered the remaining Subdivs. accordingly; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Agriculture with Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004; P.A. 05-175 added stores as entities subject to cease and desist directives and made technical changes.

(Return to
Chapter Table of Contents)
(Return to
List of Chapters)
(Return to
List of Titles)