An Act To Provide Financial Relief for Maine Dairy Farmers Further amend the bill by striking out everything after the enacting clause and before the emergency clause and inserting in its place the following: Sec. 1. 7 MRSA §436, as amended by PL 1999, c. 563, §1, is further amended to read: §436. Grants for technical assistance and research The commissioner may use all or a portion of the accrued interest in the cash balance of the Agricultural Marketing Loan Fund and int;e!;'est; all or a portion of loan repaymentsT--up---t;G--a ma*imaffi-e~-$6eQTQQQ-peF-yeaFT for grants for technical assistance and the agricultural development grant program in chapter 10. The commissioner may expend grant dollars designated to an applicant in one fiscal year during the following fiscal year. Sec. 2. 7 MRSA §3153-A is enacted to read: §3153-A. Dairy stabilization subsidy If the base price of milk falls below $16.94 per Page l-LR20l2(2) COMMITTEE AMENDMENT
Maine Legislature, Session 121, LD 1378
Committee Amendment CA_A_H271 (House)
Amends: 7 MRSA §436, 7 MRSA §3153-A, 10 MRSA §1023-J

COMMITTEE AMENDMENT "{f,, to H. P. 10l3, L. D. 1378, 
Act To Provide Financing Relief for Maine Dairy Farmers" 
Bill, "An 
Amend the bill by striking out the title and substituting 
the following: 
'An Act To Provide Financial Relief for Maine Dairy Farmers' 
Further amend the bill by striking out everything after the 
enacting clause and before the emergency clause and inserting in 
its place the following: 
'Sec. 1. 7 MRSA §436, as amended by PL 1999, c. 563, §1, is 
further amended to read: 
§436. 
Grants for technical assistance and research 
The commissioner may use all or a portion of the accrued 
interest in the cash balance of the Agricultural Marketing Loan 
Fund and int;e!;'est; all or a portion of loan repaymentsT--up---t;G--a 
ma*imaffi-e~-$6eQTQQQ-peF-yeaFT for grants for technical assistance 
and the agricultural development grant program in chapter 10. 
The 
commissioner 
may 
expend grant dollars 
designated 
to 
an 
applicant in one fiscal year during the following fiscal year. 
Sec. 2. 7 MRSA §3153-A is enacted to read: 
§3153-A. 
Dairy stabilization subsidy 
If 
the 
base 
price 
of 
milk 
falls 
below 
$16.94 
per 
Page l-LR20l2(2) 
COMMITTEE AMENDMENT 
~,S' 
~\., . 
COMMITTEE AMENDMENT "P. .. to H.P. 10l3, L.D. 1378 
hundredweight in any month beginning September 1, 2003 and ending 
December 31, 2003, the administrator of the Maine Milk Pool shall 
distribute to Maine milk producers on a per hundredweight basis 
5540 of the difference between $16.94 per hundredweight and the 
base price of milk per hundredweight. 
The amount distributed for 
milk produced during the period between September 1, 
2003 and 
December 31, 2003 may not exceed $3,000,000. 
The Governor shall 
provide these funds to the Maine milk pool administrator for 
distribution to Maine milk producers, as provided for in this 
section, during the months of October 2003 to January 2004. 
The 
base price of milk is the Suffolk County, Massachusetts Class I 
price of milk as determined for each month by the Northeast 
Market 
Administrator 
of 
the 
Uni ted 
States 
Department 
of 
Agriculture. The Governor shall seek a General Fund appropriation 
during the Second Regular Session of the 121st Legislature if 
needed for the purposes of this section. 
Sec. 3. 10 MRSA §1023-J, as amended by PL 2001, c. 471, Pt. 
A, §12, is further amended to read: 
§1023-J. 
Agricultural Marketing Loan Fund 
The Agricultural Marketing Loan Fund, referred to in this 
section as the "fund," is created. 
The fund must be deposited 
with and maintained by the Finance Authority of Maine. 
The fund 
must be administered by the Commissioner of Agriculture, Food·and 
Rural 
Resources 
in 
accordance 
with 
Title 
7, 
chapter 
101, 
subchapter *-g I-D. 
All money received by the Finance Authority 
of Maine from any source for the development and implementation 
of 
an 
improved agricultural marketing 
loan 
program 
must 
be 
credited to the fund. 
Any money credited to the fund from the 
issuance of bonds on behalf of the State for financing loans for 
agricultural enterprises 
may be 
used only for the following 
purposes: 
to provide assistance to agricultural enterprises in 
this 
State 
for 
the 
design, 
construction or 
improvement 
of 
commodity 
and 
storage 
buildings 
and 
packing 
and 
marketing 
facilities; 
for 
the 
purchase, 
construction or 
renovation of 
buildings, equipment, docks, wharves, piers or vessels used in 
connection with a 
commercial agricultural enterprise; for the 
purchase of land in connection with development of new cranberry 
acreage; for the purchase of land for irrigation reservoirs or to 
provide direct access to water for irrigation; for the purchase 
of 
land 
necessary 
for 
the 
start-up of 
a 
new 
agricultural 
enterprise: 
for 
the 
expansion 
of 
an 
existing 
agricultural 
enterprise when the land acquisition is necessary to comply with 
land use regulations; 9!' for the development of a business plan 
in accordance with the provisions of Title 7, section 436-A; or, 
if the commissioner so approves at the time of loan insurance 
commitment. to pledge money in the fund as security for, and to 
apply money in the fund to, payment of principal, interest and 
COMMITTEE AMENDMENT 
t.,;:> 
I:"' 
<'~~v 
COMMITTEE AMENDMENT" f{., to H.P. 1013, L.D. 1378· 
other amounts 
due on any term loans insured by the Finance 
Authority of Maine to an eligible dairy farmer. 
Repayment of 
these loans and interest on these loans must be credited to the 
fund and mHs~-~-&va~ba&~-fe~-~i~-aaai~ie»ak-~~££-~~~-~be 
same-~~~€£~-~--~~-ia~eFes~ may be used for the purposes 
stated in this section or Title 7, section 436. 
Interest earned 
on money in the fund and interest earned on loans made from the 
fund may be used to pay the administrative costs of processing 
loan applications, to the extent that these costs exceed the fee 
for administrative costs established by Title 7, section 435, 
subsection 4. 
A purchaser of a modern storage facility that was previously 
financed with a state loan from the Potato Marketing Improvement 
Fund may receive a 
loan from the Agr icul tural Marketing Loan 
Fund, 
but not for 
the 
same project financed 
by the Potato 
Marketing Improvement Fund. 
Mortgages obtained from the fund may 
be assumed by subsequent purchasers of the property. 
In 
order 
to 
provide 
monetary 
support 
for 
Maine 
milk 
producers. 
the 
Commissioner 
of 
Agriculture, 
Food 
and 
Rural 
Resources may take actions and direct the Finance Authority of 
Maine to take actions to provide support including entering into 
agreements as may be 
necessary to sell, assign or otherwise 
pledge amounts in the aggregate principal amount of loans and 
undivided interests in a pool of loans, and assign or pledge any 
cash balances in the fund, mortgages or other security to provide 
assurance 
that 
amounts 
provided 
as 
monetary 
support 
by 
the 
commissioner to milk producers are returned to their original 
source. 
Sec. 4. Transfer of funds. 
Notwithstanding any other provision 
of law, 
the State Controller shall transfer $10,000 
from the 
Division of Quality Assurance 
and 
Regulation, 
Other 
Special 
Revenue Funds account in the Department of Agriculture, Food and 
Rural 
Resources 
to the Maine 
Milk 
Commission, 
Other Special 
Revenue Funds account, appropriation unit 22, in the Department 
of Agriculture, Food and Rural Resources no later than June 30, 
2003. 
Sec. 5. Transfer of funds. 
Notwithstanding any other provision 
of law, 
the State Controller shall transfer $15,000 from the 
Division of Animal Health and Industry, Other Special Revenue 
Funds account in the Department of Agr icul ture, Food and Rural 
Resources to the Maine Milk Commission, 
Other Special Revenue 
Funds 
account, 
appropriation unit 
22, 
in the 
Department 
of 
Agriculture, Food and Rural Resources no later than June 30, 2003. 
COMMITTEE AMENDMENT 
'( ~j .•.. 
i,.)'. 
COMMITTEE AMENDMENT . ..ff,. to H.P. 10l3, L.D. 1378 
Sec. 6. Transfer of funds. 
Notwithstanding any other provision 
of law, 
the State Controller shall transfer $11,913 
from the 
Maine 
Milk 
Commission, 
Other 
Special 
Revenue 
Funds 
account, 
appropriation unit 01, in the Department of Agriculture, Food and 
Rural 
Resources 
to the Maine 
Milk 
Commission, 
Other Special 
Revenue Funds account, appropriation unit 22, in the Department 
of Agriculture, Food and Rural Resources no later than June 30, 
2003. 
Sec. 7. 
Prices established by Maine Milk Commission. 
In 
establishing and changing minimum wholesale prices paid to milk 
producers under the Maine Revised Statutes, Title 7, chapter 603, 
the Maine Milk Commission may not reduce the minimum wholesale 
prices paid to producers 
based 
on subsidy payments 
made 
in 
accordance with Title 7, section 3l53-A. 
Sec. 8. Authority to allocate funds. 
Notwithstanding the Maine 
Revised Statutes, Title 7, section 436 or any other provision of 
law to the contrary, the Commissioner of Agriculture, Food and 
Rural Resources may allocate funds available for grants under 
Title 
7, 
section 
to 
the 
Maine 
Milk 
Commission 
for 
distribution to Maine milk producers no later than September 30, 
2003. 
Sec. 
9. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
AGRICUL"J.'URE, FOOD AND RURAL RESOURCES, 
DEPARTMENT OF OlA 
Division of Quality Assurance and 
Regulation 010 OlA 0393 01 
The 
following 
Initiative: 
Deappropriates 
funds 
from 
salary savings 
and 
a 
reduction in operations. 
The funds will be reappropriated to the 
Maine Milk Commission for transfer to the Maina Milk Pool to aid 
the dairy industry. 
General Fund 
Personal Services 
All Other 
General Fund Total 
2002-03 
($282,702) 
(5,000) 
($287,702) 
Division of Animal Health and 
Industry 010 01A 0394 01 
2003-04 
$0 
o 
$0 
2004-05 
$0 
o 
$0 
Initiative: 
Deappropriates 
funds 
from 
salary savings 
and 
a 
reduction in operations. 
The funds will be reappropriated to the 
COMMITTEE AMENDMENT 
'\ (~ .. }. 
\." 
\ 
•• J 
COMMITTEE AMENDMENT I~ to H.P. 1013, L.D. 1378 
Maine Milk Commission for transfer to the Maine Milk Pool to aid 
the dairy industry. 
General Fund 
Personal Services 
All Other 
General Fund Total 
2002-03 
($76,749) 
(2,816) 
($79,565) 
Office of Agricultural, Natural and 
Rural Resources 010 OlA 0830 01 
2003-04 
$0 
o 
$0 
2004-05 
$0 
o 
$0 
Initiative: 
Deappropriates 
funds 
from 
salary savings 
and 
a 
reduction in operations. 
The funds will be reappropriated to the 
Maine Milk Commission for transfer to the Maine Milk Pool to aid 
the dairy industry. 
General Fund 
Personal Services 
All Other 
General Fund Total 
2002-03 
($20,000) 
(8,360) 
($28,360) 
Division of Market and Production 
Development 010 01A 0833 01 
2003-04 
$0 
o 
$0 
Initiative: 
Deappropriates 
funds 
from 
salary savings 
reduction in operations. 
The funds will be reappropriated 
Maine Milk Commission for transfer to the Maine Milk Pool 
the dairy industry. 
General Fund 
Personal Services 
General Fund Total 
2002-03 
($14,162) 
($14,162) 
Harness Racing Commission 010 OlA 0320 01 
2003-04 
$0 
$0 
2004-05 
$0 
o 
$0 
and 
a 
to the 
to aid 
2004-05 
$0 
$0 
Initiative: 
Deappropriates 
funds 
from 
a 
reduction 
in 
operations. 
The funds will be reappropriated to the Maine Milk 
Commission for transfer to the Maine Milk Pool to aid the dairy 
industry. 
General Fund 
All Other 
General Fund Total 
2002-03 
($48,000) 
($48,000) 
Office of the Commissioner 010 01A 0401 01 
2003-04 
$0 
$0 
2004-05 
$0 
$0 
COMMITTEE AMENDMENT 
~. '}. 
,,,,,.,, 
COMMITTEE AMENDMENT "#' to H.P. 1013, L.D. 1378 
Initiative: 
Deappropriates 
funds 
from 
a 
reduction 
in 
operations. 
The funds will be reappropriated to the Maine Milk 
Commission for transfer to the Maine Milk Pool to aid the dairy 
industry. 
General Fund 
All Other 
General Fund Total 
2002-03 
($698) 
($698) 
Division of Plant Industry 010 01A 0831 01 
2003-04 
$0 
$0 
2004-05 
$0 
$0 
Initiative: 
Deappropriates 
funds 
from 
a 
reduction 
in 
operations. 
The funds will be reappropriated to the Maine Milk 
Commission for transfer to the Maine Milk Pool to aid the dairy 
industry. 
General Fund 
2002-03 
2003-04 
2004-05 
All Other 
($4,600) 
$0 
$0 
General Fund Total 
($4,600) 
$0 
$0 
Maine Milk Commission 014 01A 0188 01 
Initiative: 
Provides for a one-time appropriation of funds to be 
transferred to the Maine Milk Pool. 
General Fund 
2002-03 
2003-04 
2004-05 
All Other 
$463,087 
$0 
$0 
General Fund Total 
$463,087 
$0 
$0 
Initiative: 
Provides for the allocation of funds to the Maine 
Milk Commission's Milk Pool account to carry out the provisions 
of this Act. 
The funds must be distributed equitably no later 
than September 30, 2003 to all Maine dairy farmers in accordance 
with their production. 
Other Special Revenue Funds 
2002-03 
All Other 
$1,400,000 
Other Special 
Revenue Funds Total 
$1,400,000 
Maine Milk Commission 014 OlA 0188 01 
2003-04 
$1, 800,000 
$1,800,000 
2004-05 
$0 
$0 
Initiative: 
Provides for the allocation of funds to the Maine 
Milk Commission's Milk Pool account, created in the Maine Revised 
Statutes, Title 7, section 3153, to be distributed to Maine dairy 
farmers pursuant to Title 7, section 3153-A. 
COMMITTEE AMENDMENT 
',', , 
~. 
COMMITTEE AMENDMENT "N" to H.P. 1013 , L.D. 1378 
Other Special Revenue Funds 
2002-03 
2003-04 
2004-05 
All Other 
$0 
$3,000,000 
$0 
Other Special 
Revenue Funds Total 
$0 
$3,000,000 
$0 
AGRICULTURE. FOOD AND RURAL 
RESOURCES, DEPARTMENT OF OlA 
2002-03 
2003-04 
2004-05 
GENERAL FUND 
$0 
$0 
$0 
orBER SPECIAL 
REVENUE FUNDS 
$1,400,000 
$4,800,000 
$0 
DEPAR"l'MENT 'lUTAL -
ALL FUNDS 
$1,400,000 
$4,800,000 
$0' 
SUMMARY 
This amendment allows the Commissioner of Agriculture, Food 
and Rural Resources to use the Agricultural Marketing Loan Fund 
to provide additional financial assistance to dairy farmers. 
It 
also transfers certain savings in other accounts within the 
department to the Maine Milk Commission for distribution to Maine 
milk producers. 
This amendment also provides for direct subsidy paymen&s to 
the State's dairy farmers through the Maine Milk Pool in the 
event that the base price for milk falls below $16.94 in any of 
the months from September 2003 to December 2003. 
In the absence 
of state or 
federal 
funds 
available 
for 
this purpose, 
the 
Governor 
is authorized to borrow 
up 
to $2,000,000 
for 
this 
purpose. 
FISCAL NOTE REQIDRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
General Fund 
Other Special Revenue Funds 
Transfers 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Approved: 04128/03 frae 
st Maine Legislature 
Office of Fiscal and Program Review 
LD 1378 
An Act to Provide Financing Relief for Maine Dairy Farmers 
LR 2012(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Agriculture, Conservation and Forestry 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - General Fund 
Current biennium savings - General Fund 
2002-03 
2003-04 
2004-05 
Projections 
2005-06 
Projections 
2006-07 
$0 
$0 
$1,400,000 
$0 
$0 
$0 
$4,800,000 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
As amended, this bill includes General Fund deappropriations for the Department of Agriculture, Food and Rural 
Resources which total $463,087 in fiscal year 2002-03. The bill also includes a General Fund appropriation of 
$463,087 in fiscal year 2002-03 to the department for funds which will be transferred to the Maine Milk Pool and then 
distributed to dairy farmers. The net effect to the General Fund for fiscal year 2002-03 is $0. As amended, this bill 
also includes Other Special Revenue funds allocations for the department to allow distribution offunds to dairy 
fanners; the amounts are $1,400,000 and $4,800,000 in fiscal years 2002-03 and 2003-04, respectively. Finally, it 
also authorizes the transfer ofa total of$36,913 in fiscal year 2002-03 from 3 Other Special Revenue accounts within 
the department to the Maine Milk Pool Other Special Revenue account. 
LR2012(2) - Fiscal Note - Page 1 of 1