An Act To Save Maine Dairy Farms
Maine Legislature, Session 121, LD 0738
Committee: Agriculture, Conservation and Forestry
Sponsors: McKEE, BRYANT, EDER, FAIRCLOTH, PINEAU, PIOTTI, SA VIELLO, SMITH, THOMPSON, TWOMEY
Amends: 7 MRSA §2951, 7 MRSA §2953

Legislative Document 
No. 738 
H.P.544 
House of Representatives, February 14, 2003 
An Act To Save Maine Dairy Farms 
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
Presented by Representative McKEE of Wayne. 
Cosponsored by Senator BRYANT of Oxford and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: EDER of Portland, FAIRCLOTH of Bangor, PINEAU of Jay, PIOTTI of 
Unity, SA VIELLO of Wilton, SMITH of Monmouth, THOMPSON of China, TWOMEY of 
Biddeford. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 7 MRSA §2951. sub-§§9-A and 9-B are enacted to read: 
9-A. Rate of return. 
"Rate of return" in connection with 
retail sales means the profit to the retail store per unit of 
milk sold expressed as a percent of the retail unit price. 
The 
rate of return for a retail sale is calculated by subtracting the 
sum of the unit price paid by the retail store to the dealer and 
the retail margin from the retail price, dividing this number by 
the retail price and multiplying by 100 to express rate as 
a 
percent. 
9-5. 
Retail margin. 
"Retail 
margin" 
means 
the 
minimum 
amount that a retail store must add to the cost of a container of 
milk to cover the retailer's direct and indirect costs associated 
with making a container of milk available for retail sale. 
Sec. 2. 7 MRSA §2953, sub-§4-A is enacted to read: 
4-A. Retail margin. rate of return. 
As to the cost of milk 
to a retail store as defined in section 2985, the retail margin 
and a just and reasonable rate of return to the retail store for 
the sale of milk; and 
Sec. 3. 7 MRS A §2954-D is enacted to read: 
§2954-D. 
Maximum rate of return allowed retail stores 
1. Establishment of maximum allowed rate of return. 
The 
commission shall establish a maximum allowed rate of return to a 
retail store for the sale of milk. 
The maximum allowed rate of 
return may not be less than the rate of return considered just 
and 
reasonable 
for 
establishing 
minimum 
retail prices 
under 
section 
2954. 
The 
commission shall calculate 
and 
apply 
the 
maximum allowed rate of return on a per-unit basis. 
2. Publication of rate and prices. 
The 
commission shall 
publish the maximum allowed rate of return together with minimum 
retail prices whenever the maximum allowed rate of return or a 
minimum retail price changes. 
3. Records. 
The owner or manager of a retail store shall 
keep records of prices paid to dealers and prices charged to 
consumers for milk offered for sale at that owner's or manager's 
retail store. 
The records must include: 
A. 
The total quantity of each consumer unit purchased from 
each dealer and the address of each dealer supplying milk to 
the retail store; 
Page l-LR1368(1) 
B. 
Each price charged for a consumer unit of milk offered 
for sale at the retail store; and 
c. 
Other 
information 
reguired 
by 
rules 
adopted 
under 
section 2953. 
For purposes of this subsection, 
a "consumer unit of milk" means 
a specific volume of milk sold under a specific brand name. 
4. Reports. 
By the first day of each month, the owner or 
manager of a retail store that sells more than 100 guarts of milk 
a day or the eguivalent of more than 100 guarts of milk a day 
shall submit a report to the commission on a form designed by the 
commission to provide the information reguired under subsection 3 
for the previous month. 
5. 
Action by commission. 
When the commission determines 
that a retail store is realizing a rate of return on the retail 
sale of milk in excess of the maximum allowed rate of return, the 
commission may order the retail store to lower the price of 
milk. 
A person who violates this subsection is subject to the 
injunctions and penalties provided in section 2959. 
SUMMARY 
This bill directs the Maine Milk Commission to establish a 
maximum 
rate 
of 
return 
for 
the 
retail 
sale 
of 
milk. 
The 
commission may order a retail store to lower its prices when the 
commission determines that the maximum rate of return has been 
exceeded. 
It requires the owner or manager of a retail store to 
keep certain records 
and requires 
the 
owner or manager of 
a 
retail store with daily sales in excess of 100 quarts of milk a 
day to submit monthly reports to the commission.