An Act To Reestablish the Milk Handling Fee
Maine Legislature, Session 122, LD 1432
Committee Amendment CA_A_H602 (House)
Amends: 7 MRSA §2954, 36 MRSA §191

COMMITTEE AMENDMENT "A" to H. P. 996, L.D. 1432, Bill, "An 
Act To Reestablish the Milk Handling Fee" 
Amend the bill by inserting after the title and before the 
enacting clause the following: 
'Emergency preamble. Whereas, acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the milk handling fee provided significant revenue 
to the State when it was in effect; and 
Whereas, the State is experiencing economic difficulties and 
significant fiscal problems; and 
Whereas, revenues are necessary to the State's ability to 
address issues vital to the well-being of the State; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore,' 
Further amend the bill by striking out all of section 3 and 
inserting in its place the following: 
Page l-LR1769(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,,4· to H.P. 996, L.D. 1432 
'Sec. 3. 7 MRSA §2954, sub-§13, as amended by PL 1995, c. 2, 
§3, is repealed. 
Sec. 4. 7 MRSA §2954, sub-§16 is enacted to read: 
16. 
Initial notification and subsegyent reports to State 
Tal[ Assessor. The Maine Milk Commission shall notify the State 
Tax Assessor the first time after May 
L 
2005 that the basic 
price of milk as defined in Title 36, section 4901, subsection 1 
is 
below 
$18 
for 
consecutive 
months. 
After 
initial 
notification, the Maine Milk Commission shall report before the 
first of each month to the State Tax Assessor the basic price of 
milk established for that month in Title 36, chapter 721. 
Sec. 5. 36 MRSA §191, sub-§2, 1fBB, as amended by PL 2003, c. 
668, §9 and affected by §12 and amended by c. 689, Pt. B, §6, is 
further amended to read: 
BB. 
The disclosure to an authorized representative of the 
Department of Health and Human Services, Office of Head 
Start 
and 
Child 
Care 
of 
taxpayer 
information 
directly 
relating to the certification of investments eligible for or 
the eligibility of a taxpayer for the quality child care 
investment credit provided by section 5219-Q; aRa 
Sec. 6. 36 MRSA §191, sub-§2, 1fCC, as enacted by PL 2003, c. 
668, §10 and affected by §12, is amended to read: 
CC. 
The disclosure to an authorized representative of the 
Department 
of 
Professional 
and 
Financial 
Regulation 
of 
information necessary for the administration of Title 10, 
chapter 222T~ 
Sec. 7. 36 MRSA §191, sub-§2, 1fDD is enacted to read: 
DD. 
The disclosure to an authorized representative of the 
Maine Milk Commission of information on the quantity of 
packaged milk handled in the State and subject to the milk 
handling 
fee 
established 
in 
section 
4902 
and 
other 
information obtained by the assessor in the administration 
of chapter 721.' 
Further amend the bill in section 4 in that part designated 
"§4901." by inserting before subsection 1 the following: 
. 1. 
Basic price. 
"Basic price" 
means the minimum Class I 
price of milk established pursuant to Title 7, 
chapter 
including that part of 
the 
Class 
I 
price that exceeds 
the 
applicable Class I 
price established pursuant to the northeast 
marketing area milk marketing order, but does not include that 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A .. to H.P. 996, L.D. 1432 
part 
of 
the 
Class 
I 
price 
established 
by 
the 
Maine 
Milk 
Commission to reflect the cost factors provided in Title 7, 
section 2954, subsection 2 or the increased costs of production 
pursuant to Title 7, section 2954, subsection 2, paragraph A.' 
Further amend the bill in section 4 in that part designated 
"§4901." in subsection 2 in the last line (page 2, line 27 in 
L.D.) by inserting after the following: 
"none," the following: 
'the producer-handler or' 
Further amend the bill in section 4 in that part designated 
"§4901." by inserting after subsection 5 the following: 
'6. Producer-handler. 
"Producer-handler" means a person who 
produces milk and packages that milk or part of that milk for 
retail sale eitner by that person or by another retail handler.' 
Further amend the bill in section 4 in that part designated 
"§4901." by renumbering the subsections to read consecutively. 
Further amend the bill in section 4 in that part designated 
"§4902." 
in subsection 1 
by striking out all of the first 
sentence (page 3, lines 3 to 5 in L.D.) and inserting in its 
place 
the 
following: 
'Upon 
notification by 
the 
Maine 
Milk 
Commission in accordance with Title 7, section 2954, subsection 
16, 
the assessor shall levy 
and 
impose 
a 
fee 
at the rate 
established in subsection 2 on the handling in this State of 
packaged milk for sale in this State.' 
Further amend the bill in section 4 in that part designated 
"§4902." by striking out all of subsection 2 and inserting in its 
place the following: 
'2. 
Rate. 
The rate of the fee levied under this chapter is 
established for each fee period on the basis of the basic price 
of milk in effect on the Sunday following the first Sunday of the 
fee period in accordance with the following: 
A. 
If the basic price is $18.50 per hundredweight and 
above, the rate of the milk handling fee is O¢ per gallon; 
B. 
If 
the 
basic 
price 
is 
$18.00 
to 
$18.49 
per 
hundredweight. the rate of the milk handling fee is Ii per 
gallon; 
C. 
If 
the 
basic 
price 
is 
$17.50 
to 
$17.99 
per 
hundredweight, the rate of the milk handling fee is 2i per 
gallon; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A, to H.P. 996, L.D. 1432 
D. 
If 
the 
basic 
price 
is 
$17.00 
to 
$17.49 
per 
hundredweight. the rate of the milk handling fee is 4t per 
gallon; 
E. 
If 
the 
basic 
price 
is 
$16.50 
to 
$16.99 
per 
hundredweight, the rate of the milk handling fee is 8t per 
gallon; 
F. 
If 
the 
basic 
price 
is 
$16.00 
to 
$16.49 
per 
hundredweight, the rate of the milk handling fee is lOt per 
gallon; and 
G. 
If the basic price is below $16.00 per hundredweight. 
the rate of the milk handling fee is l2t per gallon. 
For any container other than a gallon, the fee is computed on a 
gallon-equivalent basis. ' 
Further amend the bill in 
subsection 3 in the 3rd line 
inserting after the following: 
either' 
that part designated "§4902." in 
(page 
3, 
line 
in L.D.) 
by 
"period" the following: 
'and are 
Further amend the bill in that part designated "§4902." in 
subsection 5 in the 4th line (page 3, 
line 43 
in L.D.) 
by 
striking out the following: 
"and annually thereafter" 
Further amend the bill in that part designated "§4902." in 
subsection 5 in the last line (page 4, 
line 
in L.D.) 
by 
inserting after 
the 
following: 
"~" the 
following: 
'The 
assessor may share information with the Maine Milk Commission in 
accordance with section 191, subsection 2, paragraph DD.' 
Further amend the bill in that part designated "§4902." by 
striking out all of subsection 9 and inserting in its place the 
following: 
'9. 
Exception. 
A producer-handler who sells less than 
10,000 hundredweight per year is not subject to the fee imposed 
under subsection 1.' 
Further amend the bill by striking out all of section 6 and 
inserting in its place the following: 
'Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved.' 
Further amend the bill by relettering 
nonconsecutive 
Part 
letter 
or 
section 
consecutively. 
or renumbering any 
number 
to 
read 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .~. to H.P. 996, L.D. 1432 
SUMMARY 
This amendment adds an emergency. 
It establishes a 
rate 
schedule that varies inversely with the price of milk and a 
trigger for initiating the fee. 
The handling fee is initiated 
after the basic price of milk falls below $18 per hundredweight 
for 2 consecutive months. 
It adds definitions to the bill for 
"basic price" and "producer-handler." 
It provides an exception 
from the fee for producer-handlers who sell less than 10,000 
hundredweight per year. 
It allows the State Tax Assessor to 
share 
information with 
the 
Maine 
Milk 
Commission. 
It also 
removes the provision relating to funding for the Maine Farms for 
the Future Program. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Approved: 05127/05 ;t;yac:.. 
LD 1432 
LR 1769(02) 
An Act To Reestablish the Milk Handling Fee 
Fiscal Note for Bill as Amended by Committee Amendment "A, 
Committee: Agriculture, Conservation and Forestry 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2005-06 
2006-07 
2007-08 
($1,190,000) 
($1,300,000) 
($1,300,000) 
Projections 
2008-09 
($1,300,000) 
Appropriations/Allocations 
General Fund 
$10,000 
$0 
$0 
$" 
Revenue 
General Fund 
$1,200,000 
$1,300,000 
$1,300,000 
$1,300,000 
Fiscal Detail and Notes 
The Milk Handling Fee may increase General Fund Revenue by an estimated $1,200,000 in fiscal year 2005-06 and 
$1,300,000 in fiscal year 2006-07. The actual amount of additional revenue may vary greatly from these estimates 
since the handling fee imposed is required to range from 0 cents per gallon to 12 cents per gallon depending on the 
price of milk, a variable that is difficult to predict with any certainity. This bill also includes a $10,000 General Fund 
appropriation in fiscal year 2005-06 for the initial additional costs to Maine Revenue Services. 
LR1769(2) - Fiscal Note - Page 1 of 1