An Act To Raise Benefits for Fanners under the Milk Subsidy Program and To Prevent Price Gouging in I I the Sale of Milk
Maine Legislature, Session 123, LD 0852
Committee Amendment CA_A_S139 (Senate)
Amends: 7 MRSA §3153-B

Majority 
COMMITTEE AMENDMENT" A " to S.P. 262, L.D. 852, Bill, "An Act To Raise 
Benefits for Fanners under the Milk Subsidy Program and To Prevent Price Gouging in 
I I 
the Sale of Milk" 
Amend the bill by striking out thetitIe and substituting the following: 
'An Act To Adjust the Levels of the State's Dairy Stabilization Program' 
Amend the bill by inserting after the title and before the enacting clause the 
following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Maine dairy industry is essential to the State's rural economy and 
communities, generates business activity and preserves open space; and 
Whereas, the stabilization of the dairy industry during temporary price drops 
constitutes a public purpose and an appropriate expenditure of state revenues; and 
Whereas, the tiered dairy stabilization program has been successful in curbing the 
loss of dairy farms in the State; and 
Whereas, the target prices in the tiered program need to be revised to reflect 
updated cost-of-production studies; and 
Whereas, in the judgment ofthe 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,' 
Amend the bill by striking out everything after the enacting clause and before the 
I 
summary and inserting the following: 
COMMITTEE AMENDMENT 
t'. " ,. 
COMMITTEE AMENDMENT "A " to S.P. 262, L.D. 852 
'Sec. 1. 7 MRSA §3153-B, sub-§3, as amended by PL 2005, c. 382, Pt. F, §34, is 
further amended to read: 
3. Determination of target prices. The Maine Milk Commission shall establish 3 
tiers of production, each representing a range of annual production. The commission 
shall use the most recent studies conducted in accordance with section 2952-A, 
subsection 3, paragraph A to estimate the short-run break-even point within each tier. 
The Maine Milk Commission may establish and amend target prices through rulemaking. 
Rules adopted pursuant to this subsection are major substantive rules as defined in Title 
5, chapter 375, subchapter 2-A. 
Sec. 2. Interim target prices. Beginning July 1, 2007 and until the Maine Milk 
Commission updates the Maine producer cost-of-production data and calculates new 
target prices in accordance with the Maine Revised Statutes, Title 7, section 3153-B, 
subsection 3, the target prices for milk producers in the State are as follows: 
1. For the first 21,355 hundredweight produced per year by each producer, the target 
price is $20.70 per hundredweight; 
2. For production from 21,356 hundredweight to 49,079 hundredweight per year, the 
target price is $18.07 per hundredweight; and 
3. For production in excess of 49,079 hundredweight per year, the target price is 
$17.29 per hundredweight. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment is the majority report. It removes the sections of the bill relating to 
retail pricing of milk. It removes proposed changes to the definition of "target price," 
authorizes the Maine Milk Commission to establish and amend target prices through 
major substantive rulemaking and, beginning July 1, 2007, establishes interim target 
prices that may be changed through adoption of major substantive rules. 
FISCAL NOTE REQU1RED 
(See AUached) 
COMMITTEE AMENDMENT 
Approved: OS/21107 .:tPae 
LD852 
LR 1410(02) 
~ , 
An Act To Raise Benefits for Farmers under the Milk Subsidy Program and To Prevent Price Gouging 
in the Sale of Milk 
Net Cost (Savings) 
General Fund 
Transfers 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment '0 " 
Committee: Agriculture, Conservation and Forestry 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
($2,507,900) 
2008-09 
($2,049,525) 
Projections 
2009-10 
($2,049,525) 
Other Special Revenue Funds 
$2,507,900 
($2,507,900) 
$2,049,525 
($2,049,525) 
$2,049,525 
($2,049,525) 
Fiscal Detail and Notes 
Projections 
2010-11 
($2,049,525) 
$2,049,525 
($2,049,525) 
Changes in the target prices for the Milk Subsidy Program will decrease the amount of General Fund revenue which is 
transferred to the Maine Milk Pool. The estimated decreases are $2,507,900 and $2,049,525 in fiscal years 2007-08 
and 2008-09, respectively. 
LR141O(02) - Fiscal Note - Page 1 of 1