An Act To Raise Benefits for Farmers under the Milk Subsidy Program and To Prevent Price Gouging in I the Sale of Milk I 2
Maine Legislature, Session 123, LD 0852
Committee Amendment CA_B_S140 (Senate)
Amends: 7 MRSA §2954-D, 7 MRSA §3153-B

Minority 
COMMITTEE AMENDMENT" B" to S.P. 262, L.D. 852, Bill, "An Act To Raise 
Benefits for Farmers under the Milk Subsidy Program and To Prevent Price Gouging in 
I 
the Sale of Milk" 
I 2 
Amend the bill by striking out the title and substituting the following: 
'An Act To Adjust the Levels of the State's Dairy Stabilization Program and 
To Prevent Price Gouging in the Sale of Milk' 
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 
I 8 
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 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,' 
Amend the bill by striking out all of section 1 and inserting in its place the following: 
COMMITTEE AMENDMENT 
.,. 
", . 
COMMITTEE AMENDMENT" 8 " to S.P. 262, L.D. 852 
'Sec. 1. 7 MRSA §2954-D is enacted to read: 
§2954-D. Excessive retail pricing 
( 
1. Definition. For the purposes of this section, "supermarket" means a retail store 
that has more than 30,000 square feet of floor space open to the public and is owned by a 
company owning more than 10 retail stores within the State. 
2. Prohibition. A supermarket may not sell or offer to sell fluid milk for a price that 
exceeds 275% ofthe basic price of milk as defined in Title 36, section 4901. 
3. Penalty. In addition to the provisions for injunction and civil penalties under 
section 2959, a person who violates subsection 2 is subject to a civil penalty that equals 
the amount by which the price exceeded 275% of the basic price of milk multiplied by the 
number of sales made by the supermarket at the prohibited price. The commission shall 
collect all penalties imposed under this subsection and deposit them in the Dairy Price 
Support Program Fund established under section 2964. 
4. Exception. This section does not apply to sales of organic milk.' 
Amend the bill by striking out all of sections 3 and 4 (page 1, lines 25 to 34 and page 
2, lines 1 and 2 in L.D.) and inserting the following: 
'Sec. 3. 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. 4. Interim target prices. Beginning July 1, 2007 and until the Maine Milk 
Commission updates the State's 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.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" 13" to S.P. 262, L.D. 852 
SUMMARY 
This amendment is the minority report. It changes the threshold for excessive retail 
pricing to be above 275% of the basic price of milk that is above the price.1"eceived by 
farmers, instead of the 10% above the minimum retail price as in the bill. The prohibition 
on excessive pricing applies to retail stores meeting the definition of "supermarket." 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 REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/21107 ;!Pac 
LD852 
LR 1410(03) 
An Act To Raise Benefits for Farmers under the Milk Subsidy Program and To Prevent Price Gougi 
in the Sale of Milk 
Fiscal Note for BiII as Amended by Committee Amendment "8 " 
Committee: Agriculture, Conservation and Forestry 
Net Cost (Savings) 
General Fund 
Transfers 
General Fund 
Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
Establishes new civil violations. 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
($2,507,900) 
$2,507,900 
($2,507,900) 
2008-09 
($2,049,525) 
$2,049,525 
($2,049,525) 
Projections 
2009-10 
($2,049,525) 
$2,049,525 
($2,049,525) 
The collection of additional fines may also increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Projecti< 
2010· 
($2,049,5: 
$2, 
,5: 
($2,049,5:
Changes in the target prices for the Milk Subsidy Program will decrease the amount of General Fund revenue which 
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(03) - Fiscal Note - Page 1 of 1