New York Codes, Rules and Regulations › Title 1 - DEPARTMENT OF AGRICULTURE AND MARKETS › Chapter I - Milk Control › Subchapter B - Milk Control Orders › Part 43 - Implementation Of Milk Producers Security Law › Section 43.6 - Operation of producers security fund

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Annually, and at such other times as he
				  deems appropriate, the commissioner shall determine the amount of money to be
				  accumulated in the producers security fund sufficient to protect the interests
				  of producers in accordance with section 258-b(4)(b) of the law. The
				  commissioner's determination shall be promptly announced to milk dealers
				  participating in the producers security fund.
(b) Each milk dealer who participates in the
				  producers security fund shall on or before the 25th day of each month make
				  payment to the commissioner, at the rate per hundredweight announced for the
				  fiscal year pursuant to section 258- b(3)(a) of the law or at such lesser rate
				  as may be established pursuant to section 258-b(3)(b) of the law, on all milk
				  purchased, received or handled from producers during the preceding month. Such
				  payment shall be reduced by the amount of any credit the commissioner issues to
				  the milk dealer pursuant to subdivision (f) of this section applying to such
				  monthly payment and the balance payable shall be considered the dealer's net
				  monthly payment to the fund. The amount of a milk dealer's required net monthly
				  payment to the producers security fund may be increased by one percent for each
				  month or portion thereof that such payment is received after the due date.
				  Notwithstanding the payment of late charges, the commissioner may take such
				  action against the milk dealer for late payment as he deems appropriate
				  pursuant to the law.
(c) The
				  balance in the producers security fund shall be determined monthly by the
				  commissioner, including any interest credited to the fund and allowing for
				  payments from the fund for the expense of administration, withdrawals by milk
				  dealers who terminate their participation therein, any credits issued or paid
				  from the fund, claims paid from the fund not reimbursed by the defaulting milk
				  dealer and any amounts the commissioner has reason to believe will be paid from
				  the fund as a result of pending claims.
(d) An account shall be maintained by the
				  commissioner for each milk dealer who participates in the producers security
				  fund, showing his initial and net monthly payments to the fund and any cash
				  credits or rebates received from the fund.
(e) Each milk dealer's percentage (pro rata)
				  share of the balance in the producers security fund to be computed by the
				  commissioner at the close of each calendar quarter shall be his total net
				  payments to date less any rebates or other cash credits he has received from
				  the fund divided by the total of such payments less rebates and cash credits of
				  all dealers participating in the fund at the close of such calendar quarter;
				  provided that:
(1) Any milk dealer who has
				  defaulted in paying producers or a producer settlement or equalization fund for
				  an order promulgated under section 258-m or 258-n of the law for which a claim
				  or claims have been paid or there is reason to believe will be paid from the
				  producers security fund, and has not promptly reimbursed the fund in full for
				  such claim or claims, shall have his percentage share of the balance in the
				  fund reduced to the extent of all such claims.
(2) Any milk dealer who fails to make payment
				  to the producers security fund in accordance with subdivision (b) of this
				  section shall have his percentage share of the balance in the fund reduced to
				  the extent of such delinquent payments.