FOR IMMEDIATE RELEASE
May 18, 2004
Contact:  Erin K. Kelly
(717) 846-2828
ekelly@pasen.gov
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Senate Agriculture Committee Meets; Passes Bill to Amend Milk Producers' Security Act

Resolution Designating May as Beef Month in PA Approved by Committee and Senate

HARRISBURG – Sen. Mike Waugh (R-York), Chairman, convened a meeting of the Senate Agricultural and Rural Affairs Committee this afternoon to consider Senate Bill 1113, which calls for an amendment to the Milk Producers' Security Act, as well as Senate Resolution 253, designating May 2004, as "Beef Month in Pennsylvania."

SB 1113, sponsored by Sen. Roger Madigan, amends the Milk Producers' Security Act of 1984, to enhance the protection the Act provides for Pennsylvania milk producers by requiring new dealers to post a bond with the PA Milk Marketing Board. The bond must be equal to 75% of the highest aggregate amount owed by the dealer to producers for a 40-day period during the preceding 12 months.

Current law provides milk dealers with two options – one being the 75% bond or to file a bond equal to 30% of the highest amount owed plus pay monthly, 2 cents per hundredweight (based on all milk purchased from producers during the prior month) into the Milk Producers' Security Fund.

SB 1113, however, calls for no new participation in the 30% bond/security fund option, although current participants in the security fund are permitted to continue with this option.

"Overall, these changes are simply for the benefit of milk producers in the event a dealer finds himself with financial difficulties and unable to make their payments," said Waugh.

Additionally, this legislation authorizes the Board to exercise discretion to require a milk dealer to increase its bond during the license year based on changes in the amount of milk it is buying or changes in milk prices. The bill also gives the Board discretion to require a larger bond based on a milk dealer's financial condition.

The Committee also passed Senate Resolution 253 during its meeting this afternoon. SR 253, sponsored by Senator Noah Wenger, designates May 2004, as "Beef Month in Pennsylvania."

SB 1113 now goes to the full Senate for consideration; SR 253 was adopted this afternoon by the Senate following the Committee meeting.