§ 256-B — Accounting of milk dealers and cooperatives to producers

§ 256-b. Accounting of milk dealers and cooperatives to producers. 1.\nFor purposes of this section, any corporation or association of persons\nengaged in the production of agricultural products and operating for the\nmutual benefit of its members in conformity with the requirements of the\nCapper-Volstead Act, and any federation of such corporations or\nassociations, shall be deemed to be a cooperative.\n 2. Every milk dealer and cooperative, subject to license or regulation\nunder this article, in making payments to producers for milk sold or\ndelivered to such dealer or cooperative, shall clearly set forth the\nunit price for such milk, whether determined pursuant to federal or\nstate market order or pursuant to agreement, together with the amount of\nall premiums, subsidies or differentials, all deductions, service fees,\nhauling charges, supply expenses, costs or adjustments of any nature\nwhatsoever, in such a manner as to fully disclose to the producer the\nrate, basis and manner of computing such payment.\n 3. Each cooperative subject to license or regulation pursuant to this\narticle shall, prior to its annual meeting, mail or personally deliver a\ncopy of a written report of audit, prepared in the form and manner\nprescribed under section seventy-five of the cooperative corporations\nlaw, to each member of the cooperative and to individual producer\nmembers of any constituent cooperatives. The printing of such report in\na publication regularly distributed to the cooperative's entire\nmembership shall satisfy the delivery requirement.\n 4. Each milk producer who applies for membership in such a cooperative\nshall, prior to issuance of a membership certificate or entry into a\nmilk marketing agreement with the cooperative, be provided with the\nfollowing documents of such cooperative and of any federation of\ncooperatives of which it is a member: (a) a copy of the cooperative's\nwritten report of audit required to be provided to the cooperative's\nmembership, pursuant to subdivision three of this section, for the\nfiscal year preceding the date of such application; (b) a copy of the\ncertificate of incorporation; (c) a copy of the bylaws in effect at the\ntime of such producer's application for membership; and (d) a written\nstatement of the current equity requirements and policy on the\nallocation of net margins and losses.\n 5. The commissioner may make or permit disclosure of a written report\nof audit made pursuant to subdivision three of this section for any\ncooperative subject to license or regulation pursuant to this article.\n 6. The commissioner may promulgate rules and regulations necessary to\nassure such uniform requirements as will carry out the provisions of\nthis section.\n