Pennsylvania Act 1937-105 — "MILK MARKETING LAW"

Act text

AN ACT

Relating to milk and the products thereof; creating a Pennsylvania Milk Board; establishing its jurisdiction, powers and duties; regulating the production, transportation, manufacturing, processing, storage, distribution, delivery and sale of milk and certain products thereof; providing for the licensing of milk dealers and the payment of fees therefor; requiring milk dealers to file bonds to secure payment for milk to producers and certain milk dealers; authorizing the holding of hearings and the issuance of subpoenas by the board; conferring jurisdiction upon courts to punish contempts and to prohibit violations of this act and of rules, regulations and orders of the board; authorizing the board to adopt rules, regulations and orders, and to enter into interstate and Federal compacts; requiring persons who weigh, measure, sample or test milk to procure permits or certificates, to take examinations, to pay fees therefor, to furnish certain notices, records and statements, and to use certain methods of weighing, measuring, sampling and testing; authorizing the board to examine the business, papers and premises of milk dealers and producers, requiring the keeping of records and the filing of reports by milk dealers, and permitting, with limitations, the use of information obtained thereby; authorizing the board to fix prices for milk and certain milk products subject to the approval of the Governor, and conferring certain powers upon the Governor with respect thereto; providing for appeals to the courts from decisions of the board, and for the burden of proof upon such appeals; prescribing penalties, fines and imprisonment for violations of this act and rules, regulations and orders of the board; defining perjury; defining remedies; repealing legislation supplied and superseded by this act, and saving rights, duties and proceedings thereunder; and making appropriations. (Title amended Nov. 6, 2023, P.L.161, No.25)

Compiler's Note: Section 5 of Act 25 of 2023 provided that a reference in any other act or regulation to the Milk Marketing Board shall be deemed to be a reference to the Pennsylvania Milk Board.

WHEREAS, The production, sale and distribution of milk and certain milk products in this Commonwealth, are attendant with serious conditions affecting milk producers, milk dealers and consumers of milk, the following legislative findings of fact with respect thereto are hereby made:

1. Milk is the most necessary human food, vital for promotion of the public health and for development of strength and vigor in the race. It is a most fertile field for the growth of bacteria, and therefore its production and distribution have been surrounded by more costly sanitary requirements than those of any other commodity in this, the third greatest milk producing and consuming state of the nation.

2. Milk consumers are not assured of a constant and sufficient supply of pure, wholesome milk unless the high cost of maintaining sanitary conditions of production and standards of purity is returned to the producers of milk. If this is not done, large numbers dispose of their herds or engage in milk strikes, and remaining producers supply unhealthful milk or milk of lower quality because of financial inability to comply with sanitary requirements and to keep vigilant against contamination. Public health is menaced when milk dealers do not or cannot pay a price to producers commensurate with the cost of sanitary production, or when consumers are required to pay excessive prices for this necessity of life.

3. Milk dealers must handle constant surpluses to meet the emergency requirements of normal variations in fluid consumption and to meet seasonal variations in production, which amounts in excess of fluid requirements must find a market in fluid use or in manufacture, and tend to demoralize the industry. Only one per centum of the milk dealers of the Commonwealth handle over sixty per centum of the milk sold by producers to dealers; and persons have often combined privately to establish practices or fix prices to the detriment of producers or consumers.

4. Milk producers must make delivery of their highly perishable commodity immediately after it is produced, and must generally accept any market at any price. Under the utilization method of payment prevailing in the milk industry, particularly in cities, the value of this market is unknown until the milk dealer sells the fluid milk and uses or disposes of the surplus. Furthermore, only the dealers have facilities for accurately weighing and testing milk. This knowledge of weights, tests and uses is in the exclusive possession of the dealer. The producers' lack of control over their market is aggravated by the trade custom of dealers in paying weeks after delivery, keeping producers obligated to continue delivery in order to receive payment for previous sales, and permitting dealers to operate on the producers' capital without giving security therefor. Hence, milk producers are subject to fraud and imposition, and do not possess the freedom of contract necessary for the procuring of cost of production.

WHEREAS, Public control of the milk industry in recent years is stabilizing the conditions therein, and a relaxation of control will cause a return to the unhealthful, uneconomic, deceptive and destructive practices of the past with respect to this paramount industry upon which the health and welfare of the Commonwealth largely depends; and

WHEREAS, It is necessary to preserve and promote the strength and vigor of the inhabitants of this Commonwealth, to protect the public health and welfare, and to prevent fraud and imposition upon consumers and producers by continuing to treat the production, transportation, manufacture, processing, storage, distribution, and sale of milk in the Commonwealth of Pennsylvania as a business affecting the public health and affected with a public interest.

Be it enacted, &c., As follows:

TABLE OF CONTENTS

ARTICLE I. PURPOSE, SHORT TITLE, DEFINITIONS.

Section 101. Legislative Purpose.

Section 102. Short Title.

Section 103. Definitions; Construction.

ARTICLE II. ORGANIZATION OF THE BOARD.

Section 201. Appointment and Terms of Members;

Quorum.

Section 202. Qualifications and Salaries.

Section 203. Secretary; Administrative Code.

Section 204. Bureau of Consumer Affairs.

ARTICLE III. GENERAL POWERS OF THE BOARD.

Section 301. Regulation of Milk Industry.

Section 302. Specific Powers not Impairment

of General Powers.

Section 303. Official Seal; Evidence.

Section 304. Hearings; Witness Fees.

Section 305. Subpoenas; Oaths.

Section 306. Contempt.

Section 307. Adoption of Rules, Regulations

and Orders.

Section 308. Posting and Service of Rules,

Regulations and Orders.

Section 308.1. Summary of Financial Statement.

Section 309. Certification of Rules,

Regulations and Orders. (Repealed)

Section 310. Entry and Inspection.

Section 311. Interstate and Federal Compacts.

ARTICLE IV. LICENSES OF MILK DEALERS.

Section 401. Milk Dealers or Handlers Required

to Be Licensed.

Section 402. Milk Dealers or Handlers Subject

to Exemption.

Section 403. Applications.

Section 404. Grounds for Refusal, Suspension or Revocation.

Section 404.1. Penalties in Lieu of Suspension.

Section 405. Hearings and Orders.

Section 406. Cancellation.

Section 407. Transfer.

Section 408. License Fees Generally. (Repealed)

Section 409. License Fees of Certain Milk

Dealers. (Repealed)

Section 410. Computation of License Fees. (Repealed)

Section 411. Classification of Licenses.

ARTICLE V. BONDS OF MILK DEALERS.

Section 501. Milk Dealers or Handlers Required

to File Bonds. (Repealed)

Section 502. Computation of Amount of Certain

Bonds. (Repealed)

Section 503. Time of Filing; Effective Period

of Bond. (Repealed)

Section 504. Requisites of Bonds; Substitution. (Repealed)

Section 505. Financial Statement. (Repealed)

Section 506. Increase or Decrease of Bond. (Repealed)

Section 507. Duty of State Treasurer. (Repealed)

Section 508. Interest or Dividends upon

Securities. (Repealed)

Section 509. Suit by Board. (Repealed)

Section 510. Effect of Order by Board. (Repealed)

Section 511. Procedure for Disbursing Proceeds. (Repealed)

Section 512. Cooperatives. (Repealed)

Section 513. Subdealers' or Subhandlers' Bonds.

ARTICLE V.1. MILK HAULERS.

Section 550. Licensing of Milk Haulers.

Section 551. Refusal, Suspension or Revocation

of License.

Section 552. Records and Reports.

Section 553. Employed Weighers and Samplers.

ARTICLE VI. WEIGHING AND TESTING.

Section 601. Weighing or Measuring Permits. (Repealed)

Section 602. Certified Testers.

Section 603. Certified Weighers and Samplers.

Section 604. Refusal, Suspension and Revocation

of Permits and Certificates.

Section 605. Transfer.

Section 606. Samples; Check Tests.

Section 607. Violations.

Section 608. Payment for Milk; Statement.

ARTICLE VII. RECORDS, REPORTS AND INFORMATION.

Section 701. Records.

Section 702. Reports.

Section 703. Dissemination of Information;

Conferences.

Section 704. Uniform System of Accounts.

ARTICLE VIII. PRICES OF MILK.

Section 801. Requisites of Orders Fixing

Price of Milk.

Section 802. Wholesale and Retail Prices.

Section 803. Prices to Producers.

Section 804. Classification.

Section 805. Price Increases.

Section 806. Terms and Method of Payment.

Section 807. Violations.

Section 808. Prices of Certain Milk.

Section 809. Cooperatives.

ARTICLE IX. APPEALS AND REVIEW.

Section 901. Appeals from General Orders.

Section 902. Appeals from Special Orders.

Section 903. Supersedeas. (Repealed)

Section 904. Pleading and Service. (Repealed)

Section 905. Certification of Records. (Repealed)

Section 906. Scope of Inquiry. (Repealed)

Section 907. Costs. (Repealed)

Section 908. Jurisdiction of Superior and

Supreme Courts. (Repealed)

ARTICLE X. PENALTIES AND REMEDIES.

Section 1001. Summary Offenses.

Section 1002. Misdemeanors.

Section 1003. Actions to Enforce Compliance.

Section 1004. Application for Injunction; Remedies.

Section 1005. Proceedings Before the Board.

Section 1006. Perjury.

ARTICLE XI. MONEYS AND EXPENSES OF BOARD.

Section 1101. Milk Marketing Fund.

Section 1102. Expenses.

Section 1103. Refunds.

Section 1104. Payment.

Section 1105. Miscellaneous Fees. (Repealed)

Section 1106. Appropriations. (Repealed)

ARTICLE XII. SAVING PROVISIONS.

Section 1201. Severability.

Section 1202. Interstate Commerce.

Section 1203. Effect upon Proceedings, Duties

and Rights under Other Acts of Assembly.

Section 1204. Joint Study Committee (Repealed).

ARTICLE XIII. REPEALS AND EFFECTIVE DATE.

Section 1301. Acts Specifically Repealed.

Section 1302. Effective Date.

ARTICLE I

PURPOSE, SHORT TITLE, DEFINITIONS

Section 101. Legislative Purpose.--In the exercise of the police power of the Commonwealth, it is hereby declared that the production, transportation, manufacture, processing, storage, distribution, and sale of milk in the Commonwealth is a business affecting the public health and affected with a public interest, and it is hereby declared that this act shall be and is hereby enacted for the purpose of regulating and controlling the milk industry in this Commonwealth, for the protection of the public health and welfare and for the prevention of fraud.

Section 102. Short Title.--This act shall be known, and may be cited, as the "Milk Marketing Law."

(102 amended July 31, 1968, P.L.963, No.294)

Section 103. Definitions; Construction.--The following terms shall be construed in this act to have the following meanings, except in those instances where the context clearly indicates otherwise:

"Books and records" or "books or records" shall include all pertinent books, ledgers, journals, records, papers, memoranda, correspondence, vouchers, bills, receipts, cancelled checks, accounts, exhibits, photographs and other documents.

"Board" means the State agency created by this act, to be known as the "Pennsylvania Milk Board." (Def. amended Nov. 6, 2023, P.L.161, No.25)

"Consumer" means any person, natural, corporate, statutory or governmental, other than a milk dealer or handler who purchases milk for consumption or use by himself or others.

"Cooperative" means a cooperative agricultural association or corporation of producers organized under the laws of this Commonwealth or of any other state and engaged in making collective sales or in the marketing of milk for producers under contract with it. A cooperative shall not be deemed a milk dealer or handler, but shall be deemed a producer, except as otherwise provided herein.

"Handle," to handle means the doing of any one or several or all of the following acts, to buy, sell, barter, acquire, store, process, consign, receive, transport, control as owner, buyer, seller, consignee, consignor, bailee, bailor, broker or factor.

"Licensee" means a licensed milk dealer or handler.

"Market" includes any county, city, borough, incorporated town, or township in the Commonwealth, or any two or more such counties, cities, boroughs, incorporated towns, or townships, or any portions thereof, or any other land within the territorial limits of the Commonwealth designated by the board as a marketing area.

"Milk" includes fluid milk and cream, fresh, sour or storage, skimmed milk, lowfat milk, flavored milk or milk drink, buttermilk, ice cream mix, and condensed or concentrated whole or skimmed milk except when contained in hermetically sealed cans.

"Milk components" means the components of milk, including butterfat and any other components, for which the prices of handlers, producers or both are established by marketing agreements or orders issued under the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601, et seq.) and which the board determines by regulation are applicable to the marketing areas established under this act. (Def. amended Nov. 6, 2023, P.L.161, No.25)

"Milk dealer" or "handler" means any person, who purchases or receives or handles on consignment or otherwise milk within the Commonwealth, for processing or manufacture and further sale, within or without the Commonwealth, whether on behalf of himself or others, or both. A producer who delivers milk to a milk dealer or handler only shall not be deemed a milk dealer or handler. If a cooperative distributes or makes available on consignment or otherwise milk within this Commonwealth to stores, as defined in this act, or to consumers, as defined in this act, or to other milk dealers or handlers, as defined in this act, or acts as an agent for its members, it shall be deemed to be a milk dealer or handler as to that part of its business, and shall be governed by the provisions of this act applicable thereto. Such cooperative shall be governed by the applicable provisions of this act as to the prices at which it sells, markets, or bargains to sell or make available on consignment or otherwise milk within this Commonwealth to milk dealers, handlers and others.

"Person" includes an individual, corporation, association, partnership, limited partnership, or other unincorporated enterprise owned or conducted by or on behalf of two or more individuals or other persons.

"Price" includes the amount paid or to be paid and the proceeds returned or to be returned, whether the transaction be one of purchase, sale, consignment, sale or return, accounting, or otherwise.

"Producer" means a person producing milk.

"Store" includes a grocery store, hotel, restaurant, soda fountain, dairy products store, or any similar mercantile establishment which sells or distributes milk.

"Subdealer" or "subhandler" means any person other than a store or controlled affiliate who handles milk within the Commonwealth and delivers all such milk to consumers, schools, institutions or stores in the same containers as those in which it was purchased.

Any reference in this act to quantity of milk shall be construed to include its whole milk equivalent.

Article or section headings shall not be construed to affect in any manner the scope or meaning of any article or section of this act.

The singular shall be construed to include the plural. The masculine shall be construed to include the feminine and the neuter, and conversely, the neuter shall be construed to include the masculine and the feminine.

(103 amended Dec. 21, 1984, P.L.1278, No.243)

ARTICLE II

ORGANIZATION OF THE BOARD

(Hdg. amended July 31, 1968, P.L.963, No.294)

Section 201. Appointment and Terms of Members; Quorum.--(a) There is hereby created an independent administrative board to be known as the Pennsylvania Milk Board. The board shall consist of three members nominated and appointed by the Governor, by and with the advice and consent of two-thirds of all the members of the Senate, for terms of six (6) years each, and until their successors shall have been appointed and qualified; except that the terms of the members first taking office shall expire May first, one thousand nine hundred thirty-nine, May first, one thousand nine hundred forty-one, and May first, one thousand nine hundred forty-three, respectively, as designated by the Governor at the time of appointment and until their successors shall have been appointed and qualified. Of the members appointed after the effective date of this amending act, one shall be appointed to represent consumer interests and shall have the responsibility under the direction of the board for directing the executive secretary to coordinate and supervise the Bureau of Consumer Affairs.

(b) The Governor shall designate one of the members of the board as chairman. The chairman shall, when present, preside at all meetings and price hearings, and in his absence a member designated by the chairman shall preside. When presiding at a price hearing, the chairman or acting chairman shall have the status of agency head for the purpose of conducting the hearing.

(c) Two members of the board shall constitute a quorum, and any action or order of the board shall require the approval of at least two members.

(d) The Governor may remove any board member for inefficiency, neglect of duty, loss of qualification as provided in section 202 or misconduct in office: Provided, That he is given a copy of the charges against him and an opportunity to be publicly heard in person or by counsel in his own defense upon not less than ten days' notice, and that the Governor file with the Department of State a complete statement of all charges made against such board member, together with a complete record of the proceedings and his findings thereon.

(201 amended Nov. 6, 2023, P.L.161, No.25)

Section 202. Qualifications and Salaries.--Each member of the board at the time of his appointment and qualification shall be a resident of the Commonwealth and a citizen of the United States. Residence outside the Commonwealth or loss of citizenship shall result in automatic disqualification as a board member. In case of a disqualification, the unexpired term shall be filled by the procedure for appointment as provided in section 201. For the purpose of the immediate section, "residence" shall mean that place where a person maintains the principal home.

No member of the board, during his period of service as such, shall hold any other office under the laws of this Commonwealth or of the United States.

The chairman of the board shall receive a salary in an amount as provided by law. The other members of the board shall receive salaries in amounts as provided by law.

(202 amended Dec. 21, 1984, P.L.1278, No.243)

Section 203. Secretary; Administrative Code.--The board may appoint a secretary to hold office at its pleasure. The secretary, if appointed, shall have such powers and shall perform such duties, not contrary to law, as the board shall prescribe, and shall receive such compensation as the board, with the approval of the Governor, shall determine. The secretary shall have power and authority to designate, from time to time, one of the clerks appointed by the board to perform the duties of the secretary during his absence, and the clerk so appointed shall exercise, for the time so designated, the powers of the secretary of the board.

Except as otherwise specifically provided in this act, the board and its employes shall be subject to all the provisions of The Administrative Code of one thousand nine hundred twenty-nine, approved the ninth day of April, one thousand nine hundred twenty-nine (Pamphlet Laws, one hundred seventy-seven), its amendments and supplements, which apply generally to independent administrative boards or commissions.

No person employed in the work of the board shall, for a period of two years after leaving the service of the board, be eligible to appear before the board representing any person interested in any proceeding pending before the board.

(203 amended July 31, 1968, P.L.963, No.294)

Section 204. Bureau of Consumer Affairs.--There shall be established under the direction of the board a Bureau of Consumer Affairs which shall be supervised by the secretary under the direction of the consumer member by and with the consent of a majority of the board. The purpose of this bureau shall be to consult with representatives of consumer groups, to disseminate information relative to activities of the board, to act as a liaison to other Federal, State and local agencies involved in the dairy industry and in milk marketing, to supply pertinent data to news media and other interested parties and to make any recommendations found necessary as a result of such consultations with consumer groups and other bureau activities as directed by the secretary, consumer member and board.

The office and personnel of the bureau shall be located in a place designated by a majority of the members of the board.

(204 amended Dec. 21, 1984, P.L.1278, No.243)

ARTICLE III

GENERAL POWERS OF THE BOARD

(Hdg. amended July 31, 1968, P.L.963, No.294)

Section 301. Regulation of Milk Industry.--The board is hereby declared to be the instrumentality of the Commonwealth for the purpose of administering the provisions of this act and to execute the legislative intent herein expressed, and it is hereby vested with power to supervise, investigate and regulate the entire milk industry of this Commonwealth, including the production, transportation, disposal, manufacture, processing, storage, distribution, delivery, handling, bailment, brokerage, consignment, purchase and sale of milk and milk products in this Commonwealth, and including the establishment of reasonable trade practices, systems of production control and marketing area committees in connection therewith: Provided, however, That nothing contained in this act shall be construed to alter, amend or repeal any of the laws of this Commonwealth relating to the regulation of public utilities, or to the public health or to the prevention of fraud and deception, except as herein otherwise specifically provided.

(301 amended July 31, 1968, P.L.963, No.294)

Section 302. Specific Powers not Impairment of General Powers.--The operation and effect of any provision of this act conferring a general power upon the board shall not be impaired or qualified by the granting to the board by this act of a specific power or powers.

(302 amended July 31, 1968, P.L.963, No.294)

Section 303. Official Seal; Evidence.--The board may, for the authentication of its records, process and proceedings adopt, keep and use a common seal, of which seal judicial notice shall be taken in all courts of this Commonwealth; and any process, writ, notice or other document which the board may be authorized by law to issue, shall be deemed sufficient if signed by the chairman or secretary of the board and authenticated by such seal.

(303 amended July 31, 1968, P.L.963, No.294 and repealed in part Apr. 28, 1978, P.L.202, No.53)

Section 304. Hearings; Witness Fees.--The board, any member thereof, or any special agent or examiner designated by the board, shall hold such hearings at the Capitol or elsewhere, as the board deems necessary or appropriate to carry out the provisions of this act: Provided, however, That all hearings for the fixing of prices for milk shall be held before one or more members of the board. Each witness required to attend before the board, any member thereof, or any such special agent or examiner, under the provisions of this section, shall be entitled to the fees and mileage customarily paid to witnesses in the courts of Dauphin County. All such hearings shall be governed by such rules, regulations and orders as shall be adopted and prescribed by the board.

(304 amended July 31, 1968, P.L.963, No.294)

Section 305. Subpoenas; Oaths.--In order to enable the board to carry out the provisions of this act, it shall have the power to issue subpoenas requiring the attendance and testimony of, or the production of pertinent books and papers by, milk dealers or handlers or their employes, producers or their employes, persons having business dealings with milk dealers or handlers or producers, or other persons whom the board believes to have information, books or papers of importance to it in carrying out the purposes and intent of this act. Each member of the board and such officers, employes or others employed in the work of the board designated by the chairman of the board also shall have the power to administer oaths and affirmations, to question witnesses thereunder, and to examine such books and papers. The board may issue commissions, letters rogatory, or other appropriate processes outside the Commonwealth.

(305 amended July 31, 1968, P.L.963, No.294)

Section 306. Contempt.--Any person who refuses to obey a subpoena issued hereunder, or to be sworn or affirmed, or to testify, or who is guilty of any contempt after summons to appear, may be punished as for contempt of court. For this purpose an application may be made by the board to the Commonwealth Court, for which purpose such court is hereby given jurisdiction.

(306 amended Dec. 21, 1984, P.L.1278, No.243)

Section 307. Adoption of Rules, Regulations and Orders.--Subject to the approval of the Governor, where such approval is hereinafter expressly required, the board shall adopt and enforce all rules, regulations and orders necessary or appropriate to carry out the provisions of this act and not inconsistent with law.

(307 amended July 31, 1968, P.L.963, No.294)

Section 308. Posting and Service of Rules, Regulations and Orders.--Every general rule, regulation or order of the board shall be posted for public inspection in the main office of the board at least six days before it shall become effective, where it shall remain conspicuously posted until twenty days after its effective date, and shall be given such further publicity, by advertisement or announcement, in a newspaper or otherwise, as the board shall deem advisable. At least three days before it shall become effective, copies of such general rule, regulation or order shall be mailed to all licensees and producers' groups and organizations affected thereby: Provided, however, That such mailing shall not be construed as a condition upon which the validity of any such rule, regulation or order depends. A certified copy of an order applying only to the particular person or persons named therein shall be served on the person or persons affected.

An order, herein required to be served, shall be (1) served in the manner now or hereafter established by law for the service of writs of summons, except that such service need not be made by the sheriff; or (2) mailed, registered and charges prepaid, (a) in the case of an individual, to his last known residence or place of business, (b) in the case of an unincorporated association or a corporation formed under the laws of this Commonwealth, to its principal office, and (c) in the case of a corporation formed under the laws of any other state, to the office of its duly authorized agent in Pennsylvania, or, if there be no duly authorized agent in Pennsylvania, to its home office in the state of incorporation or in any other state.

The posting in the main office of the board of any rule, regulation or order not herein required to be served, and the giving of such further publicity thereto as the board deems advisable, or the proper service of any rule, regulation or order required to be served, shall constitute due and sufficient notice to all persons affected by such rule, regulation or order. A rule, regulation or order of the board, when duly posted and so publicized, or when properly served, as provided in this section, shall have the force and effect of law. The board shall, upon request, mail to any person a copy of any general rule, regulation or order of the board.

The mailing, or service by mail, herein required, shall be by deposit in a United States Post Office, or in any receptacle thereof. Service by registered mail as provided in this section shall be effective notwithstanding the refusal of the addressee to accept or receive an order so served.

(308 amended July 31, 1968, P.L.963, No.294)

Compiler's Note: Section 609(b)(4) of Act 240 of 1937 provided that section 308 is repealed insofar as it relates to administrative regulations.

Section 308.1. Summary of Financial Statement.--The board shall annually prepare a summary of the financial statements, including balance sheet summaries, of all dealers in each milk marketing area. Such summaries shall be a composite form and shall not include the names of the dairies included. Such summaries shall be made available to stores, dealers, producers' organizations and the general public upon request.

(308.1 amended Dec. 21, 1984, P.L.1278, No.243)

Section 309. Certification of Rules, Regulations and Orders.--(309 repealed Apr. 28, 1978, P.L.202, No.53)

Section 310. Entry and Inspection.--Pursuant to the purposes of this act, any member of the board, or any employe designated for the purpose, shall have access to, and may enter and inspect, at all reasonable hours, all places and equipment where milk or any product thereof is being produced, stored, bottled, processed, manufactured, sold, weighed, tested, consigned or otherwise handled. Any member of the board or any designated employe thereof also shall have power, at all reasonable hours, to inspect, photograph, photostat, mark or stamp for identification, audit, and copy all books, papers, records or documents in any place within the Commonwealth, for the purpose of ascertaining facts to enable the board to administer this act. The information obtained regarding any person by any such inspection, auditing or copying, or by reports or statements required or authorized by this act, shall be for the confidential use of the board and the various administrative departments, boards and commissions of the State government, and shall not be disclosed by any person except as may be required in the enforcement of law or by order of court; and any member or employe of the board, or other person, disclosing such information, except as herein required, and except as disclosed by board employes during testimony given at price hearings, shall be subject to the penalties herein provided for a violation of this act. Nothing contained in this act shall prevent the use of any information by the board in the compiling and dissemination of general statistical data.

However, any evidence, statements or other testimony offered by parties, or board employes or agents, during official hearings before the board shall be subject to full examination and cross-examination. Consumers attending official hearings who are not represented by counsel may submit questions to the chairman who shall request an answer from the board or from testifying witnesses if the questions are relevant to the official hearing.

(310 amended Dec. 21, 1984, P.L.1278, No.243)

Section 311. Interstate and Federal Compacts.--The board is hereby vested with authority to confer with legally constituted authorities of other states and of the United States with respect to uniform milk control within the states and as between states. The board is authorized to join with such authorities of other states and with the authorities of the United States to conduct joint investigations, to exchange information, hold joint hearings and issue joint, complementary or concurrent orders, and to enter into a compact or compacts for such uniform milk control, subject to such Federal approval as may be authorized or required by law.

(311 amended July 31, 1968, P.L.963, No.294)

ARTICLE IV

LICENSES OF MILK DEALERS

Section 401. Milk Dealers or Handlers Required to Be Licensed.--Except as herein otherwise specifically provided, a milk dealer or handler, as defined in this act, shall not buy or handle milk, whether as a broker, factor, bailee, consignee, or otherwise, and whether or not by contract or operation of law title passes to the handler, from producers or others within this Commonwealth for storage, consignment, brokerage, manufacture, processing, distribution, or sale within or without this Commonwealth, or manufacture, process, handle, sell or distribute milk within this Commonwealth, unless such dealer or handler be duly licensed as herein provided; and it shall be unlawful for a milk dealer or handler to buy or receive milk from, or sell or consign milk to, or handle as broker, factor, consignee or otherwise, milk for, a milk dealer or handler who is not either licensed or exempted as herein provided, or, in any way, to deal in or handle milk which he has reason to believe has previously been dealt in or handled in violation of the provisions of this act.

(401 amended July 24, 1941, P.L.443, No.177)

Section 402. Milk Dealers or Handlers Subject to Exemption.--The board may, by official order, exempt from the license requirements provided by this act milk dealers or handlers who purchase or handle milk in a total quantity not exceeding one thousand five hundred pounds in any month, and milk dealers or handlers selling milk in any quantity only in markets of a population of one thousand, or less, for local consumption. However, milk dealers or handlers exempted by this section from the license requirements of this act shall continue to be subject to all the other provisions of this act relating to milk dealers or handlers: Provided, however, That in cash sales of milk to consumers, if he shall have produced all the milk on the farm where sold and such milk has at no time left the producer's farm prior to its sale to the consumer and he shall have neither purchased, handled or received any milk from other producers or handlers for cash sale or any other purpose and his total sales to consumers do not exceed two gallons to any one consumer in any one day, the producer so selling milk shall be exempt from the provisions of this act.

(402 amended Dec. 21, 1984, P.L.1278, No.243)

Section 403. Applications.--An application for a license to operate as a milk dealer or handler shall be completed and filed by the dealer or handler with the board within thirty days after this act takes effect, or prior to his engaging in business, and annually thereafter, on or before June fifteenth, by mail or otherwise, upon a form prescribed by the board. Such application shall be accompanied by the fee required by this act, and by a bond when so required by this act, in order to be complete. The license year shall commence July first and shall end June thirtieth following. The applicant shall state under oath or affirmation, upon a form prescribed by the board the following:

(1) The nature of the business to be conducted.

(2) The full name of the person applying for the license. If the applicant is a copartnership or association, the full name of each member shall be stated. If the applicant is a corporation, the names and addresses of all officers and directors shall be stated.

(3) The city, borough, incorporated town or township, and the street number, if any, at which the business is to be conducted.

(4) The financial condition of the applicant, including a comprehensive financial statement of his affairs.

(5) Facts showing that the applicant has adequate technical personnel and adequate technical and physical facilities properly to conduct the business of receiving and handling milk, that he has complied with all rules, regulations and orders of the board filed or served as required in this act, the quantity, source and outlet of milk handled within the Commonwealth during the calendar year preceding the period for which the license is desired, and such other facts with respect to the applicant's business as may be required by the board pursuant to this act.

(6) Designation of an agent within the Commonwealth upon whom service of process may be made by the board.

(403 amended Dec. 21, 1984, P.L.1278, No.243)

Section 404. Grounds for Refusal, Suspension or Revocation.--The board shall grant a license to an applicant complying with the provisions of this act and the rules, regulations and orders issued by the board pursuant thereto. Anything in this act to the contrary notwithstanding, a store or controlled affiliate which satisfies all other requirements for licensing shall not be denied an appropriate license if it has been so licensed on the effective date of this amendment. The board may decline to grant a license to an applicant, or may suspend or revoke the right of a licensee or former licensee to apply for a license for a new license period, or may suspend, revoke or refuse to transfer a license already granted to a milk dealer or handler, or may prohibit a milk dealer or handler exempted from the license requirements of this act from continuing to operate as a milk dealer or handler, after determination by the board that the dealer or handler:

(1) Has rejected, without reasonable cause, any milk purchased or acquired from a producer, or has rejected, without either reasonable cause or reasonable advance notice, milk delivered or made available by or on behalf of a producer in ordinary continuance of a previous course of dealing, except where the contract has been lawfully terminated: Provided, however, That in the absence of an express or implied fixing of a longer period in the contract, "reasonable advance notice" shall not be construed to mean notice of less than fourteen days nor more than forty-five days;

(2) Has, if a milk dealer other than a subdealer, failed to account and make payment for any milk purchased or received on consignment or otherwise from a producer or producers, or has, if a subdealer, failed to account and make payment for any milk purchased or received on consignment or otherwise from a milk dealer: Provided, however, That if it be shown that there was reasonable cause for any such failure to account and make payment, and that such accounting and payment can and will be made promptly in addition to currently accounting and paying for milk purchased or received as aforesaid, the board shall not refuse to grant or suspend, revoke or refuse to transfer a license solely for such failure to account and make payment, until a reasonable opportunity has been afforded to make such accounting and payment;

(3) Has committed any act injurious to the public health or public welfare or has committed any act injurious to trade or commerce in demoralization of the price structure of milk to such an extent as to interfere with an ample supply thereof for the inhabitants of the Commonwealth affected by this act. It is hereby declared that such demoralization is injurious to the public health, public welfare, and to trade and commerce, and that evidence thereof shall include any course of conduct on the part of the milk dealer or handler in violation of the terms of this act or any valid rules, regulations and orders of the board;

(4) Has made a general assignment for the benefit of creditors, or has been adjudged a bankrupt, or there has been entered against him a judgment upon which an execution remains wholly or partly unsatisfied;

(5) Has been a party to a combination to fix prices contrary to law. A cooperative agricultural association organized under the laws of this Commonwealth, or a similar association or corporation organized under the laws of this or any other state, and engaged in making collective sales or marketing for its members or shareholders, or any producers' or farmers' union or organization, shall not be deemed or construed to be a conspiracy or combination in restraint of trade or an illegal monopoly; nor shall the contracts, agreements, arrangements or combinations heretofore or hereafter made by such association or corporation, or the members, officers or directors thereof, in making such collective sales and marketing, and prescribing the terms and conditions thereof, be deemed or construed to be conspiracies or to be injurious to public welfare, trade or commerce;

(6) Has continued in a course of conduct of such nature as to manifest an intention on the part of such milk dealer or handler to deceive or defraud producers or consumers;

(7) Has failed either to keep records or to furnish accurately the statements or information required by the board to be supplied to it or to producers or consumers;

(8) Has made any statement upon which the license was issued, which statement is found to have been false or misleading in any material particular;

(9) Is a partnership, association or corporation, and any individual holding any position, owning any substantial interest, or having any power of control therein, has previously been responsible, in whole or in part, for any act on account of which a license may be denied, suspended or revoked pursuant to the provisions of this act;

(10) Has violated any of the provisions of this act, any other act administered by the board, or any of the rules, regulations or orders of the board, or any stipulation entered into between the said dealer or handler and the board in the course of any proceeding before the board;

(11) Has violated any provisions of acts repealed hereby, or of rules, regulations or orders issued thereunder;

(12) Has rejected milk sold or delivered or made available on consignment or otherwise by, or on behalf of, a producer in ordinary continuance of a previous course of dealing because the producer or his employe, agent or representative testified in any proceeding before the board, or in any civil or criminal case in any court, whether or not of record, in which any provision of this act or any order of the board was concerned, and it shall be no defense that reasonable advance notice was afforded the producer before the milk was rejected;

(13) Has refused without reasonable cause to receive milk from a producer because it was not hauled to the milk dealer or handler by a hauler of the dealer's or handler's choosing, or because it was hauled to the dealer or handler by a producer or a hauler of a producer's or cooperative's choosing, providing that such producer or hauler has adequate facilities and equipment for hauling, and is delivering, or is ready, able and willing to deliver, milk to the plant of such dealer or handler in proper condition and at the times necessary to coincide with the current schedule of plant operations of the dealer or handler.

The burden of proving reasonable cause under any provisions of this section shall be upon the milk dealer.

The issuance or renewal by the board of license hereunder shall not preclude the board from suspending or revoking such license for a violation committed by the licensee prior to the license period, except where the board or its predecessor board or commission had proceeded against the licensee for such violation, and any valid order thereon has been complied with by the licensee.

The board may grant a provisional and temporary license to an applicant or to a prior licensee when and if for any cause the action of the board with respect to an application seasonably filed has not become final prior to the expiration of the period of such prior license. Such a temporary and provisional license may be issued on such terms and conditions as the board may impose, and shall authorize the licensee to continue in business until final action with respect to his pending application has been taken and no longer.

(14) Has demonstrated through the financial information submitted with his application, a lack of financial responsibility or a probable inability to meet the financial responsibilities imposed by this act or by the act of July 6, 1984 (P.L.652, No.136), known as the "Milk Producers' Security Act," and by the regulations of the board. ((14) amended Nov. 6, 2023, P.L.161, No.25)

(15) Has been convicted of a felony during the five years immediately prior to the date upon which an application for license renewal has been submitted; or, if the applicant is a partnership, association or corporation, has had any partner, officer or management employe who was convicted of a felony during the five years immediately preceding the date upon which the application for a milk dealer's license or for a license renewal has been submitted. For purposes of this section, the word "felony" shall mean a criminal offense which has been designated a felony under Title 18 of the Pennsylvania Consolidated Statutes (relating to crimes and offenses) or under the Federal or State laws of the jurisdiction where the person or dealer was convicted or found guilty and which has been committed as a result of, in furtherance or facilitation of, under the guise of or in relation to business activities and dealings which the board has authority to regulate under this act.

(404 amended Dec. 21, 1984, P.L.1278, No.243)

Section 404.1. Penalties in Lieu of Suspension.--In any case where the board shall suspend a license, the board may accept from the licensee an offer in compromise at the rate of one hundred fifty dollars ($150) for each day of suspension as a penalty in lieu of such suspension, and thereupon rescind the suspension.

(404.1 amended Dec. 21, 1984, P.L.1278, No.243)

Section 405. Hearings and Orders.--Before refusing to grant or to reissue, or before suspending, revoking, or refusing to transfer a license, the board shall afford the applicant or the licensee, respectively, an opportunity to be heard. It shall direct a citation to such applicant or licensee, by registered mail, sent to his last known address, giving therein at least five days' notice of such hearing, and a statement of the matters complained of. The direction of such citation by registered mail as aforesaid shall be sufficient notice of such hearing, notwithstanding any refusal of the addressee to accept or receive said citation. The five days' notice shall be computed as from the time that the addressee accepts or receives or refuses to accept or receive said citation. After such hearing, and upon entry of any order thereon, the board shall serve a certified copy of such order upon the applicant or licensee, filing at its office the original and a statement in writing of the findings of fact in support thereof.

(405 amended July 31, 1968, P.L.963, No.294)

Section 406. Cancellation.--Where the board declines to grant a license to an applicant, or revokes a license, and the dealer appeals therefrom, obtaining a supersedeas, the reason assigned for declining to grant or for revoking the license shall not be a reason for declining to grant the same dealer a license for a subsequent license period. However, in the event that the appeal from the order of the board is dismissed, or otherwise terminated favorably to the board, any license issued for such subsequent period shall be automatically cancelled five days after the termination of the appeal, unless the board otherwise orders.

(406 amended July 31, 1968, P.L.963, No.294)

Section 407. Transfer.--Licenses issued under this act may not be assigned. Licenses may, however, be transferred from one person to another, provided that the prior written approval of the board to such transfer is obtained; but a receiver, an executor or administrator who succeeds to the business of a licensee may continue the business for a period of two weeks, if otherwise authorized by law, without securing the prior approval of the board. Any change in the membership of a partnership or limited partnership, either by the withdrawal or the addition of a partner, shall be construed to require a transfer of the license. Applications for such transfers shall be filed with the board at least one week before the transfer is to be made, or, in the case of a receiver or an executor or administrator, within two weeks after he takes possession of the business of the licensee. Whenever any license is transferred, no license fee shall be required from the person to whom such transfer is made for the balance of the then current license year, except the transfer fee of one dollar.

(407 amended July 31, 1968, P.L.963, No.294)

Compiler's Note: Section 11(b) of Act 132 of 1978 provided that section 407 is repealed to the extent it sets fees for licenses, certificates or activities for which new fees are prescribed by Act 132.

Section 408. License Fees Generally.--(408 repealed July 1, 1978, P.L.730, No.132)

Section 409. License Fees of Certain Milk Dealers.--(409 repealed July 1, 1978, P.L.730, No.132)

Section 410. Computation of License Fees.--(410 repealed July 1, 1978, P.L.730, No.132)

Section 411. Classification of Licenses.--The board may classify licenses, and may issue licenses to any milk dealer to operate as a milk dealer in a particular municipality only, or in a particular market or markets in the Commonwealth only, but no milk dealer shall, if granted a license under this act at all, be prohibited from acting as a milk dealer in any municipality or in any market in which he was operating upon January second, one thousand nine hundred thirty-four.

(411 amended July 31, 1968, P.L.963, No.294)

ARTICLE V

BONDS OF MILK DEALERS

Section 501. Milk Dealers or Handlers Required to File Bonds.--(501 repealed July 10, 1980, P.L.481, No.104)

Section 502. Computation of Amount of Certain Bonds.--(502 repealed July 10, 1980, P.L.481, No.104)

Section 503. Time of Filing; Effective Period of Bond.--(503 repealed July 10, 1980, P.L.481, No.104)

Section 504. Requisites of Bonds; Substitution.--(504 repealed July 10, 1980, P.L.481, No.104)

Section 505. Financial Statement.--(505 repealed July 10, 1980, P.L.481, No.104)

Section 506. Increase or Decrease of Bond.--(506 repealed July 10, 1980, P.L.481, No.104)

Section 507. Duty of State Treasurer.--(507 repealed July 10, 1980, P.L.481, No.104)

Section 508. Interest or Dividends upon Securities.--(508 repealed July 10, 1980, P.L.481, No.104)

Section 509. Suit by Board.--(509 repealed July 10, 1980, P.L.481, No.104)

Section 510. Effect of Order by Board.--(510 repealed July 10, 1980, P.L.481, No.104)

Section 511. Procedure for Disbursing Proceeds.--(511 repealed July 10, 1980, P.L.481, No.104)

Section 512. Cooperatives.--(512 repealed July 10, 1980, P.L.481, No.104)

Section 513. Subdealers' or Subhandlers' Bonds.--It shall be unlawful for a subdealer or subhandler to buy, acquire, receive or handle milk from a milk dealer or handler who purchases, acquires or receives milk from producers, unless the subdealer or subhandler shall file with the board a corporate surety or collateral bond, approved by the board. Such bond shall be executed to the Commonwealth in a sum equal to the sum of the highest aggregate amount owed for milk by the subdealer or subhandler to dealers or handlers for any thirty-day period during the preceding twelve months and shall be conditioned for the payment by the subdealer or subhandler of all amounts due under this act and the orders of the board for milk purchased, acquired or received from such milk dealer or handler or dealers or handlers during the license year; subject, however, to the further condition that if at time of default, such milk dealer or handler or dealers or handlers are indebted, or in arrears in their payments, to producers, the proceeds thereof shall be held on the account of such dealer or handler or dealers or handlers for the benefit of such producers. Such bond shall be filed annually with the subdealer's or subhandler's application for a license. The bond shall be executed to the Commonwealth by the subdealer or subhandler as principal and by a corporate surety company as surety. The board shall have no authority to reject any corporate surety bond which is executed by a corporate surety company authorized to do business in this Commonwealth if the amount of the bond is equal to or less than the amount which the surety company is authorized to execute on a single bond without obtaining collateral security from the principal. The board may reject any bond which exceeds this amount.

The board shall have the power to sue at its discretion on the bond on behalf of the milk dealer or handler to whom money is owed by the subdealer or subhandler, or the board may sue on behalf of a milk dealer or handler to recover a debt owed to him by a subdealer or subhandler. Suits which are brought shall be in the name of the Commonwealth, shall identify the board as the real party and shall follow the same procedure as for debts which are recoverable by law.

If a subdealer or subhandler who has not engaged in the business during the preceding twelve months purchases, acquires, receives or intends to purchase or receive milk from a milk dealer or handler, he shall file a bond in a sum to be fixed by the board in accordance with the subdealer's or subhandler's anticipated purchases from a dealer. The board shall review the operations of the subdealers and of the subhandlers every two months. Bonds shall be modified so that purchases from dealers are adequately covered.

(513 amended Dec. 21, 1984, P.L.1278, No.243)

ARTICLE V.1

MILK HAULERS

(Art. added Dec. 15, 1965, P.L.1095, No.422)

Section 550. Licensing of Milk Haulers.--No person, association or corporation shall engage in the business of milk hauling or transport in this Commonwealth unless such person holds a milk hauler's license issued by the board. Applications for such license shall be completed and filed by the milk hauler within thirty days after this amending act takes effect, or prior to his engaging in business and annually thereafter, on or before June fifteenth, by mail or otherwise, upon such forms as may be prescribed. The license year shall commence July first and shall end June thirtieth following.

Such milk hauler's licenses may not be transferred or assigned.

(550 amended July 31, 1968, P.L.963, No.294 and repealed in part July 1, 1978, P.L.730, No.132)

Section 551. Refusal, Suspension or Revocation of License.--The board may decline to grant a license to an applicant, or may suspend or revoke the right of a licensee or former licensee to apply for a license for a new license period, or may suspend, or revoke a license already granted to a milk hauler after determination by the board that the hauler has not complied with the provisions of this act and rules, regulations and orders issued by the board pursuant thereto.

Before refusing to grant or reissue, or before suspending or revoking a license, the board shall afford the applicant for the license, an opportunity to be heard under the same procedure as provided in section 405 of this act.

(551 amended July 31, 1968, P.L.963, No.294)

Section 552. Records and Reports.--Milk haulers licensed under this act shall keep within the Commonwealth the following records:

(1) A record of all milk transported, shipped or hauled, including for each individual trip or movement the type and quantity of milk hauled by origin and destination, consignor and consignee.

(2) Such other records and information as the board may deem necessary for the proper enforcement of this act.

The board also may from time to time require certain reports to be filed by milk haulers pursuant to rules, regulations or orders of the board.

Persons, associations, or corporations engaged in transporting milk in cans from farms where it is produced to a dealer's plant may be exempt from the provisions of this act.

(552 amended July 31, 1968, P.L.963, No.294)

Section 553. Employed Weighers and Samplers.--No person engaged in the business of milk hauling or transport in this Commonwealth shall employ or otherwise utilize a person to pick up milk from farms unless that person is certified by the board as provided in section 603.

(553 added Dec. 21, 1984, P.L.1278, No.243)

ARTICLE VI

WEIGHING AND TESTING

Section 601. Weighing or Measuring Permits.--(601 repealed July 1, 1978, P.L.730, No.132)

Section 602. Certified Testers.--It shall be unlawful for any milk dealer to buy or receive milk from producers, or to sell or deliver milk to stores or consumers, on the basis of, or with reference to, the amount of butterfat or appropriate milk components contained in such milk, unless the butterfat or component tests thereof is conducted by a tester certified by the board.

The certified tester shall keep an accurate record of all tests made, and copies of such record shall be kept for a period of two (2) years by him and by the milk dealer.

Any person who, upon the effective date of this act, is the holder of a certificate of proficiency for milk testing issued after examination conducted by the Pennsylvania Department of Agriculture, shall, upon application to the board, on a form prescribed by the board, furnishing information including that pertaining to good character and to the apparatus and methods used in testing, be issued a certificate and be designated therein as a certified tester.

Any person who is not the holder of such certificate of proficiency upon the effective date of this act, shall, prior to applying for a tester's certificate, apply to the board for a certificate of proficiency. Such application shall be accompanied by a fee of five dollars ($5.00). The applicant shall be required to pass an examination in milk testing, reasonably prescribed and conducted by the board, and upon approval of the application shall be issued a certificate of proficiency. Thereupon, and annually thereafter without such examination, the person so certified may apply for a tester's certificate as herein prescribed.

The application for a tester's certificate, accompanied by a fee of five dollars ($5.00), shall be filed, upon a form prescribed by the board, before commencing to test milk, and annually thereafter on or before December first.

The tester's certificate issued hereunder shall be for the term of one calendar year, and shall be posted and kept in plain view in the plant in which the certified tester is employed.

(602 amended Dec. 21, 1984, P.L.1278, No.243)

Section 603. Certified Weighers and Samplers.--It shall be unlawful for any milk dealer to buy or receive milk from producers, or to sell or deliver milk to stores or consumers on the basis of, or with reference to, the amount of butterfat or appropriate milk components contained in such milk, unless the samples taken for testing purposes shall be made by a certified tester or certified weigher and sampler, and according to the method prescribed in this act or in regulations established by the board under this act.

It shall be unlawful for any person to pick up milk from farms unless the person making the pickup has a valid tester's certificate or weigher's or sampler's certificate issued by the board.

Any person who, upon the effective date of this act, is the holder of a certificate of proficiency for milk weighing and sampling issued after examination conducted by the Pennsylvania Department of Agriculture, shall, upon application to the board on a form prescribed by the board furnishing information including that pertaining to good character and to apparatus and methods used in weighing and sampling, be issued a certificate and be designated therein as a certified weigher and sampler.

Any person who is not the holder of such certificate of proficiency upon the effective date of this act, shall, prior to applying for a weighing and sampling certificate, apply to the board for a certificate of proficiency. Such application shall be accompanied by a fee of five dollars ($5.00). The applicant shall be required to pass an examination in weighing and sampling milk, reasonably prescribed and conducted by the board, and upon approval of the application shall be issued a certificate of proficiency. Thereupon, and annually thereafter without such examination, the person so certified may apply for a certificate as a certified weigher and sampler. The application for such weighing and sampling certificate, accompanied by a fee of five dollars ($5.00), shall be filed, upon a form prescribed by the board, before commencing to sample milk, and annually thereafter on or before December first.

The weighing and sampling certificate issued hereunder shall be for the term of one calendar year, and shall be posted and kept in plain view in the room in which the certified weigher and sampler is employed.

(603 amended Dec. 21, 1984, P.L.1278, No.243)

Section 604. Refusal, Suspension and Revocation of Permits and Certificates.--The board may decline to grant, or may suspend or revoke, a weighing or measuring permit, a tester's certificate or a weighing and sampling certificate, where the applicant therefor, or holder thereof, has violated any provision of this act for the weighing, measuring, testing or sampling of milk, or has violated any rules, regulations or orders of the board respecting the weighing, measuring, testing or sampling of milk, or has engaged in any practice with respect thereto which causes milk producers to be underpaid for their milk, or which causes stores or consumers to overpay for such milk, or which otherwise defrauds or tends to defraud milk producers, stores or milk consumers.

The procedure before the board and of the board, with respect to the refusal, suspension or revocation provided for herein, and the procedure governing appeals from such action of the board, shall be as that prescribed in this act with respect to milk dealers' licenses issued hereunder.

Licenses, permits and certificates heretofore issued by the Pennsylvania Department of Agriculture under acts repealed hereby, and which are in force upon the effective date of this act, shall be deemed permits and certificates issued by the board hereunder until the expiration dates thereof, and the holders shall be subject to all applicable provisions of this act.

(604 amended July 31, 1968, P.L.963, No.294)

Section 605. Transfer.--The permits and certificates herein provided for may not be assigned or transferred.

Section 606. Samples; Check Tests.--Milk dealers buying or receiving milk from producers on the basis of, or with reference to, the amount or percentage of butterfat contained in such milk, as determined by the method commonly known as the "Babcock Test," shall make such test at least once every sixteen (16) days. The milk from each producer shall be represented by a composite sample taken from the entire delivery of each of the several lots of milk bought or received from said person, and shall cover a period of not more than sixteen (16) days. The composite sample, to which a suitable preservative has been added, shall be made up of aliquot parts taken from each of the several lots of milk from each producer concerned, and composite samples of all producers concerned shall cover the same period of time.

Any person taking a sample or samples of milk, either from the aliquot part of each lot of milk sampled or from the composite lot of milk sampled, shall thoroughly stir or mix the contents of each and every container immediately before such sample or samples are taken, in such manner that the milk is thoroughly mixed in each container before the sample is taken. No weigh tank or container from which the aliquot part is taken for composite samples shall have any partition, division, or strainer which will prevent such thorough stirring or mixing. Each composite sample shall be held in an airtight bottle, such bottle being plainly labeled showing the name or number of the producer whose milk the composite sample represents, and the rack or container where the samples are held shall be plainly labeled showing the date of the first and last day of the period covered by the said composite samples.

The board may require that the composite samples be tested at the receiving station where the milk is received, or by a licensed laboratory, within five days from the end of the period when the composite samples were taken. After such samples have been tested, their residues shall be held intact and in condition suitable to test on the premises where they are tested, for a further period of not less than ten (10) days after the rendering of a statement to the producer for milk delivered during such period, in order to make possible a check test.

Every milk dealer affected by the provisions of this act shall, within two (2) days after the day on which the test herein provided for has been made, notify the producer or his agent of the result of such test, stating the period of time during which said composite samples were taken. Notice under this section shall be given by posting of the results of said tests continuously for ten (10) days in a conspicuous place in the plant or receiving station, or in writing delivered to the producer or his agent. Where a daily test is made on milk, and the average of these several tests is used as a basis of settlement, there shall also be a composite sample taken covering the period of the first half of the month, and a composite sample taken covering the period of the last half of the month, and such samples shall be held intact on the premises for a period of not less than ten (10) days after the rendering of a statement to the producers for milk delivered during each such period, in order to make possible a check test.

The board shall make check tests, and other reasonable tests, whenever in its judgment such tests are advisable for the public welfare, and may also require additional samples or additional composite samples from time to time. In addition, the board may require by regulation tests and testing procedures for components other than butterfat.

(606 amended Dec. 21, 1984, P.L.1278, No.243)

Section 607. Violations.--It shall be unlawful for any milk dealer or other person engaged or employed in the business of buying or receiving milk from producers, or selling or delivering milk to stores or consumers, on the basis of, or with reference to, the amount or percentage of butterfat contained therein, to take, collect or use for testing purposes an unfair or inaccurate sample, or to underread, overread or erroneously manipulate the "Babcock Test" or any other test prescribed by the board as an acceptable test method used for determining the amount or percentage of butterfat in such milk, or to falsify the record thereof, or to make the "Babcock" reading, except when the fat has a temperature of one hundred thirty-five degrees (135) to one hundred forty-five degrees (145) Fahrenheit, or to use for such test quantities other than seventeen and six-tenths (17.6) cubic centimeters, in the case of milk, and nine (9) grams or eighteen (18) grams, in the case of cream. In all tests of cream the cream shall be weighed and not measured into the test bottle.

It shall also be unlawful for such milk dealer or other person, so engaged or employed, to ascertain the "Babcock Test" of the milk by use of any glassware except standard "Babcock Test" glassware and weights which have been previously inspected and approved by the Department of Internal Affairs. If the amount or percentage of butterfat is determined by any method other than the "Babcock Test," no utensil or instrument shall be used in such determination until it has been inspected and approved by the board.

(607 amended Dec. 21, 1984, P.L.1278, No.243)

Section 608. Payment for Milk; Statement.--Milk dealers shall determine weight, measure and butterfat and appropriate milk component content of milk as provided in this act, or in rules, regulations or orders of the board pertaining thereto and consistent with this act. Payment for milk shall be made either upon the basis of weight, measure or butterfat or appropriate milk component content, or any combination thereof, as the rules, regulations or orders of the board may require.

Milk dealers buying or receiving milk from producers shall furnish to each producer or his agent a written statement showing the amount of milk delivered daily during the period for which payment is made, and, unless the board otherwise provides, the average butterfat or appropriate milk component tests of the milk delivered for such period. Such statement shall set forth such information as may be required by the board, shall be furnished periodically, at the time of payment prescribed by the board, and in no event less often than monthly: Provided, however, That a written statement of weights shall be given daily to the producer or his agent, upon written request of a majority of the producers, who deliver milk to any receiving station or plant receiving milk, each receiving station or plant to be considered separately, in lieu of such periodic statement of the amount of milk delivered, unless the board otherwise provides.

It shall be unlawful to use as the basis of payment for milk any amount or percentage of butterfat or appropriate milk components therein which has been ascertained from a sample containing milk that has been so treated as to cause it to test lower or higher than the milk from which it was taken.

It shall be unlawful for any person, including any milk dealer, to knowingly, fraudulently, or negligently weigh, measure, sample or test milk, or cause milk to be weighed, measured, sampled, or tested in such manner as to cause or tend to cause loss or injury to milk producers, stores or milk consumers, or to make any false or misleading statement with respect to the weight, measurement, sampling or testing of milk.

(608 amended Dec. 21, 1984, P.L.1278, No.243)

ARTICLE VII

RECORDS, REPORTS AND INFORMATION

Section 701. Records.--Milk dealers subject to license by the board shall keep within the Commonwealth the following records:

(1) A record of the quantity of all milk received or produced, detailed as to location and as to names and addresses of producers or milk dealers from whom received, with butterfat or appropriate milk component tests, weights; prices paid, and deductions or charges made.

(2) A record of the quantity of all milk sold, detailed as to grade, use, location, market outlet, and size and type of container, with prices and amounts received therefor, and the butterfat or appropriate milk component tests thereof.

(3) A record of the quantities of all milk transported, shipped, or hauled, including the distances and the amounts paid for the movement of such milk, in all cases where the dealer pays on his own account or on the account of producers for the movement thereof.

(4) A record of the quantity of each milk product manufactured, the quantity of milk used in the manufacture of each product, and the quantity and value of milk products sold.

(4.1) The price or cost of containers used, by size and type.

(5) A record of wastage or loss of milk or butterfat.

(6) A record of the spread or handling expense and profit or loss, represented by the difference between the price paid and the price received for all milk and milk products.

(7) A record of all other transactions affecting the assets, liabilities, or net worth of the dealer.

(8) Such other records and information as the board may deem necessary for the proper enforcement of this act.

The records herein required shall be kept in the possession of the milk dealer for a period not less than two years, unless the board otherwise provides.

(701 amended Dec. 21, 1984, P.L.1278, No.243)

Section 702. Reports.--Each milk dealer shall, from time to time, as required by rule, regulation or order of the board, make and file a verified report, on forms prescribed by the board, of all matters on account of which a record is required to be kept, together with such other information or facts as may be pertinent and material within the scope of the purposes and intent of this act. Such report shall cover a period specified in the order, and shall be filed within a time fixed by the board.

(702 amended July 31, 1968, P.L.963, No.294)

Section 703. Dissemination of Information; Conferences.--Licensees under this act, and associations or corporations thereof, producers of milk, producers' or farmers' unions or organizations and cooperative agricultural associations or corporations engaged in collectively processing, preparing for market, handling or marketing milk, may acquire, exchange, interpret and disseminate past, present and future market, statistical, economic and educational information pertaining to milk by direct exchange between such persons or such associations or corporations, or by and through a common agent created or selected by them, which agent may be the commission if it consents to be such. Any such licensees, producers and associations or corporations may confer and discuss the cost of production, marketing, market conditions and prices for milk.

A milk dealer or handler shall upon the request of a producers' or farmers' union having written authority from producers, or of a cooperative, supply it with the information required to be kept under subsection (1) of section 701 of this article, in so far as such information pertains to the milk produced by the stockholders, members or patrons of such producers' or farmers' union or cooperative selling or supplying milk to such milk dealer or handler.

(703 amended July 24, 1941, P.L.443, No.177)

Section 704. Uniform System of Accounts.--The board shall, after reasonable notice and hearing, establish systems of accounts (including cost finding procedures) to be kept by licensees and shall prescribe the manner and form in which accounts are to be kept. Every licensee shall establish such systems of accounting and shall keep accounts in the manner and form required by the board in order to facilitate the costs studies provided for in section 801.

(704 added July 24, 1968, P.L.963, No.294)

ARTICLE VIII

PRICES OF MILK

Section 801. Requisites of Orders Fixing Price of Milk.--The board shall ascertain, after a hearing in which all interested persons shall be given reasonable opportunity to be heard, the logical and reasonable milk marketing areas within the Commonwealth, shall describe the territorial extent thereof, shall designate such areas by name or number, and shall ascertain and maintain such prices paid to producers, to dealers and to stores for milk in the respective milk marketing areas as will be most beneficial to the public interest, best protect the milk industry of the Commonwealth and insure a sufficient quantity of pure and wholesome milk to inhabitants of the Commonwealth, having special regard to the health and welfare of children residing therein.

The board shall base all prices upon all conditions affecting the milk industry in each milk marketing area, including the amount necessary to yield a reasonable return to the producer, which return shall not be less than the cost of production and a reasonable profit to the producer, of the quantity of milk necessary to supply the consumer demand for fluid milk plus a reasonable reserve supply as determined by the board, and a reasonable return on aggregate milk sales by milk dealers or handlers and stores selling milk. A reasonable return shall mean not less than a two and one-half percent (2 1/2%) nor more than a three and one-half percent (3 1/2%) rate of return based on net sales of price-controlled products determined in accordance with generally accepted accounting principles. However, where the board determines that the market for Pennsylvania produced milk is threatened it may establish producer prices designed to market the milk. In ascertaining such returns, the board shall utilize available information concerning producers' cost of production and a cross-section representative of producers, dealers and stores in the area and shall consider unit costs of various types of products and of various sizes of containers.

The board shall file at its office, with each order issued, a general statement in writing of the findings of fact in support of, and the reasons for such order.

The board may, upon its own motion or upon application in writing, from time to time, alter, revise or amend an official order defining milk marketing areas or fixing prices to be charged or paid for milk. Before making, revising or amending any order defining milk marketing areas or fixing prices to be charged or paid for milk, the board shall hold a hearing, after giving reasonable opportunity to be heard to interested persons, of whom the board has notice, and, in the case of any order affecting the public, after giving reasonable notice thereof to the public in such newspaper or newspapers as, in the judgment of the board, shall afford sufficient notice and publicity: Provided, however, That after such hearing, there shall be a further hearing or conference before the board on any proposed order, and notice of such further hearing or conference shall be given to the parties represented and heard at the previous hearing. Upon application in writing from a person aggrieved by an order of the board hereunder, filed within fifteen (15) days after the issuance of the order complained of, or upon its own motion, the board may, within twenty (20) days after the effective date of such order, issue an order revising or amending such order without a further hearing, if such revision or amendment is based on the record of the hearing held prior to the issuance of such order.

"Interested persons," as used in this section, means all persons who may be affected by an order of the board fixing prices, and who have signified to the board in writing their desire to be notified of such hearings concerning a particular milk market area or areas within the Commonwealth. "Reasonable opportunity to be heard" may be afforded by written notice addressed to the last known address of an interested party by mail, postage prepaid, by deposit in a United States post office or any receptacle thereof. Nothing contained in this section shall be construed to limit or modify the provisions of section three hundred eight of this act relating to the posting and publicizing of orders of the board, including orders made under this article and the force and effect thereof.

At any hearing provided for herein the testimony of an expert statistician present at the hearing and any printed, typewritten, duplicated, mimeographed or other written treatise, report or statistical data by an expert not present as a witness, if and to the extent it is endorsed as reliable to an expert witness present at the hearing, shall be competent evidence on any subject material to fixing any price under this article. However, the testimony, treatise, report or data must result from a study of facts and conditions in the milk marketing area which is the subject of the hearing.

All provisions of all price-fixing orders of the board shall be presumed to be valid, and the burden of proving any invalidity of any provisions thereof shall be upon the person asserting the same. Any determination by the board, or a court to which an appeal has been taken, that the wholesale or retail prices provided are invalid shall not prevent the enforcement of prices to producers, but any determination that prices to producers are unreasonable shall require the redetermination by the board of wholesale and retail prices as well as prices to producers.

Whenever an order of the board fixing prices is remitted to the board with directions to reform the findings or order in accordance with the opinion of the court, and no further appeal is taken by the board, the board shall make such reformation within thirty days from the entry of the order of the court remitting the price-fixing order to the board.

(801 amended Dec. 21, 1984, P.L.1278, No.243)

Section 802. Wholesale and Retail Prices.--The board shall fix, by official order (except as hereinafter provided in this section), the minimum wholesale and retail prices, and may fix, by official order, the maximum wholesale and retail prices, to be charged and received by milk dealers or handlers for milk sold, delivered, handled or consigned within any milk marketing area of the Commonwealth, wheresoever produced, including milk sold, delivered or consigned by:

(1) Milk dealers or handlers to other milk dealers or handlers;

(2) Milk dealers or handlers to consumers;

(3) Milk dealers or handlers to stores, either for consumption at the stores or sale to consumers;

(4) Stores to consumers, except for consumption at the store where sold.

Nothing herein contained shall be construed to empower the board to fix the price at which milk may be sold by any milk dealer or handler or producer to consumers for consumption on the premises of such milk dealer or handler or producer.

The fixing of minimum wholesale or retail prices for condensed or concentrated milk, bulk cream handled between milk dealers or handlers, and ice cream mix, shall be discretionary with the board.

(802 amended Dec. 21, 1984, P.L.1278, No.243)

Section 803. Prices to Producers.--The board shall fix, by official order, the minimum prices or a formula for the setting of minimum prices to be paid by milk dealers or handlers to producers for milk or milk components sold or delivered or made available on consignment or otherwise by producers to dealers or handlers: Provided, however, That the fixing of prices to be paid by milk dealers or handlers to producers for milk or milk components to be used solely in manufacturing shall be discretionary with the board.

(803 amended Dec. 21, 1984, P.L.1278, No.243)

Section 804. Classification.--When, pursuant to any statute or regulations or orders adopted thereunder, or any ordinance or reasonable trade practice, various grades of milk are specified, orders of the board fixing minimum or maximum prices may be applicable to each grade or milk component. Orders of the board fixing minimum or maximum prices may vary in different markets, and shall designate the markets to which applicable. Such orders may likewise classify milk and milk dealers or handlers in any reasonable manner which the board deems advisable, and may vary according to the classes to which they are applicable. The orders of the board with respect to the minimum prices to be paid to producers and others shall apply to the area in which the milk is produced, or to the area in which the milk so produced is manufactured, sold or distributed, as the board shall provide, and may vary in different areas according to varying uses, grades and conditions. Each such order may classify such milk by forms, classes, grade or uses, as the board may deem advisable, and may specify the minimum prices therefor. Other reasonable methods of classification may be prescribed by the board.

(804 amended Dec. 21, 1984, P.L.1278, No.243)

Section 805. Price Increases.--It is hereby declared to be the legislative intent that the benefits of any increase of prices received by milk dealers, by virtue of the minimum price provisions of this article, shall be given to producers, except in any case where the board deems a deviation from this policy necessary in order lawfully to maintain proper milk markets and outlets for producers and consumers. The board shall, whenever it deems such action necessary, issue orders, rules or regulations to effectuate this intent.

(805 amended July 31, 1968, P.L.963, No.294)

Section 806. Terms and Method of Payment.--The board may likewise fix, by official order, the terms upon which milk dealers shall pay producers and others for milk, may prescribe the method of computing payment therefor, and may prescribe a form of written statement to be sent to producers with each payment.

(806 amended July 31, 1968, P.L.963, No.294)

Section 807. Violations.--After the board shall have fixed prices to be charged or paid for milk, whether by class, grade, use or otherwise, it shall be unlawful for a milk dealer or handler or producer or directors or officers of a cooperative association or corporation, knowingly or unknowingly, or any other person knowingly, by himself or through another, to sell or deliver, or make available on consignment or otherwise, or buy or receive, or handle on consignment or otherwise, or offer to sell or deliver or make available on consignment or otherwise, or buy or receive or handle on consignment or otherwise, or advertise for sale, delivery, purchase or receipt, or hold one's self out as willing to sell, deliver, buy or receive milk at any price below the minimum price or above the maximum price applicable to the particular transaction.

It shall be a violation of this act for any milk dealer or handler to provide manufacturing, processing, bottling or delivery services for another dealer for a price less than the costs of the service provided. Costs shall be based upon average per unit cost of the services provided at the plant providing services, as determined in accordance with generally accepted accounting principles and adjusted for significant changes in average per unit cost. In determining the cost of the service provided, the costs of raw milk to all dealers and handlers shall be computed at not less than the minimum prices to producers as determined in accordance with this act or Federal law. All contracts for services must be approved by the board before the service is provided.

No method or device shall be lawful whereby milk is bought or received or handled on consignment or otherwise, or sold or handled or delivered or made available on consignment or otherwise, or offered to be bought or received or handled on consignment or otherwise, or sold or handled or delivered or made available on consignment or otherwise, at a price less than the minimum price applicable to the particular transaction, whether by any discount, premium, rebate, free service, trading stamps, advertising allowance, or extension of credit, or by a combined price for such milk, together with another commodity or a service which is less, or is represented to be less, than the aggregate of the price of the milk and the price or value of such commodity or service when bought or received or handled on consignment or otherwise, sold or delivered or made available on consignment or otherwise, or offered for sale, delivery, purchase, handling or receiving separately or otherwise.

It shall be unlawful for any milk dealer or handler or directors or officers of a cooperative association or corporation, to store, manufacture, process, sell or handle or deliver or make available on consignment or otherwise, any milk for which he has paid, or agreed to pay, a price lower than that fixed by the board for milk of that class or grade.

It shall be unlawful for a milk dealer or handler or directors or officers of a cooperative association or corporation, knowingly or unknowingly, or any other person knowingly, by himself or through another, to store, manufacture, process, sell or deliver, or make available on consignment or otherwise, or buy or receive or handle on consignment or otherwise, or offer to sell or deliver or make available on consignment or otherwise, or buy or receive or handle on consignment or otherwise, milk at a price computed upon false or erroneous weight, butterfat or appropriate milk component tests, grade or classification; or at a price from which have been made deductions not authorized by law or in excess of any deductions so authorized, whether such illegal deductions be in the form of excessive transportation charges or otherwise.

The act of a director, officer, agent or other person acting for or employed by a milk dealer or directors or officers of a cooperative association or corporation shall be deemed the act of such milk dealer or cooperative association or corporation.

(807 amended Dec. 21, 1984, P.L.1278, No.243)

Section 808. Prices of Certain Milk.--It is hereby declared to be the legislative intent that the instant (whenever that may be) that the handling by a milk dealer or handler of milk produced outside of the Commonwealth becomes a subject of regulation by the Commonwealth in the exercise of its police powers, the restrictions set forth in this act respecting such milk so produced shall apply, and the powers conferred on the board by this act, and particularly by this article, shall attach; but such restrictions shall not apply to condensed or concentrated whole milk contained in hermetically sealed cans.

It is also hereby declared to be the legislative intent that the prices prescribed by the board for milk produced in this Commonwealth, and sold or delivered or made available on consignment or otherwise in this Commonwealth for shipment into and ultimate sale in another state, shall not be destructive of the price structure of producers in such other state.

(808 amended July 31, 1968, P.L.963, No.294)

Section 809. Cooperatives.--It is hereby declared to be the legislative intent that no provision of this act shall prevent, and no provision contained herein shall be deemed or construed to prevent, any cooperative agricultural association or corporation organized under the laws of this Commonwealth, or a similar association or corporation organized under the laws of this or any other state, and engaged in making collective sales or in the marketing of milk for the producers thereof, from blending the net proceeds of its sales or consignments or deliveries in all its markets or of its sales or deliveries within any particular market in various classes and whether in fluid form or as manufactured products, both within and without the Commonwealth, and paying its producers such blended price, with such deductions and differentials as may be authorized under contract between such association or corporation, and its producers, and with prior written approval of the board, or from making collective sales of the milk of its members and other producers represented by it, or from making such sales or deliveries at a blended price based upon sales or deliveries thereof in the various classes, and whether in fluid form or as manufactured products, both within and without the Commonwealth, which price is to be paid either directly to the producers or to the cooperative agricultural association or corporation. Nothing herein contained shall prevent any milk dealer or handler from contracting for his milk with such cooperative agricultural association or corporation, upon such basis; but all such contracts shall be upon the basis of the prices fixed by the board, with the result that the net price received for milk by such cooperative association or corporation shall be commensurate with such prices. No director or officer of a cooperative association or corporation shall offer, nor shall milk dealers or handlers, or agents thereof, receive from any producer or from such cooperative association or corporation, directly or indirectly, any discounts, rebates, free service, or compensation through rentals, extension of credit, or otherwise for the purpose or with the effect, of reducing the net cost to the dealer or handler for milk purchased or received by or through such cooperative association or corporation.

No provision of this act shall be deemed or construed to affect the contracts of such cooperative agricultural association or corporation with its producers, except as hereinafter specifically provided, nor to affect or abridge the rights and powers of such an association or any of its operations: Provided, however, That the powers of subpoena, entry, and inspection, vested in the board under this act, shall apply for the purpose of examining and auditing books and records of any such cooperative agricultural association or corporation, at reasonable intervals, for the purpose of administering this act. This section shall not, however, be construed to exempt such association or corporation from the jurisdiction of the board over the prices at which it may sell milk to milk dealers or handlers, stores or consumers.

Every cooperative agricultural association or corporation operating under the provisions of this section shall file with the board a copy of its certificate of incorporation and by-laws, and a copy of each form of contract employed in its relations with producers, within sixty (60) days after the effective date of this act.

(809 amended July 31, 1968, P.L.963, No.294)

ARTICLE IX

APPEALS AND REVIEW

Section 901. Appeals from General Orders.--Any person aggrieved by an order of the board fixing, revising or amending the price at, or the terms upon, which milk may be bought or sold, or by any other general action, rule, regulation or order of the board, may, file an appeal therefrom. Refusal by the board of any application for revision or amendment, filed as provided in section eight hundred one, shall constitute an appealable action within the meaning of this section.

(901 amended July 31, 1968, P.L.963, No.294 and repealed in part Apr. 28, 1978, P.L.202, No.53)

Compiler's Note. Section 509(g)(40) of Act 6 of 1971 provided that section 901 is repealed insofar as it vests jurisdiction and powers in courts in any manner inconsistent with Act 6, provides a time for appeal to an appellate court which is other than the time expressly provided in section 502 of Act 6, provides appeal procedures inconsistent with Act 223 or is otherwise inconsistent with Act 6.

Compiler's Note: Section 508(a)(50) of Act 223 of 1970 provided that section 901 is repealed insofar as it relates to the Court of Common Pleas of Dauphin County.

Compiler's Note: Section 14(a) of Act 185 of 1969 provided that the jurisdiction of the court namd in section 901 is transferred to the Commonwealth Court and section 14(a)(50) of Act 185 provided that section 901 is repealed insofar as it relates to the Court of Common Pleas of Dauphin County.

Section 902. Appeals from Special Orders.--Any person aggrieved by an order of the board in which the board refuses to issue, reissue or transfer, or revokes or suspends, a license to operate as a milk dealer, or by any other order of the board applying only to a particular person or persons named therein and not otherwise specifically provided for, may, file an appeal therefrom.

(902 amended July 31, 1968, P.L.963, No.294 and repealed in part Apr. 28, 1978, P.L.202, No.53)

Compiler's Note. Section 509(g)(40) of Act 6 of 1971 provided that section 902 is repealed insofar as it vests jurisdiction and powers in courts in any manner inconsistent with Act 6, provides a time for appeal to an appellate court which is other than the time expressly provided in section 502 of Act 6, provides appeal procedures inconsistent with Act 223 or is otherwise inconsistent with Act 6.

Compiler's Note: Section 508(a)(50) of Act 223 of 1970 provided that section 902 is repealed insofar as it relates to the Court of Common Pleas of Dauphin County.

Compiler's Note: Section 14(a) of Act 185 of 1969 provided that the jurisdiction of the court namd in section 902 is transferred to the Commonwealth Court and section 14(a)(50) of Act 185 provided that section 902 is repealed insofar as it relates to the Court of Common Pleas of Dauphin County.

Section 903. Supersedeas.--(903 repealed Apr. 28, 1978, P.L.202, No.53)

Section 904. Pleading and Service.--(904 repealed Apr. 28, 1978, P.L.202, No.53)

Section 905. Certification of Record.--(905 repealed Apr. 28, 1978, P.L.202, No.53)

Section 906. Scope of Inquiry.--(906 repealed Apr. 28, 1978, P.L.202, No.53)

Section 907. Costs.--(907 repealed Apr. 28, 1978, P.L.202, No.53)

Section 908. Jurisdiction of Superior and Supreme Courts.--(908 repealed June 3, 1971, P.L.118, No.6)

ARTICLE X

PENALTIES AND REMEDIES

Section 1001. Summary Offenses.--Except as otherwise specially provided in this act, any person violating any provision of this act, or any rule, regulation or order of the board lawfully made, shall for the first and second offense, upon conviction thereof in a summary proceeding, be sentenced to pay the costs of prosecution and a fine of not less than twenty-five dollars ($25.00) nor more than three hundred dollars ($300.00), and, in default thereof, to undergo imprisonment of not less than five (5) days nor more than thirty (30) days. In determining whether an offense is a first or second offense, no offense committed more than five (5) years before the date of the offense being prosecuted shall be considered as a prior offense.

(1001 amended July 31, 1968, P.L.963, No.294)

Section 1002. Misdemeanors.--For a third or subsequent offense committed within a five (5) year period, any person violating any provision of this act, or any rule, regulation or order of the board lawfully made, shall be guilty of a misdemeanor and shall, upon conviction thereof, be sentenced to pay a fine of not less than five hundred dollars ($500.00) nor more than one thousand dollars ($1,000.00), or to undergo imprisonment not exceeding one (1) year, or both, in the discretion of the court.

(1002 amended July 31, 1968, P.L.963, No.294)

Section 1003. Actions to Enforce Compliance.--The board or any person, marketing committee, union or association, composed of persons affected by the orders, rules or regulations of the board, may institute such action at law or in equity as may appear necessary to enforce compliance with any provision of this act, or to enforce compliance with any rule, regulation or order of the board made pursuant to the provisions of this act.

(1003 amended July 31, 1968, P.L.963, No.294)

Section 1004. Application for Injunction; Remedies.--In addition to any other remedy at law or in equity or under this act, the board may apply for relief by injunction, or to enforce compliance with or restrain violations of any provision of this act or any rule, regulation or order of the board made pursuant thereto.

The penalties and remedies prescribed in this act shall be deemed concurrent or contemporaneous, and the existence or exercise of any one remedy herein shall not prevent the board from exercising any other remedy hereunder.

(1004 amended July 31, 1968, P.L.963, No.294 and repealed in part Apr. 28, 1978, P.L.202, No.53)

Compiler's Note: Section 508(a)(50) of Act 223 of 1970 provided that section 1004 is repealed insofar as it relates to the Court of Common Pleas of Dauphin County.

Compiler's Note: Section 14(a) of Act 185 of 1969 provided that the jurisdiction of the court namd in section 1004 is transferred to the Commonwealth Court and section 14(a)(50) of Act 185 provided that section 1004 is repealed insofar as it relates to the Court of Common Pleas of Dauphin County.

Section 1005. Proceedings Before the Board.--Appropriate proceedings against any milk dealer violating this act or the rules, regulations or orders of the board, may be instituted before the board by any producer to whom the lawful price of milk has not been paid or to whom such price has not been fully paid, and such proceedings may also be instituted upon the board's own motion.

(1005 amended July 31, 1968, P.L.963, No.294)

Section 1006. Perjury.--Any person who shall wilfully and corruptly make a false oath or affirmation before the board at any investigation or hearing, or in any report or statement authorized or required by this act, shall be guilty of perjury, and, on conviction, be subject to the penalties prescribed by law for wilfully and corruptly making false oath or affirmation.

(1006 amended July 31, 1968, P.L.963, No.294)

ARTICLE XI

MONEYS AND EXPENSES OF BOARD

(Hdg. amended July 31, 1968, P.L.963, No.294)

Section 1101. Milk Marketing Fund.--All moneys collected or received by the board, arising from license fees, penalties, permits or any other source, shall be paid by the board into the State Treasury through the Department of Revenue, and shall, by the State Treasurer, be placed in a separate fund to be known as the "Milk Marketing Fund." Fines imposed under this act shall be payable to, and collected by, the board, and similarly placed in the Milk Marketing Fund.

Moneys collected or received by the board, that are not funds of the Commonwealth, but are due to producers, dealers or handlers for, or on account of, milk acquired or received by dealers or handlers from producers or other dealers or handlers, and placed in the Milk Marketing Fund, shall be paid to the persons entitled thereto by the State Treasurer, as directed by the board.

(1101 amended July 31, 1968, P.L.963, No.294)

Section 1102. Expenses.--(a) As much of the money in the Milk Marketing Fund as may be necessary shall be annually appropriated to the board to be used to pay its expenses, including the following:

(1) Salaries of the board and of its employes.

(2) Rental and other expenses for offices, rooms, garage space and other accommodations outside of the Capitol Buildings, either in or outside of the capital city, occupied by the board.

(3) Premiums for workers' compensation insurance covering the officers and employes of the board.

(4) Premiums for surety bonds for such officers or employes of the board as may be required by law to furnish such bonds.

(5) Purchase and operating costs of motor vehicles required by the board for full-time use, including premiums for liability insurance covering such motor vehicles and the members of the board and employes operating them; also the amount payable to the Department of General Services for the use of automobiles supplied by it for temporary use by the board.

(6) Furniture, stationery, materials, supplies and all other overhead expenses of the board.

(7) All other expenses of every kind and description necessary for the performance by the board of its work.

((a) amended Nov. 6, 2023, P.L.161, No.25)

(b) All such purchases and leases shall be made, and all such contracts of insurance and surety bonds shall be placed, through the Department of General Services as agent.

(c) Before November 1 of each year, the board shall estimate its total expenses for the fiscal year beginning July 1 of the following year. This estimate shall be submitted to the Governor in accordance with section 610 of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929." At the same time the board submits its estimate to the Governor, the board shall also submit that estimate to the General Assembly through the President pro tempore of the Senate and the Speaker of the House of Representatives. The board, or its designated representatives, shall be afforded an opportunity to appear before the Governor regarding its estimate. ((c) amended Nov. 6, 2023, P.L.161, No.25)

(1102 amended Dec. 20, 1991, P.L.404, No.48)

Section 1103. Refunds.--As much of the money, from time to time, in the Milk Marketing Fund, as may be necessary, is hereby appropriated to the Board of Finance and Revenue, for the payment of approved claims for refund made to the Board of Finance and Revenue, for moneys heretofore or hereafter paid into the Milk Marketing Fund, to which the Commonwealth is not rightfully entitled.

(1103 amended July 31, 1968, P.L.963, No.294)

Section 1104. Payment.--Moneys in the Milk Marketing Fund appropriated to the board shall be paid out upon warrant of the State Treasurer drawn after requisition by the secretary of the board.

(1104 amended Nov. 6, 2023, P.L.161, No.25)

Compiler's Note: Section 4 of Act 48 of 1991 provided that in addition to the appropriations for the 1991-1992 fiscal year in the amount of $950,000 appropriated to the Milk Marketing Board by the act of August 4, 1991 (P.L.483, No.7A), known as the General Appropriation Act of 1991, the sum of $1,067,000 arising from license fees, penalties or permits collected or received by the board and deposited in the Milk Marketing Fund is hereby appropriated to the Milk Marketing Board for the fiscal year commencing July 1, 1991, to June 30, 1992. This item was approved by the Governor in the sum of $628,000.

Section 1105. Miscellaneous Fees.--(1105 repealed July 1, 1978, P.L.730, No.132)

Section 1106. Appropriations.--(1106 repealed July 31, 1968, P.L.963, No.294)

ARTICLE XII

SAVING PROVISIONS

Section 1201. Severability.--It is hereby declared to be the legislative intent that if this act cannot take effect in its entirety because of the decision of any court holding unconstitutional any part, sentence or clause hereof, the remaining provisions of the act shall be given full force and effect as completely as if the part held unconstitutional had not been included herein.

It is hereby declared as the intent of the Legislature that every other part, sentence or clause of this act would have been enacted had such unconstitutional provision not been included herein.

Section 1202. Interstate Commerce.--No provision of this act shall apply, or be construed to apply, to foreign of interstate commerce, except in so far as the same may be effective in accordance with the Constitution of the United States and the laws of the United States enacted pursuant thereto.

Section 1203. Effect upon Proceedings, Duties and Rights under Other Acts of Assembly.--All rules, regulations, orders, suits, hearings, investigations, prosecutions and all other proceedings or actions of any kind whatsoever of the Milk Control Board or the Milk Control Commission of the Commonwealth of Pennsylvania, as created or continued under acts of Assembly prior to the effective date of this act and repealed hereby, in existence or pending prior to or upon the effective date of this act, and all penalties, obligations, appeals or violations of milk dealers and others under said rules, regulations, orders and prior acts of Assembly incurred, pending or accrued prior to or upon the effective date of this act, shall be saved and continued in every manner and for all purposes after the effective date of this act, and shall be continued under the provisions hereof. All employes, papers and possessions of such predecessor board and commission shall become the employes, papers and possessions of and subject to the board created by this act.

The repeal by this act of any other act shall not impair, repeal, or affect any act done, bond posted, offense committed, liability, penalty or judgment incurred, or rule, regulation or order issued prior to the time this act takes effect, but the same may be enforced, prosecuted or inflicted under the provisions of this act to the same extent as if such other act had not been repealed or had not expired.

All licenses, permits, certificates, rules, regulations and orders issued or made under any act repealed by this act, and in full force and effect upon the effective date of this act, shall remain in full force and effect for the term issued or until revoked, suspended or superseded under the provisions of this act or rules, regulations or orders of the board made hereunder.

(1203 amended July 31, 1968, P.L.963, No.294)

Section 1204. Joint Study Committee.--(1204 repealed Nov. 6, 2023, P.L.161, No.25)

ARTICLE XIII

REPEALS AND EFFECTIVE DATE

Section 1301. Acts Specifically Repealed.--The following acts are hereby specifically repealed, except in so far as necessary to sustain or maintain the validity, prosecution or enforcement of any act done, bond posted, offense committed, liability, penalty or judgment incurred, or rule, regulation or order issued thereunder, and saved or continued by this act:

The act approved the fifteenth day of April, one thousand nine hundred seven (Pamphlet Laws, sixty-three), entitled "An act regulating the sale of milk, skim-milk, and cream; establishing the standard of measurement; and providing for the enforcement thereof."

The act approved the sixth day of May, one thousand nine hundred twenty-five (Pamphlet Laws, five hundred forty-one), entitled "An act providing for the protection of the public health and the prevention of fraud and deception by regulating the weighing, testing, buying, and selling of milk and cream; providing for the examination and appointment of certified testers and the issuing of licenses and making of tests; and providing penalties."

The act approved the thirty-first day of May, one thousand nine hundred thirty-three (Pamphlet Laws, one thousand one hundred twenty-six), entitled "An act requiring certain persons, associations, copartnerships, and corporations to keep full accounts and records with respect to the sales and transactions relating to dairy products and to submit the same to inspection by the Secretary of Agriculture, and prescribing the effect of failure to comply with the orders of the Secretary of Agriculture; providing penalties, and prescribing remedies; and by further regulating the issuance and revocation of permits as provided by the act, approved the sixth day of May, one thousand nine hundred and twenty-five (Pamphlet Laws, five hundred forty-one), entitled 'An act providing for the protection of the public health and the prevention of fraud and deception by regulating the weighing, testing, buying and selling of milk and cream; providing for the examination and appointment of certified testers and the issuing of licenses and making of tests; and providing penalties,' as amended."

The act approved the second day of January, one thousand nine hundred thirty-four (One thousand nine hundred thirty-three-One thousand nine hundred thirty-four, Pamphlet Laws, one hundred seventy-four), entitled "An act relating to milk and the products thereof; declaring an emergency with respect to their production and marketing; creating a Milk Control Board; establishing its jurisdiction, powers and duties; regulating the production, transportation, manufacture, processing, storage, distribution, delivery, and sale of milk and the products thereof; providing for the licensing of milk dealers and the payment of fees therefor; requiring licensees to furnish bonds for the protection of producers; authorizing the examination of the business, papers, and affairs of, and requiring the filing of reports by, licensees, other milk dealers and producers, and permitting with limitations the dissemination of information obtained therefrom; authorizing the issuance of subpoenas by the board or its agents, and conferring jurisdiction upon courts to punish contempts or to prohibit violations of orders of the board; providing for appeals to the courts from decisions of the Milk Control Board; imposing penalties; and making an appropriation."

The act approved the thirtieth day of April, one thousand nine hundred thirty-five (Pamphlet Laws, ninety-six), entitled "An act to re-enact and amend the title and the act, approved the second day of January, one thousand nine hundred thirty-four (One thousand nine hundred thirty-three-One thousand nine hundred thirty-four, Pamphlet Laws, one hundred seventy-four), entitled 'An act relating to milk and the products thereof; declaring an emergency with respect to their production and marketing; creating a Milk Control Board; establishing its jurisdiction, powers and duties; regulating the production, transportation, manufacture, processing, storage, distribution, delivery, and sale of milk and the products thereof; providing for the licensing of milk dealers and the payment of fees therefor; requiring licensees to furnish bonds for the protection of producers; authorizing the examination of the business, papers, and affairs of, and requiring the filing of reports by, licensees, other milk dealers and producers, and permitting with limitations the dissemination of information obtained therefrom; authorizing the issuance of subpoenas by the board or its agents, and conferring jurisdiction upon courts to punish contempts or to prohibit violations of orders of the board; providing for appeals to the courts from decisions of the Milk Control Board; imposing penalties; and making an appropriation,' by extending the provisions of the act for a further period of time; prohibiting the sale of milk in certain cases; enlarging and modifying the definition of milk to include ice cream mix, powdered whole milk, and powdered skimmed milk; changing, adding to, and increasing license fees, and further prescribing the method of computing such fees, requiring all licensees to file bonds or collateral without any exceptions; providing for a supersedeas in certain cases of appeal; conferring certain powers upon the Governor; conferring upon the board certain additional powers over cooperative agricultural associations or corporations, also over milk prices; and authority to establish marketing area enforcement committees; providing new, and changing existing notices and penalties; and making an appropriation."

The act approved the ninth day of July, one thousand nine hundred thirty-five (Pamphlet Laws, six hundred fourteen), entitled "An act to amend section one as amended, sections two and three, sections four and five as amended, and sections six, eight, nine, eleven, and twelve of, and to add section fourteen A to, the act, approved the sixth day of May, one thousand nine hundred and twenty-five (Pamphlet Laws, five hundred forty-one), entitled 'An act providing for the protection of the public health and the prevention of fraud and deception by regulating the weighing, testing, buying, and selling of milk and cream; providing for the examination and appointment of certified testers and the issuing of licenses and making of tests; and providing penalties,' further regulating the issuing of permits; prohibiting the taking of unfair and inaccurate samples; requiring licensed testers to keep certain records; prescribing fees for examinations; providing for tests for official inspections and records; further regulating the weighing and testing of milk and cream; providing for notices to parties affected by tests; providing for sales by butterfat tests; and empowering the Secretary of Agriculture to adopt rules and regulations."

Section 1302. Effective Date.--This act shall become effective immediately upon its final enactment.

APPENDIX

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Supplementary Provisions of Amendatory Statutes

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1984, DECEMBER 21, P.L.1278, NO.243

Section 7. This act reestablishes the Milk Marketing Board in accordance with the procedures set forth in section 7(a) of the act of December 22, 1981 (P.L.508, No.142), known as the Sunset Act.

Compiler's Note: Act 243 added or amended sections 103, 201, 202, 204, 306, 308.1, 310, 402, 403, 404, 404.1, 513, 553, 602, 603, 606, 607, 608, 701, 801, 802, 803, 804, 807 and 1204 of Act 105.

Section 8. The presently confirmed members of the Milk Marketing Board as of December 31, 1984, shall continue to serve as board members until their present terms of office expire.

Section 10. Each rule and regulation of the board in effect on December 31, 1984, shall continue to remain in effect until repealed or amended by the board.