HOUSE BILL REPORT

HB 783

BYRepresentatives Rasmussen, L. Smith, Rayburn, Baugher, Todd, McLean, Kremen, Doty, Holm, Peery, Jesernig and P. King 

Allowing the Marketing Association of a cooperative to enter into discussions pertaining to milk agreements.

House Committe on Agriculture & Rural Development

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (12)

     Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Bristow, Brooks, Chandler, Doty, Holm, Jacobsen, McLean, Moyer, Nealey and Rasmussen.

House Staff:Kenneth Hirst (786-7105)

AS REPORTED BY COMMITTEE ON AGRICULTURE & RURAL DEVELOPMENT

FEBRUARY 19, 1987

BACKGROUND:

The state's Milk Pooling Act was enacted in 1971.  Under the act, the director of Agriculture is authorized to prescribe marketing areas, establish pooling arrangements and formulate marketing plans for milk in certain circumstances.  Once a marketing plan is effective in a marketing area, no milk dealer subject to the provisions of the plan may handle milk without obtaining an annual license from the director.  The act empowers the director to deny, suspend or revoke a license if a milk dealer has been party to a combination to fix prices contrary to law.  A cooperative association making collective sales and marketing milk under state laws governing agricultural cooperative associations is not to be construed to be a conspiracy or combination in restraint of trade or an illegal monopoly.

SUMMARY:

SUBSTITUTE BILL:  A cooperative association making collective sales and marketing milk through a marketing agent, under state laws governing agricultural cooperatives, is not to be construed to be a conspiracy or combination in restraint of trade or an illegal monopoly under the state's Milk Pooling Act.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill corrects a grammatical error found in the original bill.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Dan Coyne, Washington Dairymen's Federation.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     If the Milk Pooling Act is activated, the agents of cooperatives will need the protection provided by this bill.

House Committee - Testimony Against: None Presented.