HOUSE BILL REPORT

SHB 783

BYHouse Committee on Agriculture & Rural Development (originally sponsored by Representatives 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 PASSED HOUSE MARCH 9, 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:

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.

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.