FINAL BILL REPORT

SHB 783

                                  C 164 L 87

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

Senate Committee on Agriculture

SYNOPSIS AS ENACTED

BACKGROUND:

The state's Milk Pooling Act was enacted in 1971.  Under the act, the director of the Department of Agriculture is authorized, under certain circumstances, to prescribe marketing areas, establish pooling arrangements and formulate marketing plans for milk.  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 acting as a conspiracy or combination in restraint of trade or as 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 acting as a conspiracy or combination in restraint of trade or as an illegal monopoly under the terms of the state's Milk Pooling Act.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    48     0

EFFECTIVE:July 26, 1987