RULES AND REGULATIONS
Title 7--AGRICULTURE
MILK MARKETING BOARD
[7 PA. CODE CH. 145]
Transactions Between Dealers and Customers; Dealer Inducements
[35 Pa.B. 5258] The Milk Marketing Board (Board), under authority of section 307 of the Milk Marketing Law (act) (31 P. S. § 700j-307), amends §§ 145.11, 145.21 and 145.26 (relating to financing; giveaways; and extension of credit to wholesale customers) and deletes § 145.25 (relating to loans and credit; wholesale customers).
Notice of proposed rulemaking was published at 35 Pa.B. 1772 (March 19, 2005) with an invitation to submit written comments within 30 days. The Board received no comments during the public comment period. The Senate Committee on Agriculture and Rural Affairs and the House Agriculture and Rural Affairs Committee offered no comments, suggestions or objections to the proposed rulemaking. The Independent Regulatory Review Commission (IRRC) offered no comments, suggestions or objections to the proposed rulemaking.
Purpose
The principal purpose of the final-form rulemaking is to prohibit loans made by Board licensed milk dealers to their customers. Section 807 of the act (31 P. S. § 700j- 807) provides that ''no method or device shall be lawful whereby milk is bought or received . . . , or sold . . . or delivered . . . , or offered to be bought or received . . . , or sold . . . or delivered . . . , at a price less than the minimum price applicable to the particular transaction . . . .'' Milk dealers, in the course of acquiring new customers, sometimes make loans to these customers. Examining these loans to determine if they have the effect of bringing any particular transaction below the minimum price applicable for that transaction raises a myriad of valuation and enforcement issues. Widespread use of loans also has the potential to cause market disruption in some areas of this Commonwealth. In addition, the Board believes that the majority of milk dealers do not want to provide loans to customers, but in many cases the dealers feel that they must make a loan to retain or acquire a customer. The Board believes that prohibiting loans will tend to reduce the potential for market disruption and will lead to improved compliance with the act's minimum pricing provisions.
A secondary purpose of the final-form rulemaking is to achieve greater clarity and consistency in the regulations.
Paperwork Estimates
There will be no additional paperwork requirements due to this final-form rulemaking.
Effective Date
The final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.
Sunset Date
There is no sunset date.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 4, 2005, the Board submitted a copy of the notice of proposed rulemaking, published at 35 Pa.B. 1772, to IRRC and the Chairpersons of the Senate Committee on Agriculture and Rural Affairs and the House Agriculture and Rural Affairs Committee for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Department has considered all comments from IRRC, the House and Senate Committees and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on July 13, 2005, the final-form rulemaking was deemed approved by the House and Senate Committees. The final-form rulemaking was deemed approved by IRRC under section 5(g) of the Regulatory Review Act, effective July 13, 2005.
Contact Person
The official responsible for information on this final-form rulemaking is Keith Bierly, Secretary, Milk Marketing Board, 2301 North Cameron Street, Harrisburg, PA 17110-9408, (717) 787-4194.
Findings
The Board finds that:
(1) Public notice of the intention to adopt the final-form rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law.
(3) The final-form rulemaking is necessary and appropriate for the administration of the act.
Order
The Board, acting under authorizing statute, orders that:
(a) The regulations of the Board, 7 Pa. Code Chapter 145, are amended by amending §§ 145.11, 145.21 and 145.26 and by deleting § 145.25 to read as set forth at 35 Pa.B. 1772.
(b) The Board will submit this order and 35 Pa.B. 1772 to the Office of Attorney General for review and approval as to legality and form as required by law.
(c) The Board shall certify this order and 35 Pa.B. 1772 and deposit them with the Legislative Reference Bureau as required by law.
(d) The order shall take effect upon publication in the Pennsylvania Bulletin.
BOYD E. WOLFF,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 35 Pa.B. 4270 (July 30, 2005).)
Fiscal Note: Fiscal Note 47-11 remains valid for the final adoption of the subject regulations.
[Pa.B. Doc. No. 05-1771. Filed for public inspection September 23, 2005, 9:00 a.m.]
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