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PA Bulletin, Doc. No. 97-1809



Hearing, Presubmission Schedule and Prehearing Conference for Milk Marketing Area No. 1

[27 Pa.B. 5845]

   Under the Milk Marketing Law (31 P. S. § 700j-101 et seq.) the Milk Marketing Board (Board) will conduct a public hearing for Milk Marketing Area No. 1 on January 21, 1998, commencing at 9 a.m. in Room 202 of the Agriculture Building, 2301 North Cameron Street, Harrisburg, PA. If necessary, the hearing will be continued on January 22 at the same time and location.

   The sole purpose of the hearing is to receive evidence concerning whether the current discount system for school milk in Milk Marketing Area No. 1 should be modified. ''School'' is defined as a public or private educational institution serving any grade levels between kindergarten and grade 12.

   To ensure a complete hearing record, the Board has established the following evidentiary guidelines. This list is not intended to be inclusive or to discourage parties from presenting additional relevant evidence.

Milk dealers and Board staff

   1.  Delivery costs and points--broken down into controlled points and noncontrolled points--for products sold to a cross-section of schools. The cross-section shall include only schools receiving limited service delivery as defined in Official General Order A-890A and shall be stratified based on various categories of average weekly delivery volumes. If a cross-section receiving only limited service delivery cannot easily be established--for example, if milk truck drivers typically place milk in the schools' coolers--a cross-section receiving additional services is acceptable. Evidence shall then identify these additional services. Verification of delivery procedures and services should be obtained from interviews with the milk truck drivers.

   2.  For September 1997, a comparison between prices milk dealers charged the cross-section schools and the minimum prices available to schools (taking into account the 18% discount, the stop charge shown on the October 1997 Area 1 wholesale price schedule, and the $0.0128 deduction per half pint for school milk).

   3.  A comparison between delivery characteristics of the cross-section schools during September 1997 and during September 1996 under the previous discount system for school milk. These characteristics shall include number of deliveries per week, volume per delivery and whether any deliveries are exclusively for noncontrolled products.

   4.  For dealers that sell to out-of-State schools, a comparison between the price charged to each school (along with associated delivery volumes) and the minimum discounted price available to schools in the adjacent Pennsylvania Milk Marketing Area during the same time period.

   5.  Proposals for revising or retaining the current discount system for school milk.

Schools and Board staff

   6.  A break-even analysis of costs (for example, for an additional milk cooler) and savings (for example, lower milk prices) to the cross-section schools (see paragraph 1 for information on the cross-section) associated with consolidated school deliveries--that is, the point at which it is economically worthwhile for schools to receive fewer deliveries.


   7.  For schools that wish to offer testimony concerning costs and related profitability of milk:

   a.  Price charged for milk sold a la carte.

   b.  Amount school receives for milk sold as part of a meal. This amount is found by applying the formula ''B divided by the sum of (B plus C) times A'' when:

   A is the amount the school receives for the entire meal (taking into account prices paid by students for full- and reduced-price meals, and reimbursements from State and Federal sources for full-price, reduced-price and free meals)

   B is the cost of milk, including the cost to purchase and handle (receive, store, rotate and sell) milk

   C is the cost of other food items, including the cost to purchase, prepare and handle these items

   Example: A is $1.50. B is $.25. C is $.75. The amount received for the milk portion of the meal is $.375:

   $.25 ÷ ($.25 + $.75) x $.1.50 = $.375

   8.  For schools that wish to offer testimony on the cost of obtaining milk out of State, documentation (for example, signed bid sheets) of the out-of-State price, including delivery costs, for milk and for other products, such as juices, that are included in the bid.

   9.  Proposals for revising or retaining the current discount system for school milk.

   The staff of the Board is deemed to be a party to this hearing, and the staff's attorney is deemed to have entered her appearance on their behalf. Other persons that may be affected by the Board order establishing a discount system for school milk in Area 1 may be included on the Board's list of parties by:

   *  Having their counsel file with the Board, on or before November 17, 1997, a notice of appearance substantially in the form prescribed by 1 Pa. Code §  31.25, which shall identify by name and address the party on whose behalf the appearance is made. Thereafter, documents and other written communications required to be served upon or furnished to that party shall be sent to the attorney of record.

   *  If unrepresented by counsel and wishing to appear on their own behalf under 1 Pa. Code §  31.21, filing with the Board, on or before November 17, 1997, an address to which documents and other written communications required to be served upon them or furnished to them may be sent.

   A.  Each party shall file with the Board seven copies and serve on all other parties one copy of the following on or before December 10, 1997:

   1.  A list of witnesses who will testify for the party. A witness who will be offered as an expert shall be so identified, along with the witness's area or areas of proposed expertise.

   2.  A statement of the subjects concerning which each witness will testify.

   3.  Each exhibit to be presented, including testimony to be offered in written form.

   B.  Requests by parties for Board staff to provide data pertinent to the hearing shall be made in writing and received in the Board office on or before November 21, 1997.

   C.  A list of rebuttal witnesses and copies of rebuttal exhibits shall be filed with the Board (seven copies) and served on all other parties (one copy) on or before December 22, 1997.

   D.  Parties shall have available in the hearing room at least 20 copies of the exhibits described in paragraphs A and C for distribution to nonparties attending the hearing.

   E.  Parties that wish to offer in evidence documents on file with the Board, public documents or records in other proceedings before the Board, or who wish the Board to take official notice of facts, shall comply with, respectively, 1 Pa. Code §§ 35.164, 35.165, 35.167 or 35.173. Whenever these rules require production of a document as an exhibit, copies shall be provided to each Board member and to all other parties; in addition, at least 20 copies shall be available for distribution to nonparties attending the hearing.

   The Board may exclude witnesses, exhibits or other evidence of a party that fails to comply with the requirements of paragraph A, C or E.

   A prehearing conference for all parties will be held at 1:30 p.m. on January 15, 1998, in Room 110 of the Agriculture Building, 2301 North Cameron Street, Harrisburg, PA. Parties shall come prepared to address requests for the production of documents relied on in formulating their testimony and exhibits.

   The filing address for the Board is Milk Marketing Board, Room 110, Agriculture Building, 2301 North Cameron Street, Harrisburg, PA 17110-9408.

   If this information is required in an alternate format, call (717) 787-4194 or 1 (800) 654-5984 (PA Relay Service for TDD Users).

Executive Secretary

[Pa.B. Doc. No. 97-1809. Filed for public inspection November 7, 1997, 9:00 a.m.]

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