N.Y. Comp. Codes R. & Regs. tit. 1 § 43.6

Current through Register Vol. 46, No. 45, November 2, 2024

Section 43.6 - Operation of producers security fund

(a) Annually, and at such other times as he deems appropriate, the commissioner shall determine the amount of money to be accumulated in the producers security fund sufficient to protect the interests of producers in accordance with section 258-b(4)(b) of the law. The commissioner's determination shall be promptly announced to milk dealers participating in the producers security fund.

(b) Each milk dealer who participates in the producers security fund shall on or before the 25th day of each month make payment to the commissioner, at the rate per hundredweight announced for the fiscal year pursuant to section 258- b(3)(a) of the law or at such lesser rate as may be established pursuant to section 258-b(3)(b) of the law, on all milk purchased, received or handled from producers during the preceding month. Such payment shall be reduced by the amount of any credit the commissioner issues to the milk dealer pursuant to subdivision (f) of this section applying to such monthly payment and the balance payable shall be considered the dealer's net monthly payment to the fund. The amount of a milk dealer's required net monthly payment to the producers security fund may be increased by one percent for each month or portion thereof that such payment is received after the due date. Notwithstanding the payment of late charges, the commissioner may take such action against the milk dealer for late payment as he deems appropriate pursuant to the law.

(c) The balance in the producers security fund shall be determined monthly by the commissioner, including any interest credited to the fund and allowing for payments from the fund for the expense of administration, withdrawals by milk dealers who terminate their participation therein, any credits issued or paid from the fund, claims paid from the fund not reimbursed by the defaulting milk dealer and any amounts the commissioner has reason to believe will be paid from the fund as a result of pending claims.

(d) An account shall be maintained by the commissioner for each milk dealer who participates in the producers security fund, showing his initial and net monthly payments to the fund and any cash credits or rebates received from the fund.

(e) Each milk dealer's percentage (pro rata) share of the balance in the producers security fund to be computed by the commissioner at the close of each calendar quarter shall be his total net payments to date less any rebates or other cash credits he has received from the fund divided by the total of such payments less rebates and cash credits of all dealers participating in the fund at the close of such calendar quarter; provided that:

(1) Any milk dealer who has defaulted in paying producers or a producer settlement or equalization fund for an order promulgated under section 258-m or 258-n of the law for which a claim or claims have been paid or there is reason to believe will be paid from the producers security fund, and has not promptly reimbursed the fund in full for such claim or claims, shall have his percentage share of the balance in the fund reduced to the extent of all such claims.

(2) Any milk dealer who fails to make payment to the producers security fund in accordance with subdivision (b) of this section shall have his percentage share of the balance in the fund reduced to the extent of such delinquent payments.

(f) Whenever the balance in the producers security fund at the close of a calendar quarter exceeds, by more than two percent, the amount the commissioner determines should be accumulated in the fund pursuant to subdivision (a) of this section, he shall compute a credit for each participating milk dealer by multiplying the dealer's percentage share, as calculated pursuant to subdivision (e) of this section, times the amount by which the balance in the fund exceeds the amount the commissioner has determined should be so accumulated. Notice of any such credits shall be issued to each participating milk dealer for application to such dealer's monthly payments to the fund during the next calendar quarter. If a credit or credits issued to a milk dealer exceed the amount of his required payments to the fund during such calendar quarter, such excess credits shall be paid by the commissioner to the dealer at the close of the calendar quarter.

(g) At least twice each year, the commissioner shall report to participating milk dealers and producers on receipts and disbursements from the producers security fund, the balance therein and such other information about the fund as he deems of importance to such interested persons.

N.Y. Comp. Codes R. & Regs. Tit. 1 § 43.6