STATE OF OKLAHOMA

2nd Session of the 52nd Legislature (2010)

SENATE BILL 1644	By:	Wyrick

AS INTRODUCED

An Act relating to agriculture; creating the Oklahoma Dairy Stabilization Act; providing short title; stating intent; defining term; creating the Dairy Stabilization Grant; allowing certain grants to be paid to milk producers under certain circumstances; providing for promulgation of rules; providing for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 7-422 of Title 2, unless there is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Oklahoma Dairy Stabilization Act”.
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 7-423 of Title 2, unless there is created a duplication in numbering, reads as follows:
It is the policy of this state and the purpose of the Oklahoma Dairy Stabilization Act to reduce the decline in the number of dairy farms in a manner that shall:
1.  Prevent harm to Oklahoma’s consumers and dairy industry;
2.  Establish the Dairy Stabilization Program that will safeguard the interests of dairy producers in this state;
3.  Ensure that dairy producers receive fair market breakeven prices;
4.  Provide consumers a continuous and affordable supply of Oklahoma-produced fluid milk and other dairy products;
5.  Reverse the loss of dairy farms in this state;
6.  Significantly curtail the increase in milk prices to the consumer by helping to ensure in-state production; and
7.  Maintain and potentially increase jobs in the processing of milk products by stabilizing prices to dairy farmers.
SECTION 3.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 7-424 of Title 2, unless there is created a duplication in numbering, reads as follows:
A.  As used in this section, “milk producer” means a person or entity that operates a bovine dairy farm that possesses a valid permit issued by the Commissioner of Agriculture.
B.  There is hereby created in the Oklahoma Department of Agriculture, Food, and Forestry the “Dairy Stabilization Grant”.
C.  If funds are available, the Commissioner of Agriculture shall calculate monthly the difference between the average monthly blend price of milk received by Oklahoma milk producers as estimated by the Commissioner and seventy percent (70%) of the average monthly cost of producing milk in Texas and Arkansas as estimated by the United States Department of Agriculture.
D.  If the average monthly bend price of milk received by Oklahoma milk producers is lower than seventy percent (70%) of the calculated average cost of producing milk in Texas and Arkansas, the milk producer is eligible for a monthly Dairy Stabilization Grant in the amount of the difference which will be paid quarterly.
E.  The Commissioner shall not pay a milk producer more than Five Dollars ($5.00) per hundred weight of milk per month under subsection C of this section.
F.  Grants received by a milk producer under this section shall not exceed an annual average of Two Dollars ($2.00) per hundred weight of milk.
G.  The State Board of Agriculture shall promulgate rules to implement the Oklahoma Dairy Stabilization Act.
SECTION 4.  This act shall become effective November 1, 2010.

52-2-2704	JT	1/8/2010 9:53:13 AM