LRB-1864/1
RCT:jld:jf
2003 - 2004 LEGISLATURE
July 7, 2003 - Introduced by Representatives Ward, Ott, Albers, Bies, Freese,
Gard, Gronemus, Grothman, Gunderson, Hahn, Hines, Hundertmark,
Kestell, M. Lehman, Montgomery, Musser, Nass, Olsen, Towns, Van Roy,
Weber
and Petrowski, cosponsored by Senators S. Fitzgerald, Schultz,
Kedzie, A. Lasee
and Roessler. Referred to Committee on Agriculture.
AB430,1,3 1An Act to amend 100.22 (3); and to repeal and recreate 100.22 (1m) of the
2statutes; relating to: authorizing the payment of different prices to milk
3producers based on specified criteria.
Analysis by the Legislative Reference Bureau
Current law generally prohibits a person engaged in the business of buying
milk from producers from discriminating between producers in the price paid for
milk. It is a defense to prosecution for violating this prohibition that the
discrimination in price was done in good faith to meet competition or was
commensurate with an actual difference in the quantity of, or transportation charges
for, the milk purchased. Current law also authorizes a person to pay producers
different prices for milk based on differences in milk quality if certain conditions are
satisfied.
This bill authorizes a person engaged in the business of buying milk from
producers to pay producers different prices for milk based on criteria specified by the
person if certain conditions are satisfied. The conditions include that the person
must establish a payment method based upon the specified criteria and that the
person must make payment in accordance with the payment method to all producers
from whom the person buys milk. Under the bill, the fact that the discrimination was
commensurate with an actual difference in the quantity of, or transportation charges

for, the milk purchased is no longer a defense to prosecution for violating the
prohibition on milk price discrimination.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB430, s. 1 1Section 1. 100.22 (1m) of the statutes is repealed and recreated to read:
AB430,2,42 100.22 (1m) Milk pricing. A person engaged in the business of buying milk
3from producers for the purpose of manufacturing, processing, or resale may pay
4producers different prices for milk, if all of the following apply:
AB430,2,75 (a) Before making any payment to producers under this subsection, the person
6engaged in the business of buying milk from producers establishes a payment
7method based upon criteria specified by the person.
AB430,2,118 (b) Before making any payment to producers under this subsection, the person
9engaged in the business of buying milk from producers announces, and offers to
10make payment in accordance with, the payment method established under par. (a)
11to all producers from whom the person buys milk.
AB430,2,1412 (c) The person engaged in the business of buying milk from producers pays all
13milk producers from whom the person purchases milk in accordance with the
14payment method established under par. (a).
AB430,2,1715 (d) The payment method established under par. (a) is not part of any other
16method used to discriminate between producers in the price paid for milk or in
17services furnished in connection with the purchase of milk.
AB430,2,2018 (e) If the payment method established under par. (a) requires testing of milk,
19the person engaged in the business of buying milk complies with any rules
20promulgated by the department concerning payment based on milk tests.
AB430, s. 2 21Section 2. 100.22 (3) of the statutes is amended to read:
AB430,3,5
1100.22 (3) Justification defense. It is a defense to a prosecution for violation
2of this section or a special order issued under this section to prove that the
3discrimination in price or services was done in good faith to meet competition or was
4commensurate with an actual difference in the quantity of or transportation charges
5or marketing expenses for the milk purchased
.
AB430,3,66 (End)
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