PETITION OF:

SECTION 1. The following terms will be added to the definitions section of Chapter 94A, Section 1:

“Average net raw milk price” shall mean the average net blended milk price paid to producers of milk in the state, including premiums and discounts; and

“Retail milk dealer” shall mean any milk dealer selling fluid milk directly to ultimate consumers.

SECTION 2. Chapter 94A of the General Laws is hereby amended by adding the following section 11A: --

Chapter 94A, Section 11A. Retail milk dealer fees.

(a) Fee: Upon notification by the Commissioner [of the Department of Natural Resources], the Department of Revenue shall levy and impose a retail milk dealer fee at the rate established in subsection (c) on the handling of milk sold at retail to final consumers for consumption off the retail milk dealer’s premises in the Commonwealth. The fee shall be paid by the retail milk dealer making such sale to the final consumer. Milk packaged for sale in containers of less than one quart or more than 20 quarts in volume, or packaged milk that is sold to an institution that is owned and operated by any town or municipality, the Commonwealth, or the Federal government shall be exempt from the retail milk dealer fee.

(b) Open Space Preservation Fund: The Department of Revenue shall deposit fees collected pursuant to this section into the Open Space Preservation Fund maintained by the Commissioner.

(c) Rate of Fee: The rate of the retail milk dealer fee shall be established for each fee period on the basis of the average net raw milk price established by the Bureau in accordance with the following:

If the average net raw milk price is $18.50 per hundredweight and above, the retail milk dealer fee is 0¢ per retail gallon;

(1) If the average net raw milk price is $18.00 to $18.49 per hundredweight, the retail milk dealer fee is 1¢ per retail gallon;

(2) If the average net raw milk price is $17.50 to $17.99 per hundredweight, the retail milk dealer fee is 2¢ per retail gallon;

(3) If the average net raw milk price is $17.00 to $17.49 per hundredweight, the retail milk dealer fee is 4¢ per retail gallon;

(4) If the average net raw milk price is $16.50 to $16.99 per hundredweight, the retail milk dealer fee is 8¢ per retail gallon;

(5) If the average net raw milk price is $16.00 to $16.49 per hundredweight, the retail milk dealer fee is 10¢ per retail gallon;

(6) If the average net raw milk price is below $16.00, the retail milk dealer fee is 12¢ per retail gallon;

For any container other than a gallon, the fee is computed on a gallon-equivalent basis. The commissioner may change or alter the retail milk dealer fee rates after a hearing conducted pursuant to section 16 of this Chapter.

(c) Fee period: Retail milk dealers shall pay the fee on a calendar month basis within 30 days after the end of the each calendar month. Retail milk dealers shall maintain records of all transactions subject to this section for a period of three years. The Department of Revenue shall implement procedures and regulations as necessary to carry out the purposes of this Act.

(d) Licensing: Notwithstanding any other provision of this Chapter, including section 4(b) of this Chapter, every retail milk dealer shall register as a milk dealer within 30 days of becoming subject to the retail milk dealer fee.

SECTION 3. The following subsection will be added to Chapter 94A, Section 14:

(e) Prohibited activities: Any retail dealer which passes the cost of the retail milk dealer fee on to consumers in the form of higher retail prices will be subject to license revocation or refusal of license renewal pursuant to section 6 of this Chapter.

SECTION 4: If any section, part, clause or phrase in this Act, is for any reason held to be invalid or unconstitutional, sections parts, clauses and phrases in said act not held to be invalid or unconstitutional shall not be affected and shall remain in full force and effect.