Pennsylvania Statutes Title 31 P.S. Food § 700j-809. Cooperatives

It is hereby declared to be the legislative intent that no provision of this act shall prevent, and no provision contained herein shall be deemed or construed to prevent, any cooperative agricultural association or corporation organized under the laws of this Commonwealth, or a similar association or corporation organized under the laws of this or any other state, and engaged in making collective sales or in the marketing of milk for the producers thereof, from blending the net proceeds of its sales or consignments or deliveries in all its markets or of its sales or deliveries within any particular market in various classes and whether in fluid form or as manufactured products, both within and without the Commonwealth, and paying its producers such blended price, with such deductions and differentials as may be authorized under contract between such association or corporation, and its producers, and with prior written approval of the board, or from making collective sales of the milk of its members and other producers represented by it, or from making such sales or deliveries at a blended price based upon sales or deliveries thereof in the various classes, and whether in fluid form or as manufactured products, both within and without the Commonwealth, which price is to be paid either directly to the producers or to the cooperative agricultural association or corporation. Nothing herein contained shall prevent any milk dealer or handler from contracting for his milk with such cooperative agricultural association or corporation, upon such basis; but all such contracts shall be upon the basis of the prices fixed by the board, with the result that the net price received for milk by such cooperative association or corporation shall be commensurate with such prices. No director or officer of a cooperative association or corporation shall offer, nor shall milk dealers or handlers, or agents thereof, receive from any producer or from such cooperative association or corporation, directly or indirectly, any discounts, rebates, free service, or compensation through rentals, extension of credit, or otherwise for the purpose or with the effect, of reducing the net cost to the dealer or handler for milk purchased or received by or through such cooperative association or corporation.

No provision of this act shall be deemed or construed to affect the contracts of such cooperative agricultural association or corporation with its producers, except as hereinafter specifically provided, nor to affect or abridge the rights and powers of such an association or any of its operations: Provided, however, That the powers of subpoena, entry, and inspection, vested in the board under this act, shall apply for the purpose of examining and auditing books and records of any such cooperative agricultural association or corporation, at reasonable intervals, for the purpose of administering this act. This section shall not, however, be construed to exempt such association or corporation from the jurisdiction of the board over the prices at which it may sell milk to milk dealers or handlers, stores or consumers.

Every cooperative agricultural association or corporation operating under the provisions of this section shall file with the board a copy of its certificate of incorporation and by-laws, and a copy of each form of contract employed in its relations with producers, within sixty (60) days after the effective date of this act.