PARRIS N. GLENDENING, Governor

Ch. 274

(2) LOCAL, STATE AND FEDERAL CONTRACTS SHALL BE EXEMPT FROM
ANY MINIMUM WHOLESALE PRICING PROVISIONS.

(B) (1) THE COMMISSION MAY SET DIFFERENT PRICES FOR THE SAME
GRADE OF MILK ON THE BASIS OF DIFFERENT METHODS OF DISTRIBUTION.

(2) IN DETERMINING THE REASONABLENESS OF PRICES TO BE PAID OR
CHARGED IN ANY MARKET OR MARKETS FOR ANY GRADE, QUANTITY, OR CLASS OF
MILK, THE COMMISSION SHALL BE GUIDED BY ALL PERTINENT ECONOMIC FACTORS
RELEVANT TO PRODUCTION, PROCESSING, AND DISTRIBUTION OF MILK AS
AFFECTING THE PUBLIC INTEREST IN MAINTAINING AN ADEQUATE SUPPLY OF MILK
IN MARYLAND, INCLUDING:

(I) COMPLIANCE WITH ALL SANITARY REGULATIONS IN FORCE IN
THE MARKET OR MARKETS;

(II) NECESSARY OPERATION, PROCESSING, STORAGE, AND
DELIVERY CHARGES;

(III) THE PRICES OF OTHER FOODS; AND

(IV) THE WELFARE OF THE GENERAL PUBLIC.

(C) (1) THE COMMISSION SHALL:

(I) ADOPT A FORMULA INCORPORATING THE ECONOMIC
FACTORS DESCRIBED IN SUBSECTION (B) OF THIS SECTION WHICH WILL ADJUST
AUTOMATICALLY THE PRICES TO BE PAID PRODUCERS OR DISTRIBUTORS IN ANY
MARKET OR MARKETS; AND

(II) PROVIDE FOR THE AUTOMATIC ADJUSTMENT OF WHOLESALE
PRICES ACCORDING TO THE RESULT OBTAINED BY THE USE OF THE FORMULA
ADOPTED IN THIS PARAGRAPH.

(2) THE COMMISSION IS NOT REQUIRED TO CONDUCT A PUBLIC
INFORMATIONAL HEARING BEFORE ADJUSTING PRICES BASED ON THE FORMULA
DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION, BUT THE COMMISSION MUST
CONDUCT A PUBLIC INFORMATIONAL HEARING BEFORE ADOPTING OR AMENDING
THE FORMULA.

(D) THE COMMISSION SHALL:

(1) ADOPT AN ACCOUNTING PROCEDURE APPLICABLE TO A
DISTRIBUTOR WHO PAYS A PRODUCER ANY AMOUNT IN EXCESS OF THE
APPLICABLE FEDERAL MILK ORDER MINIMUMS; AND

(2) ESTABLISH AN EQUALIZATION POOL REQUIREMENT FOR A
DISTRIBUTOR WHO PAYS OVER ORDER PREMIUMS DUE A PRODUCER.

19-106.

(A) THE COMMISSION SHALL ADOPT A SYSTEM OF ACCOUNTING FOR USE BY
EACH DISTRIBUTOR OF MILK AND MILK PRODUCTS SHOWING:

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