Current through Register Vol. 56, No. 18, September 16, 2024
(a) As used in this
section, "supplier of record" shall mean any supplier of milk or milk products from
whom a licensed store has accepted three or more deliveries of milk or milk
products.
(b) A licensed store may
change its supplier of record or engage an additional supplier of milk and milk
products once it has complied with the following requirements:
1. A store shall pay all indebtedness, less any
legal rebates and discounts earned, for fluid milk and milk products purchased from
the supplier of record.
2. A store shall
give the supplier of record at least 48 hours actual notice of intent to change
suppliers. Actual notice shall be given in writing reasonably calculated to be
received 48 hours prior to the date and time of the effective date as stated in the
notice. Unless the store gives at least 48 hours prior notice to its supplier of
record, the store shall not refuse to accept the next scheduled delivery from the
supplier of record.
3. Notice to the
supplier of record is not required in the following circumstances:
i. If the Director of the Division of Marketing
and Development of the Department of Agriculture finds after investigation that the
supplier of record is failing to provide adequate service or to supply products
desired by the store or is supplying milk and milk products which do not meet
minimum standards of State and Federal health authorities;
ii. If such change is mutually agreeable to all
parties;
iii. If the licensed store
account is changing ownership, and the new owner accepts two or less deliveries of
milk and milk products from the supplier of record. (If the new owner accepts three
or more deliveries of milk and milk products from the supplier of record, notice
shall be required.) As used herein "changing ownership" must be a bona fide transfer
of title to the new owner(s). Transfers of title to another member of the owner's
immediate family or partial change of ownership shall not be considered a change of
ownership for purposes of this section;
iv. If the supplier of record transfers the
account to another supplier of milk and milk products; however, if the licensed
store is notified in writing of the transfer and accepts three or more deliveries
from the new supplier of milk and milk products after the date the written notice is
received by the licensed store, notice shall be required; or
v. If yogurt is the only product
involved.
(c) The
licensed store shall give notice to the Division of Marketing and Development within
three business days of an agreement to change its supplier of record or add
suppliers of milk and milk products. Such notice shall be filed by the store, or the
new supplier of milk and milk products on its behalf, on the forms provided for that
purpose by the Director.
(d) A store
changing its supplier of record or adding suppliers of milk and milk products
without complying with the requirements of (b) above may be cited for a violation of
this section. A cited store may request a hearing before an Administrative Law Judge
pursuant to the Administrative Procedure Act and the Uniform Administrative
Procedure Rules, or at an informal hearing pursuant to
4:12A-43 provided that, if the total
amount owed is in controversy, the amount not in controversy must be paid and the
balance referred to the Director for mediation pursuant to
4:12A-24.
