New York Codes, Rules and Regulations
Title 1 - DEPARTMENT OF AGRICULTURE AND MARKETS
Chapter I - Milk Control
Subchapter B - Milk Control Orders
Part 20 - New York/new Jersey Milk Marketing Area (revised Official Order No. 126)
Pool Plants and Bulk Tank Units
Section 20.27 - Suspension and cancellation of designation

(a) The designation shall be canceled effective on the first of the month following the filing with the market administrator, and on a form prescribed by him, of an application by the handler operating the plant; provided, that a plant whose designation is so canceled on the first of any of the months of August through November shall be a pool plant it it meets the provisions of section 20.28(e) of this Part, and shall not be a pool plant pursuant to any other provision of this order prior to December 1 following such cancellation; provided further, that such application for cancellation shall be accompanied by proof that the handler, if not a cooperative association qualified pursuant to section 20.77 has notified any qualified cooperative association which has any members who deliver milk to such plant, and has notified individually all producers delivering to such plant who are not members of such qualified cooperative association of his intention to make such application; provided further, that if 50 percent or more of the producers delivering milk at such plant deliver such milk for the account of a cooperative association which does not operate the plant but for which milk such association receives payment, an application must be made by such cooperative association as well as by the handler operating the plant; provided further, that if a handler applies for a replacement designation pursuant to section 20.24(b), the designation of the plant or plants replaced shall be canceled automatically at the time the replacement designation becomes effective.

(b) The designation of any plant which in any month is not approved by a health authority as a source of milk for the marketing area shall be automatically suspended at the beginning of the second month following the month that the handler receives notice that the plant does not have health approval as a source of milk for the marketing area unless the absence of health approval is a temporary condition covering a period of not more than 15 days; provided, that the designation of a plant approved by a health authority as a source of milk for the marketing area, even though such approval is restricted to prohibit shipment to the marketing area of milk for specified periods during which permission is given by such health authority for receiving unapproved milk or skim milk at the plant or for shipment of approved skim milk from such plant, shall not be suspended pursuant to this provision.

(c) The designation of a plant pursuant to section 20.24 of this Part shall be suspended at the beginning of the second month following any consecutive 12- month period in which the plant failed to receive any pool milk or at the beginning of the second month following a month in which there is a failure to maintain the facilities and equipment that constitute a plant pursuant to section 20.8(a) of this Part.

(d) The designation of any plant or unit shall be suspended, effective no sooner than 10 days nor later than 20 days after the date of mailing of notice, by registered letter, to the handler, whenever the market administrator, subject to the limitations set forth in subdivisions (h) and (j) of this section, finds on the basis of available information that the handler operating the plant or unit is not meeting the requirements set forth in section 20.26 of this Part; provided, that, if the handler operating the plant or unit is not a cooperative association qualified pursuant to section 20.77, the market administrator shall notify any qualified cooperative association which has any members who deliver milk to such plant or unit, and shall also notify individually all producers delivering to such plant or unit who are not members of such qualified cooperative association of such suspension of designation.

(e) In the case of suspension pursuant to this section of the designation of one or more plants or units for failure to meet the requirements of section 20.26(a) or (c) of this Part the handler operating such plant or unit may select, prior to the effective date of such suspension, one or more other pool plants or pool units consisting of farms in the area specified in section 20.25(e) for suspension in lieu thereof if, during the preceding month, the quantity of pool milk received from producers at such substituted plants or units was not less than the quantity of pool milk received from producers at the plants or units named for suspension. The handler may also select the order in which plant or unit designations are to be cancelled in the event of a later determination by the commissioner canceling the designation of some but not all of the plants or units suspended.

(f) Not later than 10 days after the effective date of suspension of designation pursuant to this section, the handler operating the plant or unit may apply to the commissioner for a review. If the handler fails to so apply for such review, the designation shall be canceled as of the effective date of the suspension. If the handler does so apply, the commissioner shall, after review, either determine that the requirements set forth in section 20.26 of this Part have been met and order the suspension revoked, or determine that such requirements have not been met and order the designation canceled as of the effective date of the suspension: provided, that, if the commissioner has made no determination within two months after the end of the month in which the suspension was made effective, but later orders the designation canceled, such cancellation shall be effective as of the first of the month following the date of such determination.

(g) Beginning with the effective date of a suspension pursuant to this section, and until the commissioner has either ordered the designation canceled or ordered the suspension revoked, the plant or unit shall be treated as a pool plant or pool unit: provided, that all payments into or out of the producer settlement fund (except such payments on the basis of operations during a month in which the plant meets the requirements of section 20.28 of this Part or the unit meets the requirements of section 20.25[g] ) shall be held in reserve by the market administrator until an order is issued by the commissioner, but no longer than two months after the end of the month in which the suspension was made effective.

(h) No pool plant or pool unit designation shall be suspended for failure to meet the requirements of section 20.26(a) of this Part except under the following conditions or pursuant to subdivision (1) of this section:

(i) The cancellation of pool plant or pool unit designation for failure to meet the requirements of section 20.26(a) of this Part shall be subject to the following conditions:

(j) Loss of approval by health authorities of a plant as a source of milk for the marketing area may in itself constitute adequate reason for the market administrator to suspend the designation of the plant for failure to meet the requirements of section 20.26(b) of this Part only if the absence of such approval continues for more than 15 days.

(k) The designation shall be canceled effective on the first of the month following three consecutive months in in the absence of this designation milk received from dairy farmers and units at the plant would have been classified and priced under another order with a provision for marketwide equalization and if in each of such months the percentage of milk received from dairy farmers and units at the plant which is classified as Class I-A and disposed of in the marketing area defined in such other order is greater than the percentage of such milk so classified and disposed of in this marketing area.

(l) The designation of any pool plant pursuant to section 20.24 of this Part or any pool unit pursuant to section 20.25(e) of this Part shall be canceled unless five percent or more of the pool milk received from producers at such plant or by such unit during each of the months of December and January, and 10 percent during each of the months of September through November, is utilized as Class I-A milk unless the percentage has been revised pursuant to subdivision (h) of this section.