NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 936

HOUSE BILL 1045

 

 

AN ACT TO CLARIFY AND AMEND THE NORTH CAROLINA MILK COMMISSION LAW.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Subsection (10) of G.S. 106-266.8 is hereby amended by adding a new sentence at the end of said subsection to read as follows:

"When a distributor handles or processes milk within the State of North Carolina, the subsequent resale of the milk outside the State shall not affect the right of the Commission to establish and enforce the minimum price to be paid to producers for such milk. In establishing producer prices for milk moving into other states, the Commission shall take into consideration prevailing producer prices established by state or federal milk control agencies operating in such other states."

Sec. 2.  G.S. 106-266.21 is hereby amended by adding at the end thereof the following:

"In the absence of specific proof to the contrary by a retailer as evidenced by a reasonable standard or method of accounting regularly employed by such retailer, the 'cost' of the milk to the retailer shall be deemed to be the invoice price paid or incurred for the purchase of milk, plus a minimum of seven per cent (7%) of the invoice price, computed to the nearest half cent (1/2˘) per sales unit, this being deemed to be a reasonable allocation of the retailer's expense in marketing its milk. Where a retailer processes its own milk, or purchases its milk from a subsidiary corporation, the term 'cost' as used herein shall be deemed to be the prevailing price at which milk is being purchased in that market area by competing retailers, plus a minimum of seven per cent (7%) thereof, computed to the nearest half cent (1/2˘) per sales unit, in the absence of specific proof to the contrary in the manner set out above, both as to all costs involved in processing the milk as well as the cost of doing business by the retailer. The prima-facie case of a violation of this Section, made by proof of sale below cost, may be rebutted by proof of any of the following facts: (1) the merchandise was damaged, or (2) the milk was sold upon the final liquidation of a business, or (3) the milk was sold to an organized charity or to a relief agency, or (4) the milk was sold by an officer acting under the direction of any court."

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 10th day of June, 1965.