HAR §4-60-12. Method of payment

Payment to producers and producer- distributors under this chapter shall be made as follows: (1) Each distributor or producer-distributor shall determine the total quantity of fresh milk and its butterfat content received from each producer or producer-distributor for each calendar month; (2) The information for the month immediately preceding as set forth in paragraph (1) together with other information required by the branch, shall be submitted to the branch on forms provided by the branch, not later than the end of the eighth day of each month; (3) The branch shall determine for each producer and producer- distributor the portion of the fresh milk delivered for which the producer and producer-distributor shall be paid class I price; the portion for which the producer and producer-distributor shall be paid class I fresh skim milk price; the portion for which the producer and producer-distributor shall be paid class II price; the portion for which the producer and producer-distributor shall be paid excess pool price; less proven plant shrinkage and route returns, as the case may be, compute the value of the milk in each classification with proper adjustment for butterfat differential; and report the information to each distributor and producer-distributor not later than the end of the fifteenth day of the month. (4) Payments for fresh milk delivered in a given month shall be made to producers, producer-distributors or dairy cooperative during the subsequent month as follows: A first payment of approximately fifty per cent of the total amount owed by the end of the tenth day of the month and the balance of the amount owed, as computed by the branch in paragraph (3) less authorized deductions, by the end of the twentieth day of the month. Evidence of such payment shall be filed with the branch by the twenty-fifth day of the month; and (5) The branch shall compute each distributor and producer- distributor’s obligation to a special trustee account known as the :”Producer’s Settlement Fund,” which fund shall be administered by the branch and from which the branch shall make distribution and adjustment payments to distributors or producer-distributors to effectuate a market wide pooling of milk produced for use in the Honolulu milk shed and Hawaii milk shed as follows: (A) Value of plant utilization of milk. Multiply the volume of fresh milk reported by each distributor or producer- distributor as utilized in class I, in class II, and in the excess pool, if any, with proper adjustments for butterfat differential, plant shrinkage and route returns, by the appropriate price to determine the value of the plant utilization of milk; (B) Amount owed producers for milk. Add the amounts owed to producers and producer-distributors by a distributor or producer-distributor as determined in paragraph (3) to determine the total amount owed to producers or producer- distributors for fresh milk delivered to said distributor or producer-distributor; and (C) Computing producers’ settlement fund. Compare the value the plant utilization, as determined in subparagraph (A) above, with the total amount the distributor or producer- distributor owes producers and producer-distributors for fresh milk delivered, as determined in subparagraph (B) above. If the total plant utilization, subparagraph (A) exceeds the distributor or producer-distributor’s obligation to producers and producer-distributor, subparagraph (B), the distributor or producer-distributor shall pay the difference into the producers’ settlement fund. If the distributor or producer-distributor’s obligation to producers and producer-distributors, subparagraph (B), exceeds the value of plant utilization, subparagraph (A), the distributor or producer-distributor shall be paid the difference from the producers’ settlement fund. Payments by distributors and producer-distributors into the producers’ settlement fund shall be made by the eighteenth day of the month following delivery of milk and payments from the fund to distributors and producer-distributors shall be made therefrom by the twenty-eighth day of said month. [Eff 7/16/80; am and comp 12/1/85; am and comp 5/1/87] (Auth: HRS §157- 13) (Imp: HRS §157-33) SUBCHAPTER 4 GENERAL PROVISIONS