Sales to Schools and Government Agencies

The Colorado Milk Marketing Order, Section III-14 provides that:

The sale of milk and milk products to the following institutions and agencies shall be exempt from the requirement for uniform sales at filed prices, discounts, and rebates:

A. Elementary schools, limited to all grade schools through high school grades, public, private, parochial or otherwise that are operated for the same basic educational purpose as public schools and which provide similar non-profit lunchroom facilities for the benefit of students.

B. Agencies of the Federal, State, County or Municipal governments or agencies operated thereby.

The exemption available to schools and governmental agencies under this paragraph is available to commercial entities when a school or governmental agency chooses to provide milk or milk products through a contractual relationship with a commercial entity in lieu or providing milk or milk products through its own employees. However, the foregoing exemption for commercial entities is limited to such milk and milk products actually used pursuant to a contract with a school or governmental agency for the purpose of providing milk or milk products that otherwise would have been provided by the school or governmental agency.

Sales of milk and milk products to such excepted school and agencies shall not be made at prices below cost.

Any handler, handler-distributor, or distributor who enters into a contract for the sale of milk or milk products to such an excepted school or agency shall file with the Commissioner prior to the first date of delivery, a separate schedule or a copy of the awarded contract showing the price or prices at which milk or milk products will be sold under the provisions of the contract.

Please submit information on all awarded contracts to the Colorado Milk Marketing Board.

Peter Hunkar
Director
Colorado Milk Marketing Board

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