BILL NUMBER: SB 1769	CHAPTERED  09/21/02

	CHAPTER  769
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2002
	PASSED THE SENATE  AUGUST 22, 2002
	PASSED THE ASSEMBLY  AUGUST 15, 2002
	AMENDED IN ASSEMBLY  AUGUST 1, 2002
	AMENDED IN SENATE  MAY 21, 2002
	AMENDED IN SENATE  MAY 14, 2002
	AMENDED IN SENATE  APRIL 4, 2002

INTRODUCED BY   Senator Machado

                        FEBRUARY 21, 2002

   An act to amend Section 62560 of the Food and Agricultural Code,
relating to market milk.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1769, Machado.  Market milk.
   Existing law authorizes the Secretary of Food and Agriculture to
establish and administer a milk producers security trust fund and
creates a Milk Producers Security Trust Fund Advisory Board to advise
the secretary on the administration of the fund.  Existing law
directs the secretary to collect security charges on milk, and
deposit those charges into the fund until the fund reaches the
maximum provided for, as specified.  Under existing law, when the
fund reaches the maximum provided for in these provisions, the
secretary is required to discontinue collection of the security
charges except for the purpose of replacing periodically any
withdrawals from the fund in order that the maximum amount in the
fund is maintained.
   This bill would authorize the secretary, in consultation with the
board, to consider and use alternative financial instruments as an
alternative to solely using security charges to meet the above
security requirements.  This bill would make other nonsubstantive,
clarifying, and conforming changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 62560 of the Food and Agricultural Code is
amended to read:
   62560.  (a) The security charges provided for in Section 62561
shall be collected until the secretary determines that the value of
the fund approximates 110 percent of the dollar amount of the total
purchases of milk of all classes then currently being paid for and
received in one month by the handler with the largest payment
obligation to producers for that month.
   (b) When the fund reaches the maximum provided for in this
section, the secretary shall discontinue collection of the security
charges.
   (c) If necessary, the secretary may reinstate the security charges
for the purpose of replacing periodically any withdrawals from the
fund and otherwise adding money to the fund in order that the maximum
value of the fund, as provided in this section, is maintained.
   (d) In consultation with the Milk Producers Security Trust Fund
Advisory Board, the secretary may consider and use alternative
financial instruments as an alternative to solely using security
charges to meet the financial security requirements of this section.

   (e) For the purposes of this section, "fund" includes the combined
value of any alternative financial instrument and security charge
collected.