BILL NUMBER: AB 1910	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 10, 2010
	AMENDED IN SENATE  JUNE 7, 2010

INTRODUCED BY   Committee on Agriculture (Galgiani (Chair), Tom
Berryhill (Vice Chair), Conway, Fuller, Ma, Mendoza, and Yamada)

                        FEBRUARY 16, 2010

   An act to amend Sections 35832  , 62582,  and 62640 of
the Food and Agricultural Code, relating to milk.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1910, as amended, Committee on Agriculture. Repasteurized milk:
Milk Producers Security Trust Fund:  future shipment coverage
eligibility:  handler default.
   (1) Existing law prohibits repasteurized milk to be sold as market
milk.
   This bill would instead authorize repasteurized milk to be
reprocessed and sold as "Grade A" product under certain specified
conditions and restrictions. The bill would permit the Secretary of
Food and Agriculture, upon request, to authorize reprocessing of
packaged milk and milk products provided certain requirements are
complied with. 
   (2) Existing law confers upon the Secretary of Food and
Agriculture the ability to establish and administer the Milk
Producers Security Trust Fund to protect milk producers against loss
of payment for bulk milk transferred to handlers. Existing law
authorizes the secretary to determine if future shipments to a
handler are not eligible for coverage, subject to specific criteria.
 
   This bill would provide that future shipments to a handler are
automatically not eligible once that handler satisfies specific
criteria already in existing law.  
   (2) Existing law confers upon the Secretary of Food and
Agriculture the ability to establish and administer the Milk
Producers Security Trust Fund to protect milk producers against loss
of payment for bulk milk transferred to handlers. Existing 
    (3)     Existing  law authorizes the
secretary to pay money from the Milk Producers Security Trust Fund to
the pool equalization fund to cover the amount that a handler
defaults in payments to the pool equalization fund if, after
consultation with the Milk Producers Security Trust Fund Board, the
secretary determines that additional efforts will not result in
collection of the amount due.
   This bill would require the secretary to first exhaust all
administrative and legal remedies within his or her authority against
the defaulting handler, and execute all judgments resulting from
those remedies, prior to recommending to the board this payment from
the Milk Producers Security Trust Fund.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 35832 of the Food and Agricultural Code is
amended to read:
   35832.  (a) Repasteurized milk may only be reprocessed and sold as
a "Grade A" product under the following conditions and restrictions:

   (1) Milk and milk products drained from processing equipment at
the end of a run, collected from a defoamer system, and milk or milk
product solids rinsed from equipment, containers, or pipelines shall
be repasteurized only if that milk or those milk products are handled
in a sanitary manner and maintained at 45 degrees Fahrenheit (7
degrees Celsius) or less. When the handling or cooling, or both, of
that milk or those milk products is not in compliance with this
requirement, they shall be discarded.
   (2) Equipment, designated areas, or rooms utilized for handling,
processing, and storage of returned packaged milk or milk products
are maintained, operated, cleaned, and sanitized so as to preclude
the contamination of Grade A products and equipment and the Grade A
operations. The repasteurization of milk and milk products shipped in
milk tank trucks, which have been pasteurized at another Grade A
milk plant and have been handled in a sanitary manner and maintained
at 45 degrees Fahrenheit (7 degrees Celsius) or less, is permitted.
   (3) Packaged milk and milk products that have physically left the
premises of the processing plant shall not be repasteurized for Grade
A use.
   (4) Milk and milk products from damaged, punctured, or otherwise
contaminated containers, or milk products from out-of-code
containers, shall not be repasteurized for Grade A use.
   (5) All milk and milk products that have overflowed, leaked, or
been spilled or improperly handled shall be discarded.
   (b) Notwithstanding subdivision (a), the secretary may, on a
specific request, authorize reprocessing of packaged milk and milk
products provided all other requirements of this section, including
proper storage temperature and container integrity, are complied
with.
   SEC. 2.    Section 62582 of the   Food and
Agricultural Code   is amended to read: 
   62582.  If  the secretary determines that  future
shipments to a handler  may   are  not
 be  eligible for coverage under this chapter in the
event of a default, the secretary shall notify all producers who
have a contract on file with the secretary, all cooperative
associations, and other interested parties.  The secretary
may determine that future   Future  shipments will
not be eligible when any of the following events occur:
   (a) The handler fails to maintain a valid license or bond as
required under Chapter 1 (commencing with Section 61301) or Chapter 2
(commencing with Section 61801).
   (b) The handler has failed to pay producers as required under
Chapter 1 (commencing with Section 61301) or Chapter 2 (commencing
with Section 61801).
   (c) The handler has failed to pay the amount due the pool
equalization fund provided for in Chapter 3 (commencing with Section
62700).
   (d) The handler fails to submit, when requested by the secretary,
executed contracts that establish the relationship between affected
parties.
   SEC. 2.   SEC.   3.   Section
62640 of the Food and Agricultural Code is amended to read:
   62640.  If a handler defaults in payments to the pool equalization
fund provided for in Chapter 3 (commencing with Section 62700) and
the secretary determines that additional efforts will not result in
collection of the amount due, the secretary, after consultation with
the board, may pay money from the Milk Producers Security Trust Fund
to the pool equalization fund to cover the amount of the default.
However, the secretary shall first exhaust all administrative and
legal remedies within his or her authority against the defaulting
handler, and execute all judgments resulting from those remedies,
prior to recommending to the board this payment from the Milk
Producers Security Trust Fund.