BILL NUMBER: AB 31	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Pan

                        DECEMBER 3, 2012

   An act to add Section 62076.1 to the Food and Agricultural Code,
relating to milk products.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 31, as introduced, Pan. Stabilization and marketing plan for
market milk.
   Existing law empowers the Secretary of Food and Agriculture to
formulate stabilization and marketing plans that establish the prices
to be paid by milk handlers for specified classes of market milk.
Existing law requires the secretary to take relevant economic factors
into consideration in establishing the price to be paid for class 4b
market milk, which comprises all market milk, market skim milk, or
market cream used in the manufacture of cheese other than cottage
cheese.
   This bill would provide a specific formula that the secretary
would be required to use to establish the price for class 4b market
milk that includes a dry whey value factor that is no less than 80
percent of the dry whey value used in federal milk marketing orders
in establishing minimum producer prices. The bill would authorize
each handler's milk plant that purchases class 4b market milk to
deduct a dry whey credit, as specified.
   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 62076.1 is added to the Food and Agricultural
Code, to read:
   62076.1.  (a) In establishing prices to be paid by handlers to
producers for class 4b market milk, the calculation shall include a
dry whey value factor, computed as the cheese hundredweight price, as
established under the applicable stabilization and marketing plan,
computed by using the dry whey price defined in the plan, less a
manufacturing cost allowance of nineteen and ninety-one hundredths
cents ($0.1991), multiplied by a factor of 4.69, provided that the
dry whey value factor shall be no less than 80 percent of the dry
whey value used in federal milk marketing orders to establish minimum
producer prices.
   (b) Each handler's plant in California that purchases milk for
class 4b utilization may deduct a dry whey credit for quantities of
solids-not-fat processed for up to 264,480 pounds solids-not-fat
produced per month. The dry whey credit shall be equal to the dry
whey factor established under the applicable stabilization and
marketing plan, divided by 8.7.