BILL NUMBER: AB 1038 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 10, 2013
AMENDED IN SENATE JULY 1, 2013
INTRODUCED BY Assembly Member Pan
FEBRUARY 22, 2013
An act to add Article 10 (commencing with Section 590) to
Chapter 3 of Part 1 of Division 1 of the Food and Agricultural Code,
relating to milk products. An act to add Section 619
01.5 to the Food and Agricultural Code, relating to milk
products, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1038, as amended, Pan. California Dairy Future Task
Force. Milk products: California Dairy Future Task
Force.
Existing law authorizes 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 and
requires a handler subject to a stabilization and marketing plan to
pay an assessment to the secretary, as specified. Existing law
requires that all moneys received by the secretary pursuant to these
provisions be deposited into the Department of Food and Agriculture
Fund, a continuously appropriated fund, and be used to defray
expenses in connection with the administration of these provisions.
This bill would make specified legislative findings and
declarations regarding challenges faced by the dairy industry and
would state specified intents of the Legislature. The bill would
require that the administration and activities of the California
Dairy Future Task Force, which has been previously established by the
secretary, be funded by the assessments collected by the secretary.
By authorizing the expenditure of moneys in a continuously
appropriated fund for a new purpose, the bill would make an
appropriation.
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 every handler subject to the provisions of a
stabilization and marketing plan that purchases market milk from
producers to pay a specified assessment to the secretary for deposit
into the Department of Food and Agricultural Fund, with revenues to
be used for certain purposes.
This bill would require the California Dairy Future Task Force
previously established by the secretary be continued in existence in
order to evaluate, hold workshops, and make recommendations on
various issues relating to the specific purpose of establishing a
stable economic environment for California dairy producers and
processors. The bill would provide that funding for the task force,
not to exceed $500,000, shall be made available from assessment
revenues paid to the secretary by handlers subject to a stabilization
and marketing plan, subject to appropriation by the Legislature. The
bill would also make legislative findings and declarations.
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares
both of the following:
(1) The California dairy industry has been confronted with
numerous challenges in the past several years that have forced the
dairy producers to exit the industry and dairy processors to face
heightened competition.
(2) The challenges include dramatic increases in the cost of corn
and other produce used to feed livestock, increasing environmental
and regulatory costs, and decreasing water availability.
(b) It is the intent of the Legislature to encourage the
Department of Food and Agriculture, to the extent that economic
conditions warrant, to hold the following hearings regarding milk
pricing:
(1) A hearing to amend the recent emergency price relief decision,
issued by the Secretary of Food and Agriculture on June 24, 2013, to
allow for additional emergency price relief.
(2) A hearing to address changes to the whey scale factor that is
used to determine the amount paid into the milk pool in California.
(c) It is the intent of the Legislature that the Secretary of Food
and Agriculture actively engage the California Dairy Future Task
Force to assist in developing proposals intended to best position
both dairy producers and processors to achieve the goals of long-term
success and sustainability.
SEC. 2. Section 61901.5 is added to the
Food and Agricultural Code , to read:
61901.5. Administration and activities of the California Dairy
Future Task Force, previously established by the secretary, shall be
funded by assessments collected pursuant to Section 62211.
SECTION 1. (a) The Legislature finds and
declares both of the following:
(1) The California dairy industry has been confronted with
numerous significant challenges in the past several years that have
resulted in dairy producers losing revenue and equity, with many
forced to exit the industry, while processors have faced heightened
competition and transportation costs, and other economic challenges.
(2) A concentrated focus on these challenges is essential so that
the California dairy industry may participate successfully in
domestic and international markets to the benefit of dairy producers
and processors alike.
(b) It is the intent of the Legislature that the Secretary of Food
and Agriculture actively engage a California Dairy Future Task Force
to develop recommendations intended to best position both dairy
producers and processors, as well as consumers, to achieve the goals
of long-term success and sustainability in a market that continues to
evolve beyond the scope of the current regulatory system with the
addition of new products and markets.
(c) It is the further intent of the Legislature that these
recommendations address current statutory and regulatory impediments
to achieve these goals.
SEC. 2. Article 10 (commencing with Section
590) is added to Chapter 3 of Part 1 of Division 1 of the Food and
Agricultural Code, to read:
Article 10. California Dairy Future Task Force
590. (a) The California Dairy Future Task Force previously
established by the secretary and consisting of dairy producers,
processors, and cooperatives shall be continued in existence for the
specific purpose of developing a stable economic environment for
California dairy producers and processors.
(b) The California Dairy Future Task Force shall do all of the
following:
(1) Evaluate all of the following issues and any other issues it
determines to be relevant:
(A) Market-based and other alternative pricing models.
(B) Pricing mechanisms that appropriately share risk and value
between producers and processors, promote competition, and encourage
innovation.
(C) Impacts of milk pricing decisions on small cheese
manufacturers and other manufacturers that do not participate in the
whey markets, and whether revenues from their products should be
included in the milk pool, because whey products are derived from the
milk delivered by producers.
(D) Whether California's regulated milk pricing system has kept
pace with the rapidly changing global marketplace.
(E) Whether milk is directed to the highest and best use.
(F) Adequacy of relevant statutes and regulations.
(2) Hold workshops and solicit input from the dairy industry and
related businesses.
(3) Make recommendations to the secretary and the Legislature no
later than July 1, 2014, regarding the addition, modification, or
repeal of existing statutes and regulations for all classes of milk.
(c) Funding for the California Dairy Future Task Force, in an
amount not to exceed five hundred thousand dollars ($500,000), shall
be made available from the funds deposited into the Department of
Food and Agricultural Fund pursuant to Article 14 (commencing with
Section 62211) of Chapter 2 of Part 3 of Division 21, subject to
appropriation by the Legislature.