BILL NUMBER: AB 1038 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 13, 2013
AMENDED IN SENATE JULY 10, 2013
AMENDED IN SENATE JULY 1, 2013
INTRODUCED BY Assembly Member Pan
FEBRUARY 22, 2013
An act to add Section 61901.5 to 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, and making an appropriation therefor
products .
LEGISLATIVE COUNSEL'S DIGEST
AB 1038, as amended, Pan. 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 the California Dairy Future Task
Force, previously established by the secretary, to be continued in
existence in order to evaluate and make recommendations on various
issues relating to the specific purpose of deve loping a
stable economic environment for all California dairy producers and
processors. The bill would require that funding for the task force,
not to exceed an unspecified amount, 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 .
Vote: majority. Appropriation: yes no
. 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
all of the following:
(1) The California dairy industry has been confronted with
numerous significant challenges in the past several years
that have forced the dairy producers to exit the industry
and dairy processors to face heightened competition
resulted in dairy producers losing equity, with many forced to exit
the industry, while dairy processors have faced heightened
competition and transportation costs, and other economic chal
lenges .
(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.
(3) 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.
(c)
(b) 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
develop recommendations intended to best position the California
dairy industry 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 further the intent of the Legislature that these
recommendations address current statutory and regulatory impediments
to achieve these goals.
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.
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 dairy producers and processors, promote competition, and
encourage innovation.
(C) Whether California's regulated milk pricing system has kept
pace with the rapidly changing global marketplace.
(D) Adequacy of relevant statutes and regulations.
(2) 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 ____ dollars ($____), shall be made available
from the funds deposited into the Department of Food and Agriculture
Fund pursuant to Article 14 (commencing with Section 62211) of
Chapter 2 of Part 3 of Division 21, subject to appropriation by the
Legislature.