Amended in Senate September 11, 2013

Amended in Senate August 13, 2013

Amended in Senate July 10, 2013

Amended in Senate July 1, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1038

Introduced by Assembly Member begin delete Pan end delete begin insert Gray end insert

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(Principal coauthors: Senators Berryhill, Cannella, and Galgiani)

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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.

LEGISLATIVE COUNSEL’S DIGEST

AB 1038, as amended, begin delete Pan end delete   begin insert Gray end insert . 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 begin insert relating to the development of recommendations to assist the dairy industry to achieve long-term success and sustainability end insert . The bill would require 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 developing a stable economic environment for all California dairy producers and processors. The bill would require that funding for the task force, not to exceed begin delete an unspecified amount end delete begin insert $500,000 end insert , 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: 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 all 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 equity, with many forced to exit
the industry, while dairy processors have faced heightened
competition and transportation costs, and other economic
challenges.

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(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.

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(3)

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begin insert (2) end insert  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 the California Dairy Future Task
Force to 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.

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(c) It is further the intent of the Legislature that these
recommendations address current statutory and regulatory
impediments to achieve these goals.

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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 begin delete ____ end delete begin insert five hundred thousand end insert dollars begin delete ($____) end delete
begin insert ($500,000) end insert , 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.