BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1038|
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THIRD READING
Bill No: AB 1038
Author: Gray (D)
Amended: 9/11/13 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE : 3-0, 7/11/13
AYES: Galgiani, Cannella, Berryhill
NO VOTE RECORDED: Lieu, Wolk
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/26/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 47-23, 5/23/13 - See last page for vote
SUBJECT : Milk products: California Dairy Future Task Force
SOURCE : Author
DIGEST : This bill makes specified legislative findings and
declarations regarding challenges faced by the dairy industry
and states specified intents of the Legislature relating to the
development of recommendations to assist the dairy industry to
achieve long-term success and sustainability. Requires the
California Dairy Future Task Force, previously established by
the Secretary of Food and Agriculture (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. This bill requires
that funding for the task force, not to exceed $500,000, be made
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available from assessment revenues paid to the Secretary by
handlers subject to a stabilization and marketing plan, subject
to appropriation by the Legislature.
ANALYSIS :
This bill:
1.Makes the following finding and declarations related to the
California dairy industry:
A. 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.
B. 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. States the intent of the Legislature that the Secretary
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.
1.Requires 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.
2.Requires the California Dairy Future Task Force to do all of
the following:
A. Evaluate all of the following issues and any other
issues it determines to be relevant:
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(1) Market-based and other alternative pricing models;
(2) Pricing mechanisms that appropriately share risk
and value between dairy producers and processors,
promote competition, and encourage innovation;
(3) Whether California's regulated milk pricing system
has kept pace with the rapidly changing global
marketplace; and
(4) Adequacy of relevant statutes and regulations.
A. Solicit input from the dairy industry and related
businesses.
B. 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.
4.Requires funding for the California Dairy Future Task Force,
in an amount not to exceed $500,000, to 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis as
amended 8/13/13:
This bill changes The California Dairy Future Task Force
(CDFTF's ) funding from a continuous appropriation to a capped
amount of $500,000 appropriated annually by the Legislature.
To the extent that current CDFTF activities and new
requirements contained in the bill exceed the cap, this bill
results in a cost-pressure (special fund). The magnitude of
the cost pressure is unknown.
ASSEMBLY FLOOR : 47-23, 5/23/13
AYES: Alejo, Ammiano, Atkins, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
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Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Frazier,
Garcia, Gomez, Gordon, Gray, Hall, Roger Hern�ndez,
Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell, Mullin,
Muratsuchi, Nazarian, Pan, Perea, V. Manuel P�rez,
Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Weber,
Wieckowski, Williams, Yamada, John A. P�rez
NOES: Achadjian, Allen, Bigelow, Blumenfield, Ch�vez, Conway,
Dahle, Donnelly, Beth Gaines, Gatto, Hagman, Harkey, Linder,
Logue, Maienschein,
Mansoor, Melendez, Morrell, Nestande, Olsen, Patterson, Wagner,
Wilk
NO VOTE RECORDED: Bloom, Fox, Gorell, Grove, Holden, Jones,
Quirk, Waldron, Vacancy, Vacancy
JL:ej 9/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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