BILL NUMBER: AB 2669	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eggman

                        FEBRUARY 21, 2014

   An act to amend Section 62062 of the Food and Agricultural Code,
relating to milk.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2669, as introduced, Eggman. Milk: stabilization and marketing
plans.
   Existing law provides for stabilization and marketing plans
pursuant to which the Secretary of Food and Agriculture establishes
minimum prices to be paid by handlers to producers for market milk.
Existing law requires the secretary to take into consideration any
relevant economic factors, as prescribed, in establishing those
prices for milk.
   This bill would make nonsubtantive changes in those provisions
establishing milk prices.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 62062 of the Food and Agricultural Code is
amended to read:
   62062.   (a)    Each stabilization and marketing
plan shall contain provisions whereby the  director
  secretary  establishes minimum prices to be paid
by handlers to producers for market milk in  the various
  all  classes. The  director 
 secretary  shall establish the prices by designating them
in the plan, or by adopting methods or formulas in the plan whereby
the prices can be determined, or any combination of the foregoing. If
the  director   secretary  directly
designates prices in the plan, the prices shall be in reasonable and
sound economic relationship with the national value of manufactured
milk products. If the  director   secretary
 adopts methods or formulas in the plan for designation of
prices, the methods or formulas shall be reasonably calculated to
result in prices that are in a reasonable and sound economic
relationship with the national value of manufactured milk products.

   In 
    (b)     In  establishing the prices,
the  director   secretary  shall take into
consideration any relevant economic factors, including, but not
limited to, the following: 
   (a) 
    (1)  The reasonableness and economic soundness of market
milk prices for all classes, giving consideration to the combined
income from those class prices, in relation to the cost of producing
and marketing market milk for all purposes, including manufacturing
purposes. In determining the costs, the  director 
 secretary  shall consider the cost of management and a
reasonable return on necessary capital investment. 
   (b) 
    (2)  That prices established pursuant to this section
shall  insure   ensure  an adequate and
continuous supply, in relation to demand, of pure, fresh, wholesome
market milk for all purposes, including manufacturing purposes, at
prices to consumers  which   that  , when
considered with relevant economic criteria, are fair and reasonable.

   (c) 
    (3)  That prices, including the prices of components of
milk, established by the  director   secretary
 for the various classes of market milk bear a reasonable and
sound economic relationship to each other. 
   In 
    (c)     In  establishing the prices,
the  director   secretary  shall also take
into consideration all the purposes, policies, and standards
contained in Sections 61801, 61802, 61805, 61806, 61807, 62076, and
62077.