BILL NUMBER: AB 629	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 24, 2015

   An act to amend Sections 62070 and 62071  of 
 of, and to add Section 62033 to,  the Food and Agricultural
Code, relating to market milk.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 629, as amended, Perea. Market  milk.  
milk: stabilization and marketing plans: federal milk marketing
order. 
   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.
Existing law provides that a stabilization and marketing plan may
provide for, among other things, maximum charges for plant processing
and transportation services, and minimum charges for the various
services performed by a nonprofit cooperative association regarding
class 1 market milk.  Existing law authorizes the secretary to
amend or terminate any stabilization and marketing plan after notice
and public hearing in accordance with specified requirements. 
   This bill would  require the secretary to terminate all
stabilization and marketing plans without further action by the
producers of market milk if the producers approve and adopt a federal
milk marketing order by January 1, 2017. The bill would also 
make nonsubstantive changes to the provisions regarding maximum and
minimum charges, including updating a cross-reference.
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 62033 is added to the 
 Food and Agricultural Code   , to read:  
   62033.  Notwithstanding any other law, if the producers of market
milk approve and adopt a federal milk marketing order by January 1,
2017, the secretary shall terminate all stabilization and marketing
plans without further action by the producers, and the secretary
shall proceed with an orderly transition to a federal milk marketing
order in a manner that does not disrupt the market or payment to
producers. 
   SECTION 1.   SEC. 2.   Section 62070 of
the Food and Agricultural Code is amended to read:
   62070.  Each stabilization and marketing plan may further provide
for maximum charges for plant processing and transportation service
on the market milk or market milk components that are transported to
the area where sold. The stabilization and marketing plan may
enumerate the applicable maximum charges, and may establish
individual charges for each function enumerated. In establishing any
maximum charges for transportation services, the secretary shall base
the maximum charges upon the rates that are charged for actual or
reasonably similar services by highway carriers, as the term "highway
carriers" is defined in Section 737.3 of the Public Utilities Code.
  SEC. 2.   SEC. 3.   Section 62071 of the
Food and Agricultural Code is amended to read:
   62071.  Each stabilization and marketing plan may provide for
minimum charges for the various services performed or rendered by a
nonprofit cooperative association with respect to class 1 market milk
sold or delivered to another handler. Handler services include
component testing for payment purposes, quality control, producer
payroll, and weighing and sampling of bulk market milk. Each
stabilization and marketing plan may also include, but not be limited
to, minimum charges for the handling of intermittent or irregular
deliveries of market milk and plant standby services. The
stabilization and marketing plan may enumerate applicable minimum
charges and establish individual charges for each service enumerated
or, in the alternative, the secretary may establish one or more
minimum charges covering one or more of the separate handler
services.