AB 629,
as amended, Perea. Market milk: stabilization and marketingbegin delete plans: federal milk marketing order.end deletebegin insert plans: minimum prices.end insert
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 tobegin delete amend or terminate any stabilization and marketing plan after notice and public hearing in accordance with specified requirements.end deletebegin insert
establish separate prices for various components of market milk other than class 1 market milk.end insert
This bill would require the secretary tobegin delete 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.end deletebegin insert ensure that producers and handlers receive notice of the monthly prices for the various components of market milk, as specified.end insert The bill would also make nonsubstantive changes to the provisions regarding maximum and minimumbegin delete charges, including updating a cross-reference.end deletebegin insert
charges for services, as specified above.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 62033 is added to the Food and
2Agricultural Code, to read:
Notwithstanding any other law, if the producers of
4market milk approve and adopt a federal milk marketing order by
5January 1, 2017, the secretary shall terminate all stabilization and
6marketing plans without further action by the producers, and the
7secretary shall proceed with an orderly transition to a federal milk
8marketing order in a manner that does not disrupt the market or
9payment to producers.
Section 62070 of the Food and Agricultural Code
12 is amended to read:
Each stabilization and marketing plan may further
14provide for maximum charges for plant processing and
15transportation service on the market milk or market milk
16components that are transported to the area where sold. The
17stabilization and marketing plan may enumerate the applicable
18maximum charges, and may establish individual charges for each
19function enumerated. In establishing any maximum charges for
20transportation services, the secretary shall base the maximum
21charges upon the rates that are charged for actual or reasonably
22similar services by highway carriers, as the term “highway carriers”
23is defined in Section 737.3 of the Public Utilities Code.
Section 62071 of the Food and Agricultural Code is
26amended to read:
Each stabilization and marketing plan may provide for
28minimum charges for the various services performed or rendered
29by a nonprofit cooperative association with respect to class 1
30market milk sold or delivered to another handler. Handler services
31include component testing for payment purposes, quality control,
P3 1producer payroll, and weighing and sampling of bulk market milk.
2Each stabilization and marketing plan may also include, but not
3be limited to, minimum charges for the handling of intermittent
4or irregular deliveries of market milk and plant standby services.
5The stabilization and marketing plan may enumerate applicable
6minimum charges and establish individual charges for each service
7enumerated or, in the alternative,
the secretary may establish one
8or more minimum charges covering one or more of the separate
9handler services.
begin insertSection 62075 of the end insertbegin insertFood and Agricultural Codeend insertbegin insert is
11amended to read:end insert
begin insert(a)end insertbegin insert end insertThebegin delete directorend deletebegin insert secretaryend insert shall establish the minimum
13prices to be paid by handlers to producers for classbegin delete Iend deletebegin insert 1end insert usage of
14market milk upon a milk fat, solids-not-fat or the subcomponents
15thereof, and fluid carrier basis. In establishing the minimum prices
16for classes of market milk other than classbegin delete I,end deletebegin insert
1,end insert separate prices may
17be established for any one or more of the following:
18(a)
end delete
19begin insert(1)end insert The milk fat contained inbegin delete suchend deletebegin insert theend insert milk.
20(b)
end delete
21begin insert(2)end insert The solids-not-fat or subcomponents thereof contained in
22begin delete suchend deletebegin insert theend insert milk.
23(c)
end delete
24begin insert(3)end insert The fluid contained inbegin delete suchend deletebegin insert theend insert milk.
25(d)
end delete
26begin insert(4)end insert Any combination of the milk fat, the solids-not-fat or
27subcomponents thereof, or the fluid contained inbegin delete suchend deletebegin insert theend insert milk.
28(b) The secretary shall ensure that producers and handlers
29receive notice in writing, and by posting on the department’s
30Internet Web site or by other means deemed appropriate by the
31secretary, of the monthly price of each component specified in
32subdivision (a).
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