BILL NUMBER: AB 629	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 9, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 24, 2015

   An act to amend Sections  62070 and 62071 of, and to add
Section 62033 to,   62070, 62071, and 62075 of  the
Food and Agricultural Code, relating to market milk.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 629, as amended, Perea. Market milk: stabilization and
marketing  plans: federal milk marketing order. 
 plans: minimum prices. 
   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.   establish separate prices for various
components of market milk other than class 1 market milk. 
   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.   ensure that
producers and handlers receive notice of the monthly prices for the
various components of market milk, as specified. The bill would
also make nonsubstantive changes to the provisions regarding maximum
and minimum  charges, including updating a cross-reference.
  charges for services, as specified above. 
   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.    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. 
   SEC. 2.   SECTION 1.   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. 3.   SEC. 2.   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.
   SEC. 3.    Section 62075 of the   Food and
Agricultural Code   is amended to read:
   62075.   (a)    The  director 
 secretary  shall establish the minimum prices to be paid by
handlers to producers for class  I   1 
usage of market milk upon a milk fat, solids-not-fat or the
subcomponents thereof, and fluid carrier basis. In establishing the
minimum prices for classes of market milk other than class 
I,   1,  separate prices may be established for any
one or more of the following: 
   (a) 
    (1)  The milk fat contained in  such 
 the  milk. 
   (b) 
    (2)  The solids-not-fat or subcomponents thereof
contained in  such   the  milk. 
   (c) 
    (3)  The fluid contained in  such  
the milk. 
   (d) 
    (4)  Any combination of the milk fat, the solids-not-fat
or subcomponents thereof, or the fluid contained in  such
  the  milk. 
   (b) The secretary shall ensure that producers and handlers receive
notice in writing, and by posting on the department's Internet Web
site or by other means deemed appropriate by the secretary, of the
monthly price of each component specified in subdivision (a).