AB 629, as amended, Perea. Market milk: stabilization and marketing 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 establish separate prices for various components of market milk other than class 1 market milk.
This bill would require the secretary to 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 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 62070 of the Food and Agricultural Code
2 is amended to read:
Each stabilization and marketing plan may further
4provide for maximum charges for plant processing and
5transportation service on the market milk or market milk
6components that are transported to the area where sold. The
7stabilization and marketing plan may enumerate the applicable
8maximum charges, and may establish individual charges for each
9function enumerated. In establishing any maximum charges for
10transportation services, the secretary shall base the maximum
11charges upon the rates that are charged for actual or reasonably
12similar services by highway carriers, as the term “highway carriers”
13is defined in Section 737.3 of the Public Utilities Code.
Section 62071 of the Food and Agricultural Code is
15amended to read:
Each stabilization and marketing plan may provide for
17minimum charges for the various services performed or rendered
18by a nonprofit cooperative association with respect to class 1
19market milk sold or delivered to another handler. Handler services
20include component testing for payment purposes, quality control,
21producer payroll, and weighing and sampling of bulk market milk.
22Each stabilization and marketing plan may also include, but not
23be limited to, minimum charges for the handling of intermittent
24or irregular deliveries of market milk and plant standby services.
25The stabilization and marketing plan may enumerate applicable
26minimum charges and establish individual charges for each service
27enumerated or, in the alternative,
the secretary may establish one
28or more minimum charges covering one or more of the separate
29handler services.
Section 62075 of the Food and Agricultural Code is
31amended to read:
(a) The secretary shall establish the minimum prices
33to be paid by handlers to producers for class 1 usage of market
34milk upon a milk fat, solids-not-fat or the subcomponents thereof,
35and fluid carrier basis. In establishing the minimum prices for
P3 1classes of market milk other than class 1, separate prices may be
2established for any one or more of the following:
3(1) The milk fat contained in the milk.
4(2) The solids-not-fat or subcomponents thereof contained in
5the milk.
6(3) The fluid contained in the milk.
7(4) Any combination of the milk fat, the solids-not-fat or
8subcomponents thereof, or the fluid contained in the milk.
9(b) The secretary shall ensure that producers and handlers
10receive notice in writing,begin delete andend delete by posting on the department’s
11Internet Webbegin delete siteend deletebegin insert site,end insert or by other means deemed appropriate by
12the secretary, of the monthly price of each component specified
13in subdivision (a).
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