BILL NUMBER: SB 1909	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Costa

                        FEBRUARY 24, 2000

   An act to amend Section 62707.1 of, and to repeal Section 62707.2
of, the Food and Agricultural Code, relating to milk products.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1909, as introduced, Costa.  Milk products: equalization pools.

   Existing law regulates the composition of consumer milk with
respect to milkfat and solids-not-fat (SNF).  Existing law relating
to milk pricing and pooling provides that all milk produced in the
state shall be pooled and that minimum prices that processors must
pay individual producers for the share of the raw milk they have
supplied shall be set.  These prices are based in part on the SNF
content--the lower the SNF content, the lower the price.
   This bill would repeal specified obsolete provisions relating to
milk pricing and pooling.
   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 62707.1 of the Food and Agricultural Code is
amended to read:
   62707.1.  (a)  The director, on July 1, 1978, shall issue
new pool quota sufficient to bring all holders of production base and
pool quota as of that date (excluding any production base and pool
quota issued pursuant to subdivision (f) of Section 62707), to the
equalization point both on the fat and the solids-not-fat components.

   (b)  Subsequent to July 1, 1978, all allocations of new
class 1 usage determined under subdivision (e) of Section 62707,
shall be made as follows:
   (1) Forty percent to producers whose total production base and
pool quota are below the equalization point, to be allocated
according to provisions adopted by the director in the applicable
pooling plan.
   (2) Forty percent to producers whose total production base and
pool quota are equal to or above the equalization point, this
allocation to each such producer to be in the same ratio to the total
allocation under this subdivision as that producer's total holdings
of quota bears to the total quota holdings of all equalized
producers.
   (3) The remaining 20 percent shall be utilized for new producer
allocations under subdivision (f) of Section 62707, according to the
provisions in the then applicable pooling plan.
    (b)  The terms "total production and pool quota" and
"total quota" shall  ,  for the purposes of this
subdivision, include allocations of production base and pool quota
issued pursuant to subdivision (f) of Section 62707.
  SEC. 2.  Section 62707.2 of the Food and Agricultural Code is
repealed.  
   62707.2.  A person eligible for, but not yet assigned, a
production base or pool quota, or both, pursuant to Section 62707
shall not be eligible for such a production base or pool quota, or
both, unless he applies for such a production base or pool quota, or
both, prior to January 1, 1971.