BILL NUMBER: AB 2693 CHAPTERED 09/05/00 CHAPTER 298 FILED WITH SECRETARY OF STATE SEPTEMBER 5, 2000 APPROVED BY GOVERNOR SEPTEMBER 1, 2000 PASSED THE ASSEMBLY AUGUST 21, 2000 PASSED THE SENATE AUGUST 18, 2000 AMENDED IN SENATE MAY 25, 2000 INTRODUCED BY Committee on Agriculture (Cardoza (Chair), Maldonado (Vice Chair), Briggs, Florez, House, Reyes, Thomson, and Wiggins) FEBRUARY 25, 2000 An act to amend Sections 64101, 64114, 64301, 64320, 64321, 64321.5, and 64322 of the Food and Agricultural Code, relating to the Dairy Council. LEGISLATIVE COUNSEL'S DIGEST AB 2693, Committee on Agriculture. The Dairy Council. (1) Existing law creates the Dairy Council of California consisting of not less than a specified number of members who must be residents of this state. This bill would delete the requirement that the members be residents of this state. This bill would also increase the per diem of members from $10 to $100. (2) Existing law provides that the Secretary of Food and Agriculture, upon recommendation of the council, shall establish and announce the fees for milk used in class 1 and for all other uses to be paid by producers, producer-handlers, and handlers for the coming fiscal year. Under existing law, the fees established by the secretary shall not exceed a maximum rate to be determined, as specified. This bill would change the maximum rate of fees determined by the Secretary of Food and Agriculture as specified for class 1 milk and all other usages of milk. (3) Existing law requires the Secretary of Food and Agricultureto have a public hearing and, if appropriate, a referendum of the producers, produce handlers, and handlers of class 1 milk, each 4 years to determine whether the dairy council program should continue. Existing law also provides a system for winding-up the affairs of the council if the results of the referendum indicate that the program should be discontinued. This bill would require the Secretary of Food and Agriculture to comply with these provisions and hold the public hearing or referendum procedure each 5 years. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 64101 of the Food and Agricultural Code is amended to read: 64101. There is in the state government the Dairy Council of California which shall consist of not less than 24, nor more than 25 members. The membership of the council shall be as follows: (a) There shall be 12 members that are actually engaged in the production of milk, or that represent producers that are actually engaged in the production of milk. These 12 members are the producer members of the council. (b) There shall be 12 members that are handlers or producer-handlers of dairy products. These 12 members are the handler members of the council. (c) Upon the recommendation of the council, the director may appoint one person who is neither a producer, handler, or producer-handler, and who shall represent the public generally. SEC. 2. Section 64114 of the Food and Agricultural Code is amended to read: 64114. The appointed members of the council shall receive one hundred dollars ($100) per day for each day spent in actual attendance at the meetings or on the business of the council and shall be reimbursed for necessary traveling and other expenses which are incurred in the performance of their official duties. SEC. 3. Section 64301 of the Food and Agricultural Code is amended to read: 64301. Annually, prior to the commencement of the fiscal year, the secretary shall, upon recommendation of the council, establish and announce the fees for milk used in class 1 and for all other usages to be paid by producers, producer-handlers, and handlers for the coming fiscal year. These fees shall be established at levels sufficient to finance the budget for the coming fiscal year as approved by the secretary pursuant to Sections 64153 and 64154. The fee established by the secretary for class 1 milk shall not exceed two cents ($.02) per hundredweight of such market milk testing 3.5 percent milkfat and 8.7 percent solids-not-fat. The fee established by the secretary for all other usages of milk shall not exceed eight mills ($0.008) per hundredweight of milk testing 3.5 percent milkfat and 8.7 percent solids-not-fat. The relationship between the fees per hundredweight established for class 1 milk and for all other usages shall be at a ratio of 2.5 to 1. These fees shall be the same for producers and handlers. SEC. 4. Section 64320 of the Food and Agricultural Code is amended to read: 64320. (a) Between July 1, 1983, and December 31, 1983, and in the same period each five years thereafter, the secretary shall, by the public hearing procedure, and if appropriate, the referendum procedure provided for in this article, determine whether the council program provided for in this chapter shall continue in effect. (b) If the secretary finds from evidence received at the hearing that a substantial question exists as to whether the council program is contrary to or does not effectuate the declared purposes or provisions of this chapter, the council program shall be submitted to referendum as provided in subdivision (c). (c) If the secretary determines that a referendum procedure is appropriate, the secretary shall establish a referendum period of not to exceed 30 days during which period ballots shall be submitted to all producers, producer-handlers, and handlers on a statewide basis. If the secretary determines that the referendum period does not provide sufficient time for the balloting, the secretary may extend the referendum for an additional period not to exceed 30 days. The ballots shall provide a "yes" or "no" voting alternative to the question: "Shall the Dairy Council of California be continued for the next five fiscal years commencing July 1 following this referendum?" SEC. 5. Section 64321 of the Food and Agricultural Code is amended to read: 64321. If the council program is submitted to a referendum, the secretary shall find that producers, handlers, and producer-handlers statewide have assented to the council program if he or she finds both of the following: (a) Sixty-five percent or more of the total number of handlers, including producer-handlers, voting approve the program. (b) (1) Not less than 51 percent of the total number of eligible producers, including producer-handlers, in the state voted in the referendum. (2) Sixty-five percent or more of the total number of eligible producers, including producer-handlers, who voted in the referendum and who produced 51 percent or more of the total amount of fluid milk produced during the second calendar month preceding the month of the commencement of the referendum period by all producers who voted in the referendum approve the program, or 51 percent or more of the total number of eligible producers who voted in the referendum and who produced 65 percent or more of the total amount of fluid milk produced during the second calendar month preceding the month of the commencement of the referendum period by all producers who voted in the referendum, approve the program. SEC. 6. Section 64321.5 of the Food and Agricultural Code is amended to read: 64321.5. If the secretary finds that producers, handlers, and producer-handlers have not assented to the council program pursuant to Section 64321, the program may be resubmitted to a referendum as prescribed herein within a period of not less than 60 days and not more than 180 days after the secretary announces the plan was not approved. SEC. 7. Section 64322 of the Food and Agricultural Code is amended to read: 64322. (a) If the council program has been submitted to referendum pursuant to procedures prescribed in Section 64321 and the secretary finds that producers, handlers, and producer-handlers have not assented to the program, or if the program is resubmitted pursuant to Section 64321.5 and the secretary finds that assent is again not forthcoming, operations of the provisions of this chapter and of the council shall be suspended commencing July 1 following the referendum or referendums. (b) After the effective date of suspension of the operation of the provisions of this chapter and of the council, the operations of the council shall be wound up, and any real and personal property held in the name of the council shall be liquidated and the proceeds, along with any and all remaining money held by the council, collected by assessment and not required to defray the expenses of winding up and terminating operations of the council, shall be returned upon a pro rata basis to all persons from whom assessments were collected in the immediately preceding three months. However, if the secretary finds that the amounts so returnable are so small as to make impractical the computation and remitting of the pro rata refund to these persons, any moneys remaining after payment of all expenses of winding up and terminating operations shall be withdrawn from the approved depository and paid into the State Treasury as unclaimed trust moneys.