BILL NUMBER: AB 1910	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Agriculture (Galgiani (Chair), Tom
Berryhill (Vice Chair), Conway, Fuller, Ma, Mendoza, and Yamada)

                        FEBRUARY 16, 2010

   An act to amend Section 62640 of the Food and Agricultural Code,
relating to milk.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1910, as introduced, Committee on Agriculture. Milk Producers
Security Trust Fund: handler default.
   Existing law confers upon the Secretary of Food and Agriculture
the ability to establish and administer the Milk Producers Security
Trust Fund to protect milk producers against loss of payment for bulk
milk transferred to handlers. Existing law authorizes the secretary
to pay money from the Milk Producers Security Trust Fund to the pool
equalization fund to cover the amount that a handler defaults in
payments to the pool equalization fund if, after consultation with
the Milk Producers Security Trust Fund Board, the secretary
determines that additional efforts will not result in collection of
the amount due.
   This bill would require the secretary to first exhaust all
administrative and legal remedies within his or her authority against
the defaulting handler, and execute all judgments resulting from
those remedies, prior to recommending to the board this payment from
the Milk Producers Security Trust Fund.
   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 62640 of the Food and Agricultural Code is
amended to read:
   62640.  If a handler defaults in payments to the pool equalization
fund provided for in Chapter 3 (commencing with Section 62700) and
the  director  secretary  determines that
additional efforts will not result in collection of the amount due,
the  director   secretary  , after
consultation with the board, may pay money from the Milk Producers
Security Trust Fund to the pool equalization fund to cover the amount
of the default.  However, the secretary shall first exhaust all
administrative and legal remedies within his or her authority against
the defaulting handler, and execute all judgments resulting from
those remedies, prior to recommending to the board this payment from
the Milk Producers Security Trust Fund.