AB 2669, as introduced, Eggman. Milk: stabilization and marketing plans.
Existing law provides for stabilization and marketing plans pursuant to which the Secretary of Food and Agriculture establishes minimum prices to be paid by handlers to producers for market milk. Existing law requires the secretary to take into consideration any relevant economic factors, as prescribed, in establishing those prices for milk.
This bill would make nonsubtantive changes in those provisions establishing milk prices.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 62062 of the Food and Agricultural Code
2 is amended to read:
begin insert(a)end insertbegin insert end insert Each stabilization and marketing plan shall contain
4provisions whereby thebegin delete directorend deletebegin insert secretaryend insert establishes minimum
5prices to be paid by handlers to producers for market milk in begin deletethe begin insert allend insert
classes. The
6variousend deletebegin delete directorend deletebegin insert secretaryend insert shall establish the prices
7by designating them in the plan, or by adopting methods or
P2 1formulas in the plan whereby the prices can be determined, or any
2combination of the foregoing. If thebegin delete directorend deletebegin insert secretaryend insert directly
3designates prices in the plan, the prices shall be in reasonable and
4sound economic relationship with the national value of
5manufactured milk products. If thebegin delete directorend deletebegin insert secretaryend insert adopts
6methods or
formulas in the plan for designation of prices, the
7methods or formulas shall be reasonably calculated to result in
8prices that are in a reasonable and sound economic relationship
9with the national value of manufactured milk products.
10In
end delete
11begin insert(b)end insertbegin insert end insertbegin insertInend insert establishing the prices, thebegin delete directorend deletebegin insert secretaryend insert shall take
12into consideration any relevant economic factors, including, but
13not limited to, the following:
14(a)
end delete
15begin insert(1)end insert The reasonableness and economic soundness of market milk
16prices for all classes, giving consideration to the combined income
17from those class prices, in relation to the cost of producing and
18marketing market milk for all purposes, including manufacturing
19purposes. In determining the costs, thebegin delete directorend deletebegin insert secretaryend insert shall
20consider the cost of management and a reasonable return on
21necessary capital investment.
22(b)
end delete
23begin insert(2)end insert That prices established pursuant to this section shallbegin delete insureend delete
24begin insert ensureend insert an adequate and continuous supply, in relation to demand,
25of pure, fresh, wholesome market milk for all purposes, including
26manufacturing purposes, at prices to consumersbegin delete whichend deletebegin insert thatend insert, when
27considered with relevant economic criteria, are fair and reasonable.
28(c)
end delete
29begin insert(3)end insert That prices, including the prices of components of milk,
30established by thebegin delete directorend deletebegin insert secretaryend insert for the various classes of
31market milk bear a reasonable and sound economic relationship
32to each other.
33In
end delete
34begin insert(c)end insertbegin insert end insertbegin insertInend insert establishing the prices, thebegin delete directorend deletebegin insert
secretaryend insert shall also
35take into consideration all the purposes, policies, and standards
36contained in Sections 61801, 61802, 61805, 61806, 61807, 62076,
37and 62077.
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