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AB-1038 Milk products: California Dairy Future Task Force.(2013-2014)

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Amended  IN  Senate  September 11, 2013
Amended  IN  Senate  August 13, 2013
Amended  IN  Senate  July 10, 2013
Amended  IN  Senate  July 01, 2013

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill No. 1038


Introduced by Assembly Member Pan Gray
(Principal coauthors: Senators Berryhill, Cannella, and Galgiani)

February 22, 2013


An act to add Article 10 (commencing with Section 590) to Chapter 3 of Part 1 of Division 1 of the Food and Agricultural Code, relating to milk products.


LEGISLATIVE COUNSEL'S DIGEST


AB 1038, as amended, Pan Gray. Milk products: California Dairy Future Task Force.
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 and requires a handler subject to a stabilization and marketing plan to pay an assessment to the secretary, as specified. Existing law requires that all moneys received by the secretary pursuant to these provisions be deposited into the Department of Food and Agriculture Fund, a continuously appropriated fund, and be used to defray expenses in connection with the administration of these provisions.
This bill would make specified legislative findings and declarations regarding challenges faced by the dairy industry and would state specified intents of the Legislature relating to the development of recommendations to assist the dairy industry to achieve long-term success and sustainability. The bill would require the California Dairy Future Task Force, previously established by the secretary, to be continued in existence in order to evaluate and make recommendations on various issues relating to the specific purpose of developing a stable economic environment for all California dairy producers and processors. The bill would require that funding for the task force, not to exceed an unspecified amount $500,000, be made available from assessment revenues paid to the secretary by handlers subject to a stabilization and marketing plan, subject to appropriation by the Legislature.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) The California dairy industry has been confronted with numerous significant challenges in the past several years that have resulted in dairy producers losing equity, with many forced to exit the industry, while dairy processors have faced heightened competition and transportation costs, and other economic challenges.

(2)The challenges include dramatic increases in the cost of corn and other produce used to feed livestock, increasing environmental and regulatory costs, and decreasing water availability.

(3)

(2) A concentrated focus on these challenges is essential so that the California dairy industry may participate successfully in domestic and international markets to the benefit of dairy producers and processors alike.
(b) It is the intent of the Legislature that the Secretary of Food and Agriculture actively engage the California Dairy Future Task Force to develop recommendations intended to best position the California dairy industry to achieve the goals of long-term success and sustainability in a market that continues to evolve beyond the scope of the current regulatory system with the addition of new products and markets.

(c)It is further the intent of the Legislature that these recommendations address current statutory and regulatory impediments to achieve these goals.

SEC. 2.

 Article 10 (commencing with Section 590) is added to Chapter 3 of Part 1 of Division 1 of the Food and Agricultural Code, to read:
Article  10. California Dairy Future Task Force

590.
 (a) The California Dairy Future Task Force, previously established by the secretary and consisting of dairy producers, processors, and cooperatives, shall be continued in existence for the specific purpose of developing a stable economic environment for California dairy producers and processors.
(b) The California Dairy Future Task Force shall do all of the following:
(1) Evaluate all of the following issues and any other issues it determines to be relevant:
(A) Market-based and other alternative pricing models.
(B) Pricing mechanisms that appropriately share risk and value between dairy producers and processors, promote competition, and encourage innovation.
(C) Whether California’s regulated milk pricing system has kept pace with the rapidly changing global marketplace.
(D) Adequacy of relevant statutes and regulations.
(2) Solicit input from the dairy industry and related businesses.
(3) Make recommendations to the secretary and the Legislature no later than July 1, 2014, regarding the addition, modification, or repeal of existing statutes and regulations for all classes of milk.
(c) Funding for the California Dairy Future Task Force, in an amount not to exceed ____ five hundred thousand dollars ($____) ($500,000), shall be made available from the funds deposited into the Department of Food and Agriculture Fund pursuant to Article 14 (commencing with Section 62211) of Chapter 2 of Part 3 of Division 21, subject to appropriation by the Legislature.