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AB-2669 Milk: stabilization and marketing plans.(2013-2014)

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CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 2669

Introduced by Assembly Member Eggman

February 21, 2014

An act to amend Section 62062 of the Food and Agricultural Code, relating to milk.


LEGISLATIVE COUNSEL'S DIGEST


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   Local Program: NO  

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


SECTION 1.

 Section 62062 of the Food and Agricultural Code is amended to read:

62062.
 (a) Each stabilization and marketing plan shall contain provisions whereby the director secretary establishes minimum prices to be paid by handlers to producers for market milk in the various all classes. The director secretary shall establish the prices by designating them in the plan, or by adopting methods or formulas in the plan whereby the prices can be determined, or any combination of the foregoing. If the director secretary directly designates prices in the plan, the prices shall be in reasonable and sound economic relationship with the national value of manufactured milk products. If the director secretary adopts methods or formulas in the plan for designation of prices, the methods or formulas shall be reasonably calculated to result in prices that are in a reasonable and sound economic relationship with the national value of manufactured milk products.

In

(b) In establishing the prices, the director secretary shall take into consideration any relevant economic factors, including, but not limited to, the following:

(a)

(1) The reasonableness and economic soundness of market milk prices for all classes, giving consideration to the combined income from those class prices, in relation to the cost of producing and marketing market milk for all purposes, including manufacturing purposes. In determining the costs, the director secretary shall consider the cost of management and a reasonable return on necessary capital investment.

(b)

(2) That prices established pursuant to this section shall insure ensure an adequate and continuous supply, in relation to demand, of pure, fresh, wholesome market milk for all purposes, including manufacturing purposes, at prices to consumers which that, when considered with relevant economic criteria, are fair and reasonable.

(c)

(3) That prices, including the prices of components of milk, established by the director secretary for the various classes of market milk bear a reasonable and sound economic relationship to each other.

In

(c) In establishing the prices, the director secretary shall also take into consideration all the purposes, policies, and standards contained in Sections 61801, 61802, 61805, 61806, 61807, 62076, and 62077.