Bill Text: CA SB362 | 2009-2010 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Agriculture: victory garden growers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-08-02 - From committee with author's amendments. Read second time. Amended. Re-referred to Com. on AGRI. [SB362 Detail]
Download: California-2009-SB362-Introduced.html
Bill Title: Agriculture: victory garden growers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-08-02 - From committee with author's amendments. Read second time. Amended. Re-referred to Com. on AGRI. [SB362 Detail]
Download: California-2009-SB362-Introduced.html
BILL NUMBER: SB 362 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Florez
FEBRUARY 25, 2009
An act to amend Sections 221, 58892.2, 61345, 61384, 61411.2,
61810, 62079, 62146, 62149, 62151, 62191, 62193, 62502, 62504, 62520,
62564, 62565, 62580, 62582, 62623, 62660, 62750, and 64305 of, to
repeal Sections 62563, 62564.5, and 62640 of, and to repeal Chapter 3
(commencing with Section 62700) of Part 3 of Division 21 of, the
Food and Agricultural Code, relating to milk.
LEGISLATIVE COUNSEL'S DIGEST
SB 362, as introduced, Florez. Milk pooling: equalization pools.
Existing law, the Gonsalves Milk Pooling Act (the act), provides
for equalization pools and milk pooling to govern the production and
distribution of fluid milk and fluid cream. The act authorizes the
Secretary of Food and Agriculture to develop a pooling plan, with
specified items required to be included in the pooling plan, under
which producers of milk are assigned a pool quota that determines the
amount of class 1 milk the producer can sell to handlers within the
pooling system and the prices to be paid by handlers to producers.
The act provides related provisions concerning fee assessments,
violations, and other pooling plan requirements.
This bill would repeal the act and make conforming changes.
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 221 of the Food and Agricultural Code is
amended to read:
221. The "Department of Food and Agriculture Fund," which is a
special fund, is continued in existence. Any money that is directed
by law to be paid into the fund shall be paid into it and, unless
otherwise specifically provided, shall be expended solely for the
enforcement of the law under which the money was derived. The
expenditure from the fund for the enforcement of any law shall not,
unless otherwise specifically provided, exceed the amount of money
that is credited to the fund pursuant to the law.
Notwithstanding Section 13340 of the Government Code, all money
deposited in the fund under the provisions enumerated below is hereby
continuously appropriated to the department without regard to fiscal
years for expenditure in carrying out the purposes for which the
money was deposited and for making the refunds authorized by Section
302.
All money deposited in the fund under the provisions enumerated
below is hereby exempted from Sections 13320 to 13324, inclusive, of
the Government Code:
(a) Article 7 (commencing with Section 5821) and Article 7.5
(commencing with Section 5850) of Chapter 8 of Part 1 of Division 4,
Chapter 1 (commencing with Section 6701) of Part 3 of Division 4, and
Chapter 5 (commencing with Section 53301) of Division 18.
(b) Article 5 (commencing with Section 6001) of Chapter 9 of Part
1 of Division 4.
(c) Article 8.5 (commencing with Section 6047.1) of Chapter 9 of
Part 1 of Division 4.
(d) Article 4.5 (commencing with Section 6971) and Article 5
(commencing with Section 6981) of Chapter 2 of Part 3 of Division 4.
(e) Chapter 4 (commencing with Section 14200), Chapter 5
(commencing with Section 14501), and Chapter 6 (commencing with
Section 14901) of Division 7.
(f) Part 1 (commencing with Section 16301) and Part 2 (commencing
with Section 17401) of Division 9.
(g) Sections 19225, 19227, 19312, and 19315.
(h) Division 10 (commencing with Section 20001).
(i) Division 11 (commencing with Section 23001).
(j) Part 4 (commencing with Section 27501) of Division 12.
(k) Division 16 (commencing with Section 40501).
() Chapter 9 (commencing with Section 44971) of Division 17.
(m) Chapter 1 (commencing with Section 52001) of Division 18.
(n) Chapter 2 (commencing with Section 52251) of Division 18.
(o) Chapter 3 (commencing with Section 52651) of Division 18.
(p) Chapter 4 (commencing with Section 52851) of Division 18.
(q) Chapter 6 (commencing with Section 55401), Chapter 7
(commencing with Section 56101), and Chapter 7.5 (commencing with
Section 56701) of Division 20.
(r) Section 58582.
(s) Chapter 1 (commencing with Section 61301) ,
and Chapter 2 (commencing with Section 61801) ,
and Chapter 3 (commencing with Section 62700) of Part 3 of
Division 21.
(t) Chapter 5.5 (commencing with Section 12531) of Division 5 of
the Business and Professions Code.
(u) Chapter 7 (commencing with Section 12700) of Division 5 of the
Business and Professions Code.
(v) Chapter 14 (commencing with Section 13400) and Chapter 15
(commencing with Section 13700) of Division 5 of the Business and
Professions Code.
SEC. 2. Section 58892.2 of the Food and Agricultural Code is
amended to read:
58892.2. No marketing order for milk shall be issued by the
director secretary unless he or
she finds that such marketing order does not conflict with the
provisions of Chapter 2 (commencing with Section 61801) or
Chapter 3 (commencing with Section 62700) of Part 3 of
Division 21.
SEC. 3. Section 61345 of the Food and Agricultural Code is amended
to read:
61345. Chapter 2 (commencing with Section 61801) ,
and Chapter 2.5 (commencing with Section 62500)
, and Chapter 3 (commencing with Section 62700)
shall be liberally construed as being complementary of, and
supplemental to, this chapter, and these chapters shall constitute a
single comprehensive scheme for the regulation of the production and
handling of milk. However, each of the chapters, and each article,
section, subdivision, sentence, clause, and phrase of each chapter is
severable.
If one of the chapters or any article, section, subdivision,
sentence, clause, or phrase of any one of the chapters is for any
reason held void, invalid, or unconstitutional, the decision shall
not affect the validity of any other chapter or any of its articles,
sections, subdivisions, sentences, clauses, or phrases.
SEC. 4. Section 61384 of the Food and Agricultural Code is amended
to read:
61384. (a) The sale by any retailer, wholesale customer,
manufacturer, or distributor, including any producer-distributor or
nonprofit cooperative association acting as a distributor, of milk,
cream, or any dairy product at less than cost is an unlawful
practice. This subdivision applies to finished products, and does not
apply to sales of bulk milk between handlers.
(b) For the purposes of this section, the following terms have the
following meanings:
(1) "Cost," as applied to manufacturers and distributors, means
the total consideration paid or exchanged for raw product, plus the
total expense incurred for manufacturing, processing, handling, sale,
and delivery.
(2) "Cost," as applied to wholesale customers, means the invoice
price charged to the wholesale customer, or the expense of
replacement, whichever is lower, plus the wholesale customer's cost
of doing business.
(3) "Cost of doing business," as applied to wholesale customers,
means a wholesale customer's total operating expense divided by the
customer's total sales income.
(4) (A) Except as provided in subparagraph (B), "total
consideration paid or exchanged for raw product," in the case of
market milk or market cream used in the manufacture of class 1, 2,
and 3 products, means the department's current announced regulated
minimum price of the market milk or market cream, payable by handlers
to producers , except as provided in Section 62708.5
.
(B) Notwithstanding subparagraph (A), in situations involving
sales on a bid basis to public agencies or institutions, the
definition in subparagraph (A) shall only apply to market milk or
market cream that is utilized for class 1 purposes, as those purposes
are defined in Chapter 2 (commencing with Section 61801).
(c) Proof of cost, based on audits or surveys conducted in
accordance with generally accepted accounting principles as defined
by the American Institute of Certified Public Accountants and the
Financial Accounting Standards Board, and modified, if necessary, to
satisfy the requirements of this section, shall establish a
rebuttable presumption of that cost at the time of the transaction of
any sale. This presumption is a presumption affecting the burden of
proof, but it does not apply in a criminal action.
(d) Nothing in this section shall be deemed to prohibit any of the
following activities:
(1) The meeting, in good faith, of a lawful competitive price or a
lawful competitive condition.
(2) A distributor's action in making conditional sales of
equipment or other property, extending credit for merchandise
purchased, or paying a customer's obligations not otherwise
prohibited by this chapter to another distributor in connection with
the transfer of the customer's business from the latter to the
former.
(e) The secretary shall establish, by regulation pursuant to
Section 61341, the procedures which shall be used to make the
determinations required by this section, including the following:
(1) Any modifications to the generally accepted accounting
principles described in subdivision (c) necessary to satisfy the
requirements of this section.
(2) Procedures for evaluating efforts to meet lawful competitive
prices or conditions.
(3) Other procedures necessary or appropriate to facilitate the
application or enforcement of this section.
SEC. 5. Section 61411.2 of the Food and Agricultural Code is
amended to read:
61411.2. Section 61411 does not apply to the purchase of
manufacturing milk which is necessary to meet an unanticipated
increase in demand or an unanticipated shortage in the supply of a
handler if the quantity purchased from any one producer does not
exceed 5,000 gallons in any one month. However, if the producer is a
cooperative association acting as a producer, the total quantity
purchased shall not exceed 30,000 gallons per month.
For a single transaction between a producer and handler, payment
shall be made for the amount of milk delivered during the first 15
days of any calendar month not later than the first day of the next
following month and payment shall be made for the amount of milk
delivered during the remainder of the month not later than the 15th
day of the next following month , unless the milk is subject
to a pooling plan as authorized in Chapter 3 (commencing with
Section 62700) and the pooling plan provides for different dates and
methods of payment, in which case the date and method of payment for
the milk shall be as provided for in the pooling plan .
SEC. 6. Section 61810 of the Food and Agricultural Code is amended
to read:
61810. Chapter 1 (commencing with Section 61301) ,
and Chapter 2.5 (commencing with Section 62500)
, and Chapter 3 (commencing with Section 62700)
shall be liberally construed as being complementary of, and
supplemental to, this chapter, and these chapters shall constitute a
single comprehensive scheme for the regulation of the production and
handling of market milk. However, each of the chapters, and each
article, section, subdivision, sentence, clause, and phrase of each
chapter is severable.
If one of the chapters or any article, section, subdivision,
sentence, clause, or phrase of any one of the chapters is for any
reason held void, invalid, or unconstitutional, the decision shall
not affect the validity of the other chapter or any of its articles,
sections, subdivisions, sentences, clauses, or phrases.
SEC. 7. Section 62079 of the Food and Agricultural Code is amended
to read:
62079. Whenever a pooling plan is in effect as provided in
Chapter 3 (commencing with Section 62700) and
Chapter 3.5 (commencing with Section 62750) of this part, all market
milk received by pool handlers shall be obligated to the pool at the
applicable minimum price established in the Stabilization and
Marketing Plans based on the classified usage of that milk. Handlers
may pay producers for restricted use market milk at prices that are
less than the amount credited to those handlers for restricted use
market milk by the pooling plan.
SEC. 8. Section 62146 of the Food and Agricultural Code is amended
to read:
62146. The director secretary may
refuse to grant or renew any license if he or she is satisfied that
any applicant, or any person connected with the applicant, either
directly or indirectly, has violated any of the following:
(a) This chapter or any stabilization and marketing plan or other
regulation adopted under this chapter.
(b) Chapter 1 (commencing with Section 61301).
(c) Chapter 3 (commencing with Section 62700) or any pooling plan
established thereunder.
SEC. 9. Section 62149 of the Food and Agricultural Code is amended
to read:
62149. The decision may include an order refusing to grant or
renew the license applied for, or affixing other conditional and
probationary orders that may be proper for the enforcement of any of
the following:
(a) This chapter or any stabilization and marketing plan
formulated pursuant to this chapter.
(b) Chapter 1 (commencing with Section 61301).
(c) Any regulation duly adopted by the director
secretary pursuant to Section 61891.
(d) Chapter 3 (commencing with Section 62700) or any pooling plan
established thereunder.
SEC. 10. Section 62151 of the Food and Agricultural Code is
amended to read:
62151. The director secretary may
revoke or suspend, as the case may require, any license which is
issued pursuant to this chapter, if he or she is satisfied that any
licensee or any person who is connected with the licensee has
violated any of the following:
(a) This chapter or any stabilization and marketing plan which is
formulated pursuant to this chapter.
(b) Any regulation which is adopted by the director
secretary pursuant to Section 61891.
(c) Chapter 1 (commencing with Section 61301).
(d) Chapter 3 (commencing with Section 62700) or any pooling plan
adopted thereunder.
The proceedings shall be conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, and the director
secretary shall have all the powers which are granted in that
chapter.
SEC. 11. Section 62191 of the Food and Agricultural Code is
amended to read:
62191. (a) Except as otherwise provided in Section 62193 or
62194, the purchase of any market milk in excess of 1,000 gallons
monthly from any producer is an unlawful trade practice unless a
written contract, which complies with all of the requirements which
are prescribed by this section, has been entered into with the
producer.
(b) The contract shall include all of the following:
(1) The amount of market milk which is to be purchased for any
period.
(2) The minimum quantity of the market milk which is to be paid
for as class 1, if any is to be purchased for this purpose. The
quantity shall be stated in pounds of market milk, pounds of market
milk fat, or gallons of market milk, unless the price which is to be
paid for the class 1 market milk is established separately for the
market milk fat and market skim milk, in which case the quantity may,
in the alternative, be stated in both pounds of market milk fat and
pounds of market skim milk separately. The minimum quantity of market
milk to be paid for as class 1 shall not be less than 70 percent of
the total quantity provided in the contract to be purchased at a milk
products plant, and not less than 60 percent of the total quantity
of market milk fat, or the total quantity of market skim milk
components, but not necessarily both, provided in the contract to be
purchased at a country plant, as defined by the director
secretary in stabilization and marketing plans.
(3) The price to be paid for all market milk received.
(4) The date and method of payment for the market milk. Payment
shall be made for the amount of the market milk delivered during the
first 15 days of any calendar month not later than the first day of
the next following month and for the amount delivered during the
remainder of the month not later than the 15th day of the next
following month unless the milk is subject to a pooling plan
as authorized in Chapter 3 (commencing with Section 62700) and the
pooling plan provides for different dates and methods of payment, in
which case the date and method of payment for the milk shall be as
provided for in the pooling plan .
(5) The charges for transportation if hauled by the handler.
(6) A provision that market milk received within the total
quantity provided by the contract to be purchased for any period
shall not be paid for at less than the minimum price for market milk
used for class 2.
(c) The contract may contain other provisions that are not in
conflict with this chapter. A signed copy of the contract shall be
filed by the producer with the director
secretary within five days from the date of its execution.
(d) Paragraphs (2) and (6) of subdivision (b) shall not be
applicable if an equalization pool, as provided pursuant to Chapter 3
(commencing with Section 62700), is in effect for the area in which
the purchase of the market milk occurs.
SEC. 12. Section 62193 of the Food and Agricultural Code is
amended to read:
62193. Section 62191 does not apply to the purchase of market
milk which is necessary to meet an unanticipated increase in demand
or an unanticipated shortage in the supply of a handler if both of
the following occur:
(a) The quantity of market milk purchased from any one producer
does not exceed 5,000 gallons in any one month. However, if the
producer is a cooperative association acting as a producer, the total
quantity purchased shall not exceed 30,000 gallons per month.
(b) A complete record of all of these purchases is kept by the
handler, and the price paid for the milk by the handler is not less
than the price which is established in the applicable stabilization
and marketing plan for the usage to which the milk is applied. For a
single transaction between a producer and handler, payment shall be
made for the amount of milk delivered during the first 15 days of any
calendar month not later than the first day of the next following
month and payment shall be made for the amount of milk delivered
during the remainder of the month not later than the 15th day of the
next following month , unless the milk is subject to a
pooling plan as authorized in Chapter 3 (commencing with Section
62700) and the pooling plan provides for different dates and methods
of payment, in which case the date and method of payment for the milk
shall be as provided for in the pooling plan .
SEC. 13. Section 62502 of the Food and Agricultural Code is
amended to read:
62502. It is recognized by the Legislature that the powers
conferred upon the director secretary
by Chapter 1 (commencing with Section 61301) ,
and Chapter 2 (commencing with Section 61801) ,
and Chapter 3 (commencing with Section 62700) are
inadequate to enable the dairy industry to maintain satisfactory
producer payment protection. Therefore, those powers must be
supplemented by the powers conferred by this chapter upon the
director secretary to establish and
administer a milk producers security trust fund.
SEC. 14. Section 62504 of the Food and Agricultural Code is
amended to read:
62504. Chapter 1 (commencing with Section 61301) ,
and Chapter 2 (commencing with Section 61801)
, and Chapter 3 (commencing with Section 62700)
shall be liberally construed as being complementary of, and
supplemental to, this chapter, and these chapters shall constitute a
single comprehensive scheme for the regulation of the production and
handling of milk. However, each of the chapters, and each article,
section, subdivision, sentence, clause, and phrase of each chapter is
severable.
If one of the chapters or any article, section, subdivision,
sentence, clause, or phrase of any one of the chapters is for any
reason held void, invalid, or unconstitutional, the decision shall
not affect the validity of any other chapter or any of its articles,
sections, subdivisions, sentences, clauses, or phrases.
SEC. 15. Section 62520 of the Food and Agricultural Code is
amended to read:
62520. Unless otherwise defined in this chapter, or the context
otherwise requires, the definitions contained in Chapter 1
(commencing with Section 61301) , or
Chapter 2 (commencing with Section 61801) , or Chapter 3
(commencing with Section 62700) govern the construction of
this chapter.
SEC. 16. Section 62563 of the Food and Agricultural Code is
repealed.
62563. Any handler subject to any pooling plan in effect under
Chapter 3 (commencing with Section 62700) shall continue to be
obligated for the minimum prices provided for in the stabilization
and marketing plans on the pooled usage of the handler. However, any
part of the minimum prices that is attributable to the security
charges established pursuant to Section 62561 shall be deducted
before producer prices are determined under the pooling plan.
Any handler subject to the pooling plan that receives milk that is
not included in the calculation of producer prices determined under
the pooling plan shall be obligated to pay the security charges
established pursuant to Section 62561 for any portion of that milk
that is assigned to class 1, class 2, class 3, class 4a, and class 4b
usage.
The amount of any handler's obligation attributable to the
security charges established pursuant to Section 62561 shall be
remitted by the secretary to the fund by the end of the month
following the month the pool calculations were completed.
SEC. 17. Section 62564 of the Food and Agricultural Code is
amended to read:
62564. Any handler receiving milk not subject to any
pooling plan in effect pursuant to Chapter 3 (commencing with Section
62700) shall be obligated to remit to the secretary any
security charges in effect pursuant to Section 62561 for class 1,
class 2, class 3, class 4a, and class 4b products produced from the
milk and may deduct the security charges from the minimum prices
required to be paid to producers.
SEC. 18. Section 62564.5 of the Food and Agricultural Code is
repealed.
62564.5. Any producer-handler who has milk production that is
exempt pursuant to Section 62708, 62708.1, 62708.5, or 62722 from the
pooling plan in effect pursuant to Chapter 3 (commencing with
Section 62700) shall be exempt from any security charges established
pursuant to this article for that exempt production.
SEC. 19. Section 62565 of the Food and Agricultural Code is
amended to read:
62565. Security charges may be collected by the director
secretary through direct payment or
through pool accounting procedures established by the director
pursuant to Chapter 3 (commencing with Section 62700) .
SEC. 20. Section 62580 of the Food and Agricultural Code is
amended to read:
62580. Except as otherwise provided in this chapter, milk shipped
by a producer to a handler which meets the following criteria shall
be considered for coverage pursuant to this chapter:
(a) Milk shipment was made after December 31, 1986.
(b) A valid contract between the producer and handler pursuant to
Chapter 1 (commencing with Section 61310) or Chapter 2 (commencing
with Section 61801) has been filed with the director
secretary prior to the date the milk was
shipped, unless the shipment was made in the first five days after
the contract was executed. This requirement shall not apply to all
shipments made prior to the effective date of this chapter.
(c) The handler was licensed and bonded as required by Chapter 1
(commencing with Section 61301) or Chapter 2 (commencing with Section
61801) when the contract was filed with the director
secretary .
(d) The milk was produced within the state and delivered to a
plant within the state.
(e) The director secretary has not
issued a prior notice that the shipments would not be covered by the
fund.
(f) The shipment was not made under a custom processing
arrangement with the producer retaining title.
(g) The producer or cooperative shipping the milk had a direct
contract with the handler. In the case of a cooperative, only the
milk of its members shipped under the contract is covered. Milk
shipped to a handler under a contract held by intermediaries,
brokers, or agents is not covered.
(h) The producer does not have a beneficial ownership interest in
the handler to whom shipments were made.
(i) The producer is in compliance with this chapter, Chapter 1
(commencing with Section 61301), and Chapter 2 (commencing
with Section 61801) , and Chapter 3 (commencing with
Section 62700) .
SEC. 21. Section 62582 of the Food and Agricultural Code is
amended to read:
62582. If the secretary determines that future shipments to a
handler may not be eligible for coverage under this chapter in the
event of a default, the secretary shall notify all producers who have
a contract on file with the secretary, all cooperative associations,
and other interested parties. The secretary may determine that
future shipments will not be eligible when any of the following
events occur:
(a) The handler fails to maintain a valid license or bond as
required under Chapter 1 (commencing with Section 61301) or Chapter 2
(commencing with Section 61801).
(b) The handler has failed to pay producers as required under
Chapter 1 (commencing with Section 61301) or Chapter 2 (commencing
with Section 61801).
(c) The handler has failed to pay the amount due the pool
equalization fund provided for in Chapter 3 (commencing with Section
62700).
(d)
(c) The handler fails to submit, when requested by the
secretary, executed contracts that establish the relationship between
affected parties.
SEC. 22. Section 62623 of the Food and Agricultural Code is
amended to read:
62623. For purposes of this chapter, the amounts owed to the
producers shall be calculated as follows:
(a) Only shipments which that occur
during the first 35 days from the date of the earliest shipment for
which a producer has not been paid shall be used.
(b) The minimum prices established in the stabilization and
marketing plans applied to the usage assigned under the pooling plan
shall be used for cooperative marketing associations.
(c) The price specified in the contract with the handler shall be
used for manufacturing milk producers unless a lower price is
contained in the stabilization and marketing plans, in which case the
lower price shall be used.
(d) The minimum prices established in the stabilization and
marketing plans shall be used for direct market milk producers who
are not shipping their milk under the pooling plan.
(e) The quota, base, and overbase prices, as provided for in the
pooling plan, shall be used for producers, other than cooperative
marketing associations, who ship their milk directly to a handler.
(f) Deductions shall be made for those items which the handler
customarily deducts from the payments, unless the deductions are in
violation of Chapter 1 (commencing with Section 61301) ,
or Chapter 2 (commencing with Section 61801),
or Chapter 3 (commencing with Section 62700), or
the deductions are for voluntary assignments made by the producer.
(g) The producer's share of any bond recovery under Chapter 1
(commencing with Section 61301) or Chapter 2 (commencing with Section
61801) shall be deducted.
SEC. 23. Section 62640 of the Food and Agricultural Code
is repealed.
62640. If a handler defaults in payments to the pool equalization
fund provided for in Chapter 3 (commencing with Section 62700) and
the director determines that additional efforts will not result in
collection of the amount due, the director, 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.
SEC. 24. Section 62660 of the Food and Agricultural Code is
amended to read:
62660. The director secretary may
use money in the Department of Food and Agriculture Fund derived from
assessments and fees collected pursuant to Chapter 1 (commencing
with Section 61301) , and Chapter 2
(commencing with Section 61801) , and Chapter 3 (commencing
with Section 62700) to the extent necessary to defray the
costs of administering this chapter, except costs for which the fund
is liable, as provided for in Section 62569.
SEC. 25. Chapter 3 (commencing with Section 62700) of Part 3 of
Division 21 of the Food and Agricultural Code is repealed.
SEC. 26. Section 62750 of the Food and Agricultural Code is
amended to read:
62750. Notwithstanding any provision of Chapter 3
(commencing with Section 62700) in conflict with this section or any
pooling plan for market milk in effect under that chapter, effective
Effective January 1, 1994, each producer shall
be paid the amounts determined in accordance with this section for
his or her pool quota production and for all production in excess of
his or her pool quota.
(a) For all milk fat, whether or not equal to his or her pool
quota, an amount determined by dividing the value of all milk fat in
the pool by the amount of milk fat produced.
(b) Transportation allowances that are provided for in the pooling
plan shall not be deducted from the quota milk of any region, but
shall be deducted from the total solids not fat pool revenue before
any price is determined for quota and nonquota solids not fat.
(c) Regional quota adjusters shall continue to be subtracted from
the quota price in the established areas as specified in the pooling
plan for market milk. However, the hundredweight price specified
shall be converted to a solids not fat equivalent value, and the
adjustments for the effect of those regional quota adjusters shall be
applied to the solids not fat revenue.
(d) After taking into consideration the effect of the regional
quota adjusters, the solids not fat announced quota price for those
areas in which there is no regional quota adjuster shall be nineteen
and one-half cents ($0.195) per pound greater than the announced
solids not fat price for all milk produced in excess of pool quota.
SEC. 27. Section 64305 of the Food and Agricultural Code is
amended to read:
64305. Fees established and assessed under this chapter may be
collected by the director secretary
through direct payment or through pool accounting procedures
established by the director under Chapter 3 (commencing with Section
62700) .
