CHAPTER 2. Stabilization and Marketing of Market Milk [61801. - 62403.]

Chapter 2 repealed and added by Stats. 1977, Ch. 1192.

§§ 61801–62403 · 158 sections

1. ARTICLE 1. Legislative Declarations §§ 61801–61812 · 12 sections

   • § 61801 The production of market milk is hereby declared to be a business affected with a public interest. The provisions of this chapter are enacted in the exercise…
   • § 61802 The Legislature hereby declares all of the following: (a) Market milk is a necessary article of food for human consumption. (b) The production and maintenance…
   • § 61803 It is recognized by the Legislature that conditions within the milk industry of this state are such that it is necessary to establish marketing areas wherein…
   • § 61804 The foregoing statements in this article of facts, policy, and application of this chapter are hereby declared a matter of legislative determination.
   • § 61805 The purposes of this chapter are to do all of the following: (a) Provide funds for administration and enforcement of this chapter, by assessments to be paid by…
   • § 61806 It is the intent of the Legislature that the powers conferred in this chapter shall be liberally construed.
   • § 61807 Nothing in this chapter permits or authorizes the development of conditions of monopoly in the production of market milk. In the establishment of the terms and…
   • § 61808 The Legislature hereby declares that this chapter is intended to formulate a comprehensive scheme for the regulation of marketing milk. If, however, any…
   • § 61809 If any article, section, subdivision, sentence, clause, or phrase of any provision of this chapter is for any reason held to be unconstitutional, such decision…
   • § 61810 Chapter 1 (commencing with Section 61301), Chapter 2.5 (commencing with Section 62500), and Chapter 3 (commencing with Section 62700) shall be liberally…
   • § 61811 No provision of this chapter, or of any stabilization and marketing plan formulated by the director pursuant to this chapter, is any limitation upon the right…
   • § 61812 Neither the repeal of former Chapter 2 of this part, the reenactment of this chapter nor the amendment of any provision of this chapter shall have the effect…
2. ARTICLE 2. Definitions §§ 61821–61839 · 20 sections

   • § 61821 Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
   • § 61822 “Board” means any advisory board created as authorized in this chapter.
   • § 61823 “Bulk market milk” means market milk which has not been pasteurized or packaged in bottles, cartons, dispenser cans, or other consumer packages, and is handled…
   • § 61824 “Consumer” means any person that purchases market milk, or any dairy product for consumption.
   • § 61825 “Dairy product” or “milk product” includes any product manufactured from milk or any derivative or product of milk.
   • § 61826 “Handler” means any person who, as owner, agent, broker, or intermediary, either directly or indirectly, receives, purchases, or otherwise acquires ownership,…
   • § 61827 “Market cream” means cream, as defined in this code, and any combination of cream and milk, or any fluid product of milk or cream sold under any trade name…
   • § 61828 “Market milk” has the meaning of that term as defined in Section 32510 and has the same meaning as “restricted use market milk” as defined in Section 32516.5.…
   • § 61829 “Market skim milk” means skim milk, as defined in this code, that is derived from market milk and conforms to the health and sanitary regulations of the place…
   • § 61830 “Marketing area” is any area within this state declared to be such in the manner that is prescribed in this chapter.
   • § 61831 “Milk” has the meaning of that term as defined in Section 32511.
   • § 61831.5 “Milk used for manufacturing purposes” means all milk used for those products defined in Part 3 (commencing with Section 36601) of Division 15.
   • § 61832 “Milk plant” means any place, structure, or building where a handler receives market milk.
   • § 61833 “Packaged market milk” or “packaged market cream” means market milk or market cream respectively, which is packaged in cartons, bottles, dispenser cans, or…
   • § 61834 “Person” means any individual, firm, corporation, partnership, limited liability company, trust, incorporated or unincorporated association, nonprofit…
   • § 61835 “Processing” means receiving, pasteurizing, and packaging market milk. It includes the manufacturing of milk products from market milk.
   • § 61836 “Producer” means any person that produces market milk from five or more cows in conformity with the applicable health regulations of the place in which it is…
   • § 61837 “Producer-handler” means any person that is both a producer and a handler of market milk. For the purposes of this chapter a producer-handler is a producer in…
   • § 61838 “Stabilization and marketing plan” means any plan formulated and made effective by the director within the legislative standards provided by this chapter. It…
   • § 61839 “Wholesale customer” means any person except a distributor that buys packaged milk, cream, or any dairy product for resale to consumers or to other wholesale…
3. ARTICLE 3. Nonprofit Cooperative Associations §§ 61871–61873 · 3 sections

   • § 61871 For the purposes of this chapter, a nonprofit cooperative association organized and existing under Chapter 1 (commencing with Section 54001) of Division 20,…
   • § 61872 For the purposes of this chapter, a nonprofit cooperative association organized and existing under Chapter 1 (commencing with Section 54001) of Division 20,…
   • § 61873 A nonprofit cooperative association accounts to producers on a patronage basis when it accounts to each producer for his share of the net proceeds derived from…
4. ARTICLE 4. Administration §§ 61891–61904 · 14 sections

   • § 61891 The director shall enforce the provisions of this chapter and of any stabilization and marketing plan initiated pursuant to the provisions of this chapter. The…
   • § 61892 The director shall have and may exercise any or all the powers conferred by the Government Code upon the head of a department of the state with respect to…
   • § 61893 The director is the instrumentality of this state for the purpose of administering and enforcing the provisions of this chapter and to execute the legislative…
   • § 61894 For the purposes of enforcing this chapter, the director may investigate any and all transactions, between producers and handlers, between nonprofit…
   • § 61895 The director may require the registration of producers.
   • § 61896 The director may formulate any stabilization and marketing plan as prescribed in this chapter and declare it effective after public hearing and reasonable…
   • § 61897 A full and accurate record of business or acts performed, or of testimony taken, by the director pursuant to this chapter shall be kept and placed on file in…
   • § 61898 In addition to the compilation of information which pertains to market milk from the reports required by this chapter, the director shall collect, assemble,…
   • § 61899 Any order of the director made pursuant to this chapter which substantially affects the rights of any interested party may be reviewed by any court of…
   • § 61900 The director may confer, enter into agreements, or otherwise arrange with the constituted authorities of this state, other states, or agencies of the United…
   • § 61901 All money received by the director pursuant to this chapter shall be paid monthly into the State Treasury to the credit of the Department of Food and…
   • § 61902 If the director determines that it is probable that one or more factors or conditions which affect prices of market milk have changed on a relatively uniform…
   • § 61903 Any person who has testified under oath at a public hearing held by the director pursuant to this chapter may be granted, upon request prior to the close of…
   • § 61904 Any provisions of a stabilization and marketing plan formulated, established, or rejected by the director pursuant to this chapter, shall be accompanied by…
5. ARTICLE 5. Classes of Market Milk §§ 61931–61937 · 7 sections

   • § 61931 Market milk may be classified for the purposes of this chapter as provided in this article.
   • § 61932 Class 1 comprises: (a) Any market milk, market skim milk, half-and-half, or concentrated milk that is supplied to consumers in the fluid state, with the…
   • § 61933 Class 2 comprises any market milk, market skim milk, or market cream used in the manufacture of market cream, homogenized market cream, sour cream, sour cream…
   • § 61934 Class 3 comprises all market milk, market skim milk, or market cream used in the manufacture of frozen dairy products.
   • § 61935 (a) Class 4a comprises all market milk, market skim milk, or market cream used in the manufacture of butter, dried milk, dried skim milk, nonfat dry milk…
   • § 61936 If the director establishes a temporary definition and standards for any new milk product pursuant to Article 2 (commencing with Section 36631), Chapter 1,…
   • § 61937 Market milk, market skim milk, or market cream, utilized in bulk by handlers as condensed milk, condensed skim milk, evaporated skim milk, evaporated cream or…
6. ARTICLE 6. Marketing Areas §§ 61961–61963 · 3 sections

   • § 61961 The director shall designate marketing areas which he deems necessary or advisable to effectuate the purposes of this chapter, and in which he finds the…
   • § 61962 The director may establish additional areas, or modify areas previously established, if he deems the establishment or modification of such areas necessary or…
   • § 61963 If the director finds, after a public hearing in and for each particular marketing area under consideration for consolidation, that conditions of production…
7. ARTICLE 7. Formation and Adoption of Stabilization and Marketing Plans §§ 61991–61998 · 8 sections

   • § 61991 Except as otherwise provided in Section 61992, the director shall, prior to the formulation of a stabilization and marketing plan for market milk for any…
   • § 61992 A hearing need not, however, be held if a petition requesting a stabilization and marketing plan is presented to the director by the producers whose major…
   • § 61993 If the director finds that a stablization and marketing plan is necessary to accomplish the purposes of this chapter, he shall formulate a stabilization and…
   • § 61994 The notice of the hearing may be effected by mail, or by publication pursuant to Section 6062 of the Government Code in the area which is designated. It shall…
   • § 61995 At the hearing, interested parties shall be heard and records kept of the proceedings of such hearing for determination by the director whether the plan…
   • § 61996 If, after the public hearing, the director determines that the proposed plan will tend to accomplish the purposes of this chapter within the standards which…
   • § 61997 A handler that is subject to the provisions of any stabilization and marketing plan shall not purchase milk from any producer that does not comply with this…
   • § 61998 No stabilization or marketing plan shall contain provisions the purposes of which are to establish limitations upon the production of market milk.
8. ARTICLE 8. Amendment and Termination of Stabilization and Marketing Plans §§ 62031–62032 · 2 sections

   • § 62031 The director may amend or terminate any stabilization and marketing plan, after notice and public hearing as prescribed in Article 7 (commencing with Section…
   • § 62032 A hearing on the amendment or termination of a stabilization and marketing plan may be held upon the motion of the director and shall be held upon receipt of a…
9. ARTICLE 9. Establishment of Minimum Prices and Provisions of Stabilization and Marketing Plans §§ 62061–62079 · 22 sections

   • § 62061 Each stabilization and marketing plan shall contain provisions for prohibiting producers and handlers from engaging in the unlawful trade practices applicable…
   • § 62062 Each stabilization and marketing plan shall contain provisions whereby the director establishes minimum prices to be paid by handlers to producers for market…
   • § 62062.1 Any designation of a class 1 price by any method or formula that is used to develop class 1 prices paid to producers in the various marketing areas, shall…
   • § 62062.5 The minimum prices otherwise established pursuant to this chapter shall be increased by any security charges that are imposed pursuant to Chapter 2.5…
   • § 62063 Subject to the provisions of Sections 62074 and 62075, each stabilization and marketing plan shall contain provisions whereby the director shall provide…
   • § 62064 Each stabilization and marketing plan shall provide all of the following: (a) For the establishment of prices for market milk, whether or not such market milk…
   • § 62065 No amendment of this article terminates or invalidates any provision of any stabilization and marketing plan which has been established by the director prior…
   • § 62066 Notwithstanding any other provision of this code to the contrary, the director, in establishing minimum prices to be paid by handlers to producers, for market…
   • § 62067 Each stabilization and marketing plan may contain provisions which require handlers to report to each producer from whom market milk is secured all of the…
   • § 62068 Each stabilization and marketing plan may contain provisions which authorize any handler that purchases market milk under contract from any producer to pool…
   • § 62069 The director may establish minimum prices to be paid by handlers to producer-handlers for milk not used by the purchasing handler as class 1 milk. These…
   • § 62070 Each stabilization and marketing plan may further provide for maximum charges for plant processing and transportation service on the market milk or market milk…
   • § 62071 Each stabilization and marketing plan may provide for minimum charges for the various services performed or rendered by a nonprofit cooperative association in…
   • § 62072 In establishing minimum handler service charges under Section 62071, the director shall take into consideration all relevant factors, including, but not…
   • § 62073 If any contract between a handler and a producer for the purchase of any market milk provides that the charges for the hauling of it shall be paid, in whole or…
   • § 62074 If the director establishes a stabilization and marketing plan for market milk, the director shall establish minimum prices to be paid by handlers for market…
   • § 62074.5 A stabilization and marketing plan may contain provisions necessary to encourage the availability of market milk for those usages for which class 1 and class 2…
   • § 62075 The director shall establish the minimum prices to be paid by handlers to producers for class I usage of market milk upon a milk fat, solids-not-fat or the…
   • § 62076 In establishing prices to be paid by handlers to producers for class 2, class 3, class 4a, or class 4b market milk, the director shall take into consideration…
   • § 62077 A handler shall not pay any producer less than the applicable price established for the usage to which the market milk, purchased from him is applied pursuant…
   • § 62078 All handlers who receive market milk within this state shall be obligated to pay minimum producer prices established under this chapter regardless of the area…
   • § 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…
10. ARTICLE 10. Unlawful Trade Practices §§ 62091–62095 · 5 sections

    • § 62091 The unlawful trade practices described in this article apply to every handler whether or not a stabilization and marketing plan is in effect in the area in…
    • § 62092 The payment, allowance, or acceptance of any secret rebate, secret refund, or unearned discount by any person, whether in the form of money or otherwise, is an…
    • § 62093 The giving of any milk, cream, dairy product, service, or article of any kind, except to a bona fide charity, for the purpose of securing or retaining the…
    • § 62094 The payment, gift, or the offer or promise of any payment or gift, of money or other thing of value, directly or indirectly, or through any agent or other…
    • § 62095 The payment, gift, or the offer or promise of any payment or gift, of money or other thing of value by any person, directly or indirectly or through any agent…
11. ARTICLE 11. Sales to the United States § 62121 · 1 section

    • § 62121 The director may require that each person that submits a bid for the sale to an agency of the United States government of market milk or any milk product which…
12. ARTICLE 12. Handlers’ Licenses §§ 62141–62155 · 15 sections

    • § 62141 The licenses provided for in this article are required for each handler. For the purposes of this article, each subsidiary milk plant or branch milk plant,…
    • § 62142 For the purposes of this article, “handler” shall include any person defined as a handler under Section 61826 or any person defined as a distributor under…
    • § 62143 No person who qualifies as a handler under Section 62142 shall deal in market milk without first obtaining a license from the director. In addition, any person…
    • § 62144 Applications for the license provided by this article shall be made on forms prescribed by the director, accompanied by a fee as prescribed in Section 62145,…
    • § 62145 One-half of the valid license renewals shall be issued for a period of 24 months beginning January 1, 1988. The application fee for renewal of the 24-month…
    • § 62146 The director 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…
    • § 62147 The director may also refuse to grant or renew any license to a handler if he is satisfied that the handler has failed to pay for any market milk delivered to…
    • § 62148 The proceedings to determine whether or not the director shall refuse to grant or renew a license shall be conducted in accordance with Chapter 5 (commencing…
    • § 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…
    • § 62150 After any decision in favor of the issuance or renewal of a license which includes any conditional or probationary orders, if the person to whom the license is…
    • § 62151 The director 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…
    • § 62152 The director may also revoke or suspend any license of a handler if he is satisfied that the handler has not paid for any market milk delivered to him at the…
    • § 62153 The decision may include an order revoking or suspending the license held by the licensee, or affixing such other conditional and probationary orders as may be…
    • § 62154 After any decision, which includes any conditional or probationary orders, if the respondent does not comply with any such orders, the director may suspend or…
    • § 62155 Whenever the director is satisfied, either by investigation or after a hearing, that a handler is unable to pay for any market milk purchased from any…
13. ARTICLE 13. Bonding and Payment for Market Milk §§ 62181–62202 · 23 sections

    • § 62181 The bonds provided for in this article are required for each handler and apply to all purchases of milk by that handler. A handler bonded under this article is…
    • § 62182 (a) Every handler that operates only one plant within the state, before purchasing any market milk from a producer, shall execute and deliver to the secretary…
    • § 62183 If any handler so increases his purchases of market milk during the license year that such purchases exceed the amount for which the handler is bonded, such…
    • § 62184 The bonds required by Sections 62182 and 62183 shall be upon a form approved by the director, and shall be conditioned upon the payment in the manner that is…
    • § 62185 If a handler fails to pay any producer or producers for market milk in the manner that is required by this chapter, the director shall proceed forthwith to…
    • § 62186 After determining the claims of such producers, the director shall bring an action on the bond on behalf of such producers. Any producer not satisfied with the…
    • § 62186.1 (a) The director may bring an action against a surety bond company if the company fails to do any of the following: (1) Acknowledge promptly and act reasonably…
    • § 62187 If a handler fails to pay any producer in the manner that is required by this chapter, the director may require the filing of a new or additional bond in an…
    • § 62188 If recovery upon the bond is not sufficient to pay all of the claims as finally determined and adjudged by the court, any such amount recovered shall be…
    • § 62189 The failure of any handler that purchases market milk from producers to execute and deliver the bond as provided and required in this article is a violation of…
    • § 62190 Payments by a handler to a producer, for the purposes of any action on a handler’s bond or bonds for any year or years, shall be credited first to interest and…
    • § 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…
    • § 62192 The production of market milk in excess of amounts provided to be purchased under contracts executed pursuant to Section 62191 shall be voluntary on the part…
    • § 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…
    • § 62194 Section 62191 does not apply to market milk purchased under cash-on-delivery terms.
    • § 62195 The payment by a handler to any producer, including any nonprofit cooperative association acting as a producer, or the receipt from a handler by a producer,…
    • § 62196 The failure of any handler to pay for market milk delivered to him or her at the time and in the manner specified in the contract with the producer is an…
    • § 62197 This article applies regardless of the form in which market milk is received by the handler and regardless of the area of origin of the market milk.
    • § 62198 Any contract between a producer and handler is voidable by the producer for a 45-day period following the occurrence of either of the following events: (a) The…
    • § 62199 If a notice has been issued by the director that the future deliveries to the handler will not be covered under the Milk Producers Security Trust Fund created…
    • § 62200 (a) Handlers shall pay producers either by check or cash. Handlers electing to pay producers by cash shall, in all cases, obtain a dated, signed receipt from…
    • § 62201 (a) If a handler does not pay for market milk delivered to him or her at the time and in the manner specified in the contract, the handler shall pay the…
    • § 62202 If a handler fails to pay for market milk delivered to him or her at the time and in the manner specified in this chapter, the director may assess a penalty…
14. ARTICLE 14. Administrative Fees §§ 62211–62213 · 3 sections

    • § 62211 (a) (1) Every handler subject to the provisions of any stabilization and marketing plan, including a producer-handler, shall deduct as an assessment from…
    • § 62212 The director may fix the rates of assessments or fees required by Section 62211 at lesser amounts, and may adjust the rates of assessments or fees from time to…
    • § 62213 Any assessment or fee or either of them payable pursuant to any provision of this article is a debt of the person by whom such assessment or fee or either of…
15. ARTICLE 15. Reports and Statistics §§ 62241–62243 · 4 sections

    • § 62241 All handlers shall make and file with the director at least once each month such reports as the director may require to enable him to enforce the provisions of…
    • § 62241.5 Within 60 days of the effective date of this section, each market milk handler shall provide the director with a list of the name, address, and date of every…
    • § 62242 Every handler that purchases market milk shall make and keep for three years a correct record which shows in detail all of the following with reference to the…
    • § 62243 Any record or report made to the director pursuant to this article, or any contract required to be filed under this chapter, is confidential and shall not be…
16. ARTICLE 17. Local and Regional Producer Advisory Boards §§ 62301–62313 · 13 sections

    • § 62301 Except as otherwise provided in Section 62303, the director may, if he deems such board necessary or advisable, appoint: (a) A local advisory board for any…
    • § 62302 Except as otherwise provided in Section 62303, the director shall appoint: (a) A local advisory board, if a majority of the producers individually, or through…
    • § 62303 The director shall not establish any local or regional advisory board pursuant to this article if he finds that the assessments or fees which are collected…
    • § 62304 If the director receives a qualified petition for a local advisory board, he may investigate the possibility of establishing a regional advisory board covering…
    • § 62305 A local advisory board established pursuant to this article shall consist of seven members who shall be producers that supply market milk to the particular…
    • § 62306 The term of office of each member of a regional advisory board or a local advisory board shall be two years.
    • § 62307 The director may remove any member from a local or a regional advisory board if he finds, after a hearing, that such member is guilty of nonfeasance or…
    • § 62308 The director may appoint a member to fill any vacancy on a local or a regional advisory board.
    • § 62309 Each regional advisory board and each local advisory board may meet in regular session each month, and each member shall be allowed twenty dollars ($20) per…
    • § 62310 Any regional or local advisory board may, with the previous approval of the director, employ such personnel as may be necessary in the performance of its…
    • § 62311 Regional and local advisory boards shall review with the director the methods which are to be used in determining producer costs, and aid the director in the…
    • § 62312 For purposes of developing uniformity of administration as between marketing areas in which producer advisory boards have been appointed, the director shall…
    • § 62313 It is hereby declared, as a matter of legislative determination, that producers of market milk appointed to the regional advisory boards pursuant to this…
17. ARTICLE 18. Actions and Penalties §§ 62401–62403 · 3 sections

    • § 62401 The violation of any provision of this chapter, or of any provision of any stabilization and marketing plan, or of any regulation adopted under this chapter,…
    • § 62402 Any person who violates this chapter, any provision of any stabilization and marketing plan, or any regulation adopted under this chapter, is liable civilly in…
    • § 62403 The director may bring an action to enjoin the violation, or the threatened violation, of any provision of this chapter, any provision of any stabilization and…