CHAPTER 2.5. Milk Producers Security Trust Fund
Chapter 2.5 added by Stats. 1987, Ch. 156, Sec. 55.
§§ 62500–62667 · 51 sections
ARTICLE 1. Legislative Declaration §§ 62500–62508 · 7 sections
- § 62500 The production and distribution of milk, and the components thereof, is hereby declared to be a business affected with a public interest. This chapter is…
- § 62501 It is hereby declared that the dairy industry is a paramount agricultural industry of the state, and the normal processes of producing and marketing milk are…
- § 62503 This chapter shall be liberally construed. If any article, section, subdivision, sentence, clause, or phrase of this chapter is for any reason held to be…
- § 62505 This chapter does not preclude any producer from bringing any action against any handler in any court of competent jurisdiction.
- § 62506 In order to effectuate the purposes of this chapter, the Milk Producers Security Trust Fund is hereby created.
- § 62507 It is hereby declared, as a matter of legislative determination, that producers and handlers appointed to the Milk Producers Security Trust Fund Board are…
- § 62508 This chapter shall be known and may be cited as the Norman S. Waters-Ruben S. Ayala Milk Producers’ Security Act of 1987.
ARTICLE 2. Definitions § 62521 · 1 section
- § 62521 For purposes of this chapter, the following terms have the following meanings: (a) (1) “Acceptable security” means a surety bond from an admitted insurer,…
ARTICLE 3. Milk Producers Security Trust Fund Board §§ 62540–62543 · 4 sections
- § 62540 (a) The secretary shall appoint a Milk Producers Security Trust Fund Board consisting of seven members. (b) All appointments shall be for a term of three…
- § 62541 Each member of the board shall be paid one hundred dollars ($100) per day plus travel expenses, including expenses for lodging and meals, which are incurred in…
- § 62542 The board shall advise the secretary on the administration of the fund, including, but not limited to, the amount of the fund defaults under this chapter and…
- § 62543 The board may, by contract, with the approval of the secretary, engage the services of an accounting firm or other consultants or agencies that the board…
ARTICLE 4. Financing Plan §§ 62560–62574 · 13 sections
- § 62560 (a) The security charges provided for in Section 62561 shall be collected until January 1, 2007. Unless otherwise permitted by this section, the secretary…
- § 62561 (a) The following security charges shall be in effect for any period for which the secretary has implemented collections under this chapter: (1) 3.2 mills…
- § 62563 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…
- § 62565 Security charges shall be collected by the secretary through direct payment.
- § 62566 The secretary may add a penalty of 10 percent to amounts that are not paid when due.
- § 62567 If any handler or producer-handler does not provide the information necessary to determine the amount due, when required, the secretary shall estimate the…
- § 62568 The secretary may take all appropriate action against any person to recover any unpaid amounts. In any action, a declaration by the secretary that states the…
- § 62569 (a) Any money that is collected by the secretary pursuant to this chapter shall be deposited in a bank or other depository that is approved by the secretary.…
- § 62570 All fund activities shall be subject to an audit at least once every two years by an auditing firm recommended by the board and selected by the secretary. A…
- § 62571 Notwithstanding Section 13340 of the Government Code, any money that is collected by the secretary pursuant to this chapter is hereby continuously appropriated…
- § 62572 Any money that is deposited pursuant to Section 62569, which the secretary determines is available for investment, may be invested or reinvested by the…
- § 62573 (a) Any increment that is received from investment, reinvestment, or deposit of money pursuant to Section 62572 shall be deposited to the credit of the fund.…
- § 62574 Immediately following the payment to the fund of the increment provided in Section 62573, the secretary may, after consultation with the board, transfer an…
ARTICLE 5. Milk Producers Security Trust Fund Coverage §§ 62580–62587 · 9 sections
- § 62580 (a) Except as otherwise provided in this chapter, milk shipped by a producer to a handler who meets all of the following criteria shall be considered for…
- § 62580.5 Any producer entity, including a nonprofit cooperative association that severs a disqualifying beneficial ownership interest in a handler to whom it supplies…
- § 62581 Only shipments which occur during the first 35 days from the date of the earliest shipment for which a producer has not been paid are eligible.
- § 62582 If future shipments to a handler are not eligible for coverage under this chapter in the event of a default, the secretary shall notify all producers who have…
- § 62583 If, on the date of the notice issued pursuant to Section 62582, a producer has a contract with the handler which is on file with the secretary, and that…
- § 62584 If, on the date of the notice issued pursuant to Section 62582, a producer does not have a contract with the handler which is on file with the secretary,…
- § 62585 If the secretary issues a notice pursuant to Section 62582, the secretary may again qualify shipments to the handler if the handler has corrected the…
- § 62586 The secretary shall, at least monthly, publish a current list of all handlers to whom shipments are not eligible for coverage under the fund.
- § 62587 The secretary may waive any of the provisions of this article if, after consultation with the board, the secretary finds that a hardship would be imposed on…
ARTICLE 6. Discovery and Notification of Default in Payments §§ 62600–62604 · 4 sections
- § 62600 Any producer who does not receive payment for milk sold or delivered to a handler in the manner required by Section 1051.73 of the Federal Milk Marketing…
- § 62601 The secretary shall, upon the secretary’s own motion or upon information from a producer, producer representative, or any other person, immediately take…
- § 62603 If the secretary determines that a payment default has occurred, the secretary shall notify the handler that it has one business day from receipt of the…
- § 62604 When a payment default has occurred, which was not corrected within one business day after notification, the secretary shall issue a notice pursuant to Section…
ARTICLE 7. Producer Claims §§ 62620–62625 · 6 sections
- § 62620 If the secretary determines that the fund is liable for any nonpayments to producers, the secretary shall provide to the producers, who have a contract with…
- § 62621 If a verified claim form is not filed as required by Section 62620, the secretary and the fund are relieved of any further duty or liability pursuant to this…
- § 62622 Upon receipt of all verified claim forms from producers or the expiration of the time allowed to file claims, whichever occurs first, the secretary shall…
- § 62623 For purposes of this chapter, the amounts owed to the producers shall be calculated as follows: (a) Only shipments that occur during the first 35 days from the…
- § 62624 Two hundred thousand dollars ($200,000) shall be deducted from the total of the amount owed to all producers, as calculated in Section 62623, and the balance…
- § 62625 A prorated payment shall be made to all affected producers based on the amount payable pursuant to Section 62624 when there is not sufficient money in the…
ARTICLE 10. Administration §§ 62660–62667 · 7 sections
- § 62660 (a) The secretary shall collect from each producer three and three-tenths mills ($0.0033) per hundredweight of all milk, whether pooled or nonpooled, to defray…
- § 62661 The secretary is the instrumentality of this state for the purpose of administering and enforcing this chapter and to execute the legislative intent expressed…
- § 62662 The secretary may exercise any or all of the powers conferred by Chapter 2 (commencing with Section 11150) of Part 1 of Division 3 of Title 2 of the Government…
- § 62663 For purposes of enforcing this chapter, the secretary may investigate any and all transactions between producers and handlers, between nonprofit cooperative…
- § 62665 Any order of the secretary made pursuant to this chapter that substantially affects the rights of any directly affected party shall be subject to judicial…
- § 62666 Any producer who recovers from the fund shall subrogate to the secretary all rights of recovery against any person or organization, and the producer shall…
- § 62667 Any payments made to producers from the fund due to a handler’s default shall accrue interest at the rate of 12 percent per annum from the date of payment. The…