Added by Stats. 1982, Ch. 380, Sec. 23. Effective July 4, 1982. Section operative January 1, 1983, pursuant to Section 64313.
This article provides for a comprehensive and continuing plan for financing the operations of the council.
Article 11 - Financing Plan
California Food and Agricultural Code — §§ 64300-64312
Sections (15)
Amended by Stats. 2021, Ch. 371, Sec. 15. (AB 425) Effective January 1, 2022.
(a)Annually before the beginning of the fiscal year, the secretary shall, upon the recommendation of the council, establish and announce the assessments to be paid by producers and handlers for the coming fiscal year.
(b)These assessments shall be established at levels sufficient to finance the budget for the coming fiscal year as approved by the secretary pursuant to Sections 64153 and 64154.
(c)The rate structure of the assessments shall be as follows:
(1)The following assessments for handlers of milk:
(A)No more than 17.0 mills ($0.0170) per hundredweight for Class I milk.
(B)No more than 8.5 mills ($0.0085) per hundredweight for all other usages of milk.
(C)The relationship between the handler assessment rates per hundredweight established for Class I milk and for all other usages shall be at a ratio of 2 to 1.
(2)For producers of milk if a stand-alone quota program established pursuant to Section 62757 is operative, the assessments shall be as follows:
(A)No more than 2.0 mills ($0.0020) per pound for quota solids-not-fat, within the meaning given that term for purposes of the Quota Implementation Plan established pursuant to Section 62757.
(B)No more than 1.0 mills ($0.0010) per pound for all other solids-not-fat.
(C)The relationship between the producer assessment rates per pound quota solids-not-fat and per pound for
all other solids-not-fat shall be at a ratio of 2 to 1.
(3)For producers of milk if a stand-alone quota program established pursuant to Section 62757 is not operative, the assessments shall be as follows:
(A)No more than 10.4 mills ($0.0104) per hundredweight of milk produced and delivered to a handler.
(B)The producer assessment shall be without regard to the milk’s usage and shall be at a level between the two handler rates.
(d)The handler and producer assessment rates established pursuant to this section shall be set at levels so that the total projected handler revenue for the year and the total projected producer revenue for the year to be generated from those assessments shall be as close to equal as reasonably
possible.
Amended by Stats. 2021, Ch. 371, Sec. 16. (AB 425) Effective January 1, 2022.
Maximum allowable assessments greater than those provided in Section 64301 shall not be established unless approved by producers and handlers with at least 40 percent of all producers and handlers on record with the department submitting valid ballots during the referendum period, and either of the following:
(a)A majority of producers and handlers voting in the referendum support the increase in the proposed higher maximum assessment allowed, and those producers and handlers voting in favor represent at least 65 percent of the total voted volume represented by each category.
(b)At least 65 percent of producers and handlers voting in the referendum support the increase in the proposed higher maximum assessment allowed, and those producers and handlers voting in favor represent a majority of the total voted volume represented by each category.
Amended by Stats. 2021, Ch. 371, Sec. 17. (AB 425) Effective January 1, 2022.
(a)The producer assessments shall be collected by the first handler that purchases, or otherwise acquires possession or control of, the milk by deducting the assessment from any payment that is due to the producer for the milk. Each handler shall pay the assessment on the handler’s own production. For the purposes of this article, a handler that sells unprocessed milk, of which the handler has the right to possession or control by contract or otherwise, to another handler, and delivers this milk in unprocessed form to the other handler or causes this milk to be delivered to the other handler directly from the producer, is the first handler of this milk.
(b)(1) When the stand-alone quota program, provided pursuant to Section 62757, is in effect, the assessment of each producer for all milk shall be determined on the total solids-not-fat of milk produced and delivered.
(2)When the stand-alone quota program, provided pursuant to Section 62757, is
not in effect, the assessment of each producer for all milk shall be determined on the total hundredweight of milk produced and delivered.
(c)The collection of assessments to be paid by handlers pursuant to Section 64303 shall be used for the handler portion of council assessments only, and shall not affect payments of producers, nor in any way change the method of producer payment for milk.
Amended by Stats. 2021, Ch. 371, Sec. 18. (AB 425) Effective January 1, 2022.
Each handler shall pay to the secretary the assessments established for all milk used in the plant of the handler in the processing and manufacture of milk and milk products.
Amended by Stats. 2021, Ch. 371, Sec. 19. (AB 425) Effective January 1, 2022.
The assessments established and assessed as prescribed in this chapter shall be billed monthly to the handler and shall be paid to the secretary no later than the 15th day of the second month following the month during which the milk was received.
Amended by Stats. 2019, Ch. 304, Sec. 104. (AB 590) Effective January 1, 2020.
Assessments established and assessed under this chapter may be enforced and collected by the secretary through direct payment or through accounting procedures established by the secretary under Chapter 3.5 (commencing with Section 62750).
Amended by Stats. 2019, Ch. 304, Sec. 105. (AB 590) Effective January 1, 2020.
To the amount of assessments that are unpaid when due, the secretary may add a penalty of 10 percent. In addition, the secretary may assess interest at a rate of 1 percent of the unpaid balance for each 30 days the assessment is unpaid.
Amended by Stats. 2019, Ch. 304, Sec. 106. (AB 590) Effective January 1, 2020.
The secretary, by action prosecuted by the secretary, may recover any unpaid assessments. In any action, a certificate of the secretary that shows the amount, including the penalty, determined by the secretary to be required to be paid by the person required to pay this amount is prima facie evidence of the delinquency. The presumption established by this section is a presumption affecting the burden of proof.
Amended by Stats. 2021, Ch. 371, Sec. 20. (AB 425) Effective January 1, 2022.
If any handler does not provide the information necessary to determine the amount of assessments due, when required, the secretary shall estimate the amount due from the records of the department or from any other source of information that is available. In any action by the secretary to recover assessments pursuant to this chapter, a certificate of the secretary that shows the amount determined by the secretary to be required to be paid by the person that is required to pay the assessments is prima facie evidence of the delinquency of the amount that is shown. The presumption established by this section is a presumption affecting the burden of proof.
Amended by Stats. 2019, Ch. 304, Sec. 108. (AB 590) Effective January 1, 2020.
(a)Assessments paid on milk pursuant to this chapter shall be refunded to a producer that meets the following criteria:
(1)The producer was not paid, or received only partial payment, for the milk shipped.
(2)The producer has agreed to repay the refunded assessments to the affected programs if, on a subsequent date, the producer is paid for the milk.
(b)The producer shall receive a full refund of the assessments paid on milk shipped for which no payment was received. If partial payment was received, the producer shall
receive a refund of the assessments paid on milk for which payment was not received.
(c)If a producer subsequently receives full or partial payment for milk for which assessments have been refunded, the producer shall repay the assessments in an amount proportionate to the portion of milk for which payment has been received.
(d)Refunds shall not be made pursuant to this section if the refund would cause a producer to incur an additional assessment obligation to the National Dairy Promotion and Research Program.
(e)The secretary shall adopt procedures for refunding
assessments in accordance with this section. Those procedures shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
Amended by Stats. 2019, Ch. 304, Sec. 109. (AB 590) Effective January 1, 2020.
(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 Director of Finance. Those funds shall be deposited and disbursed in conformity with appropriate regulations prescribed by the secretary and may be allocated to pay for expenses generated by the auditing requirement imposed by subdivision (b). The expenditure of those funds shall be exempt from the provisions of Section 925.6 of the Government Code.
(b)All expenditures by the council shall be audited at least annually by one of the following means:
(1)By contract with a certified public accountant.
(2)By contract with a public accountant holding a valid permit issued by the California Board of Accountancy.
(3)By contract with a public accounting firm.
(4)By agreement with the Department of Finance.
(c)A copy of the audit shall be delivered within 30 days after
its completion to the Governor, the secretary, and the Controller.
Amended by Stats. 2019, Ch. 304, Sec. 110. (AB 590) Effective January 1, 2020.
(a)Notwithstanding Section 13340 of the Government Code, money that is collected by the secretary pursuant to this chapter is continuously appropriated to the department to carry out the duties that are imposed upon the secretary and the council pursuant to this chapter. The appropriation that is made in this section is exempt from the operation of Section 16304 of the Government Code.
(b)The money that is collected by the secretary pursuant to this chapter shall be disbursed by the council only for the necessary expenses incurred by the council and the secretary to carry out the purposes of this chapter, including the payment of refunds
that are authorized pursuant to this chapter. The council may disburse these funds in authorized activities related to particular dairy products without reference to the branches of the dairy industry from which these funds are derived.
Amended by Stats. 2019, Ch. 304, Sec. 111. (AB 590) Effective January 1, 2020.
Any money that is deposited pursuant to Section 64309 that the secretary determines is available for investment may be invested or reinvested by the Treasurer or the council in any of the securities described in Article 1 (commencing with Section 16430) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code, or placed in a depository as provided in Chapter 4 (commencing with Section 16500) of Part 2 of Division 4 of Title 2 of the Government Code, and handled in the same manner as money in the State Treasury. For these purposes, these moneys may also be combined with funds determined by the secretary to be available for investment pursuant to Section 58939 of Chapter 1 of Part 2 of Division 21 of the Food and
Agricultural Code.
Amended by Stats. 2019, Ch. 304, Sec. 112. (AB 590) Effective January 1, 2020.
Any increment that is received from investment, reinvestment, or deposit of money pursuant to Section 64311 shall be deposited to the credit of the council. The Treasurer may deduct from this remittance an amount equal to the reasonable costs incurred in carrying out the provisions of this article or may bill the secretary for the costs and the secretary shall pay the costs from moneys collected pursuant to this chapter.