62061. Each stabilization and marketing plan shall contain
provisions for prohibiting producers and handlers from engaging in
the unlawful trade practices applicable to them that are set forth in
Article 10 (commencing with Section 62091) of this chapter.
62062. Each stabilization and marketing plan shall contain
provisions whereby the director establishes minimum prices to be paid
by handlers to producers for market milk in the various classes. The
director 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 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 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 establishing the prices, the director shall take into
consideration any relevant economic factors, including, but not
limited to, the following:
(a) 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 shall consider the
cost of management and a reasonable return on necessary capital
investment.
(b) That prices established pursuant to this section shall insure
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, when considered
with relevant economic criteria, are fair and reasonable.
(c) That prices, including the prices of components of milk,
established by the director for the various classes of market milk
bear a reasonable and sound economic relationship to each other.
In establishing the prices, the director shall also take into
consideration all the purposes, policies, and standards contained in
Sections 61801, 61802, 61805, 61806, 61807, 62076, and 62077.
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 provide, on a calendar year basis,
a statewide weighted average minimum price level for a hundred
weight of milk testing 3.5 fat and 8.7 solids not fat that is in
reasonable relationship with minimum class 1 milk prices paid to
producers in contiguous states. If the statewide weighted average
class 1 prices paid to producers are not in a reasonable relationship
with the class 1 prices paid to producers in contiguous states, the
secretary shall immediately hold a hearing to consider adjustments to
the class 1 prices.
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 (commencing with Section 62500).
62063. Subject to the provisions of Sections 62074 and 62075, each
stabilization and marketing plan shall contain provisions whereby the
director shall provide methods for the establishment of minimum
prices for market milk received within a marketing area regardless of
whether the milk is subsequently sold or distributed within or
without the marketing area within the jurisdiction of this state, and
may contain the provisions whether or not the market milk is
subsequently sold or distributed outside the jurisdiction of this
state.
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 is subsequently sold or distributed in another
marketing area within this state where a stabilization and marketing
plan is in effect.
(b) That, if area of usage pricing is in effect, producers shall
be paid not less than the minimum prices established for the
marketing area wherein such market milk is ultimately sold or
distributed.
(c) That, if area of usage pricing is in effect and such market
milk is subsequently sold or distributed in any place within the
jurisdiction of this state where no stabilization and marketing plan
is in effect, such market milk shall be paid by the handler to the
producer at not less than the average of prices which are paid by
handlers, whose plants are located within such area, to producers for
market milk. If, however, no plants are located within such area,
the price which shall be paid by the handler to the producer shall
not be less than the average of prices which are paid by handlers to
producers for market milk, at the plants in the nearest marketing
areas adjacent to the area where such market milk is sold or
distributed, as established by the stabilization and marketing plans
in effect in such adjacent marketing areas.
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 to the effective date of such
amendment. Each such plan shall, however, be brought into conformity
with such amendment at the earliest practicable date after the
effective date of such amendment.
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 milk in any marketing area, may
establish, as the applicable minimum prices, those prices applicable
within the marketing area of ultimate usage of such market milk,
those prices applicable within the marketing area where the plant of
first receipt of such market milk is located, those prices applicable
in the marketing area where the producers place of production is
located, or any of the above or any combination of the above.
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 following:
(a) The volume of market milk received from such producer in
pounds of milk.
(b) The milk fat, solids-not-fat, or other component tests of such
milk.
(c) The amount of market milk in pounds of milk fat,
solids-not-fat or other components paid for in the several classes or
pools.
(d) The prices paid for the various classes for each month.
62068. Each stabilization and marketing plan may contain provisions
which authorize any handler that purchases market milk under
contract from any producer to pool such market milk for producer
payment purposes in accordance with such contracts, irrespective of
whether such market milk is actually and physically received at the
same milk products plant or diverted, in accordance with such plan.
Such provisions may do any of the following:
(a) Provide that market milk that is received from producers by
milk products plants under the same ownership, may be pooled for
purposes of payment to producers.
(b) Provide that if a handler pools market milk, as provided in
subdivision (a), the handler shall allocate, among all producers that
participate in the class 1 usage, transportation savings which are
applicable to market milk, not actually transported between the plant
of first receipt and one or more other plants subject to the pool,
and used for class 1, and may pay to producers shipping market milk
directly to a plant subject to the pool a price for usage of such
market milk for class 1, which price represents the average of
minimum producer prices payable by that particular plant for such
class 1 usage.
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 provisions may provide that the milk,
if used in classes other than class 1 by the purchasing handler, may
be paid for at the minimum prices established by the director for
this other usage but which shall not be less than the prices as found
by the director to be paid by manufacturing milk plants in, or
adjacent to, the area that use milk for similar purposes. The prices
shall remain in effect only for the period during which, as
determined by the director, there is a surplus of producer-handler
milk.
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 components which are transported to
the area where sold. The stabilization and marketing plan may
enumerate the applicable maximum charges, and may establish
individual charges for each function enumerated. In establishing any
such maximum charges for such transportation services, the director
shall base such maximum charges upon the rates which are charged for
actual or reasonably similar services by highway carriers, as the
term "highway carriers" is defined in Secton 3511 of the Public
Utilities Code.
62071. Each stabilization and marketing plan may provide for
minimum charges for the various services performed or rendered by a
nonprofit cooperative association in respect to class 1 market milk
sold or delivered to another handler. Handler services include
component testing for payment purposes, quality control, producer
payroll, weighing and sampling of bulk market milk. Each stablization
and marketing plan may also include, but not be limited to, minimum
charges for the handling of intermittent or irregular deliveries of
market milk and plant standby services. The stabilization and
marketing plan may enumerate applicable minimum charges and establish
individual charges for each service enumerated or, in the
alternative, the director may establish one or more minimum charges
covering one or more of the separate handler services.
62072. In establishing minimum handler service charges under
Section 62071, the director shall take into consideration all
relevant factors, including, but not limited to, the following:
(a) The reasonably necessary costs of providing such services,
including overhead, as determined by impartial cost surveys,
examination of books and records, or both, of such portions of those
handlers within the marketing area as are reasonably determined by
the director to be sufficiently representative to indicate such costs
of all reasonably efficient handlers within such marketing area.
(b) The relationship of the establishment of such minimum charges
to the achievement and maintenance of the orderly marketing of market
milk and to the effectuation of the purposes of this chapter.
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 in part, by the producer, and such
hauling is done by the handler either directly or through an agent or
by any person that contracts with, or is designated by, such handler
for such hauling, the director may, and upon the written request of
the producer or the written request of any association representing
the producer shall, investigate the rates, terms, and conditions
which are involved in such hauling in order to determine whether such
rates, terms and conditions are in compliance with Section 62070.
If the director determines that such rates, terms, and conditions
are not in compliance with Section 62070, he shall determine, within
the standards which are prescribed in Section 62070, the maximum
charges on account of such hauling that will comply with Section
62070 with respect to such purchase of market milk.
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 cream, market skim milk, or milk fat,
or market skim milk components of such market milk.
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 milk is mandatory.
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 subcomponents thereof, and fluid carrier
basis. In establishing the minimum prices for classes of market milk
other than class I, separate prices may be established for any one or
more of the following:
(a) The milk fat contained in such milk.
(b) The solids-not-fat or subcomponents thereof contained in such
milk.
(c) The fluid contained in such milk.
(d) Any combination of the milk fat, the solids-not-fat or
subcomponents thereof, or the fluid contained in such milk.
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 any relevant economic factors,
including, but not limited to, the following:
(a) The relative market value of the various products yielded from
such market milk.
(b) The market price of other milk which may be used for the same
purposes that are set forth in such respective classes.
(c) The value of milk used for manufacturing purposes giving
consideration to any relevant factors including, but not limited to,
product prices, product yields, and manufacturing costs of class 4a
or class 4b.
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 to accounting procedures
established by the director. If the market milk is not applied to any
purpose set forth in Article 5 (commencing with Section 61931), then
a handler shall not pay any producer less than the lower of the
prices established under the applicable stabilization and marketing
plan for class 4a and class 4b usage.
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 of origin of such milk, whether inside
or outside the jurisdiction of the State of California.
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.
62061. Each stabilization and marketing plan shall contain
provisions for prohibiting producers and handlers from engaging in
the unlawful trade practices applicable to them that are set forth in
Article 10 (commencing with Section 62091) of this chapter.
62062. Each stabilization and marketing plan shall contain
provisions whereby the director establishes minimum prices to be paid
by handlers to producers for market milk in the various classes. The
director 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 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 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 establishing the prices, the director shall take into
consideration any relevant economic factors, including, but not
limited to, the following:
(a) 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 shall consider the
cost of management and a reasonable return on necessary capital
investment.
(b) That prices established pursuant to this section shall insure
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, when considered
with relevant economic criteria, are fair and reasonable.
(c) That prices, including the prices of components of milk,
established by the director for the various classes of market milk
bear a reasonable and sound economic relationship to each other.
In establishing the prices, the director shall also take into
consideration all the purposes, policies, and standards contained in
Sections 61801, 61802, 61805, 61806, 61807, 62076, and 62077.
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 provide, on a calendar year basis,
a statewide weighted average minimum price level for a hundred
weight of milk testing 3.5 fat and 8.7 solids not fat that is in
reasonable relationship with minimum class 1 milk prices paid to
producers in contiguous states. If the statewide weighted average
class 1 prices paid to producers are not in a reasonable relationship
with the class 1 prices paid to producers in contiguous states, the
secretary shall immediately hold a hearing to consider adjustments to
the class 1 prices.
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 (commencing with Section 62500).
62063. Subject to the provisions of Sections 62074 and 62075, each
stabilization and marketing plan shall contain provisions whereby the
director shall provide methods for the establishment of minimum
prices for market milk received within a marketing area regardless of
whether the milk is subsequently sold or distributed within or
without the marketing area within the jurisdiction of this state, and
may contain the provisions whether or not the market milk is
subsequently sold or distributed outside the jurisdiction of this
state.
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 is subsequently sold or distributed in another
marketing area within this state where a stabilization and marketing
plan is in effect.
(b) That, if area of usage pricing is in effect, producers shall
be paid not less than the minimum prices established for the
marketing area wherein such market milk is ultimately sold or
distributed.
(c) That, if area of usage pricing is in effect and such market
milk is subsequently sold or distributed in any place within the
jurisdiction of this state where no stabilization and marketing plan
is in effect, such market milk shall be paid by the handler to the
producer at not less than the average of prices which are paid by
handlers, whose plants are located within such area, to producers for
market milk. If, however, no plants are located within such area,
the price which shall be paid by the handler to the producer shall
not be less than the average of prices which are paid by handlers to
producers for market milk, at the plants in the nearest marketing
areas adjacent to the area where such market milk is sold or
distributed, as established by the stabilization and marketing plans
in effect in such adjacent marketing areas.
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 to the effective date of such
amendment. Each such plan shall, however, be brought into conformity
with such amendment at the earliest practicable date after the
effective date of such amendment.
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 milk in any marketing area, may
establish, as the applicable minimum prices, those prices applicable
within the marketing area of ultimate usage of such market milk,
those prices applicable within the marketing area where the plant of
first receipt of such market milk is located, those prices applicable
in the marketing area where the producers place of production is
located, or any of the above or any combination of the above.
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 following:
(a) The volume of market milk received from such producer in
pounds of milk.
(b) The milk fat, solids-not-fat, or other component tests of such
milk.
(c) The amount of market milk in pounds of milk fat,
solids-not-fat or other components paid for in the several classes or
pools.
(d) The prices paid for the various classes for each month.
62068. Each stabilization and marketing plan may contain provisions
which authorize any handler that purchases market milk under
contract from any producer to pool such market milk for producer
payment purposes in accordance with such contracts, irrespective of
whether such market milk is actually and physically received at the
same milk products plant or diverted, in accordance with such plan.
Such provisions may do any of the following:
(a) Provide that market milk that is received from producers by
milk products plants under the same ownership, may be pooled for
purposes of payment to producers.
(b) Provide that if a handler pools market milk, as provided in
subdivision (a), the handler shall allocate, among all producers that
participate in the class 1 usage, transportation savings which are
applicable to market milk, not actually transported between the plant
of first receipt and one or more other plants subject to the pool,
and used for class 1, and may pay to producers shipping market milk
directly to a plant subject to the pool a price for usage of such
market milk for class 1, which price represents the average of
minimum producer prices payable by that particular plant for such
class 1 usage.
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 provisions may provide that the milk,
if used in classes other than class 1 by the purchasing handler, may
be paid for at the minimum prices established by the director for
this other usage but which shall not be less than the prices as found
by the director to be paid by manufacturing milk plants in, or
adjacent to, the area that use milk for similar purposes. The prices
shall remain in effect only for the period during which, as
determined by the director, there is a surplus of producer-handler
milk.
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 components which are transported to
the area where sold. The stabilization and marketing plan may
enumerate the applicable maximum charges, and may establish
individual charges for each function enumerated. In establishing any
such maximum charges for such transportation services, the director
shall base such maximum charges upon the rates which are charged for
actual or reasonably similar services by highway carriers, as the
term "highway carriers" is defined in Secton 3511 of the Public
Utilities Code.
62071. Each stabilization and marketing plan may provide for
minimum charges for the various services performed or rendered by a
nonprofit cooperative association in respect to class 1 market milk
sold or delivered to another handler. Handler services include
component testing for payment purposes, quality control, producer
payroll, weighing and sampling of bulk market milk. Each stablization
and marketing plan may also include, but not be limited to, minimum
charges for the handling of intermittent or irregular deliveries of
market milk and plant standby services. The stabilization and
marketing plan may enumerate applicable minimum charges and establish
individual charges for each service enumerated or, in the
alternative, the director may establish one or more minimum charges
covering one or more of the separate handler services.
62072. In establishing minimum handler service charges under
Section 62071, the director shall take into consideration all
relevant factors, including, but not limited to, the following:
(a) The reasonably necessary costs of providing such services,
including overhead, as determined by impartial cost surveys,
examination of books and records, or both, of such portions of those
handlers within the marketing area as are reasonably determined by
the director to be sufficiently representative to indicate such costs
of all reasonably efficient handlers within such marketing area.
(b) The relationship of the establishment of such minimum charges
to the achievement and maintenance of the orderly marketing of market
milk and to the effectuation of the purposes of this chapter.
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 in part, by the producer, and such
hauling is done by the handler either directly or through an agent or
by any person that contracts with, or is designated by, such handler
for such hauling, the director may, and upon the written request of
the producer or the written request of any association representing
the producer shall, investigate the rates, terms, and conditions
which are involved in such hauling in order to determine whether such
rates, terms and conditions are in compliance with Section 62070.
If the director determines that such rates, terms, and conditions
are not in compliance with Section 62070, he shall determine, within
the standards which are prescribed in Section 62070, the maximum
charges on account of such hauling that will comply with Section
62070 with respect to such purchase of market milk.
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 cream, market skim milk, or milk fat,
or market skim milk components of such market milk.
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 milk is mandatory.
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 subcomponents thereof, and fluid carrier
basis. In establishing the minimum prices for classes of market milk
other than class I, separate prices may be established for any one or
more of the following:
(a) The milk fat contained in such milk.
(b) The solids-not-fat or subcomponents thereof contained in such
milk.
(c) The fluid contained in such milk.
(d) Any combination of the milk fat, the solids-not-fat or
subcomponents thereof, or the fluid contained in such milk.
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 any relevant economic factors,
including, but not limited to, the following:
(a) The relative market value of the various products yielded from
such market milk.
(b) The market price of other milk which may be used for the same
purposes that are set forth in such respective classes.
(c) The value of milk used for manufacturing purposes giving
consideration to any relevant factors including, but not limited to,
product prices, product yields, and manufacturing costs of class 4a
or class 4b.
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 to accounting procedures
established by the director. If the market milk is not applied to any
purpose set forth in Article 5 (commencing with Section 61931), then
a handler shall not pay any producer less than the lower of the
prices established under the applicable stabilization and marketing
plan for class 4a and class 4b usage.
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 of origin of such milk, whether inside
or outside the jurisdiction of the State of California.
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.
62061. Each stabilization and marketing plan shall contain
provisions for prohibiting producers and handlers from engaging in
the unlawful trade practices applicable to them that are set forth in
Article 10 (commencing with Section 62091) of this chapter.
62062. Each stabilization and marketing plan shall contain
provisions whereby the director establishes minimum prices to be paid
by handlers to producers for market milk in the various classes. The
director 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 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 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 establishing the prices, the director shall take into
consideration any relevant economic factors, including, but not
limited to, the following:
(a) 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 shall consider the
cost of management and a reasonable return on necessary capital
investment.
(b) That prices established pursuant to this section shall insure
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, when considered
with relevant economic criteria, are fair and reasonable.
(c) That prices, including the prices of components of milk,
established by the director for the various classes of market milk
bear a reasonable and sound economic relationship to each other.
In establishing the prices, the director shall also take into
consideration all the purposes, policies, and standards contained in
Sections 61801, 61802, 61805, 61806, 61807, 62076, and 62077.
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 provide, on a calendar year basis,
a statewide weighted average minimum price level for a hundred
weight of milk testing 3.5 fat and 8.7 solids not fat that is in
reasonable relationship with minimum class 1 milk prices paid to
producers in contiguous states. If the statewide weighted average
class 1 prices paid to producers are not in a reasonable relationship
with the class 1 prices paid to producers in contiguous states, the
secretary shall immediately hold a hearing to consider adjustments to
the class 1 prices.
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 (commencing with Section 62500).
62063. Subject to the provisions of Sections 62074 and 62075, each
stabilization and marketing plan shall contain provisions whereby the
director shall provide methods for the establishment of minimum
prices for market milk received within a marketing area regardless of
whether the milk is subsequently sold or distributed within or
without the marketing area within the jurisdiction of this state, and
may contain the provisions whether or not the market milk is
subsequently sold or distributed outside the jurisdiction of this
state.
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 is subsequently sold or distributed in another
marketing area within this state where a stabilization and marketing
plan is in effect.
(b) That, if area of usage pricing is in effect, producers shall
be paid not less than the minimum prices established for the
marketing area wherein such market milk is ultimately sold or
distributed.
(c) That, if area of usage pricing is in effect and such market
milk is subsequently sold or distributed in any place within the
jurisdiction of this state where no stabilization and marketing plan
is in effect, such market milk shall be paid by the handler to the
producer at not less than the average of prices which are paid by
handlers, whose plants are located within such area, to producers for
market milk. If, however, no plants are located within such area,
the price which shall be paid by the handler to the producer shall
not be less than the average of prices which are paid by handlers to
producers for market milk, at the plants in the nearest marketing
areas adjacent to the area where such market milk is sold or
distributed, as established by the stabilization and marketing plans
in effect in such adjacent marketing areas.
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 to the effective date of such
amendment. Each such plan shall, however, be brought into conformity
with such amendment at the earliest practicable date after the
effective date of such amendment.
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 milk in any marketing area, may
establish, as the applicable minimum prices, those prices applicable
within the marketing area of ultimate usage of such market milk,
those prices applicable within the marketing area where the plant of
first receipt of such market milk is located, those prices applicable
in the marketing area where the producers place of production is
located, or any of the above or any combination of the above.
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 following:
(a) The volume of market milk received from such producer in
pounds of milk.
(b) The milk fat, solids-not-fat, or other component tests of such
milk.
(c) The amount of market milk in pounds of milk fat,
solids-not-fat or other components paid for in the several classes or
pools.
(d) The prices paid for the various classes for each month.
62068. Each stabilization and marketing plan may contain provisions
which authorize any handler that purchases market milk under
contract from any producer to pool such market milk for producer
payment purposes in accordance with such contracts, irrespective of
whether such market milk is actually and physically received at the
same milk products plant or diverted, in accordance with such plan.
Such provisions may do any of the following:
(a) Provide that market milk that is received from producers by
milk products plants under the same ownership, may be pooled for
purposes of payment to producers.
(b) Provide that if a handler pools market milk, as provided in
subdivision (a), the handler shall allocate, among all producers that
participate in the class 1 usage, transportation savings which are
applicable to market milk, not actually transported between the plant
of first receipt and one or more other plants subject to the pool,
and used for class 1, and may pay to producers shipping market milk
directly to a plant subject to the pool a price for usage of such
market milk for class 1, which price represents the average of
minimum producer prices payable by that particular plant for such
class 1 usage.
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 provisions may provide that the milk,
if used in classes other than class 1 by the purchasing handler, may
be paid for at the minimum prices established by the director for
this other usage but which shall not be less than the prices as found
by the director to be paid by manufacturing milk plants in, or
adjacent to, the area that use milk for similar purposes. The prices
shall remain in effect only for the period during which, as
determined by the director, there is a surplus of producer-handler
milk.
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 components which are transported to
the area where sold. The stabilization and marketing plan may
enumerate the applicable maximum charges, and may establish
individual charges for each function enumerated. In establishing any
such maximum charges for such transportation services, the director
shall base such maximum charges upon the rates which are charged for
actual or reasonably similar services by highway carriers, as the
term "highway carriers" is defined in Secton 3511 of the Public
Utilities Code.
62071. Each stabilization and marketing plan may provide for
minimum charges for the various services performed or rendered by a
nonprofit cooperative association in respect to class 1 market milk
sold or delivered to another handler. Handler services include
component testing for payment purposes, quality control, producer
payroll, weighing and sampling of bulk market milk. Each stablization
and marketing plan may also include, but not be limited to, minimum
charges for the handling of intermittent or irregular deliveries of
market milk and plant standby services. The stabilization and
marketing plan may enumerate applicable minimum charges and establish
individual charges for each service enumerated or, in the
alternative, the director may establish one or more minimum charges
covering one or more of the separate handler services.
62072. In establishing minimum handler service charges under
Section 62071, the director shall take into consideration all
relevant factors, including, but not limited to, the following:
(a) The reasonably necessary costs of providing such services,
including overhead, as determined by impartial cost surveys,
examination of books and records, or both, of such portions of those
handlers within the marketing area as are reasonably determined by
the director to be sufficiently representative to indicate such costs
of all reasonably efficient handlers within such marketing area.
(b) The relationship of the establishment of such minimum charges
to the achievement and maintenance of the orderly marketing of market
milk and to the effectuation of the purposes of this chapter.
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 in part, by the producer, and such
hauling is done by the handler either directly or through an agent or
by any person that contracts with, or is designated by, such handler
for such hauling, the director may, and upon the written request of
the producer or the written request of any association representing
the producer shall, investigate the rates, terms, and conditions
which are involved in such hauling in order to determine whether such
rates, terms and conditions are in compliance with Section 62070.
If the director determines that such rates, terms, and conditions
are not in compliance with Section 62070, he shall determine, within
the standards which are prescribed in Section 62070, the maximum
charges on account of such hauling that will comply with Section
62070 with respect to such purchase of market milk.
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 cream, market skim milk, or milk fat,
or market skim milk components of such market milk.
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 milk is mandatory.
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 subcomponents thereof, and fluid carrier
basis. In establishing the minimum prices for classes of market milk
other than class I, separate prices may be established for any one or
more of the following:
(a) The milk fat contained in such milk.
(b) The solids-not-fat or subcomponents thereof contained in such
milk.
(c) The fluid contained in such milk.
(d) Any combination of the milk fat, the solids-not-fat or
subcomponents thereof, or the fluid contained in such milk.
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 any relevant economic factors,
including, but not limited to, the following:
(a) The relative market value of the various products yielded from
such market milk.
(b) The market price of other milk which may be used for the same
purposes that are set forth in such respective classes.
(c) The value of milk used for manufacturing purposes giving
consideration to any relevant factors including, but not limited to,
product prices, product yields, and manufacturing costs of class 4a
or class 4b.
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 to accounting procedures
established by the director. If the market milk is not applied to any
purpose set forth in Article 5 (commencing with Section 61931), then
a handler shall not pay any producer less than the lower of the
prices established under the applicable stabilization and marketing
plan for class 4a and class 4b usage.
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 of origin of such milk, whether inside
or outside the jurisdiction of the State of California.
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.
