CALIFORNIA STATUTES AND CODES
SECTIONS 64300-64313
FOOD AND AGRICULTURAL CODE
SECTION 64300-64313
64300. This article provides for a comprehensive and continuing
plan for financing the operations of the council.
64301. Annually, prior to the commencement of the fiscal year, the
secretary shall, upon recommendation of the council, establish and
announce the fees for milk used in class 1 and for all other usages
to be paid by producers, producer-handlers, and handlers for the
coming fiscal year.
These fees 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.
The fee established by the secretary for class 1 milk shall not
exceed two cents ($.02) per hundredweight of such market milk testing
3.5 percent milkfat and 8.7 percent solids-not-fat.
The fee established by the secretary for all other usages of milk
shall not exceed eight mills ($0.008) per hundredweight of milk
testing 3.5 percent milkfat and 8.7 percent solids-not-fat.
The relationship between the fees per hundredweight established
for class 1 milk and for all other usages shall be at a ratio of 2.5
to 1. These fees shall be the same for producers and handlers.
64302. (a) Each producer and producer-handler shall pay fees
established for each hundredweight of milk produced by him or her in
the state and delivered to a handler. The fees shall be collected by
the first handler that purchases, or otherwise acquires possession or
control of, this milk by deducting the fee from any payment which is
due the producer for this milk. Each producer-handler shall pay the
fee on his or her own production. For the purposes of this article, a
handler that sells unprocessed milk, of which he or she has the
right to possession or control by contract or otherwise, to another
handler, and delivers this milk in unprocessed form to this other
handler or causes this milk to be delivered to this other handler
directly from the producer, is the first handler of this milk.
(b) For the purpose of this chapter, the class 1 fee of each
producer shall be determined on the hundredweight equivalent computed
by combining the class 1 fat usage and the class 1 skim usage
included in the payment to the producer. This skim usage shall be
computed by dividing the solids-not-fat usage by the monthly average
solids-not-fat test of skim milk first received from the producer by
handlers or producer-handlers.
(c) The fee of each producer for all other milk shall be
determined on the total hundredweight of milk produced and delivered
remaining after deducting the class 1 equivalent as computed herein.
(d) The collection of fees to be paid by handlers, including
producer-handlers, pursuant to Section 64303 is to 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.
64303. Each handler and producer-handler shall pay to the director
the fees established for class 1 milk and for milk for all other
usages on all milk, skim milk, and cream utilized in the plant of the
handler, or producer-handler in the processing and manufacture of
milk and milk products. This usage shall be computed by combining
pounds of fat and skim milk so utilized, together with allocated
plant loss of this milkfat and skim milk.
64304. The fees established and assessed as prescribed in this
chapter shall be billed monthly to the handler and the
producer-handler, and shall be paid to the director not later than
the 15th day of the second month following the month during which the
milk was received.
64305. Fees established and assessed under this chapter may be
collected by the director through direct payment or through pool
accounting procedures established by the director under Chapter 3
(commencing with Section 62700).
64306. To the amount of fees which are unpaid when due, the
director may add a penalty of 10 percent.
64307. The director, by action prosecuted by him or her, may
recover any unpaid fees. In any action, a certificate of the director
which shows the amount, including penalty, determined by the
director 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.
64308. If any handler or producer-handler does not provide the
information necessary to determine the amount of fees due, when
required, the director shall estimate the amount due from the records
of the department or from any other source of information which is
available. In any action by the director to recover fees pursuant to
this chapter, a certificate of the director which shows the amount
determined by the director to be required to be paid by the person
that is required to pay the fees is prima facie evidence of the
delinquency of the amount which is shown. The presumption established
by this section is a presumption affecting the burden of proof.
64308.5. (a) Fees paid on milk pursuant to this chapter shall be
refunded to producers who meet the following criteria:
(1) The producer shipped the milk to a processor during the months
of June or July 1986.
(2) The producer was not paid, or received only partial payment,
for the milk shipped.
(3) The producer has agreed to repay the refunded fees to the
affected programs if, at a subsequent date, the producer is paid for
the milk.
(b) The producer shall receive a full refund of the fees paid on
milk shipped for which no payment was received. If partial payment
was received the producer shall receive a refund of the fees paid on
milk for which payment was not received.
(c) In lieu of payment to the producer, the refund shall be paid
to an entity which markets milk or otherwise acts on behalf of a
producer who would otherwise qualify for the refund under subdivision
(a) if that entity demonstrates to the satisfaction of the director
that it paid the fees for the producer.
(d) If a producer, or an entity referred to in subdivision (c),
subsequently receives full or partial payment for milk for which fees
have been refunded, the producer or entity, as the case may be,
shall repay the fees in an amount proportionate to the portion of
milk for which payment has been received.
(e) 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 Milk Promotion Program.
(f) The director shall adopt procedures for refunding fees in
accordance with this section. Those procedures shall not be subject
to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code.
64309. (a) Any money that is collected by the director pursuant to
this chapter shall be deposited in a bank or other depository which
is approved by the Director of Finance. Funds which are so collected
shall be deposited and disbursed in conformity with appropriate
regulations prescribed by the director 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 director shall be audited at least
once every two years 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.
A copy of the audit shall be delivered within 30 days after the
completion thereof to the Governor, the director, and the Controller.
64310. Any money which is collected by the director pursuant to
this chapter is hereby appropriated to the department to carry out
the duties which are imposed upon the director and the council
pursuant to this chapter. The appropriation which is made in this
section is exempt from the operation of Section 16304 of the
Government Code.
The money which is collected by the director pursuant to this
chapter shall be disbursed by the director only for the necessary
expenses incurred by the council and the director to carry out the
purposes of this chapter, including the payment of refunds which are
authorized pursuant to this chapter. The director 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.
64311. Any money which is deposited pursuant to Section 64309,
which the director 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 director to be available for investment pursuant to
Section 58939.
64312. Any increment which is received from investment,
reinvestment, or deposit of money pursuant to Section 64311 shall be
deposited to the credit of the council. The State 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 director for the costs and the director shall pay the costs from
moneys collected pursuant to this chapter.
64313. This article shall become operative on January 1, 1983.