Law strengthening action against defaulted milk handlers signed by Governor

Sept. 2, 2010 - -  Legislation backed by WUD and the Dairy Institute of California that provides the CDFA pursue all the avenues open to it administratively and judicially (decisions and judgments) prior to using Milk Producer Security Trust Fund dollars to pay monies owed by handlers who have defaulted, has been signed by Gov. Schwarzenegger. AB 1910, authored by the Assembly Agriculture Committee, provides that if, after doing that, the obligation has not been paid, the fund stands ready to pay those monies into the pool. The bill also ensures that CDFA immediately inform the dairy industry when a milk handler defaults on pool obligations.  Right now the timetable is up to CDFA as to when the industry is notified, creating unnecessary debt obligations and credit issues to pool participants. Additionally, the bill allows re-pasteurized milk—milk that has been processed more than once and currently is restricted from the market—to be sold under certain conditions. Supporters say the provisions would bring state law in line with federal rules, helping milk shippers avoid difficulties with interstate hauling, according to a committee analysis. Under the legislation, milk that is drained from processing equipment, collected from a de-foamer system or rinsed from containers or pipes and re-pasteurized, could be marketed if it remains at or below 45 degrees Fahrenheit. Re-pasteurized milk that left a processor in packaged form, is taken from damaged containers, or is improperly handled, cannot be sold.