House of Representatives
Office of Program Research
Rural Development, Agriculture, & Natural Resources Committee
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.
Brief Description: Extending the dairy milk assessment fee to June 30, 2025.
Sponsors: Representatives Shewmake, Chandler, Blake, Kretz, Springer and Dent; by request of Department of Agriculture.
Hearing Date: 2/1/19
Staff: Rebecca Lewis (786-7339).
A milk processing assessment is levied on all milk processed in the state, and is paid by the operator of the first milk processing plant that receives the milk for processing, including processing plants that produce their own milk for processing. The assessment may not exceed $0.0054 per hundredweight. Milk processing plants whose monthly assessment for receipt of milk totals less than $20 in any given month are exempt from the assessment for that month. Funds from the assessment are deposited into the Dairy Inspection Account in the Agricultural Local Fund.
Assessment funds are used solely to provide inspection services to the dairy industry in order to maintain compliance with the "Grade A" Interstate Pasteurized Milk Ordinance (PMO) published by the United States Public Health Service, United States Department of Health and Human Services, and the United States Food and Drug Administration. The PMO is the national standard for milk sanitation, and it requires milk processing plants to be inspected at least once every three months. Complying with the PMO allows milk to move without restriction in interstate commerce.
Summary of Bill:
The dairy milk assessment fee is extended from June 30, 2020, to June 30, 2025.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.