Bill > HB2254

This bill establishes a comprehensive legal framework to protect milk producers' financial interests when selling raw milk to milk processors. The legislation defines key terms such as "milk producer" (which now includes cooperative associations), "milk processor", and "timely payment" (defined as payment within three days of the due date). The bill requires milk processors to hold payments in trust for milk producers until full payment is received, with an option for milk producers to mandate the creation of a segregated, interest-bearing escrow account at a state financial institution. Milk processors must deposit funds into this account proportionally based on the quantity of milk purchased from each producer. The bill specifies that funds in trust or escrow are the property of the milk producer and provides conditions under which milk processors are exempt from these trust or escrow requirements, such as if the producer does not provide written notice within specified timeframes after a payment issue. Additionally, the bill prohibits milk processors from purchasing raw milk without complying with federal milk marketing orders and agreed provisions, and establishes that processors who fail to pay for raw milk are liable for the purchase price, interest, and reasonable attorney fees. The legislation does not apply to transactions between a cooperative association and its members, providing a targeted approach to protecting milk producers' financial interests.

Agriculture and Natural Resources

Agriculture and Natural Resources (H)

https://kslegislature.gov/li/b2025_26/measures/hb2254/