HB 2254 — Requiring milk processors to hold payments in trust for milk producers until full payment is received, with funds in escrow considered held in trust.

AsAmended by House Committee Session of 2025 HOUSE BILLNo.BILL No.

2254 By Committee on Agriculture and Natural Resources Requested by Representative Rahjes 2-4 AN ACTA concerningCTconcerning agriculture;

65-771,65- 771, and amendments thereto.

(2) "Milk producer" includes any cooperative association that sells or markets milk on behalf of a person described in subparagraph (A) paragraph (1).

HBSec. 2254—Am.

by HC 2 Sec.

(3) (A) An escrow account required under this section shall be established for the benefit of the milk producer as a segregated, interest-interest-bearing bearing account with a financial institution located in this state, the deposits of which are insured by the federal deposit insurance corporation or the federal savings and loan insurance corporation.

(C) If the funds accumulated in a combined escrow account are insufficientHOUSE toBILL payNo. all the milk producers who have not received full payment and for whose benefit the account was established, the agent of the institution with whom the escrow account is established shall distribute the funds in proportion to the amount then due to each milk producer.

(4) On2254—page presentation2 ofinsufficient proofto ofpay identityall satisfactorythe tomilk anproducers agentwho ofhave thenot institutionreceived withfull whichpayment theand escrowfor whose benefit the account iswas established, the agent shallof promptlythe distributeinstitution anywith fundswhom accumulated for the benefitescrow ofaccount theis milkestablished producershall todistribute the milkfunds producerin or,proportion ifto requiredthe byamount anthen applicabledue federalto each milk HBproducer. 2254—Am.

(4) On presentation of proof of identity satisfactory to an agent of the institution with which the escrow account is established, the agent shall promptly distribute any funds accumulated for the benefit of the milk producer to the milk producer or, if required by HCan 3applicable federal milk marketing order, to the federal milk administration.

(d) A(d) Amilk milk processor is not required to establish an escrow account or maintain payments in trust under subsection (a) or (b) for a payment if:

(1) Full payment of the purchase price is not received, and the milk producer does not give written notice to the milk processor, by the end of th the 30 business day after the final date for payment of the purchase price in accordance with section 3, and amendments thereto;

Sec.HOUSE BILL No.

2254—page 3 Sec.

I hereby certify that the above B ILLoriginated in the H OUSE , and passed that body Speaker of the House.

Chief Clerk of the House.

Passed the S ENATE ______________________________________________________________________________ President of the Senate.

Secretary of the Senate.

A PPROVED __________________________________________________________________________________________________ Governor.