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KS HB2254

Bill

Official Source

Status

Passed

4/10/2025

Primary Sponsor

Agriculture and Natural Resources

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Milk processors must hold all payments from milk sales in trust for the benefit of milk producers until the producer receives full payment of the purchase price
  • Milk producers may require processors to establish segregated, interest-bearing escrow accounts at FDIC-insured Kansas financial institutions to hold their payments
  • Escrow requirements are triggered only after a processor fails to make timely payment (within 3 days of the due date), and terminate once full payment is received
  • Processors cannot purchase raw milk unless payment follows federal milk marketing order provisions, uses cash/check/wire transfer, and complies with any additional agreed terms
  • Processors who fail to pay are liable for the purchase price, interest at the highest legal rate from the date of milk transfer, and reasonable attorney fees

Legislative Description

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

Last Action

House Approved by Governor on Wednesday, March 26, 2025

4/10/2025

Committee Referrals

Agriculture and Natural Resources2/26/2025
Agriculture and Natural Resources2/4/2025

Full Bill Text

No bill text available