If future shipments to a handler are not eligible for coverage under this chapter in the event of a default, the secretary shall notify all producers who have a contract on file with the secretary, all nonprofit cooperative associations, and other interested parties. Future shipments shall not be eligible when any of the following events occur:
(a) The handler fails to maintain a valid license or bond as required under Chapter 1 (commencing with Section 61301) or Chapter 2 (commencing with Section 61801).
(b) The handler fails to pay producers as required under Section 1051.73 of the Federal Milk Marketing Order, or, in the case of nonpooled or Grade B milk, by the contract filed with the secretary pursuant to paragraph (1) of subdivision (a) of Section 62580.
(c) The handler fails to submit, when requested by the secretary, executed contracts that establish the relationship between affected parties.
(Amended by Stats. 2019, Ch. 304, Sec. 35. (AB 590) Effective January 1, 2020.)