The bill establishes new regulations concerning financial accounts used to manage payments for milk producers, specifically requiring milk processors to hold payments in trust until full payment is made to the producers. It defines "milk producer" to include cooperative associations that market milk on behalf of their members. The bill mandates that milk processors must establish escrow accounts for payments if requested by the milk producers, detailing the conditions for deposits and account management. It also clarifies that funds held in trust or escrow are the property of the milk producer and outlines the circumstances under which milk processors can be exempt from these requirements.

Additionally, the bill prohibits milk processors from purchasing raw milk unless they comply with federal milk marketing orders and any agreed-upon provisions. It holds processors liable for any unpaid raw milk, including the purchase price, interest, and attorney fees. The act does not apply to transactions between cooperative associations acting as marketing agents and their members. Overall, the legislation aims to enhance financial protections for milk producers and ensure timely payments for their products.