Bill Text: NJ S719 | 2010-2011 | Regular Session | Introduced


Bill Title: Authorizes use of retail coupons for purchase of milk by consumers.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Commerce Committee [S719 Detail]

Download: New_Jersey-2010-S719-Introduced.html

SENATE, No. 719

STATE OF NEW JERSEY

214th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

 


 

Sponsored by:

Senator  JOSEPH PENNACCHIO

District 26 (Morris and Passaic)

Senator  JOSEPH M. KYRILLOS, JR.

District 13 (Middlesex and Monmouth)

 

 

 

 

SYNOPSIS

     Authorizes use of retail coupons for purchase of milk by consumers.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act concerning the use of coupons for the purchase of milk and supplementing P.L.1941, c.274 (C.4:12A-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Notwithstanding any provision of law to the contrary, the director shall establish a program to allow for the use of discount coupons in promotional and marketing campaigns of milk for consumer use and benefit.  The use of coupons in promotional or marketing campaigns shall be subject to the approval of the director and shall not be predatory towards any New Jersey dairy farmer who directly markets and sells his own milk to the consumer.  The use of coupons may result in the sale of milk at a price that is below the minimum price fixed by the director to be charged the consumer if the coupon is issued by or on behalf of the particular store at which the coupon may be redeemed, provided any such coupon is brand neutral.

     The director shall adopt, pursuant to the Administrative Procedure Act, P.L. 1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to carry out the provisions of this section within 180 days after the effective date of P.L.    , c.   (C.      ) (pending before the Legislature as this bill).

     Nothing in this section shall be construed to affect the minimum price to be paid to producers, milk dealers, processors or subdealers as fixed by the director pursuant to P.L.1941, c.274 (C.4:12A-1 et seq.).

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill authorizes the use of retail coupons for the purchase of milk.

     Since the Great Depression, the federal government and approximately three quarters of the states have enacted some form of milk pricing regulation.  At that time, the demand for milk dropped precipitously and farmers found themselves in great economic distress.  Because milk is an important commodity, federal and state milk marketing orders were developed to stabilize the market and ensure that farmers and producers receive a reasonable return and are able to continue supplying milk for public consumption.  Many state regulations took marketing controls a step further and fixed wholesale and retail prices.  While many states retain the authority to control milk markets, this regulation has declined significantly over the last decade.

     The dairy industry remains a vital part of New Jersey agriculture. It is important to maintain a healthy industry to provide New Jersey citizens with fresh, wholesome milk.  It is also important to encourage retailers to make this important commodity available to consumers at reasonable prices.

     New Jersey is one of the few states that continues to regulate minimum retail prices for milk.  In connection with this regulation, New Jersey is among only 11 states that restrict the use of discount coupons in retail promotional and marketing campaigns.  Such regulation fails to protect dairy farmers in any significant way, and may contribute to high prices for consumers.  While it may be important to ensure minimum prices at the producer, dealer, processor and subdealer levels to maintain a stable market, retailers should be free to make a business decision regarding the promotion and marketing of their products to consumers.

     This bill does not change the price fixing authority of the Division of Marketing and Development within the Department of Agriculture.  However, the bill relaxes the restriction on the use of retail coupons.  Under the bill, retailers would be authorized to issue discount coupons for use in their stores, provided that the coupon is generic as to the brand of milk to be discounted.

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