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SB-419 Dairy products.(1999-2000)

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SB419:v90#DOCUMENT

Senate Bill No. 419
CHAPTER 682

An act to add and repeal Article 11 (commencing with Section 61581) to Chapter 1 of Part 3 of Division 21 of the Food and Agricultural Code, relating to agriculture.

[ Filed with Secretary of State  October 10, 1999. Approved by Governor  October 06, 1999. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 419, Speier. Dairy products.
Existing law sets forth provisions governing the marketing of milk and milk products.
This bill, until January 1, 2002, would require the Division of Marketing Services within the Department of Food and Agriculture (1) to conduct a Consumer Milk Price Survey, and a public information program for the purpose of reporting the retail price of milk, as specified, and (2) to report to the Legislature on or before June 30, 2001, concerning the effect of these provisions on retail milk prices and on consumer awareness of retail milk prices. The bill would require the division to design a notice promoting the use of the Consumer Milk Price Survey Program’s web site and toll-free telephone number. The bill would require grocers to post that notice, as specified, and would prohibit the imposition of sanctions for the failure to post. The bill also would require the department on or before March 30, 2001, to report to the Legislature on the operation of the program, including comments on the program from consumers and those associated with the production and the sale of milk.

The people of the State of California do enact as follows:


SECTION 1.

 Article 11 (commencing with Section 61581) is added to Chapter 1 of Part 3 of Division 21 of the Food and Agricultural Code, to read:
Article  11. Consumer Milk Pricing Survey

61581.
 (a) There is established within the department, the Consumer Milk Price Survey (CMPS), a public information program.
(b) For purposes of this article, the Division of Marketing Services, within the department, shall make available on the department’s web site and by means of a toll-free telephone number, the price of milk, as follows:
(1) There shall be a reporting of the retail price of one gallon of each brand sold by the grocer of the following milk standards of identity: whole milk; reduced fat (2 percent); lowfat (1 percent); and nonfat (skim). If a grocer sells milk in half gallons and not gallons, the division shall clarify in its report that the price listed is that of a half gallon.
(2) The report specified in paragraph (1) shall include the retail prices of each brand of milk sold at the following locations:
(A) Major grocery stores operated by a grocer operating 10 or more grocery stores having at least one location with more than 1,500 square feet of floor space.
(B) Medium-sized grocery stores operated by a grocer operating less than 10 grocery stores or operating 10 or more grocery stores, but having no location with more than 1,500 square feet of floor space.
(C) Small grocery stores with less than 1,500 square feet of floor space.
(D) Membership wholesale-retail establishments that sell milk to consumers who pay periodic membership fees.
(c) At least five store locations in each category and each region listed in subdivision (d) shall be selected monthly for a scientifically valid, random sample to provide data for the report. The report shall list the store name, an adequate description of the store’s location, all brands of milk sold in half-gallon and gallon increments, milk standards of identity offered for sale, the price, and the date of the price.
(d) To determine the price of milk, the division shall conduct market surveys of the following regions:
(1) Rural northern California:
Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, and Yuba Counties.
(2) The greater San Francisco Bay area:
Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma Counties.
(3) Central California:
Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Mono, Monterey, Sacramento, San Benito, San Joaquin, San Luis Obispo, Santa Barbara, Santa Cruz, Stanislaus, Tulare, Tuolumne, and Yolo Counties.
(4) Los Angeles and vicinity:
Los Angeles, Orange, and Ventura Counties.
(5) Other southern California markets:
Imperial, Riverside, San Bernardino, and San Diego Counties.
(e) The survey shall be completed monthly over a five-day period. The results of each survey shall not be disclosed prior to its completion. Employees of the division shall identify themselves when asking a store for price information. Each survey shall be conducted so that the information is posted by the division not more than five business days after completion.

61582.
 The division shall make web site posting available to grocers who were not included in the survey. If any grocer expresses a desire to have its milk prices posted on the web site, that grocer shall provide the store name, an adequate description of the store’s location, brands of milk sold, milk standards of identity offered for sale in one-gallon increments, the price, and the period of time when the price applies. The division shall post this information within five working days of receiving the information. This posting by the division shall include a disclaimer from the division that the prices have not been verified and that consumers may report discrepancies to the division.

61583.
 (a) The division shall design a notice promoting the use of the Consumer Milk Price Survey Program’s web site and the toll-free telephone number. Grocers shall clearly and conspicuously post that notice or its contents in proximity to the dairy case at locations wherever consumers buy milk in half-gallon increments or greater.
(b) If the division learns of a grocer that is not posting the notice required by subdivision (a), the division shall alert the grocer of this deficiency and ask the grocer to post the notice.
(c) Notwithstanding any other provision of law, including, but not limited to, Section 9 and Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code, no sanctions shall be imposed for failure to post in accordance with this section.

61584.
 The division shall develop a means for consumers to provide the division with comments on milk prices by way of its web page, toll-free telephone number system, and other means.

61585.
 This article does not replace the requirement for periodic announcements of changes in the dairy prices of milk as produced by the department.

61586.
 For purposes of this article, “division” means the Division of Marketing Services within the department.

61587.
 (a) This article shall remain in effect only until January 1, 2002, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2002, deletes or extends that date.
(b) Notwithstanding Section 7550.5 of the Government Code, the division shall prepare and submit a report to the Legislature on or before June 30, 2001, concerning the effect of this article on retail milk prices and on consumer awareness of retail milk prices.

SEC. 2.

 Notwithstanding Section 7550.5 of the Government Code, on or before March 30, 2001, the Department of Food and Agriculture shall report to the Legislature on the results of the Consumer Milk Pricing Survey, (Article 11 (commencing with Section 61581), Chapter 1 of Part 3 of Division 21 of the Food and Agricultural Code) as added by Section 1 of this act, including comments on the survey from consumers and those associated with the production and sale of milk.