Bill > S1535

Introduced Session

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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Joe Pennacchio (R)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 02/16/2016)