BILL NUMBER: AB 1854	CHAPTERED  07/12/02

	CHAPTER  157
	FILED WITH SECRETARY OF STATE  JULY 12, 2002
	APPROVED BY GOVERNOR  JULY 11, 2002
	PASSED THE SENATE  JUNE 28, 2002
	PASSED THE ASSEMBLY  MAY 13, 2002
	AMENDED IN ASSEMBLY  MAY 9, 2002

INTRODUCED BY   Assembly Member Ashburn
   (Coauthor:  Senator Chesbro)

                        JANUARY 29, 2002

   An act to amend and repeal Section 58889 of the Food and
Agricultural Code, relating to milk.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1854, Ashburn.  Milk marketing orders.
   Existing law provides that the Secretary of the Department of Food
and Agriculture may issue marketing orders which contain provisions
for the establishment of plans for advertising any commodity grown in
the state.  Existing law also provides that the advertising and
sales promotion plans for fluid milk may contain provisions to
allocate funds for promotion of cheese and butter products.  Existing
law also requires the Department of Food and Agriculture to report
to the Governor and the Legislature regarding the effectiveness of
the fluid milk promotion plans.
   This bill would provide that funds may be allocated for the
promotion of ice cream products.  This bill would also remove
provisions requiring the department to report the effectiveness of
the promotion plans to the Governor and Legislature.
   Existing law provides that the provisions relating specifically to
milk products would remain in effect until January 1, 2003.
   This bill would remove the repeal date of these provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 58889 of the Food and Agricultural Code, as
amended by Section 1 of Chapter 912 of the Statutes of 1998, is
amended to read:
   58889.  (a) A marketing order may contain provisions for the
establishment of plans for advertising and sales promotion to
maintain present markets or to create new or larger markets for any
commodity that is grown in this state, or for the prevention,
modification, or removal of trade barriers that obstruct the free
flow of any commodity to market.  The secretary may prepare, issue,
administer, and enforce plans for promoting the sale of any
commodity.
   (b) Any plan shall be directed toward increasing the sale of the
commodity without reference to any private brand or trade name that
is used by any handler with respect to the commodity regulated by the
marketing order, except the use of wine if other than private brands
or private trade names are unavailable, and except that marketing
orders that provide for the advertising and sales promotion of
raisins, prunes, and walnuts may allow those plans to credit the pro
rata assessment obligations of a handler with all or any portion of
that handler's direct expenditures for the marketing promotion that
may include private brand or trade name advertising performance
allowances, sales promotions, couponing, and in-store promotion
programs and materials.
   (c) (1) Notwithstanding any provision of this section, any
marketing order for fluid milk may contain in its advertising and
sales promotion plan provisions to  allocate funds for promotions of
cheese, ice cream, or butter products made with California milk,
including promotions in which brand or trade names are used, but only
if the use is incidental to the promotion of the California milk
product and not in direct promotion of the brand or trade name, and
if the allocation of funds is made available on a nondiscriminatory
basis to all retailers and manufacturers of butter, ice cream, or
cheese utilizing milk produced in California.  Permissible private
brand or trade name marketing promotions may include advertising,
performance allowances, sales promotions, couponing subject to
Section 61375 and in-store promotion programs and materials, and
other marketing communication tools.
   (2) For purposes of this subdivision, "butter" means the product
made by gathering the fat of fresh or ripened milk or cream into a
mass, which also contains a small portion of other milk constituents.

   (3) This subdivision shall not become operative unless approved as
set forth in subdivision (c) of Section 58993.
   (d) No advertising or sales promotion program shall be issued by
the secretary that makes use of false or unwarranted claims in behalf
of any product, or disparages the quality, value, sale, or use of
any other commodity.
  SEC. 2.  Section 58889 of the Food and Agricultural Code, as added
by Section 2 of Chapter 912 of the Statutes of 1998, is repealed.