CA AB2730

Authorizes class 4a and class 4b market milk to be marketed under alternative milk marketing agreements (negotiated contracts between handlers and producers) instead of regulated minimum prices, effective after the Secretary of Food and Agriculture establishes indexed federal price formulas by July 1, 2015.

Requires class 4a and 4b prices to be phased in starting July 1, 2015 as Federal Order Class IV minus $0.35 per hundredweight and Federal Order Class III minus $1.00 per hundredweight, respectively, with reductions to $0.50 per hundredweight starting July 1, 2016.

Mandates handlers phase in alternative milk marketing agreements for class 4a and 4b purchases at 50% beginning July 1, 2015, increasing to 75% by January 1, 2016, and reaching 100% by July 1, 2016.

Requires producers to file alternative milk marketing agreements with the Secretary within five days and exempts agreement details from California Public Records Act, while handlers must report monthly on all active and amended agreements.

Establishes a referendum process allowing producers with 25% of state milk production to petition for repeal after January 1, 2020, requiring 51% producer participation and approval to restore previous pricing regulations.