S.F. 2306 Section 1. Section 159.6, subsection 7, Code 2014, is 1 amended to read as follows: 2 7. Regulation and inspection of foods, drugs, and other 3 articles, as provided in Title V, subtitle 4 , but chapter 205 4 of that subtitle shall be enforced as provided in that chapter. 5 Except as expressly authorized in subtitle 4, the department 6 shall not regulate the production, processing, labeling, or 7 marketing of a cheese produced using raw milk as an ingredient. 8 Sec. 2. Section 191.2, subsection 5, unnumbered paragraph 9 1, Code 2014, is amended to read as follows: 10 All Except as provided in subsection 5A, bottles, 11 containers, and packages enclosing milk or milk products shall 12 be conspicuously labeled or marked with: 13 Sec. 3. Section 191.2, Code 2014, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 5A. A person who operates a dairy farm as 16 provided in chapter 192 and who sells cheese produced using raw 17 milk as an ingredient in accordance with section 192.144 shall 18 label the package containing the cheese as required by the 19 department. The department shall require a label that notifies 20 consumers that the cheese is manufactured using raw milk. 21 However, the label shall neither promote nor discourage the 22 consumption of the cheese, and the label shall conform with any 23 applicable federal requirements, including 7 C.F.R. §58.439. 24 Sec. 4. NEW SECTION . 191.9A Exception for on-farm sale of 25 cheese produced using raw milk. 26 A person who operates a dairy farm as provided in chapter 27 192 and who sells cheese produced using raw milk as an 28 ingredient in accordance with section 192.144 shall label the 29 package containing the cheese as required by the department in 30 conformance with federal law, including 7 C.F.R. §58.439. 31 Sec. 5. Section 192.103, Code 2014, is amended to read as 32 follows: 33 192.103 Sale of grade “A” milk to final consumer —— 34 impoundment of adulterated or misbranded milk. 35 -1- LSB 5406XS (6) 85 da/sc 1/ 4

S.F. 2306 1. Only grade “A” pasteurized milk and milk products 1 shall be sold to the final consumer, or to restaurants, soda 2 fountains, grocery stores, or similar establishments ; , except 3 in as follows: 4 a. In an emergency, the sale of pasteurized milk and milk 5 products which have not been graded, or the grade of which is 6 unknown, may be authorized by the secretary, in which case, 7 such products shall be labeled “ungraded”. 8 b. A person who operates a dairy farm may sell cheese 9 produced using raw milk as an ingredient to an individual in 10 compliance with section 192.144. 11 2. No person shall within the state produce, provide, sell, 12 offer, or expose for sale, or have in possession with intent 13 to sell, any milk or milk product which is adulterated or 14 misbranded; except, in an emergency, the sale of pasteurized 15 milk and milk products which have not been graded, or the grade 16 of which is unknown, may be authorized by the secretary, in 17 which case such products shall be labeled “ungraded”. 18 3. Any adulterated or misbranded milk or milk product 19 may be impounded by the secretary or authorized municipal 20 corporation and disposed of in accordance with applicable laws 21 or regulations. 22 Sec. 6. NEW SECTION . 192.144 Exception for on-farm sale of 23 cheese produced using raw milk. 24 1. A person may manufacture cheese using raw milk that 25 has not been pasteurized in accordance with subsection 2, 26 notwithstanding any of the following: 27 a. Any other provision of this chapter, including rules 28 adopted by the department pursuant to section 192.102 or other 29 provisions of this chapter. 30 b. Any applicable federal requirement for producing, 31 holding, distributing, or selling milk or a milk product that 32 has not been pasteurized, including as provided in 21 C.F.R. 33 §1240.61. 34 2. A person may produce, store, distribute, and sell raw 35 -2- LSB 5406XS (6) 85 da/sc 2/ 4

S.F. 2306 milk for the manufacture of cheese, and the person may store, 1 distribute, or sell the cheese. The person may distribute or 2 sell the cheese on a retail or wholesale basis. However, the 3 person must do all of the following: 4 a. Operate a dairy farm regulated under this chapter. 5 b. Manufacture the cheese from raw milk originating from the 6 dairy farm operated by the person or a neighboring dairy farm 7 located within twenty-five miles from the person’s dairy farm. 8 c. Manufacture a variety of cheese identified by standards 9 adopted by the United States food and drug administration 10 pursuant to 21 C.F.R. pt. 133. 11 d. Comply with requirements for curing the cheese variety as 12 specified in 21 C.F.R. pt. 133. 13 Sec. 7. NEW SECTION . 194.22 On-farm sale of cheese produced 14 using raw milk. 15 The department shall establish standards for the grading of 16 raw milk used in the manufacture of cheese pursuant to section 17 192.144. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 BILL’S PROVISIONS. This bill relates to the processing 22 of milk and the manufacture of milk products on dairy farms. 23 The bill provides that the department of agriculture and land 24 stewardship (DALS) cannot regulate the production, processing, 25 labeling, or marketing of cheese produced using raw milk as an 26 ingredient, except as provided in the bill. The bill provides 27 that a person may produce, store, distribute, and sell raw 28 milk for the manufacture of cheese. It also provides that the 29 person may store, distribute, or sell the cheese on a retail 30 or wholesale basis. However, certain conditions apply. The 31 person must operate a dairy farm, the person must manufacture 32 the cheese from raw milk originating from the person’s own 33 dairy farm or a neighboring dairy farm, and the type of cheese 34 manufactured must be regulated by the United States food and 35 -3- LSB 5406XS (6) 85 da/sc 3/ 4

S.F. 2306 drug administration (FDA). The cheese must also be labeled as 1 required by DALS. The label cannot promote or discourage a 2 purchase. DALS must establish standards for the grading of raw 3 milk used in the manufacture of cheese. 4 BACKGROUND —— STATE REGULATION. DALS regulates dairy farms, 5 including the production and grading of milk (Code section 6 159.6). Generally, statutory provisions and departmental rules 7 regulating milk are based on uniform regulations referred to 8 as the “Grade ‘A’ Pasteurized Milk Ordinance” (Code section 9 192.102). Under state law, food offered or exposed for sale 10 must be labeled (Code section 191.1). This includes the 11 labeling of milk or milk products (Code section 191.2). All 12 milk must be sold on the basis of grade (Code section 194.10) 13 and only grade “A” pasteurized milk and milk products can be 14 sold to the final consumer (Code section 192.103), although 15 grade “B” milk may be sold for manufacturing purposes (21 IAC 16 68.2). All dairy farms selling grade “A” or grade “B” milk 17 must be issued a permit (21 IAC 68.2). 18 BACKGROUND —— FEDERAL REGULATION. FDA requires mandatory 19 pasteurization for all milk and milk products in final package 20 form intended for human consumption (21 C.F.R. §1240.61). One 21 exception applies to a list of enumerated cheeses. A cheese 22 included on the list may be manufactured using raw milk using 23 aging as an alternative process. The cheese has to be aged for 24 at least 60 days at a temperature of not less than 35 degrees 25 Fahrenheit (21 C.F.R. pt. 133). The United States department 26 of agriculture has adopted a similar provision relating to 27 labeling (7 C.F.R. §58.439). 28 PENALTIES. A person who violates the bill’s provisions is 29 guilty of a simple misdemeanor (Code section 189.21). A simple 30 misdemeanor is punishable by confinement for no more than 30 31 days or a fine of at least $65 but not more than $625 or by 32 both. 33 -4- LSB 5406XS (6) 85 da/sc 4/ 4