SF 77 (LSB 1448XS (2) 85)

SENATE FILE 77

BY  SORENSON

A BILL FOR

An Act allowing certain milk and products using milk to be transferred directly by operators of dairy farms, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 159.6, subsection 7, Code 2013, is amended to read as follows:
   7.  Regulation and inspection of foods, drugs, and other articles, as provided in Title V, subtitle 4, but chapter 205 of that subtitle shall be enforced as provided in that chapter.

Except as expressly authorized in subtitle 4, the department shall not regulate any of the following:
   a.  Producing, processing, labeling, or marketing of milk, if the milk is produced by a person operating a dairy farm in compliance with section 192.145.
   b.  Manufacturing, labeling, or marketing of a milk product or dairy product, if the milk product or dairy product is manufactured by a person operating a dairy farm in compliance with section 192.145.
    Sec. 2.  Section 191.2, subsection 5, unnumbered paragraph 1, Code 2013, is amended to read as follows:
   All
 
Except as provided in subsection 5A, bottles, containers, and packages enclosing milk or milk products shall be conspicuously labeled or marked with
 
the following:
    Sec. 3.  Section 191.2, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  A person who operates a dairy farm as provided in chapter 192 and who sells milk or a milk product to an individual in compliance with section 192.145 is not required to label or mark a container which contains the milk or milk product.
    Sec. 4.  NEW SECTION.  191.9A  Exception for on-farm sale of dairy products.
   A person who operates a dairy farm as provided in chapter 192 and who sells a dairy product to an individual in compliance with section 192.145 is not required to label or mark a container which contains the dairy product.
    Sec. 5.  Section 192.103, Code 2013, is amended to read as follows:
   192.103  Sale of grade “A” milk to final consumer —— impoundment of adulterated or misbranded milk.
   1.  Only grade “A” pasteurized milk and milk products shall be sold to the final consumer, or to restaurants, soda fountains, grocery stores, or similar establishments;, except in
 
as follows:
   a.  In
 
an emergency, the sale of pasteurized milk and milk products which have not been graded, or the grade of which is unknown, may be authorized by the secretary, in which case, such products shall be labeled “ungraded”.
   b.  A person who operates a dairy farm may sell milk or a milk product to an individual in compliance with section 192.145.
   2.  No person shall within the state produce, provide, sell, offer, or expose for sale, or have in possession with intent to sell, any milk or milk product which is adulterated or misbranded; except, in an emergency, the sale of pasteurized milk and milk products which have not been graded, or the grade of which is unknown, may be authorized by the secretary, in which case such products shall be labeled “ungraded”.
   3.  Any adulterated or misbranded milk or milk product may be impounded by the secretary or authorized municipal corporation and disposed of in accordance with applicable laws or regulations.
    Sec. 6.  NEW SECTION.  192.144  Definitions.
   As used in this subchapter, unless the context otherwise requires:
   1.  “Dairy product” means a product, other than a milk product, in which milk is the principal ingredient at any temperature and in either a manufactured or unmanufactured state. To the extent that it is not classified as a milk product, a dairy product includes but is not limited to butter, cheese, cream, cottage cheese, ricotta cheese, kefir, or ice cream.
   2.  “Manufacture” means to convert or condition personal property by changing the form, composition, quality, or character of a product, and includes activities associated with a creamery or cheese factory.
    Sec. 7.  NEW SECTION.  192.145  On-farm production, processing, manufacturing, and marketing.
   1.  A person who operates a dairy farm may do any of the following:
   a.  Produce milk at the dairy farm or process the milk at the dairy farm, if the person does not sell the milk. Nothing in this paragraph prevents the person from disposing of the milk without receiving compensation.
   b.  Produce milk at the dairy farm or process the milk at the dairy farm, if the person sells the milk to an individual, regardless of whether the milk is unpasteurized or ungraded. The milk must be sold to the individual on a retail basis and not for resale. The person may deliver, or cause to be delivered, the milk to a location specified by the individual. An individual who receives the milk shall not resell it.
   2.  A person who operates a dairy farm may manufacture a milk product or dairy product at the dairy farm by using milk produced at the dairy farm, if any of the following apply:
   a.  The person does not sell the milk product or dairy product. Nothing in this paragraph prevents the person from disposing of the milk product or dairy product without receiving compensation.
   b.  The person sells the milk product or dairy product to an individual, regardless of whether the milk product or dairy product is unpasteurized or ungraded. The milk product or dairy product must be sold to the individual on a retail basis and not for resale. The person may deliver, or cause to be delivered, the milk product or dairy product to a location specified by the individual. An individual who receives the milk product or dairy product shall not resell it.
   3.  A person who operates a dairy farm shall not be subject to regulation by the department for acting in compliance with this section. Such regulation includes but is not limited to labeling requirements under chapter 19l or licensing, permitting, or inspection requirements under this chapter or chapter 194.
    Sec. 8.  NEW SECTION.  194.22  On-farm production, processing, manufacturing, and marketing —— exception.
   This chapter does not apply to any of the following:
   1.  Producing, processing, labeling, or marketing of milk, if the milk is produced by a person operating a dairy farm in compliance with section 192.145.
   2.  Manufacturing, labeling, or marketing of a milk product or dairy product, if the milk product or dairy product is manufactured by a person operating a dairy farm in compliance with section 192.145.
    Sec. 9.  CODE EDITOR DIRECTIVE.  The Code editor is directed to divide chapter 192 into subchapters.
EXPLANATION
   BACKGROUND. This bill amends provisions affecting persons who operate dairy farms, including provisions for the processing of milk and the manufacture of milk products, and dairy products on such farms. The provisions are administered and enforced by the department of agriculture and land stewardship.
   Generally, statutory provisions and departmental rules regulating milk are based on model legislation referred to as the “Grade ‘A’ Pasteurized Milk Ordinance” (Code section 192.101A). The “Grade ‘A’ Pasteurized Milk Ordinance” defines a milk product as including cream, sour cream, dry milk, concentrated milk, eggnog, buttermilk, and yogurt. All food offered or exposed for sale must be labeled (Code section 191.1). This includes labeling the milk or milk product as “raw” (Code section 191.2(5)(e)). All milk must be sold on the basis of grade (Code section 194.10) and only grade “A” pasteurized milk and milk products can be sold to the final consumer (Code section 192.103). Grade “B” milk may be sold for manufacturing purposes (21 IAC 68.2). All dairy farms selling grade “A” or grade “B” milk must be issued a permit by the department of agriculture and land stewardship (21 IAC 68.2).
   The bill provides that these regulatory provisions do not apply to a person who operates a dairy farm. The person may produce milk and dispose of it or sell it to an individual on a retail basis. The operator may also deliver the milk to a location specified by the individual. The bill also provides that the regulatory provisions do not apply to the operator of a dairy farm who manufactures a milk product or dairy product, who may dispose of the product or sell it in the same manner as milk. A milk product is defined by the “Grade ‘A’ Pasteurized Milk Ordinance” and includes cream or yogurt. A dairy product includes a product other than a milk product whose principal ingredient is milk (e.g., ice cream).
   A person who violates the bill’s provisions is guilty of a simple misdemeanor (Code section 189.21). A simple misdemeanor is punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625 or by both.