H.F. 2055 Section 1. Section 159.6, subsection 6, Code 2018, is 1 amended to read as follows: 2 6. Regulation and inspection of foods, drugs, and other 3 articles, as provided in Title V, subtitle 4 , but . However, 4 chapter 205 of that subtitle shall be enforced as provided in 5 that chapter. Except as expressly authorized in subtitle 4, 6 the department shall not regulate any of the following: 7 a. The production, processing, labeling, or marketing of 8 milk, if the milk is produced by a person operating a dairy 9 farm in compliance with section 192.145. 10 b. The manufacturing, labeling, or marketing of a milk 11 product or dairy product, if the milk product or dairy 12 product is manufactured by a person operating a dairy farm in 13 compliance with section 192.145. 14 Sec. 2. Section 191.2, subsection 5, Code 2018, is amended 15 to read as follows: 16 5. All bottles, containers, and packages Bottles, 17 containers, and packages. Except as provided in subsection 18 5A, a container or package enclosing milk or a milk products 19 product shall be conspicuously labeled or marked with all of 20 the following : 21 a. The name of the contents as given in the definitions of 22 this chapter and chapters 190 and 192 . 23 b. The word “reconstituted” or “recombined” if the product 24 is made by reconstitution or recombination. 25 c. The grade of the contents. 26 d. The word “pasteurized” if the contents are pasteurized 27 and the identity of . The package or container shall identify 28 the plant where the milk or milk product is pasteurized. 29 e. The word “raw” if the contents are raw and the name or 30 other identity of the producer. 31 f. e. The designation vitamin “D” and the number of 32 U.S.P. units per quart in the case of vitamin “D” milk or milk 33 products. 34 g. f. The volume or proportion of water to be added for 35 -1- LSB 5411YH (7) 87 da/rn 1/ 7

H.F. 2055 recombining in the case of concentrated milk or milk products. 1 h. g. The words “nonfat milk solids added” and the 2 percentage added if such solids have been added, except that 3 this requirement shall not apply to reconstituted or recombined 4 milk and milk products. 5 i. h. The words “artificially sweetened” in the name if 6 nonnutritive or artificial sweeteners or both are used. 7 j. i. The common name of stabilizers, distillates, and 8 ingredients, provided that: 9 (1) Only the identity of the milk producer shall be required 10 on cans delivered to a milk plant as provided in chapter 192 11 which receives only grade “A” raw milk for pasteurization, and 12 which immediately dumps, washes, and returns the cans to the 13 milk producer. 14 (2) The identity of both milk producer and the grade shall 15 be required on cans delivered to a milk plant as provided 16 in chapter 192 which receives both grade “A” raw milk for 17 pasteurization and ungraded raw milk and which immediately 18 dumps, washes, and returns the cans to the milk producer. 19 (3) In the case of concentrated milk products, the specific 20 name of the product shall be substituted for the generic term 21 “concentrated milk products”, e.g., “homogenized concentrated 22 milk”, “concentrated skim milk”, “concentrated chocolate milk”, 23 “concentrated chocolate flavored low fat milk”. 24 (4) In the case of flavored milk or flavored reconstituted 25 milk, the name of the principal flavor shall be substituted for 26 the word “flavored”. 27 (5) In the case of cultured milk and milk products, 28 the special type culture used may be substituted for the 29 word “cultured”, e.g., “acidophilus buttermilk”, “Bulgarian 30 buttermilk”, and “yogurt”. 31 Sec. 3. Section 191.2, Code 2018, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 5A. Unpasteurized milk and milk products A 34 container holding unpasteurized milk or a milk product 35 -2- LSB 5411YH (7) 87 da/rn 2/ 7

H.F. 2055 containing unpasteurized milk shall be labeled as required in 1 section 191.9A. 2 Sec. 4. NEW SECTION . 191.9A Dairy farms —— sale of 3 unpasteurized milk and milk products. 4 1. A person who operates a dairy farm as provided in chapter 5 192 and who sells unpasteurized milk, a milk product containing 6 unpasteurized milk, or a dairy product containing unpasteurized 7 milk to an individual in compliance with section 192.145 8 shall label the container holding the milk, milk product, or 9 dairy product. The label shall be permanently affixed to the 10 container. The words on the label shall be printed using upper 11 case letters in at least twelve point boldface type. If the 12 container includes a main informational or advertising panel, 13 the label shall be part of the panel. 14 2. a. For a container holding unpasteurized milk, the label 15 shall state the following: 16 Notice to Consumers 17 This container holds raw milk not subject to state 18 inspection or other public health regulations that require 19 pasteurization and grading. 20 b. For a container holding a milk product or dairy product, 21 the label shall state the following: 22 Notice to Consumers 23 This container holds a raw milk product or dairy product that 24 includes raw milk not subject to state inspection or other 25 public health regulations that require pasteurization and 26 grading. 27 Sec. 5. Section 192.103, Code 2018, is amended to read as 28 follows: 29 192.103 Sale of grade “A” milk to final consumer —— 30 impoundment of adulterated or misbranded milk. 31 1. Only grade “A” pasteurized milk and milk products 32 shall be sold to the final consumer, or to restaurants, soda 33 fountains, grocery stores, or similar establishments ; , except 34 in an as follows: 35 -3- LSB 5411YH (7) 87 da/rn 3/ 7

H.F. 2055 a. In an emergency, the sale of pasteurized milk and milk 1 products which have not been graded, or the grade of which is 2 unknown, may be authorized by the secretary, in which case, 3 such products shall be labeled “ungraded”. 4 b. A person who operates a dairy farm may sell milk or 5 a milk product to an individual in compliance with section 6 192.145. 7 2. No A person shall not within the state produce, provide, 8 sell, offer, or expose for sale, or have in possession with 9 intent to sell, any milk or milk product which is adulterated 10 or misbranded; except, in an emergency, the sale of pasteurized 11 milk and milk products which have not been graded, or the grade 12 of which is unknown, may be authorized by the secretary, in 13 which case such products shall be labeled “ungraded”. 14 3. Any adulterated or misbranded milk or milk product 15 may be impounded by the secretary or authorized municipal 16 corporation and disposed of in accordance with applicable laws 17 or regulations. 18 Sec. 6. NEW SECTION . 192.144 Definitions. 19 As used in this subchapter, unless the context otherwise 20 requires: 21 1. “Dairy product” means a product, other than a milk 22 product, in which milk is the principal ingredient at any 23 temperature and in either a manufactured or unmanufactured 24 state. To the extent that it is not classified as a milk 25 product, a dairy product includes but is not limited to butter, 26 cheese, cream, cottage cheese, ricotta cheese, kefir, or ice 27 cream. 28 2. “Manufacture” means to convert or condition personal 29 property by changing the form, composition, quality, or 30 character of a product, and includes activities associated with 31 a creamery or cheese factory. 32 Sec. 7. NEW SECTION . 192.145 On-farm production, 33 processing, manufacturing, and marketing. 34 1. A person who operates a dairy farm may do any of the 35 -4- LSB 5411YH (7) 87 da/rn 4/ 7

H.F. 2055 following: 1 a. Produce milk at the dairy farm or process the milk at the 2 dairy farm, if the person does not sell the milk. Nothing in 3 this paragraph prevents the person from disposing of the milk 4 without receiving compensation. 5 b. Produce milk at the dairy farm or process the milk at 6 the dairy farm, if the person sells the milk to an individual, 7 regardless of whether the milk is unpasteurized or ungraded. 8 The milk must be sold to the individual on a retail basis and 9 not for resale. The person may deliver the milk or cause the 10 milk to be delivered to a location specified by the individual. 11 An individual who receives the milk shall not resell it. 12 2. A person who operates a dairy farm may manufacture a 13 milk product or dairy product at the dairy farm by using milk 14 produced at the dairy farm, if any of the following apply: 15 a. The person does not sell the milk product or dairy 16 product. Nothing in this paragraph prevents the person 17 from disposing of the milk product or dairy product without 18 receiving compensation. 19 b. The person sells the milk product or dairy product to 20 an individual, regardless of whether the milk product or dairy 21 product is unpasteurized or ungraded. The milk product or 22 dairy product must be sold to the individual on a retail basis 23 and not for resale. The person may deliver the product or 24 cause the product to be delivered to a location specified by 25 the individual. An individual who receives the milk product or 26 dairy product shall not resell it. 27 3. A person who operates a dairy farm shall not be subject 28 to regulation by the department for acting in compliance with 29 this section. Such regulation includes but is not limited to 30 licensing, permitting, or inspection requirements under this 31 chapter or chapter 194. 32 Sec. 8. NEW SECTION . 194.22 On-farm production, processing, 33 manufacturing, and marketing —— exception. 34 This chapter does not apply to any of the following: 35 -5- LSB 5411YH (7) 87 da/rn 5/ 7

H.F. 2055 1. The production, processing, or marketing of milk, if 1 the milk is produced by a person operating a dairy farm in 2 compliance with section 192.145. 3 2. The manufacturing or marketing of a milk product or dairy 4 product, if the milk product or dairy product is manufactured 5 by a person operating a dairy farm in compliance with section 6 192.145. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 BACKGROUND. This bill amends provisions affecting persons 11 who operate dairy farms, including provisions for the 12 processing of milk and the manufacture of milk products, and 13 dairy products on such farms. The provisions are administered 14 and enforced by the department of agriculture and land 15 stewardship. 16 Generally, statutory provisions and departmental rules 17 regulating milk are based on model legislation referred to 18 as the “Grade ‘A’ Pasteurized Milk Ordinance” (Code section 19 192.101A). The “Grade ‘A’ Pasteurized Milk Ordinance” defines 20 a milk product as including cream, sour cream, dry milk, 21 concentrated milk, eggnog, buttermilk, and yogurt. All food 22 offered or exposed for sale must be labeled (Code section 23 191.1). All milk must be sold on the basis of grade (Code 24 section 194.10) and only grade “A” pasteurized milk and milk 25 products can be sold to the final consumer (Code section 26 192.103). Grade “B” milk may be sold for manufacturing 27 purposes (21 IAC 68.2). All dairy farms selling grade “A” or 28 grade “B” milk must be issued a permit by the department of 29 agriculture and land stewardship (21 IAC 68.2). 30 BILL’S PROVISIONS. The bill provides that these regulatory 31 provisions do not apply to a person who operates a dairy farm. 32 The person may produce milk and dispose of it or sell it to 33 an individual on a retail basis. The operator may deliver 34 the milk to a location specified by the individual. The bill 35 -6- LSB 5411YH (7) 87 da/rn 6/ 7

H.F. 2055 also provides that the regulatory provisions do not apply to 1 the operator of a dairy farm who manufactures a milk product 2 or dairy product, who may dispose of the product or sell it 3 in the same manner as milk originating from the dairy farm. 4 A milk product is defined by the “Grade ‘A’ Pasteurized Milk 5 Ordinance” and includes cream or yogurt. A dairy product 6 includes a product other than a milk product whose principal 7 ingredient is milk (e.g., ice cream). The bill provides for 8 the labeling of unpasteurized and ungraded milk, or a product 9 that includes such milk. 10 APPLICABLE PENALTIES. A person who violates the bill’s 11 provisions is guilty of a simple misdemeanor (Code section 12 189.21). A simple misdemeanor is punishable by confinement for 13 no more than 30 days or a fine of at least $65 but not more than 14 $625 or by both. 15 -7- LSB 5411YH (7) 87 da/rn 7/ 7