SF 2309 (LSB 5946SV (1) 89)

SENATE FILE 2309

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3126)

A BILL FOR

An Act relating to milk and associated products, by providing for certain items relating to milk to be transferred directly by operators of dairy farms, providing for the labeling of unpasteurized and ungraded milk and products, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 159.6, subsection 6, Code 2022, is amended to read as follows:
   6.  Regulation and inspection of foods, drugs, and other articles, as provided in Title V, subtitle 4, but. However, 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.  The production, 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.  The 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, Code 2022, is amended to read as follows:
   5.  All bottles, containers, and packages Bottles, containers, and packages. Except as provided in subsection 5A, a container or package enclosing milk or a milk products product shall be conspicuously labeled or marked with all of the following:
   a.  The name of the contents as given in the definitions of this chapter and chapters 190 and 192.
   b.  The word “reconstituted” or “recombined” if the product is made by reconstitution or recombination.
   c.  The grade of the contents.
   d.  The word “pasteurized” if the contents are pasteurized and the identity of. The package or container shall identify the plant where the milk or milk product is pasteurized.
   e.  The word “raw” if the contents are raw and the name or other identity of the producer.
   f.  e.  The designation vitamin “D” and the number of U.S.P. units per quart in the case of vitamin “D” milk or milk products.
   g.  f.  The volume or proportion of water to be added for recombining in the case of concentrated milk or milk products.
   h.  g.  The words “nonfat milk solids added” and the percentage added if such solids have been added, except that this requirement shall not apply to reconstituted or recombined milk and milk products.
   i.  h.  The words “artificially sweetened” in the name if nonnutritive or artificial sweeteners or both are used.
   j.  i.  The common name of stabilizers, distillates, and ingredients, provided that:
   (1)  Only the identity of the milk producer shall be required on cans delivered to a milk plant as provided in chapter 192 which receives only grade “A” raw milk for pasteurization, and which immediately dumps, washes, and returns the cans to the milk producer.
   (2)  The identity of both milk producer and the grade shall be required on cans delivered to a milk plant as provided in chapter 192 which receives both grade “A” raw milk for pasteurization and ungraded raw milk and which immediately dumps, washes, and returns the cans to the milk producer.
   (3)  In the case of concentrated milk products, the specific name of the product shall be substituted for the generic term “concentrated milk products”, e.g., “homogenized concentrated milk”, “concentrated skim milk”, “concentrated chocolate milk”, “concentrated chocolate flavored low fat milk”.
   (4)  In the case of flavored milk or flavored reconstituted milk, the name of the principal flavor shall be substituted for the word “flavored”.
   (5)  In the case of cultured milk and milk products, the special type culture used may be substituted for the word “cultured”, e.g., “acidophilus buttermilk”, “Bulgarian buttermilk”, and “yogurt”.
    Sec. 3.  Section 191.2, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  Unpasteurized milk and milk products.  A container holding unpasteurized milk or a milk product containing unpasteurized milk shall be labeled as required in section 191.9A.
    Sec. 4.  NEW SECTION.  191.9A  Dairy farms —— sale of unpasteurized milk and milk products.
   1.  A person who operates a dairy farm as provided in chapter 192 and who sells unpasteurized milk, a milk product containing unpasteurized milk, or a dairy product containing unpasteurized milk to an individual in compliance with section 192.145 shall label the container holding the milk, milk product, or dairy product. The label shall be permanently affixed to the container. The words on the label shall be printed using upper case letters in at least twelve point boldface type. If the container includes a main informational or advertising panel, the label shall be part of the panel.
   2.  a.  For a container holding unpasteurized milk, the label shall state the following:
Notice to Consumers
This container holds raw milk not subject to state
inspection or other public health regulations that require
pasteurization and grading.

   b.  For a container holding a milk product or dairy product, the label shall state the following:
Notice to Consumers
This container holds a raw milk product or dairy product that
includes raw milk not subject to state inspection or other
public health regulations that require pasteurization and grading.
    Sec. 5.  Section 192.103, subsections 1 and 2, Code 2022, are amended to read as follows:
   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. However, in an except 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 A person shall not 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. However, 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”.
    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. This paragraph does not prevent 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 the milk or cause the milk to be delivered 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. This paragraph does not prevent 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 the product or cause the product to be delivered 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 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.  The production, processing, or marketing of milk, if the milk is produced by a person operating a dairy farm in compliance with section 192.145.
   2.  The manufacturing 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.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   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 (DALS).
   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). 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 DALS (21 IAC 68.2).
   BILL’S PROVISIONS. 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 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 originating from the dairy farm. 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). The bill provides for the labeling of unpasteurized and ungraded milk, or a product that includes such milk.
   APPLICABLE PENALTIES. 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 and a fine of at least $105 but not more than $855.