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Senate File 310 - IntroducedA Bill ForAn Act 1allowing certain milk and products using milk to be
2transferred directly by operators of dairy farms, and making
3penalties applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 159.6, subsection 7, Code 2017, is
2amended to read as follows:
37. Regulation and inspection of foods, drugs, and other
4articles, as provided in Title V, subtitle 4, but chapter 205
5of that subtitle shall be enforced as provided in that chapter.
6Except as expressly authorized in subtitle 4, the department
7shall not regulate any of the following:
8a. The production, processing, labeling, or marketing of
9milk, if the milk is produced by a person operating a dairy
10farm in compliance with section 192.145.
11b. The manufacturing, labeling, or marketing of a milk
12product or dairy product, if the milk product or dairy
13product is manufactured by a person operating a dairy farm in
14compliance with section 192.145.
15 Sec. 2. Section 191.2, subsection 5, unnumbered paragraph
161, Code 2017, is amended to read as follows:
17All Except as provided in subsection 5A, bottles,
18containers, and packages enclosing milk or milk products shall
19be conspicuously labeled or marked with the following:
20 Sec. 3. Section 191.2, Code 2017, is amended by adding the
21following new subsection:
22 NEW SUBSECTION. 5A. A person who operates a dairy farm as
23provided in chapter 192 and who sells milk or a milk product
24to an individual in compliance with section 192.145 is not
25required to label or mark a container which contains the milk
26or milk product.
27 Sec. 4. NEW SECTION. 191.9A Exception for on-farm sale of
28dairy products.
29A person who operates a dairy farm as provided in chapter 192
30and who sells a dairy product to an individual in compliance
31with section 192.145 is not required to label or mark a
32container which contains the dairy product.
33 Sec. 5. Section 192.103, Code 2017, is amended to read as
34follows:
35192.103 Sale of grade “A” milk to final consumer —
-1-1impoundment of adulterated or misbranded milk.
21. Only grade “A” pasteurized milk and milk products
3shall be sold to the final consumer, or to restaurants, soda
4fountains, grocery stores, or similar establishments;, except
5in as follows:
6a. Inan emergency, the sale of pasteurized milk and milk
7products which have not been graded, or the grade of which is
8unknown, may be authorized by the secretary, in which case,
9such products shall be labeled “ungraded”.
10b. A person who operates a dairy farm may sell milk or
11a milk product to an individual in compliance with section
12192.145.
132. No person shall within the state produce, provide, sell,
14offer, or expose for sale, or have in possession with intent
15to sell, any milk or milk product which is adulterated or
16misbranded; except, in an emergency, the sale of pasteurized
17milk and milk products which have not been graded, or the grade
18of which is unknown, may be authorized by the secretary, in
19which case such products shall be labeled “ungraded”.
203. Any adulterated or misbranded milk or milk product
21may be impounded by the secretary or authorized municipal
22corporation and disposed of in accordance with applicable laws
23or regulations.
24 Sec. 6. NEW SECTION. 192.144 Definitions.
25As used in this chapter, unless the context otherwise
26requires:
271. “Dairy product” means a product, other than a milk
28product, in which milk is the principal ingredient at any
29temperature and in either a manufactured or unmanufactured
30state. To the extent that it is not classified as a milk
31product, a dairy product includes but is not limited to butter,
32cheese, cream, cottage cheese, ricotta cheese, kefir, or ice
33cream.
342. “Manufacture” means to convert or condition personal
35property by changing the form, composition, quality, or
-2-1character of a product, and includes activities associated with
2a creamery or cheese factory.
3 Sec. 7. NEW SECTION. 192.145 On-farm production,
4processing, manufacturing, and marketing.
51. A person who operates a dairy farm may do any of the
6following:
7a. Produce milk at the dairy farm or process the milk at the
8dairy farm, if the person does not sell the milk. Nothing in
9this paragraph prevents the person from disposing of the milk
10without receiving compensation.
11b. Produce milk at the dairy farm or process the milk at
12the dairy farm, if the person sells the milk to an individual,
13regardless of whether the milk is unpasteurized or ungraded.
14The milk must be sold to the individual on a retail basis and
15not for resale. The person may deliver the milk or cause the
16milk to be delivered to a location specified by the individual.
17An individual who receives the milk shall not resell it.
182. A person who operates a dairy farm may manufacture a
19milk product or dairy product at the dairy farm by using milk
20produced at the dairy farm, if any of the following apply:
21a. The person does not sell the milk product or dairy
22product. Nothing in this paragraph prevents the person
23from disposing of the milk product or dairy product without
24receiving compensation.
25b. The person sells the milk product or dairy product to
26an individual, regardless of whether the milk product or dairy
27product is unpasteurized or ungraded. The milk product or
28dairy product must be sold to the individual on a retail basis
29and not for resale. The person may deliver the product or
30cause the product to be delivered to a location specified by
31the individual. An individual who receives the milk product or
32dairy product shall not resell it.
333. A person who operates a dairy farm shall not be otherwise
34subject to regulation by the department for actions taken in
35compliance with this section. Such regulation includes but
-3-1is not limited to labeling requirements under chapter 19l or
2licensing, permitting, or inspection requirements under this
3chapter or chapter 194.
4 Sec. 8. NEW SECTION. 194.22 On-farm production, processing,
5manufacturing, and marketing — exception.
6This chapter does not apply to any of the following:
71. The production, processing, labeling, or marketing of
8milk, if the milk is produced by a person operating a dairy
9farm in compliance with section 192.145.
102. The manufacturing, labeling, or marketing of a milk
11product or dairy product, if the milk product or dairy
12product is manufactured by a person operating a dairy farm in
13compliance with section 192.145.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
17 BILL’S PROVISIONS. This bill provides that a person who
18operates a dairy farm (operator) may produce and dispose of
19the milk produced on the dairy farm, process such milk, or
20manufacture a milk product or dairy product (product) from such
21milk without state regulation under certain circumstances.
22Generally, a “milk product” includes items such as cream, sour
23cream, eggnog, or buttermilk for which temperature is an issue,
24but may not include other dairy items such as butter or cheese.
25The bill defines a “dairy product” as a manufactured item other
26than a milk product in which milk is the principal ingredient.
27The operator may sell the milk or product, regardless of
28whether the milk or product is unpasteurized or ungraded, so
29long as it is sold to an individual on a retail basis and not
30for resale. The operator may also deliver the milk or product
31to a location specified by the individual. A person purchasing
32the milk or product is prohibited from reselling the milk or
33product. The operator is also not subject to state regulations
34governing the production, processing, labeling, or marketing
35of milk or the manufacturing, labeling, or marketing of a milk
-4-1product to the extent that the operator is acting in compliance
2with the bill’s provisions.
3 BACKGROUND. Dairy production and the manufacture of milk
4and dairy products are governed under federal and state law
5including by the United States food and drug administration
6(FDA) under 21 C.F.R. pt.1240 and the department of
7agriculture and land stewardship (DALS) under Code title V,
8subtitle 4. Specifically, DALS regulates and enforces a
9number of statutory provisions governing the production of
10products, including the labeling of milk and milk products
11(Code chapter 191), the production and marketing of milk and
12products manufactured from milk (Code chapter 192), and the
13grading of milk (Code chapter 194). This includes a number of
14departmental rules (21 IAC, chs.68-71). DALS also regulates
15standards for dairy products (Code section 190.2 and 21 IAC ch.
1671). DALS has adopted by reference the “Grade ‘A’ Pasteurized
17Milk Ordinance”, a body of comprehensive regulations published
18by the national conference on interstate milk shipments and the
19FDA (Code section 192.102). Under state law, all milk must
20be sold on the basis of grade (Code section 194.10) and only
21grade “A” pasteurized milk and milk products can be sold to the
22final consumer (Code section 192.103). Grade “B” milk may be
23sold for manufacturing purposes (21 IAC 68.2). All dairy farms
24selling grade “A” or grade “B” milk must be issued a permit (21
25IAC 68.2) and are subject to inspection (21 IAC 68.12).
26 PENALTY. A person who violates the bill’s provisions is
27guilty of a simple misdemeanor (Code section 189.21). A simple
28misdemeanor is punishable by confinement for no more than 30
29days or a fine of at least $65 but not more than $625 or by
30both.
-5-da/nh
2transferred directly by operators of dairy farms, and making
3penalties applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 159.6, subsection 7, Code 2017, is
2amended to read as follows:
37. Regulation and inspection of foods, drugs, and other
4articles, as provided in Title V, subtitle 4, but chapter 205
5of that subtitle shall be enforced as provided in that chapter.
6Except as expressly authorized in subtitle 4, the department
7shall not regulate any of the following:
8a. The production, processing, labeling, or marketing of
9milk, if the milk is produced by a person operating a dairy
10farm in compliance with section 192.145.
11b. The manufacturing, labeling, or marketing of a milk
12product or dairy product, if the milk product or dairy
13product is manufactured by a person operating a dairy farm in
14compliance with section 192.145.
15 Sec. 2. Section 191.2, subsection 5, unnumbered paragraph
161, Code 2017, is amended to read as follows:
17All Except as provided in subsection 5A, bottles,
18containers, and packages enclosing milk or milk products shall
19be conspicuously labeled or marked with the following:
20 Sec. 3. Section 191.2, Code 2017, is amended by adding the
21following new subsection:
22 NEW SUBSECTION. 5A. A person who operates a dairy farm as
23provided in chapter 192 and who sells milk or a milk product
24to an individual in compliance with section 192.145 is not
25required to label or mark a container which contains the milk
26or milk product.
27 Sec. 4. NEW SECTION. 191.9A Exception for on-farm sale of
28dairy products.
29A person who operates a dairy farm as provided in chapter 192
30and who sells a dairy product to an individual in compliance
31with section 192.145 is not required to label or mark a
32container which contains the dairy product.
33 Sec. 5. Section 192.103, Code 2017, is amended to read as
34follows:
35192.103 Sale of grade “A” milk to final consumer —
-1-1impoundment of adulterated or misbranded milk.
21. Only grade “A” pasteurized milk and milk products
3shall be sold to the final consumer, or to restaurants, soda
4fountains, grocery stores, or similar establishments;, except
5in as follows:
6a. Inan emergency, the sale of pasteurized milk and milk
7products which have not been graded, or the grade of which is
8unknown, may be authorized by the secretary, in which case,
9such products shall be labeled “ungraded”.
10b. A person who operates a dairy farm may sell milk or
11a milk product to an individual in compliance with section
12192.145.
132. No person shall within the state produce, provide, sell,
14offer, or expose for sale, or have in possession with intent
15to sell, any milk or milk product which is adulterated or
16misbranded; except, in an emergency, the sale of pasteurized
17milk and milk products which have not been graded, or the grade
18of which is unknown, may be authorized by the secretary, in
19which case such products shall be labeled “ungraded”.
203. Any adulterated or misbranded milk or milk product
21may be impounded by the secretary or authorized municipal
22corporation and disposed of in accordance with applicable laws
23or regulations.
24 Sec. 6. NEW SECTION. 192.144 Definitions.
25As used in this chapter, unless the context otherwise
26requires:
271. “Dairy product” means a product, other than a milk
28product, in which milk is the principal ingredient at any
29temperature and in either a manufactured or unmanufactured
30state. To the extent that it is not classified as a milk
31product, a dairy product includes but is not limited to butter,
32cheese, cream, cottage cheese, ricotta cheese, kefir, or ice
33cream.
342. “Manufacture” means to convert or condition personal
35property by changing the form, composition, quality, or
-2-1character of a product, and includes activities associated with
2a creamery or cheese factory.
3 Sec. 7. NEW SECTION. 192.145 On-farm production,
4processing, manufacturing, and marketing.
51. A person who operates a dairy farm may do any of the
6following:
7a. Produce milk at the dairy farm or process the milk at the
8dairy farm, if the person does not sell the milk. Nothing in
9this paragraph prevents the person from disposing of the milk
10without receiving compensation.
11b. Produce milk at the dairy farm or process the milk at
12the dairy farm, if the person sells the milk to an individual,
13regardless of whether the milk is unpasteurized or ungraded.
14The milk must be sold to the individual on a retail basis and
15not for resale. The person may deliver the milk or cause the
16milk to be delivered to a location specified by the individual.
17An individual who receives the milk shall not resell it.
182. A person who operates a dairy farm may manufacture a
19milk product or dairy product at the dairy farm by using milk
20produced at the dairy farm, if any of the following apply:
21a. The person does not sell the milk product or dairy
22product. Nothing in this paragraph prevents the person
23from disposing of the milk product or dairy product without
24receiving compensation.
25b. The person sells the milk product or dairy product to
26an individual, regardless of whether the milk product or dairy
27product is unpasteurized or ungraded. The milk product or
28dairy product must be sold to the individual on a retail basis
29and not for resale. The person may deliver the product or
30cause the product to be delivered to a location specified by
31the individual. An individual who receives the milk product or
32dairy product shall not resell it.
333. A person who operates a dairy farm shall not be otherwise
34subject to regulation by the department for actions taken in
35compliance with this section. Such regulation includes but
-3-1is not limited to labeling requirements under chapter 19l or
2licensing, permitting, or inspection requirements under this
3chapter or chapter 194.
4 Sec. 8. NEW SECTION. 194.22 On-farm production, processing,
5manufacturing, and marketing — exception.
6This chapter does not apply to any of the following:
71. The production, processing, labeling, or marketing of
8milk, if the milk is produced by a person operating a dairy
9farm in compliance with section 192.145.
102. The manufacturing, labeling, or marketing of a milk
11product or dairy product, if the milk product or dairy
12product is manufactured by a person operating a dairy farm in
13compliance with section 192.145.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
17 BILL’S PROVISIONS. This bill provides that a person who
18operates a dairy farm (operator) may produce and dispose of
19the milk produced on the dairy farm, process such milk, or
20manufacture a milk product or dairy product (product) from such
21milk without state regulation under certain circumstances.
22Generally, a “milk product” includes items such as cream, sour
23cream, eggnog, or buttermilk for which temperature is an issue,
24but may not include other dairy items such as butter or cheese.
25The bill defines a “dairy product” as a manufactured item other
26than a milk product in which milk is the principal ingredient.
27The operator may sell the milk or product, regardless of
28whether the milk or product is unpasteurized or ungraded, so
29long as it is sold to an individual on a retail basis and not
30for resale. The operator may also deliver the milk or product
31to a location specified by the individual. A person purchasing
32the milk or product is prohibited from reselling the milk or
33product. The operator is also not subject to state regulations
34governing the production, processing, labeling, or marketing
35of milk or the manufacturing, labeling, or marketing of a milk
-4-1product to the extent that the operator is acting in compliance
2with the bill’s provisions.
3 BACKGROUND. Dairy production and the manufacture of milk
4and dairy products are governed under federal and state law
5including by the United States food and drug administration
6(FDA) under 21 C.F.R. pt.1240 and the department of
7agriculture and land stewardship (DALS) under Code title V,
8subtitle 4. Specifically, DALS regulates and enforces a
9number of statutory provisions governing the production of
10products, including the labeling of milk and milk products
11(Code chapter 191), the production and marketing of milk and
12products manufactured from milk (Code chapter 192), and the
13grading of milk (Code chapter 194). This includes a number of
14departmental rules (21 IAC, chs.68-71). DALS also regulates
15standards for dairy products (Code section 190.2 and 21 IAC ch.
1671). DALS has adopted by reference the “Grade ‘A’ Pasteurized
17Milk Ordinance”, a body of comprehensive regulations published
18by the national conference on interstate milk shipments and the
19FDA (Code section 192.102). Under state law, all milk must
20be sold on the basis of grade (Code section 194.10) and only
21grade “A” pasteurized milk and milk products can be sold to the
22final consumer (Code section 192.103). Grade “B” milk may be
23sold for manufacturing purposes (21 IAC 68.2). All dairy farms
24selling grade “A” or grade “B” milk must be issued a permit (21
25IAC 68.2) and are subject to inspection (21 IAC 68.12).
26 PENALTY. A person who violates the bill’s provisions is
27guilty of a simple misdemeanor (Code section 189.21). A simple
28misdemeanor is punishable by confinement for no more than 30
29days or a fine of at least $65 but not more than $625 or by
30both.
-5-da/nh