S.B. 90

1

ICE CREAM AND MILK DISPENSER
2 REQUIREMENTS
3 2000 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gene Davis
6 AN ACT RELATING TO AGRICULTURE; AMENDING THE UTAH DAIRY ACT TO
7 ALLOW ICE CREAM CABINETS S AND MILK COOLER S s TO BE LOANED OR SOLD TO A RETAILER IF CERTAIN
8 CONDITIONS ARE MET.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
10a S 4-3-8, as last amended by Chapter 130, Laws of Utah 1985 s
11 4-3-11, as last amended by Chapter 157, Laws of Utah 1990
12 Be it enacted by the Legislature of the state of Utah:
12a S Section 1. Section 4-3-8 is amended to read:
12b 4-3-8. Licenses and permits -- Application -- Fee -- Expiration -- Renewal.
12c (1) Application for a license to operate a plant or to manufacture butter or cheese,
12d pasteurize milk, test milk for payment, DISTRIBUTE DAIRY PRODUCTS, or haul milk in bulk shall be
12e made to the department upon forms prescribed and furnished by it. Upon receipt of a proper
12f application, compliance with all applicable regulations, and payment of a license fee determined by
12g the department pursuant to Subsection 4-2-2 (2), the commissioner, if satisfied that the public
12h convenience and necessity and the industry will be served, shall issue an appropriate license to the
12i applicant subject to suspension or revocation for cause. Each license issued under this section
12j expires at midnight on December 31 of each year. A license to operate a plant or to manufacture
12k butter or cheese, pasteurize milk, test milk for payment, DISTRIBUTE DAIRY PRODUCTS, or to haul
12l milk in bulk is renewable for a period of one year upon the payment of an annual license renewal fee
12m determined by the department pursuant to Subsection 4-2-2 (2) on or before December 31 of each
12n year.
12o (2) Application for a permit or certificate to produce milk shall be made to the
12p department on forms prescribed and furnished by it. Upon receipt of a proper application and
12q compliance with all applicable regulations, the commissioner shall issue a permit entitling

12r the applicant to engage in the business of producer, subject to suspension or revocation for cause.
12s No fee may be charged by the department for issuance of a permit or certificate . s
13 Section 2. Section 4-3-11 is amended to read:
14 4-3-11. Processors, manufacturers, or distributors -- Unlawful to give money,
15 equipment, or fixtures to retailer or consumer -- Exceptions -- Shelf space for dairy products.
16 (1) As used in this section S [ , ] : (a) "LIQUID DAIRY PRODUCT" MEANS A MILK
16a CONTAINER WHICH CONTAINS A PINT OF MILK OR LESS; AND (b ) s novelty ice cream" means a
16b package or container of ice cream
17 which contains eight fluid ounces or less.
18 [(1) No] (2) Except as provided in Subsections (3) and (4), no processor, manufacturer,
19 distributor, or his affiliates, subsidiaries, associates, agents or stockholders shall furnish, service,
20 repair, give, lease, sell, or loan to a retailer or consumer any:
21 (a) money;
22 (b) equipment;
23 (c) fixtures, including ice cream cabinets or bulk milk dispensers;
24 (d) supplies, excluding expendable supplies commonly provided in connection with the
25 sale of dairy products to a consumer; or
26 (e) other things having a real or substantial value.
27 (3) S (a) s Ice cream cabinets may be loaned or sold to a retailer if the ice cream cabinet:

28 S [ (a) ] (i) s is portable;
29 S [ (b) ] (ii) s has a storage capacity not exceeding 12 cubic feet; and
30 S [ (c) ] (iii) s is used solely for retail display sales of novelty ice cream.
30a S (b) MILK COOLERS MAY BE LOANED OR SOLD TO A RETAILER IF THE MILK COOLER:
30b (i) IS PORTABLE;
30c (ii) HAS A STORAGE CAPACITY NOT EXCEEDING 12 CUBIC FEET; AND
30d (iii) IS USED SOLELY FOR RETAIL DISPLAY SALES OF LIQUID DAIRY PRODUCTS. s
31 [(2)] (4) The leasing or renting of cabinets, dispensers, or coolers for dairy products for
32 civic affairs, demonstrations, or exhibits is prohibited unless it is for a period of ten days or less
33 in any one period of three consecutive months.
34 [(3)] (5) (a) [No] Except as provided in Subsections (5)(b) and (5)(c), no retailer shall
35 lease, sell, or loan[,] shelf or refrigerator space for dairy products to a processor, manufacturer, or
36 distributor or receive anything of value from a processor, manufacturer, or distributor in exchange
37 for shelf or refrigerator space for dairy products [to a processor, manufacturer, or distributor].
38 (b) Subsection (5)(a) [shall] does not apply to a dairy by-product that is:
39 (i) a short-term special; or
40 (ii) a new product being introduced on a trial basis for a period not to exceed 45 days.
41 (c) A processor, manufacturer, or distributor may loan or sell an ice cream cabinet S OR
41a MILK COOLER s to a
42 retailer for the display of the processor's, manufacturer's, or distributor's products, if the ice cream
43 cabinet S OR MILK COOLER s meets the requirements of Subsection (3).




Legislative Review Note
as of 9-15-99 11:13 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel