S.B. 19

1

ICE CREAM AND MILK DISPENSER
2 REQUIREMENTS
3 2001 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gene Davis
6 This act modifies provisions related to agriculture. This act amends the Utah Dairy Act to
7 provide a license application process for the distribution of dairy products and to allow ice
8 cream cabinets and milk coolers to be loaned or sold to a retailer if certain conditions are
9 met.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 4-3-8, as last amended by Chapter 130, Laws of Utah 1985
13 4-3-11, as last amended by Chapter 157, Laws of Utah 1990
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 4-3-8 is amended to read:
16 4-3-8. Licenses and permits -- Application -- Fee -- Expiration -- Renewal.
17 (1) Application for a license to operate a plant or to manufacture butter or cheese,
18 pasteurize milk, test milk for payment, S [ distribute dairy products, or ] s haul milk in bulk, S OR
18a FOR THE WHOLESALE DISTRIBUTION OF DAIRY PRODUCTS , s shall be made
19 to the department upon forms prescribed and furnished by it. Upon receipt of a proper application,
20 compliance with all applicable regulations, and payment of a license fee determined by the
21 department pursuant to Subsection 4-2-2 (2), the commissioner, if satisfied that the public
22 convenience and necessity and the industry will be served, shall issue an appropriate license to the
23 applicant subject to suspension or revocation for cause. Each license issued under this section
24 expires at midnight on December 31 of each year. A license to operate a plant or to manufacture
25 butter or cheese, pasteurize milk, test milk for payment, S [ distribute dairy products, or to ] s haul
25a milk
26 in bulk S , OR FOR THE WHOLESALE DISTRIBUTION OF DAIRY PRODUCTS, s is renewable for a
26a period of one year upon the payment of an annual license renewal fee
27 determined by the department pursuant to Subsection 4-2-2 (2) on or before December 31 of each

28 year.
29 (2) Application for a permit or certificate to produce milk shall be made to the department
30 on forms prescribed and furnished by it. Upon receipt of a proper application and compliance with
31 all applicable regulations, the commissioner shall issue a permit entitling the applicant to engage
32 in the business of producer, subject to suspension or revocation for cause. No fee may be charged
33 by the department for issuance of a permit or certificate.
34 Section 2. Section 4-3-11 is amended to read:
35 4-3-11. Processors, manufacturers, or distributors -- Unlawful to give money,
36 equipment, or fixtures to retailer or consumer -- Exceptions -- Shelf space for dairy products.
37 (1) As used in this section:
38 (a) "liquid dairy product" means a milk container which contains a pint of milk or less; and
39 (b) "novelty ice cream" means a package or container of ice cream which contains eight
40 fluid ounces or less.
41 [(1) No] (2) Except as provided in Subsections (3) and (4), no processor, manufacturer,
42 distributor, or his affiliates, subsidiaries, associates, agents or stockholders shall furnish, service,
43 repair, give, lease, sell, or loan to a retailer or consumer any:
44 (a) money;
45 (b) equipment;
46 (c) fixtures, including ice cream cabinets or bulk milk dispensers;
47 (d) supplies, excluding expendable supplies commonly provided in connection with the
48 sale of dairy products to a consumer; or
49 (e) other things having a real or substantial value.
50 (3) (a) Ice cream cabinets may be loaned or sold to a retailer if the ice cream cabinet:
51 (i) is portable;
52 (ii) has a storage capacity not exceeding 12 cubic feet; and
53 (iii) is used solely for retail display sales of novelty ice cream.
54 (b) Milk coolers may be loaned or sold to a retailer if the milk cooler:
55 (i) is portable;
56 (ii) has a storage capacity not exceeding 12 cubic feet; and
57 (iii) is used solely for retail display sales of liquid dairy products.
58 [(2)] (4) The leasing or renting of cabinets, dispensers, or coolers for dairy products for

59 civic affairs, demonstrations, or exhibits is prohibited unless it is for a period of ten days or less
60 in any one period of three consecutive months.
61 [(3)] (5) (a) [No] Except as provided in Subsections (5)(b) and (5)(c), no retailer shall
62 lease, sell, or loan[,] shelf or refrigerator space for dairy products to a processor, manufacturer, or
63 distributor or receive anything of value from a processor, manufacturer, or distributor in exchange
64 for shelf or refrigerator space for dairy products [to a processor, manufacturer, or distributor].
65 (b) Subsection (5)(a) [shall] does not apply to a dairy by-product that is:
66 (i) a short-term special; or
67 (ii) a new product being introduced on a trial basis for a period not to exceed 45 days.
68 (c) A processor, manufacturer, or distributor may loan or sell an ice cream cabinet or milk
69 cooler to a retailer for the display of the processor's, manufacturer's, or distributor's products, if the
70 ice cream cabinet or milk cooler meets the requirements of Subsection (3).




Legislative Review Note
as of 11-22-00 12:33 PM

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

Office of Legislative Research and General Counsel

Committee Note

The Business, Labor, and Economic Development Interim Committee recommended this bill.