1     
RAW MILK PRODUCTS AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kim F. Coleman

5     
Senate Sponsor: David P. Hinkins

6     

7     LONG TITLE
8     General Description:
9          This bill provides for the manufacturing, distribution, and sale of certain products
10     produced from raw milk under certain circumstances.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     allows the manufacturing, distribution, and sale of certain products produced from
15     raw milk under certain circumstances; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          4-3-301, as renumbered and amended by Laws of Utah 2017, Chapter 345
24          4-3-503, as last amended by Laws of Utah 2018, Chapter 279
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 4-3-301 is amended to read:
28          4-3-301. Licenses and permits -- Application -- Fee -- Expiration -- Renewal.
29          (1) Application for a license to operate a plant, manufacture butter or cheese,
30     pasteurize milk, test milk for payment, haul milk in bulk, or for the wholesale distribution of
31     dairy products shall be made to the department upon forms prescribed and furnished by [it] the
32     department.
33          (2) Upon receipt of a proper application, compliance with [all] the applicable rules, and
34     payment of a license fee determined by the department according to Subsection 4-2-103(2), the
35     commissioner, if satisfied that the public convenience and necessity and the industry will be
36     served, shall issue an appropriate license to the applicant subject to suspension or revocation
37     for cause.
38          (3) [Each] A license issued under this section expires at midnight on December 31 of
39     each year.
40          (4) A license to operate a plant, manufacture butter or cheese, pasteurize milk, test milk
41     for payment, haul milk in bulk, or for the wholesale distribution of dairy products, is renewable
42     for a period of one year upon the payment of an annual license renewal fee determined by the
43     department according to Subsection 4-2-103(2) on or before December 31 of each year.
44          (5) [Application] Notwithstanding the requirements of Subsection (1), application for a
45     permit or certificate to produce milk or a raw milk product, as that term is defined in Section
46     4-3-503, shall be made to the department on forms prescribed and furnished by [it] the
47     department.
48          (6) (a) Upon receipt of a proper application and compliance with [all] applicable rules,
49     the commissioner shall issue a permit entitling the applicant to engage in the business of
50     producer, subject to suspension or revocation for cause.
51          (b) [No] A fee may not be charged by the department for issuance of a permit or
52     certificate.
53          Section 2. Section 4-3-503 is amended to read:
54          4-3-503. Sale of raw milk products -- Suspension of producer's permit --
55     Severability not permitted.
56          (1) As used in this section:
57          (a) "Batch" means all the milk emptied from one bulk tank and bottled in a single day.
58          (b) "Raw milk product" means raw milk, cream produced from raw milk, and butter
59     produced from raw milk.
60          [(b)] (c) "Self-owned retail store" means a retail store:
61          (i) of which the producer owns at least 51% of the value of the real property and
62     tangible personal property used in the operations of the retail store; or
63          (ii) for which the producer has the power to vote at least 51% of any class of voting
64     shares or ownership interest in the business entity that operates the retail store.
65          (2) Except as provided in Subsection (5), a raw milk product may be manufactured,
66     distributed, sold, delivered, held, stored, or offered for sale if:
67          (a) the producer obtains a permit from the department to produce the raw milk product
68     under Subsection 4-3-301[(5)](6);
69          (b) the sale and delivery of the raw milk product is made upon the premises where the
70     raw milk product is produced, except as provided by Subsection (3);
71          (c) the raw milk product is sold to consumers for household use and not for resale;
72          (d) the raw milk product is bottled or packaged under sanitary conditions and in
73     sanitary containers on the premises where the raw milk product is produced;
74          (e) the raw milk product is labeled "raw milk product" and meets the labeling
75     requirements under 21 C.F.R. Parts 101 and 131 and rules established by the department;
76          (f) the raw milk used to produce the raw milk product is:
77          (i) cooled to 50 degrees Fahrenheit or a lower temperature within one hour after being
78     drawn from the animal;
79          (ii) further cooled to 41 degrees Fahrenheit within two hours of being drawn from the
80     animal; and
81          (iii) maintained at 41 degrees Fahrenheit or a lower temperature until the raw milk is
82     delivered to the consumer or used to produce the raw milk product;
83          (g) the bacterial count of the raw milk used to produce the raw milk product does not
84     exceed 20,000 colony forming units per milliliter;
85          (h) the coliform count of the raw milk used to produce the raw milk product does not
86     exceed 10 colony forming units per milliliter;
87          (i) the production of the raw milk product conforms to departmental rules for the
88     production of grade A milk products;
89          (j) [all] the dairy animals on the premises are:
90          (i) permanently and individually identifiable; and
91          (ii) free of tuberculosis, brucellosis, and other diseases carried through milk; and
92          (k) any person on the premises performing any work in connection with the production,
93     bottling, packaging, handling, or sale of the raw milk product is free from communicable
94     disease.
95          (3) A producer may distribute, sell, deliver, hold, store, or offer for sale a raw milk
96     product at a self-owned retail store, [which] that is properly staffed, or from a mobile unit
97     where the raw milk product is maintained through mechanical refrigeration at 41 degrees
98     Fahrenheit or a lower temperature, if, in addition to the requirements of Subsection (2), the
99     producer:
100          (a) transports the raw milk product from the premises where the raw milk product is
101     produced to the self-owned retail store in a refrigerated truck where the raw milk product is
102     maintained at 41 degrees Fahrenheit or a lower temperature;
103          (b) retains ownership of the raw milk product until it is sold to the final consumer,
104     including transporting the raw milk product from the premises where the raw milk product is
105     produced to the self-owned retail store without any:
106          (i) intervening storage;
107          (ii) change of ownership; or
108          (iii) loss of physical control;
109          (c) stores the raw milk product at 41 degrees Fahrenheit or a lower temperature in a
110     display case equipped with a properly calibrated thermometer at the self-owned retail store;
111          (d) places a sign above each display case that contains a raw milk product at the
112     self-owned retail store that:
113          (i) is prominent;
114          (ii) is easily readable by a consumer;
115          (iii) reads in print that is no smaller than .5 [inches] inch in bold type, "This milk
116     product is raw and unpasteurized. Please keep refrigerated."; and
117          (iv) meets any other requirement established by the department by rule;
118          (e) labels the raw milk product with:
119          (i) a date, no more than nine days after the raw milk product is produced, by which the
120     raw milk product should be sold;
121          (ii) the statement "Raw milk products, no matter how carefully produced, may be
122     unsafe.";
123          (iii) handling instructions to preserve quality and avoid contamination or spoilage;
124          (iv) [by January 1, 2017,] a specific colored label as determined by the department by
125     rule; and
126          (v) any other information required by rule;
127          (f) refrains from offering the raw milk product for sale until:
128          (i) the department or a third party certified by the department tests each batch of raw
129     milk used to produce a raw milk product for standard plate count and coliform count; and
130          (ii) the test results meet the minimum standards established for those tests;
131          (g) (i) maintains a database of the raw milk product sales; and
132          (ii) makes the database available to the Department of Health during the self-owned
133     retail store's business hours for purposes of epidemiological investigation;
134          (h) ensures that the plant and retail store complies with Chapter 5, Utah Wholesome
135     Food Act, and the rules governing food establishments enacted under Section 4-5-301; and
136          (i) complies with [all] the applicable rules adopted as authorized by this chapter.
137          (4) A producer may distribute, sell, deliver, hold, store, or offer for sale a raw milk
138     product and pasteurized milk at the same self-owned retail store if:
139          (a) the self-owned retail store is properly staffed; and
140          (b) the producer:
141          (i) meets the requirements of Subsections (2) and (3);
142          (ii) operates the self-owned retail store on the same property where the raw milk
143     product is produced; and
144          (iii) maintains separate, labeled, refrigerated display cases for raw milk products and
145     pasteurized milk.
146          (5) A producer may, without meeting the requirements of Subsection (2), sell up to 120
147     gallons of raw milk per month if:
148          (a) the sale is directly to an end consumer, for household use and not for resale;
149          (b) the sale and delivery of the raw milk is made upon the premises where the raw milk
150     is produced;
151          (c) the producer labels the raw milk with:
152          (i) the producer's name and address;
153          (ii) a date, no more than nine days after the raw milk is produced, by which the raw
154     milk should be sold;
155          (iii) the statement "This raw milk has not been licensed or inspected by the state of
156     Utah. Raw milk, no matter how carefully produced, may be unsafe."; and
157          (iv) handling instructions to preserve quality and avoid contamination or spoilage;
158          (d) the raw milk is:
159          (i) cooled to 50 degrees Fahrenheit or a lower temperature within one hour after being
160     drawn from the animal; and
161          (ii) further cooled to 41 degrees Fahrenheit within two hours of being drawn from the
162     animal;
163          (e) the producer conducts a monthly test ensuring the coliform count of the raw milk
164     does not exceed 10 colony-forming units per milliliter;
165          (f) [all] the dairy animals on the producer's premises are free of tuberculosis,
166     brucellosis, and other diseases carried through milk;
167          (g) the producer maintains records of tests and sales for a minimum of two years; and
168          (h) the producer notifies the department of the producer's intent to sell raw milk
169     pursuant to this Subsection (5) and includes in the notification the producer's name and
170     address.
171          (6) A person who conducts a test required by Subsection (3) shall send a copy of the
172     test results to the department as soon as the test results are available.
173          (7) (a) The department shall adopt rules, as authorized by Section 4-3-201, governing
174     the sale of raw milk products at a self-owned retail store.
175          (b) The rules adopted by the department shall include rules regarding:
176          (i) permits;
177          (ii) building and premises requirements;
178          (iii) sanitation and operating requirements, including bulk milk tanks requirements;
179          (iv) additional tests;
180          (v) frequency of inspections, including random cooler checks;
181          (vi) recordkeeping; and
182          (vii) packaging and labeling.
183          (c) The department may make rules, in accordance with Title 63G, Chapter 3, Utah
184     Administrative Rulemaking Act, regarding the standards of identity for a raw milk product.
185          [(c)] (d) (i) The department shall establish and collect a fee for the tests and inspections
186     required by this section and by rule in accordance with Section 63J-1-504.
187          (ii) Notwithstanding Section 63J-1-504, the department shall retain the fees as
188     dedicated credits and may only use the fees to administer and enforce this section.
189          (8) (a) The department shall suspend a permit issued under Section 4-3-301 if:
190          (i) two out of four consecutive samples or two samples in a 30-day period violate
191     sample limits established under this section; or
192          (ii) a producer violates [a provision of] this section or a rule adopted as authorized by
193     this section.
194          (b) The department may reissue a permit that has been suspended under Subsection
195     (8)(a) if the producer has complied with all of the requirements of this section and rules
196     adopted as authorized by this section.
197          (9) (a) If any subsection of this section or the application of any subsection to any
198     person or circumstance is held invalid by a final decision of a court of competent jurisdiction,
199     the remainder of the section may not be given effect without the invalid subsection or
200     application.
201          (b) The provisions of this section may not be severed.
202          (10) Nothing in this chapter shall be construed to impede the Department of Health or
203     the Department of Agriculture and Food in investigation of foodborne illness.
204          (11) The department shall issue a cease and desist order to a producer linked to a
205     foodborne illness and shall stop sale [on] of a raw milk product currently being sold.
206          (12) The order shall remain in effect until the department verifies that the producer:
207          (a) adheres to [all of the provisions of] this section; and
208          (b) has three consecutive clean tests of the raw milk product.
209          (13) In addition to [the provisions of] Subsections (11) and (12), if a producer's raw
210     milk product has been linked to a foodborne illness outbreak, and the department finds that the
211     producer has violated the applicable provisions of this section, the department may impose
212     upon the producer the following administrative penalties:
213          (a) upon the first violation, a penalty of no more than $300;
214          (b) upon a second violation, a penalty of no more than $750; and
215          (c) upon a third or subsequent violation a penalty of no more than $1,500.