2015 Indiana Code TITLE 15. AGRICULTURE AND ANIMALS ARTICLE 18. DAIRY PRODUCTS CHAPTER 2. MILK AND CREAM PURCHASES
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IC 15-18-2
Chapter 2. Milk and Cream Purchases
IC 15-18-2-1
"Babcock test"
Sec. 1. As used in this chapter, "Babcock test" means the official
Babcock test for milk and for cream.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-2
"Board"
Sec. 2. As used in this chapter, "board" refers to the creamery
examining board established by section 9 of this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-3
"Milk distributor"
Sec. 3. As used in this chapter, "milk distributor" means any
person or person's agent that purchases market milk or market cream
from a bargaining agent or another plant for resale.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-4
"Other processing plant"
Sec. 4. As used in this chapter, "other processing plant" means any
place, premises, or establishment:
(1) where milk or cream is received, processed, or
manufactured; and
(2) that is not specifically identified in this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-5
"Person"
Sec. 5. As used in this chapter, unless the context otherwise
indicates, "person" includes an individual, a partnership, a limited
liability company, a corporation, and an association.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-6
"Receiving station"
Sec. 6. As used in this chapter, "receiving station" means any
place other than a dairy processing plant where milk or cream is
received, weighed, sampled, or tested for shipment to any other
processing plant.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-7
"Standard Babcock testing glassware"
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Sec. 7. As used in this chapter, "standard Babcock testing
glassware" means glassware and weights that comply with
specifications for official apparatus for the Babcock method as
defined in the latest edition of Official Methods of Analysis of
AOAC International.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-8
Enforcement
Sec. 8. The creamery license division of Purdue University, in
cooperation with the board, shall enforce this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-9
Creamery examining board; membership
Sec. 9. (a) The creamery examining board is established. The
board consists of eight (8) members composed of the following:
(1) Three (3) producers of milk and cream.
(2) Three (3) processors of milk and cream.
(3) One (1) member of the animal sciences department who
shall be appointed by the dean of agriculture of Purdue
University.
(4) One (1) milk hauler.
The board shall elect a chairperson annually.
(b) Two (2) of the producer members shall be elected to the board
by the board of directors of the Indiana Dairy Producers, Inc. The
third producer member shall be elected to the board by the Indiana
State Dairy Association. If an organization is unable to elect a
producer to the board, then the other organization shall elect the
producer to the board. However, if both organizations are unable to
elect a producer to the board, the dean of agriculture of Purdue
University shall appoint a producer to fill the open position after
consulting with dairy producers in Indiana.
(c) The three (3) processor members shall be elected to the board
by the Midwest Dairy Products Association. If the Midwest Dairy
Products Association is not able to elect a processor to the board, the
dean of agriculture of Purdue University shall appoint a processor to
fill the open position after consulting with dairy processors in
Indiana.
(d) The Midwest Dairy Products Association shall elect one (1)
member each year. The board of directors of the Indiana Dairy
Producers, Inc., shall elect a producer member to the board two (2)
out of every three (3) years and the Indiana State Dairy Association
shall select a producer member during the third year.
(e) The milk hauler member shall be appointed to the board by the
dean of agriculture of Purdue University.
As added by P.L.2-2008, SEC.9. Amended by P.L.186-2014, SEC.12.
IC 15-18-2-10
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Terms
Sec. 10. (a) The term of a board member is three (3) years.
(b) A vacancy in any membership of the board shall be filled by
the same process for the unexpired term.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-11
Reimbursement
Sec. 11. Board members shall be reimbursed by the creamery
license division for actual traveling expenses and subsistence while
attending a regular or called meeting.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-12
Duties
Sec. 12. The board shall do the following:
(1) Hold regular quarterly meetings and in addition meet in
special called sessions at a date, time, and place designated by
the chairperson.
(2) Review all cases of violation of this chapter.
(3) Recommend the revocation of any license issued under this
chapter.
(4) Adopt specific rules under IC 4-22-2 relative to weighing,
sampling, and testing of milk and cream and to the enforcement
of the creamery license law.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-13
Inspection
Sec. 13. On recommendation of the board and with the approval
of the dean of agriculture of Purdue University, inspectors of the
creamery license division may inspect records or collect data on the
quality and quantity of milk and cream in plants that:
(1) cooperate with Purdue University in the quality
improvement program; or
(2) assist in any other project that will be of mutual benefit to
the Indiana dairy industry and the Purdue University animal
sciences department.
As added by P.L.2-2008, SEC.9. Amended by P.L.186-2014, SEC.13.
IC 15-18-2-14
Basis of milk purchases; fresh samples; composite samples
Sec. 14. (a) Milk and cream must be purchased on the basis of
weight or volume and:
(1) the butterfat content;
(2) the protein content; or
(3) a combination of butterfat and protein content;
as determined by any test or tests approved by the board, which may
also have been designated official by AOAC International.
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(b) A payment for milk must be made either on the basis of:
(1) a fresh sample taken and tested according to procedures
established under rules adopted by the board; or
(2) a composite test.
A composite sample must cover a period of not more than sixteen
(16) days. In each plant, all composite samples must cover the same
period for each test and succeeding periods must be as nearly equal
as possible. All composite samples must cover the same period. A
uniform sample consisting of at least ten (10) cubic centimeters of
milk must be taken each day, except when milk is frozen or partly
churned, from the milk furnished by each person. An approved
preservative must be added to the sample and each composite sample
must be held in an approved, rubber stoppered, airtight bottle that is
plainly labeled to show the name or number of the person whose milk
the composite sample represents. The milk to be sampled must be
poured into a weigh tank approved by the creamery license division
meeting the standards prescribed in rules, be run through a fine mesh
or perforated metal strainer, and be homogeneous in richness before
any sample is taken. The composite samples must be kept in a
refrigerated cabinet or cooler in or near the receiving room at a
temperature of not more than forty-two (42) degrees Fahrenheit,
away from strong light, and must be kept free of mold. The test must
be made within seventy-two (72) hours, excluding Sundays and
holidays, after the last sample has been added to the composite
sample.
(c) If at the close of any composite period the composite samples
are inaccurate as determined by the creamery license division, three
(3) daily samples must be taken within the first five (5) days of the
following composite period. The average of the three (3) fresh
samples determines the basis of payment for the composite period in
question.
(d) In each plant where composite samples of milk are taken, the
owner or manager shall delegate an individual who is responsible for
the care, condition, and accuracy of all composite samples.
(e) After the composite samples are emptied, the sample bottles
must be thoroughly washed, and all bottles and rubber stoppers shall
be sterilized before being used again.
(f) Composite samples may be removed from the plant for testing
elsewhere only on written permission from the creamery license
division.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-15
Unfair samples; fraudulent manipulation of weights or samples;
method of weighing and sampling
Sec. 15. (a) A hauler of milk or cream or other person or dairy
processing plant or other milk plant or agent receiving milk or cream
by weight or test or by weight and test may not fraudulently
manipulate the weights of milk or cream of any person to take unfair
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samples or fraudulently manipulate the samples.
(b) When milk is received from farm bulk tanks, the hauler shall:
(1) weigh or measure the milk of each person accurately and
correctly; and
(2) thoroughly mix the milk of each person by stirring until the
milk is uniform and homogeneous in richness before the sample
is taken from the milk.
When the weighing or sampling of the milk or cream of each person
is done at the dairy processing plant, receiving station, other factory,
or other location, the same procedures for buying and paying for milk
or cream on the basis of the butterfat and protein apply.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-16
Fraudulent manipulation of tests
Sec. 16. A person acting alone or as the officer, servant, agent, or
employee of any person buying and paying for milk or cream on the
basis of the total composition of milk, the protein, or fat components
of milk may not:
(1) underread, overread, or otherwise fraudulently manipulate
the test used to determine the total composition of milk or the
protein and fat components of milk; or
(2) pay for milk or cream on any test except the true test of the
lot or lots of milk or cream received.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-17
Babcock testing; scales; other equipment
Sec. 17. (a) A person or a person's agent buying or paying for milk
or cream on the basis of the amount of butterfat contained in the milk
or cream as determined by the Babcock test shall use standard
Babcock testing glassware and accurate scales.
(b) In conducting tests other than an approved test for determining
the total composition of milk and the protein and fat components of
milk, test equipment used that will influence test results must be
approved by the creamery license division before use in determining
producer pay tests.
As added by P.L.2-2008, SEC.9. Amended by P.L.186-2014, SEC.14.
IC 15-18-2-18
License for milk or cream buyers; fees; revocation
Sec. 18. (a) A dairy processing plant, a receiving station, a milk
shipping station, a milk factory, a milk distributor, a cheese factory,
a condensery, an ice cream factory, other processing plant, person, or
person's agent that handles, receives, buys, or pays for milk or cream
from a producer, a bargaining agent, or another plant shall obtain a
license from the creamery license division.
(b) A license must be issued to the dairy, dairy processing plant,
receiving station, milk factory, milk distributor, cheese factory,
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condensery, ice cream factory, other processing plant, person, or
person's agent by the creamery license division upon:
(1) compliance with sections 14 through 17 of this chapter; and
(2) payment of a license fee as provided in sections 22 and 23
of this chapter.
A license shall be revoked by Purdue University upon
recommendation of the board if the licensee fails to comply with the
rules under which the license was granted.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-19
Tester's license; employment of licensed tester; examination;
license fee; revocation; refusal to issue license
Sec. 19. (a) A person who does testing in connection with the
receiving, buying, or paying for milk or cream on the basis of the
total composition or the protein and fat components contained in the
milk or cream, either for the person or as an officer, a servant, an
agent, or an employee of any person, must hold a tester's license.
(b) A dairy processing plant, receiving station, or other factory, or
person, or person's agent, that receives, buys, or pays for milk or
cream on the basis of the total composition or the protein and fat
components contained in the milk or cream shall employ a licensed
tester to supervise and is responsible for the operation of the testing
of milk or cream.
(c) A milk tester's license or cream tester's license shall be issued
to a person by the creamery license division if the person:
(1) passes a satisfactory examination as provided for in the rules
adopted by the board and demonstrates that the person is
competent and qualified to test milk or cream; and
(2) pays a license fee as provided in section 24 of this chapter.
A license shall be revoked by the creamery license division upon
recommendation of the board if the licensee fails to comply with the
rules under which the license was granted.
(d) The board may refuse to issue or reissue a license under this
section to a person who:
(1) has:
(A) previously held a license under this section; and
(B) had the license revoked or suspended by the board; or
(2) has held a milk testing related license or permit that has been
suspended or revoked in another state.
As added by P.L.2-2008, SEC.9. Amended by P.L.186-2014, SEC.15.
IC 15-18-2-20
Sampler's license; employment of licensed sampler; examination;
license fee; revocation; refusal to issue license
Sec. 20. (a) A person who does sampling in connection with
receiving, buying, or paying for milk or cream on the basis of the
total composition of milk or the protein and fat components contained
in the milk or cream, either for the person, or as officer, servant,
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agent, or employee of any person, must hold a sampler's license.
(b) A dairy processing plant, receiving station, other factory,
person, or person's agent, that receives, buys, or pays for milk or
cream on the basis of the amount of butterfat contained in the milk or
cream shall employ a licensed sampler to supervise and is responsible
for the sampling and weighing of milk or cream to obtain a
representative sample and make and record correct weights of the
whole amount of milk or cream delivered.
(c) A milk sampler's license or cream sampler's license shall be
issued to a person by the creamery license division if the person:
(1) passes a satisfactory examination as provided for in the rules
adopted by the board and demonstrates that the person is
competent and qualified to sample milk or cream; and
(2) pays a license fee as provided in section 25 of this chapter.
A license shall be revoked by the creamery license division upon
recommendation of the board if the licensee fails to comply with the
rules under which the license was granted.
(d) A license to test milk or cream includes the authority to sample
and weigh milk or cream.
(e) The board may refuse to issue or reissue a license under this
section to a person who:
(1) has:
(A) previously held a license under this section; and
(B) had the license revoked or suspended by the board; or
(2) has held a milk sampling related license or permit that has
been suspended or revoked in another state.
As added by P.L.2-2008, SEC.9. Amended by P.L.186-2014, SEC.16.
IC 15-18-2-21
New license for testers and samplers
Sec. 21. An application for a new license to test must be
accompanied by the payment of a fee of thirty dollars ($30). An
application for a new license to sample or weigh must be
accompanied by the payment of a fee of twenty dollars ($20). The fee
shall pay for the first regular tester's or sampler's license issued to the
applicant. If the applicant fails the examination or discontinues work
before the examination can be given, the applicant forfeits the fee
paid for the new license.
As added by P.L.2-2008, SEC.9. Amended by P.L.186-2014, SEC.17.
IC 15-18-2-22
Plant license
Sec. 22. The creamery license division shall issue a plant license
to every dairy processing plant, receiving station, milk factory,
cheese factory, condensery, ice cream factory, or other person that
complies with section 18 of this chapter and pays to the creamery
license division seventy-five dollars ($75) plus a fee of:
(1) twelve dollars ($12) per million on milk receipts of at least
ten million (10,000,000) but not more than fifty million
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(50,000,000) pounds;
(2) nine dollars ($9) per million on milk receipts of at least fifty
million (50,000,000) but not more than one hundred million
(100,000,000) pounds; and
(3) five dollars ($5) per million on milk receipts of at least one
hundred million (100,000,000) pounds;
during the preceding year ending December 31. The maximum fee
may not exceed one thousand dollars ($1,000) regardless of volume
received. Out-of-state milk receipts are exempt from the payment of
fees.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-23
Receiving station or other milk or cream processing plant license
Sec. 23. A license shall be issued to a receiving station or other
milk or cream processing plant upon payment to the creamery license
division a fee of twenty-five dollars ($25).
As added by P.L.2-2008, SEC.9.
IC 15-18-2-24
Milk or cream tester's license
Sec. 24. A license shall be issued to an applicant for a milk tester's
license or cream tester's license if the applicant:
(1) complies with section 19 of this chapter; and
(2) pays to the creamery license division a fee of fifteen dollars
($15).
As added by P.L.2-2008, SEC.9.
IC 15-18-2-25
Sampler's license
Sec. 25. A license shall be issued to an applicant for a sampler's
license if the applicant:
(1) complies with section 20 of this chapter; and
(2) pays to the creamery license division a fee of ten dollars
($10).
As added by P.L.2-2008, SEC.9.
IC 15-18-2-26
License expiration
Sec. 26. A license issued under this chapter expires March 31
following its issue. A license is not transferable.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-27
Repealed
(As added by P.L.2-2008, SEC.9. Repealed by P.L.186-2014,
SEC.18.)
IC 15-18-2-28
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Fees on milk purchases; charge-back to producers
Sec. 28. (a) To secure sufficient funds to implement this chapter
and to ensure accuracy to milk and cream producers in the weighing,
sampling, and testing of milk and cream:
(1) a dairy processing plant;
(2) a receiving station;
(3) a milk factory;
(4) a milk distributor;
(5) a cheese factory;
(6) a condensery;
(7) an ice cream factory;
(8) any other processing plant; or
(9) a person purchasing fluid milk or cream in Indiana directly
from producers or a producers' association or otherwise
receiving milk directly from producers;
shall, during the month of May of each year, pay to the treasurer of
Purdue University for the fluid milk or cream delivered during the
month of May a sum equal in amount to two and one-half cents
($.025) per one hundred (100) pounds for all fluid milk purchased
during that time. For the financing of the producers' share of this
program, the processor shall charge the two and one-half cents
($.025) per one hundred (100) pounds back to the producer
association or cooperative. For those patrons who do not belong to
producer associations or cooperatives, the processor shall make this
charge directly to the individual producer. Butterfat purchased from
producers other than in the form of fluid milk shall be converted for
the purpose of the deduction into four percent (4%) milk equivalent.
Out-of-state receipts are exempt from the payment of these fees.
(b) All persons required to make payments under this section shall
make reports of all purchases of milk and cream at the times and in
the form as required by the creamery license division.
(c) It is a violation of this chapter for a person to fail to make:
(1) the payments required under this section; or
(2) an accurate accounting of the amount of fluid milk and
cream purchased.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-29
Payment of fees; use of funds
Sec. 29. Payments under section 28 of this chapter shall be made
to the treasurer of Purdue University not later than June 20 of each
year. The money received is for the exclusive use of the creamery
license division. The money shall be expended for the following:
(1) Salaries and traveling expenses of inspectors.
(2) Necessary equipment and supplies for the inspection of all
plants and stations.
(3) The examination of applicants for licenses.
(4) Disseminating information and instruction by means of
publication.
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(5) All other expenses necessary in administering this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-30
Late fees
Sec. 30. If a person is more than thirty (30) days late paying a fee
required under this chapter, the board shall assess a late fee of the
greater of the following:
(1) Ten percent (10%) of the amount due.
(2) Five dollars ($5).
As added by P.L.2-2008, SEC.9.
IC 15-18-2-31
Disposition of license fees
Sec. 31. (a) The money for license fees and for inspection fees as
provided in this chapter shall be paid to the treasurer of Purdue
University. The Purdue University board of trustees shall expend the
collected fees, on proper vouchers to be filed with the auditor of state,
in meeting all necessary expenses in carrying out this chapter,
including the employment of inspectors, traveling expenses of
inspectors, expenses of issuing publications, and glassware
equipment, testing device, and factory inspection as provided in this
chapter.
(b) The treasurer's annual report to the governor must include a
classified report showing the total receipts and expenditures of all
fees received under this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-32
Annual report; statistics; records
Sec. 32. Plants and stations covered by this chapter as listed in
section 18 of this chapter (dairy processing plant and receiving
station licenses) shall report before April 1 of each year the amount
of milk or cream, or both, purchased during the last calendar year
with the amount of butterfat in the milk or cream. Any other data or
statistics desired by the creamery license division pertaining to the
purchase of milk or cream must be reported to the creamery license
division by the person according to and on forms furnished by the
creamery license division. A person providing information under this
section shall keep complete and accurate records of the person's
business.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-33
Powers of inspectors; powers of creamery examining board
Sec. 33. (a) For purposes of this chapter, inspectors of the
creamery license division may do the following:
(1) Enter at all reasonable hours all places where milk or cream
is being stored, bottled, or processed, or where milk or cream is
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being bought, sold, or handled, to inspect records pertaining to
the purchase and payment of milk or cream.
(2) Inspect and copy the records pertaining to the purchase and
payment of milk or cream.
(3) Take testimony to ascertain facts pertaining to the purchase
and payment of milk or cream that in the judgment of the
creamery license division are necessary to administer this
chapter.
(b) The board may determine the truth and accuracy of the books,
records, papers, documents, accounts, and reports required to be
furnished in accordance with this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-34
Interference with or obstruction of inspector
Sec. 34. (a) A person or an officer, a servant, an agent, or an
employee of a person may not interfere with an authorized inspector
of the creamery license division who is:
(1) making an inspection; or
(2) taking a sample;
required under this chapter.
(b) A person that owns or operates or is in charge of a dairy
processing plant, a receiving station, a milk factory, a cheese factory,
a condensery, an ice cream factory, or other processing plant that is
subject to inspection or entry by an inspector of the creamery license
division may not refuse to allow or may not obstruct an inspector's
entry or inspection.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-35
Violations
Sec. 35. A person who recklessly violates this chapter commits a
Class A misdemeanor.
As added by P.L.2-2008, SEC.9.
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