CHAPTER 2. MILK AND CREAM PURCHASES
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 officialBabcock 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 creameryexamining 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 anyperson or person's agent that purchases market milk or market creamfrom 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" meansany place, premises, or establishment:
(1) where milk or cream is received, processed, ormanufactured; 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 otherwiseindicates, "person" includes an individual, a partnership, a limitedliability 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 anyplace other than a dairy processing plant where milk or cream isreceived, weighed, sampled, or tested for shipment to any otherprocessing plant.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-7
"Standard Babcock testing glassware"
Sec. 7. As used in this chapter, "standard Babcock testingglassware" means glassware and weights that comply with
specifications for official apparatus for the Babcock method asdefined in the latest edition of Official Methods of Analysis ofAOAC 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, incooperation 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. Theboard 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 whoshall be appointed by the dean of agriculture of PurdueUniversity.
(4) One (1) milk hauler.
The board shall elect a chairperson annually.
(b) Two (2) of the producer members shall be elected to the boardby the Indiana Cooperative Milk Producer's Federation, Inc. Thethird producer member shall be elected to the board by the IndianaState Dairy Association.
(c) The three (3) processor members shall be elected to the boardby the Midwest Dairy Products Association.
(d) The Midwest Dairy Products Association shall elect one (1)member each year. The Indiana federation of cooperatives shall electa producer member to the board two (2) out of every three (3) yearsand the Indiana State Dairy Association shall select a producermember during the third year.
(e) The milk hauler member shall be appointed to the board by thedean of agriculture of Purdue University or the dean's designee.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-10
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 bythe 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 creamerylicense division for actual traveling expenses and subsistence whileattending 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 inspecial called sessions at a date, time, and place designated bythe chairperson.
(2) Review all cases of violation of this chapter.
(3) Recommend the revocation of any license issued under thischapter.
(4) Adopt specific rules under IC 4-22-2 relative to weighing,sampling, and testing of milk and cream and to the enforcementof 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 approvalof the dean of agriculture of Purdue University, inspectors of thecreamery license division may inspect records or collect data on thequality of milk and cream in plants that:
(1) cooperate with Purdue University in the qualityimprovement program; or
(2) assist in any other project that will be of mutual benefit tothe Indiana dairy industry and the Purdue University animalsciences department.
As added by P.L.2-2008, SEC.9.
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 ofweight 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 mayalso have been designated official by AOAC International.
(b) A payment for milk must be made either on the basis of:
(1) a fresh sample taken and tested according to proceduresestablished 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 sameperiod for each test and succeeding periods must be as nearly equalas possible. All composite samples must cover the same period. Auniform sample consisting of at least ten (10) cubic centimeters ofmilk must be taken each day, except when milk is frozen or partlychurned, from the milk furnished by each person. An approvedpreservative must be added to the sample and each composite samplemust be held in an approved, rubber stoppered, airtight bottle that isplainly labeled to show the name or number of the person whose
milk the composite sample represents. The milk to be sampled mustbe poured into a weigh tank approved by the creamery licensedivision meeting the standards prescribed in rules, be run through afine mesh or perforated metal strainer, and be homogeneous inrichness before any sample is taken. The composite samples must bekept in a refrigerated cabinet or cooler in or near the receiving roomat a temperature of not more than forty-two (42) degrees Fahrenheit,away from strong light, and must be kept free of mold. The test mustbe made within seventy-two (72) hours, excluding Sundays andholidays, after the last sample has been added to the compositesample.
(c) If at the close of any composite period the composite samplesare inaccurate as determined by the creamery license division, three(3) daily samples must be taken within the first five (5) days of thefollowing composite period. The average of the three (3) freshsamples determines the basis of payment for the composite period inquestion.
(d) In each plant where composite samples of milk are taken, theowner or manager shall delegate an individual who is responsible forthe care, condition, and accuracy of all composite samples.
(e) After the composite samples are emptied, the sample bottlesmust be thoroughly washed, and all bottles and rubber stoppers shallbe sterilized before being used again.
(f) Composite samples may be removed from the plant for testingelsewhere only on written permission from the creamery licensedivision.
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 dairyprocessing plant or other milk plant or agent receiving milk or creamby weight or test or by weight and test may not fraudulentlymanipulate the weights of milk or cream of any person to take unfairsamples 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 andcorrectly; and
(2) thoroughly mix the milk of each person by stirring until themilk is uniform and homogeneous in richness before the sampleis taken from the milk.
When the weighing or sampling of the milk or cream of each personis done at the dairy processing plant, receiving station, other factory,or other location, the same procedures for buying and paying for milkor 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, oremployee of any person buying and paying for milk or cream on thebasis of the total composition of milk, the protein, or fat componentsof milk may not:
(1) underread, overread, or otherwise fraudulently manipulatethe test used to determine the total composition of milk or theprotein and fat components of milk; or
(2) pay for milk or cream on any test except the true test of thelot or lots of milk or cream received.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-17
Babcock and other test equipment; inspection for accuracy andapproval
Sec. 17. (a) A person or a person's agent buying or paying for milkor cream on the basis of the amount of butterfat contained in the milkor cream as determined by the Babcock test shall use standardBabcock testing glassware and accurate scales.
(b) All standard Babcock testing glassware and weights must be:
(1) inspected for accuracy by Purdue University; and
(2) legibly and indelibly marked by Purdue University with theletters "S.G.P." (Standard Glassware Purdue).
A bottle or pipette may not be used for a test unless the bottle orpipette is examined and marked by Purdue University.
(c) A person or a person's agent may not use test bottles andpipettes other than standard bottles or pipettes that have beenexamined and marked as provided in this section to determine theamount of fat in milk or cream bought or paid for on the butterfatbasis.
(d) In conducting tests other than an approved test for determiningthe total composition of milk and the protein and fat components ofmilk, test equipment used that will influence test results must beapproved by the creamery license division before use in determiningproducer pay tests.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-18
License for milk or cream buyers; fees; revocation
Sec. 18. (a) A dairy processing plant, a receiving station, a milkshipping 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 orcream from a producer, a bargaining agent, or another plant shallobtain 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,condensery, ice cream factory, other processing plant, person, orperson'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 uponrecommendation of the board if the licensee fails to comply with therules 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
Sec. 19. (a) A person who does testing in connection with thereceiving, buying, or paying for milk or cream on the basis of thetotal composition or the protein and fat components contained in themilk or cream, either for the person or as an officer, a servant, anagent, or an employee of any person, must hold a tester's license.
(b) A dairy processing plant, receiving station, or other factory, orperson, or person's agent, that receives, buys, or pays for milk orcream on the basis of the total composition or the protein and fatcomponents contained in the milk or cream shall employ a licensedtester to supervise and is responsible for the operation of the testingof milk or cream.
(c) A milk tester's license or cream tester's license shall be issuedto a person by the creamery license division if the person:
(1) passes a satisfactory examination as provided for in the rulesadopted by the board and demonstrates that the person iscompetent 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 uponrecommendation of the board if the licensee fails to comply with therules under which the license was granted.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-20
Sampler's license; employment of licensed sampler; examination;license fees; revocation
Sec. 20. (a) A person who does sampling in connection withreceiving, buying, or paying for milk or cream on the basis of thetotal composition of milk or the protein and fat componentscontained in the milk or cream, either for the person, or as officer,servant, agent, or employee of any person, must hold a sampler'slicense.
(b) A dairy processing plant, receiving station, other factory,person, or person's agent, that receives, buys, or pays for milk orcream on the basis of the amount of butterfat contained in the milkor cream shall employ a licensed sampler to supervise and isresponsible for the sampling and weighing of milk or cream to obtaina representative sample and make and record correct weights of thewhole amount of milk or cream delivered.
(c) A milk sampler's license or cream sampler's license shall beissued 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 iscompetent 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 uponrecommendation of the board if the licensee fails to comply with therules under which the license was granted.
(d) A license to test milk or cream includes the authority tosample and weigh milk or cream.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-21
Temporary permit for samplers and testers
Sec. 21. (a) A person who desires to test or sample and weigheither milk or cream before taking the examination must apply to thecreamery license division for a temporary permit.
(b) A temporary permit entitles the holder to test or sample andweigh milk or cream until the date specified for taking theexamination. A permit holder has the same responsibilities as alicensee in complying with this chapter.
(c) An application for a temporary permit to test must beaccompanied by the payment of a fee of thirty dollars ($30). Anapplication for a temporary permit to sample or weigh must beaccompanied by the payment of a fee of twenty dollars ($20). Thefee shall pay for the first regular tester's or sampler's license issuedto the applicant. If the applicant fails the examination or discontinueswork before the examination can be given, the applicant forfeits thefee paid for the temporary permit.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-22
Plant license
Sec. 22. The creamery license division shall issue a plant licenseto every dairy processing plant, receiving station, milk factory,cheese factory, condensery, ice cream factory, or other person thatcomplies with section 18 of this chapter and pays to the creamerylicense division seventy-five dollars ($75) plus a fee of:
(1) twelve dollars ($12) per million on milk receipts of at leastten million (10,000,000) but not more than fifty million(50,000,000) pounds;
(2) nine dollars ($9) per million on milk receipts of at least fiftymillion (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 onehundred million (100,000,000) pounds;
during the preceding year ending December 31. The maximum feemay not exceed one thousand dollars ($1,000) regardless of volumereceived. Out-of-state milk receipts are exempt from the payment offees.
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 othermilk or cream processing plant upon payment to the creamery licensedivision 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'slicense 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'slicense if the applicant:
(1) complies with section 20 of this chapter; and
(2) pays to the creamery license division a fee of ten dollars($10).
As added by P.L.2-2008, SEC.9.
IC 15-18-2-26
License expiration
Sec. 26. A license issued under this chapter expires March 31following its issue. A license is not transferable.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-27
Glassware examining fees
Sec. 27. The board shall establish fees for examining glasswarebased on the actual cost.
As added by P.L.2-2008, SEC.9.
IC 15-18-2-28
Fees on milk purchases; charge-back to producers
Sec. 28. (a) To secure sufficient funds to implement this chapterand to ensure accuracy to milk and cream producers in the weighing,sampling, and testing of milk and cream:
(1) a dairy processing plant;
(2) a receiving station;
(3) a milk factory;
(4) a milk distributor;
(5) a cheese factory;
(6) a condensery;
(7) an ice cream factory;
(8) any other processing plant; or (9) a person purchasing fluid milk or cream in Indiana directlyfrom producers or a producers' association or otherwisereceiving milk directly from producers;
shall, during the month of May of each year, pay to the treasurer ofPurdue University for the fluid milk or cream delivered during themonth of May a sum equal in amount to two and one-half cents($.025) per one hundred (100) pounds for all fluid milk purchasedduring that time. For the financing of the producers' share of thisprogram, the processor shall charge the two and one-half cents($.025) per one hundred (100) pounds back to the producerassociation or cooperative. For those patrons who do not belong toproducer associations or cooperatives, the processor shall make thischarge directly to the individual producer. Butterfat purchased fromproducers other than in the form of fluid milk shall be converted forthe 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 shallmake reports of all purchases of milk and cream at the times and inthe 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 andcream 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 madeto the treasurer of Purdue University not later than June 20 of eachyear. The money received is for the exclusive use of the creamerylicense 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 allplants and stations.
(3) The examination of applicants for licenses.
(4) Disseminating information and instruction by means ofpublication.
(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 feerequired under this chapter, the board shall assess a late fee of thegreater 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 asprovided in this chapter shall be paid to the treasurer of PurdueUniversity. The Purdue University board of trustees shall expend thecollected fees, on proper vouchers to be filed with the auditor ofstate, in meeting all necessary expenses in carrying out this chapter,including the employment of inspectors, traveling expenses ofinspectors, expenses of issuing publications, and glasswareequipment, testing device, and factory inspection as provided in thischapter.
(b) The treasurer's annual report to the governor must include aclassified report showing the total receipts and expenditures of allfees 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 insection 18 of this chapter (dairy processing plant and receivingstation licenses) shall report before April 1 of each year the amountof milk or cream, or both, purchased during the last calendar yearwith the amount of butterfat in the milk or cream. Any other data orstatistics desired by the creamery license division pertaining to thepurchase of milk or cream must be reported to the creamery licensedivision by the person according to and on forms furnished by thecreamery license division. A person providing information under thissection shall keep complete and accurate records of the person'sbusiness.
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 thecreamery license division may do the following:
(1) Enter at all reasonable hours all places where milk or creamis being stored, bottled, or processed, or where milk or cream isbeing bought, sold, or handled, to inspect records pertaining tothe purchase and payment of milk or cream.
(2) Inspect and copy the records pertaining to the purchase andpayment of milk or cream.
(3) Take testimony to ascertain facts pertaining to the purchaseand payment of milk or cream that in the judgment of thecreamery license division are necessary to administer thischapter.
(b) The board may determine the truth and accuracy of the books,records, papers, documents, accounts, and reports required to befurnished 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 anemployee of a person may not interfere with an authorized inspectorof 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 dairyprocessing plant, a receiving station, a milk factory, a cheese factory,a condensery, an ice cream factory, or other processing plant that issubject to inspection or entry by an inspector of the creamery licensedivision may not refuse to allow or may not obstruct an inspector'sentry 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 aClass A misdemeanor.
As added by P.L.2-2008, SEC.9.