BP BHEAD INT S

AN ACT Relating to milk and milk products; amending RCW 15.32.010, 15.32.100, 15.32.110, 15.32.160, 15.32.510, 15.32.530, 15.32.580, 15.32.582, 15.32.610, 15.36.040, 15.36.070, 15.36.080, 15.36.100, 15.36.110, 15.36.300, 15.36.345, 15.36.470, 15.36.490, 15.36.500, 15.36.540, and 69.07.040; reenacting and amending RCW 15.36.115; adding new sections to chapter 15.36 RCW; recodifying RCW 15.36.005, 15.36.011, 15.36.040, 15.32.010, 15.36.030, 15.36.055, 15.36.060, 15.36.070, 15.36.080, 15.36.100, 15.32.100, 15.32.110, 15.36.110, 15.36.115, 15.36.120, 15.36.140, 15.36.150, 15.32.160, 15.36.260, 15.36.265, 15.36.300, 15.36.345, 15.32.410, 15.32.420, 15.36.420, 15.32.450, 15.32.460, 15.36.460, 15.36.470, 15.36.480, 15.36.490, 15.36.500, 15.36.510, 15.32.510, 15.36.520, 15.36.530, 15.32.530, 15.36.540, 15.36.550, 15.32.550, 15.32.580, 15.32.582, 15.32.584, 15.32.600, 15.36.600, 15.32.610, 15.32.710, 15.32.720, 15.32.730, 15.32.900, 15.32.910, 15.36.105, and 15.36.107; and repealing RCW 15.32.051, 15.32.060, 15.32.070, 15.32.080, 15.32.090, 15.32.120, 15.32.130, 15.32.140, 15.32.150, 15.32.220, 15.32.250, 15.32.260, 15.32.330, 15.32.340, 15.32.360, 15.32.380, 15.32.430, 15.32.440, 15.32.490, 15.32.500, 15.32.540, 15.32.560, 15.32.570, 15.32.590, 15.32.620, 15.32.630, 15.32.660, 15.32.670, 15.32.680, 15.32.700, 15.32.740, 15.32.750, 15.32.755, 15.32.760, 15.32.770, 15.32.780, 15.32.790, 15.36.020, 15.36.075, 15.36.090, 15.36.155, 15.36.160, 15.36.165, 15.36.170, 15.36.175, 15.36.180, 15.36.185, 15.36.190, 15.36.195, 15.36.200, 15.36.205, 15.36.210, 15.36.215, 15.36.220, 15.36.225, 15.36.230, 15.36.235, 15.36.240, 15.36.245, 15.36.250, 15.36.255, 15.36.270, 15.36.280, 15.36.320, 15.36.325, 15.36.330, 15.36.335, 15.36.340, 15.36.350, 15.36.355, 15.36.360, 15.36.365, 15.36.370, 15.36.375, 15.36.380, 15.36.385, 15.36.390, 15.36.395, 15.36.400, 15.36.405, 15.36.410, 15.36.415, 15.36.425, 15.36.430, 15.36.440, 15.36.580, 15.36.590, 15.36.595, and 15.36.900.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. This chapter is intended to enact state legislation that safeguards the public health and promotes public welfare by (1) protecting the consuming public from milk or milk products that are (A) unsafe (B) produced under unsanitary conditions (C) do not meet bacterial standards under the PMO (D) below The Quality Standards under Title 21 C.F.R. or administrative rules and orders adopted under this chapter, and (2) requiring licensing of all dairy processing plants as defined in this chapter.

Sec. 2. RCW 15.32.010 and 1989 c 354 s 1 are each amended to read as follows:

For the purpose of chapter ((~~15.32~~)) 15.36 RCW:

((~~"Supervisor" means the supervisor of the dairy and food division;~~

~~"Dairy" means a place where milk from one or more cows or goats is produced for sale;~~

~~"Creamery" means a structure wherein milk or cream is manufactured into butter for sale;~~

~~"Milk plant" means a structure wherein milk is bottled, pasteurized, clarified, or otherwise processed;~~

~~"Cheese factory" means a structure where milk is manufactured into cheese;~~

"Factory of milk products" means a structure, other than a creamery, milk plant, cheese factory, milk condensing plant or ice cream factory, where milk or any of its products is manufactured, changed, or compounded into another article, or where butter is cut or wrapped; except freezing of ice cream from a mix compounded in a licensed creamery, milk plant, cheese factory, milk condensing plant or ice cream factory;

~~"Milk condensing plant" means a structure where milk is condensed or evaporated;~~

"Ice cream factory" means a structure which complies with the sanitary requirements of RCW 15.32.080, where ice cream mix is produced for sale or distribution, and may include freezing such mix into ice cream;

~~"Counter ice cream freezer" means counter type freezing machines usually operated in retail establishments;~~

~~"Sterilized milk" means milk that has been heated under six pounds of steam pressure and maintained thereat for not less than twenty minutes;~~

~~"Modified milk" means milk that has been altered in composition to conform to special nutritional requirements;~~

~~"Milk product" means an article manufactured or compounded from milk, whether or not the milk conforms to the standards and definitions herein;~~

"Milk byproduct" means a product of milk derived or made therefrom after the removal of the milk fat or milk solids in the process of making butter or cheese, and includes skimmed milk, buttermilk, whey, casein, and milk powder;

"Butter" means the product made by gathering the fat of pasteurized milk or cream into a mass containing not less than eighty percent of milk fat, and which also contains a small portion of other milk constituents, with or without harmless coloring matter;

"Renovated butter" means butter that has been reduced to a liquid state by melting and drawing off the liquid or butter oil, and has thereafter been churned or manipulated in connection with milk, cream, or other product of milk;

"Reworked butter" means the product obtained by mixing or rechurning butter made on different dates or at different places: PROVIDED, That the mixing of remnants from one day's churning or cutting with butter from the churning of the same creamery on the next day shall not make the product reworked butter;

"Butter substitute" means a compound of vegetable oils with milk fats or milk solids and all compounds of milk fats or milk solids with butter when the compound contains less than eighty percent of milk fat;

"Oleomargarine" means all manufactured substances, extracts, mixtures, or compounds, including mixtures or compounds with butter, known as oleomargarine, oleo, oleomargarine oil, butterine, lardine, suine, and neutral, and includes all lard and tallow extracts and mixtures and compounds of tallow, beef fat, suet, lard, lard oil, intestinal fat and offal fat made in imitation or semblance of butter or calculated or intended to be sold as butter;

~~"Cheese" means any of the cheeses as described in Title 21 of the code of federal regulations part 133;~~

"Imitation cheese" means any article, substance, or compound, other than that produced from pure milk or from the cream from pure milk, which is made in the semblance of cheese and designed to be sold or used as a substitute for cheese. The use of salt, lactic acid, or pepsin, and harmless coloring matter in cheese shall not render the true product an imitation. Nothing herein shall prevent the use of pure skimmed milk in the manufacture of cheese;))

"Milk vendor" or "milk dealer" means any person who sells, furnishes or delivers milk, skimmed milk, buttermilk, or cream in any manner.

"Milk processing" means the handling or processing of milk in any manner in preparation for sale as food, as defined in chapter 69.04 RCW. Milk processing does not include milking or producing milk on a dairy farm that is shipped to a milk plant for further processing.

"Milk processing plant" includes but is not limited to a premises, plant, establishment, building, room, area, facility, and appurtences thereto in whole or in part where milk is prepared, packaged, or processed in any manner for distribution or sale by retail outlets, restaurants, and any such facility selling or distributing to the ultimate consumer. This includes fluid milk products, cheese, whey, ice cream, cream, condensed milk, yogurt, frozen yogurt, any other products characterized by their milk content, and other dairy products.

"Sale" means selling, offering for sale, holding for sale, preparing for sale, trading, bartering, offering a gift as an inducement for sale of, and advertising for sale in any media.

All dairy products mentioned in this chapter mean those fit or used for human consumption.

Sec. 3. RCW 15.32.100 and 1991 c 109 s 1 are each amended to read as follows:

Every person who sells, offers or exposes for sale, barters, or exchanges any milk or milk product as defined by rule under chapter 15.36 RCW must have a milk vendor's license to do so. The license shall not include retail stores or restaurants that purchase milk prepackaged or bottled elsewhere for sale at retail or establishments that sell milk only for consumption in such establishment. Such license, issued by the director on application and payment of a fee of ten dollars, shall contain the license number, and name, residence and place of business, if any, of the licensee. It shall be nontransferable, shall expire annually on a date set by rule by the director, and may be suspended or revoked by the director, upon reasonable notice to the licensee, for any violation of or failure to comply with any provision of this chapter or any rule or regulation, or order of the department, or any officer or inspector thereof. License fees shall be prorated where necessary to accommodate staggering of expiration dates of a license or licenses.

Sec. 4. RCW 15.32.110 and 1991 c 109 s 2 are each amended to read as follows:

((Every creamery, milk plant, shipping station, milk-condensing plant, factory of milk products, and other person who receives or purchases milk or cream in bulk and by weight or measure or upon the basis of milk fat contained therein shall obtain annually a license to do so. The license shall be issued by the director upon payment of ten dollars and his being satisfied that the building or premises where the milk or cream is to be received is maintained in a sanitary condition in accordance with the provisions of this chapter; except, such license shall not be required of persons purchasing milk or cream for their own consumption nor of hotels, restaurants, boarding houses, eating houses, bakeries, or candy manufacturing plants.

The license shall expire annually on a date set by rule by the director, unless sooner revoked by the director, upon reasonable notice to the licensee, for a failure to comply with the provisions of this chapter, and the rules and regulations issued hereunder. License fees shall be prorated where necessary to accommodate staggering of expiration dates of a license or licenses.)) It shall be unlawful for any person to operate a milk processing plant or process milk without first having obtained an annual milk processing plant license from the department, which shall expire on a date set by rule by the director. License fees shall be prorated where necessary to accommodate staggering of expiration dates. Application for a license shall be on a form prescribed by the director and accompanied by a twenty-five dollar annual license fee. Such application shall include the full name of the applicant for the license and the location of the milk processing plant he or she intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation shall be given on the application. Such application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant. The application shall also specify the method or nature of processing operation or preservation of that milk and any other necessary information. Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted hereunder by the department, the applicant shall be issued a license or renewal thereof.

Licenses shall be issued to cover only those products, processes, and operations specified in the license application and approved for licensing. Wherever a license holder wishes to engage in processing a type of milk product that is different than the type specified on the application supporting the licensee's existing license and processing that type of food product would require a major addition to or modification of the licensee's processing facilities or has a high potential for harm, the licensee shall submit an amendment to the current license application. In such a case, the licensee may engage in processing the new type of milk product only after the amendment has been approved by the department.

A licensee under this section shall not be required to obtain a milk vendor's license under this chapter or a food processing plant license under chapter 69.07 RCW.

NEW SECTION. Sec. 5. The director may, subsequent to a hearing thereon, suspend or revoke a milk processing plant license issued under this chapter if the director determines that an applicant has committed any of the following acts:

(1) Refused, neglected or failed to comply with the provisions of this chapter, the rules adopted under this chapter, or any lawful order of the director.

(2) Refused, neglected or failed to keep and maintain records required by this chapter, or to make such records available when requested under the provisions of this chapter.

(3) Refused the department access to a portion or area of the milk processing plant or other facility regulated under this chapter for the purpose of carrying out the provisions of this chapter.

(4) Refused the department access to records required to be kept under the provisions of this chapter.

(5) Refused, neglected, or failed to comply with any provisions of chapter 69.04 RCW, Washington Food, Drug, and Cosmetic Act, or any rules adopted under chapter 69.04 RCW.

The provisions of this section requiring that a hearing be conducted before an action may be taken against a license do not apply to an action taken under section 6 of this act.

NEW SECTION. Sec. 6. (1) Whenever the director finds a milk processing plant operating under conditions that constitute an immediate danger to public health, safety, or welfare or whenever the licensee or an employee of the licensee actively prevents the director or the director's representative, during an onsite inspection, from determining whether such a conditions exists, the director may summarily suspend, pending a hearing, a license provided for in this chapter.

(2) Whenever a license is summarily suspended, the holder of the license shall be notified in writing that the license is, upon service of the notice, immediately suspended and that prompt opportunity for a hearing will be provided.

(3) Whenever a license is summarily suspended, processing operations shall immediately cease. However, the director may reinstate the license when the condition that caused the suspension has been abated to the director's satisfaction.

NEW SECTION. Sec. 7. The adoption of rules under the provisions of this chapter, or the holding of a hearing in regard to a license issued or that may be issued under the provisions of this chapter shall be subject to the applicable provisions of chapter 34.05 RCW, the Administrative Procedure Act.

Sec. 8. RCW 15.32.160 and 1981 c 321 s 1 are each amended to read as follows:

It is unlawful to sell, offer for sale, or deliver:

(1) Milk or products produced from milk from cows ((or)), goats, or sheep affected with disease or of which the owner thereof has refused official examination and tests for disease: or

(2) Colostrum milk, meaning that produced within ten days before or seven days after parturition, except that colostrum milk from cows that have been tested for brucellosis within sixty days of parturition may be made available to persons having multiple sclerosis, or other persons acting on their behalf, who, at the time of the initial sale, present a form, signed by a licensed physician, certifying that the intended user has multiple sclerosis and that the user releases the provider of the milk from liability resulting from the consumption of the milk. Colostrum milk provided under this section is exempt from meeting the standards for grade A raw milk required by this chapter ((~~15.36 RCW~~)).

(3) The department of agriculture shall adopt rules to carry out this section. The rules shall include but not be limited to establishing standards requiring hyper-immunization.

Sec. 9. RCW 15.32.510 and 1989 c 354 s 9 are each amended to read as follows:

The director may appoint one or more ((inspectors of milk, dairies, and dairy products, who are graduates of a recognized dairy school, or have completed a college course in dairying. In the absence of completion of a dairy course, the director may review a candidate's qualifications and determine eligibility)) food safety officers who meet the requirements under the job specifications for food safety officer positions.

The ((~~inspectors~~)) food safety officers may enter any place where milk and its products are produced, processed, stored ((~~and~~)), or kept for sale and any conveyance used to transport milk or cream, and take samples for analysis.

Sec. 10. RCW 15.32.530 and 1989 c 354 s 11 are each amended to read as follows:

((~~An inspector who obtains~~)) The Washington department of agriculture, after obtaining a sample of milk for analysis, shall within ((~~ten~~)) fourteen days after obtaining the result of the analysis, send the result to the person from whom the sample was taken or to the person responsible for the condition of the milk.

Sec. 11. RCW 15.32.580 and 1963 c 58 s 6 are each amended to read as follows:

Any person who ((~~tests milk or cream or the fluid derivatives thereof, purchased, received, or sold on the basis of milk fat, nonfat milk solids, or other components contained therein, or who~~)) takes samples of milk or cream or fluid derivatives thereof, on which sample tests are to be made as a basis of payment, or who grades, weighs, or measures milk or cream or the fluid derivatives thereof, the grade, weight, or measure to be used as a basis of payment, or who operates equipment wherein milk or products thereof are pasteurized must hold a dairy technician's license. Such license shall be limited to those functions which the licensee has been found qualified by examination to perform. Before issuing the license the director shall examine the applicant as to his or her qualifications for the functions for which application has been made.

Sec. 12. RCW 15.32.582 and 1963 c 58 s 7 are each amended to read as follows:

Application for a license as a dairy technician to perform one or more of the functions of a ((~~tester,~~)) sampler, weigher, grader, or pasteurizer shall be made upon forms to be provided and furnished by the director, and shall be filed with the department. The director may issue a temporary permit to the applicant to perform one or more of the functions of a ((~~tester,~~)) sampler, weigher, grader, or pasteurizer for such period as may be prescribed and stated in said permit, not to exceed sixty days, but such permit shall not be renewed so as to extend the period beyond sixty days.

Sec. 13. RCW 15.32.610 and 1963 c 58 s 11 are each amended to read as follows:

No person shall employ a ((~~tester,~~)) sampler, weigher, grader, or pasteurizer who is not licensed as a dairy technician((~~; or refuse to allow or fail to assist the director or his agent in the examination of the reports referred to in RCW 15.32.590~~)).

((~~Whoever~~)) A person who violates the provisions of this section ((~~or RCW 15.32.590~~)) may be fined not less than ((~~twenty-five~~)) two hundred fifty nor more than one ((~~hundred~~)) thousand dollars, and his or her license hereunder revoked or suspended subject to a hearing as provided under chapter 34.05 RCW.

Sec. 14. RCW 15.36.040 and 1961 c 11 s 15.36.040 are each amended to read as follows:

A "milk producer" is any person or organization who owns or controls one or more cows a part or all of the milk or milk products from which is sold or offered for sale.

A "milk distributor" is any person who offers for sale or sells to another any milk or milk products for human consumption as such and shall include a milk producer selling or offering for sale milk or milk products at the dairy farm.

A ((~~"dairy" or~~)) "dairy farm" is any place or premises where one or more cows, goats, or sheep are kept, a part or all of the milk or milk products from which is sold or offered for sale.

A "milk hauler" is any person, other than a milk producer or a milk plant employee, who transports milk or milk products to or from a milk plant or a collecting point.

((A "milk plant" is any place, premises or establishment where milk or milk products are collected, handled, processed, stored, bottled, pasteurized, or prepared for distribution, except an establishment where milk or milk products are sold at retail only.))

Sec. 15. RCW 15.36.070 and 1961 c 11 s 15.36.070 are each amended to read as follows:

No person shall produce, sell, offer, or expose for sale, or have in possession with intent to sell, ((~~in the fluid state for direct consumption as such,~~)) any milk or milk product which is adulterated, misbranded, or ungraded. It shall be unlawful for any person, elsewhere than in a private home, to have in possession any adulterated, misbranded, or ungraded milk or milk products: PROVIDED, That in an emergency the sale of ungraded milk or milk products may be authorized by the director, in which case they shall be labeled "ungraded."

Adulterated, misbranded, and/or ungraded milk or milk products may be impounded and disposed of by the director.

Sec. 16. RCW 15.36.080 and 1989 c 354 s 16 are each amended to read as follows:

It shall be unlawful for any person to transport, or to sell, or offer for sale, or to have in storage where milk or milk products are sold or served, any milk or milk product defined in this chapter, who does not possess an appropriate ((~~permit~~)) license from the director.

Every milk producer, milk distributor, milk hauler, and operator of a milk plant shall secure a ((~~permit~~)) grade A milk license to conduct such operation as defined in this chapter. Only a person who complies with the requirements of this chapter shall be entitled to receive and retain such a ((~~permit. Permits~~)) license. Grade A milk licenses shall not be transferable with respect to persons and/or locations.

((~~Such a permit~~)) Grade A licenses issued under this section may be ((~~temporarily~~)) suspended by the director upon violation by the holder of any of the terms of this chapter, or for interference with the director in the performance of his or her duties, or revoked after an opportunity for a hearing by the director upon serious or repeated violations or after the grade A milk license has been suspended for thirty continuous days without correction of the items causing the suspension.

Sec. 17. RCW 15.36.100 and 1961 c 11 s 15.36.100 are each amended to read as follows:

Prior to the issuance of a ((~~permit~~)) grade A milk license and at least once every six months the director shall inspect all dairy farms ((~~and~~)). All milk plants((~~: PROVIDED, That the director may accept the results of periodic industry inspections of producer dairies if such inspections have been officially checked periodically and found satisfactory~~)) shall be inspected prior to grade A milk license issuance and at least once every three months including pasteurizer tests as required by the pasteurized milk ordinance. In case the director discovers the violation of any item of ((~~sanitation~~)) grade requirement, he or she shall make a second inspection after a lapse of such time as he or she deems necessary for the defect to be remedied, but not before the lapse of three days, and the second inspection shall be used in determining compliance with the grade requirements of this chapter. Any violation of the same requirement of this chapter on such reinspection shall call for ((~~immediate degrading or~~)) summary suspension of ((~~permit~~)) the grade A milk license subject to prompt opportunity for hearing as provided under chapter 34.05 RCW.

One copy of the inspection report detailing the grade requirement violations shall be posted by the director in a conspicuous place upon an inside wall of one of the dairy farm or milk plant buildings, and said inspection report shall not be defaced or removed by any person except the director. Another copy of the inspection report shall be filed with the records of the director.

Every milk producer and distributor shall upon the request of the director permit him or her access to all parts of the establishment, and every distributor shall furnish the director, upon his or her request, for official use only, samples of any milk product for laboratory analysis, a true statement of the actual quantities of milk and milk products of each grade purchased and sold, together with a list of all sources, records of inspections and tests, and recording thermometer charts.

Sec. 18. RCW 15.36.110 and 1989 c 354 s 17 are each amended to read as follows:

During each six months period at least four samples of milk and cream from each dairy farm and each milk plant shall be taken on separate days and examined by the director: PROVIDED, That in the case of raw milk for pasteurization the director may accept the results of nonofficial laboratories which have been officially checked periodically and found satisfactory. Samples of other milk products may be taken and examined by the director as often as he deems necessary. Samples of milk and milk products from stores, cafes, soda fountains, restaurants, and other places where milk or milk products are sold shall be examined as often as the director may require. Bacterial plate counts, direct microscopic counts, coliform determinations, phosphatase tests and other laboratory tests shall conform to the procedures in the current edition of "Standard Methods For The Examination Of Dairy Products," recommended by the American public health association. Examinations may include such other chemical and physical determinations as the director may deem necessary for the detection of adulteration. Samples may be taken by the director at any time prior to the final delivery of the milk or milk products. All proprietors of cafes, stores, restaurants, soda fountains, and other similar places shall furnish the director, upon his or her request, with the name of all distributors from whom their milk and milk products are obtained. ((~~Bio-assays of the vitamin D content of vitamin D milk shall be made when required by the director in a laboratory approved by him for such examinations.~~))

If two of the last four consecutive bacterial counts, somatic cell counts, coliform determinations, or cooling temperatures, taken on separate days, exceed the standard for milk or milk products, the director shall send written notice thereof to the person concerned. This notice shall remain in effect so long as two of the last four consecutive samples exceed the limit of the standard. An additional sample shall be taken within twenty-one days of the sending of the notice, but not before the lapse of three days, except sixty days must lapse before an official somatic cell count can be taken. The director shall degrade or suspend the grade A ((~~permit~~)) milk license whenever the standard is again violated so that three of the last five consecutive samples exceed the limit of the standard. A grade A ((~~permit~~)) milk license shall subsequently be reinstated in notice status upon receipt of sample results that are within the standard for which the suspension occurred.

In case of violation of the phosphatase test requirements, the cause of underpasteurization shall be determined and removed before milk or milk products from this plant can again be sold as pasteurized milk or milk products.

Sec. 19. RCW 15.36.115 and 1989 c 354 s 18 and 1989 c 175 s 48 are each reenacted and amended to read as follows:

(1) If the results of an antibiotic, pesticide, or other drug residue test are above the actionable level established in the pasteurized milk ordinance published by the United States public health service and determined using procedures set forth in the current edition of "Standard Methods for the Examination of Dairy Products," ((a producer holding a grade A permit is subject to a civil penalty. The penalty shall be in an amount equal to one-half the value of the sum of the volumes of milk equivalent produced under the permit on the day prior to and the day of the adulteration. The value of the milk shall be computed by the weighted average price for the federal market order under which the milk is delivered.

(2) The penalty is imposed by the department giving a written notice which is either personally served upon or transmitted by certified mail, return receipt requested, to the person incurring the penalty. The notice of the civil penalty shall be a final order of the department unless, within fifteen days after the notice is received, the person incurring the penalty appeals the penalty by filing a notice of appeal with the department. If a notice of appeal is filed in a timely manner, a hearing shall be conducted on behalf of the department by the office of administrative hearings in accordance with chapters 34.05 and 34.12 RCW and, to the extent they are not inconsistent with this subsection, the provisions of RCW 15.36.580. At the conclusion of the hearing, the department shall determine whether the penalty should be affirmed, and, if so, shall issue a final order setting forth the civil penalty assessed, if any. The order may be appealed to superior court in accordance with chapter 34.05 RCW)) the milk from which the sample was taken is deemed adulterated and may not be sold. Tests performed for antibiotic, pesticide, or other drug residues by a state or certified industry laboratory of a milk sample drawn by a department official or a licensed dairy technician shall be admitted as prima facie evidence of the presence or absence of an antibiotic, pesticide, or other drug residue.

(((3) Any penalty imposed under this section is due and payable upon the issuance of the final order by the department. The penalty shall be deducted by the violator's marketing organization from the violator's final payment for the month following the issuance of the final order. The department shall promptly notify the violator's marketing organization of any penalties contained in the final order.

(4) All penalties received or recovered from violations of this section shall be remitted monthly by the violator's marketing organization to the Washington state dairy products commission and deposited in a revolving fund to be used solely for the purposes of education and research. No appropriation is required for disbursements from this fund.

~~(5)~~)) (2) In case of a violation of the antibiotic, pesticide, or other drug residue test requirements, an investigation shall be made to determine the cause of the residue which shall be corrected. Additional samples shall be taken as soon as possible and tested as soon as feasible for antibiotic, pesticide, or other drug residue by the department or a certified laboratory. After the notice has been received by the producer and the results of a test of such an additional sample indicate that residues are above the actionable level or levels referred to in subsection (1) of this section, the producer's milk may not be sold until a sample is shown to be below the actionable levels established for the residues.

Sec. 20. RCW 15.36.300 and 1989 c 354 s 19 are each amended to read as follows:

Grade C raw milk is raw milk which violates any of the requirements of grade A raw milk as set forth in the pasteurized milk ordinance and RCW 15.36.540. The director shall adopt rules setting standards and requirements for production of grade C milk.

Sec. 21. RCW 15.36.345 and 1961 c 11 s 15.36.345 are each amended to read as follows:

The various milk-plant operations shall be so located and conducted as to prevent any contamination of the milk or of the cleaned equipment. All means necessary for the elimination of flies, other insects and rodents shall be used. There shall be separate rooms for (1) the ((~~pasteurization,~~)) processing, cooling, and bottling operations, and (2) the washing and bactericidal treatment of containers. ((Cans of raw milk shall not be unloaded directly into the pasteurizing room. Pasteurized milk or milk products shall not be permitted to come in contact with equipment with which unpasteurized milk or milk products have been in contact, unless such equipment has first been thoroughly cleaned and subjected to bactericidal treatment.)) Rooms in which milk, milk products, cleaned utensils, or containers are handled or stored shall not open directly into any stable or living quarters. The ((~~pasteurization~~)) plant shall be used for no other purposes than the processing of milk and milk products and the operations incident thereto, except as may be approved by the director.

Sec. 22. RCW 15.36.470 and 1989 c 354 s 22 are each amended to read as follows:

No milk or milk products shall be sold to the final consumer or to restaurants, soda fountains, grocery stores, or similar establishments except grade A milk pasteurized, or grade A milk-raw, and the director may revoke the permit of any milk distributor failing to qualify for one of the above grades, or in lieu thereof may degrade his or her product to grade C and permit its sale during a period not exceeding thirty days or in emergencies during such longer period as he may deem necessary.

Sec. 23. RCW 15.36.490 and 1961 c 11 s 15.36.490 are each amended to read as follows:

Except as permitted in this section, no milk producer or distributor shall transfer milk or milk products from one container to another on the street, or in any vehicle, or store, or in any place except a bottling or milk room especially used for that purpose.

Milk and milk products sold in the distributor's containers in quantities less than one gallon shall be delivered in standard milk bottles or in single-service containers. It shall be unlawful for hotels, soda fountains, restaurants, groceries, hospitals, and similar establishments to sell or serve any milk or milk products except in the individual original container in which it was received from the distributor or from a bulk container equipped with an approved dispensing device: PROVIDED, That this requirement shall not apply to cream consumed on the premises, which may be served from the original bottle or from a dispenser approved for such service.

It shall be unlawful for any hotel, soda fountain, restaurant, grocery, hospital, or similar establishment to sell or serve any milk or milk product which has not been maintained, while in its possession, at a temperature of ((~~fifty~~)) forty-five degrees Fahrenheit or less. If milk or milk products are stored in water for cooling, the pouring lip of the container shall not be submerged.

It shall be the duty of all persons to whom milk or milk products are delivered to clean thoroughly the containers in which such milk or milk products are delivered before returning such containers. Apparatus, containers, equipment, and utensils used in the handling, storage, processing, or transporting of milk or milk products shall not be used for any other purpose without the permission of the director.

The delivery of milk or milk products to and the collection of milk or milk products containers from residences in which cases of communicable disease transmissible through milk supplies exists shall be subject to the special requirements of the health officer.

((~~Homogenized milk or homogenized cream shall not be mixed with milk or cream which has not been homogenized if sold or offered for sale as fluid milk or cream.~~))

Sec. 24. RCW 15.36.500 and 1961 c 11 s 15.36.500 are each amended to read as follows:

Milk and milk products from outside the state may not be sold in the state of Washington unless produced and/or pasteurized under provisions equivalent to the requirements of this chapter and pasteurized milk ordinance: PROVIDED, That the director shall satisfy himself that the authority having jurisdiction over the production and processing is properly enforcing such provisions.

Sec. 25. RCW 15.36.540 and 1989 c 354 s 24 are each amended to read as follows:

Except as otherwise provided in this chapter, ((~~this law shall be enforced by~~)) the director ((~~in accordance with the interpretation contained in the food and drug administration~~)) may by reference adopt the pasteurized milk ordinance((~~: PROVIDED, That~~)) by rule to establish requirements for grade A pasteurized and grade A raw milk. The director may ((~~promulgate~~)) adopt rules ((~~covering any standard set forth in the pasteurized milk ordinance if the rules are consistent with the pasteurized milk ordinance except the~~)) establishing standards ((~~may be~~)) for grade A pasteurized and grade A raw milk that are more stringent than the pasteurized milk ordinance based upon current industry or public health information for the enforcement of this chapter whenever he determines that any such rules are necessary to carry out the purposes of RCW ((~~15.32.120,~~)) 15.36.011 as recodified by this act, ((~~15.36.075,~~)) 15.36.540 as recodified by this act, and 15.36.600 as recodified by this act.

Sec. 26. RCW 69.07.040 and 1992 c 160 s 3 are each amended to read as follows:

It shall be unlawful for any person to operate a food processing plant or process foods in the state without first having obtained an annual license from the department, which shall expire on a date set by rule by the director. License fees shall be prorated where necessary to accommodate staggering of expiration dates. Application for a license shall be on a form prescribed by the director and accompanied by the license fee. The license fee is determined by computing the gross annual sales for the accounting year immediately preceding the license year. If the license is for a new operator, the license fee shall be based on an estimated gross annual sales for the initial license period.

If gross annual sales are: The license fee is:

$0 to $50,000 $50.00

$50,001 to $500,000 $100.00

$500,001 to $1,000,000 $200.00

$1,000,001 to $5,000,000 $350.00

$5,000,001 to $10,000,000 $500.00

Greater than $10,000,000 $750.00

Such application shall include the full name of the applicant for the license and the location of the food processing plant he or she intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation shall be given on the application. Such application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant. The application shall also specify the type of food to be processed and the method or nature of processing operation or preservation of that food and any other necessary information. Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted hereunder by the department, the applicant shall be issued a license or renewal thereof.

Licenses shall be issued to cover only those products, processes, and operations specified in the license application and approved for licensing. Wherever a license holder wishes to engage in processing a type of food product that is different than the type specified on the application supporting the licensee's existing license and processing that type of food product would require a major addition to or modification of the licensee's processing facilities or has a high potential for harm, the licensee shall submit an amendment to the current license application. In such a case, the licensee may engage in processing the new type of food product only after the amendment has been approved by the department.

If upon investigation by the director, it is determined that a person is processing food for retail sale and is not under permit, license, or inspection by a local health authority, then that person may be considered a food processor and subject to the provisions of this chapter. A licensee who has obtained a milk processing plant license under chapter 15.36 RCW shall not be required to obtain a license under this chapter.

NEW SECTION. Sec. 27. The following acts or parts of acts are each repealed:

(1) RCW 15.32.051 and 1989 c 354 s 2 & 1963 c 58 s 2;

(2) RCW 15.32.060 and 1961 c 11 s 15.32.060;

(3) RCW 15.32.070 and 1961 c 11 s 15.32.070;

(4) RCW 15.32.080 and 1989 c 354 s 3 & 1961 c 11 s 15.32.080;

(5) RCW 15.32.090 and 1961 c 11 s 15.32.090;

(6) RCW 15.32.120 and 1969 ex.s. c 102 s 5 & 1961 c 11 s 15.32.120;

(7) RCW 15.32.130 and 1961 c 11 s 15.32.130;

(8) RCW 15.32.140 and 1989 c 354 s 5 & 1961 c 11 s 15.32.140;

(9) RCW 15.32.150 and 1961 c 11 s 15.32.150;

(10) RCW 15.32.220 and 1989 c 354 s 6 & 1961 c 11 s 15.32.220;

(11) RCW 15.32.250 and 1961 c 11 s 15.32.250;

(12) RCW 15.32.260 and 1961 c 11 s 15.32.260;

(13) RCW 15.32.330 and 1961 c 11 s 15.32.330;

(14) RCW 15.32.340 and 1961 c 11 s 15.32.340;

(15) RCW 15.32.360 and 1961 c 11 s 15.32.360;

(16) RCW 15.32.380 and 1961 c 11 s 15.32.380;

(17) RCW 15.32.430 and 1973 c 31 s 1 & 1961 c 11 s 15.32.430;

(18) RCW 15.32.440 and 1961 c 11 s 15.32.440;

(19) RCW 15.32.490 and 1961 c 11 s 15.32.490;

(20) RCW 15.32.500 and 1989 c 354 s 8 & 1961 c 11 s 15.32.500;

(21) RCW 15.32.540 and 1961 c 11 s 15.32.540;

(22) RCW 15.32.560 and 1961 c 11 s 15.32.560;

(23) RCW 15.32.570 and 1989 c 354 s 12 & 1961 c 11 s 15.32.570;

(24) RCW 15.32.590 and 1963 c 58 s 9 & 1961 c 11 s 15.32.590;

(25) RCW 15.32.620 and 1961 c 11 s 15.32.620;

(26) RCW 15.32.630 and 1963 c 58 s 12 & 1961 c 11 s 15.32.630;

(27) RCW 15.32.660 and 1961 c 11 s 15.32.660;

(28) RCW 15.32.670 and 1961 c 11 s 15.32.670;

(29) RCW 15.32.680 and 1961 c 11 s 15.32.680;

(30) RCW 15.32.700 and 1961 c 11 s 15.32.700;

(31) RCW 15.32.740 and 1961 c 11 s 15.32.740;

(32) RCW 15.32.750 and 1961 c 11 s 15.32.750;

(33) RCW 15.32.755 and 1963 c 58 s 14;

(34) RCW 15.32.760 and 1961 c 11 s 15.32.760;

(35) RCW 15.32.770 and 1987 c 202 s 174 & 1961 c 11 s 15.32.770;

(36) RCW 15.32.780 and 1961 c 11 s 15.32.780;

(37) RCW 15.32.790 and 1961 c 11 s 15.32.790;

(38) RCW 15.36.020 and 1989 c 354 s 14 & 1961 c 11 s 15.36.020;

(39) RCW 15.36.075 and 1969 ex.s. c 102 s 3;

(40) RCW 15.36.090 and 1961 c 11 s 15.36.090;

(41) RCW 15.36.155 and 1961 c 11 s 15.36.155;

(42) RCW 15.36.160 and 1961 c 11 s 15.36.160;

(43) RCW 15.36.165 and 1961 c 11 s 15.36.165;

(44) RCW 15.36.170 and 1961 c 11 s 15.36.170;

(45) RCW 15.36.175 and 1961 c 11 s 15.36.175;

(46) RCW 15.36.180 and 1961 c 11 s 15.36.180;

(47) RCW 15.36.185 and 1961 c 11 s 15.36.185;

(48) RCW 15.36.190 and 1961 c 11 s 15.36.190;

(49) RCW 15.36.195 and 1961 c 11 s 15.36.195;

(50) RCW 15.36.200 and 1961 c 11 s 15.36.200;

(51) RCW 15.36.205 and 1961 c 11 s 15.36.205;

(52) RCW 15.36.210 and 1961 c 11 s 15.36.210;

(53) RCW 15.36.215 and 1961 c 11 s 15.36.215;

(54) RCW 15.36.220 and 1961 c 11 s 15.36.220;

(55) RCW 15.36.225 and 1961 c 11 s 15.36.225;

(56) RCW 15.36.230 and 1961 c 11 s 15.36.230;

(57) RCW 15.36.235 and 1961 c 11 s 15.36.235;

(58) RCW 15.36.240 and 1961 c 11 s 15.36.240;

(59) RCW 15.36.245 and 1961 c 11 s 15.36.245;

(60) RCW 15.36.250 and 1961 c 11 s 15.36.250;

(61) RCW 15.36.255 and 1961 c 11 s 15.36.255;

(62) RCW 15.36.270 and 1961 c 11 s 15.36.270;

(63) RCW 15.36.280 and 1961 c 11 s 15.36.280;

(64) RCW 15.36.320 and 1981 c 297 s 5 & 1961 c 11 s 15.36.320;

(65) RCW 15.36.325 and 1961 c 11 s 15.36.325;

(66) RCW 15.36.330 and 1961 c 11 s 15.36.330;

(67) RCW 15.36.335 and 1961 c 11 s 15.36.335;

(68) RCW 15.36.340 and 1961 c 11 s 15.36.340;

(69) RCW 15.36.350 and 1961 c 11 s 15.36.350;

(70) RCW 15.36.355 and 1961 c 11 s 15.36.355;

(71) RCW 15.36.360 and 1961 c 11 s 15.36.360;

(72) RCW 15.36.365 and 1961 c 11 s 15.36.365;

(73) RCW 15.36.370 and 1961 c 11 s 15.36.370;

(74) RCW 15.36.375 and 1961 c 11 s 15.36.375;

(75) RCW 15.36.380 and 1961 c 11 s 15.36.380;

(76) RCW 15.36.385 and 1961 c 11 s 15.36.385;

(77) RCW 15.36.390 and 1961 c 11 s 15.36.390;

(78) RCW 15.36.395 and 1961 c 11 s 15.36.395;

(79) RCW 15.36.400 and 1961 c 11 s 15.36.400;

(80) RCW 15.36.405 and 1961 c 11 s 15.36.405;

(81) RCW 15.36.410 and 1961 c 11 s 15.36.410;

(82) RCW 15.36.415 and 1961 c 11 s 15.36.415;

(83) RCW 15.36.425 and 1991 c 3 s 1, 1989 c 354 s 20, 1979 c 141 s 22, & 1961 c 11 s 15.36.425;

(84) RCW 15.36.430 and 1961 c 11 s 15.36.430;

(85) RCW 15.36.440 and 1961 c 11 s 15.36.440;

(86) RCW 15.36.580 and 1989 c 354 s 26, 1987 c 202 s 175, 1981 c 67 s 17, & 1961 c 11 s 15.36.580;

(87) RCW 15.36.590 and 1961 c 11 s 15.36.590;

(88) RCW 15.36.595 and 1989 c 175 s 49 & 1986 c 203 s 19; and

(89) RCW 15.36.900 and 1961 c 11 s 15.36.900.

NEW SECTION. Sec. 28. The following sections shall be codified or recodified in the following order in chapter 15.36 RCW:

Section 1 of this act;

RCW 15.36.005;

RCW 15.36.011;

RCW 15.36.040;

RCW 15.32.010;

RCW 15.36.030;

RCW 15.36.055;

RCW 15.36.060;

RCW 15.36.070;

RCW 15.36.080;

RCW 15.36.100;

RCW 15.32.100;

RCW 15.32.110;

Section 5 of this act;

Section 6 of this act;

Section 7 of this act;

RCW 15.36.110;

RCW 15.36.115;

RCW 15.36.120;

RCW 15.36.140;

RCW 15.36.150;

RCW 15.32.160;

RCW 15.36.260;

RCW 15.36.265;

RCW 15.36.300;

RCW 15.36.345;

RCW 15.32.410;

RCW 15.32.420;

RCW 15.36.420;

RCW 15.32.450;

RCW 15.32.460;

RCW 15.36.460;

RCW 15.36.470;

RCW 15.36.480;

RCW 15.36.490;

RCW 15.36.500;

RCW 15.36.510;

RCW 15.32.510;

RCW 15.36.520;

RCW 15.36.530;

RCW 15.32.530;

RCW 15.36.540;

RCW 15.36.550;

RCW 15.32.550;

RCW 15.32.580;

RCW 15.32.582;

RCW 15.32.584;

RCW 15.32.600;

RCW 15.36.600;

RCW 15.32.610;

RCW 15.32.710;

RCW 15.32.720;

RCW 15.32.730;

RCW 15.32.900;

RCW 15.32.910;

RCW 15.36.105; and

RCW 15.36.107.

NEW SECTION. Sec. 29. Sections 1 and 5 through 7 of this act are each added to chapter 15.36 RCW and shall be codified pursuant to section 28 of this act.