Licensing and Inspection

V.S.A. tit. 6, ch. 151, subch. 3

in effect

6 V.S.A. § 2721 Handlers’ licenses

2721. Handlers’ licenses (a) The Secretary may classify and issue licenses to milk handlers to carry on dairy product handling businesses, including the purchase, distribution, storage, or sale of milk or milk products, processing or manufacturing of milk or milk products, including the pasteurization of frozen dessert mixes, transport of milk and milk products, bargaining and collecting for the sale of milk and milk products, and dealing in or brokering milk or milk products. (b) A milk handler shall not transact business in the State unless the milk handler secures and holds a handler’s license from the Secretary. The license shall terminate September 1 each year and shall be procured by August 15 of each year. The Secretary shall furnish all forms for applications, licenses, and bonds. At the time the application is delivered to the Secretary, the milk handler shall pay a license application fee of $50.00 for an initial application and a license fee based on the following table. For a renewal application, only the fee in the table applies. Out-of-state firms shall use the company’s highest total pounds of milk or dairy products bought, sold, packaged, assembled, transported, stored, or processed per production day. Pounds of milk or dairy products bought, sold, | License packaged, assembled, transported, stored, or | handling processed per production day: | fee 500 pounds or less | $ 60.00 Over 500 but less than 10,000 pounds | $ 200.00 10,000 to 50,000 pounds | $ 350.00 Over 50,000 but less than 100,000 pounds | $ 750.00 100,000 to 500,000 pounds | $1,000.00 Over 500,000 pounds | $1,500.00 Processor fee per pasteurizer | $ 75.00 (c) Notwithstanding subsection (b) of this section, the license handling fees only for the transportation of bulk milk shall be capped at $750.00 per year, and the license handling fees for milk producers who exclusively transport their own bulk milk shall be capped at $25.00 per year. Added 1965, No. 175, § 17; amended 1969, No. 73, § 3, eff. April 18, 1969; 1975, No. 220 (Adj. Sess.), § 12; 1977, No. 159 (Adj. Sess.), § 1, eff. May 28, 1978; 1987, No. 217 (Adj. Sess.), § 1; 1989, No. 257 (Adj. Sess.), § 11; 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 33, § 7; 2011, No. 39, § 1, eff. May 19, 2011; 2015, No. 149 (Adj. Sess.), § 14; 2023, No. 141 (Adj. Sess.), § 4, eff. July 1, 2024.

6 V.S.A. § 2722 Application

2722. Application Applications shall be completely filled out and sworn to by the applicant or a partner or officer of the applicant and in case of renewal shall be filed with the Secretary on or before July 15 of each year. New handlers may apply for a license at any time. Renewal applications not received on or before August 15 shall be assessed a late fee of $100.00. The application for a handler’s license shall provide the following information and such other information as the Secretary by regulation shall reasonably require: (1) Name and address of applicant and the location of all plants and facilities owned or operated or to be owned or operated within the State of Vermont or outside the State of Vermont, or both. (2) A statement as to whether the applicant, or any partner, officer, or director thereof, is presently the subject of any criminal, civil, or disciplinary action by any federal or state agency, or has been convicted of a crime relating in any way to the business of milk processing or marketing, or both. (3) In the case of a new application, the applicant shall provide the following information: (A) The anticipated sources of supply of milk for the next 12 months. (B) The anticipated supply of milk and the daily quantity to be purchased from such sources. If a handler buys milk or represents that he or she intends to buy milk from Vermont producers, he or she shall provide a sworn balance sheet showing assets and liabilities and a profit and loss statement as of the end of the handler’s preceding fiscal year and such other information regarding its financial condition as the Secretary may require. Upon the request of the Secretary, the financial statements shall be accompanied by an opinion of a certified public accountant. (C) The value of the milk he or she intends to purchase for each of the succeeding 12 months from Vermont producers. In case purchases from Vermont milk producers during the license period vary in any one month by more than 20 percent from the amount stated on the application for the same month of the prior year or from the amount predicted for that month in the current year, as the case may be, the handler shall immediately notify the Secretary in writing of the amount of variation. (D) A statement as to when all Vermont producers will be paid in part and in full. Payment shall be made as agreed upon but shall not be later than the 25th of the following month. (E) The results of health tests certified by an appropriate public agency as the Secretary shall by regulation require. The Secretary may issue rules establishing what tests shall be administered and by whom they shall be certified. (F) A statement that the handler will pay to the Secretary all milk taxes required by law. (G) A statement that the handler will comply with all the provisions of this part and the rules adopted under this part. Added 1965, No. 175, § 16; amended 1977, No. 159 (Adj. Sess.), § 2, eff. May 28, 1978; 1987, No. 217 (Adj. Sess.), § 2; 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 33, § 8; 2013, No. 159 (Adj. Sess.), § 6; 2015, No. 149 (Adj. Sess.), § 15; 2019, No. 64, § 2; 2021, No. 105 (Adj. Sess.), § 113, eff. July 1, 2022.

6 V.S.A. § 2722a Hearings and action upon applications

2722a. Hearings and action upon applications (a) Upon receipt of an application for a milk handler’s license the Secretary shall examine it. If the application is deficient the Secretary shall so notify the applicant and return the application together with one-half of the application fee within 30 days of the receipt of the application. If the application is not deficient, the Secretary shall publish notice of the application in one or more publications of general circulation within the State’s dairy community at the applicant’s expense. The Secretary shall also publish notice of the handler’s application on the Agency’s website. An interested party shall have 14 calendar days from the date of publication to request a hearing on the application. The Secretary shall grant a request for a hearing when an interested party can demonstrate a reasonable belief that the applicant will not promote the general good of the dairy industry and the consuming public pursuant to Vermont rule 20-021-001 adopted by the Agency of Agriculture, Food and Markets. Where such a showing is made, a hearing shall be held within 60 days of receipt of the request. In the absence of such a showing or where no request for a hearing is received, the Secretary may hold a hearing at his or her discretion. (b) In the event a hearing is convened, the hearing shall be held in central Vermont unless requested by the applicant to be in the specific area where the applicant will be located. Additional hearings may be held at the discretion of the Secretary. (c) In the case of a renewal application, a hearing in the discretion of the Secretary may be held at Montpelier, or, in the discretion of the Secretary, may be waived. (d) The Secretary shall act upon applications within 30 days of the hearing, or if the hearing in the case of a renewal application has been waived, within 60 days of receipt of the renewal application. If the Secretary denies the license, he or she shall set forth his or her reasons. (e) Any applicant whose application has been denied shall have the right to judicial review of the Secretary’s decision in the Superior Court. The proceeding before the Superior Court shall be de novo, and the applicant may demand trial by jury. Appeals from the Superior Court may be taken to the Vermont Supreme Court pursuant to the Vermont Rules of Appellate Procedure. Added 1977, No. 159 (Adj. Sess.), § 3, eff. May 28, 1978; amended 1981, No. 237 (Adj. Sess.), eff. May 4, 1982; 1987, No. 217 (Adj. Sess.), § 3; 1997, No. 161 (Adj. Sess.), § 3, eff. Jan. 1, 1998; 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 39, § 1, eff. May 19, 2011.

6 V.S.A. § 2723 Exemptions

2723. Exemptions Handlers’ licenses shall not be required from the following persons: (1) a producer who only sells raw milk to milk handlers licensed to buy raw milk from Vermont farms; (2) a hotel, restaurant, or other public eating place that sells dairy products for consumption on the premises, or a store that sells packaged dairy products, provided the entire supply of dairy products is purchased from licensed milk handlers; (3) a person producing unpasteurized milk under chapter 152 of this title, with respect to the sale of that unpasteurized milk only; or (4) a person who holds a frozen dessert license that only utilizes pasteurized frozen dessert mix. Added 1965, No. 175, § 18; amended 2007, No. 101 (Adj. Sess.), § 1, eff. April 22, 2008; 2009, No. 62, § 3; 2011, No. 39, § 1, eff. May 19, 2011; 2013, No. 159 (Adj. Sess.), § 7.

6 V.S.A. § 2723a Distributor’s licenses

2723a. Distributor’s licenses (a) It shall be unlawful for any person to distribute fluid dairy products without a license issued by the Secretary. The Secretary shall license all distributors at least annually and for a term of up to three years and shall issue and renew such licenses on any calendar cycle. Application for the license and renewal shall be made in the manner and form prescribed by the Secretary and shall be accompanied by a license fee of $20.00 per annum or any part thereof. (b) No person shall be granted a license under this section unless the distributor first agrees to withhold the State tax on producers whose milk has been received by the distributor imposed under chapter 161 of this title. (c) As used in this section, the term “distributor” has the same meaning as set forth in section 2672 of this chapter, which includes the retail distribution or sale of milk, except the sale of milk to be consumed on the premises. (d) Any distributor who carries on a business without a license shall be subject to penalty under sections 2678 and 2679 of this title. Added 2013, No. 83, § 8, eff. June 10, 2013.

6 V.S.A. § 2724 Technicians’ licenses

2724. Technicians’ licenses (a) Any person who performs any tests, or determines weight or volume of dairy products where such determinations are used as a basis of payment or acceptance, shall hold an appropriate license or licenses issued by the Secretary, which may be revoked for cause after giving the technician the opportunity to be heard. Out-of-state laboratories that are NCIMS listed are exempt from the licensing requirement. Before issuing a license, the Secretary shall determine that the applicant is qualified to perform the service stated in the license. Different licenses may be issued for different services. The applicant shall pay the Secretary $20.00 for each examination. The initial license fee is $30.00. Licenses shall expire on June 30. After July 1, 2011, licenses shall be renewed by July 1 of each year when due. Licenses shall be issued for a period of three years. Licenses are renewable upon payment of a fee of $30.00. Licenses issued from July 2 to December 31 of each year shall be considered as if issued on the preceding July 1 for expiration purposes. Licenses issued from January 1 to June 30 shall be considered as if issued on the following July 1. There shall be a $25.00 late fee for each license not renewed by its due date, and the license shall lapse after it is late for 30 days. The holder of a license that has been lapsed more than 60 days shall retake any examination needed for a new license. License renewals shall be submitted 30 days prior to the renewal date to allow for processing of the licenses. Licenses not processed within 30 days of receipt shall automatically receive an extension of their current license until it is processed. (b) Any commercial enterprise that sells, installs, or repairs milking, milk cooling and storage, or dairy processing equipment shall register with the Secretary. The company shall apply for registration on a form made available by the Agency. The registration shall be valid for three years. Before registering a company, the Secretary shall determine that the company is qualified to sell, perform the installation, or repair milking and dairy processing equipment. The registration form shall be accompanied by a fee of $150.00. The Secretary may suspend or revoke registration for cause after giving the installer the opportunity to be heard. Registration shall terminate on December 31 of each year. Electricians or plumbers licensed pursuant to Title 26 doing only electrical or plumbing work within a farm or plant shall be exempt from this registration provided any work directly related to the processing of dairy products or milking of animals is performed under the supervision of a person that is registered. Added 1965, No. 175, § 10; amended 1975, No. 220 (Adj. Sess.), § 13; 1989, No. 257 (Adj. Sess.), § 12; 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 33, § 9; 2013, No. 159 (Adj. Sess.), § 8; 2015, No. 149 (Adj. Sess.), § 16.

6 V.S.A. § 2727 Municipal licenses

2727. Municipal licenses The existing power of a municipality under special charter provisions to regulate and grant licenses for the handling, selling, or supplying of dairy products within its territorial limits shall not be repealed nor affected by the provisions of this part, except that no local license shall be granted to any person who does not hold a license required of him or her under this part. The suspension or revocation of a license under this part automatically shall suspend or revoke, as the case may be, any local license then held by the same person. Added 1965, No. 175, § 31.

6 V.S.A. § 2728 Manufacturing grade goat milk

2728. Manufacturing grade goat milk (a) “Manufacturing grade goat milk” is goat milk other than Grade A goat milk produced and distributed according to the Grade A Pasteurized Milk Ordinance. (b) The maximum somatic cell count for manufacturing grade goat milk shall not exceed 1,500,000 per milliliter. Added 2009, No. 48, § 10, eff. May 28, 2009.

6 V.S.A. § 2741 Milk plants

2741. Milk plants Before issuing a milk handler’s license and at least twice a year thereafter, the Secretary shall inspect or cause to be inspected all milk plants as to their premises, equipment, procedures, and sanitary conditions. The Secretary may enter into reciprocal agreements with or accept the inspection reports of appropriate dairy sanitation agencies of other states, municipalities, or the federal government in lieu of inspection by the Secretary, provided their standards and administration are substantially equal to the standards established by the Secretary under the provisions of this chapter. Added 1965, No. 175, § 5; amended 1969, No. 73, § 4, eff. April 18, 1969; 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 39, § 1, eff. May 19, 2011.

6 V.S.A. § 2742 Dairy farms

2742. Dairy farms Before a dairy farm may sell or offer for sale milk to a handler, and at least once a year thereafter, the Secretary shall inspect or cause to be inspected all dairy farms as to their premises, equipment, dairy animals, procedures, and sanitation conditions. He or she may enter into reciprocal agreements with or accept the inspection reports of appropriate dairy sanitation agencies of other states, municipalities, or the federal government in lieu of inspection by the Secretary, provided their standards and administration are substantially equal to the standards established by the Secretary under the provisions of this part. All milk producers shall comply with all state-federal-cooperative livestock disease control or eradication programs. Added 1965, No. 175, § 6; amended 2003, No. 42, § 2, eff. May 27, 2003; 2017, No. 113 (Adj. Sess.), § 29.

6 V.S.A. § 2743 Dairy laboratories

2743. Dairy laboratories (a) The Secretary shall, at least annually, inspect or cause to be inspected all premises where dairy products are tested to determine the basis of payment or acceptance. Each handler shall notify the Secretary of the place in which tests of a producer’s dairy products are conducted. Such tests shall be performed only by licensed technicians. Approved dairy laboratories located outside Vermont are exempt from this inspection. (b) The Secretary shall at least annually inspect all in-state dairy laboratories and those out-of-state dairy laboratories not approved by the National Conference on Interstate Milk Shipments, and if qualified, they shall be approved by the Secretary. (c) In the event that an approved dairy laboratory in which tests are made does not comply with the provisions of this part or rules adopted under this part, the Secretary may forbid its use until subsequent inspection indicates compliance. (d) In case the producer’s milk is transported from the farm to a milk plant in another state, the samples shall be tested in an approved dairy laboratory. Added 1965, No. 175, § 11; amended 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 39, § 1, eff. May 19, 2011; 2021, No. 105 (Adj. Sess.), § 114, eff. July 1, 2022.

6 V.S.A. § 2744 Enforcement

2744. Enforcement (a) Enforcement of dairy sanitation rules in milk plants. In the event that inspection of a milk plant discloses conditions not meeting the standards established in this part or the rules adopted under this part, the handler shall be directed how to secure compliance with the terms of this part and the rules adopted under this part. The Secretary shall allow a reasonable time to correct the unsatisfactory conditions. At the expiration of the time granted for correction, another inspection shall be made. If conditions are then found in violation of this part or the rules adopted under this part, the Secretary shall require the appearance of the handler before the Secretary to show cause why the handler’s license should not be suspended or terminated. In this event, the handler shall give the Secretary a list of producers supplying the handler milk, and the Secretary shall give notice to producers of the pending suspension. (b) Enforcement of dairy sanitation rules on dairy farms. In the event that inspection of a dairy farm discloses conditions not meeting the standards established in this part or the rules adopted under this part, the producer and the handler concerned shall be notified in writing clearly stating the unsatisfactory conditions. The producer shall be advised as how to secure compliance with the terms of this part and the rules adopted under this part. The Secretary shall allow the producer a reasonable time to correct the unsatisfactory conditions. At the expiration of this time granted for correction or as soon as feasible thereafter, another inspection shall be made. If conditions are then found in violation of this part or the rules adopted under this part, the Secretary shall require the producer to appear before the Secretary to show cause why the producer’s right to sell milk should not be suspended or terminated. If the producer’s right to sell milk is suspended or terminated, the Secretary shall then notify the appropriate handler to stop handling the milk from this producer. No other handler processing or packing fluid dairy products shall handle milk from this producer. In the event that a producer corrects the unsatisfactory conditions to the satisfaction of the Secretary as determined by inspection, the Secretary shall immediately notify the appropriate handlers. (c) Prohibition on sales or transfers. In the event that any inspection or test of a milk plant or dairy farm discloses conditions that are of immediate and serious danger to public health, the handler or the producer may be at once forbidden to sell or transfer dairy products for human consumption until a subsequent inspection or test indicates that the danger to public health no longer exists. (d) Right of entry. The Secretary or his or her agent may for the purpose of inspection enter at all reasonable times the premises, except the residence, of all milk handlers and producers and examine all pertinent records and personnel and may use reasonable means of determining the sanitary condition of the entire milk producing and handling process. Refusal to permit inspection shall be grounds for revoking a license or the ability to ship milk pursuant to 3 V.S.A. chapter 25. Added 1965, No. 175, § 7; amended 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 39, § 1, eff. May 19, 2011; 2021, No. 105 (Adj. Sess.), § 115, eff. July 1, 2022.

6 V.S.A. § 2744a Drugs

2744a. Drugs (a) No producer shall sell or offer for sale milk that contains any drug or drugs in excess of tolerances established by the U.S. Food and Drug Administration in the Code of Federal Regulations. (1) In the event that milk from a dairy producer contains a drug residue: (A) No more milk from that producer shall be received by any milk dealer or handler until a sample of at least one complete milking has been collected and found negative. (B) If a second drug residue violation occurs within 12 months of the first violation, no more milk from that producer shall be received by any milk dealer or handler until a sample of at least one complete milking has been collected and found negative. The producer shall have an administrative penalty equal to the value of one day of milk production assessed. (C) If a third drug residue violation occurs within 12 months of the first violation, no more milk from that producer shall be received by any milk dealer or handler until a sample of at least one complete milking has been collected and found negative. The producer shall have an administrative penalty equal to the value of two days of milk production assessed. A hearing shall be warned to determine if the producer will be allowed to continue to ship milk. (2) No handler or dealer shall accept milk from: (A) a producer after a drug residue violation has occurred until a sample of at least one complete milking has been found negative; or (B) a producer whose ability to sell milk is suspended or terminated. (3) A producer who fails to pay an administrative penalty issued under this section within 30 days of issuance of a citation for violation of this section shall have his or her ability to sell milk suspended until the administrative penalty is paid. In lieu of suspending a producer’s ability to sell milk, the Secretary may accept the assessment by the milk dealer against the producer. (4) Notwithstanding the provisions of subsection (c) of this section, the Secretary may at any time issue an emergency order prohibiting a producer from selling and a handler from accepting any milk until the milk tests negative for drugs. (b)(1) No producer shall sell for slaughter livestock with bodily tissue containing any drug or drugs in excess of tolerances established by the U.S. Food and Drug Administration in the Code of Federal Regulations. (2) In the event that bodily tissue obtained from livestock intended for slaughter is found to contain a drug or drugs in excess of levels established by the U.S. Food and Drug Administration in the Code of Federal Regulations at the time of sale, the Secretary may assess an administrative penalty not to exceed $1,000.00 for each violation and may require the farm to participate in a program approved by the Agency intended to mitigate further selling of animals for food that contain violative drug residues in their tissue. (c) Before issuing an order or administrative penalty under this section, the Secretary shall provide the producer and the handler or dealer an opportunity for hearing. Added 1991, No. 232 (Adj. Sess.), § 2; amended 1997, No. 88 (Adj. Sess.), § 2; 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 39, § 1, eff. May 19, 2011; 2015, No. 39, § 18.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/06/151Fetched: 10/21/2026