§ 15-18-1-17 — Calculation of civil penalties; other sanctions

(a) The following definitions apply
throughout this section:
(1) "Daily production" means the amount of milk, measured by
hundred weight, produced by the positive producer in one (1) day,
measured on the day in which the drug residue violation occurred.
(2) "Producer reimbursement" means an amount assessed against
the positive producer to reimburse others for milk contaminated
by the positive producer's contaminated milk, not including the
value of the positive producer's contaminated milk for which the
positive producer was not paid.
(3) "Revocation period" means the period after a Grade A
producer's permit is revoked under this section that the producer
may not apply for a Grade A permit.
(b) A penalty established under this section may not be more severe
than the penalty standard for drug residue violations adopted by the
National Conference on Interstate Milk Shipments in its Pasteurized
Milk Ordinance adopted in accordance with the National Conference's
Memorandum of Understanding with the United States Department of
Health and Human Services, Food and Drug Administration. The
penalty imposed may not exceed one thousand dollars ($1,000) for a
first offense or two thousand dollars ($2,000) for a subsequent offense.
(c) A producer whose milk tests positive for drug residues shall pay
a civil penalty and participate in drug residue education activities as
follows:
(1) The following is imposed on a producer for the first positive
test for drug residues within a twelve (12) month period:
(A) The civil penalty shall be determined as follows:
STEP ONE: Multiply the daily production by two (2).
STEP TWO: Multiply the STEP ONE result by three dollars
($3).
STEP THREE: Subtract the producer reimbursement from the
STEP TWO result.
The positive producer shall pay a civil penalty that is the greater
of the amount determined in STEP THREE or five dollars ($5).
(B) The positive producer must, in conjunction with the
producer's veterinarian and an official of the board, complete an
approved protocol to prevent future drug residue violations and
provide proof of completion to the board of animal health,
office of the state veterinarian within thirty (30) days after the
drug residue violation. Failure to complete the protocol and
submit proof of completion within thirty (30) days results in
action to suspend the producer's permit.
(2) The following is imposed for a second positive test for drug
residues within a twelve (12) month period:
(A) The civil penalty described in subdivision (1)(A) shall be
imposed.
(B) The positive producer must complete an approved protocol
described in subdivision (1)(B).
(C) The producer must attend a meeting called by the state
veterinarian to discuss the violations and demonstrate that
appropriate practices have been implemented to mitigate the
risk of further drug residue violations.
(3) The third or subsequent positive test result for drug residues
within a twelve (12) month period has the following results:
(A) The board shall initiate action under section 6 of this
chapter to suspend or revoke a producer's Grade A permit if the
producer has a permit.
(B) The civil penalty set forth in subdivision (1)(A) is imposed.
(C) If a producer requests reinstatement of the producer's
permit, the producer must submit to the state veterinarian a set
of written procedures that the producer will follow to prevent
future drug residue violations. The procedures must be specific,
practical, and reasonably likely to lessen the possibility of a
drug residue violation when followed by the producer.
(d) The state veterinarian, by special permit, may allow a producer
that objects to the imposition of a civil penalty to dump two (2) days of
milk production on a first offense and four (4) days of milk production
on the second or third offense instead of paying a civil penalty if
payment of a civil penalty would impose undue hardship on a producer.
The state veterinarian may set the conditions under which the milk is
to be dumped and may require documentation from the producer
showing the circumstances under which the milk was dumped.
(e) Civil penalties collected under this section shall be deposited in
the dairy drug residue abatement fund established by section 31 of this
chapter.
[Pre-2008 Recodification Citations: subsection (a) formerly
15-2.1-23-6.5(a); subsection (b) formerly 15-2.1-23-6.5(b);
subsection (c) formerly 15-2.1-23-6.5(d) part; subsection (d)
formerly 15-2.1-23-6.5(e); subsection (e) formerly
15-2.1-23-6.5(f).]

Legislative History

As added by P.L.2-2008, SEC.9. Amended by P.L.186-2014, SEC.9.