Rule-Making Notices (Hearing Notices)

  per facility

Retail Food

Store   $30-$450 annual license fee   $39-587

  (based on size and type)

  $60-$300 reinspection fee   $74 - $369

  (based on size and type)

Dairy, Food or

Water Testing

Lab   $336 annual lab certification fee   No change

  for each dairy or food test (other

  than milk drug residue screening)

  $276 annual lab certification fee for   No change

  each water test

  $25 annual certification fee for each   No change

  dairy or food analyst (other than milk

  drug residue screening analyst)

  $50-$500 initial fee and $25-$50   No change

  annual renewal fee for lab

  performing milk drug residue

  screening

  $25 initial evaluation fee for milk drug   No change

  residue screening analysts

  (if more than 3 per lab)

Milk Hauler   $30 annual milk hauler license fee   $36

  $30 milk hauler reinspection fee   $36

  $40 milk weigher and sampler license   $48

  fee (2-year license)

  $40 milk weigher and sampler   $48

  reinspection fee

Buttermaker or

Cheesemaker $50 license fee (2-year license)   $60

  $25 Buttermaker or Cheesemaker   $30

  reinspection fee

Butter or Cheese

Grader   $50 license fee (2-year license)   $60

Annual Fee Adjustment

This rule provides for annual adjustment of the above fees (up or down), based on the prevailing cash balance in Wisconsin's food safety program revenue account on June 30 of each year. Fees are subject to the following adjustments (adjustments take effect on September 1 of each year):

• If the program revenue account balance on June 30 is less than $400,000, DATCP may increase the fees by the percent necessary to increase the account balance by an amount equal to the difference between $500,000 and the account balance. Before increasing any fee, DATCP must consult with an advisory council of food and dairy processors. The fee increase, if any, must be approved by the DATCP Board and published in the Wisconsin administrative register.

• If the program revenue account balance on June 30 is greater than $600,000, DATCP must reduce the fees by the percent necessary to reduce the account balance by an amount equal to the difference between $500,000 and the account balance.

• If the program revenue account balance on June 30 is between $400,000 and $600,000, the fees do not change.

Exemptions

This rule does not affect any of the following:

• Fees that DATCP charges for certain services, such as review of food processing equipment plans, or the testing, timing and sealing of pasteurizers. DATCP is authorized to charge fees for such services in order to cover its cost of providing the services. DATCP may adjust these service fees by written notice, in order to keep fees consistent with service costs.

• License fees for milk and cream testers. DATCP is not authorized to adjust these fees by rule. Milk and cream testers currently pay a license fee of $50 (for a 2-year license) and a reinspection fee of $25.

This rule exempts ungraded barrel cheese from current and proposed cheese grading fees (paid by dairy plants).

Technical Changes

This rule makes certain non-substantive editorial and drafting changes to current rules.

Fiscal Impact

State Fiscal Effect

This rule will increase food safety program revenues by $1.2 million in 2006. This is necessary to offset a projected deficit in DATCP's food safety program revenue account beginning in FY 2005-06. Fees have not been increased since 1998. DATCP proposes to increase license fees for all food and dairy license categories. A complete fiscal estimate is attached.

Wisconsin's food safety program is funded by a combination of general tax dollars (GPR) and program revenue from license fees (PR). In 1991, license fees funded about 40% of program costs. The 1995-97 biennial budget act reduced GPR funding, so that PR accounted for about 50% of food safety funding. Because of further GPR reductions in recent state budgets, the current PR funding share is about 60%.

Other developments have combined to deplete the food safety PR account balance. Recent state budgets have lapsed a substantial amount of license fee revenue to the state general fund (to help remedy state budget deficits). DATCP has delayed fee increases (none since 1998), but has experienced a modest increase in operating costs. DATCP also incurred a significant increase in PR costs when the legislature transferred the grade A milk certification program to DATCP (without any attached funding). DATCP currently projects a PR account deficit in FY 2005-06.

DATCP is working to deliver effective food safety protection as efficiently as possible. DATCP's bureau of food safety and inspection currently has 88 staff -- 12.75 fewer than in 1997 and 15.5 fewer than in 1991. Dairy farm inspection frequency is based on milk quality tests and past inspection performance (DATCP is exploring ways to expand this risk-based approach). DATCP is also working with other agencies to share resources and minimize duplication. For example:

• DATCP works with local government to license and inspect retail food establishments. Twenty-seven local entities license and inspect on behalf of DATCP, compared to 15 in 1997. Local entities now license and inspect 3,800 retail food establishments, and DATCP licenses and inspects the remaining 4,700 establishments.

• DATCP coordinates dairy plant inspection with the United States Department of Agriculture, Agricultural Marketing Service, to avoid duplicate inspection.

• Since 1997, DATCP has worked with the Wisconsin Department of Health and Family Services (DHFS) to eliminate duplicate licensing and inspection of grocery stores, restaurants, and combination grocery-restaurants. DATCP and DHFS have adopted uniform rules for grocery stores and restaurants, to avoid conflicting standards. Standards are based on the federal model food code.

Local Fiscal Effect

DATCP currently provides administrative support to local governments that license and inspect retail food establishments as agents of DATCP. Local governments establish their own license fees, and reimburse DATCP for administrative services costs. The reimbursement amount equals 10% of the license fee that DATCP would charge local license holders, if DATCP licensed them directly. An increase in DATCP license fees therefore increases local reimbursement payments.

In FY 2004, local governments made a total of $50,005 in reimbursement payments. If DATCP adopts the fee increases proposed in this rule, the reimbursement rate will remain at 10%, but the total reimbursement amount will increase to $61,505. This rule thus increases local costs by $11,500 (statewide total). Local governments can (and likely will) pass this increased cost on to retail food businesses. Local governments can set license fees to recover up to 100% of their reasonable operating costs.

Business Impact

This rule increases current license fees for milk producers, dairy plants, food processing plants, food warehouses, milk distributors, retail food stores, dairy, food or water testing laboratories, milk haulers, buttermakers, cheesemakers and butter or cheese graders licensed by DATCP. Many of these licensed entities are “small businesses."

The proposed fee increase is necessary to prevent a deficit in Wisconsin's food safety program revenue account. Fees have not been increased since 1998. The proposed fee increase will have an impact on the affected businesses, but not a dramatic impact. DATCP has worked to maintain a fair and equitable license fee schedule.

Fees are based on actual food safety costs related to each license sector. Fees are also based on business size, food product type, and type of food handling operations. Smaller businesses generally pay lower fees than large businesses, and lower-risk businesses generally pay lower fees than higher-risk businesses.

This rule increases food safety license fees, but does not change other license requirements. This rule requires no additional recordkeeping, and no added professional services to comply. A complete small business analysis (“initial regulatory flexibility analysis") is attached.

Under 2003 Wis. Act 145, DATCP and other agencies must adopt rules spelling out their rule enforcement policy for small businesses. DATCP has not incorporated a small business enforcement policy in this rule, but will propose a separate rule on that subject. Food and dairy businesses must pay required license fees in order to obtain a license from DATCP.

Federal Regulation

There are no existing or proposed federal regulations related to license fees for food and dairy businesses operating in Wisconsin.

Surrounding State Programs

All of the surrounding states charge license fees to food and dairy businesses. License structure and fees vary between states. Differences in license fees may partly reflect differences in general tax dollar support for food and dairy programs in different states.

Minnesota

Minnesota has a license and fee structure that is similar, but not identical to, Wisconsin's structure:

Dairy Fees – Minnesota
Grade A pasteurizing plant	$500
Grade A farm	$50
Grade A farm reinspection fee	$45
Manufacturing plant	$140 per pasteurizer unit
Manufactured farm	$25
Manufactured farm reinspection fee	$45
Processor assessment	$.07 per cwt for fluid milk products sold for retail sale in Minnesota
Farm bulk milk pick-up tanker	$25
Milk procurement fee	$.0071 per cwt of raw milk purchased

Food Fees – Minnesota
Retail food handler	$50-$2,001 based on sales volume
Wholesale food handler	$57-$1,502 based on sales volume
Food broker	$150
Wholesale food processor or manufacturer	$169-$2,571 based on sales volume

Michigan

Michigan has a license and fee structure that is similar, but not identical to, Wisconsin's structure“

Dairy fees – Michigan
Milk plant	$175
Farms sending milk to plant	$5-$10
Receiving or transfer station	$50
Milk tank truck cleaning facility	$50
Milk transportation company	$20
Milk tank truck	$10
Grade A milk distributor	$50
Single service container and closure plant	$50
Bulk milk hauler/sampler	$40 for 2 years

Food Fees – Michigan
Retail food establishment	$70
Limited wholesale food processor	$70
Food warehouse	$70
Extended retail food establishment	$175
Wholesale food processor	$175
Mobile food establishment	$175
Temporary food establishment	$28
Bottled water manufacturer	$25 for each product registered and $25 for each water dispensing machine

Iowa

Iowa has a license and fee structure that is similar, but not identical to, Wisconsin's structure:

Dairy Fees – Iowa
Milk plant	$2,000 for 2 years
Transfer station	$400 for 2 years
Receiving station	$400 for 2 years
Milk hauler	$20 for 2 years
Milk grader	$20 for 2 years
Bulk milk tanker permit	$50 for 2 years
Reinspection fee	$40
Resealing pasteurizer fee	$100 per reseal
Purchaser of milk fee - Grade A	$.015 per cwt of raw milk purchased
Purchaser of milk fee - Grade B	$.005 per cwt of raw milk purchased

Food Fees – Iowa
Mobile food unit or pushcart	$20
Temporary food establishment	$25
*Food establishment	$30-$225 based on sales volume
*Food service establishment	$50-$225 based on sales volume
Food processing plant	$50-$250 based on sales volume
Egg handler	$15-$250 based on cases sold

*If one establishment must hold both a food establishment and a food service establishment license, each license fee is 75% of the established fee.

Illinois

Illinois has a license and fee structure that is substantially different from the Wisconsin structure:

Dairy Fees – Illinois
Milk plant permit	$100
Receiving or transfer station	$50
Cleaning and sanitizing facility	$50
Milk hauler-sampler	$25
Milk tank truck	$25
Certified pasteurizer sealer	$100

Illinois does not license or charge a fee to most food establishments. The following are fees charged to Illinois food establishments:

Food Fees
Salvage Operator	$100 plus inspection fee based on size
Bottled water manufacturer or distributor	$150
Egg handlers, distributors and breakers	$15-$200 plus inspection fee per case of eggs sold

Notice of Hearing

Commerce

(Petition for Variance)

[CR 05-049]

NOTICE IS HEREBY GIVEN that pursuant to chapters 101 and 145, and sections 167.10 (6m), 168.16 (4) and 560.02 (4), Stats., the Department of Commerce will hold a public hearing on proposed rules under chapter Comm 3, relating to stop work, stop use and petition for variance procedures.

The public hearing will be held as follows:

Date and Time: Monday, June 27, 2005 at 10:00 a.m.

Location: Room 3C, Thompson Commerce Center, 201 West Washington Avenue, Madison

Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until July 8, 2005, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to Ronald Acker, at the Department of Commerce, P.O. Box 2689, Madison, WI 53701-2689, or Email at:
[e-mail].

This hearing is held in accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call [phone] or [phone] (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.