Statutory authority: 93.07 (1), 93.09 (10), 93.12 (7), 97.17 (4), 97.175 (2), 97.20 (2c) (b), (2g) (b), (2n) (b), (2w) and (4), 97.21 (4m) and (6), 97.22 (2) (b), (4) (am) and (8), 97.27 (3m) and (5), 97.29 (3) (am), (cm) and (5), 97.30 (3m) and (5), and 98.146 (4), Stats.
Statutes interpreted: 93.09, 93.12, 97.17, 97.175, 97.20, 97.21, 97.22, 97.27, 97.29, 97.30 and 98.146 (4), Stats.
DATCP has broad authority, under s.
93.07(1), Stats., to adopt rules needed to implement laws under its jurisdiction. DATCP also has specific authority, under the provisions cited above, to establish dairy and food license and reinspection fees.
Rule Content
This rule increases current license and reinspection fees for dairy and food businesses, as shown below. DATCP plans to adopt and publish this rule before May 1, 2008, but fee increases will first apply to fees that are due on July 1, 2008.
Entity Current Fee(s) Proposed Fee(s)
Dairy Farm $24 annual license fee (paid $32
by dairy plant operator)
$24 or $48 reinspection fee $32 or $64
(paid by dairy plant operator
if reinspection is required)
Dairy Plant Annual license fee (calculations include an increase in the basic license fee from $96 to $129):
$699 or $879 for grade A $937 or $1,178
processing plant (based on size)
$397 for grade A receiving station $532
$96 for grade A transfer station $129
$96 to $421 for grade B processing $129 or $565
plant (based on size)
$96 for grade B receiving station $129
or transfer station
Grade A milk procurement fee:
0.96 cent per 100 lbs. 1.081 cent per 100 lbs. (for payments due beginning July 1, 2008)
Grade B milk procurement fee:
0.2 cent per 100 lbs. No change
Reinspection fee:
$203 or $246 for grade A $336 or $394
processing plant
$221 for grade B processing plant $360
$122 for grade A receiving station $229
$48 for grade B receiving station $64
or transfer station
Butter and cheese grading fee:
1.09 cents per 100 lbs. 1.5 cents per 100 lbs.
of product of product
Food Processing Plant $78-$685 annual license fee $105 - $918
(based on size and type)
$261 canning surcharge for canning $350
plants with annual production of
25,000 or more
$49-$431 reinspection fee $66 - $578
(based on size and type)
Food Warehouse $65-$261 annual license fee $87-$350
(based on size and type) $92-$246 reinspection fee $123 - $330
(based on size and type)
Milk Distributor $60 annual license fee $80
per facility
$25 reinspection fee $34
per facility
Retail Food Store $37-$562 annual license fee $50-$753
based on size and type)
$74-$369 reinspection fee $99 - $494
(based on size and type)
Dairy, Food or Water
Testing Lab $336 annual lab certification fee $450
for each dairy or food test (other
than milk drug residue screening)
$276 annual lab certification fee for $370
each water test
$25 annual certification fee for each $34
dairy or food analyst (other than milk
drug residue screening analyst)
$50-$500 initial fee and $25-$50 $67-$670 initial fee
annual renewal fee for lab
performing milk $34-$67 annual renewal fee
drug residue screening
$25 initial evaluation fee for milk drug $34
residue screening analysts
(if more than 3 per lab)
Bulk Milk $36 annual bulk milk tanker license fee $48
Tanker $36 bulk milk tanker reinspection fee $48
$48 bulk milk weigher & sampler license $64
fee (2-year license)
$48 bulk milk weigher and sampler $64
reinspection fee
Buttermaker or $60 license fee (2-year license) $80
Cheesemaker
Butter or Cheese $60 license fee (2-year license) $80
Grader
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.
• License fees for meat establishments. Meat inspection programs are funded by a combination of federal dollars and matching state GPR dollars. Under federal law, states must match federal dollars with state GPR dollars, not license fees.
Fiscal Estimate
State Fiscal Effect
This rule will increase food safety program revenues by approximately $994,000 per year, beginning in FY 2008. The increase is needed to offset a projected deficit in DATCP's food safety program revenue account beginning in FY 2007. 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 the GPR funding share, so that PR funded about 50% of program costs. Subsequent state budgets further reduced the GPR funding share, so that PR now funds about 60% of the food safety budget.
Recent state budgets have lapsed a substantial amount of food safety license fee revenue to the state general fund (to help remedy state budget deficits). At the same time, DATCP has experienced a modest increase in operating costs. DATCP proposed a license fee increase in 2005, but was forced to withdraw a large share of that fee increase proposal. As a result, DATCP projects a substantial food safety budget deficit beginning in FY 2007.
DATCP is working to deliver effective food safety protection as efficiently as possible. For example:
DATCP has reduced its food and dairy staff by approximately 17% since 1990 (from 118 to 98 staff). Staffing trends fairly reflect changes in the food and dairy industry, including a reduction in dairy farm numbers and increased delegation of retail food regulation to cooperating local governments. While food safety staffing needs have declined in some traditional areas, they are growing in other areas.
DATCP works with local governments to license and inspect retail food establishments. Thirty-four local entities license and inspect on behalf of DATCP, compared to 15 in 1997 (local participation is voluntary). Local entities now license and inspect 4,600 retail food establishments. DATCP licenses and inspects the remaining 4,200 establishments.
