Initial Regulatory Flexibility Analysis
The proposed rule would not affect businesses.
Fiscal Estimate
Families with children who have functional needs receive services from a number of programs implemented by county human and social services agencies. These programs include early intervention services for children from birth to 3 with developmental needs; the family support program; the community options program; the children's home and community based services waivers; various locally funded services such as respite care and community inclusion activities for children; and other children's long term support programs.
Federal, state, and county funds pay a portion of the costs for these services. Parents of children who receive these services also pay a portion of these costs. Parents of children who receive early intervention services are required s. under s.
51.44 (5) (a), Stats., and s.
HFS 90.06 (2) (i) to pay a portion of these costs as assessed by the county providing services. Counties have determined that implementing the early intervention services and other children's long-term support services under three different payment systems, used by the various programs listed in the above paragraph, is administratively and fiscally burdensome. In addition, the Department has determined that the current system for calculating the parental payment limits for early intervention services results in families not paying a fee in proportion to their incomes and services received.
To decrease the burden on county agencies in implementing the various services for children who have functional needs, and to ensure that families, in proportion to their incomes, share in the costs of their child's services, the Department proposes to permit counties to use the schedule established under s.
HFS 1.03 (13m) to assess parental payments limits for early intervention program services. Except for early intervention core services, such as service coordination and evaluation, the proposed consolidation and change may result in an increase in costs to families receiving early intervention services due to the change in the process for calculating the parents' share of costs. The current parental payment limits for early intervention services range between $300 to $1,800 per year based on family annual income and family size relative to federal poverty guidelines. The new calculation will continue to be based on family annual income and family size relative to federal poverty guidelines, but the parental payment limits will also be a percentage of actual costs for services based on the family's income and size instead of a flat fee. Under the proposed schedule, parental payments will be assessed for families at or above 330% of the federal poverty level, beginning at 1% of service costs and can progress up to 41% of service costs for families at 1580% or greater of the federal poverty level. Parental payments would not be collected from families who have annual incomes below 330% of the federal poverty level.
The parental payment limits would be determined by counties after calculating the parent's annual gross income, adjusted by a standard allowance; or actual medical or dental expenses claimed on the parent's federal income tax form Schedule A, whichever is higher, the family's poverty level for the family size, and the child's individual family service plan costs. Families continue to have the option of allowing their private insurance companies to be billed for the payment of therapy services provided.
The amount of the annualized payments collected by counties under the proposed rule is indeterminate due to a number of variables that are difficult to quantify. Under the proposed rules, counties could collect higher parental payments from families who have incomes at or above 330% of the FPL, because the payment limits would be determined in proportion to the costs of the child's service plan, family size, and income level, instead of being capped at $1,800 per year regardless of plan costs and family income. At the same time, counties would collect no payments from families whose incomes are below 330% of the FPL. Parental payments for early intervention services are currently collected beginning at 250% of the FPL.
Counties would not incur additional costs associated with implementing the proposed change, since counties already have the staff expertise and appropriate calculation tables from the Department needed to determine parental payment limits. The proposed order, in general, would provide a unified system for counties calculating parental payments for services to children with functional needs, which should help to reduce counties' administrative costs. The proposed rules would not have a fiscal effect on the Department. The proposed rules do not affect businesses. The proposed rules would not result in a loss of services nor any changes to services to families.
Notice of Hearings
Health Services
(Formerly Health and Family Services)
NOTICE IS HEREBY GIVEN that the Wisconsin Department of Health Services will hold public hearings relating to proposed revisions to Chapters
HFS 173,
175,
178,
195,
196,
197 and
198, relating to creating and increasing fees for tattooing and body piercing establishments, recreational and educational camps, campgrounds, hotels, motels, and tourist rooming houses, restaurants, bed and breakfast establishments, vending of food,
and affecting small businesses.
Hearing Information
Date and Time
August 11, 2008 10:00 am to 2:00 pm
|
Location
Western Regional Office
Conference Room 123
610 Gibson Street
Eau Claire, WI 54701
|
August 12, 2008 10:00 am to 2:00 pm
|
Northern Regional Office Conference Room
2187 North Stevens Street Suite C
Rhinelander, WI 54501
|
August 13, 2008 10:00 am to 2:00 pm
|
Northeastern Regional Office
Conference Room
200 North Jefferson Street, Room 152A
Green Bay, WI 54301
|
August 14, 2008 10:00 am to 2:00 pm
|
Southeastern Regional Office
Conference Room
819 North 6th Street, Room 40
Milwaukee, WI 53202
|
August 15, 2008 10:00 am to 2:00 pm
|
Wis. Dept. of Health Services
1 W. Wilson Street
Room B155
Madison, WI 53703
|
The hearing site is fully accessible to people with disabilities. If you are hearing impaired, do not speak English or have circumstances that might make communication at a hearing difficult; you require an interpreter or a non-English large print or taped version of the proposed rules, contact the person at the address or telephone number given below at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Submission of Written Comments
Written comments may be submitted at the public hearing or submitted to the contact person listed below. Comments may also be made using the Wisconsin Administrative Rule Website at
http://adminrules.wisconsin.gov.
The deadline for submitting comments to the Department is 4:30 p.m. on August 15, 2008
Copies of Rules and Fiscal Estimate
A copy of the full text of the rules and the fiscal estimate can be obtained at no charge from the Wisconsin Administrative Rules Website at http://adminrules. wisconsin.gov or by contacting the person listed below.
Agency Contact Person
James Kaplanek, R.S
Chief
Food Safety and Recreational Licensing
608-261-8361
Small Business Regulatory Coordinator
Rosie Greer
608-266-1279
Analysis Prepared by Department of Health Services
Statute interpreted
Sections
250.04,
250.041,
252.23,
252.24,
252.241,
252.25,
252.245,
254.47,
254.015,
254.61,
254.62,
254.64,
254.65,
254.67,
254.68,
254.69,
254.70,
254.71,
254.272,
254.74,
254.85,
254.86,
254.87, and
254.88, to
254.88, Stats.
Statutory authority
Sections
227.11 (2) (a),
250.04 (1),
(2) (a), and
(7),
252.23 (4),
252.24 (4),
254.47 (4),
254.64,
254.65,
254.68,
254.74 (1) (d),
254.71 (6),
254.85,
254.86, and
254.88.
Explanation of agency authority
Section
227.11 (2) (a), Stats., provides the department, as a state agency, with general rulemaking authority interpreting the provisions of any statute enforced or administered by the department, if the department considers it necessary to effectuate the purpose of the statute. Section
250.04 (1) (2) (a), and
(7), Stats., designates the department as having general responsibility for the public's health, gives the department all powers necessary to fulfill its duties, and authorizes the department to enforce and promulgate rules and orders governing the duties of local public health departments that effect public health. Additional authority to promulgate the proposed rules is as follows:
•
Tattooists and tattoo establishments: Section 252. 23 (2), Stats., requires the department to provide statewide licensing and regulation of tattooists and tattoo establishments, and to inspect a tattoo establishment before issuing a license to the establishment, and authorizes the department to conduct additional inspections as determined necessary by department. Section
252.23 (4) (a) and
(b), Stats., requires the department to establish by rule standards and procedures, including fee payments to offset the cost of licensing tattooists and tattoo establishments, for the annual issuance of licenses as tattooists or as tattoo establishments to applicants, and the standards for the performance of tattoos by licensed tattooists and the maintenance of licensed tattoo establishments. Section
252.245 (1) and
(4), Stats., authorizes the department to grant agent status to certain local health departments for issuing licenses to and making investigations or inspections of tattooists and tattoo establishments and permits local health departments with agent status to establish separate fees for licensure, including fees for pre-inspections. Chapter
HFS 173 are the department's regulations authorized under 252.23 (2) and (4) (a) and (b) and 252.245 (1) and (4), Stats., for tattooists and tattoo establishments.
•
Body piercing and body piercing establishments: Section 252. 24, (2), Stats., requires the department to provide statewide licensing and regulation of body piercers and body piercing establishments and to inspect a body piercing establishment before issuing a license to the establishment, and authorizes the department to conduct additional inspections as determined necessary by department. Section
252.24 (4) (a) and
(b), Stats., requires the department to establish by rule standards and procedures, including fee payments, to offset the cost of licensing body piercers and body piercing establishments, for the annual issuance of licenses as body piercers or as body piercing establishments to applicants, and the standards for the performance of body piercing by licensed body piercers and the maintenance of licensed body piercing establishments. Section
252.245 (1) and
(4), Stats., authorizes the department to grant agent status to certain local health departments for issuing licenses to and making investigations or inspections of body piercers and body piercing establishments and permits local health departments with agent status to establish separate fees licensure, including fees for pre-inspections. Chapter
HFS 173 are the department's regulations authorized under 252.24 (2) and (4) (a) and (b), Stats., for body piercers and body piercing establishments.
•
Recreational and educational camps: Section
254.47 (1), Stats., authorizes the department to issue permits to and regulate recreational and educational camps, as defined under rules. Section
254.47 (1m), Stats., requires the department to conduct a pre-inspection before a permit is granted to a person intending to operate a new recreational or educational camp or to a person intending to be the new operator of an existing recreational or educational camp. Section
254.47 (4), Stats., requires the department to establish by rule, permit fees, pre-inspection fees, re-inspection fees, fees for operating without a permit, and late fees for untimely permit renewal. Section
254.69 (2) (am) and
(d), Stats., authorizes the department to grant agent status to certain local health departments for issuing permits to and making investigations or inspections of recreational and educational camps and permits local health departments with agent status to establish separate fees licensure, including fees for pre-inspections. Section
254.85,
(1) and
(2), Stats., authorizes the department to enter the premises of recreational and educational camps to inspect the premises, secure samples or specimens, examine and copy relevant documents and records or obtain photographic or other evidence needed for enforcement of rules or statutes, and to issue orders to protect the public health safety and welfare. Section
254.86, Stats., authorizes the department to suspend, revoke, or refuse to issue a permit required under s.
254.47, Stats. Chapter
HFS 175 are the department's regulations authorized under ss.
254.47 (1) and
(4) and
254.69 (2), Stats., for recreational and educational camps.
•
Campgrounds: Section
254.47 (1), Stats., authorizes the department to issue permits to and regulate campgrounds, as defined under rules. Section
254.47 (1m), Stats., requires the department to conduct a pre-inspection before a permit is granted to a person intending to operate a new campground or to a person intending to be the new operator of an existing campground. Section
254.47 (4), Stats., requires the department to establish by rule, permit fees, pre-inspection fees, re-inspection fees, fees for operating without a permit, and late fees for untimely permit renewal. Section
254.69 (2) (am) and
(d), Stats., authorizes the department to grant agent status to certain local health departments for issuing permits to and making investigations or inspections of campgrounds and permits local health departments with agent status to establish separate fees licensure, including fees for pre-inspections. Section
254.85 (1) and
(2), Stats., authorizes the department to enter the premises of campgrounds to inspect the premises, secure samples or specimens, examine and copy relevant documents and records or obtain photographic or other evidence needed for enforcement of rules or statutes and to issue orders to protect the public health safety and welfare. Section
254.86, Stats., authorizes the department to suspend, revoke, or refuse to issue a permit required under s.
254.47, Stats. Chapter
HFS 178 are the department's regulations authorized under ss.
254.47 (1) and
(4) and
254.69 (2), Stats., for campgrounds.
•
Hotels, motels, bed and breakfast, tourist rooming houses, restaurants, temporary restaurants, vending machines, and vending machine commissaries: Section
254.68, Stats., require the department to establish by rule, permit fees, pre-inspection fees, re-inspection fees, fees for operating without a permit, and fees for untimely permit or license renewal. Section
254.69 (2) (am) and
(d), Stats., authorizes the department to grant agent status to certain local health departments for issuing permits to and making investigations or inspections of hotels, bed and breakfast, tourist rooming houses, restaurants, temporary restaurants, and permits local health departments with agent status to establish separate fees licensure, including fees for pre-inspections. Section
254.71 (6) (a) and
(c), Stats., requires the department to promulgate rules establishing a fee for certification and recertification of food protection practices to individuals and for issuing of certificates, including application, submittal and review. Section
254.74 (1) (a) and
(d), Stats., requires the department to administer, enforce, and prescribe rules and standards for hotels, bed and breakfast establishments, tourist rooming houses, restaurants, temporary restaurants, vending machines, and vending machine commissaries. Section
254.85,
(1), and
(2), Stats., authorizes the department to enter the premises of lodging and food establishments to inspect the premises, secure samples or specimens, examine and copy relevant documents and records or obtain photographic or other evidence needed for enforcement of rules or statutes, and to issue orders to protect the public health safety and welfare. Section
254.86, Stats., authorize the department to suspend, revoke, refuse to issue a permit required under s.
254.68, Stats. Chapter
HFS 195 are the department's regulations authorized under ss.
254.68, Stats., for hotels, motels, and tourist rooming houses. Chapter
HFS 196 are the department's regulations authorized under ss.
254.68,
254.69,
254.71,
254.74,
254.85,
254.86, Stats., for restaurants. Chapter
HFS 197 are the department's regulations authorized under ss.
254.68,
254.69,
254.71,
254.74,
254.85,
254.86, Stats., for bed and breakfast establishments. Chapter
HFS 198 are the department's regulations authorized under ss.
254.68,
254.69,
254.71,
254.74,
254.85,
254.86, Stats., for vending machines and vending machine commissaries.
Related statute or rule
See “Statutes interpreted" section.
Plain language analysis
Before a person may operate a tattooing or body piercing establishment, recreational or educational camp, campground, hotel, motel, tourist rooming house, bed and breakfast establishment, restaurant, vending machine, or vending machine commissary, the person is required by state law to have a permit or a license issued by the department. In addition, state law prohibits a person from being a tattooist or body piercer without a license, or operating or maintaining a restaurant unless the person or a manager holds a current, valid certified manager's certificate from the department.
The department's Food Safety and Recreational Licensing (FSRL) section conducts the licensing and permitting, inspection, and enforcement activities required under state law for practitioners and establishments regulated under chs.
HFS 173,
175,
178,
195,
196,
197, and
198. In addition, FSRL staff conducts complaint investigations, and provide training and consultation activities to persons seeking a license or permit. As part of the department's general responsibility for oversight of public health, FSRL staff also routinely conducts inspections, without reimbursement, for state, local and private sector entities for activities that are not directly related to the department's regulatory responsibilities. Examples of special condition inspections include sanitation inspections of liquor establishments for liquor licenses, establishment pre-purchase compliance inspections for persons intending to purchase DHFS-regulated facilities, preliminary inspections of complex waterpark facilities, and food safety inspections at schools participating in the National School Lunch (NSLP) or School Breakfast Programs (SBP).
The activities conducted by FRSL staff are supported entirely by fee revenue paid by practitioners and persons licensed or applying to operate an establishment. The department does not receive general purpose revenue for its licensing, permitting, inspection, or enforcement activities. At current fee revenue levels, the Department projects a program deficit of $699,540 in state fiscal year (SFY) 2009 that will increase to $1,799,056 in SFY 2010.
To maintain revenue sufficient to conduct the department's public health regulatory activities, the department proposes to increase current fees, create new fees, and promulgate rules. In order to ease the impact of increased fees, the department is proposing a two-phase fee increase. An initial fee increase will go into effect in state fiscal year 2010 and a second, and generally smaller, fee increase will go into effect in SFY 2012. This two-phased fee increase approach should ensure that the FSRL program can operate without a deficit until 2014. The changes are as follows:
•
HFS 173, relating to tattooing and body piercing establishments, the department proposes to increase license fees, pre-inspection fees, and practitioner fees and to create a re-inspection fee, a fee for late renewal, a fee for operating without a license, a fee for a duplicate license, and a fee for special condition inspections. The proposed rules include fee schedules, provisions clarifying the department's authority or a licensee's requirements under state law relating to the initial and renewal application process, failure to pay fees, and enforcement.
•
HFS 175, relating to recreational and educational camps, the department proposes to increase permit, pre-inspection, and late renewal fees and to create a re-inspection fee, a fee for operating without a permit, and a fee for special condition inspections. The proposed rules include fee schedules, provisions clarifying the department's authority or a permittee's requirements under state law relating to the initial and renewal application process, failure to pay fees, and enforcement.
•
HFS 178, relating to campgrounds, the department proposes to increase permit and late renewal fees and to create pre-inspection and re-inspection fees, a fee for operating without a permit, and a fee for special condition inspections. The proposed rules include fee schedules, provisions clarifying the department's authority or a licensee's requirements under state law relating to the initial and renewal application process, failure to pay fees, and enforcement.
•
HFS 195, relating to hotels, motels, and tourist rooming houses, the department proposes to increase permit, pre-inspection, and late renewal fees and to create a re-inspection fee, a fee for operating without a permit, and a fee for special condition inspections. The proposed rules include fee schedules, provisions clarifying the department's authority or a permittee's requirements under state law relating to the initial and renewal application process, failure to pay fees, and enforcement.
•
HFS 196, relating to restaurants, the department proposes to increase permit, pre-inspection, and late renewal fees and to create a re-inspection fee, a fee for operating without a permit, a fee for operating without a certified operator, and a fee for special condition inspections. In addition to proposed changes relating to fees, the department also proposes to modify ch.
HFS 196 to revise the complexity rating formula under s.
HFS 196.04 for restaurants that handle frozen pre-formed meat patties, chicken breasts, and breaded, chopped or comminuted meats. Specifically, the department intends to re-categorize entities that handle frozen pre-formed meat patties, chicken breasts, and breaded, chopped or comminuted meats to the same level that applies to raw meat handling. Entities that handle frozen and preformed meat patties, chicken breasts, or breaded, chopped or comminuted meats are currently categorized as less complex. Retail food service establishments are rated for complexity based on an evaluative formula. Entities that handle raw meat, poultry and seafood pose a greater risk for introducing food-borne contamination and, as such, have a higher level of complexity and an expectation for more frequent and detailed inspections. However, the department has determined through program evaluation that there is no discernable difference in risk between handling frozen pre-formed meats and raw poultry, meat or seafood. The revision of the risk-based complexity rating formula may, in some instances, result in higher fees. The proposed rules include fee schedules, provisions clarifying the department's authority or a permittee's requirements under state law relating to the initial and renewal application process, failure to pay fees, and enforcement.
•
HFS 197, relating to bed and breakfast establishments, the department proposes to increase permit, pre-inspection, and late renewal fees; and to create a re-inspection fee, a fee for operating without a permit, and a fee for special condition inspections. In addition to modifying and creating fees, the department may update the rules as needed to ensure continued consistency between rules and current practice. The proposed rules include fee schedules, provisions clarifying the department's authority or a permittee's requirements under state law relating to the initial and renewal application process, failure to pay fees, and enforcement.
•
HFS 198, relating to vending of food, the department proposes to increase permit, pre-inspection, and late renewal fees; and to create a re-inspection fee, a fee for operating without a permit, and a fee for special condition inspections. In addition to modifying and creating fees, the department may update the rules as needed to ensure continued consistency between rules and current practice. The proposed rules include fee schedules, provisions clarifying the department's authority or a permittee's requirements under state law relating to the initial and renewal application process, failure to pay fees, and enforcement.
Comparison with federal regulations
There appear to be no proposed or existing federal regulations relating to fees or general operating requirements for the businesses operating.
Comparison of rules in adjacent states
Illinois: The State of Illinois has very little centralized environmental health regulatory infrastructure. Illinois has no state fee structure for providing environmental health regulatory services such as restaurant, lodging, or public pool inspections. Each local public health jurisdiction may create its own environmental health services fee structure. Given the different regional levels of affluence and local costs of living in Illinois, local environmental health regulatory fees vary widely. For this reason, it is difficult to compare Wisconsin's state Food Safety and Recreational Licensing (FSRL) fees to similar fees in Illinois.
According to the Illinois Department of Public Health's website (
www.idph.state.il.us), “Currently, [the Illinois Department of Public Health] IDPH provides very limited direct environmental health services through some of its regional offices. IDPH staff only respond to complaints about food service establishments; no routine inspections are provided to promote quality food handling practices in restaurants."
Iowa: In Iowa, food service establishments, lodging facilities, and vending machines are regulated by the Iowa Department of Inspections and Appeals' Food and Consumer Safety Bureau. Pools and water attractions and tattooing and body piercing are regulated by the Iowa Department of Public Health.
Food Service Establishment Fees
The Iowa Department of Inspections and Appeals (IDIA) raised their environmental health service fees on July 1, 2007. The IDIA sets fees according to a food service establishment's (restaurant's) annual gross sales. According to Judy Harrison, Chief of the Food and Consumer Safety Bureau, food service establishments must provide proof (i.e. quarterly financial reports) of gross sales or they will be charged the highest fee.
Iowa and Wisconsin based their food service establishment fees structures on very different principles: food establishment annual gross sales versus risk of food-borne illness due to food preparation complexity. Iowa's existing fee schedule and Wisconsin's proposed schedule are presented side-by-side below. Although the basis for the fee schedules is quite different, Wisconsin's proposed fees are in relatively the same range as Iowa's fees for food service establishments.
Iowa's 2007 Food Service Fee Schedule
|
|
Wisconsin's Proposed Food Service Fee Schedule
|
Food Service Establishment Annual Gross Sales
|
Fee
|
|
Food Service Establishment Type
|
Proposed SFY 2010 Fee
|
Proposed SFY 2012 Fee
|
$1 to <$50,000
|
$67.50
|
|
|
|
|
$50,000 to <$100,000
|
$114.50
|
|
Restaurant, Pre-Packaged
|
$90.00
|
$105.00
|
$100,000 to <$250,000
|
$236.25
|
|
Restaurant, Simple
|
$195.00
|
$230.00
|
$250,000 to <$500,000
|
$275.00
|
|
Restaurant, Moderate
|
$300.00
|
$330.00
|
=$500,000
|
$303.75
|
|
Restaurant, Complex
|
$430.00
|
$540.00
|
Mobile Food Unit
|
$27.00
|
|
|
|
|
Temporary Food Establishment
|
$33.50
|
|
Temporary Restaurant
|
$150.00
|
$170.00
|
Farmer's Market
|
$100.00
|
|
|
|
|
Lodging Fees.
Iowa's fees for lodging facilities are based on the number of guest rooms per facility. Iowa does not differentiate among tourist rooming houses (TRHs), bed and breakfasts (B&Bs) and hotels. Wisconsin sets different fees for TRHs, B&Bs and hotels. In Wisconsin, hotels have base fees with proposed additional, per-room fee. Although the different bases for Iowa's and Wisconsin's lodging fees make a comparison difficult, the respective current and proposed lodging fees are presented below.
Iowa's 2007 Lodging Fee Schedule
|
|
Wisconsin's Proposed Lodging Fee Schedule
|
Number of Lodging Facility Guest Rooms
|
Fee
|
|
Lodging Type
|
Proposed SFY 2010 Fee
|
Proposed SFY 2012 Fee
|
1 – 15 Rooms
|
$27.00
|
|
Bed and Breakfast
|
$100.00
|
$110.00
|
16 – 30 Rooms
|
$40.50
|
|
Tourist Rooming House
|
$120.00
|
$135.00
|
31 – 75 Rooms
|
$54.00
|
|
|
|
|
76 – 149 Rooms
|
$57.50
|
|
Hotel, 5 – 30 Rooms
|
$165.00
|
$205.00
|
=150 Rooms
|
$101.25
|
|
Hotel, 31 – 99 Rooms
|
$260.00
|
$280.00
|
|
|
|
Hotel, 100 – 199 Rooms
|
$330.00
|
$355.00
|
|
|
|
Hotel, 200 + Rooms
|
$400.00
|
$490.00
|
Vending.
Iowa and Wisconsin take different approaches to ensuring the safety of food in vending machines – making a comparison of these fees very difficult. The respective food vending fees are as follows:
Iowa's 2007 Vending Fee Schedule
|
|
Wisconsin's Proposed Vending Fee Schedule
|
Units
|
Fee
|
|
Unit or Vending Type
|
Proposed 2010 Fee
|
Proposed
SFY 2012 Fee
|
Vending Machine (First Machine)
|
$20.00
|
|
Vending Machine Commissary
|
$230.00
|
$280.00
|
|
|
|
Vending Machine Storage
|
$150.00
|
$215.00
|
Each Additional Vending Machine
|
$5.00
|
|
Vending Machine Operator
|
$125.00
|
$125.00
|
|
|
|
Vending Machine Sticker
|
$8.00
|
$9.00
|
The department was not able to compare its fees for campground and recreational and educational camps with Iowa's fees.
Michigan: Michigan has no statewide structure or schedule for environmental health regulatory service fees. Similarly, Michigan state agencies do not provide environmental health services. Each local jurisdiction (typically county) in Michigan is required to have a local public health agency and each local agency must provide environmental health regulatory services. Fees are locally set. With each fee, a surcharge is remitted to the state for maintenance of a centralized office to provide oversight and technical support.
In Michigan, differing levels of affluence and local costs of living result in widely varying local fee structures. The State's annual surcharge fees are developed and are raised each year based on specific cost-of-living indexes. A letter, dated August 31, 2007, from the Michigan Department of Agriculture to all Local Health Departments detailed the 2008/2009 state adjustments to food service license fees. The state surcharges on local health departments fees will be as follows:
Michigan's 2008/2009 Additional State Fees (“Surcharges") onto Local Health Department Fees
|
Pool or Pool Feature Type
|
Fee
|
Food Service Establishment
|
$27.00
|
Food Service Establishment, Non-Profit [501(C)(3)]
|
$0.00/$5.00
|
Mobile Food Establishment
|
$27.00
|
Mobile Food Commissary
|
$27.00
|
Temporary Food
|
$8.00
|
Temporary Food, Non-Profit [501(C)(3)]
|
$5.00
|
Special Transitory Food Unit
|
$40.00
|
Special Transitory Food Unit, Non-Profit [501(C)(3)]
|
$5.00
|
Schools
|
$27.00
|
Vending Machine Location
|
$3.00
|
In Michigan, local public health agencies collect annual environmental health regulatory service license fees. The state surcharge is added to the local fee and is remitted to the state. Local food service fees are based on facility size (seating).
Minnesota: Minnesota maintains a fee schedule and environmental health regulatory service system very similar to Wisconsin. Chapter
157 of the Minnesota Statute entitled, “Food, Beverage, and Lodging Establishments", contains Minnesota's 2007 fee schedule. As in Wisconsin, local public environmental health regulatory agencies may, and often do, assess higher fees. Minnesota's fees in comparison to Wisconsin's proposed 2008 fees are as follows:
Minnesota's 2007 Environmental Health
Service Fee Schedule
|
|
Wisconsin's Proposed Food Service Fee Schedule
|
License Type
|
Fee
|
|
License Type
|
Proposed SFY 2010 Fee
|
Proposed SFY 2012 Fee
|
Annual Hospitality Fee (All food, beverage and lodging establishments)
|
$35.00
|
|
|
|
|
Annual Base Fee (All food, beverage and lodging establishment except Special Event Food Stands)
|
$150.00
|
|
|
|
|
Annual Base Fee (Special Event Food Stand)
|
$40.00
|
|
|
|
|
Food Service, Limited Menu/Pre-Packaged*
|
$235.00
|
|
Restaurant, Pre-Packaged
|
$90.00
|
$105.00
|
Food Service , Small/Simple*
|
$285.00
|
|
Restaurant, Simple
|
$195.00
|
$230.00
|
Food Service, Medium/Moderate*
|
$345.00
|
|
Restaurant, Moderate
|
$300.00
|
$330.00
|
Food Service, Large/Complex*
|
$545.00
|
|
Restaurant, Complex
|
$430.00
|
$540.00
|
Temporary/Mobile Food Carts/Stands*
|
$240.00
|
|
Temporary Restaurant
|
$150.00
|
$170.00
|
Certified Food Manager
|
$28.00
|
|
Certified Food Manager
|
$10.00
|
$15.00
|
School, Second Annual Inspection
|
$300.00
|
|
|
|
|
Lodging*
|
$185.00
|
|
Hotel, 5 – 30 Rooms
|
$165.00
|
$205.00
|
Lodging (per sleeping accommodation unit, not to exceed $800)
|
$8.00
|
|
Hotel, 31 – 99 Rooms
|
$260.00
|
$280.00
|
|
|
|
Hotel, 100 – 199 Rooms
|
$330.00
|
$355.00
|
|
|
|
Hotel, 200 + Rooms
|
$400.00
|
$490.00
|
Operating without a License (mobile food unit, seasonal or special event food stand)
|
$50.00
|
|
Operating without a License
|
$749.00
|
$749.00
|
Operating without a License for =30 days (restaurant, food cart, lodging establishment)
|
$100.00
|
|
Operating without a License
|
$749.00
|
$749.00
|
Operating without a License for >30 days (restaurant, food cart, lodging establishment)
|
$300.00
|
|
Operating without a License
|
$749.00
|
$749.00
|
*Includes Annual Hospitality Fee and applicable Annual Base Fee
In almost every license type, the environmental health regulatory service fees assessed by the Minnesota Department of Health exceed those proposed by the Wisconsin Division of Public Health.
Summary of factual data and analytical methodologies
The department developed the proposed fees by researching demographic trends, economic growth, the number of regulated establishments, environmental health regulatory staffing levels, and operating costs. The proposed fees and related administrative codes were established in collaboration with representatives of the regulated industry and its small businesses. The department's collaborative efforts were intended to ensure that any regulatory burdens and fiscal impacts were minimized. In many cases, the department and the collaborating regulated industry representatives replaced flat fees (fees not based on facility size, complexity or risk) with a series of graduated fees that were differentiated according to facility size, complexity and public health risk. From an evaluation of past and present conditions, the department developed projections for future workloads and operating costs. Operating expenses for State Fiscal Year 2010 were used as the benchmark for the revenue neutral fee increases. The department relied on all of the following sources to determine the impact the proposed fees and rules may have on small businesses:
•
The 2002 Economic Census – Wisconsin Geographic Series, which is compiled by the U.S. census bureau every five years for each year ending in “2" and “7" and contains the latest available economic data compiled on businesses located in Wisconsin.
•
Criteria adopted by the department and approved by the Wisconsin Small Business Regulatory Review Board to determine whether the department's proposed rules would have a significant economic impact on a substantial number of small businesses. Pursuant to the department's criteria, a proposed rule would have a significant economic impact on a substantial number of small businesses if at least 10% of the businesses affected by the proposed rules are small businesses and if operating expenditures, including annualized capital expenditures, increase by more than the prior year's consumer price index or revenues are reduced by more than the prior year's consumer price index. For the purposes of this rulemaking, 2007 is the index year. The consumer price index is compiled by the U.S. Department of Labor, Bureau of Labor Statistics and for 2007 is 2.8 percent.
•
Records maintained in the department's Digital Health Department Field Licensing and Inspection Program (FLIP) on the regulated entities, as of August 2007. This data was used to determine the number of entities licensed or certified by the department or its agents.
•
An August 10, 2005, press release (Scott Larrivee, Public Information Officer) from the Wisconsin Department of Administration (DOA), entitled Wisconsin Population Continues to Rise, that states “Estimates released by the Department of Administration's Demographic Services Center today show a four percent increase in Wisconsin's population since the 2000 U.S. Census." Over a five-year period, the four percent increase represented an average population growth of 0.8% per year. Because the department had no historical data on the rate of increase of regulated establishments, the department determined that the number of regulated facilities will grow at a rate roughly equivalent to the growth of Wisconsin's population. Therefore, for the purpose of projecting programmatic inspection loads and eventual fee revenue, regulated establishment growth was projected at 0.8% per year.
•
Inflation rates from the Bureau of Labor Statistics for a 20 year period from 1987 through 2007, for use in projecting future department operating costs.
•
Department data regarding historical staffing levels of department environmental health inspectors during the period 1999 through 2007. The following are the results.
Year
|
1999
|
2000
|
2001
|
2002
|
2003
|
#Inspectors
|
26
|
26
|
25.75
|
26
|
25
|
Year
|
2004
|
2005
|
2006
|
2007
|
|
#Inspectors
|
24
|
23.5
|
22
|
22
|
|
•
Wage increase data from the Wisconsin Science Professionals (WSP). Additional wage increase data was obtained from the State of Wisconsin Office of State Employment Relations' (OSER)
Compensation Plan 2005-2007, to assess the influence of wage increases on program operating costs and to accurately project future operating costs. The WSP provided the FSRL Section with draft
Wage Adjustment Summaries, 1989 through 2003-05 Contracts. The summary, dated January 2006, was prepared by Marie Stewart. From the WSP and from OSER data, the FSRL Section determined that, for the period 1987 through 2007, the wages of DPH Environmental Health regulatory service staff rose an average of 2.3% per year. In its November 2007
WSP Bargaining Bulletin, the WSP referenced an October 2007 presentation by the union to the Wisconsin legislature's Joint Committee on Employment Relations (JCOER). The presentation highlighted the “Forgotten 8" job classifications – which includes Environmental Health Specialists and Public Health Sanitarians – whose wages have not kept pace with similar or identical classifications in neighboring states. The WSP discovered the following average hourly pay differentials for Environmental Health Specialists and Public Health Sanitarians between Wisconsin and neighboring Midwestern states. In each case, the hourly wages of Wisconsin Environmental Health Specialists and Public Health Sanitarians, as shown below, trailed behind those of the colleagues in neighboring Midwestern states.
Classification:
|
Environmental Health Specialist – Advanced
|
Environmental Health Specialist – r
|
Public Health
Sanitarian – Advanced
|
Public Health
Sanitarian - Senior
|
Average Wis. Hourly Pay Differential to Neighboring Midwestern States:
|
-$6.16
|
-$3.35
|
-$5.56
|
-$5.18
|
•
Standards published in the draft Voluntary National Retail Food Regulatory Program Standards (January 2005) published by the U.S. Food and Drug Administration (FDA) which includes recommendations on resource and staffing levels. The FDA in Standard No. 8 Program Support and Services, recommends staffing levels of one full-time staff devoted to food for every 280 – 320 inspections performed to determine an estimate or recommended levels of inspections.
•
Department data on the number of inspections performed by department inspectors. The department determined that approximately 30% of licensed facilities will require re-inspection each year. Therefore, inspectors will perform 1.3 annual inspections per facility. Using the FDA recommended level of 280 – 320 inspections per inspector; each inspector should have a workload of 215 – 246 establishments. The department determined that its workforce of 22 inspectors (as of August 2007) had a workload of 734 licenses establishments per department inspector. This workload is three times higher than that recommended by the FDA.
•
Time study data of state and local agent health department inspectors, conducted by the department in Summer 2007. The study sought to determine the amount of time that was spent by a representative group of inspectors on the categories of food safety and recreational licensing licenses. In the survey, the department asked inspectors to identify the amount of time (as percent) they spent on restaurants, schools (food service inspections), lodging, campgrounds, public pools and water attractions, campgrounds, vending machines and body art (tattooing and piercing). The study determined that inspectors were allocating their time in the following manner:
Category
|
Restaurants
|
Schools (Food Service)
|
Lodging
|
Pools & Water Attractions
|
Camp-grounds
|
Vending Machines
|
Body Art
|
% of Time
|
52%
|
8%
|
18%
|
8%
|
6%
|
1%
|
7%
|
