STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA 2049 (R 07/2011)
ADMINISTRATIVE RULES
FISCAL ESTIMATE AND
ECONOMIC IMPACT ANALYSIS
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Type of Estimate and Analysis
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X Original Updated Corrected
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Administrative Rule Chapter, Title and Number
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ATCP 70, Food Processing Plants
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Subject
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Wisconsin's Shellfish Shippers and Processors
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Fund Sources Affected
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Chapter 20 , Stats. Appropriations Affected
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GPR FED PRO PRS SEG SEG-S
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Fiscal Effect of Implementing the Rule
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X No Fiscal Effect
Indeterminate
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Increase Existing Revenues
Decrease Existing Revenues
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Increase Costs
X Could Absorb Within Agency's Budget
Decrease Costs
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The Rule Will Impact the Following (Check All That Apply)
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X State's Economy
Local Government Units
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X Specific Businesses/Sectors
Public Utility Rate Payers
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Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
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Policy Problem Addressed by the Rule
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This proposed rule would modify ch. ATCP 70, Food Processing Plants, to incorporate changes that apply to processing molluscan shellfish (e.g., oysters, clams and scallops). Currently, Wisconsin food processors may only sell these products within the state. The rule would establish a voluntary program that would allow Wisconsin businesses to process and repack molluscan shellfish for sale in other states and internationally. In general, the proposed rule adopts portions of the National Shellfish Sanitation Program Guide for the Control of Molluscan Shellfish (2009), which sets the sanitary control standards for molluscan shellfish for human consumption.
The rule revisions would add Wisconsin as a member of the Interstate Shellfish Sanitation Conference (ISSC). The ISSC is the primary voluntary national organization of state shellfish regulatory officials; it provides guidance and counsel on matters for the sanitary control of shellfish. The ISSC entered into a memorandum of understanding with the FDA to create a federal and state cooperative program called the National Shellfish Sanitation Program (NSSP). The NSSP promotes uniformity and improves the sanitation of shellfish moving in interstate commerce. Participating states codify this guidance to regulate the processing of shellfish in their jurisdictions for interstate commerce. FDA then recognizes regulations based on the guidance as suitable for ensuring compliance with the Federal Food, Drug and Cosmetic Act. Under the rule, Wisconsin food processing businesses that meet the standard would then be certified to process and ship shellfish in interstate commerce. Thirty-seven other states are currently members of ISSC. The rule does all of the following:
• Defines terms related to activities associated with the receipt, processing, labeling, and shipping of molluscan shellfish.
• Modifies current rules to include provisions of the National Shellfish Sanitation Program (NSSP) and the guidelines of the Interstate Shellfish Sanitation Conference (ISSC) related to receiving, processing, repacking, labeling and shipping molluscan shellfish for wholesale interstate trade.
• Applies existing standards for facilities, sanitation, and personal hygiene in food processing plants to molluscan shellfish shippers and reprocessors.
• Sets standards for record-keeping consistent with NSSP guidelines.
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Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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Businesses and Business Sectors
The rule was requested by businesses that expressed an interest in processing and repackaging molluscan shellfish for sale in other states. Large businesses that provide wholesale food products to retail food establishments, restaurants, and other wholesale food industries nationwide are most likely to participate in the program. The rule will provide these large-scale food wholesalers with the option, under a food processing plant license, of breaking down and further processing shipments of molluscan shellfish to Wisconsin to meet the needs of their customers in other states.
The department believes small businesses are unlikely to participate in the program, with current regulations that allow small business to receive and sell molluscan shellfish in their local market sufficient to meet their needs. However, the department expects any small business licensed as a food processor and who chooses to participate in the program to be able to easily meet program requirements.
The department is unable to quantify the compliance costs to businesses of this rule, but these costs are expected to be minimal. The provisions of this rule are consistent with general facility and sanitation standards that food processors must already meet. Businesses that choose to participate in the program would not need to modify existing facilities or implement unusual recordkeeping. Participation in the program is voluntary and only businesses that choose to sell molluscan shellfish in interstate commerce would be required to meet the requirements. There will be no additional licensing fees beyond those already required for a food processing license.
State's Economy
Wisconsin does not produce molluscan shellfish, but some businesses bring this product in from other states and package and reprocess it for sale within the state. This rule will allow these businesses to sell this product in interstate commerce. Although the department cannot quantify the positive economic impact, this rule will benefit Wisconsin's economy by opening this new market and it will allow certain Wisconsin food processing businesses who participate in the program to increase sales. Adopting this rule will help eliminate an economic disadvantage with the 37 other states who currently participate in the program and allow the sale of molluscan shellfish in interstate commerce. For example, the rule will put Wisconsin on an equal footing with molluscan shellfish shippers and processors in Illinois-specifically in the Chicago area. The rule will also allow large wholesalers operating in several states to have the option of locating molluscan shellfish processing operations in Wisconsin, which may be more convenient for servicing markets in other states such as the Twin Cities, Michigan's Upper Peninsula, Iowa and the Dakotas.
Local Governmental Units and Public Utility Rate Payers
The rule will have no impact on local governmental units or public utility rate payers.
Economic Impact Analysis Comments
DATCP posted the proposed rule online as required under Wis. Stat. s. 227.137 and solicited comments from food processor businesses that the department believed might have an interest in processing and packaging molluscan shellfish for interstate sales, the Midwest Food Processors Association, the Wisconsin Restaurant Association, the Wisconsin Grocers Association, and state and local health employees. The department did not receive any comments on the economic impact of the rule.
Fiscal Impact
This rule will not have a significant fiscal impact on state government and DATCP will absorb any costs with current budget and staff since food processing plants are already regulated by DATCP. This rule will have no fiscal effect on local governments.
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Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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This rule will have a positive impact on business in Wisconsin by opening new markets in other states for processed or repackaged molluscan shellfish for businesses that choose to participate in the program. If the rule is not implemented, there will be no provision to allow state food processing plants to process and repackage shellfish obtained from outside the state for sale in interstate commerce. If the rule is not adopted, Wisconsin will continue to have an economic disadvantage to other states, such as Illinois, that have adopted the standards and allow interstate sales of processed and repackaged molluscan shellfish.
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Long Range Implications of Implementing the Rule
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There are no long range negative implications of implementing the rule. In the long run, the rule will allow certain Wisconsin businesses to increase sales of molluscan shellfish in interstate commerce, while also helping to protect the public health of consumers who purchase molluscan shellfish.
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Compare With Approaches Being Used by Federal Government
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There is no federal law related to the transportation and processing of molluscan shellfish. However, FDA administers the National Shellfish Sanitation Program (NSSP), which developed a model ordinance that states may use to develop uniform shellfish regulations. Compliance with the model ordinance is deemed consistent with meeting applicable provisions in the Federal Food, Drug and Cosmetic Act.
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Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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Illinois is the only surrounding state currently participating in this program. Iowa, Michigan, and Minnesota do not participate and may be potential customers for molluscan shellfish sold by Wisconsin businesses.
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Name and Phone Number of Contact Person
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Tim Anderson
Chief, Regulatory and Technical Services
Department of Agriculture, Trade and Consumer Protection-Division of Food Safety
P.O. Box 8911
Madison, WI 53708-8911
Telephone (608) 224-4716
E-Mail: Timothy.Anderson@wisconsin.gov
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STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
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Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
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ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
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1. Type of Estimate and Analysis
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X Original
Updated
Corrected
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2. Administrative Rule Chapter, Title and Number
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Chapter 76, Title Loans
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3. Subject
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Title Loans
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4. Fund Sources Affected
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5. Chapter 20, Stats. Appropriations Affected
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GPR FED X PRO PRS
SEG SEG-S
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s. 20.144 (1) (g)
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6. Fiscal Effect of Implementing the Rule
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X No Fiscal Effect
Indeterminate
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Increase Existing Revenues
Decrease Existing Revenues
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Increase Costs
Could Absorb Within Agency's Budget
Decrease Cost
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7. The Rule Will Impact the Following (Check All That Apply)
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State's Economy
Local Government Units
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X Specific Businesses/Sectors
Public Utility Rate Payers
Small Businesses (if checked, complete Attachment A)
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8. Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes
X No
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9. Policy Problem Addressed by the Rule
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2011 Wisconsin Act 32 requires the department to promulgate rules to approve the sources used to determine market value for vehicles in title loans.
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10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
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Industry representatives and consumer groups.
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11. Identify the local governmental units that participated in the development of this EIA.
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None.
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12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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None.
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13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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Provides guidance and clarification to the industry related to title lending.
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14. Long Range Implications of Implementing the Rule
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Continued guidance and clarification for the industry.
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15. Compare With Approaches Being Used by Federal Government
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None.
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16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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Michigan and Iowa have no related rules. Illinois has rules covering title lending, but the rules do not cover market value sources. Minnesota has a limited number of rules regarding licensed regulated lenders, but nothing that specifically addresses this subject.
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17. Contact Name
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18. Contact Phone Number
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Susan Dietzel
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608-267-0399
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