NOTICE OF EXEMPT RULEMAKING

TITLE 3. AGRICULTURE

CHAPTER 2. DEPARTMENT OF AGRICULTURE

ANIMAL SERVICES DIVISION

Editor's Note: The following Notice of Exempt Rulemaking was reviewed per Executive Order 2012-03 as issued by Governor Brewer. (See the text of the executive order on page 2092.)

[R12-152]

PREAMBLE

2. Citations to the agency's statutory rulemaking authority to include the authorizing statute (general) and the implementing statute (specific), and the statute or session law authorizing the exemption:

Authorizing statute: A.R.S. § 3-107(A)(1); Laws 2012, Ch. 303, § 15

Implementing statute: Laws 2012, Ch. 303, § 15; A.R.S. §§ 3-607, 3-619(A), 3-1337, 3-2003, 3-2081

Statute or session law authorizing the exemption: Laws 2012, Ch. 303, § 15

3. The effective date of the rule and the agency's reason it selected the effective date:

August 2, 2012. The effective date of the rule is based on the effective date of the law authorizing the rulemaking.

4. A list of all notices published in the Register as specified in R1-1-409(A) that pertain to the record of the exempt rulemaking:

None

5. The agency's contact person who can answer questions about the rulemaking:

6. An agency's justification and reason why a rule should be made, amended, repealed, or renumbered to include an explanation about the rulemaking:

This rulemaking continues certain fees increased in fiscal years 2011 and 2012 for fiscal year 2013 for services provided in fiscal year 2013. See Notice of Exempt Rulemaking: 17 A.A.R. 1756 (Sept. 2, 2011) & 16 A.A.R. 1331 (July 23, 2010). The legislature appropriates general funds to the Department based on projected revenues from these fees, and then when these fees are collected, they will be returned to the general fund. In essence, the legislature advances the funds anticipated to be collected during the year from these fees with the expectation that the Department will return what is actually collected. By continuing these fee increases, the Department anticipates it will be able to collect an amount similar to that appropriated by the legislature for this purpose. This rulemaking is exempt from Executive Order 2012-03 pursuant to paragraph 2(f) because it fulfills an obligation related to fees and is necessary to implement the state budget that was certified by the Governor's Office of Strategic Planning and Budgeting.

The service charge fee for livestock inspection under A.R.S. § 3-1337 will be $10, which is the same fee charged for fiscal years 2009 through 2012.

The license to slaughter fees under A.R.S. § 3-2003 will continue to be $250, $300 and $450. The fees for processing, pet food manufacturing, and meat transportation licenses will continue to be $300, broker, jobber, and meat storage licenses will continue to be $450, and distributor licenses will continue to be $500. See A.R.S. § 3-2081.

Manufacturing milk processing plant and wholesale distributor licenses will continue to be $100 and milk sampler licenses and renewals will continue to be $50 and $30 respectively. Distributing plant licenses will continue to cost $300 plus $2,500 for each of the facility's pasteurizers. Similarly, producer-distributor licenses for IMS (interstate milk shipper) listed facilities will continue to cost $150 plus $2,500 for each of the facility's pasteurizers. The license fee for non-IMS listed producer-distributors will continue to be $150, the same rate as the prior four years. The Department performs quarterly inspections on pasteurizers, which is why it determined to base fees on the number of pasteurizers. See A.R.S. §§ 3-607 & 3-619.

The fee for a license to engage in the manufacture of dairy trade products will continue to be $100, the amount set out in A.R.S. § 3-665(B). This fee is included in the rule only for completeness.

7. A reference to any study relevant to the rules that the agency reviewed and either relied on or did not rely on in its evaluation of or justification for the rules, where the public may obtain or review each study, all data underlying each study, and any analysis of each study and other supporting material:

None

8. A showing of good cause why the rulemaking is necessary to promote a statewide interest if the rulemaking will diminish a previous grant of authority of a political subdivision of this state:

Not applicable

9. The summary of the economic, small business, and consumer impact, if applicable:

Laws 2012, Ch. 303, § 15 authorizes an exemption from the rulemaking requirements of A.R.S. Title 41, Chapter 6 for the purpose of establishing fees pursuant to those sections until July 1, 2013. As a result, this rulemaking is exempt from the requirements of the Administrative Procedures Act and no economic, small business, and consumer impact statement is required.

10. A description of any changes between the proposed rulemaking, including any supplemental proposed rulemaking, and the final rulemaking package (if applicable):

Not applicable

11. An agency's summary of the public or stakeholder comments made about the rulemaking and the agency response to the comments, if applicable:

None received

12. Any other matters prescribed by statute that are applicable to the specific agency or to any specific rule or class of rules. When applicable, matters shall include, but not be limited to:

The Department of Agriculture Advisory Council voted on June 21, 2012 in favor of continuing the fees set out in this rulemaking through FY2013.

a. Whether the rule requires a permit, whether a general permit is used and if not, the reasons why a general permit is not used:

Rule 203 requires a license to conduct certain activities. Rule 701 does not require a permit, and rule 810 sets out fees for certain licenses but does not itself require or establish any permits or licenses. The Department does not use a general permit for rule 203 because that would increase the cost for licensees by requiring them to pay the licensing fee for activities that the licensees do not engage in. Additionally, any duplication of information provided by an applicant to obtain multiple licenses would be minimal.

b. Whether a federal law is applicable to the subject of the rule, whether the rule is more stringent than the federal law and if so, citation to the statutory authority to exceed the requirements of federal law:

Not applicable

c. Whether a person submitted an analysis to the agency that compares the rule's impact of the competitiveness of business in this state to the impact on business in other states:

No

13. A list of any incorporated by reference material and its location in the rule:

None

14. Whether the rule was previously made, amended, repealed or renumbered as an emergency rule. If so, the agency shall state where the text changed between the emergency and the exempt rulemaking packages:

No

15. The full text of the rules follows:

TITLE 3. AGRICULTURE

CHAPTER 2. DEPARTMENT OF AGRICULTURE

ANIMAL SERVICES DIVISION

ARTICLE 2. MEAT AND POULTRY INSPECTION

ARTICLE 7. LIVESTOCK INSPECTION

ARTICLE 8. DAIRY AND DAIRY PRODUCTS CONTROL

ARTICLE 2. MEAT AND POULTRY INSPECTION

R3-2-203. Licenses; Registration; Records

A. No change

1. No change

a. No change

b. No change

i. No change

ii. No change

2. No change

a. No change

b. No change

c. No change

d. No change

e. No change

f. No change

g. No change

B. No change

1. No change

2. No change

3. No change

C. No change

D. During fiscal year 2011 and fiscal year 2012 2013, the fee to obtain or renew a license to slaughter is:

1. For not to exceed 45 head of cattle, and not to exceed 55 head of sheep, goats or swine in one calendar year, $250.

2. For more than 45 and not to exceed 150 head of cattle and more than 45 and not to exceed 160 head of sheep, goats or swine in one calendar year, $300.

3. For more than 150 head of cattle and more than 160 head of sheep, goats or swine in any one calendar year, $450.

E. During fiscal year 2011 and fiscal year 2012 2013, the fee to obtain or renew a meat license is:

1. For a broker, $450.

2. For exempt processing, $300.

3. For a distributor, $500.

4. For a jobber, $450.

5. For a pet food manufacturer, $300.

6. For a processor, $300.

7. For meat storage, $450.

8. For transportation, $300.

ARTICLE 7. LIVESTOCK INSPECTION

R3-2-701. Department Livestock Inspection

A. No change

1. No change

2. No change

3. No change

B. No change

C. No change

D. During fiscal year 2011 and fiscal year 2012 2013, livestock officers and inspectors shall collect from the person in charge of cattle, dairy cattle, or sheep inspected a service charge of $10 plus the per head inspection fee set out in A.R.S. § 3-1337 for making inspections for the transfer of ownership, sale, slaughter or transportation of the animals.

ARTICLE 8. DAIRY AND DAIRY PRODUCTS CONTROL

R3-2-810. License Fees

During fiscal year 2011 and fiscal year 2012 2013, an applicant shall pay the following fee to obtain or renew a dairy license:

1. For a license to operate a milk distributing plant or business, $300 plus $2,500 per pasteurizer.

2. For a license to operate a manufacturing milk processing plant, $100.

3. For a license to engage in the business of producer-distributor as an interstate milk shipper listed facility, $150 plus $2,500 per pasteurizer.

4. For a license to engage in the business of producer-distributor, $150.

5. For a license to engage in the business of producer-manufacturer, $25.

6. For a license to engage in the manufacture of trade products, $100.

7. For a license to engage in the business of selling at wholesale milk or dairy products, or both, $100.

8. For a license to sample milk or cream, an initial fee of $50 and a renewal fee of $30.