Reduces licensing fees for certain food processing establishments

BILL NUMBER:A9169

Title of bill

An act to amend the agriculture and markets law, in relation to licensing fees for food processing establishments

Purpose

To provide a Pay-for-Performance incentive for businesses to receive their licenses for a lower cost if their business possesses the least amount of Potential Hazard and had zero deficiencies during their annual audit.

Summary of provisions

Section 251-z-3 - Adds language allowing for the bi-annual licensing fee for food processing to be reduced by 20% for each year (for a maximum of 40%)the business has: a) the lowest poten- tial hazard; and b) passes its first and only yearly audit with no defi- ciencies. The reduction will be provided if and only if a copy of successful inspection (with zero deficiencies) is included with the renewal application.

Justification

The issue of Food Processing Licenses is handled within the Division of Food Processing in the Department of Agriculture and Markets, as each Division has its own licensing office. 2009 will be the first year that a graduated scale exists regarding Food Processing Licenses. A graduated scale, of $400 or $900 was enacted last year; the Department is still vetting how to formulate the new rules to determine who will have to pay the $900 fee.

The intent of the graduated fee is to make the Division of Feed Safety self-sufficient. The old fee of approximately 27 cents per day, has been more than doubled with the new $400 fee and quadrupled with the $900 fee. For the last six years the fee was $200 bi-annually and before that it was $70.

There are approximately 22,000 establishments requesting food processing licenses across the state. Many.of them are small businesses that must pay this fee regardless of how small their operation. For example, the fee must be paid by a convenience store merely for having a capo chino machine. Therefore, this bill will help soften the blow of such a dras- tic increase in fees, while at the same time providing an incentive to keep a clean shop.

The Division breaks down businesses into categories based on their Indi- cator of Potential Hazard (IPH) rather than the size of the business. For every year that an IPH 3 business (the lowest level -which is the category with the most businesses) that has only one inspection and passes with zero Deficiencies, that owner can send in a copy of the successful inspection and receive 20%, per successful year, off the following two year license if and only if proper documentation is sent with the renewal application

Example: Food-are-us is an IPH 3 business that was inspected once in 2009. It received zero Critical Deficiencies and zero general Deficien- cies. In its sole 2010 inspection, the same business received zero Crit-

ical and one General Deficiency. When Food-are-us reapplies for a Food Processing license, if it includes the successful 2009 audit in its renewal application, it will receive a total of 20i off its following bi-annual license.

Legislative history

New bill.

Fiscal implications

Undetermined.

Local fiscal implications

None.

Effective date

180 days after it shall have become a law.