Provides that a person shall be refunded a prorated amount of his or her license fee if he or she leaves the food processing establishment

2 Co-sponsors

• Michael H. Ranzenhofer
• James L. Seward

BILL NUMBER:S6693C

Title of bill

An act to amend the agriculture and markets law, in relation to refunding a fee for withdrawal from a food processing estab- lishment

Purpose

To pro-rate the license fee paid by applicants for a food processing establishment license in certain cases

Summary of provisions

Section one amends Section 251-z-3 of the Agriculture and Markets Law, to allow for a pro rating of the license fee paid for a food establish- ment license by an applicant from an establishment that has as its only full time employees the owner or the owner's parent, spouse, or child, and/or not more than two full time employees, when that applicant vacates a food processing establishment more than six months prior to the expiration of the license period and, re-applies for a new license at another establishment within one year. The applicant's license cannot be suspended or revoked pursuant to

Section 251-z-5 of the Agriculture and Markets Law. The commissioner may establish rules and regulations governing the prorating of such fees and the application of such fees from a prior license to a new one.

Section two provides the effective date.

Existing law

Under current law, if an applicant vacates a food processing establish- ment prior to the expiration of the license period, they forfeit the entire license fee paid for that biennial period.

Justification

Currently, an applicant must pay a $400 fee to obtain a food processing establishment license, or $900 in some cases, if the Commissioner deter- mines the establishment requires more intensive regulatory oversight. The license fee covers a two year period, and the entire fee is paid at the beginning of that biennial period. If an applicant subsequently leaves or closes an establishment early, there is no provision in the law for any prorating of the fee paid.

In some cases, an applicant leaves one establishment to join another food processing establishment, and has had to pay fees twice - once to the old establishment and again to the new establishment. This is unfair and financially burdensome, especially to small food processors. This bill allows certain applicants to be reimbursed some of their fee when they leave a food establishment six months or more before the end of a

two year licensing period, so long as the fee has not been suspended or revoked under Section 251-z-5 of the Agriculture and Markets law.

Legislative history

None. This is a new bill.

Fiscal implications

Minimal.

Local fiscal implications

None.

Effective date

Immediately.