BEFORE THE DEPARTMENT OF LIVESTOCK
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 32.2.406 pertaining to licensee assessments
NOTICE OF PROPOSED AMENDMENT
NO PUBLIC HEARING CONTEMPLATED
To: All Concerned Persons
1. On December 12, 2015, the Department of Livestock proposes to amend the above-stated rule.
2. The Department of Livestock will make reasonable accommodations for persons with disabilities who wish to participate in the rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Livestock no later than 5:00 p.m. on December 2, 2015, to advise us of the nature of the accommodation that you need. Please contact the Department of Livestock, 301 N. Roberts St., Room 308, P.O. Box 202001, Helena, MT 59620-2001; telephone: (406) 444-9321; TTD number: 1 (800) 253-4091; fax: (406) 444-1929; e-mail: MDOLcomments@mt.gov.
3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:
32.2.406 LICENSEE ASSESSMENTS (1) Pursuant to 81-23-202, MCA, the following assessment is levied: a fee of
$0.155 $0.275 per hundredweight per month , with a minimum of $50.00 per month, whichever is greater, or a maximum of $1,050.00 per month, on the volume of all classes of milk produced and sold by a person licensed by the Milk and Egg Bureau of the department, to be used for the administration of the milk inspection and milk diagnostic laboratory functions of the department. For a dairy licensed by the department, the minimum assessment is $225.00 per month and the maximum assessment is $950.00 per month. For other licensees the minimum assessment is $725.00 per month and the maximum assessment is $2,850.00 per month. For a person licensed both as a dairy and as another licensee, only one assessment will be levied, whichever amount is higher.
(2) and (3) remain the same.
AUTH: 81-1-102, 81-23-202, MCA
IMP: 81-1-102, 81-23-202, MCA
Reason: The department proposes the above-stated amendment to assess the milk inspection and milk diagnostic laboratory administration fee consistent with 81-23-202(4)(a), MCA, and to establish assessments that are commensurate with costs consistent with 81-1-102(2), MCA. The department has determined that the assessment, currently collected from dairies, should be collected from all persons licensed by the Milk and Egg Bureau of the department, including licensees other than dairies. The assessment rate was calculated based on the department's fiscal projections of costs, the estimated average cost for administration of the milk inspection and milk diagnostic laboratory functions for dairies, and the estimated average cost for administration of the milk inspection and milk diagnostic laboratory functions for other persons licensed by the department. The minimum assessment is calculated as 50% of the average cost for each group of licensees, rounded to the nearest $25, and the maximum assessment is calculated as 200% of the average cost for each group of licensees, rounded to the nearest $25.
The assessment collected under the proposed amendment potentially will affect 72 persons in the state who are licensed by the department through the Milk and Egg Bureau for the production and sale of milk. The proposed amendment would result in a cumulative increase of approximately $130,000 for fiscal year 2016. The department estimates that the assessment rate may be reduced to approximately $0.145 per hundredweight per month for fiscal year 2017.
4. This amendment is proposed to be applied effective January 1, 2016.
5. Concerned persons may submit their data, views, or arguments in writing concerning the proposed action to the Executive Officer, Department of Livestock, 301 N. Roberts St., Room 308, P.O. Box 202001, Helena, MT 59620-2001, by faxing to (406) 444-1929, or by e-mailing to MDOLcomments@mt.gov to be received no later than 5:00 p.m., December 10, 2015.
6. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make a written request for a hearing and submit this request along with any written comments they have to the same address as above. The written request for hearing must be received no later than 5:00 p.m., December 10, 2015.
7. If the department receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons who are directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a public hearing will be held at a later date. Notice of the public hearing will be published in the Montana Administrative Register. Ten percent of those persons directly affected has been determined to be eight, based upon there being approximately 72 businesses licensed by the Milk and Egg Bureau.
8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.
9. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of this notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
11. With regard to the requirements of 2-4-111, MCA, the department has determined that the fee increase in the proposed amendment may significantly and directly impact some small businesses, as defined in 2-4-102(13), MCA. Small businesses in the early growth stage will be especially impacted. These businesses have not reached the commercial volumes necessary to cover additional costs. The department's impact analysis is available from the person in 5.
DEPARTMENT OF LIVESTOCK
BY: /s/ Sherry Rust BY: /s/ Marty Zaluski
Sherry Rust Marty Zaluski
Rule Reviewer Interim Executive Officer
Board of Livestock
Department of Livestock
Certified to the Secretary of State November 2, 2015