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PA Bulletin, Doc. No. 01-782

STATEMENTS OF POLICY

Title 7--AGRICULTURE

MILK MARKETING BOARD

[7 PA. CODE CH. 150]

License Classification Policy

[31 Pa.B. 2384]

   The Milk Marketing Board (Board) by this order adopts a statement of policy in Chapter 150. The Board is publishing this statement of policy under section 411 of the authority of Milk Marketing Law (31 P. S. § 700j-411) (act). The statement of policy relates to the establishment of milk dealer and subdealer license classifications.

A.  Effective Date

   This statement of policy will go into effect upon publication in the Pennsylvania Bulletin.

B.  Contact Person

   For further information on the statement of policy, contact Sharon L. Grottola, Chief Counsel, (717) 787-4194, 2301 N. Cameron Street, Harrisburg, PA 17110.

C.  Statutory Authority

   The statement of policy is published under the authority of section 411 of the act.

D.  Purpose and Background

   On October 4, 1995, the Board issued Official General Order No. A-891, which established a license classification system that set forth privileges and restrictions of the different licenses. This order expanded the classification system to a 12-license system to address problems associated with the two-license system that was in place at the time of the order. These license classifications listed both privileges and restrictions and reflected the changes occurring in the market conditions and business characteristics of the dairy industry. A lawsuit was brought in Commonwealth Court by an interested party challenging the Board's ability to establish a license classification system through the adjudicatory process. The Court held that the license classification system must be developed through the regulatory process, rather than through a Board order. A new license classification system is not in effect and will not be in effect for the start of the license year 2001--2002. Following a review of the proposed license classifications, several classifications were eliminated in that, based on the qualifications for milk dealer and subdealer licensure in the act, there was no need to license them. Those license classifications that were eliminated are importing retailer, importing distributor, broker, receiving station and subdealer store. Since it is anticipated that the new license classification system will become effective during the license year 2001--2002 and it would be an administrative burden to calculate and refund license fees to those entities that will not require licensure based on the new classification system, it is necessary to set forth a statement of policy. The statement of policy notifies those entities that they are not required to submit a license application for license year 2001--2002 and any succeeding license year.

E.  Summary of Policy

   It is the policy of the Board to establish license classifications for milk dealers and subdealers that reflect the activities of the applicants and issue the correct milk dealer or subdealer license. Each license classification will have privileges and restrictions. Upon review of current license holders, the Board determined that certain licensees do not need to be licensed because of their activities. Those licensees are importing retailer, importing distributor, broker, receiving station and subdealer store. It is the intent of the Board to develop a new license classification system; however, this classification system will not be in effect prior to the start of the license year 2001--2002. The purpose of this statement of policy, therefore, is to notify those entities currently licensed as importing retailer, importing distributor, broker, receiving station or subdealer store that they are not required to be licensed by the Board and do not need to submit a milk dealer's license application for the license year 2001--2002 and any succeeding license year.

F.  Paperwork

   The statement of policy will not increase paperwork and will create no new paperwork requirements.

G.  Fiscal Impact

   The statement of policy will have a fiscal impact on the Commonwealth based on the loss of license application fees from those entities currently licensed as importing retailer, importing distributor, broker, receiving station or subdealer store. The statement of policy will impose no new costs on the private sector or the general public.

H.  Public Involvement

   Because this order adopts a statement of policy, and not a regulation, the Board was not required to publish a notice of proposed rulemaking in the Pennsylvania Bulletin or to solicit public comment.

Order

   The Board, acting under the authorizing statute, orders that:

   (a)  The statement of policy, 7 Pa. Code § 150.3, is added to read as set forth at Annex A.

   (b)  The Executive Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.

   (c)  This order shall take effect immediately upon publication in the Pennsylvania Bulletin.

BEVERLY R. MINOR,   
Chairperson

   (Editor's Note:  Title 7 of the Pennsylvania Code is amended by adding a statement of policy in § 150.3.)

   Fiscal Note:  47-8. (1) Milk Marketing Fund; (2) Implementing Year 2000-01 is $22,000; (3) 1st Succeeding Year 2001-02 is $22,000; 2nd Succeeding Year 2002-03 is $22,000; 3rd Succeeding Year 2003-04 is $22,000; 4th Succeeding Year 2004-05 is $22,000; 5th Succeeding Year 2005-06 is $22,000; (4) Fiscal Year 1999-00 $30,000; Fiscal Year 1998-99 $20,000; Fiscal Year 1997-98 $7,500; (7) General Government Operations; (8) recommends adoption.

Annex A

TITLE 7.  AGRICULTURE

PART VI.  MILK MARKETING BOARD

CHAPTER 150.  MILK MARKETING FEES

§ 150.3.  Classification of licenses--statement of policy.

   It is the policy of the Board to establish a license classification system that reflects the changes occurring in the market conditions and business characteristics of the dairy industry. The Board anticipates implementation of changes in the license classification system that will go into effect during the license year 2001--2002. The Board's proposed changes will eliminate the license classifications of importing retailer, importing distributor, broker, receiving station and subdealer store. In order to reduce the administrative burden of calculating and refunding license fees during the license year to those entities that will not be required to be licensed under the new license classification system, it is the Board's intent to notify those entities currently licensed as an importing retailer, importing distributor, broker, receiving station or subdealer store that they are not required to complete and file a license application for the license year 2001--2002 and any succeeding license years.

[Pa.B. Doc. No. 01-782. Filed for public inspection May 4, 2001, 9:00 a.m.]


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