Section 65.02. Milk producer licenses and permits; fees.

 

(1)   Milk producer license requirement.

(a) No person may operate as a milk producer offering milk for sale without an annual license from the department for each farm operated, as provided under s. 97.22 (2) , Stats. A license expires on April 30 of each year. Whenever the department first issues a milk producer license, that license shall bear a livestock premises code issued under s. ATCP 17.02 (7) for the dairy farm associated with the milk producer license. A license is not transferable between persons or dairy farms. As a condition to licensing, a milk producer shall comply with applicable provisions of this chapter.

(b) A separate license is required for any of the following:

1. Each species of milking animal milked by each milk producer on a dairy farm.

2. Each dairy farm operated by a milk producer at which milk is produced and offered for sale.

3. Each dairy plant, if a milk producer is shipping milk to more than one dairy plant, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter.

(2)   License application; renewal.

(a) General. A license application, signed by the milk producer, shall be made on a form provided by the department and shall include the information that is required under s. ATCP 17.02 (4) for the purpose of livestock premises registration. A dairy plant operator, milk contractor, or their representative, after inspecting the dairy farm under s. ATCP 65.910 (1) , shall submit the application on behalf of the milk producer and shall certify that the dairy farm and milking operations comply with applicable requirements under this chapter. An annual license may be renewed each year upon payment of the required fees under sub. (4) , without further application by the milk producer, provided the milk producer is registered under s. ATCP 17.02 (4) .

(b) Action on license application. Within 15 days after the department receives a complete license application under par. (a) , the department shall do any of the following:

1. Grant the application.

2. Deny the application.

3. Issue a temporary license under par. (c) .

(c) Temporary license. The department may issue a temporary license, for a period not to exceed 40 days, pending final action on a milk producer's application for an annual milk producer license. The department shall grant or deny the annual license application before the temporary license expires. If the department denies the annual license application before the temporary license expires, the temporary license is automatically terminated when the producer receives written notice of the denial. The holder of a temporary license acquires no rights beyond those conferred by the temporary license under this paragraph.

(3)   Pre-license inspection.

(a) A division representative, on behalf of the department, may inspect a dairy farm, as the division deems necessary, before issuing a license to a milk producer. If the dairy farm does not meet the minimum standards required for licensing, the department shall deny the license application.

(b) Automated milking installations must be reviewed and approved by a division representative before a milk producer license is issued by the department.

(4)   License fee.

(a) The annual fee for a milk producer license under this section is $30.

(b) A dairy plant operator, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, shall pay the annual milk producer license fee under this section by April 30 of each year for each dairy farm from which the dairy plant operator receives milk on that date.

1. A dairy plant operator, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, who pays a milk producer license fee, under par. (a) , may charge that fee back to a milk producer if the dairy plant operator gives prior written notice to the milk producer, but the dairy plant operator may not deduct the fee from any payment that the dairy plant operator owes the milk producer for milk received by the dairy plant operator. A dairy plant operator may not discriminate between milk producers with respect to fee charges under this paragraph, but may charge back license fees to all milk producers who cease shipping milk to the operator's dairy plant during the license year.

2. The license fee in this subsection is non-refundable.

(5)   Denial of license application. If the department denies a milk producer's application for a license under this section, the department shall issue the denial in writing and shall state the reasons for the denial. The denial notice shall include a notice of the applicant's right to hearing under s. ATCP 65.928 . If a division representative inspects the applicant's dairy farm, the division representative may deny the application by noting the denial on the inspection report given to the producer, provided that the inspection report includes the required information under this subsection.

(6)   Transfer between dairy plants. A dairy plant operator, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, shall notify the department in writing within 3 business days after any of the following occurs:

(a) The dairy plant operator begins receiving milk shipments from a licensed producer who has previously shipped milk to another dairy plant. No new license is required.

(b) A licensed producer is re-assigned, for licensing purposes under this section, to that dairy plant.

(7)   Milk producer shipping milk to more than one dairy plant. A milk producer may concurrently ship milk to more than one dairy plant, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, if the milk producer is assigned, for licensing purposes under this section, to each dairy plant. Each dairy plant's operator shall do all of the following on behalf of the milk producer:

(a) Pay the producer's annual license fees under this section.

(b) Pay the producer's reinspection fees, if any, under s. ATCP 65.04 .

(c) Fulfill other dairy plant operator obligations under this subchapter, if any, related to the milk producer's license or grade A producer permit.

(8)   Milk produced for custom processing. A dairy plant operator shall take ownership and market a milk producer's milk unless the dairy plant operator is deemed to be custom processing a producer's milk and all of the following apply:

(a) The dairy plant operator, on behalf of the milk producer, makes that milk into dairy products.

(b) The milk producer retains title to that milk and to all of the dairy products made from that milk.

(c) The dairy plant operator does not market that milk, or the dairy products made from that milk, but promptly returns the dairy products to the milk producer or the milk producer's agent for consumption or marketing.

(d) The dairy plant operator does not commingle milk produced by that milk producer with other milk.

(e) The dairy plant operator provides the custom processing services pursuant to a written agreement with the milk producer or the milk producer's agent. The agreement shall clearly state that the milk producer retains title to all of the custom processed milk and dairy products and that the milk producer's milk shipments under the custom processing agreement are not secured under ch. 126 , Stats.

(f) The milk producer ships, for custom processing under this subsection, not more than 50 percent of the producer's milk production in any month.

(g) The dairy plant operator custom processes not more than a total of 5 million pounds of milk from all milk producers entering into written agreements with the dairy plant operator, under par. (e) , in any month.

(h) The milk producer or the milk producer's agent notifies the division of the custom processing agreement before shipping milk to the dairy plant operator for custom processing under this subsection and annually thereafter, and simultaneously notifies the dairy plant operator to whom the producer is assigned for licensing purposes, under par. (a) , if that dairy plant operator is not the one providing the custom processing services.

(i) The milk producer or the milk producer's agent files a monthly report with the department, on or before the 15th day of the month, reporting the volume of milk delivered to the custom processor during the preceding month. The milk producer or milk producer agent shall file a copy of the report with the dairy plant operator to whom the producer is assigned for licensing purposes, under par. (a) , if that dairy plant operator is not providing the custom processing services.

(j) The milk producer or the milk producer's agent pays to the department the dairy plant milk procurement fees, under s. ATCP 65.04 (10) , that apply to the milk producer's custom processed milk shipments.

(k) The milk producer or the milk producer's agent pays milk marketing order assessments and other state or federally mandated assessments that apply to the milk producer's custom processed milk shipments, in the manner prescribed by state or federal law.

(9)   Temporary discontinuation of milk shipments.

(a) A cow milk producer's license remains in effect if the milk producer resumes milk shipments within 180 days after temporarily discontinuing shipments to the dairy plant to whom the milk producer is assigned, provided shipments were not transferred to another dairy plant.

(b) A sheep or goat milk producer license remains in effect if the milk producer resumes milk shipments within 240 days after temporarily discontinuing shipments to the dairy plant to whom the milk producer is assigned, provided shipments were not transferred to another dairy plant.

(c) If the milk producer does not resume milk shipments within the allowed 180 or 240 days, the department shall summarily revoke the milk producer's license. The department shall give the milk producer a written revocation notice at least 5 business days before the effective date of the notice.

(10)   Termination of a milk producer license. If a milk producer stops shipment of milk to a dairy plant, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, for any reason, other than a reason identified in sub. (8) , or s. ATCP 65.70 (2) (f) , or 65.72 (6) or (7) , the dairy plant operator shall notify the department in writing within 3 business days after receiving the last shipment of milk from that producer. The department shall summarily revoke the milk producer's license 30 days after that last milk shipment date unless, by the scheduled revocation date, the milk producer is shipping milk to another dairy plant operator to whom the producer is assigned for licensing purposes under this section. The department shall give the producer a written revocation notice at least 5 business days prior to the effective date of the notice.

(11)   Grade A permit requirement. No milk producer may sell or distribute milk as grade A milk without obtaining an annual grade A producer permit from the department, as provided under s. 97.22 (3) , Stats. A grade A producer permit is not valid unless the producer also holds a valid milk producer license under s. ATCP 65.02 . A grade A producer permit expires on April 30 of each year. A separate grade A producer permit is required for each milk producer on a dairy farm at which milk is produced for distribution or sale as grade A milk. A grade A producer permit is not transferable between persons or dairy farms. Except as provided in sub. (12) , no more than one milk producer at a dairy farm shall have a grade A permit. A grade A permit may be issued by the department in the form of an endorsement on an inspection report given to the milk producer. As a condition to holding a grade A producer permit, a milk producer shall comply with applicable provisions of this chapter.

(12)   Grade A permits at a single dairy farm operated by multiple milk producers. More than one milk producer at a farm may hold grade A producer permits if each milk producer holding a grade A producer permit ships milk to the same dairy plant. All water test results under s. ATCP 65.10 , drug residue test results under s. ATCP 65.72 , milk quality test results under s. ATCP 65.76 , inspection results under ss. ATCP 65.910 and 65.912 , and enforcement actions taken under Subchapter VI apply equally to all holders of a milk producer license at a single dairy farm sharing a herd of milking animals; access or use of a barn, milking barn, milking parlor, milking and milk handling system; or any other part of a dairy farm. The division shall simultaneously inspect the milking operations of a dairy farm at which more than one grade A producer permit is held. The inspections shall be in accordance with ss. ATCP 65.910 and 65.912 .

(13)   Grade A permit application; renewal.

(a) General. A grade A producer permit application, signed by the milk producer, shall be made on a form provided by the department. A dairy plant operator, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, after inspecting the dairy farm under Subchapter VI shall submit the application on behalf of the milk producer, and shall certify that the dairy farm facilities comply with applicable grade A requirements under this chapter. A grade A producer permit may be renewed each year in connection with the renewal of the milk producer's license under s. ATCP 65.02 , without further application by the milk producer.

(b) Action on permit application. Within 15 days after the department receives a complete grade A producer permit application under par. (a) , the department shall do any of the following:

1. Grant the application after inspecting the dairy farm.

2. Deny the application.

(14)   Pre-permit inspection. A division representative, on behalf of the department, may inspect a dairy farm before issuing a grade A producer permit for that milk producer.

(15)   Denial of grade A permit application. The department shall deny an application for a grade A producer permit if it determines, under sub. (14) , that minimum standards are not met. The department shall issue the denial in writing and shall state the reasons for the denial. The denial notice shall include a notice of the applicant's right to hearing under s. ATCP 65.928 . A representative of the division, after inspecting the applicant's dairy farm, may deny a grade A producer permit application by noting the denial on the inspection report given to the producer, provided that the inspection report includes the required information under this subsection.

(16)   Transfer of grade A producers between dairy plant operators. A dairy plant operator, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, shall notify the department in writing within 3 business days after any of the following occurs:

(a) The operator begins receiving milk shipments from a grade A producer who has previously shipped milk to another operator.

(b) A grade A producer is re-assigned, for permit purposes under this section, to that dairy plant operator.

(17)   Grade A milk producer shipping milk to more than one dairy plant. A milk producer holding a grade A producer permit may concurrently ship milk to more than one dairy plant operator, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, if the milk producer and dairy plant operators comply with s. ATCP 65.02 (7) and only one of the dairy plants accepts the milk producer's milk as grade A milk.

(18)   Temporary discontinuation of grade A milk shipments.

(a) A dairy plant operator, including a milk contractor that submits a milk producer license application on behalf of a milk producer and thereby certifies that the milk producer's dairy farm and milking operations comply with applicable requirements under this chapter, shall notify the department if a grade A milk producer temporarily discontinues milk shipments without transferring milk shipments to another dairy plant. The dairy plant operator shall notify the department in writing within 3 business days after the producer discontinues shipments and within 3 business days after the producer resumes milk shipments.

(b) A milk producer's grade A producer permit remains in effect if the milk producer resumes milk shipments, under par. (a) , within 60 days after temporarily discontinuing milk shipments to the dairy plant to whom the milk producer is assigned, provided shipments were not transferred to another dairy plant. If the milk producer does not resume milk shipments within 60 days, the department shall summarily revoke the milk producer's grade A producer permit. The department shall give the producer a written revocation notice at least 5 business days before the effective date of the notice.

(19)   Re-inspection fee requirement. If a division representative, on behalf of the department, conducts a reinspection, the department shall charge a reinspection fee of $30 for the reinspection, or $60 if the reinspection is required for reinstatement of a milk producer's license or grade A producer permit pursuant to s. 97.22 (4) , Stats. A reinspection fee is payable when the reinspection is completed, and is due upon written demand from the department.

(20)   Fee payment obligations; enforcement. If no dairy plant pays the fees required under this subchapter on behalf of a milk producer, the department may demand payment from the milk producer. If, after reasonable notice and demand for payment, a milk producer fails to pay a fee that was due and payable before the current license year, the department may suspend the milk producer's license or grade A producer permit.

(21)   BTU Requirements. Each farm in a BTU shall be operated by a licensed milk producer who holds a grade A producer permit, shall be included in only one BTU, and shall produce milk for pasteurization that is collected by a bulk milk weigher and sampler licensed under s. ATCP 82.04 .

CR 14-073 : cr. Register August 2016 No. 728 , eff. 9-1-16; correction in (21) made under s. 35.17 , Stats., Register August 2016 No. 728 .

Note

No new grade A producer permit is necessary when a producer transfers to a different dairy plant. Microsoft Windows NT 6.1.7601 Service Pack 1