1. (a) Purpose. The purpose of this section is to provide for the uniform collection of fees covering milk products. Included in this section are requirements covering the issuance and revocation of permits, the prescribing of fees for permits and inspections, and the availability of hearing procedures in the event of proposed revocation of permits.

2. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings unless the context clearly indicates otherwise.

   1. (1) Department--Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756.
   2. (2) Distributor--Any person who offers for sale or sells to another any milk or milk products.
   3. (3) Milk--The lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more healthy cows, which contains not less than 8-1/4% milk solids-not-fat and not less than 3-1/4% milkfat.
   4. (4) Milk plant--Any place, premises, or establishment where milk or milk products are collected, handled, processed, dried, stored, pasteurized, ultrapasteurized, bottled, or prepared for distribution. This term also means processing plant, manufacturing plant or bottling plant in these sections.
   5. (5) Milk transport tanker--A vehicle including the truck and tank used by a milk hauler to transport bulk shipments of milk from a transfer station, receiving station, or milk plant to another transfer station, receiving station, or milk plant.
   6. (6) Producer dairy farm--Any place or premises where one or more cows or goats are kept, and from which a part or all of the milk or milk product(s) is provided, sold, or offered for sale to a milk plant, transfer station, or receiving station.
   7. (7) Receiving station--Any place, premises, or establishment where raw milk is received, collected, handled, stored, or cooled and prepared for further transporting.

   8. (8) Sale--

      1. (A) the manufacture, production, processing, packing, exposure, offer, or holding of any milk, and milk product for sale;
      2. (B) the sale, dispensing, or giving of any milk, milk product or frozen dessert product; or
      3. (C) the supplying or applying of any milk or milk product, in the conduct of any retail establishment.
   9. (9) Transfer station--Any place, premises, or establishment where milk or milk products are transferred directly from one milk transport tanker to another.

3. (c) Permits.

   1. (1) Issuance of permits. Every producer dairy farm, milk plant, receiving station, transfer station, and milk transport tanker located in the State of Texas, and every milk plant that exports milk or milk products into the state of Texas, are required to secure a permit from the Department in accordance with the requirements of this section. The beginning of a permit year is September 1.
   2. (2) Renewals. Permits are renewable on September 1 of each year.
   3. (3) Nontransferability. Permits are not transferable or assignable. This restriction also applies in the event of a change of ownership of a milk facility or operation.
   4. (4) Revocation. The department may revoke a permit for noncompliance with the requirements of this section or for the nonpayment of fees. Before the department makes a final decision to revoke a permit, the Department shall give the permit holder opportunity for a hearing in accordance with the requirements of subsection (f) of this section.

4. (d) Permit fees.

   1. (1) Permitted milk facilities and operations in Texas shall pay the following annual fees:

      1. (A) Milk plant--$200 per annum.
      2. (B) Producer dairy farm--$50 per annum.
      3. (C) Receiving and transfer station--$200 per annum.
      4. (D) Milk transport tanker--$100 per annum.
   2. (2) Permit fees are due for all new permit applications. If applications are made after September 1 of each year, the fee will be prorated on a semiannual basis. All milk product facilities and operations shall be billed for renewal prior to September 1 each year.

5. (e) Inspection fees.

   1. (1) All milk or milk products processed, manufactured, or bottled by milk plants located in the State of Texas and offered for sale within the State of Texas shall be assessed a $.02 per hundredweight inspectional fee. This fee shall be assessed on a monthly, quarterly, semiannual or annual basis. The milk plants shall submit monthly production data to the Texas Department of Health no later than 15 days after the end of each reporting month as designated by the department accompanied by the remittance fee required by this subsection. These reports shall be maintained by the Texas Department of Health for a five-year period. Also, each milk plant is required to furnish, upon request from the department, production records for the preceding three years for auditing purposes. This fee shall be considered delinquent if it is not received by the Texas Department of Health 30 days after the end of the reporting period designated by the department.
   2. (2) All milk or milk products processed, manufactured, or bottled by milk plants located outside the legal boundaries of the State of Texas that export milk into the State of Texas for sale or distribution shall be assessed a $.02 per hundredweight inspectional fee. Also, the actual cost of analyzing samples of milk and milk products shall be assessed these out-of-state milk plants. This fee shall be assessed on a monthly, quarterly, semiannual or annual basis. The milk plants shall submit monthly production data to the Texas Department of Health no later than 15 days after the end of each reporting period as designated by the department accompanied by the required remittance fee. These reports shall be maintained by the Texas Department of Health for a five-year period. Also, each plant will be required to furnish, upon request, production records for the preceding three years for auditing purposes. This fee shall be considered delinquent if it is not received by the Texas Department of Health 30 days after the end of the reporting period designated by the department.
6. (f) Hearings. Before the department makes a final decision denying application for a permit or revoking a permit, the department shall give the applicant or permittee an opportunity for a hearing. The hearing procedure will be in accordance with the Texas Civil Statutes, Article 6252-13a, and §§1.21-1.32 of this title (relating to Formal Hearing Procedures).

Source Note:The provisions of this §217.81 adopted to be effective December 8, 1985, 10 TexReg 4235; amended to be effective October 16, 1986, 11 TexReg 4159; amended to be effective December 29, 1987, 12 TexReg 4697; amended to be effective November 17, 1997, 22 TexReg 10966.