IC 4-22-2.1-5 Statement Concerning Rules Affecting Small Businesses

1. Description of the Rule

The rules update requirements governing the production, transportation, processing, and sale of milk and milk products in 345 IAC 8, including updating the Pasteurized Milk Ordinance and other standards that are incorporated by reference.

2. Description of Affected Industry

The Indiana State Board of Animal Health (BOAH) permits 1,625 dairy farms, 32 dairy plants, and 685 entities related to the transportation of dairy products.

3. Reporting, Record Keeping, and Other Administrative Costs

Small dairy farm, dairy plant, and dairy transportation businesses are currently subjected to the dairy rules. The proposed changes do not substantially increase the reporting, record keeping, or other administrative costs associated with the rules.

4. Estimated Total Annual Economic Impact on Small Businesses

The BOAH does not anticipate increased costs to small businesses as a result of adopting the updated standards as compared to the current standards.

5. Justification for Costs

Indiana law requires the BOAH to adopt rules to establish standards for Grade A milk and milk products that are at least as effective in protecting public health as the standards adopted by the National Conference on Interstate Milk Shipments (NCIMS) in accordance with the national conference's memorandum of understanding with the United States Food and Drug Administration. IC 15-2.1-23-6. The NCIMS standards are published in the Pasteurized Milk Ordinance (PMO). The BOAH adopts the PMO standards. The NCIMS recently published a 2005 edition of the PMO. The proposed rules adopt the 2005 edition of the PMO.

6. Regulatory Flexibility Analysis

The BOAH is required by law to maintain equivalency with the NCIMS PMO; therefore, the BOAH sees no viable alternatives to updating matters that incorporate PMO standards. IC 15-2.1-23-6.