3-607. Annual licenses; inspections; revocation; fees; exceptions

A. A person shall not operate a milk distributing plant or a manufacturing milk processing plant, engage in the business of producer-distributor or producer-manufacturer, or engage in the business of selling at wholesale milk or dairy products, or both, without a license. This section does not require:

1. An Arizona dairy farm producing raw milk for sale to be processed to secure a license to operate.

2. A retailer or wholesaler to secure a license from the division to convert a pasteurized mix into frozen dessert.

3. A food establishment regulated by the department of health services to secure a license from the division to manufacture frozen desserts using pasteurized milk or pasteurized milk-based products if the frozen dessert is manufactured and sold at the same food establishment for consumption on the premises and the food establishment has submitted a plan for approval to the regulatory authority under title 36 demonstrating that the manufacturing process complies with the rules adopted pursuant to section 36-136, subsection I, including pasteurization as defined in rule. The division or the regulatory authority under title 36 may require a food establishment that manufactures frozen desserts using pasteurized milk or pasteurized milk-based products to provide samples of the frozen dessert to verify that the frozen dessert is pasteurized.

B. An application for a license shall be in writing in the form the associate director prescribes and shall be accompanied by the required filing fee. On receipt of an application, the associate director or an authorized representative shall examine the premises in which the applicant proposes to do business, and if it appears that the applicant has complied with all provisions of law, the license shall be issued.

C. After issuance of the first annual license, a license may be issued on inspection of the premises and payment not later than February 1 of each year of the required fee. The inspection shall be made by the associate director or an authorized representative to determine whether the premises are maintained in compliance with law. A written report of the inspection shall be filed in the division office. An annual license is valid for the period beginning January 1 and ending December 31 of each year, and a license that is not renewed on or before February 1 of each year is void.

D. An application for a license to produce grade A milk for human consumption shall be made in the manner prescribed by subsections A and B of this section. The license shall be valid until revoked for failure to comply with the provisions of this article relating to the production of milk. The associate director may suspend a license pending correction of deficiencies that violate this article. If the identified deficiencies are not corrected within a reasonable time after the licensee is notified, the associate director may proceed to revoke the license. Notice of a pending revocation shall be in writing, stating the cause, and setting a time during which the licensee may correct the cause for revocation. If the cause for revocation is not corrected within the time specified, the associate director, after a hearing and three days' notice of intention, may revoke the license. The director shall review the associate director's action on request of any person adversely affected by the action. A person holding a permit issued by a governmental agency operating outside of this state whose requirements are substantially the same as the requirements of this state shall be deemed to have a license meeting the requirements of this article, provided the facilities have first been inspected and approved also by a resident Arizona inspector, if in the opinion of the associate director such an inspection should be made. Any expense incurred for such an inspection shall be at the expense of the licensee.

E. Fees shall be paid as follows:

1. For a license or renewal of a license to operate a milk distributing plant or business, $50.

2. For a license or renewal of a license to operate a manufacturing milk processing plant, $50.

3. For a license or renewal of a license to engage in the business of producer-distributor or producer-manufacturer, $25.

4. For a license or renewal of a license to engage in the business of selling at wholesale milk or dairy products, or both, $25.

F. The associate director or dairy inspectors are authorized to inspect premises affected by this article and located outside of this state, and they shall receive subsistence and travel expenses in the amount provided for state officers, which shall be paid to the inspector by the owner of the premises inspected.

G. This section does not apply to a producer of raw milk.