Cost-Benefit Analysis

Cost-Benefit Analysis

In performing a cost-benefit analysis, each rulemaking entity must provide the information requested for the cost-benefit analysis to be considered a good faith effort. The cost-benefit analysis must be submitted to the Office of Policy, Research and Regulatory Reform at least five (5) days before the administrative hearing on the proposed rule. For all questions, please attach all underlying data that supports the statements or figures stated in this cost-benefit analysis.

Department: / Agriculture / Agency: / State Veterinarian’s Office: Pet Animal Care Facility Program
CCR: / 8 CCR 1201-11 / Date: / 2/27/08
Rule Title or Subject:
Pertaining to the administration and enforcement of the pet animal care and facilities act

Benefits of the Proposed Rule(s)/Amendment(s)

1. / Please provide the statutory authority, and detailed statements indicating the need for the proposed changes. (This statement should include specific issues such as specific changes in statutes or the subject matter area, market failure, a compelling public need, risks to the health, safety or welfare of Coloradans, lack of efficient and effective performance of an important government function, or other specific problem(s) that are being addressed by the proposed rule(s).) Please include the number of complaints you received (if any) that spurred you to take regulatory action.
Title 35-80-109 CRS articulates that the Commissioner of Agriculture is authorized to administer and enforce the provisions of the Pet Animal Care and Facilities Act and any rules and regulations adopted pursuant thereto. These regulations allow for the licensure and inspection of pet animal facilities as well as provides for the adoption of rules to help with these efforts. Additionally, in 35-80-107 CRS, “Each pet animal facility shall keep and maintain records in the form and manner designated by the commissioner. Such records shall be retained for a period of two years and shall be kept at the address specified in the license application for the pet animal facility.
A Cost-Benefit Analysis is required for proposed rules that increase recordkeeping requirements; require capital outlay costs and that may require acquisition of additional space.
The proposed rule changes generally clean up and clarify language on housing structures and other issues related to feeding, grooming and breeding to ensure the health and safety of pet animals under the supervision of a Pet Care Licensed Facility.
Additionally, these rule changes specify the need for pest control; changes the minimum age of a supervisor from 16 to 18, specifies that independent groomers can be employed at up to 3 facilities, and requires a scale to be available to confirm that cats being sold meet the minimum 2lb requirement.
Lastly, these rule changes modify record keeping requirements by licensed facilities. These requirements include:
·  Requiring mobile or temporary pet animal dealer facilities to maintain a set of standard operating procedures, including schedules and methods of feeding and watering, plans to maintain heating and cooling requirements, plans for cleaning and disinfection, plans for hand washing and as needed plans to comply with all other facility requirements within the physical facility. Additionally, mobile facilities must demonstrate the ability to meet all requirements of a permanent facility.
·  Licenses must document in writing and keep on file while the dog is in the particular facility evidence of the appropriate exercise, which includes puppies, animals in transport and in other cases. The specific exercise time frames are currently required in rule, this change requires the documentation that the facility met the requirements.
·  Licensees utilizing foster homes for the care and housing of animals, must provide a form documenting the inspection of each foster home and providing minimum standard requirements for reporting. These inspections are currently required in rule, this change requires the documentation that the facility met the requirements.
·  Shelters must keep records of animals needing veterinary care (medications or immunizations) and provide those treatments within the 30 days prior to adoption to the individual adopting the animal.
This cost/benefit analysis will focus on the impacts of the record keeping requirements on the licensed facilities.
2. / Please list the top three benefits of the proposed regulation; explain how the proposed regulation results in the expected benefits; and if the proposed regulation reduces or eliminates the problem(s) listed above.
The record keeping rule changes will allow department inspectors to confirm that the licensed facilities are meeting current requirements, with regard to the exercise time frames of various facilities and the inspection of foster homes by shelters. This will better ensure that the facility is meeting the requirements for the proper care of the animals under their supervision. Additionally, the standard operating procedures for mobile or temporary dealer facilities will ensure that these facilities have procedures in place to ensure that animals are appropriately cared for and that animal health will not be compromised when compared to a permanent facility, thereby ensuring each facility operating in the same fashion is required to meet the same minimum standards. Lastly, for the continuity of care of an animal at a shelter, requiring the documentation of medications and immunizations and the transfer of that information to a new owner would be of benefit to the animal and the new owners, for the continued care of the animal.
3. / What, in your estimation, would be the consequence of taking no action, thereby maintaining the status quo?
If the documented information articulated above is not implemented, then in two cases the department will require exercise and inspections in rule, but have no means to verify the exercise standards and inspections were adequately fulfilled. The department in this case will continue to request this information and some facilities will be able to provide and others won’t during inspections.
By not requiring standard operating procedures for mobile or temporary dealer facilities, the department will not have the ability to ensure that temporary dealers meet the same minimum requirements as their permanent dealer counterparts. The status quo, with this issue, will continue to allow an inequality in minimum standards for the same type of business activity, which requirements are entirely directed at ensuring appropriate health standards are in place.
The requirement of record keeping by animal shelter to document medications and immunization records for each animal under their care and to pass that information on to the adopter of an animal is to ensure that shelters provide important health information to the new owner of an animal. By not requiring this, thereby maintaining the status quo, there is the potential that appropriate health care of an animal may be compromised if this data is not documented and transferred to the new owner of the animal.
4. / Please describe market-based alternatives or voluntary standards that you considered in place of the proposed regulation and state the reason(s) for not selecting those alternatives. How many small businesses did you talk to about the proposed regulation?
The Pet Animal Care Facility Act regulates roughly 1,800 businesses. This program has a 13 member advisory committee, made up of the various regulated sectors within this industry. All proposed rule changes are presented to the advisory for their review, input, and comments. These rule changes have been reviewed by this advisory committee and they are in agreement with these changes.
The department has not determined a better method, other then documentation by the facility, to ensure that various minimum standards are met.

Impact of Proposed Rule(s)/Amendment(s)

5. / Please describe the government costs to be incurred because of the proposed regulation (Examples include collection; paperwork; filing; recordkeeping; audit, inspection and training costs, etc.), and state your estimates (in dollars) of the costs that will be incurred.
The data and documentation requirements will not require additional costs by the department. Each business is currently inspected on a risk-based inspection schedule. This inspection includes the physical inspection of the facility as well as a current review of records currently required by each licensed facility. Requiring another log for exercise, or medical/immunization administrations, or reviewing a Standard Operating Procedure Manual, will not significantly increase the current workload required within each inspection.
6. / Please provide the number and types of entities or small businesses that will be required to comply with the proposed rule(s). Please provide the source of data used (i.e., program data, NAICS code statistics, etc.).
1,800 businesses may be impacted by some of these rule changes. Such businesses include: animal shelters, pet retail stores, breeders, and boarding facilities.
7. / Does the proposed regulation create barriers to entry (i.e., licensing, permit or educational requirements)? If so, please describe those barriers and why those barriers are necessary.
These rule changes do not create any barriers for businesses to enter this industry.
8. / Explain the additional requirements with which small business owners will have to comply (i.e., will they need to purchase new equipment or software to meet the requirement(s); are there training costs; are there new disclosure/filing requirements they will have to provide to the state; are there transactional costs, paperwork costs, recordkeeping, etc.). Please state your estimates (in dollars) of the compliance costs by types listed.
The costs to implement the documentation of data will be negligible. Each facility that is impacted by the record keeping requirement will need to keep a log, which can be a word document or a hard hand written document, articulating either the times of exercise, the medication administered or the date and type of inspection of a foster home.
9. / Please state whether the proposed regulation contains different requirements for different sized entities or different geographic regions, and explain why this is, or is not, necessary. (For example, an audit fee (as a percentage of assets) for a bank examination is lower based upon a higher level of assets due to marginal cost savings and water usage is more restricted in geographic regions with less water storage or supplies because demand far outpaces supply.)
The record keeping is for all regulated entities that conduct a certain pet animal care business, regardless of size or geographic region.
10. / Please describe your understanding of the ability of small business owners to implement changes required by the proposed regulation, and state the average estimated cost of implementation. (For example, if a proposed rule required all business in a particular sector to utilize a specific software application, a small business owner may have a difficult time implementing the software if the software is expensive to purchase or if their existing computers are not able to run the software.)
The hard costs of implementing these record keeping rules are paper. The department estimates that the number of sheets to keep this information will be minimal and the overall cost negligible
11. / Please state if the proposed regulation will force the cessation of business by any existing businesses, and the impact the cessation will have on the economy including but not limited to the number of employees losing their jobs, the economic losses by the businesses and the estimated economic ripple the cessation will have on suppliers, consumers or buyers.
The record keeping requirement will not force the cessation of any business.
12. / Does the proposed regulation restrict consumer choice (i.e., availability of goods or services; price increases; etc.)? If so, please describe those restrictions.
The record keeping requirements will not restrict consumer choice. These requirements, particularly, the medication and immunization record keeping that is to be passed on to an adoptee of a pet animal should be a benefit to the public.
13. / Please state the estimated impact (in dollars) the proposed regulation will have on sales, employment or tax revenue.
There will be no impact on sales, employment or tax revenue.
14. / Please identify all other small business sector(s) that the proposed regulation(s) may impact, and state the estimated financial impact the proposed regulation will have on each small business sector.
The record keeping requirements will not impact other business sectors of the state.

Thank you for your time and effort.