HOUSE BILL NO. 4333

A bill to amend 2000 PA 92, entitled

"Food law,"

by amending sections 1105, 1111, and 4102 (MCL 289.1105, 289.1111, and 289.4102), section 1105 as amended by 2014 PA 516, section 1111 as amended by 2018 PA 92, and section 4102 as amended by 2012 PA 178.

the people of the state of michigan enact:

Sec. 1105. (1) As used in this act:

(a) "Adulterated" means food to which any of the following apply:as applied to food:

(i) It bears or contains any poisonous or deleterious substance that may render it injurious to health unless the substance is not an added substance and the quantity of that substance in the food does not ordinarily render it injurious to health.

(ii) It bears or contains any added poisonous or added deleterious substance, other than a substance that is a pesticide chemical in or on a raw agricultural commodity, ; a food additive, ; or a color additive considered unsafe within the meaning of subsection (2).

(iii) It is a raw agricultural commodity that bears or contains a pesticide chemical considered unsafe within the meaning of subsection (2).

(iv) It bears or contains any food additive considered unsafe within the meaning of subsection (2). However, if a pesticide chemical has been is used in or on a raw agricultural commodity in conformity with an exemption granted or limitation prescribed under subsection (2) and the raw agricultural commodity has been is subjected to processing, the residue of that pesticide chemical remaining in or on that processed food is, notwithstanding the provisions of subsection (2) and this subdivision, not considered unsafe if that residue in or on the raw agricultural commodity has been is removed to the extent possible in good manufacturing practice and if the concentration of that residue in the processed food when ready to eat is not greater than the tolerance prescribed for the raw agricultural commodity.

(v) It is or contains a new animal drug or conversion product of a new animal drug that is unsafe within the meaning of section 360b 512 of the federal act, 21 USC 360b.

(vi) It consists in whole or in part of a diseased, contaminated, filthy, putrid, or decomposed substance or it is otherwise unfit for food.

(vii) It has been produced, prepared, packed, or held under unsanitary conditions in which it may have become contaminated with filth or in which it may have been rendered diseased, unwholesome, or injurious to health.

(viii) It is the product of a diseased animal or an animal that has died other than by slaughter or that has been fed uncooked garbage or uncooked offal from a slaughterhouse.

(ix) Its container is composed, in whole or in part, of any poisonous or deleterious substance that may render the contents injurious to health.

(x) A valuable constituent has been is in whole or in part omitted or abstracted from the food; a substance has been is substituted wholly or in part for the food; damage or inferiority has been is concealed in any manner; or a substance has been is added to, the food or mixed with, or packed with the food so as to increase its bulk or weight, reduce its quality or strength, or make it appear better or of greater value than it is.

(xi) It is confectionery and has partially or completely imbedded in it any nonnutritive object except if, as provided by rules, the object is of practical functional value to the confectionery product and would not render the product injurious or hazardous to health; it is confectionery and bears or contains any alcohol other than alcohol not in excess of 1/2 of 1% 0.5% by volume derived solely from the use of flavoring extracts; or it is confectionery and bears or contains any a nonnutritive substance except a nonnutritive substance such as harmless coloring, harmless flavoring, harmless resinous glaze not in excess of 4/10 of 1%, 0.4%, harmless natural wax not in excess of 4/10 of 1%, 0.4%, harmless natural gum and pectin or any chewing gum by reason of its containing harmless nonnutritive masticatory substances which is in or on the confectionery by reason of its use for some practical functional purpose in the manufacture, packaging, or storage of such confectionery if the use of the substance does not promote deception of the consumer or otherwise result in adulteration or misbranding in violation of this act. For the purpose of avoiding or resolving uncertainty as to the application of this subdivision, the director may issue rules allowing or prohibiting the use of particular nonnutritive substances.

(xii) It is, or bears, or contains any color additive that is unsafe within the meaning of subsection (2).

(xiii) It has been is intentionally subjected to radiation, unless the use of the radiation was is in conformity with a rule or exemption under this act or a regulation or exemption under the federal act.

(xiv) It is bottled water that contains a substance at a level higher than allowed under this act.

(b) "Advertisement" means a representation disseminated in any manner or by any means, other than by labeling, for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase of food.

(c) "Agricultural use operation" means a maple syrup production facility or similar food establishment that finishes a raw commodity and is integral to the agricultural production of, and is located at, a farm. An agricultural use operation is not considered a food processor or retail processing operation for purposes of personal or real property but must meet those same standards and licensing requirements as prescribed in under this act.

(d) "Bed and breakfast" means a private residence that offers sleeping accommodations to transient tenants in 14 or fewer rooms for rent, is the innkeeper's residence in which where the innkeeper resides while renting the rooms to transient tenants, and serves breakfasts, or other meals in the case of a bed and breakfast described in section 1107(t)(ii), at no extra cost to its transient tenants. A bed and breakfast is not a food service establishment if exempt under section 1107(t)(ii) or (iii).

(e) "Color additive" means a dye, pigment, or other substance that is made by a process of synthesis or similar artifice or is extracted, isolated, or otherwise derived, with or without intermediate or final change of identity from a vegetable, animal, mineral, or other source, or when added or applied to a food or any part of a food is capable alone or through reaction with other substances of imparting color to the food. Color additive does not include any a material that is exempt or hereafter is exempted under the federal act. This subdivision does not apply to any a pesticide chemical, soil or plant nutrient, or other agricultural chemical solely because of its effect in aiding, retarding, or otherwise affecting, directly or indirectly, the growth of other natural physiological process of produce of the soil and thereby affecting its color, whether before or after harvest. Color includes black, white, and intermediate grays.

(f) "Consumer" means an individual who is a member of the public , that takes possession of food, is does not functioning function in the capacity of an operator of a food establishment or food processor, and does not offer the food for resale.

(g) "Contaminated with filth" means contaminated as a result of not being securely protected from dust, dirt, and, as far as may be necessary by all reasonable means, from all foreign or injurious contaminations.contaminants.

(h) "Continental breakfast" means the serving of only non-potentially-hazardous food such as a roll, pastry or doughnut, fruit juice, or hot beverage, but may also include individual portions of milk and other items incidental to those foods.

(i) "Core item" means a provision in the food code that is not designated as a priority item or a priority foundation item. Core item includes both of the following:

(i) (A) An item that usually relates to general sanitation, operational controls, sanitation standard operating procedures (SSOPs), facilities or structures, equipment design, or general maintenance.

(ii) (B) The requirements of section sections 2129(2) and 6152(1).

(j) "Cottage food operation" means a person an individual who produces or packages cottage food products only in a kitchen of that person's individual's primary domestic residence within this state.

(k) "Cottage food product" means a food that is not potentially hazardous food, as that term is defined in the food code. Examples of cottage Cottage food product include, includes, but are is not limited to, jams, jellies, dried fruit, candy, cereal, granola, dry mixes, vinegar, dried herbs, and baked goods that do not require temperature control for safety. Cottage food product does not include any of the following:

(i) A potentially hazardous food regulated under 21 CFR parts 113 and 114, examples of which include, including, but are not limited to, meat and poultry products, ; salsa, ; milk products, ; bottled water and other beverages, ; and home-produced ice products. Cottage food product also does not include canned

(ii) Canned low-acid fruits or acidified vegetables. and other

(iii) Other canned foods except for jams, jellies, and preserves as those terms are defined in 21 CFR part 150.

(2) Any An added poisonous or deleterious substance, food additive, pesticide chemical in or on a raw agricultural commodity, or color additive is considered unsafe for the purpose of subsection (1)(a), unless there is in effect a federal regulation or exemption from regulation under the federal act, the federal meat inspection act, 21 USC 601 to 683, the poultry products inspection act, 21 USC 451 to 472, or another federal statute, or a rule limiting the quantity of the substance, and the use or intended use of the substance, and the use or intended use of the substance conforms to the terms prescribed by the federal regulation or exemption or the rule.

Sec. 1111. As used in this act:

(a) "Raw agricultural commodity" means any food in its raw or natural state including fruits that are washed, colored, or otherwise treated in their unpeeled natural form before marketing.

(b) "Regulatory authority" means the department, the local health department, or the authorized representative having jurisdiction over the food establishment.

(c) "Retail food establishment" means an operation that sells or offers to sell food directly to a consumer. Retail food establishment includes both a retail grocery and a food service establishment, but does not include a food processor.

(d) "Retail grocery" means an operation that sells or offers to sell food to consumers for off-premises consumption. Food for off-premises consumption does not include take-out food intended for immediate consumption.

(e) "Rules" means administrative rules promulgated under this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(f) "Shellfish dealer" means an interstate wholesaler handling shellfish.

(g) "Shellfish dealer certification" means the issuance of a numbered certificate to a person indicating that the person is in compliance with the requirements of the guide for the control of molluscan shellfish and that the person has permission from the department to conduct 1 or more of the following shellfish activities, as defined in the guide for the control of molluscan shellfish:

(i) Shellstock shipper.

(ii) Shucker packer.

(iii) Repacker or reshipper.

(h) "Smoked fish rules" means R 285.569.1 to R 285.569.19 of the Michigan Administrative Code.

(i) "Special transitory food unit" means a temporary food establishment that is licensed to operate throughout the state without the 14-day limits or a mobile food establishment that is not required to return to a commissary.

(j) "Staple foods" does not include accessory foods such as coffee, tea, cocoa, soda, noncarbonated drinks such as sports drinks, punches, and flavored waters, candy, condiments, spices, hot foods, or foods ready to go or made to take out, such as prepared sandwiches or salads.

(k) "Sulfiting agents" means any of the following:

(i) Sulfur dioxide.

(ii) Sodium sulfite.

(iii) Sodium bisulfite.

(iv) Potassium bisulfite.

(v) Sodium metabisulfite.

(vi) Potassium metabisulfite.

(l) "Temporary food establishment" means a food establishment that operates at a fixed location for a temporary period not to exceed 14 consecutive days.

(m) "Temporary license" means a written authorization issued by the director to operate for a specified limited time period.

(n) "Third-party food delivery platform" means a business engaging in the service of delivery from a cottage food operation or online food ordering and delivery from a food service establishment to a consumer.

(o) (n) "Transient tenant" means a person an individual who rents a room in a bed and breakfast for fewer than 30 consecutive days.

(p) (o) "Trimming" means removing leaves, roots, and other extraneous materials in preparation for grading, sorting, and sale as a whole fruit or vegetable. Trimming does not remove the peel or core and does not further cut the whole fruit or vegetable.

(q) (p) "U.S. standards for shell eggs" means "United States Standards, Grades, and Weight Classes for Shell Eggs", AMS 56 (July 20, 2000), United States Department of Agriculture.

(r) (q) "Vending company base location" means a vending machine location or other food establishment required to be separately licensed under section 4105(5).

(s) (r) "Vending machine" means a self-service device that, upon insertion of after inserting a coin, paper currency, token, card, or key, or by manual operation, dispenses a unit servings serving of food in bulk or in packages a package without the necessity of replenishing the device between each vending operation. Vending machine does not include any of the following:

(i) A device that dispenses only bottled or canned soft drinks, ; other packaged nonperishable foods or beverages, ; or bulk ball gum, nuts, and or panned candies.

(ii) A water-dispensing water dispensing machine that is registered under chapter IV.section 4115.

(t) (s) "Vending machine location" means the room, enclosure, space, or area in which 1 or more vending machines are installed and operated, or a micro market.

(u) (t) "Wholesale" means selling other than directly to consumers.

(v) (u) "Wild game" means animals from their natural state and not cultivated, domesticated, or tamed.

Sec. 4102. (1) A cottage food operation is exempt from the licensing and evaluation provisions of this act. This exemption does not include an exemption from the adulteration and other standards imposed in this section or under this act, or both, and does not limit the ability of the department to take appropriate enforcement action for applicable violations as described in section 5101. This subsection does not require a cottage food operation to meet the standards contained in 21 CFR part 110 or the food code.

(2) Cottage food products shall must be prepackaged and properly labeled prior to before sale.

(3) At a minimum, a A cottage food operation shall place on the label of any food it produces or packages the following information:

(a) The One of the following, as applicable:

(i) The name and address of the business of the cottage food operation.

(ii) The name, telephone number, and registration number issued under subsection (8) of the business of the cottage food operation.

(b) The name of the cottage food product.

(c) The ingredients of the cottage food product, in descending order of predominance by weight.

(d) The net weight or net volume of the cottage food product.

(e) Allergen labeling as specified by federal labeling requirements.

(f) If any nutritional claim is made, appropriate labeling as specified by federal labeling requirements.

(g) The following statement printed in at least the equivalent of 11-point font size in a color that provides a clear contrast to the background: "Made in a home kitchen that has not been inspected by the Michigan department of agriculture and rural development.".

(4) Cottage Except as otherwise provided in this subsection, a cottage food products may product must be sold directly from the cottage food operation to the consumer. only, and not by internet or mail order. Sales by consignment or at wholesale are prohibited. A cottage food product may be sold by internet or mail order or may be delivered to a consumer through a third-party food delivery platform if the cottage food operation provides an opportunity for a consumer to directly interact with the cottage food operation before the cottage food product is sold. A cottage food product sold by internet or mail order or delivered through a third-party delivery platform must be sold or delivered only to a consumer in this state. As used in this subsection:

(a) "Directly interact with" includes either a face-to-face movie or a virtual meeting.

(b) "Virtual meeting" includes, but is not limited to, a meeting in which communication occurs electronically in a manner that permits 2-way communication so that participants can see or be seen and hear or be heard by all parties to the communication.

(5) The gross sales of cottage food products by a cottage food operation shall not exceed $20,000.00 annually until December 31, 2017. After December 31, 2017, the The gross sales of cottage food products by a cottage food operation shall must not exceed $25,000.00 $40,000.00 annually until January 1, 2024. After January 1, 2024, the department shall annually adjust the gross sales amount in this subsection by the percentage by which the Detroit Consumer Price Index exceeds or is less than the Detroit Consumer Price Index for the preceding calendar year. For the purposes of this subsection, gross sales shall must be computed on the basis of the amount of gross sales within or at a particular domestic residence and shall not be computed on a per-person basis within or at that domestic residence. The department may request in writing documentation to verify the annual gross sales figure. As used in this subsection, "Detroit Consumer Price Index" means the most comprehensive index of consumer prices available for the Detroit area from the United States Department of Labor, Bureau of Labor Statistics.

(6) Cottage food products shall must be stored only in the primary domestic residence.

(7) An exemption under this section does not affect the application of any other state or federal laws or any applicable ordinances enacted by any local unit of government.

(8) If the MSU Product Center administers a registration program for cottage food operations, the records of which must be available to the department upon request, a cottage food operation may register with the MSU Product Center. The MSU Product Center may do both of the following:

(a) Issue a document that evidences the granting of registration and contains an identifying number unique to a cottage food operation.

(b) Collect a 1-time registration fee of not more than $50.00 to administer the registration program.

(9) A cottage food operation that registers with the MSU Product Center under subsection (8) shall include on the label described under subsection (3) the registration number issued to the cottage food operation. A cottage food operation that does not register with the MSU Product Center under subsection (8) shall include on the label described in subsection (3) the name and address of the cottage food operation.

(10) Information obtained under subsection (8) is exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.