Bill Text: MI HB4812 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Agriculture; other; certain feed standards; modify compliance with federal regulations. Amends secs. 3, 4, 5, 6, 13 & 14 of 1975 PA 120 (MCL 287.523 et seq.). TIE BAR WITH: HB 4811'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-04-10 - Assigned Pa 93'18 With Immediate Effect [HB4812 Detail]
Download: Michigan-2017-HB4812-Engrossed.html
HB-4812, As Passed Senate, March 8, 2018
HOUSE BILL No. 4812
July 12, 2017, Introduced by Reps. Victory, Pagel, LaSata, Hoadley, VanSingel, Brann, Whiteford, VanderWall and Barrett and referred to the Committee on Agriculture.
A bill to amend 1975 PA 120, entitled
"Feed law,"
by amending sections 3, 4, 5, 6, 13, and 14 (MCL 287.523, 287.524,
287.525, 287.526, 287.533, and 287.534), as amended by 2015 PA 83.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "AAFCO official publication" means the document entitled
"2015 Official Publication", as published by the Association of
American Feed Control Officials.
(b)
"Animal" means any vertebrate animal, other than humans,
human beings, including mammals, birds, fish, reptiles, and
amphibians, and any domesticated insect.
(c) "Animal feed" means edible material that is consumed by an
animal and contributes energy, nutrients, or both, to the animal's
diet.
(d) "Brand" means a word, name, symbol, or device, or a
combination of any of these that identifies the commercial feed of
a manufacturer or distributor and distinguishes it from that of
other manufacturers or distributors.
(e) "Bulk" or "in bulk" means feed that is not divided into
parts or packaged in separate units or any lot that is not in a
closed container at the time it passes to the possession of the
purchaser and includes that feed at any stage of distribution.
(f) "Cease order" means a cease order issued by the director
pursuant to section 15.
(g) "Commercial feed" means all materials or combination of
materials, including feed ingredients, that are distributed or
intended for distribution for use as animal feed or for mixing in
animal feed. Commercial feed does not include any of the following:
(i) Unmixed whole seeds or physically altered entire unmixed
seeds,
as defined by United States grain standards, 7 USC chapter
3,
if both of the following conditions
are met:
(A) The seeds are not chemically changed.
(B) The seeds are not adulterated within the meaning of
section 8.
(ii) Commodities, including, but not limited to, hay, straw,
stover, silage, cobs, and husks, that have undergone normal
harvesting practices, that are not intermixed with other materials
or chemically changed, and that are not adulterated within the
meaning of section 8.
(iii) Individual chemical compounds that are not intermixed
with other materials and are not adulterated within the meaning of
section 8.
(iv) Feed provided to contract feeders that is manufactured by
integrated operators that is not adulterated within the meaning of
section 8.
(v) Unmixed meat, poultry, fish, and other portions of animal
carcasses to be commercially sold in their raw or natural state
without further processing or packaging, except freezing or
denaturing, if both of the following conditions are met:
(A) The products are not adulterated within the meaning of
section 8.
(B) The products are not intended as commercial feed or for
use as a feed ingredient.
(vi) Feeder mice, other live feeder animals, and crickets that
are not adulterated within the meaning of section 8.
(h) "Commission" means the commission of agriculture and rural
development.
(i) "Contract feeder" means a person that is an independent
contractor that feeds animals pursuant to a contract if the feed is
supplied, furnished, or otherwise provided to the person.
(j) "Customer-formula feed" means commercial feed that
consists of a mixture of commercial feeds or feed ingredients, each
batch of which is manufactured according to the specific
instructions of the final purchaser or purchaser's agent.
(k) "Department" means the department of agriculture and rural
development.
(l) "Director" means the director of the department or the
director's authorized representative.
(m) "Distribute" means either of the following:
(i) To offer for sale, hold for sale, sell, exchange, or
barter commercial feed.
(ii) To supply, furnish, or otherwise provide commercial feed
to a contract feeder or integrated operator.
(n) "Distributor" means a person that distributes.
(o) "Drug" means either of the following:
(i) Any article intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in animals.
(ii) Any article other than feed intended to affect the
structure or a function of the animal body.
(p) "Embargo order" means an embargo order issued by the
director pursuant to section 15.
(q) "Feed ingredient" means each of the constituent materials
making up a commercial feed.
(r)
"Food additive" means that term as it is defined in 21 USC
321(s).
(s) "Fund" means the feed control fund created in section 17.
(t) "Guarantor" means a person that agrees to be responsible
for labeling, information, guarantees, and claims.
(u) "Integrated operator" means a person located within this
state that manufactures animal feed for other integrated operators
if there is a minimum of 5% ownership by all persons involved in
each aspect of the operation that supply or share feed and
ingredients.
(v) "Label" means a display of written, printed, or graphic
matter upon or affixed to the container in which a commercial feed
is distributed or on the invoice or delivery slip with which a
commercial feed is distributed.
(w) "Labeling" means all labels and other written, printed,
electronic, or graphic matter, and includes advertising.
(x) "License" means a commercial feed license issued under
this act.
(y) "Licensee" means a person that has been issued a license.
(z) "Local unit of government" means a county, township, city,
or village.
(aa) "Manufacture" means to prepare, grind, mix, package,
repackage, or relabel commercial feed for distribution.
(bb) "Manufacturer" means a person that manufactures.
(cc) "Noncommercial feed" means all materials or combination
of materials, not distributed or intended for distribution, that
are for manufacturing and use as feed or for mixing in feed. A
person manufacturing noncommercial feed is not subject to licensing
or tonnage fees under this act.
(dd) "Official sample" means a sample of feed taken by the
director in accordance with section 7.
(ee) "Percent" or "percentage" means the percentage by weight.
(ff) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(gg) "Pet food" means any commercial feed prepared and
distributed for consumption by dogs or cats.
(hh) "Product name" means the name of the commercial feed that
identifies it as to kind, class, or specific use and distinguishes
it from all other products bearing the same brand name.
(ii) "Quantity statement" means a writing containing the net
weight of a solid or net weight or net volume of a liquid.
(jj) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(kk) "Seizure order" means a seizure order issued by the
director pursuant to section 15.
(ll) "Sell" or "sale" means the exchange of ownership.
(mm) "Specialty pet" means any noncanine or nonfeline
domesticated animal kept as a pet and normally confined to and
maintained in a cage or tank within the owner's domicile,
including, but not limited to, gerbils, hamsters, canaries,
psittacine birds, mynahs, finches, tropical fish, goldfish, snakes,
and turtles.
(nn) "Ton" means a net weight of 2,000 pounds avoirdupois.
Sec. 4. (1) Except as provided in subsection (2), the
following persons shall obtain a license under this act:
(a) A manufacturer of commercial feed for each facility in
this state used to manufacture commercial feed.
(b) A person, other than a manufacturer, that distributes
commercial feed within this state or that serves as guarantor of
commercial feed distributed within this state.
(2) The following persons are not required to obtain a
license:
(a) A person that makes only retail sales of commercial feed
that contains labeling or another approved indication that the
commercial feed is from a licensed manufacturer, distributor, or
guarantor that has assumed full responsibility for the inspection
fee due under section 6.
(b) An on-farm mixer-feeder, if the person is not distributing
feed commercially.
(c) An integrated operator that does not distribute feed
commercially.
(d) A person that manufactures or distributes food that was
originally intended for human consumption or other processed by-
product that is intended for use as animal feed, is not exempt
under section 3(g), and is not adulterated as defined in section 8,
and that person distributes the food or other processed by-product
only to a person holding a commercial feed license. The person
holding a commercial feed license is responsible for ensuring the
animal feed complies with the requirements of this act, including
labeling under section 5 and the inspection fee under section 6.
(3) A person that wishes to obtain a license shall submit an
application to the department on a form provided by or approved by
the director and accompanied by a license fee payable to this state
in the following amount:
(a) For a manufacturer, $100.00 for each manufacturing
facility, except that the fee for a manufacturer that manufactures
commercial feed in containers of 5 pounds or less is $25.00 for
each manufacturing facility.
(b) For a distributor or guarantor whose name appears on the
label, $100.00, except that the fee for a distributor or guarantor
of commercial feed that is distributed in containers of 5 pounds or
less is $25.00.
(4) A new applicant that fails to obtain a license within 30
calendar days after notification of the requirement to obtain a
license, or any licensee that fails to comply with license renewal
requirements by June 30, shall pay a $50.00 late fee in addition to
the license fee.
(5) License fees and late fees collected under this section
shall
must be forwarded to the state treasurer for deposit into
the
fund.
(6) The director shall issue an initial or renewal license not
later than 90 days after the applicant submits a complete
application accompanied by the appropriate license fee. If the
application is incomplete, the department shall notify the
applicant within 60 days after the department receives the
application.
(7)
After approval by the director, a license shall must be
furnished
to the applicant. The license shall must be displayed
prominently at each manufacturing facility used to manufacture
commercial
feed and shall must be available at the principal
business office or the registered office of each distributor or
guarantor.
(8) A license expires on June 30. A license is not
transferable from 1 person to another, from 1 owner to another, or
from 1 location to another.
(9) To determine compliance with this act and rules
promulgated under this act, the director may require a current
licensee or an applicant for a new license to submit labels or
labeling being used or intended for use with a commercial feed.
(10) The director may do 1 or more of the following:
(a) Place conditions that limit the manufacture or
distribution of a particular commercial feed on the license of any
person found not in compliance with this act or the rules
promulgated under this act.
(b) Refuse to license an applicant, or revoke or suspend the
license of any person not in compliance with this act or the rules
promulgated under this act.
(11)
A license shall must not be refused, conditioned,
revoked, or suspended until the licensee or applicant for a license
is given the opportunity for a hearing pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(12) After a hearing is conducted pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, under subsection (11), the department may revoke or refuse
to issue or renew a license if any of the following occurred within
the 3 years preceding the date of the license application:
(a) A previous license issued under this act to a person with
an ownership or management interest in the new operation was
revoked due to the adulteration of commercial feed under section 8
or a violation of section 9.
(b) The applicant, a manager employed by the applicant, or any
other individual with management responsibilities for the feed
manufacturing operation of the applicant was convicted of any
felony involving fraud, conversion, or embezzlement.
(c) The applicant's license under the federal food, drug, and
cosmetic
act, 21 USC 301 to 399h, registration under the
bioterrorism
act, 21 USC 350d, or commercial
feed license in
another state was revoked or canceled because of a violation of the
respective act.
(13) Each distributor and guarantor holding a license that
operates from a business location outside this state shall do
either of the following:
(a) Continuously maintain in this state a registered office
and a resident agent, which agent may be an individual resident in
this state whose business office or residence is identical with the
registered office, a domestic corporation or limited liability
company, or a foreign corporation or limited liability company
authorized to transact business in this state and having a business
office identical with the registered office. The licensee shall
file with the department the name, address, and telephone number of
the resident agent and shall maintain and make available records
required by this act.
(b) Maintain and make available to the department records
required by this act and pay all costs incurred by the department
in auditing the records if they are held at an out-of-state
location.
(14)
A license issued prior to the effective date of the
amendatory
act that added this subsection before
October 1, 2015,
remains in effect until July 1, 2016, subject to revocation or
suspension as otherwise provided in this act. Beginning July 1,
2016, all persons required to obtain a license under this section
shall obtain a license as provided in this section.
Sec.
5. (1) Commercial feed shall must
be labeled as follows:
(a) Each container of commercial feed, except a customer-
formula
feed, shall must be accompanied by a label with the
following information in legibly printed form:
(i) The quantity statement of the contents.
(ii) The product name and brand name, if any.
(iii) The guaranteed analysis stated in those terms as the
director by rule determines is required to advise the user of the
composition of the feed or to support claims made in the labeling.
The substances or elements must be determinable by laboratory
methods such as the methods published by AOAC International.
(iv) The common or usual name of each ingredient used in the
manufacture of the commercial feed. However, the director may do
either or both of the following:
(A) By rule, permit the use of a collective term for a group
of ingredients that perform a similar function.
(B) Exempt commercial feeds, or any group of commercial feeds,
from the requirement of this subparagraph if the director finds
that the information required is not in the interest of purchasers.
(v) The name and principal mailing address of the manufacturer
or the person responsible for distributing the commercial feed.
(vi) Directions for use for all commercial feeds containing
drugs and for other feeds the director by rule requires as
necessary for their safe and effective use.
(vii) Precautionary statements that the director determines by
rule are necessary for the safe and effective use of the commercial
feed.
(viii) If a drug product is used, both of the following:
(A) The purpose of the medication.
(B) The established name of each active drug ingredient and
the level of each drug used in the final mixture expressed in
accordance with rules prescribed as necessary by the director.
(ix) The date of manufacture, processing, packing, or
repacking, or a code that permits the determination of the date or
enables the segregation of specific lots of feed if the director
finds segregation is necessary for the enforcement of this act. Tag
perforations,
notches, and other similar markings shall are not be
recognized
as suitable codes for the purpose
of identifying
specific lots of feed unless they can be translated into an
alphanumeric code without the use of special tools.
(2) A commercial feed, except a customer-formula feed,
distributed
in bulk, shall must be accompanied by a label in
accordance
with subsection (1), and the label shall must be
presented to the purchaser or the purchaser's agent or affixed to
the purchaser's storage container at the time of delivery of the
commercial feed.
(3) Bulk commercial feed held for further manufacturing or
distribution
shall must be labeled in such a manner that its
identity and traceability are maintained at all times.
(4)
A customer-formula feed shall must
be accompanied by a
label, invoice, delivery slip, or other shipping document that
contains the following information:
(a) The name and address of the manufacturer.
(b) The name and address of the purchaser.
(c) The date of delivery.
(d) The product name.
(e) A quantity statement of the lot or lots delivered.
(f) If a drug product is used, both of the following:
(i) The purpose of the medication.
(ii) The established name of each active ingredient and the
level of each drug used in the final mixture expressed in
accordance with rules promulgated, as necessary, by the director.
(5) The following information related to a customer-formula
feed
shall must be sent to the purchaser upon delivery, or within 1
business day, by electronic means, such as electronic mail or
facsimile:
(a) The product name and quantity statement for each
commercial feed and each other ingredient used in the mixture.
(b) Adequate directions for use for all commercial feeds
containing drugs and for other feeds as necessary for their safe
and effective use if required by rule.
(c) Precautionary statements as necessary for the safe and
effective use of the commercial feed if required by rule.
Sec.
6. (1) An inspection fee of $0.30 per ton shall must be
paid on commercial feed distributed in this state by the person
whose name appears on the label as the manufacturer, guarantor, or
distributor, except that a person other than the manufacturer,
guarantor, or distributor may assume responsibility for the
inspection fee, subject to the following:
(a)
A fee shall not be paid on a If
more than 1 person is
involved
in the distribution of commercial feed, if
the payment has
been
made by a previous distributor.the
last person that is
required to be licensed and that distributes to a nonlicensee is
responsible for reporting the tonnage distributed and paying the
inspection fee.
(b)
A fee shall will not be paid on customer-formula feed if
the inspection fee is paid on the commercial feeds that are used as
ingredients within the customer-formula feed.
(c) The minimum inspection fee is $50.00 per July 1 to June 30
annual period.
(d) The inspection fee is $0.15 per ton on feed ingredients
that are by-products of manufacturing processes and have a moisture
content equal to or greater than 60%.
(2) Each person liable for paying the inspection fee under
subsection (1) shall do both of the following:
(a) File annually, by the last day of July, a statement,
stating the number of tons of commercial feed distributed in this
state during the preceding July 1 to June 30 period. The inspection
fee
and tonnage shall must be reported on forms furnished or
approved by the director. Payments due of less than $5.00 are
waived, and refunds of less than $5.00 will not be processed unless
requested in writing. For any report not filed with the department
by the due date, a penalty of $50.00 or 10% of the amount due,
whichever
is greater, shall will be assessed. The assessment of
this penalty fee does not prevent the department from taking other
actions as provided in this act.
(b) Maintain records for 2 years to accurately indicate the
commercial feed tonnage distributed in this state. The director may
examine the records to verify statements of tonnage.
(3) Failure to make an accurate statement of tonnage, pay the
inspection fee, or comply with this section constitutes sufficient
cause for suspending a distributor license.
(4) Unless disclosure is required for the enforcement of this
act, the information furnished under this section is private or
nonpublic, is exempt from disclosure under the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246, and shall not
be disclosed by an employee of the department in any manner that
divulges the business operations of a licensee required by this
section to make a report.
Sec. 13. A person manufacturing or distributing commercial
feed shall comply with all of the following:
(a)
The "AAFCO Model Good Manufacturing Practice Regulations
for
Feed and Feed Ingredients" as published within the AAFCO
official
publication, which is hereby incorporated by reference.
These
regulations apply in determining whether a commercial feed
meets
either of the following:
(i) Is adulterated within the meaning of section 8.
(ii) Has been produced, prepared, packed, or held under
unsanitary
conditions through which it may have become contaminated
with
filth or rendered unwholesome or unsafe to animal or public
health.
(a) (b)
The requirements in 21 CFR 558.6
for a veterinary feed
directive drug as defined in 21 CFR 558.3.
(b) (c)
The requirements in 21 CFR 589.1 to
589.2001 for
prohibited mammalian protein.
(c) (d)
The following requirements of
manufacturing or
distributing commercial feeds containing drugs:
(i) The regulation prescribing good manufacturing practices
for type B and type C medicated feeds in 21 CFR 225.1 to 225.202.
(ii) The regulations prescribing good manufacturing practices
for type A medicated articles in 21 CFR 226.1 to 226.115.
(d) The requirements in 21 CFR part 507 for good manufacturing
practices and preventive controls for animal food.
Sec. 14. A person shall not do or shall not cause any of the
following:
(a) Manufacture or distribute any commercial feed that is
adulterated or misbranded.
(b) Adulterate or misbrand any commercial feed.
(c) Distribute agricultural commodities such as whole grain,
whole seed, hay, straw, stover, silage, cobs, and husks, that are
adulterated within the meaning of section 8. Upon prior approval by
the director, commodities described in this subdivision may be
distributed if reworked to acceptable levels for safe use to be fed
to animals.
(d) Remove or dispose of, without authorization from the
director, commercial feed subject to a seizure order.
(e) Fail or refuse to obtain a license required under section
4.
(f) Fail to make records available, furnish reports, permit
the examination of records, or pay an inspection fee as required
under section 6.
(g) Refuse, or cause another person to refuse, to permit
entry, inspection, sampling, or examination and copying of
production and distribution records and production and control
procedures authorized under section 7.
(h) Provide false information in a matter pertaining to this
act or resist, impede, or hinder the director or authorized
representatives in the discharge of their duties.
(i) Violate section 16(8).
(j) Violate a rule promulgated under section 11.
(k)
Reuse bags, totes, or other containers for commercial
feeds,
animal feed, including customer-formula feeds, unless the
container has always been used and restricted to use within a
commercial licensed facility, or is in, on, or upon a portable
device and can be filled without entering the manufacturing
facility. Containers that have been used to directly feed
livestock,
such as tubs, troughs, licks, or other containers, shall
must not be refilled with feed.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4811 (request no.
02472'17) of the 99th Legislature is enacted into law.
