HOUSE BILL NO. 6132

A bill to amend 2000 PA 92, entitled

"Food law,"

by amending sections 1111, 2125, 4111, 4117, 5105, 6137, and 7114 (MCL 289.1111, 289.2125, 289.4111, 289.4117, 289.5105, 289.6137, and 289.7114), section 1111 as amended by 2018 PA 92, section 2125 as amended by 2022 PA 126, section 4111 as amended by 2016 PA 188, section 4117 as amended by 2023 PA 194, section 5105 as amended and section 7114 as added by 2012 PA 178, and section 6137 as amended by 2007 PA 114.

the people of the state of michigan enact:

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 in accordance with 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 indicates 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.

(iv) Wet storage activity.

(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.

(h) (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.

(i) (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.

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

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

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

(m) "Transitory food unit" means a temporary food establishment that is licensed to operate throughout this state without a 14-day limit or a mobile food establishment that is not required to return to a commissary.

(n) (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.

(o) (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.

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

(q) (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.

(r) (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.

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

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

Sec. 2125. (1) The department shall charge the following fees for the following services:

(a) A reissuance of a duplicate license, $15.00.

(b) An evaluation of a food establishment if the evaluation is a second reevaluation of a food establishment that has already been evaluated and found to have a priority item or priority foundation item violation or if the evaluation is performed at the request of the operator, $60.00.

(c) A shellfish dealer's certificate, $150.00 annually.

(d) A review and approval of training materials, $60.00 per hour.

(e) A special transitory food unit plan review, $197.00.

(f) A Any other plan review, as specified in section 8-201.11 of the food code, $197.00.

(2) Fees collected under this section must be deposited in the dairy and food safety fund created in section 4117 for enforcement of this act.

(3) The services referred to in subsection (1)(d) and (e) involve the formal review and approval procedure. The department may provide informal review or answer questions without charging a fee.

Sec. 4111. (1) The department shall impose the following license fees for each year or portion of a year:

(a) Retail grocery: $106.00 for 2016, $145.00 for 2017, and $183.00. for any subsequent year.

(b) Extended retail food establishment: $271.00 for 2016, $370.00 for 2017, and $468.00. for any subsequent year.

(c) Food processor: $271.00 for 2016, $370.00 for 2017, and $468.00. for any subsequent year.

(d) Limited food processor: $106.00 for 2016, $145.00 for 2017, and $183.00. for any subsequent year.

(e) Mobile food establishment: $183.00 for 2016, $186.00 for 2017, and $189.00. for any subsequent year.

(f) Temporary food establishment: $40.00 for 2016, $55.00 for 2017, and $70.00. for any subsequent year.

(g) Special transitory Transitory food unit: $150.00 for 2016, $153.00 for 2017, and $156.00. for any subsequent year.

(h) Mobile food establishment commissary: $183.00 for 2016, $186.00 for 2017, and $189.00. for any subsequent year.

(i) Food warehouse or vending company base location: $106.00 for 2016, $145.00 for 2017, and $183.00. for any subsequent year. In addition, the operator of the vending company base location shall pay an additional fee based on the number of vending machine locations in this state, as follows:

(i) 1 to 20 locations, $500.00.

(ii) 21 to 50 locations, $750.00.

(iii) 51 to 75 locations, $2,000.00.

(iv) More than 75 locations, $3,000.00.

If a person operates more than 1 vending company base location in this state, all vending machine locations served by those vending company base locations shall must be aggregated on 1 of the vending company base location licenses for the purpose of determining the amount of the additional fee for vending machine locations.

(j) Food service establishment: the amounts described in subsection (2).

(2) If a local health department no longer conducts a food service program, the department, in consultation with the commission of agriculture and rural development, shall set the food sanitation fees to be imposed for the conduct of the food service program by the department. The fees imposed must equal, as nearly as possible, 1/2 of the department's cost of providing the service. The department may impose the service fees for up to 12 24 months after the date of cessation by the local health department. After the 12-month 24-month period, the department shall collect the fees only as authorized pursuant to in accordance with an appropriation.

(3) Any A license fee paid on an initial application under this act is nonrefundable.

(4) The department may charge a convenience fee and collect from the applicant any additional costs associated with the method of fee payment for the license or permit fees described in this chapter, not to exceed the costs to the department.

Sec. 4117. (1) Except as provided in subsections (2) and (3), money collected under this chapter by the department must be credited to the dairy and food safety fund that is created as a restricted fund within the state treasury. The state treasurer may receive money or other assets, from appropriations or from any other source, for deposit into the fund. The state treasurer shall direct the investment of the fund. The money in the fund does not lapse to the general fund at the end of the fiscal year and carries over to the following fiscal years. The state treasurer shall credit to the fund interest and earnings from fund investments. The department shall administer is the administrator of the fund and shall expend money from the fund for the purpose of administering this act and enforcing the provisions of this act, the grade A milk law of 2001, 2001 PA 266, MCL 288.471 to 288.540, and the manufacturing milk law of 2001, 2001 PA 267, MCL 288.561 to 288.740. The department shall be is the administrator of the fund for auditing purposes.

(2) A consumer and industry food safety education fund is created as a revolving fund in the department of treasury. The department is the administrator of the consumer and industry food safety education fund. must be administered by the department and The consumer and industry food safety education fund is funded by adding $3.00 to the fee for each food establishment license and $2.00 to the fee for each food service establishment license in all categories except vending machines and in cases of fee-exempt food establishments. Beginning on the effective date of the amendatory act that added this sentence, the industry food-safety education fund is abolished and any unencumbered balance in the industry food-safety education fund at that time reverts to the consumer and industry food safety education fund under this subsection. Money that remains in the consumer and industry food safety education fund at the end of the fiscal year does not lapse and carries forward to the next fiscal year. The money in the consumer and industry food safety education fund must be used to provide statewide both of the following:

(a) Statewide training and education to consumers on food safety. Money remaining in the fund at the end of the fiscal year carries forward into the next fiscal year.

(b) Food safety training and education for employees of food establishments and agents of the department who enforce this act.

(3) An industry food-safety education fund is created as a revolving fund in the department of treasury. The industry food-safety education fund must be administered by the department and funded by adding $2.00 to the fee for each food service establishment license in all categories except vending machines and in cases of fee-exempt food establishments. The money in the fund must be used to provide food safety training and education to food service establishment employees and agents of the director who enforce this act. Money remaining in the fund at the end of the fiscal year carries forward into the next fiscal year.

(3) (4) As used in this section, "fee-exempt food establishment" means a food establishment exempt from all state and local food establishment license fees under section 3119(3) combined with an exemption from the local health department sanitation service fee under section 2444 of the public health code, MCL 333.2444.

Sec. 5105. (1) Upon On finding that a person violated a provision of this act or a rule, promulgated under this act, the department may impose an administrative fine of not more than $500.00 for the first offense and not more than $1,000.00 for a second or subsequent offense and the actual costs of the investigation of the violation. Each day of a continuing violation is not considered a separate violation of this act or a rule. promulgated under this act. The department shall not impose upon any licensee or registrant administrative fines in the aggregate amount of more than $4,000.00 per location for a firm with annual gross receipts of $500,000.00 or less and $8,000.00 per location for a firm with annual gross receipts of over $500,000.00 during any 12-month period.

(2) Administrative fines and costs collected under this section shall must be deposited into the dairy and food safety fund.

(3) This section does not require the department to issue an administrative fine for minor violations of this act if the department believes that the public interest will be adequately served under the circumstances by a suitable written notice or warning.

(4) The department shall not impose administrative fines for violations of the food code other than priority items, priority foundation items, or repeated violations that remain uncorrected beyond the time frame for correction specified under, or agreed to, specified, or approved by the director under section 8-405.11(A) or (B) or 8-406.11(A) or (B) of the food code. The department shall not impose an administrative fine for a core item violation of the food code unless the violation is not corrected within 30 calendar days after the evaluation.

Sec. 6137. (1) To qualify for a special transitory food unit license, an applicant shall allow a review and receive approval of plans and specifications as specified in chapter VI. This review and approval must include the menu and standard operating procedures for the transitory food unit. The applicant must be licensed under this act and receive at least 1 evaluation by a regulatory authority.

(2) A special transitory food unit license holder shall do all of the following:

(a) Keep a copy of the approved standard operating procedures in the transitory food unit and available for review upon on evaluation by the director.

(b) Operate in compliance with standard operation procedures approved by the director.

(c) Before serving food within the jurisdiction of a local health department, notify the local health department in writing of each location in the jurisdiction at which food will be served, and the dates and hours of service, and a copy of the menu. The license holder shall mail the notice by first-class mail or deliver the notice provide, and the local health department must receive, a notification of intent to operate not less than 4 business days before any food is served or prepared for serving within the jurisdiction of the local health department.the intended start date of operation.

(d) While in operation, request and receive 2 evaluations per licensing year spaced generally over the span of the operating season, . A local health department and the department shall with not less than 1 month between each evaluation. At least 1 evaluation must be conducted by the regulatory authority that issued the license to the transitory food unit. The regulatory authority may charge a fee of $90.00 for such an evaluation under this section.

(e) Send a copy of all evaluation reports to the regulatory authority that approved issued the license within 30 days after receipt.

(3) If a license holder fails to comply with any of the requirements of this section or the food code, the food establishment is ineligible for licensure as a special transitory temporary food establishment unit for the following licensing year and must apply for a temporary or other type of food establishment licenses.license.

(4) The owner of the transitory food unit shall affix a decal provided by the department on the transitory food unit at the time the license is issued. The decal must be conspicuously displayed so that it is visible while serving the public.

Sec. 7114. (1) U.S. standards for shell eggs are adopted by reference.

(2) Eggs described by United States department Department of agriculture Agriculture as black rots, white rots, mixed rots (addled eggs), sour eggs, eggs with green whites, stuck yolks, blood rings or embryos beyond blood ring stage, moldy eggs, musty eggs, bloody whites, crusted yolks, eggs with abnormal odors, and any eggs which that contain wholly or in part a tainted, disease, filthy, decomposed, or putrid substance are eggs unfit for human food.

(3) A person shall not sell, offer, or expose for sale to the a consumer or to the retail trade, or have in his or her the person's possession with intent to sell to the a consumer , or to the retail trade, any egg unfit for human food. Such an An egg shall unfit for human food must be broken out of the shell and denatured or destroyed by methods approved by the director so that it the egg cannot be used for human food.

(4) The final determination of all grade and quality factors of an official sample of shell eggs from domesticated chickens shall must be made by visual examination of the egg to determine cleanliness, soundness of shell, and exterior quality, and by candling or breaking to determine interior quality. The examination shall must be made by a competent representative authorized by the director. The representative shall certify the results of the examination and his or her the representative's certificate shall be is prima facie evidence of the facts certified to in any a court where the certificate is offered in evidence.

(5) All eggs from domesticated chickens sold, offered, or exposed for sale, or advertised for sale by a retailer or wholesaler shall must be marked as follows to conform to the following applicable size requirement:

(a) "Jumbo", if the eggs weigh at the rate of not less than 30 ounces per dozen, with no eggs below the rate of 29 ounces per dozen.

(b) "Extra large", if the eggs weigh at the rate of not less than 27 ounces per dozen, with no eggs below the rate of 26 ounces per dozen.

(c) "Large", if the eggs weigh at the rate of not less than 24 ounces per dozen, with no eggs below the rate of 23 ounces per dozen.

(d) "Medium", if the eggs weigh at the rate of not less than 21 ounces per dozen, with no eggs below the rate of 20 ounces per dozen.

(e) "Small", if the eggs weigh at the rate of not less than 18 ounces per dozen, with no eggs below the rate of 17 ounces per dozen.

(f) "Peewee", if the eggs weigh at the rate of not less than 15 ounces per dozen.

(6) All advertising of eggs shall must include the correct unabbreviated size designation in describing eggs. The correct unabbreviated size designation shall also must appear on the exterior of any a container, open or closed, in which eggs are offered for sale to the retailer or the consumer.

(7) A person shall not, by himself or herself or his or her agents on the person's own or through an agent, sell, offer, or expose for sale, advertise, or in any manner represent for sale as strictly fresh, hennery, new laid, best, grade A, number 1, fancy, special, extra, selected, direct from the farm, or under any word, figures, symbols, or description of similar import, any eggs which that are not fresh. An egg is not considered fresh unless it meets the standards of quality specified for the U.S. AA or A quality, or the equivalent, as designated in U.S. standards for shell eggs for individual eggs or in standards prescribed by the director by rule.

(8) All eggs from domesticated chickens sold, offered or exposed for sale, or advertised for sale by a retailer or wholesaler shall must be labeled or marked to conform to one of the following grade requirements:

(a) Eggs that fully meet the specifications of U.S. AA quality or fresh fancy quality, or the equivalent thereof, as described in U.S. standards for shell eggs, shall must be labeled and advertised as grade AA or fresh fancy eggs, Michigan seal of quality eggs, grade A or grade B eggs.

(b) Eggs that fully meet the specifications of the U.S. A quality, or the equivalent thereof, as described in U.S. standards for shell eggs, shall must be labeled and advertised as grade A or grade B eggs.

(c) Eggs that fully meet the specifications of a U.S. B quality, or the equivalent thereof, as described in U.S. standards for shell eggs, shall must be labeled and advertised as grade B eggs.

(d) Eggs that do not meet the grade requirements of subdivision (a), (b), or (c) shall must not be offered for sale or sold in the shell. Those eggs may be broken out of the shell at the grading plant or grading station or may be offered for sale or sold to an egg breaking plant.

(9) Eggs shall must be held and transported at or below 45 degrees Fahrenheit ambient temperature beginning 36 hours after time of lay. If the eggs are to be processed as table eggs and are not processed for the ultimate consumer within 36 hours from the time of lay and, therefore, are held and transported as required at or below 45 degrees Fahrenheit ambient temperature, then the eggs may be held at room temperature for no more than 36 hours just prior to before processing to allow an equilibration step to temper the eggs.

(10) A person shall not knowingly sell or offer or expose for sale a shell egg that the person knows or should know is the product of an egg-laying hen that was confined in a manner that does not comply with the requirements of section 46 of the animal industry act, 1988 PA 466, MCL 287.746.

(11) A person that sells or offers or exposes for sale a shell egg that is derived from an egg-laying hen shall maintain a record of compliance with section 46 of the animal industry act, 1988 PA 466, MCL 287.746. The record of compliance described under this subsection must be on a form and in a manner prescribed by the department. A record of compliance under this subsection is valid for 1 year and must be retained for 3 years and made available for inspection by the department on request.

(12) All shell eggs sold in this state must be labeled or marked with an indication that the shell eggs meet the requirements of section 46 of the animal industry act, 1988 PA 466, MCL 287.746. A commercially recognized label or marking may be used, but the label or marking is not required to specifically reference or cite to section 46 of the animal industry act, 1988 PA 466, MCL 287.746. The department may issue a list of commercially recognized labels for use in complying with this subsection.

(13) Except as otherwise provided in this subsection, shell eggs that enter or are transported within this state for commercial sale in this state must be transported with a shipping document that includes a statement identifying that the shell eggs comply with section 46 of the animal industry act, 1988 PA 466, MCL 287.746. A commercially recognized label described under subsection (12) satisfies the requirements of this subsection. Shell eggs that enter or are transported within this state exclusively for purposes of transshipment, export, donation, or sale to federal agencies or on tribal lands and are not destined for commercial sale in this state must be transported with a shipping document that, upon entrance into this state, is legibly and plainly printed or stamped with the statement "For Export" or "For Transshipment". As used in the subsection, "export" includes shipment to or from this state to another state.

(14) Shell eggs that enter or are transported within this state for commercial sale that do not comply with section 46 of the animal industry act, 1988 PA 466, MCL 287.746, and that originate from an official plant under mandatory inspection that holds an establishment number with prefix "G" granted by the United States Department of Agriculture, Food Safety Inspection Service under the egg products inspection act, 21 USC 1031 to 1056, and are being transported to another official plant under mandatory inspection that holds an establishment number with prefix "G" granted by the United States Department of Agriculture, Food Safety Inspection Service under the egg products inspection act, 21 USC 1031 to 1056, solely for purposes of using the shell eggs for making food products not covered by section 46 of the animal industry act, 1988 PA 466, MCL 287.746, must be transported with a shipping document that, upon entrance into this state, is legibly and plainly printed or stamped with the statement "For further processing/not for sale as shell eggs.".

(15) A person shall not label, identify, mark, advertise, or otherwise represent shell eggs for purposes of commercial sale as complying with section 46 of the animal industry act, 1988 PA 466, MCL 287.746, if the shell eggs are the product of an egg-laying hen that was confined in a manner that does not comply with the requirements of section 46 of the animal industry act, 1988 PA 466, MCL 287.746.

(16) (10) This act does not apply to a person who that meets all of the following requirements:

(a) Is directly responsible for producing shell eggs from fewer than 3,000 egg-laying hens.

(b) Only sells eggs directly to consumers or first receivers.

(c) Only sells eggs in containers that each bear have a label stating that contains the statement "packaged in a facility that has not been inspected by the department.".

(d) Does not sell eggs through the internet or by mail order or consignment.