Bill Summary – FastDemocracy

Legislative Analysis
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SALES THRESHOLD FOR LICENSURE EXEMPTION FOR
                                                                                     http://www.house.mi.gov/hfa
RETAIL OUTLETS SELLING MAPLE SYRUP OR HONEY
                                                                                     Analysis available at
Senate Bill 882 as passed by the Senate                                              http://www.legislature.mi.gov
Sponsor: Sen. Sam Singh
House Committee: Agriculture
Senate Committee: Energy and Environment
Complete to 12-18-24
SUMMARY:
        Senate Bill 882 would amend section 4105 of the Food Law to increase the threshold for how
        much honey or maple syrup can be sold before licensure by the Michigan Department of
        Agriculture and Rural Development (MDARD) is required under the act.
        Currently, section 4105 provides for an exemption from licensure as a food establishment or
        food processing facility involving the sale or processing of honey or maple syrup if the
        producer has gross sales of $15,001 or less. If a retail outlet is owned by the producer and sells
        only prepackaged honey or maple syrup that was made in Michigan and the processing facility
        is licensed, then the retail outlet is exempt from having to become licensed as a food
        establishment under the Food Law.
        The bill would increase this sales threshold to $25,000, 1 matching the existing threshold for
        the value of foods that are allowed to be sold under the state’s cottage food laws without the
        individual making those goods needing to obtain licensure. Honey and maple syrup are not
        considered cottage food products under state law.
                 Cottage food product means a food that is not potentially hazardous food as that term
                 is defined in the Food Code. Examples of cottage food product include 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 potentially hazardous food regulated under
                 21 CFR parts 113 and 114, 2 examples of which include 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 low-acid fruits or acidified
                 vegetables and other canned foods except for jams, jellies, and preserves as defined in
                 21 CFR part 150. 3
        MCL 289.4105
1
  House Bill 6131 proposes to increase this threshold to $45,000 by default, with the potential for up to $75,000 in
annual gross sales.
2
  https://www.ecfr.gov/current/title-21/chapter-I/subchapter-B/part-113 and https://www.ecfr.gov/current/title-
21/chapter-I/subchapter-B/part-114
3
  https://www.ecfr.gov/current/title-21/chapter-I/subchapter-B/part-150
House Fiscal Agency                                                                                     Page 1 of 2
BACKGROUND:
       According to House committee testimony from a representative of the Sustainable Beekeepers
       Guild of Michigan, the current sales limit on honey discourages local production. As an
       example, they noted that an individual with 20 bee colonies can produce up to 2,000 pounds of
       honey in a slower year, which would yield revenue of approximately $20,000 at the going rate
       of $10 a pound. Because licensed facilities are difficult to find for small-scale beekeepers, and
       building an appropriate facility for processing is cost-prohibitive for a sole proprietor at this
       scale, in order to comply with state law beekeepers must choose between losing money by
       forgoing sales to stay under the sales threshold or spending much more to have their honey
       processed in a commercial facility without the benefit of additional profit.
        Other states in the Midwest either have higher sales limits for cottage foods or have no sales
        limit but stricter regulations as to which food items qualify as a cottage food and how and
        where cottage foods may be sold.
FISCAL IMPACT:
        Senate Bill 882 would have no direct fiscal impact on the state or local units of government.
POSITIONS:
        A representative of the Sustainable Beekeepers Guild of Michigan testified in support of the
        bill. (12-11-24)
        The following entities indicated support for the bill (12-11-24):
           • Michigan Department of Agriculture and Rural Development
           • Michigan Farm Bureau
           • Michigan Farmers Market Association
                                                         Legislative Analyst: Josh Roesner
                                                              Fiscal Analyst: William E. Hamilton
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                 SB 882 as reported from House committee   Page 2 of 2
Statutes affected: 
Senate Introduced Bill: 289.4105
As Passed by the Senate: 289.4105