FOOD LAW: AMEND LICENSE AND CERTIFICATE FEES

House Bill 5940

Sponsor:  Rep. Kevin Daley

Committee:  Agriculture

Complete to 12-1-14

A SUMMARY OF HOUSE BILL 5940 AS INTRODUCED 11-13-14

House Bill 5940 would amend the Food Law (Public Act 92 of 2000) by increasing certain license and certificate fees contained within the act. It also would add compliance with rules promulgated under the act as a reason the director of the Michigan Department of Agriculture and Rural Development (MDARD) conducts inspections.

The revised fee schedule is outlined below.

FISCAL IMPACT:

The revised fee schedule would be as follows (fee amounts listed for current year, 2015, 2016, and then subsequent years)

Service/Inspection

Current Year

2015

2016

After 2016

Free Sale Letter

$25

$60

$60

$60

Retail Food

Establishment

$67

$134

$160

$183

Extended Retail

Food Establishment

$172

$344

$400

$468

Food Processor

$172

$344

$400

$468

Limited Food

Processor

$67

$134

$160

$183

Mobile Food

Establishment

$172

$183

$186

$189

Temporary Food

Establishment

$25

$50

$60

$70

Special Transitory

Food Unit

$135

$150

$153

$156

Mobile Food

Establishment Commissary

$172

$183

$186

$189

Food Warehouse

$67

$134

$160

$183

For a renewal application postmarked or delivered in person on or after May1 of each year, the department would impose a late fee of an additional $150.  Currently, the late fee is $10 per business day the application is late. The current late fee applies to both renewal and new applications and so would the revised late fee.

According to the most recent information from MDARD, there are currently a total of 22,027 licenses or certificates issued bringing in $1,558,745 in revenue. MDARD projects that its revenue will increase by $1,514,277 in 2015, by $530,239 in 2016, and by $493,803 in 2017, for a total of new revenue over the three-year period of $2,528,319.

                                                                                           Legislative Analyst:   Josh Roesner

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.