SYRUP & HONEY PRODUCERS; LICENSE S.B. 882:
ANALYSIS AS PASSED BY THE SENATE
Senate Bill 882 (as passed by the Senate)
Committee: Natural Resources and Agriculture
RATIONALE
Under the Food Law, cottage food refers to the production and sale of certain foods made in a home kitchen that do not require time or temperature controls for safety and so may be sold directly to consumers without licensure or inspection from the Michigan Department of Agriculture and Rural Development (MDARD). The annual gross sales of cottage food businesses cannot exceed $25,000. Currently, retail sellers of honey and maple syrup are also exempt from licensure and inspection if their gross sales remain under $15,001. Due to the similar nature of honey and syrup and other cottage foods, increasing the annual gross sale limit of honey and maple syrup producers to align with the cottage food sale limit has been suggested.
CONTENT
The bill would amend the Food Law to increase, from $15,001 to $25,000, the gross sales threshold at which a honey or maple syrup producer's retail outlet and processing facility would no longer be exempt from licensure under the Law.
Generally, the Law prohibits a person from operating a food establishment unless licensed by MDARD. Certain cottage food operations, including retail outlets and processing facilities for honey and maple syrup, among other sellers and establishments, are exempt from licensure.[1]
Specifically, the Law exempts from licensure retail outlets for the sale of prepacked honey or maple syrup produced in the State if the outlet is operated by the producer and the processing facility is licensed under the Law. Both retail outlets and processing facilities are exempt from licensure for producers with gross sales of $15,001 or less of honey or maple syrup. In such case, the honey and maple syrup must have labeling substantially similar to the label for cottage food products.
The bill would modify the provision above to specify that retail outlets and processing facilities would be exempt from licensure for producers with gross sales that did not exceed the gross sale limitation for cottage food products described in Section 4102(5) for honey and maple syrup.
(Section 4102(5) prescribes that the gross sales of cottage food products by a food operation must not exceed $25,000 annually. Gross sales must be computed on the basis of the amount of gross sales within a particular domestic residence and must not be computed on a per-person basis within that residence.)
ARGUMENTS
(Please note: The arguments contained in this analysis originate from sources outside the Senate Fiscal Agency. The Senate Fiscal Agency neither supports nor opposes legislation.)
Supporting Argument
Aligning the honey and syrup industry with the cottage food industry is critical to the ongoing success of small business beekeepers in the State. According to testimony before the Senate Committee on Natural Resources and Agriculture, beekeeping is primarily a hobby industry for many but can be moderately cost prohibitive; many beekeepers sell honey products as a side business to recover some of the costs to practice and maintain their hives. Generally, an individual looking to start beekeeping will need smokers, hive tools, protective gear, and for each colony of bees, around 32 frames and two boxes, among other specialized equipment for a bee colony.[2] Lots smaller than one acre are recommended to have no more than six colonies.[3] From 2010 to 2020 the average colony produced 57 pounds of honey annually.[4] Reportedly, due to the amount of honey produced and the cost of inflation, many beekeepers meet the $15,000 cap very easily through the sales of raw and local honey. Some beekeepers have excess honey that could be used to recover some beekeeping costs and to sustain their small business but are unable to sell the excess because of the sales limit. Like other cottage food producers, beekeepers purchase and maintain the tools to create their products, spend time preparing products, and market through farmers markets or other direct to customer sales methods, and the licensure threshold should be consistent between the two industries.
Legislative Analyst: Eleni Lionas
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Fiscal Analyst: Bruce R. Baker
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.
[1] "Cottage food products" means a food that is not potentially hazardous and includes jams, jellies, dried fruit, candy, cereal, granola, dry mixes, vinegar, dried herbs, and baked goods that do not require temperature control for safety.
[2] "How to Start Beekeeping", Beekeeping Made Simple. https://www.beekeepingmadesimple.com/blog/how-to-start-beekeeping. Retrieved 10-15-24.
[3] "Michigan Beekeeping Rules and Regulations", Michigan State University. https://www.canr.msu.edu/resources/starting_and_keeping_bees_in_michigan_rules_and_regulations. Retrieved 10-15-24.
[4] "Number of U.S. Honey Bee Colonies Rises as Honey Yield Per Colony Drops", United States Drug Administration https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=102065. Retrieved 10-15-2.
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.