HOUSE BILL No. 5597

 

November 12, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Appropriations.

 

     A bill to amend 2001 PA 267, entitled

 

"Manufacturing milk law of 2001,"

 

by amending section 110 (MCL 288.670), as amended by 2008 PA 147.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 110. (1) A person shall not do any of the following

 

without being licensed under this act or the grade A milk law of

 

2001:

 

     (a) Produce milk that is offered for sale.

 

     (b) Collect milk samples for regulatory purposes.

 

     (c) Operate a milk transportation company that owns or

 

operates a can milk truck.

 

     (d) Process, label, or sell milk or manufactured dairy

 

products, except that a person operating a retail food

 


establishment is exempt from licensure under this act if he or she

 

complies with section 111 and is licensed under the food law of

 

2000. This subdivision does not prevent the sale at wholesale or

 

retail at a retail food establishment licensed under the food law

 

of 2000 of milk or milk products that are packaged in final

 

consumer packages at a facility licensed under this act.

 

     (e) Wash milk tank trucks.

 

     (2) A person licensed under the grade A milk law of 2001 and

 

engaged in activities regulated under that act and activities

 

regulated under this act is exempt from licensure under this act.

 

     (3) A person licensed under the grade A milk law of 2001 or

 

this act shall comply with the requirements of this act, where

 

applicable, and is subject to the penalties set forth in this act,

 

where applicable.

 

     (4) The director may issue a temporary license or permit for

 

activities regulated under this act.

 

     (5) State agencies operating dairy facilities under a

 

memorandum of understanding with the department are not required to

 

be licensed or permitted, or to provide producer security under

 

this act, but are otherwise required to be in compliance with this

 

act.

 

     (6) An applicant for an initial manufacturing grade dairy farm

 

permit shall complete education on drug residue avoidance control

 

measures acceptable to the director before receiving the permit.

 

     (7) An applicant for an initial license as a dairy plant shall

 

apply to the department on a form supplied by the department and

 

provide a statement containing the following:

 


     (a) The dairy plant's correct legal name and any name by which

 

the dairy plant is doing business. If the dairy plant is a person

 

not an individual, the name of each officer and director, and

 

partner, member, or owner owning in excess of 35% of equity or

 

stock.

 

     (b) The location of the dairy plant to which the statement

 

pertains and the name of the responsible person who may be

 

contacted at that location.

 

     (c) The anticipated value of greatest milk receipts the dairy

 

plant expects to receive during a consecutive 30-day period within

 

the licensing period.

 

     (d) A list of producers, including names, mailing addresses,

 

and department producer permit number, with whom the dairy plant

 

intends to do business except that not later than 90 days after

 

becoming licensed for the first time, the dairy plant shall send an

 

updated list to the department.

 

     (e) The name of the financial institution through which milk

 

checks are to be issued to producers.

 

     (8) A dairy plant shall annually renew a license issued under

 

this act by applying to the department at least 30 days prior to

 

the expiration of the existing license. The anniversary date of a

 

license for a dairy plant that is providing a financial statement

 

as a security device shall be 130 days after the close of the

 

licensee's fiscal year. The dairy plant shall apply for renewal of

 

a license on a form supplied by the department and provide a

 

statement containing the following:

 

     (a) The dairy plant's correct legal name and any name by which

 


the dairy plant is doing business. If the dairy plant is a person

 

not an individual, the name of each officer and director, and

 

partner, member, or owner owning in excess of 35% of equity or

 

stock.

 

     (b) The location of the dairy plant to which the statement

 

pertains and the name of the responsible person who may be

 

contacted at that location.

 

     (c) The greater of either the value of greatest milk receipts

 

that the dairy plant received within a consecutive 30-day period

 

during its last license year or the greatest milk receipts that the

 

dairy plant is anticipated to receive during a consecutive 30-day

 

period within the licensing period.

 

     (d) A complete list of producers, including names, mailing

 

addresses, and department producers permit number, with whom the

 

dairy plant is doing business.

 

     (e) The name of the financial institution through which milk

 

checks are issued to producers.

 

     (9) Each dairy plant shall pay a $50.00 annual licensing or

 

permitting fee.

 

     (10) Each receiving station or transfer station shall be

 

licensed or permitted either as part of a dairy plant or as a

 

stand-alone facility. Each stand-alone facility will be licensed or

 

permitted at a rate of $50.00 per year. License renewal shall take

 

place on June 30 every year.

 

     (11) Each milk tank truck cleaning facility shall be licensed

 

or permitted under this act either as part of a dairy plant,

 

receiving station or transfer station, or as a stand-alone milk

 


tank truck cleaning facility, or under the grade A law of 2001. Any

 

milk tank truck cleaning facility that washes the milk contact

 

surfaces of milk tank trucks used to haul grade A milk shall be

 

licensed under the grade A law of 2001. Each stand-alone facility

 

will be licensed or permitted at a rate of $50.00 per year. License

 

renewal shall take place on June 30 every year.

 

     (12) Each single service containers and closures manufacturer

 

shall be licensed or permitted under this act either as part of a

 

dairy plant or as a stand-alone manufacturer. Each stand-alone

 

facility will be licensed at a rate of $50.00 per year. License

 

renewal shall take place on June 30 every year.

 

     (13) A person shall not pick up manufacturing grade milk in a

 

farm pickup milk tank from a farm bulk milk tank without a

 

hauler/sampler license issued by the department under the grade A

 

law of 2001. Each milk tank truck or can milk truck shall be

 

licensed or permitted under this act or as required under the grade

 

A milk law of 2001 at a rate of $10.00 per year. License or permit

 

renewal shall take place on June 30 every year.

 

     (14) Each dairy farm from which milk is sold or offered for

 

sale and which is required to be licensed under this section shall

 

pay a dairy inspection assessment fee of 1 cent per hundred pounds

 

of milk sold per year. The fee imposed in this subsection is due

 

June 30 of each year.

 

     (15) (14) The director may issue a temporary license or permit

 

if the director determines that issuance of the license or permit

 

will not be detrimental to the protection of the public health,

 

safety, or welfare or will not cause an imminent threat of

 


financial loss to producers.

 

     (16) (15) A political subdivision of the state shall not levy

 

special license fees or taxes on 1 or more of the persons or

 

businesses described in this section except for taxes or fees that

 

are generally levied on persons or businesses other than dairy

 

plants and dairy plant operators.

 

     (17) (16) The director shall examine the books, records, and

 

accounts of a dairy plant if the dairy plant has not responded to

 

requests from the director regarding a security device described in

 

sections 117, 118, and 119. All examinations of books, records, and

 

accounts required under this subsection shall be made within this

 

state.

 

     (18) (17) All applicants for a permit or license must complete

 

an application provided by the department and meet the minimum

 

requirements of this act or the grade A law of 2001, and rules

 

promulgated under this act.

 

     (19) (18) Any fees, assessments, civil or administrative

 

fines, and money from any other source collected by the department

 

under this act shall be deposited into the dairy and food safety

 

fund created in section 4117 of the food law of 2000, MCL 289.4117.

 

     (20) (19) The department may impose a late fee of $10.00 for a

 

renewal application for each business day the application is late.

 

The total late fee shall not exceed $100.00. The department shall

 

not issue or renew a license until any fees and fines have been

 

paid. A hearing is not required regarding the department’s refusal

 

to issue or renew a license under this subsection except as allowed

 

under the administrative procedures act of 1969, 1969 PA 306, MCL

 


24.201 to 24.328. The department may charge a convenience fee and

 

collect from the applicants any additional costs associated with

 

the method of fee payment for the license or permit fees described

 

in this section and section 110a, not to exceed the costs to the

 

department.