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HB 4122

Food: cottage food operation; certain requirements for cottage food operations and cottage food products; modify. Amends sec. 1105, 1111 & 4102 of 2000 PA 92 (MCL 289.1105 et seq.).

2025-2026 Regular Session Introduced by Greg Alexander and 31 co-sponsors

HB 4122 allows online/mail/third-party delivery sales of cottage foods to Michigan consumers with direct interaction, raises sales thresholds, and adds a voluntary MSU Product Cent

presented to the Governor 12/22/2025 01:42 PM
#food:cottagefoodoperation #food:other
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Bill Summary · HB 4122

Summary — HB 4122 (Food law amendments: cottage food operations)

Status: Referred to Committee on Regulatory Affairs (reported from Agriculture with amendment). Introduced: March 7, 2025. Sponsor: Rep. Gregory Alexander.

Purpose / intent

HB 4122 updates Michigan’s cottage food law to expand how cottage food products may be sold, raise the gross‑sales thresholds that qualify an operation as a cottage food operation, and establish a voluntary registration mechanism administered through the MSU Product Center. The bill aims to modernize sales channels (internet/mail/third‑party delivery) while maintaining consumer protections and limiting sales to Michigan consumers.

Key provisions

  • Allows sale of cottage food products by internet or mail order, or delivery via a third‑party delivery platform, only if:
    • The consumer has an opportunity to “directly interact” with the cottage food operation before the sale; and
    • The consumer is located in Michigan.
  • Defines “directly interact” to include a face‑to‑face meeting or a virtual meeting that provides two‑way audio and video communication (participants can see and hear each other).
  • Defines “third‑party delivery platform” as a business providing delivery services from cottage food operations or online ordering/delivery from food service establishments to consumers.
  • Raises gross sales thresholds:
    • Current $25,000 annual gross sales limit → $50,000.
    • For products sold at $250 or more per unit, the gross sales cap increases to $75,000.
    • Beginning Jan 1, 2026, MDARD may annually adjust the gross sales limit for inflation (Detroit CPI over prior three years), rounded to the nearest dollar; the adjustment factor cannot be less than $1.
  • Establishes a voluntary MSU Product Center registration:
    • MSU Product Center may issue a registration document with a unique ID and collect a one‑time fee up to $50.
    • MDARD may inspect the Center’s records upon request.
    • Information collected through this registration program is exempt from FOIA.
  • Labeling/posting requirements:
    • If registered with the MSU Product Center, a cottage food operation must list its name, phone number, and registration number on product labels.
    • If not registered, the operator must post business name, address, and phone number (current requirement).

Who is affected

  • Primary: Michigan cottage food operators (home‑based producers of certain low‑risk, non‑temperature‑controlled foods).
  • Secondary: MDARD (administration, enforcement, possible inspections), MSU Product Center (registration administration), third‑party delivery platforms, and Michigan consumers purchasing cottage foods.

Procedural / timeline notes

  • Reported from the House Agriculture Committee with an amendment (revised 4/22/25).
  • Committee report and House Fiscal Agency analyses prepared; HFA notes MDARD would incur additional program responsibilities and possible staffing needs, but fiscal costs are not yet estimated.
  • Supporters (testified or indicated support) include Michigan Farm Bureau, Michigan Farmers Market Association, multiple farmers markets and small food businesses; MSU Product Center testified neutrally.

Potential impacts / considerations

  • Expands market access (online/mail/third‑party delivery) for cottage food operators while restricting out‑of‑state sales (Michigan consumers only).
  • Raises income ceiling for remaining under cottage food rules, potentially enabling more small producers to operate without full commercial licensure.
  • Introduces a voluntary, fee‑based registration path with FOIA exemption that may simplify identification and traceability, but increases MDARD oversight responsibilities.

Compiled from official sources — confirm details with the bill’s official record.

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