A plan from state Rep. Greg Alexander that makes practical updates for residents who operate their own businesses by selling certain food products is headed to the governor after receiving final approval from the Michigan House and Senate.

The state’s Cottage Food Law allows people to sell products made in their kitchens or at their homes without obtaining a state food license if they are selling less than $25,000 in products per year. This only applies to foods with minimal risks to safety, meaning that the items are not potentially hazardous and do not need a controlled temperature. These foods include jams, jellies, candy, granola, baked goods and others, and they must still comply with labeling standards and other provisions both within state and federal law before being sold to the public.

Currently, state law requires in-person delivery for cottage food sales or a direct sale to customers at farmers markets or roadside stands. Alexander’s plan, House Bill 4122, allows sellers to ship products to meet online and mail orders or engage in third-party delivery. It also increases the revenue cap from the current $25,000 to $50,000. If the cottage food operation sells cottage food products at a price of $250 or more per unit, the annual cap would be $75,000. The legislation includes an annual Consumer Price Index adjustment after Oct. 1, 2026.

The plan also allows for more than one Cottage Food operation per residence. 

“Since its inception, this law has helped many entrepreneurs across the Thumb and throughout the state,” said Alexander, of Carsonville. “With these changes, we can create an even better environment for these types of startups by allowing people to get more products to market and providing more efficient ways to get those products to market. This will give consumers more options and provide families a boost with affordability. It’s a win-win for our state, and I’m eager to see it signed into law by the governor.”

Before being sent to the governor for review, HB 4122 received overwhelming bipartisan support in the House and unanimous support in the Senate.