HOUSE BILL No. 4657


     April 24, 2001, Introduced by Reps. Anderson, Rich Brown, Neumann, Adamini, Basham, Plakas, Bogardus, Daniels, Murphy
and Zelenko and referred to the Committee on Regulatory Reform.


        A bill to require food service establishments to give notice

   of certain charges; and to prescribe penalties for a violation of

   this act.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 1.  As used in this act:

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           (a) "Automatic gratuity" means a sum that is required by a

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      food service establishment in addition to the charge for a meal,

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      drink, or other product and is given by the food service estab-

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      lishment to its staff in recognition of the service provided by

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      the staff to a customer or group of customers.

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           (b) "Food service establishment" means that term as defined

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      in section 1107 of the food law of 2000, 2000 PA 92,

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      MCL 289.1107.






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           (c) "Service charge" means a charge imposed by a food

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      service establishment that is not related to a specific service

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      or product.

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           Sec. 2.  (1) Subject to subsections (2) to (4), if a food

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      service establishment charges an automatic gratuity or imposes a

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      service charge, the food service establishment shall include on

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      each bill and on each menu or on a poster placed conspicuously in

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      the customer service area of the food service establishment a

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      notice of the automatic gratuity or service charge.

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           (2) A food service establishment shall include in the notice

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      required under subsection (1) at least the amount of the auto-

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      matic gratuity or service charge, expressed either as a fixed

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      dollar amount or as a percentage of the total bill.

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           (3) If a food service establishment charges an automatic

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      gratuity, the food service establishment shall ensure that all of

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      the automatic gratuity is distributed to appropriate staff.  If

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      the food service establishment imposes a service charge and if

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      only a portion of the service charge will be given to staff, the

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      food service establishment shall include in the notice required

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      under subsection (1) the percentage of the service charge that

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      will be retained by the food service establishment.

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           (4) A food service establishment shall print the notice

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      required under subsection (1) on each bill and on each menu or on

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      the poster required under subsection (1) in a size and format

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      that is conspicuous and easily readable.

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           Sec. 3.  (1) A food service establishment that violates

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      section 2 is subject to a civil fine of not more than $500.00.  A



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      food service establishment that violates section 2 a second or

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      subsequent time within a 2-year period is subject to a civil fine

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      of not more than $1,000.00.

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           (2) A violation of section 2 is enforceable as a state civil

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      infraction under chapter 88 of the revised judicature act of

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      1961, 1961 PA 236, MCL 600.8801 to 600.8835.












































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