I do understand the health laws; however, I do think it odd small dogs are banned from grocery stores (other than service dogs) after seeing many of the people that are there handling the produce. Sorry, my dog is cleaner than a large percentage of the people I see "allowed" into stores...probably without their vaccinations to boot!! lol
I never have a problem in my store though, but I am respectful of others and only take her in when I'm shopping quickly and I stay away from the meat and produce sections when I have them with me.
Once (in another type of store) I was told someone (another clerk) add allergies to dogs and I asked if that was the only reason I would have to take the dog out (that it would bother the person with allergies) and they said yes, so I said, oh, then no worries, she's hypoallergenic and went about my shopping. They just turned and left. I know, it was kinda the principle of the matter as someone that smelled to high heaven and was about as filthy as filthy gets was standing a few feet away.