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Committee advances bills to limit liquor-license lookback period, adopts substitute for retailer discount bill

May 08, 2025 | Regulatory Reform, House of Representative, Committees , Legislative, Michigan


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Committee advances bills to limit liquor-license lookback period, adopts substitute for retailer discount bill
Representative (sponsor of HB4114) told the House Regulatory Reform Committee the bill would constrain the Liquor Control Commission's review of past violations to the prior two years, except where the older violation resulted in a license revocation. "The bill allows the Liquor Control Commission to focus on recent and relevant violations those occurring within the past 2 years when making licensing decisions," the sponsor said, adding the goal is to "ensure small business owners aren't permanently penalized for old minor infractions once they've demonstrated good conduct."

The nut graf: supporters said the two-year look-back and a separate measure to adjust the retailer discount (the wholesale-to-retailer spread) aim to help small, independent liquor retailers that face thin margins and increasing operating costs. Martin Manna, introduced as president and CEO of the Chaldean American Chamber of Commerce, told the committee his members operate roughly 5,000 locations and that "it costs them about 24% just to really open their doors and operate." Owners who testified said the state's current retailer discount, about 17 percent, has not risen in decades and leaves small stores squeezed by credit-card fees, theft and competition from big-box retailers.

The committee adopted a technical substitute to House Bill 4114. Representative Nyar moved the substitute and the clerk recorded the roll call: the substitute was adopted (12 yeas, 0 nays, 2 passed). The committee then voted to report House Bill 4114 with recommendation as substitute H-1 (roll call recorded). House Bill 4113 was moved with a recommendation that it be referred to the Committee on Rules; the clerk recorded that referral.

Supporters pressed the point that the Liquor Control Commission currently can consider decades-old infractions when reviewing applications and transfers. Attorney Joe Shabal, who identified himself as counsel for the Chaldean Chamber, described the processing burden and argued the Commission often focuses on historic incidents even after fines were paid and corrective steps taken. Representative Thompson said she "does a lot of liquor licensing appeals" and described instances where applicants faced review of remote violations; the sponsor and witnesses answered that a two-year limit would allow the Commission to prioritize recent conduct while retaining authority where past violations led to revocation.

Committee members asked whether the change would allow retailers to raise consumer prices. Representative Regas asked, "Will this changing this, will that result in higher, cost increase to customers?" A supporter answered, "As their bill is currently written, it would not." Members also sought clarity about what offenses would fall inside the two-year window; the sponsor said the only exception to the limit would be license revocations and that otherwise the look back would be two years. Representative Wozniak asked specifically whether a sale-to-a-minor violation would be subject to the two-year rule; the sponsor responded, "yes, anything can be looked at within 2 years."

Independent owners described day-to-day economics. Bill Concha of Freeland Market, who said his family has operated grocery/liquor stores for decades, told the committee "it really costs at least 25% to open the door every morning" and described rising payroll, insurance, theft and inventory costs. Witnesses urged lawmakers to support both HB4113 (the discount/commission change) and HB4114 (the licensing look-back limit) to help neighborhood retailers compete.

Ending: The committee's adoption of the substitute and the recorded votes moved HB4114 to the next stage with a committee recommendation; HB4113 was referred to Rules. Committee members said they expect further review in subsequent sessions; supporters urged quick action to relieve what they described as long-standing pressure on small retailers.

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