Committee advances bills to let Liquor Control Commission suspend licenses for repeated dishonored payments and allow fees for bounced checks

Two related bills aimed at tightening payment enforcement in Michigan’s liquor supply chain were reported to the Senate floor by the Senate Committee on Regulatory Affairs.

Senate Bill 87, introduced by Senator Voyno, would amend the liquor control code to require the Liquor Control Commission (LCC) to suspend a retailer’s license if the retailer made at least six payments on different dates to a wholesaler that were dishonored by a financial institution within 12 consecutive months. “My bill, senate bill 87, would amend the liquor control code to require the commission to suspend a retailer's license if they have made at least 6 payments on different dates to a wholesaler that were dishonored by a financial institution within 12 consecutive months,” Voyno said.

Senate Bill 88, presented by Senator Hauck, would authorize assessment of a fee when a retailer’s payment is dishonored. “My bill just basically allows them to, assess a fee if they have a bounced check, basically,” Hauck said.

Senator Bellino questioned the numeric threshold in SB87, asking, “Did I read it and hear right 6 times for 12 months?” Voyno confirmed the text: “6 times over 12 consecutive months, yes.” Bellino described that threshold as “too many” based on his retail experience, where a single bounced payment had led to withholding deliveries until payment was made.

The committee clerk read stakeholder positions into the record: Michigan Beer and Wine Wholesalers Association (support for the package), Midwest Independent Retailers Association (neutral on SB87; oppose SB88 reported), and Michigan Liquor Control Commission (neutral). Committee members said the bills had been revised with input from stakeholders and the LCC; Voyno said the bills were introduced “at the request of the industry to ensure that participants in this highly regulated industry remain responsible members of the business community.”

The committee voted to report SB87 to the floor on a roll call that produced nine affirmative votes and no recorded dissent; the motion to report SB88, made by Vice Chair Hauck, also passed 9‑0. The committee did not record amendments during the hearing; the bills were advanced with the recommendation that they pass.

If enacted, SB87 would create an enforceable suspension trigger based on repeated dishonored payments as defined in the bill text; SB88 would allow wholesalers to recover a fee for dishonored payments. Both bills were described as industry‑requested changes to give the LCC and wholesalers additional enforcement and collection tools.