Committee hears divided testimony on bill to let Mackinac Island clarify authority over ferry fees

LANSING — The Michigan House Government Operations Committee heard more than two hours of testimony on Senate Bill 304 on Wednesday, as island residents, business owners and ferry representatives clashed over whether Mackinac Island should be allowed to place charter language on its local ballot clarifying that ‘‘all aspects of ferry service’’ — including ancillary fees and parking — are subject to city regulation.

Sen. Demuse, sponsor of SB304, told the panel the bill’s sole purpose is ‘‘to allow the city of Mackinac Island the opportunity to update their charter’’ and to put proposed language before the city’s voters. ‘‘That is all this bill does,’’ he said, adding the change would not give any government new powers to set prices beyond what already exists in state law.

Supporters described a recent consolidation of ferry operations that they say left the island effectively uncompetitive. Dennis Cawthorn, an uncompensated volunteer for the city, said he and other island residents have seen rapid price changes since the Hoffman family of companies acquired multiple ferry operators and docks in 2024. ‘‘One private company now owns all of the ferries and even more importantly, all of…