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SB 87

Liquor: liquor control commission; suspension of retailer license for dishonored payments under certain conditions; provide for. Amends 1998 PA 58 (MCL 436.1101 - 436.2303) by adding sec. 804.

2025-2026 Regular Session Introduced by Joe Bellino and 3 co-sponsors

Michigan bill authorizes suspension of liquor retailer licenses for dishonored payments owed to the state, strengthening regulatory enforcement of financial compliance.

referred to Committee on Regulatory Reform
#liquor:liquorcontrolcommission
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WeVote Research Nonpartisan
Bill Summary · SB 87

Legislative bill overview

SB 87 amends Michigan's liquor control law to authorize the Liquor and Cannabis Regulatory Agency to suspend a retailer's license if they fail to pay dishonored checks or electronic payment reversals owed to the state. The bill adds enforcement mechanisms to ensure retailers meet their financial obligations related to liquor sales.

Why is this important

Dishonored payments (bounced checks, failed transactions) represent lost revenue for the state and undermine the regulatory system's integrity. This bill gives regulators a concrete enforcement tool to compel payment compliance without requiring separate civil litigation, potentially recovering funds more efficiently while incentivizing retailers to maintain adequate funds for state-owed payments.

Potential points of contention

  • Fairness concerns: Suspension based on payment failure may disproportionately affect small retailers with cash flow issues versus larger chains; lacks apparent provisions for payment plans or hardship exceptions
  • Due process questions: The bill's text doesn't specify notice requirements, hearing procedures, or appeal processes before license suspension
  • Scope ambiguity: Unclear whether this applies to all dishonored payments to the state or only liquor tax-related ones, and what constitutes "under certain conditions"

Compiled from official sources — confirm details with the bill’s official record.

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