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HB 4757

Liquor: other; discount for specially designated distributors and on-premises licensees; increase. Amends sec. 233 of 1998 PA 58 (MCL 436.1233).

2023-2024 Regular Session Introduced by Noah Arbit and 8 co-sponsors

The bill would raise the discount for specially designated distributors and on-premises licensees from 17% to 23% off the state's uniform liquor prices.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
#liquor:other
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Bill Summary · HB 4757

Summary — HB 4757 (Michigan Liquor Control Code amendment)

Title: Liquor: other; discount for specially designated distributors and on‑premises licensees; increase. (Amends sec. 233 of 1998 PA 58 — MCL 436.1233)
Sponsor (various stages): Rep. Samantha Steckloff (original) / Rep. Bradley Slagh (later filing)
Status: Referred to Committee on Government Operations (tie‑barred with HB 4758)
Introduced: March 13, 2025 (bill history begins June 2023; H‑2 substitute adopted and passed House 12/12/2024)

Purpose / Intent

HB 4757 seeks to increase the discount that specially designated distributors and on‑premises licensees (e.g., bars, restaurants) may deduct from the State’s uniform price for alcoholic liquor purchased from the state. The intent is to improve retail margins for smaller, independent licensees facing higher operating costs and competition from large retailers.

Key provisions

  • Amends MCL 436.1233 (Sec. 233 of the Michigan Liquor Control Code).
  • Changes the discount applicable to specially designated distributors and on‑premises licensees from 17% to 23% off the uniform state prices for alcoholic liquor purchases.
  • Retains other provisions of Sec. 233 (including provisions on qualified small distillers and pricing ranges for the Commission).
  • The bill is tie‑barred to HB 4758 — neither bill would take effect unless both are enacted.

Note: earlier introduced versions at different stages proposed different discount levels (an introduced draft referenced 35%); the H‑2 substitute reflected a 23% discount.

Who is affected

  • Direct beneficiaries: specially designated distributors and on‑premises licensees (restaurants, bars, other on‑premises sellers licensed under the Michigan Liquor Control Code).
  • State fiscal entities: Liquor Purchase Revolving Fund (LPRF) and the state general fund (LPRF transfers net income to the general fund).
  • Michigan Liquor Control Commission (MLCC) — administrative implications and coordination with HB 4758.

Fiscal impact

  • Using FY2022 data, the House Fiscal Agency estimates the current 17% discount equated to $323.8 million. Raising the discount to 23% would increase licensee discount payments by roughly $113.9 million annually — producing an approximate corresponding general fund revenue loss of $113.9 million (because net income from the LPRF that would otherwise transfer to the general fund would be reduced).
  • Earlier higher discount proposals (e.g., 35%) were estimated to produce much larger revenue losses (HFA estimated ~$341.3 million), potentially exceeding the LPRF net transfer.

Support and opposition

  • Supporters: small retailers and trade groups (e.g., Midwest Independent Retailers, Michigan Retailers Association, Small Business Association of Michigan) — cite competitive pressures and rising costs.
  • Opponents/concerns: MLCC (fiscal/revenue impacts), public‑health/ alcohol‑policy groups; some testified against limiting MLCC’s information use (related to HB 4758).

Procedural / timing notes

  • The bill has a complex history: originally introduced in 2023, H‑2 substitute was adopted and the House passed the substitute version in December 2024. The bills are tie‑barred to HB 4758 (which addresses MLCC consideration of violations older than two years). Current referral: Committee on Government Operations. Enactment requires both HB 4757 and HB 4758 to be passed and become law.

If you want, I can produce a short side‑by‑side comparison of current law vs. proposed text (showing exact statutory language changes) or a one‑page fiscal snapshot.

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

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