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Michigan Legislature· HB 4595PA 39 of 2025

Liquor: licenses; issuance of specially designated merchant license or specially designated distributor license; allow for certain locations, the official text

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Act
No. 39

Public
Acts of 2025

Approved
by the Governor

December
23, 2025

Filed
with the Secretary of State

December
23, 2025

EFFECTIVE
DATE:  Sine Die

(91st day after final adjournment of the 2025 Regular Session)

state of michigan

103rd Legislature

Regular session of 2025

Introduced by Reps. Linting, Breen, Thompson, Schmaltz,
Wozniak and Aragona

ENROLLED HOUSE BILL No. 4595

AN ACT to amend 1998 PA 58,
entitled “An act to create a commission for the control of the alcoholic
beverage traffic within this state, and to prescribe its powers, duties, and
limitations; to provide for powers and duties for certain state departments and
agencies; to impose certain taxes for certain purposes; to provide for the
control of the alcoholic liquor traffic within this state and to provide for
the power to establish state liquor stores; to prohibit the use of certain
devices for the dispensing of alcoholic vapor; to provide for the care and
treatment of alcoholics; to provide for the incorporation of farmer cooperative
wineries and the granting of certain rights and privileges to those
cooperatives; to provide for the licensing and taxation of activities regulated
under this act and the disposition of the money received under this act; to
prescribe liability for retail licensees under certain circumstances and to
require security for that liability; to provide procedures, defenses, and
remedies regarding violations of this act; to provide for the enforcement and
to prescribe penalties for violations of this act; to provide for allocation of
certain funds for certain purposes; to provide for the confiscation and
disposition of property seized under this act; to provide referenda under
certain circumstances; and to repeal acts and parts of acts,” by amending
section 533 (MCL 436.1533), as amended by 2020 PA 308.

The People of the State of
Michigan enact:

Sec.
533. (1) Subject to subsection (12), the commission shall not issue a new
specially designated merchant license or transfer an existing specially
designated merchant license unless the applicant is an approved type of
business. An applicant is not an approved type of business unless the applicant
meets 1 or more of the following conditions:

(a) The applicant holds and maintains a retail food
establishment license issued under the food law, 2000 PA 92, MCL
289.1101 to 289.8111. As used in this subdivision, “retail food establishment”
means that term as defined in section 1111 of the food law, 2000 PA 92, MCL
289.1111.

(b) The applicant holds and maintains an extended retail food
establishment license issued under the food law, 2000 PA 92, MCL 289.1101 to
289.8111. As used in this subdivision, “extended retail food establishment”
means that term as defined in section 1107 of the food law, 2000 PA 92, MCL
289.1107.

(c) The applicant holds or the commission approves the
issuance of a specially designated distributor license to the applicant.

(d) The applicant holds or the commission approves the
issuance of a class C license to the applicant.

(e) The applicant holds or the commission approves the
issuance of a class A hotel license to the applicant.

(f) The applicant holds or the commission approves the
issuance of a class B hotel license to the applicant.

(g) The applicant holds or the commission approves the
issuance of a club license to the applicant.

(h) The applicant holds or the commission approves the
issuance of a tavern license to the applicant.

(i) The applicant holds or the commission approves the
issuance of a class G-1 license to the applicant.

(j) The applicant holds or the commission approves the
issuance of a class G-2 license to the applicant.

(2) A specially designated distributor may apply for a
license as a specially designated merchant.

(3) A specially designated distributor license issued under
subsection (4) or section 531(5) may be held in conjunction with any of the
following licenses:

(a) A specially designated merchant license.

(b) Subject to subsection (13), a class B hotel license.

(c) Subject to subsection (13), a class C license.

(d) Subject to subsection (13), a combination of licenses in
subdivisions (a) and (b) or (a) and (c).

(4) In cities, incorporated villages, or townships, the
commission shall issue only 1 specially designated distributor license for each
3,000 of population, or fraction of 3,000. The commission may waive the quota
requirement under this subsection if there is no existing specially designated
distributor licensee within 2 miles of the applicant, measured along the
nearest traffic route.

(5) Except as otherwise provided in this section, in cities,
incorporated villages, or townships, the commission shall issue only 1
specially designated merchant license for each 1,000 of population, or fraction
of 1,000. The quota under this subsection does not apply to any of the
following:

(a) An applicant for a specially designated merchant license
that is an applicant for or the holder of a license listed in subsection (1)(d)
to (j).

(b) An applicant for or the holder of a specially designated
merchant license whose licensed establishment meets 1 or more of the following
conditions:

(i) Meets both of the following conditions:

(A) The licensed establishment is at least 20,000 square
feet.

(B) The licensed establishment’s gross receipts derived from
the sale of food are at least 20% of the total gross receipts.

(ii) The licensed establishment is also a
pharmacy as that term is defined in section 17707 of the public health code,
1978 PA 368, MCL 333.17707.

(c) A secondary location permit issued to a specially
designated merchant under section 541.

(d) A specially designated merchant license issued under
subsection (7).

(e) A specially designated merchant license issued to a
marina under section 539.

(6) The commission may waive the quota under subsection (5)
if there is no existing specially designated merchant within 2 miles of the
applicant, measured along the nearest traffic route.

(7) The commission shall waive the quota under subsection (5)
if both of the following apply:

(a) The applicant applies for the specially designated
merchant license within 60 days after January 4, 2017.

(b) The applicant is a retail dealer that holds a license
issued under section 6(1) of the motor fuels quality act, 1984 PA 44, MCL
290.646. The applicant shall include a copy of the license described in this
subdivision with the applicant’s application under this subsection. As used in
this subdivision, “retail dealer” means that term as defined in section 2 of
the motor fuels quality act, 1984 PA 44, MCL 290.642.

(8) A specially designated merchant license issued under this
section may be transferred to an applicant whose proposed operation is located
within any local governmental unit in a county in which the specially
designated merchant license was located. If the local governmental unit within
which the former licensee’s premises were located spans more than 1 county, a
specially designated merchant license may be transferred to an applicant whose
proposed operation is located within any local governmental unit in either
county. If a specially designated merchant license is transferred to a local
governmental unit other than that local governmental unit within which the
specially designated merchant license was originally issued, the commission
shall count that transferred specially designated merchant license against the
local governmental unit originally issuing the specially designated merchant
license.

(9) Except as otherwise provided in subsection (10), the
quota under subsection (5) does not bar the right of an existing specially
designated merchant to renew the specially designated merchant license or
transfer the specially designated merchant license. This subsection applies to
a specially designated merchant license issued or renewed before, on, or after
January 4, 2017.

(10) A specially designated merchant license issued after
January 4, 2017 to a person described in subsection (5)(a) or (b) or to a
specially designated merchant license issued under subsection (6) may not be
transferred to another location.

(11) An applicant for or the holder of a specially designated
merchant license that owns or operates a motor vehicle fuel pump on or adjacent
to the licensed premises is not required to meet the conditions under section
541 as that section existed before January 4, 2017.

(12) For a marina that maintains motor vehicle fuel pumps on
or adjacent to the licensed premises, or maintains a financial interest in any
motor vehicle fuel pumps, the commission may only issue a special designated
merchant license to the marina under section 539.

(13) License fees for a specially designated distributor
license held in conjunction with a class B hotel license or a class C license
as described in subsection (3) must be calculated under section 525(1)(k) based
on the total retail value of merchandise purchased from the commission under
the specially designated distributor license during the previous calendar year
plus the total retail value of the merchandise purchased from the commission
under either the class B hotel license or the class C license.

(14) Subject to the quota requirements in subsection (4) or
(5), the commission may issue a specially designated merchant license or
specially designated distributor license, or both, to a private entity that
leases or subleases the licensed premises for the operation of a grocery store
located on land owned by Schoolcraft College.

(15) For purposes of this section, population is determined
by the latest federal decennial census, by a special census under section 6 of
the home rule city act, 1909 PA 279, MCL 117.6, or section 7 of the Glenn Steil
state revenue sharing act of 1971, 1971 PA 140, MCL 141.907, or by the latest
census and corrections published by the United States Department of Commerce,
Bureau of the Census, whichever is later.

Enacting
section 1. This amendatory act does not take effect unless House Bill No. 4282
of the 103rd Legislature is enacted into law.

Clerk of the House of
Representatives

Secretary of the Senate

Approved___________________________________________

____________________________________________________

Governor
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