SDM LICENSES & GAS STATIONS: ELIMINATE
INVENTORY REQUIREMENT IN CERTAIN AREAS
House Bill 4074
Sponsor: Rep. Scott Dianda
Committee: Regulatory Reform
Complete to 4-21-15
SUMMARY:
Under the Michigan Liquor Control Code, there are a number of exceptions to the general prohibition against holding a specially designated merchant (SDM) license while selling motor fuel at the same location. House Bill 4074 modifies one of those exceptions. An SDM license allows for the sale of beer and wine for off-premises consumption (such as in grocery stores and convenience stores).
The bill would eliminate, in certain low-density geographic areas of the state, the requirement that licensees and applicants located in smaller communities maintain at least $10,000 in qualified inventory in order to hold an SDM license while owning or operating motor vehicle fuel pumps on or adjacent to the premises.
Currently, under Section 541 of the code, the Liquor Control Commission cannot prohibit SDM licensees and applicants from owning or operating motor vehicle fuel pumps on, or adjacent to, the licensed premises if both of the following conditions are met:
o The license holder or applicant is (1) located in a city, incorporated village, or township with a population of 3,500 or less within a county with a population of 31,000 or more, OR (2) is located in a city, incorporated village, or township with a population of 4,000 or less within in a county with a population under 31,000.
o The applicant or licensee maintains a minimum inventory on the premises of at least $10,000, at cost, of those goods and services customarily marketed by approved types of businesses. Alcoholic liquor and motor vehicle fuel are not counted toward this total.
House Bill 4074 would eliminate the inventory requirement for licensees or applicants who are located in a township with a population density of less than 4 people per square mile within a county with a population density of less than 11 people per square mile.
HB 4074 would have a nominal fiscal impact on the Liquor Control Commission (LCC) to the extent that the LCC would process a likely small number of additional SDM licenses and collected the annual fee associated with the licenses.
Legislative Analyst: Josh Roesner
Fiscal Analyst: Paul Holland
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.