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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 a ctivities 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 r egarding
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.
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(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 t he 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 t ransferred
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.
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(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