House Committee Considers Dianda Bill Benefitting Small Businesses

Bill would pro-rate the cost of new liquor licenses
Wednesday, October 11, 2017

LANSING — The House Regulatory Reform Committee held a hearing on state Rep. Scott Dianda’s (D-Calumet)  House Bill 4507 to pro-rate the cost of a new liquor license so businesses are not paying the license fee twice in one year.

“I am pleased that the committee gave a hearing to my bill, House Bill 4507 to pro-rate the cost of a new liquor license that will be effective for less than nine months. This is common-sense legislation aimed at helping new liquor licensees set up shop in the state,” Dianda said. “By doing this we can prevent a business from having to pay the full liquor license fee twice during its critically important first year in operation, as can happen now.”

Currently, liquor license fees are renewed by April 30 each year. When an applicant applies for a new liquor license they must also submit a full license fee with their application. If the applicant is then approved and receives their license close to the April 30 renewal deadline, they still must renew the license by April 30 of that year, resulting in them paying the full license fee twice in one year.

HB 4507 would pro-rate these fees on a quarterly basis based on the approval date of the application. If the application is for a license that will be effective for less than 9 months, the fee would be reduced on a pro-rated basis and paid after the application is approved and on issuance of the license. A transfer license fee would also have to be paid on issuance of the license.

“As a former small business owner myself, I am glad to sponsor this legislation to help out our local businesses, and I look forward to working with my colleagues to win approval of my bill,” said Dianda.