Michigan House Bill HB4663

Michigan 2025-2026 Regular Session

• Introduced: 6/17/25
• Refer: 6/17/25
• Report Pass: 9/18/25
• Engrossed: 10/29/25
• Refer: 10/30/25

Caption

Liquor: licenses; certain donations to nonprofits; allow. Amends 1998 PA 58 (MCL 436.1101 - 436.2303) by adding sec. 1016.

Summary

HB4663 amends the Michigan Liquor Control Code to allow a liquor licensee to donate a portion of the profits generated from its license to a nonprofit organization that is exempt under section 501(c) of the Internal Revenue Code. The bill creates a narrow exception to existing restrictions in section 609(1) and related administrative rules, but only if the licensee first records the profits on its financial records before making the donation. The licensee must also provide its profit information to the Liquor Control Commission upon request. The bill also places a limitation on how the recipient nonprofit may use the donated funds if it has been issued a special license. In that case, the organization may not use the donation to pay for any portion of the event for which the special license was issued. In practical terms, the bill is aimed at allowing certain charitable or nonprofit fundraising arrangements while preserving oversight and preventing the donation from being used to subsidize the licensed event itself.

Impact

The bill would amend the Michigan Liquor Control Code of 1998 by adding a new section 1016, creating a statutory exception for donations of profits tied to a liquor license. It affects liquor licensees, nonprofit organizations with 501(c) status, and the Michigan Liquor Control Commission by authorizing a new type of donation arrangement and requiring recordkeeping and potential reporting. It also limits the use of donated funds when the recipient nonprofit holds a special license for an event, reinforcing the separation between the donation and event expenses.

Sentiment

The available voting history suggests generally favorable sentiment toward the bill. It was reported from committee unanimously on a 14-0 vote and later passed the House on third reading by a substantial margin, 85-21, with immediate effect. That pattern indicates broad support, though not complete unanimity, for allowing these nonprofit-related donations under defined conditions.

Contention

The main point of contention appears to be whether liquor license profits should be allowed to flow to nonprofits at all, and how tightly that practice should be regulated. Supporters likely viewed the bill as a practical way to facilitate charitable fundraising and nonprofit events, while opponents may have been concerned about circumvention of existing liquor-control restrictions, transparency, or the potential for donations to be used indirectly to finance licensed events. The bill addresses those concerns by requiring financial recordkeeping, commission access to profit information, and a prohibition on using donated funds to pay event costs when a special license is involved.