Michigan lawmakers are considering a series of measures that mandate licenses for retailers selling nicotine or tobacco products, pitting public health and business groups against one another.

The Michigan Chamber of Commerce voiced concerns about several aspects of the measure, including a $1,500 fee for a three-year license.

Senate Bills 651, 652, 632 and 654, a series of measures dubbed “Protect MI Kids,” would also enhance the penalties for retailers that sell products to anyone under 21 years old and repeal penalties for minors who use, purchase or possess tobacco. It is similar to House Bills 6002, 6003, 6004 and 6005.

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Proponents point to Michigan as one of 10 states without such a requirement. However, critics say the measure adds to the regulatory burden of small businesses.

“Currently in Michigan, there are more violations of laws prohibiting the sale of tobacco to kids than any other state in the country,” Sen. Sam Singh, D-East Lansing, said in a release. “This is simply unacceptable.

“As an extreme outlier when it comes to tobacco regulation, it’s clear Michigan needs stronger enforcement and accountability measures, and that is exactly what this legislation intends to do,” Singh added. “By placing the onus on retailers to prevent tobacco use among youth by setting tobacco retail license regulations in place, we’re bringing Michigan in line with nearly every other state in the country.”

The Michigan Health & Hospital Association and the Keep MI Kids Tobacco Free Alliance are among the groups that are advocating for lawmakers to pass the measure. In written testimony to the committee, Keep MI Kids Tobacco Free said tobacco costs the state more than $5.3 billion in health care expenditures and more than $11.5 billion in lost productivity annually.

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“Reducing young peoples’ access to tobacco products will help reduce tobacco-related deaths, reduce healthcare costs and improve long-term health outcomes for Michiganders statewide,” Monique Stanton, president & CEO of the Michigan League for Public Policy, said in written testimony.

“…Despite long-term declines in the percentage of children using tobacco, use of tobacco products—including cigarettes, e-cigarettes, vaporizing devices and other tobacco products—among Michigan youth remains too high, especially among high school students,” Stanton added. “…These four bills are important parts of a vital package to strengthen Michigan’s laws to keep tobacco products out of the hands of our children.”

The Chamber of Commerce, however, voiced concerns about several aspects of the measure, including the impact a $1,500 fee for a three-year license would have a small, family owned businesses.

“The concern here is that the amount is a big financial ask for our smaller, family-owned businesses and even larger companies with multiple locations,” Leah Robinson, the chamber’s director of legislative affairs, said in written testimony. “Although some businesses may have the financial flexibility to file for a multi-year license, the financial burden of that license (if needed to apply for multiple years) is too high for many.”

Jackson resident Lucas Camacho said the measures could harm small businesses.

“While I appreciate the intent behind these bills to address youth tobacco and nicotine use, I believe they introduce measures that will ultimately harm small businesses and fail to effectively tackle the issue,” Camacho said in written testimony.

While “the intentions behind these bills may be commendable, I urge the committee to reconsider their approach,” Camacho added. “We need solutions that support small businesses, promote education, and empower communities rather than create unnecessary barriers and ineffective regulations.”

The measures are just the latest proposals aimed at cracking down on nicotine use among the Wolverine State’s youth.

In September 2019, Gov. Gretchen Whitmer ordered the Michigan Department of Health and Human Services to issue emergency rules to ban the sale of flavored nicotine vaping products in retail stores and online. However, state officials withdrew the proposed prohibition in October 2021.