LANSING, MI — Legislation introduced this week would loosen the state’s craft brewery restrictions, allow more gas stations to sell beer and wine, and make several other changes to Michigan’s liquor control regulations.

The bill, introduced by Sen. Howard Walker, incorporates many of the recommendations made in a June report from the Michigan Office of Regulatory Reinvention. The proposals came from a 21-member committee comprised of business owners, chambers of commerce leaders, state regulators, trade groups and others.

The nearly 150-page bill impacts everything from the growing craft beer industry that boasts more than 100 breweries and brewpubs, to beer distributors that employ more than 4,700 people in Michigan. (See a shorter analysis of the bill here.)

Walker, a Traverse City Republican, said the changes will help grow Michigan’s economy, particularly in places like his district where the beer, wine and distillery industry is burgeoning.

“A lot of the regulations were burdensome on the operators who wanted to enter the business and enter it on a smaller scale, and I think in order to grow our economy in Michigan … you need to provide easier access and an easier way to deal with government oversight,” he said.

Existing law prevents a proprietor from owning both a microbrewery, which produces beer for off-premise sales, and a brewpub, which sells beer on premise. The bill would combine the two into a single small brewer’s license.

Under the bill, microbrewers, small wine makers and distilleries would be allowed to sell their products to wholesalers, to consumers through direct shipment, or at retail locations for consumption on or off the licensed premises.

It also would exempt microbrewers and small winemakers from the state’s franchise law if they comprise less than 3 percent of a wholesaler’s volume. That would allow the brewers to cancel or renegotiate their contracts with wholesalers as their business grows.

Though the changes have been hailed by state regulators as a smart move, several stakeholders raised concerns.

"There are proposals which threaten the licensed three-tier system which exists today as it relates to separation of manufacturers, distributors and retailers. Those provisions are what help bring about an orderly marketplace, help limit over promotions," said Mike Lashbrook, president of the Michigan Beer and Wine Wholesalers Association.

The Michigan Association of Chiefs of Police was among organizations to release a counter report, saying the state's recommendations would put public health and safety at risk.

MACP Executive Director Bob Stevenson’s biggest issue was the proposed elimination of the fingerprinting requirement for liquor license applicants, which he said could lead to criminals obtaining licenses. That proposal was not included in Walker’s bill, but Stevenson takes issue with other measures in the legislation.

He and others criticized the proposal to allow gas stations with merchandise inventory of $50,000 to be eligible for a liquor license. Current rules require at least $250,000 in merchandise excluding liquor and gasoline.

With local police departments stretched thin, it will be difficult to keep an eye on more licensed gas stations, he said.

“How will we monitor this? And the stakes are high, we’re literally talking lives,” he said. “It’s not like alcohol isn’t available on almost every corner as it is.”

The Association of Petroleum Industries of Michigan argues the current rules are unfair to gas stations, which rely on their convenience stores for much of their revenue.

Other changes would increase the number of resort liquor licenses and allow economic development liquor licenses in townships and villages.

The House in September nearly unanimously passed a bill expanding the areas for economic development liquor licenses, with supporters saying it would attract new investment and promote business growth in townships and villages. The bill didn't make it to the Senate floor.

The Michigan Licensed Beverage Association, which represents bar and tavern owners, is OK with economic development licenses as long as applicants exhaust all other options. The trade group is not a fan of more resort licenses, saying there are already many available in state escrow.

The association’s biggest priority, said Executive Director Scott Ellis, is the part of the bill that says licensees are in violation of law only if they “knowingly” allow illegal activity on their premise. The current rule doesn’t take the owners knowledge of such events into account.

“I’m retired law enforcement; it’s not hard for law enforcement to establish the knowledge,” said Ellis, a former Lansing police officer.

Walker said he's optimistic the bill will pass.

"I know that there’s opposition out there, but when you look at the whole picture, this is a good piece of legislation," he said.

Email Melissa Anders at manders@mlive.com. Follow her on Google+ and Twitter:@MelissaDAnders. Download the MLive app for iPhone and Android.