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The Senate today OK'd legislation that would allow certain bars to serve liquor past 2 a.m.

(MLive file photo)

LANSING, MI – A bill that would allow some bars to sell liquor until 4 a.m. moved out of the Senate Regulatory Reform Committee on Thursday.

Sponsoring Sen. Virgil Smith, D-Detroit, said today that he got the idea to expand 2 a.m. bar hours from businesses in his downtown district.

"Business owners down there were asking for it so that they could compete with Chicago, Atlanta, D.C., New York, Miami... at least when we get these conventions here and things of that nature, folks are clamoring to hang out," Smith said.

The bill would allow establishments that pay a $10,000 per year fee to allow drinking until 4 a.m. on weekends. Of that fee, 85 percent would go to local police departments, 10 percent to the Liquor Control Commission and 5 percent to the cities where the permits were located.

The bars applying for these licenses would have to be located in a central business district and have the approval of the local governing body, such as a city council. They would also have to meet certain security requirements to qualify for the license.

Mike Tobias of the group Michigan Alcohol Policy testified against the bill. He said it would be "terrible" for public health and safety.

"The 10,000 fee will not cover all the alcohol related costs that will increase," Tobias said.

The upper chamber initially rejected Senate Bill 247 in a 18-19 vote. However, the body voted to reconsider the bill and it passed 22-14 after Smith talked with several Republican senators on the floor.

Senate Majority Leader Randy Richardville, R-Monroe, supported the bill.

"I voted against smoking ban because I thought that people who owned those businesses ought to make those decisions, and I think the same thing here. If they want to stay open later, I think that's up to them and not up to some state law," Richardville said.

Smith worked with the Michigan Municipal League on the bill, and they support it. The Michigan Liquor Control Commission is neutral.

The bill now heads to the House for consideration.

Emily Lawler is a Capitol/Lansing business reporter for MLive. You can reach her at elawler@mlive.com, subscribe to her on Facebook or follow her on Twitter: @emilyjanelawler.