Mackinac Island’s government is moving closer to having broad control over ferry pricing after Michigan lawmakers passed a measure aimed at expanding the island’s regulatory authority over ferry operations.
The Michigan House approved Senate Bill 304 on Thursday, just before the Memorial Day weekend travel rush, according to the Associated Press. The bill would give Mackinac Island authority over all aspects of ferry services to the tourist destination, including setting prices for ferry fares as well as parking and baggage handling.
The vote was 91-16, with all of the opposition coming from Republicans. After the House action, the legislation is set to go to Gov. Gretchen Whitmer for her consideration. Because the measure amends Mackinac Island’s charter, it would only take effect if a majority of island residents approve the charter change.
St. Ignace and Mackinaw City opposed the legislation, arguing that it would give the smaller island community power to control parking rates in their municipalities. Mackinaw City officials were also expected to vote Thursday night on a separate resolution that would impose a $200,000 fee on each ferry operator to recoup costs such as policing and road maintenance linked to tourism, an action that Hoffman Marine officials opposed, according to MLive.
State Sen. John Damoose, R-Harbor Springs, defended the House’s action in a social media statement. He wrote that it “was a tough fight” but that legislators sometimes have to take a “hard stance” and accept “a few arrows” to do “what is right.” Damoose also said he is not opposed to a privately owned ferry system, but that it “can only exist with oversight and regulation.”
The push for expanded authority comes amid a long-running dispute over who should control rates for the ferry service to the island. The issue intersects with a year-old federal court battle between Mackinac Island and the Florida company Hoffman Marine, which owns both ferry lines that carry tourists to the island—Shepler’s Inc. and Arnold Transit.
Hoffman Marine’s ownership has coincided with changes in prices, including reported increases over time from $36 to as high as $39. Mackinac Island has argued that Hoffman Marine’s arrangement amounts to a monopoly that should allow the island’s government to set the rates, while Hoffman Marine has sued, arguing that the city could not unilaterally declare a monopoly.
A federal appeals court permitted the island to control ferry ticket prices but not parking while the lawsuit continues. The ferry contract is set to expire next summer, and Hoffman Marine has threatened to shut down the ferries unless a new contract is negotiated.
In a statement, Hoffman Marine said it was “disappointed” by the lawmakers’ actions and that its ticket prices “reflect the realities of increased fuel, labor, maintenance, and infrastructure expenses,” while maintaining what it described as a “strong commitment to accessibility.” The company also said a regulatory approach that it characterized as limiting operational flexibility would “undermin[e] the very investments required to maintain safe, efficient, and high-quality service,” ultimately impacting residents and visitors.
As Mackinac Island weighs whether the charter amendment gains resident approval, the outcome could shape how the island regulates not just ticket fares but also parking and baggage handling—components that have been central to the ongoing court dispute with Hoffman Marine.