LANSING -- Michigan's nightlife could soon extend even further into the morning.

A House proposal would let restaurants and bars obtain a late-night tavern permit allowing the sale of alcoholic beverages until 4 a.m.

The proposed permit would cost $5,000 a year, said Andy Deloney, director of public affairs at the Michigan Restaurant Association.

"We support the concept," Deloney said, "but the fee is too much now.

"The higher the fee, the fewer people will do it," he said. "Hopefully, that number goes down."

Extended legal drinking hours is another suggestion to help Michigan's struggling economy, said Rep. Steve Tobocman, D-Detroit, who sponsored the bill. "It'll give the tourist industry a real shot in the arm."

The change would stimulate local business and help Michigan stay more competitive for tourists and conventioneers, he said.

Plus the industry has been asking for the option for a while, said co-sponsor Rep. Matthew Gillard, D-Alpena.

Deloney agreed. "The way to generate more revenue is by increasing economic activity. It gives operators another tool to increase sales," he said.

Gillard said counties would have the option not to allow any permits.

But extending the mandatory closing time from 2 a.m. to 4 a.m. could cause problems for law enforcement agencies, said Ludington Police Chief Mark Barnett.

There probably would be an increase in auto accidents, Barnett said, because drunken drivers tend to be on the road in the early morning after bars close.

"This just gives people two more hours to ingest alcohol," he said. "The time limits we have right now are sufficient. I don't see any need to extend them."

Tobocman said, "Drunk driving is always a concern."

But a lot of the people taking advantage of the late drinking hours would be conventioneers without cars, he said. And some people would use the extra two hours to sober up, he added.

A 2001 study by the National Highway Traffic Safety Administration found a direct correlation between extending alcohol hours and lowering the number of accidents attributed to drunken driving, Deloney said.

Now, many customers tend to leave at 2 a.m. creating a jump in traffic, he said. But later bar hours might distribute those drivers more evenly.

"This way, everyone isn't booted out the door at once," he said.

The bill is expected to generate millions of dollars per year from the fees alone, Tobocman said. He predicted about a 25 percent participation rate among licensed establishments.