(1) Except as provided in subsection (2) and section 17116, the department shall determine the term of initial or renewal licenses granted under this part.

  (2) Until the application processing fee for a license under this part is reduced to $75.00 under section 16326, the term of an initial license under part 171 is 1 year. This subsection does not limit the department’s authority under this section to establish a renewal cycle for licenses under this part regardless of the amount of the application fee under section 16326.