img1WORKERS' COMP FILING FEES AUTHORIZATION        S.B. 566:

        SUMMARY OF DISCHARGED BILL

        

 

 

 

 

 

 

 

 

 

Senate Bill 566 (as discharged)

Sponsor: Senator Sarah Anthony

Committee: Appropriations (discharged)

 

 

 

CONTENT

 

The bill would amend Chapter 6 (Security and Compensation) and Chapter 8 (Procedure) of the Worker's Disability Compensation Act to provide the Workers' Disability Compensation Agency (WDCA) with the statutory authority to establish fees via the administrative rules promulgation process.

 

The bill would allow the WDCA to establish fees and a system for the collection of filing fees for notices of issuance, notices of termination, and notices of employer name or address change that are filed by insurers with the WDCA through the administrative rules promulgation process. The bill also would restrict the WDCA or a third party from requiring a payment for the use of Agency-approved electronic record layout and transaction standards under the Act.

 

Lastly, the bill would remove a $100 filing fee for each party in a proposed redemption agreement and would allow the WDCA to establish a filing fee through the administrative rules promulgation process.

 

MCL 418.625 & 418.835

        

 

FISCAL IMPACT

 

The bill would provide the WDCA, which is housed within the Department of Labor and Economic Opportunity, with the ability to establish and adjust filing fees to provide a stable funding source for its required activities. The revenue that would be generated by the fees is currently indeterminate, as the amount would depend on the fee amounts, filing volumes, and other factors. Any proposed fee amount also would be subject to stakeholder input. The current fee rate generates $2.2 million annually, which is around $1.3 million less than the total amount appropriated for the WDCA.

 

The WDCA likely would experience costs to implement a collection systems for any established fees; the total costs for such a system are currently unknown. The fee amounts likely would be established at a level to support the WDCA at the current appropriation level of $3.5 million and to encourage electronic filings.

 

Date Completed: 9-25-25        Fiscal Analyst: Cory Savino

floor\sb566        Bill Analysis @ www.senate.michigan.gov/sfa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.