Michigan Senate Bill SB0566

Michigan 2025-2026 Regular Session

• Introduced: 9/18/25
• Refer: 9/18/25

Caption

Worker's compensation: other; certain filing fees and redemption fees; require to be established by rule. Amends secs. 625 & 835 of 1969 PA 317 (MCL 418.625 & 418.835).

Impact

The proposed amendments would involve the introduction of a filing fee related to notices, which would be collected to support administrative costs associated with workers' compensation management. This fee structure is intended to help maintain necessary services related to education, case management, and hearings. Additionally, the bill stipulates that the collected funds be allocated to a specific revolving fund that aids in the operational aspects of managing the workers' compensation system. This financial implication could influence the operational budget of state compensation systems and potentially affect resources allocated to various departments involved in workers' compensation cases.

Summary

Senate Bill 566 seeks to amend the Workers' Disability Compensation Act of 1969 specifically targeting Sections 625 and 835. This bill introduces new procedural requirements for insurers issuing workers' compensation policies in Michigan. The changes mandate that insurers file notices of policy issuance and termination with the state's director within a specified timeframe, enhancing the notification process associated with workers' compensation coverage. Moreover, it allows insurers to submit these notices electronically, removing certain previous payment requirements associated with electronic filing, which is expected to streamline the communication between insurers and regulatory bodies.

Contention

While the bill aims to improve efficiency in the handling of workers' compensation claims, there are concerns regarding the potential financial burden the filing fees may impose on smaller employers or insurers. Discussions may arise around how these fees could impact the accessibility of workers' compensation for both employers and employees, especially for those navigating the system after personal injuries. Additionally, the requirement for a worker's compensation magistrate's approval for lump-sum redemption agreements introduces a layer of judicial oversight, which some may view as either a necessary protection or an additional bureaucratic hurdle.