Legislative Analysis
Phone: (517) 373-8080
WORKERS' DISABILITY COMPENSATION AGENCY http://www.house.mi.gov/hfa
FILING FEES AUTHORIZATION
Analysis available at
Senate Bill 927 (proposed substitute H-1) http://www.legislature.mi.gov
Sponsor: Sen. Sarah Anthony
Committee: Appropriations
Complete to 12-9-24
SUMMARY:
Senate Bill 927 would provide the Workers' Disability Compensation Agency (WDCA)
with the statutory authority to establish fees via the administrative rules promulgation
process for notices of issuance, notices of termination, and notices of employer name or
address change that are filed by insurers with the WDCA. The bill would also provide the
WDCA with the statutory authority to establish a system for the collection of the filing
fees.
The WDCA does not currently assess any fees for these filings. The WDCA has received
more than 200,000 of these filings in each of the 10 previous fiscal years. Any fees
established through administrative rule would be subject to the administrative rules
promulgation process, and therefore subject to the oversight mechanism of the Joint
Committee on Administrative Rules.
MCL 418.625
FISCAL IMPACT:
The bill would provide the WDCA, which is housed within the Department of Labor and
Economic Opportunity, with a mechanism to create a stable funding source for its required
activities. Other funding sources utilized by the WCDA, namely the Workers'
Compensation Revolving Fund, have been subject to volatility and marked revenue
decreases, particularly due to declining numbers of workers' compensation redemptions
(settlements).
The amount of revenue that would be realized by the fees is currently indeterminate, as the
level would depend on established fee amounts, filing volumes, and other factors. For
reference, the WDCA indicated that an early proposal would be to establish fees at rates of
$25 for each paper form and $10 or $15 for each electronically filed transaction, with the
difference intended to incentivize greater use of electronic filings. However, any proposed
fee levels would also be subject to stakeholder input.
Costs would likely be incurred by the WDCA for implementing collection systems for any
established fees, though the level of these costs is also currently indeterminate. The WDCA
House Fiscal Agency Page 1 of 2
 indicated that a billing structure would likely be created with input from stakeholders to
offset the costs.
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations, and does not constitute an official statement of legislative intent.
House Fiscal Agency SB 927 Page 2 of 2


Statutes affected:
Substitute (H-1): 418.625
Senate Introduced Bill: 418.625
As Passed by the Senate: 418.625