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HB 5499

Administrative procedure: other; cause of action for denial of a permit; provide for. Amends sec. 101 of 1969 PA 306 (MCL 24.301).

2025-2026 Regular Session Introduced by Matt Bierlein and 5 co-sponsors

Creates a new civil action allowing individuals whose state permit denial has exhausted internal remedies to sue the denying agency for monetary damages and attorney fees.

referred to second reading
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Bill Summary · HB 5499

Summary of House Bill 5499 (2025-2026) | Michigan

Bill at a Glance

  • Short title: Administrative procedure: other; cause of action for denial of a permit; provide for.
  • Jurisdiction: Michigan
  • Sponsor/Committee: Rep. Jay DeBoyer; Co-sponsors: Rep. Doug Wozniak, Rep. Matt Bierlein, Rep. Bill Schuette, Rep. Tim Kelly, Rep. Mike Harris. Referred to the Committee on Economic Competitiveness.
  • Effective date: Not specified in the bill text provided. (Introduced February 5, 2026; revised April 27, 2026 per analysis note.)

Purpose and Intent

HB 5499 would amend the Administrative Procedures Act of 1969 (PA 306) to create a new civil remedy for individuals who are denied a state-permit by a state agency. After an individual exhausts all available administrative remedies within the agency, they could file a civil action against the denying agency seeking monetary damages and reasonable attorney fees if the permit denial is upheld.

Key Provisions

Section 101 (amendment to MCL 24.301)

  1. Direct judicial review after administrative exhaustion (general rule):

    • If a person is aggrieved by a final decision or order in a contested case, and has exhausted all agency remedies, the final decision/order is subject to direct review by the courts as provided by law.
    • Exhaustion does not require filing a motion for rehearing or reconsideration unless required by agency rules. Preliminary or intermediate agency actions generally aren’t reviewable, but courts may grant leave to review such actions if review of the final decision would not provide an adequate remedy.

  2. New civil remedy for permit denial:

    • When a person is denied a state permit and has exhausted all internal remedies, the person may bring an action against the denying agency for monetary damages and reasonable attorney fees.

Who Would Be Affected

  • Individuals and entities denied a state permit by a Michigan state agency who have exhausted all internal administrative remedies.
  • State agencies that issue permits and would be defendants in civil actions seeking damages and attorney fees.

Potential Impact

  • Legal/Procedural: Creates a new avenue for civil redress against state agencies for permit denials, post-administrative exhaustion. Could lead to an increase in court filings and associated administrative workloads for both courts and agency counsel.
  • Financial: If successful, plaintiffs could recover monetary damages and attorney fees. The bill does not specify caps, standards of liability, or damages methodology in the summary provided.
  • Fiscal Considerations: The analysis notes an indeterminate fiscal impact on local court funding units due to potential caseload growth and administrative work, with costs depending on the extent of increases.

Timeline and Process Considerations

  • Exhaustion prerequisite: Plaintiffs must have exhausted all administrative remedies within the agency before pursuing court action.
  • Judicial review pathway: The act maintains a path to direct judicial review after exhaustion for final agency decisions or orders, aligning with existing administrative procedures, but adds the new monetary remedy for permit denials.
  • Rehearing/Reconsideration: Filing for rehearing or reconsideration remains subject to agency rules; this is unchanged except for the new potential civil action post-exhaustion.

Supporting/Analysis

  • Supporting documents: Legislative analysis notes the bill would allow civil actions for monetary damages and attorney fees against agencies that deny state permits after exhaustion.
  • Fiscal note: Indicates indeterminate impact on local court funding units due to potential increases in caseloads and administrative work.

If you’d like, I can compare this bill to existing Michigan law on administrative procedures and permit denials, or draft a plain-language brief for non-legal audiences.

Compiled from official sources — confirm details with the bill’s official record.

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