Health: licensing; references to licenses for certain substance use disorder services programs in the overdose fatality review act; modify to include those exempt from licensure. Amends sec. 3 of 2023 PA 313 (MCL 330.3023). TIE BAR WITH: HB 5729'26

2025-2026 Regular Session Introduced by Bill Schuette and 2 co-sponsors

The bill expands Overdose Fatality Review Act to include entities exempt from licensure as substance use disorder treatment providers, broadening review inclusion.

referred to second reading

#health:controlledsubstances #health:licensing #health:substanceusedisorder #health:substanceusedisordertreatment

Summary of HB 5735 (Michigan, 2025-2026)

Purpose and intent

HB 5735 amends the Overdose Fatality Review Act (2023 PA 313) to update the definition of “substance use disorder treatment provider” by including entities that are licensed or exempt from licensure under Part 62 of the Public Health Code.

The bill ties to companion measures (notably HB 5729 and others) and enacts only if HB 5729 is enacted.

The overall aim is to ensure that overdose fatality review processes—and their associated data-sharing and analysis—can include and reference entities that operate without a traditional Part 62 license but are exempt from licensure.

Key provisions and changes

Amends Section 3 of the Overdose Fatality Review Act to expand the definition of “substance use disorder treatment provider” to cover:

An entity that is licensed or exempt from licensure to treat substance use disorders with medications approved by the FDA.

Specifically adds “exempt from licensure under Part 62” to the scope of entities that can be considered substance use disorder treatment providers for purposes of the act.

House Bill 5735 cross-references and aligns with the bill’s companion measures that would update related statutes and terminology to reflect licensure exemptions (HB 5728, HB 5730–5738).

Enacting clause notes the bill takes effect only if HB 5729 is enacted into law.

Who or what would be affected

Substance use disorder treatment providers that are:

Licensed under Part 62 of the Public Health Code, and
Exempt from licensure under Part 62 (the bill expands recognition of these exempt providers for overdose fatality review purposes).

Overdose fatality review teams and processes that rely on identifying and categorizing treatment providers as part of reviews and data analyses.

Institutions typically excluded from licensure requirements (e.g., certain hospitals, crisis stabilization units) are addressed through companion bills for broader conformity in other chapters of the Public Health Code.

Procedural and timeline aspects

Enactment is contingent on the passage of HB 5729; HB 5735’s changes take effect only if HB 5729 is enacted.

The bill is introduced March 18, 2026, and referred to the House Committee on Health Policy.

It includes rulemaking authority for the Department of Licensing and Regulatory Affairs (LARA) to issue standards that mirror the proposed licensure framework, covering:

Categories of services requiring a license,
Program governance, staffing, facilities, audits, quality control, and related procedures,
Physical plant, sanitation, safety, and ongoing evaluation requirements.

Fiscal impact (as analyzed with companion bill)

HB 5729 (the companion bill providing the licensure framework) indicates an indeterminate fiscal impact on the Department of Licensing and Regulatory Affairs.

Potential decrease in license fee revenue if entities currently holding licensure no longer need a Part 62 license because they are exempted, with the baseline license renewal fee noted at $500.

Companion bills (5728 and 5730–5738) are not anticipated to have direct state or local fiscal impacts.

Practical takeaway

If HB 5729 passes, Michigan’s overdose fatality review framework would explicitly recognize and incorporate entities that provide substance use disorder services but are exempt from licensure, potentially broadening the data and stakeholders involved in overdose reviews.

Regulatory standards would be harmonized through LARA rulemaking to accommodate both licensed and exempt providers, ensuring consistency in service categories, governance, staffing, facilities, and quality control.