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HB 5498

Public employees and officers: state; designated job positions for state agencies that issue state permits; require. Creates new act.

2025-2026 Regular Session Introduced by Matt Bierlein and 4 co-sponsors

HB 5498 would reorganize state permit issuance by assigning dedicated staff to industry-based subject areas to streamline and clarify the permitting process.

PASSED BY HOUSE WITH IMMEDIATE EFFECT
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Bill Summary · HB 5498

Summary of HB 5498 (Michigan, 2025-2026)

Purpose

HB 5498 would create a new act requiring state agencies that issue permits to reorganize permit issuance by designating dedicated staff to specific subject areas (based on industry) and to manage the issuance of permits within those areas. The intent appears to be to streamline and clarify the permitting process by creating subject-area governance of permits.

Key Provisions

  • Definitions

    • Agency: A Michigan state department.
    • Permit: Any agency permit, license, certificate, approval, registration, or similar form of permission required by law or agency rule.

  • Requirements for Agencies that Issue Permits

    • Permits must be separated into subject areas based on the industry the permits regulate.
    • For each subject area, the agency must designate employees to manage the issuance of permits within that subject area.
    • An employee designated to manage a subject area must be designated to only one subject area as their primary focus.
    • While designated to a primary subject area, the employee may assist others in issuing permits in other subject areas.

Who is Affected

  • State agencies that issue permits (as defined broadly to include licenses, certificates, approvals, registrations, etc.).
  • Specifically referenced departments in fiscal analysis include:
    • Department of Environment, Great Lakes, and Energy (EGLE)
    • Department of Natural Resources
    • Department of Licensing and Regulatory Affairs (LARA)
    • Department of Transportation
    • Department of Agriculture and Rural Development
    • Department of Labor and Economic Opportunity
  • The bill envisions creating or reshaping staffing needs (more permit/licensing staff) to align with the designated subject areas.

Procedural and Timeline Aspects

  • Status: Introduced February 5, 2026; referred to Committee on Economic Competitiveness. Action history shows subsequent committee activity and a later referral to Rules with substitute (H-1) as of April 30, 2026.
  • The bill describes a structural organizational change to how permits are issued but does not specify an implementation timeline or phased rollout within the text provided.
  • Fiscal impact is indeterminate but anticipated to increase ongoing staffing costs to the degree that agencies expand licensing/permitting staff to cover additional subject areas.

Potential Impacts and Considerations

  • Administrative Impact

    • Agencies would need to define “subject areas” by industry and map permits accordingly.
    • Staffing changes could require hiring or realigning personnel to ensure each subject area has dedicated management.
    • Cross-subject collaboration is allowed, as staff may assist in other subject areas, but primary designation is restricted.

  • Operational Implications

    • Could improve accountability and consistency in permit issuance through clearer ownership of subject areas.
    • May require new processes, training, and data-tracking systems to monitor permits by subject area.

  • Fiscal Considerations

    • Analysis indicates an indeterminate but likely higher cost for several departments due to expanded or reallocated permit/licensing staffing.
    • Costs depend on how agencies interpret “industry” and “subject area” and the resulting staffing requirements.

Notes

  • The accompanying Legislative Analysis notes that this is a proposed act, with nonpartisan fiscal analysis indicating potential administrative cost increases but no specific dollar figures provided at this stage.
  • The bill is currently in the committee process, with amendments (including a substitute) possible as it advances.

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

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