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Bill

HB 6232

Taxation: administration; disclosure of insurance-relevant information to the department of insurance and financial services; allow. Amends sec. 28 of 1941 PA 122 (MCL 205.28).

2023-2024 Regular Session Introduced by Brenda Carter and 6 co-sponsors

Michigan bill authorizes sharing of tax administration data between state Treasury and Insurance/Financial Services departments to support regulatory oversight and fraud detection.

bill electronically reproduced 12/04/2024
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Bill Summary · HB 6232

Legislative bill overview

HB 6232 amends Michigan tax administration law to allow the Department of Treasury to share insurance-relevant information with the Department of Insurance and Financial Services. This creates a data-sharing mechanism between two state agencies that currently have restricted communication regarding tax records and insurance oversight matters.

Why is this important

Insurance regulation and tax administration often involve overlapping information about businesses and individuals. Enabling information sharing could improve fraud detection, ensure regulatory compliance, and prevent entities from exploiting gaps between the two agencies. However, it also affects privacy protections that typically shield tax records from disclosure.

Potential points of contention

  • Privacy concerns: Tax records are traditionally protected information; expanding disclosure to other agencies may set a precedent for further erosion of taxpayer privacy rights
  • Scope ambiguity: The bill language doesn't specify what "insurance-relevant information" includes—this could be interpreted broadly or narrowly depending on implementation
  • Reciprocal access: Unclear whether the information sharing is one-way (Treasury to Insurance) or mutual, which affects oversight balance and potential conflicts

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

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