Article written by SBAM’s Advocacy team
As spring comes to a close, Michigan’s legislature is nearing its peak productivity as budget negotiations begin in earnest. The consensus among Lansing observers is that this summer will be relatively quiet in the state’s Capitol, as leaders in both the Republican-led House and Democrat-led senate have signaled desire to pass a budget by the end of June. This will allow legislators to return home and spend the summer campaigning for the November election, rather than spending prime door-knocking days in caucus meetings and in committee rooms.
Amid the typical deadlock of split government, budget season presents opportunities for proactive legislative action. SBAM’s Advocacy Team works every day to advance policy initiatives in Lansing that promote entrepreneurship and a healthy small business ecosystem, and last week we made meaningful advances on multiple fronts. Over the next month, as budget negotiations proceed, we will continue to promote pro-small business policies, including further advancement of the following.
Office of Small Business Growth – A Potential Change in Economic Development Philosophy
Last week, Senate Appropriations Committee Chair, Senator Sarah Anthony, introduced Senate Bills 1009 and 1010, which would create a permanent Office of Small Business Growth in the Michigan Economic Development Corporation. This office would shift the direction of the Michigan Strategic Fund to prioritize small business development.
These bills closely follow longstanding SBAM policy positions on economic development. We advocate for an economic development strategy that incorporates principles of economic gardening. We know that growth in small businesses creates a diverse state economy that is more dynamic, reliable, and recession-proof than an economy without strong small businesses. It only makes sense that the state’s primary economic development tool promotes growth for businesses that are already here.
The Office itself would be responsible for administering a grant program geared towards small businesses and organizations that support small businesses, providing assistance through loans, direct grants, investments, and providing technical assistance. The Office would also act as a “one-stop-shop” for small businesses within state government, helping employers navigate complex licensing and regulatory requirements and directing them to relevant resources and opportunities.
Senate Bill 1011 Provides a New Path for Association Health Plans
For years, one of the most persistent challenges small business owners have shared is the increasing cost of providing health coverage, voicing the tough decisions they are having to make to fit costly benefits into their budget. SBAM’s Board of Directors recently penned an op-ed stating as much, and it is clear that lawmakers should be considering the cost of healthcare as a top priority. Small businesses face a structural disadvantage, in that they are too small to negotiate leverage with carriers but too large to go without benefits. Michigan’s small group market has seen double-digit premium increases for two years, with similar increases expected for 2026.
Senate Bill 1011 was introduced last week by Senator Kevin Hertel, who is chair of the Senate Health Policy Committee, and offers a structural solution that SBAM has been advocating for since 2019. This bill creates a new framework in Michigan’s Insurance Code for Small Business Health Pools: state-regulated, multi-employer welfare arrangements sponsored by qualifying Michigan associations. Similar pools were allowed briefly under federal rule in 2019, called Association Health Plans, and this bill would utilize state authority under the Affordable Care Act to bring them back at the state-level.
These Association Health Plans would be available to small businesses with between 1 and 500 employees, including sole proprietors. Every plan would be required to cover all essential health benefits and meet all ACA-equivalent consumer protections and care standards. The bill also establishes a state-funded catastrophic reinsurance program that would cover 60% of high-cost claims between $75,000 and $250,000 per covered life, providing premium stabilization.
There is no “silver bullet” to bring down healthcare coverage, but lawmakers should be pursuing innovative solutions like SB 1011 to provide employers with more flexibility, and to make it easier for them to provide insurance benefits to their employees. We will continue to advocate for SB 1011 as it moves through the committee process.
Tri-Share Child Care Bill Passes Senate on Bipartisan Vote
Child care is one of the preeminent workforce issues small business owners face. When a parent cannot afford reliable child care, they cannot reliably show up for work. Across Michigan, the talent pipeline small business owners depend on is constrained in part because child care costs have become so difficult to manage for working families.
Senate Bill 310, sponsored by Senator Mallory McMorrow, takes an important step towards making the Tri-Share model a permanent feature of Michigan law. Tri-Share is a three-way cost-sharing arrangement that allows the cost of care to be split among the employer, employee, and State of Michigan. For small businesses, this creates an affordable path to offering child care as a benefit, which helps improve recruitment and reduces turnover.
SBAM helped create Michigan’s Tri-Share program and has advocated for its expansion every year in the state budget. SB 310 moves Tri-Share from a year-to-year appropriation pilot into permanent statute, creating a dedicated fund and codifying the program’s structure. This change would help bring certainty for businesses looking to utilize the program.
The bill passed the Senate on a bipartisan basis, 22-13, and has been referred to the House Committee on Families and Veterans. SBAM supported SB 310 and will continue to advocate for its passage through the House.
Click here for more News & Resources.