Committee hears debate on bill allowing cleanup firms to bill insurers after crashes

The House Committee on Natural Resources and Tourism heard testimony Sept. 3 on House Bill 44-11, a bill sponsored by Representative Phil Green that would amend state littering law so qualified environmental responders and towing companies can seek payment directly from insurers for cleanup of “injurious substances” after vehicle crashes, rather than the property owner or local unit of government fronting those costs.

Representative Phil Green, sponsor of the bill, said the measure is intended as a “cleanup” to existing law to restore pre-2025 billing practice: “This bill does not deal with the cost to clean it up. This bill does not deal with the process post a claim is made. What this bill does is cleans up the littering law … and leave out the taxpayer out of this whole deal.” He said the change would allow cleanup firms to bill insurers directly as they did before April 1, 2025.

Why it matters: county and municipal officials told the committee that under current practice some local governments are being billed for cleanup costs and then have to pursue reimbursement from insurers, a process they described as time-consuming and costly. Jimmy Johnson, governmental affairs specialist for the Michigan Association of Counties, said a recent Gratiot County crash spilled about 80 gallons of diesel and shut M-46 for roughly nine hours; he told the committee the county was left managing reimbursement disputes and financial exposure.

Opponents — including insurance-industry witnesses — warned the change could incentivize fraud and predatory billing. Craig…