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Rep. Schmaltz, Guard group push direct-deposit pay for state activations
Summary
Rep. Schmaltz introduced HB5715 to require electronic funds transfer for Michigan National Guard members on state active duty. TJ Pierce of the National Guard Association of Michigan testified that paper-check payrolls have caused months-long delays and hundreds of hardship requests during recent disaster responses.
Representative Schmaltz introduced House Bill 5715 to require that members of the Michigan National Guard be paid by direct deposit when activated on state active duty.
The bill’s sponsor said the current payroll process requires a service member’s first paycheck from a state activation to be issued as a paper check before direct deposit can be set up, producing “unnecessary delays, administrative complications, and in some cases, lost or inaccurate payments.” Representative Schmaltz told the committee that timely pay is “essential for meeting everyday financial obligations for them and their families.”
TJ Pierce of the National Guard Association of Michigan testified in support of the bill, saying the state’s paper-based payroll system contributed to substantial delays during the March 2025 Operation Cold as Ice response. "Many soldiers and airmen did not receive their pay for their service for months after the mission was completed, some of them up to seven months after their duty has been performed," Pierce said, and added the force filed more than 500 financial-hardship requests after that response.
Pierce described operational consequences and offered comparative examples: he said Michigan used handwritten forms and “layers of unnecessary manual processing” while other states with automated systems — he cited Arkansas and Wisconsin — were able to pay service members faster.
Committee members asked about legal or policy constraints that require paper checks. A committee member noted an internal department policy and payroll-system status codes that currently result in paper checks; witness testimony indicated the department’s internal policy could be amended and that broader system changes would be required to fully automate state active-duty payments.
No formal action on HB5715 was recorded in the transcript. The bill drew bipartisan expressions of support from members who said the measure would address a practical, recurring hardship for service members called to state duty.
