Michigan Office of Administrative Hearings and Rules  
Administrative Rules Division (ARD)  
REQUEST FOR RULEMAKING (RFR)  
1. Department:  
Insurance and Financial Services  
2. Bureau:  
Financial Institutions  
3. Promulgation type:  
Full Process  
4. Title of proposed rule set:  
Debt Management  
5. Rule numbers or rule set range of numbers:  
R 451.1221 – R 451.1246  
6. Estimated time frame:  
6 months  
Name of person filling out RFR:  
Ryan Durkin  
Email of person filling out RFR:  
Phone number of person filling out RFR:  
517-284-8609  
Address of person filling out RFR:  
530 W Allegan St, 8th Floor, Lansing, MI 48933  
7. Describe the general purpose of these rules, including any problems the changes are intended  
to address.  
This existing rule set, R 451.1221 to R 451.1246, implements and enforces the Debt Management  
Act (“DMA”), MCL 451.411 to 451.437. The proposed rules would add clarity to firms regulated under  
the DMA and existing rules by: (1) requiring books and records to be kept current on a monthly basis;  
(2) updating references to a firm’s “manual” under R 451.1237; (3) clarifying requirements for the  
licensee’s budget analysis of the debtor; and (4) making other clarifying changes to the regulatory  
requirements under the DMA.  
8. Please cite the specific promulgation authority for the rules (i.e., department director,  
commission, board, etc.).  
These rules are promulgated under authority conferred on the director of the Department of Insurance  
and Financial Services (“DIFS”) by MCL 451.432 and 451.415(5).  
A. Please list all applicable statutory references (MCLs, Executive Orders, etc.).  
MCL 451.432; MCL 451.415(5).  
B. Are the rules mandated by any applicable constitutional or statutory provision? If so,  
please explain.  
No, the statutory authority for these rules is permissive.  
9. Please describe the extent to which the rules conflict with or duplicate similar rules,  
compliance requirements, or other standards adopted at the state, regional, or federal level.  
Licensees under the DMA are governed primarily by state law. These rules do not conflict with or  
duplicate similar regulations, compliance requirements or other standards adopted at the state,  
regional, or federal level.  
MCL 24.239  
RFR-Page 2  
10. Is the subject matter of the rules currently contained in any guideline, handbook, manual,  
instructional bulletin, form with instructions, or operational memoranda?  
DIFS has issued a bulletin regarding the DMA, 2015-16-CF, relating to the scope of the act and  
implementation of the counselor certification requirements during the transition period. DIFS also  
issued a memorandum to the industry regarding the elimination of the examination requirement that is  
/media/Project/Websites/difs/CF/Misc/DM_Act_Memo.pdf?rev=f33c8ca090f44f1d8bd32821e9a7a766  
&hash=8F8A31E14B61227A2D9D6622C052A2CC).  
/media/Project/Websites/difs/CF/Fee_Schedule/Debt_Management.pdf?rev=0673e628950148f6b6eb  
9ec187df221f&hash=8D5C1E10527A04508813F7703C0E1194.  
/media/Project/Websites/difs/Form/CF/DM/FIS_0506_ALL.pdf?rev=8c443edd8488454b905f2c6e5d9  
8a7e4&hash=C24A777F8C1EE107DA22E33F083B8EFE.  
Within that application are links to the surety bond requirements described in the rules; a form  
/media/Project/Websites/difs/Form/CF/DM/FIS_0508.pdf?rev=47994b4da9224595a021e90013e2805  
6.  
/media/Project/Websites/difs/CF/Renewal_Checklist/Debt_Management.pdf?rev=7255881b70f74921  
9c848af98791492d&hash=8F06D9E5F1B9026477A3220FCF73182B.  
The application for the submission of a counselor certification program for DIFS approval is available  
/media/Project/Websites/difs/Form/CF/DM/FIS_2303.pdf?rev=7d59949fb784481287e6655790b44fcb  
&hash=31EDB3A7E9C9C8BC9CDB8AD58BCD78CE.  
A list of approved debt management counselor certification providers is provided here:  
management-counselor-certification-providers.  
Responses to frequently asked questions regarding the DMA are provided here:  
11. Are the rules listed on the department’s annual regulatory plan as rules to be processed for  
the current year?  
The rules are listed on the annual regulatory plan as rules to be processed between July 1, 2023, and  
June 30, 2024.  
12. Will the proposed rules be promulgated under Section 44 of the administrative procedures act  
of 1969, 1969 PA 306, MCL 24.244, or under the full rulemaking process?  
Full Process  
13. Please describe the extent to which the rules exceed similar regulations, compliance  
requirements, or other standards adopted at the state, regional, or federal level.  
The rules do not exceed similar regulations, compliance requirements, or other standards adopted at  
the state, regional, or federal level. The rule amendments will clarify existing requirements in the  
rules.  
14. Do the rules incorporate the recommendations received from the public regarding any  
complaints or comments regarding the rules? If yes, please explain.  
No.  
MCL 24.239  
RFR-Page 3  
15. If amending an existing rule set, please provide the date of the last evaluation of the rules and  
the degree, if any, to which technology, economic conditions, or other factors have changed  
the regulatory activity covered by the rules since the last evaluation.  
The most recent amendments to the rules became effective on September 3, 2020. Technology,  
economic conditions, or other factors have not changed the regulatory activity covered by the rules  
since the most recent amendments.  
16. Are there any changes or developments since implementation that demonstrate there is no  
continued need for the rules, or any portion of the rules?  
There are no changes or developments since implementation that demonstrate that there is no  
continued need for the rules or any portion of the rules.  
17. Is there an applicable decision record (as defined in MCL 24.203(6) and required by MCL  
24.239(2))? If so, please attach the decision record.  
No  
Based on the information provided in this RFR, MOAHR concludes that there are sufficient policy and legal  
bases for approving the RFR. The RFR satisfies the requirements of the administrative procedures act of  
1969, 1969 PA 306, MCL 24.201 to 24.328, and Executive Reorganization Order No. 2019-1, MCL 324.99923.  
MCL 24.239  
;