(1) To the extent provided in this act, the department shall have and exercise regulatory and police power over railroad companies in this state insofar as such power has not been preempted by federal law or regulation.

    (2) The department may promulgate and enforce rules relating to sanitation and adequate shelter as affecting the welfare and health of railroad employees, to the extent such rules are not preempted by federal law or regulation. Rules promulgated under this act shall be promulgated pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws.