January 14, 2009, Introduced by Senator SANBORN and referred to the Committee on Economic Development and Regulatory Reform.
A bill to create a small business ombudsman's office and a
small business compliance advisory panel; and to provide for
certain powers and duties of certain state officers and agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Office" means the office of the small business ombudsman.
(b) "Ombudsman" means the small business ombudsman.
(c) "Small business" means a business that is independently
owned and operated and that is not dominant in its field of
operation as that term is used in 13 CFR 121.102 and is a
stationary source that meets all of the following requirements:
(i) Is owned or operated by a person that employs 100 or fewer
individuals.
(ii) Is a small business concern as defined in 15 USC 632 and
13 CFR 121.201.
Sec. 3. (1) The office of the small business ombudsman is
created as an autonomous entity in the department of management and
budget. The office shall be an independent, impartial state office
empowered to investigate and review the actions of regulatory
agencies of this state. The office shall monitor and ensure
compliance with relevant laws and policies and recommend
appropriate changes in policy, procedure, and legislation.
(2) The principal executive officer of the office is the small
business ombudsman, who shall be appointed with the advice and
consent of the senate.
(3) The individual appointed ombudsman shall be qualified by
training and experience to perform the duties and exercise the
powers of the small business ombudsman and the office as provided
in this act.
(4) The governor may remove the ombudsman from office for
cause, including, but not limited to, incompetence, official
misconduct, habitual or willful neglect of duty, or other
misfeasance or malfeasance in connection with the operation of the
office of the small business ombudsman. The governor shall report
the reason for the removal to the legislature.
(5) The ombudsman shall not be actively involved in political
party activities or publicly endorse, solicit funds for, or make
contributions to political parties or candidates for elective
office. The ombudsman shall not engage in any other occupation,
business, or profession likely to detract from the full-time
performance of his or her duties as ombudsman or to result in a
conflict of interest or an appearance of impropriety or partiality.
Sec. 5. (1) The office of the small business ombudsman shall
receive, investigate, and resolve complaints and disputes from
small businesses against departments and agencies of this state.
Any individual may submit a complaint to the office. The office has
the sole discretion and authority to determine if a complaint falls
within the powers and duties of the office to investigate. The
office may initiate an investigation without receiving a complaint.
Complainants are entitled to receive the recommendations of the
ombudsman and the department or agency's response to the
recommendations of the ombudsman consistent with state and federal
law.
(2) The office may coordinate or do all of the following:
(a) Conduct independent evaluations of all activities
conducted under section 7.
(b) Review and provide comments and recommendations to the
federal government and state departments and agencies regarding the
development and implementation of regulatory requirements that
impact small businesses.
(c) Facilitate and promote the participation of small
businesses in the development of rules that impact small
businesses.
(d) Assist in providing reports to the governor and
legislature and the public regarding the applicability of state
laws and regulations to small business.
(e) Aid in the dissemination of information to small
businesses and other interested parties.
(f) Participate in or sponsor meetings and conferences with
state and local regulatory officials, industry groups, and small
business representatives.
(g) Periodically review the work and services provided by the
program with trade associations and representatives of small
business.
(h) Refer small businesses to the appropriate specialist in
the program where they may obtain information and assistance on
affordable alternative technologies, process changes, and products
and operational methods.
(i) Arrange for and assist in the preparation of guideline
documents by the program and ensure that the language is readily
understandable by laypersons.
(j) Work with trade associations and small businesses to bring
about voluntary compliance with regulatory laws and rules.
(k) Work with regional and state offices of the small business
administration, the United States department of commerce and the
Michigan economic development corporation, and other federal and
state agencies that may have programs to financially assist small
businesses in need of funds to comply with state regulation.
(l) Work with private sector financial institutions to assist
small businesses in locating sources of funds to comply with state
regulation.
(m) Conduct studies to evaluate the impacts of state
regulation on the state's economy, local economies, and small
businesses.
(n) Work with other states to establish a network for sharing
information on small businesses and their efforts to comply with
state regulation.
(o) Make recommendations to the department and the legislature
concerning the reduction of any fees required under state law to
take into account the financial resources of small businesses.
Sec. 7. (1) The ombudsman shall establish procedures for the
office for budgeting, expending money, and employing personnel
according to the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594. Subject to annual appropriations, the ombudsman
shall employ sufficient personnel to carry out the duties and
powers prescribed by this act.
(2) The office of small business ombudsman may develop
mechanisms for all of the following:
(a) Developing, collecting, and coordinating information on
compliance methods and technologies for small businesses.
(b) Assisting small business with information regarding
alternative technologies, process changes, and products and methods
of operation that help ensure compliance with state regulation.
(c) Establishing a compliance assistance program that assists
small businesses in determining applicable requirements for
compliance and the procedures for obtaining permits efficiently in
a timely manner under state law.
(3) The office shall develop adequate mechanisms for all of
the following:
(a) Encouraging lawful cooperation among small businesses and
other persons to further compliance with state regulatory laws and
for receiving and processing complaints about the administration of
those laws by state departments and agencies.
(b) Providing mechanisms and access to information so that
small businesses receive notification of their rights under state
law in a manner and form that assures reasonably adequate time for
small businesses to evaluate their compliance methods or applicable
proposed or final rules or standards.
(c) Informing small businesses of their obligations under
state law, including mechanisms for referring small businesses to
qualified auditors or to the state if the state elects to provide
audits to determine compliance with state law. To the extent
permissible by state and federal law, audits shall be separate from
the formal inspection and compliance program.
(d) Providing information on how to obtain consideration from
a state department or agency on requests from small businesses for
modifications of any work practice or technological method of
compliance.
Sec. 9. (1) All departments, agencies, boards, committees,
commissions, or officers of this state or any political subdivision
of this state, so far as is compatible with their duties, shall
give the office any assistance requested by the office in the
performance of the office's duties. All departments, agencies,
boards, committees, commissions, or officers of this state or any
political subdivision of this state shall provide the office free
access to agency personnel and any book, record, or document in
their custody, relating to investigation of a complaint by the
office, other than information described in section 13 of the
freedom of information act, 1976 PA 442, MCL 15.243.
(2) The office may subpoena any person to appear, to give
sworn testimony, or to produce documentary or other evidence that
is reasonably relevant to the matters under investigation by the
office.
(3) A person shall not interfere with, prevent, or prohibit
the ombudsman from carrying out his or her powers or duties under
this part.
(4) A state department or agency shall not discriminate
against a person because a complaint against the department or
agency has been or may be filed with the office by or on behalf of
the person.
(5) The office may bring an action in the circuit court for
Ingham county to enforce this part as it relates to the office.
Sec. 11. Information obtained by the office from small
businesses that utilize its services shall be held in confidence by
those employed by the office or the program to the extent
authorized under the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246, including, but not limited to, those provisions
pertaining to exemptions from disclosure for trade secrets and
commercial and financial information.
Sec. 13. (1) The small business compliance advisory panel is
created within the office.
(2) The advisory panel shall be broadly representative of the
regulated small business community and shall include women members
and members who are minorities. The advisory panel shall consist of
the following members:
(a) Two members appointed by the governor to represent the
general public and who are not owners or representatives of owners
of small businesses.
(b) One member appointed by the republican leader of the
senate who is an owner or a representative of owners of small
businesses.
(c) One member appointed by the democratic leader of the
senate who is an owner or a representative of owners of small
businesses.
(d) One member appointed by the republican leader of the house
of representatives who is an owner or a representative of owners of
small businesses.
(e) One member appointed by the democratic leader of the house
of representatives who is an owner or a representative of owners of
small businesses.
(3) Members of the advisory panel shall serve for terms of 4
years, or until a successor is appointed, whichever is later.
However, of the members first appointed, the members appointed by
the governor shall serve for 3 years, the members appointed by the
senate shall serve for 1 year, and the members appointed by the
house of representatives shall serve for 2 years.
(4) If a vacancy occurs on the advisory panel, the governor,
the department, or the appropriate legislative leader who made the
appointment shall make an appointment for the unexpired term in the
same manner as the original appointment.
(5) The advisory panel shall elect from among its members a
chairperson and other officers as it considers necessary or
appropriate.
(6) A majority of the members of the advisory panel constitute
a quorum for the transaction of business at a meeting of the
advisory panel. A majority of the members present and serving are
required for official action of the advisory panel.
(7) Members of the advisory panel shall serve without
compensation. However, members of the advisory panel may be
reimbursed for their actual and necessary expenses incurred in the
performance of their official duties as members of the advisory
panel.
(8) The advisory panel shall do all of the following:
(a) Consult with the ombudsman and the head of the program to
plan the work of the advisory panel, including the frequency of
meetings, agenda items, and reports to be issued by the advisory
panel.
(b) Determine whether to utilize private contractors or
utilize expertise available within state departments, or both, to
meet the requirements of this act that pertain to providing
technical assistance to small businesses.
(c) Prepare advisory reports concerning all of the following:
(i) The effectiveness of the office.
(ii) The costs of operating the office.
(iii) The average costs of different categories of small
businesses in complying with regulatory programs of this state.
(d) Review information prepared by the office for small
businesses to assure that the information is understandable to
laypersons.
(9) The advisory panel shall provide copies of advisory
reports prepared by the advisory panel to each state department,
the legislature, and the office. In addition, the reports shall be
made available to any person upon request.