HB-4573, As Passed Senate, November 10, 2011

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4573

     A bill to amend 1969 PA 306, entitled

"Administrative procedures act of 1969,"

by amending sections 3 and 39 (MCL 24.203 and 24.239), section 3 as

amended by 1988 PA 277 and section 39 as amended by 2004 PA 23.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3. (1) "Adoption of a rule" means that step in the

processing of a rule consisting of the formal action of an agency

establishing a rule before its promulgation.

     (2) "Agency" means a state department, bureau, division,

section, board, commission, trustee, authority or officer, created

by the constitution, statute, or agency action. Agency does not

include an agency in the legislative or judicial branch of state

government, the governor, an agency having direct governing control

over an institution of higher education, the state civil service

commission, or an association of insurers created under the

insurance code of 1956, Act No. 218 of the Public Acts of 1956,

being sections 500.100 to 500.8302 of the Michigan Compiled Laws

1956 PA 218, MCL 500.100 to 500.8302, or other association or

facility formed under Act No. 218 of the Public Acts of 1956 that

act as a nonprofit organization of insurer members.

     (3) "Contested case" means a proceeding, including rate-

making, price-fixing, and licensing, in which a determination of

the legal rights, duties, or privileges of a named party is

required by law to be made by an agency after an opportunity for an

evidentiary hearing. When a hearing is held before an agency and an

appeal from its decision is taken to another agency, the hearing

and the appeal are deemed to be considered a continuous proceeding

as though before a single agency.

     (4) "Committee" means the joint committee on administrative

rules.

     (5) "Court" means the circuit court.

     (6) "Decision record" means, in regard to a request for rule-

making where an agency receives recommendations or comments by an

advisory committee or other advisory entity created by statute,

both of the following:

     (a) The minutes of all meetings related to the request for

rule-making.

     (b) The votes of members.

(7) (6) "Guideline" means an agency statement or declaration

of policy which that the agency intends to follow, which that does

not have the force or effect of law, and which that binds the

agency but does not bind any other person.

     Sec. 39. (1) Before initiating any changes or additions to

rules, an agency shall electronically file with the office of

regulatory reform reinvention a request for rule-making in a format

prescribed by the office of regulatory reform reinvention. The

request for rule-making shall include the following:

     (a) The state or federal statutory or regulatory basis for the

rule.

     (b) The problem the rule intends to address.

     (c) An assessment of the significance of the problem.

     (d) If applicable, the decision record.

     (2) If an agency receives recommendations or comments by any

advisory committee or other advisory entity created by statute

regarding a request for rule-making, the advisory committee or

entity shall issue to the agency a decision record.

(3) (2) An agency shall not proceed with the processing of a

rule outlined in this chapter unless the office of regulatory

reform reinvention has approved the request for rule-making. The

office of regulatory reinvention is not required to approve a

request for rule-making and shall do so only after it has indicated

in its response to the request for rule-making submitted by an

agency that there are appropriate and necessary policy and legal

bases for approving the request for rule-making.

(4) (3) The office of regulatory reform reinvention shall

record the receipt of all requests for rule-making on the internet

and shall make electronic or paper copies of approved requests for

rule-making available to members of the general public. upon

request. The office of regulatory reinvention shall issue a written

or electronic response to the request for rule-making that

specifically addresses whether the request has appropriate and

necessary policy and legal bases for approving the request for

rule-making.

(5) (4) The office of regulatory reform reinvention shall

immediately make available to the committee electronic copies of

the request for rule-making submitted to the office of regulatory

reform reinvention. On a weekly basis, the office of regulatory

reform reinvention shall electronically provide to the committee a

listing of all requests for rule-making approved or denied during

the previous week. The committee shall electronically provide a

copy of the approved and denied requests for rule-making, not later

than the next business day after receipt of the notice from the

office of regulatory reform reinvention, to members of the

committee and to members of the standing committees of the senate

and house of representatives that deal with the subject matter of

the proposed rule.