SB-0272, As Passed House, November 10, 2011

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 272

     A bill to amend 1969 PA 306, entitled

"Administrative procedures act of 1969,"

by amending sections 40 and 64 (MCL 24.240 and 24.264), section 40

as amended by 1999 PA 262.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 40. (1) When an agency proposes to adopt a rule that will

apply to a small business and the rule will have a disproportionate

impact on small businesses because of the size of those businesses,

the agency shall consider exempting small businesses and, if not

exempted, the agency proposing to adopt the rule shall reduce the

economic impact of the rule on small businesses by doing 1 or more

all of the following when it is lawful and feasible in meeting the

objectives of the act authorizing the promulgation of the rule:

     (a) Identify and estimate the number of small businesses

affected by the proposed rule and its probable effect on small

businesses.

(b) (a) Establish differing compliance or reporting

requirements or timetables for small businesses under the rule

after projecting the required reporting, record-keeping, and other

administrative costs.

(c) (b) Consolidate, or simplify, or eliminate the compliance

and reporting requirements for small businesses under the rule and

identify the skills necessary to comply with the reporting

requirements.

(d) (c) Establish performance rather than design standards,

when appropriate standards to replace design or operational

standards required in the proposed rule.

     (d) Exempt small businesses from any or all of the

requirements of the rule.

     (2) The factors described in subsection (1)(a) to (d) shall be

specifically addressed in the small business impact statement.

(3) (2) If appropriate in In reducing the disproportionate

economic impact on small business of a rule as provided in

subsection (1), an agency may shall use the following

classifications of small business:

     (a) 0-9 full-time employees.

     (b) 10-49 full-time employees.

     (c) 50-249 full-time employees.

(4) (3) For purposes of subsection (2) (3), an agency may

include a small business with a greater number of full-time

employees in a classification that applies to a business with fewer

full-time employees.

(5) (4) This section and section 45(3) do not apply to a rule

which that is required by federal law and which that an agency

promulgates without imposing standards more stringent than those

required by the federal law.

     Sec. 64. Unless an exclusive procedure or remedy is provided

by a statute governing the agency, the validity or applicability of

a rule, including the failure of an agency to accurately assess the

impact of the rule on businesses, including small businesses, in

its regulatory impact statement, may be determined in an action for

declaratory judgment when if the court finds that the rule or its

threatened application interferes with or impairs, or imminently

threatens to interfere with or impair, the legal rights or

privileges of the plaintiff. The action shall be filed in the

circuit court of the county where the plaintiff resides or has his

or her principal place of business in this state or in the circuit

court for Ingham county. The agency shall be made a party to the

action. An action for declaratory judgment may not be commenced

under this section unless the plaintiff has first requested the

agency for a declaratory ruling and the agency has denied the

request or failed to act upon it expeditiously. This section shall

not be construed to prohibit the determination of the validity or

applicability of the rule in any other action or proceeding in

which its invalidity or inapplicability is asserted.