SENATE BILL No. 271

 

 

March 17, 2011, Introduced by Senators BRANDENBURG, GREEN, NOFS, MARLEAU, EMMONS, BOOHER, KAHN and SCHUITMAKER and referred to the Committee on Economic Development.

 

 

 

     A bill to amend 1969 PA 306, entitled

 

"Administrative procedures act of 1969,"

 

by amending section 45 (MCL 24.245), as amended by 2004 PA 491.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 45. (1) Except as otherwise provided for in this

 

subsection, the agency shall electronically submit the a proposed

 

rule to the legislative service bureau for its formal

 

certification. The submission to the legislative service bureau for

 

formal certification shall be in the form of electronic

 

transmission. If requested by the legislative service bureau, the

 

state office of regulatory reform administrative hearings and rules

 

shall also transmit up to 4 paper copies of the proposed rule. The

 

legislative service bureau shall promptly issue a certificate of

 

approval indicating a determination that a whether the proposed

 


rule is proper as to all matters of form, classification, and

 

arrangement. If the legislative service bureau fails to issue a

 

certificate of approval within 21 calendar days after receipt of

 

the submission for formal certification, the state office of

 

regulatory reform administrative hearings and rules may issue a

 

certificate of approval. If the submission to the legislative

 

service bureau is returned by the legislative service bureau

 

returns the submission to the agency before the expiration of the

 

21-calendar-day time period, the 21-calendar-day time period is

 

tolled until the rule is resubmitted by the agency. The legislative

 

service bureau shall have the remainder of the 21-calendar-day time

 

period or 6 calendar days, whichever is longer, shall be available

 

for consideration by the legislative service bureau for to consider

 

the formal certification of the rule. The state office of

 

regulatory reform administrative hearings and rules may approve a

 

proposed rule if it considers the proposed rule to be legal and

 

appropriate.

 

     (2) Except as provided in subsection (6), after notice is

 

given as provided in this act and before the agency proposing the

 

rule has formally adopted the rule, the agency shall prepare an

 

agency report containing a synopsis of the comments contained in

 

the public hearing record and a copy of the request for rule-making

 

and the regulatory impact statement required under subsection (3).

 

In the report, the agency shall describe any changes in the

 

proposed rules that were made by the agency after the public

 

hearing. The state office of regulatory reform administrative

 

hearings and rules shall transmit by notice of transmittal to the

 


committee copies of the rule, the agency reports containing the

 

request for rule-making, a copy of the regulatory impact statement,

 

and certificates of approval from the legislative service bureau

 

and the state office of regulatory reform administrative hearings

 

and rules. The state office of regulatory reform administrative

 

hearings and rules shall also electronically submit a copy of the

 

rule, any agency reports required under this subsection, any

 

regulatory impact statements required under subsection (3), and any

 

certificates of approval required under subsection (1) to the

 

committee. The agency shall electronically transmit to the

 

committee the records described in this subsection within 1 year

 

after the date of the last public hearing on the proposed rule

 

unless the proposed rule is a resubmission under section 45a(7).

 

     (3) Except for a rule promulgated under sections 33, 44, and

 

48 as provided in subsection (6), the an agency shall prepare and

 

include with the a notice of transmittal under subsection (2) the

 

request for rule-making and the response from the state office of

 

administrative hearings and rules, a small business impact

 

statement prepared under section 40(1), and a regulatory impact

 

statement. containing The regulatory impact statement shall contain

 

all of the following information:

 

     (a) A comparison of the proposed rule to parallel federal

 

rules or standards set by a state or national licensing agency or

 

accreditation association, if any exist.

 

     (b) A comparison of the proposed rule to standards in other

 

states in the Great Lakes region and a statement of whether the

 

rule exceeds standards in those states.

 


     (c) (b) An identification of the behavior and frequency of

 

behavior that the rule is designed to alter.

 

     (d) (c) An identification of the harm resulting from the

 

behavior that the rule is designed to alter and the likelihood that

 

the harm will occur in the absence of the rule.

 

     (e) (d) An estimate of the change in the frequency of the

 

targeted behavior expected from the rule.

 

     (f) (e) An identification of the businesses, groups, or

 

individuals who will be directly affected by, bear the cost of, or

 

directly benefit from the rule.

 

     (g) (f) An identification of any reasonable alternatives to

 

regulation pursuant to the proposed rule that would achieve the

 

same or similar goals.

 

     (h) (g) A discussion of the feasibility of establishing a

 

regulatory program similar to that proposed in the rule that would

 

operate through market-based mechanisms.

 

     (i) (h) An estimate of the cost of rule imposition on the

 

agency promulgating the rule.

 

     (j) (i) An estimate of the actual statewide compliance costs

 

of the proposed rule on individuals.

 

     (k) (j) An estimate of the actual statewide compliance costs

 

of the proposed rule on businesses and other groups.

 

     (l) (k) An identification of any disproportionate impact the

 

proposed rule may have on small businesses because of their size.

 

     (m) (l) An identification of the nature of any report and the

 

estimated cost of its preparation by small business required to

 

comply with the proposed rule.

 


     (n) (m) An analysis of the costs of compliance for all small

 

businesses affected by the proposed rule, including costs of

 

equipment, supplies, labor, and increased administrative costs.

 

     (o) (n) An identification of the nature and estimated cost of

 

any legal consulting and accounting services that small businesses

 

would incur in complying with the proposed rule.

 

     (p) (o) An estimate of the ability of small businesses to

 

absorb the costs estimated under subdivisions (l) through (n) (m) to

 

(o) without suffering economic harm and without adversely affecting

 

competition in the marketplace.

 

     (q) (p) An estimate of the cost, if any, to the agency of

 

administering or enforcing a rule that exempts or sets lesser

 

standards for compliance by small businesses.

 

     (r) (q) An identification of the impact on the public interest

 

of exempting or setting lesser standards of compliance for small

 

businesses.

 

     (s) (r) A statement describing the manner in which the agency

 

reduced the economic impact of the rule on small businesses or a

 

statement describing the reasons such a reduction was not feasible.

 

     (t) (s) A statement describing whether and how the agency has

 

involved small businesses in the development of the rule.

 

     (u) (t) An estimate of the primary and direct benefits of the

 

rule.

 

     (v) (u) An estimate of any cost reductions to businesses,

 

individuals, groups of individuals, or governmental units as a

 

result of the rule.

 

     (w) (v) An estimate of any increase in revenues to state or

 


local governmental units as a result of the rule.

 

     (x) (w) An estimate of any secondary or indirect benefits of

 

the rule.

 

     (y) (x) An identification of the sources the agency relied

 

upon in compiling the regulatory impact statement, including the

 

methodology utilized in determining the existence and extent of the

 

impact of a proposed rule and a cost-benefit analysis of the

 

proposed rule.

 

     (z) A detailed recitation of the efforts of the agency to

 

comply with the mandate to reduce the disproportionate impact of

 

the rule upon small businesses as described in section 40(1)(a) to

 

(d).

 

     (aa) (y) Any other information required by the state office of

 

regulatory reform administrative hearings and rules.

 

     (4) The agency shall electronically transmit the regulatory

 

impact statement required under subsection (3) to the state office

 

of regulatory reform administrative hearings and rules at least 28

 

days before the public hearing required pursuant to section 42.

 

Before the public hearing can be held, the regulatory impact

 

statement must be reviewed and approved by the state office of

 

regulatory reform administrative hearings and rules. The agency

 

shall also electronically transmit a copy of the regulatory impact

 

statement to the committee before the public hearing and the agency

 

shall make copies available to the public at the public hearing.

 

The agency shall publish the regulatory impact statement on its

 

website at least 10 days before the date of the public hearing.

 

     (5) The committee shall electronically transmit to the senate

 


fiscal agency and the house fiscal agency a copy of each rule and

 

regulatory impact statement filed with the committee, as well as a

 

copy of the agenda identifying the proposed rules to be considered

 

by the committee. The senate fiscal agency and the house fiscal

 

agency shall analyze each proposed rule for possible fiscal

 

implications that, if the rule were adopted, would result in

 

additional appropriations in the current fiscal year or commit the

 

legislature to an appropriation in a future fiscal year. The senate

 

fiscal agency and the house fiscal agency shall electronically

 

report their findings to the senate and house appropriations

 

committees and to the committee before the date of consideration of

 

the proposed rule by the committee.

 

     (6) Subsections (2), (3), and (4) do not apply to a rule that

 

is promulgated under sections section 33, 44, and or 48.