HB 5818

HOUSE BILL NO. 5818
A bill to amend 1969 PA 306, entitled
"Administrative procedures act of 1969,"
by amending sections 3, 5, 33, 44, 46, 47, and 52 (MCL
24.203, 24.205, 24.233, 24.244, 24.246, 24.247, and 24.252), section 3 as
amended by 2022 PA 221, section 5 as amended by 2016 PA 513, sections 33, 44,
and 47 as amended by 2024 PA 9, section 46 as amended by 2006 PA 247, and
section 52 as amended by 2004 PA 491, and by adding sections 67, 67a, and 67b;
and to repeal acts and parts of acts.
the people of the state of michigan enact:
Sec. 3. As used in this act:
(a) (1) "Adoption of a rule" "Adoption",
for a rule, means that
step in the processing of a rule consisting that consists of the formal action of an agency
establishing a the rule
before its promulgation.
(b) (2) "Agency"
means a state department, bureau, division, section, board, commission,
trustee, authority or officer, created by the constitution, statute, or agency
action. Subject to section 115(5), agency includes the municipal employees
retirement system and the retirement board created by the municipal employees
retirement act of 1984, 1984 PA 427, MCL 38.1501 to 38.1555. Agency does not
include an any of
the following:
(i) An agency in the legislative or judicial
branch of state government. , the
(ii) The governor. , an
(iii) An agency having that has direct governing control over an institution
of higher education. , the
(iv) The state civil service commission. , or an
(v) An association of insurers created or any other association or facility formed as a nonprofit
organization of insurer members under the insurance code of 1956, 1956
PA 218, MCL 500.100 to 500.8302. , or other association or facility formed under that act
as a nonprofit organization of insurer members.
(c) "Committee" means the joint committee on regulatory
oversight and administrative review created under section 67.
(d) (3) "Contested
case", except as
provided in section 122, 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 considered a continuous proceeding as though
before a single agency.
(4) "Committee" means the joint committee on
administrative rules.
(e) (5) "Court"
means the circuit court.
(f) (6) "Decision
record" means, in regard to regarding a request for rule-making
where rulemaking if an agency receives
recommendations or comments by an advisory committee or other advisory entity
created by statute, both of the following:
(i) (a) The minutes of all meetings related to the
request for rule-making.rulemaking.
(ii) (b) The votes of members.
(g) (7) "Guideline"
means an agency statement or declaration of policy that the agency intends to
follow , that
does not have the force or effect of law , and that binds
the agency but does not bind any other person.
Sec. 5. As used in this act:
(a)
"License" includes the whole or part of an agency permit,
certificate, approval, registration, charter, or similar form of permission
required by law. License does not include a license required solely for revenue
purposes or a license or registration issued under the Michigan vehicle code,
1949 PA 300, MCL 257.1 to 257.923.
(b)
"Licensing" includes agency activity involving the grant, denial,
renewal, suspension, revocation, annulment, withdrawal, recall, cancellation,
or amendment of a license.
(c) "Major rule" means a rule that will result in or is likely
to result in 1 or more of the following:
(i) An annual
economic impact of $1,000,000.00 or more.
(ii) Significant
adverse effects on competition, employment, investment, productivity, or
innovation, including significant adverse effects on individual industries or
regions.
(iii) Significant
changes in social and cultural relations among citizens, including significant
impact on religious, ethnic, racial, or gender populations.
(d) (c) "Michigan
register" Register"
means the publication described in section 8.
(e) "Nonmajor rule" means a rule that is not a major rule.
(f) (d) "Notice"
means a written or electronic record that informs a person of past or future
action of the person generating the record.
(e) "Notice of objection" means the record adopted
by the committee that indicates the committee's formal objection to a proposed
rule.
(g) (f) "Office"
means, unless expressly stated otherwise, the Michigan
office of performance and transformation.
(g) "Office administrative hearings and rules. The use
in this act of "office of regulatory reform", "state office of administrative
hearings and rules", and or "office of regulatory reinvention" mean means the
office.
(h) "Party", except as provided in
section 122, means a person or agency named, admitted, or properly
seeking and entitled of right to be admitted, as a party in a contested case.
In a contested case regarding an application for a license, party includes the
applicant for the license.
(i) "Person"
means an individual, partnership, association, corporation, limited liability
company, limited liability partnership, governmental subdivision, or public or
private organization of any kind other than the agency engaged in the particular
processing of a rule, declaratory ruling, or contested case.
(j) "Processing
of a rule" means the action required or authorized by this act regarding a
rule that is to be promulgated, including the rule's adoption, and ending with
the rule's promulgation.
(k) "Promulgation of a rule" "Promulgation" means that step in the
processing of a rule consisting of the filing
of the rule with the secretary of state.
(l) "Record" means information
that is inscribed on a paper or electronic medium.
Sec. 33. (1) An agency shall promulgate rules describing its
organization and stating the general course and method of its operations. The
agency may include in the rules forms with instructions. Sections 41, 42, and 45 , and 45a do not apply to promulgation of the
rules.
(2) An agency shall
promulgate rules prescribing its the agency's procedures available to the public and
the methods by which the public may obtain information and submit requests.
(3) An agency may
promulgate rules prescribing procedures for contested cases. The rules must be
consistent with this act and other applicable statutes.
Sec. 44. (1) Sections 41 and 42 do not apply to an amendment
or rescission of a rule that is obsolete or superseded, or that is required to
make obviously needed corrections to make the rule conform to an amended or new
statute or to accomplish any other solely formal purpose, if a statement to
that effect is included in the legislative service bureau certificate of
approval of the rule issued under section 45.
(2) Sections 41 and
42 do not apply to a rule that is promulgated under the Michigan occupational
safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094, that is
substantially similar to an existing federal standard that has been adopted or
promulgated under the occupational safety and health act of 1970, Public Law
91-596. However, notice of the proposed rule must be published in the Michigan
Register not less than 35 days before the rule is filed with the secretary of
state under section 46(1). A reasonable period, not to exceed 21 days, must be
provided for the submission of written or electronic comments and views
following publication in the Michigan Register.
(3) Sections 41 and 42 do not apply to a change to a proposed
rule by an agency during processing of the rule if the office determines under
section 45c(3) that the regulatory impact and impact on small businesses of the
changed proposed rule are not more burdensome than the regulatory impact and
impact on small businesses of the original proposed rule.
(3) (4) For
purposes of subsection (2), "substantially similar" means identical,
with the exception of style or format differences needed to conform to this or
other state laws, as determined by the office.
Sec. 46. (1) To promulgate a rule the state office of
administrative hearings and rules shall file in the office of the
secretary of state 3 copies of the rule bearing the required certificates of
approval and adoption, true copies of the rule without the certificates, and 1
electronic copy. The state office of administrative hearings and rules shall not
file a rule, except an emergency rule under section 48 and rules processed
under sections 33 and 44, until the time periods period for committee and
legislative consideration of a nonmajor rule described
in section 45a have 67b has elapsed or a
concurrent resolution is authorized by the legislature for a major rule as
described in section 67c.
(2) The secretary
of state shall endorse the date and hour of filing of rules on the 3 copies of
the filing bearing the certificates and shall maintain a file containing 1 copy
for public inspection.
(3) The secretary
of state, as often as he or she the secretary considers it advisable, shall cause to be arranged and bound in a substantial manner have the rules hereafter filed
in his or her office under this section, with their attached certificates, arranged and bound in a
substantial manner and published in a supplement to the Michigan administrative code. Administrative
Code. The secretary of state shall certify under his or her the
secretary's hand and seal of the this state on the frontispiece of each volume that it
contains all of the rules filed and published for a specified period. The
rules, when so bound and certified, shall must be kept in the office of the secretary of state
and no further record of the rules is required to be kept. The bound rules are
subject to public inspection.
Sec. 47. (1) Except for a rule processed under section 48, a
rule becomes effective on as follows:
(a) For a nonmajor rule, as follows:
(i) Subject to the
requirements under section 67b, on December 31 of the even-numbered year after
the nonmajor rule is submitted under a notice of transmittal to the committee
under section 45.
the date fixed in the rule, which must not be earlier than 7
days after the date of promulgation, or, if a date is not fixed in the rule, 7
days after the date of promulgation.
(ii) A date earlier
than the date under subparagraph (i) if the date is
requested by the agency and stated in an approval of the nonmajor rule by the
committee under section 67b(1)(a).
(b) For a major rule, the effective date established in a concurrent
resolution authorized by the legislature as described in section 67c.
(2) Except for a
rule processed under section 48, an agency may withdraw a promulgated rule that has not become effective by filing a written request stating reasons for
withdrawal to the secretary of state on or before the last day for filing rules
for the interim period in which the rules were first filed, or by filing a
written request for withdrawal to the secretary of state and the office, within
a reasonable time, as determined by the office, after the last day for filing
and before publication of the rule in the next supplement to the code. as provided in section 67b or 67c. In any other
circumstances, an agency may abrogate its rule only by rescission. If an agency has withdrawn a promulgated rule, it
shall give notice, stating reasons, to the committee that the rule has been
withdrawn.
(3) Sections 45 and 45a apply to rules for which a public
hearing has not been held by April 1, 2000.
Sec. 52. (1) If authorized by concurrent resolution of the
legislature, the committee, acting between regular sessions of an odd-numbered year and an even-numbered year,
may suspend a rule or a part of a rule promulgated during the interim between
regular sessions.
(2) The committee
shall electronically notify the agency promulgating the rule, the secretary of state,
and the office of regulatory reform of any rule or part of a rule the committee
suspends. A rule or part of a rule suspended under this section shall must not be
published in the Michigan register Register or in the Michigan administrative code Administrative
Code while suspended.
(3) A rule
suspended by the committee continues to be suspended not longer than the end of
the next regular legislative session.
(4) The
committee shall not meet after a concurrent resolution for sine die adjournment
is adopted in the senate and the house of representatives in an even-numbered
year.
CHAPTER
3A
LEGISLATIVE RULES
REVIEW COMMITTEE
Sec. 67. (1) The
joint committee on regulatory oversight and administrative review is created as
a standing committee of the legislature.
(2) The committee consists of 5 members of the senate and 5 members of
the house of representatives, appointed in the same manner that members of standing
committees are appointed for terms of 2 years. Of the 5 members in each house,
3 must be from the majority party and 2 must be from the minority party.
(3) A member of the senate shall serve as the chairperson of the
committee in odd-numbered years and a member of the house of representatives
shall serve as the chairperson in even-numbered years.
(4) Members of the committee shall serve without compensation but must
be reimbursed for expenses incurred in the business of the committee. The
expenses of the members of the senate must be paid from appropriations to the
senate and the expenses of the members of the house of representatives must be
paid from appropriations to the house of representatives.
(5) The committee shall adopt rules for the conduct of business by the
committee. The rules must not be contrary to any of the following:
(a) The provisions of this act.
(b) Any other applicable law of this state that does not conflict with
this act.
(c) Any joint rule of the senate and the house of representatives that
does not conflict with this act.
(6) A simple majority of the members of the committee appointed and
serving constitute a quorum for the transaction of business of the committee. A
quorum is not necessary for the committee to hear testimony or to entertain a
motion to adjourn.
(7) A favorable vote of a simple majority of the members of the
committee appointed and serving is necessary for any action by the committee,
except that a motion to adjourn may be approved by a majority of the members
present.
Sec. 67a. (1)
The committee may examine each rule in effect and each proposed nonmajor rule submitted
by notice of transmittal to the committee under section 45 to determine whether
any of the following apply:
(a) The rule or proposed nonmajor rule is a valid exercise of delegated
legislative authority.
(b) Statutory authority for the rule or proposed nonmajor rule has
expired or been repealed.
(c) The rule or proposed nonmajor rule is necessary to accomplish the
apparent or expressed intent of the specific statute that the rule implements.
(d) The rule or proposed nonmajor rule is a reasonable implementation of
the law as it applies to any affected class of persons.
(e) The agency complied with the rule promulgation process, including,
but not limited to, the regulatory impact statement requirements of section 45 and
the small business impact statement required under section 40 and whether the agency's
analyses in those statements properly reflect the effect of the proposed
nonmajor rule.
(2) The committee may request from an agency information necessary to
exercise its powers under subsection (1). The committee shall consult with
standing committees of the legislature with subject matter jurisdiction over
the subjects of any rule or proposed nonmajor rule under examination.
(3) The committee shall do both of the following:
(a) Maintain oversight over agency rulemaking.
(b) Exercise other duties assigned to it under law.
Sec. 67b. (1) Not
later than December 31 of the even-numbered year of the legislative term in
which the committee receives a notice of transmittal of a proposed nonmajor rule
from an agency under section 45, the committee may do 1 of the following:
(a) Approve the proposed nonmajor rule. If the committee approves the proposed
nonmajor rule, and if requested by the agency, the committee may provide for an
earlier effective date for the proposed nonmajor rule than would otherwise
apply under section 47.
(b) Disapprove the proposed nonmajor rule and propose an amendment to
the rule.
(c) Disapprove the proposed nonmajor rule and require the agency to
propose an amendment to the rule.
(d) Determine that the proposed rule is a major rule, and transmit all
documents received under the original notice of transmittal received by the
committee under section 45 to the legislature. If the committee transmits
documents under this subdivision, section 67c applies.
(2) If the committee approves a proposed nonmajor rule and the agency
does not request an earlier effective date, or if the committee does not
disapprove the proposed nonmajor rule under subsection (1)(b) or (c), the proposed
nonmajor rule becomes effective on the date specified in section 47.
(3) If the committee disapproves a proposed nonmajor rule and proposes
an amendment to that rule under subsection (1)(b), the agency may make the
amendment and resubmit the proposed nonmajor rule, as amended, to the
committee. If the committee disapproves a proposed nonmajor rule and requires
the agency to propose an amendment to that rule under subsection (1)(c), the
agency may propose an amendment and resubmit the proposed nonmajor rule, as
amended, to the committee. The amended proposed nonmajor rule must be submitted
to the committee on or before December 1 of the even-numbered year of the
legislative term in which the committee received the notice of transmittal of
the proposed nonmajor rule under section 45 and must be one that the agency
could have adopted on the basis of the record in the processing of that rule and
the legal authority granted to the agency. The agency shall provide an
explanation of the reasons for changes between the text of the proposed
nonmajor rule as originally submitted to the committee and the text of the
amended proposed nonmajor rule. An agency is not required to hold a public hearing
on an amendment made under this subsection. If the agency makes the amendment, the
agency shall give notice to the office for publication of the proposed nonmajor
rule, as amended, in the Michigan Register. The notice must include the text of
the amended proposed nonmajor rule. If the committee does not disapprove the amended
proposed nonmajor rule or propose a further amendment, the proposed nonmajor rule
becomes effective on the date specified under section 47.
(4) If, on or before December 1 of the
even-numbered year of the legislative term in which the committee received a
notice of transmittal under section 45, the committee does not take an action
under subsection (1), or if the committee disapproves a proposed nonmajor rule
under subsection (1)(b) or (c) and that rule as resubmitted under subsection
(3) is not approved by the committee under subsection (1)(a), the agency shall
withdraw the proposed nonmajor rule not later than 2 days after there is a
concurrent resolution for a sine die adjournment adopted in the senate and the
house of representatives in that even-numbered year. A withdrawal under
this subsection terminates the rulemaking with respect to the adoption but does
not prevent the agency from initiating new rulemaking for the same or
substantially similar adoption.
(5) Before the effective date specified in section 47, the agency may
withdraw the adoption of a proposed nonmajor rule by giving notice of the
withdrawal to the committee and to the office for publication in the Michigan Register.
A withdrawal under this subsection terminates the rulemaking with respect to
the adoption but does not prevent the agency from initiating new rulemaking for
the same or substantially similar adoption.
Enacting section 1.
Sections 35, 45a, and 45c of the administrative procedures act of 1969, 1969 PA
306, MCL 24.235, 24.245a, and 24.245c, are repealed.
Enacting section 2. This amendatory act does not take
effect unless House Bill No. 5817 (request no. H03296'25) of the 103rd
Legislature is enacted into law.