HB 5817

HOUSE BILL NO. 5817
A bill to amend 1969 PA 306, entitled
"Administrative procedures act of 1969,"
by amending sections 39 and 45 (MCL 24.239 and 24.245),
section 39 as amended by 2011 PA 239 and section 45 as amended by 2023 PA 104,
and by adding sections 47a and 67c.
the people of the state of michigan enact:
Sec. 39. (1) Before initiating any changes or additions to
rules, an agency shall electronically file with the office of regulatory reinvention a request for rule-making in a format rulemaking
on a form and in a manner prescribed by the office. of regulatory
reinvention. The request for rule-making
shall rulemaking must 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.
(e) A statement identifying the rule as either a major rule or a
nonmajor rule.
(2) If an agency
receives recommendations or comments by any an advisory committee or other advisory entity
created by statute regarding a request for rule-making,
rulemaking, the advisory committee or
entity shall issue to the agency a decision record.
(3) An agency shall
not proceed with the processing of a rule outlined in this chapter unless the
office of regulatory reinvention has
approved the request for rule-making. rulemaking. The office of
regulatory reinvention is not required to approve a request for rule-making rulemaking and
shall do so only after it the office has indicated in its the response
to the request for rule-making rulemaking that was submitted by an the agency that
there are appropriate and necessary policy and legal bases for approving the
request for rule-making.rulemaking.
(4) The office of regulatory reinvention shall record the receipt
of all requests for rule-making rulemaking on the internet and shall make electronic or paper copies of approved
requests for rule-making rulemaking available to members of the general public. The office of regulatory reinvention shall issue a written or
electronic response to the request for rule-making rulemaking that specifically addresses whether the
request for rulemaking has appropriate and
necessary policy and legal bases for approving the
request for rule-making.approval.
(5) The office of regulatory reinvention shall immediately make
available to the committee and the legislative service
bureau electronic copies of the any request for rule-making
rulemaking submitted to the office. of regulatory
reinvention. On a weekly basis, the office of
regulatory reinvention shall electronically provide to the committee and the legislative service bureau a listing of all
requests for rule-making rulemaking approved or denied during the previous
week. The committee shall electronically provide a copy of the approved and denied requests for rule-making, listing described in this subsection, not later than
the next business day after receipt of the notice listing from the office,
of regulatory reinvention, to members of the
committee and to the
members of the standing committees of the senate and house of
representatives that deal with the subject matter of the proposed rule.
Sec. 45. (1) Except as otherwise provided in this subsection and subsection (2), an agency shall electronically
submit a proposed rule and the regulatory impact
analysis report to the legislative service bureau for its formal certification. If requested by the legislative service bureau, the
office shall also transmit up to 4 paper copies of the proposed rule. The
legislative service bureau shall review the proposed
rule as to all matters of form, classification, and arrangement and work with
the senate fiscal agency and the house fiscal agency to ensure that the
regulatory impact analysis report is accurate. If the legislative service
bureau determines that the rule is proper in form, classification, and
arrangement, and the regulatory impact analysis report is accurate, not later
than 30 business days after the proposed rule and regulatory impact analysis report
are submitted under this subsection, the legislative service bureau
shall promptly issue a certificate of
approval. indicating
whether The certificate of approval must
indicate that 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 office may issue a certificate of approval. and must indicate whether the proposed rule is a major rule
or nonmajor rule. If the legislative service bureau determines that the
proposed rule has an error in form, classification, or arrangement or that the
regulatory impact analysis report is inaccurate, or both, the legislative
service bureau must return the proposed rule or the regulatory impact analysis report,
or both, to the agency before the expiration of the 30-day time period and
describe, in writing, the errors or inaccuracies. If the legislative
service bureau returns the submission proposed rule or the regulatory impact analysis report, or
both, to the agency, before the expiration of the 21-calendar-day time period,
the 21-calendar-day time period is tolled until and the agency resubmits the proposed rule or regulatory
impact analysis report with changes, the legislative
service bureau has 30 business days to review the resubmitted proposed rule
is resubmitted by the agency. After resubmission,
the legislative service bureau has the remainder of the 21-calendar-day time
period or 6 calendar days, whichever is longer, to consider the formal
certification of the rule. The office may approve a proposed rule if it
considers the proposed rule to be legal and appropriate.or regulatory impact analysis report, or both, to determine
whether the errors or inaccuracies were corrected and issue a certificate of
approval under this subsection. If the legislative service bureau determines
that the resubmitted proposed rule is proper in form, classification, and
arrangement, that the resubmitted regulatory impact analysis report is accurate,
and that the errors and inaccuracies have been corrected, the legislative
service bureau shall issue a certificate of approval under this subsection.
(2) An agency shall electronically submit a proposed rule to which
sections 41 and 42 do not apply as provided in section 44 to the legislative
service bureau for formal certification. The legislative service bureau shall
review the proposed rule as to all matters of form, classification, and
arrangement and determine that the proposed rule complies with 1 or more of the
statements in section 44(1). If the legislative service bureau determines that
the rule is proper in form, classification, and arrangement, and the proposed
rule complies with 1 or more of the statements in section 44(1), not later than
30 business days after the proposed rule is submitted under this subsection,
the legislative service bureau shall issue a certificate of approval. The
certificate of approval must indicate that the proposed rule is proper as to
all matters of form, classification, and arrangement and that the proposed rule
complies with the requirements in section 44(1). If the legislative service
bureau determines that the proposed rule has an error in form, classification,
or arrangement, the legislative service bureau must return the proposed rule to
the agency before the expiration of the 30-day time period and describe, in
writing, the errors or inaccuracies. If the legislative service bureau returns
the proposed rule to the agency, and the agency resubmits the proposed rule
with changes, the legislative service bureau has 30 business days to review the
resubmitted proposed rule and issue a certificate of approval under this
subsection. If the legislative service bureau determines that the resubmitted
proposed rule is proper in form, classification, and arrangement, that the
errors and inaccuracies have been corrected, and that the proposed rule
complies with 1 or more of the statements in section 44(1), the legislative
service bureau shall issue a certificate of approval under this subsection. If
the legislative service bureau determines that the proposed rule does not
comply with 1 or more of the statements in section 44(1), the legislative
service bureau must return the proposed rule to the agency before the
expiration of the 30-day time period and describe, in writing, why the proposed
rule does not comply with section 44(1), and the rulemaking process is
terminated. Termination under this subsection does not prevent the agency from
initiating a new rulemaking for the same or substantially similar adoption.
(3) (2) Except
as provided in subsection (6), (8), 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 that contains a synopsis of the comments contained in
the public hearing record, a copy of the request for rule-making, and rulemaking,
the regulatory impact statement required under subsection (3)(4), and the
regulatory impact analysis report required under subsection (5). In the agency report, the agency shall indicate whether the rule is a major rule or a nonmajor rule
and describe any changes in the proposed rules that were made by the
agency after the public hearing. The office shall transmit by notice of
transmittal to the committee for a nonmajor rule or to
the legislature for a major rule, as applicable, copies of the rule, the
agency reports containing that contain the request for rule-making, rulemaking, a
copy of the regulatory impact statement required under
subsection (4), a copy of the regulatory impact analysis report required under
subsection (5), and certificates the certificate of approval from issued by the
legislative service bureau and the office. under subsection (1). The office shall also
electronically submit to the committee for a nonmajor
rule or to the legislature for a major rule, as applicable, a copy of
the rule, any the agency
reports required under this subsection, any the regulatory impact statements required under
subsection (3), (4),
the regulatory impact analysis report required under subsection (5), and
any certificates the
certificate of approval required issued by the legislative service bureau under
subsection (1). The agency shall electronically transmit to the committee for a nonmajor rule or the legislature for a major rule, as
applicable, the records described in this subsection within not later than 1
year after the date of the last public hearing on the proposed rule. The office shall not provide a notice of transmittal of a rule
under this subsection to the committee or the legislature on or after December
1 of an even-numbered year.
(4) (3) Except
as provided in subsection (6), (8), an agency shall prepare and include with a
notice of transmittal under subsection (2) (3) the request for rule-making
rulemaking and the response from the
office, a small business impact statement prepared under section 40, and a regulatory impact statement required under this subsection, and the regulatory impact
analysis report required under subsection (5). The regulatory impact
statement must 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) If requested by
the office or the committee, a comparison of the proposed rule to standards in
similarly situated states, based on geographic location, topography, natural
resources, commonalities, or economic similarities.
(c) An
identification of the behavior and frequency of behavior that the rule is
designed to alter.
(d) 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) An estimate of
the change in the frequency of the targeted behavior expected from the rule.
(f) 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) An
identification of any reasonable alternatives to regulation under the proposed
rule that would achieve the same or similar goals.
(h) 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) An estimate of
the cost of rule imposition on the agency promulgating the rule.
(j) An estimate of
the actual statewide compliance costs of the proposed rule on individuals.
(k) A demonstration
that the proposed rule is necessary and suitable to achieve its purpose in
proportion to the burdens it the proposed rule places on individuals.
(l) An estimate of the actual statewide
compliance costs of the proposed rule on businesses and other groups.
(m) An
identification of any disproportionate impact the proposed rule may have on
small businesses because of their size.
(n) An
identification of the nature of any report required and the estimated cost of
its preparation by small businesses required to comply with the proposed rule.
(o) 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.
(p) 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.
(q) An estimate of
the ability of small businesses to absorb the costs estimated under
subdivisions (n) to (p) without suffering economic harm and without adversely
affecting competition in the marketplace.
(r) 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.
(s) An
identification of the impact on the public interest of exempting or setting
lesser standards of compliance for small businesses.
(t) A statement describing that describes
the manner in which the agency reduced the economic impact of the rule
on small businesses or a statement describing the reasons such that a
reduction was not feasible.
(u) A statement describing that describes
how the agency has involved small businesses in the development of the
rule.
(v) An estimate of
the primary and direct benefits of the rule.
(w) An estimate of
any cost reductions to businesses, individuals, groups of individuals, or
governmental units as a result of the rule.
(x) An estimate of
any increase in revenues to state or local governmental units as a result of
the rule.
(y) An estimate of
any secondary or indirect benefits of the rule.
(z) An
identification of the sources the agency relied on in compiling the regulatory
impact statement, including the methodology used in determining the existence
and extent of the impact of a proposed rule and a cost-benefit analysis of the
proposed rule.
(aa) A detailed
recitation of the efforts of the agency to comply with the mandate to reduce
the disproportionate impact of the rule on small businesses as described in
section 40(1)(a) to (d).
(bb) Any other
information required by the office.
(5) An agency shall prepare and include with a notice of transmittal
under subsection (3) the request for rulemaking, a small business impact
statement prepared under section 40, a regulatory impact statement required
under subsection (4), and the regulatory impact analysis report required under this
subsection. The regulatory impact analysis report must contain all of the
following information:
(a) A statement of need.
(b) The citation to the rule promulgation authority.
(c) An examination of the alternatives to the draft proposed rule.
(d) An evaluation of costs and benefits for implementing the draft
proposed rule, including, but not limited to, estimates of all of the
following:
(i) Primary or direct benefits.
(ii) Cost savings or financial benefits to
the public.
(iii) Compliance costs for regulated entities.
(iv) Secondary or indirect costs.
(v) Effects on state revenue and state
expenditures and administrative expenses.
(vi) Opportunity cost of compliance as a
result of the removal of private capital from the market.
(6) (4) An
agency shall electronically transmit the regulatory impact statement required
under subsection (3) (4) and the regulatory impact analysis report required under
subsection (5) to the office not less than 28 days before the public
hearing required under section 41. The agency shall not hold the public hearing
until the regulatory impact statement has been and regulatory impact analysis report are reviewed
and approved by the office. The agency shall also electronically transmit a
copy of the regulatory impact statement and regulatory
impact analysis report 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 and
regulatory impact analysis report on its the agency's website not less than 10 days before the
date of the public hearing.
(7) (5) The For a nonmajor rule, the committee shall electronically transmit to
the senate fiscal agency and the house fiscal agency a copy of each proposed nonmajor rule,
and regulatory impact statement, filed with and regulatory impact analysis report transmitted to the
committee under a notice of transmittal under
subsection (3) and a copy of the agenda identifying
that identifies the proposed nonmajor rules to be considered by the committee. For a major rule, if a concurrent resolution is introduced
under section 67c, the standing committee to which the concurrent resolution is
referred shall electronically transmit to the senate fiscal agency and the
house fiscal agency a copy of the proposed major rule that is the subject of
the concurrent resolution and the regulatory impact statement and regulatory
impact analysis report transmitted to the legislature under a notice of
transmittal under subsection (3). The senate fiscal agency and the house
fiscal agency shall analyze each proposed nonmajor or
major rule, as applicable, 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 the findings to the senate
and house appropriations committees and to the committee for a nonmajor rule or the legislature for a major rule, as
applicable, before the date of consideration of the proposed nonmajor or major rule by the committee or the legislature, as applicable.
(8) (6) Subsections
(2), (3), and (4), (5), (6), and (7) do
not apply to a rule that is promulgated under section 33 or 48 or a rule to
which sections 41 and 42 do not apply as provided in section 44.
Sec. 47a. (1) A
rule that is promulgated after the effective date of the amendatory act that
added this section is rescinded 5 years after the date the rule is promulgated.
(2) Subsection (1) does not apply to either of the following:
(a) A rule that is required by federal law.
(b) A rule promulgated under a statute that provides that this section
does not apply to rules promulgated under the statute.
(3) An agency may submit a request, in writing, to the legislature for
an extension of the effectiveness of a rule for up to 5 years beyond the
rescission date under subsection (1). An agency shall not apply for more than 1
extension under this subsection. If the legislature approves the request under
this subsection by concurrent resolution, the rule is rescinded on the extended
date approved by the legislature in the concurrent resolution.
(4) A request under subsection (3) must be made in writing and include a
cost-benefit analysis. The agency shall submit the report to the senate
majority leader and speaker of the house of representatives not less than 1
year, but not more than 2 years, before the rescission date under subsection
(1) and shall make the report available on the agency's website. The
legislature may require the agency to provide any additional information the
legislature determines is necessary to consider the agency's request.
(5) The secretary of state shall provide notice to an agency not less
than 18 months before a rule's rescission date under subsection (1).
Sec. 67c. (1) Subject to subsection (2), not later than 90 calendar days
after the legislature receives a notice of transmittal of a proposed major rule
from an agency under section 45 or receives the transmitted documents from the
committee under section 67b(1)(d), the legislature may adopt a concurrent
resolution that approves and provides for an effective date of the proposed
major rule.
(2) If, on
or before December 1 of the even-numbered year of the legislative term in which
the legislature received a notice of transmittal under section 45, the legislature
does not take action as described under subsection (1), the agency shall
withdraw the proposed major 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.
(3) Before
the effective date specified in the concurrent resolution adopted under
subsection (1), an agency may withdraw the adoption of a proposed major rule by
giving notice of the withdrawal to the legislature 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.
This amendatory act does not take effect unless House Bill No. 5818 (request
no. H03498'25) of the 103rd Legislature is enacted into law.