Bill Text: MI HB4242 | 2013-2014 | 97th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Administrative procedure; rules; demonstration that proposed rule is necessary and suitable; require. Amends sec. 45 of 1969 PA 306 (MCL 24.245).

Spectrum: Partisan Bill (Republican 8-0)

Status: (Passed) 2013-12-31 - Assigned Pa 200'13 With Immediate Effect 2013 Addenda [HB4242 Detail]

Download: Michigan-2013-HB4242-Engrossed.html

HB-4242, As Passed Senate, December 3, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4242

 

February 12, 2013, Introduced by Reps. Goike, Kelly, Johnson, Pscholka, Zorn, Howrylak, Hooker and Lauwers and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1969 PA 306, entitled

 

"Administrative procedures act of 1969,"

 

by amending section 45 (MCL 24.245), as amended by 2011 PA 242.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

subsection, the an agency shall electronically submit a proposed

 

rule to the legislative service bureau for its formal

 

certification. If requested by the legislative service bureau, the

 

office of regulatory reinvention shall also transmit up to 4 paper

 

copies of the proposed rule. The legislative service bureau shall

 

promptly issue a certificate of approval indicating 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 office of regulatory

 

reinvention may issue a certificate of approval. If 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,

 

to consider the formal certification of the rule. The office of

 

regulatory reinvention 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 office of regulatory reinvention 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 office of

 

regulatory reinvention. The office of regulatory reinvention shall

 

also electronically submit to the committee 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 as provided in subsection (6), an agency shall

 

prepare and include with a notice of transmittal under subsection

 

(2) the request for rule-making and the response from the office of

 

regulatory reinvention, a small business impact statement prepared

 

under section 40(1), and a regulatory impact statement. 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) If requested by the office of regulatory reinvention 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 pursuant to 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

 

places on individuals.

 

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

 

the proposed rule on businesses and other groups.

 

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

 

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

 

     (n) (m) An identification of the nature of any report required

 

and the estimated cost of its preparation by small business

 

businesses required to comply with the proposed rule.

 

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

 

absorb the costs estimated under subdivisions (m) (n) to (o) (p)

 

without suffering economic harm and without adversely affecting

 

competition in the marketplace.

 

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

 

of exempting or setting lesser standards of compliance for small

 

businesses.

 

     (t) (s) 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.

 

     (u) (t) A statement describing how the agency has involved

 

small businesses in the development of the rule.

 

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

 

rule.

 

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

 

individuals, groups of individuals, or governmental units as a

 

result of the rule.

 

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

 

local governmental units as a result of the rule.

 

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

 

the rule.


 

     (z) (y) 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.

 

     (aa) (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).

 

     (bb) (aa) Any other information required by the office of

 

regulatory reinvention.

 

     (4) The agency shall electronically transmit the regulatory

 

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

 

regulatory reinvention at least 28 days before the public hearing

 

required pursuant to under section 42. Before the public hearing

 

can be held, the regulatory impact statement must be reviewed and

 

approved by the office of regulatory reinvention. 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

 

and a copy of the agenda identifying the proposed rules to be

 

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


House Bill No. 4242 as amended May 9, 2013

 

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 section 33, 44, or 48.

[Enacting section 1. This amendatory act takes effect on the expiration of 90 days after the date it is enacted into law.]

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