Bill Text: MI HB4242 | 2013-2014 | 97th Legislature | Engrossed
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 House, May 14, 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.]
