May 7, 2008, Introduced by Senators HARDIMAN, PAPPAGEORGE, CROPSEY, RICHARDVILLE, BIRKHOLZ, McMANUS, KAHN, GEORGE, BROWN, VAN WOERKOM, KUIPERS, ALLEN, STAMAS, JANSEN and SANBORN and referred to the Committee on Government Operations and Reform.
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 submit the 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 office of
regulatory reform 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
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 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 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
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.
(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 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, 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, the agency shall prepare and include with the notice of
transmittal a regulatory impact statement containing 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. The agency shall also
indicate whether the proposed rule exceeds any existing federal
standards.
(b) An identification of the behavior and frequency of
behavior that the rule is designed to alter.
(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.
(d) An estimate of the change in the frequency of the targeted
behavior expected from the rule.
(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.
(f) An identification of any reasonable alternatives to
regulation pursuant to the proposed rule that would achieve the
same or similar goals.
(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.
(h) An estimate of the cost of rule imposition on the agency
promulgating the rule.
(i) An estimate of the actual statewide compliance costs of
the proposed rule on individuals.
(j) An estimate of the actual statewide compliance costs of
the proposed rule on businesses and other groups.
(k) An identification of any disproportionate impact the
proposed rule may have on small businesses because of their size.
(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.
(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.
(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.
(o) An estimate of the ability of small businesses to absorb
the costs estimated under subdivisions (l) through (n) without
suffering economic harm and without adversely affecting competition
in the marketplace.
(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.
(q) An identification of the impact on the public interest of
exempting or setting lesser standards of compliance for small
businesses.
(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.
(s) A statement describing whether and how the agency has
involved small businesses in the development of the rule.
(t) An estimate of the primary and direct benefits of the
rule.
(u) An estimate of any cost reductions to businesses,
individuals, groups of individuals, or governmental units as a
result of the rule.
(v) An estimate of any increase in revenues to state or local
governmental units as a result of the rule.
(w) An estimate of any secondary or indirect benefits of the
rule.
(x) An identification of the sources the agency relied upon in
compiling the regulatory impact statement.
(y) An estimate of whether implementation of the rule would
allow any governmental agency to compete in the regulated activity
against the private sector.
(z) (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.
(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 33, 44, and 48.