September 23, 2009, Introduced by Reps. Horn, Walsh, Kowall, Stamas, Crawford, Daley, Meekhof, Kurtz, McMillin, Lund, Rick Jones, Haveman, Caul, Hansen, Booher and Genetski and referred to the Committee on Regulatory Reform.
A bill to provide for the tolling of compliance with
requirements imposed by law or rule for certain regulatory
activities, to extend the time for the application of certain
benefits or the taking of certain actions, and tolling the
imposition of certain sanctions; to provide for certain powers and
duties of certain state and local agencies and officials; and to
provide for remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"regulatory shutdown act".
Sec. 2. As used in this act:
(a) "Administrative rule" means a rule promulgated by a state
regulatory agency under the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328.
(b) "Benefit" means an exemption or entitlement available to a
person under law or administrative rule and includes the ability to
bring an action before, or to oppose an action brought by, a state
regulatory agency.
(c) "Late application sanction" means any legal, criminal, or
administrative action, penalty, or sanction associated with the
failure to timely apply for a license or benefit; to obtain a
required inspection or certification; or to timely oppose a
sanction or penalty imposed by operation of law or administrative
rule.
(d) "Late fee" means a fee imposed by a state regulatory
agency for the acceptance of an initial or renewal application for
any license after its due date as prescribed by law or
administrative rule.
(e) "License" means a certificate, registration,
accreditation, permit, or license issued by a state regulatory
agency allowing a person to engage in certain activity or use a
certain title.
(f) "State regulatory agency" means a department, bureau, or
agency of this state that has regulatory authority over the
issuance of a license. State regulatory agency includes a local
unit of government enforcing state law.
(g) "State regulatory shutdown" means a circumstance where, by
order of the governor or by operation of law, there exists a
complete or partial suspension or cessation of the operation of 1
or more state regulatory agencies, for a length of time of at least
1 business day.
Sec. 3. (1) Except as otherwise prohibited by law, a state
regulatory shutdown tolls the time period for the filing of an
initial or renewal application for any license issued by a state
regulatory agency or for the application for a benefit.
(2) A state regulatory agency shall not impose and collect a
late fee or impose a late application sanction for a license if the
holder or applicant for the license was prevented from paying the
license fee or from receiving any state inspection or certification
as required by law or administrative rule due to a state regulatory
shutdown.
(3) A state regulatory agency shall not deny the application
for a benefit and shall not impose a late application sanction if
the applicant was prevented from applying due to a state regulatory
shutdown.
(4) The failure of a state regulatory agency to complete an
inspection or certification or to otherwise comply with law or
administrative rule due to any regulatory backlog resulting from a
state regulatory shutdown is not grounds for failure to confer a
benefit, provide a license, or allow the operation of a business or
facility. If a state inspection or the on-site presence of state
inspectors or other state agents is required on a daily basis for a
state regulated entity to operate, those requirements are waived
during a state regulatory shutdown.
Sec. 4. The tolling of the time period for application for a
license or benefit under section 3 shall last for the duration of
the state regulatory shutdown and until the later of the following:
(a) Five days after the first business day after the cessation
of the state regulatory shutdown as determined by the state
regulatory agency and the governor.
(b) Five days after the first business day the state
regulatory agency announces on its website the cessation of the
state regulatory shutdown.