HOUSE BILL No. 5974

 

June 3, 2004, Introduced by Reps. Farhat, Nofs, Shackleton, Stahl, Sheen, Milosch, Huizenga, Caul, Nitz, Hune, Julian, Bradstreet, Mortimer, Emmons and Pastor and referred to the Committee on Agriculture and Resource Management.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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 23.              

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 45.  (1) The agency shall submit the proposed rule to                  

                                                                                

2   the legislative service bureau for its formal certification.  The           

                                                                                

3   submission to the legislative service bureau for formal                     

                                                                                

4   certification shall be in the form of 4 paper copies and                    

                                                                                

5   electronic transmission.  The legislative service bureau shall              

                                                                                

6   promptly issue a certificate of approval indicating a                       

                                                                                

7   determination that a proposed rule is proper as to all matters of           

                                                                                

8   form, classification, and arrangement.  The office of regulatory            

                                                                                

9   reform may approve a proposed rule if it considers the proposed             

                                                                                

10  rule to be legal.                                                           

                                                                                

11      (2) Except as provided in subsection (6), after notice is                   

                                                                                


                                                                                

1   given as provided in this act and before the agency proposing the           

                                                                                

2   rule has formally adopted the rule, the agency shall prepare an             

                                                                                

3   agency report containing a synopsis of the comments contained in            

                                                                                

4   the public hearing record and shall describe any changes in the             

                                                                                

5   proposed rules that were made by the agency after the public                

                                                                                

6   hearing.  The office of regulatory reform shall transmit by                 

                                                                                

7   letter to the committee copies of the rule, the agency reports,             

                                                                                

8   and certificates of approval from the legislative service bureau            

                                                                                

9   and the office of regulatory reform.  The office of regulatory              

                                                                                

10  reform shall also electronically submit a copy of the rule,                 

                                                                                

11  agency reports, and certificates of approval to the committee.              

                                                                                

12  The agency shall electronically transmit to the committee the               

                                                                                

13  records described in this subsection within 1 year after the date           

                                                                                

14  of the last public hearing on the proposed rule unless the                  

                                                                                

15  proposed rule is a resubmission under section 45a(7).                       

                                                                                

16      (3) Except for a rule promulgated under sections 33, 44, and                

                                                                                

17  48, the agency shall prepare and include with the notice of                 

                                                                                

18  transmittal a regulatory impact statement containing all of the             

                                                                                

19  following information:                                                      

                                                                                

20      (a) A comparison of the proposed rule to parallel federal                   

                                                                                

21  rules or standards set by a state or national licensing agency or           

                                                                                

22  accreditation association, if any exist.                                    

                                                                                

23      (b) An identification of the behavior and frequency of                      

                                                                                

24  behavior that the rule is designed to alter.                                

                                                                                

25      (c) An identification of the harm resulting from the behavior               

                                                                                

26  that the rule is designed to alter and the likelihood that the              

                                                                                

27  harm will occur in the absence of the rule.                                 


                                                                                

1       (d) An estimate of the change in the frequency of the                       

                                                                                

2   targeted behavior expected from the rule.                                   

                                                                                

3       (e) An identification of the businesses, groups, or                         

                                                                                

4   individuals who will be directly affected by, bear the cost of,             

                                                                                

5   or directly benefit from the rule.                                          

                                                                                

6       (f) An identification of any reasonable alternatives to                     

                                                                                

7   regulation pursuant to the proposed rule that would achieve the             

                                                                                

8   same or similar goals.                                                      

                                                                                

9       (g) A discussion of the feasibility of establishing a                       

                                                                                

10  regulatory program similar to that proposed in the rule that                

                                                                                

11  would operate through market-based mechanisms.                              

                                                                                

12      (h) An estimate of the cost of rule imposition on the agency                

                                                                                

13  promulgating the rule.                                                      

                                                                                

14      (i) An estimate of the actual statewide compliance costs of                 

                                                                                

15  the proposed rule on individuals.                                           

                                                                                

16      (j) An estimate of the actual statewide compliance costs of                 

                                                                                

17  the proposed rule on businesses and other groups.                           

                                                                                

18      (k) An identification of any disproportionate impact the                    

                                                                                

19  proposed rule may have on small businesses because of their                 

                                                                                

20  size.                                                                       

                                                                                

21                                                                               (l) An identification of the nature of any report and the                           

                                                                                

22  estimated cost of its preparation by small business required to             

                                                                                

23  comply with the proposed rule.                                              

                                                                                

24      (m) An analysis of the costs of compliance for all small                    

                                                                                

25  businesses affected by the proposed rule, including costs of                

                                                                                

26  equipment, supplies, labor, and increased administrative costs.             

                                                                                

27      (n) An identification of the nature and estimated cost of any               


                                                                                

1   legal consulting and accounting services that small businesses              

                                                                                

2   would incur in complying with the proposed rule.                            

                                                                                

3       (o) An estimate of the ability of small businesses to absorb                

                                                                                

4   the costs estimated under subdivisions (l) through (n) without              

                                                                                

5   suffering economic harm and without adversely affecting                     

                                                                                

6   competition in the marketplace.                                             

                                                                                

7       (p) An estimate of the cost, if any, to the agency of                       

                                                                                

8   administering or enforcing a rule that exempts or sets lesser               

                                                                                

9   standards for compliance by small businesses.                               

                                                                                

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

                                                                                

11  exempting or setting lesser standards of compliance for small               

                                                                                

12  businesses.                                                                 

                                                                                

13      (r) A statement describing the manner in which the agency                   

                                                                                

14  reduced the economic impact of the rule on small businesses or a            

                                                                                

15  statement describing the reasons such a reduction was not                   

                                                                                

16  feasible.                                                                   

                                                                                

17      (s) A statement describing whether and how the agency has                   

                                                                                

18  involved small businesses in the development of the rule.                   

                                                                                

19      (t) An estimate of the primary and direct benefits of the                   

                                                                                

20  rule.                                                                       

                                                                                

21      (u) An estimate of any cost reductions to businesses,                       

                                                                                

22  individuals, groups of individuals, or governmental units as a              

                                                                                

23  result of the rule.                                                         

                                                                                

24      (v) An estimate of any increase in revenues to state or local               

                                                                                

25  governmental units as a result of the rule.                                 

                                                                                

26      (w) An estimate of any secondary or indirect benefits of the                

                                                                                

27  rule.                                                                       


                                                                                

1       (x) An identification of the sources the agency relied upon                 

                                                                                

2   in compiling the regulatory impact statement.                               

                                                                                

3       (y) Any impact of the rule upon a farm operation under the                  

                                                                                

4   Michigan right to farm act, 1981 PA 93, MCL 286.471 to 286.474.             

                                                                                

5       (z)  (y)  Any other information required by the office of                   

                                                                                

6   regulatory reform.                                                          

                                                                                

7       (4) The agency shall electronically transmit the regulatory                 

                                                                                

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

                                                                                

9   regulatory reform at least 28 days before the public hearing                

                                                                                

10  required pursuant to section 42.  Before the public hearing can             

                                                                                

11  be held, the regulatory impact statement must be approved by the            

                                                                                

12  office of regulatory reform.  The agency shall also                         

                                                                                

13  electronically transmit a copy of the regulatory impact statement           

                                                                                

14  to the committee before the public hearing and the agency shall             

                                                                                

15  make copies available to the public at the public hearing.                  

                                                                                

16      (5) The committee shall electronically transmit to the senate               

                                                                                

17  fiscal agency and the house fiscal agency a copy of each rule and           

                                                                                

18  regulatory impact statement filed with the committee, as well as            

                                                                                

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

                                                                                

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

                                                                                

21  house fiscal agency shall analyze each proposed rule for possible           

                                                                                

22  fiscal implications that, if the rule were adopted, would result            

                                                                                

23  in additional appropriations in the current fiscal year or commit           

                                                                                

24  the legislature to an appropriation in a future fiscal year.  The           

                                                                                

25  senate fiscal agency and the house fiscal agency shall                      

                                                                                

26  electronically report their findings to the senate and house                

                                                                                

27  appropriations committees and to the committee before the date of           


                                                                                

1   consideration of the proposed rule by the committee.                        

                                                                                

2       (6) Subsections (2), (3), and (4) do not apply to a rule that               

                                                                                

3   is promulgated under sections 33, 44, and 48.