SENATE BILL No. 877 November 2, 1999, Introduced by Senators HAMMERSTROM, STEIL and NORTH and referred to the Committee on Government Operations. A bill to amend 1969 PA 306, entitled "Administrative procedures act of 1969," by amending the title and sections 5, 7, 7a, 8, 24, 25, 33, 36, 40, 41a, 42, 44, 45, 46, 47, 48, 52, 53, 55, 56, 57, 58, and 59 (MCL 24.205, 24.207, 24.207a, 24.208, 24.224, 24.225, 24.233, 24.236, 24.240, 24.241a, 24.242, 24.244, 24.245, 24.246, 24.247, 24.248, 24.252, 24.253, 24.255, 24.256, 24.257, 24.258, and 24.259), the title as amended by 1993 PA 7, sections 5, 24, 52, and 56 as amended by 1982 PA 413, section 7 as amended by 1996 PA 489, sections 7a, 40, and 53 as added by 1984 PA 273, sections 8 and 57 as amended by 1988 PA 333, sections 42, 44, 45, and 46 as amended by 1993 PA 141, sections 48, 55, and 58 as amended by 1986 PA 292, and section 59 as amended by 1995 PA 178, and by adding sections 28, 34, 39, 39a, 45a, and 54. 02270'99 * LBO 2 THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act to provide for the effect, processing, promulgation, 3 publication, and inspection of state agency rules, determina- 4 tions, and other matters; to provide for the printing, publish- 5 ing, and distribution ofthe Michigan registerCERTAIN 6 PUBLICATIONS; to provide for state agency administrative proce- 7 dures and contested cases and appeals from contested cases in 8 licensing and other matters; TO CREATE AND ESTABLISH CERTAIN COM- 9 MITTEES AND OFFICES; to provide for declaratory judgments as to 10 rules; to repeal certain acts and parts of acts; and to repeal 11 certain parts of this act on a specific date. 12 Sec. 5. (1) "License" includes the whole or part of an 13 agency permit, certificate, approval, registration, charter, or 14 similar form of permission required by law, but does not include 15 a license required solely for revenue purposes, or a license or 16 registration issued underAct No. 300 of the Public Acts of171949, as amended, being sections 257.1 to 257.923 of the Michigan18Compiled LawsTHE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 257.1 19 TO 257.923. 20 (2) "Licensing" includes agency activity involving the 21 grant, denial, renewal, suspension, revocation, annulment, with- 22 drawal, recall, cancellation, or amendment of a license. 23 (3) "Michigan register" means the publication described in 24 section 8. 02270'99 * 3 1 (4) "NOTICE OF OBJECTION" MEANS THE DOCUMENT ADOPTED BY THE 2 COMMITTEE THAT INDICATES THE COMMITTEE'S FORMAL OBJECTION TO A 3 PROPOSED RULE. 4 (5)(4)"Party" means a person or agency named, admitted, 5 or properly seeking and entitled of right to be admitted, as a 6 party in a contested case. 7 (6)(5)"Person" means an individual, partnership, associ- 8 ation, corporation, governmental subdivision, or public or pri- 9 vate organization of any kind other than the agency engaged in 10 the particular processing of a rule, declaratory ruling, or con- 11 tested case. 12 (7)(6)"Processing of a rule" means the action required 13 or authorized by this act regarding a rule which is to be promul- 14 gated, including the rule's adoption, and ending with the rule's 15 promulgation. 16 (8)(7)"Promulgation of a rule" means that step in the 17 processing of a rule consisting of the filing of a rule with the 18 secretary of state. 19 Sec. 7. "Rule" means an agency regulation, statement, stan- 20 dard, policy, ruling, or instruction of general applicability 21 that implements or applies law enforced or administered by the 22 agency, or that prescribes the organization, procedure, or prac- 23 tice of the agency, including the amendment, suspension, or 24 rescission of the law enforced or administered by the agency. 25 Rule does not include any of the following: 26 (a) A resolution or order of the state administrative 27 board. 02270'99 * 4 1 (b) A formal opinion of the attorney general. 2 (c) A rule or order establishing or fixing rates or 3 tariffs. 4 (d) A rule or order pertaining to game and fish and promul- 5 gated underpart 411 (protection and preservation of fish, game,6and birds)PARTS 401, 411, AND 487 of the natural resources and 7 environmental protection act,Act No. 451 of the Public Acts of81994, being sections 324.41101 to 324.41105 of the Michigan9Compiled Laws, part 487 (sport fishing) of Act No. 451 of the10Public Acts of 1994, being sections 324.48701 to 324.48740 of the11Michigan Compiled Laws, and part 401 (wildlife conservation) of12Act No. 451 of the Public Acts of 1994, being sections 324.4010113to 324.40119 of the Michigan Compiled Laws1994 PA 451, 14 MCL 324.40101 TO 324.40119, 324.41101 TO 324.41105, AND 324.48701 15 TO 324.48740. 16 (e) A rule relating to the use of streets or highways, the 17 substance of which is indicated to the public by means of signs 18 or signals. 19 (f) A determination, decision, or order in a contested 20 case. 21 (g) An intergovernmental, interagency, or intra-agency memo- 22 randum, directive, or communication that does not affect the 23 rights of, or procedures and practices available to, the public. 24 (h) A form with instructions, an interpretive statement, a 25 guideline, an informational pamphlet, or other material that in 26 itself does not have the force and effect of law but is merely 27 explanatory. 02270'99 * 5 1 (i) A declaratory ruling or other disposition of a 2 particular matter as applied to a specific set of facts 3 involved. 4 (j) A decision by an agency to exercise or not to exercise a 5 permissive statutory power, although private rights or interests 6 are affected. 7 (k) Unless another statute requires a rule to be promulgated 8 under this act, a rule or policy that only concerns the inmates 9 of a state correctional facility and does not directly affect 10 other members of the public, except that a rule that only con- 11 cerns inmates which was promulgated before December 4, 1986, 12 shall be considered a rule and shall remain in effect until 13 rescinded but shall not be amended. As used in this subdivision, 14 "state correctional facility" means a facility or institution 15 that houses an inmate population under the jurisdiction of the 16 department of corrections. 17 (l) All of the following, after final approval by the cer- 18 tificate of need commission or the statewide health coordinating 19 council under section 22215 or 22217 of the public health code, 20Act No. 368 of the Public Acts of 1978, being sections 333.2221521and 333.22217 of the Michigan Compiled Laws1978 PA 368, 22 MCL 333.22215 AND 333.22217: 23 (i) The designation, deletion, or revision of covered medi- 24 cal equipment and covered clinical services. 25 (ii) Certificate of need review standards. 26 (iii) Data reporting requirements and criteria for 27 determining health facility viability. 02270'99 * 6 1 (iv) Standards used by the department ofpublicCOMMUNITY 2 health in designating a regional certificate of need review 3 agency. 4 (v) The modification of the 100 licensed bed limitation for 5 short-term nursing care programs set forth in section 22210 of 6Act No. 368 of the Public Acts of 1978, being section 333.222107of the Michigan Compiled LawsTHE PUBLIC HEALTH CODE, 1978 8 PA 368, MCL 333.22210. 9 (m) A policy developed by the family independence agency 10 under section 6(3) of the social welfare act,Act No. 280 of the11Public Acts of 1939, being section 400.6 of the Michigan Compiled12Laws1939 PA 250, MCL 400.6, setting income and asset limits, 13 types of income and assets to be considered for eligibility, and 14 payment standards for administration of assistance programs under 15 that act. 16 (n) A policy developed by the family independence agency 17 under section 6(4) ofAct No. 280 of the Public Acts of 1939,18being section 400.6 of the Michigan Compiled LawsTHE SOCIAL 19 WELFARE ACT, 1939 PA 280, MCL 400.6, to implement requirements 20 that are mandated by federal statute or regulations as a condi- 21 tion of receipt of federal funds. 22(o) Until the expiration of 12 months after the effective23date of this subdivision, a regulation issued by the family inde-24pendence agency under section 6(2) of Act No. 280 of the Public25Acts of 1939 setting standards and policies for the administra-26tion of programs under that act. Upon the expiration of 1227months after the effective date of this subdivision, regulations02270'99 * 7 1described in this subdivision are not binding and effective2unless processed as emergency rules under section 48 or promul-3gated in accordance with this act. This subdivision does not4apply to policies permanently exempted under subdivisions (m) and5(n).6 (O)(p) Beginning on the effective date of the amendatory7act that added this subdivision and until 3 years after that8date, theTHE provisions of an agency's contract with a public 9 or private entity including, but not limited to, the provisions 10 of an agency's standard form contract. 11 (P) A POLICY DEVELOPED BY THE DEPARTMENT OF COMMUNITY HEALTH 12 UNDER THE AUTHORITY GRANTED IN SECTION 111A OF THE SOCIAL WELFARE 13 ACT, 1939 PA 280, MCL 400.111A, TO IMPLEMENT POLICIES AND PROCE- 14 DURES NECESSARY TO OPERATE ITS HEALTH CARE PROGRAMS IN ACCORDANCE 15 WITH AN APPROVED STATE PLAN OR IN COMPLIANCE WITH STATE STATUTE. 16 Sec. 7a.(1)"Small business" means a business concern 17 incorporated or doing business in this state, including the 18 affiliates of the business concern, which is independently owned 19 and operated and which employs fewer than 250 full-time employees 20 or which has gross annual sales of less than $6,000,000.00. 21(2) "Small business economic impact statement" means a22statement prepared by a state agency which meets the requirements23of section 45(3).24 Sec. 8. (1) Thelegislative service bureauOFFICE OF 25 REGULATORY REFORM shall publish the Michigan register AT LEAST 26 ONCE each month. The Michigan register shall contain all of the 27 following: 02270'99 * 8 1 (a) Executive orders and executive reorganization orders. 2 (b) On a cumulative basis, the numbers and subject matter of 3 the enrolled senate and house bills signed into law by the gover- 4 nor during the calendar year and the corresponding public act 5 numbers. 6 (c) On a cumulative basis, the numbers and subject matter of 7 the enrolled senate and house bills vetoed by the governor during 8 the calendar year. 9 (d) Proposed administrative rules. 10(e) Small business economic impact statements on proposed11rules as required by section 45.12 (E)(f)Notices of public hearings on proposed administra- 13 tive rules. 14 (F)(g)Administrative rules filed with the secretary of 15 state. 16 (G)(h)Emergency rules filed with the secretary of 17 state. 18 (H)(i)Notice of proposed and adopted agency guidelines. 19 (I)(j)Other official information considered necessary or 20 appropriate by thelegislative service bureauOFFICE OF REGULA- 21 TORY REFORM. 22 (J)(k)Attorney general opinions. 23 (K)(l)All of the items listed in section 7(l) after 24 final approval by the certificate of need commission or the 25 statewide health coordinating council under section 22215 or 26 22217 of the public health code,Act No. 368 of the Public Acts02270'99 * 9 1of 1978, being sections 333.22215 and 333.22217 of the Michigan2Compiled Laws1978 PA 368, MCL 333.22215 AND 333.22217. 3 (2) Thelegislative service bureauOFFICE OF REGULATORY 4 REFORM shall publish a cumulative index for the Michigan 5 register. 6 (3) The Michigan register shall be available for public sub- 7 scription at a fee reasonably calculated to cover publication and 8 distribution costs. 9 (4) If publication of an agency's proposed rule,OR 10 guideline, or small business economic impact statementor an 11 item described in subsection(1)(l)(1)(K) would be unreason- 12 ably expensive or lengthy, thelegislative service bureau13 OFFICE OF REGULATORY REFORM may publish a brief synopsis of the 14 proposed rule,OR guideline, small business impact15statement,or item described in subsection(1)(l)(1)(K), 16 including information on how to obtain a complete copy of the 17 proposed rule,OR guideline, small business impact18statement,or item described in subsection(1)(l)(1)(K) from 19 the agency at no cost. 20 (5) An agency shall transmit a copy of thesmall business21economic impact statement, together with the applicableproposed 22 rules and notice of public hearing,to thelegislative serv-23ice bureauOFFICE OF REGULATORY REFORM for publication in the 24 Michigan register. 25 Sec. 24. (1) Before the adoption of a guideline, an agency 26 shall give notice of the proposed guideline to thejoint27 committee,on administrative rules, the legislative service02270'99 * 10 1bureau,the office ofthe governorREGULATORY REFORM, and each 2 person who requested the agency in writing for advance notice of 3 proposed action which may affect the person. THE COMMITTEE SHALL 4 PROVIDE THE NOTICE OF THE PROPOSED GUIDELINE TO MEMBERS OF THE 5 COMMITTEE AND TO MEMBERS OF THE STANDING COMMITTEES OF THE SENATE 6 AND HOUSE OF REPRESENTATIVES THAT DEAL WITH THE SUBJECT MATTER OF 7 THE PROPOSED GUIDELINE. The notice shall be given by mail, in 8 writing, to the last address specified by the person. A request 9 for notice is renewable each December. 10 (2) The notice required by subsection (1) shall include all 11 of the following: 12 (a) A statement of the terms or substance of the proposed 13 guideline, a description of the subjects and issues involved, and 14 the proposed effective date of the guideline. 15 (b) A statement that the addressee may express any views or 16 arguments regarding the proposed guideline or the guideline's 17 effect on a person. 18 (c) The address to which written comments may be sent and 19 the date by which comments shall be mailed, which date shall not 20 be less than6035 days from the date of the mailing of the 21 notice. 22 (d) A reference to the specific statutory provision about 23 which the proposed guideline states a policy. 24 Sec. 25. When adopted, a guideline is a public record. 25 Copies of guidelines shall be sent to thejointcommittee,on26administrative rules, the legislative service bureau,the office 27 ofthe governorREGULATORY REFORM, and all persons who have 02270'99 * 11 1 requested the agency in writing for advance notice of proposed 2 action which may affect them. 3 SEC. 28. (1) BEFORE THE ADOPTION OF A STANDARD FORM CON- 4 TRACT THAT WOULD HAVE BEEN CONSIDERED A RULE BUT FOR THE EXEMP- 5 TION FROM RULEMAKING UNDER SECTION 7(O) OR A POLICY EXEMPT FROM 6 RULEMAKING UNDER SECTION 7(P), AN AGENCY SHALL GIVE NOTICE OF THE 7 PROPOSED STANDARD FORM CONTRACT OR POLICY TO THE COMMITTEE AND 8 THE OFFICE OF REGULATORY REFORM. THE COMMITTEE SHALL PROVIDE A 9 COPY OF THE NOTICE TO MEMBERS OF THE COMMITTEE AND TO MEMBERS OF 10 THE STANDING COMMITTEES OF THE SENATE AND HOUSE OF REPRESENTA- 11 TIVES THAT DEAL WITH THE SUBJECT MATTER OF THE PROPOSED STANDARD 12 FORM CONTRACT OR POLICY. 13 (2) THE NOTICE REQUIRED BY SUBSECTION (1) SHALL INCLUDE ALL 14 OF THE FOLLOWING: 15 (A) A STATEMENT OF THE TERMS OF SUBSTANCE OF THE PROPOSED 16 STANDARD FORM CONTRACT OR POLICY, A DESCRIPTION OF THE SUBJECTS 17 AND ISSUES INVOLVED, AND THE PROPOSED EFFECTIVE DATE OF THE STAN- 18 DARD FORM CONTRACT OR POLICY. 19 (B) A STATEMENT THAT THE ADDRESSEE MAY EXPRESS ANY VIEWS OR 20 ARGUMENTS REGARDING THE PROPOSED STANDARD FORM CONTRACT OR POLICY 21 OR THE STANDARD FORM CONTRACT'S OR POLICY'S EFFECT ON A PERSON. 22 (C) THE ADDRESS TO WHICH COMMENTS MAY BE SENT AND THE DATE 23 BY WHICH THE COMMENTS SHALL BE MAILED, WHICH DATE SHALL NOT BE 24 LESS THAN 35 DAYS FROM THE DATE OF THE MAILING OF THE NOTICE. 25 (D) A REFERENCE TO THE SPECIFIC STATUTORY PROVISION UNDER 26 WHICH THE STANDARD FORM CONTRACT OR POLICY IS ISSUED. 02270'99 * 12 1 (3) IF THE VALUE OF A PROPOSED STANDARD FORM CONTRACT EXEMPT 2 FROM RULEMAKING UNDER SECTION 7(O) IS $10,000,000.00 OR MORE, THE 3 NOTICE REQUIRED UNDER SUBSECTION (1) SHALL INCLUDE A COPY OF THE 4 PROPOSED STANDARD FORM CONTRACT. IF THE VALUE OF THE PROPOSED 5 STANDARD FORM CONTRACT EXEMPT FROM RULEMAKING UNDER SECTION 7(O) 6 IS LESS THAN $10,000,000.00, THE DEPARTMENT SHALL PROVIDE A COPY 7 OF THE PROPOSED STANDARD FORM CONTRACT OR POLICY TO ANY LEGISLA- 8 TOR REQUESTING A COPY. 9 Sec. 33. (1) An agency shall promulgate rules describing 10 its organization and stating the general course and method of its 11 operations and may include therein forms with instructions. 12 Sections 41,and42, 45, AND 45A do not apply to such rules. 13 (2) An agency shall promulgate rules prescribing its proce- 14 dures available to the public and the methods by which the public 15 may obtain information and submit requests. 16 (3) An agency may promulgate rules,not inconsistent with 17 this act or other applicable statutes,prescribing procedures 18 for contested cases. 19 SEC. 34. (1) THE OFFICE OF REGULATORY REFORM IS AN INDEPEN- 20 DENT AND AUTONOMOUS TYPE 1 AGENCY WITHIN THE DEPARTMENT OF MAN- 21 AGEMENT AND BUDGET. THE OFFICE OF REGULATORY REFORM HAS THE 22 POWERS AND DUTIES AS SET FORTH IN EXECUTIVE ORDER NO. 1995-6 AND 23 SHALL EXERCISE THE POWERS AND PERFORM THE DUTIES PRESCRIBED BY 24 SUBSECTION (2) INDEPENDENTLY OF THE PRINCIPAL EXECUTIVE DEPART- 25 MENTS OF THIS STATE, INCLUDING, BUT NOT LIMITED TO, PERSONNEL, 26 BUDGETING, PROCUREMENT, AND MANAGEMENT-RELATED FUNCTIONS. 02270'99 * 13 1 (2) IN ADDITION TO ANY OTHER POWERS AND DUTIES DESCRIBED IN 2 SUBSECTION (1), THE OFFICE OF REGULATORY REFORM SHALL REVIEW 3 PROPOSED RULES, COORDINATE PROCESSING OF RULES BY AGENCIES, WORK 4 WITH THE AGENCIES TO STREAMLINE THE RULE-MAKING PROCESS, AND CON- 5 SIDER EFFORTS DESIGNED TO IMPROVE PUBLIC ACCESS TO THE 6 RULE-MAKING PROCESS. 7 Sec. 36. Thejoint committee on administrative rules8 OFFICE OF REGULATORY REFORM may prescribe procedures and stan- 9 dards not inconsistent with this act or other applicable statutes 10,for the drafting, processing,OF RULES, publication OF 11 REQUIRED NOTICES, and distribution of rules. THE OFFICE OF REGU- 12 LATORY REFORM MAY PRESCRIBE PROCEDURES AND STANDARDS NOT INCON- 13 SISTENT WITH THIS ACT OR OTHER APPLICABLE STATUTES FOR THE PRO- 14 CESSING OF RULES WITHIN THE EXECUTIVE BRANCH. The procedures and 15 standards shall be included in a manual which thelegislative16service bureauOFFICE OF REGULATORY REFORM shall publish and 17 distribute in reasonable quantities to the state departments AND 18 THE COMMITTEE. 19 SEC. 39. (1) BEFORE INITIATING ANY CHANGES OR ADDITIONS TO 20 RULES, AN AGENCY SHALL FILE WITH THE OFFICE OF REGULATORY REFORM 21 A REQUEST FOR RULE-MAKING ON A FORM PRESCRIBED BY THE OFFICE OF 22 REGULATORY REFORM. THE REQUEST FOR RULE-MAKING SHALL INCLUDE THE 23 FOLLOWING: 24 (A) THE STATE OR FEDERAL STATUTORY OR REGULATORY BASIS FOR 25 THE RULE. 26 (B) THE PROBLEM THE RULE INTENDS TO ADDRESS. 02270'99 * 14 1 (C) AN ASSESSMENT OF THE SIGNIFICANCE OF THE PROBLEM. 2 (2) AN AGENCY SHALL NOT PROCEED WITH THE PROCESSING OF A 3 RULE OUTLINED IN THIS CHAPTER UNLESS THE OFFICE OF REGULATORY 4 REFORM HAS APPROVED THE REQUEST FOR RULE-MAKING. 5 (3) THE OFFICE OF REGULATORY REFORM SHALL RECORD THE RECEIPT 6 OF ALL REQUESTS FOR RULE-MAKING ON THE INTERNET AND SHALL MAKE 7 COPIES OF APPROVED REQUESTS FOR RULE-MAKING AVAILABLE TO MEMBERS 8 OF THE GENERAL PUBLIC UPON REQUEST. 9 (4) THE OFFICE OF REGULATORY REFORM SHALL IMMEDIATELY MAKE 10 AVAILABLE TO THE COMMITTEE COPIES OF THE REQUEST FOR RULE-MAKING 11 APPROVED BY THE OFFICE OF REGULATORY REFORM. THE COMMITTEE SHALL 12 PROVIDE A COPY OF THE APPROVED REQUEST FOR RULE-MAKING TO MEMBERS 13 OF THE COMMITTEE AND TO MEMBERS OF THE STANDING COMMITTEES OF THE 14 SENATE AND HOUSE OF REPRESENTATIVES THAT DEAL WITH THE SUBJECT 15 MATTER OF THE PROPOSED RULE. 16 SEC. 39A. (1) AN AGENCY MAY PUBLISH THE NOTICE OF HEARING 17 UNDER SECTION 42 ONLY IF THE OFFICE OF REGULATORY REFORM HAS 18 RECEIVED DRAFT PROPOSED RULES AND HAS GIVEN THE AGENCY APPROVAL 19 TO PROCEED WITH A PUBLIC HEARING. 20 (2) AFTER A GRANT OF APPROVAL TO HOLD A PUBLIC HEARING BY 21 THE OFFICE OF REGULATORY REFORM UNDER SUBSECTION (1), THE OFFICE 22 OF REGULATORY REFORM SHALL IMMEDIATELY PROVIDE A COPY OF THE PRO- 23 POSED RULES TO THE COMMITTEE. THE COMMITTEE SHALL PROVIDE A COPY 24 OF THE PROPOSED RULES TO MEMBERS OF THE COMMITTEE AND TO MEMBERS 25 OF THE STANDING COMMITTEES OF THE SENATE AND HOUSE OF REPRESENTA- 26 TIVES THAT DEAL WITH THE SUBJECT MATTER OF THE PROPOSED RULE. 02270'99 * 15 1 Sec. 40. (1) When an agency proposes to adopt a rule 2whichTHAT will apply to a small business,andthe small3business economic impact statement discloses thatthe rule will 4 have a disproportionate impact on small businesses because of the 5 size of those businesses, the agency proposing to adopt the rule 6 shall reduce the economic impact of the rule on small businesses 7 by doing 1 or more of the following when it is lawful and feasi- 8 ble in meeting the objectives of the act authorizing the promul- 9 gation of the rule: 10 (a) Establish differing compliance or reporting requirements 11 or timetables for small businesses under the rule. 12 (b) Consolidate or simplify the compliance and reporting 13 requirements for small businesses under the rule. 14 (c) Establish performance rather than design standards, when 15 appropriate. 16 (d) Exempt small businesses from any or all of the require- 17 ments of the rule. 18 (2) If appropriate in reducing the disproportionate economic 19 impact on small business of a rule as provided in subsection (1), 20 an agency may use the following classifications of small 21 business: 22 (a) 0-9 full-time employees. 23 (b) 10-49 full-time employees. 24 (c) 50-249 full-time employees. 25 (3) For purposes of subsection (2), an agency may include a 26 small business with a greater number of full-time employees in a 02270'99 * 16 1 classification that applies to a business with fewer full-time 2 employees. 3 (4) This section and section 45(3)shallDO not apply to a 4 rule which is required by federal law and which an agency promul- 5 gates without imposing standards more stringent than those 6 required by the federal law. 7 Sec. 41a. A member of the legislature may annually submit a 8 written request to thelegislative service bureauOFFICE OF 9 REGULATORY REFORM requesting that a copy of all proposed rules or 10 changes in rules, or any designated proposed rules or changes in 11 rules submitted to thelegislative service bureauOFFICE OF 12 REGULATORY REFORM for its approval, be transmitted to the 13 requesting member upon receipt of the same by thelegislative14service bureauOFFICE OF REGULATORY REFORM. 15 Sec. 42. (1) Except as provided in section 44, at a mini- 16 mum, an agency shall publish the notice of public hearing as pre- 17 scribed in any applicable statute,or, if none, the agency 18 shall publish the notice not less than 10 days and not more than 19 60 days before the date of the public hearing in at least 3 news- 20 papers of general circulation in different parts of the state, 1 21 of which shall be in the Upper Peninsula. 22 (2) Additional methods that may be employed by the agency, 23 depending upon the circumstances, include publication in trade, 24 industry, governmental, or professional publications. 25 (3) In addition to the requirements of subsection (1), the 26 agency shall submit a copy of the notice OF PUBLIC HEARING to the 27legislative service bureauOFFICE OF REGULATORY REFORM for 02270'99 * 17 1 publication in the Michigan register. An agency's notice shall 2 be published in the Michigan registernot less than 30 days and3not more than 90 daysbefore the public hearing AND THE AGENCY 4 SHALL FILE A COPY OF THE NOTICE OF PUBLIC HEARING WITH THE OFFICE 5 OF REGULATORY REFORM. WITHIN 7 DAYS AFTER RECEIPT OF THE NOTICE 6 OF PUBLIC HEARING, THE OFFICE OF REGULATORY REFORM SHALL DO ALL 7 OF THE FOLLOWING BEFORE THE PUBLIC HEARING: 8 (A) FORWARD A COPY OF THE NOTICE OF PUBLIC HEARING TO THE 9 COMMITTEE. 10 (B) PROVIDE NOTICE ELECTRONICALLY THROUGH PUBLICLY ACCESSI- 11 BLE INTERNET MEDIA. 12 (4) AFTER THE OFFICE OF REGULATORY REFORM FORWARDS A COPY OF 13 THE NOTICE OF PUBLIC HEARING TO THE COMMITTEE, THE COMMITTEE 14 SHALL SEND COPIES OF THE NOTICE OF PUBLIC HEARING TO EACH MEMBER 15 OF THE COMMITTEE AND TO THE MEMBERS OF THE STANDING COMMITTEES OF 16 THE SENATE AND HOUSE OF REPRESENTATIVES THAT DEAL WITH THE 17 SUBJECT MATTER OF THE PROPOSED RULE. 18 (5) AFTER RECEIPT OF THE NOTICE OF PUBLIC HEARING FILED 19 UNDER SUBSECTION (3), THE COMMITTEE MAY MEET TO CONSIDER THE PRO- 20 POSED RULE, TAKE TESTIMONY, AND PROVIDE THE AGENCY WITH THE 21 COMMITTEE'S INFORMAL RESPONSE TO THE RULE. 22 Sec. 44. (1) Sections 41 and 42 do not apply to an amend- 23 ment or rescission of a rule that is obsolete or superseded, or 24 that is required to make obviously needed corrections to make the 25 rule conform to an amended or new statute or to accomplish any 26 other solely formal purpose, if a statement to that effect is 02270'99 * 18 1 included in the legislative service bureau certificate of 2 approval of the rule. 3 (2) Sections 41 and 42 do not apply to a rule that is 4 promulgated under the Michigan occupational safety and health 5 act,Act No. 154 of the Public Acts of 1974, being sections6408.1001 to 408.1094 of the Michigan Compiled Laws1974 PA 154, 7 MCL 408.1001 TO 408.1094, that is substantially similar to an 8 existing federal standard that has been adopted or promulgated 9 under the occupational safety and health act of 1970, Public Law 10 91-596, 84 Stat. 1590. However, notice of the proposed rule 11 shall be published in the Michigan register at least6035 days 12 before the submission of the rule to the secretary of state pur- 13 suant to section 46(4). A reasonable period, not to exceed3014 21 days, shall be provided for the submission of written comments 15 and views following publication in the Michigan register. 16 (3) For purposes of subsection (2), "substantially similar" 17 means identical, with the exception of style or format differ- 18 ences needed to conform to this or other state laws, as deter- 19 mined by thedepartment of attorney generalOFFICE OF REGULA- 20 TORY REFORM pursuant to section 45(1). 21 Sec. 45. (1) IF APPROVED BY THE OFFICE OF REGULATORY 22 REFORM, THE AGENCY MAY SUBMIT THE PROPOSED RULE TO THE LEGISLA- 23 TIVE SERVICE BUREAU FOR ITS FORMAL CERTIFICATION. The legislative 24 service bureau promptly shall approve a proposed rule ifthe25legislative service bureauIT considers the proposed rule to be 26 proper as to all matters of form, classification, AND 27 arrangement.and numbering.Thedepartment of attorney general02270'99 * 19 1promptly shallOFFICE OF REGULATORY REFORM MAY approve a 2 proposed rule ifthe departmentIT considers the proposed rule 3 to be legal. 4 (2) Except as provided in subsection(13)(6), after 5publication of the proposed rule in the Michigan register and6afternotice is given as provided in this act and before the 7 agency proposing the rule has formally adopted the rule, the 8 agency SHALL PREPARE AN AGENCY REPORT CONTAINING A SYNOPSIS OF 9 THE COMMENTS CONTAINED IN THE PUBLIC HEARING RECORD AND SHALL 10 DESCRIBE ANY CHANGES IN THE PROPOSED RULES THAT WERE MADE BY THE 11 AGENCY AFTER THE PUBLIC HEARING. THE OFFICE OF REGULATORY REFORM 12 shall transmit by letter to the committee copies of the rule, 13bearingTHE AGENCY REPORTS, AND certificates of approval from 14 the legislative service bureau and thedepartment of attorney15general and copies of the rule without certificatesOFFICE OF 16 REGULATORY REFORM. THE NUMBER OF COPIES TRANSMITTED SHALL BE THE 17 NUMBER REQUIRED IN THE COMMITTEE PROCEDURES AND STANDARDS BUT NOT 18 TO EXCEED 12 COPIES. The agencytransmittalshallbe received19byTRANSMIT TO the committee THE DOCUMENTS DESCRIBED IN THIS 20 SUBSECTION within2 years1 YEAR after the date of the last 21 public hearing on the proposed rule unless the proposed rule is a 22 resubmission undersubsection (11)SECTION 45A(7).The23 (3) EXCEPT FOR A RULE PROMULGATED UNDER SECTIONS 33, 44, AND 24 48, THE agency shall PREPARE AND include with the letter of 25 transmittal a regulatory impact statementon a 1-page form pro-26vided by the committee. The statement shall provide estimates of02270'99 * 20 1the impact of the proposed rules uponCONTAINING all of the 2 following INFORMATION: 3(a) The revenues, expenditures, and paper work requirements4of the agency proposing the rule.5(b) The revenues and expenditures of any other state or6local government agency affected by the proposed rule.7(c) The taxpayers, consumers, industry or trade groups,8small business, or other applicable groups affected by the pro-9posed rule.10(3) Except as provided in subsection (13) and section 40(4),11if the regulatory impact statement discloses an impact on small12businesses, the agency shall include with the letter of transmit-13tal a small business economic impact statement in a form pre-14scribed by the committee. A small business economic impact15statement shall contain all of the following with respect to the16proposed rules:17(a) The nature of any reports and the estimated cost of18their preparation by small businesses that would be required to19comply with the proposed rules.20(b) An analysis of the costs of compliance for all small21businesses affected by the proposed rules, including costs of22equipment, supplies, labor, and increased administrative costs.23(c) The nature and estimated cost of any legal, consulting,24and accounting services that small businesses would incur in com-25plying with the proposed rules.02270'99 * 21 1(d) A statement regarding whether the proposed rules will2have a disproportionate impact on small businesses because of the3size of those businesses.4(e) The ability of small businesses to absorb the costs5estimated under subdivisions (a) to (c) without suffering eco-6nomic harm and without adversely affecting competition in the7marketplace.8(f) The cost, if any, to the agency of administering or9enforcing a rule that exempts or sets lesser standards for com-10pliance by small businesses.11(g) The impact on the public interest of exempting or set-12ting lesser standards of compliance for small businesses.13(h) A statement regarding the manner in which the agency14reduced the economic impact of the rule on small businesses as15required under section 40, or a statement regarding the reasons16such a reduction was not feasible.17(i) A statement regarding whether and how the agency has18involved small businesses in the development of the rule.19(4) In order to obtain cost information for purposes of sub-20section (3), an agency may survey a representative sample of21affected small businesses or trade associations or may adopt any22other means considered appropriate by the agency.23(5) The agency shall transmit a copy of the small business24economic impact statement to the director of commerce at the same25time as required in subsection (3) for transmittal to the26committee. The director of commerce shall review the statement02270'99 * 22 1and within 30 days after receipt shall notify the committee of2any additional information pertinent to the committee's review.3(6) After receipt by the committee of the agency's letter of4transmittal, the committee has 2 months in which to consider the5rule. If the committee by a majority vote determines that added6time is needed to consider proposed rules, the committee may7extend the time it has to consider a particular proposed rule by81 month to a total of not longer than 3 months. This subsection,9subsections (2) to (5), and subsections (7) to (12) do not apply10to an emergency rule.11 (A) A COMPARISON OF THE PROPOSED RULE TO PARALLEL FEDERAL 12 RULES OR STANDARDS SET BY A STATE OR NATIONAL LICENSING AGENCY OR 13 ACCREDITATION ASSOCIATION, IF ANY EXIST. 14 (B) AN IDENTIFICATION OF THE BEHAVIOR AND FREQUENCY OF 15 BEHAVIOR THAT THE RULE IS DESIGNED TO ALTER. 16 (C) AN IDENTIFICATION OF THE HARM RESULTING FROM THE BEHAV- 17 IOR THAT THE RULE IS DESIGNED TO ALTER AND THE LIKELIHOOD THAT 18 THE HARM WILL OCCUR IN THE ABSENCE OF THE RULE. 19 (D) AN ESTIMATE OF THE CHANGE IN THE FREQUENCY OF THE TAR- 20 GETED BEHAVIOR EXPECTED FROM THE RULE. 21 (E) AN IDENTIFICATION OF THE BUSINESSES, GROUPS, OR INDIVID- 22 UALS WHO WILL BE DIRECTLY AFFECTED BY, BEAR THE COST OF, OR 23 DIRECTLY BENEFIT FROM THE RULE. 24 (F) AN IDENTIFICATION OF ANY REASONABLE ALTERNATIVES TO REG- 25 ULATION PURSUANT TO THE PROPOSED RULE THAT WOULD ACHIEVE THE SAME 26 OR SIMILAR GOALS. 02270'99 * 23 1 (G) A DISCUSSION OF THE FEASIBILITY OF ESTABLISHING A 2 REGULATORY PROGRAM SIMILAR TO THAT PROPOSED IN THE RULE THAT 3 WOULD OPERATE THROUGH MARKET-BASED MECHANISMS. 4 (H) AN ESTIMATE OF THE COST OF RULE IMPOSITION ON THE AGENCY 5 PROMULGATING THE RULE. 6 (I) AN ESTIMATE OF THE ACTUAL STATEWIDE COMPLIANCE COSTS OF 7 THE PROPOSED RULE ON INDIVIDUALS. 8 (J) AN ESTIMATE OF THE ACTUAL STATEWIDE COMPLIANCE COSTS OF 9 THE PROPOSED RULE ON BUSINESSES AND OTHER GROUPS. 10 (K) AN IDENTIFICATION OF ANY DISPROPORTIONATE IMPACT THE 11 PROPOSED RULE MAY HAVE ON SMALL BUSINESSES BECAUSE OF THEIR 12 SIZE. 13 (l) AN IDENTIFICATION OF THE NATURE OF ANY REPORT AND THE 14 ESTIMATED COST OF ITS PREPARATION BY SMALL BUSINESS REQUIRED TO 15 COMPLY WITH THE PROPOSED RULE. 16 (M) AN ANALYSIS OF THE COSTS OF COMPLIANCE FOR ALL SMALL 17 BUSINESSES AFFECTED BY THE PROPOSED RULE, INCLUDING COSTS OF 18 EQUIPMENT, SUPPLIES, LABOR, AND INCREASED ADMINISTRATIVE COSTS. 19 (N) AN IDENTIFICATION OF THE NATURE AND ESTIMATED COST OF 20 ANY LEGAL CONSULTING AND ACCOUNTING SERVICES THAT SMALL BUSI- 21 NESSES WOULD INCUR IN COMPLYING WITH THE PROPOSED RULE. 22 (O) AN ESTIMATE OF THE ABILITY OF SMALL BUSINESSES TO ABSORB 23 THE COSTS ESTIMATED UNDER SUBDIVISIONS (l) THROUGH (N) WITHOUT 24 SUFFERING ECONOMIC HARM AND WITHOUT ADVERSELY AFFECTING COMPETI- 25 TION IN THE MARKETPLACE. 02270'99 * 24 1 (P) AN ESTIMATE OF THE COST, IF ANY, TO THE AGENCY OF 2 ADMINISTERING OR ENFORCING A RULE THAT EXEMPTS OR SETS LESSER 3 STANDARDS FOR COMPLIANCE BY SMALL BUSINESSES. 4 (Q) AN IDENTIFICATION OF THE IMPACT ON THE PUBLIC INTEREST 5 OF EXEMPTING OR SETTING LESSER STANDARDS OF COMPLIANCE FOR SMALL 6 BUSINESSES. 7 (R) A STATEMENT DESCRIBING THE MANNER IN WHICH THE AGENCY 8 REDUCED THE ECONOMIC IMPACT OF THE RULE ON SMALL BUSINESSES OR A 9 STATEMENT DESCRIBING THE REASONS SUCH A REDUCTION WAS NOT 10 FEASIBLE. 11 (S) A STATEMENT DESCRIBING WHETHER AND HOW THE AGENCY HAS 12 INVOLVED SMALL BUSINESSES IN THE DEVELOPMENT OF THE RULE. 13 (T) AN ESTIMATE OF THE PRIMARY AND DIRECT BENEFITS OF THE 14 RULE. 15 (U) AN ESTIMATE OF ANY COST REDUCTIONS TO BUSINESSES, INDI- 16 VIDUALS, GROUPS OF INDIVIDUALS, OR GOVERNMENTAL UNITS AS A RESULT 17 OF THE RULE. 18 (V) AN ESTIMATE OF ANY INCREASE IN REVENUES TO STATE OR 19 LOCAL GOVERNMENTAL UNITS AS A RESULT OF THE RULE. 20 (W) AN ESTIMATE OF ANY SECONDARY OR INDIRECT BENEFITS OF THE 21 RULE. 22 (X) AN IDENTIFICATION OF THE SOURCES THE AGENCY RELIED UPON 23 IN COMPILING THE REGULATORY IMPACT STATEMENT. 24 (Y) ANY OTHER INFORMATION REQUIRED BY THE OFFICE OF REGULA- 25 TORY REFORM. 26 (4) THE AGENCY SHALL TRANSMIT THE REGULATORY IMPACT 27 STATEMENT REQUIRED UNDER SUBSECTION (3) TO THE OFFICE OF 02270'99 * 25 1 REGULATORY REFORM AT LEAST 28 DAYS BEFORE THE PUBLIC HEARING 2 REQUIRED PURSUANT TO SECTION 42. BEFORE THE PUBLIC HEARING CAN 3 BE HELD, THE REGULATORY IMPACT STATEMENT MUST BE APPROVED BY THE 4 OFFICE OF REGULATORY REFORM. THE AGENCY SHALL ALSO TRANSMIT A 5 COPY OF THE REGULATORY IMPACT STATEMENT TO THE COMMITTEE BEFORE 6 THE PUBLIC HEARING AND THE AGENCY SHALL MAKE COPIES AVAILABLE TO 7 THE PUBLIC AT THE PUBLIC HEARING. 8 (5)(7)The committee shall furnish the senate fiscal 9 agency and the house fiscal agency with a copy of each rule and 10 regulatory impact statement filed with the committee, as well as 11 a copy of the agenda identifying the proposed rules to be consid- 12 ered by the committee. The senate fiscal agency and the house 13 fiscal agency shall analyze each proposed rule for possible 14 fiscal implications which, if adopted, would result in additional 15 appropriations in the current fiscal year or commit the legisla- 16 ture to an appropriation in a future fiscal year. The senate 17 fiscal agency and the house fiscal agency shall report their 18 findings in writing to the senate and house appropriations com- 19 mittees and to the committee before the date of consideration of 20 the proposed rule by the committee. 21(8) If the committee approves the proposed rule within the22time period provided by subsection (6), the committee shall23attach a certificate of its approval to all copies of the rule24bearing certificates except 1 and transmit those copies to the25agency.26(9) If, within the time period provided by subsection (6),27the committee disapproves the proposed rule or the committee02270'99 * 26 1chairperson certifies an impasse after votes for approval and2disapproval have failed to receive concurrent majorities, the3committee shall immediately report that fact to the legislature4and return the rule to the agency. The agency shall not adopt or5promulgate the rule unless 1 of the following occurs:6(a) The legislature adopts a concurrent resolution approving7the rule within 60 days after the committee report has been8received by, and read into the respective journal of, each9house.10(b) The committee subsequently approves the rule.11(10) If the time permitted by this section expires and the12committee has not taken action under either subsection (8) or13(9), then the committee shall return the proposed rules to the14agency. The chairperson and alternate chairperson shall cause15concurrent resolutions approving the rule to be introduced in16both houses of the legislature simultaneously. Each house of the17legislature shall place the concurrent resolution directly on its18calendar. The agency shall not adopt or promulgate the rule19unless 1 of the following occurs:20(a) The legislature adopts a concurrent resolution approving21the rule within 60 days after introduction by record roll call22vote. The adoption of the concurrent resolution requires a23majority of the members elected to and serving in each house of24the legislature.25(b) The agency resubmits the proposed rule to the committee26and the committee approves the rule within the time permitted by27this section.02270'99 * 27 1(11) An agency may withdraw a proposed rule by leave of the2committee. An agency may resubmit a rule so withdrawn or3returned under subsection (9) with changes following a committee4meeting on the proposed rule or with minor modifications. A5resubmitted rule is a new filing and subject to this section, but6is not subject to further notice and hearing as provided in sec-7tions 41 and 42.8(12) If the committee approves the proposed rule within the9time period provided by subsection (6), or the legislature adopts10a concurrent resolution approving the rule, the agency, if it11wishes to proceed, shall formally adopt the rule pursuant to any12applicable statute and make a written record of the adoption.13Certificates of approval and adoption shall be attached to at14least 6 copies of the rule.15 (6)(13)Subsections (2),through (12)(3), AND (4) do 16 not apply to a rule that is promulgated underthe Michigan occu-17pational safety and health act, Act No. 154 of the Public Acts of181974, being sections 408.1001 to 408.1094 of the Michigan19Compiled Laws, that is substantially similar to an existing fed-20eral standard that has been adopted or promulgated under the21occupational safety and health act of 1970, Public Law 91-596, 8422Stat. 1590SECTIONS 33, 44, AND 48. 23 SEC. 45A. (1) EXCEPT AS OTHERWISE PROVIDED FOR IN SUBSEC- 24 TIONS (7) AND (8), AFTER RECEIPT BY THE COMMITTEE OF THE LETTER 25 OF TRANSMITTAL SPECIFIED IN SECTION 45(2), THE COMMITTEE HAS 21 26 CALENDAR DAYS IN WHICH TO CONSIDER THE RULE AND TO OBJECT TO THE 27 RULE BY FILING A NOTICE OF OBJECTION APPROVED BY A CONCURRENT 02270'99 * 28 1 MAJORITY OF THE COMMITTEE MEMBERS. A NOTICE OF OBJECTION MAY 2 ONLY BE APPROVED BY THE COMMITTEE IF THE COMMITTEE AFFIRMATIVELY 3 DETERMINES BY A CONCURRENT MAJORITY THAT 1 OR MORE OF THE FOLLOW- 4 ING CONDITIONS EXIST: 5 (A) THE AGENCY LACKS STATUTORY AUTHORITY FOR THE RULE. 6 (B) THE AGENCY IS EXCEEDING THE STATUTORY SCOPE OF ITS 7 RULE-MAKING AUTHORITY. 8 (C) THERE EXISTS AN EMERGENCY RELATING TO THE PUBLIC HEALTH, 9 SAFETY, AND WELFARE THAT WOULD WARRANT DISAPPROVAL OF THE RULE. 10 (D) THE RULE IS IN CONFLICT WITH STATE LAW. 11 (E) A SUBSTANTIAL CHANGE IN CIRCUMSTANCES HAS OCCURRED SINCE 12 ENACTMENT OF THE LAW UPON WHICH THE PROPOSED RULE IS BASED. 13 (F) THE RULE IS ARBITRARY OR CAPRICIOUS. 14 (G) THE RULE IS UNDULY BURDENSOME TO THE PUBLIC OR TO A 15 LICENSEE LICENSED BY THE RULE. 16 (2) IF THE COMMITTEE DOES NOT FILE A NOTICE OF OBJECTION 17 WITHIN THE TIME PERIOD PRESCRIBED IN SUBSECTION (1), THE OFFICE 18 OF REGULATORY REFORM MAY IMMEDIATELY FILE THE RULE WITH THE SEC- 19 RETARY OF STATE. THE RULE SHALL TAKE EFFECT 7 DAYS AFTER THE 20 DATE OF ITS FILING UNLESS A LATER DATE IS INDICATED WITHIN THE 21 RULE. 22 (3) IF THE COMMITTEE FILES A NOTICE OF OBJECTION WITHIN THE 23 TIME PERIOD PRESCRIBED IN SUBSECTION (1), THE COMMITTEE CHAIR AND 24 ALTERNATE CHAIR SHALL CAUSE BILLS TO BE INTRODUCED IN BOTH HOUSES 25 OF THE LEGISLATURE SIMULTANEOUSLY. EACH HOUSE SHALL PLACE THE 26 BILLS DIRECTLY ON ITS CALENDAR. THE BILLS SHALL CONTAIN 1 OR 27 MORE OF THE FOLLOWING: 02270'99 * 29 1 (A) A RESCISSION OF A RULE UPON ITS EFFECTIVE DATE. 2 (B) A REPEAL OF THE STATUTORY PROVISION UNDER WHICH THE RULE 3 WAS AUTHORIZED. 4 (C) A BILL STAYING THE EFFECTIVE DATE OF THE PROPOSED RULE 5 FOR UP TO 1 YEAR. 6 (4) THE NOTICE OF OBJECTION FILED UNDER SUBSECTION (3) STAYS 7 THE ABILITY OF THE OFFICE OF REGULATORY REFORM TO FILE THE RULE 8 WITH THE SECRETARY OF STATE FOR THE FOLLOWING TIME PERIODS: 9 (A) EXCEPT AS PROVIDED IN SUBDIVISION (B) OR (C), 21 CONSEC- 10 UTIVE CALENDAR DAYS. 11 (B) IF BOTH HOUSES OF THE LEGISLATURE ARE NOT IN SESSION FOR 12 MORE THAN 14 CONSECUTIVE CALENDAR DAYS BUT 21 OR LESS CONSECUTIVE 13 CALENDAR DAYS FOLLOWING THE FILING OF A NOTICE OF OBJECTION, THE 14 21-DAY TIME PERIOD DESCRIBED IN SUBDIVISION (A) SHALL TOLL, WITH 15 THE REMAINDER OF THE 21-DAY TIME PERIOD AVAILABLE FOR CONSIDERA- 16 TION UPON THE RETURN OF EITHER HOUSE. IN NO CASE UNDER THIS SUB- 17 DIVISION SHALL THE COMBINED TIME PERIOD FOR CONSIDERATION BY THE 18 COMMITTEE AND FULL LEGISLATURE EXCEED 63 CONSECUTIVE CALENDAR 19 DAYS. 20 (C) IF BOTH HOUSES OF THE LEGISLATURE ARE NOT IN SESSION 21 MORE THAN 21 CONSECUTIVE CALENDAR DAYS FOLLOWING THE FILING OF A 22 TIMELY NOTICE OF OBJECTION, THE 21-DAY TIME PERIOD DESCRIBED IN 23 SUBDIVISION (A) SHALL TOLL, WITH THE REMAINDER OF THE 21-DAY TIME 24 PERIOD AVAILABLE FOR CONSIDERATION UPON THE RETURN OF EITHER 25 HOUSE. 26 (5) IF THE LEGISLATION INTRODUCED PURSUANT TO SUBSECTION (3) 27 IS DEFEATED IN EITHER HOUSE AND IF THE VOTE BY WHICH THE 02270'99 * 30 1 LEGISLATION FAILED TO PASS IS NOT RECONSIDERED IN COMPLIANCE WITH 2 THE RULES OF THAT HOUSE, OR IF LEGISLATION INTRODUCED PURSUANT TO 3 SUBSECTION (3) IS NOT ADOPTED BY BOTH HOUSES WITHIN THE TIME 4 PERIOD SPECIFIED IN SUBSECTION (4), THE OFFICE OF REGULATORY 5 REFORM MAY FILE THE RULE WITH THE SECRETARY OF STATE. UPON 6 FILING WITH THE SECRETARY OF STATE, THE RULE SHALL TAKE EFFECT 7 7 DAYS AFTER THE FILING DATE UNLESS A LATER DATE IS SPECIFIED 8 WITHIN THE RULE. 9 (6) IF THE LEGISLATION INTRODUCED PURSUANT TO SUBSECTION (3) 10 IS ENACTED BY THE LEGISLATURE AND PRESENTED TO THE GOVERNOR 11 WITHIN THE 21-DAY PERIOD, THE RULES DO NOT BECOME EFFECTIVE 12 UNLESS THE LEGISLATION IS VETOED BY THE GOVERNOR AS PROVIDED BY 13 LAW. IF THE GOVERNOR VETOES THE LEGISLATION, THE OFFICE OF REGU- 14 LATORY REFORM MAY FILE THE RULES IMMEDIATELY. THE RULE SHALL 15 TAKE EFFECT 7 DAYS AFTER THE DATE OF ITS FILING UNLESS A LATER 16 EFFECTIVE DATE IS INDICATED WITHIN THE RULE. 17 (7) AN AGENCY MAY WITHDRAW A PROPOSED RULE UNDER THE FOLLOW- 18 ING CONDITIONS: 19 (A) WITH PERMISSION OF THE CHAIR AND ALTERNATE CHAIR, THE 20 AGENCY MAY WITHDRAW THE RULE AND RESUBMIT IT. IF PERMISSION TO 21 WITHDRAW IS GRANTED, THE 21-DAY TIME PERIOD DESCRIBED IN SUBSEC- 22 TION (1) IS TOLLED UNTIL THE RULE IS RESUBMITTED, EXCEPT THAT THE 23 COMMITTEE SHALL HAVE AT LEAST 7 CALENDAR DAYS AFTER RESUBMISSION 24 TO CONSIDER THE RESUBMITTED RULE. THE PERIOD OF TIME BETWEEN 25 WITHDRAWAL AND RESUBMISSION OF THE RULE IS NOT COUNTED TOWARD THE 26 63-DAY LIMIT FOR RULE CONSIDERATION DESCRIBED IN SUBSECTION 27 (4)(B). 02270'99 * 31 1 (B) WITHOUT PERMISSION OF THE CHAIR AND ALTERNATE CHAIR, THE 2 AGENCY MAY WITHDRAW THE RULE AND RESUBMIT IT. IF PERMISSION TO 3 WITHDRAW IS NOT GRANTED, A NEW AND UNTOLLED 21-DAY TIME PERIOD 4 DESCRIBED IN SUBSECTION (1) SHALL BEGIN UPON RESUBMISSION OF THE 5 RULE TO THE COMMITTEE FOR CONSIDERATION. 6 (8) SUBSECTIONS (1) THROUGH (5) DO NOT APPLY TO RULES 7 ADOPTED UNDER SECTIONS 33, 44, AND 48. 8 Sec. 46. (1)Except for a rule processed pursuant to9section 44(2), toTO promulgate a rulean agencyTHE OFFICE OF 10 REGULATORY REFORM shall file in the office of the secretary of 11 state 3 copies of the rule bearing the required certificates of 12 approval and adoption and true copies of the rule without the 13 certificates.An agencyTHE OFFICE OF REGULATORY REFORM shall 14 not file a rule, except an emergency rule under section 48 AND 15 RULES PROCESSED UNDER SECTIONS 33 AND 44, untilat least 10 days16after the date of the certificate of approval by the committee or17after the legislature adopts a concurrent resolution approving18the rule. An agency shall transmit a copy of the rule bearing19the required certificates of approval and adoption to the office20of the governor at least 10 days before it files the ruleTHE 21 TIME PERIODS FOR COMMITTEE AND LEGISLATIVE CONSIDERATION 22 DESCRIBED IN SECTION 45A HAVE ELAPSED. 23 (2) The secretary of state shall endorse the date and hour 24 of filing of rules on the 3 copies of the filing bearing the cer- 25 tificates and shall maintain a file containing 1 copy for public 26 inspection. 02270'99 * 32 1 (3) The secretary of state, as often as he or she considers 2 it advisable, shall cause to be arranged and bound in a 3 substantial manner the rules hereafter filed in his or her office 4 with their attached certificates and published in a supplement to 5 the Michigan administrative code. The secretary of state shall 6 certify under his or her hand and seal of the state on the fron- 7 tispiece of each volume that it contains all of the rules filed 8 and published for a specified period. The rules, when so bound 9 and certified, shall be kept in the office of the secretary of 10 state and no further record of the rules is required to be kept. 11 The bound rules are subject to public inspection. 12(4) To promulgate a rule processed pursuant to13section 44(2), an agency, after the period provided for written14comments, shall file in the office of the secretary of state 315copies of the rule along with the approval of the legislative16service bureau and the department of attorney general.17 Sec. 47. (1) Except in case of a rule processed under sec- 18 tion 48, a rule becomes effective on the date fixed in the rule, 19 which shall not be earlier than157 days after the date of its 20 promulgation, or if a date is not so fixed thenon the date of21its publication in the Michigan administrative code or a supple-22ment thereto7 DAYS AFTER THE DATE OF PROMULGATION. 23 (2) Except in case of a rule processed under section 48, an 24 agency may withdraw a promulgated rule which has not become 25 effective by FILING a written request stating reasons, (a)FOR 26 WITHDRAWAL to the secretary of state on or before the last day 27 for filing rules for the interim period in which the rules were 02270'99 * 33 1 first filed, or(b)BY FILING A WRITTEN REQUEST FOR WITHDRAWAL 2 to the secretary of state and thelegislative service bureau3 OFFICE OF REGULATORY REFORM, within a reasonable time as deter- 4 mined by thebureauOFFICE OF REGULATORY REFORM, after the last 5 day for filing and before publication of the rule in the next 6 supplement to the code. In any other case an agency may abrogate 7 its rule only by rescission. When an agency has withdrawn a 8 promulgated rule, it shall give notice, stating reasons, to the 9jointcommitteeon administrative rulesthat the rule has 10 been withdrawn. 11 (3) SECTIONS 45 AND 45A APPLY TO RULES FOR WHICH A PUBLIC 12 HEARING HAS NOT BEEN HELD BY JANUARY 1, 2000. 13 Sec. 48. (1) If an agency finds that preservation of the 14 public health, safety, or welfare requires promulgation of an 15 emergency rule without following the notice and participation 16 procedures required by sections 41 and 42 and states in the rule 17 the agency's reasons for that finding, and the governor concurs 18 in the finding of emergency, the agency may dispense with all or 19 part of the procedures and file in the office of the secretary of 20 state the copies prescribed by section 46 indorsed as an emer- 21 gency rule, to 3 of which copies shall be attached the certifi- 22 cates prescribed by section 45 and the governor's certificate 23 concurring in the finding of emergency. The emergency rule is 24 effective on filing and remains in effect until a date fixed in 25 the rule or 6 months after the date of its filing, whichever is 26 earlier. The rule may be extended once for not more than 6 27 months by the filing of a governor's certificate of the need for 02270'99 * 34 1 the extension with the office of the secretary of state before 2 expiration of the emergency rule. An emergency rule shall not be 3 numbered and shall not be compiled in the Michigan administrative 4 code, but shall be noted in the annual supplement to the code. 5 The emergency rule shall be published in the Michigan register 6 pursuant to section 8. 7 (2) If the agency desires to promulgate an identical or sim- 8 ilar rule with an effectiveness beyond the final effective date 9 of an emergency rule, the agency shall comply with the procedures 10 prescribed by this act for the processing of a rule which is not 11 an emergency rule. The rule shall be published in the Michigan 12 register and in the code. 13(3) The legislature by a concurrent resolution may rescind14an emergency rule promulgated pursuant to this section.15 Sec. 52. If authorized by concurrent resolution of the leg- 16 islature, thejointcommittee,on administrative rules,17 acting between regular sessions, may suspend a rule or a part of 18 a rule promulgated during the interim between regular sessions. 19 The committee shall notify the agency promulgating the rule, the 20 secretary of state, the department of management and budget, and 21 the legislative service bureau AND OFFICE OF REGULATORY REFORM of 22 any rule or part of a rule thejointcommittee suspends, and 23 the rule or part of a rule shall not be published in the Michigan 24 register or in the Michigan administrative code while suspended. 25 A rule suspended by the committee continues to be suspended 26untilNO LONGER THAN the end of the next regular LEGISLATIVE 27 session. 02270'99 * 35 1 Sec. 53. (1) Each agency shall prepareaAN ANNUAL 2 REGULATORY planfor the review ofTHAT REVIEWS the agency's 3 rules.that are brought to the attention of the Michigan busi-4ness ombudsman.The ANNUAL REGULATORY plan shall be transmitted 5 to thecommittee and to the director of the department of6commerceOFFICE OF REGULATORY REFORM.The agency shall conduct7a review pursuant to the plan.8 (2) Inconducting the reviewCOMPLETING THE ANNUAL REGULA- 9 TORY PLAN required by this section, the agency shallprepare a10small business economic impact statement if the review discloses11an impact on small businesses. The agency shall prepare a recom-12mendation based on the review as to whether the rules should be13continued without change or should be amended or rescinded. If14the small business economic impact statement discloses that an15existing rule has a disproportionate impact on small businesses16because of the size of those businesses, the agency reviewing the17rule shall, if it is lawful and feasible in meeting the objec-18tives of the act authorizing the promulgation of the rule, amend19or rescind the rule pursuant to this act to reduce or eliminate20the disproportionate impact of the rule on small businesses.21 IDENTIFY THE RULES IT REASONABLY EXPECTS TO PROCESS IN THE NEXT 22 YEAR, THE MANDATORY STATUTORY RULE AUTHORITY IT HAS NOT EXER- 23 CISED, AND THE RULES IT EXPECTS TO RESCIND IN THE NEXT YEAR. 24 (3)The small business economic impact statement and recom-25mendation shall be transmitted to the committee and the director26of the department of commerce. The director shall review the27statement and shall notify the committee of any additional02270'99 * 36 1information pertinent to the committee's review.THE ANNUAL 2 REGULATORY PLANS COMPLETED PURSUANT TO THIS SECTION ARE ADVISORY 3 ONLY AND DO NOT OTHERWISE BIND THE AGENCY OR IN ANY WAY PREVENT 4 ADDITIONAL ACTION. 5 (4)Four years after its effective date, this section shall6not apply.ANNUAL REGULATORY PLANS COMPLETED UNDER SUBSECTION 7 (1) SHALL BE FILED WITH THE OFFICE OF REGULATORY REFORM BY JULY 1 8 OF EACH YEAR. AFTER THE OFFICE OF REGULATORY REFORM APPROVES THE 9 PLAN FOR REVIEW, THE OFFICE OF REGULATORY REFORM SHALL PROVIDE A 10 COPY OF THE PLAN OF REVIEW TO THE COMMITTEE. THE COMMITTEE SHALL 11 PROVIDE A COPY OF EACH AGENCY PLAN OF REVIEW TO MEMBERS OF THE 12 COMMITTEE AND TO MEMBERS OF THE STANDING COMMITTEES OF THE SENATE 13 AND HOUSE OF REPRESENTATIVES THAT DEAL WITH THE SUBJECT MATTER OF 14 RULES THE AGENCY MAY PROPOSE. 15 SEC. 54. FAILURE OF THE COMMITTEE TO PROVIDE ANY NOTICES 16 REQUIRED UNDER SECTION 24, 28, 39, 39A, OR 42 DOES NOT AFFECT THE 17 VALIDITY OF THE PROCESSING OR ADOPTION OF A RULE. 18 Sec. 55. (1) Thelegislative service bureauOFFICE OF 19 REGULATORY REFORM annually shall publish a supplement to the 20 Michigan administrative code. The annual supplement shall con- 21 tain all promulgated rules published in the Michigan register 22 during the current year, except emergency rules, a cumulative 23 numerical listing of amendments and additions to, and rescissions 24 of rules since the last compilation of the MICHIGAN 25 ADMINISTRATIVE code, and a cumulative alphabetical index. 26 (2) The Michigan administrative code and, IF APPLICABLE, the 27 annual supplements shall be made available BY THE OFFICE OF 02270'99 * 37 1 REGULATORY REFORM FREE OF CHARGE ON THE INTERNET AND IN PRINTED 2 OR OTHER ELECTRONIC FORMAT for public subscription at a fee rea- 3 sonably calculated to cover publication and distribution costs. 4 Sec. 56. (1) Thelegislative service bureauOFFICE OF 5 REGULATORY REFORM shall perform the editorial work for the 6 Michigan register and the Michigan administrative code and its 7 annual supplement. The classification, arrangement, numbering, 8 and indexing of rules shall be UNDER THE OWNERSHIP AND CONTROL OF 9 THE OFFICE OF REGULATORY REFORM, SHALL BE uniform, and shall con- 10 form as nearly as practicable to the classification, arrangement, 11 numbering, and indexing of the compiled laws. Thebureau12 OFFICE OF REGULATORY REFORM may correct in the publications obvi- 13 ous errors in rules when requested by the promulgating agency to 14 do so. ThebureauOFFICE OF REGULATORY REFORM may provide for 15 publishing all or any part of the Michigan administrative code in 16 bound volume, pamphlet, ELECTRONIC, or loose-leaf form. THIS 17 SUBSECTION DOES NOT PREVENT A LEGISLATOR FROM PROVIDING A COPY OR 18 REPRODUCTION OF A RULE TO A MEMBER OF THE GENERAL PUBLIC. 19 (2) An annual supplement to the Michigan administrative code 20 shall be published at the earliest practicable date. 21 Sec. 57. (1) Thelegislative service bureauOFFICE OF 22 REGULATORY REFORM may omit from the Michigan register,andthe 23 Michigan administrative code, and the MICHIGAN ADMINISTRATIVE 24 code's annual supplement,any rule, the publication of which 25 would be unreasonably expensive or lengthy if the rule in printed 26 or reproduced form is made available on application to the 27 promulgating agency,andif the MICHIGAN ADMINISTRATIVE code 02270'99 * 38 1 publication and the Michigan register contain a notice stating 2 the general subject of the omitted rule and how a copy of the 3 rule may be obtained. 4 (2) The cost of publishing and distributing annual supple- 5 ments to the Michigan administrative code and proposed rules, 6 notices of public hearings on proposed rules,small business7economic impact statements, administrativerules and emergency 8 rules filed with the secretary of state, notices of proposed and 9 adopted agency guidelines, and the items listed in section 7(l) 10 in the Michigan registershallMAY be prorated by the 11legislative service bureauOFFICE OF REGULATORY REFORM on the 12 basis of the volume of these materials published for each agency 13 in the Michigan register and annual supplement to the Michigan 14 administrative code, and the cost of publishing and distribution 15 shall be paid out of appropriations to the agencies. 16 Sec. 58. (1) When requested by an agency, thelegislative17service bureauOFFICE OF REGULATORY REFORM shall prepare repro- 18 duction proofs or negatives of the rules, or a portion of the 19 rules, of the agency. The requesting agency shall reimburse the 20legislative service bureauOFFICE OF REGULATORY REFORM for pre- 21 paring the reproduction proofs or negatives, and the cost of the 22 preparation shall be paid out of appropriations to the agency. 23 (2) The Michigan administrative code may be arranged and 24 printed to make convenient the publication ELECTRONICALLY OR in 25 separate pamphlets of the parts of the MICHIGAN ADMINISTRATIVE 26 code relating to different agencies. Agencies may order the 02270'99 * 39 1 separate pamphlets, and the cost of the pamphlets shall be paid 2 out of appropriations to the agencies. 3 Sec. 59. (1) Thelegislative service bureauOFFICE OF 4 REGULATORY REFORM shall publish or order published a sufficient 5 number of copies of the Michigan register, the Michigan adminis- 6 trative code, and the annual supplement to the MICHIGAN 7 ADMINISTRATIVE code to meet the requirements of this section. 8 Unless otherwise directed by thelegislative service bureau9 OFFICE OF REGULATORY REFORM, the department of management and 10 budget shall deliver or provide copies as follows: 11 (a) To the secretary of the senate, a sufficient number to 12 supply each senator. 13 (b) To the clerk of the house of representatives, a suffi- 14 cient number to supply each representative. 15 (2) The copies of the Michigan register, the Michigan admin- 16 istrative code, and the annual MICHIGAN ADMINISTRATIVE code sup- 17 plement are for official use only by the agencies and persons 18 prescribed in subsection (1), and they shall deliver them to 19 their successors. The department of management and budget shall 20 hold additional copies for sale at a price not less than the pub- 21 lication and distribution costs which shall be determined by the 22legislative service bureauOFFICE OF REGULATORY REFORM. ANY 23 MONEY COLLECTED BY THE DEPARTMENT OF MANAGEMENT AND BUDGET FOR 24 THE ADMINISTRATIVE CODE UNDER THIS SUBSECTION IS TO BE DEPOSITED 25 INTO THE GENERAL FUND. 26 (3) A person may subscribe to the Michigan register, THE 27 MICHIGAN ADMINISTRATIVE CODE, AND THE ANNUAL SUPPLEMENT TO THE 02270'99 * 40 1 MICHIGAN ADMINISTRATIVE CODE. Thelegislative service bureau2 OFFICE OF REGULATORY REFORM shall determine a subscription price 3whichTHAT shall not be more than the publication and distribu- 4 tion costs. 5 Enacting section 1. This amendatory act takes effect 6 January 1, 2000. 7 Enacting section 2. This amendatory act does not take 8 effect unless all of the following bills of the 90th Legislature 9 are enacted into law: 10 (a) Senate Bill No. 878. 11 12 (b) Senate Bill No. 879. 13 02270'99 * Final page. LBO