SB-0800, As Passed Senate, February 18, 2004                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                           HOUSE SUBSTITUTE FOR                                 

                                                                                

                           SENATE BILL NO. 800                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1969 PA 306, entitled                                             

                                                                                

    "Administrative procedures act of 1969,"                                    

                                                                                

    by amending sections 5, 8, 24, 28, 39, 41, 41a, 42, 44, 45, 45a,            

                                                                                

    49, 50, 52, and 53 (MCL 24.205, 24.208, 24.224, 24.228, 24.239,             

                                                                                

    24.241, 24.241a, 24.242, 24.244, 24.245, 24.245a, 24.249, 24.250,           

                                                                                

    24.252, and 24.253), sections 5, 8, 24, 41a, 42, 44, 45, 52, and            

                                                                                

    53 as amended and sections 28, 39, and 45a as added by 1999 PA              

                                                                                

    262 and section 41 as amended by 1993 PA 141.                               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 5.  (1) "License" includes the whole or part of an                     

                                                                                

2   agency permit, certificate, approval, registration, charter, or             

                                                                                

3   similar form of permission required by law, but does not include            

                                                                                

4   a license required solely for revenue purposes, or a license or             

                                                                                

5   registration issued under the Michigan vehicle code, 1949 PA 300,           

                                                                                

6   MCL 257.1 to 257.923.                                                       

                                                                                


                                                                                

1       (2) "Licensing" includes agency activity involving the grant,               

                                                                                

2   denial, renewal, suspension, revocation, annulment, withdrawal,             

                                                                                

3   recall, cancellation, or amendment of a license.                            

                                                                                

4       (3) "Michigan register" means the publication described in                  

                                                                                

5   section 8.                                                                  

                                                                                

6       (4) "Notice" means a written or electronic record that                      

                                                                                

7   informs a person of past or future action of the person                     

                                                                                

8   generating the record.                                                      

                                                                                

9       (5)  (4)  "Notice of objection" means the  document  record                 

                                                                                

10  adopted by the committee that indicates the committee's formal              

                                                                                

11  objection to a proposed rule.                                               

                                                                                

12      (6)  (5)  "Party" means a person or agency named, admitted,                 

                                                                                

13  or properly seeking and entitled of right to be admitted, as a              

                                                                                

14  party in a contested case.                                                  

                                                                                

15      (7)  (6)  "Person" means an individual, partnership,                        

                                                                                

16  association, corporation, limited liability company, limited                

                                                                                

17  liability partnership, governmental subdivision, or public or               

                                                                                

18  private organization of any kind other than the agency engaged in           

                                                                                

19  the particular processing of a rule, declaratory ruling, or                 

                                                                                

20  contested case.                                                             

                                                                                

21      (8)  (7)  "Processing of a rule" means the action required or               

                                                                                

22  authorized by this act regarding a rule  which  that is to be               

                                                                                

23  promulgated, including the rule's adoption, and ending with the             

                                                                                

24  rule's promulgation.                                                        

                                                                                

25      (9)  (8)  "Promulgation of a rule" means that step in the                   

                                                                                

26  processing of a rule consisting of the filing of a rule with the            

                                                                                

27  secretary of state.                                                         


                                                                                

1       (10) "Record" means information that is inscribed on a paper                

                                                                                

2   or electronic medium.                                                       

                                                                                

3       Sec. 8.  (1) The office of regulatory reform shall publish                  

                                                                                

4   the Michigan register at least once each month.  The Michigan               

                                                                                

5   register shall contain all of the following:                                

                                                                                

6       (a) Executive orders and executive reorganization orders.                   

                                                                                

7       (b) On a cumulative basis, the numbers and subject matter of                

                                                                                

8   the enrolled senate and house bills signed into law by the                  

                                                                                

9   governor during the calendar year and the corresponding public              

                                                                                

10  act numbers.                                                                

                                                                                

11      (c) On a cumulative basis, the numbers and subject matter of                

                                                                                

12  the enrolled senate and house bills vetoed by the governor during           

                                                                                

13  the calendar year.                                                          

                                                                                

14      (d) Proposed administrative rules.                                          

                                                                                

15      (e) Notices of public hearings on proposed administrative                   

                                                                                

16  rules.                                                                      

                                                                                

17      (f) Administrative rules filed with the secretary of state.                 

                                                                                

18      (g) Emergency rules filed with the secretary of state.                      

                                                                                

19      (h) Notice of proposed and adopted agency guidelines.                       

                                                                                

20      (i) Other official information considered necessary or                      

                                                                                

21  appropriate by the office of regulatory reform.                             

                                                                                

22      (j) Attorney general opinions.                                              

                                                                                

23      (k) All of the items listed in section  7(l)  7(m) 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, 1978 PA 368, MCL 333.22215.               

                                                                                

27  and 333.22217.                                                             


                                                                                

1       (2) The office of regulatory reform shall publish a                         

                                                                                

2   cumulative index for the Michigan register.                                 

                                                                                

3       (3) The Michigan register shall be available for public                     

                                                                                

4   subscription at a fee reasonably calculated to cover publication            

                                                                                

5   and distribution costs.                                                     

                                                                                

6       (4) If publication of an agency's proposed rule or guideline                

                                                                                

7   or an item described in subsection (1)(k) would be unreasonably             

                                                                                

8   expensive or lengthy, the office of regulatory reform may publish           

                                                                                

9   a brief synopsis of the proposed rule or guideline or item                  

                                                                                

10  described in subsection (1)(k), including information on how to             

                                                                                

11  obtain a complete copy of the proposed rule or guideline or item            

                                                                                

12  described in subsection (1)(k) from the agency at no cost.                  

                                                                                

13      (5) An agency shall electronically transmit a copy of the                   

                                                                                

14  proposed rules and notice of public hearing to the office of                

                                                                                

15  regulatory reform for publication in the Michigan register.                 

                                                                                

16      Sec. 24.  (1) Before the adoption of a guideline, an agency                 

                                                                                

17  shall give electronic notice of the proposed guideline to the               

                                                                                

18  committee, the office of regulatory reform, and each person who             

                                                                                

19  requested the agency in writing or electronically for advance               

                                                                                

20  notice of proposed action  which  that may affect the person.               

                                                                                

21  The committee shall electronically provide the notice of the                

                                                                                

22  proposed guideline not later than the next business day after               

                                                                                

23  receipt of the notice from the agency to members of the committee           

                                                                                

24  and to members of the standing committees of the senate and house           

                                                                                

25  of representatives that deal with the subject matter of the                 

                                                                                

26  proposed guideline.  The notice shall be given by mail, in                  

                                                                                

27  writing, or electronically transmitted to the last address                  


                                                                                

1   specified by the person requesting the agency for advanced notice           

                                                                                

2   of proposed action that may affect that person.  A request for              

                                                                                

3   notice is renewable each December.  Only electronic notice shall            

                                                                                

4   be given to any member or agency of the legislative and executive           

                                                                                

5   branches.                                                                   

                                                                                

6       (2) The notice required by subsection (1) shall include all                 

                                                                                

7   of the following:                                                           

                                                                                

8       (a) A statement of the terms or substance of the proposed                   

                                                                                

9   guideline, a description of the subjects and issues involved, and           

                                                                                

10  the proposed effective date of the guideline.                               

                                                                                

11      (b) A statement that the addressee may express any views or                 

                                                                                

12  arguments regarding the proposed guideline or the guideline's               

                                                                                

13  effect on a person.                                                         

                                                                                

14      (c) The address to which written comments may be sent and the               

                                                                                

15  date by which comments shall be mailed or electronically                    

                                                                                

16  transmitted, which date shall not be less than 35 days from the             

                                                                                

17  date of the mailing or electronic transmittal of the notice.                

                                                                                

18      (d) A reference to the specific statutory provision about                   

                                                                                

19  which the proposed guideline states a policy.                               

                                                                                

20      Sec. 28.  (1) Before the adoption of a standard form                        

                                                                                

21  contract that would have been considered a rule but for the                 

                                                                                

22  exemption from rule-making under section  7(o)  7(p) or a policy            

                                                                                

23  exempt from rule-making under section  7(p)  7(q), an agency                

                                                                                

24  shall give electronic notice of the proposed standard form                  

                                                                                

25  contract or policy to the committee and the office of regulatory            

                                                                                

26  reform.  The committee shall provide  a  an electronic copy of              

                                                                                

27  the notice not later than the next business day after receipt of            


                                                                                

1   the electronic notice from the agency to members of the committee           

                                                                                

2   and to members of the standing committees of the senate and house           

                                                                                

3   of representatives that deal with the subject matter of the                 

                                                                                

4   proposed standard form contract or policy.                                  

                                                                                

5       (2) The electronic notice required by subsection (1) shall                  

                                                                                

6   include all of the following:                                               

                                                                                

7       (a) A statement of the terms of substance of the proposed                   

                                                                                

8   standard form contract or policy, a description of the subjects             

                                                                                

9   and issues involved, and the proposed effective date of the                 

                                                                                

10  standard form contract or policy.                                           

                                                                                

11      (b) A statement that the addressee may express any views or                 

                                                                                

12  arguments regarding the proposed standard form contract or policy           

                                                                                

13  or the standard form contract's or policy's effect on a person.             

                                                                                

14      (c) The address to which comments may be sent and the date by               

                                                                                

15  which the comments shall be mailed or electronically transmitted,           

                                                                                

16  which date shall not be less than 35 days from the date of the              

                                                                                

17  mailing or electronic transmittal of the notice.                            

                                                                                

18      (d) A reference to the specific statutory provision under                   

                                                                                

19  which the standard form contract or policy is issued.                       

                                                                                

20      (3) If the value of a proposed standard form contract exempt                

                                                                                

21  from rule-making under section  7(o)  7(p) is $10,000,000.00 or             

                                                                                

22  more, the electronic notice required under subsection (1) shall             

                                                                                

23  include  a  an electronic copy of the proposed standard form                

                                                                                

24  contract.  If the value of the proposed standard form contract              

                                                                                

25  exempt from rule-making under section  7(o)  7(p) is less than              

                                                                                

26  $10,000,000.00, the  department  agency shall provide  a  an                

                                                                                

27  electronic or paper copy of the proposed standard form contract             


                                                                                

1   or policy to any legislator requesting a copy.                              

                                                                                

2       Sec. 39.  (1) Before initiating any changes or additions to                 

                                                                                

3   rules, an agency shall electronically file with the office of               

                                                                                

4   regulatory reform a request for rule-making  on  in a  form                 

                                                                                

5   format prescribed by the office of regulatory reform.  The                  

                                                                                

6   request for rule-making shall include the following:                        

                                                                                

7       (a) The state or federal statutory or regulatory basis for                  

                                                                                

8   the rule.                                                                   

                                                                                

9       (b) The problem the rule intends to address.                                

                                                                                

10      (c) An assessment of the significance of the problem.                       

                                                                                

11      (2) An agency shall not proceed with the processing of a rule               

                                                                                

12  outlined in this chapter unless the office of regulatory reform             

                                                                                

13  has approved the request for rule-making.                                   

                                                                                

14      (3) The office of regulatory reform shall record the receipt                

                                                                                

15  of all requests for rule-making on the internet and shall make              

                                                                                

16  electronic or paper copies of approved requests for rule-making             

                                                                                

17  available to members of the general public upon request.                    

                                                                                

18      (4) The office of regulatory reform shall immediately make                  

                                                                                

19  available to the committee electronic copies of the request for             

                                                                                

20  rule-making submitted to the office of regulatory reform.  On a             

                                                                                

21  weekly basis, the office of regulatory reform shall                         

                                                                                

22  electronically provide to the committee a listing of all requests           

                                                                                

23  for rule-making approved or denied during the previous week.  The           

                                                                                

24  committee shall electronically provide a copy of the approved and           

                                                                                

25  denied requests for rule-making, not later than the next business           

                                                                                

26  day after receipt of the notice from the office of regulatory               

                                                                                

27  reform, to members of the committee and to members of the                   


                                                                                

1   standing committees of the senate and house of representatives              

                                                                                

2   that deal with the subject matter of the proposed rule.                     

                                                                                

3       Sec. 41.  (1) Except as provided in section 44, before the                  

                                                                                

4   adoption of a rule, an agency shall give notice of a public                 

                                                                                

5   hearing and offer a person an opportunity to present data, views,           

                                                                                

6   questions, and arguments.  The notice shall be given within the             

                                                                                

7   time prescribed by any applicable statute, or if none, in the               

                                                                                

8   manner prescribed in section 42(1).                                         

                                                                                

9       (2) The notice described in subsection (1) shall include all                

                                                                                

10  of the following:                                                           

                                                                                

11      (a) A reference to the statutory authority under which the                  

                                                                                

12  action is proposed.                                                         

                                                                                

13      (b) The time and place of the public hearing and a statement                

                                                                                

14  of the manner in which data, views, questions, and arguments may            

                                                                                

15  be submitted by a person to the agency at other times.                      

                                                                                

16      (c) A statement of the terms or substance of the proposed                   

                                                                                

17  rule, a description of the subjects and issues involved, and the            

                                                                                

18  proposed effective date of the rule.                                        

                                                                                

19      (3) The agency shall transmit copies of the notice to each                  

                                                                                

20  person who requested the agency in writing or electronically for            

                                                                                

21  advance notice of proposed action  which  that may affect the               

                                                                                

22  person.   The  If requested, the notice shall be by mail, in                

                                                                                

23  writing, or electronically to the last address specified by the             

                                                                                

24  person.                                                                     

                                                                                

25      (4) The public hearing shall comply with any applicable                     

                                                                                

26  statute, but is not subject to the provisions governing a                   

                                                                                

27  contested case.                                                             


                                                                                

1       (5) The head of the promulgating agency or 1 or more persons                

                                                                                

2   designated by the head of the agency who have knowledge of the              

                                                                                

3   subject matter of the proposed rule shall be present at the                 

                                                                                

4   public hearing and shall participate in the discussion of the               

                                                                                

5   proposed rule.                                                              

                                                                                

6       Sec. 41a.  A member of the legislature may annually submit a                

                                                                                

7   written or electronic request to the office of regulatory reform            

                                                                                

8   requesting that a copy of all proposed rules or changes in rules,           

                                                                                

9   or any designated proposed rules or changes in rules submitted to           

                                                                                

10  the office of regulatory reform for its approval, be mailed or              

                                                                                

11  electronically transmitted to the requesting member upon his or             

                                                                                

12  her receipt  of the same  by the office of regulatory reform.               

                                                                                

13      Sec. 42.  (1) Except as provided in section 44, at a                        

                                                                                

14  minimum, an agency shall publish the notice of public hearing as            

                                                                                

15  prescribed in any applicable statute or, if none, the agency                

                                                                                

16  shall publish the notice not less than 10 days and not more than            

                                                                                

17  60 days before the date of the public hearing in at least 3                 

                                                                                

18  newspapers of general circulation in different parts of the                 

                                                                                

19  state, 1 of which shall be in the Upper Peninsula.                          

                                                                                

20      (2) Additional methods that may be employed by the agency,                  

                                                                                

21  depending upon the circumstances, include publication in trade,             

                                                                                

22  industry, governmental, or professional publications or posting             

                                                                                

23  on the agency's website.                                                    

                                                                                

24      (3) In addition to the requirements of subsection (1), the                  

                                                                                

25  agency shall electronically submit a copy of the notice of public           

                                                                                

26  hearing to the office of regulatory reform for publication in the           

                                                                                

27  Michigan register.  An agency's notice shall be published in the            


                                                                                

1   Michigan register before the public hearing and the agency shall            

                                                                                

2   electronically file a copy of the notice of public hearing with             

                                                                                

3   the office of regulatory reform.  Within 7 days after receipt of            

                                                                                

4   the notice of public hearing, the office of regulatory reform               

                                                                                

5   shall do all of the following before the public hearing:                    

                                                                                

6       (a)  Forward  Electronically transmit a copy of the notice of               

                                                                                

7   public hearing to the committee.                                            

                                                                                

8       (b) Provide notice electronically through publicly accessible               

                                                                                

9   internet media.                                                             

                                                                                

10      (4) After the office of regulatory reform  forwards                         

                                                                                

11  electronically transmits a copy of the notice of public hearing             

                                                                                

12  to the committee, the committee shall  send  electronically                 

                                                                                

13  transmit copies of the notice of public hearing, not later than             

                                                                                

14  the next business day after receipt of the notice from the office           

                                                                                

15  of regulatory reform, to each member of the committee and to the            

                                                                                

16  members of the standing committees of the senate and house of               

                                                                                

17  representatives that deal with the subject matter of the proposed           

                                                                                

18  rule.                                                                       

                                                                                

19      (5) After receipt of the notice of public hearing filed under               

                                                                                

20  subsection (3), the committee may meet to consider the proposed             

                                                                                

21  rule, take testimony, and provide the agency with the committee's           

                                                                                

22  informal response to the rule.                                              

                                                                                

23      Sec. 44.  (1) Sections 41 and 42 do not apply to an                         

                                                                                

24  amendment or rescission of a rule that is obsolete or superseded,           

                                                                                

25  or that is required to make obviously needed corrections to make            

                                                                                

26  the rule conform to an amended or new statute or to accomplish              

                                                                                

27  any other solely formal purpose, if a statement to that effect is           


                                                                                

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, 1974 PA 154, MCL 408.1001 to 408.1094, that is substantially           

                                                                                

6   similar to an existing federal standard that has been adopted or            

                                                                                

7   promulgated under the occupational safety and health act of 1970,           

                                                                                

8   Public Law 91-596, 84 Stat. 1590.  However, notice of the                   

                                                                                

9   proposed rule shall be published in the Michigan register at                

                                                                                

10  least 35 days before the submission of the rule to the secretary            

                                                                                

11  of state pursuant to section  46(4)  46(1).  A reasonable period,           

                                                                                

12  not to exceed 21 days, shall be provided for the submission of              

                                                                                

13  written or electronic comments and views following publication in           

                                                                                

14  the Michigan register.                                                      

                                                                                

15      (3) For purposes of subsection (2), "substantially similar"                 

                                                                                

16  means identical, with the exception of style or format                      

                                                                                

17  differences needed to conform to this or other state laws, as               

                                                                                

18  determined by the office of regulatory reform pursuant to section           

                                                                                

19  45(1).                                                                      

                                                                                

20      Sec. 45.  (1)  If approved by the office of regulatory                      

                                                                                

21  reform, the  The agency  may  shall submit the proposed rule to             

                                                                                

22  the legislative service bureau for its formal certification.  The           

                                                                                

23  submission to the legislative service bureau for formal                     

                                                                                

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

                                                                                

25  electronic transmission. The legislative service bureau shall               

                                                                                

26  promptly  shall approve  issue a certificate of approval                    

                                                                                

27  indicating a determination that a proposed rule  if it considers            


                                                                                

1   the proposed rule to be  is proper as to all matters of form,               

                                                                                

2   classification, and arrangement.  The office of regulatory reform           

                                                                                

3   may approve a proposed rule if it considers the proposed rule to            

                                                                                

4   be legal.                                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   agency report containing a synopsis of the comments contained in            

                                                                                

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

                                                                                

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

                                                                                

11  hearing.  The office of regulatory reform shall transmit by                 

                                                                                

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

                                                                                

13  and certificates of approval from the legislative service bureau            

                                                                                

14  and the office of regulatory reform.   The number of copies                 

                                                                                

15  transmitted shall be the number required in the committee                   

                                                                                

16  procedures and standards but not to exceed 12 copies.  The office           

                                                                                

17  of regulatory reform shall also electronically submit a copy of             

                                                                                

18  the rule, agency reports, and certificates of approval to the               

                                                                                

19  committee. The agency shall electronically transmit to the                  

                                                                                

20  committee the  documents  records described in this subsection              

                                                                                

21  within 1 year after the date of the last public hearing on the              

                                                                                

22  proposed rule unless the proposed rule is a resubmission under              

                                                                                

23  section 45a(7).                                                             

                                                                                

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

                                                                                

25  48, the agency shall prepare and include with the  letter  notice           

                                                                                

26  of transmittal a regulatory impact statement containing all of              

                                                                                

27  the following information:                                                  


                                                                                

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

                                                                                

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

                                                                                

3   accreditation association, if any exist.                                    

                                                                                

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

                                                                                

5   behavior that the rule is designed to alter.                                

                                                                                

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

                                                                                

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

                                                                                

8   harm will occur in the absence of the rule.                                 

                                                                                

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

                                                                                

10  targeted behavior expected from the rule.                                   

                                                                                

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

                                                                                

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

                                                                                

13  or directly benefit from the rule.                                          

                                                                                

14      (f) An identification of any reasonable alternatives to                     

                                                                                

15  regulation pursuant to the proposed rule that would achieve the             

                                                                                

16  same or similar goals.                                                      

                                                                                

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

                                                                                

18  regulatory program similar to that proposed in the rule that                

                                                                                

19  would operate through market-based mechanisms.                              

                                                                                

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

                                                                                

21  promulgating the rule.                                                      

                                                                                

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

                                                                                

23  the proposed rule on individuals.                                           

                                                                                

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

                                                                                

25  the proposed rule on businesses and other groups.                           

                                                                                

26      (k) An identification of any disproportionate impact the                    

                                                                                

27  proposed rule may have on small businesses because of their                 


                                                                                

1   size.                                                                       

                                                                                

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

                                                                                

3   estimated cost of its preparation by small business required to             

                                                                                

4   comply with the proposed rule.                                              

                                                                                

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

                                                                                

6   businesses affected by the proposed rule, including costs of                

                                                                                

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

                                                                                

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

                                                                                

9   legal consulting and accounting services that small businesses              

                                                                                

10  would incur in complying with the proposed rule.                            

                                                                                

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

                                                                                

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

                                                                                

13  suffering economic harm and without adversely affecting                     

                                                                                

14  competition in the marketplace.                                             

                                                                                

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

                                                                                

16  administering or enforcing a rule that exempts or sets lesser               

                                                                                

17  standards for compliance by small businesses.                               

                                                                                

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

                                                                                

19  exempting or setting lesser standards of compliance for small               

                                                                                

20  businesses.                                                                 

                                                                                

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

                                                                                

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

                                                                                

23  statement describing the reasons such a reduction was not                   

                                                                                

24  feasible.                                                                   

                                                                                

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

                                                                                

26  involved small businesses in the development of the rule.                   

                                                                                

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


                                                                                

1   rule.                                                                       

                                                                                

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

                                                                                

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

                                                                                

4   result of the rule.                                                         

                                                                                

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

                                                                                

6   governmental units as a result of the rule.                                 

                                                                                

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

                                                                                

8   rule.                                                                       

                                                                                

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

                                                                                

10  in compiling the regulatory impact statement.                               

                                                                                

11      (y) Any other information required by the office of                         

                                                                                

12  regulatory reform.                                                          

                                                                                

13      (4) The agency shall electronically transmit the regulatory                 

                                                                                

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

                                                                                

15  regulatory reform at least 28 days before the public hearing                

                                                                                

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

                                                                                

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

                                                                                

18  office of regulatory reform.  The agency shall also                         

                                                                                

19  electronically transmit a copy of the regulatory impact statement           

                                                                                

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

                                                                                

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

                                                                                

22      (5) The committee shall  furnish  electronically transmit to                

                                                                                

23  the senate fiscal agency and the house fiscal agency  with  a               

                                                                                

24  copy of each rule and regulatory impact statement filed with the            

                                                                                

25  committee, as well as a copy of the agenda identifying the                  

                                                                                

26  proposed rules to be considered by the committee.  The senate               

                                                                                

27  fiscal agency and the house fiscal agency shall analyze each                


                                                                                

1   proposed rule for possible fiscal implications  which  that, if             

                                                                                

2   the rule were adopted, would result in additional appropriations            

                                                                                

3   in the current fiscal year or commit the legislature to an                  

                                                                                

4   appropriation in a future fiscal year.  The senate fiscal agency            

                                                                                

5   and the house fiscal agency shall electronically report their               

                                                                                

6   findings  in writing  to the senate and house appropriations                

                                                                                

7   committees and to the committee before the date of consideration            

                                                                                

8   of the proposed rule by the committee.                                      

                                                                                

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

                                                                                

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

                                                                                

11      Sec. 45a.  (1) Except as otherwise provided for in                          

                                                                                

12  subsections (7) and (8), after receipt by the committee of the              

                                                                                

13  letter  notice of transmittal specified in section 45(2), the              

                                                                                

14  committee has 21 calendar days in which to consider the rule and            

                                                                                

15  to object to the rule by filing a notice of objection approved by           

                                                                                

16  a concurrent majority of the committee members.  A notice of                

                                                                                

17  objection may only be approved by the committee if the committee            

                                                                                

18  affirmatively determines by a concurrent majority that 1 or more            

                                                                                

19  of the following conditions exist:                                          

                                                                                

20      (a) The agency lacks statutory authority for the rule.                      

                                                                                

21      (b) The agency is exceeding the statutory scope of its                      

                                                                                

22  rule-making authority.                                                      

                                                                                

23      (c) There exists an emergency relating to the public health,                

                                                                                

24  safety, and welfare that would warrant disapproval of the rule.             

                                                                                

25      (d) The rule is in conflict with state law.                                 

                                                                                

26      (e) A substantial change in circumstances has occurred since                

                                                                                

27  enactment of the law upon which the proposed rule is based.                 


                                                                                

1       (f) The rule is arbitrary or capricious.                                    

                                                                                

2       (g) The rule is unduly burdensome to the public or to a                     

                                                                                

3   licensee licensed by the rule.                                              

                                                                                

4       (2) If the committee does not file a notice of objection                    

                                                                                

5   within the time period prescribed in subsection (1), the office             

                                                                                

6   of regulatory reform may immediately file the rule, with the                

                                                                                

7   certificates of approval, with the secretary of state.  The rule            

                                                                                

8   shall take effect 7 days after the date of its filing unless a              

                                                                                

9   later date is indicated within the rule.                                    

                                                                                

10      (3) If the committee files a notice of objection within the                 

                                                                                

11  time period prescribed in subsection (1), the committee chair,              

                                                                                

12  the alternate chair, or any member of the committee shall cause             

                                                                                

13  bills to be introduced in both houses of the legislature                    

                                                                                

14  simultaneously.  Each house shall place the bill or bills                   

                                                                                

15  directly on its calendar.  The bills shall contain 1 or more of             

                                                                                

16  the following:                                                              

                                                                                

17      (a) A rescission of a rule upon its effective date.                         

                                                                                

18      (b) A repeal of the statutory provision under which the rule                

                                                                                

19  was authorized.                                                             

                                                                                

20      (c) A bill staying the effective date of the proposed rule                  

                                                                                

21  for up to 1 year.                                                           

                                                                                

22      (4) The notice of objection filed under subsection (3) stays                

                                                                                

23  the ability of the office of regulatory reform to file the rule             

                                                                                

24  with the secretary of state for the following time periods:                 

                                                                                

25      (a) Except as provided in subdivision (b) or (c), 21                        

                                                                                

26  consecutive calendar days.                                                  

                                                                                

27      (b) If both houses of the legislature are not in session for                


                                                                                

1   more than 14 consecutive calendar days but 21 or less consecutive           

                                                                                

2   calendar days following the filing of a notice of objection, the            

                                                                                

3   21-day time period described in subdivision (a) shall toll, with            

                                                                                

4   the remainder of the 21-day time period available for                       

                                                                                

5   consideration upon the return of both houses.  In no case under             

                                                                                

6   this subdivision shall the combined time period for consideration           

                                                                                

7   by the committee and full legislature exceed 63 consecutive                 

                                                                                

8   calendar days.                                                              

                                                                                

9       (c) If both houses of the legislature are not in session more               

                                                                                

10  than 21 consecutive calendar days following the filing of a                 

                                                                                

11  timely notice of objection, the 21-day time period described in             

                                                                                

12  subdivision (a) shall toll, with the remainder of the 21-day time           

                                                                                

13  period available for consideration upon the return of both                  

                                                                                

14  houses.                                                                     

                                                                                

15      (5) If the legislation introduced pursuant to subsection (3)                

                                                                                

16  is defeated in either house and if the vote by which the                    

                                                                                

17  legislation failed to pass is not reconsidered in compliance with           

                                                                                

18  the rules of that house, or if legislation introduced pursuant to           

                                                                                

19  subsection (3) is not adopted by both houses within the time                

                                                                                

20  period specified in subsection (4), the office of regulatory                

                                                                                

21  reform may file the rule with the secretary of state.  Upon                 

                                                                                

22  filing with the secretary of state, the rule shall take effect 7            

                                                                                

23  days after the filing date unless a later date is specified                 

                                                                                

24  within the rule.                                                            

                                                                                

25      (6) If the legislation introduced pursuant to subsection (3)                

                                                                                

26  is enacted by the legislature and presented to the governor                 

                                                                                

27  within the 21-day period, the rules do not become effective                 


                                                                                

1   unless the legislation is vetoed by the governor as provided by             

                                                                                

2   law.  If the governor vetoes the legislation, the office of                 

                                                                                

3   regulatory reform may file the rules immediately.  The rule shall           

                                                                                

4   take effect 7 days after the date of its filing unless a later              

                                                                                

5   effective date is indicated within the rule.                                

                                                                                

6       (7) An agency may withdraw a proposed rule under the                        

                                                                                

7   following conditions:                                                       

                                                                                

8       (a) With permission of the committee chair and alternate                    

                                                                                

9   chair, the agency may withdraw the rule and resubmit it.  If                

                                                                                

10  permission to withdraw is granted, the 21-day time period                   

                                                                                

11  described in subsection (1) is tolled until the rule is                     

                                                                                

12  resubmitted, except that the committee shall have at least 7                

                                                                                

13  calendar days after resubmission to consider the resubmitted                

                                                                                

14  rule.  The period of time between withdrawal and resubmission of            

                                                                                

15  the rule is not counted toward the 63-day limit for rule                    

                                                                                

16  consideration described in subsection (4)(b).                               

                                                                                

17      (b) Without permission of the committee chair and alternate                 

                                                                                

18  chair, the agency may withdraw the rule and resubmit it.  If                

                                                                                

19  permission to withdraw is not granted, a new and untolled 21-day            

                                                                                

20  time period described in subsection (1) shall begin upon                    

                                                                                

21  resubmission of the rule to the committee for consideration.                

                                                                                

22      (8) Subsections (1) through (5) do not apply to rules adopted               

                                                                                

23  under sections 33, 44, and 48.                                              

                                                                                

24      Sec. 49.  (1) The secretary of state shall transmit,  or                    

                                                                                

25  mail forthwith,  after copies of rules are filed in his or her              

                                                                                

26  office,  copies  a paper copy on which the day and hour of  such            

                                                                                

27  that filing have been indorsed, as follows:                                 


                                                                                

1       (a) To the secretary of the  joint  committee  on                           

                                                                                

2   administrative rules  and the  legislative service bureau  office           

                                                                                

3   of regulatory reform.                                                       

                                                                                

4       (b) To the secretary of the senate and the clerk of the house               

                                                                                

5   of representatives for distribution by them to each member of the           

                                                                                

6   senate and the house of representatives.  When the legislature is           

                                                                                

7   not in session, or is in session but will not meet for more than            

                                                                                

8   10 days after the secretary and clerk have received the rules,              

                                                                                

9   the secretary and clerk shall mail or electronically transmit 1             

                                                                                

10  copy to each member of the legislature at his or her home                   

                                                                                

11  address.                                                                    

                                                                                

12      (2) The secretary of the senate and clerk of the house of                   

                                                                                

13  representatives shall present the rules to the senate and the               

                                                                                

14  house of representatives.                                                   

                                                                                

15      Sec. 50.  (1) When the legislature is in session, the                       

                                                                                

16  joint  committee shall electronically notify the appropriate               

                                                                                

17  standing committee of each house of the legislature when rules              

                                                                                

18  have been transmitted to the committee by the secretary of                  

                                                                                

19  state.  If the  joint  committee determines that a hearing on               

                                                                                

20  such  those rules is to be held, it shall electronically notify            

                                                                                

21  the  chairmen  chairs of the standing committees.  and all  All             

                                                                                

22  members of the standing committees may be present and take part             

                                                                                

23  in the hearing.                                                             

                                                                                

24      (2) The  chairman  chair or a designated member of the                      

                                                                                

25  standing committee should be present at the hearing, but  their             

                                                                                

26  his or her absence does not affect the validity of the hearing.             

                                                                                

27      Sec. 52.  (1) If authorized by concurrent resolution of the                 


                                                                                

1   legislature, the committee, acting between regular sessions, may            

                                                                                

2   suspend a rule or a part of a rule promulgated during the interim           

                                                                                

3   between regular sessions.                                                   

                                                                                

4       (2) The committee shall electronically notify the agency                    

                                                                                

5   promulgating the rule, the secretary of state, the department of            

                                                                                

6   management and budget, and the  legislative service bureau and              

                                                                                

7   office of regulatory reform of any rule or part of a rule the               

                                                                                

8   committee suspends.  , and the  A rule or part of a rule                    

                                                                                

9   suspended under this section shall not be published in the                  

                                                                                

10  Michigan register or in the Michigan administrative code while              

                                                                                

11  suspended.                                                                  

                                                                                

12      (3) A rule suspended by the committee continues to be                       

                                                                                

13  suspended  no  not longer than the end of the next regular                  

                                                                                

14  legislative session.                                                        

                                                                                

15      Sec. 53.  (1) Each agency shall prepare an annual regulatory                

                                                                                

16  plan that reviews the agency's rules.  The annual regulatory plan           

                                                                                

17  shall be electronically transmitted to the office of regulatory             

                                                                                

18  reform.                                                                     

                                                                                

19      (2) In completing the annual regulatory plan required by this               

                                                                                

20  section, the agency shall identify the rules it reasonably                  

                                                                                

21  expects to process in the next year, the mandatory statutory rule           

                                                                                

22  authority it has not exercised, and the rules it expects to                 

                                                                                

23  rescind in the next year.                                                   

                                                                                

24      (3) The annual regulatory plans completed pursuant to this                  

                                                                                

25  section are advisory only and do not otherwise bind the agency or           

                                                                                

26  in any way prevent additional action.                                       

                                                                                

27      (4) Annual regulatory plans completed under subsection (1)                  


                                                                                

1   shall be electronically filed with the office of regulatory                 

                                                                                

2   reform by July 1 of each year.  After the office of regulatory              

                                                                                

3   reform approves the plan for review, the office of regulatory               

                                                                                

4   reform shall electronically provide a copy of the plan of review            

                                                                                

5   to the committee.  The committee shall electronically provide a             

                                                                                

6   copy of each agency plan of review, not later than the next                 

                                                                                

7   business day after receipt of the plan of review from the office            

                                                                                

8   of regulatory reform, to members of the committee and to members            

                                                                                

9   of the standing committees of the senate and house of                       

                                                                                

10  representatives that deal with the subject matter of rules the              

                                                                                

11  agency may propose.