Bill Summary – FastDemocracy

HOUSE BILL NO. 5674
     April 25, 2024, Introduced by Reps. Prestin, Kuhn, Maddock, Hoadley, Schuette, Hall, Outman,
       BeGole, Borton, Kunse, DeBoyer, Aragona, Wozniak, Harris, DeSana, Smit, DeBoer, Zorn,
       Alexander, Bezotte, Bierlein, Bruck, VanderWall, Thompson, Markkanen, Neyer, Slagh, Fox,
       Martin and Beson and referred to the Committee on Government Operations.
           A bill to amend 1969 PA 306, entitled
    "Administrative procedures act of 1969,"
    by amending sections 33, 39a, 41, 42, 43, 44, 47, and 48 (MCL
233, 24.239a, 24.241, 24.242, 24.243, 24.244, 24.247, and
248), as amended by 2024 PA 9, and by adding sections 63a and
    63b.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
        Sec. 33. (1) An agency shall promulgate rules describing its
 organization and stating the general course and method of its
    RMH                                                                              05694'24 *
                                       2
 operations. The agency may include in the rules forms with
 instructions. Sections 41, 42, 45, and 45a, and 63b do not apply to
 promulgation of the rules.
       (2) An agency shall promulgate rules prescribing its
 procedures available to the public and the methods by which the
 public may obtain information and submit requests.
       (3) An agency may promulgate rules prescribing procedures for
 contested cases. The rules must be consistent with this act and
 other applicable statutes.
       Sec. 39a. (1) An Subject to section 63b, an agency may publish
 the notice of hearing under section 42 only if the office has
 received draft proposed rules and has given the agency approval to
 proceed with a public hearing.
       (2) After a grant of approval to hold a public hearing by the
 office under subsection (1), the office shall immediately provide a
 copy of the proposed rules to the committee. The committee shall
 provide a copy of the proposed rules, not later than the next
 business day after receipt of the notice from the office, to
 members of the committee and members of the standing committees of
 the senate and house of representatives that deal with the subject
 matter of the proposed rule.
       Sec. 41. (1) Except as provided in section sections 44 and
 63b, before the adoption of a rule, an agency, or the office, shall
 give notice of a public hearing and offer a person an opportunity
 to present data, views, questions, and arguments. The notice must
 be given within the time prescribed by any applicable statute, or
 if none, in the manner prescribed in section 42(1).
       (2) The notice described in subsection (1) must include all of
 the following:
     RMH                                                          05694'24 *
                                         3
         (a) A reference to the statutory authority under which the
 action is proposed.
         (b) The time and place of the public hearing and a statement
 of the manner in which data, views, questions, and arguments may be
 submitted by a person to the agency at other times.
         (c) A statement of the terms or substance of the proposed
 rule, a description of the subjects and issues involved, and the
 proposed effective date of the rule.
         (3) The agency, or the office acting on behalf of an agency,
 shall transmit copies of the notice described in subsection (1) to
 each person that requested the agency in writing or electronically
 for advance notice of proposed action that may affect the person.
 If requested, the notice must be by mail, in writing, or
 electronically to the last address specified by the person.
         (4) The public hearing must comply with any applicable
 statute, but is not subject to the provisions governing a contested
 case.
         (5) The head of the promulgating agency or 1 or more persons
 designated by the head of the agency who have knowledge of the
 subject matter of the proposed rule shall be present at the public
 hearing and participate in the discussion of the proposed rule.
         Sec. 42. (1) Except as provided in section sections 44 and
 63b, at a minimum, an agency, or the office acting on behalf of the
 agency, shall publish the notice of public hearing as prescribed in
 any applicable statute or, if none, the agency, or the office
 acting on behalf of the agency, shall publish the notice not less
 than 10 days and not more than 60 days before the date of the
 public hearing in not less than 3 newspapers of general circulation
 in different parts of this state, 1 of which must be in the Upper
     RMH                                                         05694'24 *
                                       4
 Peninsula.
       (2) Additional methods that may be employed to provide notice
 of the public hearing include publication in trade, industry,
 governmental, or professional publications or posting on the
 website of the agency or the office.
       (3) In addition to the requirements of subsection (1), and
 except as provided in section 63b, the agency shall electronically
 submit a copy of the notice of public hearing to the office for
 publication in the Michigan Register. If the office submitted the
 notice of public hearing on behalf of the agency, the office shall
 publish the notice of public hearing in the Michigan Register. An
 agency's notice must be published in the Michigan Register before
 the public hearing and the agency shall electronically file a copy
 of the notice of public hearing with the office. Within 7 days
 after receipt of the notice of public hearing and before the public
 hearing, the office shall do all both of the following:
       (a) Electronically transmit a copy of the notice of public
 hearing to the committee.
       (b) Provide notice electronically through publicly accessible
 internet media.
       (4) After the office electronically transmits a copy of the
 notice of public hearing to the committee, the committee shall
 electronically transmit copies of the notice of public hearing, not
 later than the next business day after receipt of the notice from
 the office, to each member of the committee and the members of the
 standing committees of the senate and house of representatives that
 deal with the subject matter of the proposed rule.
       (5) After receipt of the notice of public hearing filed under
 subsection (3), the committee may meet to consider the proposed
     RMH                                                       05694'24 *
                                        5
 rule, take testimony, and provide the agency with the committee's
 informal response to the rule.
        Sec. 43. (1) Except for an emergency rule promulgated in the
 manner described in section 48, a rule is not valid unless it is
 processed in compliance with section 63b, if applicable, section
 42, and in substantial compliance with section 41(2), (3), (4), and
 (5).
        (2) A proceeding to contest a rule on the ground of
 noncompliance with the requirements of sections 41 and 42 or
 section 63b must be commenced within 2 years after the effective
 date of the rule.
        Sec. 44. (1) Sections 41, and 42, and 63b do not apply to an
 amendment or rescission of a rule that is obsolete or superseded,
 or that is required to make obviously needed corrections to make
 the rule conform to an amended or new statute or to accomplish any
 other solely formal purpose, if a statement to that effect is
 included in the legislative service bureau certificate of approval
 of the rule.
        (2) Sections 41 and 42 do not apply to a rule that is
 promulgated under the Michigan occupational safety and health act,
 1974 PA 154, MCL 408.1001 to 408.1094, that is substantially
 similar to an existing federal standard that has been adopted or
 promulgated under the occupational safety and health act of 1970,
 Public Law 91-596. However, notice of the proposed rule must be
 published in the Michigan Register not less than 35 days before the
 rule is filed with the secretary of state under section 46(1). A
 reasonable period, not to exceed 21 days, must be provided for the
 submission of written or electronic comments and views following
 publication in the Michigan Register.
     RMH                                                          05694'24 *
                                       6
       (3) Sections 41 and 42 do not apply to a change to a proposed
 rule by an agency during processing of the rule if the office
 determines under section 45c(3) that the regulatory impact and
 impact on small businesses of the changed proposed rule are not
 more burdensome than the regulatory impact and impact on small
 businesses of the original proposed rule.
       (4) For purposes of As used in subsection (2), "substantially
 similar" means identical, with the exception of style or format
 differences needed to conform to this or other state laws, as
 determined by the office.
       Sec. 47. (1) Except for a rule processed under section 48, a
 rule becomes effective on the date fixed in the rule, which must
 not be earlier than 7 days after the date of promulgation, or, if a
 date is not fixed in the rule, 7 days after the date of
 promulgation.
       (2) Except for a rule processed under section 48 or 63b, an
 agency may withdraw a promulgated rule that has not become
 effective by filing a written request stating reasons for
 withdrawal to the secretary of state on or before the last day for
 filing rules for the interim period in which the rules were first
 filed, or by filing a written request for withdrawal to the
 secretary of state and the office, within a reasonable time, as
 determined by the office, after the last day for filing and before
 publication of the rule in the next supplement to the code. In any
 other circumstances, an agency may abrogate its rule only by
 rescission. If an agency has withdrawn a promulgated rule, it the
 agency shall give notice, stating reasons, to the committee that
 the rule has been withdrawn.
       (3) Sections 45 and 45a apply to rules for which a public
     RMH                                                         05694'24 *
                                       7
 hearing has not been held by April 1, 2000.
       Sec. 48. (1) If an agency finds that preservation of the
 public health, safety, or welfare requires promulgation of an
 emergency rule without following the notice and participation
 procedures required by sections 41 and 42 and states in the rule
 the agency's reasons for that finding, and the governor concurs in
 the finding of emergency, the agency may dispense with all or part
 of the procedures and file in the office of the secretary of state
 the copies prescribed by section 46 endorsed as an emergency rule,
 to 3 of which copies must be attached the certificates prescribed
 by section 45 and the governor's certificate concurring in the
 finding of emergency. The emergency rule is effective on filing and
 remains in effect until a date fixed in the rule or 6 months after
 the date of its filing, whichever is earlier. The rule may be
 extended once for not more than 6 months by the filing of a
 governor's certificate of the need for the extension with the
 office of the secretary of state before expiration of the emergency
 rule. Any period or extension during which an emergency rule is
 effective under this subsection is tolled from the date that the
 environmental rules review committee makes a determination as to a
 similar rule under section 63b(5)(c) until the date a public
 hearing is held on the rule under section 63b(7).
       (2) If the director of the department of health and human
 services determines that an imminent danger to the health or lives
 of individuals in this state can be prevented or controlled by
 scheduling a substance as a controlled substance under section
 2251(4) of the public health code, 1978 PA 368, MCL 333.2251, and
 the administrator determines that the substance should be scheduled
 or rescheduled as a controlled substance, the department of
     RMH                                                       05694'24 *
                                       8
 licensing and regulatory affairs may dispense with all or part of
 the procedures required by sections 41 and 42 and file in the
 office of the secretary of state the copies prescribed by section
 46 endorsed as an emergency rule, to 3 of which copies must be
 attached the certificate of approval and the director of the
 department of health and human services's services' notification
 under section 2251(4) of the public health code, 1978 PA 368, MCL
 333.2251. The office shall submit the emergency rule draft language
 to the legislative service bureau for its formal certification
 within 7 business days after receipt from the department of
 licensing and regulatory affairs. The legislative service bureau
 shall issue a certificate of approval indicating whether the
 proposed rule is proper as to all matters of form, classification,
 and arrangement within 7 business days after receiving the
 submission and return the rule to the office. If the legislative
 service bureau fails to issue a certificate of approval within 7
 business days after receipt of the submission for formal
 certification, the office may issue a certificate of approval. If
 the legislative service bureau returns the submission to the office
 before the expiration of the 7-business-day time period, the 7-
 business-day time period is tolled until the rule is returned by
 the office. The legislative service bureau has the remainder of the
 7-business-day time period to consider the formal certification of
 the rule. On receipt from the legislative service bureau, the
 office shall, within 7 business days, approve the proposed rule if
 it considers the proposed rule to be legal and appropriate. An
 emergency rule adopted under this subsection remains in effect
 until the earlier date of the following:
       (a) An identical or similar rule is promulgated.
     RMH                                                        05694'24 *
                                       9
       (b) An identical or similar bill is enacted into law.
       (c) The administrator determines that the emergency rule is no
 longer necessary.
       (d) Six months after the date of its filing, which may be
 extended for not more than 6 months by the administrator on filing
 a certificate of extension with the office of the secretary of
 state before the expiration of 6 months after the date of its
 filing.
       (3) An emergency rule must not be numbered and must not be
 compiled in the Michigan Administrative Code, but must be noted in
 the annual supplement to the code. The emergency rule must be
 published in the Michigan Register under section 8.
       (4) If the agency desires to promulgate an identical or
 similar rule with an effectiveness beyond the final effective date
 of an emergency rule, the agency shall comply with the procedures
 prescribed by this act for the processing of a rule that is not an
 emergency rule. The rule must be published in the Michigan Register
 and the code.
       (5) As used in this section, "administrator" means that term
 as defined in section 7103 of the public health code, 1978 PA 368,
 MCL 333.7103.
       Sec. 63a. (1) The environmental rules review committee is
 created as an independent body in the office.
       (2) The environmental rules review committee consists of the
 following members:
       (a) The following nonvoting members:
       (i) The director of the department of environment, Great Lakes,
 and energy, or the director's designee.
       (ii) The director of the department of health and human
     RMH                                                        05694'24 *
                                       10
 services, or the director's designee.
       (iii) The director of the department of agriculture and rural
 development, or the director's designee.
       (iv) The director of the department of natural resources, or
 the director's designee.
       (b) The following voting members appointed by the governor by
 and with the advice and consent of the senate:
       (i) One individual who represents the solid waste management
 industry.
       (ii) One individual who represents a statewide manufacturing
 organization.
       (iii) One individual who represents a statewide organization
 that represents small businesses.
       (iv) One individual who represents public utilities that engage
 in the generation, transmission, or distribution of electricity.
       (v) One individual who represents a statewide environmental
 organization.
       (vi) One individual who represents the oil and gas industry.
       (vii) One individual who represents a statewide agricultural
 organization.
       (viii) One individual who represents local governments.
       (ix) One individual who represents a statewide land conservancy
 organization.
       (x) Two individuals from the Upper Peninsula of this state who
 represent the general public.
       (xi) Two individual