SENATE BILL NO. 851
May 01, 2024, Introduced by Senator THEIS and referred to the Committee on Finance, Insurance,
and Consumer Protection.
A bill to amend 1969 PA 306, entitled
"Administrative procedures act of 1969,"
by amending sections 8 and 31 (MCL 24.208 and 24.231), section 8 as
amended by 2004 PA 23 and section 31 as amended by 1989 PA 288, and
by adding section 47a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 8. (1) The Michigan office of regulatory reform
2 administrative hearings and rules shall publish the Michigan
3 register Register at least once each month. The Michigan register
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1 shall Register must contain all of the following:
2 (a) Executive orders and executive reorganization orders.
3 (b) On a cumulative basis, the numbers and subject matter of
4 the enrolled senate and house of representatives bills signed into
5 law by the governor during the calendar year and the corresponding
6 public act numbers.
7 (c) On a cumulative basis, the numbers and subject matter of
8 the enrolled senate and house of representatives bills vetoed by
9 the governor during the calendar year.
10 (d) Proposed administrative rules.
11 (e) Notices of public hearings on proposed administrative
12 rules.
13 (f) Administrative rules filed with the secretary of state.
14 (g) Emergency rules filed with the secretary of state.
15 (h) Notice of proposed and adopted agency guidelines.
16 (i) Other official information considered necessary or
17 appropriate by the Michigan office of regulatory
18 reform.administrative hearings and rules.
19 (j) Attorney general opinions.
20 (k) All of the items listed in section 7(m) after final
21 approval by the certificate of need commission under section 22215
22 of the public health code, 1978 PA 368, MCL 333.22215.
23 (l) The rule review list described under section 47a(2).
24 (m) The notice of deficient report described under section
25 47a(7).
26 (2) The Michigan office of regulatory reform administrative
27 hearings and rules shall publish a cumulative index for the
28 Michigan register.Register.
29 (3) The Michigan register shall Register must be available for
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1 public subscription at a fee reasonably calculated to cover
2 publication and distribution costs.
3 (4) If publication of an agency's proposed rule or guideline
4 or an item described in subsection (1)(k) would be unreasonably
5 expensive or lengthy, the Michigan office of regulatory reform
6 administrative hearings and rules may publish a brief synopsis of
7 the proposed rule or guideline or item described in subsection
8 (1)(k), including information on how to obtain a complete copy of
9 the proposed rule or guideline or item described in subsection
10 (1)(k) from the agency at no cost.
11 (5) An agency shall electronically transmit a copy of the
12 proposed rules and notice of public hearing to the Michigan office
13 of regulatory reform administrative hearings and rules for
14 publication in the Michigan register.Register.
15 Sec. 31. (1) Rules which that became effective before July 1,
16 1970 continue in effect until amended or rescinded.
17 (2) When a law authorizing or directing an agency to
18 promulgate rules is repealed and substantially the same rule-making
19 power or duty is vested in the same or a successor agency by a new
20 provision of law or the function of the agency to which the rules
21 are related is transferred to another agency, by law or executive
22 order, the existing rules of the original agency relating thereto
23 to it continue in effect until amended or rescinded, and the agency
24 or successor agency may rescind any rule relating to the function.
25 When a law creating an agency or authorizing or directing it to
26 promulgate rules is repealed or the agency is abolished and
27 substantially the same rule-making power or duty is not vested in
28 the same or a successor agency by a new provision of law and the
29 function of the agency to which the rules are related is not
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1 transferred to another agency, the existing applicable rules of the
2 original agency are automatically rescinded as of the effective
3 date of the repeal of such law or the abolition of the agency.
4 (3) The rescission of a rule does not revive a rule which was
5 previously rescinded.
6 (4) The amendment or rescission of a valid rule does not
7 defeat or impair a right accrued, or affect a penalty incurred,
8 under the rule.
9 (5) Except in the case of the amendment of rules concerning
10 inmates as described in section 7(k), a rule may be amended or
11 rescinded by another rule which constitutes the whole or a part of
12 a filing of rules or as a result of an act of the legislature.
13 (6) A rule is automatically rescinded under section 47a(7)
14 when the Michigan office of administrative hearings and rules
15 provides notice to the secretary of state.
16 Sec. 47a.(1) By January 31, 2025, and biennially thereafter,
17 each agency that has promulgated rules or that is the successor to
18 an agency that promulgated rules shall select for review 25% of
19 those rules currently in effect and submit a list of the selected
20 rules to the Michigan office of administrative hearings and rules.
21 Each rule must be reviewed at least once every 8 years.
22 (2) Using the lists submitted under subsection (1), the
23 Michigan office of administrative hearings and rules shall publish
24 a rule review list in the Michigan Register under section 8. The
25 rule review list must include all of the following information:
26 (a) All the rules being reviewed.
27 (b) A statement that a person may submit to the agency that
28 promulgated the rule any comments concerning the rule being
29 reviewed within 60 days after the rule review list is published in
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1 the Michigan Register. Each comment filed must contain the
2 following information:
3 (i) The name of the person submitting the comment.
4 (ii) A specification of the rule being commented on.
5 (iii) Any views or arguments regarding the rule being commented
6 on.
7 (c) The address to which written comments may be sent and the
8 date by which comments must be mailed or electronically submitted.
9 (3) The comments submitted under subsection (2)(b) must be
10 submitted to the agency that promulgated the rule the comment is
11 concerning.
12 (4) By July 31 in the year following the year the rule review
13 list under subsection (2) was published in the Michigan Register,
14 each agency shall prepare and submit a rule report that contains
15 all of the following information:
16 (a) Whether each rule is necessary, outdated, or duplicative.
17 (b) Whether a less restrictive, more narrowly tailored, or
18 alternative rule could adequately accomplish the same purpose.
19 (c) Whether each rule needs to be updated or should be
20 rescinded.
21 (d) The fiscal impact of each rule on the agency that
22 promulgated the rule.
23 (e) The fiscal impact of each rule on businesses and
24 individuals, as applicable, including whether the rule has a
25 disproportionate impact on businesses of a certain size, within a
26 certain industry, or in a certain geographic area of this state.
27 (f) The fiscal impact of the rule on local governments.
28 (g) A list of the comments received under subsection (2)(b)
29 and the agency's response to each comment, as applicable.
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1 (h) Whether the legislature explicitly delegated statutory
2 authority for promulgating the rule.
3 (i) If the legislature delegated statutory authority under
4 subdivision (h), if the statutory delegation is general or specific
5 and mandatory or permissive.
6 (5) The rule report under subsection (4) must be made
7 available on the agency's website and provided to all of the
8 following:
9 (a) The committee.
10 (b) The governor.
11 (c) The standing committees of the senate and house of
12 representatives with primary responsibilities for issues pertaining
13 to the agency.
14 (d) The auditor general.
15 (e) The appropriations committees of the senate and house of
16 representatives.
17 (f) The appropriations subcommittees with primary
18 responsibilities for issues pertaining to the agency.
19 (6) The committee shall electronically provide a copy of the
20 rule report under subsection (4) not later than the next business
21 day after receipt of the rule report from the agency, to the
22 members of the committee.
23 (7) After the committee receives the rule report under
24 subsection (6), the committee has 21 session days in which to
25 consider the rule report and determine if the rule report contains
26 a missing rule. If the committee decides that the rule report
27 contains a missing rule, the committee may decide to allow the
28 missing rule to remain in effect as described in subsection (9). If
29 the committee determines that a rule report contains a missing
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1 rule, within 6 session days, the committee must provide notice to
2 the agency that submitted the rule report, the Michigan office of
3 administrative hearings and rules, and the secretary of state. The
4 notice must contain a list of all the missing rules and any missing
5 rules that the committee decided were allowed to remain in effect
6 under this subsection, as applicable. The Michigan office of
7 administrative hearings and rules shall publish the notice in the
8 next edition of the Michigan Register that is published after the
9 notice is received. Within 14 days after the notice is published,
10 the agency that submitted the rule report shall submit a new report
11 in the same manner as described under subsections (4) and (5), that
12 includes any missing rules that the committee did not decide to
13 allow to remain in effect. If the committee decided to allow a
14 missing rule to remain in effect under this subsection, the agency
15 does not need to include that missing rule in the new rule report.
16 If the agency fails to submit a new report, any missing rule that
17 was not included in the report and was not allowed to remain in
18 effect is automatically rescinded. The Michigan office of
19 administrative hearings and rules shall provide notice to the
20 secretary of state of any rule that is rescinded under this
21 subsection. Any action taken by the committee under this subsection
22 must be by a concurrent majority vote as provided under section 35.
23 As used in this subsection:
24 (a) "Missing rule" means a rule that was subject to review and
25 included on the rule review list published under subsection (2),
26 but not included in the rule report under subsection (4).
27 (b) "Session day" means a day in which both the house of
28 representatives and the senate convene in session and a quorum is
29 recorded.
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1 (8) By July 31, 2027, and biennially thereafter, the auditor
2 general shall conduct a performance audit of and provide a
3 performance report on any rule report submitted under subsection
4 (4). The performance report must be submitted to the governor, the
5 leadership of the senate and house of representatives, the
6 committee, all standing committees, the appropriations committees
7 of the senate and house of representatives, the Michigan office of
8 administrative hearings and rules, and the public by posting the
9 report on the auditor general's website. The performance report
10 must contain all of the following information:
11 (a) Whether the department reviewed all required rules.
12 (b) Whether the department's findings regarding statutory
13 delegation of authority on each rule were correct.
14 (c) Whether or not the department's recission of duplicative,
15 outdated, or unnecessary rules was timely.
16 (d) Whether the department completed a performance audit on
17 the impact of the rules on business.
18 (e) Any other information that is relevant to help the
19 legislature determine whether the regulatory review process is
20 working efficiently and effectively.
21 (9) The committee has 6 session days from the date the
22 committee determines that the rule report contains a missing rule
23 to decide to allow the missing rule to remain in effect. If the
24 first vote to allow the missing rule to remain in effect fails, the
25 committee may reconsider the vote within the 6 session days.
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Statutes affected:
Senate Introduced Bill: 24.208, 24.231