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HB-5817, As Passed House, June 9, 2026
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HOUSE BILL NO. 5817
A bill to amend 1969 PA 306, entitled
"Administrative procedures act of 1969,"
by amending sections 39 and 45 (MCL 24.239 and 24.245), section 39
as amended by 2011 PA 239 and section 45 as amended by 2023 PA 104,
and by adding sections 47a and 67c.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 39. (1) Before initiating any changes or additions to 1
rules, an agency shall electronically file with the office of 2
regulatory reinvention a request for rule-making in a format 3
rulemaking on a form and in a manner prescribed by the office. of 4
April 16, 2026, Introduced by Reps. Aragona, DeBoyer, Johnsen, Wozniak, Kunse, Prestin, Roth,
Borton, Schmaltz, Thompson, Cavitt, St. Germaine, Paquette, Wortz, Green, Bierlein, Harris,
Smit, Bruck, Hoadley, Meerman and Kelly and referred to Committee on Rules.
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regulatory reinvention. The request for rule-making shall 1
rulemaking must include the following: 2
(a) The state or federal statutory or regulatory basis for the 3
rule. 4
(b) The problem the rule intends to address. 5
(c) An assessment of the significance of the problem. 6
(d) If applicable, the decision record. 7
(e) A statement identifying the rule as either a major rule or 8
a nonmajor rule. 9
(2) If an agency receives recommendations or comments by any 10
an advisory committee or other advisory entity created by statute 11
regarding a request for rule-making, rulemaking, the advisory 12
committee or entity shall issue to the agency a decision record. 13
(3) An agency shall not proceed with the processing of a rule 14
outlined in this chapter unless the office of regulatory 15
reinvention has approved the request for rule-making. rulemaking. 16
The office of regulatory reinvention is not required to approve a 17
request for rule-making rulemaking and shall do so only after it 18
the office has indicated in its the response to the request for 19
rule-making rulemaking that was submitted by an the agency that 20
there are appropriate and necessary policy and legal bases for 21
approving the request for rule-making.rulemaking. 22
(4) The office of regulatory reinvention shall record the 23
receipt of all requests for rule-making rulemaking on the internet 24
and shall make electronic or paper copies of approved requests for 25
rule-making rulemaking available to members of the general public. 26
The office of regulatory reinvention shall issue a written or 27
electronic response to the request for rule-making rulemaking that 28
specifically addresses whether the request for rulemaking has 29
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appropriate and necessary policy and legal bases for approving the 1
request for rule-making.approval. 2
(5) The office of regulatory reinvention shall immediately 3
make available to the committee and the legislative service bureau 4
electronic copies of the any request for rule-making rulemaking 5
submitted to the office. of regulatory reinvention. On a weekly 6
basis, the office of regulatory reinvention shall electronically 7
provide to the committee and the legislative service bureau a 8
listing of all requests for rule-making rulemaking approved or 9
denied during the previous week. The committee shall electronically 10
provide a copy of the approved and denied requests for rule-making, 11
listing described in this subsection, not later than the next 12
business day after receipt of the notice listing from the office, 13
of regulatory reinvention, to members of the committee and to the 14
members of the standing committees of the senate and house of 15
representatives that deal with the subject matter of the proposed 16
rule. 17
Sec. 45. (1) Except as otherwise provided in this subsection 18
and subsection (2), an agency shall electronically submit a 19
proposed rule and the regulatory impact analysis report to the 20
legislative service bureau for its formal certification. If 21
requested by the legislative service bureau, the office shall also 22
transmit up to 4 paper copies of the proposed rule. The legislative 23
service bureau shall review the proposed rule as to all matters of 24
form, classification, and arrangement and work with the senate 25
fiscal agency and the house fiscal agency to ensure that the 26
regulatory impact analysis report is accurate. If the legislative 27
service bureau determines that the rule is proper in form, 28
classification, and arrangement, and the regulatory impact analysis 29
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report is accurate, not later than 30 business days after the 1
proposed rule and regulatory impact analysis report are submitted 2
under this subsection, the legislative service bureau shall 3
promptly issue a certificate of approval. indicating whether The 4
certificate of approval must indicate that the proposed rule is 5
proper as to all matters of form, classification, and arrangement . 6
If the legislative service bureau fails to issue a certificate of 7
approval within 21 calendar days after receipt of the submission 8
for formal certification, the office may issue a certificate of 9
approval. and must indicate whether the proposed rule is a major 10
rule or nonmajor rule. If the legislative service bureau determines 11
that the proposed rule has an error in form, classification, or 12
arrangement or that the regulatory impact analysis report is 13
inaccurate, or both, the legislative service bureau must return the 14
proposed rule or the regulatory impact analysis report, or both, to 15
the agency before the expiration of the 30-day time period and 16
describe, in writing, the errors or inaccuracies. If the 17
legislative service bureau returns the submission proposed rule or 18
the regulatory impact analysis report, or both, to the agency, 19
before the expiration of the 21-calendar-day time period, the 21-20
calendar-day time period is tolled until and the agency resubmits 21
the proposed rule or regulatory impact analysis report with 22
changes, the legislative service bureau has 30 business days to 23
review the resubmitted proposed rule is resubmitted by the agency. 24
After resubmission, the legislative service bureau has the 25
remainder of the 21-calendar-day time period or 6 calendar days, 26
whichever is longer, to consider the formal certification of the 27
rule. The office may approve a proposed rule if it considers the 28
proposed rule to be legal and appropriate.or regulatory impact 29
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analysis report, or both, to determine whether the errors or 1
inaccuracies were corrected and issue a certificate of approval 2
under this subsection. If the legislative service bureau determines 3
that the resubmitted proposed rule is proper in form, 4
classification, and arrangement, that the resubmitted regulatory 5
impact analysis report is accurate, and that the errors and 6
inaccuracies have been corrected, the legislative service bureau 7
shall issue a certificate of approval under this subsection. 8
(2) An agency shall electronically submit a proposed rule to 9
which sections 41 and 42 do not apply as provided in section 44 to 10
the legislative service bureau for formal certification. The 11
legislative service bureau shall review the proposed rule as to all 12
matters of form, classification, and arrangement and determine that 13
the proposed rule complies with 1 or more of the statements in 14
section 44(1). If the legislative service bureau determines that 15
the rule is proper in form, classification, and arrangement, and 16
the proposed rule complies with 1 or more of the statements in 17
section 44(1), not later than 30 business days after the proposed 18
rule is submitted under this subsection, the legislative service 19
bureau shall issue a certificate of approval. The certificate of 20
approval must indicate that the proposed rule is proper as to all 21
matters of form, classification, and arrangement and that the 22
proposed rule complies with the requirements in section 44(1). If 23
the legislative service bureau determines that the proposed rule 24
has an error in form, classification, or arrangement, the 25
legislative service bureau must return the proposed rule to the 26
agency before the expiration of the 30-day time period and 27
describe, in writing, the errors or inaccuracies. If the 28
legislative service bureau returns the proposed rule to the agency, 29
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and the agency resubmits the proposed rule with changes, the 1
legislative service bureau has 30 business days to review the 2
resubmitted proposed rule and issue a certificate of approval under 3
this subsection. If the legislative service bureau determines that 4
the resubmitted proposed rule is proper in form, classification, 5
and arrangement, that the errors and inaccuracies have been 6
corrected, and that the proposed rule complies with 1 or more of 7
the statements in section 44(1), the legislative service bureau 8
shall issue a certificate of approval under this subsection. If the 9
legislative service bureau determines that the proposed rule does 10
not comply with 1 or more of the statements in section 44(1), the 11
legislative service bureau must return the proposed rule to the 12
agency before the expiration of the 30-day time period and 13
describe, in writing, why the proposed rule does not comply with 14
section 44(1), and the rulemaking process is terminated. 15
Termination under this subsection does not prevent the agency from 16
initiating a new rulemaking for the same or substantially similar 17
adoption. 18
(3) (2) Except as provided in subsection (6), (8), after 19
notice is given as provided in this act and before the agency 20
proposing the rule has formally adopted the rule, the agency shall 21
prepare an agency report containing that contains a synopsis of the 22
comments contained in the public hearing record, a copy of the 23
request for rule-making, and rulemaking, the regulatory impact 24
statement required under subsection (3) (4), and the regulatory 25
impact analysis report required under subsection (5). In the agency 26
report, the agency shall indicate whether the rule is a major rule 27
or a nonmajor rule and describe any changes in the proposed rules 28
that were made by the agency after the public hearing. The office 29
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shall transmit by notice of transmittal to the committee for a 1
nonmajor rule or to the legislature for a major rule, as 2
applicable, copies of the rule, the agency reports containing that 3
contain the request for rule-making, rulemaking, a copy of the 4
regulatory impact statement required under subsection (4), a copy 5
of the regulatory impact analysis report required under subsection 6
(5), and certificates the certificate of approval from issued by 7
the legislative service bureau and the office. under subsection 8
(1). The office shall also electronically submit to the committee 9
for a nonmajor rule or to the legislature for a major rule, as 10
applicable, a copy of the rule, any the agency reports required 11
under this subsection, any the regulatory impact statements 12
required under subsection (3), (4), the regulatory impact analysis 13
report required under subsection (5), and any certificates the 14
certificate of approval required issued by the legislative service 15
bureau under subsection (1). The agency shall electronically 16
transmit to the committee for a nonmajor rule or the legislature 17
for a major rule, as applicable, the records described in this 18
subsection within not later than 1 year after the date of the last 19
public hearing on the proposed rule. The office shall not provide a 20
notice of transmittal of a rule under this subsection to the 21
committee or the legislature on or after December 1 of an even-22
numbered year. 23
(4) (3) Except as provided in subsection (6), (8), an agency 24
shall prepare and include with a notice of transmittal under 25
subsection (2) (3) the request for rule-making rulemaking and the 26
response from the office, a small business impact statement 27
prepared under section 40, and a regulatory impact statement 28
required under this subsection, and the regulatory impact analysis 29
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report required under subsection (5). The regulatory impact 1
statement must contain all of the following information: 2
(a) A comparison of the proposed rule to parallel federal 3
rules or standards set by a state or national licensing agency or 4
accreditation association, if any exist. 5
(b) If requested by the office or the committee, a comparison 6
of the proposed rule to standards in similarly situated states, 7
based on geographic location, topography, natural resources, 8
commonalities, or economic similarities. 9
(c) An identification of the behavior and frequency of 10
behavior that the rule is designed to alter. 11
(d) An identification of the harm resulting from the behavior 12
that the rule is designed to alter and the likelihood that the harm 13
will occur in the absence of the rule. 14
(e) An estimate of the change in the frequency of the targeted 15
behavior expected from the rule. 16
(f) An identification of the businesses, groups, or 17
individuals who will be directly affected by, bear the cost of, or 18
directly benefit from the rule. 19
(g) An identification of any reasonable alternatives to 20
regulation under the proposed rule that would achieve the same or 21
similar goals. 22
(h) A discussion of the feasibility of establishing a 23
regulatory program similar to that proposed in the rule that would 24
operate through market-based mechanisms. 25
(i) An estimate of the cost of rule imposition on the agency 26
promulgating the rule. 27
(j) An estimate of the actual statewide compliance costs of 28
the proposed rule on individuals. 29
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(k) A demonstration that the proposed rule is necessary and 1
suitable to achieve its purpose in proportion to the burdens it the 2
proposed rule places on individuals. 3
(l) An estimate of the actual statewide compliance costs of the 4
proposed rule on businesses and other groups. 5
(m) An identification of any disproportionate impact the 6
proposed rule may have on small businesses because of their size. 7
(n) An identification of the nature of any report required and 8
the estimated cost of its preparation by small businesses required 9
to comply with the proposed rule. 10
(o) An analysis of the costs of compliance for all small 11
businesses affected by the proposed rule, including costs of 12
equipment, supplies, labor, and increased administrative costs. 13
(p) An identification of the nature and estimated cost of any 14
legal consulting and accounting services that small businesses 15
would incur in complying with the proposed rule. 16
(q) An estimate of the ability of small businesses to absorb 17
the costs estimated under subdivisions (n) to (p) without suffering 18
economic harm and without adversely affecting competition in the 19
marketplace. 20
(r) An estimate of the cost, if any, to the agency of 21
administering or enforcing a rule that exempts or sets lesser 22
standards for compliance by small businesses. 23
(s) An identification of the impact on the public interest of 24
exempting or setting lesser standards of compliance for small 25
businesses. 26
(t) A statement describing that describes the manner in which 27
the agency reduced the economic impact of the rule on small 28
businesses or a statement describing the reasons such that a 29
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reduction was not feasible. 1
(u) A statement describing that describes how the agency has 2
involved small businesses in the development of the rule. 3
(v) An estimate of the primary and direct benefits of the 4
rule. 5
(w) An estimate of any cost reductions to businesses, 6
individuals, groups of individuals, or governmental units as a 7
result of the rule. 8
(x) An estimate of any increase in revenues to state or local 9
governmental units as a result of the rule. 10
(y) An estimate of any secondary or indirect benefits of the 11
rule. 12
(z) An identification of the sources the agency relied on in 13
compiling the regulatory impact statement, including the 14
methodology used in determining the existence and extent of the 15
impact of a proposed rule and a cost-benefit analysis of the 16
proposed rule. 17
(aa) A detailed recitation of the efforts of the agency to 18
comply with the mandate to reduce the disproportionate impact of 19
the rule on small businesses as described in section 40(1)(a) to 20
(d). 21
(bb) Any other information required by the office. 22
(5) An agency shall prepare and include with a notice of 23
transmittal under subsection (3) the request for rulemaking, a 24
small business impact statement prepared under section 40, a 25
regulatory impact statement required under subsection (4), and the 26
regulatory impact analysis report required under this subsection. 27
The regulatory impact analysis report must contain all of the 28
following information: 29
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(a) A statement of need. 1
(b) The citation to the rule promulgation authority. 2
(c) An examination of the alternatives to the draft proposed 3
rule. 4
(d) An evaluation of costs and benefits for implementing the 5
draft proposed rule, including, but not limited to, estimates of 6
all of the following: 7
(i) Primary or direct benefits. 8
(ii) Cost savings or financial benefits to the public. 9
(iii) Compliance costs for regulated entities. 10
(iv) Secondary or indirect costs. 11
(v) Effects on state revenue and state expenditures and 12
administrative expenses. 13
(vi) Opportunity cost of compliance as a result of the removal 14
of private capital from the market. 15
(6) (4) An agency shall electronically transmit the regulatory 16
impact statement required under subsection (3) (4) and the 17
regulatory impact analysis report required under subsection (5) to 18
the office not less than 28 days before the public hearing required 19
under section 41. The agency shall not hold the public hearing 20
until the regulatory impact statement has been and regulatory 21
impact analysis report are reviewed and approved by the office. The 22
agency shall also electronically transmit a copy of the regulatory 23
impact statement and regulatory impact analysis report to the 24
committee before the public hearing and the agency shall make 25
copies available to the public at the public hearing. The agency 26
shall publish the regulatory impact statement and regulatory impact 27
analysis report on its the agency's website not less than 10 days 28
before the date of the public hearing. 29
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(7) (5) The For a nonmajor rule, the committee shall 1
electronically transmit to the senate fiscal agency and the house 2
fiscal agency a copy of each proposed nonmajor rule, and regulatory 3
impact statement, filed with and regulatory impact analysis report 4
transmitted to the committee under a notice of transmittal under 5
subsection (3) and a copy of the agenda identifying that identifies 6
the proposed nonmajor rules to be considered by the committee. For 7
a major rule, if a concurrent resolution is introduced under 8
section 67c, the standing committee to which the concurrent 9
resolution is referred shall electronically transmit to the senate 10
fiscal agency and the house fiscal agency a copy of the proposed 11
major rule that is the subject of the concurrent resolution and the 12
regulatory impact statement and regulatory impact analysis report 13
transmitted to the legislature under a notice of transmittal under 14
subsection (3). The senate fiscal agency and the house fiscal 15
agency shall analyze each proposed nonmajor or major rule, as 16
applicable, for possible fiscal implications that, if the rule were 17
adopted, would result in additional appropriations in the current 18
fiscal year or commit the legislature to an appropriation in a 19
future fiscal year. The senate fiscal agency and the house fiscal 20
agency shall electronically report their the findings to the senate 21
and house appropriations committees and to the committee for a 22
nonmajor rule or the legislature for a major rule, as applicable, 23
before the date of consideration of the proposed nonmajor or major 24
rule by the committee or the legislature, as applicable. 25
(8) (6) Subsections (2), (3), and (4), (5), (6), and (7) do 26
not apply to a rule that is promulgated under section 33 or 48 or a 27
rule to which sections 41 and 42 do not apply as provided in 28
section 44. 29
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Sec. 47a. (1) A rule that is promulgated after the effective 1
date of the amendatory act that added this section is rescinded 5 2
years after the date the rule is promulgated. 3
(2) Subsection (1) does not apply to either of the following: 4
(a) A rule that is required by federal law. 5
(b) A rule promulgated under a statute that provides that this 6
section does not apply to rules promulgated under the statute. 7
(3) An agency may submit a request, in writing, to the 8
legislature for an extension of the effectiveness of a rule for up 9
to 5 years beyond the rescission date under subsection (1). An 10
agency shall not apply for more than 1 extension under this 11
subsection. If the legislature approves the request under this 12
subsection by concurrent resolution, the rule is rescinded on the 13
extended date approved by the legislature in the concurrent 14
resolution. 15
(4) A request under subsection (3) must be made in writing and 16
include a cost-benefit analysis. The agency shall submit the report 17
to the senate majority leader and speaker of the house of 18
representatives not less than 1 year, but not more than 2 years, 19
before the rescission date under subsection (1) and shall make the 20
report available on the agency's website. The legislature may 21
require the agency to provide any additional information the 22
legislature determines is necessary to consider the agency's 23
request. 24
(5) The secretary of state shall provide notice to an agency 25
not less than 18 months before a rule's rescission date under 26
subsection (1). 27
Sec. 67c. (1) Subject to subsection (2), not later than 90 28
calendar days after the legislature receives a notice of 29
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RMH H03296'25_HB5817_APH_1 hy4u63
transmittal of a proposed major rule from an agency under section 1
45 or receives the transmitted documents from the committee under 2
section 67b(1)(d), the legislature may adopt a concurrent 3
resolution that approves and provides for an effective date of the 4
proposed major rule. 5
(2) If, on or before December 1 of the even-numbered year of 6
the legislative term in which the legislature received a notice of 7
transmittal under section 45, the legislature does not take action 8
as described under subsection (1), the agency shall withdraw the 9
proposed major rule not later than 2 days after there is a 10
concurrent resolution for a sine die adjournment adopted in the 11
senate and the house of representatives in that even-numbered year. 12
A withdrawal under this subsection terminates the rulemaking with 13
respect to the adoption but does not prevent the agency from 14
initiating new rulemaking for the same or substantially similar 15
adoption. 16
(3) Before the effective date specified in the concurrent 17
resolution adopted under subsection (1), an agency may withdraw the 18
adoption of a proposed major rule by giving notice of the 19
withdrawal to the legislature and to the office for publication in 20
the Michigan Register. A withdrawal under this subsection 21
terminates the rulemaking with respect to the adoption but does not 22
prevent the agency from initiating new rulemaking for the same or 23
substantially similar adoption. 24
Enacting section 1. This amendatory act does not take effect 25
unless House Bill No. 5818 (request no. H03498'25) of the 103rd 26
Legislature is enacted into law. 27