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Industry Insider

By Andy Such
MMA Director of Environmental & Regulatory Policy

The Michigan Senate has passed a package of eight bills strongly supported by members of the MMA, designed to streamline and improve regulatory programs throughout state government.

These bills reflect the objectives of MMA and its member companies to streamline the permitting process and make Michigan’s business climate more competitive with other states and nations. The package is now in the House committee of regulatory reform where hearings are expected soon.

Mike Johnston, MMA vice president of government affairs, said that the association has worked on this legislation for over a decade.

“We appreciate the leadership of the senate in moving these bills,” said Johnston. “Many of these ideas are part of MMA’s legislative agenda and we believe they will significantly improve Michigan’s business climate by increasing efficiency in state government. The legislation will make Michigan a more attractive place for manufacturers to do business and create jobs.”

The eight bills were reported out of the Senate Economic Development Committee over a three week period and approved by the entire senate the first week in May.

At the core of this reform package is stopping regulations that exceed federal standards. When Michigan’s regulations exceed federal standards, other states are more attractive for investment. MMA believes these bills will begin to remove a barrier to competitiveness for Michigan.

The bills will:

• Prohibit a state agency from promulgating state rules greater than federal standards; make it clear that guidelines and operational memoranda are advisory only and do not have the effect of law, and require further consideration of the impact a proposed rule will have on a small business. — SB 272, sponsored by Sen. Mike Kowall (R-White Lake)
• Require a “small business impact statement” and “cost benefit analysis” of a proposed rule or regulation. Will also require a comparison of Michigan’s proposed rules with other Great Lakes states. — SB 271, sponsored by Sen. Jack Brandenberg (R-Harrison Twp.)
• Restore legislative oversight of the rules process by allowing the Joint Committee on Administrative Rules (JCAR) to hold a hearing on any rule previously filed or any other matter the committee considers appropriate. — SB 274, sponsored by Sen. John Pappageorge (R-Troy)
• Require the Department of Environmental Quality (DEQ) to develop a list of information required to obtain a specific permit. The department would not be allowed to ask for any new information that was not included in the list. This new law will put some limits on the extent of the permit questioning. — SB 275, sponsored by Sen. Tom Casperson (R-Escanaba)
• Establish transparency by requiring any official advisory committee to keep minutes of their meetings and record any votes the committee may conduct regarding a rulemaking request. Also requires the Office of Regulatory Reinvention (ORR) to post the regulatory impact statement of the proposed rule — SB 276, sponsored by Sen. Dave Robertson (R-Grand Blanc)
• Require the DEQ to engage in a continuing program of process improvement for its major programs — SB 277, sponsored by Sen. David Hildenbrand (R-Grand Rapids)
• Require state departments and the legislature to do a specified review of all permitting programs in the DEQ every six years. — SB 278, sponsored by Sen. Goeff Hansen (R-Hart)
• Require the DEQ to explain to a person being inspected or audited why the action was being taken and what rights and duties the individual has in the process. — SB 279, sponsored by Sen. Phil Pavlov (R-St. Clair)

MMA looks forward to working with the Michigan House Regulatory Reform Committee to move this senate package and several bills initiated by house members that address similar reform and streamlining concepts. We anticipate favorable action in the house, and support from Gov. Snyder as we all work to reinvent Michigan’s business climate.

A copy of MMA’s 2011 Legislative and Reform Agenda can be downloaded from the MMA website at www.mma-net.org.

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