Michigan House Bill HB4039

Michigan 2025-2026 Regular Session

• Introduced: 1/29/25
• Refer: 1/29/25

Caption

Administrative procedure: rules; requirement to eliminate regulations; provide for. Amends sec. 39 of 1969 PA 306 (MCL 24.239).

Impact

The passage of HB4039, if enacted, would significantly impact how state agencies develop and implement regulations. By imposing a requirement to eliminate existing rules in favor of new ones, the bill seeks to reduce bureaucratic redundancy and enhance the efficiency of government operations. This could lead to fewer regulations overall, thus potentially easing the compliance burden on businesses and individuals interacting with the regulations set forth by these agencies.

Summary

House Bill 4039 proposes amendments to the Administrative Procedures Act of 1969, specifically targeting the requirements and processes for rule-making by state agencies. The bill mandates that any agency wishing to alter or introduce new regulations must submit a request to the Michigan office of regulatory reinvention. This request must include the legal basis for the rule, the issue it aims to address, and an assessment of the problem's significance. Notably, for each new rule proposed, at least two existing rules must be rescinded, fostering a more streamlined regulatory environment.

Contention

Despite its intentions to streamline processes, the bill is likely to face scrutiny and opposition from those who argue that reducing the number of regulations could lead to unintended consequences. Critics may raise concerns about the potential erosion of safeguards that existing rules provide, especially in areas related to public health, environmental protection, and consumer rights. The requirement for agencies to rescind two regulations for every new proposal may also be viewed as an inappropriate trade-off that jeopardizes important regulations.

Notable_points

In addition to the process changes, HB4039 includes provisions for increased public transparency. It requires the Michigan office of regulatory reinvention to record and publicly display all requests for rule-making, enabling stakeholders to track the fate of proposed regulations. This transparency is intended to foster trust in the regulatory process, but it also places the onus on agencies to justify their rule-making decisions in a clear and documented manner.