Senate Bill 1142 Summary

• Amends the Administrative Procedures Act of 1969 to require agencies proposing rules with disproportionate impact on small businesses to reduce that impact through differing compliance requirements, simplified reporting, performance standards, or exemptions when lawful and feasible.

• Establishes small business classifications by full-time employee count (0-9, 10-49, 50-249) that agencies may use when tailoring rules to reduce economic burden on smaller firms.

• Requires comprehensive regulatory impact statements including analysis of costs to small businesses, affected populations, alternatives to regulation, and compliance burden; statement must be reviewed and approved before public hearing can occur.

• Creates new certification requirement for the State Office of Administrative Hearings and Rules to assess whether proposed rules comply with Article IX, Section 29 of the Michigan Constitution regarding unfunded mandates on local units of government, with non-compliant rules blocked from transmittal to the legislative committee.

• Establishes 15-session-day review period for the legislative committee to object to proposed rules on specified grounds including lack of statutory authority, conflict with state law, or being arbitrary and capricious; committee objection triggers legislative process allowing house and senate to rescind, repeal, or delay the rule.