MI SB0272

Requires state agencies proposing rules with disproportionate impact on small businesses to consider exempting small businesses or reducing economic impact through modified compliance requirements, simplified reporting, or performance standards.

Mandates agencies classify small businesses into three categories (0-9 employees, 10-49 employees, 50-249 employees) when assessing rule impacts, with flexibility to include larger businesses in smaller classifications.

Requires agencies to specifically address four factors in small business impact statements: number of affected businesses, differing compliance/reporting requirements, simplified requirements, and performance standards versus design standards.

Exempts federally-mandated rules from small business impact provisions if the agency imposes no standards more stringent than federal requirements.

Allows plaintiffs to challenge rules through declaratory judgment actions in circuit court if agencies fail to accurately assess rule impacts on businesses, after first requesting a declaratory ruling from the agency.