MI SB0496

Amends the Administrative Procedures Act to add enforcement mechanisms for Michigan's constitutional prohibition on unfunded mandates for local units of government (Section 29 of Article IX of the 1963 State Constitution).

Requires the Office of Regulatory Reinvention to certify whether proposed rules impose new activities or services on local units of government beyond existing law, and prohibits transmission to the Joint Committee on Administrative Rules if compliance with constitutional requirements is not demonstrated.

Empowers the Joint Committee on Administrative Rules to reject proposed rules within 15 session days based on seven specified grounds including lack of statutory authority, exceeding scope of authority, emergency public health/safety concerns, conflict with state law, arbitrary/capricious nature, or undue burden on the public.

Establishes a small business impact statement requirement for rules disproportionately affecting small businesses, with agencies required to identify affected businesses and reduce economic impact through exemptions, differing compliance requirements, simplified procedures, or performance standards where feasible.

Creates a comprehensive regulatory impact statement requirement containing 27 specified elements including cost-benefit analysis, comparison to federal and interstate standards, identification of affected parties, and local government compliance costs, with detailed provisions on timing, review, and public accessibility.