RIS – Page 2
Sec. 40. (1) When an agency proposes to adopt a rule that will apply to a small business and the rule will
have a disproportionate impact on small businesses because of the size of those businesses, the agency shall
consider exempting small businesses and, if not exempted, the agency proposing to adopt the rule shall reduce
the economic impact of the rule on small businesses by doing all of the following when it is lawful and
feasible in meeting the objectives of the act authorizing the promulgation of the rule:
(a) Identify and estimate the number of small businesses affected by the proposed rule and its probable
effect on small businesses.
(b) Establish differing compliance or reporting requirements or timetables for small businesses under the
rule after projecting the required reporting, record-keeping, and other administrative costs.
(c) Consolidate, simplify, or eliminate the compliance and reporting requirements for small businesses
under the rule and identify the skills necessary to comply with the reporting requirements.
(d) Establish performance standards to replace design or operational standards required in the proposed rule.
(2) The factors described in subsection (1)(a) to (d) shall be specifically addressed in the small business
impact statement required under section 45.
(3) In reducing the disproportionate economic impact on small business of a rule as provided in
subsection (1), an agency shall use the following classifications of small business:
(a) 0-9 full-time employees.
(b) 10-49 full-time employees.
(c) 50-249 full-time employees.
(4) For purposes of subsection (3), an agency may include a small business with a greater number of
full-time employees in a classification that applies to a business with fewer full-time employees.
(5) This section and section 45(3) do not apply to a rule that is required by federal law and that an agency
promulgates without imposing standards more stringent than those required by the federal law.
MCL 24.245 (3) Except for a rule promulgated under sections 33, 44, and 48, the agency shall prepare and
include with the notice of transmittal a regulatory impact statement which shall contain specific information
(information requested on the following pages).
PART 3: AGENCY RESPONSE
Please provide the required information using complete sentences. Do not answer any question with “N/A”
or “none.”
Comparison of Rule(s) to Federal/State/Association Standards:
1. Compare the proposed rule(s) to parallel federal rules or standards set by a state or national licensing agency
or accreditation association, if any exist.
Each state establishes its own requirements for the profession. There are no parallel federal rules or
standards set by a state or national licensing agency or accreditation association.
A. Are these rule(s) required by state law or federal mandate?
The rules are required to be promulgated under state law by MCL 339.205, 339.308, and
339.2009, and Executive Reorganization Order Nos. 1991-9, 1996-2, 2003-1, and 2011-4, MCL
339.3501, MCL 445.2001, MCL 445.2011, MCL 445.2030.
B. If these rule(s) exceed a federal standard, identify the federal standard or citation, describe why it is
necessary that the proposed rule(s) exceed the federal standard or law, and specify the costs and benefits
arising out of the deviation.
The proposed rules do not exceed a federal standard or law.
2. Compare the proposed rule(s) to standards in similarly situated states, based on geographic location,
topography, natural resources, commonalities, or economic similarities.
Revised: June 24, 2019
MCL 24.245(3)