Michigan Office of Administrative Hearings and Rules  
Administrative Rules Division (ARD)  
MOAHR-Rules@michigan.gov  
REGULATORY IMPACT STATEMENT  
and COST-BENEFT ANALYSIS (RIS)  
Agency Information:  
Department name:  
Licensing and Regulatory Affairs  
Bureau name:  
Bureau of Construction Codes  
Name of person filling out RIS:  
Amanda Johnson  
Phone number of person filling out RIS:  
517-241-3408  
E-mail of person filling out RIS:  
JohnsonA39@michigan.gov  
Rule Set Information:  
ARD assigned rule set number:  
2019-106 LR  
Title of proposed rule set:  
State Plumbing Board Rules  
Comparison of Rule(s) to Federal/State/Association Standard  
1. Compare the proposed rules to parallel federal rules or standards set by a state or national licensing agency or  
accreditation association, if any exist.  
The Skilled Trades Regulation Act, 2016 PA 407, repealed the State Plumbing Act, 2002 PA 733. Because the State  
Plumbing Act was repealed, the bureau plans to rescind the licensing rules promulgated under that Act and create a  
new rule set to house all licensing rules regulated under the Skilled Trades Regulation Act, including the plumbing  
board licenses rules.  
A. Are these rules required by state law or federal mandate?  
The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act,  
and so these rules are being rescinded.  
B. If these rules exceed a federal standard, please identify the federal standard or citation, describe why it is  
necessary that the proposed rules exceed the federal standard or law, and specify the costs and benefits arising out  
of the deviation.  
These rules do not exceed a federal standard. The authority these rules were promulgated under, the State Plumbing  
Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
2. Compare the proposed rules to standards in similarly situated states, based on geographic location, topography,  
natural resources, commonalities, or economic similarities.  
The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act,  
and so these rules are being rescinded. The proposed plumbing board rules under the Skilled Trades Regulation rules  
(2019-101 LR) are less restrictive than the bordering states of Ohio and Illinois. Ohio is more stringent, as licensees  
have to be a United States citizen or a legal alien, must provide proof of being a legal alien, either have been a  
tradesperson in the type of licensed trade for which the application is filed for not less than five years immediately  
prior to the date the application is filed, and carry a minimum $500,000 contractor liability coverage. In Illinois the  
individual must be a U.S. Citizen, or in the process of declaring citizenship, have been employed as a licensed  
apprentice plumber for a minimum of 4 years and have successfully completed 2 years of high school or equivalent in  
addition to completing an approved course instruction through a college, university, or trade school.  
MCL 24.245(3)  
RIS-Page 2  
A. If the rules exceed standards in those states, please explain why and specify the costs and benefits arising out of  
the deviation.  
The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act,  
and so these rules are being rescinded. The rules do not exceed standards in the surrounding states.  
3. Identify any laws, rules, and other legal requirements that may duplicate, overlap, or conflict with the proposed  
rules.  
There are no laws, rules and or other legal requirements that duplicate, overlap, or conflict with the proposed rules.  
The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act,  
and so these rules are being rescinded.  
A. Explain how the rules have been coordinated, to the extent practicable, with other federal, state, and local laws  
applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken  
by the agency to avoid or minimize duplication.  
There are no federal, state, or local laws applicable to the same activity or subject matter. The authority these rules  
were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being  
rescinded.  
4. If MCL 24.232(8) applies and the proposed rules are more stringent than the applicable federally mandated  
standard, provide a statement of specific facts that establish the clear and convincing need to adopt the more  
stringent rules.  
There are no federal rules or standards that regulate construction codes. The authority these rules were promulgated  
under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
5. If MCL 24.232(9) applies and the proposed rules are more stringent than the applicable federal standard,  
provide either the Michigan statute that specifically authorizes the more stringent rules OR a statement of the  
specific facts that establish the clear and convincing need to adopt the more stringent rules.  
There are no federal rules or standards that regulate construction codes. The authority these rules were promulgated  
under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
Purpose and Objectives of the Rule(s)  
6. Identify the behavior and frequency of behavior that the proposed rules are designed to alter.  
The State Plumbing Act, 2002 PA 733, MCL 338.3511 to MCL 338.3569, has been repealed, is outdated, and does not  
provide uniform licensing, complaint investigation, or enforcement provisions for skilled trades licenses. The  
authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so  
these rules are being rescinded. This places a burden on the bureau administering these acts and creates an inefficient  
use of resources. Additionally, many licensees who are cross licensed in multiple trades have expressed  
dissatisfaction with conflicting provisions in separate statutes. The Skilled Trades Regulation Act, 2016 PA 407,  
streamlines the processes for all license types included, while providing for modernized provisions, such as electronic  
communication and third-party continuing education tracking options, and providing specific violations for unlicensed  
activity, like other regulated professions. While the Skilled Trades Regulation Act repealed the five acts that regulated  
certain skilled trades, this new act includes provisions to regulate those same skilled trades. Consequently, the bureau  
is promulgating a new rule set to regulate these skilled trades, as provided under the new act. In addition, the bureau  
has submitted separate RFRs to rescind the current rules that were promulgated under the authority of the five acts  
that have been repealed.  
A. Estimate the change in the frequency of the targeted behavior expected from the proposed rules.  
The State Plumbing Act, 2002 PA 733, MCL 338.3511 to MCL 338.3569, has been repealed.  
B. Describe the difference between current behavior/practice and desired behavior/practice.  
The current practice is inconsistent, whereas the desired practice will be consistent and will regulate the skilled trades  
in one place. The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled  
Trades Act, and so these rules are being rescinded.  
C. What is the desired outcome?  
MCL 24.245(3)  
RIS-Page 3  
The repealed acts are outdated and do not provide uniform licensing, complaint investigation, and enforcement  
provisions for skilled trades licenses. This places a burden on the bureau administering these acts and creates an  
inefficient use of resources. The new rule set will provide uniform regulation of the skilled trades, as provided under  
the new Act, 2016 PA 407. The authority these rules were promulgated under, the State Plumbing Act, was repealed by  
the Skilled Trades Act, and so these rules are being rescinded.  
7. Identify the harm resulting from the behavior that the proposed rules are designed to alter and the likelihood  
that the harm will occur in the absence of the rule.  
The harm will be the continuation of the inconsistencies in the regulation of the license trades. Likewise, the harm is  
the continuation of a lack of uniform regulations. The authority these rules were promulgated under, the State  
Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
A. What is the rationale for changing the rules instead of leaving them as currently written?  
The repealed act is outdated and does not provide uniform licensing, complaint investigation, and enforcement  
provisions for the electrical trade. This places a burden on the bureau administering these acts and creates an  
inefficient use of resources. Additionally, many licensees who are cross licensed in multiple trades have expressed  
dissatisfaction with conflicting provisions in separate statutes. The Skilled Trades Regulation Act, 2016 PA 407  
streamlines the processes for all license types and provides for modernized provisions, such as electronic  
communication and third-party continuing education tracking options and providing specific violations for unlicensed  
activity, like other regulated professions. The new rule set will regulate the skilled trades as provided under the new  
act.  
8. Describe how the proposed rules protect the health, safety, and welfare of Michigan citizens while promoting a  
regulatory environment in Michigan that is the least burdensome alternative for those required to comply.  
The State Plumbing Act was repealed by the Skilled Trades Act. The new rules that will be promulgated under the  
Skilled Trades Regulation Act are administrative in nature and establish standards for license classifications.  
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.  
The State Plumbing Act, 2002 PA 733, MCL 338.3511 to MCL 338.3569 has been repealed. Because the State  
Plumbing Act was repealed, the bureau is rescinding the state plumbing board rules and then will recodify those rules  
in a new rule set that will cover all licensing rules regulated under the Skilled Trades Regulation Act, including the  
plumbing board rules.  
Fiscal Impact on the Agency  
Fiscal impact is an increase or decrease in expenditures from the current level of expenditures, i.e. hiring additional staff,  
higher contract costs, programming costs, changes in reimbursements rates, etc. over and above what is currently  
expended for that function. It does not include more intangible costs for benefits, such as opportunity costs, the value of  
time saved or lost, etc., unless those issues result in a measurable impact on expenditures.  
10. Please provide the fiscal impact on the agency (an estimate of the cost of rule imposition or potential savings  
for the agency promulgating the rule).  
These rules are being rescinded so there is no fiscal impact on the agency. The authority these rules were  
promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being  
rescinded.  
11. Describe whether or not an agency appropriation has been made or a funding source provided for any  
expenditures associated with the proposed rules.  
No agency appropriation has been made, nor has a funding source provided for any expenditures associated with the  
proposed rules. The authority these rules were promulgated under, the State Plumbing Act, was repealed by the  
Skilled Trades Act, and so these rules are being rescinded.  
12. Describe how the proposed rules are necessary and suitable to accomplish their purpose, in relationship to the  
burden(s) the rules place on individuals. Burdens may include fiscal or administrative burdens, or duplicative  
acts.  
MCL 24.245(3)  
RIS-Page 4  
As stated above in question 6, the repealed act is outdated and does not provide uniform licensing, complaint  
investigation, and enforcement provisions for skilled trades licenses. This places a burden on the bureau  
administering these acts and creates an inefficient use of resources. Additionally, many licensees who are cross  
licensed in multiple trades have expressed dissatisfaction with conflicting provisions in separate statutes. The Skilled  
Trades Regulation Act, 2016 PA 407, streamlines the processes for all license types included, while providing for  
modernized provisions, such as electronic communication and third-party continuing education tracking options, and  
specifies violations for unlicensed activity as provided to other regulated professions. While the Skilled Trades  
Regulation Act repealed the five acts that regulated certain skilled trades, this new act includes provisions to regulate  
those same skilled trades. Consequently, the bureau is promulgating a new rule set to regulate these skilled trades, as  
provided under the new act. In addition, the bureau has submitted separate RFRs to rescind the current rules that  
were promulgated under the authority of the five acts that have been repealed.  
A. Despite the identified burden(s), identify how the requirements in the rules are still needed and reasonable  
compared to the burdens.  
The current state plumbing board rules will be rescinded, and the bureau will promulgate a new rule set, the Skilled  
Trades Regulation rules, that will include the state plumbing board rules.  
Impact on Other State or Local Governmental Units  
13. Estimate any increase or decrease in revenues to other state or local governmental units (i.e. cities, counties,  
school districts) as a result of the rule. Estimate the cost increases or reductions for other state or local  
governmental units (i.e. cities, counties, school districts) as a result of the rule. Include the cost of equipment,  
supplies, labor, and increased administrative costs in both the initial imposition of the rule and any ongoing  
monitoring.  
There is no increase or decrease in revenues to other state or local governmental units as a result of these rules.  
There are no cost increases or reductions for such other state or local governmental units as a result of the rules. No  
cost of equipment, supplies, labor, or increased administrative costs. The authority these rules were promulgated  
under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
14. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school  
district by the rules.  
There is no program, service, duty, or responsibility imposed upon any city, county, town, village, or school district  
by these rules. The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled  
Trades Act, and so these rules are being rescinded.  
A. Describe any actions that governmental units must take to be in compliance with the rules. This section should  
include items such as record keeping and reporting requirements or changing operational practices.  
There are no actions that governmental units must take to be in compliance with the rules. The authority these rules  
were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being  
rescinded.  
15. Describe whether or not an appropriation to state or local governmental units has been made or a funding  
source provided for any additional expenditures associated with the proposed rules.  
No appropriations to state or local governmental units have been made, nor has a funding source provided for any  
additional expenditures associated with the proposed rules. The authority these rules were promulgated under, the  
State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
Rural Impact  
16. In general, what impact will the rules have on rural areas?  
There will be no impact. The authority these rules were promulgated under, the State Plumbing Act, was repealed by  
the Skilled Trades Act, and so these rules are being rescinded.  
A. Describe the types of public or private interests in rural areas that will be affected by the rules.  
There are no public or private interests in rural areas that will be affected by the rules. The authority these rules were  
promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being  
rescinded.  
MCL 24.245(3)  
RIS-Page 5  
Environmental Impact  
17. Do the proposed rules have any impact on the environment? If yes, please explain.  
The proposed rules will have no impact on the environment. The authority these rules were promulgated under, the  
State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
Small Business Impact Statement  
18. Describe whether and how the agency considered exempting small businesses from the proposed rules.  
These rules are being rescinded and new rules will be added to the new rule set promulgated under the Skilled Trades  
Regulation Act that will have new and revised State Plumbing Act information. The Bureau had a four-week period  
that licensees and stakeholders could propose a code change via the rules/code proposal form.  
19. If small businesses are not exempt, describe (a) the manner in which the agency reduced the economic impact  
of the proposed rules on small businesses, including a detailed recitation of the efforts of the agency to comply  
with the mandate to reduce the disproportionate impact of the rules upon small businesses as described below (in  
accordance with MCL 24.240(1)(a-d)), or (b) the reasons such a reduction was not lawful or feasible.  
Small businesses are not anticipated to be adversely affected by the changes. The authority these rules were  
promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being  
rescinded.  
A. Identify and estimate the number of small businesses affected by the proposed rules and the probable effect on  
small businesses.  
The Bureau does not expect that small businesses will be affected by these proposed rules. The authority these rules  
were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are  
being rescinded.  
B. Describe how the agency established differing compliance or reporting requirements or timetables for small  
businesses under the rules after projecting the required reporting, record-keeping, and other administrative costs.  
The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act,  
and so these rules are being rescinded. Because the rules apply to individuals who apply for licensure, it is not  
practical to establish differing compliance or reporting requirements or timetables for small businesses. Small  
businesses are not expected to be adversely affected by these rules. There are no additional reporting, record  
keeping, or other administrative costs associated with the implementation of the proposed rules.  
C. Describe how the agency consolidated or simplified the compliance and reporting requirements for small  
businesses and identify the skills necessary to comply with the reporting requirements.  
The compliance and reporting requirements are unchanged. The authority these rules were promulgated under, the  
State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
D. Describe how the agency established performance standards to replace design or operation standards required  
by the proposed rules.  
There are no design or operation standards in the proposed rules. The authority these rules were promulgated under,  
the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
20. Identify any disproportionate impact the proposed rules may have on small businesses because of their size or  
geographic location.  
With the repeal of the State Plumbing Act, the State Plumbing Board rules have to be rescinded because they will be  
recodified in the Skilled Trades Regulation rules. The new rules will have no disproportionate impact on small  
businesses because of their size and or geographical location.  
21. Identify the nature of any report and the estimated cost of its preparation by small businesses required to  
comply with the proposed rules.  
There are no anticipated reports or increased costs to small businesses that are required to comply with the proposed  
rules.  
22. Analyze the costs of compliance for all small businesses affected by the proposed rules, including costs of  
equipment, supplies, labor, and increased administrative costs.  
Small businesses are not expected to be adversely affected the proposed rules, including costs of equipment, supplies,  
labor, or increased administrative costs.  
MCL 24.245(3)  
RIS-Page 6  
23. Identify the nature and estimated cost of any legal, consulting, or accounting services that small businesses  
would incur in complying with the proposed rules.  
There are no legal, consulting, or accounting services costs that small businesses would incur in complying with the  
proposed rules.  
24. Estimate the ability of small businesses to absorb the costs without suffering economic harm and without  
adversely affecting competition in the marketplace.  
There are no additional costs or harm anticipated as a result of the State Plumbing Act being repealed and the Skilled  
Trades Regulation Act proposed rules.  
25. Estimate the cost, if any, to the agency of administering or enforcing a rule that exempts or sets lesser  
standards for compliance by small businesses.  
The State Plumbing Act has been repealed and the new rules are needed to reflect the Skilled Trades Regulation Act.  
There is no additional cost to the agency for administrating and enforcing the proposed rules beyond the current  
operational costs.  
26. Identify the impact on the public interest of exempting or setting lesser standards of compliance for small  
businesses.  
The State Plumbing Act has been repealed and the new rules are needed to reflect the Skilled Trades Regulation Act.  
Small businesses are not exempt from either rule set. Therefore, there is no impact on the public interest of  
exempting or setting lesser standards of compliance for small businesses.  
27. Describe whether and how the agency has involved small businesses in the development of the proposed rules.  
The bureau involved small businesses through the new Skilled Trades Regulation Act rules review process. An email  
blast was sent out to stakeholders and licensees with a rule/code proposal form, giving them four weeks to get any  
rule changes submitted, and an advisory meeting was held with stakeholders and licensees invited.  
A. If small businesses were involved in the development of the rules, please identify the business(es).  
Licensees and stakeholders that the bureau has emails for were involved if they chose to be. The authority these  
rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are  
being rescinded.  
Cost-Benefit Analysis of Rules (independent of statutory impact)  
28. Estimate the actual statewide compliance costs of the rule amendments on businesses or groups.  
The rules are needed to reflect the Skilled Trades Regulation Act and will not result in any statewide compliance  
costs on businesses or groups.  
A. Identify the businesses or groups who will be directly affected by, bear the cost of, or directly benefit from the  
proposed rules.  
Businesses will not be directly affected by the proposed rules.  
B. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (i.e.  
new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses  
and groups. Be sure to quantify how each entity will be affected.  
There will be no additional costs imposed on businesses or other groups as a result of the proposed rules. The  
authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act, and so  
these rules are being rescinded.  
29. Estimate the actual statewide compliance costs of the proposed rules on individuals (regulated individuals or  
the public). Include the costs of education, training, application fees, examination fees, license fees, new  
equipment, supplies, labor, accounting, or recordkeeping.  
The State Plumbing Act and the new Skilled Trades Regulations Act are needed to reflect the Skilled Trades  
Regulation Act. The proposed rules are not anticipated to increase compliance costs for the public. Individuals who  
in the past have had an application and examination fee will continue to do so. Individuals who are requesting  
registration as a plan review, inspector, or building official registration will continue to pay an application fee and  
will now pay an examination fee as well. The authority these rules were promulgated under, the State Plumbing Act,  
was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
A. How many and what category of individuals will be affected by the rules?  
MCL 24.245(3)  
RIS-Page 7  
Approximately 1,500 individuals would be affected. The individuals who would be affected by these rescinded rules  
would be any licensed plumbers within the state. The authority these rules were promulgated under, the State  
Plumbing Act, was repealed by the Skilled Trades Act, and so these rules are being rescinded.  
B. What qualitative and quantitative impact do the proposed changes in rules have on these individuals?  
The qualitative impact will ensure higher standards for an individual who is licensed in the skilled trades. There is  
no quantitative impact. The authority these rules were promulgated under, the State Plumbing Act, was repealed by  
the Skilled Trades Act, and so these rules are being rescinded.  
30. Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result  
of the proposed rules.  
There are no expected cost reductions to businesses, individuals, or groups of individuals as a result of the proposed  
rules. The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades  
Act, and so these rules are being rescinded.  
31. Estimate the primary and direct benefits and any secondary or indirect benefits of the proposed rules. Please  
provide both quantitative and qualitative information, as well as your assumptions.  
The primary benefit is uniform licensing, complaint investigation, and enforcement provisions for skilled trades  
licensees. The secondary benefit is higher quality licensees, citizens in Michigan will be better served, likewise fewer  
complaints will be investigated by the Bureau, which reduces staff costs.  
32. Explain how the proposed rules will impact business growth and job creation (or elimination) in Michigan.  
The State Plumbing rules are being rescinded and will be recodified in the Skilled Trades Regulation rules. The  
proposed rules are not expected to have any adverse impact on business growth or job creation.  
33. Identify any individuals or businesses who will be disproportionately affected by the rules as a result of their  
industrial sector, segment of the public, business size, or geographic location.  
The State Plumbing rules are being rescinded and will be recodified in the Skilled Trades Regulation rules.  
Individuals or businesses will not be disproportionately affected by the rules as a result of their industrial sector,  
segment of the public, business size, or geographic location.  
34. Identify the sources the agency relied upon in compiling the regulatory impact statement, including the  
methodology utilized in determining the existence and extent of the impact of the proposed rules and a cost-  
benefit analysis of the proposed rules.  
The Bureau relied upon Bureau staff and rules/code proposal forms that the Bureau received, as the form asked for  
justifications for the change or changes they were proposing, including determining the existence and extent of the  
impact of the proposed rules and the cost benefit analysis of these proposed rules.  
A. How were estimates made, and what were your assumptions? Include internal and external sources, published  
reports, information provided by associations or organizations, etc., that demonstrate a need for the proposed  
rules.  
The authority these rules were promulgated under, the State Plumbing Act, was repealed by the Skilled Trades Act,  
and so these rules are being rescinded. There were neither estimates or assumptions made.  
Alternative to Regulation  
35. Identify any reasonable alternatives to the proposed rules that would achieve the same or similar goals.  
There are no reasonable alternatives to the proposed rules that have been identified that would achieve the same or  
similar goals.  
A. Please include any statutory amendments that may be necessary to achieve such alternatives.  
No statutory amendments are necessary to achieve alternatives.  
36. Discuss the feasibility of establishing a regulatory program similar to that proposed in the rules that would  
operate through private market-based mechanisms. Please include a discussion of private market-based systems  
utilized by other states.  
Establishment of a regulatory program operating through private market-based mechanisms similar to the proposed  
rules would not be feasible, as licensing by the Bureau is the primary obligation as required under the Act.  
37. Discuss all significant alternatives the agency considered during rule development and why they were not  
incorporated into the rules. This section should include ideas considered both during internal discussions and  
discussions with stakeholders, affected parties, or advisory groups.  
MCL 24.245(3)  
RIS-Page 8  
There were no significant alternatives presented for the Bureau to consider.  
Additional Information  
38. As required by MCL 24.245b(1)(c), please describe any instructions regarding the method of complying with  
the rules, if applicable.  
This is not applicable as these rules are being rescinded.  
MCL 24.245(3)  
;