Michigan Office of Administrative Hearings and Rules  
Administrative Rules Division (ARD)  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
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:  
Rule Set Information:  
ARD assigned rule set number:  
2019-115 LR  
Title of proposed rule set:  
Michigan Boiler Rules  
Comparison of Rule(s) to Federal/State/Association Standared:  
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.  
There are no federal rules or standards that are set by a state or national licensing agency or accreditation association.  
A. Are these rules required by state law or federal mandate?  
These rules are required by state law and the Skilled Trades Regulation Act, 2016 PA 407; there are no federal  
mandates.  
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.  
2. Compare the proposed rules to standards in similarly situated states, based on geographic location, topography,  
natural resources, commonalities, or economic similarities.  
The Boiler Inspectors in Ohio, Illinois, Indiana, Wisconsin, and Minnesota must have a state issued commission,  
certification, license, and a National Board Commission.  
A. If the rules exceed standards in those states, please explain why and specify the costs and benefits arising out of  
the deviation.  
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, or other legal requirements that duplicate, overlap, or conflict with the proposed rules.  
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.  
MCL 24.245(3)  
RIS-Page 2  
There are no federal, state, or local laws applicable to the same activity or subject matter.  
4. If MCL 24.232(8) applies and the proposed rules are more stringent than the applicable federally mandated  
standard, a statement of specific facts that establish the clear and convincing need to adopt the more stringent  
rules and an explanation of the exceptional circumstances that necessitate the more stringent standards is  
required.  
There are no federal rules or standards that regulate construction codes.  
5. If MCL 24.232(9) applies and the proposed rules are more stringent than the applicable federal standard, either  
the 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 and an explanation of the exceptional  
circumstances that necessitate the more stringent standards is required.  
There are no federal rules or standards that regulate construction codes.  
6. Identify the behavior and frequency of behavior that the proposed rules are designed to alter.  
The Boiler Act of 1965 PA 290, MCL 408.751 to MCL 408.776, has been repealed and 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. Estimate the change in the frequency of the targeted behavior expected from the proposed rules.  
The Boiler Act of 1965, 1965 PA 290, R 408.4001, R 408.4012, R 408.4024, R 408.4025, R 408.4026, R 408.4027, R  
408.4028, R 408.4029, R 408.4031, R 408.4032, R 408.4033, R 408.4034, R 408.4035, R 408.4036, R 408.4038, R  
408.4039, R 408.4045, R 408.4047, R 408.4049, R 408.4051, R 408.4055, R 408.4057, R 408.4058, R 408.4059, R  
408.4065, R 408.4067, R 408.4069, R 408.4071, R 408.4073, R 408.4075, R 408.4079, R 408.4081, R 408.4087, R  
408.4089, R 408.4091, R 408.4096, R 408.4099, R 408.4101, R 408.4103, R 408.4105, R 408.4107, R 408.4109, R  
408.4111, R 408.4114, R 408.4117, R 408.4119, R 408.4120, R 408.4121, R 408.4122, R 408.4123, R 408.4124, R  
408.4125, R 408.4127, R 408.4129, R 408.4131, R 408.4133, R 408.4139, R 408.4143, R 408.4149, R 408.4151, R  
408.4153, R 408.4155, R 408.4157, R 408.4161, R 408.4163, R 408.4165, R 408.4167, R 408.4169, R 408.4171, R  
408.4172, R 408.4175, R 408.4177, R 408.4179, R 408.4182, R 408.4185, R 408.4187, R 408.4189, R 408.4193, R  
408.4195, R 408.4197, R 408.4201, R 408.4202, R 408.4203, R 408.4205, R 408.4206, R 408.4207, R 408.4208, R  
408.4210, R 408.4212, R 408.4214, R 408.4215, R 408.4216, R 408.4217, R 408.4218, R 408.4219, R 408.4220, R  
408.4222, R 408.4223, R 408.4225, R 408.4230, R 408.4232, R 408.4235, R 408.4236, R 408.4240, R 408.4241, R  
408.4242, R 408.4244, R 408.4246, R 408.4251, R 408.4253, R 408.4255, R 408.4257, R 408.4258, R 408.4259, R  
408.4260, R 408.4263, R 408.4265, R 408.4267, R 408.4268, R 408.4269, R 408.4270, R 408.4272, R 408.4274, R  
408.4277, R 408.4278, R 408.4280, R 408.4281, R 408.4283, R 408.4284, R 408.4286, R 408.4287, R 408.4288, R  
408.4290, R 408.4291, R 408.4292, R 408.4293, R 408.4294, R 408.4296, R 408.4298, R 408.4301, R 408.4302, R  
408.4501, R 408.4503, R 408.4507, R 408.4510, R 408.4511, R 408.4512, R 408.4515, R 408.4520, R 408.4522, R  
408.4566, R 408.4575, R 408.4581, R 408.4601, R 408.4626, R 408.4701, R 408.4711, R 408.5501, R 408.5601, R  
408.5602, R 408.5603, R 408.5604, R 408.5605, R 408.5606, R 408.5607, R 408.5608, and R 408.5609 are being  
rescinded. The new Skilled Trades rules, however, will incorporate many of the provisions of the Boiler rules that are  
being rescinded. Consequently, the frequency of the targeted behavior is expected to continue under the new rules  
which will provide uniform regulation of the skilled trades, as provided under the Act, 2016 PA 407.  
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.  
C. What is the desired outcome?  
MCL 24.245(3)  
RIS-Page 3  
The Boiler Act of 1965, 1965 PA 290, 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. The new rule set will provide uniform regulation of the skilled trades, as  
provided under the new Act, 2016 PA 407.  
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 regulation.  
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 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. 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 Boiler Act is being rescinded. The new updated rules that will be placed in the Skilled Trades Regulation Act, will  
be in line with actual practices which will protect the health, safety, and welfare of Michigan citizens while promoting  
a regulatory environment in Michigan.  
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.  
The Boiler Act of 1965, 1965 PA 290, R 408.4001, R 408.4012, R 408.4024, R 408.4025, R 408.4026, R 408.4027, R  
408.4028, R 408.4029, R 408.4031, R 408.4032, R 408.4033, R 408.4034, R 408.4035, R 408.4036, R 408.4038, R  
408.4039, R 408.4045, R 408.4047, R 408.4049, R 408.4051, R 408.4055, R 408.4057, R 408.4058, R 408.4059, R  
408.4065, R 408.4067, R 408.4069, R 408.4071, R 408.4073, R 408.4075, R 408.4079, R 408.4081, R 408.4087, R  
408.4089, R 408.4091, R 408.4096, R 408.4099, R 408.4101, R 408.4103, R 408.4105, R 408.4107, R 408.4109, R  
408.4111, R 408.4114, R 408.4117, R 408.4119, R 408.4120, R 408.4121, R 408.4122, R 408.4123, R 408.4124, R  
408.4125, R 408.4127, R 408.4129, R 408.4131, R 408.4133, R 408.4139, R 408.4143, R 408.4149, R 408.4151, R  
408.4153, R 408.4155, R 408.4157, R 408.4161, R 408.4163, R 408.4165, R 408.4167, R 408.4169, R 408.4171, R  
408.4172, R 408.4175, R 408.4177, R 408.4179, R 408.4182, R 408.4185, R 408.4187, R 408.4189, R 408.4193, R  
408.4195, R 408.4197, R 408.4201, R 408.4202, R 408.4203, R 408.4205, R 408.4206, R 408.4207, R 408.4208, R  
408.4210, R 408.4212, R 408.4214, R 408.4215, R 408.4216, R 408.4217, R 408.4218, R 408.4219, R 408.4220, R  
408.4222, R 408.4223, R 408.4225, R 408.4230, R 408.4232, R 408.4235, R 408.4236, R 408.4240, R 408.4241, R  
408.4242, R 408.4244, R 408.4246, R 408.4251, R 408.4253, R 408.4255, R 408.4257, R 408.4258, R 408.4259, R  
408.4260, R 408.4263, R 408.4265, R 408.4267, R 408.4268, R 408.4269, R 408.4270, R 408.4272, R 408.4274, R  
408.4277, R 408.4278, R 408.4280, R 408.4281, R 408.4283, R 408.4284, R 408.4286, R 408.4287, R 408.4288, R  
408.4290, R 408.4291, R 408.4292, R 408.4293, R 408.4294, R 408.4296, R 408.4298, R 408.4301, R 408.4302, R  
408.4501, R 408.4503, R 408.4507, R 408.4510, R 408.4511, R 408.4512, R 408.4515, R 408.4520, R 408.4522, R  
408.4566, R 408.4575, R 408.4581, R 408.4601, R 408.4626, R 408.4701, R 408.4711, R 408.5501, R 408.5601, R  
408.5602, R 408.5603, R 408.5604, R 408.5605, R 408.5606, R 408.5607, R 408.5608, and R 408.5609 are being  
rescinded.  
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.  
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 a funding source provided for any expenditures associated with the  
proposed rules.  
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 Boiler Act has been repealed and the bureau is promulgating a new rule set to regulate the skilled trades, as  
provided under the new Act.  
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.  
There will be no cost of equipment, supplies, labor, or increased administrative costs.  
14. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school  
district by the rules.  
There are no programs, services, duties, or responsibilities imposed upon any city, county, town, village, or school  
district by these rules.  
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.  
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 a funding source provided for any  
additional expenditures associated with the proposed rules.  
16. In general, what impact will the rules have on rural areas?  
There will be no impact on rural areas.  
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.  
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.  
18. Describe whether and how the agency considered exempting small businesses from the proposed rules.  
These rules are being rescinded. With the new Skilled Trades Act that will have new and revised State Boiler 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.  
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.  
MCL 24.245(3)  
RIS-Page 5  
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.  
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.  
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.  
20. Identify any disproportionate impact the proposed rules may have on small businesses because of their size or  
geographic location.  
The Boiler Act and the Skilled Trades Regulations Act have no disproportionate impact on small businesses because  
of the size or geographic 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 by the proposed rules, including costs of equipment,  
supplies, labor, and increased administrative costs.  
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 Boiler 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 Boiler 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 Boiler 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 we have emails for were involved if they chose to be.  
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.  
MCL 24.245(3)  
RIS-Page 6  
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.  
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 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 requesting registration as a plan reviewer,  
inspector, or building official registration will continue to pay an application fee and will now pay an examination fee  
as well.  
A. How many and what category of individuals will be affected by the rules?  
The individuals who would be affected by the repeal of these rules would be the Plumbing Board and any plumbers  
within the state.  
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.  
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.  
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 and likewise  
fewer complaints will be investigated by the bureau. This reduces staff costs.  
32. Explain how the proposed rules will impact business growth and job creation (or elimination) in Michigan.  
The Boiler rules are being repealed and the Skilled Trades Regulation rules are needed to reflect the Skilled Trades  
Regulation Act. 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.  
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 came from stakeholders and licensees. The  
code proposal form asks for justification for the change they are 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., which demonstrate a need for the proposed  
rules.  
The bureau relied on stakeholders when determining the existence and extent of the impact of the proposed rules.  
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.  
MCL 24.245(3)  
RIS-Page 7  
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.  
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.  
There were no significant alternatives presented for the Bureau to consider.  
38. As required by MCL 24.245b(1)(c), please describe any instructions regarding the method of complying with  
the rules, if applicable.  
There are no instructions regarding the method of complying with the rules.  
MCL 24.245(3)