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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 are no anticipated increases or reductions for other state or local governmental units as a result of the proposed
rules.
14. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school
district by the rules.
There are no anticipated or intended programs, services, duties, or responsibilities imposed on any city, town, village,
or school district as a result of these proposed 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 anticipated actions that a governmental unit must take to comply with the proposed 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 have been made to any governmental units as a result of the proposed rules. No additional
expenditures are anticipated or intended with the proposed rules.
16. In general, what impact will the rules have on rural areas?
The proposed rules impose requirements on individual licensees rather than small businesses. Even if a licensee’s
workplace qualifies as a small business, the department could not exempt his or her business because it would create
a disparity in the regulation of the profession.
A. Describe the types of public or private interests in rural areas that will be affected by the rules.
The proposed rules will not impact public or private interests in rural areas.
17. Do the proposed rules have any impact on the environment? If yes, please explain.
The proposed rules do not have any impact on the environment.
18. Describe whether and how the agency considered exempting small businesses from the proposed rules.
The department did not consider exempting small businesses because they are not impacted by the proposed rules.
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.
The rules cannot exempt small businesses because the rules do not directly regulate small businesses. The rules
regulate individual licensees. Further, the Michigan Occupational Code requires real estate brokers and salespersons
to be licensed.
A. Identify and estimate the number of small businesses affected by the proposed rules and the probable effect on
small businesses.
There are approximately 39,084 real estate salespersons, 10,985 associate brokers, and 4,019 individual brokers in
Michigan.
A licensee may work in a small business. However, no matter what type of business environment the licensee works
in, he or she will have to comply with the proposed rules. The rules do not impact small business differently because
the impact is to the individual licensee only.
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 agency did not establish separate compliance or reporting requirements for small businesses. The proposed rules
will apply to all real estate licensees. The rules were drafted to be the least burdensome on all affected licensees.
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 agency did not consolidate or simplify compliance and reporting requirements for small businesses with the
proposed rules because the proposed rules do not impact small businesses.
D. Describe how the agency established performance standards to replace design or operation standards required
by the proposed rules.
MCL 24.245(3)