Michigan Office of Administrative Hearings and Rules  
Administrative Rules Division (ARD)  
MOAHR-Rules@michigan.gov  
REGULATORY IMPACT STATEMENT  
and COST-BENEFIT ANALYSIS (RIS)  
Agency Information:  
Department name:  
Licensing and Regulatory Affairs  
Bureau name:  
Bureau of Professional Licensing  
Name of person filling out RIS:  
Weston MacIntosh  
Phone number of person filling out RIS:  
517-241-9269  
E-mail of person filling out RIS:  
MacIntoshW1@michigan.gov  
Rule Set Information:  
ARD assigned rule set number:  
2025-5 LR  
Title of proposed rule set:  
Counseling – General 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.  
There are no parallel federal rules or standards set by a state or national licensing agency or accreditation association.  
A. Are these rules required by state law or federal mandate?  
Under MCL 333.16287, the department, in consultation with the board, shall promulgate rules to implement MCL  
333.16284 and MCL 333.16285. Under MCL 333.18106, a licensed professional counselor shall not supervise a  
limited licensed counselor without completing training in supervision as required by rules promulgated by the  
department in consultation with the board. Under MCL 333.18107 and MCL 333.18111, the department in  
consultation with the board shall promulgate rules to establish standards to approve qualified programs.  
No federal mandate demands the rules.  
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.  
The rules do not exceed a federal standard or law.  
2. Compare the proposed rules to standards in similarly situated states, based on geographic location, topography,  
natural resources, commonalities, or economic similarities.  
MCL 24.245(3)  
RIS-Page 2  
Licensure of counselors is necessary in Michigan under MCL 333.18105. The rules supply the conditions and  
requirements for education, training, licensure, renewal, and supervision of counselors.  
All seven of the other Great Lakes states have rules regulating the licensing of counselors, as listed below:  
Illinois: Applicants for licensure must hold at least a masters-level counseling, rehabilitation counseling, or  
psychology degree from an accredited school, take part in at least two years of supervised experience, and pass either  
the National Counselor Examination (NCE) of the National Board for Certified Counselors (NBCC), the Certified  
Rehabilitation Counselor Examination of the Commission on Rehabilitation Counselor Certification (CRCC), or the  
National Clinical Mental Health Counseling Examination (NCMHCE) examination prior to obtaining full licensure.  
Indiana: Applicants for licensure must hold at least a masters-level mental health counseling degree from an  
accredited school, take part in at least 3,000 hours of supervised experience, and pass the NCMHCE examination  
prior to obtaining full licensure.  
Minnesota: Applicants for licensure must hold at least a masters-level counseling degree from an accredited school,  
take part in at least 4,000 hours of supervised experience, and pass the NCMHCE examination prior to obtaining full  
licensure.  
New York: Applicants for licensure must hold at least a masters-level counseling degree from an accredited school,  
take part in at least 3,000 hours of supervised experience, and pass the NCMHCE examination prior to obtaining full  
licensure.  
Ohio: Applicants for licensure must hold at least a masters-level clinical mental health counseling, clinical  
rehabilitation counseling, or addiction counseling degree from an accredited school, take part in at least two years of  
supervised experience, and pass the NCE examination prior to obtaining full licensure.  
Pennsylvania: Applicants for licensure must hold at least a masters-level professional counseling degree from an  
accredited school, take part in at least 3,000 hours of supervised experience, and pass the NCE examination prior to  
obtaining full licensure.  
Wisconsin: Applicants for licensure must hold at least a masters-level professional counseling degree from an  
accredited school, take part in at least 3,000 hours of supervised experience, and pass either the NCE, NCMHCE, or  
the CRCC prior to obtaining full licensure.  
When compared to other Great Lakes states, Michigan’s licensure requirements for counselors are like other Great  
Lakes states.  
A. If the rules exceed standards in those states, please explain why and specify the costs and benefits arising out of  
the deviation.  
Statute demands promulgation of rules related to licensure. The rules do not exceed the licensing requirements of  
other states.  
3. Identify any laws, rules, and other legal requirements that may duplicate, overlap, or conflict with the proposed  
rules.  
There are no federal regulations for licensing counselors. 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.  
Review of applicable statutory law avoided unnecessary duplication in the rules. There are no other federal or local  
laws applicable to this activity.  
MCL 24.245(3)  
RIS-Page 3  
Purpose and Objectives of the Rule(s)  
4. Identify the behavior and frequency of behavior that the proposed rules are designed to alter.  
The specific topics that the proposed rules address, and the purpose of the proposed rules are set forth below:  
R 338.1761. This rule pertains to accreditation standards of higher education institutions. It sets forth the  
requirements for higher education institution accreditation. This rule includes updated higher institution educational  
program accreditation standards and Canadian program educational standards.  
R 338.1763. This rule pertains to accreditation standards of counselor education programs. It sets forth the  
requirements for the Council for Accreditation of Counseling and Related Educational Programs (CACREP). This  
rule includes updated CACREP accreditation standards.  
R 338.1771. This rule pertains to detecting human trafficking. It sets forth the requirements for training on identifying  
victims of human trafficking. The rule revision removes language that is no longer necessary.  
R 338.1772. This rule pertains to applications for limited licenses. It sets forth the requirements for a limited license.  
Revisions to the language include combining the previously required separate statement to the department identifying  
the Michigan licensed professional counselor who is supervising the limited licensed counselor’s practice and the  
licensed professional counselor’s supervising qualifications into the professional disclosure statement instead.  
R 338.1781. This rule pertains to requirements for supplying counseling supervision. It sets forth the requirements for  
practice and training necessary to supply supervision. It revises the language based on the promulgation date of the  
prior rule set.  
A. Estimate the change in the frequency of the targeted behavior expected from the proposed rules.  
Promulgation of rules related to licensure is necessary under statute. This supplies a regulatory framework for the  
practice of counseling. The proposed changes supply greater clarity to licensees and aid in understanding the  
requirements of the rules.  
B. Describe the difference between current behavior/practice and desired behavior/practice.  
Statute regulates the practice of counseling. This mandates licensure for provision of those services. Adding  
clarifications on points that may have been ambiguous under prior rules will make compliance easier for applicants  
and licensees.  
C. What is the desired outcome?  
Regulation is necessary for individuals who wish to practice as counselors. By improving and clarifying the rules,  
applicants and licensees should find compliance easier. This should result in fewer questions, fewer regulatory  
problems, and greater safety and protection of the public.  
5. 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.  
MCL 24.245(3)  
RIS-Page 4  
Outdated rules create conflict and confusion for counselors. The proposed rules update previously adopted rules.  
Changes made specifically address the following:  
R 338.1761 pertains to accreditation standards of higher education institutions. Outdated standards supply little help  
or guidance about proper training of counselors. The updated standards ensure future licensees are properly qualified.  
R 338.1763 pertains to accreditation standards of counselor education programs. The updated standards ensure future  
licensees are properly qualified.  
R 338.1771 pertains to detecting human trafficking. Clarifications aid applicants and licensees in following this rule.  
R 338.1772 pertains to limited licenses. The revisions simplify the documentation requirements for the limited  
license.  
R 338.1781 pertains to requirements for supplying counseling supervision. Clarifying language helps the licensee  
with understanding the applicability of the rule.  
A. What is the rationale for changing the rules instead of leaving them as currently written?  
The proposed rule set provides clarity to all rules on licensure.  
6. 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 proposed rules supply a regulatory mechanism for the practice of counseling. To protect the health, safety, and  
welfare of Michigan’s citizens, it is important that members of the profession adhere to educational and professional  
standards. The rules ensure that applicants receive proper education and training prior to licensure and that licensees  
are competent to practice. There is no less burdensome way to ensure that applicants and licensees satisfy minimum  
requirements for practice.  
7. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.  
No rescission of any rules is necessary.  
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.  
8. 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).  
There is no expected fiscal impact on the agency for promulgating the proposed rules.  
9. Describe whether or not an agency appropriation has been made or a funding source provided for any  
expenditures associated with the proposed rules.  
There has been no agency appropriation for the proposed rules because there are no expected agency expenditures  
associated with the proposed rules.  
10. 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.  
The proposed rules supply a mechanism for the licensing and regulation of individuals in this state, as mandated by  
statute. Applicants and licensees will continue to have a cost related burden associated with licensing, renewal, or  
relicensure. The cost of licensure for a Limited Licensed Counselor License is $88.10. The cost of licensure for a  
Limited Licensed Counselor – Relicensure is $108.10. The cost of renewal for a Limited Licensed Counselor is  
$27.50. The cost of licensure for a Licensed Professional Counselor – By Exam is $259.05. The cost of licensure for  
a Licensed Professional Counselor – By Endorsement is $259.05. The cost of licensure for a Licensed Professional  
Counselor – Relicensure is $279.05. The cost of renewal for a Licensed Professional Counselor is $198.45.  
MCL 24.245(3)  
RIS-Page 5  
A. Despite the identified burden(s), identify how the requirements in the rules are still needed and reasonable  
compared to the burdens.  
The rules are necessary to supply a mechanism for licensing and regulation of the profession. The rules are not more  
restrictive than allowed by statute. Despite the cost related burden of licensing, the rules and regulations are  
necessary to supply a framework of standards for educational and licensure requirements.  
Impact on Other State or Local Governmental Units  
11. 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 expected increase or decrease in revenues to other state or local government units, nor are there cost  
increases or reductions on other state or local government units expected because of the proposed rules.  
12. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school  
district by the rules.  
The proposed rules do not impose any program, service, duty, or responsibility upon any city, county, town, village,  
or school district.  
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.  
No action is necessary for governmental units to follow the rule(s).  
13. 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.  
State and local government units will incur no added expenditures because of implementing the proposed rules.  
Therefore, no appropriation or funding source is necessary.  
Rural Impact  
14. In general, what impact will the rules have on rural areas?  
There is no expected disparate impact on rural areas because of the proposed rules.  
A. Describe the types of public or private interests in rural areas that will be affected by the rules.  
There is no expected disparate impact on public or private interests in rural areas because of the proposed rules.  
Environmental Impact  
15. Do the proposed rules have any impact on the environment? If yes, please explain.  
No, the proposed rules will have no impact on the environment.  
Small Business Impact Statement  
16. Describe whether and how the agency considered exempting small businesses from the proposed rules.  
The Michigan Public Health Code authorizes the board and the department to regulate individuals with counseling  
licenses, not small businesses. Even if a licensee’s practice qualified as a small business, the department could not  
exempt the licensee’s small business because it would create disparity in the regulation of the profession.  
17. 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.  
There is no expected economic impact on small businesses because of the proposed rules. The proposed rules affect  
individual licensees rather than small businesses.  
MCL 24.245(3)  
RIS-Page 6  
A. Identify and estimate the number of small businesses affected by the proposed rules and the probable effect on  
small businesses.  
The department does not collect or have access to information that would allow it to find and estimate the potentially  
affected number of small businesses. It is impossible to estimate the number of small businesses affected by the  
proposed rules. The only small businesses affected by these rules are health practitioners practicing in small business  
settings. The department does not track or have access to this type of information since it is not a data repository.  
There is no expected economic impact on small businesses because of the proposed rules.  
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 proposed rules pertain to individuals and not small businesses, they do not have differing compliance or  
reporting requirements or timetables for small businesses. They are unnecessary for 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 proposed rules do not impose any compliance requirements or reporting requirements for small businesses.  
D. Describe how the agency established performance standards to replace design or operation standards required  
by the proposed rules.  
The agency did not set up performance standards to replace design or operation standards.  
18. Identify any disproportionate impact the proposed rules may have on small businesses because of their size or  
geographic location.  
The proposed rules affect individual licensees rather than small businesses. Therefore, there is no expected  
disproportionate impact on small businesses based on size or geographic location because of the rules.  
19. Identify the nature of any report and the estimated cost of its preparation by small businesses required to  
comply with the proposed rules.  
The proposed rules do not require any reports. There are no reports that a small business would have to complete.  
20. Analyze the costs of compliance for all small businesses affected by the proposed rules, including costs of  
equipment, supplies, labor, and increased administrative costs.  
There is no expectation of an effect on small businesses because of the proposed rules, nor are there any added costs,  
because the proposed rules apply to individuals and not businesses.  
21. Identify the nature and estimated cost of any legal, consulting, or accounting services that small businesses  
would incur in complying with the proposed rules.  
The proposed rules, which apply to individuals and not businesses, should not create a need for any legal, consulting,  
or accounting services for small businesses to be able to follow the proposed rules.  
22. Estimate the ability of small businesses to absorb the costs without suffering economic harm and without  
adversely affecting competition in the marketplace.  
Since the rules affect individual licensees rather than small businesses, there is no expected cause of economic harm  
or for the rules to adversely affect competition in the marketplace.  
23. 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 proposed rules impose requirements on individual licensees rather than small businesses. Even if a licensee’s  
practice qualifies as a small business, the department could not exempt the licensee’s small business because it would  
create disparity in regulation of the profession. Therefore, exempting or setting lesser standards of competence for  
small businesses is not in the best interest of the public. It would likely cost the agency more to devote staff time to  
determining which licensees work for small businesses and then enforce different requirements for those individuals.  
24. Identify the impact on the public interest of exempting or setting lesser standards of compliance for small  
businesses.  
The department is not able to exempt licensees that own a small business. If the department exempted small  
businesses, it would create a disparity in the regulation of a profession and have a negative impact on public safety.  
25. Describe whether and how the agency has involved small businesses in the development of the proposed rules.  
The department worked with the Michigan Board of Counseling in the development of the proposed rules. The  
board is composed of professional and public members. Some members of the board may work in a small business,  
but the members were not involved in the development of the rules as representatives of small businesses.  
A. If small businesses were involved in the development of the rules, please identify the business(es).  
MCL 24.245(3)  
RIS-Page 7  
No small businesses took part in the development of the rules.  
Cost-Benefit Analysis of Rules (independent of statutory impact)  
26. Estimate the actual statewide compliance costs of the rule amendments on businesses or groups.  
There are no estimated compliance costs with these rule amendments 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.  
The proposed rules directly affect licensees. Licensees bear the cost of and directly benefit from 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 expected added costs imposed upon licensees because of compliance with these proposed rules.  
27. 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.  
Applicants and licensees will continue to have a cost related burden associated with licensing, renewal, or  
relicensure. The cost of licensure for a Limited Licensed Counselor License is $88.10. The cost of licensure for a  
Limited Licensed Counselor – Relicensure is $108.10. The cost of renewal for a Limited Licensed Counselor is  
$27.50. The cost of licensure for a Licensed Professional Counselor – By Exam is $259.05. The cost of licensure for  
a Licensed Professional Counselor – By Endorsement is $259.05. The cost of licensure for a Licensed Professional  
Counselor – Relicensure is $279.05. The cost of renewal for a Licensed Professional Counselor is $198.45.  
Currently there are approximately 2,468 limited licensed counselors and 9,506 licensed professional counselors. If  
all 2,468 limited licensed counselors and 9,506 licensed professional counselors continue to renew their licenses, the  
estimated actual statewide compliance cost would be (2,468 X $27.50) + (9,506 X $198.45) = $1,954,335.70.  
A. How many and what category of individuals will be affected by the rules?  
There are approximately 2,468 limited licensed counselors and 9,506 licensed professional counselors. The rules  
affect all individuals who seek licensure as counselors.  
B. What qualitative and quantitative impact do the proposed changes in rules have on these individuals?  
The qualitative impact of the proposed rules on the citizens of Michigan will be that they will know a licensee who  
supplies services has achieved the level of education and training necessary to meet the minimum requirements for  
licensure. The quantitative impact of the proposed rules on the citizens of Michigan is that there will be no increase  
in the cost of services due to the rule amendments. The proposed rule amendments help to ensure the health, safety,  
and welfare of Michigan citizens without more costs.  
The qualitative impact on licensees and applicants by the proposed rules will be the knowledge that they and their  
peers have achieved the minimum requirements for licensure and can appropriately support the needs of the citizens  
of Michigan. The quantitative impact on licensees and applicants by the proposed rules is that they will have  
credentials that will meet the minimum requirements of licensure. These credentials will allow them to have access  
to job opportunities and compensation in line with their education and work experience.  
28. Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result  
of the proposed rules.  
There are no expected reductions in costs to businesses, individuals, groups of individuals, or governmental units  
because of the proposed rules.  
29. 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 proposed rules use clear, concise language, and implement the statutory requirements for licensing. The clear,  
concise language allows the public, licensees, and schools to better understand the requirements for licensure.  
30. Explain how the proposed rules will impact business growth and job creation (or elimination) in Michigan.  
There is no expected significant impact on business growth, job growth, or job elimination because of the rules.  
MCL 24.245(3)  
RIS-Page 8  
31. 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 department does not expect any disproportionate effect on any individuals or businesses by their industrial  
sector, segment of the public, business size, or geographical location.  
32. 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.  
Canadian Counselling and Psychotherapy Association (CCPA):  
https://www.ccpa-accp.ca/  
Center for Credentialing and Education (CCE):  
https://cce-global.org/  
Commission on Rehabilitation Counselor Certification (CRCC):  
https://crccertification.com/  
Council for Accreditation of Counseling and Related Educational Programs (CACREP):  
https://www.cacrep.org/  
Council for Higher Education Accreditation (CHEA):  
https://www.chea.org/  
National Board of Certified Counselors (NBCC):  
https://www.nbcc.org/  
United States Department of Education:  
https://www.ed.gov/  
Illinois:  
https://idfpr.illinois.gov/profs/profcounselor.html  
Indiana:  
https://www.in.gov/pla/professions/behavioral-health-and-human-services/  
Minnesota:  
https://mn.gov/boards/behavioral-health/  
New York:  
https://www.op.nysed.gov/professions/mental-health-counselors/license-requirements  
Ohio:  
https://cswmft.ohio.gov/  
Pennsylvania:  
https://www.pa.gov/agencies/dos/department-and-offices/bpoa/boards-commissions/social-workers-marriage-family-  
therapists-professional-counselors.html  
Wisconsin:  
https://dsps.wi.gov/Pages/Professions/LPC/Default.aspx  
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.  
MCL 24.245(3)  
RIS-Page 9  
Since statute mandates the rules, no estimate was necessary.  
Alternative to Regulation  
33. Identify any reasonable alternatives to the proposed rules that would achieve the same or similar goals.  
Since statute mandates the rules, there are no reasonable alternatives to the proposed rules.  
A. Please include any statutory amendments that may be necessary to achieve such alternatives.  
Since statute mandates the rules, there are no reasonable alternatives to the proposed rules.  
34. 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.  
Since statute mandates the rules, private market-based systems cannot serve as an alternative. The licensing and  
regulation of counselors are state functions, so a regulatory program independent of state intervention cannot be set  
up. One could consider counselor professional associations as regulatory mechanisms that are independent of state  
intervention; however, these professional organizations would provide the public with significantly less protection  
because membership in these organizations is voluntary. This means an individual who meets the membership  
requirements, but does not join, would still be able to practice and there would be no way to ensure the individual’s  
competency or hold the individual accountable for harm done to clients.  
No other states in the Great Lakes region use a private, market-based system to regulate licensed counselors.  
35. 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.  
Since statute mandates the rules, there are no reasonable alternatives to the proposed rules. There were no  
alternatives that the department considered to achieve the intended changes. They are necessary for the  
administration and enforcement of the licensing process.  
Additional Information  
36. As required by MCL 24.245b(1)(c), please describe any instructions regarding the method of complying with  
the rules, if applicable.  
The rules include the instructions for compliance.  
MCL 24.245(3)  
;