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Bill Allowing State Agency to Expand Regulatory Scope Raises Red Flags

Advocacy News – April 14, 2023

In another legislative hearing and move, the Senate Energy and Environment Committee brought forward Senate Bill (SB) 14, legislation allowing state agencies to change previous state law (PA 602 of 2018) that the Chamber had strongly advocated for and instead now be able to create regulations stricter than federal rules and standards.

Under current law, state government may not adopt or promulgate rules more stringent than federally-mandated ones except when there was a clear and convincing need for such action or existing state law exceeds the applicable state standard. This is a balanced approach to ensure adequate protections and not overstep regulatory scope while having the state maintain a level of autonomy and ability to act to meet any changing regulatory needs.

“SB 14 would ultimately do away with this notion, and send a message to Michigan businesses that the state intends to move toward a regulatory climate out of step with other states and regions in the country that we compete for jobs and quality of life with every day, “said Mike Alaimo, director of environmental and energy affairs with the Chamber. “It sets a problematic tone that Michigan is not open for business and employers thinking about investing in our state may need to reconsider. A level playing field along with clear and consistent expectations are key factors in a job provider’s decision-making process, and a zealous, uncertain and changing regulatory climate ties directly into that calculation. “

For questions or more information, please contact Mike Alaimo at malaimo@michamber.com.