New law will reduce regulatory costs for small companies.
Governor Rick Snyder has signed legislation that NFIB supported into law that will provide much-needed oversight of the Department of Environmental Quality. Public Act 267 of 2018 creates an 11-member board to oversee the rule-making process of the DEQ. The voting members of the panel are to be appointed from many fields including waste management, manufacturing, small business, utilities, environment, oil and gas, conservancy, agricultural organizations, local government, public health, and the public.
Michigan has made great strides in reforming the regulatory burdens on job providers in our state. This new law will continue those efforts by allowing for a more user-friendly appeals process on permits when a dispute can be negotiated toward resolution. The proposed legislation also encourages a more science-based approach to regulation through the establishment of an Environmental Science Advisory Board to advise the Governor and the Department.
Rules and regulations have a disproportionate impact on smaller companies. Research has shown that this cost difference can be as much as 36-percent higher for small firms when compared with their larger counterparts. Federal regulations alone on small businesses employing fewer than 50 people averaged $11,724 per employee in 2012 – up from $10,585 in 2010, according to the latest data. This amount is even higher for manufacturing businesses.
These bills lower the cost of regulation on small business at the state level through oversight of the regulatory process, making Michigan a better state to start, grow or move a business.