House bills seek to cut red tape, change government contracting process

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(The Center Square) – The Republican-controlled Michigan House is moving forward with dozens of different bills in an effort to lowers costs, promote deregulation, and add new accountability measures for government contracts.

The Red Tape Reduction Initiative, which was first announced earlier this year, just released its first wave of more than 50 bills.

Rep. Bill G. Schuette, R-Midland, is the chairman of the House Rules Committee and is leading the bipartisan effort which hopes to lower costs for Michigan businesses and consumers.

“These plans are a needed way forward,” said Schuette. “Currently, if you want to raise a family, start a business or grow your career in Michigan, there are a lot of financial hurdles in the way.”

Schuette said those hurdles, which include fees, regulations, and more, are having a real impact on the state.

“It’s why our population has stagnated and we rank towards the bottom in new job creation. Our policies shape our potential,” Schuette said. “The goal of these new bills is clear: dial back the regulation, give workers and families in our state the chance to thrive, and make Michigan a more attractive place to live and work.”

While polarized on many other policy issues in the state, Schuette is hopeful that House Republicans and Senate Democrats will be able to work together on the initiative.

“There should be a ton of common ground here and a lot of support behind these bills,” he said. “I am hopeful we can get them signed into law soon.”

“No Stricter Than Federal”

Another bill seeking deregulation is House Bill 4160, which has not yet made it out of committee. It seeks to reinstate the “No Stricter Than Federal” regulation standard. That standard was first enacted in 2018 but later repealed by Senate Democrats in 2023.

Rep. Gina Johnsen, R-Portland, is leading the effort to once again no longer allow state agencies to implement regulations more stringent than federal standards.

She argued in committee testimony earlier this month that agencies should be required to provide proof and documentation for why a higher standard is necessary, which is what the bill specifies.

“Michigan cannot afford regulators writing rules that go beyond Washington without proof,” Johnsen said. “This bill restores accountability and ensures agencies must justify tougher standards with facts.”

Democrats pushed for the repeal of the 2018 law, which was signed by Gov. Gretchen Whitmer, due to concerns over environmental regulations.

“We are not a state that operates at a floor, at a minimum level of environmental protection,” said State Senator Sean McCann, D-Kalamazoo. McCann led the repeal effort in 2023. “Especially considering all of our environmental resources, our water, our waterways, rivers, lakes, streams.”

The new bill would allow exceptions to the no-stricter rule, including allowing agencies to issue emergency rules to protect public health and safety.

Johnsen, and the other sponsors, argue that Michigan’s more stringent standards are having a significant economic impact.

“Every layer of unnecessary red tape hurts small businesses, manufacturers, and families,” Johnsen said in committee testimony. “HB 4160 keeps government in check and makes Michigan more competitive.”

Sponsored by 24 Republicans, the bill has not yet received any bipartisan support. With the Senate controlled by Democrats, it’s unclear if the legislation will continue to move forward once it is passed by the House.

Accountability for Government Contracts

Lastly, House Bill 4774 would put a new system in place for state agencies to work with state facility engineering and architectural design contractors.

While they currently award contracts to the lowest bidder, supporters of the bill argue that is hurting the state and the taxpayers in the long run.

“It doesn’t make sense to automatically go with the cheapest option and ignore the potential long-term costs that may come with poor design and engineering,” said Rep. Parker Fairbairn, R-Harbor Springs, bill sponsor. “The people of Michigan deserve and demand more for their money, and I believe this is one way to get if for them.”

If passed, the new system would require the quality of the contractor’s work to be considered. Currently, 42 other states and the federal government use that process.