A new bill introduced by State Representative Bill G. Schuette protects licensed professionals in Michigan while cutting red tape and lowering costs.

Schuette’s plan, House Bill 5725, codifies an existing exemption in state law that ensures transactions and conduct already regulated by state and federal law are not subjected to duplicative oversight. The exemption has been in place for decades but is currently at risk in a case before the Michigan Supreme Court. If repealed, these extra, unnecessary layers of red tape would cause conflicting regulatory standards, increase costs for small businesses and licensed professionals, lead to increased litigation clogging up courts and create economic uncertainty.

“By preserving this exemption, Michigan can prevent a bureaucratic mess that will raise costs and make our state less attractive,” Schuette said. “Protecting skilled workers and small businesses throughout our communities isn’t a political issue. I’m looking forward to seeing this bill move ahead in the Legislature so we can maintain clear accountability through existing regulations and provide economic clarity.”

Business experts and leaders within various Michigan industries agreed.

“If a small business isn’t already regulated, it’s dependent on a service or industry that is. Eliminating the regulatory compliance exemption would place a significant burden on Main Street businesses across Michigan, exposing them to duplicative red tape, greater risk, and higher operating costs,” said Small Business Association of Michigan President and CEO Brian Calley. “Protecting this exemption isn’t just good policy – it’s essential to preserving the ability of small businesses to operate, grow, and compete.”

“The hospitality industry is no stranger to costly rulings from the State Supreme Court with major real-world consequences,” said Michigan Restaurant & Lodging Association CEO Justin Winslow. “We have also seen what can happen when common sense, bipartisan legislative solutions take precedence over out-of-state activists. We have another opportunity to deliver balanced reform by codifying the regulatory compliance exemption and I hope our elected officials seize it.”

“Home ownership is surrounded by licensed and regulated industries. Families depend on licensed professionals like plumbers and electricians to maintain a home, and homebuilders and Realtors® to obtain a home in the first place,” added Michigan Realtors® CEO Robert Campau. “The cost of all these services, and home ownership in general, will increase in Michigan without the regulatory compliance exemption.”

“The regulatory compliance exemption is critical to stop healthcare costs from skyrocketing and providers from facing duplicate enforcement when they are already operating under rigorous regulation,” said Tom George, MD, CEO of the Michigan State Medical Society. “Codifying the exemption protects healthcare access, preventing higher costs for providers and patients alike.” 

Schuette has taken the lead during the current legislative term on rolling back regulation and enacting common sense plans to help workers, families and job providers see lower costs. He has spearheaded dozens of “Red Tape Reduction” bills following a House Rules Committee report that looked into overregulation issues last year.