HF 2724

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/01/2014 04:12pm

A bill for an act
relating to state government; regulating agency rulemaking; amending Minnesota
Statutes 2012, sections 3.842, subdivision 4a; 14.05, subdivision 6, by adding
subdivisions; 14.07, subdivision 4; 14.08; 14.101, subdivision 1; 14.116; 14.125;
14.126, subdivision 2; 14.131; 14.14, subdivisions 1a, 2a; 14.16, subdivision 3;
14.22; 14.23; 14.25; 14.26; 14.388, subdivision 1; 14.389; proposing coding for
new law in Minnesota Statutes, chapter 14; repealing Minnesota Statutes 2012,
sections 14.04; 14.05, subdivision 5; 14.3895.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 3.842, subdivision 4a, is amended to read:

Subd. 4a.

Objections to rules.

(a) For purposes of this subdivision, "committee"
means the house of representatives policy committee or senate policy committee with
primary jurisdiction over state governmental operations. The commission or a committee
may object to a rule as provided in this subdivision. If the commission or a committee
objects to all or some portion of a rule because the commission or committee considers it
to be beyond the procedural or substantive authority delegated to the agency, including
a proposed rule submitted under section 14.15, subdivision 4, or 14.26, subdivision
deleted text begin 3, paragraph (c) deleted text end new text begin 6 new text end , the commission or committee may file that objection in the Office
of the Secretary of State. The filed objection must contain a concise statement of the
commission's or committee's reasons for its action. An objection to a proposed rule
submitted by the commission or a committee under section 14.15, subdivision 4, or 14.26,
subdivision deleted text begin 3, paragraph (c) deleted text end new text begin 6 new text end , may not be filed before the rule is adopted.

(b) The secretary of state shall affix to each objection a certification of the date and
time of its filing and as soon after the objection is filed as practicable shall transmit a
certified copy of it to the agency issuing the rule in question and to the revisor of statutes.
The secretary of state shall also maintain a permanent register open to public inspection of
all objections by the commission or committee.

(c) The commission or committee shall publish and index an objection filed under
this section in the next issue of the State Register. The revisor of statutes shall indicate
the existence of the objection adjacent to the rule in question when that rule is published
in Minnesota Rules.

(d) Within 14 days after the filing of an objection by the commission or committee to
a rule, the issuing agency shall respond in writing to the objecting entity. After receipt of
the response, the commission or committee may withdraw or modify its objection.

(e) After the filing of an objection by the commission or committee that is not
subsequently withdrawn, the burden is upon the agency in any proceeding for judicial
review or for enforcement of the rule to establish that the whole or portion of the rule
objected to is valid.

(f) The failure of the commission or a committee to object to a rule is not an implied
legislative authorization of its validity.

(g) In accordance with sections 14.44 and 14.45, the commission or a committee
may petition for a declaratory judgment to determine the validity of a rule objected to
by the commission or committee. The action must be started within two years after an
objection is filed in the Office of the Secretary of State.

(h) The commission or a committee may intervene in litigation arising from agency
action. For purposes of this paragraph, agency action means the whole or part of a rule, or
the failure to issue a rule.

Sec. 2.

Minnesota Statutes 2012, section 14.05, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Review and repeal of rules. new text end

new text begin By December 1 of each odd-numbered year,
beginning December 1, 2015, an agency must submit to the governor, the Legislative
Coordinating Commission, the policy and funding committees and divisions with
jurisdiction over the agency, and the revisor of statutes, a list of any rules or portions of
rules that are obsolete, unnecessary, or duplicative of other state or federal statutes or
rules. The list must also include an explanation of why the rule or portion of the rule
is obsolete, unnecessary, or duplicative of other state or federal statutes or rules. The
agency must either report a timetable for repeal of the rule or portion of the rule, or must
develop a bill for submission to the appropriate policy committee to repeal the obsolete,
unnecessary, or duplicative rule. A report submitted under this subdivision must be signed
by the person in the agency who is responsible for identifying and initiating repeal of
obsolete rules. The report also must identify the status of any rules identified in the prior
report as obsolete, unnecessary, or duplicative. If none of an agency's rules are obsolete,
unnecessary, or duplicative, an agency's report must state that conclusion.
new text end

Sec. 3.

Minnesota Statutes 2012, section 14.05, subdivision 6, is amended to read:

Subd. 6.

Veto of adopted rules.

The governor may veto all or a severable portion
of a rule of an agency as defined in section 14.02, subdivisions 2 and 4, by submitting
notice of the veto to the State Register within 14 days of receiving a copy of the rule
from the secretary of state under section 14.16, subdivision 3, 14.26, subdivision 3, or
14.386 or the agency under section 14.389, subdivision 3 deleted text begin , or section 14.3895 deleted text end . The veto is
effective when the veto notice is submitted to the State Register. This authority applies
only to the extent that the agency itself would have authority, through rulemaking, to
take such action. If the governor vetoes a rule or portion of a rule under this section, the
governor shall notify the chairs of the legislative committees having jurisdiction over the
agency whose rule was vetoed.

Sec. 4.

Minnesota Statutes 2012, section 14.05, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Electronic notices permitted. new text end

new text begin If sections 14.05 to 14.389 require an
agency to provide notice or documents to the public, the legislature, or another state
agency, the agency may send the notice or document, or a link to the notice or document,
using any reliable method of electronic transmission. An agency may file rule-related
documents with the Office of Administrative Hearings by electronic transmission in the
manner approved by that office and the Office of the Revisor of Statutes by electronic
transmission in the manner approved by that office.
new text end

Sec. 5.

Minnesota Statutes 2012, section 14.07, subdivision 4, is amended to read:

Subd. 4.

Incorporations by reference.

(a) An agency may incorporate by reference
into its rules the text from Minnesota Statutes, Minnesota Rules, United States Statutes at
Large, United States Code, Laws of Minnesota, Code of Federal Regulations, the Federal
Register, and other publications and documents which are determined by the revisor of
statutes, to be conveniently available to the public. If the rule incorporates by reference
other publications and documents, the rule must contain a statement of incorporation.
The statement of incorporation by reference must include the words "incorporated by
reference"; must identify by title, author, publisher, and new text begin , if applicable, new text end date of publication
new text begin of new text end the standard or material to be incorporated; must state whether the material is subject
to frequent change; and must contain a statement of availability. When presented with a
rule for certification pursuant to subdivision 2 and this subdivision, the revisor of statutes
should indicate in the certification that the rule incorporates by reference text from other
publications or documents. If the revisor certifies that the form of a rule is approved, that
approval constitutes the revisor's finding that the publication or other document other than
one listed by name in this subdivision, and which is incorporated by reference into the
rules, is conveniently available to the public.

(b) For the purposes of paragraph (a), "conveniently available to the public" means
available new text begin on the Internet without charge, or available new text end for loan or inspection and copying to
a person living anywhere in Minnesota through a statewide interlibrary loan system or in a
public library without charge except for reasonable copying fees and mailing costs.

Sec. 6.

Minnesota Statutes 2012, section 14.08, is amended to read:

14.08 APPROVAL OF RULE AND RULE FORM; COSTS.

(a) One copy of a rule adopted under section 14.26 must be submitted by the agency
to the chief administrative law judge. The chief administrative law judge shall request
from the revisor certified copies of the rule when it is submitted by the agency under
section 14.26. Within five days after the request for certification of the rule is received by
the revisor, excluding weekends and holidays, the revisor shall either return the rule with
a certificate of approval of the form of the rule to the chief administrative law judge or
notify the chief administrative law judge and the agency that the form of the rule will not
be approved.

If the chief administrative law judge disapproves a rule, the agency may modify it
and the agency shall submit one copy of the modified rule, approved as to form by the
revisor, to the chief administrative law judge.

(b) One copy of a rule adopted after a public hearing must be submitted by the
agency to the chief administrative law judge. The chief administrative law judge shall
request from the revisor certified copies of the rule when it is submitted by the agency.
Within five working days after receipt of the request, the revisor shall either return the
rule with a certificate of approval to the chief administrative law judge or notify the chief
administrative law judge and the agency that the form of the rule will not be approved.

(c) If the revisor refuses to approve the form of the rule, the revisor's notice must
revise the rule so it is in the correct form.

new text begin (d) After the agency has notified the chief administrative law judge that it has
adopted the rule, the chief administrative law judge shall promptly file four paper copies
or an electronic copy of the adopted rule in the Office of the Secretary of State. The
secretary of state shall forward one copy of each rule filed to the agency, to the revisor
of statutes, and to the governor.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The chief administrative law judge shall assess an agency for the actual cost
of processing rules under this section. Each agency shall include in its budget money to
pay the assessments. Receipts from the assessment must be deposited in the administrative
hearings account established in section 14.54.

Sec. 7.

Minnesota Statutes 2012, section 14.101, subdivision 1, is amended to read:

Subdivision 1.

Required notice.

In addition to seeking information by other
methods designed to reach persons or classes of persons who might be affected by the
proposal, an agency, at least 60 days before publication of a notice of intent to adopt or
a notice of hearing, shall solicit comments from the public on the subject matter of a
possible rulemaking proposal under active consideration within the agency by causing
notice to be published in the State Register. The notice must include a description of the
subject matter of the proposal and the types of groups and individuals likely to be affected,
and must indicate where, when, and how persons may comment on the proposal and
whether and how drafts of any proposal may be obtained from the agency.

This notice must be published within 60 days of the effective date of any new or
amendatory law requiring rules to be adopted, amended, or repealed.

new text begin An agency intending to adopt an expedited rule under section 14.389 is exempt from
the requirements of this section.
new text end

Sec. 8.

new text begin [14.105] RULE NOTIFICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Rule notification list. new text end

new text begin (a) Each agency shall maintain a list of all
persons who have registered with the agency for the purpose of receiving notice of rule
proceedings. A person may register to receive notice of rule proceedings by submitting
to the agency:
new text end

new text begin (1) the person's electronic mail address; or
new text end

new text begin (2) the person's name and United States mail address, along with a request to receive
copies of the notices by mail.
new text end

new text begin (b) The agency shall post information on its Web site describing the registration
process.
new text end

new text begin (c) The agency may inquire as to whether those persons on the list in paragraph
(a) wish to remain on it and may remove persons for whom there is a negative reply or
no reply within 60 days.
new text end

new text begin Subd. 2. new text end

new text begin Additional notice. new text end

new text begin (a) Each agency shall make reasonable efforts to notify
persons or classes of persons who may be significantly affected by the rule being proposed
by giving notice of its rule proceedings in newsletters, newspapers, or other publications,
or through other means of communication.
new text end

new text begin (b) For each rulemaking, the agency shall develop an additional notice plan
describing its efforts to provide additional notification to persons or classes of persons
who may be affected by the proposed rule or must explain why these efforts were not
made. The additional notice plan must be submitted to the administrative law judge with
the other submissions required by section 14.14, subdivision 2a, or 14.26. The agency
also may seek prior approval of the additional notice plan under the rules of the Office of
Administrative Hearings.
new text end

Sec. 9.

Minnesota Statutes 2012, section 14.116, is amended to read:

14.116 NOTICE TO LEGISLATURE.

(a) By January 15 each year, each agency must submit its new text begin current new text end rulemaking docket
maintained under section 14.366 deleted text begin , and the official rulemaking record required under section
deleted text end deleted text begin 14.365 deleted text end deleted text begin for any rule adopted during the preceding calendar year, deleted text end to the chairs and ranking
minority members of the legislative policy and budget committees with jurisdiction over
the subject matter of the proposed rule.

(b) When an agency deleted text begin mails deleted text end new text begin sends a new text end notice of deleted text begin intent to adopt rules deleted text end new text begin hearing new text end under
section 14.14 or new text begin a notice of intent to adopt rules under section new text end 14.22, the agency must
send a copy of the same notice deleted text begin and a copy of the statement of need and reasonableness
deleted text end to the chairs and ranking minority party members of the legislative policy and budget
committees with jurisdiction over the subject matter of the proposed rules and to the
Legislative Coordinating Commission.

deleted text begin (c) In addition, if the mailing of the notice is within two years of the effective date
of the law granting the agency authority to adopt the proposed rules, the agency shall
make reasonable efforts to send a copy of the notice and the statement to all sitting
legislators who were chief house of representatives and senate authors of the bill granting
the rulemaking authority. If the bill was amended to include this rulemaking authority,
the agency shall make reasonable efforts to send the notice and the statement to the chief
house of representatives and senate authors of the amendment granting rulemaking
authority, rather than to the chief authors of the bill.
deleted text end

Sec. 10.

Minnesota Statutes 2012, section 14.125, is amended to read:

14.125 TIME LIMIT ON AUTHORITY TO ADOPT, AMEND, OR REPEAL
RULES.

An agency shall publish a deleted text begin notice of intent to adopt rules or a deleted text end notice of hearing new text begin under
section 14.14 or a notice of intent to adopt rules under section 14.22 new text end within 18 months
of the effective date of the law authorizing or requiring rules to be adopted, amended, or
repealed. If the notice is not published within the time limit imposed by this section, the
deleted text begin authority for the rules expires. The agency shall not use other law in existence at the time
of the expiration of rulemaking authority under this section as authority to adopt, amend,
or repeal these rules deleted text end new text begin agency shall report to the Legislative Coordinating Commission,
other appropriate committees of the legislature, and the governor its failure to publish
a notice and the reasons for that failure new text end .

deleted text begin An agency that publishes a notice of intent to adopt rules or a notice of hearing
within the time limit specified in this section may subsequently amend or repeal the rules
without additional legislative authorization.
deleted text end

Sec. 11.

Minnesota Statutes 2012, section 14.126, subdivision 2, is amended to read:

Subd. 2.

Vote.

A committee vote under this section must be by a majority of
the committee. The vote may occur any time after the publication of the rulemaking
notice under section 14.14, subdivision 1a, 14.22, new text begin or new text end 14.389, subdivision 2, deleted text begin or 14.3895,
subdivision 3, deleted text end and before notice of adoption is published in the State Register under
section 14.18, 14.27, new text begin or new text end 14.389, subdivision 3 deleted text begin , or 14.3895, subdivision 3 deleted text end . A committee
voting under this section shall notify the agency, the revisor of statutes, and the chief
administrative law judge of the vote as soon as possible. The committee shall publish
notice of the vote in the State Register as soon as possible.

Sec. 12.

Minnesota Statutes 2012, section 14.131, is amended to read:

14.131 STATEMENT OF NEED AND REASONABLENESS.

By the date of the section 14.14, subdivision 1a, notice, the agency must
prepare, review, and make available for public review a statement of the need for and
reasonableness of the rule. The statement of need and reasonableness must be prepared
under rules adopted by the chief administrative law judge and must include new text begin a citation to
the most specific statutory authority for the rule and new text end the following to the extent the agency,
through reasonable effort, can ascertain this information:

deleted text begin (1) a description of the classes of persons who probably will be affected by the
proposed rule, including classes that will bear the costs of the proposed rule and classes
that will benefit from the proposed rule;
deleted text end

deleted text begin (2) the probable costs to the agency and to any other agency of the implementation
and enforcement of the proposed rule and any anticipated effect on state revenues;
deleted text end

deleted text begin (3) a determination of whether there are less costly methods or less intrusive
methods for achieving the purpose of the proposed rule;
deleted text end

deleted text begin (4) a description of any alternative methods for achieving the purpose of the
proposed rule that were seriously considered by the agency and the reasons why they
were rejected in favor of the proposed rule;
deleted text end

deleted text begin (5) the probable costs of complying with the proposed rule, including the portion
of the total costs that will be borne by identifiable categories of affected parties, such as
separate classes of governmental units, businesses, or individuals;
deleted text end

deleted text begin (6) the probable costs or consequences of not adopting the proposed rule, including
those costs or consequences borne by identifiable categories of affected parties, such as
separate classes of government units, businesses, or individuals;
deleted text end

new text begin (1) a description of the persons or classifications of persons who will probably
be affected by the proposed rule;
new text end

new text begin (2) the probable costs of the rule to affected persons and the agency, including
those costs or consequences borne by identifiable categories of affected parties, such as
separate classes of government units, businesses, or individuals, and the probable benefits
of adopting the rule;
new text end

deleted text begin (7) deleted text end new text begin (3) new text end an assessment of any differences between the proposed rule and existing
federal regulations and a specific analysis of the need for and reasonableness of each
difference; and

deleted text begin (8) deleted text end new text begin (4) new text end an assessment of the cumulative effect of the rule with other federal and state
regulations related to the specific purpose of the rule.

deleted text begin The statement must describe how the agency, in developing the rules, considered
and implemented the legislative policy supporting performance-based regulatory systems
set forth in section 14.002.
deleted text end

For purposes of clause deleted text begin (8) deleted text end new text begin (4) new text end , "cumulative effect" means the impact that results
from incremental impact of the proposed rule in addition to other rules, regardless of what
state or federal agency has adopted the other rules. Cumulative effects can result from
individually minor but collectively significant rules adopted over a period of time.

The statement must also describe the agency's efforts to provide additional
notification under section 14.14, subdivision 1a, to persons or classes of persons who may
be affected by the proposed rule or must explain why these efforts were not made.

The agency must consult with the commissioner of management and budget to
help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
government. The agency must send a copy of the statement of need and reasonableness
to the Legislative Reference Library new text begin no later than new text end when the notice of hearing is deleted text begin mailed
under section 14.14, subdivision 1a deleted text end new text begin sent new text end .

Sec. 13.

Minnesota Statutes 2012, section 14.14, subdivision 1a, is amended to read:

Subd. 1a.

Notice of rule hearing.

(a) deleted text begin Each agency shall maintain a list of all persons
who have registered with the agency for the purpose of receiving notice of rule proceedings.
Persons may register to receive notice of rule proceedings by submitting to the agency:
deleted text end

deleted text begin (1) their electronic mail address; or
deleted text end

deleted text begin (2) their name and United States mail address.
deleted text end

deleted text begin The agency may inquire as to whether those persons on the list wish to remain on it and
may remove persons for whom there is a negative reply or no reply within 60 days. deleted text end The
agency shall, at least 30 days before the date set for the hearing, give notice of its intention
to deleted text begin adopt deleted text end new text begin hold a hearing on the proposed new text end rules by United States mail or electronic mail to
all persons deleted text begin on its list deleted text end new text begin who have registered their names with the agency under section
14.105 new text end , and by publication in the State Register.

deleted text begin The mailed notice must include either a copy of the proposed rule or an easily
readable and understandable description of its nature and effect and an announcement that
a free copy of the proposed rule is available on request from the agency. In addition, each
agency shall make reasonable efforts to notify persons or classes of persons who may
be significantly affected by the rule being proposed by giving notice of its intention in
newsletters, newspapers, or other publications, or through other means of communication.
deleted text end The notice in the State Register must include the proposed rule or an amended rule in
the form required by the revisor under section 14.07, together with an easily readable
and understandable summary of the overall nature and effect of the proposed rule, a
citation to the most specific statutory authority for the proposed rule, a statement of the
place, date, and time of the public hearing, new text begin a statement that a free copy of the proposed
rule and the statement of need and reasonableness may be requested from the agency, new text end a
statement that persons may register with the agency for the purpose of receiving notice of
rule proceedings deleted text begin and notice that the agency intends to adopt a rule deleted text end and other information
required by law or rule. When an entire rule is proposed to be repealed, the agency need
only publish that fact, along with an easily readable and understandable summary of the
overall nature of the rules proposed for repeal, and a citation to the rule to be repealed.

new text begin The mailed notice of hearing must be the same as the notice published in the State
Register, except that the mailed notice may omit the text of the proposed rule.
new text end

(b) The chief administrative law judge may authorize an agency to omit from the
notice of rule hearing the text of any proposed rule, the publication of which would be
unduly cumbersome, expensive, or otherwise inexpedient if:

(1) knowledge of the rule is likely to be important to only a small class of persons;

(2) the notice of rule hearing states that a free copy of the entire rule is available
upon request to the agency; and

(3) the notice of rule hearing states in detail the specific subject matter of the omitted
rule, cites the statutory authority for the proposed rule, and details the proposed rule's
purpose and motivation.

Sec. 14.

Minnesota Statutes 2012, section 14.14, subdivision 2a, is amended to read:

Subd. 2a.

Hearing procedure.

When a hearing is held on a proposed rule, it shall
be conducted by an administrative law judge assigned by the chief administrative law
judge. The administrative law judge shall ensure that all persons involved in the rule
hearing are treated fairly and impartially. The agency shall submit into the record the
jurisdictional documents, including the statement of need and reasonableness, new text begin comments
and hearing requests received, new text end and any written exhibits in support of the proposed rule.
The agency may also present additional oral evidence. Interested persons may present
written and oral evidence. The administrative law judge shall allow questioning of agency
representatives or witnesses, or of interested persons making oral statements, in order to
explain the purpose or intended operation of a proposed rule, or a suggested modification,
or for other purposes if material to the evaluation or formulation of the proposed rule. The
administrative law judge may limit repetitive or immaterial oral statements and questioning.

Sec. 15.

Minnesota Statutes 2012, section 14.16, subdivision 3, is amended to read:

Subd. 3.

Filing.

After the agency has deleted text begin adopted deleted text end new text begin provided the chief administrative law
judge with a signed order adopting new text end the rule, the deleted text begin agency deleted text end new text begin chief administrative law judge
new text end shall promptly file deleted text begin three deleted text end new text begin four paper new text end copies new text begin or an electronic copy new text end of deleted text begin it deleted text end new text begin the adopted rule new text end in
the Office of the Secretary of State. The secretary of state shall forward one copy of each
rule filed new text begin to the agency, new text end to the revisor of statutes new text begin , new text end and to the governor.

Sec. 16.

Minnesota Statutes 2012, section 14.22, is amended to read:

14.22 NOTICE OF PROPOSED ADOPTION OF RULES.

Subdivision 1.

Contents.

(a) deleted text begin Unless an agency proceeds directly to a public hearing
on a proposed rule and gives the notice prescribed in section 14.14, subdivision 1a, the
agency shall give notice of its intention to adopt a rule without public hearing. deleted text end new text begin The agency
shall give the notice required by this section, unless the agency gives notice of a hearing
under section 14.14. new text end The new text begin agency shall give new text end notice deleted text begin must be given deleted text end new text begin of its intention to adopt a
rule new text end by publication in the State Register and by United States mail or electronic mail to
persons who have registered their names with the agency under section deleted text begin 14.14, subdivision
1a deleted text end new text begin 14.105 new text end . deleted text begin The mailed notice must include either a copy of the proposed rule or an easily
readable and understandable description of its nature and effect and an announcement that
a free copy of the proposed rule is available on request from the agency. In addition,
each agency shall make reasonable efforts to notify persons or classes of persons who
may be significantly affected by the rule by giving notice of its intention in newsletters,
newspapers, or other publications, or through other means of communication. deleted text end The notice
in the State Register must include the proposed rule or deleted text begin the deleted text end amended rule in the form
required by the revisor under section 14.07 deleted text begin , deleted text end new text begin ; new text end an easily readable and understandable
summary of the overall nature and effect of the proposed rule deleted text begin , deleted text end new text begin ; new text end a citation to the most
specific statutory authority for the proposed rule deleted text begin , deleted text end new text begin ; new text end a statement that persons may register
with the agency deleted text begin for the purpose of receiving deleted text end new text begin to receive new text end notice of rule proceedings deleted text begin and
notice that a rule has been submitted to the chief administrative law judge, deleted text end new text begin ; new text end and other
information required by law or rule. When an entire rule is proposed to be repealed, the
notice need only state that fact, along with an easily readable and understandable summary
of the overall nature of the deleted text begin rules deleted text end new text begin rule new text end proposed for repeal, and a citation to the rule to be
repealed. The notice must include a statement advising the public:

(1) that the public has new text begin at least new text end 30 days in which to submit comment in support of or
in opposition to the proposed rule and that comment is encouraged;

(2) that each comment should identify the portion of the proposed rule addressed,
the reason for the comment, and any change proposed;

new text begin (3) that the requester is encouraged to propose any change desired;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end that if 25 or more persons submit a written request for a public hearing
within the deleted text begin 30-day deleted text end comment period, a public hearing will be held new text begin and the agency will use
the process under section 14.14 new text end ;

deleted text begin (4) deleted text end new text begin (5) new text end of the manner in which persons must request a public hearing on the proposed
rule new text begin , including the requirements contained in section 14.25 relating to a written request
for a public hearing new text end ; new text begin and
new text end

deleted text begin (5) of the requirements contained in section 14.25 relating to a written request for a
public hearing, and that the requester is encouraged to propose any change desired;
deleted text end

(6) that the new text begin agency may modify the new text end proposed rule deleted text begin may be modified deleted text end if the
modifications are supported by the data and views submitted deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (7) that if a hearing is not required, notice of the date of submission of the proposed
rule to the chief administrative law judge for review will be mailed to any person
requesting to receive the notice.
deleted text end

In connection with the statements required in clauses (1) and deleted text begin (3) deleted text end new text begin (4) new text end , the notice
must also include the date on which the deleted text begin 30-day deleted text end comment period ends. new text begin The mailed notice
of intent to adopt a rule must be the same as the notice published in the State Register,
except that the mailed notice may omit the text of the proposed rule if it includes an
announcement of where a copy of the proposed rule may be obtained.
new text end

(b) The chief administrative law judge may authorize an agency to omit from the
notice of intent to adopt the text of any proposed rule, the publication of which would be
unduly cumbersome, expensive, or otherwise inexpedient if:

(1) knowledge of the rule is likely to be important to only a small class of persons;

(2) the notice of intent to adopt states that a free copy of the entire rule is available
upon request to the agency; and

(3) the notice of intent to adopt states in detail the specific subject matter of the
omitted rule, cites the statutory authority for the proposed rule, and details the proposed
rule's purpose and motivation.

Subd. 2.

Dual notices.

The agency may, at the same time notice is given under
subdivision 1, give notice of a public hearing and of its intention to proceed under sections
14.14 to 14.20, if one is required under section 14.25. The notice must include a statement
advising the public of its intention to cancel the public hearing if 25 or more persons do
not request one. If a hearing is required, there must be at least ten calendar days between
the last day for requesting a hearing and the day of the hearing.

Sec. 17.

Minnesota Statutes 2012, section 14.23, is amended to read:

14.23 STATEMENT OF NEED AND REASONABLENESS.

By the date of the section 14.22 notice, the agency shall prepare a statement of need
and reasonableness, which must be available to the public. The statement of need and
reasonableness must include the deleted text begin analysis deleted text end new text begin information new text end required in section 14.131. deleted text begin The
statement must also describe the agency's efforts to provide additional notification under
section 14.22 to persons or classes of persons who may be affected by the proposed rules
or must explain why these efforts were not made. For at least 30 days following the
notice, the agency shall afford the public an opportunity to request a public hearing and
to submit data and views on the proposed rule in writing.
deleted text end

The agency shall send a copy of the statement of need and reasonableness to the
Legislative Reference Library new text begin no later than new text end when the notice of intent to adopt is deleted text begin mailed deleted text end new text begin sent new text end .

Sec. 18.

Minnesota Statutes 2012, section 14.25, is amended to read:

14.25 PUBLIC HEARING.

Subdivision 1.

Requests for hearing.

If, during the deleted text begin 30-day deleted text end period allowed for
comment new text begin under section 14.22 new text end , 25 or more persons submit to the agency a written request
for a public hearing of the proposed rule, the agency shall proceed under the provisions of
sections 14.14 to 14.20. The written request must include: (1) the name and address of the
person requesting the public hearing; deleted text begin and deleted text end (2) the portion or portions of the rule to which
the person objects deleted text begin or a statement that the person opposes the entire rule. If not previously
published under section 14.22, subdivision 2, a notice of the public hearing must be
published in the State Register and mailed to those persons who submitted a written request
for the public hearing. Unless the agency has modified the proposed rule, the notice need
not include the text of the proposed rule but only a citation to the State Register pages where
the text appears deleted text end new text begin ; and (3) the reasons for the objection to each portion of the rule identified new text end .

A written request for a public hearing that does not comply with the requirements of
this section is invalid and may not be counted by the agency for purposes of determining
whether a public hearing must be held. new text begin A written request for a public hearing is not
invalid due to failure of the request to correctly identify the portion of the rule to which
the person objects if the agency reasonably can determine which portion of the rule is
the basis for the objection.
new text end

Subd. 2.

Withdrawal of hearing requests.

If a request for a public hearing has
been withdrawn so as to reduce the number of requests below 25, the agency must give
written notice of that fact to all persons who have requested the public hearing. No public
hearing may be canceled by an agency within three working days of the hearing. The
notice must explain why the request is being withdrawn, and must include a description of
any action the agency has taken or will take that affected or may have affected the decision
to withdraw the requests. The notice must also invite persons to submit written comments
within five working days to the agency relating to the withdrawal. The notice and any
written comments received by the agency is part of the rulemaking record submitted to the
administrative law judge under section 14.14 or 14.26. The administrative law judge shall
review the notice and any comments received and determine whether the withdrawal is
consistent with section 14.001, clauses (2), (4), and (5).

This subdivision applies only to a withdrawal of a hearing request that affects
whether a public hearing must be held and only if the agency has taken any action to
obtain the withdrawal of the hearing request.

Sec. 19.

Minnesota Statutes 2012, section 14.26, is amended to read:

14.26 ADOPTION OF PROPOSED RULE; SUBMISSION TO
ADMINISTRATIVE LAW JUDGE.

Subdivision 1.

Submission.

If no hearing is required, the agency shall submit to an
administrative law judge assigned by the chief administrative law judge the proposed rule
and notice as published, the rule as adopted, any written comments received by the agency,
and a statement of need and reasonableness for the rule. The agency shall give notice to
all persons who requested to be informed that these materials have been submitted to the
administrative law judge. This notice must be given on the same day that the record is
submitted. If the proposed rule has been modified, the notice must state that fact, and must
also state that a free copy of the proposed rule, as modified, is available upon request from
the agency. The rule and these materials must be submitted to the administrative law judge
within 180 days of the day that the comment period for the rule is over or the rule is
automatically withdrawn. The agency may not adopt the withdrawn rules without again
following the procedures of sections 14.05 to 14.28, with the exception of section 14.101,
if the noncompliance is approved by the chief administrative law judge. The agency
shall report its failure to adopt the rules and the reasons for that failure to the Legislative
Coordinating Commission, other appropriate legislative committees, and the governor.

deleted text begin Subd. 2. deleted text end

deleted text begin Resubmission. deleted text end

deleted text begin Even if the 180-day period expires while the administrative
law judge reviews the rule, if the administrative law judge rejects the rule, the agency may
resubmit it after taking corrective action. The resubmission must occur within 30 days of
when the agency receives written notice of the disapproval. If the rule is again disapproved,
the rule is withdrawn. An agency may resubmit at any time before the expiration of the
180-day period. If the agency withholds some of the proposed rule, it may not adopt the
withheld portion without again following the procedures of sections 14.14 to 14.28.
deleted text end

Subd. 3.

Review.

deleted text begin (a) deleted text end Within 14 days new text begin of receiving a submission under subdivision 1 new text end ,
the administrative law judge shall approve or disapprove the rule as to its legality and its
form to the extent that the form relates to legality, including the issues of whether the rule
if modified is substantially different, as determined under section 14.05, subdivision 2,
from the rule as originally proposed, whether the agency has the authority to adopt the rule,
and whether the record demonstrates a rational basis for the need for and reasonableness
of the proposed rule. deleted text begin If the rule is approved, the administrative law judge shall promptly
file four copies of it in the Office of the Secretary of State. The secretary of state shall
forward one copy of each rule to the revisor of statutes, one to the agency, and one to the
governor. deleted text end If the rule is disapproved, the administrative law judge shall state in writing the
reasons for the disapproval and make recommendations to overcome the defects.

new text begin Subd. 4. new text end

new text begin Harmless error. new text end

new text begin The administrative law judge shall disregard any error or
defect in the proceeding due to the agency's failure to satisfy any procedural requirements
imposed by law or rule if the administrative law judge finds:
new text end

new text begin (1) that the failure did not deprive any person or entity of an opportunity to
participate meaningfully in the rulemaking process; or
new text end

new text begin (2) that the agency has taken corrective action to cure the error or defect so that the
failure did not deprive any person or entity of an opportunity to participate meaningfully
in the rulemaking process.
new text end

new text begin Subd. 5. new text end

new text begin Correction of defects. new text end

deleted text begin (b) deleted text end new text begin (a) new text end The written disapproval must be submitted
to the chief administrative law judge for approval. If the chief administrative law judge
approves of the findings of the administrative law judge, the chief administrative law
judge shall send the statement of the reasons for disapproval of the rule to the agency,
the Legislative Coordinating Commission, the house of representatives and senate policy
committees with primary jurisdiction over state governmental operations, and the revisor
of statutes and advise the agency and the revisor of statutes of actions that will correct the
defects. The rule may not be filed in the Office of the Secretary of State, nor be published,
until the chief administrative law judge determines that the defects have been corrected
or, if applicable, that the agency has satisfied the rule requirements for the adoption of a
substantially different rule.

new text begin (b) The agency may resubmit the disapproved rule under paragraph (a) to the chief
administrative law judge after correcting the defects. If the 180-day period expires while
the chief administrative law judge is reviewing the rule, the agency may resubmit the rule
within 30 days of the date the agency received written notice of disapproval. In all other
cases, the agency may resubmit the rule at any time before the expiration of the 180-day
period in subdivision 1. If the resubmitted rule is disapproved by the chief administrative
law judge, the rule is withdrawn. If the agency does not resubmit a portion of the rule, it
may not adopt that portion of the rule without again following the procedures of sections
14.14 to 14.28.
new text end

new text begin Subd. 6. new text end

new text begin Need or reasonableness not established. new text end

deleted text begin (c) deleted text end If the chief administrative law
judge determines that the need for or reasonableness of the rule has not been established,
and if the agency does not elect to follow the suggested actions of the chief administrative
law judge to correct that defect, then the agency shall submit the proposed rule to the
Legislative Coordinating Commission and to the house of representatives and senate policy
committees with primary jurisdiction over state governmental operations for advice and
comment. The agency may not adopt the rule until it has received and considered the advice
of the commission and committees. However, the agency need not wait for advice for more
than 60 days after the commission and committees have received the agency's submission.

deleted text begin (d) The administrative law judge shall disregard any error or defect in the proceeding
due to the agency's failure to satisfy any procedural requirements imposed by law or
rule if the administrative law judge finds:
deleted text end

deleted text begin (1) that the failure did not deprive any person or entity of an opportunity to
participate meaningfully in the rulemaking process; or
deleted text end

deleted text begin (2) that the agency has taken corrective action to cure the error or defect so that the
failure did not deprive any person or entity of an opportunity to participate meaningfully
in the rulemaking process.
deleted text end

new text begin Subd. 7. new text end

new text begin Filing. new text end

new text begin If the rule is approved, the administrative law judge shall promptly
file four paper copies or an electronic copy of it in the Office of the Secretary of State. The
secretary of state shall forward one copy of each rule to the revisor of statutes, one to the
agency, and one to the governor.
new text end

Subd. deleted text begin 4 deleted text end new text begin 8 new text end .

Costs.

The Office of Administrative Hearings shall assess an agency
for the actual cost of processing rules under this section. Each agency shall include in its
budget money to pay the assessment. Receipts from the assessment must be deposited in
the administrative hearings account created in section 14.54.

Sec. 20.

Minnesota Statutes 2012, section 14.388, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

If an agency for good cause finds that the rulemaking
provisions of this chapter are unnecessary, impracticable, or contrary to the public interest
when adopting, amending, or repealing a rule to:

(1) address a serious and immediate threat to the public health, safety, or welfare;

(2) comply with a court order or a requirement in federal law in a manner that does
not allow for compliance with sections 14.14 to 14.28;

(3) incorporate specific changes set forth in applicable statutes when no interpretation
of law is required; or

(4) make changes that do not alter the sense, meaning, or effect of a rule,

the agency may adopt, amend, or repeal the rule after satisfying the requirements of
subdivision 2 and section 14.386, paragraph (a), clauses (1) to (4). The agency shall
incorporate its findings and a brief statement of its supporting reasons in its order adopting,
amending, or repealing the rule.

After considering the agency's statement and any comments received, the Office
of Administrative Hearings shall determine whether the agency has provided adequate
justification for its use of this section.

Rules adopted, amended, or repealed under deleted text begin clauses deleted text end new text begin clause new text end (1) deleted text begin and (2) deleted text end are effective
for a period of two years from the date of publication of the rule in the State Register.

Rules adopted, amended, or repealed under clause new text begin (2), new text end (3) new text begin , new text end or (4) are effective upon
publication in the State Register.

Sec. 21.

Minnesota Statutes 2012, section 14.389, is amended to read:

14.389 EXPEDITED PROCESS.

Subdivision 1.

Application.

new text begin (a) new text end This section applies when deleted text begin a law requiring or
authorizing rules to be adopted states that this section must or may be used to adopt the
rules. When a law refers to this section, the process in this section is the only process an
agency must follow for its rules to deleted text end new text begin : new text end

new text begin (1) a law requiring or authorizing rules to be adopted states that this section must or
may be used to adopt the rules;
new text end

new text begin (2) an agency is adopting or incorporating by reference a specific code or standard
referenced in a law requiring or authorizing rules to be adopted under this chapter;
new text end

new text begin (3) an agency is adopting or modifying a rule to conform to a change in federal law
or regulation that is binding on the state or a state law or rule; or
new text end

new text begin (4) an agency is repealing rules that are obsolete, unnecessary, or duplicative of other
state or federal statutes or rules.
new text end

new text begin (b) An agency may also use this process to adopt rules it determines are
noncontroversial if there is other law authorizing the rules.
new text end

new text begin (c) Rules adopted under this section new text end have the force and effect of law. Sections 14.19
and 14.366 apply to rules adopted under this section.

Subd. 2.

Notice and comment.

new text begin (a) new text end The agency must publish notice of the proposed
rule in the State Register and must mail the notice by United States mail or electronic mail
to persons who have registered with the agency to receive mailed notices.

new text begin (b) The notice for rules adopted under the authority granted in subdivision 1,
paragraph (b), must include a statement that if 25 or more persons request that the agency
follow all of the requirements for rules adopted with or without a public hearing, as
appropriate, except section 14.101, the agency shall adopt the rule only after complying
with all of the requirements for rules adopted with or without a public hearing, as
appropriate, except section 14.101. The notice must also include an easily readable and
understandable description of the purpose, nature, and effect of the proposed rules,
including a description of the persons or classes of persons who are likely to be affected
by the proposed rulemaking. A hearing request made pursuant to this subdivision must
be in writing and include: (1) the name and address of the person requesting the agency
to adopt the rule in compliance with the procedures under sections 14.05 to 14.28; and
(2) the portion or portions of the rule to which the person objects or a statement that
the person is opposed to the entire rule.
new text end

new text begin (c) new text end The mailed notice must include either a copy of the proposed rule or a description
of the nature and effect of the proposed rule and a statement that a free copy is available
from the agency upon request.

new text begin (d) new text end The notice in the State Register must include the proposed rule or the amended
rule in the form required by the revisor under section 14.07, an easily readable and
understandable summary of the overall nature and effect of the proposed rule, and a
citation to the most specific statutory authority for the rule, including authority for the rule
to be adopted under the process in this section.

new text begin (e) new text end The agency must allow 30 days after publication in the State Register for
comment on the rule.

Subd. 3.

Adoption.

The agency may modify a proposed rule if the modifications
do not result in a substantially different rule, as defined in section 14.05, subdivision 2,
paragraphs (b) and (c). If the final rule is identical to the rule originally published in the
State Register, the agency must publish a notice of adoption in the State Register. If the
final rule is different from the rule originally published in the State Register, the agency
must publish a copy of the changes in the State Register. The agency must also file a copy
of the rule with the governor. The rule is effective upon publication in the State Register.

Subd. 4.

Legal review.

Before publication of the final rule in the State Register,
the agency must submit the rule new text begin and its order adopting, amending, or repealing the rule
new text end to an administrative law judge in the Office of Administrative Hearings. new text begin The agency's
order must include the agency's findings and a brief statement summarizing its reasons for
using this expedited process. new text end new text begin The administrative law judge shall make a determination
that the agency's submission establishes the need for and reasonableness of the proposed
rules and fulfills any relevant substantive or procedural requirements imposed on the
agency by law or rule. This shall not be construed to mean that the agency must submit a
statement of need and reasonableness as required in section 14.131. new text end The administrative
law judge shall within 14 days approve or disapprove the rule as to its legality and its form
to the extent the form relates to legality.

Subd. 5.

Option.

A law authorizing or requiring rules to be adopted under this
section may refer specifically to this subdivision. If the law contains a specific reference to
this subdivision, as opposed to a general reference to this section:

(1) the notice required in subdivision 2 must include a statement that a public
hearing will be held if 100 or more people request a hearing. The request must be in
the manner specified in section 14.25; and

(2) if 100 or more people submit a written request for a public hearing, the agency
may adopt the rule only after complying with all of the requirements of chapter 14 for
rules adopted after a public hearing new text begin , except for section 14.101 new text end .

new text begin Subd. 6. new text end

new text begin Additional notice plan. new text end

new text begin An agency proposing expedited rules under
subdivision 1 must give notice by methods designed to reach persons or classes of persons
who might be affected by the proposal before publication of the notice required by
subdivision 2 in the State Register. The agency must submit its additional notice plan to the
Office of Administrative Hearings and receive approval of the plan before publication. The
request for approval must include a description of the proposed additional notice plan; a
description or a draft of the proposed rules; and an explanation of why the agency believes
that its additional notice plan provides sufficient notice. The administrative law judge
must approve or disapprove the plan within five working days after the office receives it.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, sections 14.04; 14.05, subdivision 5; and 14.3895, new text end new text begin are
repealed.
new text end

Sec. 23. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin This act is effective August 1, 2014, and applies to rules for which a notice
of hearing under Minnesota Statutes, section 14.14; a notice of intent to adopt under
Minnesota Statutes, section 14.22; or a dual notice under Minnesota Statutes, section
14.225, is published in the State Register on or after that date.
new text end