1.1                          A bill for an act 
  1.2             relating to state government; requiring local 
  1.3             government impact notes; requiring a determination of 
  1.4             the aggregate cost of complying with proposed rules; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 14. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [14.112] [LOCAL GOVERNMENT IMPACT.] 
  1.9      The elected governing body of a statutory or home rule 
  1.10  city, county, school district, or sanitary district may request 
  1.11  the commissioner of finance to prepare a local impact note on a 
  1.12  rule proposed by a state agency.  The request must be made by 
  1.13  submitting a resolution of the governing body to the 
  1.14  commissioner of finance before a public hearing on a proposed 
  1.15  rule is held or, if the agency intends to adopt the rule without 
  1.16  a public hearing, before the deadline for requesting a public 
  1.17  hearing.  Upon receipt of a request, the commissioner of finance 
  1.18  must prepare an estimate of the fiscal impact of the rule on 
  1.19  each category of political subdivision requesting a local impact 
  1.20  note.  The commissioner may require any political subdivision or 
  1.21  state agency to supply information necessary for the 
  1.22  commissioner to determine fiscal impact.  Relevant information 
  1.23  submitted by a political subdivision, whether or not requested 
  1.24  by the commissioner, must be considered by the commissioner and 
  1.25  commented on in the local impact note.  The commissioner must 
  1.26  prepare the local impact note before the close of the hearing 
  2.1   record or, if there is no public hearing, before the agency 
  2.2   submits the record to the administrative law judge. 
  2.3      Sec. 2.  [14.127] [LEGISLATIVE APPROVAL REQUIRED.] 
  2.4      An agency must determine if the aggregate cost of complying 
  2.5   with proposed rules on all affected persons or entities will 
  2.6   exceed $100,000,000 in the first ten years that the rules are 
  2.7   effective.  An agency must make this determination before the 
  2.8   close of the hearing record, or before the agency submits the 
  2.9   record to the administrative law judge if there is no hearing.  
  2.10  If the agency determines that the aggregate cost will exceed 
  2.11  $100,000,000 in the first ten years, the rules may not take 
  2.12  effect until the rules are approved by a law enacted after the 
  2.13  agency determination.  The administrative law judge must review 
  2.14  and approve the agency's determination under this section.  If 
  2.15  the administrative law judge does not approve the agency's 
  2.16  determination, the rules may not take effect until the rules are 
  2.17  approved by a law enacted after the agency determination.  This 
  2.18  section does not apply if: 
  2.19     (1) the legislature has appropriated money to sufficiently 
  2.20  fund the expected cost of the rule upon the public proposed to 
  2.21  be regulated by the rule; or 
  2.22     (2) the rule has been proposed pursuant to a specific 
  2.23  federal statutory or regulatory mandate. 
  2.24     Sec. 3.  [EFFECTIVE DATE.] 
  2.25     Sections 1 and 2 are effective the day following final 
  2.26  enactment.