1.1                          A bill for an act 
  1.2             relating to governmental operations; providing for 
  1.3             regulatory relief for local units of government; 
  1.4             proposing coding for new law in Minnesota Statutes, 
  1.5             chapter 14. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [14.091] [PETITION; UNIT OF LOCAL GOVERNMENT.] 
  1.8      (a) The elected governing body of a unit of local 
  1.9   government may petition for amendment or repeal of a rule or a 
  1.10  specified portion of a rule.  The petition must be adopted by 
  1.11  resolution of the elected governing body and must be submitted 
  1.12  in writing to the agency and to the office of administrative 
  1.13  hearings, must specify what amendment or repeal is requested, 
  1.14  and must demonstrate that one of the following have become 
  1.15  available since the adoption of the rule in question: 
  1.16     (1) significant new evidence relating to the need for or 
  1.17  reasonableness of the rule; or 
  1.18     (2) less costly or intrusive methods of achieving the 
  1.19  purpose of the rule. 
  1.20     (b) Within 30 days of receiving a petition, an agency shall 
  1.21  reply to the petitioner in writing stating either that the 
  1.22  agency, within 90 days of the date of the reply, will give 
  1.23  notice under section 14.389 of intent to adopt the amendment or 
  1.24  repeal requested by the petitioner or that the agency does not 
  1.25  intend to amend or repeal the rule and has requested the office 
  2.1   of administrative hearings to review the petition.  If the 
  2.2   agency intends to amend or repeal the rule in the manner 
  2.3   requested by the petitioner, the agency must use the process 
  2.4   under section 14.389 to amend or repeal the rule.  Section 
  2.5   14.389, subdivision 5, applies.  
  2.6      (c) Upon receipt of an agency request under paragraph (b), 
  2.7   the chief administrative law judge shall assign an 
  2.8   administrative law judge, who was not involved when the 
  2.9   petitioned rule was adopted or amended, to review the petition 
  2.10  to determine whether the petitioner has complied with the 
  2.11  requirements of paragraph (a).  In conducting the review, the 
  2.12  administrative law judge may consult with and consider written 
  2.13  material submitted by the petitioner, the agency, or other 
  2.14  interested persons within ten days of receipt of the agency 
  2.15  request.  The administrative law judge shall dismiss the 
  2.16  petition if the judge determines that the petitioner has not 
  2.17  complied with the requirements of paragraph (a). 
  2.18     (d) If the administrative law judge assigned by the chief 
  2.19  administrative law judge determines that the petitioner has 
  2.20  complied with the requirements of paragraph (a), the 
  2.21  administrative law judge shall conduct a hearing and issue a 
  2.22  decision on the petition within 120 days of its receipt by the 
  2.23  office of administrative hearings.  The agency shall give notice 
  2.24  of the hearing in the same manner required for notice of a 
  2.25  proposed rule hearing under section 14.14, subdivision 1a.  At 
  2.26  the public hearing, the agency shall make an affirmative 
  2.27  presentation of facts establishing the need for and 
  2.28  reasonableness of the rule or portion of the rule in question.  
  2.29  A rule or portion of a rule is needed and reasonable if that 
  2.30  specific rule or portion of a rule is required by federal law or 
  2.31  required to maintain authority to administer a federal program. 
  2.32     (e) This paragraph applies if the administrative law judge 
  2.33  determines that the agency has not established the continued 
  2.34  need for and reasonableness of the rule or portion of the rule. 
  2.35     (1) Unless the agency has published notice in the State 
  2.36  Register of intent to amend or repeal the rule as provided by 
  3.1   this paragraph, the rule does not have the force of law, 
  3.2   effective 90 days after the administrative law judge's decision, 
  3.3   or upon the next adjournment of an annual legislative session 
  3.4   after the administrative law judge's decision, whichever is 
  3.5   later. 
  3.6      (2) The agency may amend or repeal the rule in the manner 
  3.7   requested by the petitioner, or in another manner that the 
  3.8   administrative law judge has determined is needed and reasonable.
  3.9   Amendments under this clause may be adopted under the expedited 
  3.10  process in section 14.389.  Section 14.389, subdivision 5, 
  3.11  applies to this adoption.  If the agency uses the expedited 
  3.12  process and no public hearing is required, the agency must 
  3.13  complete the amendment or repeal of the rule within 90 days of 
  3.14  the administrative law judge's decision under paragraph (d).  If 
  3.15  a public hearing is required, the agency must complete the 
  3.16  amendment or repeal of the rule within 180 days of the 
  3.17  administrative law judge's decision under paragraph (d).  A rule 
  3.18  or portion of a rule that is not amended or repealed in the time 
  3.19  deadline in this clause does not have the force of law upon 
  3.20  expiration of the deadline.  A rule that is amended under this 
  3.21  clause has the force of law, as amended. 
  3.22     (f) The chief administrative law judge shall report the 
  3.23  decision under paragraph (d) within 30 days to the chairs of the 
  3.24  house and senate committees having jurisdiction over 
  3.25  governmental operations and the chairs of the house and senate 
  3.26  committees having jurisdiction over the agency whose rule was 
  3.27  the subject of the petition. 
  3.28     (g) The chief administrative law judge shall assess a 
  3.29  petitioner half the cost of processing a petition and conducting 
  3.30  a public hearing under paragraph (d).