1.1                          A bill for an act 
  1.2             relating to state government; rulemaking; authorizing 
  1.3             the governor to veto certain rules; amending Minnesota 
  1.4             Statutes 1998, sections 14.05, by adding a 
  1.5             subdivision; 14.16, subdivision 3; 14.26, subdivision 
  1.6             3; 14.386; and 14.389, subdivision 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 14.05, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 6.  [VETO OF ADOPTED RULES.] The governor may veto 
  1.11  all or a severable portion of a rule of an agency as defined in 
  1.12  section 14.02, subdivisions 2 and 4, by publishing notice of the 
  1.13  veto in the State Register within 14 days of receiving a copy of 
  1.14  the rule from the secretary of state under section 14.16, 
  1.15  subdivision 3, 14.26, subdivision 3, or 14.386 or the agency 
  1.16  under section 14.389, subdivision 3.  This authority applies 
  1.17  only to the extent that the agency itself would have authority, 
  1.18  through rulemaking, to take such action.  If the governor vetoes 
  1.19  a rule or portion of a rule under this section, the governor 
  1.20  shall notify the chairs of the legislative committees having 
  1.21  jurisdiction over the agency whose rule was vetoed. 
  1.22     Sec. 2.  Minnesota Statutes 1998, section 14.16, 
  1.23  subdivision 3, is amended to read: 
  1.24     Subd. 3.  [FILING.] After the agency has adopted the rule, 
  1.25  the agency shall promptly file two three copies of it in the 
  1.26  office of the secretary of state.  The secretary of state shall 
  2.1   forward one copy of each rule filed to the revisor of 
  2.2   statutes and to the governor.  
  2.3      Sec. 3.  Minnesota Statutes 1998, section 14.26, 
  2.4   subdivision 3, is amended to read: 
  2.5      Subd. 3.  [REVIEW.] (a) Within 14 days, the administrative 
  2.6   law judge shall approve or disapprove the rule as to its 
  2.7   legality and its form to the extent that the form relates to 
  2.8   legality, including the issues of whether the rule if modified 
  2.9   is substantially different, as determined under section 14.05, 
  2.10  subdivision 2, from the rule as originally proposed, whether the 
  2.11  agency has the authority to adopt the rule, and whether the 
  2.12  record demonstrates a rational basis for the need for and 
  2.13  reasonableness of the proposed rule.  If the rule is approved, 
  2.14  the administrative law judge shall promptly file two three 
  2.15  copies of it in the office of the secretary of state.  The 
  2.16  secretary of state shall forward one copy of each rule to the 
  2.17  revisor of statutes and to the governor.  If the rule is 
  2.18  disapproved, the administrative law judge shall state in writing 
  2.19  the reasons for the disapproval and make recommendations to 
  2.20  overcome the defects. 
  2.21     (b) The written disapproval must be submitted to the chief 
  2.22  administrative law judge for approval.  If the chief 
  2.23  administrative law judge approves of the findings of the 
  2.24  administrative law judge, the chief administrative law judge 
  2.25  shall send the statement of the reasons for disapproval of the 
  2.26  rule to the agency, the legislative coordinating commission, and 
  2.27  the revisor of statutes and advise the agency and the revisor of 
  2.28  statutes of actions that will correct the defects.  The rule may 
  2.29  not be filed in the office of the secretary of state, nor 
  2.30  published, until the chief administrative law judge determines 
  2.31  that the defects have been corrected or, if applicable, that the 
  2.32  agency has satisfied the rule requirements for the adoption of a 
  2.33  substantially different rule.  
  2.34     (c) If the chief administrative law judge determines that 
  2.35  the need for or reasonableness of the rule has not been 
  2.36  established, and if the agency does not elect to follow the 
  3.1   suggested actions of the chief administrative law judge to 
  3.2   correct that defect, then the agency shall submit the proposed 
  3.3   rule to the legislative coordinating commission for the 
  3.4   commission's advice and comment.  The agency may not adopt the 
  3.5   rule until it has received and considered the advice of the 
  3.6   commission.  However, the agency is not required to wait for the 
  3.7   commission's advice for more than 60 days after the commission 
  3.8   has received the agency's submission.  
  3.9      (d) The administrative law judge shall disregard any error 
  3.10  or defect in the proceeding due to the agency's failure to 
  3.11  satisfy any procedural requirements imposed by law or rule if 
  3.12  the administrative law judge finds: 
  3.13     (1) that the failure did not deprive any person or entity 
  3.14  of an opportunity to participate meaningfully in the rulemaking 
  3.15  process; or 
  3.16     (2) that the agency has taken corrective action to cure the 
  3.17  error or defect so that the failure did not deprive any person 
  3.18  or entity of an opportunity to participate meaningfully in the 
  3.19  rulemaking process. 
  3.20     Sec. 4.  Minnesota Statutes 1998, section 14.386, is 
  3.21  amended to read: 
  3.22     14.386 [PROCEDURE FOR ADOPTING EXEMPT RULES; DURATION.] 
  3.23     (a) A rule adopted, amended, or repealed by an agency, 
  3.24  under a statute enacted after January 1, 1997, authorizing or 
  3.25  requiring rules to be adopted but excluded from the rulemaking 
  3.26  provisions of chapter 14 or from the definition of a rule, has 
  3.27  the force and effect of law only if: 
  3.28     (1) the revisor of statutes approves the form of the rule 
  3.29  by certificate; 
  3.30     (2) the office of administrative hearings approves the rule 
  3.31  as to its legality within 14 days after the agency submits it 
  3.32  for approval and files two three copies of the rule with the 
  3.33  revisor's certificate in the office of the secretary of state; 
  3.34  and 
  3.35     (3) a copy is published by the agency in the State Register.
  3.36     The secretary of state shall forward one copy of the rule 
  4.1   to the governor. 
  4.2      A statute enacted after January 1, 1997, authorizing or 
  4.3   requiring rules to be adopted but excluded from the rulemaking 
  4.4   provisions of chapter 14 or from the definition of a rule does 
  4.5   not excuse compliance with this section unless it makes specific 
  4.6   reference to this section. 
  4.7      (b) A rule adopted under this section is effective for a 
  4.8   period of two years from the date of publication of the rule in 
  4.9   the State Register.  The authority for the rule expires at the 
  4.10  end of this two-year period. 
  4.11     (c) The chief administrative law judge shall adopt rules 
  4.12  relating to the rule approval duties imposed by this section and 
  4.13  section 14.388, including rules establishing standards for 
  4.14  review. 
  4.15     (d) This section does not apply to: 
  4.16     (1) any group or rule listed in section 14.03, subdivisions 
  4.17  1 and 3, except as otherwise provided by law; 
  4.18     (2) game and fish rules of the commissioner of natural 
  4.19  resources adopted under section 84.027, subdivision 13, or 
  4.20  sections 97A.0451 to 97A.0459; 
  4.21     (3) experimental and special management waters designated 
  4.22  by the commissioner of natural resources under sections 97C.001 
  4.23  and 97C.005; or 
  4.24     (4) game refuges designated by the commissioner of natural 
  4.25  resources under section 97A.085. 
  4.26     (e) If a statute provides that a rule is exempt from 
  4.27  chapter 14, and section 14.386 does not apply to the rule, the 
  4.28  rule has the force of law unless the context of the statute 
  4.29  delegating the rulemaking authority makes clear that the rule 
  4.30  does not have force of law. 
  4.31     Sec. 5.  Minnesota Statutes 1998, section 14.389, 
  4.32  subdivision 3, is amended to read: 
  4.33     Subd. 3.  [ADOPTION.] The agency may modify a proposed rule 
  4.34  if the modifications do not result in a substantially different 
  4.35  rule, as defined in section 14.05, subdivision 2, paragraphs (b) 
  4.36  and (c).  If the final rule is identical to the rule originally 
  5.1   published in the State Register, the agency must publish a 
  5.2   notice of adoption in the State Register.  If the final rule is 
  5.3   different from the rule originally published in the State 
  5.4   Register, the agency must publish a copy of the changes in the 
  5.5   State Register.  The agency must also file a copy of the rule 
  5.6   with the governor.  The rule is effective upon publication in 
  5.7   the State Register. 
  5.8      Sec. 6.  [SUNSET.] 
  5.9      Minnesota Statutes, section 14.05, subdivision 6, expires 
  5.10  June 30, 2001. 
  5.11     Sec. 7.  [EFFECTIVE DATE.] 
  5.12     This act is effective July 1, 1999, and applies to rules 
  5.13  adopted on or after that date.