1.1                          A bill for an act 
  1.2             relating to state government; providing for sunset of 
  1.3             administrative rules; authorizing legislative 
  1.4             governmental operations committees to formally object 
  1.5             to administrative rules; modifying the review of 
  1.6             proposed rules; creating a rules task force; providing 
  1.7             appointments; amending Minnesota Statutes 1998, 
  1.8             sections 3.842, subdivision 4a; and 14.15, subdivision 
  1.9             4; Minnesota Statutes 1999 Supplement, section 14.26, 
  1.10            subdivision 3; proposing coding for new law in 
  1.11            Minnesota Statutes, chapter 14. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1998, section 3.842, 
  1.14  subdivision 4a, is amended to read: 
  1.15     Subd. 4a.  [OBJECTIONS TO RULES.] (a) For purposes of this 
  1.16  subdivision, "committee" means the house of representatives 
  1.17  policy committee or senate policy committee with primary 
  1.18  jurisdiction over state governmental operations.  The commission 
  1.19  or a committee may object to a rule as provided in this 
  1.20  subdivision.  If the commission or a committee objects to all or 
  1.21  some portion of a rule because the commission or committee 
  1.22  considers it to be beyond the procedural or substantive 
  1.23  authority delegated to the agency, including a proposed rule 
  1.24  submitted under section 14.15, subdivision 4, or 14.26, 
  1.25  subdivision 3, paragraph (c), the commission or committee may 
  1.26  file that objection in the office of the secretary of state.  
  1.27  The filed objection must contain a concise statement of the 
  1.28  commission's or committee's reasons for its action.  An 
  2.1   objection to a proposed rule submitted by the commission or a 
  2.2   committee under section 14.15, subdivision 4, or 14.26, 
  2.3   subdivision 3, paragraph (c), may not be filed before the rule 
  2.4   is adopted. 
  2.5      (b) The secretary of state shall affix to each objection a 
  2.6   certification of the date and time of its filing and as soon 
  2.7   after the objection is filed as practicable shall transmit a 
  2.8   certified copy of it to the agency issuing the rule in question 
  2.9   and to the revisor of statutes.  The secretary of state shall 
  2.10  also maintain a permanent register open to public inspection of 
  2.11  all objections by the commission or committee.  
  2.12     (c) The commission or committee shall publish and index an 
  2.13  objection filed under this section in the next issue of the 
  2.14  State Register.  The revisor of statutes shall indicate the 
  2.15  existence of the objection adjacent to the rule in question when 
  2.16  that rule is published in Minnesota Rules. 
  2.17     (d) Within 14 days after the filing of an objection by the 
  2.18  commission or committee to a rule, the issuing agency shall 
  2.19  respond in writing to the commission objecting entity.  After 
  2.20  receipt of the response, the commission or committee may 
  2.21  withdraw or modify its objection.  
  2.22     (e) After the filing of an objection by the commission or 
  2.23  committee that is not subsequently withdrawn, the burden is upon 
  2.24  the agency in any proceeding for judicial review or for 
  2.25  enforcement of the rule to establish that the whole or portion 
  2.26  of the rule objected to is valid.  
  2.27     (f) The failure of the commission or a committee to object 
  2.28  to a rule is not an implied legislative authorization of its 
  2.29  validity. 
  2.30     (g) In accordance with sections 14.44 and 14.45, the 
  2.31  commission or a committee may petition for a declaratory 
  2.32  judgment to determine the validity of a rule objected to by the 
  2.33  commission or committee.  The action must be started within two 
  2.34  years after an objection is filed in the office of the secretary 
  2.35  of state.  
  2.36     (h) The commission or a committee may intervene in 
  3.1   litigation arising from agency action.  For purposes of this 
  3.2   paragraph, agency action means the whole or part of a rule, or 
  3.3   the failure to issue a rule. 
  3.4      Sec. 2.  Minnesota Statutes 1998, section 14.15, 
  3.5   subdivision 4, is amended to read: 
  3.6      Subd. 4.  [NEED OR REASONABLENESS NOT ESTABLISHED.] If the 
  3.7   chief administrative law judge determines that the need for or 
  3.8   reasonableness of the rule has not been established pursuant to 
  3.9   section 14.14, subdivision 2, and if the agency does not elect 
  3.10  to follow the suggested actions of the chief administrative law 
  3.11  judge to correct that defect, then the agency shall submit the 
  3.12  proposed rule to the legislative coordinating commission and to 
  3.13  the house of representatives and senate policy committees with 
  3.14  primary jurisdiction over state governmental operations for the 
  3.15  commission's advice and comment.  The agency may not adopt the 
  3.16  rule until it has received and considered the advice of the 
  3.17  commission and committees.  However, the agency is not required 
  3.18  to wait for the commission's advice for more than 60 days after 
  3.19  the commission has and committees have received the agency's 
  3.20  submission.  
  3.21     Sec. 3.  Minnesota Statutes 1999 Supplement, section 14.26, 
  3.22  subdivision 3, is amended to read: 
  3.23     Subd. 3.  [REVIEW.] (a) Within 14 days, the administrative 
  3.24  law judge shall approve or disapprove the rule as to its 
  3.25  legality and its form to the extent that the form relates to 
  3.26  legality, including the issues of whether the rule if modified 
  3.27  is substantially different, as determined under section 14.05, 
  3.28  subdivision 2, from the rule as originally proposed, whether the 
  3.29  agency has the authority to adopt the rule, and whether the 
  3.30  record demonstrates a rational basis for the need for and 
  3.31  reasonableness of the proposed rule.  If the rule is approved, 
  3.32  the administrative law judge shall promptly file three copies of 
  3.33  it in the office of the secretary of state.  The secretary of 
  3.34  state shall forward one copy of each rule to the revisor of 
  3.35  statutes and to the governor.  If the rule is disapproved, the 
  3.36  administrative law judge shall state in writing the reasons for 
  4.1   the disapproval and make recommendations to overcome the defects.
  4.2      (b) The written disapproval must be submitted to the chief 
  4.3   administrative law judge for approval.  If the chief 
  4.4   administrative law judge approves of the findings of the 
  4.5   administrative law judge, the chief administrative law judge 
  4.6   shall send the statement of the reasons for disapproval of the 
  4.7   rule to the agency, the legislative coordinating commission, the 
  4.8   house of representatives and senate policy committees with 
  4.9   primary jurisdiction over state governmental operations and the 
  4.10  revisor of statutes and advise the agency and the revisor of 
  4.11  statutes of actions that will correct the defects.  The rule may 
  4.12  not be filed in the office of the secretary of state, nor 
  4.13  published, until the chief administrative law judge determines 
  4.14  that the defects have been corrected or, if applicable, that the 
  4.15  agency has satisfied the rule requirements for the adoption of a 
  4.16  substantially different rule.  
  4.17     (c) If the chief administrative law judge determines that 
  4.18  the need for or reasonableness of the rule has not been 
  4.19  established, and if the agency does not elect to follow the 
  4.20  suggested actions of the chief administrative law judge to 
  4.21  correct that defect, then the agency shall submit the proposed 
  4.22  rule to the legislative coordinating commission and to the house 
  4.23  of representatives and senate policy committees with primary 
  4.24  jurisdiction over state governmental operations for the 
  4.25  commission's advice and comment.  The agency may not adopt the 
  4.26  rule until it has received and considered the advice of the 
  4.27  commission and committees.  However, the agency is not required 
  4.28  to wait for the commission's advice for more than 60 days after 
  4.29  the commission has and committees have received the agency's 
  4.30  submission.  
  4.31     (d) The administrative law judge shall disregard any error 
  4.32  or defect in the proceeding due to the agency's failure to 
  4.33  satisfy any procedural requirements imposed by law or rule if 
  4.34  the administrative law judge finds: 
  4.35     (1) that the failure did not deprive any person or entity 
  4.36  of an opportunity to participate meaningfully in the rulemaking 
  5.1   process; or 
  5.2      (2) that the agency has taken corrective action to cure the 
  5.3   error or defect so that the failure did not deprive any person 
  5.4   or entity of an opportunity to participate meaningfully in the 
  5.5   rulemaking process. 
  5.6      Sec. 4.  [RULES TASK FORCE.] 
  5.7      A rules task force of eight members is created.  The 
  5.8   governor must appoint four members.  The task force also 
  5.9   includes one member each from the minority and majority caucus 
  5.10  in the house of representatives and the senate.  House members 
  5.11  must be appointed by the speaker.  Senate members must be 
  5.12  appointed by the committee on rules and administration.  The 
  5.13  member of the majority caucus appointed by the speaker of the 
  5.14  house of representatives must convene the first meeting.  The 
  5.15  members of the task force must elect a chair.  The legislative 
  5.16  coordinating commission and an agency designated by the governor 
  5.17  must provide staff assistance and administrative support for the 
  5.18  task force within existing appropriations.  The task force must 
  5.19  study and make recommendations to the governor and the 
  5.20  legislature by January 15, 2001, on issues relating to review of 
  5.21  agency rules.  The recommendations must include, but are not 
  5.22  limited to: 
  5.23     (1) a process to be used by agencies, the governor, and the 
  5.24  legislature to identify and prioritize rules and related laws 
  5.25  and programs that will be subject to legislative review; 
  5.26     (2) a process by which the legislature will review rules 
  5.27  and related laws and programs identified under clause (1); 
  5.28     (3) the estimated agency and legislative time and resources 
  5.29  required for review of rules and related laws and programs under 
  5.30  the processes recommended under clauses (1) and (2); 
  5.31     (4) the effect of possible repeal of agency rules on the 
  5.32  state budget; and 
  5.33     (5) the desirability of changes in the rulemaking 
  5.34  requirements of the Administrative Procedure Act, given 
  5.35  increased legislative scrutiny of rules. 
  5.36     In making its recommendations, the task force must consult 
  6.1   with interested parties, and must consider relevant state and 
  6.2   federal laws and commitments.  The task force is subject to 
  6.3   Minnesota Statutes, section 471.705.  The task force expires 
  6.4   June 30, 2001.  
  6.5      Sec. 5.  [14.369] [REPEAL OF RULES; SCHEDULE.] 
  6.6      Subdivision 1.  [REPEAL.] Rules published in Minnesota 
  6.7   Rules are repealed according to the schedule in subdivision 2, 
  6.8   unless a law enacted before the effective date of the repeal 
  6.9   authorizes the rules to continue in effect.  However, a rule 
  6.10  imposing fees, or a rule that is required by federal law, is 
  6.11  repealed only if a law is enacted before the effective date of 
  6.12  the repeal specifying the degree to which and the manner by 
  6.13  which the affected agency is to implement the program supported 
  6.14  by the fee or required by federal law.  If, during the annual 
  6.15  legislative session in the year in which an agency's rules are 
  6.16  scheduled for repeal, the full house of representatives and the 
  6.17  full senate have not voted on a bill or amendment that would 
  6.18  repeal the agency's rules or authorize the agency's rules to 
  6.19  remain in effect, then the rules of that agency are not repealed 
  6.20  until 60 days after the commencement of the regular legislative 
  6.21  session in the following year.  If a rule is repealed under 
  6.22  subdivision 2, the agency may not adopt new rules on the same 
  6.23  topic as the repealed rules unless specifically authorized to do 
  6.24  so by subsequent law.  
  6.25     Subd. 2.  [SCHEDULE.] (a) Rules of the administration 
  6.26  department, agriculture department, children, families, and 
  6.27  learning department, commerce department, and corrections 
  6.28  department are repealed July 1, 2002. 
  6.29     (b) Rules of the accountancy board, administrative hearings 
  6.30  office, animal health board, architecture, engineering, land 
  6.31  surveying, landscape architecture, geoscience, and interior 
  6.32  design board, and arts board are repealed July 1, 2003. 
  6.33     Subd. 3.  [EFFECT ON OTHER LAW.] This section does not 
  6.34  extend the effective period of rules that are repealed at an 
  6.35  earlier time by other law. 
  6.36     Subd. 4.  [SUCCESSOR AGENCIES.] If an agency is renamed, 
  7.1   its rules expire at the time indicated in subdivision 2 for the 
  7.2   predecessor agency.  If the duty to adopt rules on a topic is 
  7.3   transferred from one agency to another agency, the rules expire 
  7.4   at the time indicated in subdivision 2 for the successor agency. 
  7.5      Sec. 6.  [14.3691] [RULE REVIEW.] 
  7.6      Subdivision 1.  [REPORTS.] An entity whose rules are 
  7.7   scheduled for review under this section or repeal under section 
  7.8   14.369 must report to the appropriate committees of the 
  7.9   legislature by January 15 of the year in which the entity's 
  7.10  rules are scheduled for review or repeal.  The speaker of the 
  7.11  house of representatives and the senate committee on rules and 
  7.12  administration shall designate the appropriate committees to 
  7.13  receive these reports.  The report must:  (1) list any rules 
  7.14  that the entity recommends for repeal; and (2) list and briefly 
  7.15  describe the rationale for rules that the entity believes should 
  7.16  remain in effect.  Any costs of preparing this report must be 
  7.17  absorbed within funds otherwise appropriated to the entity. 
  7.18     Subd. 2.  [SCHEDULE.] (a) Rules of the economic security 
  7.19  department, employee relations department, health department, 
  7.20  housing finance agency, human rights department, human services 
  7.21  department, and labor and industry department will be reviewed 
  7.22  in 2004. 
  7.23     (b) Rules of the mediation services bureau, natural 
  7.24  resources department, pollution control agency, public safety 
  7.25  department, and public service department will be reviewed in 
  7.26  2005. 
  7.27     (c) Rules of the revenue department, state planning agency, 
  7.28  trade and economic development department, transportation 
  7.29  department, and veterans affairs department will be reviewed in 
  7.30  2006. 
  7.31     (d) Rules of the Perpich center for arts education, 
  7.32  assessors board, barber examiners board, boxing board, campaign 
  7.33  finance and public disclosure board, capitol area architectural 
  7.34  and planning board, chiropractic examiners board, dentistry 
  7.35  board, designer selection board, dietetics and nutrition 
  7.36  practice board, electricity board, emergency medical services 
  8.1   regulatory board, and environmental assistance office will be 
  8.2   reviewed in 2007. 
  8.3      (e) Rules of the environmental quality board, gambling 
  8.4   control board, harmful substance compensation board, health 
  8.5   licensing boards, higher education services office, Indian 
  8.6   affairs council, lottery board, marriage and family therapy 
  8.7   board, medical practice board, metropolitan council, 
  8.8   metropolitan waste control commission, Minnesota state 
  8.9   retirement system, municipal board, nursing board, nursing home 
  8.10  administrators examiners board, optometry board, pardons board, 
  8.11  and peace officer standards and training board will be reviewed 
  8.12  in 2008. 
  8.13     (f) Rules of the pharmacy board, podiatry board, psychology 
  8.14  board, public employees retirement association, public utilities 
  8.15  commission, racing commission, rural finance authority, 
  8.16  secretary of state, sentencing guidelines commission, social 
  8.17  work board, tax court, teaching board, telecommunication access 
  8.18  for communication-impaired persons, transportation regulation 
  8.19  board, veterans homes board of directors, veterinary medicine 
  8.20  board, water and soil resources board, workers' compensation 
  8.21  court of appeals, and zoological board will be reviewed in 2009. 
  8.22     Sec. 7.  [EFFECTIVE DATE.] 
  8.23     Sections 1 to 4 are effective the day following final 
  8.24  enactment.