1.1                          A bill for an act 
  1.2             relating to state government; regulating rulemaking by 
  1.3             state agencies; making various technical and 
  1.4             housekeeping changes; amending Minnesota Statutes 
  1.5             2000, sections 14.05, subdivision 3; 14.07, 
  1.6             subdivision 2; 14.08; 14.101, subdivisions 1, 2, and 
  1.7             by adding a subdivision; 14.131; 14.14, subdivision 
  1.8             1a; 14.15, subdivision 1; 14.16, subdivision 1; 14.19; 
  1.9             14.22, subdivision 1; 14.23; 14.25; 14.26, 
  1.10            subdivisions 1 and 3; 14.365; 14.38, subdivision 2; 
  1.11            14.386; and 14.388. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 14.05, 
  1.14  subdivision 3, is amended to read: 
  1.15     Subd. 3.  [AUTHORITY TO WITHDRAW PROPOSED RULE.] An agency 
  1.16  may withdraw a proposed rule any time prior to before filing it 
  1.17  with the secretary of state.  An agency may withdraw a portion 
  1.18  of a rule unless the remaining rule is substantially different 
  1.19  from the rule as published.  It shall publish notice that 
  1.20  the proposed rule has been withdrawn in the State Register.  If 
  1.21  a rule is withdrawn, the agency may again propose it for 
  1.22  adoption, either in the original or modified form, but the 
  1.23  agency shall comply with all procedures of sections 14.05 to 
  1.24  14.28, with the exception of section 14.101, if the 
  1.25  noncompliance is approved by the chief administrative law judge. 
  1.26     Sec. 2.  Minnesota Statutes 2000, section 14.07, 
  1.27  subdivision 2, is amended to read: 
  1.28     Subd. 2.  [APPROVAL OF FORM.] No agency decision to adopt a 
  2.1   rule or an emergency, exempt, or expedited rule, including a 
  2.2   decision to amend or modify a proposed rule or proposed 
  2.3   emergency, exempt, or expedited rule, shall be is effective 
  2.4   unless the agency has presented the rule to the revisor of 
  2.5   statutes and the revisor has certified that its form is approved.
  2.6      Sec. 3.  Minnesota Statutes 2000, section 14.08, is amended 
  2.7   to read: 
  2.8      14.08 [APPROVAL OF RULE AND RULE FORM; COSTS.] 
  2.9      (a) Two copies One copy of a rule adopted pursuant to under 
  2.10  section 14.26 shall must be submitted by the agency to the chief 
  2.11  administrative law judge.  The chief administrative law judge 
  2.12  shall send one copy of the rule to the revisor on the same 
  2.13  day request from the revisor certified copies of the rule when 
  2.14  it is submitted by the agency under section 14.26.  Within five 
  2.15  days after receipt of the rule the request for certification of 
  2.16  the rule is received by the revisor, excluding weekends and 
  2.17  holidays, the revisor shall either return the rule with a 
  2.18  certificate of approval of the form of the rule to the chief 
  2.19  administrative law judge or notify the chief administrative law 
  2.20  judge and the agency that the form of the rule will not be 
  2.21  approved.  
  2.22     If the chief administrative law judge disapproves a rule, 
  2.23  the agency may modify it and the agency shall submit two copies 
  2.24  one copy of the modified rule, approved as to form by the 
  2.25  revisor, to the chief administrative law judge who shall send a 
  2.26  copy to the revisor for approval as to form as described in this 
  2.27  paragraph. 
  2.28     (b) One copy of a rule adopted after a public hearing shall 
  2.29  must be submitted by the agency to the revisor for approval of 
  2.30  the form of the rule chief administrative law judge.  The chief 
  2.31  administrative law judge shall request from the revisor 
  2.32  certified copies of the rule when it is submitted by the 
  2.33  agency.  Within five working days after receipt of the rule 
  2.34  request, the revisor shall either return the rule with a 
  2.35  certificate of approval to the agency chief administrative law 
  2.36  judge or notify the chief administrative law judge and the 
  3.1   agency that the form of the rule will not be approved.  
  3.2      (c) If the revisor refuses to approve the form of the rule, 
  3.3   the revisor's notice shall must revise the rule so it is in the 
  3.4   correct form.  
  3.5      (d) The chief administrative law judge shall assess an 
  3.6   agency for the actual cost of processing rules under this 
  3.7   section.  Each agency shall include in its budget money to pay 
  3.8   the assessments.  Receipts from the assessment must be deposited 
  3.9   in the administrative hearings account created established in 
  3.10  section 14.54. 
  3.11     Sec. 4.  Minnesota Statutes 2000, section 14.101, 
  3.12  subdivision 1, is amended to read: 
  3.13     Subdivision 1.  [REQUIRED NOTICE.] In addition to seeking 
  3.14  information by other methods designed to reach persons or 
  3.15  classes of persons who might be affected by the proposal, an 
  3.16  agency, at least 60 days before publication of a notice of 
  3.17  intent to adopt or a notice of hearing, shall solicit comments 
  3.18  from the public on the subject matter of a possible rulemaking 
  3.19  proposal under active consideration within the agency by causing 
  3.20  notice to be published in the State Register.  The notice must 
  3.21  include a description of the subject matter of the proposal, and 
  3.22  the types of groups and individuals likely to be affected, 
  3.23  and must indicate where, when, and how persons may comment on 
  3.24  the proposal and whether and how drafts of any proposal may be 
  3.25  obtained from the agency.  
  3.26     This notice must be published within 60 days of the 
  3.27  effective date of any new statutory grant of required rulemaking 
  3.28  or amendatory law requiring rules to be adopted, amended, or 
  3.29  repealed. 
  3.30     Sec. 5.  Minnesota Statutes 2000, section 14.101, 
  3.31  subdivision 2, is amended to read: 
  3.32     Subd. 2.  [ADVISORY COMMITTEES.] Each agency may also 
  3.33  appoint committees to comment, before publication of a notice of 
  3.34  intent to adopt or a notice of hearing, on the subject matter of 
  3.35  a possible rulemaking under active consideration within the 
  3.36  agency.  The membership of those committees must be published at 
  4.1   least annually in the State Register. 
  4.2      Sec. 6.  Minnesota Statutes 2000, section 14.101, is 
  4.3   amended by adding a subdivision to read: 
  4.4      Subd. 4.  [REDUCTION OF TIME PERIOD.] The chief 
  4.5   administrative law judge shall reduce the time period before 
  4.6   publication from 60 to 30 days for good cause. 
  4.7      Sec. 7.  Minnesota Statutes 2000, section 14.131, is 
  4.8   amended to read: 
  4.9      14.131 [STATEMENT OF NEED AND REASONABLENESS.] 
  4.10     Before the agency orders the publication of a rulemaking 
  4.11  notice required By the date of the section 14.14, subdivision 
  4.12  1a, notice, the agency must shall prepare, review, and make 
  4.13  available for public review a statement of the need for and 
  4.14  reasonableness of the rule.  The statement of need and 
  4.15  reasonableness must be prepared under rules adopted by the chief 
  4.16  administrative law judge and must include the following to the 
  4.17  extent the agency, through reasonable effort, can ascertain this 
  4.18  information: 
  4.19     (1) a description of the classes of persons who probably 
  4.20  will be affected by the proposed rule, including classes that 
  4.21  will bear the costs of the proposed rule and classes that will 
  4.22  benefit from the proposed rule; 
  4.23     (2) the probable costs to the agency and to any other 
  4.24  agency of the implementation and enforcement of the proposed 
  4.25  rule and any anticipated effect on state revenues; 
  4.26     (3) a determination of whether there are less costly 
  4.27  methods or less intrusive methods for achieving the purpose of 
  4.28  the proposed rule; 
  4.29     (4) a description of any alternative methods for achieving 
  4.30  the purpose of the proposed rule that were seriously considered 
  4.31  by the agency and the reasons why they were rejected in favor of 
  4.32  the proposed rule; 
  4.33     (5) the probable costs of complying with the proposed rule; 
  4.34  and 
  4.35     (6) an assessment of any differences between the proposed 
  4.36  rule and existing federal regulations and a specific analysis of 
  5.1   the need for and reasonableness of each difference.  
  5.2      The statement must describe how the agency, in developing 
  5.3   the rules, considered and implemented the legislative policy 
  5.4   supporting performance-based regulatory systems set forth in 
  5.5   section 14.002. 
  5.6      The statement must also describe the agency's efforts to 
  5.7   provide additional notification under section 14.14, subdivision 
  5.8   1a, to persons or classes of persons who may be affected by the 
  5.9   proposed rule or must explain why these efforts were not made. 
  5.10     The agency must send a copy of the statement of need and 
  5.11  reasonableness to the legislative reference library when it 
  5.12  becomes available for public review the notice of hearing is 
  5.13  mailed under section 14.14, subdivision 1a.  
  5.14     Sec. 8.  Minnesota Statutes 2000, section 14.14, 
  5.15  subdivision 1a, is amended to read: 
  5.16     Subd. 1a.  [NOTICE OF RULE HEARING.] (a) Each agency shall 
  5.17  maintain a list of all persons who have registered with the 
  5.18  agency for the purpose of receiving notice of rule proceedings.  
  5.19  The agency may inquire as to whether those persons on the list 
  5.20  wish to maintain their names on it and may remove names for 
  5.21  which there is a negative reply or no reply within 60 days.  The 
  5.22  agency shall, at least 30 days before the date set for the 
  5.23  hearing, give notice of its intention to adopt rules by United 
  5.24  States mail to all persons on its list, and by publication in 
  5.25  the State Register.  The mailed notice must include either a 
  5.26  copy of the proposed rule or a description of its nature and 
  5.27  effect and an announcement that a free copy of the proposed rule 
  5.28  is available on request from the agency.  Each agency may, at 
  5.29  its own discretion, also notify persons not on its list who may 
  5.30  be affected by the rule being proposed. In addition, each agency 
  5.31  shall make reasonable efforts to notify persons or classes of 
  5.32  persons who may be significantly affected by the rule being 
  5.33  proposed by giving notice of its intention in newsletters, 
  5.34  newspapers, or other publications, or through other means of 
  5.35  communication.  The notice in the State Register must include 
  5.36  the proposed rule or an amended rule in the form required by the 
  6.1   revisor under section 14.07, together with a citation to the 
  6.2   most specific statutory authority for the proposed rule, a 
  6.3   statement of the place, date, and time of the public hearing, a 
  6.4   statement that persons may register with the agency for the 
  6.5   purpose of receiving notice of rule proceedings and notice 
  6.6   that a rule has been adopted, the agency intends to adopt a rule 
  6.7   and other information required by law or rule.  When an entire 
  6.8   rule is proposed to be repealed, the agency need only publish 
  6.9   that fact, giving the citation to the rule to be repealed in the 
  6.10  notice. 
  6.11     (b) The chief administrative law judge may authorize an 
  6.12  agency to omit from the notice of rule hearing the text of any 
  6.13  proposed rule, the publication of which would be unduly 
  6.14  cumbersome, expensive, or otherwise inexpedient if: 
  6.15     (1) knowledge of the rule is likely to be important to only 
  6.16  a small class of persons; 
  6.17     (2) the notice of rule hearing states that a free copy of 
  6.18  the entire rule is available upon request to the agency; and 
  6.19     (3) the notice of rule hearing states in detail the 
  6.20  specific subject matter of the omitted rule, cites the statutory 
  6.21  authority for the proposed rule, and details the proposed rule's 
  6.22  purpose and motivation. 
  6.23     Sec. 9.  Minnesota Statutes 2000, section 14.15, 
  6.24  subdivision 1, is amended to read: 
  6.25     Subdivision 1.  [TIME OF PREPARATION.] After allowing a 
  6.26  comment period during which written material to may be submitted 
  6.27  and recorded in the hearing record for five working days after 
  6.28  the public hearing ends, or for a longer period not to exceed 20 
  6.29  days if ordered by the administrative law judge, the 
  6.30  administrative law judge assigned to the hearing shall write a 
  6.31  report as provided for in section 14.50.  Prior to Before 
  6.32  writing the report, the administrative law judge shall allow the 
  6.33  agency and interested persons a rebuttal period of five working 
  6.34  days after the submission comment period ends to respond in 
  6.35  writing to any new information submitted.  During the comment 
  6.36  period and five-day rebuttal period, the agency may indicate in 
  7.1   writing whether there are amendments suggested by other persons 
  7.2   which the agency is willing to adopt.  Additional evidence may 
  7.3   not be submitted during this five-day rebuttal period.  The 
  7.4   written responses shall must be added to the rulemaking record.  
  7.5      Sec. 10.  Minnesota Statutes 2000, section 14.16, 
  7.6   subdivision 1, is amended to read: 
  7.7      Subdivision 1.  [REVIEW OF MODIFICATIONS.] If the report of 
  7.8   the administrative law judge finds no defects, the agency may 
  7.9   proceed to adopt the rule.  After receipt of the administrative 
  7.10  law judge's report, if the agency makes any modifications to the 
  7.11  rule other than those recommended by the administrative law 
  7.12  judge, it must return the rule, approved as to form by the 
  7.13  revisor, to the chief administrative law judge for a review on 
  7.14  of legality, including the issue of whether the rule as modified 
  7.15  is substantially different, as determined under section 14.05, 
  7.16  subdivision 2, from the rule as originally proposed.  If the 
  7.17  chief administrative law judge determines that the modified rule 
  7.18  is substantially different from the rule that which was 
  7.19  originally proposed, the chief administrative law judge shall 
  7.20  advise the agency of actions which that will correct the 
  7.21  defects.  The agency shall may not adopt the modified rule until 
  7.22  the chief administrative law judge determines that the defects 
  7.23  have been corrected or, if applicable, that the agency has 
  7.24  satisfied the rule requirements for the adoption of a 
  7.25  substantially different rule. 
  7.26     The agency shall give notice to all persons who requested 
  7.27  to be informed that the rule has been adopted and filed with the 
  7.28  secretary of state.  This notice shall must be given on the same 
  7.29  day that the rule is filed.  
  7.30     Sec. 11.  Minnesota Statutes 2000, section 14.19, is 
  7.31  amended to read: 
  7.32     14.19 [DEADLINE TO COMPLETE RULEMAKING.] 
  7.33     Within 180 days after issuance of the administrative law 
  7.34  judge's report or that of the chief administrative law judge, 
  7.35  the agency shall submit its notice of adoption, amendment, or 
  7.36  repeal to the State Register for publication.  If the agency has 
  8.1   not submitted its notice to the State Register within 180 days, 
  8.2   the rule is automatically withdrawn.  The agency may not adopt 
  8.3   the withdrawn rules without again following the procedures of 
  8.4   sections 14.05 to 14.28, with the exception of section 14.101, 
  8.5   if the noncompliance is approved by the chief administrative law 
  8.6   judge.  It The agency shall report to the legislative 
  8.7   coordinating commission, other appropriate committees of the 
  8.8   legislature, and the governor its failure to adopt rules and the 
  8.9   reasons for that failure.  The 180-day time limit of this 
  8.10  section does not include any days used for review by the chief 
  8.11  administrative law judge or the commission if the review is 
  8.12  required by law.  
  8.13     Sec. 12.  Minnesota Statutes 2000, section 14.22, 
  8.14  subdivision 1, is amended to read: 
  8.15     Subdivision 1.  [CONTENTS.] (a) Unless an agency proceeds 
  8.16  directly to a public hearing on a proposed rule and gives the 
  8.17  notice prescribed in section 14.14, subdivision 1a, the agency 
  8.18  shall give notice of its intention to adopt a rule without 
  8.19  public hearing.  The notice must be given by publication in the 
  8.20  State Register and by United States mail to persons who have 
  8.21  registered their names with the agency under section 14.14, 
  8.22  subdivision 1a.  The mailed notice must include either a copy of 
  8.23  the proposed rule or a description of its nature and effect and 
  8.24  an announcement that a free copy of the proposed rule is 
  8.25  available on request from the agency.  Each agency may, at its 
  8.26  own discretion, also notify persons not on its list who may be 
  8.27  affected by the rule being proposed. In addition, each agency 
  8.28  shall make reasonable efforts to notify persons or classes of 
  8.29  persons who may be significantly affected by the rule by giving 
  8.30  notice of its intention in newsletters, newspapers, or other 
  8.31  publications, or through other means of communication.  The 
  8.32  notice in the State Register must include the proposed rule or 
  8.33  the amended rule in the form required by the revisor under 
  8.34  section 14.07, a citation to the most specific statutory 
  8.35  authority for the proposed rule, a statement that persons may 
  8.36  register with the agency for the purpose of receiving notice of 
  9.1   rule proceedings and notice that a rule has been submitted to 
  9.2   the chief administrative law judge, and other information 
  9.3   required by law or rule.  When an entire rule is proposed to be 
  9.4   repealed, the notice need only state that fact, giving the 
  9.5   citation to the rule to be repealed in the notice.  The notice 
  9.6   must include a statement advising the public: 
  9.7      (1) that the public has 30 days in which to submit comment 
  9.8   in support of or in opposition to the proposed rule and that 
  9.9   comment is encouraged; 
  9.10     (2) that each comment should identify the portion of the 
  9.11  proposed rule addressed, the reason for the comment, and any 
  9.12  change proposed; 
  9.13     (3) that if 25 or more persons submit a written request for 
  9.14  a public hearing within the 30-day comment period, a public 
  9.15  hearing will be held; 
  9.16     (4) of the manner in which persons must request a public 
  9.17  hearing on the proposed rule; 
  9.18     (5) of the requirements contained in section 14.25 relating 
  9.19  to a written request for a public hearing, and that the 
  9.20  requester is encouraged to propose any change desired; 
  9.21     (6) that the proposed rule may be modified if the 
  9.22  modifications are supported by the data and views submitted; and 
  9.23     (7) that if a hearing is not required, notice of the date 
  9.24  of submission of the proposed rule to the chief administrative 
  9.25  law judge for review will be mailed to any person requesting to 
  9.26  receive the notice.  
  9.27     In connection with the statements required in clauses (1) 
  9.28  and (3), the notice must also include the date on which the 
  9.29  30-day comment period ends. 
  9.30     (b) The chief administrative law judge may authorize an 
  9.31  agency to omit from the notice of intent to adopt the text of 
  9.32  any proposed rule, the publication of which would be unduly 
  9.33  cumbersome, expensive, or otherwise inexpedient if: 
  9.34     (1) knowledge of the rule is likely to be important to only 
  9.35  a small class of persons; 
  9.36     (2) the notice of intent to adopt states that a free copy 
 10.1   of the entire rule is available upon request to the agency; and 
 10.2      (3) the notice of intent to adopt states in detail the 
 10.3   specific subject matter of the omitted rule, cites the statutory 
 10.4   authority for the proposed rule, and details the proposed rule's 
 10.5   purpose and motivation. 
 10.6      Sec. 13.  Minnesota Statutes 2000, section 14.23, is 
 10.7   amended to read: 
 10.8      14.23 [STATEMENT OF NEED AND REASONABLENESS.] 
 10.9      Before By the date of the section 14.22 notice, the agency 
 10.10  shall prepare a statement of need and reasonableness, which must 
 10.11  be available to the public.  The statement of need and 
 10.12  reasonableness must include the analysis required in section 
 10.13  14.131.  The statement must also describe the agency's efforts 
 10.14  to provide additional notification under section 14.22 to 
 10.15  persons or classes of persons who may be affected by the 
 10.16  proposed rules or must explain why these efforts were not made.  
 10.17  For at least 30 days following the notice, the agency shall 
 10.18  afford the public an opportunity to request a public hearing and 
 10.19  to submit data and views on the proposed rule in writing. 
 10.20     The agency shall send a copy of the statement of need and 
 10.21  reasonableness to the legislative reference library when it 
 10.22  becomes available to the public the notice of intent to adopt is 
 10.23  mailed.  
 10.24     Sec. 14.  Minnesota Statutes 2000, section 14.25, is 
 10.25  amended to read: 
 10.26     14.25 [PUBLIC HEARING.] 
 10.27     Subdivision 1.  [REQUESTS FOR HEARING.] If, during the 
 10.28  30-day period allowed for comment, 25 or more persons submit to 
 10.29  the agency a written request for a public hearing of the 
 10.30  proposed rule, the agency shall proceed under the provisions of 
 10.31  sections 14.14 to 14.20.  The written request must include:  (1) 
 10.32  the name and address of the person requesting the public 
 10.33  hearing; and (2) the portion or portions of the rule to which 
 10.34  the person objects or a statement that the person opposes the 
 10.35  entire rule.  If not previously published under section 14.22, 
 10.36  subdivision 2, a notice of the public hearing must be published 
 11.1   in the State Register and mailed to those persons who submitted 
 11.2   a written request for the public hearing.  Unless the agency has 
 11.3   modified the proposed rule, the notice need not include the text 
 11.4   of the proposed rule but only a citation to the State Register 
 11.5   pages where the text appears. 
 11.6      A written request for a public hearing that does not comply 
 11.7   with the requirements of this section is invalid and must may 
 11.8   not be counted by the agency for purposes of determining whether 
 11.9   a public hearing must be held. 
 11.10     Subd. 2.  [WITHDRAWAL OF HEARING REQUESTS.] If a request 
 11.11  for a public hearing has been withdrawn so as to reduce the 
 11.12  number of requests below 25, the agency must give written notice 
 11.13  of that fact to all persons who have requested the public 
 11.14  hearing.  No public hearing may be canceled by an agency within 
 11.15  three working days of the hearing.  The notice must explain why 
 11.16  the request is being withdrawn, and must include a description 
 11.17  of any action the agency has taken or will take that affected or 
 11.18  may have affected the decision to withdraw the request requests. 
 11.19  The notice must also invite persons to submit written 
 11.20  comments within five working days to the agency relating to the 
 11.21  withdrawal.  The notice and any written comments received by the 
 11.22  agency is part of the rulemaking record submitted to the 
 11.23  administrative law judge under section 14.14 or 14.26.  The 
 11.24  administrative law judge shall review the notice and any 
 11.25  comments received and determine whether the withdrawal is 
 11.26  consistent with section 14.001, clauses (2), (4), and (5). 
 11.27     This subdivision applies only to a withdrawal of a hearing 
 11.28  request that affects whether a public hearing must be held and 
 11.29  only if the agency has taken any action to obtain the withdrawal 
 11.30  of the hearing request. 
 11.31     Sec. 15.  Minnesota Statutes 2000, section 14.26, 
 11.32  subdivision 1, is amended to read: 
 11.33     Subdivision 1.  [SUBMISSION.] If no hearing is required, 
 11.34  the agency shall submit to an administrative law judge assigned 
 11.35  by the chief administrative law judge the proposed rule and 
 11.36  notice as published, the rule as proposed for adoption adopted, 
 12.1   any written comments received by the agency, and a statement of 
 12.2   need and reasonableness for the rule.  The agency shall give 
 12.3   notice to all persons who requested to be informed that these 
 12.4   materials have been submitted to the administrative law judge.  
 12.5   This notice must be given on the same day that the record is 
 12.6   submitted.  If the proposed rule has been modified, the notice 
 12.7   must state that fact, and must also state that a free copy of 
 12.8   the proposed rule, as modified, is available upon request from 
 12.9   the agency.  The rule and these materials must be submitted to 
 12.10  the administrative law judge within 180 days of the day that the 
 12.11  comment period for the rule is over or the rule is automatically 
 12.12  withdrawn.  The agency may not adopt the withdrawn rules without 
 12.13  again following the procedures of sections 14.05 to 14.28, with 
 12.14  the exception of section 14.101, if the noncompliance is 
 12.15  approved by the chief administrative law judge.  The agency 
 12.16  shall report its failure to adopt the rules and the reasons for 
 12.17  that failure to the legislative coordinating commission, other 
 12.18  appropriate legislative committees, and the governor. 
 12.19     Sec. 16.  Minnesota Statutes 2000, section 14.26, 
 12.20  subdivision 3, is amended to read: 
 12.21     Subd. 3.  [REVIEW.] (a) Within 14 days, the administrative 
 12.22  law judge shall approve or disapprove the rule as to its 
 12.23  legality and its form to the extent that the form relates to 
 12.24  legality, including the issues of whether the rule if modified 
 12.25  is substantially different, as determined under section 14.05, 
 12.26  subdivision 2, from the rule as originally proposed, whether the 
 12.27  agency has the authority to adopt the rule, and whether the 
 12.28  record demonstrates a rational basis for the need for and 
 12.29  reasonableness of the proposed rule.  If the rule is approved, 
 12.30  the administrative law judge shall promptly file three four 
 12.31  copies of it in the office of the secretary of state.  The 
 12.32  secretary of state shall forward one copy of each rule to the 
 12.33  revisor of statutes, one to the agency, and one to the 
 12.34  governor.  If the rule is disapproved, the administrative law 
 12.35  judge shall state in writing the reasons for the disapproval and 
 12.36  make recommendations to overcome the defects. 
 13.1      (b) The written disapproval must be submitted to the chief 
 13.2   administrative law judge for approval.  If the chief 
 13.3   administrative law judge approves of the findings of the 
 13.4   administrative law judge, the chief administrative law judge 
 13.5   shall send the statement of the reasons for disapproval of the 
 13.6   rule to the agency, the legislative coordinating commission, the 
 13.7   house of representatives and senate policy committees with 
 13.8   primary jurisdiction over state governmental operations, and the 
 13.9   revisor of statutes and advise the agency and the revisor of 
 13.10  statutes of actions that will correct the defects.  The rule may 
 13.11  not be filed in the office of the secretary of state, nor be 
 13.12  published, until the chief administrative law judge determines 
 13.13  that the defects have been corrected or, if applicable, that the 
 13.14  agency has satisfied the rule requirements for the adoption of a 
 13.15  substantially different rule.  
 13.16     (c) If the chief administrative law judge determines that 
 13.17  the need for or reasonableness of the rule has not been 
 13.18  established, and if the agency does not elect to follow the 
 13.19  suggested actions of the chief administrative law judge to 
 13.20  correct that defect, then the agency shall submit the proposed 
 13.21  rule to the legislative coordinating commission and to the house 
 13.22  of representatives and senate policy committees with primary 
 13.23  jurisdiction over state governmental operations for advice and 
 13.24  comment.  The agency may not adopt the rule until it has 
 13.25  received and considered the advice of the commission and 
 13.26  committees.  However, the agency is need not required to wait 
 13.27  for advice for more than 60 days after the commission and 
 13.28  committees have received the agency's submission.  
 13.29     (d) The administrative law judge shall disregard any error 
 13.30  or defect in the proceeding due to the agency's failure to 
 13.31  satisfy any procedural requirements imposed by law or rule if 
 13.32  the administrative law judge finds: 
 13.33     (1) that the failure did not deprive any person or entity 
 13.34  of an opportunity to participate meaningfully in the rulemaking 
 13.35  process; or 
 13.36     (2) that the agency has taken corrective action to cure the 
 14.1   error or defect so that the failure did not deprive any person 
 14.2   or entity of an opportunity to participate meaningfully in the 
 14.3   rulemaking process. 
 14.4      Sec. 17.  Minnesota Statutes 2000, section 14.365, is 
 14.5   amended to read: 
 14.6      14.365 [OFFICIAL RULEMAKING RECORD.] 
 14.7      The agency shall maintain the official rulemaking record 
 14.8   for every rule adopted pursuant to under sections 14.05 to 14.28 
 14.9   14.389.  The record shall must be available for public 
 14.10  inspection.  The record required by this section constitutes the 
 14.11  official and exclusive agency rulemaking record with respect to 
 14.12  agency action on or judicial review of the rule.  The 
 14.13  record shall must contain:  
 14.14     (1) copies of all publications in the State Register 
 14.15  pertaining to the rule; 
 14.16     (2) all written petitions, and all requests, submissions, 
 14.17  or comments received by the agency or the administrative law 
 14.18  judge after publication of the notice of intent to adopt or the 
 14.19  notice of hearing in the State Register pertaining to the rule; 
 14.20     (3) the statement of need and reasonableness for the rule; 
 14.21     (4) the official transcript of the hearing if one was held, 
 14.22  or the tape recording of the hearing if a transcript was not 
 14.23  prepared; 
 14.24     (5) the report of the administrative law judge, if any; 
 14.25     (6) the rule in the form last submitted to the 
 14.26  administrative law judge under sections 14.14 to 14.20 or first 
 14.27  submitted to the administrative law judge under sections 14.22 
 14.28  to 14.28; 
 14.29     (7) the administrative law judge's written statement of 
 14.30  required modifications and of approval or disapproval by the 
 14.31  chief administrative law judge, if any; 
 14.32     (8) any documents required by applicable rules of the 
 14.33  office of administrative hearings; 
 14.34     (9) the agency's order adopting the rule; 
 14.35     (10) the revisor's certificate approving the form of the 
 14.36  rule; and 
 15.1      (11) a copy of the adopted rule as filed with the secretary 
 15.2   of state.  
 15.3      Sec. 18.  Minnesota Statutes 2000, section 14.38, 
 15.4   subdivision 2, is amended to read: 
 15.5      Subd. 2.  [RETROACTIVE APPLICATION.] Every existing rule, 
 15.6   regardless of whether it might be known as a substantive, 
 15.7   procedural, or interpretive rule, shall have has the force and 
 15.8   effect of law retroactive to the date on which the rule became 
 15.9   effective if: 
 15.10     (a) (1) the rule was adopted in compliance with the 
 15.11  provisions of the Administrative Procedure Act in effect at the 
 15.12  time the rule was adopted; 
 15.13     (b) (2) the rule was approved by the attorney general or 
 15.14  the office of administrative hearings before becoming effective; 
 15.15  and 
 15.16     (c) (3) the adopting agency had statutory authority to 
 15.17  adopt the rule. 
 15.18     Sec. 19.  Minnesota Statutes 2000, section 14.386, is 
 15.19  amended to read: 
 15.20     14.386 [PROCEDURE FOR ADOPTING EXEMPT RULES; DURATION.] 
 15.21     (a) A rule adopted, amended, or repealed by an agency, 
 15.22  under a statute enacted after January 1, 1997, authorizing or 
 15.23  requiring rules to be adopted but excluded from the rulemaking 
 15.24  provisions of chapter 14 or from the definition of a rule, has 
 15.25  the force and effect of law only if: 
 15.26     (1) the revisor of statutes approves the form of the rule 
 15.27  by certificate; 
 15.28     (2) the person authorized to adopt the rule on behalf of 
 15.29  the agency signs an order adopting the rule; 
 15.30     (3) the office of administrative hearings approves the rule 
 15.31  as to its legality within 14 days after the agency submits it 
 15.32  for approval and files three four copies of the rule with the 
 15.33  revisor's certificate in the office of the secretary of state; 
 15.34  and 
 15.35     (3) (4) a copy is published by the agency in the State 
 15.36  Register. 
 16.1      The secretary of state shall forward one copy of the rule 
 16.2   to the governor. 
 16.3      A statute enacted after January 1, 1997, authorizing or 
 16.4   requiring rules to be adopted but excluded from the rulemaking 
 16.5   provisions of chapter 14 or from the definition of a rule does 
 16.6   not excuse compliance with this section unless it makes specific 
 16.7   reference to this section. 
 16.8      (b) A rule adopted under this section is effective for a 
 16.9   period of two years from the date of publication of the rule in 
 16.10  the State Register.  The authority for the rule expires at the 
 16.11  end of this two-year period. 
 16.12     (c) The chief administrative law judge shall adopt rules 
 16.13  relating to the rule approval duties imposed by this section and 
 16.14  section 14.388, including rules establishing standards for 
 16.15  review. 
 16.16     (d) This section does not apply to: 
 16.17     (1) any group or rule listed in section 14.03, subdivisions 
 16.18  1 and 3, except as otherwise provided by law; 
 16.19     (2) game and fish rules of the commissioner of natural 
 16.20  resources adopted under section 84.027, subdivision 13, or 
 16.21  sections 97A.0451 to 97A.0459; 
 16.22     (3) experimental and special management waters designated 
 16.23  by the commissioner of natural resources under sections 97C.001 
 16.24  and 97C.005; 
 16.25     (4) game refuges designated by the commissioner of natural 
 16.26  resources under section 97A.085; or 
 16.27     (5) transaction fees established by the commissioner of 
 16.28  natural resources for electronic or telephone sales of licenses, 
 16.29  stamps, permits, registrations, or transfers under section 
 16.30  84.027, subdivision 15, paragraph (a), clause (3). 
 16.31     (e) If a statute provides that a rule is exempt from 
 16.32  chapter 14, and section 14.386 does not apply to the rule, the 
 16.33  rule has the force of law unless the context of the statute 
 16.34  delegating the rulemaking authority makes clear that the rule 
 16.35  does not have force of law. 
 16.36     Sec. 20.  Minnesota Statutes 2000, section 14.388, is 
 17.1   amended to read: 
 17.2      14.388 [GOOD CAUSE EXEMPTION.] 
 17.3      If an agency for good cause finds that the rulemaking 
 17.4   provisions of this chapter are unnecessary, impracticable, or 
 17.5   contrary to the public interest when adopting, amending, or 
 17.6   repealing a rule to: 
 17.7      (1) address a serious and immediate threat to the public 
 17.8   health, safety, or welfare; 
 17.9      (2) comply with a court order or a requirement in federal 
 17.10  law in a manner that does not allow for compliance with sections 
 17.11  14.14 to 14.28; 
 17.12     (3) incorporate specific changes set forth in applicable 
 17.13  statutes when no interpretation of law is required; or 
 17.14     (4) make changes that do not alter the sense, meaning, or 
 17.15  effect of a rule, 
 17.16  the agency may adopt, amend, or repeal the rule after satisfying 
 17.17  the requirements of section 14.386, paragraph (a), clauses (1) 
 17.18  to (3).  The agency shall incorporate its findings and a brief 
 17.19  statement of its supporting reasons in its order adopting, 
 17.20  amending, or repealing the rule. 
 17.21     In review of the rule under section 14.386, The office of 
 17.22  administrative hearings shall determine whether the agency has 
 17.23  provided adequate justification for its use of this section. 
 17.24     Rules adopted, amended, or repealed under clauses (1) and 
 17.25  (2) are effective for a period of two years from the date of 
 17.26  publication of the rule in the State Register. 
 17.27     Rules adopted, amended, or repealed under clause (3) or (4) 
 17.28  are effective upon publication in the State Register. 
 17.29     Sec. 21.  [EFFECTIVE DATE.] 
 17.30     This act is effective August 1, 2001, and applies to rules 
 17.31  for which a notice under Minnesota Statutes, section 14.14, 
 17.32  subdivision 1a; or 14.22, is published in the State Register on 
 17.33  or after that date.