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, township, county, school district, or sanitary district 
  1.11  may request the commissioner of finance to prepare a local 
  1.12  fiscal impact and fiscal benefit note on a rule proposed by a 
  1.13  state agency.  The request must be made by submitting a 
  1.14  resolution of the governing body to the commissioner of finance 
  1.15  at least ten days before a public hearing on a proposed rule is 
  1.16  held or, if the agency intends to adopt the rule without a 
  1.17  public hearing, at least ten days before the deadline for 
  1.18  requesting a public hearing.  Upon receipt of a request, the 
  1.19  commissioner of finance must prepare an estimate of the fiscal 
  1.20  impact and fiscal benefit of the rule on each category of 
  1.21  political subdivision requesting a local impact note.  The 
  1.22  commissioner may require any political subdivision or state 
  1.23  agency to supply information necessary for the commissioner to 
  1.24  determine fiscal impact and fiscal benefit.  Relevant 
  1.25  information submitted by a political subdivision, whether or not 
  1.26  requested by the commissioner, must be considered by the 
  2.1   commissioner and commented on in the local fiscal impact and 
  2.2   fiscal benefit note.  The commissioner must prepare the local 
  2.3   fiscal impact and fiscal benefit note before the close of the 
  2.4   hearing record or, if there is no public hearing, before the 
  2.5   agency submits the record to the administrative law judge. 
  2.6      Sec. 2.  [14.127] [LEGISLATIVE APPROVAL REQUIRED.] 
  2.7      An agency must determine if the initial or yearly net cost 
  2.8   of complying with proposed rules for any one person or entity 
  2.9   will exceed $10,000.  An agency must make this determination 
  2.10  before the close of the hearing record, or before the agency 
  2.11  submits the record to the administrative law judge if there is 
  2.12  no hearing.  If the agency determines that the initial or yearly 
  2.13  net cost for any one person or entity will exceed $10,000, the 
  2.14  rules may not take effect until the rules are approved by a law 
  2.15  enacted after the agency determination.  The administrative law 
  2.16  judge must review and approve the agency's determination under 
  2.17  this section.  If the administrative law judge does not approve 
  2.18  the agency's determination, the rules may not take effect until 
  2.19  the rules are approved by a law enacted after the agency 
  2.20  determination.  This section does not apply if: 
  2.21     (1) the legislature has appropriated money to sufficiently 
  2.22  fund the expected cost of the rule upon the public proposed to 
  2.23  be regulated by the rule; 
  2.24     (2) the rule has been proposed pursuant to a specific 
  2.25  federal statutory or regulatory mandate; or 
  2.26     (3) the rule is adopted under section 14.388 or under 
  2.27  another law specifying that the rulemaking procedures of chapter 
  2.28  14 do not apply.  
  2.29     For purposes of this section, "net cost" means the cost to 
  2.30  the affected persons or entities minus the fiscal benefit of the 
  2.31  proposed rule to affected persons or entities. 
  2.32     Sec. 3.  [EFFECTIVE DATE.] 
  2.33     Sections 1 and 2 are effective the day following final 
  2.34  enactment.  These sections apply to any rule for which the 
  2.35  hearing record has not closed before that date, or if there is 
  2.36  no public hearing, for which the agency has not submitted the 
  3.1   record to the administrative law judge before that date.