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      Subdivision 1.  [REQUEST AND PREPARATION.] The elected 
  1.10  governing body of a statutory or home rule city, township, 
  1.11  county, school district, or sanitary district may request the 
  1.12  commissioner of finance to prepare a local fiscal impact and 
  1.13  fiscal benefit note on a rule proposed by a state agency.  The 
  1.14  request must be made by submitting a resolution of the governing 
  1.15  body to the commissioner of finance at least ten days before a 
  1.16  public hearing on a proposed rule is held or, if the agency 
  1.17  intends to adopt the rule without a public hearing, at least ten 
  1.18  days before the deadline for requesting a public hearing.  Upon 
  1.19  receipt of a request, the commissioner of finance must prepare 
  1.20  an estimate of the fiscal impact and fiscal benefit of the rule 
  1.21  on each category of political subdivision requesting a local 
  1.22  impact note.  In assessing the fiscal benefit of the rule, the 
  1.23  commissioner shall consider the fiscal impact on the political 
  1.24  subdivision requesting the local impact note if the rule is not 
  1.25  adopted.  The commissioner may require any political subdivision 
  1.26  or state agency to supply information necessary for the 
  2.1   commissioner to determine fiscal impact and fiscal benefit.  
  2.2   Relevant information submitted by a political subdivision, 
  2.3   whether or not requested by the commissioner, must be considered 
  2.4   by the commissioner and commented on in the local fiscal impact 
  2.5   and fiscal benefit note.  The commissioner must prepare the 
  2.6   local fiscal impact and fiscal benefit note before the close of 
  2.7   the hearing record or, if there is no public hearing, before the 
  2.8   agency submits the record to the administrative law judge. 
  2.9      Subd. 2.  [FEE.] The commissioner of finance may bill the 
  2.10  political subdivision requesting the local fiscal impact and 
  2.11  fiscal benefit note up to $35 per hour for time spent preparing 
  2.12  the note.  Upon receiving a request for a note from a political 
  2.13  subdivision, the commissioner must give the political 
  2.14  subdivision an estimate of the fee that the commissioner will 
  2.15  charge.  The political subdivision may withdraw the request for 
  2.16  the note.  Upon completion of the note, the requesting political 
  2.17  subdivision must pay the fee in the time and manner requested by 
  2.18  the commissioner of finance.  Fees collected under this 
  2.19  subdivision must be deposited in the general fund. 
  2.20     Sec. 2.  [14.127] [LEGISLATIVE APPROVAL REQUIRED.] 
  2.21     An agency must determine if the initial or yearly net cost 
  2.22  of complying with proposed rules for any one person or entity 
  2.23  will exceed $10,000.  An agency must make this determination 
  2.24  before the close of the hearing record, or before the agency 
  2.25  submits the record to the administrative law judge if there is 
  2.26  no hearing.  If the agency determines that the initial or yearly 
  2.27  net cost for any one person or entity will exceed $10,000, the 
  2.28  rules may not take effect until the rules are approved by a law 
  2.29  enacted after the agency determination.  The administrative law 
  2.30  judge must review and approve the agency's determination under 
  2.31  this section.  If the administrative law judge does not approve 
  2.32  the agency's determination, the rules may not take effect until 
  2.33  the rules are approved by a law enacted after the agency 
  2.34  determination.  This section does not apply if: 
  2.35     (1) the legislature has appropriated money to sufficiently 
  2.36  fund the expected cost of the rule upon the public proposed to 
  3.1   be regulated by the rule; 
  3.2      (2) the rule has been proposed pursuant to a specific 
  3.3   federal statutory or regulatory mandate; or 
  3.4      (3) the rule is adopted under section 14.388 or under 
  3.5   another law specifying that the rulemaking procedures of chapter 
  3.6   14 do not apply.  
  3.7      For purposes of this section, "net cost" means the cost to 
  3.8   all affected persons or entities minus the fiscal benefit of the 
  3.9   proposed rule to all affected persons or entities, even if those 
  3.10  affected persons or entities are not identical. 
  3.11     Sec. 3.  [EFFECTIVE DATE.] 
  3.12     Sections 1 and 2 are effective the day following final 
  3.13  enactment.  These sections apply to any rule for which the 
  3.14  hearing record has not closed before that date, or if there is 
  3.15  no public hearing, for which the agency has not submitted the 
  3.16  record to the administrative law judge before that date.