1.1 	A bill for an act
1.2 	relating to state government; providing for disposition of contested case hearings 
1.3 	by the Office of Administrative Hearings; amending Minnesota Statutes 2010, 
1.4 	section 14.57.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 14.57, is amended to read:
1.7 	14.57 INITIATION; DECISION; AGREEMENT TO ARBITRATE.
1.8 	(a) An agency shall initiate a contested case proceeding when one is required by law. 
1.9 	Unless otherwise provided by law, An agency shall decide submit  a contested case only to 
1.10 	the Office of Administrative Hearings for disposition in accordance with the contested 
1.11 	case procedures of the Administrative Procedure Act. Upon initiation of a contested case 
1.12 	proceeding, an agency may, by order, provide that the report or order of the administrative 
1.13 	law judge constitutes the final decision in the case.
1.14 	(b) As an alternative to initiating or continuing with a contested case proceeding, the 
1.15 	parties, subsequent to agency approval, may enter into a written agreement to submit the 
1.16 	issues raised to arbitration by an administrative law judge according to sections 572.08
1.17 	to 572.30. 

1.18 	Sec. 2. REVISOR'S INSTRUCTION.
 1.19 	By January 15, 2012, the revisor of statutes shall present a bill to the legislature to 
1.20 	make the conforming statutory changes to incorporate the contested case procedures 
1.21 	under section 1.