HF 1537

as introduced - 89th Legislature (2015 - 2016) Posted on 03/09/2015 01:45pm

A bill for an act
relating to state government; regulating agency rulemaking; permitting the use of
electronic notices and documents; amending Minnesota Statutes 2014, sections
14.05, by adding a subdivision; 14.07, subdivision 6; 14.08; 14.116; 14.131;
14.14, subdivision 1a; 14.16, subdivision 3; 14.22, subdivision 1; 14.23; 14.25,
subdivision 1; 14.26, subdivision 3, by adding a subdivision; 14.386; 14.389,
subdivision 2; 14.3895, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 14.05, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Electronic notices and documents permitted. new text end

new text begin If sections 14.05 to
14.389 require an agency to provide notice or documents to the public, the legislature,
or another state agency, the agency may send the notice or document, or a link to the
notice or document, using any reliable method of electronic transmission. An agency may
file rule-related documents with the Office of Administrative Hearings by electronic
transmission in the manner approved by that office and the Office of the Revisor of
Statutes by electronic transmission in the manner approved by that office.
new text end

Sec. 2.

Minnesota Statutes 2014, section 14.07, subdivision 6, is amended to read:

Subd. 6.

Style and form revisions.

The revisor of statutes may periodically
prepare style and form revisions of rules to clarify, modernize, or simplify the text without
material change to the rules' substance or effect. Before beginning any revision, the
revisor shall consult the agency whose rules will be subject to the revision. After the
revision is prepared, the revisor shall present it to the agency and receive its consent to
proceed to seek adoption of the revision. Upon receiving consent, the revisor shall seek
adoption of the rules in accordance with sections 14.05 to 14.28. However, the need and
reasonableness statement and any hearing shall be restricted to the issue of whether any
material change in the substance and effect of the rule is proposed by the revisor. The
revisor shall deleted text begin mail deleted text end new text begin send new text end notice by United States mail or electronic mail of any hearing to the
persons registered with the agency whose rules are the subject of the revision. The revisor
shall pay all costs to publish notices in the State Register and to replenish the agency's
stock of rules which exist at the time the revisor adopts the revised rules.

Sec. 3.

Minnesota Statutes 2014, section 14.08, is amended to read:

14.08 APPROVAL OF RULE AND RULE FORM; COSTS.

(a) One copy of a rule adopted under section 14.26 must be submitted by the agency
to the chief administrative law judge. The chief administrative law judge shall request
from the revisor certified copies of the rule when it is submitted by the agency under
section 14.26. Within five days after the request for certification of the rule is received by
the revisor, excluding weekends and holidays, the revisor shall either return the rule with
a certificate of approval of the form of the rule to the chief administrative law judge or
notify the chief administrative law judge and the agency that the form of the rule will not
be approved.

If the chief administrative law judge disapproves a rule, the agency may modify it
and the agency shall submit one copy of the modified rule, approved as to form by the
revisor, to the chief administrative law judge.

(b) One copy of a rule adopted after a public hearing must be submitted by the
agency to the chief administrative law judge. The chief administrative law judge shall
request from the revisor certified copies of the rule when it is submitted by the agency.
Within five working days after receipt of the request, the revisor shall either return the
rule with a certificate of approval to the chief administrative law judge or notify the chief
administrative law judge and the agency that the form of the rule will not be approved.

(c) If the revisor refuses to approve the form of the rule, the revisor's notice must
revise the rule so it is in the correct form.

new text begin (d) After the agency has notified the chief administrative law judge that it has
adopted the rule, the chief administrative law judge shall promptly file four paper copies
or an electronic copy of the adopted rule in the Office of the Secretary of State. The
secretary of state shall forward one copy of each rule filed to the agency, to the revisor
of statutes, and to the governor.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The chief administrative law judge shall assess an agency for the actual cost
of processing rules under this section. Each agency shall include in its budget money to
pay the assessments. Receipts from the assessment must be deposited in the administrative
hearings account established in section 14.54.

Sec. 4.

Minnesota Statutes 2014, section 14.116, is amended to read:

14.116 NOTICE TO LEGISLATURE.

(a) By January 15 each year, each agency must submit its rulemaking docket
maintained under section 14.366, and the official rulemaking record required under section
14.365 for any rule adopted during the preceding calendar year, to the chairs and ranking
minority members of the legislative policy and budget committees with jurisdiction over
the subject matter of the proposed rule.

(b) When an agency deleted text begin mails deleted text end new text begin sends new text end notice of intent to adopt rules under section 14.14
or 14.22, the agency must send a copy of the same notice and a copy of the statement
of need and reasonableness to the chairs and ranking minority party members of the
legislative policy and budget committees with jurisdiction over the subject matter of the
proposed rules and to the Legislative Coordinating Commission.

(c) In addition, if the deleted text begin mailing deleted text end new text begin sending new text end of the notice is within two years of the
effective date of the law granting the agency authority to adopt the proposed rules, the
agency shall make reasonable efforts to send a copy of the notice and the statement to
all sitting legislators who were chief house of representatives and senate authors of the
bill granting the rulemaking authority. If the bill was amended to include this rulemaking
authority, the agency shall make reasonable efforts to send the notice and the statement
to the chief house of representatives and senate authors of the amendment granting
rulemaking authority, rather than to the chief authors of the bill.

Sec. 5.

Minnesota Statutes 2014, section 14.131, is amended to read:

14.131 STATEMENT OF NEED AND REASONABLENESS.

By the date of the section 14.14, subdivision 1a, notice, the agency must
prepare, review, and make available for public review a statement of the need for and
reasonableness of the rule. The statement of need and reasonableness must be prepared
under rules adopted by the chief administrative law judge and must include the following
to the extent the agency, through reasonable effort, can ascertain this information:

(1) a description of the classes of persons who probably will be affected by the
proposed rule, including classes that will bear the costs of the proposed rule and classes
that will benefit from the proposed rule;

(2) the probable costs to the agency and to any other agency of the implementation
and enforcement of the proposed rule and any anticipated effect on state revenues;

(3) a determination of whether there are less costly methods or less intrusive
methods for achieving the purpose of the proposed rule;

(4) a description of any alternative methods for achieving the purpose of the
proposed rule that were seriously considered by the agency and the reasons why they
were rejected in favor of the proposed rule;

(5) the probable costs of complying with the proposed rule, including the portion
of the total costs that will be borne by identifiable categories of affected parties, such as
separate classes of governmental units, businesses, or individuals;

(6) the probable costs or consequences of not adopting the proposed rule, including
those costs or consequences borne by identifiable categories of affected parties, such as
separate classes of government units, businesses, or individuals;

(7) an assessment of any differences between the proposed rule and existing federal
regulations and a specific analysis of the need for and reasonableness of each difference; and

(8) an assessment of the cumulative effect of the rule with other federal and state
regulations related to the specific purpose of the rule.

The statement must describe how the agency, in developing the rules, considered
and implemented the legislative policy supporting performance-based regulatory systems
set forth in section 14.002.

For purposes of clause (8), "cumulative effect" means the impact that results from
incremental impact of the proposed rule in addition to other rules, regardless of what
state or federal agency has adopted the other rules. Cumulative effects can result from
individually minor but collectively significant rules adopted over a period of time.

The statement must also describe the agency's efforts to provide additional
notification under section 14.14, subdivision 1a, to persons or classes of persons who may
be affected by the proposed rule or must explain why these efforts were not made.

The agency must consult with the commissioner of management and budget to
help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
government. The agency must send a copy of the statement of need and reasonableness
to the Legislative Reference Library when the notice of hearing is deleted text begin mailed deleted text end new text begin sent new text end under
section 14.14, subdivision 1a.

Sec. 6.

Minnesota Statutes 2014, section 14.14, subdivision 1a, is amended to read:

Subd. 1a.

Notice of rule hearing.

(a) Each agency shall maintain a list of all persons
who have registered with the agency for the purpose of receiving notice of rule proceedings.
Persons may register to receive notice of rule proceedings by submitting to the agency:

(1) their electronic mail address; or

(2) their name and United States mail address.

The agency may inquire as to whether those persons on the list wish to remain on it and
may remove persons for whom there is a negative reply or no reply within 60 days. The
agency shall, at least 30 days before the date set for the hearing, give notice of its intention
to adopt rules by United States mail or electronic mail to all persons on its list, and by
publication in the State Register. The deleted text begin mailed deleted text end notice must include either a copy of the
proposed rule or an easily readable and understandable description of its nature and effect
and an announcement that a free copy of the proposed rule is available on request from
the agency. In addition, each agency shall make reasonable efforts to notify persons or
classes of persons who may be significantly affected by the rule being proposed by giving
notice of its intention in newsletters, newspapers, or other publications, or through other
means of communication. The notice in the State Register must include the proposed rule
or an amended rule in the form required by the revisor under section 14.07, together with
an easily readable and understandable summary of the overall nature and effect of the
proposed rule, a citation to the most specific statutory authority for the proposed rule, a
statement of the place, date, and time of the public hearing, a statement that persons may
register with the agency for the purpose of receiving notice of rule proceedings and notice
that the agency intends to adopt a rule and other information required by law or rule.
When an entire rule is proposed to be repealed, the agency need only publish that fact,
along with an easily readable and understandable summary of the overall nature of the
rules proposed for repeal, and a citation to the rule to be repealed.

(b) The chief administrative law judge may authorize an agency to omit from the
notice of rule hearing the text of any proposed rule, the publication of which would be
unduly cumbersome, expensive, or otherwise inexpedient if:

(1) knowledge of the rule is likely to be important to only a small class of persons;

(2) the notice of rule hearing states that a free copy of the entire rule is available
upon request to the agency; and

(3) the notice of rule hearing states in detail the specific subject matter of the omitted
rule, cites the statutory authority for the proposed rule, and details the proposed rule's
purpose and motivation.

Sec. 7.

Minnesota Statutes 2014, section 14.16, subdivision 3, is amended to read:

Subd. 3.

Filing.

After the agency has deleted text begin adopted deleted text end new text begin provided the chief administrative law
judge with a signed order adopting new text end the rule, the deleted text begin agency deleted text end new text begin chief administrative law judge new text end
shall promptly file deleted text begin three deleted text end new text begin four paper new text end copies new text begin or an electronic copy new text end of deleted text begin it deleted text end new text begin the adopted rule new text end in
the Office of the Secretary of State. The secretary of state shall forward one copy of each
rule filed new text begin to the agency, new text end to the revisor of statutes new text begin , new text end and to the governor.

Sec. 8.

Minnesota Statutes 2014, section 14.22, subdivision 1, is amended to read:

Subdivision 1.

Contents.

(a) Unless an agency proceeds directly to a public hearing
on a proposed rule and gives the notice prescribed in section 14.14, subdivision 1a, the
agency shall give notice of its intention to adopt a rule without public hearing. The
notice must be given by publication in the State Register and by United States mail or
electronic mail to persons who have registered their names with the agency under section
14.14, subdivision 1a. The deleted text begin mailed deleted text end notice must include either a copy of the proposed
rule or an easily readable and understandable description of its nature and effect and
an announcement that a free copy of the proposed rule is available on request from the
agency. In addition, each agency shall make reasonable efforts to notify persons or classes
of persons who may be significantly affected by the rule by giving notice of its intention in
newsletters, newspapers, or other publications, or through other means of communication.
The notice in the State Register must include the proposed rule or the amended rule in the
form required by the revisor under section 14.07, an easily readable and understandable
summary of the overall nature and effect of the proposed rule, a citation to the most
specific statutory authority for the proposed rule, a statement that persons may register
with the agency for the purpose of receiving notice of rule proceedings and notice that a
rule has been submitted to the chief administrative law judge, and other information
required by law or rule. When an entire rule is proposed to be repealed, the notice need
only state that fact, along with an easily readable and understandable summary of the
overall nature of the rules proposed for repeal, and a citation to the rule to be repealed.
The notice must include a statement advising the public:

(1) that the public has 30 days in which to submit comment in support of or in
opposition to the proposed rule and that comment is encouraged;

(2) that each comment should identify the portion of the proposed rule addressed,
the reason for the comment, and any change proposed;

(3) that if 25 or more persons submit a written request for a public hearing within
the 30-day comment period, a public hearing will be held;

(4) of the manner in which persons must request a public hearing on the proposed rule;

(5) of the requirements contained in section 14.25 relating to a written request for a
public hearing, and that the requester is encouraged to propose any change desired;

(6) that the proposed rule may be modified if the modifications are supported by
the data and views submitted; and

(7) that if a hearing is not required, notice of the date of submission of the proposed
rule to the chief administrative law judge for review will be mailed to any person
requesting to receive the notice.

In connection with the statements required in clauses (1) and (3), the notice must
also include the date on which the 30-day comment period ends.

(b) The chief administrative law judge may authorize an agency to omit from the
notice of intent to adopt the text of any proposed rule, the publication of which would be
unduly cumbersome, expensive, or otherwise inexpedient if:

(1) knowledge of the rule is likely to be important to only a small class of persons;

(2) the notice of intent to adopt states that a free copy of the entire rule is available
upon request to the agency; and

(3) the notice of intent to adopt states in detail the specific subject matter of the
omitted rule, cites the statutory authority for the proposed rule, and details the proposed
rule's purpose and motivation.

Sec. 9.

Minnesota Statutes 2014, section 14.23, is amended to read:

14.23 STATEMENT OF NEED AND REASONABLENESS.

By the date of the section 14.22 notice, the agency shall prepare a statement of
need and reasonableness, which must be available to the public. The statement of need
and reasonableness must include the analysis required in section 14.131. The statement
must also describe the agency's efforts to provide additional notification under section
14.22 to persons or classes of persons who may be affected by the proposed rules or must
explain why these efforts were not made. For at least 30 days following the notice, the
agency shall afford the public an opportunity to request a public hearing and to submit
data and views on the proposed rule in writing.

The agency shall send a copy of the statement of need and reasonableness to the
Legislative Reference Library when the notice of intent to adopt is deleted text begin mailed deleted text end new text begin sent new text end .

Sec. 10.

Minnesota Statutes 2014, section 14.25, subdivision 1, is amended to read:

Subdivision 1.

Requests for hearing.

If, during the 30-day period allowed for
comment, 25 or more persons submit to the agency a written request for a public hearing of
the proposed rule, the agency shall proceed under the provisions of sections 14.14 to 14.20.
The written request must include: (1) the name and address of the person requesting the
public hearing; and (2) the portion or portions of the rule to which the person objects or a
statement that the person opposes the entire rule. If not previously published under section
14.22, subdivision 2, a notice of the public hearing must be published in the State Register
and deleted text begin mailed deleted text end new text begin sent new text end to those persons who submitted a written request for the public hearing.
Unless the agency has modified the proposed rule, the notice need not include the text of
the proposed rule but only a citation to the State Register pages where the text appears.

A written request for a public hearing that does not comply with the requirements of
this section is invalid and may not be counted by the agency for purposes of determining
whether a public hearing must be held.

Sec. 11.

Minnesota Statutes 2014, section 14.26, subdivision 3, is amended to read:

Subd. 3.

Review.

(a) Within 14 days, the administrative law judge shall approve
or disapprove the rule as to its legality and its form to the extent that the form relates to
legality, including the issues of whether the rule if modified is substantially different, as
determined under section 14.05, subdivision 2, from the rule as originally proposed,
whether the agency has the authority to adopt the rule, and whether the record demonstrates
a rational basis for the need for and reasonableness of the proposed rule. If the rule is
approved, the administrative law judge shall promptly file four new text begin paper new text end copies new text begin or an electronic
copy new text end of deleted text begin it deleted text end new text begin the adopted rule new text end in the Office of the Secretary of State. The secretary of state
shall forward one copy of each rule to the revisor of statutes, deleted text begin one deleted text end to the agency, and deleted text begin one deleted text end to
the governor. If the rule is disapproved, the administrative law judge shall state in writing
the reasons for the disapproval and make recommendations to overcome the defects.

(b) The written disapproval must be submitted to the chief administrative law
judge for approval. If the chief administrative law judge approves of the findings of the
administrative law judge, the chief administrative law judge shall send the statement of the
reasons for disapproval of the rule to the agency, the Legislative Coordinating Commission,
the house of representatives and senate policy committees with primary jurisdiction over
state governmental operations, and the revisor of statutes and advise the agency and the
revisor of statutes of actions that will correct the defects. The rule may not be filed in the
Office of the Secretary of State, nor be published, until the chief administrative law judge
determines that the defects have been corrected or, if applicable, that the agency has
satisfied the rule requirements for the adoption of a substantially different rule.

(c) If the chief administrative law judge determines that the need for or
reasonableness of the rule has not been established, and if the agency does not elect
to follow the suggested actions of the chief administrative law judge to correct that
defect, then the agency shall submit the proposed rule to the Legislative Coordinating
Commission and to the house of representatives and senate policy committees with
primary jurisdiction over state governmental operations for advice and comment. The
agency may not adopt the rule until it has received and considered the advice of the
commission and committees. However, the agency need not wait for advice for more than
60 days after the commission and committees have received the agency's submission.

(d) The administrative law judge shall disregard any error or defect in the proceeding
due to the agency's failure to satisfy any procedural requirements imposed by law or
rule if the administrative law judge finds:

(1) that the failure did not deprive any person or entity of an opportunity to
participate meaningfully in the rulemaking process; or

(2) that the agency has taken corrective action to cure the error or defect so that the
failure did not deprive any person or entity of an opportunity to participate meaningfully
in the rulemaking process.

Sec. 12.

Minnesota Statutes 2014, section 14.26, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Filing. new text end

new text begin If the rule is approved, the administrative law judge shall promptly
file four paper copies or an electronic copy of the adopted rule in the Office of the
Secretary of State. The secretary of state shall forward one copy of each rule to the revisor
of statutes, to the agency, and to the governor.
new text end

Sec. 13.

Minnesota Statutes 2014, section 14.386, is amended to read:

14.386 PROCEDURE FOR ADOPTING EXEMPT RULES; DURATION.

(a) A rule adopted, amended, or repealed by an agency, under a statute enacted
after January 1, 1997, authorizing or requiring rules to be adopted but excluded from
the rulemaking provisions of chapter 14 or from the definition of a rule, has the force
and effect of law only if:

(1) the revisor of statutes approves the form of the rule by certificate;

(2) the person authorized to adopt the rule on behalf of the agency signs an order
adopting the rule;

(3) the Office of Administrative Hearings approves the rule as to its legality within
14 days after the agency submits it for approval and files four new text begin paper new text end copies new text begin or an electronic
copy new text end of the new text begin adopted new text end rule with the revisor's certificate in the Office of the Secretary of
State; and

(4) a copy is published by the agency in the State Register.

The secretary of state shall forward one copy of the rule to the governor.

A statute enacted after January 1, 1997, authorizing or requiring rules to be adopted
but excluded from the rulemaking provisions of chapter 14 or from the definition of a
rule does not excuse compliance with this section unless it makes specific reference to
this section.

(b) A rule adopted under this section is effective for a period of two years from the
date of publication of the rule in the State Register. The authority for the rule expires at
the end of this two-year period.

(c) The chief administrative law judge shall adopt rules relating to the rule approval
duties imposed by this section and section 14.388, including rules establishing standards
for review.

(d) This section does not apply to:

(1) any group or rule listed in section 14.03, subdivisions 1 and 3, except as
otherwise provided by law;

(2) game and fish rules of the commissioner of natural resources adopted under
section 84.027, subdivision 13, or sections 97A.0451 to 97A.0459;

(3) experimental and special management waters designated by the commissioner of
natural resources under sections 97C.001 and 97C.005;

(4) game refuges designated by the commissioner of natural resources under section
97A.085; or

(5) transaction fees established by the commissioner of natural resources for
electronic or telephone sales of licenses, stamps, permits, registrations, or transfers under
section 84.027, subdivision 15, paragraph (a), clause (3).

(e) If a statute provides that a rule is exempt from chapter 14, and section 14.386
does not apply to the rule, the rule has the force of law unless the context of the statute
delegating the rulemaking authority makes clear that the rule does not have force of law.

Sec. 14.

Minnesota Statutes 2014, section 14.389, subdivision 2, is amended to read:

Subd. 2.

Notice and comment.

The agency must publish notice of the proposed
rule in the State Register and must deleted text begin mail deleted text end new text begin send new text end the notice by United States mail or electronic
mail to persons who have registered with the agency to receive deleted text begin mailed deleted text end notices. The deleted text begin mailed deleted text end
notice must include either a copy of the proposed rule or a description of the nature and
effect of the proposed rule and a statement that a free copy is available from the agency
upon request. The notice in the State Register must include the proposed rule or the
amended rule in the form required by the revisor under section 14.07, an easily readable
and understandable summary of the overall nature and effect of the proposed rule, and a
citation to the most specific statutory authority for the rule, including authority for the
rule to be adopted under the process in this section. The agency must allow 30 days after
publication in the State Register for comment on the rule.

Sec. 15.

Minnesota Statutes 2014, section 14.3895, subdivision 3, is amended to read:

Subd. 3.

Notice and comment.

The agency shall publish notice of the proposed rule
repeal in the State Register. The agency shall also deleted text begin mail deleted text end new text begin send new text end the notice by United States
mail or electronic mail to persons who have registered with the agency to receive deleted text begin mailed deleted text end
notices and to the chairs and ranking minority party members of the legislative policy and
budget committees with jurisdiction over the subject matter of the proposed rule repeal.
The agency shall also give notice according to the notice plan approved under subdivision
2. The deleted text begin mailed deleted text end notice must include either a copy of the rule proposed for repeal or a
description of the nature and effect of the proposed rule repeal and a statement that a free
copy is available from the agency upon request. The notice must include a statement that, if
25 or more people submit a written request, the agency will have to meet the requirements
of sections 14.131 to 14.20 for rules adopted after a hearing or the requirements of sections
14.22 to 14.28 for rules adopted without a hearing, including the preparation of a statement
of need and reasonableness and the opportunity for a hearing. The agency shall allow 60
days after publication in the State Register for comment on the proposed rule repeal.

Sec. 16. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin This act is effective August 1, 2015, and applies to: (1) a rule for which a notice
of intent to adopt a rule without a public hearing, a notice of hearing, a dual notice, or a
notice of the proposed rule repeal is published in the State Register on or after that date; or
(2) an exempt rule adopted on or after that date.
new text end