Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 188--H.F.No. 491
           An act relating to administrative rulemaking; 
          providing for consideration of and participation by 
          small business; proposing new law coded in Minnesota 
          Statutes, chapter 14. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [14.115] [SMALL BUSINESS CONSIDERATIONS IN 
RULEMAKING.] 
    Subdivision 1.  [DEFINITION.] For purposes of this section, 
"small business" means a business entity, including its 
affiliates, that (a) is independently owned and operated; (b) is 
not dominant in its field; and (c) employs fewer than 50 
full-time employees or has gross annual sales of less than 
$4,000,000.  For purposes of a specific rule, an agency may 
define small business to include more employees if necessary to 
adapt the rule to the needs and problems of small businesses.  
     Subd. 2.  [IMPACT ON SMALL BUSINESS.] When an agency 
proposes a new rule, or an amendment to an existing rule, which 
may affect small businesses as defined by this section, the 
agency shall consider each of the following methods for reducing 
the impact of the rule on small businesses:  
     (a) the establishment of less stringent compliance or 
reporting requirements for small businesses;  
     (b) the establishment of less stringent schedules or 
deadlines for compliance or reporting requirements for small 
businesses;  
     (c) the consolidation or simplification of compliance or 
reporting requirements for small businesses;  
     (d) the establishment of performance standards for small 
businesses to replace design or operational standards required 
in the rule; and 
    (e) the exemption of small businesses from any or all 
requirements of the rule.  
    In its statement of need and reasonableness, the agency 
shall document how it has considered these methods and the 
results.  
    Subd. 3.  [FEASIBILITY.] The agency shall incorporate into 
the proposed rule or amendment any of the methods specified 
under subdivision 2 that it finds to be feasible, unless doing 
so would be contrary to the statutory objectives that are the 
basis of the proposed rulemaking.  
    Subd. 4.  [SMALL BUSINESS PARTICIPATION IN RULEMAKING.] In 
addition to the requirements under section 14.14, the agency 
shall provide an opportunity for small businesses to participate 
in the rulemaking process, utilizing one or more of the 
following methods:  
    (a) the inclusion in any advance notice of proposed 
rulemaking of a statement that the rule will have an impact on 
small businesses which shall include a description of the 
probable quantitative and qualitative impact of the proposed 
rule, economic or otherwise, upon affected classes of persons; 
or 
    (b) the publication of a notice of the proposed rulemaking 
in publications likely to be obtained by small businesses that 
would be affected by the rule; or 
    (c) the direct notification of any small business that may 
be affected by the rule; or 
    (d) the conduct of public hearings concerning the impact of 
the rule on small businesses.  
     Subd. 5.  [COMPLIANCE.] If a hearing examiner or the 
attorney general finds that an agency has failed to comply with 
subdivisions 1 to 4 of this section the rules shall not be 
adopted.  
    Subd. 6.  [AGENCY REVIEW OF RULES.] Each agency shall, 
during the five-year period beginning with the effective date of 
this section, review the current rules of the agency which were 
in effect prior to that date and shall consider methods of 
reducing their impact on small businesses as provided under 
subdivision 2.  If a method appears feasible, the agency shall 
propose an amendment to the rule.  No review is necessary for a 
rule that is repealed during the five-year period.  This 
subdivision shall not apply to rules governing licensure of 
occupations listed in section 116J.70, subdivision 2a, clause 
(3), paragraphs (a) through (pp).  
    Subd. 7.  [APPLICABILITY.] This section does not apply to:  
    (a) temporary rules adopted under sections 14.29 to 14.36;  
    (b) agency rules that do not affect small businesses 
directly, including, but not limited to, rules relating to 
county or municipal administration of state and federal programs;
    (c) service businesses regulated by government bodies, for 
standards and costs, such as nursing homes, long-term care 
facilities, hospitals, providers of medical care, day care 
centers, group homes, and residential care facilities; and 
    (d) agency rules adopted under section 16.085.  
    Subd. 8.  [LCRAR REVIEW.] The legislative commission to 
review administrative rules shall review the implementation of 
section 1, and shall include in the biennial report required by 
section 14.40 a report on the implementation of section 1. 
    Approved May 19, 1983