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1997 Minnesota Session Laws

Key: (1) language to be deleted (2) new language

                             CHAPTER 98-S.F.No. 351 
                  An act relating to administrative rules; assigning 
                  responsibility for legislative review of 
                  administrative rules to the legislative coordinating 
                  commission; abolishing authority to suspend rules 
                  without enactment of a statute; amending Minnesota 
                  Statutes 1996, sections 3.841; 3.842, subdivisions 2 
                  and 4a; 3.843; 14.05, subdivision 5; 14.131; 14.14, 
                  subdivision 1a; 14.15, subdivision 4; 14.18, 
                  subdivision 1; 14.19; 14.22, subdivision 1; 14.225; 
                  14.23; 14.26, subdivisions 1 and 3; and 14.47, 
                  subdivision 6; repealing Minnesota Statutes 1996, 
                  sections 3.842, subdivisions 4, 5, 6, and 7; 3.844; 
                  3.845; and 15.065. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 3.841, is 
        amended to read: 
           3.841 [LEGISLATIVE COORDINATING COMMISSION TO REVIEW 
        ADMINISTRATIVE RULES; COMPOSITION; MEETINGS.] 
           A For purposes of sections 3.842 and 3.843, "commission" 
        means the legislative coordinating commission to review 
        administrative rules, consisting of five senators appointed by 
        the subcommittee on committees of the committee on rules and 
        administration of the senate and five representatives appointed 
        by the speaker of the house of representatives shall be 
        appointed within 30 days after the convening of the legislative 
        session.  Its members must include the chair or the chair's 
        designee of the committees in each body having jurisdiction over 
        administrative rules.  The commission shall meet at the call of 
        its chair or upon a call signed by two of its members or signed 
        by five members of the legislature.  The office of chair of the 
        legislative commission shall alternate between the two houses of 
        the legislature every two years or a legislative commission or 
        subcommittee established by the coordinating commission under 
        section 3.305, subdivision 6, to exercise the powers and 
        discharge the duties of the coordinating commission under 
        sections 3.842 and 3.843 or other law requiring action by the 
        coordinating commission on matters relating to administrative 
        rules. 
           Sec. 2.  Minnesota Statutes 1996, section 3.842, 
        subdivision 2, is amended to read: 
           Subd. 2.  [JURISDICTION.] The jurisdiction of the 
        commission includes all rules as defined in section 14.02, 
        subdivision 4.  The commission also has jurisdiction of rules 
        which are filed with the secretary of state in accordance with 
        sections 14.38, subdivisions 5, 6, 7, 8, 9, and 11; 14.386; and 
        14.388.  
           The commission may periodically review statutory exemptions 
        to the rulemaking provisions of this chapter.  
           Sec. 3.  Minnesota Statutes 1996, section 3.842, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [OBJECTIONS TO RULES.] (a) If the legislative 
        commission to review administrative rules objects to all or some 
        portion of a rule because the commission considers it to be 
        beyond the procedural or substantive authority delegated to the 
        agency, including a proposed rule submitted under section 14.15, 
        subdivision 4, or 14.26, subdivision 3, paragraph (c), the 
        commission may file that objection in the office of the 
        secretary of state.  The filed objection must contain a concise 
        statement of the commission's reasons for its action.  An 
        objection to a proposed rule submitted under section 14.15, 
        subdivision 4, or 14.26, subdivision 3, paragraph (c), may not 
        be filed before the rule is adopted. 
           (b) The secretary of state shall affix to each objection a 
        certification of the date and time of its filing and as soon 
        after the objection is filed as practicable shall transmit a 
        certified copy of it to the agency issuing the rule in question 
        and to the revisor of statutes.  The secretary of state shall 
        also maintain a permanent register open to public inspection of 
        all objections by the commission.  
           (c) The legislative commission to review administrative 
        rules shall publish and index an objection filed under this 
        section in the next issue of the State Register.  The revisor of 
        statutes shall indicate its the existence of the objection 
        adjacent to the rule in question when that rule is published in 
        Minnesota Rules. 
           (d) Within 14 days after the filing of an objection by the 
        commission to a rule, the issuing agency shall respond in 
        writing to the commission.  After receipt of the response, the 
        commission may withdraw or modify its objection.  
           (e) After the filing of an objection by the commission that 
        is not subsequently withdrawn, the burden is upon the agency in 
        any proceeding for judicial review or for enforcement of the 
        rule to establish that the whole or portion of the rule objected 
        to is valid.  
           (f) The failure of the commission to object to a rule is 
        not an implied legislative authorization of its validity. 
           (g) Pursuant to In accordance with sections 14.44 and 
        14.45, the commission may petition for a declaratory judgment to 
        determine the validity of any a rule objected to by the 
        commission.  This The action must be started within two years 
        after an objection is filed in the office of the secretary of 
        state.  
           (h) The commission may intervene in litigation arising from 
        agency action.  For purposes of this paragraph, agency action 
        means the whole or part of a rule, or the failure to issue a 
        rule. 
           Sec. 4.  Minnesota Statutes 1996, section 3.843, is amended 
        to read: 
           3.843 [PUBLIC HEARINGS BY STATE AGENCIES.] 
           By a vote of a majority of its members, the commission may 
        request any agency issuing rules to hold a public hearing in 
        respect to recommendations made pursuant to under section 3.842, 
        including recommendations made by the commission to promote 
        adequate and proper rules by that agency and recommendations 
        contained in the commission's biennial report.  The agency shall 
        give notice as provided in section 14.14, subdivision 1, of a 
        hearing thereon under this section, to be conducted in 
        accordance with sections 14.05 to 14.28.  The hearing shall must 
        be held not more than 60 days after receipt of the request or 
        within any other longer time period specified by the commission 
        in the request. 
           Sec. 5.  Minnesota Statutes 1996, section 14.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REVIEW AND REPEAL OF RULES.] By December 1 of 
        each year, an agency shall submit a list of all the rules of the 
        agency to the governor, the legislative coordinating commission 
        to review administrative rules, and the revisor of statutes.  
        The list must identify any rules that are obsolete and should be 
        repealed.  The list must also include an explanation of why the 
        rule is obsolete and the agency's timetable for repeal. 
           Sec. 6.  Minnesota Statutes 1996, section 14.131, is 
        amended to read: 
           14.131 [STATEMENT OF NEED AND REASONABLENESS.] 
           Before the agency orders the publication of a rulemaking 
        notice required by section 14.14, subdivision 1a, the agency 
        must shall 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; 
        and 
           (6) 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.  
           For rules setting, adjusting, or establishing regulatory, 
        licensure, or other charges for goods and services, the 
        statement of need and reasonableness must include the comments 
        and recommendations of the commissioner of finance and must 
        address any fiscal and policy concerns raised during the review 
        process, as required by section 16A.1285. 
           The statement must also describe the agency's efforts to 
        provide additional notification 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 shall send a copy of the statement of need and 
        reasonableness to the legislative commission to review 
        administrative rules reference library when it becomes available 
        for public review. 
           Sec. 7.  Minnesota Statutes 1996, 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.  
        The agency may inquire as to whether those persons on the list 
        wish to maintain their names thereon on it and may remove names 
        for which there is a negative reply or no reply within 60 days.  
        The agency shall, at least 30 days prior to before the date set 
        for the hearing, give notice of its intention to adopt rules by 
        United States mail to all persons on its list, and by 
        publication in the State Register.  The mailed notice shall must 
        include either a copy of the proposed rule or a description of 
        the its nature and effect of the proposed rule and an 
        announcement that a free copy of the proposed rule is available 
        on request from the agency.  Each agency may, at its own 
        discretion, also contact notify persons not on its list who may 
        be affected by the rule being proposed.  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 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 
        a rule has been adopted, and other information as required by 
        law or rule.  When an entire rule is proposed to be repealed, 
        the agency need only publish that fact, giving the citation to 
        the rule to be repealed in the notice. 
           (b) The legislative commission to review administrative 
        rules 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. 8.  Minnesota Statutes 1996, section 14.15, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NEED OR REASONABLENESS NOT ESTABLISHED.] If the 
        chief administrative law judge determines that the need for or 
        reasonableness of the rule has not been established pursuant to 
        section 14.14, subdivision 2, 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 to 
        review administrative rules for the commission's advice and 
        comment.  The agency shall may not adopt the rule until it has 
        received and considered the advice of the commission.  However, 
        the agency is not required to wait for the commission's advice 
        for more than 60 days after the commission has received the 
        agency's submission.  
           Sec. 9.  Minnesota Statutes 1996, section 14.18, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERALLY.] A rule is effective after it 
        has been subjected to all requirements described in sections 
        14.131 to 14.20 and five working days after the notice of 
        adoption is published in the State Register unless a later date 
        is required by law or specified in the rule.  If the rule 
        adopted is the same as the proposed rule, publication may be 
        made by publishing notice in the State Register that the rule 
        has been adopted as proposed and by citing the prior 
        publication.  If the rule adopted differs from the proposed 
        rule, the portions of the adopted rule which that differ from 
        the proposed rule shall must be included in the notice of 
        adoption together with a citation to the prior State Register 
        publication of the remainder of the proposed rule.  The nature 
        of the modifications must be clear to a reasonable person when 
        the notice of adoption is considered together with the State 
        Register publication of the proposed rule, except that 
        modifications may also be made which that comply with the form 
        requirements of section 14.07, subdivision 7.  
           If the agency omitted from the notice of proposed rule 
        adoption the text of the proposed rule, as permitted by section 
        14.14, subdivision 1a, paragraph (b), the legislative commission 
        to review administrative rules chief administrative law judge 
        may provide that the notice of the adopted rule need not include 
        the text of any changes from the proposed rule.  However, the 
        notice of adoption must state in detail the substance of the 
        changes made from the proposed rule, and must state that a free 
        copy of that the portion of the adopted rule that was the 
        subject of the rulemaking proceeding, not including any material 
        adopted by reference as permitted by section 14.07, is available 
        upon request to the agency. 
           Sec. 10.  Minnesota Statutes 1996, section 14.19, is 
        amended to read: 
           14.19 [DEADLINE TO COMPLETE RULEMAKING.] 
           The agency shall, Within 180 days after issuance of the 
        administrative law judge's report, the agency shall submit its 
        notice of adoption, amendment, or repeal to the State Register 
        for publication.  If the agency has not submitted its notice to 
        the State Register within 180 days, the rule is automatically 
        withdrawn.  The agency shall may not adopt the withdrawn rules 
        without again following the procedures of sections 14.05 to 
        14.28.  It shall report to the legislative coordinating 
        commission to review administrative rules, other appropriate 
        committees of the legislature, and the governor its failure to 
        adopt rules and the reasons for that failure.  The 180-day time 
        limit of this section does not include any days used for review 
        by the chief administrative law judge or the legislative 
        commission to review administrative rules if the review is 
        required by law.  
           Sec. 11.  Minnesota Statutes 1996, 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 shall must be given by publication 
        in the State Register and by United States mail to persons who 
        have registered their names with the agency pursuant to under 
        section 14.14, subdivision 1a.  The mailed notice shall must 
        include either a copy of the proposed rule or a description of 
        the its nature and effect of the proposed rule and an 
        announcement that a free copy of the proposed rule is available 
        on request from the agency.  Each agency may, at its own 
        discretion, also contact notify persons not on its list who may 
        be affected by the rule being proposed.  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 shall must include the proposed 
        rule or the amended rule in the form required by the revisor 
        under section 14.07, 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 as 
        required by law or rule.  When an entire rule is proposed to be 
        repealed, the notice need only state that fact, giving the 
        citation to the rule to be repealed in the notice.  The 
        notice shall must include a statement advising the public: 
           (1) that they have 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 shall 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 legislative commission to review administrative 
        rules 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. 12.  Minnesota Statutes 1996, section 14.225, is 
        amended to read: 
           14.225 [DUAL NOTICE RULES.] 
           The attorney general, after consultation with the office of 
        chief administrative hearings, law judge shall adopt rules 
        prescribing the form and content of the notice authorized by 
        section 14.22, subdivision 2.  The rules may provide for a 
        consolidated notice that satisfies the requirements of sections 
        14.14, 14.22, and 14.50, and the requirements of the rules of 
        the office of administrative hearings and of the attorney 
        general. 
           Sec. 13.  Minnesota Statutes 1996, section 14.23, is 
        amended to read: 
           14.23 [STATEMENT OF NEED AND REASONABLENESS.] 
           Before the date of the section 14.22 notice, the agency 
        shall prepare a statement of need and reasonableness, which 
        shall must be available to the public.  The statement of need 
        and reasonableness must include the analysis required in section 
        14.131 and the comments and recommendations of the commissioner 
        of finance, and must address any fiscal and policy concerns 
        raised during the review process, as required by section 
        16A.1285.  The statement must also describe the agency's efforts 
        to provide additional notification 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 commission to review 
        administrative rules reference library when it becomes available 
        to the public.  
           Sec. 14.  Minnesota Statutes 1996, section 14.26, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUBMISSION.] If no hearing is required, 
        the agency shall submit to an administrative law judge assigned 
        by the chief administrative law judge the proposed rule and 
        notice as published, the rule as proposed for adoption, any 
        written comments received by the agency, and a statement of need 
        and reasonableness for the rule.  The agency shall give notice 
        to all persons who requested to be informed that these materials 
        have been submitted to the administrative law judge.  This 
        notice shall must be given on the same day that the record is 
        submitted.  If the proposed rule has been modified, the notice 
        shall must state that fact, and shall must also state that a 
        free copy of the proposed rule, as modified, is available upon 
        request from the agency.  The rule and these materials shall 
        must be submitted to the administrative law judge within 180 
        days of the day that the comment period for the rule is over or 
        the rule is automatically withdrawn.  The agency shall report 
        its failure to adopt the rules and the reasons for that failure 
        to the legislative coordinating commission to review 
        administrative rules, other appropriate legislative committees, 
        and the governor.  
           Sec. 15.  Minnesota Statutes 1996, section 14.26, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REVIEW.] (a) Within 14 days, the administrative 
        law judge shall, within 14 days, 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 two 
        copies of it in the office of the secretary of state.  The 
        secretary of state shall forward one copy of each rule to the 
        revisor of statutes.  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 to 
        review administrative rules, and the revisor of statutes and 
        advise the agency and the revisor of statutes of actions that 
        will correct the defects.  The rule shall may not be filed in 
        the office of the secretary of state, nor 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 to review 
        administrative rules for the commission's advice and comment.  
        The agency shall may not adopt the rule until it has received 
        and considered the advice of the commission.  However, the 
        agency is not required to wait for the commission's advice for 
        more than 60 days after the commission has 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. 16.  Minnesota Statutes 1996, section 14.47, 
        subdivision 6, is amended to read: 
           Subd. 6.  [OMISSION OF TEXT.] (a) For purposes of any 
        compilation or publication of the rules, the revisor, unless the 
        attorney general objects, may omit any extraneous descriptive or 
        informative text which that is not an operative portion of the 
        rule.  The revisor may also omit effective date provisions, 
        statements that a rule is repealed, prefaces, appendices, 
        guidelines, organizational descriptions, explanations of federal 
        or state law, and similar material.  The revisor shall consult 
        with the agency, the attorney general, the 
        legislative coordinating commission to review administrative 
        rules, and with the chief administrative law judge before 
        omitting any text from publication. 
           (b) For the purposes of any compilation or publication of 
        the rules, the revisor, unless the attorney general objects, may 
        omit any rules that, by their own terms, are no longer effective 
        or have been repealed directly by the agency, repealed by the 
        legislature, or declared unconstitutional or otherwise void by a 
        court of last resort.  The revisor shall not remove a rule which 
        is suspended and not fully repealed, but shall, if practicable, 
        note the fact of suspension in Minnesota Rules.  The revisor 
        shall consult the agency involved, the attorney general, the 
        chief administrative law judge, and the legislative coordinating 
        commission to review administrative rules before omitting a rule 
        from publication. 
           Sec. 17.  [REPEALER.] 
           Minnesota Statutes 1996, sections 3.842, subdivisions 4, 5, 
        6, and 7; 3.844; 3.845; and 15.065, are repealed. 
           Presented to the governor May 5, 1997 
           Signed by the governor May 6, 1997, 2:35 p.m.

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