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

                            CHAPTER 469-S.F.No. 3234 
                  An act relating to state government; authorizing 
                  legislative governmental operations committees to 
                  formally object to administrative rules; modifying the 
                  review of proposed rules; providing for the review and 
                  repeal of certain administrative rules; creating a 
                  rules task force; providing appointments; requiring a 
                  report on teacher preparation programs; amending 
                  Minnesota Statutes 1998, sections 3.842, subdivision 
                  4a; and 14.15, subdivision 4; Minnesota Statutes 1999 
                  Supplement, section 14.26, subdivision 3; proposing 
                  coding for new law in Minnesota Statutes, chapter 14; 
                  repealing Minnesota Rules, parts 1200.0200; 1200.0300; 
                  1250.0200; 1250.0300; 1250.0400; 1250.0500; 1250.0600; 
                  1250.0700; 1250.0800; 1250.0900; 1250.1000; 1250.1100; 
                  1250.1200; 1265.0100; 1265.0200; 1265.0300; 1265.0400; 
                  1265.0500; 1265.0600; 1555.2205 to 1555.2410; 
                  1555.2440 to 1555.3920; 1555.3990 to 1555.4110; 
                  7402.0100; 7402.0200; 7401.0300; 7402.0400; and 
                  7402.0500. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 3.842, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [OBJECTIONS TO RULES.] (a) For purposes of this 
        subdivision, "committee" means the house of representatives 
        policy committee or senate policy committee with primary 
        jurisdiction over state governmental operations.  The commission 
        or a committee may object to a rule as provided in this 
        subdivision.  If the commission or a committee objects to all or 
        some portion of a rule because the commission or committee 
        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 or committee may 
        file that objection in the office of the secretary of state.  
        The filed objection must contain a concise statement of the 
        commission's or committee's reasons for its action.  An 
        objection to a proposed rule submitted by the commission or a 
        committee 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 or committee.  
           (c) The commission or committee shall publish and index an 
        objection filed under this section in the next issue of the 
        State Register.  The revisor of statutes shall indicate 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 or committee to a rule, the issuing agency shall 
        respond in writing to the commission objecting entity.  After 
        receipt of the response, the commission or committee may 
        withdraw or modify its objection.  
           (e) After the filing of an objection by the commission or 
        committee 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 or a committee to object 
        to a rule is not an implied legislative authorization of its 
        validity. 
           (g) In accordance with sections 14.44 and 14.45, the 
        commission or a committee may petition for a declaratory 
        judgment to determine the validity of a rule objected to by the 
        commission or committee.  The action must be started within two 
        years after an objection is filed in the office of the secretary 
        of state.  
           (h) The commission or a committee 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. 2.  Minnesota Statutes 1998, 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 and to 
        the house of representatives and senate policy committees with 
        primary jurisdiction over state governmental operations for the 
        commission's 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 is not required 
        to wait for the commission's advice for more than 60 days after 
        the commission has and committees have received the agency's 
        submission.  
           Sec. 3.  Minnesota Statutes 1999 Supplement, 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 three 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 and 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 
        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 the 
        commission's 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 is not required 
        to wait for the commission's advice for more than 60 days after 
        the commission has 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. 4.  [14.3691] [RULE REVIEW AND LEGISLATIVE OVERSIGHT.] 
           Subdivision 1.  [REPORTS.] An entity whose rules are 
        scheduled for review under this section must report to the 
        governor and the appropriate committees of the legislature by 
        August 1 of the year before the legislative session in which the 
        entity's rules are scheduled for review.  The speaker of the 
        house of representatives and the senate committee on rules and 
        administration shall designate the appropriate committees to 
        receive these reports.  The report must:  (1) list any rules 
        that the entity recommends for repeal; (2) list and briefly 
        describe the rationale for rules that the entity believes should 
        remain in effect; and (3) suggest any changes in rules that 
        would improve the agency's ability to meet the regulatory 
        objectives prescribed by the legislature, while reducing any 
        unnecessary burdens on regulated parties.  Any costs of 
        preparing this report must be absorbed within funds otherwise 
        appropriated to the entity. 
           Subd. 2.  [SCHEDULE.] (a) Rules of the administration 
        department, agriculture department, children, families, and 
        learning department, commerce department, corrections 
        department, economic security department, employee relations 
        department, and health department will be reviewed before and 
        during the legislative session in 2002.  Policies and procedures 
        of the board of trustees of the Minnesota state colleges and 
        universities that would be rules if they were not exempt from 
        chapter 14 will be reviewed before and during the legislative 
        session in 2002. 
           (b) Rules of the environmental assistance office, board of 
        teaching, housing finance agency, human rights department, human 
        services department, labor and industry department, and 
        mediation services bureau will be reviewed before and during the 
        legislative session in 2003. 
           (c) Rules of the natural resources department, pollution 
        control agency, public safety department, public service 
        department, and revenue department will be reviewed before and 
        during the legislative session in 2004. 
           (d) Rules of the state planning agency, trade and economic 
        development department, transportation department, and veterans 
        affairs department will be reviewed before and during the 
        legislative session in 2005. 
           Subd. 3.  [EXPIRATION.] This section expires June 30, 2005. 
           Sec. 5.  [RULES TASK FORCE.] 
           A rules task force of eight members is created.  The 
        governor must appoint four members.  The task force also 
        includes one member each from the minority and majority caucus 
        in the house of representatives and the senate.  House members 
        must be appointed by the speaker.  Senate members must be 
        appointed by the committee on rules and administration.  The 
        member of the majority caucus appointed by the speaker of the 
        house of representatives must convene the first meeting.  The 
        members of the task force must elect a chair.  The legislative 
        coordinating commission and an agency designated by the governor 
        must provide staff assistance and administrative support for the 
        task force within existing appropriations.  The task force must 
        study and make recommendations to the governor and the 
        legislature by January 15, 2001, on issues relating to review of 
        agency rules.  The recommendations must include, but are not 
        limited to: 
           (1) a process to be used by agencies, the governor, and the 
        legislature to identify and prioritize rules and related laws 
        and programs that will be subject to legislative review; 
           (2) a process by which the legislature will review rules 
        and related laws and programs identified under clause (1); 
           (3) the estimated agency and legislative time and resources 
        required for review of rules and related laws and programs under 
        the processes recommended under clauses (1) and (2); 
           (4) the effect of possible repeal of agency rules on the 
        state budget and any loss of benefits to citizens of the state 
        resulting from such a repeal; 
           (5) the desirability of changes in the rulemaking 
        requirements of the Administrative Procedure Act, given 
        increased legislative scrutiny of rules; and 
           (6) an analysis of ways to ensure or encourage compliance 
        with state policies and goals using methods other than 
        rulemaking, such as administrative penalty orders, descriptive 
        guidelines, best management practices, compliance incentives, 
        technical assistance, training, and procedural templates. 
           In making its recommendations, the task force must consult 
        with interested parties, and must consider relevant state and 
        federal laws and commitments.  The task force is subject to 
        Minnesota Statutes, section 471.705.  The task force expires 
        June 30, 2001.  
           Sec. 6.  [TEACHER PREPARATION PROGRAMS.] 
           The state board of teaching must consult with 
        representatives of faculty and administrators from Minnesota 
        post-secondary institutions that have teacher preparation 
        programs.  The state board of teaching must report to the 
        governmental operations and education committees of the 
        legislature by January 15, 2001, on these institutions' opinions 
        on the rules relating to institution and teacher preparation 
        program approval. 
           Sec. 7.  [REPEALER.] 
           (a) Minnesota Rules parts 1200.0200, 1200.0300, 1250.0200, 
        1250.0300, 1250.0400, 1250.0500, 1250.0600, 1250.0700, 
        1250.0800, 1250.0900, 1250.1000, 1250.1100, 1250.1200, 
        1265.0100, 1265.0200, 1265.0300, 1265.0400, 1265.0500, and 
        1265.0600, are repealed. 
           (b) Minnesota Rules, parts 1555.2205, 1555.2210, 1555.2220, 
        1555.2225, 1555.2230, 1555.2240, 1555.2250, 1555.2260, 
        1555.2270, 1555.2280, 1555.2290, 1555.2300, 1555.2310, 
        1555.2320, 1555.2330, 1555.2340, 1555.2350, 1555.2360, 
        1555.2370, 1555.2380, 1555.2390, 1555.2400, 1555.2410, 
        1555.2440, 1555.2450, 1555.2460, 1555.2470, 1555.2480, 
        1555.2490, 1555.2500, 1555.2510, 1555.2520, 1555.2530, 
        1555.2540, 1555.2550, 1555.2560, 1555.2570, 1555.2580, 
        1555.2590, 1555.2600, 1555.2610, 1555.2620, 1555.2630, 
        1555.2640, 1555.2650, 1555.2660, 1555.2670, 1555.2680, 
        1555.2690, 1555.2700, 1555.2710, 1555.2720, 1555.2730, 
        1555.2740, 1555.2750, 1555.2760, 1555.2770, 1555.2780, 
        1555.2790, 1555.2800, 1555.2810, 1555.2820, 1555.2830, 
        1555.2840, 1555.2850, 1555.2860, 1555.2870, 1555.2880, 
        1555.2890, 1555.2900, 1555.2910, 1555.3000, 1555.3010, 
        1555.3020, 1555.3030, 1555.3040, 1555.3050, 1555.3060, 
        1555.3070, 1555.3080, 1555.3090, 1555.3100, 1555.3110, 
        1555.3120, 1555.3130, 1555.3140, 1555.3150, 1555.3160, 
        1555.3170, 1555.3180, 1555.3190, 1555.3200, 1555.3210, 
        1555.3220, 1555.3230, 1555.3240, 1555.3250, 1555.3260, 
        1555.3270, 1555.3280, 1555.3290, 1555.3300, 1555.3310, 
        1555.3320, 1555.3330, 1555.3340, 1555.3350, 1555.3360, 
        1555.3370, 1555.3380, 1555.3390, 1555.3400, 1555.3410, 
        1555.3420, 1555.3430, 1555.3440, 1555.3450, 1555.3460, 
        1555.3470, 1555.3480, 1555.3490, 1555.3500, 1555.3510, 
        1555.3520, 1555.3530, 1555.3540, 1555.3550, 1555.3560, 
        1555.3570, 1555.3580, 1555.3590, 1555.3600, 1555.3610, 
        1555.3620, 1555.3630, 1555.3640, 1555.3650, 1555.3660, 
        1555.3680, 1555.3700, 1555.3720, 1555.3730, 1555.3750, 
        1555.3770, 1555.3780, 1555.3790, 1555.3800, 1555.3830, 
        1555.3850, 1555.3860, 1555.3870, 1555.3880, 1555.3890, 
        1555.3900, 1555.3910, 1555.3920, 1555.3990, 1555.4000, 
        1555.4100, and 1555.4110, are repealed. 
           (c) Minnesota Rules parts 7402.0100, 7402.0200, 7402.0300, 
        7402.0400, and 7402.0500, are repealed. 
           Sec. 8.  [EFFECTIVE DATE.] 
           Sections 1 to 3, 5, and 6 are effective the day following 
        final enactment.  Section 7, paragraphs (a) and (b) are 
        effective July 1, 2000. 
           Presented to the governor May 11, 2000 
           Signed by the governor May 15, 2000, 10:42 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes