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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 106-S.F.No. 780 
                  An act relating to state government; regulating 
                  rulemaking by state agencies; making various technical 
                  and housekeeping changes; amending Minnesota Statutes 
                  2000, sections 14.05, subdivision 3; 14.07, 
                  subdivision 2; 14.08; 14.101, subdivisions 1, 2, and 
                  by adding a subdivision; 14.131; 14.14, subdivision 
                  1a; 14.15, subdivision 1; 14.16, subdivision 1; 14.19; 
                  14.22, subdivision 1; 14.23; 14.25; 14.26, 
                  subdivisions 1 and 3; 14.365; 14.38, subdivision 2; 
                  14.386; 14.388; and 14.389, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 14.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AUTHORITY TO WITHDRAW PROPOSED RULE.] An agency 
        may withdraw a proposed rule any time prior to before filing it 
        with the secretary of state.  An agency may withdraw a portion 
        of a rule unless the remaining rule is substantially different 
        from the rule as published.  It shall publish notice that 
        the proposed rule has been withdrawn in the State Register.  If 
        a rule is withdrawn, the agency may again propose it for 
        adoption, either in the original or modified form, but the 
        agency shall comply with all procedures of sections 14.05 to 
        14.28, with the exception of section 14.101, if the 
        noncompliance is approved by the chief administrative law judge. 
           Sec. 2.  Minnesota Statutes 2000, section 14.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPROVAL OF FORM.] No agency decision to adopt a 
        rule or an emergency, exempt, or expedited rule, including a 
        decision to amend or modify a proposed rule or proposed 
        emergency, exempt, or expedited rule, shall be is effective 
        unless the agency has presented the rule to the revisor of 
        statutes and the revisor has certified that its form is approved.
           Sec. 3.  Minnesota Statutes 2000, section 14.08, is amended 
        to read: 
           14.08 [APPROVAL OF RULE AND RULE FORM; COSTS.] 
           (a) Two copies One copy of a rule adopted pursuant to under 
        section 14.26 shall must be submitted by the agency to the chief 
        administrative law judge.  The chief administrative law judge 
        shall send one copy of the rule to the revisor on the same 
        day request from the revisor certified copies of the rule when 
        it is submitted by the agency under section 14.26.  Within five 
        days after receipt of the rule 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 two copies 
        one copy of the modified rule, approved as to form by the 
        revisor, to the chief administrative law judge who shall send a 
        copy to the revisor for approval as to form as described in this 
        paragraph. 
           (b) One copy of a rule adopted after a public hearing shall 
        must be submitted by the agency to the revisor for approval of 
        the form of the rule 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 rule 
        request, the revisor shall either return the rule with a 
        certificate of approval to the agency 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 shall must revise the rule so it is in the 
        correct form.  
           (d) 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 created established in 
        section 14.54. 
           Sec. 4.  Minnesota Statutes 2000, section 14.101, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIRED NOTICE.] In addition to seeking 
        information by other methods designed to reach persons or 
        classes of persons who might be affected by the proposal, an 
        agency, at least 60 days before publication of a notice of 
        intent to adopt or a notice of hearing, shall solicit comments 
        from the public on the subject matter of a possible rulemaking 
        proposal under active consideration within the agency by causing 
        notice to be published in the State Register.  The notice must 
        include a description of the subject matter of the proposal, and 
        the types of groups and individuals likely to be affected, 
        and must indicate where, when, and how persons may comment on 
        the proposal and whether and how drafts of any proposal may be 
        obtained from the agency.  
           This notice must be published within 60 days of the 
        effective date of any new statutory grant of required rulemaking 
        or amendatory law requiring rules to be adopted, amended, or 
        repealed. 
           Sec. 5.  Minnesota Statutes 2000, section 14.101, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADVISORY COMMITTEES.] Each agency may also 
        appoint committees to comment, before publication of a notice of 
        intent to adopt or a notice of hearing, on the subject matter of 
        a possible rulemaking under active consideration within the 
        agency.  The membership of those committees must be published at 
        least annually in the State Register. 
           Sec. 6.  Minnesota Statutes 2000, section 14.101, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [REDUCTION OF TIME PERIOD.] The chief 
        administrative law judge shall reduce the time period before 
        publication from 60 to 30 days for good cause. 
           Sec. 7.  Minnesota Statutes 2000, 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 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; 
        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.  
           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. 
           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 send a copy of the statement of need and 
        reasonableness to the legislative reference library when it 
        becomes available for public review the notice of hearing is 
        mailed under section 14.14, subdivision 1a.  
           Sec. 8.  Minnesota Statutes 2000, 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 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 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 must include either a 
        copy of the proposed rule or a 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.  Each agency may, at its own 
        discretion, also 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 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 a rule has been adopted, 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, giving the 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 in the notice. 
           (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. 9.  Minnesota Statutes 2000, section 14.15, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TIME OF PREPARATION.] After allowing a 
        comment period during which written material to may be submitted 
        and recorded in the hearing record for five working days after 
        the public hearing ends, or for a longer period not to exceed 20 
        days if ordered by the administrative law judge, the 
        administrative law judge assigned to the hearing shall write a 
        report as provided for in section 14.50.  Prior to Before 
        writing the report, the administrative law judge shall allow the 
        agency and interested persons a rebuttal period of five working 
        days after the submission comment period ends to respond in 
        writing to any new information submitted.  During the comment 
        period and five-day rebuttal period, the agency may indicate in 
        writing whether there are amendments suggested by other persons 
        which the agency is willing to adopt.  Additional evidence may 
        not be submitted during this five-day rebuttal period.  The 
        written responses shall must be added to the rulemaking record.  
           Sec. 10.  Minnesota Statutes 2000, section 14.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REVIEW OF MODIFICATIONS.] If the report of 
        the administrative law judge finds no defects, the agency may 
        proceed to adopt the rule.  After receipt of the administrative 
        law judge's report, if the agency makes any modifications to the 
        rule other than those recommended by the administrative law 
        judge, it must return the rule, approved as to form by the 
        revisor, to the chief administrative law judge for a review on 
        of legality, including the issue of whether the rule as modified 
        is substantially different, as determined under section 14.05, 
        subdivision 2, from the rule as originally proposed.  If the 
        chief administrative law judge determines that the modified rule 
        is substantially different from the rule that which was 
        originally proposed, the chief administrative law judge shall 
        advise the agency of actions which that will correct the 
        defects.  The agency shall may not adopt the modified rule 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. 
           The agency shall give notice to all persons who requested 
        to be informed that the rule has been adopted and filed with the 
        secretary of state.  This notice shall must be given on the same 
        day that the rule is filed.  
           Sec. 11.  Minnesota Statutes 2000, section 14.19, is 
        amended to read: 
           14.19 [DEADLINE TO COMPLETE RULEMAKING.] 
           Within 180 days after issuance of the administrative law 
        judge's report or that of the chief administrative law judge, 
        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 may not adopt 
        the withdrawn rules without again following the procedures of 
        sections 14.05 to 14.28, with the exception of section 14.101, 
        if the noncompliance is approved by the chief administrative law 
        judge.  It The agency shall report to the legislative 
        coordinating commission, 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 commission if the review is 
        required by law.  
           Sec. 12.  Minnesota Statutes 2000, 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 to persons who have 
        registered their names with the agency under section 14.14, 
        subdivision 1a.  The mailed notice must include either a copy of 
        the proposed rule or a 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.  Each agency may, at its own discretion, also 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 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, giving the 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 in the notice.  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. 13.  Minnesota Statutes 2000, section 14.23, is 
        amended to read: 
           14.23 [STATEMENT OF NEED AND REASONABLENESS.] 
           Before 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 it 
        becomes available to the public the notice of intent to adopt is 
        mailed.  
           Sec. 14.  Minnesota Statutes 2000, section 14.25, is 
        amended to read: 
           14.25 [PUBLIC HEARING.] 
           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 mailed 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 must may 
        not be counted by the agency for purposes of determining whether 
        a public hearing must be held. 
           Subd. 2.  [WITHDRAWAL OF HEARING REQUESTS.] If a request 
        for a public hearing has been withdrawn so as to reduce the 
        number of requests below 25, the agency must give written notice 
        of that fact to all persons who have requested the public 
        hearing.  No public hearing may be canceled by an agency within 
        three working days of the hearing.  The notice must explain why 
        the request is being withdrawn, and must include a description 
        of any action the agency has taken or will take that affected or 
        may have affected the decision to withdraw the request requests. 
        The notice must also invite persons to submit written 
        comments within five working days to the agency relating to the 
        withdrawal.  The notice and any written comments received by the 
        agency is part of the rulemaking record submitted to the 
        administrative law judge under section 14.14 or 14.26.  The 
        administrative law judge shall review the notice and any 
        comments received and determine whether the withdrawal is 
        consistent with section 14.001, clauses (2), (4), and (5). 
           This subdivision applies only to a withdrawal of a hearing 
        request that affects whether a public hearing must be held and 
        only if the agency has taken any action to obtain the withdrawal 
        of the hearing request. 
           Sec. 15.  Minnesota Statutes 2000, 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 adopted, 
        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 must be given on the same day that the record is 
        submitted.  If the proposed rule has been modified, the notice 
        must state that fact, and 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 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 may not adopt the withdrawn rules without 
        again following the procedures of sections 14.05 to 14.28, with 
        the exception of section 14.101, if the noncompliance is 
        approved by the chief administrative law judge.  The agency 
        shall report its failure to adopt the rules and the reasons for 
        that failure to the legislative coordinating commission, other 
        appropriate legislative committees, and the governor. 
           Sec. 16.  Minnesota Statutes 2000, 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 four 
        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, one to the agency, and one 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 is need not required to 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. 17.  Minnesota Statutes 2000, section 14.365, is 
        amended to read: 
           14.365 [OFFICIAL RULEMAKING RECORD.] 
           The agency shall maintain the official rulemaking record 
        for every rule adopted pursuant to under sections 14.05 to 14.28 
        14.389.  The record shall must be available for public 
        inspection.  The record required by this section constitutes the 
        official and exclusive agency rulemaking record with respect to 
        agency action on or judicial review of the rule.  The 
        record shall must contain:  
           (1) copies of all publications in the State Register 
        pertaining to the rule; 
           (2) all written petitions, and all requests, submissions, 
        or comments received by the agency or the administrative law 
        judge after publication of the notice of intent to adopt or the 
        notice of hearing in the State Register pertaining to the rule; 
           (3) the statement of need and reasonableness for the rule; 
           (4) the official transcript of the hearing if one was held, 
        or the tape recording of the hearing if a transcript was not 
        prepared; 
           (5) the report of the administrative law judge, if any; 
           (6) the rule in the form last submitted to the 
        administrative law judge under sections 14.14 to 14.20 or first 
        submitted to the administrative law judge under sections 14.22 
        to 14.28; 
           (7) the administrative law judge's written statement of 
        required modifications and of approval or disapproval by the 
        chief administrative law judge, if any; 
           (8) any documents required by applicable rules of the 
        office of administrative hearings; 
           (9) the agency's order adopting the rule; 
           (10) the revisor's certificate approving the form of the 
        rule; and 
           (11) a copy of the adopted rule as filed with the secretary 
        of state.  
           Sec. 18.  Minnesota Statutes 2000, section 14.38, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RETROACTIVE APPLICATION.] Every existing rule, 
        regardless of whether it might be known as a substantive, 
        procedural, or interpretive rule, shall have has the force and 
        effect of law retroactive to the date on which the rule became 
        effective if: 
           (a) (1) the rule was adopted in compliance with the 
        provisions of the Administrative Procedure Act in effect at the 
        time the rule was adopted; 
           (b) (2) the rule was approved by the attorney general or 
        office of administrative hearings before becoming effective; and 
           (c) (3) the adopting agency had statutory authority to 
        adopt the rule. 
           Sec. 19.  Minnesota Statutes 2000, 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 three four copies of the rule with the 
        revisor's certificate in the office of the secretary of state; 
        and 
           (3) (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. 20.  Minnesota Statutes 2000, section 14.388, is 
        amended to read: 
           14.388 [GOOD CAUSE EXEMPTION.] 
           If an agency for good cause finds that the rulemaking 
        provisions of this chapter are unnecessary, impracticable, or 
        contrary to the public interest when adopting, amending, or 
        repealing a rule to: 
           (1) address a serious and immediate threat to the public 
        health, safety, or welfare; 
           (2) comply with a court order or a requirement in federal 
        law in a manner that does not allow for compliance with sections 
        14.14 to 14.28; 
           (3) incorporate specific changes set forth in applicable 
        statutes when no interpretation of law is required; or 
           (4) make changes that do not alter the sense, meaning, or 
        effect of a rule, 
        the agency may adopt, amend, or repeal the rule after satisfying 
        the requirements of section 14.386, paragraph (a), clauses (1) 
        to (3).  The agency shall incorporate its findings and a brief 
        statement of its supporting reasons in its order adopting, 
        amending, or repealing the rule. 
           In review of the rule under section 14.386, The office of 
        administrative hearings shall determine whether the agency has 
        provided adequate justification for its use of this section. 
           Rules adopted, amended, or repealed under clauses (1) and 
        (2) are effective for a period of two years from the date of 
        publication of the rule in the State Register. 
           Rules adopted, amended, or repealed under clause (3) or (4) 
        are effective upon publication in the State Register. 
           Sec. 21.  Minnesota Statutes 2000, 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 mail 
        the notice to persons who have registered with the agency to 
        receive mailed notices.  The mailed 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. 22.  [EFFECTIVE DATE.] 
           This act is effective August 1, 2001, and applies to rules 
        for which a notice under Minnesota Statutes, section 14.14, 
        subdivision 1a; or 14.22, is published in the State Register on 
        or after that date. 
           Presented to the governor May 14, 2001 
           Signed by the governor May 17, 2001, 10:36 a.m.