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

                            CHAPTER 251-H.F.No. 2742 
                  An act relating to state government; regulating 
                  contested case procedures; amending Minnesota Statutes 
                  2000, sections 14.57; 14.59; 14.61; 14.62, subdivision 
                  1, by adding a subdivision; 14.63; repealing Minnesota 
                  Statutes 2000, section 14.62, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 14.57, is 
        amended to read: 
           14.57 [INITIATION; DECISION; AGREEMENT TO ARBITRATE.] 
           (a) An agency shall initiate a contested case proceeding 
        when one is required by law.  Unless otherwise provided by law, 
        an agency shall decide a contested case only in accordance with 
        the contested case procedures of the Administrative Procedure 
        Act.  Upon initiation of a contested case proceeding, an agency 
        may, by order, provide that the report or order of the 
        administrative law judge constitutes the final decision in the 
        case. 
           (b) As an alternative to initiating or continuing with a 
        contested case proceeding, the parties, subsequent to agency 
        approval, may enter into a written agreement to submit the 
        issues raised to arbitration by an administrative law judge 
        according to sections 572.08 to 572.30. 
           Sec. 2.  Minnesota Statutes 2000, section 14.59, is amended 
        to read: 
           14.59 [INFORMAL DISPOSITION.] 
           Informal disposition may also be made of any contested case 
        by arbitration, stipulation, agreed settlement, consent order or 
        default. 
           Sec. 3.  Minnesota Statutes 2000, section 14.61, is amended 
        to read: 
           14.61 [AGENCY FINAL DECISION IN CONTESTED CASE.] 
           Subdivision 1.  [FILING OF EXCEPTIONS.] In all contested 
        cases the decision of the officials of the agency who are to 
        render the final decision shall not be made until the report of 
        the administrative law judge as required by sections 14.48 to 
        14.56, has been made available to parties to the proceeding for 
        at least ten days and an opportunity has been afforded to each 
        party adversely affected to file exceptions and present argument 
        to a majority of the officials who are to render the decision.  
        This section does not apply to a contested case under which the 
        report or order of the administrative law judge constitutes the 
        final decision in the case. 
           Subd. 2.  [CLOSURE OF RECORD.] In all contested cases where 
        officials of the agency render the final decision, the contested 
        case record must close upon the filing of any exceptions to the 
        report and presentation of argument under subdivision 1 or upon 
        expiration of the deadline for doing so.  The agency shall 
        notify the parties and the presiding administrative law judge of 
        the date when the hearing record closed.  In all contested cases 
        where the report or order of the administrative law judge 
        constitutes the final decision in the case, the hearing record 
        must close as ordered in writing by the presiding administrative 
        law judge. 
           Sec. 4.  Minnesota Statutes 2000, section 14.62, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WRITING REQUIRED.] Every decision and 
        order rendered by an agency in a contested case shall be in 
        writing, shall be based on the record and shall include the 
        agency's findings of fact and conclusions on all material 
        issues.  A decision or order that rejects or modifies a finding 
        of fact, conclusion, or recommendation contained in the report 
        of the administrative law judge required under sections 14.48 to 
        14.56, must include the reasons for each rejection or 
        modification.  A copy of the decision and order shall be served 
        upon each party or the party's representative and the 
        administrative law judge by first class mail. 
           Sec. 5.  Minnesota Statutes 2000, section 14.62, is amended 
        by adding a subdivision to read: 
           Subd. 2a.  [ADMINISTRATIVE LAW JUDGE DECISION FINAL; 
        EXCEPTION.] Unless otherwise provided by law, the report or 
        order of the administrative law judge constitutes the final 
        decision in the case unless the agency modifies or rejects it 
        under subdivision 1 within 90 days after the record of the 
        proceeding closes under section 14.61.  In all contested cases 
        where the report or order of the administrative law judge 
        constitutes the final decision in the case, the administrative 
        law judge shall issue findings of fact, conclusions, and an 
        order within 90 days after the hearing record closes under 
        section 14.61.  Upon a showing of good cause by a party or the 
        agency, the chief administrative law judge may order a 
        reasonable extension of either of the two 90-day deadlines 
        specified in this subdivision. 
           Sec. 6.  Minnesota Statutes 2000, section 14.63, is amended 
        to read: 
           14.63 [APPLICATION.] 
           Any person aggrieved by a final decision in a contested 
        case is entitled to judicial review of the decision under the 
        provisions of sections 14.63 to 14.68, but nothing in sections 
        14.63 to 14.68 shall be deemed to prevent resort to other means 
        of review, redress, relief, or trial de novo provided by law.  A 
        petition for a writ of certiorari by an aggrieved person for 
        judicial review under sections 14.63 to 14.68 must be filed with 
        the court of appeals and served on the agency not more than 30 
        days after the party receives the final decision and order of 
        the agency.  Sections 572.08 to 572.30 govern judicial review of 
        arbitration awards entered under section 14.57. 
           Sec. 7.  [REPEALER.] 
           Minnesota Statutes 2000, section 14.62, subdivision 2, is 
        repealed. 
           Sec. 8.  [EFFECTIVE DATE; APPLICATION.] 
           Sections 1 to 7 are effective August 1, 2002, and apply to 
        contested case proceedings initiated on or after that date. 
           Presented to the governor March 20, 2002 
           Signed by the governor March 21, 2002, 3:10 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes