1.1                          A bill for an act 
  1.2             relating to state government; regulating contested 
  1.3             case procedures; amending Minnesota Statutes 2000, 
  1.4             sections 14.57; 14.59; 14.61; 14.62, subdivision 1, by 
  1.5             adding a subdivision; 14.63; repealing Minnesota 
  1.6             Statutes 2000, section 14.62, subdivision 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 14.57, is 
  1.9   amended to read: 
  1.10     14.57 [INITIATION; DECISION; AGREEMENT TO ARBITRATE.] 
  1.11     (a) An agency shall initiate a contested case proceeding 
  1.12  when one is required by law.  Unless otherwise provided by law, 
  1.13  an agency shall decide a contested case only in accordance with 
  1.14  the contested case procedures of the Administrative Procedure 
  1.15  Act.  Upon initiation of a contested case proceeding, an agency 
  1.16  may, by order, provide that the report or order of the 
  1.17  administrative law judge constitutes the final decision in the 
  1.18  case. 
  1.19     (b) As an alternative to initiating or continuing with a 
  1.20  contested case proceeding, the parties may enter into a written 
  1.21  agreement to submit the issues raised to arbitration by an 
  1.22  administrative law judge according to sections 572.08 to 572.30. 
  1.23     Sec. 2.  Minnesota Statutes 2000, section 14.59, is amended 
  1.24  to read: 
  1.25     14.59 [INFORMAL DISPOSITION.] 
  1.26     Informal disposition may also be made of any contested case 
  2.1   by binding arbitration, stipulation, agreed settlement, consent 
  2.2   order or default. 
  2.3      Sec. 3.  Minnesota Statutes 2000, section 14.61, is amended 
  2.4   to read: 
  2.5      14.61 [~~AGENCY~~ FINAL DECISION IN CONTESTED CASE.] 
  2.6      Subdivision 1.  [FILING OF EXCEPTIONS.] In all contested 
  2.7   cases the decision of the officials of the agency who are to 
  2.8   render the final decision shall not be made until the report of 
  2.9   the administrative law judge as required by sections 14.48 to 
  2.10  14.56, has been made available to parties to the proceeding for 
  2.11  at least ten days and an opportunity has been afforded to each 
  2.12  party adversely affected to file exceptions and present argument 
  2.13  to a majority of the officials who are to render the decision.  
  2.14  This section does not apply to a contested case under which the 
  2.15  report or order of the administrative law judge constitutes the 
  2.16  final decision in the case. 
  2.17     Subd. 2.  [CLOSURE OF RECORD.] In all contested cases where 
  2.18  officials of the agency render the final decision, the hearing 
  2.19  record must close upon receipt of the administrative law judge's 
  2.20  report unless a party files exceptions to the report under 
  2.21  subdivision 1.  If exceptions are filed, the hearing record must 
  2.22  close after presentation of any argument relating to those 
  2.23  exceptions or upon expiration of the deadline for doing so.  The 
  2.24  agency shall notify the parties and the presiding administrative 
  2.25  law judge of the date when the hearing record closed.  In all 
  2.26  contested cases where the report or order of the administrative 
  2.27  law judge constitutes the final decision in the case, the 
  2.28  hearing record must close as ordered in writing by the presiding 
  2.29  administrative law judge. 
  2.30     Sec. 4.  Minnesota Statutes 2000, section 14.62, 
  2.31  subdivision 1, is amended to read: 
  2.32     Subdivision 1.  [WRITING REQUIRED.] Every decision and 
  2.33  order rendered by an agency in a contested case shall be in 
  2.34  writing, shall be based on the record and shall include the 
  2.35  agency's findings of fact and conclusions on all material 
  2.36  issues.  A decision or order that rejects or modifies a finding 
  3.1   of fact, conclusion, or recommendation contained in the report 
  3.2   of the administrative law judge required under sections 14.48 to 
  3.3   14.56, must include the reasons for each rejection or 
  3.4   modification and a citation to the evidence in the hearing 
  3.5   record that supports the rejection or modification.  A copy of 
  3.6   the decision and order shall be served upon each party or the 
  3.7   party's representative and the administrative law judge by first 
  3.8   class mail. 
  3.9      Sec. 5.  Minnesota Statutes 2000, section 14.62, is amended 
  3.10  by adding a subdivision to read: 
  3.11     Subd. 2a.  [ADMINISTRATIVE LAW JUDGE DECISION FINAL; 
  3.12  EXCEPTION.] Unless otherwise provided by law, the report or 
  3.13  order of the administrative law judge constitutes the final 
  3.14  decision in the case unless the agency modifies or rejects it 
  3.15  under subdivision 1 within 90 days after the record of the 
  3.16  proceeding closes under section 14.61.  In all contested cases 
  3.17  where the report or order of the administrative law judge 
  3.18  constitutes the final decision in the case, the administrative 
  3.19  law judge shall issue findings of fact, conclusions, and an 
  3.20  order within 90 days after the hearing record closes under 
  3.21  section 14.61. 
  3.22     Sec. 6.  Minnesota Statutes 2000, section 14.63, is amended 
  3.23  to read: 
  3.24     14.63 [APPLICATION.] 
  3.25     Any person aggrieved by a final decision in a contested 
  3.26  case is entitled to judicial review of the decision under the 
  3.27  provisions of sections 14.63 to 14.68, but nothing in sections 
  3.28  14.63 to 14.68 shall be deemed to prevent resort to other means 
  3.29  of review, redress, relief, or trial de novo provided by law.  A 
  3.30  petition for a writ of certiorari by an aggrieved person for 
  3.31  judicial review under sections 14.63 to 14.68 must be filed with 
  3.32  the court of appeals and served on the agency not more than 30 
  3.33  days after the party receives the final decision and order of 
  3.34  the agency.  Sections 572.08 to 572.30 govern judicial review of 
  3.35  arbitration awards entered under section 14.57. 
  3.36     Sec. 7.  [REPEALER.] 
  4.1      Minnesota Statutes 2000, section 14.62, subdivision 2, is 
  4.2   repealed. 
  4.3      Sec. 8.  [EFFECTIVE DATE; APPLICATION.] 
  4.4      Sections 1 to 7 are effective August 1, 2002, and apply to 
  4.5   contested case proceedings initiated on or after that date.