1.1                          A bill for an act 
  1.2             relating to state government; revising procedures used 
  1.3             for adoption and review of administrative rules; 
  1.4             amending Minnesota Statutes 1994, sections 3.842, 
  1.5             subdivisions 2, 5, and by adding subdivisions; 14.03, 
  1.6             subdivision 3; 14.04; 14.05, subdivisions 1, 2, and by 
  1.7             adding a subdivision; 14.06; 14.08; 14.09; 14.12; 
  1.8             14.131; 14.1311; 14.18, subdivision 1; 14.365; 14.38, 
  1.9             subdivisions 1, 7, 8, and 9; 14.46, subdivisions 1, 3, 
  1.10            and by adding a subdivision; 14.47, subdivisions 1, 2, 
  1.11            and 6; 14.50; 14.51; 17.84; and 84.027, by adding a 
  1.12            subdivision; proposing coding for new law in Minnesota 
  1.13            Statutes, chapters 3; 4; and 14; repealing Minnesota 
  1.14            Statutes 1994, sections 3.842, subdivision 4; 3.844; 
  1.15            3.845; 3.846; 14.05, subdivisions 2 and 3; 14.06; 
  1.16            14.10; 14.11; 14.115; 14.14; 14.15; 14.16; 14.19; 
  1.17            14.20; 14.22; 14.225; 14.23; 14.235; 14.24; 14.25; 
  1.18            14.26; 14.27; 14.28; 14.29; 14.30; 14.305; 14.31; 
  1.19            14.32; 14.33; 14.34; 14.35; 14.36; 14.38, subdivisions 
  1.20            4, 5, and 6; and 17.83. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 1994, section 3.842, 
  1.23  subdivision 2, is amended to read: 
  1.24     Subd. 2.  [JURISDICTION.] The jurisdiction of the 
  1.25  commission includes all rules as defined in section 14.02, 
  1.26  subdivision 4.  The commission also has jurisdiction of rules 
  1.27  which are filed with the secretary of state in accordance with 
  1.28  ~~section~~ sections 14.38, subdivisions 5, 6, 7, 8, 9, and 11 ~~or~~ 
  1.29  ~~were filed with the secretary of state in accordance with the~~ 
  1.30  ~~provisions of section 14.38, subdivisions 5 to 9, which were in~~ 
  1.31  ~~effect on the date the rules were filed~~; and 14.386.  
  1.32     The commission may periodically review statutory exemptions 
  1.33  to the rulemaking provisions of this chapter.  
  2.1      Sec. 2.  Minnesota Statutes 1994, section 3.842, is amended 
  2.2   by adding a subdivision to read: 
  2.3      Subd. 4a.  [OBJECTIONS TO RULES.] (a) The legislative 
  2.4   commission to review administrative rules may object to all or 
  2.5   some portion of a rule because the commission considers it to be 
  2.6   beyond the procedural or substantive authority delegated to the 
  2.7   adopting agency.  A standing committee of the house of 
  2.8   representatives or the senate with jurisdiction over the subject 
  2.9   matter of the rule may object to all or some portion of a rule 
  2.10  for any reason. 
  2.11     (b) The commission or committee must file an objection in 
  2.12  the office of the secretary of state.  The filed objection must 
  2.13  contain a concise statement of the commission's or committee's 
  2.14  reasons for its action.  
  2.15     (c) The secretary of state shall affix to each objection a 
  2.16  certification of the date and time of its filing and as soon as 
  2.17  practicable shall transmit a certified copy of it to the agency 
  2.18  issuing the rule in question and the revisor of statutes.  The 
  2.19  secretary of state shall also maintain a permanent register open 
  2.20  to public inspection of all objections by the commission or a 
  2.21  standing committee.  
  2.22     (d) The legislative commission to review administrative 
  2.23  rules or the standing committee objecting to the rule shall 
  2.24  publish an objection filed pursuant to this section in the next 
  2.25  issue of the State Register.  The revisor of statutes shall 
  2.26  indicate its existence adjacent to the rule in question when 
  2.27  that rule is published in Minnesota Rules. 
  2.28     (e) Within 14 days after receiving a copy of the filed 
  2.29  objection, the issuing agency shall respond in writing to the 
  2.30  commission or objecting committee.  After receipt of the 
  2.31  response, the commission or objecting committee may withdraw or 
  2.32  modify its objection.  
  2.33     (f) After the filing of an objection by the commission or a 
  2.34  standing committee that is not subsequently withdrawn, if the 
  2.35  validity of the rule is challenged in a judicial proceeding on a 
  2.36  ground the court may consider under otherwise applicable 
  3.1   standards of judicial review which is the same as the ground for 
  3.2   the commission or committee objection, the burden is upon the 
  3.3   agency to establish that the rule is not invalid on that ground. 
  3.4      (g) The failure of the commission or a committee to object 
  3.5   to a rule is not an implied legislative authorization of its 
  3.6   procedural or substantive validity.  
  3.7      Sec. 3.  Minnesota Statutes 1994, section 3.842, 
  3.8   subdivision 5, is amended to read: 
  3.9      Subd. 5.  [~~BIENNIAL~~ ANNUAL REPORT.] The commission shall 
  3.10  ~~make a biennial~~ file an annual report ~~to~~ with the legislature 
  3.11  and governor ~~of its activities and include its recommendations~~ 
  3.12  ~~to promote adequate and proper rules and public understanding of~~ 
  3.13  ~~the rules~~. 
  3.14     Sec. 4.  Minnesota Statutes 1994, section 3.842, is amended 
  3.15  by adding a subdivision to read: 
  3.16     Subd. 8.  [EXEMPT RULES.] By January 15 of each 
  3.17  odd-numbered year, the commission shall report to the 
  3.18  legislature on rules that are specifically exempted from chapter 
  3.19  14 by other law.  The commission shall recommend repealing any 
  3.20  exemption that it believes is no longer justified. 
  3.21     Sec. 5.  [3.9215] [STANDING COMMITTEE; OBJECTIONS TO 
  3.22  ADMINISTRATIVE RULES.] 
  3.23     A standing committee of the house of representatives or the 
  3.24  senate having jurisdiction over the subject matter of an agency 
  3.25  rule may object to the rule under section 3.842, subdivision 4a. 
  3.26     Sec. 6.  [4.038] [RULE REVIEW BY GOVERNOR.] 
  3.27     Subdivision 1.  [SUSPENSION OF ADOPTED RULES.] The governor 
  3.28  may suspend all or a severable portion of a previously adopted 
  3.29  rule of an agency by publishing notice of the suspension in the 
  3.30  State Register.  The notice must include the reasons for the 
  3.31  suspension.  The inadequacy of the statement of reasons is not 
  3.32  grounds for a judicial challenge of the suspension.  This 
  3.33  authority applies only to the extent that the agency itself 
  3.34  would have authority, through rulemaking, to take such action.  
  3.35  If the governor suspends a rule or portion of a rule under this 
  3.36  section, the governor shall place before the next regular 
  4.1   session of the legislature a bill to repeal the suspended rule 
  4.2   or portion of the rule.  If the bill is not enacted in that 
  4.3   year's regular session:  (1) the rule or portion of the rule is 
  4.4   effective again upon adjournment of the session, unless the 
  4.5   agency has repealed it; and (2) the same governor may not veto 
  4.6   the same rule or the same portion of the rule again. 
  4.7      Subd. 2.  [TERMINATION OF RULE PROCEEDINGS.] The governor 
  4.8   may summarily terminate any pending rulemaking proceeding by an 
  4.9   executive order to that effect, stating in the order the reasons 
  4.10  for the action.  The executive order must be filed in the office 
  4.11  of the secretary of state, which shall promptly forward a 
  4.12  certified copy to the agency and the revisor of statutes.  An 
  4.13  executive order terminating a rulemaking proceeding becomes 
  4.14  effective on the date it is filed and must be published in the 
  4.15  next issue of the State Register. 
  4.16     Subd. 3.  [EXCLUSION.] The governor's authority in this 
  4.17  section does not apply to an adopted rule or a pending rule of 
  4.18  the public utilities commission, the ethical practices board, 
  4.19  the Minnesota municipal board, the capitol area architectural 
  4.20  and planning board, the tax court, the board of pardons, the 
  4.21  state board of investment, or a constitutional officer. 
  4.22     Sec. 7.  Minnesota Statutes 1994, section 14.03, 
  4.23  subdivision 3, is amended to read: 
  4.24     Subd. 3.  [RULEMAKING PROCEDURES.] The definition of a rule 
  4.25  in section 14.02, subdivision 4, does not include: 
  4.26     (1) rules concerning only the internal management of the 
  4.27  agency ~~or other agencies~~ that do not directly and substantially 
  4.28  affect the rights of or procedures available to any segment of 
  4.29  the public; 
  4.30     ~~(2) rules of the commissioner of corrections relating to~~ 
  4.31  ~~the placement and supervision of inmates serving a supervised~~ 
  4.32  ~~release term, the internal management of institutions under the~~ 
  4.33  ~~commissioner's control, and rules adopted under section 609.105~~ 
  4.34  ~~governing the inmates of those institutions;~~ 
  4.35     (2) a rule that establishes criteria or guidelines to be 
  4.36  used by the staff of an agency in performing audits, 
  5.1   investigations, or inspections, settling commercial disputes, 
  5.2   negotiating commercial arrangements, or in the defense, 
  5.3   prosecution, or settlement of cases; 
  5.4      (3) a rule that only establishes specific prices to be 
  5.5   charged for particular goods or services sold by an agency; 
  5.6      (4) a rule concerning only the physical servicing, 
  5.7   maintenance, or care of agency owned or operated facilities or 
  5.8   property; 
  5.9      (5) a rule relating only to the use of a particular 
  5.10  facility or property owned, operated, or maintained by the state 
  5.11  or any of its subdivisions, if the substance of the rule is 
  5.12  adequately indicated by means of signs or signals to persons who 
  5.13  use the facility or property; 
  5.14     (6) a rule concerning only inmates of a correctional or 
  5.15  detention facility, students enrolled in a state educational 
  5.16  institution, or patients admitted to a hospital, if adopted by 
  5.17  that facility, institution, or hospital; 
  5.18     (7) an agency budget; 
  5.19     (8) the terms of a collective bargaining agreement; 
  5.20     ~~(3)~~ (9) rules relating to weight limitations on the use of 
  5.21  highways when the substance of the rules is indicated to the 
  5.22  public by means of signs; 
  5.23     ~~(4)~~ (10) opinions of the attorney general; 
  5.24     ~~(5)~~ (11) the systems architecture plan and long-range plan 
  5.25  of the state education management information system provided by 
  5.26  section 121.931; 
  5.27     ~~(6)~~ (12) the data element dictionary and the annual data 
  5.28  acquisition calendar of the department of education to the 
  5.29  extent provided by section 121.932; 
  5.30     ~~(7)~~ (13) the occupational safety and health standards 
  5.31  provided in section 182.655; 
  5.32     ~~(8)~~ (14) revenue notices and tax information bulletins of 
  5.33  the commissioner of revenue; or 
  5.34     ~~(9)~~ (15) uniform conveyancing forms adopted by the 
  5.35  commissioner of commerce under section 507.09. 
  5.36     Sec. 8.  Minnesota Statutes 1994, section 14.04, is amended 
  6.1   to read: 
  6.2      14.04 [AGENCY ORGANIZATION; GUIDEBOOK.] 
  6.3      To assist interested persons dealing with it, each agency 
  6.4   shall, in a manner prescribed by the commissioner of 
  6.5   administration, prepare a description of its organization, 
  6.6   stating the ~~process whereby~~ general course and method of its 
  6.7   operations and where and how the public may obtain information 
  6.8   or make submissions or requests.  The commissioner of 
  6.9   administration shall publish these descriptions ~~at least once~~ 
  6.10  ~~every four years commencing in 1981~~ in a guidebook of state 
  6.11  agencies.  Notice of the publication of the guidebook shall be 
  6.12  published in the State Register and given in newsletters, 
  6.13  newspapers, or other publications, or through other means of 
  6.14  communication. 
  6.15     Sec. 9.  Minnesota Statutes 1994, section 14.05, 
  6.16  subdivision 1, is amended to read: 
  6.17     Subdivision 1.  [AUTHORITY TO ADOPT ORIGINAL RULES 
  6.18  RESTRICTED.] Each agency shall adopt, amend, suspend, or repeal 
  6.19  its rules in accordance with the procedures specified in 
  6.20  ~~sections 14.001 to 14.69~~ this chapter, and only pursuant to 
  6.21  authority delegated by law and in full compliance with its 
  6.22  duties and obligations.  If a law authorizing rules is repealed, 
  6.23  the rules adopted pursuant to that law are automatically 
  6.24  repealed on the effective date of the law's repeal unless there 
  6.25  is another law authorizing the rules.  ~~Except as provided in~~ 
  6.26  ~~section 14.06, sections 14.001 to 14.69 shall not be authority~~ 
  6.27  ~~for an agency to adopt, amend, suspend, or repeal rules.~~ 
  6.28     Sec. 10.  Minnesota Statutes 1994, section 14.05, 
  6.29  subdivision 2, is amended to read: 
  6.30     Subd. 2.  [AUTHORITY TO MODIFY PROPOSED RULE.] (a) An 
  6.31  agency may modify a proposed rule in accordance with the 
  6.32  procedures of the administrative procedure act.  However, an 
  6.33  agency may not modify a proposed rule so that it is 
  6.34  substantially different from the proposed rule in the notice of 
  6.35  ~~intent to adopt rules~~ proposed rule adoption. 
  6.36     (b) A modification does not make a proposed rule 
  7.1   substantially different if: 
  7.2      (1) the differences are within the scope of the matter 
  7.3   announced in the notice of intent to adopt or notice of hearing 
  7.4   and are in character with the issues raised in that notice; 
  7.5      (2) the differences are a logical outgrowth of the contents 
  7.6   of the notice of intent to adopt or notice of hearing and the 
  7.7   comments submitted in response to the notice; and 
  7.8      (3) the notice of intent to adopt or notice of hearing 
  7.9   provided fair warning that the outcome of that rulemaking 
  7.10  proceeding could be the rule in question. 
  7.11     (c) In determining whether the notice of intent to adopt or 
  7.12  notice of hearing provided fair warning that the outcome of that 
  7.13  rulemaking proceeding could be the rule in question the 
  7.14  following factors must be considered: 
  7.15     (1) the extent to which persons who will be affected by the 
  7.16  rule should have understood that the rulemaking proceeding on 
  7.17  which it is based could affect their interests; 
  7.18     (2) the extent to which the subject matter of the rule or 
  7.19  issues determined by the rule are different from the subject 
  7.20  matter or issues contained in the notice of intent to adopt or 
  7.21  notice of hearing; and 
  7.22     (3) the extent to which the effects of the rule differ from 
  7.23  the effects of the proposed rule contained in the notice of 
  7.24  intent to adopt or notice of hearing.  
  7.25     Sec. 11.  Minnesota Statutes 1994, section 14.05, is 
  7.26  amended by adding a subdivision to read: 
  7.27     Subd. 5.  [REVIEW AND REPEAL OF RULES.] By December 1 of 
  7.28  each year, an agency shall submit a list of all the rules of the 
  7.29  agency that are obsolete and should be repealed to the governor, 
  7.30  the legislative commission to review administrative rules, the 
  7.31  house and senate standing committees with jurisdiction, and the 
  7.32  revisor of statutes.  The list must also include an explanation 
  7.33  of why the rule is obsolete and the agency's timetable for 
  7.34  repeal. 
  7.35     Sec. 12.  Minnesota Statutes 1994, section 14.06, is 
  7.36  amended to read: 
  8.1      14.06 [REQUIRED RULES.] 
  8.2      (a) Each agency shall adopt rules, in the form prescribed 
  8.3   by the revisor of statutes, setting forth the nature and 
  8.4   requirements of all formal and informal procedures related to 
  8.5   the administration of official agency duties to the extent that 
  8.6   those procedures directly affect the rights of or procedures 
  8.7   available to the public.  
  8.8      (b) Upon request of any person, each agency shall, as soon 
  8.9   as feasible and to the extent practicable, adopt rules to 
  8.10  supersede principles of law or policy lawfully declared by the 
  8.11  agency as the basis for its decisions in particular cases it 
  8.12  intends to rely on as precedents in future cases.  This 
  8.13  paragraph applies only to the extent that the agency has 
  8.14  authority, other than under this paragraph, to adopt rules on 
  8.15  the subject matter of the principles declared in the particular 
  8.16  cases. 
  8.17     Sec. 13.  Minnesota Statutes 1994, section 14.08, is 
  8.18  amended to read: 
  8.19     14.08 [REVISOR OF STATUTES APPROVAL OF RULE FORM.] 
  8.20     ~~(a) Two copies of a rule adopted pursuant to the provisions~~ 
  8.21  ~~of section 14.26 or 14.32 shall be submitted by the agency to~~ 
  8.22  ~~the attorney general.  The attorney general shall send one copy~~ 
  8.23  ~~of the rule to the revisor on the same day as it is submitted by~~ 
  8.24  ~~the agency under section 14.26 or 14.32.  Within five days after~~ 
  8.25  ~~receipt of the rule, excluding weekends and holidays, the~~ 
  8.26  ~~revisor shall either return the rule with a certificate of~~ 
  8.27  ~~approval of the form of the rule to the attorney general or~~ 
  8.28  ~~notify the attorney general and the agency that the form of the~~ 
  8.29  ~~rule will not be approved.~~  
  8.30     ~~If the attorney general disapproves a rule, the agency may~~ 
  8.31  ~~modify it and the agency shall submit two copies of the modified~~ 
  8.32  ~~rule to the attorney general who shall send a copy to the~~ 
  8.33  ~~revisor for approval as to form as described in this paragraph.~~ 
  8.34     ~~(b)~~ One copy of a rule to be adopted ~~after a public hearing~~ 
  8.35  under section 14.173 shall be submitted by the agency to the 
  8.36  revisor for approval of the form of the rule.  Within five 
  9.1   working days after receipt of the rule, the revisor shall either 
  9.2   return the rule with a certificate of approval to the agency or 
  9.3   notify the agency that the form of the rule will not be approved.
  9.4      ~~(c)~~ If the revisor refuses to approve the form of the rule, 
  9.5   the revisor's notice shall revise the rule so it is in the 
  9.6   correct form.  
  9.7      ~~(d) The attorney general shall assess an agency for the~~ 
  9.8   ~~attorney general's actual cost of processing rules under this~~ 
  9.9   ~~section.  The agency shall pay the attorney general's~~ 
  9.10  ~~assessments using the procedures of section 8.15.  Each agency~~ 
  9.11  ~~shall include in its budget money to pay the attorney general's~~ 
  9.12  ~~assessments.  Receipts from the assessment must be deposited in~~ 
  9.13  ~~the state treasury and credited to the general fund.~~ 
  9.14     Sec. 14.  Minnesota Statutes 1994, section 14.09, is 
  9.15  amended to read: 
  9.16     14.09 [PETITION FOR ADOPTION OF RULE.] 
  9.17     Any ~~interested~~ person may petition an agency requesting the 
  9.18  adoption~~, suspension, amendment or repeal~~ of ~~any~~ a rule.  The 
  9.19  petition shall be specific as to what action is requested and 
  9.20  the need for the action.  Upon receiving a petition an agency 
  9.21  shall have 60 days in which to ~~make a specific and detailed~~ 
  9.22  ~~reply in writing as to its planned disposition of the request.~~  
  9.23  ~~If the agency states its intention to hold a public hearing on~~ 
  9.24  ~~the subject of the request, it shall proceed according to~~ 
  9.25  ~~sections 14.05 to 14.36.~~: 
  9.26     (1) deny the petition in writing, stating its reasons; 
  9.27     (2) initiate rulemaking proceedings under this chapter; or 
  9.28     (3) if otherwise lawful, adopt a rule.  
  9.29  The attorney general shall prescribe by rule the form for all 
  9.30  petitions under this section and may prescribe further 
  9.31  procedures for their submission, consideration, and disposition. 
  9.32     Sec. 15.  [14.101] [ADVICE ON POSSIBLE RULES BEFORE NOTICE 
  9.33  OF PROPOSED RULE ADOPTION.] 
  9.34     (a) In addition to seeking information by other methods, an 
  9.35  agency, at least 60 days before publication of a notice of 
  9.36  proposed rule adoption under section 14.141, shall solicit 
 10.1   comments from the public on a subject matter of possible 
 10.2   rulemaking under active consideration within the agency by 
 10.3   causing notice of possible rulemaking to be published in the 
 10.4   State Register.  This notice must be published no later than 60 
 10.5   days after the effective date of a law granting new or 
 10.6   additional rulemaking authority to an agency.  The notice must 
 10.7   include a description of the subject matter of the proposal, 
 10.8   including the possible rule's purpose and motivation; the types 
 10.9   of groups and individuals likely to be affected; cite the 
 10.10  statutory authority for the proposed rule; and indicate where, 
 10.11  when, and how persons may comment on the proposal and how drafts 
 10.12  of any proposal may be obtained from the agency.  If the agency 
 10.13  intends to form an advisory task force on the matter, the notice 
 10.14  must include a list of the persons or associations the agency 
 10.15  intends to invite to serve on the task force, an indication of 
 10.16  when the agency intends to form the task force, and when the 
 10.17  agency expects the task force to complete its work.  The agency 
 10.18  must publish as part of this notice the names of all persons or 
 10.19  associations who have agreed to be on such a task force at the 
 10.20  time the notice is submitted to the State Register for 
 10.21  publication.  Within three days after publication of the notice 
 10.22  in the State Register, the agency shall mail a copy of the 
 10.23  notice to each person on the list established under section 
 10.24  14.141, subdivision 1. 
 10.25     (b) In addition to publishing notice in the State Register, 
 10.26  the agency must make reasonable efforts, to the extent this can 
 10.27  be done in a cost-effective manner, to notify classes of people 
 10.28  who probably will be affected by the proposed rule by giving 
 10.29  notice of its intention in newsletters, newspapers, or other 
 10.30  publications, or through other means of communication.  The 
 10.31  insufficiency of the additional notice under this paragraph is 
 10.32  not grounds for invalidating the rule. 
 10.33     Sec. 16.  Minnesota Statutes 1994, section 14.12, is 
 10.34  amended to read: 
 10.35     14.12 [~~DEADLINE TO PUBLISH NOTICE~~ REPORT ON DELAY IN 
 10.36  ADOPTION.] 
 11.1      ~~The agency shall, within 180 days after the effective date~~ 
 11.2   ~~of a law requiring rules to be promulgated, unless otherwise~~ 
 11.3   ~~specified by law, publish an appropriate notice of intent to~~ 
 11.4   ~~adopt a rule in accordance with sections 14.05 to 14.36.  If an~~ 
 11.5   ~~agency has not given this notice, it shall report to the~~ 
 11.6   ~~legislative commission to review administrative rules, other~~ 
 11.7   ~~appropriate committees of the legislature, and the governor its~~ 
 11.8   ~~failure to do so, and the reasons for that failure.~~  If an 
 11.9   agency has not finally adopted a rule within 12 months of the 
 11.10  effective date of a law requiring rules to be adopted, the 
 11.11  agency must report to the legislative commission to review 
 11.12  administrative rules, the appropriate policy committees of the 
 11.13  legislature, and the governor.  The report must include: 
 11.14     (1) the current status of the proposed rules; 
 11.15     (2) a summary of procedural requirements that have 
 11.16  prevented the agency from finally adopting the rules; 
 11.17     (3) a discussion of unresolved policy issues in dispute 
 11.18  between the agency and persons interested in the rules; 
 11.19     (4) the text of proposed legislation, if any is needed, 
 11.20  that would give the agency further policy guidance needed to 
 11.21  complete rulemaking or that would make changes in statute 
 11.22  necessary to implement the affected law in accordance with 
 11.23  legislative intent without rulemaking. 
 11.24     Sec. 17.  Minnesota Statutes 1994, section 14.131, is 
 11.25  amended to read: 
 11.26     14.131 [STATEMENT OF NEED AND REASONABLENESS.] 
 11.27     ~~Before~~ At the time the agency ~~orders the publication of a~~ 
 11.28  ~~rulemaking~~ publishes notice ~~required by section 14.14,~~ 
 11.29  ~~subdivision 1a~~ of rule adoption under section 14.141, the agency 
 11.30  must ~~prepare, review, and~~ make available ~~for public review~~ a 
 11.31  statement of the need for and reasonableness of the proposed 
 11.32  rule ~~and a fiscal note if required by section 3.982~~.  The 
 11.33  statement of need and reasonableness must ~~be prepared under~~ 
 11.34  ~~rules adopted by the chief administrative law judge.~~ include a 
 11.35  citation to the statutory authority to adopt the rule.  The 
 11.36  statement must also:  (1) summarize the need and reasons for the 
 12.1   proposed rule; and (2) describe the classes of people who 
 12.2   probably will be affected by the proposed rule.  The agency must 
 12.3   make this statement available for review at the agency's office 
 12.4   and shall provide a copy of the statement on request.  The 
 12.5   insufficiency or inaccuracy of this statement is not grounds for 
 12.6   invalidating the rule if the agency has made a good faith effort 
 12.7   to comply with this paragraph. 
 12.8      The agency shall send a copy of the statement of need and 
 12.9   reasonableness to the legislative commission to review 
 12.10  administrative rules when it becomes available ~~for public review~~.
 12.11     Sec. 18.  Minnesota Statutes 1994, section 14.1311, is 
 12.12  amended to read: 
 12.13     14.1311 [NOTICE TO COMMITTEES FOR FEES FIXED BY RULE.] 
 12.14     Before an agency submits a notice of ~~hearing~~ rule adoption 
 12.15  to the State Register on proposed rules that establish or adjust 
 12.16  fees, the agency shall comply with section ~~16A.128~~ 16A.1285, 
 12.17  subdivision ~~2a~~ 4. 
 12.18     Sec. 19.  [14.141] [NOTICE OF PROPOSED RULE ADOPTION.] 
 12.19     Subdivision 1.  [LIST OF PERSONS REGISTERED TO RECEIVE 
 12.20  NOTICE.] Each agency shall maintain a list of all persons who 
 12.21  have registered with the agency for the purpose of receiving 
 12.22  notice of proposed rule adoptions. 
 12.23     Subd. 2.  [TIMING AND CONTENT.] (a) At least 30 days before 
 12.24  the adoption of a rule an agency shall publish notice of its 
 12.25  contemplated action in the State Register.  The notice of 
 12.26  proposed rule adoption must include: 
 12.27     (1) a short explanation of the purpose of the proposed rule 
 12.28  and a notice that the statement of need and reasonableness 
 12.29  prepared under section 14.131 is available from the agency; 
 12.30     (2) the specific legal authority authorizing the proposed 
 12.31  rule; 
 12.32     (3) subject to subdivision 7, the text of the proposed 
 12.33  rule; 
 12.34     (4) where, when, and how persons may present their views on 
 12.35  the proposed rule; 
 12.36     (5) where, when, and how persons may demand an oral 
 13.1   proceeding on the proposed rule if the notice does not already 
 13.2   provide for one; and 
 13.3      (6) an explanation of how a regulatory analysis may be 
 13.4   requested under section 14.171. 
 13.5      (b) In addition to publishing notice in the State Register, 
 13.6   the agency must make reasonable efforts, to the extent this can 
 13.7   be done in a cost-effective manner, to notify classes of people 
 13.8   who probably will be affected by the proposed rule.  The 
 13.9   insufficiency of the additional notice under this paragraph is 
 13.10  not grounds for invalidating the rule if the agency has made a 
 13.11  good faith effort to comply with this paragraph. 
 13.12     Subd. 3.  [FORM APPROVAL OF RULE.] Before publishing notice 
 13.13  of proposed rule adoption in the State Register, the agency 
 13.14  shall submit the proposed rule to the revisor of statutes for 
 13.15  approval of form. 
 13.16     Subd. 4.  [DUAL NOTICE.] The notice of proposed rule 
 13.17  adoption may give notice of an oral proceeding, and of the 
 13.18  agency's intention to cancel the oral proceeding if an oral 
 13.19  proceeding is not required.  The agency may not schedule the 
 13.20  oral proceeding earlier than ten days after the end of the 
 13.21  comment period under section 14.142, subdivision 1.  
 13.22     Subd. 5.  [EXTENSION OF ORAL PROCEEDING DEADLINE.] The 
 13.23  notice of proposed rule adoption must state that if a regulatory 
 13.24  analysis has not been done and is later required, another notice 
 13.25  may be published extending the deadline for requesting an oral 
 13.26  proceeding, rescheduling any previously scheduled oral hearing, 
 13.27  or extending the deadline for presenting views to the agency. 
 13.28     Subd. 6.  [REQUIRED MAILING.] Within three days after its 
 13.29  publication in the State Register, the agency shall mail a copy 
 13.30  of the notice of proposed rule adoption to each person on the 
 13.31  list established under subdivision 1, and to any other person 
 13.32  who has made a timely request to the agency for a mailed copy of 
 13.33  the notice.  An agency may not charge persons for the mailed 
 13.34  copies. 
 13.35     Subd. 7.  [OMISSION OF RULE TEXT.] (a) The governor may 
 13.36  authorize an agency to omit from the notice of proposed rule 
 14.1   adoption the text of any proposed rule, the publication of which 
 14.2   would be unduly cumbersome, expensive, or otherwise inexpedient 
 14.3   if: 
 14.4      (1) knowledge of the rule is likely to be important to only 
 14.5   a small class of persons; 
 14.6      (2) the notice of proposed rule adoption states that a free 
 14.7   copy of the entire rule is available upon request to the agency; 
 14.8   and 
 14.9      (3) the notice of proposed rule adoption states in detail 
 14.10  the specific subject matter of the omitted rule, cites the 
 14.11  statutory authority for the proposed rule, and details the 
 14.12  proposed rule's purpose and motivation. 
 14.13     (b) An agency may incorporate text by reference as 
 14.14  permitted by section 14.07. 
 14.15     Sec. 20.  [14.142] [PUBLIC PARTICIPATION.] 
 14.16     Subdivision 1.  [COMMENT PERIOD.] For at least 30 days 
 14.17  after publication of the notice of proposed rule adoption, an 
 14.18  agency shall afford persons the opportunity to submit in 
 14.19  writing, argument, data, and views on the proposed rule.  
 14.20     Subd. 2.  [ORAL PROCEEDINGS.] (a) An agency shall schedule 
 14.21  an oral proceeding on a proposed rule if, within 30 days after 
 14.22  the published notice of proposed rule adoption, a written 
 14.23  request for an oral proceeding is submitted to the agency by the 
 14.24  legislative commission to review administrative rules, a 
 14.25  standing committee of the house of representatives or the senate 
 14.26  with jurisdiction over the subject matter of the rule, the 
 14.27  governor, a political subdivision, or 15 persons.  At that 
 14.28  proceeding, persons may present oral argument, data, and views 
 14.29  on the proposed rule.  To be counted as one of 15 persons 
 14.30  requesting an oral proceeding, a written request must include 
 14.31  the requester's name and address.  
 14.32     (b) An oral proceeding on a proposed rule, if required, may 
 14.33  not be held earlier than 30 days after notice of its location 
 14.34  and time is published in the State Register. 
 14.35     (c) If requested by the agency, the governor, 50 persons or 
 14.36  15 corporations, partnerships, or associations submitting a 
 15.1   written request to the agency, a standing committee of the house 
 15.2   of representatives or the senate with jurisdiction over the 
 15.3   subject matter of the rule, or the legislative commission to 
 15.4   review administrative rules, a neutral presiding officer 
 15.5   assigned by the chief administrative law judge shall preside at 
 15.6   the oral proceeding.  Otherwise, the agency, a member of the 
 15.7   agency, or another presiding officer designated by the agency 
 15.8   shall preside at a required oral proceeding on a proposed rule.  
 15.9   If the agency does not preside, the presiding official shall 
 15.10  prepare a memorandum for consideration by the agency summarizing 
 15.11  the contents of the presentations made at the oral proceeding.  
 15.12  A presiding officer assigned by the chief administrative law 
 15.13  judge shall prepare a report that includes findings, 
 15.14  conclusions, and recommendations on the degree to which the 
 15.15  proposed rule:  (1) complies with constitutional provisions; (2) 
 15.16  is within the statutory authority of the agency; and (3) has 
 15.17  been adopted in compliance with statutory rulemaking 
 15.18  procedures.  The report must include an evaluation of the 
 15.19  agency's additional efforts, as required under section 14.141, 
 15.20  subdivision 2, paragraph (b), to notify persons who might be 
 15.21  affected by the proposed rule.  Oral proceedings must be open to 
 15.22  the public and be recorded by stenographic or other means.  
 15.23     (d) Upon request, the agency shall provide the names of 
 15.24  persons who have made written requests for an opportunity to 
 15.25  make oral presentations on the proposed rule, where those 
 15.26  requests may be inspected, and where and when oral presentations 
 15.27  may be made. 
 15.28     Subd. 3.  [WITHDRAWAL OF HEARING REQUESTS.] If an oral 
 15.29  proceeding would have been required because of requests under 
 15.30  subdivision 2, paragraph (a), the agency has taken action that 
 15.31  may have caused requests for the oral proceeding to be 
 15.32  withdrawn, and requests that required the oral hearing have been 
 15.33  withdrawn, the agency must give written notice of that fact to 
 15.34  all persons who have requested the oral proceeding.  The notice 
 15.35  must explain why the request is being withdrawn, and must 
 15.36  include a description of any action the agency has taken or will 
 16.1   take that affected or may have affected the decision to withdraw 
 16.2   the request.  The notice and any written comments received by 
 16.3   the agency is part of the rulemaking record. 
 16.4      Sec. 21.  [14.171] [REGULATORY ANALYSIS.] 
 16.5      Subdivision 1.  [GENERAL REQUIREMENT.] An agency shall 
 16.6   issue a regulatory analysis of a proposed rule if, within 30 
 16.7   days after the published notice of proposed rule adoption, a 
 16.8   written request for the analysis is filed with the agency by the 
 16.9   legislative commission to review administrative rules, a 
 16.10  standing committee of the house of representatives or the senate 
 16.11  with jurisdiction over the subject matter of the rule, the 
 16.12  governor, a political subdivision, or 150 persons or 15 
 16.13  corporations, partnerships, or associations signing the 
 16.14  request.  To be counted as one of 150 persons or 15 
 16.15  corporations, partnerships, or associations requesting a 
 16.16  regulatory analysis, a written request must include the 
 16.17  requester's name and address. 
 16.18     Subd. 2.  [CONTENTS.] Except to the extent that the written 
 16.19  request expressly waives one or more of the following, the 
 16.20  regulatory analysis must contain:  
 16.21     (1) a description of the classes of persons who probably 
 16.22  will be affected by the proposed rule, including classes that 
 16.23  will bear the costs of the proposed rule and classes that will 
 16.24  benefit from the proposed rule; 
 16.25     (2) the probable costs to the classes of people, including 
 16.26  political subdivisions, who probably will be affected by the 
 16.27  proposed rule and to the state for implementation and 
 16.28  enforcement of the proposed rule and any anticipated effect on 
 16.29  state revenues; 
 16.30     (3) a determination of whether there are less costly 
 16.31  methods or less intrusive methods for achieving the purpose of 
 16.32  the proposed rule; and 
 16.33     (4) a description of any alternative methods for achieving 
 16.34  the purpose of the proposed rule that were seriously considered 
 16.35  by the agency, the reasons why they were rejected in favor of 
 16.36  the proposed rule, and an explanation of the agency's 
 17.1   determination that the balance between the net benefits and net 
 17.2   costs under the proposed rule is better for society than under 
 17.3   alternative methods that the agency rejected. 
 17.4      Subd. 3.  [AVAILABILITY OF SUMMARY.] A concise summary of 
 17.5   the regulatory analysis must be available to the public at least 
 17.6   ten days before the earliest of: 
 17.7      (1) the end of the period during which persons may make 
 17.8   written submissions on the proposed rule; 
 17.9      (2) the end of the period during which an oral proceeding 
 17.10  may be requested; or 
 17.11     (3) the date of any required oral proceeding on the 
 17.12  proposed rule.  
 17.13     Subd. 4.  [NOTICE OF RESCHEDULING.] If the period for 
 17.14  written submissions, the period for requesting an oral 
 17.15  proceeding, or the date of the oral proceeding must be 
 17.16  rescheduled in order to make the regulatory analysis available 
 17.17  at the times requested by subdivision 3, the agency must publish 
 17.18  notice to that effect in the State Register and mail notice as 
 17.19  required under section 14.141, subdivision 6.  This notice is 
 17.20  subject to all the public participation requirements contained 
 17.21  in section 14.142. 
 17.22     Subd. 5.  [EFFECT OF GOOD FAITH COMPLIANCE.] If the agency 
 17.23  has made a good faith effort to comply with the requirements of 
 17.24  this section, the rule may not be invalidated on the grounds 
 17.25  that the contents of the regulatory analysis are insufficient or 
 17.26  inaccurate.  
 17.27     Sec. 22.  [14.172] [CONCISE EXPLANATORY STATEMENT.] 
 17.28     Subdivision 1.  [TIMING AND CONTENT.] At the time it adopts 
 17.29  a rule, an agency shall issue a concise explanatory statement 
 17.30  containing:  
 17.31     (1) an indication of any change between the text of the 
 17.32  proposed rule contained in the published notice of proposed rule 
 17.33  adoption and the text of the rule as finally adopted, with the 
 17.34  reasons for any change; and 
 17.35     (2) its principal factual, legal, and policy reasons for 
 17.36  adopting the entire set of rules, as opposed to each individual 
 18.1   rule or provision, under consideration, including a statement of 
 18.2   how the agency has responded to major areas of comments on the 
 18.3   proposed rule.  
 18.4      The insufficiency or inaccuracy of the statement of how the 
 18.5   agency has responded to major areas of comments under this 
 18.6   subdivision is not grounds for invalidating the rule if the 
 18.7   agency has made a good faith effort to comply with this 
 18.8   subdivision. 
 18.9      Subd. 2.  [LIMIT ON REASONS.] Only the reasons contained in 
 18.10  the concise explanatory statement may be used by any party as 
 18.11  justification for the adoption of the rule in any proceeding in 
 18.12  which its validity is at issue. 
 18.13     Sec. 23.  [14.173] [ADOPTION AND FILING OF RULES.] 
 18.14     Subdivision 1.  [GENERAL REQUIREMENT.] (a) An agency may 
 18.15  not adopt a rule until the period for making written submissions 
 18.16  and oral presentations has expired.  
 18.17     (b) Before the adoption of a rule, an agency shall consider 
 18.18  the written submissions, presentations made at oral proceedings, 
 18.19  any memorandum summarizing oral proceedings, and any regulatory 
 18.20  analysis, provided for by this chapter.  
 18.21     (c) Within the scope of its delegated authority, an agency 
 18.22  may use its own experience, technical competence, specialized 
 18.23  knowledge, and judgment in the adoption of a rule.  
 18.24     (d) Before adoption of a rule, an agency shall submit the 
 18.25  rule to the revisor of statutes for approval of form under 
 18.26  section 14.08. 
 18.27     Subd. 2.  [FILING.] An agency shall file in the office of 
 18.28  the secretary of state each rule it adopts.  The filing must be 
 18.29  done as soon after adoption of the rule as is practicable.  At 
 18.30  the time of filing, each rule adopted must have attached to it 
 18.31  the explanatory statement required by section 14.172.  The 
 18.32  secretary of state shall affix to each rule and statement a 
 18.33  certification of the time and date of filing and keep a 
 18.34  permanent register open to public inspection of all filed rules 
 18.35  and attached explanatory statements.  In filing a rule, each 
 18.36  agency shall use a standard form prescribed by the secretary of 
 19.1   state.  
 19.2      The secretary of state shall transmit to the revisor of 
 19.3   statutes and to the legislative commission to review 
 19.4   administrative rules a certified copy of each filed rule as soon 
 19.5   after its filing as is practicable.  
 19.6      Sec. 24.  Minnesota Statutes 1994, section 14.18, 
 19.7   subdivision 1, is amended to read: 
 19.8      Subdivision 1.  [GENERALLY.] A rule is effective after it 
 19.9   has been subjected to all requirements described in sections 
 19.10  14.131 to ~~14.20~~ 14.173 and five working days after the later of: 
 19.11     (1) the notice of adoption is published in the State 
 19.12  Register; or 
 19.13     (2) its filing in the office of the secretary of state 
 19.14  unless a later date is required by law or specified in the 
 19.15  rule.  If the rule adopted is the same as the proposed rule, 
 19.16  publication may be made by publishing notice in the State 
 19.17  Register that the rule has been adopted as proposed and by 
 19.18  citing the prior publication.  If the rule adopted differs from 
 19.19  the proposed rule, the portions of the adopted rule which differ 
 19.20  from the proposed rule shall be included in the notice of 
 19.21  adoption together with a citation to the prior State Register 
 19.22  publication of the remainder of the proposed rule.  The nature 
 19.23  of the modifications must be clear to a reasonable person when 
 19.24  the notice of adoption is considered together with the State 
 19.25  Register publication of the proposed rule, except that 
 19.26  modifications may also be made which comply with the form 
 19.27  requirements of section 14.07, subdivision 7.  
 19.28     If the agency omitted from the notice of proposed rule 
 19.29  adoption the text of the proposed rule, as permitted by section 
 19.30  14.141, subdivision 7, paragraph (a), the governor may provide 
 19.31  that the notice of the adopted rule need not include the text of 
 19.32  any changes from the proposed rule.  However, the notice of 
 19.33  adoption must state in detail the substance of the changes made 
 19.34  from the proposed rule, and must state that a free copy of that 
 19.35  portion of the adopted rule that was the subject of the 
 19.36  rulemaking proceeding, not including any material adopted by 
 20.1   reference as permitted by section 14.07, is available upon 
 20.2   request to the agency. 
 20.3      Sec. 25.  Minnesota Statutes 1994, section 14.365, is 
 20.4   amended to read: 
 20.5      14.365 [OFFICIAL RULEMAKING RECORD.] 
 20.6      The agency shall maintain the official rulemaking record 
 20.7   for every rule adopted ~~pursuant to sections 14.05 to 14.36~~ under 
 20.8   this chapter.  The record and materials incorporated by 
 20.9   reference shall be available for public inspection.  Upon 
 20.10  judicial review, the record required by this section constitutes 
 20.11  the official ~~and exclusive~~ agency rulemaking record with respect 
 20.12  to ~~agency action on or judicial review of the~~ a rule.  Except as 
 20.13  provided in section 14.172, subdivision 2, or otherwise required 
 20.14  by a provision of law, the agency rulemaking record need not 
 20.15  constitute the exclusive basis for agency action on that rule or 
 20.16  for judicial review of it.  This section does not constitute 
 20.17  authority to introduce evidence in a court proceeding that is 
 20.18  not relevant to one of the grounds in section 14.45 upon which a 
 20.19  court may declare a rule invalid.  The record shall contain:  
 20.20     (1) copies of all publications in the State Register 
 20.21  pertaining to the rule; 
 20.22     (2) copies of any portions of the agency's public 
 20.23  rulemaking docket containing entries relating to the rule or the 
 20.24  proceeding upon which the rule is based; 
 20.25     (3) all written petitions, requests, submissions, or 
 20.26  comments received by the agency~~, the administrative law judge,~~ 
 20.27  ~~or the attorney general pertaining to the rule~~ and all other 
 20.28  materials considered by the agency in connection with the 
 20.29  formulation, proposal, or adoption of the rule or the proceeding 
 20.30  upon which the rule is based; 
 20.31     ~~(3)~~ (4) the statement of need and reasonableness for the 
 20.32  rule~~, if any~~; 
 20.33     ~~(4)~~ (5) the concise explanatory statement; 
 20.34     (6) any regulatory analysis prepared; 
 20.35     (7) the official transcript of ~~the hearing if one was~~ 
 20.36  ~~held~~ oral presentations made in the proceeding upon which the 
 21.1   rule is based, or the tape recording or stenographic record of 
 21.2   ~~the hearing~~ those presentations, if a transcript was not 
 21.3   prepared, and any memorandum prepared by a presiding official 
 21.4   summarizing the contents of those presentations; 
 21.5      ~~(5) the report of the administrative law judge, if any;~~ 
 21.6      ~~(6) the rule in the form last submitted to the~~ 
 21.7   ~~administrative law judge or first submitted to the attorney~~ 
 21.8   ~~general;~~ 
 21.9      ~~(7) the attorney general's written statement of required~~ 
 21.10  ~~modifications and of approval or disapproval, if any;~~ 
 21.11     ~~(8) any documents required by applicable rules of the~~ 
 21.12  ~~office of administrative hearings or of the attorney general;~~ 
 21.13     ~~(9) the agency's order adopting the rule;~~ 
 21.14     ~~(10)~~ (8) all petitions for exceptions to, amendments of, or 
 21.15  repeal or suspension of, the rule; 
 21.16     (9) a copy of any objection to the rule filed by the 
 21.17  legislative commission to review administrative rules or a 
 21.18  standing committee pursuant to section 3.842, subdivision 4a, 
 21.19  and the agency's response; 
 21.20     (10) a copy of any filed executive order with respect to 
 21.21  the rule; 
 21.22     (11) the revisor's certificate approving the form of the 
 21.23  rule; and 
 21.24     ~~(11)~~ (12) a copy of the adopted rule as filed with the 
 21.25  secretary of state.  
 21.26     Sec. 26.  [14.366] [PUBLIC RULEMAKING DOCKET.] 
 21.27     (a) Each agency shall maintain a current, public rulemaking 
 21.28  docket.  
 21.29     (b) The rulemaking docket must contain a listing of the 
 21.30  precise subject matter of each possible proposed rule currently 
 21.31  under active consideration within the agency for proposal, the 
 21.32  name and address of agency personnel with whom persons may 
 21.33  communicate with respect to the matter, and an indication of its 
 21.34  present status within the agency. 
 21.35     (c) The rulemaking docket must list each pending rulemaking 
 21.36  proceeding.  A rulemaking proceeding is pending from the time it 
 22.1   is begun, by publication of the notice of solicitation, the 
 22.2   notice of intent to adopt, or notice of hearing, to the time it 
 22.3   is terminated, by publication of a notice of withdrawal or the 
 22.4   rule becoming effective.  For each rulemaking proceeding, the 
 22.5   docket must indicate:  
 22.6      (1) the subject matter of the proposed rule; 
 22.7      (2) a citation to all published notices relating to the 
 22.8   proceeding; 
 22.9      (3) where written comments on the proposed rule may be 
 22.10  inspected; 
 22.11     (4) the time during which written comments may be made; 
 22.12     (5) the names of persons who have made written requests for 
 22.13  a public hearing, where those requests may be inspected, and 
 22.14  where and when the hearing will be held; 
 22.15     (6) the current status of the proposed rule and any agency 
 22.16  determinations with respect to the rule; 
 22.17     (7) any known timetable for agency decisions or other 
 22.18  action in the proceeding; 
 22.19     (8) the date of the rule's adoption; 
 22.20     (9) the date the rule was filed with the secretary of 
 22.21  state; and 
 22.22     (10) when the rule will become effective.  
 22.23     Sec. 27.  [14.375] [INTERPRETATIONS.] 
 22.24     An agency interpretation of a statute or rule it is 
 22.25  responsible for enforcing or administering is not invalid solely 
 22.26  because the interpretation was not adopted as a rule.  This 
 22.27  section does not authorize an agency to impose requirements that 
 22.28  are not contained in a statute or rule, either on its face or 
 22.29  determined by accepted means of construction, without following 
 22.30  statutory rulemaking procedures. 
 22.31     Sec. 28.  [14.376] [RULES NOT ADOPTED ACCORDING TO ACT.] 
 22.32     Subdivision 1.  [INVALIDITY OF CERTAIN RULES.] A rule 
 22.33  adopted after a rulemaking proceeding commenced after June 30, 
 22.34  1995, is invalid unless adopted in substantial compliance with 
 22.35  this chapter.  However, inadvertent failure to mail a notice of 
 22.36  proposed rule adoption to any person as required by section 
 23.1   14.141, subdivision 6, does not invalidate a rule.  
 23.2      Subd. 2.  [LIMITATIONS ON ACTIONS.] An action to contest 
 23.3   the validity of a rule on the grounds of its noncompliance with 
 23.4   any provision of this chapter must be commenced within two years 
 23.5   after the effective date of the rule.  
 23.6      Sec. 29.  [14.386] [GOOD CAUSE EXEMPTION.] 
 23.7      If an agency for good cause finds that the rulemaking 
 23.8   provisions of this chapter are unnecessary, impracticable, or 
 23.9   contrary to the public interest when adopting, amending, or 
 23.10  repealing a rule to: 
 23.11     (1) address a serious and immediate threat to the public 
 23.12  health, safety, or welfare; 
 23.13     (2) comply with a court order or a requirement in federal 
 23.14  law in a manner that does not allow for compliance with sections 
 23.15  14.131 to 14.173; 
 23.16     (3) incorporates specific changes set forth in applicable 
 23.17  statutes when no interpretation of law is required; or 
 23.18     (4) make changes that do not alter the sense, meaning, or 
 23.19  effect of a rule, 
 23.20  the agency may adopt, amend, or repeal the rule upon satisfying 
 23.21  the requirements of section 14.38, subdivision 7.  The agency 
 23.22  shall incorporate its findings and a brief statement of its 
 23.23  supporting reasons in its order adopting, amending, or repealing 
 23.24  the rule. 
 23.25     Rules adopted, amended, or repealed under clauses (1) and 
 23.26  (2) are effective for a period of two years from the date of 
 23.27  publication of the rule in the State Register. 
 23.28     Rules adopted, amended, or repealed under clause (3) or (4) 
 23.29  are effective upon publication in the State Register. 
 23.30     Sec. 30.  Minnesota Statutes 1994, section 14.38, 
 23.31  subdivision 1, is amended to read: 
 23.32     Subdivision 1.  [ORIGINAL RULES.] Every rule adopted under 
 23.33  authority delegated by law, regardless of whether it might be 
 23.34  known as a substantive, procedural, or interpretive rule, which 
 23.35  is filed in the office of the secretary of state as provided in 
 23.36  sections 14.05 to 14.36 shall have the force and effect of law 
 24.1   five working days after the later of:  (1) its filing in the 
 24.2   office of the secretary of state; or (2) its notice of adoption 
 24.3   is published in the State Register, unless a different date is 
 24.4   required by statute or a later date is specified in the rule.  
 24.5   The secretary of state shall keep a permanent record of rules 
 24.6   filed with that office open to public inspection. 
 24.7      Sec. 31.  Minnesota Statutes 1994, section 14.38, 
 24.8   subdivision 7, is amended to read: 
 24.9      Subd. 7.  [PROCEDURE FOR EXEMPT AGENCIES AND EXEMPT RULES.] 
 24.10  ~~The subdivision 5 and 6 rules have~~ Subdivisions 7 to 9 apply to 
 24.11  agency rules that are specifically exempted from chapter 14 by 
 24.12  other law.  Subdivisions 7 and 8 apply to rules adopted under 
 24.13  section 14.386.  Subdivisions 7 to 9 do not apply to rules or 
 24.14  agencies listed in section 14.03.  A rule has the force and 
 24.15  effect of law if: 
 24.16     (1) the revisor of statutes approves the form of the rules 
 24.17  by certificate; 
 24.18     (2) two copies of the rules with the revisor's certificate 
 24.19  are filed in the office of the secretary of state; and, 
 24.20     (3) a copy is published in the State Register. 
 24.21     Sec. 32.  Minnesota Statutes 1994, section 14.38, 
 24.22  subdivision 8, is amended to read: 
 24.23     Subd. 8.  [EFFECTIVE DATE OF EXEMPT AGENCY RULES AND EXEMPT 
 24.24  RULES.] ~~The rules become~~ A rule subject to subdivisions 7 to 9 
 24.25  becomes effective five working days after publication in the 
 24.26  State Register.  The secretary of state shall forward one copy 
 24.27  of each rule to the revisor of statutes.  Rules filed in 
 24.28  accordance with subdivisions ~~5~~ 7 to 9~~, as they were in effect on~~ 
 24.29  ~~the date the rules were filed,~~ shall be included in Minnesota 
 24.30  Rules. 
 24.31     Sec. 33.  Minnesota Statutes 1994, section 14.38, 
 24.32  subdivision 9, is amended to read: 
 24.33     Subd. 9.  [STATUS OF FUTURE EXEMPTIONS.] Any law exempting 
 24.34  an agency or rule from ~~sections 14.001 to 14.69~~ chapter 14 shall 
 24.35  not be construed as preventing an agency from complying with 
 24.36  subdivisions ~~5~~ 7 to 9, unless the law specifically provides to 
 25.1   the contrary. 
 25.2      Sec. 34.  [14.435] [LEGISLATIVE COMMISSION AND COMMITTEE 
 25.3   STANDING.] 
 25.4      The legislative commission to review administrative rules 
 25.5   or a standing committee of the legislature that has oversight 
 25.6   responsibility for an agency may petition for judicial review of 
 25.7   a rule of that agency or intervene in litigation arising from 
 25.8   rulemaking action of that agency. 
 25.9      Sec. 35.  Minnesota Statutes 1994, section 14.46, 
 25.10  subdivision 1, is amended to read: 
 25.11     Subdivision 1.  [CONTENTS.] The commissioner of 
 25.12  administration shall publish a State Register containing all 
 25.13  notices for ~~hearings concerning~~ proposed adoption of rules, 
 25.14  giving time, place and purpose of the hearing and, except as 
 25.15  provided in section 14.141, subdivision 7, the full text of the 
 25.16  action being proposed.  Further, the register shall contain all 
 25.17  rules, amendments, suspensions, or repeals thereof, pursuant to 
 25.18  the provisions of this chapter.  The commissioner shall further 
 25.19  publish any executive order issued by the governor which shall 
 25.20  become effective 15 days after publication except as provided in 
 25.21  section 4.035, subdivision 2.  The commissioner shall further 
 25.22  publish any official notices in the register which a state 
 25.23  agency requests to be published.  Such notices shall include, 
 25.24  but shall not be limited to, the date on which a new agency 
 25.25  becomes operational, the assumption of a new function by an 
 25.26  existing state agency, or the appointment of commissioners.  The 
 25.27  commissioner may prescribe the form, excluding the form of the 
 25.28  rules, and manner in which agencies submit any material for 
 25.29  publication in the State Register and may withhold publication 
 25.30  of any material not submitted according to the form or 
 25.31  procedures prescribed. 
 25.32     The commissioner of administration may organize and 
 25.33  distribute the contents of the register according to such 
 25.34  categories as will provide economic publication and distribution 
 25.35  and will offer easy access to information by any interested 
 25.36  party. 
 26.1      Sec. 36.  Minnesota Statutes 1994, section 14.46, 
 26.2   subdivision 3, is amended to read: 
 26.3      Subd. 3.  [SUBMISSION OF ITEMS FOR PUBLICATION.] Any state 
 26.4   agency which desires to publish a notice of ~~hearing, rule or~~ 
 26.5   ~~change thereof~~ proposed rule adoption or of an adopted rule 
 26.6   shall submit a copy of the ~~entire document~~ material to be 
 26.7   published, including dates when adopted, and filed with the 
 26.8   secretary of state, to the commissioner of administration in 
 26.9   addition to any other copies which may be required to be filed 
 26.10  with the commissioner by other law. 
 26.11     The revisor of statutes shall provide assistance to the 
 26.12  commissioner if requested.  Alternatively, the commissioner may 
 26.13  designate a contract compositor to whom the assistance is to be 
 26.14  supplied.  The assistance, in either case, shall consist of 
 26.15  furnishing a machine readable computer tape, or similar 
 26.16  services, for rules which are available in the revisor's 
 26.17  computer data base and for which a written copy has been 
 26.18  submitted by an agency to the commissioner for publication in 
 26.19  the State Register. 
 26.20     Sec. 37.  Minnesota Statutes 1994, section 14.46, is 
 26.21  amended by adding a subdivision to read: 
 26.22     Subd. 4a.  [ELECTRONIC ACCESS TO INFORMATION.] (a) To the 
 26.23  extent practicable, the commissioner of administration shall 
 26.24  make information in the State Register available electronically 
 26.25  at the time of publication in the State Register.  The 
 26.26  commissioner may charge a fee for information that is made 
 26.27  available electronically.  The commissioner shall work with the 
 26.28  revisor of statutes and other legislative officials to 
 26.29  coordinate electronic provision of information related to 
 26.30  rulemaking with electronic provision of legislative information. 
 26.31     (b) Each agency is encouraged to make other information 
 26.32  that the agency produces relating to proposed rules, such as 
 26.33  statements of need and reasonableness, available electronically. 
 26.34     Sec. 38.  Minnesota Statutes 1994, section 14.47, 
 26.35  subdivision 1, is amended to read: 
 26.36     Subdivision 1.  [PLAN OF PUBLICATION AND SUPPLEMENTATION.] 
 27.1   The revisor of statutes shall: 
 27.2      (1) formulate a plan for the compilation of all permanent 
 27.3   agency rules ~~and, to the extent practicable, emergency agency~~ 
 27.4   ~~rules,~~ adopted pursuant to the administrative procedure act or 
 27.5   filed pursuant to the provisions of section 14.38, subdivisions 
 27.6   5 to 9 which were in effect at the time the rules were filed or 
 27.7   subdivision 11, including their order, classification, 
 27.8   arrangement, form, and indexing, and any appropriate tables, 
 27.9   annotations, cross references, citations to applicable statutes, 
 27.10  explanatory notes, and other appropriate material to facilitate 
 27.11  use of the rules by the public, and for the compilation's 
 27.12  composition, printing, binding and distribution; 
 27.13     (2) publish the compilation of permanent agency rules ~~and,~~ 
 27.14  ~~if practicable, emergency rules,~~ adopted pursuant to the 
 27.15  administrative procedure act or filed pursuant to the provisions 
 27.16  of section 14.38, subdivisions 5 to 9 which were in effect at 
 27.17  the time the rules were filed or subdivision 11, which shall be 
 27.18  called "Minnesota Rules"; 
 27.19     (3) periodically either publish a supplement or a new 
 27.20  compilation, which includes all rules adopted since the last 
 27.21  supplement or compilation was published and removes rules 
 27.22  incorporated in prior compilations or supplements which are no 
 27.23  longer effective; 
 27.24     (4) include in Minnesota Rules a consolidated list of 
 27.25  publications and other documents incorporated by reference into 
 27.26  the rules after June 30, 1981, and found conveniently available 
 27.27  by the revisor under section 14.07, subdivision 4, indicating 
 27.28  where the publications or documents are conveniently available 
 27.29  to the public; and 
 27.30     (5) copyright any compilations and or supplements in the 
 27.31  name of the state of Minnesota. 
 27.32     Sec. 39.  Minnesota Statutes 1994, section 14.47, 
 27.33  subdivision 2, is amended to read: 
 27.34     Subd. 2.  [RESTRICTIONS ON COMPILATION.] The revisor of 
 27.35  statutes shall not: 
 27.36     (1) alter the sense, meaning, or effect of any rule in the 
 28.1   course of compiling or publishing it; 
 28.2      (2) aid an agency in the preparation of any statement 
 28.3   concerning the need for or reasonableness of a rule except as 
 28.4   provided by section 14.07, subdivision 6; and 
 28.5      (3) act as legal counsel for an agency before ~~an~~ 
 28.6   ~~administrative law judge~~ a presiding officer except as provided 
 28.7   by section 14.07, subdivision 6. 
 28.8      Sec. 40.  Minnesota Statutes 1994, section 14.47, 
 28.9   subdivision 6, is amended to read: 
 28.10     Subd. 6.  [OMISSION OF TEXT.] (a) For purposes of any 
 28.11  compilation or publication of the rules, the revisor, unless the 
 28.12  attorney general objects, may omit any extraneous descriptive or 
 28.13  informative text which is not an operative portion of the rule. 
 28.14  The revisor may also omit effective date provisions, statements 
 28.15  that a rule is repealed, prefaces, appendices, guidelines, 
 28.16  organizational descriptions, explanations of federal or state 
 28.17  law, and similar material.  The revisor shall consult with the 
 28.18  agency, the attorney general, and the legislative commission to 
 28.19  review administrative rules~~, and with the chief administrative~~ 
 28.20  ~~law judge~~ before omitting any text from publication. 
 28.21     (b) For the purposes of any compilation or publication of 
 28.22  the rules, the revisor, unless the attorney general objects, may 
 28.23  omit any rules that, by their own terms, are no longer effective 
 28.24  or have been repealed directly by the agency, repealed by the 
 28.25  legislature, or declared unconstitutional or otherwise void by a 
 28.26  court of last resort.  The revisor shall not remove a rule which 
 28.27  is suspended and not fully repealed, but shall, if practicable, 
 28.28  note the fact of suspension in Minnesota Rules.  The revisor 
 28.29  shall consult the agency involved, the attorney general, ~~the~~ 
 28.30  ~~chief administrative law judge,~~ and the legislative commission 
 28.31  to review administrative rules before omitting a rule from 
 28.32  publication. 
 28.33     Sec. 41.  Minnesota Statutes 1994, section 14.50, is 
 28.34  amended to read: 
 28.35     14.50 [HEARINGS BEFORE ADMINISTRATIVE LAW JUDGE.] 
 28.36     All hearings of state agencies required to be conducted 
 29.1   under this chapter other than rulemaking oral proceedings 
 29.2   conducted by an agency or an officer designated by the agency, 
 29.3   shall be conducted by an administrative law judge assigned by 
 29.4   the chief administrative law judge.  All hearings required to be 
 29.5   conducted under chapter 176 shall be conducted by a compensation 
 29.6   judge assigned by the chief administrative law judge.  In 
 29.7   assigning administrative law judges or compensation judges to 
 29.8   conduct such hearings, the chief administrative law judge shall 
 29.9   attempt to utilize personnel having expertise in the subject to 
 29.10  be dealt with in the hearing.  Only administrative law judges 
 29.11  learned in the law shall be assigned to contested case 
 29.12  hearings.  Only compensation judges shall be assigned to 
 29.13  workers' compensation matters.  It shall be the duty of the 
 29.14  administrative law judge to:  (1) advise an agency as to the 
 29.15  location at which and time during which a hearing should be held 
 29.16  so as to allow for participation by all affected interests, 
 29.17  provided that this authority does not apply to rulemaking oral 
 29.18  proceedings; (2) conduct only hearings for which proper notice 
 29.19  has been given; (3) see to it that all hearings are conducted in 
 29.20  a fair and impartial manner.  Except in the case of rulemaking 
 29.21  oral proceedings and workers' compensation hearings involving 
 29.22  claims for compensation it shall also be the duty of the 
 29.23  administrative law judge to make a report on each proposed 
 29.24  agency action in which the administrative law judge functioned 
 29.25  in an official capacity, stating findings of fact and 
 29.26  conclusions and recommendations, taking notice of the degree to 
 29.27  which the agency has (i) documented its statutory authority to 
 29.28  take the proposed action, and (ii) fulfilled all relevant 
 29.29  substantive and procedural requirements of law or rule~~, and~~ 
 29.30  ~~(iii) in rulemaking proceedings, demonstrated the need for and~~ 
 29.31  ~~reasonableness of its proposed action with an affirmative~~ 
 29.32  ~~presentation of facts~~.  
 29.33     Sec. 42.  Minnesota Statutes 1994, section 14.51, is 
 29.34  amended to read: 
 29.35     14.51 [PROCEDURAL RULES FOR HEARINGS.] 
 29.36     The chief administrative law judge shall adopt rules to 
 30.1   govern the procedural conduct of all ~~hearings, relating to both~~ 
 30.2   ~~rule adoption, amendment, suspension or repeal hearings,~~ 
 30.3   contested case hearings~~,~~ and workers' compensation hearings, and 
 30.4   to govern the conduct of voluntary mediation sessions for 
 30.5   rulemaking and contested cases other than those within the 
 30.6   jurisdiction of the bureau of mediation services.  ~~Temporary~~ 
 30.7   ~~rulemaking authority is granted to the chief administrative law~~ 
 30.8   ~~judge for the purpose of implementing Laws 1981, chapter 346,~~ 
 30.9   ~~sections 2 to 6, 103 to 122, 127 to 135, and 141.~~  The 
 30.10  procedural rules for hearings shall be binding upon all agencies 
 30.11  and shall supersede any other agency procedural rules with which 
 30.12  they may be in conflict.  ~~The procedural rules for hearings~~ 
 30.13  ~~shall include in addition to normal procedural matters~~ 
 30.14  ~~provisions relating to recessing and reconvening new hearings~~ 
 30.15  ~~when the proposed final rule of an agency is substantially~~ 
 30.16  ~~different from that which was proposed at the public hearing.~~  
 30.17  ~~The procedural rules shall establish a procedure whereby the~~ 
 30.18  ~~proposed final rule of an agency shall be reviewed by the chief~~ 
 30.19  ~~administrative law judge to determine whether or not a new~~ 
 30.20  ~~hearing is required because of substantial changes or failure of~~ 
 30.21  ~~the agency to meet the requirements of sections 14.131 to 14.18.~~ 
 30.22  Upon the chief administrative law judge's own initiative or upon 
 30.23  written request of an interested party, the chief administrative 
 30.24  law judge may issue a subpoena for the attendance of a witness 
 30.25  or the production of books, papers, records or other documents 
 30.26  as are material to the matter being heard.  The subpoenas shall 
 30.27  be enforceable through the district court in the district in 
 30.28  which the subpoena is issued. 
 30.29     Sec. 43.  Minnesota Statutes 1994, section 17.84, is 
 30.30  amended to read: 
 30.31     17.84 [DUTIES OF THE COMMISSIONER.] 
 30.32     Within 30 days of the receipt of the ~~notices~~ notice 
 30.33  provided in section 17.82 ~~or 17.83~~, the commissioner shall 
 30.34  review the agency's proposed action, shall negotiate with the 
 30.35  agency, and shall recommend to the agency in writing the 
 30.36  implementation either of the action as proposed or an 
 31.1   alternative.  In making recommendations, the commissioner shall 
 31.2   follow the statement of policy contained in section 17.80.  ~~If~~ 
 31.3   ~~the proposed agency action is the adoption of a rule, the~~ 
 31.4   ~~recommendation of the commissioner shall be made a part of the~~ 
 31.5   ~~record in the rule hearing.~~  If the agency receives no response 
 31.6   from the commissioner within 30 days, it shall be deemed a 
 31.7   recommendation that the agency take the action as proposed.  
 31.8      Sec. 44.  Minnesota Statutes 1994, section 84.027, is 
 31.9   amended by adding a subdivision to read: 
 31.10     Subd. 13.  [GAME AND FISH RULES.] (a) The commissioner of 
 31.11  natural resources may adopt rules under this subdivision that 
 31.12  are authorized under: 
 31.13     (1) chapters 97A, 97B, and 97C to set open seasons and 
 31.14  areas, to close seasons and areas, to select hunters for areas, 
 31.15  to provide for tagging and registration of game, to prohibit or 
 31.16  allow taking of wild animals to protect a species, and to 
 31.17  prohibit or allow importation, transportation, or possession of 
 31.18  a wild animal; and 
 31.19     (2) sections 84.093, 84.14, 84.15, and 84.152 to set 
 31.20  seasons for harvesting wild ginseng roots and wild rice and to 
 31.21  restrict or prohibit harvesting in designated areas. 
 31.22     Clause (2) does not limit or supersede the commissioner's 
 31.23  authority to establish opening dates, days, and hours of the 
 31.24  wild rice harvesting season under section 84.14, subdivision 3. 
 31.25     (b) If conditions exist that do not allow the commissioner 
 31.26  to comply with chapter 14, the commissioner may adopt a rule 
 31.27  under this subdivision by publishing notice in the State 
 31.28  Register and filing a copy of the rules with the secretary of 
 31.29  state and with the legislative commission to review 
 31.30  administrative rules. 
 31.31     (c) Rules adopted under paragraph (b) are effective upon 
 31.32  publishing in the State Register and may be effective up to 
 31.33  seven days before publishing and filing under paragraph (b) if: 
 31.34     (1) the commissioner of natural resources determines that 
 31.35  an emergency exists; and 
 31.36     (2) for a rule that affects more than three counties the 
 32.1   commissioner publishes the rule once in a legal newspaper 
 32.2   published in Minneapolis, St. Paul, and Duluth, or for a rule 
 32.3   that affects three or fewer counties the commissioner publishes 
 32.4   the rule once in a legal newspaper in each of the affected 
 32.5   counties. 
 32.6      (d) Except as provided in paragraph (e), a rule published 
 32.7   under paragraph (c), clause (2), may not be effective earlier 
 32.8   than seven days after publication. 
 32.9      (e) A rule published under paragraph (c), clause (2), may 
 32.10  be effective the day the rule is published if the commissioner 
 32.11  gives notice and holds a public hearing on the rule within 15 
 32.12  days before publication. 
 32.13     (f) The commissioner shall attempt to notify persons or 
 32.14  groups of persons affected by rules adopted under paragraphs (b) 
 32.15  and (c) by public announcements, posting, and other appropriate 
 32.16  means as determined by the commissioner. 
 32.17     Sec. 45.  [REVISOR INSTRUCTION.] 
 32.18     The revisor of statutes shall place a bill before the 
 32.19  legislature during the 1996 regular session which changes 
 32.20  statutory references to chapter 14 or any sections of that 
 32.21  chapter to the appropriate references to this act. 
 32.22     Sec. 46.  [REPEALER.] 
 32.23     (a) Minnesota Statutes 1994, sections 3.842, subdivision 4; 
 32.24  3.844; 3.845; and 3.846, are repealed. 
 32.25     (b) Minnesota Statutes 1994, sections 14.05, subdivisions 2 
 32.26  and 3; 14.06; 14.10; 14.11; 14.115; 14.38, subdivisions 4, 5, 
 32.27  and 6; and 17.83, are repealed. 
 32.28     (c) Minnesota Statutes 1994, sections 14.14; 14.15; 14.16; 
 32.29  14.19; and 14.20, are repealed. 
 32.30     (d) Minnesota Statutes 1994, sections 14.22; 14.225; 14.23; 
 32.31  14.235; 14.24; 14.25; 14.26; 14.27; and 14.28, are repealed. 
 32.32     (e) Minnesota Statutes 1994, sections 14.29; 14.30; 14.305; 
 32.33  14.31; 14.32; 14.33; 14.34; 14.35; and 14.36, are repealed. 
 32.34     Sec. 47.  [EFFECTIVE DATE.] 
 32.35     Sections 1 to 46 are effective July 1, 1996.  
 32.36  Notwithstanding Minnesota Statutes, section 14.376, rules for 
 33.1   which a notice of intent to adopt was published before July 1, 
 33.2   1996, are valid if adopted in compliance with laws in effect at 
 33.3   the time of publication of the notice of intent to adopt rules.  
 33.4   However, the power of the governor to suspend rules applies to 
 33.5   rules adopted before or after the effective date of sections 1 
 33.6   to 46.