1.1 	A bill for an act
1.2 	relating to regulatory reform; modifying legislative approval of certain rules;
1.3 	amending Minnesota Statutes 2014, section 14.127.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2014, section 14.127, is amended to read:
1.6 	14.127 LEGISLATIVE APPROVAL REQUIRED.
1.7 		Subdivision 1.Cost thresholds. An agency must determine if the cost of complying 
1.8 	with a proposed rule in the first any year after the rule takes effect will exceed $25,000
1.9 	$10,000 for: (1) any one business that has less fewer than 50 25 full-time employees; 
1.10 	or (2) any one county, town, or statutory or home rule charter city that if the county, 
1.11 	town, or city has less fewer than ten 25 full-time employees. For purposes of this section, 
1.12 	"business" means a business entity organized for profit or as a nonprofit, and includes an 
1.13 	individual, partnership, corporation, joint venture, association, or cooperative.
1.14 		Subd. 2.Agency determination. An agency must make the determination required 
1.15 	by subdivision 1 before the close of the hearing record, or before the agency submits the 
1.16 	record to the administrative law judge if there is no hearing. The administrative law judge 
1.17 	must review and approve or disapprove the agency determination under this section.
1.18 		Subd. 3.Legislative approval required. If the agency determines that the cost 
1.19 	exceeds the threshold in subdivision 1, or if the administrative law judge disapproves 
1.20 	the agency's determination that the cost does not exceed the threshold in subdivision 1, 
1.21 	any business that has less than 50 full-time employees or any statutory or home rule 
1.22 	charter city that has less than ten full-time employees may file a written statement with the 
1.23 	agency claiming a temporary exemption from the rules. Upon filing of such a statement 
1.24 	with the agency, the rules do not apply to that business or that city take effect until the 
2.1 	rules are approved by a law enacted after the agency determination or administrative law 
2.2 	judge disapproval.
2.3 		Subd. 4.Exceptions. (a) Subdivision 3 does not apply if the administrative law 
2.4 	judge approves an agency's determination that the legislature has appropriated money to 
2.5 	sufficiently fund the expected cost of the rule upon the business or city proposed to be 
2.6 	regulated by the rule.
2.7 	(b) Subdivision 3 does not apply if the administrative law judge approves an 
2.8 	agency's determination that the rule has been proposed pursuant to a specific federal 
2.9 	statutory or regulatory mandate.
2.10 	(c) This section does not apply if the rule is adopted under section 14.388 or under 
2.11 	another law specifying that the rulemaking procedures of this chapter do not apply.
2.12 	(d) This section does not apply to a rule adopted by the Public Utilities Commission.
2.13 	(e) Subdivision 3 does not apply if the governor waives application of subdivision 3. 
2.14 	The governor may issue a waiver at any time, either before or after the rule would take 
2.15 	effect, but for the requirement of legislative approval. As soon as possible after issuing a 
2.16 	waiver under this paragraph, the governor must send notice of the waiver to the speaker of 
2.17 	the house and the president of the senate and must publish notice of this determination 
2.18 	in the State Register. A waiver under this paragraph must be maintained as part of the 
2.19 	rulemaking record under section 14.365. A waiver issued by the governor under this 
2.20 	paragraph is effective until the next adjournment of an annual regular legislative session 
2.21 	after the governor issues the waiver.
2.22 		Subd. 5.Severability. If an administrative law judge determines that part of a 
2.23 	proposed rule exceeds the threshold specified in subdivision 1, but that a severable portion 
2.24 	of a proposed rule does not exceed the threshold in subdivision 1, the administrative law 
2.25 	judge may provide that the severable portion of the rule that does not exceed the threshold 
2.26 	may take effect without legislative approval.

2.27 	EFFECTIVE DATE. This section is effective the day following final enactment, 
2.28 	and applies to any rule for which the hearing record has not closed before that date or, 
2.29 	if there is not a public hearing, for which the agency has not submitted the record to the 
2.30 	administrative law judge before that date.