An agency must determine if a local government will be required to adopt or amend an ordinance or other regulation to comply with a proposed agency rule. An agency must make this determination before the close of the hearing record or before the agency submits the record to the administrative law judge if there is no hearing. The administrative law judge must review and approve or disapprove the agency's determination. "Local government" means a town, county, or home rule charter or statutory city.
If the agency determines that the proposed rule requires adoption or amendment of an ordinance or other regulation, or if the administrative law judge disapproves the agency's determination that the rule does not have this effect, the rule may not become effective until:
(1) the next July 1 or January 1 after notice of final adoption is published in the State Register; or
(2) a later date provided by law or specified in the proposed rule.
Subdivision 2 does not apply:
(2) if the agency has been directed by law to adopt the rule or to commence the rulemaking process;
(3) if the administrative law judge approves an agency's determination that the rule has been proposed pursuant to a specific federal statutory or regulatory mandate that requires the rule to take effect before the date specified in subdivision 1; or
(4) if the governor waives application of subdivision 2.