Bill Text: MN SF1922 | 2011-2012 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State agency rulemaking regulation and reporting methods provisions modifications
Spectrum:
Status: (Passed) 2012-04-27 - Secretary of State Chapter 238 04/27/12 [SF1922 Detail]
Download: Minnesota-2011-SF1922-Introduced.html
Bill Title: State agency rulemaking regulation and reporting methods provisions modifications
Spectrum:
Status: (Passed) 2012-04-27 - Secretary of State Chapter 238 04/27/12 [SF1922 Detail]
Download: Minnesota-2011-SF1922-Introduced.html
1.2relating to state government; providing methods for certain review and reporting
1.3on agency rules;amending Minnesota Statutes 2010, sections 3.842, subdivision
1.44a; 14.02, by adding a subdivision; 14.05, subdivision 1, by adding a subdivision;
1.514.116; 14.131; 14.19; 14.388, subdivision 2; 14.389, subdivision 2; Minnesota
1.6Statutes 2011 Supplement, sections 3D.06; 3D.10; 3D.11; repealing Minnesota
1.7Statutes 2010, section 14.127.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 3.842, subdivision 4a, is amended to read:
1.10 Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this
1.11subdivision, "committee" means the house of representatives policy committee or senate
1.12policy committee with primary jurisdiction over state governmental operations. The
1.13commission or a committee may object to a rule or proposed rule as provided in this
1.14subdivision. If the commission or a committee objects to all or some portion of a rule
1.15because the commission or committee considers it to be on the grounds that the rule
1.16or proposed rule: (1) is beyond the procedural or substantive authority delegated to
1.17the agency, including a proposed rule submitted under section
14.15, subdivision 4, or
1.1814.26, subdivision 3, paragraph (c); or (2) is inconsistent with the enabling statute; is
1.19unnecessary or redundant; has a substantial impact; is not based on sound, reasonably
1.20available scientific, technical, economic, or other information; is not cost effective; is
1.21unduly burdensome; or is more restrictive than the standard, limitation, or requirement
1.22imposed by federal law or rule pertaining to the same subject matter. If the commission or
1.23a committee objects to all or some portion of a rule or proposed rule, the commission or
1.24committeemay shall file that objection in the Office of the Secretary of State. The filed
1.25objection must contain a concise statement of the commission's or committee's reasons for
2.1its action.An objection to a proposed rule submitted by the commission or a committee
2.2under section
14.15, subdivision 4, or
14.26, subdivision 3, paragraph (c), may not be filed
2.3before the rule is adopted For a proposed rule, the objection must be filed within 30 days
2.4of receipt of the notice under section 14.116, 14.388, or 14.389.
2.5(b) The secretary of state shall affix to each objection a certification of the date and
2.6time of its filing and as soon after the objection is filed as practicable shall electronically
2.7transmit acertified copy of it to the agency issuing the rule in question and to the revisor
2.8of statutes. The secretary of state shall also maintain a permanent register open to public
2.9inspection of all objections by the commission or committee.
2.10(c) The commission or committee shall publish and index an objection filed under
2.11this section in the next issue of the State Register. The revisor of statutes shall indicate
2.12the existence of the objection adjacent to the rule in question when that rule is published
2.13in Minnesota Rules.
2.14(d) Within 14 days after the filing of an objection by the commission or committee to
2.15a rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
2.16After receipt of the response, the commission or committee may withdraw or modify its
2.17objection. After the filing of an objection that is not subsequently withdrawn, the agency
2.18may not adopt the rule until the legislature adjourns the annual legislative session that
2.19began after the vote of the commission or committee. The commission or committee
2.20that files an objection that is not subsequently withdrawn must, as soon as practical,
2.21make a recommendation on a bill that approves the proposed rule, prohibits adoption of
2.22the proposed rule, or amends or repeals the law governing a previously adopted rule
2.23for which an objection was filed.
2.24(e) After the filing of an objection by the commission or committee that is not
2.25subsequently withdrawn, the burden is upon the agency in any proceeding for judicial
2.26review or for enforcement of the rule to establish by clear and convincing evidence that
2.27the whole or portion of the rule objected to is valid and demonstrates that the objection
2.28raised under paragraph (a) is not justified, based on the criteria for objecting to a rule
2.29under paragraph (a).
2.30(f) The failure of the commission or a committee to object to a rule is not an implied
2.31legislative authorization of its validity.
2.32(g) In accordance with sections14.44 and
14.45 , the commission or a committee
2.33may petition for a declaratory judgment to determine the validity of a rule objected to
2.34by the commission or committee. The action must be started within two years after an
2.35objection is filed in the Office of the Secretary of State.
3.1(h) The commission or a committee may intervene in litigation arising from agency
3.2action. For purposes of this paragraph, agency action means the whole or part of a rule, or
3.3the failure to issue a rule.
3.4 Sec. 2. Minnesota Statutes 2011 Supplement, section 3D.06, is amended to read:
3.53D.06 AGENCY REPORT TO COMMISSION.
3.6Before September 1 of the odd-numbered year before the year in which a state agency
3.7is subject to sunset review, the agency commissioner shall report to the commission:
3.8(1) information regarding the application to the agency of the criteria in section
3.93D.10
;
3.10(2) a priority-based budget for the agency;
3.11(3) an inventory of all boards, commissions, committees, and other entities related
3.12to the agency;and
3.13(4) a list of all rules promulgated by the state agency; and the following information
3.14for each rule: (i) the statutory authority; (ii) intended outcomes; (iii) the cost to state and
3.15local government, businesses, and individuals; (iv) the scientific, technical, and economic
3.16information that supports it; (v) whether or not it has a substantial impact; (vi) the
3.17relationship of the specified rule to other local, state, and federal statutes, rules, regulations,
3.18or ordinances; (vii) a summary of any inconsistency and redundancy between the specified
3.19rule and other local, state, and federal statutes, rules, regulations, and ordinances; and (viii)
3.20a summary of the means to better coordinate rulemaking between state agencies and other
3.21local, state, and federal agencies and a strategy and schedule to repeal or amend agency
3.22rules so as to achieve intended outcomes of the rules more effectively and efficiently; and
3.23(5) any other information that the agency commissioner considers appropriate or that
3.24is requested by the commission.
3.25The September 1 deadline in this section does not apply in 2011.
3.26 Sec. 3. Minnesota Statutes 2011 Supplement, section 3D.10, is amended to read:
3.273D.10 CRITERIA FOR REVIEW.
3.28The commission and its staff shall consider the following criteria in determining
3.29whether a public need exists for the continuation of a state agency or its advisory
3.30committees or for the performance of the functions of the agency or its advisory
3.31committees:
3.32(1) the efficiency and effectiveness with which the agency or the advisory committee
3.33operates;
4.1(2) an identification of the mission, goals, and objectives intended for the agency or
4.2advisory committee and of the problem or need that the agency or advisory committee
4.3was intended to address and the extent to which the mission, goals, and objectives have
4.4been achieved and the problem or need has been addressed;
4.5(3) an identification of any activities of the agency in addition to those granted by
4.6statute and of the authority for those activities and the extent to which those activities
4.7are needed;
4.8(4) an assessment of authority of the agency relating to fees, inspections,
4.9enforcement, and penalties;
4.10(5) whether less restrictive or alternative methods of performing any function that
4.11the agency performs could adequately protect or provide service to the public;
4.12(6) the extent to which the jurisdiction of the agency and the programs administered
4.13by the agency overlap or duplicate those of other agencies, the extent to which the agency
4.14coordinates with those agencies, and the extent to which the programs administered by the
4.15agency can be consolidated with the programs of other state agencies;
4.16(7) the promptness and effectiveness with which the agency addresses complaints
4.17concerning entities or other persons affected by the agency, including an assessment of the
4.18agency's administrative hearings process;
4.19(8) an assessment of the agency's rules and rulemaking process and the extent to
4.20which the agency has encouraged participation by the public in making its rules and
4.21decisions and the extent to which the public participation has resulted in rules that benefit
4.22the public;
4.23(9) an assessment of whether any of the agency's rules are:
4.24(i) beyond the procedural or substantive authority delegated to the agency; or
4.25(ii) inconsistent with the enabling statute; unnecessary or redundant; a substantial
4.26impact; not based on sound, reasonably available scientific, technical, economic, or other
4.27information; not cost effective; unduly burdensome; or more restrictive than the standard,
4.28limitation, or requirement imposed by federal law or rule pertaining to the same subject
4.29matter;
4.30(9) (10) the extent to which the agency has complied with federal and state laws and
4.31applicable rules regarding equality of employment opportunity and the rights and privacy
4.32of individuals, and state law and applicable rules of any state agency regarding purchasing
4.33guidelines and programs for historically underutilized businesses;
4.34(10) (11) the extent to which the agency issues and enforces rules relating to
4.35potential conflicts of interest of its employees;
5.1(11) (12) the extent to which the agency complies with chapter 13 and follows
5.2records management practices that enable the agency to respond efficiently to requests for
5.3public information; and
5.4(12) (13) the effect of federal intervention or loss of federal funds if the agency is
5.5abolished.
5.6 Sec. 4. Minnesota Statutes 2011 Supplement, section 3D.11, is amended to read:
5.73D.11 RECOMMENDATIONS.
5.8(a) In its report on a state agency, the commission shall:
5.9(1) make recommendations on the abolition, continuation, or reorganization of each
5.10affected state agency and its advisory committees and on the need for the performance of
5.11the functions of the agency and its advisory committees;
5.12(2) make recommendations on the consolidation, transfer, or reorganization of
5.13programs within state agencies not under review when the programs duplicate functions
5.14performed in agencies under review;and
5.15(3) make recommendations to improve the operations of the agency, its policy body,
5.16and its advisory committees, including management recommendations that do not require
5.17a change in the agency's enabling statute; and
5.18(4) make recommendations for the repeal, consolidation, transfer, or amendment of
5.19the rules promulgated by the affected state agency.
5.20(b) The commission shall include the estimated fiscal impact of its recommendations
5.21and may recommend appropriation levels for certain programs to improve the operations
5.22of the state agency.
5.23(c) The commission shall have drafts of legislation prepared to carry out the
5.24commission's recommendations under this section, including legislation necessary
5.25to continue the existence of agencies that would otherwise sunset if the commission
5.26recommends continuation of an agency.
5.27(d) After the legislature acts on the report under section3D.09 , the commission shall
5.28present to the legislative auditor the commission's recommendations that do not require
5.29a statutory change to be put into effect. Subject to the legislative audit commission's
5.30approval, the legislative auditor may examine the recommendations and include as part
5.31of the next audit of the agency a report on whether the agency has implemented the
5.32recommendations and, if so, in what manner.
5.33 Sec. 5. Minnesota Statutes 2010, section 14.02, is amended by adding a subdivision to
5.34read:
6.1 Subd. 5. Substantial impact. A rule has a "substantial economic impact" if the rule
6.2would result in, or likely result in:
6.3(1) an adverse effect or impact on the private-sector economy of the state of
6.4Minnesota of $1,000,000 or more in a single year;
6.5(2) a significant increase in costs or prices for consumers, individual private-sector
6.6industries, state agencies, local governments, individuals, or private-sector enterprises
6.7within certain geographic regions inside the state of Minnesota;
6.8(3) significant adverse impacts on the competitiveness of private-sector
6.9Minnesota-based enterprises, or on private-sector employment, investment, productivity,
6.10or innovation within the state of Minnesota; or
6.11(4) compliance costs, in the first year after the rule takes effect, of more than $25,000
6.12for any one business that has less than 50 full-time employees, or for any one statutory or
6.13home rule charter city that has less than ten full-time employees.
6.14 Sec. 6. Minnesota Statutes 2010, section 14.05, subdivision 1, is amended to read:
6.15 Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
6.16adopt, amend, suspend, or repeal its rules: (1) in accordance with the procedures specified
6.17in sections14.001 to
14.69 , and; (2) only pursuant to authority expressly delegated by
6.18state or federal law; (3) only that are necessary to serve the public interest; and (4) in full
6.19compliance with its duties and obligations.
6.20(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
6.21automatically repealed on the effective date of the law's repeal unless there is another
6.22law authorizing the rules.
6.23(c) Except as provided in section14.06 , sections
14.001 to
14.69 shall not be
6.24authority for an agency to adopt, amend, suspend, or repeal rules.
6.25 Sec. 7. Minnesota Statutes 2010, section 14.05, is amended by adding a subdivision to
6.26read:
6.27 Subd. 1a. Limitation regarding certain policies, guidelines, and other
6.28nonbinding interpretive statements. An agency shall not seek to implement or enforce
6.29against any person a policy, guideline, or other nonbinding interpretive statement that
6.30meets the definition of a rule if the policy, guideline, or other nonbinding interpretive
6.31statement has not been adopted as a rule in accordance with this chapter.
6.32 Sec. 8. Minnesota Statutes 2010, section 14.116, is amended to read:
6.3314.116 NOTICE TO LEGISLATURE.
7.1When an agency mails notice of intent to adopt rules under section14.14 or
14.22 ,
7.2the agency must send a copy of the same notice and a copy of the statement of need and
7.3reasonableness to the chairs and ranking minority party members of the legislative policy
7.4and budget committees with jurisdiction over the subject matter of the proposed rules and
7.5to the Legislative Coordinating Commission.
7.6In addition, if the mailing of the notice is within two years of the effective date
7.7of the law granting the agency authority to adopt the proposed rules, the agency shall
7.8make reasonable efforts to send a copy of the notice and the statement to all sitting
7.9legislators who were chief house of representatives and senate authors of the bill granting
7.10the rulemaking authority. If the bill was amended to include this rulemaking authority,
7.11the agency shall make reasonable efforts to send the notice and the statement to the chief
7.12house of representatives and senate authors of the amendment granting rulemaking
7.13authority, rather than to the chief authors of the bill.
7.14 Sec. 9. Minnesota Statutes 2010, section 14.131, is amended to read:
7.1514.131 STATEMENT OF NEED AND REASONABLENESS.
7.16By the date of the section14.14, subdivision 1a , notice, the agency must
7.17prepare, review, and make available for public review a statement of the need for and
7.18reasonableness of the rule. The statement of need and reasonableness must be prepared
7.19under rules adopted by the chief administrative law judge and must include the following
7.20to the extent the agency, through reasonable effort, can ascertain this information:
7.21(1) a description of the classes of persons who probably will be affected by the
7.22proposed rule, including classes that will bear the costs of the proposed rule and classes
7.23that will benefit from the proposed rule;
7.24(2) the probable costs to the agency and to any other agency of the implementation
7.25and enforcement of the proposed rule and any anticipated effect on state revenues;
7.26(3) a determination of whether there are less costly methods or less intrusive
7.27methods for achieving the purpose of the proposed rule;
7.28(4) a description of any alternative methods for achieving the purpose of the
7.29proposed rule that were seriously considered by the agency and the reasons why they
7.30were rejected in favor of the proposed rule;
7.31(5) the probable costs of complying with the proposed rule, including the portion
7.32of the total costs that will be borne by identifiable categories of affected parties, such as
7.33separate classes of governmental units, businesses, or individuals;
8.1(6) the probable costs or consequences of not adopting the proposed rule, including
8.2those costs or consequences borne by identifiable categories of affected parties, such as
8.3separate classes of government units, businesses, or individuals;and
8.4(7) an assessment of any differences between the proposed rule and existing federal
8.5regulations and a specific analysis of the need for and reasonableness of each difference.;
8.6(8) an assessment of the cumulative effect of all rules adopted by the agency or any
8.7other agency, and all federal regulations and local ordinances or regulations, related to the
8.8specific purpose for which the rule is being adopted; and
8.9(9) the agency's findings and conclusions that support its determination that the
8.10proposed rule does not have a substantial economic impact.
8.11The statement must describe how the agency, in developing the rules, considered
8.12and implemented the legislative policy supporting performance-based regulatory systems
8.13set forth in section14.002 in a cost-effective and timely manner.
8.14The statement must describe, with reasonable particularity, the scientific, technical,
8.15and economic information that supports the proposed rule.
8.16The statement must also describe the agency's efforts to provide additional
8.17notification under section14.14, subdivision 1a , to persons or classes of persons who may
8.18be affected by the proposed rule or must explain why these efforts were not made.
8.19The agency must consult with the commissioner of management and budget to
8.20help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
8.21government. The agency must send a copy of the statement of need and reasonableness
8.22to the Legislative Reference Library when the notice of hearing is mailed under section
8.2314.14, subdivision 1a
.
8.24 Sec. 10. Minnesota Statutes 2010, section 14.19, is amended to read:
8.2514.19 DEADLINE TO COMPLETE RULEMAKING.
8.26Within 180 days after issuance of the administrative law judge's report or that of the
8.27chief administrative law judge, the agency shall submit its notice of adoption, amendment,
8.28or repeal to the State Register for publication. If the agency has not submitted its notice to
8.29the State Register within 180 days, the rule is automatically withdrawn. The agency may
8.30not adopt the withdrawn rules without again following the procedures of sections14.05
8.31to14.28 , with the exception of section
14.101 , if the noncompliance is approved by the
8.32chief administrative law judge. The agency shall report to the Legislative Coordinating
8.33Commission, other appropriate committees of the legislature, and the governor its failure
8.34to adopt rules and the reasons for that failure. The 180-day time limit of this section
8.35does not include:
9.1(1) any days used for review by the chief administrative law judge or the commission
9.2if the review is required by law; or
9.3(2) days during which the rule cannot be adopted, because of votes by legislative
9.4committees under section14.126 ; or
9.5(3) days during which the rule cannot be adopted because approval of the legislature
9.6is required under section
14.127
9.7 Sec. 11. Minnesota Statutes 2010, section 14.388, subdivision 2, is amended to read:
9.8 Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this
9.9section must give notice to the chairs and ranking minority members of the legislative
9.10policy and budget committees with jurisdiction over the subject matter of the proposed
9.11rules and to the Legislative Coordinating Commission, must give electronic notice of its
9.12intent in accordance with section16E.07, subdivision 3 , and must give notice by United
9.13States mail or electronic mail to persons who have registered their names with the agency
9.14under section14.14, subdivision 1a . The notice must be given no later than the date the
9.15agency submits the proposed rule to the Office of Administrative Hearings for review
9.16of its legality and must include:
9.17(1) the proposed rule, amendment, or repeal;
9.18(2) an explanation of why the rule meets the requirements of the good cause
9.19exemption under subdivision 1; and
9.20(3) a statement that interested parties have five business days after the date of the
9.21notice to submit comments to the Office of Administrative Hearings.
9.22 Sec. 12. Minnesota Statutes 2010, section 14.389, subdivision 2, is amended to read:
9.23 Subd. 2. Notice and comment. The agency must publish notice of the proposed
9.24rule in the State Registerand, must mail the notice by United States mail or electronic
9.25mail to persons who have registered with the agency to receive mailed notices, and must
9.26give notice to the chairs and ranking minority members of the legislative policy and
9.27budget committees with jurisdiction over the subject matter of the proposed rules and to
9.28the Legislative Coordinating Commission. The mailed notice and the notice to legislators
9.29must include either a copy of the proposed rule or a description of the nature and effect
9.30of the proposed rule and a statement that a free copy is available from the agency upon
9.31request. The notice in the State Register must include the proposed rule or the amended
9.32rule in the form required by the revisor under section14.07 , an easily readable and
9.33understandable summary of the overall nature and effect of the proposed rule, and a
9.34citation to the most specific statutory authority for the rule, including authority for the
10.1rule to be adopted under the process in this section. The agency must allow 30 days after
10.2publication in the State Register for comment on the rule.
10.3 Sec. 13. REVIEW AND SUNSET OF CERTAIN RULES; REPORT.
10.4 Subdivision 1. Report. By December 1, 2012, the Pollution Control Agency,
10.5Department of Natural Resources, Board of Water and Soil Resources, Environmental
10.6Quality Board, and Department of Agriculture must each submit to the governor, the
10.7Legislative Coordinating Commission, the policy and funding committees and divisions
10.8with jurisdiction over the agency, and the revisor of statutes a list of all rules promulgated
10.9by the agency. The list must also include an explanation of why each rule or portion of the
10.10rule is not obsolete, unnecessary, or duplicative of other state or federal statutes or rules.
10.11In that submission, the agency must either report a timetable for repeal of each rule, or
10.12must develop a bill, and proposed justification, for submission to the appropriate policy
10.13committee to reauthorize the rule. The submission to reauthorize the rule must include
10.14for each rule:
10.15(1) the statutory authority;
10.16(2) intended outcomes;
10.17(3) the cost to state and local government, businesses, and individuals;
10.18(4) the scientific, technical, and economic information that supports it;
10.19(5) whether or not it has a substantial impact;
10.20(6) the relationship of the specified rule to other local, state, and federal statutes,
10.21rules, regulations, or ordinances;
10.22(7) a summary of any inconsistency and redundancy between the specified rule and
10.23other local, state, and federal statutes, rules, regulations, and ordinances; and
10.24(8) a summary of the means to better coordinate rulemaking between state agencies
10.25and other local, state, and federal agencies and a strategy and schedule to repeal or
10.26amend agency rules so as to achieve intended outcomes of the rules more effectively
10.27and efficiently.
10.28A report submitted under this subdivision must be signed by the person in the agency
10.29who is responsible for identifying and initiating rules and the commissioner of the agency.
10.30 Subd. 2. Rule sunset. Rules of the Pollution Control Agency, Department of
10.31Natural Resources, Board of Water and Soil Resources, Environmental Quality Board, and
10.32Department of Agriculture are repealed August 1, 2013, unless a new law is enacted after
10.33the effective date of this section providing that some or all of the rules remain in effect.
10.34 Sec. 14. REPEALER.
11.1Minnesota Statutes 2010, section 14.127, is repealed.
1.3on agency rules;amending Minnesota Statutes 2010, sections 3.842, subdivision
1.44a; 14.02, by adding a subdivision; 14.05, subdivision 1, by adding a subdivision;
1.514.116; 14.131; 14.19; 14.388, subdivision 2; 14.389, subdivision 2; Minnesota
1.6Statutes 2011 Supplement, sections 3D.06; 3D.10; 3D.11; repealing Minnesota
1.7Statutes 2010, section 14.127.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 3.842, subdivision 4a, is amended to read:
1.10 Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this
1.11subdivision, "committee" means the house of representatives policy committee or senate
1.12policy committee with primary jurisdiction over state governmental operations. The
1.13commission or a committee may object to a rule or proposed rule as provided in this
1.14subdivision
1.15
1.16or proposed rule: (1) is beyond the procedural or substantive authority delegated to
1.17the agency
1.18
1.19unnecessary or redundant; has a substantial impact; is not based on sound, reasonably
1.20available scientific, technical, economic, or other information; is not cost effective; is
1.21unduly burdensome; or is more restrictive than the standard, limitation, or requirement
1.22imposed by federal law or rule pertaining to the same subject matter. If the commission or
1.23a committee objects to all or some portion of a rule or proposed rule, the commission or
1.24committee
1.25objection must contain a concise statement of the commission's or committee's reasons for
2.1its action.
2.2
2.3
2.4of receipt of the notice under section 14.116, 14.388, or 14.389.
2.5(b) The secretary of state shall affix to each objection a certification of the date and
2.6time of its filing and as soon after the objection is filed as practicable shall electronically
2.7transmit a
2.8of statutes. The secretary of state shall also maintain a permanent register open to public
2.9inspection of all objections by the commission or committee.
2.10(c) The commission or committee shall publish and index an objection filed under
2.11this section in the next issue of the State Register. The revisor of statutes shall indicate
2.12the existence of the objection adjacent to the rule in question when that rule is published
2.13in Minnesota Rules.
2.14(d) Within 14 days after the filing of an objection by the commission or committee to
2.15a rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
2.16After receipt of the response, the commission or committee may withdraw or modify its
2.17objection. After the filing of an objection that is not subsequently withdrawn, the agency
2.18may not adopt the rule until the legislature adjourns the annual legislative session that
2.19began after the vote of the commission or committee. The commission or committee
2.20that files an objection that is not subsequently withdrawn must, as soon as practical,
2.21make a recommendation on a bill that approves the proposed rule, prohibits adoption of
2.22the proposed rule, or amends or repeals the law governing a previously adopted rule
2.23for which an objection was filed.
2.24(e) After the filing of an objection by the commission or committee that is not
2.25subsequently withdrawn, the burden is upon the agency in any proceeding for judicial
2.26review or for enforcement of the rule to establish by clear and convincing evidence that
2.27the whole or portion of the rule objected to is valid and demonstrates that the objection
2.28raised under paragraph (a) is not justified, based on the criteria for objecting to a rule
2.29under paragraph (a).
2.30(f) The failure of the commission or a committee to object to a rule is not an implied
2.31legislative authorization of its validity.
2.32(g) In accordance with sections
2.33may petition for a declaratory judgment to determine the validity of a rule objected to
2.34by the commission or committee. The action must be started within two years after an
2.35objection is filed in the Office of the Secretary of State.
3.1(h) The commission or a committee may intervene in litigation arising from agency
3.2action. For purposes of this paragraph, agency action means the whole or part of a rule, or
3.3the failure to issue a rule.
3.4 Sec. 2. Minnesota Statutes 2011 Supplement, section 3D.06, is amended to read:
3.53D.06 AGENCY REPORT TO COMMISSION.
3.6Before September 1 of the odd-numbered year before the year in which a state agency
3.7is subject to sunset review, the agency commissioner shall report to the commission:
3.8(1) information regarding the application to the agency of the criteria in section
3.10(2) a priority-based budget for the agency;
3.11(3) an inventory of all boards, commissions, committees, and other entities related
3.12to the agency;
3.13(4) a list of all rules promulgated by the state agency; and the following information
3.14for each rule: (i) the statutory authority; (ii) intended outcomes; (iii) the cost to state and
3.15local government, businesses, and individuals; (iv) the scientific, technical, and economic
3.16information that supports it; (v) whether or not it has a substantial impact; (vi) the
3.17relationship of the specified rule to other local, state, and federal statutes, rules, regulations,
3.18or ordinances; (vii) a summary of any inconsistency and redundancy between the specified
3.19rule and other local, state, and federal statutes, rules, regulations, and ordinances; and (viii)
3.20a summary of the means to better coordinate rulemaking between state agencies and other
3.21local, state, and federal agencies and a strategy and schedule to repeal or amend agency
3.22rules so as to achieve intended outcomes of the rules more effectively and efficiently; and
3.23(5) any other information that the agency commissioner considers appropriate or that
3.24is requested by the commission.
3.25
3.26 Sec. 3. Minnesota Statutes 2011 Supplement, section 3D.10, is amended to read:
3.273D.10 CRITERIA FOR REVIEW.
3.28The commission and its staff shall consider the following criteria in determining
3.29whether a public need exists for the continuation of a state agency or its advisory
3.30committees or for the performance of the functions of the agency or its advisory
3.31committees:
3.32(1) the efficiency and effectiveness with which the agency or the advisory committee
3.33operates;
4.1(2) an identification of the mission, goals, and objectives intended for the agency or
4.2advisory committee and of the problem or need that the agency or advisory committee
4.3was intended to address and the extent to which the mission, goals, and objectives have
4.4been achieved and the problem or need has been addressed;
4.5(3) an identification of any activities of the agency in addition to those granted by
4.6statute and of the authority for those activities and the extent to which those activities
4.7are needed;
4.8(4) an assessment of authority of the agency relating to fees, inspections,
4.9enforcement, and penalties;
4.10(5) whether less restrictive or alternative methods of performing any function that
4.11the agency performs could adequately protect or provide service to the public;
4.12(6) the extent to which the jurisdiction of the agency and the programs administered
4.13by the agency overlap or duplicate those of other agencies, the extent to which the agency
4.14coordinates with those agencies, and the extent to which the programs administered by the
4.15agency can be consolidated with the programs of other state agencies;
4.16(7) the promptness and effectiveness with which the agency addresses complaints
4.17concerning entities or other persons affected by the agency, including an assessment of the
4.18agency's administrative hearings process;
4.19(8) an assessment of the agency's rules and rulemaking process and the extent to
4.20which the agency has encouraged participation by the public in making its rules and
4.21decisions and the extent to which the public participation has resulted in rules that benefit
4.22the public;
4.23(9) an assessment of whether any of the agency's rules are:
4.24(i) beyond the procedural or substantive authority delegated to the agency; or
4.25(ii) inconsistent with the enabling statute; unnecessary or redundant; a substantial
4.26impact; not based on sound, reasonably available scientific, technical, economic, or other
4.27information; not cost effective; unduly burdensome; or more restrictive than the standard,
4.28limitation, or requirement imposed by federal law or rule pertaining to the same subject
4.29matter;
4.30
4.31applicable rules regarding equality of employment opportunity and the rights and privacy
4.32of individuals, and state law and applicable rules of any state agency regarding purchasing
4.33guidelines and programs for historically underutilized businesses;
4.34
4.35potential conflicts of interest of its employees;
5.1
5.2records management practices that enable the agency to respond efficiently to requests for
5.3public information; and
5.4
5.5abolished.
5.6 Sec. 4. Minnesota Statutes 2011 Supplement, section 3D.11, is amended to read:
5.73D.11 RECOMMENDATIONS.
5.8(a) In its report on a state agency, the commission shall:
5.9(1) make recommendations on the abolition, continuation, or reorganization of each
5.10affected state agency and its advisory committees and on the need for the performance of
5.11the functions of the agency and its advisory committees;
5.12(2) make recommendations on the consolidation, transfer, or reorganization of
5.13programs within state agencies not under review when the programs duplicate functions
5.14performed in agencies under review;
5.15(3) make recommendations to improve the operations of the agency, its policy body,
5.16and its advisory committees, including management recommendations that do not require
5.17a change in the agency's enabling statute; and
5.18(4) make recommendations for the repeal, consolidation, transfer, or amendment of
5.19the rules promulgated by the affected state agency.
5.20(b) The commission shall include the estimated fiscal impact of its recommendations
5.21and may recommend appropriation levels for certain programs to improve the operations
5.22of the state agency.
5.23(c) The commission shall have drafts of legislation prepared to carry out the
5.24commission's recommendations under this section, including legislation necessary
5.25to continue the existence of agencies that would otherwise sunset if the commission
5.26recommends continuation of an agency.
5.27(d) After the legislature acts on the report under section
5.28present to the legislative auditor the commission's recommendations that do not require
5.29a statutory change to be put into effect. Subject to the legislative audit commission's
5.30approval, the legislative auditor may examine the recommendations and include as part
5.31of the next audit of the agency a report on whether the agency has implemented the
5.32recommendations and, if so, in what manner.
5.33 Sec. 5. Minnesota Statutes 2010, section 14.02, is amended by adding a subdivision to
5.34read:
6.1 Subd. 5. Substantial impact. A rule has a "substantial economic impact" if the rule
6.2would result in, or likely result in:
6.3(1) an adverse effect or impact on the private-sector economy of the state of
6.4Minnesota of $1,000,000 or more in a single year;
6.5(2) a significant increase in costs or prices for consumers, individual private-sector
6.6industries, state agencies, local governments, individuals, or private-sector enterprises
6.7within certain geographic regions inside the state of Minnesota;
6.8(3) significant adverse impacts on the competitiveness of private-sector
6.9Minnesota-based enterprises, or on private-sector employment, investment, productivity,
6.10or innovation within the state of Minnesota; or
6.11(4) compliance costs, in the first year after the rule takes effect, of more than $25,000
6.12for any one business that has less than 50 full-time employees, or for any one statutory or
6.13home rule charter city that has less than ten full-time employees.
6.14 Sec. 6. Minnesota Statutes 2010, section 14.05, subdivision 1, is amended to read:
6.15 Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
6.16adopt, amend, suspend, or repeal its rules: (1) in accordance with the procedures specified
6.17in sections
6.18state or federal law; (3) only that are necessary to serve the public interest; and (4) in full
6.19compliance with its duties and obligations.
6.20(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
6.21automatically repealed on the effective date of the law's repeal unless there is another
6.22law authorizing the rules.
6.23(c) Except as provided in section
6.24authority for an agency to adopt, amend, suspend, or repeal rules.
6.25 Sec. 7. Minnesota Statutes 2010, section 14.05, is amended by adding a subdivision to
6.26read:
6.27 Subd. 1a. Limitation regarding certain policies, guidelines, and other
6.28nonbinding interpretive statements. An agency shall not seek to implement or enforce
6.29against any person a policy, guideline, or other nonbinding interpretive statement that
6.30meets the definition of a rule if the policy, guideline, or other nonbinding interpretive
6.31statement has not been adopted as a rule in accordance with this chapter.
6.32 Sec. 8. Minnesota Statutes 2010, section 14.116, is amended to read:
6.3314.116 NOTICE TO LEGISLATURE.
7.1When an agency mails notice of intent to adopt rules under section
7.2the agency must send a copy of the same notice and a copy of the statement of need and
7.3reasonableness to the chairs and ranking minority party members of the legislative policy
7.4and budget committees with jurisdiction over the subject matter of the proposed rules and
7.5to the Legislative Coordinating Commission.
7.6In addition, if the mailing of the notice is within two years of the effective date
7.7of the law granting the agency authority to adopt the proposed rules, the agency shall
7.8make reasonable efforts to send a copy of the notice and the statement to all sitting
7.9legislators who were chief house of representatives and senate authors of the bill granting
7.10the rulemaking authority. If the bill was amended to include this rulemaking authority,
7.11the agency shall make reasonable efforts to send the notice and the statement to the chief
7.12house of representatives and senate authors of the amendment granting rulemaking
7.13authority, rather than to the chief authors of the bill.
7.14 Sec. 9. Minnesota Statutes 2010, section 14.131, is amended to read:
7.1514.131 STATEMENT OF NEED AND REASONABLENESS.
7.16By the date of the section
7.17prepare, review, and make available for public review a statement of the need for and
7.18reasonableness of the rule. The statement of need and reasonableness must be prepared
7.19under rules adopted by the chief administrative law judge and must include the following
7.20to the extent the agency, through reasonable effort, can ascertain this information:
7.21(1) a description of the classes of persons who probably will be affected by the
7.22proposed rule, including classes that will bear the costs of the proposed rule and classes
7.23that will benefit from the proposed rule;
7.24(2) the probable costs to the agency and to any other agency of the implementation
7.25and enforcement of the proposed rule and any anticipated effect on state revenues;
7.26(3) a determination of whether there are less costly methods or less intrusive
7.27methods for achieving the purpose of the proposed rule;
7.28(4) a description of any alternative methods for achieving the purpose of the
7.29proposed rule that were seriously considered by the agency and the reasons why they
7.30were rejected in favor of the proposed rule;
7.31(5) the probable costs of complying with the proposed rule, including the portion
7.32of the total costs that will be borne by identifiable categories of affected parties, such as
7.33separate classes of governmental units, businesses, or individuals;
8.1(6) the probable costs or consequences of not adopting the proposed rule, including
8.2those costs or consequences borne by identifiable categories of affected parties, such as
8.3separate classes of government units, businesses, or individuals;
8.4(7) an assessment of any differences between the proposed rule and existing federal
8.5regulations and a specific analysis of the need for and reasonableness of each difference
8.6(8) an assessment of the cumulative effect of all rules adopted by the agency or any
8.7other agency, and all federal regulations and local ordinances or regulations, related to the
8.8specific purpose for which the rule is being adopted; and
8.9(9) the agency's findings and conclusions that support its determination that the
8.10proposed rule does not have a substantial economic impact.
8.11The statement must describe how the agency, in developing the rules, considered
8.12and implemented the legislative policy supporting performance-based regulatory systems
8.13set forth in section
8.14The statement must describe, with reasonable particularity, the scientific, technical,
8.15and economic information that supports the proposed rule.
8.16The statement must also describe the agency's efforts to provide additional
8.17notification under section
8.18be affected by the proposed rule or must explain why these efforts were not made.
8.19The agency must consult with the commissioner of management and budget to
8.20help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
8.21government. The agency must send a copy of the statement of need and reasonableness
8.22to the Legislative Reference Library when the notice of hearing is mailed under section
8.24 Sec. 10. Minnesota Statutes 2010, section 14.19, is amended to read:
8.2514.19 DEADLINE TO COMPLETE RULEMAKING.
8.26Within 180 days after issuance of the administrative law judge's report or that of the
8.27chief administrative law judge, the agency shall submit its notice of adoption, amendment,
8.28or repeal to the State Register for publication. If the agency has not submitted its notice to
8.29the State Register within 180 days, the rule is automatically withdrawn. The agency may
8.30not adopt the withdrawn rules without again following the procedures of sections
8.31to
8.32chief administrative law judge. The agency shall report to the Legislative Coordinating
8.33Commission, other appropriate committees of the legislature, and the governor its failure
8.34to adopt rules and the reasons for that failure. The 180-day time limit of this section
8.35does not include:
9.1(1) any days used for review by the chief administrative law judge or the commission
9.2if the review is required by law; or
9.3(2) days during which the rule cannot be adopted, because of votes by legislative
9.4committees under section
9.5
9.6
9.7 Sec. 11. Minnesota Statutes 2010, section 14.388, subdivision 2, is amended to read:
9.8 Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this
9.9section must give notice to the chairs and ranking minority members of the legislative
9.10policy and budget committees with jurisdiction over the subject matter of the proposed
9.11rules and to the Legislative Coordinating Commission, must give electronic notice of its
9.12intent in accordance with section
9.13States mail or electronic mail to persons who have registered their names with the agency
9.14under section
9.15agency submits the proposed rule to the Office of Administrative Hearings for review
9.16of its legality and must include:
9.17(1) the proposed rule, amendment, or repeal;
9.18(2) an explanation of why the rule meets the requirements of the good cause
9.19exemption under subdivision 1; and
9.20(3) a statement that interested parties have five business days after the date of the
9.21notice to submit comments to the Office of Administrative Hearings.
9.22 Sec. 12. Minnesota Statutes 2010, section 14.389, subdivision 2, is amended to read:
9.23 Subd. 2. Notice and comment. The agency must publish notice of the proposed
9.24rule in the State Register
9.25mail to persons who have registered with the agency to receive mailed notices, and must
9.26give notice to the chairs and ranking minority members of the legislative policy and
9.27budget committees with jurisdiction over the subject matter of the proposed rules and to
9.28the Legislative Coordinating Commission. The mailed notice and the notice to legislators
9.29must include either a copy of the proposed rule or a description of the nature and effect
9.30of the proposed rule and a statement that a free copy is available from the agency upon
9.31request. The notice in the State Register must include the proposed rule or the amended
9.32rule in the form required by the revisor under section
9.33understandable summary of the overall nature and effect of the proposed rule, and a
9.34citation to the most specific statutory authority for the rule, including authority for the
10.1rule to be adopted under the process in this section. The agency must allow 30 days after
10.2publication in the State Register for comment on the rule.
10.3 Sec. 13. REVIEW AND SUNSET OF CERTAIN RULES; REPORT.
10.4 Subdivision 1. Report. By December 1, 2012, the Pollution Control Agency,
10.5Department of Natural Resources, Board of Water and Soil Resources, Environmental
10.6Quality Board, and Department of Agriculture must each submit to the governor, the
10.7Legislative Coordinating Commission, the policy and funding committees and divisions
10.8with jurisdiction over the agency, and the revisor of statutes a list of all rules promulgated
10.9by the agency. The list must also include an explanation of why each rule or portion of the
10.10rule is not obsolete, unnecessary, or duplicative of other state or federal statutes or rules.
10.11In that submission, the agency must either report a timetable for repeal of each rule, or
10.12must develop a bill, and proposed justification, for submission to the appropriate policy
10.13committee to reauthorize the rule. The submission to reauthorize the rule must include
10.14for each rule:
10.15(1) the statutory authority;
10.16(2) intended outcomes;
10.17(3) the cost to state and local government, businesses, and individuals;
10.18(4) the scientific, technical, and economic information that supports it;
10.19(5) whether or not it has a substantial impact;
10.20(6) the relationship of the specified rule to other local, state, and federal statutes,
10.21rules, regulations, or ordinances;
10.22(7) a summary of any inconsistency and redundancy between the specified rule and
10.23other local, state, and federal statutes, rules, regulations, and ordinances; and
10.24(8) a summary of the means to better coordinate rulemaking between state agencies
10.25and other local, state, and federal agencies and a strategy and schedule to repeal or
10.26amend agency rules so as to achieve intended outcomes of the rules more effectively
10.27and efficiently.
10.28A report submitted under this subdivision must be signed by the person in the agency
10.29who is responsible for identifying and initiating rules and the commissioner of the agency.
10.30 Subd. 2. Rule sunset. Rules of the Pollution Control Agency, Department of
10.31Natural Resources, Board of Water and Soil Resources, Environmental Quality Board, and
10.32Department of Agriculture are repealed August 1, 2013, unless a new law is enacted after
10.33the effective date of this section providing that some or all of the rules remain in effect.
10.34 Sec. 14. REPEALER.
11.1Minnesota Statutes 2010, section 14.127, is repealed.
