Bill Text: MN SF1922 | 2011-2012 | 87th Legislature | Engrossed
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-Engrossed.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-Engrossed.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; 14.05, subdivision 1, by adding a subdivision; 14.116; 14.131; 14.388,
1.5subdivision 2; 14.389, subdivision 2; Minnesota Statutes 2011 Supplement,
1.6sections 3D.06; 3D.10; 3D.11.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 3.842, subdivision 4a, is amended to read:
1.9 Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this
1.10subdivision, "committee" means the house of representatives policy committee or senate
1.11policy committee with primary jurisdiction over state governmental operations. The
1.12commission or a committee may object to a rule or proposed rule as provided in this
1.13subdivision. If the commission or a committee objects to all or some portion of a rule
1.14because the commission or committee considers it to be on the grounds that the rule or
1.15proposed rule: (1) is beyond the procedural or substantive authority delegated to the
1.16agency, including a proposed rule submitted under section
14.15, subdivision 4, or
14.26,
1.17subdivision 3
, paragraph (c); (2) is inconsistent with the enabling statute; (3) is unnecessary
1.18or redundant; or (4) fails to meet the requirements of section 14.131. If the commission or
1.19a committee objects to all or some portion of a rule or proposed rule, the commission or
1.20committeemay shall file that objection in the Office of the Secretary of State. The filed
1.21objection must contain a concise statement of the commission's or committee's reasons for
1.22its action.An objection to a proposed rule submitted by the commission or a committee
1.23under section
14.15, subdivision 4, or
14.26, subdivision 3, paragraph (c), may not be filed
1.24before the rule is adopted For a proposed rule, the objection must be filed within 30 days
1.25of receipt of the notice under section 14.116, 14.388, or 14.389.
2.1(b) The secretary of state shall affix to each objection a certification of the date and
2.2time of its filing and as soon after the objection is filed as practicable shall electronically
2.3transmit acertified copy of it to the agency issuing the rule in question and to the revisor
2.4of statutes. The secretary of state shall also maintain a permanent register open to public
2.5inspection of all objections by the commission or committee.
2.6(c) The commission or committee shall publish and index an objection filed under
2.7this section in the next issue of the State Register. The revisor of statutes shall indicate
2.8the existence of the objection adjacent to the rule in question when that rule is published
2.9in Minnesota Rules.
2.10(d) Within 14 days after the filing of an objection by the commission or committee to
2.11a rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
2.12After receipt of the response, the commission or committee may withdraw or modify its
2.13objection. After the filing of an objection that is not subsequently withdrawn, the agency
2.14may not adopt the rule until the legislature adjourns the annual legislative session that
2.15began after the vote of the commission or committee. The commission or committee
2.16that files an objection that is not subsequently withdrawn must, as soon as practical,
2.17make a recommendation on a bill that approves the proposed rule, prohibits adoption of
2.18the proposed rule, or amends or repeals the law governing a previously adopted rule
2.19for which an objection was filed.
2.20(e) After the filing of an objection by the commission or committee that is not
2.21subsequently withdrawn, the burden is upon the agency in any proceeding for judicial
2.22review or for enforcement of the rule to establish by clear and convincing evidence that
2.23the whole or portion of the rule objected to is valid and demonstrates that the objection
2.24raised under paragraph (a) is not justified, based on the criteria for objecting to a rule
2.25under paragraph (a).
2.26(f) The failure of the commission or a committee to object to a rule is not an implied
2.27legislative authorization of its validity.
2.28(g) In accordance with sections14.44 and
14.45 , the commission or a committee
2.29may petition for a declaratory judgment to determine the validity of a rule objected to
2.30by the commission or committee. The action must be started within two years after an
2.31objection is filed in the Office of the Secretary of State.
2.32(h) The commission or a committee may intervene in litigation arising from agency
2.33action. For purposes of this paragraph, agency action means the whole or part of a rule, or
2.34the failure to issue a rule.
3.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 3D.06, is amended to read:
3.23D.06 AGENCY REPORT TO COMMISSION.
3.3Before September 1 of the odd-numbered year before the year in which a state agency
3.4is subject to sunset review, the agency commissioner shall report to the commission:
3.5(1) information regarding the application to the agency of the criteria in section
3.63D.10
;
3.7(2) a priority-based budget for the agency;
3.8(3) an inventory of all boards, commissions, committees, and other entities related
3.9to the agency;and
3.10(4) a list of all rules promulgated by the state agency; and the following information
3.11for each rule:
3.12(i) the statutory authority;
3.13(ii) the statement of need and reasonableness of the rule;
3.14(iii) whether there has been any change in circumstance requiring the rule to be
3.15amended or repealed;
3.16(iv) an assessment of the cumulative effect of the rule with all other federal and
3.17state regulations and local ordinances or regulations related to the specific purpose of
3.18the rule being proposed;
3.19(v) an assessment of any differences between the proposed rule and existing federal
3.20regulations and a specific analysis of the need and reasonableness of each difference; and
3.21(vi) a summary of the means to better coordinate rulemaking between state agencies
3.22and other local, state, and federal agencies and a strategy and schedule to repeal or
3.23amend agency rules so as to achieve intended outcomes of the rules more effectively
3.24and efficiently; and
3.25(5) any other information that the agency commissioner considers appropriate or that
3.26is requested by the commission.
3.27The September 1 deadline in this section does not apply in 2011.
3.28 Sec. 3. Minnesota Statutes 2011 Supplement, section 3D.10, is amended to read:
3.293D.10 CRITERIA FOR REVIEW.
3.30The commission and its staff shall consider the following criteria in determining
3.31whether a public need exists for the continuation of a state agency or its advisory
3.32committees or for the performance of the functions of the agency or its advisory
3.33committees:
3.34(1) the efficiency and effectiveness with which the agency or the advisory committee
3.35operates;
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:
4.24(i) are beyond the procedural or substantive authority delegated to the agency;
4.25(ii) are inconsistent with the enabling statute;
4.26(iii) are unnecessary or redundant; or
4.27(iv) fail to meet the requirements of section 14.131;
4.28(10) the extent to which the agency has complied with federal and state laws and
4.29applicable rules regarding equality of employment opportunity and the rights and privacy
4.30of individuals, and state law and applicable rules of any state agency regarding purchasing
4.31guidelines and programs for historically underutilized businesses;
4.32(10) (11) the extent to which the agency issues and enforces rules relating to
4.33potential conflicts of interest of its employees;
4.34(11) (12) the extent to which the agency complies with chapter 13 and follows
4.35records management practices that enable the agency to respond efficiently to requests for
4.36public information; and
5.1(12) (13) the effect of federal intervention or loss of federal funds if the agency is
5.2abolished.
5.3 Sec. 4. Minnesota Statutes 2011 Supplement, section 3D.11, is amended to read:
5.43D.11 RECOMMENDATIONS.
5.5(a) In its report on a state agency, the commission shall:
5.6(1) make recommendations on the abolition, continuation, or reorganization of each
5.7affected state agency and its advisory committees and on the need for the performance of
5.8the functions of the agency and its advisory committees;
5.9(2) make recommendations on the consolidation, transfer, or reorganization of
5.10programs within state agencies not under review when the programs duplicate functions
5.11performed in agencies under review;and
5.12(3) make recommendations to improve the operations of the agency, its policy body,
5.13and its advisory committees, including management recommendations that do not require
5.14a change in the agency's enabling statute; and
5.15(4) make recommendations for the repeal, consolidation, transfer, or amendment of
5.16the rules promulgated by the affected state agency.
5.17(b) The commission shall include the estimated fiscal impact of its recommendations
5.18and may recommend appropriation levels for certain programs to improve the operations
5.19of the state agency.
5.20(c) The commission shall have drafts of legislation prepared to carry out the
5.21commission's recommendations under this section, including legislation necessary
5.22to continue the existence of agencies that would otherwise sunset if the commission
5.23recommends continuation of an agency.
5.24(d) After the legislature acts on the report under section3D.09 , the commission shall
5.25present to the legislative auditor the commission's recommendations that do not require
5.26a statutory change to be put into effect. Subject to the legislative audit commission's
5.27approval, the legislative auditor may examine the recommendations and include as part
5.28of the next audit of the agency a report on whether the agency has implemented the
5.29recommendations and, if so, in what manner.
5.30 Sec. 5. Minnesota Statutes 2010, section 14.05, subdivision 1, is amended to read:
5.31 Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
5.32adopt, amend, suspend, or repeal its rules:
5.33(1) in accordance with the procedures specified in sections14.001 to
14.69 , and;
5.34(2) only pursuant to authority expressly delegated by state or federal law;
6.1(3) only that are necessary to serve the public interest; and
6.2(4) in full compliance with its duties and obligations.
6.3(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
6.4automatically repealed on the effective date of the law's repeal unless there is another
6.5law authorizing the rules.
6.6(c) Except as provided in section14.06 , sections
14.001 to
14.69 shall not be
6.7authority for an agency to adopt, amend, suspend, or repeal rules.
6.8 Sec. 6. Minnesota Statutes 2010, section 14.05, is amended by adding a subdivision to
6.9read:
6.10 Subd. 1a. Limitation regarding certain policies, guidelines, and other
6.11nonbinding interpretive statements. An agency shall not seek to implement or enforce
6.12against any person a policy, guideline, or other nonbinding interpretive statement that
6.13meets the definition of a rule if the policy, guideline, or other nonbinding interpretive
6.14statement has not been adopted as a rule in accordance with this chapter.
6.15 Sec. 7. Minnesota Statutes 2010, section 14.116, is amended to read:
6.1614.116 NOTICE TO LEGISLATURE.
6.17When an agency mails notice of intent to adopt rules under section14.14 or
14.22 ,
6.18the agency must send a copy of the same notice and a copy of the statement of need and
6.19reasonableness to the chairs and ranking minority party members of the legislative policy
6.20and budget committees with jurisdiction over the subject matter of the proposed rules and
6.21to the Legislative Coordinating Commission.
6.22In addition, if the mailing of the notice is within two years of the effective date
6.23of the law granting the agency authority to adopt the proposed rules, the agency shall
6.24make reasonable efforts to send a copy of the notice and the statement to all sitting
6.25legislators who were chief house of representatives and senate authors of the bill granting
6.26the rulemaking authority. If the bill was amended to include this rulemaking authority,
6.27the agency shall make reasonable efforts to send the notice and the statement to the chief
6.28house of representatives and senate authors of the amendment granting rulemaking
6.29authority, rather than to the chief authors of the bill.
6.30 Sec. 8. Minnesota Statutes 2010, section 14.131, is amended to read:
6.3114.131 STATEMENT OF NEED AND REASONABLENESS.
6.32By the date of the section14.14, subdivision 1a , notice, the agency must
6.33prepare, review, and make available for public review a statement of the need for and
7.1reasonableness of the rule. The statement of need and reasonableness must be prepared
7.2under rules adopted by the chief administrative law judge and must include the following
7.3to the extent the agency, through reasonable effort, can ascertain this information:
7.4(1) a description of the classes of persons who probably will be affected by the
7.5proposed rule, including classes that will bear the costs of the proposed rule and classes
7.6that will benefit from the proposed rule;
7.7(2) the probable costs to the agency and to any other agency of the implementation
7.8and enforcement of the proposed rule and any anticipated effect on state revenues;
7.9(3) a determination of whether there are less costly methods or less intrusive
7.10methods for achieving the purpose of the proposed rule;
7.11(4) a description of any alternative methods for achieving the purpose of the
7.12proposed rule that were seriously considered by the agency and the reasons why they
7.13were rejected in favor of the proposed rule;
7.14(5) the probable costs of complying with the proposed rule, including the portion
7.15of the total costs that will be borne by identifiable categories of affected parties, such as
7.16separate classes of governmental units, businesses, or individuals;
7.17(6) the probable costs or consequences of not adopting the proposed rule, including
7.18those costs or consequences borne by identifiable categories of affected parties, such as
7.19separate classes of government units, businesses, or individuals;and
7.20(7) an assessment of any differences between the proposed rule and existing federal
7.21regulations and a specific analysis of the need for and reasonableness of each difference;
7.22and
7.23(8) an assessment of the cumulative effect of the rule with other federal and state
7.24regulations and local ordinances or regulations, related to the specific purpose of the rule.
7.25The statement must describe how the agency, in developing the rules, considered
7.26and implemented the legislative policy supporting performance-based regulatory systems
7.27set forth in section14.002 .
7.28The statement must describe, with reasonable particularity, the scientific, technical,
7.29and economic information that supports the proposed rule.
7.30The statement must also describe the agency's efforts to provide additional
7.31notification under section14.14, subdivision 1a , to persons or classes of persons who may
7.32be affected by the proposed rule or must explain why these efforts were not made.
7.33The agency must consult with the commissioner of management and budget to
7.34help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
7.35government. The agency must send a copy of the statement of need and reasonableness
8.1to the Legislative Reference Library when the notice of hearing is mailed under section
8.214.14, subdivision 1a
.
8.3 Sec. 9. Minnesota Statutes 2010, section 14.388, subdivision 2, is amended to read:
8.4 Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this
8.5section must give notice to the chairs and ranking minority members of the legislative
8.6policy and budget committees with jurisdiction over the subject matter of the proposed
8.7rules and to the Legislative Coordinating Commission, must give electronic notice of its
8.8intent in accordance with section16E.07, subdivision 3 , and must give notice by United
8.9States mail or electronic mail to persons who have registered their names with the agency
8.10under section14.14, subdivision 1a . The notice must be given no later than the date the
8.11agency submits the proposed rule to the Office of Administrative Hearings for review
8.12of its legality and must include:
8.13(1) the proposed rule, amendment, or repeal;
8.14(2) an explanation of why the rule meets the requirements of the good cause
8.15exemption under subdivision 1; and
8.16(3) a statement that interested parties have five business days after the date of the
8.17notice to submit comments to the Office of Administrative Hearings.
8.18 Sec. 10. Minnesota Statutes 2010, section 14.389, subdivision 2, is amended to read:
8.19 Subd. 2. Notice and comment. The agency must publish notice of the proposed
8.20rule in the State Registerand, must mail the notice by United States mail or electronic
8.21mail to persons who have registered with the agency to receive mailed notices, and must
8.22give notice to the chairs and ranking minority members of the legislative policy and
8.23budget committees with jurisdiction over the subject matter of the proposed rules and to
8.24the Legislative Coordinating Commission. The mailed notice and the notice to legislators
8.25must include either a copy of the proposed rule or a description of the nature and effect
8.26of the proposed rule and a statement that a free copy is available from the agency upon
8.27request. The notice in the State Register must include the proposed rule or the amended
8.28rule in the form required by the revisor under section14.07 , an easily readable and
8.29understandable summary of the overall nature and effect of the proposed rule, and a
8.30citation to the most specific statutory authority for the rule, including authority for the
8.31rule to be adopted under the process in this section. The agency must allow 30 days after
8.32publication in the State Register for comment on the rule.
8.33 Sec. 11. REVIEW OF CERTAIN RULES; REPORT.
9.1 Subdivision 1. Report. By January 15, 2013, the Pollution Control Agency,
9.2Department of Natural Resources, Board of Water and Soil Resources, Environmental
9.3Quality Board, and Department of Agriculture must each submit to the governor, the
9.4Legislative Coordinating Commission, and the legislative policy and funding committees
9.5and divisions with jurisdiction over the agency, a list of all rules promulgated by the
9.6agency. The submission must include for each rule:
9.7(1) the statutory authority;
9.8(2) the statement of need and reasonableness of the rule;
9.9(3) whether there has been any change in circumstance regarding the rule to be
9.10amended or repealed;
9.11(4) an assessment of the cumulative effect of the rule with all other federal and
9.12state regulations and local ordinances or regulations related to the specific purpose of
9.13the rule being proposed;
9.14(5) an assessment of any differences between the proposed rule and existing federal
9.15regulations and a specific analysis of the need and reasonableness of each difference; and
9.16(6) a summary of the means to better coordinate rulemaking between state agencies
9.17and other local, state, and federal agencies and a strategy and schedule to repeal or
9.18amend agency rules so as to achieve intended outcomes of the rules more effectively
9.19and efficiently.
9.20A report submitted under this subdivision must be signed by the person in the agency
9.21who is responsible for identifying and initiating rules and the commissioner of the agency.
9.22 Subd. 2. Legislative action. By March 1, 2013, the legislature shall refer the agency
9.23submissions required under subdivision 1 to the respective policy and funding committees
9.24and divisions with jurisdiction over each agency. Each committee shall prepare a report by
9.25April 1, 2013, to the legislature, with draft legislation to sunset every rule that is obsolete,
9.26unnecessary, or duplicative of other state or federal statutes or rules.
1.3on agency rules;amending Minnesota Statutes 2010, sections 3.842, subdivision
1.44a; 14.05, subdivision 1, by adding a subdivision; 14.116; 14.131; 14.388,
1.5subdivision 2; 14.389, subdivision 2; Minnesota Statutes 2011 Supplement,
1.6sections 3D.06; 3D.10; 3D.11.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 3.842, subdivision 4a, is amended to read:
1.9 Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this
1.10subdivision, "committee" means the house of representatives policy committee or senate
1.11policy committee with primary jurisdiction over state governmental operations. The
1.12commission or a committee may object to a rule or proposed rule as provided in this
1.13subdivision
1.14
1.15proposed rule: (1) is beyond the procedural or substantive authority delegated to the
1.16agency
1.17
1.18or redundant; or (4) fails to meet the requirements of section 14.131. If the commission or
1.19a committee objects to all or some portion of a rule or proposed rule, the commission or
1.20committee
1.21objection must contain a concise statement of the commission's or committee's reasons for
1.22its action.
1.23
1.24
1.25of receipt of the notice under section 14.116, 14.388, or 14.389.
2.1(b) The secretary of state shall affix to each objection a certification of the date and
2.2time of its filing and as soon after the objection is filed as practicable shall electronically
2.3transmit a
2.4of statutes. The secretary of state shall also maintain a permanent register open to public
2.5inspection of all objections by the commission or committee.
2.6(c) The commission or committee shall publish and index an objection filed under
2.7this section in the next issue of the State Register. The revisor of statutes shall indicate
2.8the existence of the objection adjacent to the rule in question when that rule is published
2.9in Minnesota Rules.
2.10(d) Within 14 days after the filing of an objection by the commission or committee to
2.11a rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
2.12After receipt of the response, the commission or committee may withdraw or modify its
2.13objection. After the filing of an objection that is not subsequently withdrawn, the agency
2.14may not adopt the rule until the legislature adjourns the annual legislative session that
2.15began after the vote of the commission or committee. The commission or committee
2.16that files an objection that is not subsequently withdrawn must, as soon as practical,
2.17make a recommendation on a bill that approves the proposed rule, prohibits adoption of
2.18the proposed rule, or amends or repeals the law governing a previously adopted rule
2.19for which an objection was filed.
2.20(e) After the filing of an objection by the commission or committee that is not
2.21subsequently withdrawn, the burden is upon the agency in any proceeding for judicial
2.22review or for enforcement of the rule to establish by clear and convincing evidence that
2.23the whole or portion of the rule objected to is valid and demonstrates that the objection
2.24raised under paragraph (a) is not justified, based on the criteria for objecting to a rule
2.25under paragraph (a).
2.26(f) The failure of the commission or a committee to object to a rule is not an implied
2.27legislative authorization of its validity.
2.28(g) In accordance with sections
2.29may petition for a declaratory judgment to determine the validity of a rule objected to
2.30by the commission or committee. The action must be started within two years after an
2.31objection is filed in the Office of the Secretary of State.
2.32(h) The commission or a committee may intervene in litigation arising from agency
2.33action. For purposes of this paragraph, agency action means the whole or part of a rule, or
2.34the failure to issue a rule.
3.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 3D.06, is amended to read:
3.23D.06 AGENCY REPORT TO COMMISSION.
3.3Before September 1 of the odd-numbered year before the year in which a state agency
3.4is subject to sunset review, the agency commissioner shall report to the commission:
3.5(1) information regarding the application to the agency of the criteria in section
3.7(2) a priority-based budget for the agency;
3.8(3) an inventory of all boards, commissions, committees, and other entities related
3.9to the agency;
3.10(4) a list of all rules promulgated by the state agency; and the following information
3.11for each rule:
3.12(i) the statutory authority;
3.13(ii) the statement of need and reasonableness of the rule;
3.14(iii) whether there has been any change in circumstance requiring the rule to be
3.15amended or repealed;
3.16(iv) an assessment of the cumulative effect of the rule with all other federal and
3.17state regulations and local ordinances or regulations related to the specific purpose of
3.18the rule being proposed;
3.19(v) an assessment of any differences between the proposed rule and existing federal
3.20regulations and a specific analysis of the need and reasonableness of each difference; and
3.21(vi) a summary of the means to better coordinate rulemaking between state agencies
3.22and other local, state, and federal agencies and a strategy and schedule to repeal or
3.23amend agency rules so as to achieve intended outcomes of the rules more effectively
3.24and efficiently; and
3.25(5) any other information that the agency commissioner considers appropriate or that
3.26is requested by the commission.
3.27
3.28 Sec. 3. Minnesota Statutes 2011 Supplement, section 3D.10, is amended to read:
3.293D.10 CRITERIA FOR REVIEW.
3.30The commission and its staff shall consider the following criteria in determining
3.31whether a public need exists for the continuation of a state agency or its advisory
3.32committees or for the performance of the functions of the agency or its advisory
3.33committees:
3.34(1) the efficiency and effectiveness with which the agency or the advisory committee
3.35operates;
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:
4.24(i) are beyond the procedural or substantive authority delegated to the agency;
4.25(ii) are inconsistent with the enabling statute;
4.26(iii) are unnecessary or redundant; or
4.27(iv) fail to meet the requirements of section 14.131;
4.28(10) the extent to which the agency has complied with federal and state laws and
4.29applicable rules regarding equality of employment opportunity and the rights and privacy
4.30of individuals, and state law and applicable rules of any state agency regarding purchasing
4.31guidelines and programs for historically underutilized businesses;
4.32
4.33potential conflicts of interest of its employees;
4.34
4.35records management practices that enable the agency to respond efficiently to requests for
4.36public information; and
5.1
5.2abolished.
5.3 Sec. 4. Minnesota Statutes 2011 Supplement, section 3D.11, is amended to read:
5.43D.11 RECOMMENDATIONS.
5.5(a) In its report on a state agency, the commission shall:
5.6(1) make recommendations on the abolition, continuation, or reorganization of each
5.7affected state agency and its advisory committees and on the need for the performance of
5.8the functions of the agency and its advisory committees;
5.9(2) make recommendations on the consolidation, transfer, or reorganization of
5.10programs within state agencies not under review when the programs duplicate functions
5.11performed in agencies under review;
5.12(3) make recommendations to improve the operations of the agency, its policy body,
5.13and its advisory committees, including management recommendations that do not require
5.14a change in the agency's enabling statute; and
5.15(4) make recommendations for the repeal, consolidation, transfer, or amendment of
5.16the rules promulgated by the affected state agency.
5.17(b) The commission shall include the estimated fiscal impact of its recommendations
5.18and may recommend appropriation levels for certain programs to improve the operations
5.19of the state agency.
5.20(c) The commission shall have drafts of legislation prepared to carry out the
5.21commission's recommendations under this section, including legislation necessary
5.22to continue the existence of agencies that would otherwise sunset if the commission
5.23recommends continuation of an agency.
5.24(d) After the legislature acts on the report under section
5.25present to the legislative auditor the commission's recommendations that do not require
5.26a statutory change to be put into effect. Subject to the legislative audit commission's
5.27approval, the legislative auditor may examine the recommendations and include as part
5.28of the next audit of the agency a report on whether the agency has implemented the
5.29recommendations and, if so, in what manner.
5.30 Sec. 5. Minnesota Statutes 2010, section 14.05, subdivision 1, is amended to read:
5.31 Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
5.32adopt, amend, suspend, or repeal its rules:
5.33(1) in accordance with the procedures specified in sections
5.34(2) only pursuant to authority expressly delegated by state or federal law;
6.1(3) only that are necessary to serve the public interest; and
6.2(4) in full compliance with its duties and obligations.
6.3(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
6.4automatically repealed on the effective date of the law's repeal unless there is another
6.5law authorizing the rules.
6.6(c) Except as provided in section
6.7authority for an agency to adopt, amend, suspend, or repeal rules.
6.8 Sec. 6. Minnesota Statutes 2010, section 14.05, is amended by adding a subdivision to
6.9read:
6.10 Subd. 1a. Limitation regarding certain policies, guidelines, and other
6.11nonbinding interpretive statements. An agency shall not seek to implement or enforce
6.12against any person a policy, guideline, or other nonbinding interpretive statement that
6.13meets the definition of a rule if the policy, guideline, or other nonbinding interpretive
6.14statement has not been adopted as a rule in accordance with this chapter.
6.15 Sec. 7. Minnesota Statutes 2010, section 14.116, is amended to read:
6.1614.116 NOTICE TO LEGISLATURE.
6.17When an agency mails notice of intent to adopt rules under section
6.18the agency must send a copy of the same notice and a copy of the statement of need and
6.19reasonableness to the chairs and ranking minority party members of the legislative policy
6.20and budget committees with jurisdiction over the subject matter of the proposed rules and
6.21to the Legislative Coordinating Commission.
6.22In addition, if the mailing of the notice is within two years of the effective date
6.23of the law granting the agency authority to adopt the proposed rules, the agency shall
6.24make reasonable efforts to send a copy of the notice and the statement to all sitting
6.25legislators who were chief house of representatives and senate authors of the bill granting
6.26the rulemaking authority. If the bill was amended to include this rulemaking authority,
6.27the agency shall make reasonable efforts to send the notice and the statement to the chief
6.28house of representatives and senate authors of the amendment granting rulemaking
6.29authority, rather than to the chief authors of the bill.
6.30 Sec. 8. Minnesota Statutes 2010, section 14.131, is amended to read:
6.3114.131 STATEMENT OF NEED AND REASONABLENESS.
6.32By the date of the section
6.33prepare, review, and make available for public review a statement of the need for and
7.1reasonableness of the rule. The statement of need and reasonableness must be prepared
7.2under rules adopted by the chief administrative law judge and must include the following
7.3to the extent the agency, through reasonable effort, can ascertain this information:
7.4(1) a description of the classes of persons who probably will be affected by the
7.5proposed rule, including classes that will bear the costs of the proposed rule and classes
7.6that will benefit from the proposed rule;
7.7(2) the probable costs to the agency and to any other agency of the implementation
7.8and enforcement of the proposed rule and any anticipated effect on state revenues;
7.9(3) a determination of whether there are less costly methods or less intrusive
7.10methods for achieving the purpose of the proposed rule;
7.11(4) a description of any alternative methods for achieving the purpose of the
7.12proposed rule that were seriously considered by the agency and the reasons why they
7.13were rejected in favor of the proposed rule;
7.14(5) the probable costs of complying with the proposed rule, including the portion
7.15of the total costs that will be borne by identifiable categories of affected parties, such as
7.16separate classes of governmental units, businesses, or individuals;
7.17(6) the probable costs or consequences of not adopting the proposed rule, including
7.18those costs or consequences borne by identifiable categories of affected parties, such as
7.19separate classes of government units, businesses, or individuals;
7.20(7) an assessment of any differences between the proposed rule and existing federal
7.21regulations and a specific analysis of the need for and reasonableness of each difference;
7.22and
7.23(8) an assessment of the cumulative effect of the rule with other federal and state
7.24regulations and local ordinances or regulations, related to the specific purpose of the rule.
7.25The statement must describe how the agency, in developing the rules, considered
7.26and implemented the legislative policy supporting performance-based regulatory systems
7.27set forth in section
7.28The statement must describe, with reasonable particularity, the scientific, technical,
7.29and economic information that supports the proposed rule.
7.30The statement must also describe the agency's efforts to provide additional
7.31notification under section
7.32be affected by the proposed rule or must explain why these efforts were not made.
7.33The agency must consult with the commissioner of management and budget to
7.34help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
7.35government. The agency must send a copy of the statement of need and reasonableness
8.1to the Legislative Reference Library when the notice of hearing is mailed under section
8.3 Sec. 9. Minnesota Statutes 2010, section 14.388, subdivision 2, is amended to read:
8.4 Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this
8.5section must give notice to the chairs and ranking minority members of the legislative
8.6policy and budget committees with jurisdiction over the subject matter of the proposed
8.7rules and to the Legislative Coordinating Commission, must give electronic notice of its
8.8intent in accordance with section
8.9States mail or electronic mail to persons who have registered their names with the agency
8.10under section
8.11agency submits the proposed rule to the Office of Administrative Hearings for review
8.12of its legality and must include:
8.13(1) the proposed rule, amendment, or repeal;
8.14(2) an explanation of why the rule meets the requirements of the good cause
8.15exemption under subdivision 1; and
8.16(3) a statement that interested parties have five business days after the date of the
8.17notice to submit comments to the Office of Administrative Hearings.
8.18 Sec. 10. Minnesota Statutes 2010, section 14.389, subdivision 2, is amended to read:
8.19 Subd. 2. Notice and comment. The agency must publish notice of the proposed
8.20rule in the State Register
8.21mail to persons who have registered with the agency to receive mailed notices, and must
8.22give notice to the chairs and ranking minority members of the legislative policy and
8.23budget committees with jurisdiction over the subject matter of the proposed rules and to
8.24the Legislative Coordinating Commission. The mailed notice and the notice to legislators
8.25must include either a copy of the proposed rule or a description of the nature and effect
8.26of the proposed rule and a statement that a free copy is available from the agency upon
8.27request. The notice in the State Register must include the proposed rule or the amended
8.28rule in the form required by the revisor under section
8.29understandable summary of the overall nature and effect of the proposed rule, and a
8.30citation to the most specific statutory authority for the rule, including authority for the
8.31rule to be adopted under the process in this section. The agency must allow 30 days after
8.32publication in the State Register for comment on the rule.
8.33 Sec. 11. REVIEW OF CERTAIN RULES; REPORT.
9.1 Subdivision 1. Report. By January 15, 2013, the Pollution Control Agency,
9.2Department of Natural Resources, Board of Water and Soil Resources, Environmental
9.3Quality Board, and Department of Agriculture must each submit to the governor, the
9.4Legislative Coordinating Commission, and the legislative policy and funding committees
9.5and divisions with jurisdiction over the agency, a list of all rules promulgated by the
9.6agency. The submission must include for each rule:
9.7(1) the statutory authority;
9.8(2) the statement of need and reasonableness of the rule;
9.9(3) whether there has been any change in circumstance regarding the rule to be
9.10amended or repealed;
9.11(4) an assessment of the cumulative effect of the rule with all other federal and
9.12state regulations and local ordinances or regulations related to the specific purpose of
9.13the rule being proposed;
9.14(5) an assessment of any differences between the proposed rule and existing federal
9.15regulations and a specific analysis of the need and reasonableness of each difference; and
9.16(6) a summary of the means to better coordinate rulemaking between state agencies
9.17and other local, state, and federal agencies and a strategy and schedule to repeal or
9.18amend agency rules so as to achieve intended outcomes of the rules more effectively
9.19and efficiently.
9.20A report submitted under this subdivision must be signed by the person in the agency
9.21who is responsible for identifying and initiating rules and the commissioner of the agency.
9.22 Subd. 2. Legislative action. By March 1, 2013, the legislature shall refer the agency
9.23submissions required under subdivision 1 to the respective policy and funding committees
9.24and divisions with jurisdiction over each agency. Each committee shall prepare a report by
9.25April 1, 2013, to the legislature, with draft legislation to sunset every rule that is obsolete,
9.26unnecessary, or duplicative of other state or federal statutes or rules.
