1.1                          A bill for an act
  1.2             relating to state government; administrative 
  1.3             rulemaking; revising the procedures for the adoption 
  1.4             and review of agency rules; appropriating money; 
  1.5             amending Minnesota Statutes 1994, sections 3.842, 
  1.6             subdivisions 2, 4, and by adding a subdivision; 14.04; 
  1.7             14.05, subdivision 2, and by adding a subdivision; 
  1.8             14.06; 14.08; 14.09; 14.131; 14.14, subdivision 1a; 
  1.9             14.15, subdivisions 3 and 4; 14.16, subdivision 1; 
  1.10            14.19; 14.22, subdivision 1; 14.23; 14.24; 14.25; 
  1.11            14.26; 14.365; 14.48; 14.51; 16A.1285, subdivision 2; 
  1.12            17.84; 43A.04, by adding a subdivision; 62N.05, by 
  1.13            adding a subdivision; and 84.027, by adding a 
  1.14            subdivision; proposing coding for new law in Minnesota 
  1.15            Statutes, chapters 14; and 97A; repealing Minnesota 
  1.16            Statutes 1994, sections 3.846; 14.10; 14.11; 14.115; 
  1.17            14.12; 14.1311; 14.235; 14.29; 14.30; 14.305; 14.31; 
  1.18            14.32; 14.33; 14.34; 14.35; 14.36; and 17.83. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 1994, section 3.842, 
  1.21  subdivision 2, is amended to read: 
  1.22     Subd. 2.  [JURISDICTION.] The jurisdiction of the 
  1.23  commission includes all rules as defined in section 14.02, 
  1.24  subdivision 4.  The commission also has jurisdiction of rules 
  1.25  which are filed with the secretary of state in accordance with 
  1.26  section sections 14.38, subdivisions 5, 6, 7, 8, 9, and 11 or 
  1.27  were filed with the secretary of state in accordance with the 
  1.28  provisions of section 14.38, subdivisions 5 to 9, which were in 
  1.29  effect on the date the rules were filed; 14.386; and 14.388.  
  1.30     The commission may periodically review statutory exemptions 
  1.31  to the rulemaking provisions of this chapter.  
  1.32     Sec. 2.  Minnesota Statutes 1994, section 3.842, 
  2.1   subdivision 4, is amended to read: 
  2.2      Subd. 4.  [SUSPENSIONS.] (a) The commission may, on any of 
  2.3   the grounds listed in paragraph (b) and on the basis of the 
  2.4   testimony received at the public hearings, suspend any rule 
  2.5   complained of by the affirmative vote of at least six members 
  2.6   provided the provisions of section 3.844 have been met.  If any 
  2.7   rule is suspended, the commission shall as soon as possible 
  2.8   place before the legislature, at the next year's session, a bill 
  2.9   to repeal the suspended rule.  If the bill is not enacted in 
  2.10  that year's session, the rule is effective upon adjournment of 
  2.11  the session unless the agency has repealed it.  If the bill is 
  2.12  enacted, the rule is repealed.  
  2.13     (b) A rule suspension under paragraph (a) must be based on 
  2.14  one or more of the following reasons: 
  2.15     (1) an absence of statutory authority; 
  2.16     (2) an emergency relating to public health, safety, or 
  2.17  welfare; 
  2.18     (3) a failure to comply with legislative intent; 
  2.19     (4) a conflict with state law; 
  2.20     (5) a change in circumstances since enactment of the 
  2.21  earliest law upon which the rule is based; 
  2.22     (6) arbitrariness and capriciousness, or imposition of an 
  2.23  undue hardship.  
  2.24     (c) This section authorizes the commission to suspend a 
  2.25  rule only when the vote to suspend is taken, and the effective 
  2.26  date of the suspension occurs, at a time when the legislature 
  2.27  could not enact a bill to repeal the rule. 
  2.28     Sec. 3.  Minnesota Statutes 1994, section 3.842, is amended 
  2.29  by adding a subdivision to read: 
  2.30     Subd. 4a.  [OBJECTIONS TO RULES.] (a) If the legislative 
  2.31  commission to review administrative rules objects to all or some 
  2.32  portion of a rule, including a proposed rule submitted under 
  2.33  section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph 
  2.34  (c), the commission may file that objection in the office of the 
  2.35  secretary of state.  The filed objection must contain a concise 
  2.36  statement of the commission's reasons for its action.  An 
  3.1   objection to a proposed rule submitted under section 14.15, 
  3.2   subdivision 4, or 14.26, subdivision 3, paragraph (c), may not 
  3.3   be filed before the rule is adopted. 
  3.4      (b) The secretary of state shall affix to each objection a 
  3.5   certification of the date and time of its filing and as soon 
  3.6   after the objection is filed as practicable shall transmit a 
  3.7   certified copy of it to the agency issuing the rule in question 
  3.8   and the revisor of statutes.  The secretary of state shall also 
  3.9   maintain a permanent register open to public inspection of all 
  3.10  objections by the commission.  
  3.11     (c) The legislative commission to review administrative 
  3.12  rules shall publish and index an objection filed under this 
  3.13  section in the next issue of the State Register.  The revisor of 
  3.14  statutes shall indicate its existence adjacent to the rule in 
  3.15  question when that rule is published in Minnesota Rules. 
  3.16     (d) Within 14 days after the filing of an objection by the 
  3.17  commission to a rule, the issuing agency shall respond in 
  3.18  writing to the commission.  After receipt of the response, the 
  3.19  commission may withdraw or modify its objection.  
  3.20     (e) After the filing of an objection by the commission that 
  3.21  is not subsequently withdrawn, the burden is upon the agency in 
  3.22  any proceeding for judicial review or for enforcement of the 
  3.23  rule to establish that the whole or portion of the rule objected 
  3.24  to is valid.  
  3.25     (f) The failure of the commission to object to a rule is 
  3.26  not an implied legislative authorization of its validity. 
  3.27     (g) Pursuant to sections 14.44 and 14.45, the commission 
  3.28  may petition for a declaratory judgment to determine the 
  3.29  validity of any rule objected to by the commission.  
  3.30     This action must be started within two years after an 
  3.31  objection is filed in the office of the secretary of state.  
  3.32     (h) The commission may intervene in litigation arising from 
  3.33  agency action.  For purposes of this paragraph, agency action 
  3.34  means the whole or part of a rule, or the failure to issue a 
  3.35  rule. 
  3.36     Sec. 4.  Minnesota Statutes 1994, section 14.04, is amended 
  4.1   to read: 
  4.2      14.04 [AGENCY ORGANIZATION; GUIDEBOOK.] 
  4.3      To assist interested persons dealing with it, each agency 
  4.4   shall, in a manner prescribed by the commissioner of 
  4.5   administration, prepare a description of its organization, 
  4.6   stating the process whereby general course and method of its 
  4.7   operations and where and how the public may obtain information 
  4.8   or make submissions or requests.  The commissioner of 
  4.9   administration shall publish these descriptions at least once 
  4.10  every four years commencing in 1981 in a guidebook of state 
  4.11  agencies.  Notice of the publication of the guidebook shall be 
  4.12  published in the State Register and given in newsletters, 
  4.13  newspapers, or other publications, or through other means of 
  4.14  communication. 
  4.15     Sec. 5.  Minnesota Statutes 1994, section 14.05, 
  4.16  subdivision 2, is amended to read: 
  4.17     Subd. 2.  [AUTHORITY TO MODIFY PROPOSED RULE.] (a) An 
  4.18  agency may modify a proposed rule in accordance with the 
  4.19  procedures of the administrative procedure act.  However, an 
  4.20  agency may not modify a proposed rule so that it is 
  4.21  substantially different from the proposed rule in the notice of 
  4.22  intent to adopt rules or notice of hearing.  
  4.23     (b) A modification does not make a proposed rule 
  4.24  substantially different if: 
  4.25     (1) the differences are within the scope of the matter 
  4.26  announced in the notice of intent to adopt or notice of hearing 
  4.27  and are in character with the issues raised in that notice; 
  4.28     (2) the differences are a logical outgrowth of the contents 
  4.29  of the notice of intent to adopt or notice of hearing and the 
  4.30  comments submitted in response to the notice; and 
  4.31     (3) the notice of intent to adopt or notice of hearing 
  4.32  provided fair warning that the outcome of that rulemaking 
  4.33  proceeding could be the rule in question. 
  4.34     (c) In determining whether the notice of intent to adopt or 
  4.35  notice of hearing provided fair warning that the outcome of that 
  4.36  rulemaking proceeding could be the rule in question the 
  5.1   following factors must be considered: 
  5.2      (1) the extent to which persons who will be affected by the 
  5.3   rule should have understood that the rulemaking proceeding on 
  5.4   which it is based could affect their interests; 
  5.5      (2) the extent to which the subject matter of the rule or 
  5.6   issues determined by the rule are different from the subject 
  5.7   matter or issues contained in the notice of intent to adopt or 
  5.8   notice of hearing; and 
  5.9      (3) the extent to which the effects of the rule differ from 
  5.10  the effects of the proposed rule contained in the notice of 
  5.11  intent to adopt or notice of hearing.  
  5.12     Sec. 6.  Minnesota Statutes 1994, section 14.05, is amended 
  5.13  by adding a subdivision to read: 
  5.14     Subd. 5.  [REVIEW AND REPEAL OF RULES.] By December 1 of 
  5.15  each year, an agency shall submit a list of all the rules of the 
  5.16  agency to the governor, the legislative commission to review 
  5.17  administrative rules, and the revisor of statutes.  The list 
  5.18  must identify any rules that are obsolete and should be 
  5.19  repealed.  The list must also include an explanation of why the 
  5.20  rule is obsolete and the agency's timetable for repeal. 
  5.21     Sec. 7.  Minnesota Statutes 1994, section 14.06, is amended 
  5.22  to read: 
  5.23     14.06 [REQUIRED RULES.] 
  5.24     (a) Each agency shall adopt rules, in the form prescribed 
  5.25  by the revisor of statutes, setting forth the nature and 
  5.26  requirements of all formal and informal procedures related to 
  5.27  the administration of official agency duties to the extent that 
  5.28  those procedures directly affect the rights of or procedures 
  5.29  available to the public.  
  5.30     (b) Each agency shall, as soon as feasible and to the 
  5.31  extent practicable, adopt rules to supersede those principles of 
  5.32  law or policy lawfully declared by the agency as the basis for 
  5.33  its decisions in particular cases it intends to rely on as 
  5.34  precedents in future cases. 
  5.35     Sec. 8.  Minnesota Statutes 1994, section 14.08, is amended 
  5.36  to read: 
  6.1      14.08 [REVISOR OF STATUTES APPROVAL OF RULE AND RULE FORM; 
  6.2   COSTS.] 
  6.3      (a) Two copies of a rule adopted pursuant to the provisions 
  6.4   of section 14.26 or 14.32 shall be submitted by the agency to 
  6.5   the attorney general administrative law judge.  The attorney 
  6.6   general administrative law judge shall send one copy of the rule 
  6.7   to the revisor on the same day as it is submitted by the agency 
  6.8   under section 14.26 or 14.32.  Within five days after receipt of 
  6.9   the rule, excluding weekends and holidays, the revisor shall 
  6.10  either return the rule with a certificate of approval of the 
  6.11  form of the rule to the attorney general administrative law 
  6.12  judge or notify the attorney general administrative law judge 
  6.13  and the agency that the form of the rule will not be approved.  
  6.14     If the attorney general administrative law judge 
  6.15  disapproves a rule, the agency may modify it and the agency 
  6.16  shall submit two copies of the modified rule to the attorney 
  6.17  general administrative law judge who shall send a copy to the 
  6.18  revisor for approval as to form as described in this paragraph. 
  6.19     (b) One copy of a rule adopted after a public hearing shall 
  6.20  be submitted by the agency to the revisor for approval of the 
  6.21  form of the rule.  Within five working days after receipt of the 
  6.22  rule, the revisor shall either return the rule with a 
  6.23  certificate of approval to the agency or notify the agency that 
  6.24  the form of the rule will not be approved.  
  6.25     (c) If the revisor refuses to approve the form of the rule, 
  6.26  the revisor's notice shall revise the rule so it is in the 
  6.27  correct form.  
  6.28     (d) The attorney general administrative law judge shall 
  6.29  assess an agency for the attorney general's actual cost of 
  6.30  processing rules under this section.  The agency shall pay the 
  6.31  attorney general's assessments using the procedures of section 
  6.32  8.15.  Each agency shall include in its budget money to pay 
  6.33  the attorney general's assessments.  Receipts from the 
  6.34  assessment must be deposited in the state treasury and credited 
  6.35  to the general fund administrative hearings account created in 
  6.36  section 14.54. 
  7.1      Sec. 9.  Minnesota Statutes 1994, section 14.09, is amended 
  7.2   to read: 
  7.3      14.09 [PETITION FOR ADOPTION OF RULE.] 
  7.4      Any interested person may petition an agency requesting the 
  7.5   adoption, suspension, amendment, or repeal of any rule.  The 
  7.6   petition shall be specific as to what action is requested and 
  7.7   the need for the action.  Upon receiving a petition an agency 
  7.8   shall have 60 days in which to make a specific and detailed 
  7.9   reply in writing as to its planned disposition of the request.  
  7.10  If the agency states its intention to hold a public hearing on 
  7.11  the subject of the request, it shall proceed according to 
  7.12  sections 14.05 to 14.36 14.28.  The attorney general 
  7.13  administrative law judge shall prescribe by rule the form for 
  7.14  all petitions under this section and may prescribe further 
  7.15  procedures for their submission, consideration, and disposition. 
  7.16     Sec. 10.  [14.101] [ADVICE ON POSSIBLE RULES.] 
  7.17     Subdivision 1.  [REQUIRED NOTICE.] In addition to seeking 
  7.18  information by other methods designed to reach persons or 
  7.19  classes of persons who might be affected by the proposal, an 
  7.20  agency, before publication of a notice of intent to adopt or a 
  7.21  notice of hearing, shall solicit comments from the public on the 
  7.22  subject matter of a possible rulemaking proposal under active 
  7.23  consideration within the agency by causing notice to be 
  7.24  published in the State Register.  The notice must include a 
  7.25  description of the subject matter of the proposal, the types of 
  7.26  groups and individuals likely to be affected, and indicate 
  7.27  where, when, and how persons may comment on the proposal and 
  7.28  whether and how drafts of any proposal may be obtained from the 
  7.29  agency. 
  7.30     Subd. 2.  [ADVISORY COMMITTEES.] Each agency may also 
  7.31  appoint committees to comment, before publication of a notice of 
  7.32  intent to adopt or a notice of hearing, on the subject matter of 
  7.33  a possible rulemaking under active consideration within the 
  7.34  agency.  The membership of those committees must be published at 
  7.35  least annually in the State Register. 
  7.36     Subd. 3.  [EFFECT OF GOOD FAITH COMPLIANCE.] If an agency 
  8.1   has made a good faith effort to comply with this section, a rule 
  8.2   may not be invalidated on the grounds that the contents of this 
  8.3   notice are insufficient or inaccurate. 
  8.4      Sec. 11.  [14.125] [TIME LIMIT ON AUTHORITY TO ADOPT, 
  8.5   AMEND, OR REPEAL RULES.] 
  8.6      An agency shall publish a notice of intent to adopt rules 
  8.7   or a notice of hearing within 18 months of the effective date of 
  8.8   the law authorizing or requiring rules to be adopted, amended, 
  8.9   or repealed.  If the notice is not published within the time 
  8.10  limit imposed by this section, the authority for the rules 
  8.11  expires.  The agency shall not use other law in existence at the 
  8.12  time of the expiration of rulemaking authority under this 
  8.13  section as authority to adopt, amend, or repeal these rules.  
  8.14     An agency that adopts or amends rules within the time limit 
  8.15  specified in this section may subsequently amend or repeal the 
  8.16  rules without additional legislative authorization. 
  8.17     Sec. 12.  Minnesota Statutes 1994, section 14.131, is 
  8.18  amended to read: 
  8.19     14.131 [STATEMENT OF NEED AND REASONABLENESS.] 
  8.20     Before the agency orders the publication of a rulemaking 
  8.21  notice required by section 14.14, subdivision 1a, the agency 
  8.22  must prepare, review, and make available for public review a 
  8.23  statement of the need for and reasonableness of the rule and a 
  8.24  fiscal note if required by section 3.982.  The statement of need 
  8.25  and reasonableness must be prepared under rules adopted by the 
  8.26  chief administrative law judge. and must include the following: 
  8.27     (1) a description of the classes of persons who probably 
  8.28  will be affected by the proposed rule, including classes that 
  8.29  will bear the costs of the proposed rule and classes that will 
  8.30  benefit from the proposed rule; 
  8.31     (2) the probable costs to the agency and to any other 
  8.32  agency of the implementation and enforcement of the proposed 
  8.33  rule and any anticipated effect on state revenues; 
  8.34     (3) a determination of whether there are less costly 
  8.35  methods or less intrusive methods for achieving the purpose of 
  8.36  the proposed rule; 
  9.1      (4) a description of any alternative methods for achieving 
  9.2   the purpose of the proposed rule that were seriously considered 
  9.3   by the agency and the reasons why they were rejected in favor of 
  9.4   the proposed rule; 
  9.5      (5) the probable costs of complying with the proposed rule; 
  9.6   and 
  9.7      (6) an assessment of any differences between the proposed 
  9.8   rule and existing federal regulations and a specific analysis of 
  9.9   the need for and reasonableness of each difference.  
  9.10     For rules setting, adjusting, or establishing, regulatory, 
  9.11  licensure, or other charges for goods and services, the 
  9.12  statement of need and reasonableness must include the comments 
  9.13  and recommendations of the commissioner of finance and must 
  9.14  address any fiscal and policy concerns raised during the review 
  9.15  process, as required by section 16A.1285. 
  9.16     The statement must also describe the agency's efforts to 
  9.17  provide additional notification to persons or classes of persons 
  9.18  who may be affected by the proposed rule or must explain why 
  9.19  these efforts were not made. 
  9.20     The agency shall send a copy of the statement of need and 
  9.21  reasonableness to the legislative commission to review 
  9.22  administrative rules when it becomes available for public review.
  9.23     Sec. 13.  Minnesota Statutes 1994, section 14.14, 
  9.24  subdivision 1a, is amended to read: 
  9.25     Subd. 1a.  [NOTICE OF RULE HEARING.] Each agency shall 
  9.26  maintain a list of all persons who have registered with the 
  9.27  agency for the purpose of receiving notice of rule hearings 
  9.28  proceedings.  The agency may inquire as to whether those persons 
  9.29  on the list wish to maintain their names thereon and may remove 
  9.30  names for which there is a negative reply or no reply within 60 
  9.31  days.  The agency shall, at least 30 days prior to the date set 
  9.32  for the hearing, give notice of its intention to adopt rules by 
  9.33  United States mail to all persons on its list, and by 
  9.34  publication in the State Register.  The mailed notice shall 
  9.35  include either a copy of the proposed rule or a description of 
  9.36  the nature and effect of the proposed rule and an announcement 
 10.1   that a free copy of the proposed rule is available on request 
 10.2   from the agency.  Each agency may, at its own discretion, also 
 10.3   contact persons not on its list and may give who may be affected 
 10.4   by the rule being proposed.  In addition, each agency shall make 
 10.5   reasonable efforts to notify persons or classes of persons who 
 10.6   may be affected by the rule being proposed by giving notice of 
 10.7   its intention in newsletters, newspapers or other publications, 
 10.8   or through other means of communication.  The notice in the 
 10.9   State Register must include the proposed rule or an amended rule 
 10.10  in the form required by the revisor under section 14.07, 
 10.11  together with a citation to the most specific statutory 
 10.12  authority for the proposed rule, a statement of the place, date, 
 10.13  and time of the public hearing, a statement that persons may 
 10.14  register with the agency for the purpose of receiving notice of 
 10.15  rule proceedings and notice that a rule has been adopted, and 
 10.16  other information as required by law or rule.  When an entire 
 10.17  rule is proposed to be repealed, the agency need only publish 
 10.18  that fact, giving the citation to the rule to be repealed in the 
 10.19  notice. 
 10.20     Sec. 14.  Minnesota Statutes 1994, section 14.15, 
 10.21  subdivision 3, is amended to read: 
 10.22     Subd. 3.  [FINDING OF SUBSTANTIAL CHANGE DIFFERENCE.] If 
 10.23  the report contains a finding that a rule has been modified in a 
 10.24  way which makes it substantially different, as determined under 
 10.25  section 14.05, subdivision 2, from that which was originally 
 10.26  proposed, or that the agency has not met the requirements of 
 10.27  sections 14.131 to 14.18, it shall be submitted to the chief 
 10.28  administrative law judge for approval.  If the chief 
 10.29  administrative law judge approves the finding of the 
 10.30  administrative law judge, the chief administrative law judge 
 10.31  shall advise the agency and the revisor of statutes of actions 
 10.32  which will correct the defects.  The agency shall not adopt the 
 10.33  rule until the chief administrative law judge determines that 
 10.34  the defects have been corrected or, if applicable, that the 
 10.35  agency has satisfied the rule requirements for the adoption of a 
 10.36  substantially different rule.  
 11.1      Sec. 15.  Minnesota Statutes 1994, section 14.15, 
 11.2   subdivision 4, is amended to read: 
 11.3      Subd. 4.  [NEED OR REASONABLENESS NOT ESTABLISHED.] If the 
 11.4   chief administrative law judge determines that the need for or 
 11.5   reasonableness of the rule has not been established pursuant to 
 11.6   section 14.14, subdivision 2, and if the agency does not elect 
 11.7   to follow the suggested actions of the chief administrative law 
 11.8   judge to correct that defect, then the agency shall submit the 
 11.9   proposed rule to the legislative commission to review 
 11.10  administrative rules for the commission's advice and comment.  
 11.11  The agency shall not adopt the rule until it has received and 
 11.12  considered the advice of the commission.  However, the agency is 
 11.13  not required to delay adoption longer wait for the commission's 
 11.14  advice for more than 30 60 days after the commission has 
 11.15  received the agency's submission.  Advice of the commission 
 11.16  shall not be binding on the agency. 
 11.17     Sec. 16.  Minnesota Statutes 1994, section 14.16, 
 11.18  subdivision 1, is amended to read: 
 11.19     Subdivision 1.  [REVIEW OF MODIFICATIONS.] If the report of 
 11.20  the administrative law judge finds no defects, the agency may 
 11.21  proceed to adopt the rule.  After receipt of the administrative 
 11.22  law judge's report, if the agency makes any modifications to the 
 11.23  rule other than those recommended by the administrative law 
 11.24  judge, it must return the rule to the chief administrative law 
 11.25  judge for a review on the issue of substantial change whether 
 11.26  the rule as modified is substantially different, as determined 
 11.27  under section 14.05, subdivision 2, from the rule as originally 
 11.28  proposed.  If the chief administrative law judge determines that 
 11.29  the modified rule is substantially different from that which was 
 11.30  originally proposed, the chief administrative law judge shall 
 11.31  advise the agency of actions which will correct the defects.  
 11.32  The agency shall not adopt the modified rule until the chief 
 11.33  administrative law judge determines that the defects have been 
 11.34  corrected or, if applicable, that the agency has satisfied the 
 11.35  rule requirements for the adoption of a substantially different 
 11.36  rule. 
 12.1      The agency shall give notice to all persons who requested 
 12.2   to be informed that the rule has been adopted and filed with the 
 12.3   secretary of state.  This notice shall be given on the same day 
 12.4   that the rule is filed.  
 12.5      Sec. 17.  Minnesota Statutes 1994, section 14.19, is 
 12.6   amended to read: 
 12.7      14.19 [DEADLINE TO COMPLETE RULEMAKING.] 
 12.8      The agency shall, within 180 days after issuance of the 
 12.9   administrative law judge's report, submit its notice of 
 12.10  adoption, amendment, suspension, or repeal to the State Register 
 12.11  for publication.  If the agency has not submitted its notice to 
 12.12  the State Register within 180 days, the rule is automatically 
 12.13  withdrawn.  The agency shall not adopt the withdrawn rules 
 12.14  without again following the procedures of sections 14.05 to 
 12.15  14.36.  It shall report to the legislative commission to review 
 12.16  administrative rules, other appropriate committees of the 
 12.17  legislature, and the governor its failure to adopt rules and the 
 12.18  reasons for that failure.  The 180-day time limit of this 
 12.19  section does not include any days used for review by the chief 
 12.20  administrative law judge, the attorney general, or the 
 12.21  legislative commission to review administrative rules if the 
 12.22  review is required by law.  
 12.23     Sec. 18.  Minnesota Statutes 1994, section 14.22, 
 12.24  subdivision 1, is amended to read: 
 12.25     Subdivision 1.  [CONTENTS.] Unless an agency proceeds 
 12.26  directly to a public hearing on a proposed rule and gives the 
 12.27  notice prescribed in section 14.14, subdivision 1a, the agency 
 12.28  shall give notice of its intention to adopt a rule without 
 12.29  public hearing.  The notice shall be given by publication in the 
 12.30  State Register and by United States mail to persons who have 
 12.31  registered their names with the agency pursuant to section 
 12.32  14.14, subdivision 1a.  The mailed notice shall include either a 
 12.33  copy of the proposed rule or a description of the nature and 
 12.34  effect of the proposed rule and an announcement that a free copy 
 12.35  of the proposed rule is available on request from the agency.  
 12.36  Each agency may, at its own discretion, also contact persons not 
 13.1   on its list who may be affected by the rule being proposed.  In 
 13.2   addition, each agency shall make reasonable efforts to notify 
 13.3   persons or classes of persons who may be affected by the rule by 
 13.4   giving notice of its intention in newsletters, newspapers, or 
 13.5   other publications, or through other means of communication.  
 13.6   The notice in the State Register shall include the proposed rule 
 13.7   or the amended rule in the form required by the revisor under 
 13.8   section 14.07, and a citation to the most specific statutory 
 13.9   authority for the proposed rule, a statement that persons may 
 13.10  register with the agency for the purpose of receiving notice of 
 13.11  rule proceedings and notice that a rule has been submitted to 
 13.12  the administrative law judge, and other information as required 
 13.13  by law or rule.  When an entire rule is proposed to be repealed, 
 13.14  the notice need only state that fact, giving the citation to the 
 13.15  rule to be repealed in the notice.  The notice shall include a 
 13.16  statement advising the public: 
 13.17     (1) that they have 30 days in which to submit comment in 
 13.18  support of or in opposition to the proposed rule and that 
 13.19  comment is encouraged; 
 13.20     (2) that each comment should identify the portion of the 
 13.21  proposed rule addressed, the reason for the comment, and any 
 13.22  change proposed; 
 13.23     (3) that if 25 or more persons submit a written request for 
 13.24  a public hearing within the 30-day comment period, a public 
 13.25  hearing will be held; 
 13.26     (4) of the manner in which persons shall request a public 
 13.27  hearing on the proposed rule; 
 13.28     (5) that the name and address of the person requesting a 
 13.29  public hearing shall be stated of the requirements contained in 
 13.30  section 14.25 relating to a written request for a public 
 13.31  hearing, and that the requester is encouraged to identify the 
 13.32  portion of the proposed rule addressed, the reason for the 
 13.33  request, and propose any change proposed desired; 
 13.34     (6) that the proposed rule may be modified if the 
 13.35  modifications are supported by the data and views submitted; and 
 13.36     (7) that if a hearing is not required, notice of the date 
 14.1   of submission of the proposed rule to the attorney general 
 14.2   administrative law judge for review will be mailed to any person 
 14.3   requesting to receive the notice.  
 14.4      In connection with the statements required in clauses (1) 
 14.5   and (3), the notice must also include the date on which the 
 14.6   30-day comment period ends. 
 14.7      Sec. 19.  Minnesota Statutes 1994, section 14.23, is 
 14.8   amended to read: 
 14.9      14.23 [STATEMENT OF NEED AND REASONABLENESS.] 
 14.10     Before the date of the section 14.22 notice, the agency 
 14.11  shall prepare a statement of need and reasonableness which shall 
 14.12  be available to the public.  The statement of need and 
 14.13  reasonableness must include the analysis required in section 
 14.14  14.131 and the comments and recommendations of the commissioner 
 14.15  of finance, and must address any fiscal and policy concerns 
 14.16  raised during the review process, as required by section 
 14.17  16A.1285.  The statement must also describe the agency's efforts 
 14.18  to provide additional notification to persons or classes of 
 14.19  persons who may be affected by the proposed rules or must 
 14.20  explain why these efforts were not made.  For at least 30 days 
 14.21  following the notice, the agency shall afford all interested 
 14.22  persons the public an opportunity to request a public hearing 
 14.23  and to submit data and views on the proposed rule in writing. 
 14.24     The agency shall send a copy of the statement of need and 
 14.25  reasonableness to the legislative commission to review 
 14.26  administrative rules when it becomes available to the public. 
 14.27     Sec. 20.  Minnesota Statutes 1994, section 14.24, is 
 14.28  amended to read: 
 14.29     14.24 [MODIFICATIONS OF PROPOSED RULE.] 
 14.30     The proposed rule may be modified if the modifications are 
 14.31  supported by the data and views submitted to the agency and do 
 14.32  not result in a substantial change substantially different rule, 
 14.33  as determined under section 14.05, subdivision 2, from the rule 
 14.34  as originally proposed.  An agency may adopt a substantially 
 14.35  different rule after satisfying the rule requirements for the 
 14.36  adoption of a substantially different rule. 
 15.1      Sec. 21.  Minnesota Statutes 1994, section 14.25, is 
 15.2   amended to read: 
 15.3      14.25 [PUBLIC HEARING REQUIRED.] 
 15.4      Subdivision 1.  [REQUESTS FOR HEARING.] If, during the 
 15.5   30-day period allowed for comment, 25 or more persons submit to 
 15.6   the agency a written request for a public hearing of the 
 15.7   proposed rule, the agency shall proceed under the provisions of 
 15.8   sections 14.14 to 14.20.  The written request must include:  (1) 
 15.9   the name and address of the person requesting the public 
 15.10  hearing; and (2) the portion or portions of the rule to which 
 15.11  the person objects or a statement that the person opposes the 
 15.12  entire rule.  A notice of the public hearing must be published 
 15.13  in the State Register and mailed to those persons who submitted 
 15.14  a written request for the public hearing.  Unless the agency has 
 15.15  modified the proposed rule, the notice need not include the text 
 15.16  of the proposed rule but only a citation to the State Register 
 15.17  pages where the text appears. 
 15.18     A written request for a public hearing that does not comply 
 15.19  with the requirements of this section is invalid and must not be 
 15.20  counted by the agency for purposes of determining whether a 
 15.21  public hearing must be held. 
 15.22     Subd. 2.  [WITHDRAWAL OF HEARING REQUESTS.] If a request 
 15.23  for a public hearing has been withdrawn, the agency must give 
 15.24  written notice of that fact to all persons who have requested 
 15.25  the public hearing.  The notice must explain why the request is 
 15.26  being withdrawn, and must include a description of any action 
 15.27  the agency has taken or will take that affected or may have 
 15.28  affected the decision to withdraw the request.  The notice must 
 15.29  also invite persons to submit written comments to the agency 
 15.30  relating to the withdrawal.  The notice and any written comments 
 15.31  received by the agency is part of the rulemaking record 
 15.32  submitted to the administrative law judge under section 14.14 or 
 15.33  14.26.  The administrative law judge shall review the notice and 
 15.34  any comments received and determine whether the withdrawal is 
 15.35  consistent with section 14.001, clauses (2), (4), and (5). 
 15.36     Sec. 22.  Minnesota Statutes 1994, section 14.26, is 
 16.1   amended to read: 
 16.2      14.26 [ADOPTION OF PROPOSED RULE; SUBMISSION TO ATTORNEY 
 16.3   GENERAL ADMINISTRATIVE LAW JUDGE.] 
 16.4      Subdivision 1.  [SUBMISSION.] If no hearing is required, 
 16.5   the agency shall submit to the attorney general an 
 16.6   administrative law judge assigned by the chief administrative 
 16.7   law judge the proposed rule and notice as published, the rule as 
 16.8   proposed for adoption, any written comments received by the 
 16.9   agency, and a statement of need and reasonableness for the 
 16.10  rule.  The agency shall give notice to all persons who requested 
 16.11  to be informed that these materials have been submitted to 
 16.12  the attorney general administrative law judge.  This notice 
 16.13  shall be given on the same day that the record is submitted.  If 
 16.14  the proposed rule has been modified, the notice shall state that 
 16.15  fact, and shall state that a free copy of the proposed rule, as 
 16.16  modified, is available upon request from the agency.  The rule 
 16.17  and these materials shall be submitted to the attorney general 
 16.18  administrative law judge within 180 days of the day that the 
 16.19  comment period for the rule is over or the rule is automatically 
 16.20  withdrawn.  The agency shall report its failure to adopt the 
 16.21  rules and the reasons for that failure to the legislative 
 16.22  commission to review administrative rules, other appropriate 
 16.23  legislative committees, and the governor.  
 16.24     Subd. 2.  [RESUBMISSION.] Even if the 180-day period 
 16.25  expires while the attorney general administrative law judge 
 16.26  reviews the rule, if the attorney general administrative law 
 16.27  judge rejects the rule, the agency may resubmit it after taking 
 16.28  corrective action.  The resubmission must occur within 30 days 
 16.29  of when the agency receives written notice of the disapproval.  
 16.30  If the rule is again disapproved, the rule is withdrawn.  An 
 16.31  agency may resubmit at any time before the expiration of the 
 16.32  180-day period.  If the agency withholds some of the proposed 
 16.33  rule, it may not adopt the withheld portion without again 
 16.34  following the procedures of sections 14.14 to 14.28, or 14.29 to 
 16.35  14.36.  
 16.36     Subd. 3.  [REVIEW.] (a) The attorney general administrative 
 17.1   law judge shall, within 14 days, approve or disapprove the rule 
 17.2   as to its legality and its form to the extent the form relates 
 17.3   to legality, including the issue issues of substantial change 
 17.4   whether the rule if modified is substantially different, as 
 17.5   determined under section 14.05, subdivision 2, from the rule as 
 17.6   originally proposed, and determine whether the agency has the 
 17.7   authority to adopt the rule, and whether the record demonstrates 
 17.8   a rational basis for the need for and reasonableness of the 
 17.9   proposed rule within 14 days.  If the rule is approved, 
 17.10  the attorney general administrative law judge shall promptly 
 17.11  file two copies of it in the office of the secretary of state.  
 17.12  The secretary of state shall forward one copy of each rule to 
 17.13  the revisor of statutes.  If the rule is disapproved, 
 17.14  the attorney general administrative law judge shall state in 
 17.15  writing the reasons and make recommendations to overcome 
 17.16  the deficiencies, and defects.  
 17.17     (b) The written disapproval must be submitted to the chief 
 17.18  administrative law judge for approval.  If the chief 
 17.19  administrative law judge approves of the findings of the 
 17.20  administrative law judge, the chief administrative law judge 
 17.21  shall send the statement of the reasons for disapproval of the 
 17.22  rule to the agency, the legislative commission to review 
 17.23  administrative rules, and the revisor of statutes and advise the 
 17.24  agency and the revisor of statutes of actions that will correct 
 17.25  the defects.  The rule shall not be filed in the office of the 
 17.26  secretary of state, nor published until the deficiencies chief 
 17.27  administrative law judge determines that the defects have 
 17.28  been overcome corrected or, if applicable, that the agency has 
 17.29  satisfied the rule requirements for the adoption of a 
 17.30  substantially different rule.  The attorney general shall send a 
 17.31  statement of reasons for disapproval of the rule to the agency, 
 17.32  the chief administrative law judge, the legislative commission 
 17.33  to review administrative rules, and to the revisor of statutes. 
 17.34     (c) If the chief administrative law judge determines that 
 17.35  the need for or reasonableness of the rule has not been 
 17.36  established, and if the agency does not elect to follow the 
 18.1   suggested actions of the chief administrative law judge to 
 18.2   correct that defect, then the agency shall submit the proposed 
 18.3   rule to the legislative commission to review administrative 
 18.4   rules for the commission's advice and comment.  The agency shall 
 18.5   not adopt the rule until it has received and considered the 
 18.6   advice of the commission.  However, the agency is not required 
 18.7   to wait for the commission's advice for more than 60 days after 
 18.8   the commission has received the agency's submission.  
 18.9      (d) The attorney general administrative law judge shall 
 18.10  disregard any error or defect in the proceeding due to the 
 18.11  agency's failure to satisfy any procedural requirements imposed 
 18.12  by law or rule if the attorney general administrative law judge 
 18.13  finds: 
 18.14     (1) that the failure did not deprive any person or entity 
 18.15  of an opportunity to participate meaningfully in the rulemaking 
 18.16  process; or 
 18.17     (2) that the agency has taken corrective action to cure the 
 18.18  error or defect so that the failure did not deprive any person 
 18.19  or entity of an opportunity to participate meaningfully in the 
 18.20  rulemaking process. 
 18.21     Subd. 4.  [COSTS.] The attorney general office of 
 18.22  administrative hearings shall assess an agency for the actual 
 18.23  cost of processing rules under this section.  The agency shall 
 18.24  pay the attorney general's assessments using the procedures of 
 18.25  section 8.15.  Each agency shall include in its budget money to 
 18.26  pay the attorney general's assessment.  Receipts from the 
 18.27  assessment must be deposited in the state treasury and credited 
 18.28  to the general fund administrative hearings account created in 
 18.29  section 14.54. 
 18.30     Sec. 23.  Minnesota Statutes 1994, section 14.365, is 
 18.31  amended to read: 
 18.32     14.365 [OFFICIAL RULEMAKING RECORD.] 
 18.33     The agency shall maintain the official rulemaking record 
 18.34  for every rule adopted pursuant to sections 14.05 to 14.36 14.28.
 18.35  The record shall be available for public inspection.  The record 
 18.36  required by this section constitutes the official and exclusive 
 19.1   agency rulemaking record with respect to agency action on or 
 19.2   judicial review of the rule.  The record shall contain:  
 19.3      (1) copies of all publications in the State Register 
 19.4   pertaining to the rule; 
 19.5      (2) all written petitions, requests, submissions, or 
 19.6   comments received by the agency, or the administrative law 
 19.7   judge, or the attorney general pertaining to the rule; 
 19.8      (3) the statement of need and reasonableness for the rule, 
 19.9   if any; 
 19.10     (4) the official transcript of the hearing if one was held, 
 19.11  or the tape recording of the hearing if a transcript was not 
 19.12  prepared; 
 19.13     (5) the report of the administrative law judge, if any; 
 19.14     (6) the rule in the form last submitted to the 
 19.15  administrative law judge under sections 14.14 to 14.20 or first 
 19.16  submitted to the attorney general administrative law judge under 
 19.17  sections 14.22 to 14.28; 
 19.18     (7) the attorney general's administrative law judge's 
 19.19  written statement of required modifications and of approval or 
 19.20  disapproval by the chief administrative law judge, if any; 
 19.21     (8) any documents required by applicable rules of the 
 19.22  office of administrative hearings or of the attorney general; 
 19.23     (9) the agency's order adopting the rule; 
 19.24     (10) the revisor's certificate approving the form of the 
 19.25  rule; and 
 19.26     (11) a copy of the adopted rule as filed with the secretary 
 19.27  of state.  
 19.28     Sec. 24.  [14.366] [PUBLIC RULEMAKING DOCKET.] 
 19.29     (a) Each agency shall maintain a current, public rulemaking 
 19.30  docket.  
 19.31     (b) The rulemaking docket must contain a listing of the 
 19.32  precise subject matter of each possible proposed rule currently 
 19.33  under active consideration within the agency for proposal, the 
 19.34  name and address of agency personnel with whom persons may 
 19.35  communicate with respect to the matter, and an indication of its 
 19.36  present status within the agency. 
 20.1      (c) The rulemaking docket must list each pending rulemaking 
 20.2   proceeding.  A rulemaking proceeding is pending from the time it 
 20.3   is begun, by publication of the notice of solicitation, the 
 20.4   notice of intent to adopt, or notice of hearing, to the time it 
 20.5   is terminated, by publication of a notice of withdrawal or the 
 20.6   rule becoming effective.  For each rulemaking proceeding, the 
 20.7   docket must indicate:  
 20.8      (1) the subject matter of the proposed rule; 
 20.9      (2) a citation to all published notices relating to the 
 20.10  proceeding; 
 20.11     (3) where written comments on the proposed rule may be 
 20.12  inspected; 
 20.13     (4) the time during which written comments may be made; 
 20.14     (5) the names of persons who have made written requests for 
 20.15  a public hearing, where those requests may be inspected, and 
 20.16  where and when the hearing will be held; 
 20.17     (6) the current status of the proposed rule and any agency 
 20.18  determinations with respect to the rule; 
 20.19     (7) any known timetable for agency decisions or other 
 20.20  action in the proceeding; 
 20.21     (8) the date of the rule's adoption; 
 20.22     (9) the date the rule was filed with the secretary of 
 20.23  state; and 
 20.24     (10) when the rule will become effective.  
 20.25     Sec. 25.  [14.386] [PROCEDURE FOR ADOPTING EXEMPT RULES; 
 20.26  DURATION.] 
 20.27     (a) A rule adopted, amended, or repealed by an agency, 
 20.28  under a statute authorizing or requiring rules to be adopted but 
 20.29  excluded from the rulemaking provisions of chapter 14 or from 
 20.30  the definition of a rule, has the force and effect of law only 
 20.31  if: 
 20.32     (1) the revisor of statutes approves the form of the rule 
 20.33  by certificate; 
 20.34     (2) the office of administrative hearings approves the rule 
 20.35  as to its legality within 14 days after the agency submits it 
 20.36  for approval and files two copies of the rule with the revisor's 
 21.1   certificate in the office of the secretary of state; and 
 21.2      (3) a copy is published by the agency in the State Register.
 21.3      (b) A rule adopted under this section is effective for a 
 21.4   period of two years from the date of publication of the rule in 
 21.5   the State Register.  The authority for the rule expires at the 
 21.6   end of this two-year period. 
 21.7      (c) The chief administrative law judge shall adopt rules 
 21.8   relating to the rule approval duties imposed by this section and 
 21.9   section 14.388, including rules establishing standards for 
 21.10  review. 
 21.11     (d) This section does not apply to rules adopted, amended, 
 21.12  or repealed under section 14.388. 
 21.13     This section also does not apply to: 
 21.14     (1) rules implementing emergency powers pursuant to 
 21.15  sections 12.31 to 12.37; 
 21.16     (2) rules of agencies directly in the legislative or 
 21.17  judicial branches; 
 21.18     (3) rules of the regents of the University of Minnesota; 
 21.19     (4) rules of the department of military affairs; 
 21.20     (5) rules of the comprehensive health association provided 
 21.21  in section 62E.10; 
 21.22     (6) rules of the tax court provided by section 271.06; 
 21.23     (7) rules concerning only the internal management of the 
 21.24  agency or other agencies, and which do not directly affect the 
 21.25  rights of or procedure available to the public; 
 21.26     (8) rules of the commissioner of corrections relating to 
 21.27  the placement and supervision of inmates serving a supervised 
 21.28  release term, the internal management of institutions under the 
 21.29  commissioner's control, and rules adopted under section 609.105 
 21.30  governing the inmates of those institutions; 
 21.31     (9) rules relating to weight limitations on the use of 
 21.32  highways when the substance of the rules is indicated to the 
 21.33  public by means of signs; 
 21.34     (10) opinions of the attorney general; 
 21.35     (11) the systems architecture plan and long-range plan of 
 21.36  the state education management information system provided by 
 22.1   section 121.931; 
 22.2      (12) the data element dictionary and the annual data 
 22.3   acquisition calendar of the department of education to the 
 22.4   extent provided by section 121.932; 
 22.5      (13) the occupational safety and health standards provided 
 22.6   in section 182.655; 
 22.7      (14) revenue notices and tax information bulletins of the 
 22.8   commissioner of revenue; or 
 22.9      (15) uniform conveyancing forms adopted by the commissioner 
 22.10  of commerce under section 507.09. 
 22.11     Sec. 26.  [14.387] [LEGAL STATUS OF EXISTING EXEMPT RULES.] 
 22.12     A rule adopted on or before the day following final 
 22.13  enactment of this section, and which was not adopted under 
 22.14  sections 14.05 to 14.36 or their predecessor provisions, does 
 22.15  not have the force and effect of law on and after July 1, 1997, 
 22.16  and the authority for the rule expires on that date.  
 22.17     This section does not apply to: 
 22.18     (1) rules implementing emergency powers under sections 
 22.19  12.31 to 12.37; 
 22.20     (2) rules of agencies directly in the legislative or 
 22.21  judicial branches; 
 22.22     (3) rules of the regents of the University of Minnesota; 
 22.23     (4) rules of the department of military affairs; 
 22.24     (5) rules of the comprehensive health association provided 
 22.25  in section 62E.10; 
 22.26     (6) rules of the tax court provided by section 271.06; 
 22.27     (7) rules concerning only the internal management of the 
 22.28  agency or other agencies, and which do not directly affect the 
 22.29  rights of or procedure available to the public; 
 22.30     (8) rules of the commissioner of corrections relating to 
 22.31  the placement and supervision of inmates serving a supervised 
 22.32  release term, the internal management of institutions under the 
 22.33  commissioner's control, and rules adopted under section 609.105 
 22.34  governing the inmates of those institutions; 
 22.35     (9) rules relating to weight limitations on the use of 
 22.36  highways when the substance of the rules is indicated to the 
 23.1   public by means of signs; 
 23.2      (10) opinions of the attorney general; 
 23.3      (11) the systems architecture plan and long-range plan of 
 23.4   the state education management information system provided by 
 23.5   section 121.931; 
 23.6      (12) the data element dictionary and the annual data 
 23.7   acquisition calendar of the department of education to the 
 23.8   extent provided by section 121.932; 
 23.9      (13) the occupational safety and health standards provided 
 23.10  in section 182.655; 
 23.11     (14) revenue notices and tax information bulletins of the 
 23.12  commissioner of revenue; or 
 23.13     (15) uniform conveyancing forms adopted by the commissioner 
 23.14  of commerce under section 507.09. 
 23.15     Sec. 27.  [14.388] [GOOD CAUSE EXEMPTION.] 
 23.16     If an agency for good cause finds that the rulemaking 
 23.17  provisions of this chapter are unnecessary, impracticable, or 
 23.18  contrary to the public interest when adopting, amending, or 
 23.19  repealing a rule to: 
 23.20     (1) address a serious and immediate threat to the public 
 23.21  health, safety, or welfare; 
 23.22     (2) comply with a court order or a requirement in federal 
 23.23  law in a manner that does not allow for compliance with sections 
 23.24  14.14 to 14.28; 
 23.25     (3) incorporate specific changes set forth in applicable 
 23.26  statutes when no interpretation of law is required; or 
 23.27     (4) make changes that do not alter the sense, meaning, or 
 23.28  effect of a rule, 
 23.29  the agency may adopt, amend, or repeal the rule after satisfying 
 23.30  the requirements of section 14.386, paragraph (a), clauses (1) 
 23.31  to (3).  The agency shall incorporate its findings and a brief 
 23.32  statement of its supporting reasons in its order adopting, 
 23.33  amending, or repealing the rule. 
 23.34     In review of the rule under section 14.386, the office of 
 23.35  administrative hearings shall determine whether the agency has 
 23.36  provided adequate justification for its use of this section. 
 24.1      Rules adopted, amended, or repealed under clauses (1) and 
 24.2   (2) are effective for a period of two years from the date of 
 24.3   publication of the rule in the State Register. 
 24.4      Rules adopted, amended, or repealed under clause (3) or (4) 
 24.5   are effective upon publication in the State Register. 
 24.6      Sec. 28.  Minnesota Statutes 1994, section 14.48, is 
 24.7   amended to read: 
 24.8      14.48 [CREATION OF OFFICE OF ADMINISTRATIVE HEARINGS; CHIEF 
 24.9   ADMINISTRATIVE LAW JUDGE APPOINTED; OTHER ADMINISTRATIVE LAW 
 24.10  JUDGES APPOINTED.] 
 24.11     A state office of administrative hearings is created.  The 
 24.12  office shall be under the direction of a chief administrative 
 24.13  law judge who shall be learned in the law and appointed by the 
 24.14  governor, with the advice and consent of the senate, for a term 
 24.15  ending on June 30 of the sixth calendar year after appointment.  
 24.16  Senate confirmation of the chief administrative law judge shall 
 24.17  be as provided by section 15.066.  The chief administrative law 
 24.18  judge may hear cases and shall appoint additional administrative 
 24.19  law judges and compensation judges to serve in the office as 
 24.20  necessary to fulfill the duties prescribed in sections 14.48 to 
 24.21  14.56 chapters 14 and chapter 176.  The chief administrative law 
 24.22  judge may delegate to a subordinate employee the exercise of a 
 24.23  specified statutory power or duty as deemed advisable, subject 
 24.24  to the control of the chief administrative law judge.  Every 
 24.25  delegation must be by written order filed with the secretary of 
 24.26  state.  All administrative law judges and compensation judges 
 24.27  shall be in the classified service except that the chief 
 24.28  administrative law judge shall be in the unclassified service, 
 24.29  but may be removed only for cause.  All administrative law 
 24.30  judges shall have demonstrated knowledge of administrative 
 24.31  procedures and shall be free of any political or economic 
 24.32  association that would impair their ability to function 
 24.33  officially in a fair and objective manner.  All workers' 
 24.34  compensation judges shall be learned in the law, shall have 
 24.35  demonstrated knowledge of workers' compensation laws and shall 
 24.36  be free of any political or economic association that would 
 25.1   impair their ability to function officially in a fair and 
 25.2   objective manner. 
 25.3      Sec. 29.  Minnesota Statutes 1994, section 14.51, is 
 25.4   amended to read: 
 25.5      14.51 [PROCEDURAL RULES FOR HEARINGS.] 
 25.6      The chief administrative law judge shall adopt rules to 
 25.7   govern:  (1) the procedural conduct of all hearings, relating to 
 25.8   both rule adoption, amendment, suspension or repeal hearings, 
 25.9   contested case hearings, and workers' compensation hearings, and 
 25.10  to govern the conduct of voluntary mediation sessions for 
 25.11  rulemaking and contested cases other than those within the 
 25.12  jurisdiction of the bureau of mediation services.  Temporary 
 25.13  rulemaking authority is granted to the chief administrative law 
 25.14  judge for the purpose of implementing Laws 1981, chapter 346, 
 25.15  sections 2 to 6, 103 to 122, 127 to 135, and 141; and (2) the 
 25.16  review of rules adopted without a public hearing.  The 
 25.17  procedural rules for hearings shall be binding upon all agencies 
 25.18  and shall supersede any other agency procedural rules with which 
 25.19  they may be in conflict.  The procedural rules for hearings 
 25.20  shall include in addition to normal procedural matters 
 25.21  provisions relating to recessing and reconvening new 
 25.22  hearings the procedure to be followed when the proposed final 
 25.23  rule of an agency is substantially different, as determined 
 25.24  under section 14.05, subdivision 2, from that which was proposed 
 25.25  at the public hearing.  The procedural rules shall establish a 
 25.26  procedure whereby the proposed final rule of an agency shall be 
 25.27  reviewed by the chief administrative law judge to determine 
 25.28  whether or not a new hearing is required because on the issue of 
 25.29  substantial changes whether the proposed final rule of the 
 25.30  agency is substantially different than that which was proposed 
 25.31  or failure of the agency to meet the requirements of sections 
 25.32  14.131 to 14.18 chapter 14.  The rules must also provide an 
 25.33  expedited procedure, consistent with section 14.001, clauses (1) 
 25.34  to (5), for the adoption of substantially different rules by 
 25.35  agencies.  Upon the chief administrative law judge's own 
 25.36  initiative or upon written request of an interested party, the 
 26.1   chief administrative law judge may issue a subpoena for the 
 26.2   attendance of a witness or the production of books, papers, 
 26.3   records or other documents as are material to the matter being 
 26.4   heard.  The subpoenas shall be enforceable through the district 
 26.5   court in the district in which the subpoena is issued. 
 26.6      Sec. 30.  Minnesota Statutes 1994, section 16A.1285, 
 26.7   subdivision 2, is amended to read: 
 26.8      Subd. 2.  [POLICY.] Unless otherwise provided by law, 
 26.9   specific charges falling within definitions stipulated in 
 26.10  subdivision 1 must be set in the manner prescribed in this 
 26.11  subdivision provided that:  (1) agencies, when setting, 
 26.12  adjusting, or authorizing any charge for goods or services that 
 26.13  are of direct, immediate, and primary benefit to an individual, 
 26.14  business, or other nonstate entity, shall set the charges at a 
 26.15  level that neither significantly over recovers nor under 
 26.16  recovers costs, including overhead costs, involved in providing 
 26.17  the services; or (2) that agencies, when setting, adjusting, or 
 26.18  establishing regulatory, licensure, or other charges that are 
 26.19  levied, in whole or in part, in the public interest shall 
 26.20  recover, but are not limited to, the costs involved in 
 26.21  performance and administration of the functions involved. 
 26.22     In setting, adjusting, or authorizing charges that in whole 
 26.23  or in part recover previously unrecovered costs, recovery is 
 26.24  limited to those unrecovered costs incurred during the two 
 26.25  fiscal years immediately preceding the setting, adjustment, or 
 26.26  authorization. 
 26.27     Sec. 31.  Minnesota Statutes 1994, section 17.84, is 
 26.28  amended to read: 
 26.29     17.84 [DUTIES OF THE COMMISSIONER.] 
 26.30     Within 30 days of the receipt of the notices notice 
 26.31  provided in section 17.82 or 17.83, the commissioner shall 
 26.32  review the agency's proposed action, shall negotiate with the 
 26.33  agency, and shall recommend to the agency in writing the 
 26.34  implementation either of the action as proposed or an 
 26.35  alternative.  In making recommendations, the commissioner shall 
 26.36  follow the statement of policy contained in section 17.80.  If 
 27.1   the proposed agency action is the adoption of a rule, the 
 27.2   recommendation of the commissioner shall be made a part of the 
 27.3   record in the rule hearing.  If the agency receives no response 
 27.4   from the commissioner within 30 days, it shall be deemed a 
 27.5   recommendation that the agency take the action as proposed.  
 27.6      Sec. 32.  Minnesota Statutes 1994, section 43A.04, is 
 27.7   amended by adding a subdivision to read: 
 27.8      Subd. 11.  [TRAINING FOR AGENCY RULEMAKING STAFF.] The 
 27.9   commissioner, in cooperation with the office of administrative 
 27.10  hearings, the attorney general, and the revisor of statutes, 
 27.11  shall provide training to agency staff involved in rulemaking, 
 27.12  including training on the use of professional negotiators and 
 27.13  mediators in rulemaking proceedings. 
 27.14     The commissioner may charge agency staff a registration fee 
 27.15  for attending this training.  The fee must be set at a level 
 27.16  that permits the commissioner to recover the costs, excluding 
 27.17  costs of staff time for staff positions funded through general 
 27.18  fund appropriations, of providing this training. 
 27.19     The office of administrative hearings, the administrative 
 27.20  rules counsel, the attorney general, and the revisor of statutes 
 27.21  shall not assess the commissioner for the cost of staff time to 
 27.22  conduct the training provided under this subdivision. 
 27.23     Sec. 33.  Minnesota Statutes 1994, section 62N.05, is 
 27.24  amended by adding a subdivision to read: 
 27.25     Subd. 4.  [RECOVERY OF COSTS.] The provisions of section 
 27.26  16A.1285, subdivision 2, limiting recovery of costs to the two 
 27.27  fiscal years immediately preceding the setting, adjustment, or 
 27.28  authorization of fees do not apply to fees charged to entities 
 27.29  licensed under this chapter.  This subdivision expires June 30, 
 27.30  1999. 
 27.31     Sec. 34.  Minnesota Statutes 1994, section 84.027, is 
 27.32  amended by adding a subdivision to read: 
 27.33     Subd. 13.  [GAME AND FISH RULES.] (a) The commissioner of 
 27.34  natural resources may adopt rules under sections 97A.0451 to 
 27.35  97A.0459 and this subdivision that are authorized under: 
 27.36     (1) chapters 97A, 97B, and 97C to set open seasons and 
 28.1   areas, to close seasons and areas, to select hunters for areas, 
 28.2   to provide for tagging and registration of game, to prohibit or 
 28.3   allow taking of wild animals to protect a species, and to 
 28.4   prohibit or allow importation, transportation, or possession of 
 28.5   a wild animal; and 
 28.6      (2) sections 84.093, 84.14, 84.15, and 84.152 to set 
 28.7   seasons for harvesting wild ginseng roots and wild rice and to 
 28.8   restrict or prohibit harvesting in designated areas. 
 28.9      Clause (2) does not limit or supersede the commissioner's 
 28.10  authority to establish opening dates, days, and hours of the 
 28.11  wild rice harvesting season under section 84.14, subdivision 3. 
 28.12     (b) If conditions exist that do not allow the commissioner 
 28.13  to comply with sections 97A.0451 to 97A.0459, the commissioner 
 28.14  may adopt a rule under this subdivision by submitting the rule 
 28.15  to the attorney general for review under section 97A.0455, 
 28.16  publishing a notice in the State Register and filing the rule 
 28.17  with the secretary of state and the legislative commission to 
 28.18  review administrative rules, and complying with section 
 28.19  97A.0459, and including a statement of the emergency conditions 
 28.20  and a copy of the rule in the notice.  The notice may be 
 28.21  published after it is received from the attorney general or five 
 28.22  business days after it is submitted to the attorney general, 
 28.23  whichever is earlier. 
 28.24     (c) Rules adopted under paragraph (b) are effective upon 
 28.25  publishing in the State Register and may be effective up to 
 28.26  seven days before publishing and filing under paragraph (b), if: 
 28.27     (1) the commissioner of natural resources determines that 
 28.28  an emergency exists; 
 28.29     (2) the attorney general approves the rule; and 
 28.30     (3) for a rule that affects more than three counties the 
 28.31  commissioner publishes the rule once in a legal newspaper 
 28.32  published in Minneapolis, St. Paul, and Duluth, or for a rule 
 28.33  that affects three or fewer counties the commissioner publishes 
 28.34  the rule once in a legal newspaper in each of the affected 
 28.35  counties. 
 28.36     (d) Except as provided in paragraph (e), a rule published 
 29.1   under paragraph (c), clause (3), may not be effective earlier 
 29.2   than seven days after publication. 
 29.3      (e) A rule published under paragraph (c), clause (3), may 
 29.4   be effective the day the rule is published if the commissioner 
 29.5   gives notice and holds a public hearing on the rule within 15 
 29.6   days before publication. 
 29.7      (f) The commissioner shall attempt to notify persons or 
 29.8   groups of persons affected by rules adopted under paragraphs (b) 
 29.9   and (c) by public announcements, posting, and other appropriate 
 29.10  means as determined by the commissioner. 
 29.11     (g) Notwithstanding section 97A.0458, a rule adopted under 
 29.12  this subdivision is effective for the period stated in the 
 29.13  notice but not longer than 18 months after the rule is adopted. 
 29.14     Sec. 35.  [97A.0451] [AUTHORITY FOR USE OF EMERGENCY RULES 
 29.15  PROCEDURE; EXPIRATION OF AUTHORITY.] 
 29.16     Subdivision 1.  [WHEN TO USE EMERGENCY RULEMAKING.] When 
 29.17  the commissioner is directed by statute, federal law, or court 
 29.18  order to adopt, amend, suspend, or repeal a rule in a manner 
 29.19  that does not allow for compliance with sections 14.14 to 14.28, 
 29.20  or if the commissioner is expressly required or authorized by 
 29.21  statute to adopt emergency rules, the commissioner shall adopt 
 29.22  emergency rules in accordance with sections 97A.0451 to 97A.0459.
 29.23     Subd. 2.  [180-DAY TIME LIMIT.] Unless the commissioner is 
 29.24  directed by federal law or court order to adopt, amend, suspend, 
 29.25  or repeal a rule in a manner that does not allow for compliance 
 29.26  with sections 97A.0451 to 97A.0459, the commissioner may not 
 29.27  adopt an emergency rule later than 180 days after the effective 
 29.28  date of the statutory authority, except as provided in section 
 29.29  84.027, subdivision 13.  If emergency rules are not adopted 
 29.30  within the time allowed, the authority for the rules expires.  
 29.31  The time limit of this section does not include any days used 
 29.32  for review by the attorney general.  If the 180-day period 
 29.33  expires while the attorney general is reviewing the rule and the 
 29.34  attorney general disapproves the rule, the commissioner may 
 29.35  resubmit the rule to the attorney general after taking 
 29.36  corrective action.  The resubmission must occur within five 
 30.1   working days after the commissioner receives written notice of 
 30.2   disapproval.  If the rule is again disapproved by the attorney 
 30.3   general, it is withdrawn.  
 30.4      Sec. 36.  [97A.0452] [NOTICE OF PROPOSED ADOPTION OF 
 30.5   EMERGENCY RULE.] 
 30.6      The proposed emergency rule must be published with a notice 
 30.7   of intent to adopt emergency rules in the State Register, and 
 30.8   the same notice must be mailed to all persons registered with 
 30.9   the commissioner to receive notice of any rulemaking 
 30.10  proceedings.  The notice must include a statement advising the 
 30.11  public that a free copy of the proposed rule is available on 
 30.12  request from the commissioner and that notice of the date of 
 30.13  submission of the proposed emergency rule to the attorney 
 30.14  general will be mailed to any person requesting to receive the 
 30.15  notice.  For at least 25 days after publication the commissioner 
 30.16  shall afford all interested persons an opportunity to submit 
 30.17  data and views on the proposed emergency rule in writing.  The 
 30.18  notice must also include the date on which the 25-day comment 
 30.19  period ends. 
 30.20     Sec. 37.  [97A.0453] [NOTICE TO COMMITTEES FOR FEES FIXED 
 30.21  BY RULE.] 
 30.22     Before the commissioner submits notice to the State 
 30.23  Register of intent to adopt emergency rules that establish or 
 30.24  adjust fees, the commissioner shall comply with section 16A.128, 
 30.25  subdivision 2a. 
 30.26     Sec. 38.  [97A.0454] [MODIFICATIONS OF PROPOSED EMERGENCY 
 30.27  RULE.] 
 30.28     The proposed emergency rule may be modified if the 
 30.29  modifications are supported by the data and views submitted to 
 30.30  the commissioner. 
 30.31     Sec. 39.  [97A.0455] [SUBMISSION OF PROPOSED EMERGENCY RULE 
 30.32  TO ATTORNEY GENERAL.] 
 30.33     Subdivision 1.  [SUBMISSION.] The commissioner shall submit 
 30.34  to the attorney general the proposed emergency rule as 
 30.35  published, with any modifications.  On the same day that it is 
 30.36  submitted, the commissioner shall mail notice of the submission 
 31.1   to all persons who requested to be informed that the proposed 
 31.2   emergency rule has been submitted to the attorney general.  If 
 31.3   the proposed emergency rule has been modified, the notice must 
 31.4   state that fact, and must state that a free copy of the proposed 
 31.5   emergency rule, as modified, is available upon request from the 
 31.6   commissioner. 
 31.7      Subd. 2.  [REVIEW.] The attorney general shall review the 
 31.8   proposed emergency rule as to its legality, review its form to 
 31.9   the extent the form relates to legality, and shall approve or 
 31.10  disapprove the proposed emergency rule and any modifications on 
 31.11  the tenth working day following the date of receipt of the 
 31.12  proposed emergency rule from the commissioner.  The attorney 
 31.13  general shall send a statement of reasons for disapproval of the 
 31.14  rule to the commissioner, the chief administrative law judge, 
 31.15  the legislative commission to review administrative rules, and 
 31.16  to the revisor of statutes. 
 31.17     The attorney general shall disregard any error or defect in 
 31.18  the proceeding due to the commissioner's failure to satisfy any 
 31.19  procedural requirement imposed by law or rule if the attorney 
 31.20  general finds: 
 31.21     (1) that the failure did not deprive any person or entity 
 31.22  of an opportunity to participate meaningfully in the rulemaking 
 31.23  process; or 
 31.24     (2) that the commissioner has taken corrective action to 
 31.25  cure the error or defect so that the failure did not deprive any 
 31.26  person or entity of an opportunity to participate meaningfully 
 31.27  in the rulemaking process. 
 31.28     Subd. 3.  [COSTS.] The attorney general shall assess the 
 31.29  commissioner for the actual cost of processing rules under this 
 31.30  section.  The commissioner shall include in the department's 
 31.31  budget money to pay the attorney general's assessment.  Receipts 
 31.32  from the assessment must be deposited in the state treasury and 
 31.33  credited to the general fund. 
 31.34     Sec. 40.  [97A.0456] [EFFECTIVE DATE OF EMERGENCY RULE.] 
 31.35     The emergency rule takes effect five working days after 
 31.36  approval by the attorney general.  The attorney general shall 
 32.1   file two copies of the approved emergency rule with the 
 32.2   secretary of state.  The secretary of state shall forward one 
 32.3   copy of each approved and filed emergency rule to the revisor of 
 32.4   statutes.  Failure of the attorney general to approve or 
 32.5   disapprove a proposed emergency rule within ten working days is 
 32.6   approval. 
 32.7      Sec. 41.  [97A.0457] [PUBLICATION OF APPROVAL.] 
 32.8      As soon as practicable, notice of the attorney general's 
 32.9   decision must be published in the State Register and the adopted 
 32.10  rule must be published in the manner as provided for adopted 
 32.11  rules in section 14.18. 
 32.12     Sec. 42.  [97A.0458] [EFFECTIVE PERIOD OF EMERGENCY RULE.] 
 32.13     Emergency rules adopted under sections 97A.0451 to 97A.0459 
 32.14  shall be effective for the period stated in the notice of intent 
 32.15  to adopt emergency rules which may not be longer than 180 days.  
 32.16  The emergency rules may be continued in effect for an additional 
 32.17  period of up to 180 days if the commissioner gives notice of 
 32.18  continuation by publishing notice in the State Register and 
 32.19  mailing the same notice to all persons registered with the 
 32.20  commissioner to receive notice of any rulemaking proceedings.  
 32.21  The continuation is not effective until these notices have been 
 32.22  mailed.  No emergency rule may remain in effect on a date 361 
 32.23  days after its original effective date.  The emergency rules may 
 32.24  not be continued in effect after 360 days without following the 
 32.25  procedure of sections 14.14 to 14.28. 
 32.26     Sec. 43.  [97A.0459] [APPROVAL OF FORM OF EMERGENCY RULE.] 
 32.27     No approved emergency rule shall be filed with the 
 32.28  secretary of state or published in the State Register unless the 
 32.29  revisor of statutes has certified that the emergency rule's form 
 32.30  is approved. 
 32.31     Sec. 44.  [APPROPRIATION.] 
 32.32     (a) $35,000 is appropriated from the general fund to the 
 32.33  administrative hearings account in Minnesota Statutes, section 
 32.34  14.54, for the purposes of section 45.  The appropriation is 
 32.35  available until spent.  The approved complement of the office of 
 32.36  administrative hearings is increased by three positions in the 
 33.1   classified service. 
 33.2      (b) The office of the attorney general shall transfer 
 33.3   $15,000 in fiscal year 1996 to the office of administrative 
 33.4   hearings. 
 33.5      (c) $78,000 is appropriated from the general fund to the 
 33.6   legislative commission to review administrative rules for fiscal 
 33.7   year 1996. 
 33.8      Sec. 45.  [TRANSFER OF RULE REVIEW AUTHORITY.] 
 33.9      (a) The rule review duties of the office of the attorney 
 33.10  general are transferred to the office of administrative hearings 
 33.11  on January 1, 1996.  Minnesota Statutes, section 15.039, does 
 33.12  not apply to this transfer.  
 33.13     (b) Proposed rules for which a notice under Minnesota 
 33.14  Statutes, section 14.22 or 14.30, has been published in the 
 33.15  State Register before January 1, 1996, shall continue to be 
 33.16  reviewed by the attorney general under the rule review authority 
 33.17  transferred by this act and are governed by Minnesota Statutes 
 33.18  1994, chapter 14, and Minnesota Rules, chapter 2010. 
 33.19     (c) Except as otherwise provided in paragraph (b), 
 33.20  Minnesota Rules, chapter 2010, shall be enforced by the office 
 33.21  of administrative hearings until it is amended or repealed by 
 33.22  that office. 
 33.23     Sec. 46.  [REVISOR INSTRUCTION.] 
 33.24     The revisor of statutes shall correct or remove the 
 33.25  references in Minnesota Statutes and Minnesota Rules to the 
 33.26  statutory sections repealed in this act. 
 33.27     The revisor of statutes shall change the terms "office of 
 33.28  attorney general," "attorney general," or similar terms to 
 33.29  "office of administrative hearings," "chief administrative law 
 33.30  judge," "administrative law judge," or similar terms in 
 33.31  Minnesota Rules, chapter 2010, to reflect the intent of the 
 33.32  legislature to transfer the attorney general's rule review 
 33.33  functions in the manner provided in this act. 
 33.34     Sec. 47.  [REPEALER.] 
 33.35     (a) Minnesota Statutes 1994, sections 3.846; 14.12; 
 33.36  14.1311; and 14.235, are repealed. 
 34.1      (b) Minnesota Statutes 1994, sections 14.29; 14.30; 14.305; 
 34.2   14.31; 14.32; 14.33; 14.34; 14.35; and 14.36, are repealed. 
 34.3      (c) Minnesota Statutes 1994, sections 14.10, 14.11; 14.115; 
 34.4   and 17.83, are repealed. 
 34.5      Sec. 48.  [EFFECTIVE DATE.] 
 34.6      Sections 1 to 4; 6; 7; 10; 15; 26; 31; 47, paragraph (c); 
 34.7   and the rulemaking authority granted in sections 25 and 29 are 
 34.8   effective the day following final enactment.  Section 11 applies 
 34.9   to laws authorizing or requiring rulemaking that are finally 
 34.10  enacted after January 1, 1996.  Section 30 is effective for 
 34.11  costs incurred after June 30, 1995.  Section 44 is effective 
 34.12  July 1, 1995.  The remainder of the act is effective January 1, 
 34.13  1996.