1.1.................... moves to amend H.F. No. 2724 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2012, section 3.842, subdivision 4a, is amended to read:
1.4    Subd. 4a. Objections to rules. (a) For purposes of this subdivision, "committee"
1.5means the house of representatives policy committee or senate policy committee with
1.6primary jurisdiction over state governmental operations. The commission or a committee
1.7may object to a rule as provided in this subdivision. If the commission or a committee
1.8objects to all or some portion of a rule because the commission or committee considers it
1.9to be beyond the procedural or substantive authority delegated to the agency, including
1.10a proposed rule submitted under section 14.15, subdivision 4, or 14.26, subdivision
1.113, paragraph (c) 6, the commission or committee may file that objection in the Office
1.12of the Secretary of State. The filed objection must contain a concise statement of the
1.13commission's or committee's reasons for its action. An objection to a proposed rule
1.14submitted by the commission or a committee under section 14.15, subdivision 4, or 14.26,
1.15subdivision 3, paragraph (c) 6, may not be filed before the rule is adopted.
1.16(b) The secretary of state shall affix to each objection a certification of the date and
1.17time of its filing and as soon after the objection is filed as practicable shall transmit a
1.18certified copy of it to the agency issuing the rule in question and to the revisor of statutes.
1.19The secretary of state shall also maintain a permanent register open to public inspection of
1.20all objections by the commission or committee.
1.21(c) The commission or committee shall publish and index an objection filed under
1.22this section in the next issue of the State Register. The revisor of statutes shall indicate
1.23the existence of the objection adjacent to the rule in question when that rule is published
1.24in Minnesota Rules.
1.25(d) Within 14 days after the filing of an objection by the commission or committee to
1.26a rule, the issuing agency shall respond in writing to the objecting entity. After receipt of
1.27the response, the commission or committee may withdraw or modify its objection.
2.1(e) After the filing of an objection by the commission or committee that is not
2.2subsequently withdrawn, the burden is upon the agency in any proceeding for judicial
2.3review or for enforcement of the rule to establish that the whole or portion of the rule
2.4objected to is valid.
2.5(f) The failure of the commission or a committee to object to a rule is not an implied
2.6legislative authorization of its validity.
2.7(g) In accordance with sections 14.44 and 14.45, the commission or a committee
2.8may petition for a declaratory judgment to determine the validity of a rule objected to
2.9by the commission or committee. The action must be started within two years after an
2.10objection is filed in the Office of the Secretary of State.
2.11(h) The commission or a committee may intervene in litigation arising from agency
2.12action. For purposes of this paragraph, agency action means the whole or part of a rule, or
2.13the failure to issue a rule.

2.14    Sec. 2. Minnesota Statutes 2012, section 14.05, is amended by adding a subdivision to
2.15read:
2.16    Subd. 5a. Review and repeal of rules. By December 1 of each fourth year,
2.17beginning December 1, 2018, an agency must submit to the governor, the Legislative
2.18Coordinating Commission, the policy and funding committees and divisions with
2.19jurisdiction over the agency, and the revisor of statutes, a list of any rules or portions of
2.20rules that are obsolete, unnecessary, or duplicative of other state or federal statutes or
2.21rules. The list must also include an explanation of why the rule or portion of the rule
2.22is obsolete, unnecessary, or duplicative of other state or federal statutes or rules. The
2.23agency must either report a timetable for repeal of the rule or portion of the rule, or must
2.24develop a bill for submission to the appropriate policy committee to repeal the obsolete,
2.25unnecessary, or duplicative rule. A report submitted under this subdivision must be signed
2.26by the person in the agency who is responsible for identifying and initiating repeal of
2.27obsolete rules. The report also must identify the status of any rules identified in the prior
2.28report as obsolete, unnecessary, or duplicative. If none of an agency's rules are obsolete,
2.29unnecessary, or duplicative, an agency's report must state that conclusion.

2.30    Sec. 3. Minnesota Statutes 2012, section 14.05, subdivision 6, is amended to read:
2.31    Subd. 6. Veto of adopted rules. The governor may veto all or a severable portion
2.32of a rule of an agency as defined in section 14.02, subdivisions 2 and 4, by submitting
2.33notice of the veto to the State Register within 14 days of receiving a copy of the rule
2.34from the secretary of state under section 14.16, subdivision 3, 14.26, subdivision 3, or
3.114.386 or the agency under section 14.389, subdivision 3, or section 14.3895. The veto is
3.2effective when the veto notice is submitted to the State Register. This authority applies
3.3only to the extent that the agency itself would have authority, through rulemaking, to
3.4take such action. If the governor vetoes a rule or portion of a rule under this section, the
3.5governor shall notify the chairs of the legislative committees having jurisdiction over the
3.6agency whose rule was vetoed.

3.7    Sec. 4. Minnesota Statutes 2012, section 14.05, is amended by adding a subdivision to
3.8read:
3.9    Subd. 7. Electronic notices permitted. If sections 14.05 to 14.389 require an
3.10agency to provide notice or documents to the public, the legislature, or another state
3.11agency, the agency may send the notice or document, or a link to the notice or document,
3.12using any reliable method of electronic transmission. An agency may file rule-related
3.13documents with the Office of Administrative Hearings by electronic transmission in the
3.14manner approved by that office and the Office of the Revisor of Statutes by electronic
3.15transmission in the manner approved by that office.

3.16    Sec. 5. Minnesota Statutes 2012, section 14.07, subdivision 4, is amended to read:
3.17    Subd. 4. Incorporations by reference. (a) An agency may incorporate by reference
3.18into its rules the text from Minnesota Statutes, Minnesota Rules, United States Statutes at
3.19Large, United States Code, Laws of Minnesota, Code of Federal Regulations, the Federal
3.20Register, and other publications and documents which are determined by the revisor of
3.21statutes, to be conveniently available to the public. If the rule incorporates by reference
3.22other publications and documents, the rule must contain a statement of incorporation.
3.23The statement of incorporation by reference must include the words "incorporated by
3.24reference"; must identify by title, author, publisher, and, if applicable, date of publication
3.25of the standard or material to be incorporated; must state whether the material is subject
3.26to frequent change; and must contain a statement of availability. When presented with a
3.27rule for certification pursuant to subdivision 2 and this subdivision, the revisor of statutes
3.28should indicate in the certification that the rule incorporates by reference text from other
3.29publications or documents. If the revisor certifies that the form of a rule is approved, that
3.30approval constitutes the revisor's finding that the publication or other document other than
3.31one listed by name in this subdivision, and which is incorporated by reference into the
3.32rules, is conveniently available to the public.
3.33(b) For the purposes of paragraph (a), "conveniently available to the public" means
3.34available on the Internet without charge, or available for loan or inspection and copying to
4.1a person living anywhere in Minnesota through a statewide interlibrary loan system or in a
4.2public library without charge except for reasonable copying fees and mailing costs.

4.3    Sec. 6. Minnesota Statutes 2012, section 14.08, is amended to read:
4.414.08 APPROVAL OF RULE AND RULE FORM; COSTS.
4.5(a) One copy of a rule adopted under section 14.26 must be submitted by the agency
4.6to the chief administrative law judge. The chief administrative law judge shall request
4.7from the revisor certified copies of the rule when it is submitted by the agency under
4.8section 14.26. Within five days after the request for certification of the rule is received by
4.9the revisor, excluding weekends and holidays, the revisor shall either return the rule with
4.10a certificate of approval of the form of the rule to the chief administrative law judge or
4.11notify the chief administrative law judge and the agency that the form of the rule will not
4.12be approved.
4.13If the chief administrative law judge disapproves a rule, the agency may modify it
4.14and the agency shall submit one copy of the modified rule, approved as to form by the
4.15revisor, to the chief administrative law judge.
4.16(b) One copy of a rule adopted after a public hearing must be submitted by the
4.17agency to the chief administrative law judge. The chief administrative law judge shall
4.18request from the revisor certified copies of the rule when it is submitted by the agency.
4.19Within five working days after receipt of the request, the revisor shall either return the
4.20rule with a certificate of approval to the chief administrative law judge or notify the chief
4.21administrative law judge and the agency that the form of the rule will not be approved.
4.22(c) If the revisor refuses to approve the form of the rule, the revisor's notice must
4.23revise the rule so it is in the correct form.
4.24(d) After the agency has notified the chief administrative law judge that it has
4.25adopted the rule, the chief administrative law judge shall promptly file four paper copies
4.26or an electronic copy of the adopted rule in the Office of the Secretary of State. The
4.27secretary of state shall forward one copy of each rule filed to the agency, to the revisor
4.28of statutes, and to the governor.
4.29(d) (e) The chief administrative law judge shall assess an agency for the actual cost
4.30of processing rules under this section. Each agency shall include in its budget money to
4.31pay the assessments. Receipts from the assessment must be deposited in the administrative
4.32hearings account established in section 14.54.

4.33    Sec. 7. Minnesota Statutes 2012, section 14.101, subdivision 1, is amended to read:
5.1    Subdivision 1. Required notice. In addition to seeking information by other
5.2methods designed to reach persons or classes of persons who might be affected by the
5.3proposal, an agency, at least 60 days before publication of a notice of intent to adopt or
5.4a notice of hearing, shall solicit comments from the public on the subject matter of a
5.5possible rulemaking proposal under active consideration within the agency by causing
5.6notice to be published in the State Register. The notice must include a description of the
5.7subject matter of the proposal and the types of groups and individuals likely to be affected,
5.8and must indicate where, when, and how persons may comment on the proposal and
5.9whether and how drafts of any proposal may be obtained from the agency.
5.10This notice must be published within 60 days of the effective date of any new or
5.11amendatory law requiring rules to be adopted, amended, or repealed.
5.12An agency intending to adopt an expedited rule under section 14.389 is exempt from
5.13the requirements of this section.

5.14    Sec. 8. [14.105] RULE NOTIFICATION.
5.15    Subdivision 1. Rule notification list. (a) Each agency shall maintain a list of all
5.16persons who have registered with the agency for the purpose of receiving notice of rule
5.17proceedings. A person may register to receive notice of rule proceedings by submitting
5.18to the agency:
5.19(1) the person's electronic mail address; or
5.20(2) the person's name and United States mail address, along with a request to receive
5.21copies of the notices by mail.
5.22(b) The agency shall post information on its Web site describing the registration
5.23process.
5.24    (c) The agency may inquire as to whether those persons on the list in paragraph
5.25(a) wish to remain on it and may remove persons for whom there is a negative reply or
5.26no reply within 60 days.
5.27    Subd. 2. Additional notice. (a) Each agency shall make reasonable efforts to notify
5.28persons or classes of persons who may be significantly affected by the rule being proposed
5.29by giving notice of its rule proceedings in newsletters, newspapers, or other publications,
5.30or through other means of communication.
5.31(b) For each rulemaking, the agency shall develop an additional notice plan
5.32describing its efforts to provide additional notification to persons or classes of persons
5.33who may be affected by the proposed rule or must explain why these efforts were not
5.34made. The additional notice plan must be submitted to the administrative law judge with
5.35the other submissions required by section 14.14, subdivision 2a, or 14.26. The agency
6.1also may seek prior approval of the additional notice plan under the rules of the Office of
6.2Administrative Hearings.

6.3    Sec. 9. Minnesota Statutes 2012, section 14.116, is amended to read:
6.414.116 NOTICE TO LEGISLATURE.
6.5(a) By January 15 each year, each agency must submit its rulemaking docket
6.6maintained under section 14.366, and the official rulemaking record required under section
6.714.365 for any rule adopted during the preceding calendar year, to the chairs and ranking
6.8minority members of the legislative policy and budget committees with jurisdiction over
6.9the subject matter of the proposed rule.
6.10(b) When an agency mails sends a notice of intent to adopt rules hearing under
6.11section 14.14 or a notice of intent to adopt rules under section 14.22, the agency must
6.12send a copy of the same notice and a copy of the statement of need and reasonableness
6.13 to the chairs and ranking minority party members of the legislative policy and budget
6.14committees with jurisdiction over the subject matter of the proposed rules and to the
6.15Legislative Coordinating Commission.
6.16(c) In addition, if the mailing of the notice is within two years of the effective date
6.17of the law granting the agency authority to adopt the proposed rules, the agency shall
6.18make reasonable efforts to send a copy of the notice and the statement to all sitting
6.19legislators who were chief house of representatives and senate authors of the bill granting
6.20the rulemaking authority. If the bill was amended to include this rulemaking authority,
6.21the agency shall make reasonable efforts to send the notice and the statement to the chief
6.22house of representatives and senate authors of the amendment granting rulemaking
6.23authority, rather than to the chief authors of the bill.

6.24    Sec. 10. Minnesota Statutes 2012, section 14.125, is amended to read:
6.2514.125 TIME LIMIT ON AUTHORITY TO ADOPT, AMEND, OR REPEAL
6.26RULES.
6.27An agency shall publish a notice of intent to adopt rules or a notice of hearing under
6.28section 14.14 or a notice of intent to adopt rules under section 14.22 within 18 months
6.29of the effective date of the law authorizing or requiring rules to be adopted, amended, or
6.30repealed. If the notice is not published within the time limit imposed by this section, the
6.31authority for the rules expires. The agency shall not use other law in existence at the time
6.32of the expiration of rulemaking authority under this section as authority to adopt, amend,
6.33or repeal these rules agency shall report to the Legislative Coordinating Commission,
7.1other appropriate committees of the legislature, and the governor its failure to publish
7.2a notice and the reasons for that failure.
7.3An agency that publishes a notice of intent to adopt rules or a notice of hearing
7.4within the time limit specified in this section may subsequently amend or repeal the rules
7.5without additional legislative authorization.

7.6    Sec. 11. Minnesota Statutes 2012, section 14.126, subdivision 2, is amended to read:
7.7    Subd. 2. Vote. A committee vote under this section must be by a majority of
7.8the committee. The vote may occur any time after the publication of the rulemaking
7.9notice under section 14.14, subdivision 1a, 14.22, or 14.389, subdivision 2, or 14.3895,
7.10subdivision 3 , and before notice of adoption is published in the State Register under
7.11section 14.18, 14.27, or 14.389, subdivision 3, or 14.3895, subdivision 3. A committee
7.12voting under this section shall notify the agency, the revisor of statutes, and the chief
7.13administrative law judge of the vote as soon as possible. The committee shall publish
7.14notice of the vote in the State Register as soon as possible.

7.15    Sec. 12. Minnesota Statutes 2012, section 14.131, is amended to read:
7.1614.131 STATEMENT OF NEED AND REASONABLENESS.
7.17By the date of the section 14.14, subdivision 1a, notice, the agency must
7.18prepare, review, and make available for public review a statement of the need for and
7.19reasonableness of the rule. The statement of need and reasonableness must be prepared
7.20under rules adopted by the chief administrative law judge and must include the following
7.21to the extent the agency, through reasonable effort, can ascertain this information:
7.22(1) a description of the classes of persons who probably will be affected by the
7.23proposed rule, including classes that will bear the costs of the proposed rule and classes
7.24that will benefit from the proposed rule;
7.25(2) the probable costs to the agency and to any other agency of the implementation
7.26and enforcement of the proposed rule and any anticipated effect on state revenues;
7.27(3) a determination of whether there are less costly methods or less intrusive
7.28methods for achieving the purpose of the proposed rule;
7.29(4) a description of any alternative methods for achieving the purpose of the
7.30proposed rule that were seriously considered by the agency and the reasons why they
7.31were rejected in favor of the proposed rule;
7.32(5) the probable costs of complying with the proposed rule, including the portion
7.33of the total costs that will be borne by identifiable categories of affected parties, such as
7.34separate classes of governmental units, businesses, or individuals;
8.1(6) the probable costs or consequences of not adopting the proposed rule, including
8.2those costs or consequences borne by identifiable categories of affected parties, such as
8.3separate classes of government units, businesses, or individuals;
8.4(7) an assessment of any differences between the proposed rule and existing federal
8.5regulations and a specific analysis of the need for and reasonableness of each difference; and
8.6(8) an assessment of the cumulative effect of the rule with other federal and state
8.7regulations related to the specific purpose of the rule.
8.8The statement must describe how the agency, in developing the rules, considered
8.9and implemented the legislative policy supporting performance-based regulatory systems
8.10set forth in section 14.002.
8.11For purposes of clause (8), "cumulative effect" means the impact that results from
8.12incremental impact of the proposed rule in addition to other rules, regardless of what
8.13state or federal agency has adopted the other rules. Cumulative effects can result from
8.14individually minor but collectively significant rules adopted over a period of time.
8.15The statement must also describe the agency's efforts to provide additional
8.16notification under section 14.14, subdivision 1a, to persons or classes of persons who may
8.17be affected by the proposed rule or must explain why these efforts were not made.
8.18The agency must consult with the commissioner of management and budget to
8.19help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
8.20government.
8.21By the date of the notice of hearing, the agency must prepare and make available for
8.22public review a statement of the need for and reasonableness of the rule. The statement of
8.23need and reasonableness must be prepared under rules adopted by the chief administrative
8.24law judge. The statement of need and reasonableness must include a citation to the most
8.25specific statutory authority for the rule and a general description of the need for and
8.26reasonableness of the proposed rule. It must also include the following to the extent the
8.27agency, through reasonable effort, can ascertain this information:
8.28(1) a description of the persons or classifications of persons who probably will be
8.29affected by the proposed rule; and
8.30(2) the probable costs of the rule to affected persons and the agency, including
8.31those costs or consequences borne by identifiable categories of affected parties, such as
8.32separate classes of government units, businesses, or individuals, and the probable benefits
8.33of adopting the rule.
8.34The agency must send a copy of the statement of need and reasonableness to the
8.35Legislative Reference Library no later than when the notice of hearing is mailed under
8.36section 14.14, subdivision 1a sent.

9.1    Sec. 13. Minnesota Statutes 2012, section 14.14, subdivision 1a, is amended to read:
9.2    Subd. 1a. Notice of rule hearing. (a) Each agency shall maintain a list of all persons
9.3who have registered with the agency for the purpose of receiving notice of rule proceedings.
9.4Persons may register to receive notice of rule proceedings by submitting to the agency:
9.5(1) their electronic mail address; or
9.6(2) their name and United States mail address.
9.7The agency may inquire as to whether those persons on the list wish to remain on it and
9.8may remove persons for whom there is a negative reply or no reply within 60 days. The
9.9agency shall, at least 30 days before the date set for the hearing, give notice of its intention
9.10to adopt hold a hearing on the proposed rules by United States mail or electronic mail to
9.11all persons on its list who have registered their names with the agency under section
9.1214.105, and by publication in the State Register.
9.13    The mailed notice must include either a copy of the proposed rule or an easily
9.14readable and understandable description of its nature and effect and an announcement that
9.15a free copy of the proposed rule is available on request from the agency. In addition, each
9.16agency shall make reasonable efforts to notify persons or classes of persons who may
9.17be significantly affected by the rule being proposed by giving notice of its intention in
9.18newsletters, newspapers, or other publications, or through other means of communication.
9.19 The notice in the State Register must include the proposed rule or an amended rule in
9.20the form required by the revisor under section 14.07, together with an easily readable
9.21and understandable summary of the overall nature and effect of the proposed rule, a
9.22citation to the most specific statutory authority for the proposed rule, a statement of the
9.23place, date, and time of the public hearing, a statement that a free copy of the proposed
9.24rule and the statement of need and reasonableness may be requested from the agency, a
9.25statement that persons may register with the agency for the purpose of receiving notice of
9.26rule proceedings and notice that the agency intends to adopt a rule and other information
9.27required by law or rule. When an entire rule is proposed to be repealed, the agency need
9.28only publish that fact, along with an easily readable and understandable summary of the
9.29overall nature of the rules proposed for repeal, and a citation to the rule to be repealed.
9.30If a notice of intent to adopt a rule was previously published with the text of the
9.31same proposed rule, the agency may omit the text of the proposed rule from the notice
9.32of hearing if the agency includes a citation to the previous publication. The mail notice
9.33of hearing must be the same as the notice published in the State Register, except that the
9.34mailed notice may omit the text of the proposed rule.
10.1(b) The chief administrative law judge may authorize an agency to omit from the
10.2notice of rule hearing the text of any proposed rule, the publication of which would be
10.3unduly cumbersome, expensive, or otherwise inexpedient if:
10.4(1) knowledge of the rule is likely to be important to only a small class of persons;
10.5(2) the notice of rule hearing states that a free copy of the entire rule is available
10.6upon request to the agency; and
10.7(3) the notice of rule hearing states in detail the specific subject matter of the omitted
10.8rule, cites the statutory authority for the proposed rule, and details the proposed rule's
10.9purpose and motivation.

10.10    Sec. 14. Minnesota Statutes 2012, section 14.14, subdivision 2a, is amended to read:
10.11    Subd. 2a. Hearing procedure. When a hearing is held on a proposed rule, it shall
10.12be conducted by an administrative law judge assigned by the chief administrative law
10.13judge. The administrative law judge shall ensure that all persons involved in the rule
10.14hearing are treated fairly and impartially. The agency shall submit into the record the
10.15jurisdictional documents, including the statement of need and reasonableness, comments
10.16and hearing requests received, and any written exhibits in support of the proposed rule.
10.17The agency may also present additional oral evidence. Interested persons may present
10.18written and oral evidence. The administrative law judge shall allow questioning of agency
10.19representatives or witnesses, or of interested persons making oral statements, in order to
10.20explain the purpose or intended operation of a proposed rule, or a suggested modification,
10.21or for other purposes if material to the evaluation or formulation of the proposed rule. The
10.22administrative law judge may limit repetitive or immaterial oral statements and questioning.

10.23    Sec. 15. Minnesota Statutes 2012, section 14.16, subdivision 1, is amended to read:
10.24    Subdivision 1. Review of modifications. If the report of the administrative law
10.25judge finds no defects, the agency may proceed to adopt the rule. After receipt of the
10.26administrative law judge's report, if the agency makes any modifications to the rule,
10.27it must return the rule, approved as to form by the revisor, to the chief administrative
10.28law judge for a review of legality, including the issue of whether the rule as modified
10.29is substantially different, as determined under section 14.05, subdivision 2, from the
10.30rule as originally proposed. If the chief administrative law judge determines that the
10.31modified rule is substantially different from the rule that was originally proposed, the chief
10.32administrative law judge shall advise the agency of actions that will correct the defects.
10.33The agency may not adopt the modified rule until the chief administrative law judge
11.1determines that the defects have been corrected or, if applicable, that the agency has
11.2satisfied the rule requirements for the adoption of a substantially different rule.
11.3The agency shall give notice to all persons who requested to be informed that the
11.4rule has been adopted and filed with the secretary of state. This notice must be given on
11.5the same day that the rule is filed.

11.6    Sec. 16. Minnesota Statutes 2012, section 14.16, subdivision 3, is amended to read:
11.7    Subd. 3. Filing. After the agency has adopted provided the chief administrative law
11.8judge with a signed order adopting the rule, the agency chief administrative law judge
11.9 shall promptly file three four paper copies or an electronic copy of it the adopted rule in
11.10the Office of the Secretary of State. The secretary of state shall forward one copy of each
11.11rule filed to the agency, to the revisor of statutes, and to the governor.

11.12    Sec. 17. Minnesota Statutes 2012, section 14.22, is amended to read:
11.1314.22 NOTICE OF PROPOSED ADOPTION OF RULES.
11.14    Subdivision 1. Contents. (a) Unless an agency proceeds directly to a public hearing
11.15on a proposed rule and gives the notice prescribed in section 14.14, subdivision 1a, the
11.16agency shall give notice of its intention to adopt a rule without public hearing. The agency
11.17shall give the notice required by this section, unless the agency gives notice of a hearing
11.18under section 14.14. The agency shall give notice must be given of its intention to adopt a
11.19rule by publication in the State Register and by United States mail or electronic mail to
11.20persons who have registered their names with the agency under section 14.14, subdivision
11.211a 14.105. The mailed notice must include either a copy of the proposed rule or an easily
11.22readable and understandable description of its nature and effect and an announcement that
11.23a free copy of the proposed rule is available on request from the agency. In addition,
11.24each agency shall make reasonable efforts to notify persons or classes of persons who
11.25may be significantly affected by the rule by giving notice of its intention in newsletters,
11.26newspapers, or other publications, or through other means of communication. The notice
11.27in the State Register must include the proposed rule or the amended rule in the form
11.28required by the revisor under section 14.07,; an easily readable and understandable
11.29summary of the overall nature and effect of the proposed rule,; a citation to the most
11.30specific statutory authority for the proposed rule,; a statement that persons may register
11.31with the agency for the purpose of receiving to receive notice of rule proceedings and
11.32notice that a rule has been submitted to the chief administrative law judge,; and other
11.33information required by law or rule. When an entire rule is proposed to be repealed, the
11.34notice need only state that fact, along with an easily readable and understandable summary
12.1of the overall nature of the rules rule proposed for repeal, and a citation to the rule to be
12.2repealed. The notice must include a statement advising the public:
12.3(1) that the public has 30 days in which to submit comment in support of or in
12.4opposition to the proposed rule and that comment is encouraged;
12.5(2) that each comment should identify the portion part and subpart, if any, of the
12.6proposed rule addressed, the reason for the comment, and any change proposed;
12.7(3) that the requester is encouraged to propose any change desired;
12.8(3) (4) that if 25 50 or more persons submit a written request for a public hearing
12.9within the 30-day comment period, a public hearing will be held and the agency will use
12.10the process under section 14.14;
12.11(4) (5) of the manner in which persons must request a public hearing on the proposed
12.12rule, including the requirements contained in section 14.25 relating to a written request
12.13for a public hearing; and
12.14(5) of the requirements contained in section 14.25 relating to a written request for a
12.15public hearing, and that the requester is encouraged to propose any change desired;
12.16(6) that the agency may modify the proposed rule may be modified if the
12.17modifications are supported by the data and views submitted; and.
12.18(7) that if a hearing is not required, notice of the date of submission of the proposed
12.19rule to the chief administrative law judge for review will be mailed to any person
12.20requesting to receive the notice.
12.21In connection with the statements required in clauses (1) and (3) (4), the notice must
12.22also include the date on which the 30-day comment period ends. The mailed notice of
12.23intent to adopt a rule must be the same as the notice published in the State Register, except
12.24that the mailed notice may omit the text of the proposed rule.
12.25(b) The chief administrative law judge may authorize an agency to omit from the
12.26notice of intent to adopt the text of any proposed rule, the publication of which would be
12.27unduly cumbersome, expensive, or otherwise inexpedient if:
12.28(1) knowledge of the rule is likely to be important to only a small class of persons;
12.29(2) the notice of intent to adopt states that a free copy of the entire rule is available
12.30upon request to the agency; and
12.31(3) the notice of intent to adopt states in detail the specific subject matter of the
12.32omitted rule, cites the statutory authority for the proposed rule, and details the proposed
12.33rule's purpose and motivation.
12.34    Subd. 2. Dual notices. The agency may, at the same time notice is given under
12.35subdivision 1, give notice of a public hearing and of its intention to proceed under sections
12.3614.14 to 14.20, if one is required under section 14.25. The notice must include a statement
13.1advising the public of its intention to cancel the public hearing if 25 50 or more persons do
13.2not request one. If a hearing is required, there must be at least ten calendar days between
13.3the last day for requesting a hearing and the day of the hearing.

13.4    Sec. 18. Minnesota Statutes 2012, section 14.23, is amended to read:
13.514.23 STATEMENT OF NEED AND REASONABLENESS.
13.6By the date of the section 14.22 notice, the agency shall prepare a statement of need
13.7and reasonableness, which must be available to the public. The statement of need and
13.8reasonableness must include the analysis information required in section 14.131. The
13.9statement must also describe the agency's efforts to provide additional notification under
13.10section 14.22 to persons or classes of persons who may be affected by the proposed rules
13.11or must explain why these efforts were not made. For at least 30 days following the
13.12notice, the agency shall afford the public an opportunity to request a public hearing and
13.13to submit data and views on the proposed rule in writing.
13.14The agency shall send a copy of the statement of need and reasonableness to the
13.15Legislative Reference Library no later than when the notice of intent to adopt is mailed sent.

13.16    Sec. 19. Minnesota Statutes 2012, section 14.25, is amended to read:
13.1714.25 PUBLIC HEARING.
13.18    Subdivision 1. Requests for hearing. If, during the 30-day period allowed for
13.19comment under section 14.22, 25 50 or more persons submit to the agency a written
13.20request for a public hearing of the proposed rule, the agency shall proceed under the
13.21provisions of sections 14.14 to 14.20. The written request must include: (1) the name and
13.22address of the person requesting the public hearing; and (2) the portion or portions part
13.23or subpart, if any, of the rule to which the person objects or a statement that the person
13.24opposes the entire rule. If not previously published under section 14.22, subdivision 2, a
13.25notice of the public hearing must be published in the State Register and mailed to those
13.26persons who submitted a written request for the public hearing. Unless the agency has
13.27modified the proposed rule, the notice need not include the text of the proposed rule but
13.28only a citation to the State Register pages where the text appears; and (3) the reasons for
13.29the objection to each portion of the rule identified.
13.30A written request for a public hearing that does not comply with the requirements of
13.31this section is invalid and may not be counted by the agency for purposes of determining
13.32whether a public hearing must be held.
13.33    Subd. 2. Withdrawal of hearing requests. If a request for a public hearing has
13.34been withdrawn so as to reduce the number of requests below 25 50, the agency must give
14.1written notice of that fact to all persons who have requested the public hearing. No public
14.2hearing may be canceled by an agency within three working days of the hearing. The
14.3notice must explain why the request is being withdrawn, and must include a description of
14.4any action the agency has taken or will take that affected or may have affected the decision
14.5to withdraw the requests. The notice must also invite persons to submit written comments
14.6within five working days to the agency relating to the withdrawal. The notice and any
14.7written comments received by the agency is part of the rulemaking record submitted to the
14.8administrative law judge under section 14.14 or 14.26. The administrative law judge shall
14.9review the notice and any comments received and determine whether the withdrawal is
14.10consistent with section 14.001, clauses (2), (4), and (5).
14.11This subdivision applies only to a withdrawal of a hearing request that affects
14.12whether a public hearing must be held and only if the agency has taken any action to
14.13obtain the withdrawal of the hearing request.

14.14    Sec. 20. Minnesota Statutes 2012, section 14.26, is amended to read:
14.1514.26 ADOPTION OF PROPOSED RULE; SUBMISSION TO
14.16ADMINISTRATIVE LAW JUDGE.
14.17    Subdivision 1. Submission. If no hearing is required, the agency shall submit to an
14.18administrative law judge assigned by the chief administrative law judge the proposed rule
14.19and notice as published, the rule as adopted, any written comments received by the agency,
14.20and a statement of need and reasonableness for the rule. The agency shall give notice to
14.21all persons who requested to be informed that these materials have been submitted to the
14.22administrative law judge. This notice must be given on the same day that the record is
14.23submitted. If the proposed rule has been modified, the notice must state that fact, and must
14.24also state that a free copy of the proposed rule, as modified, is available upon request from
14.25the agency. The rule and these materials must be submitted to the administrative law judge
14.26within 180 days of the day that the comment period for the rule is over or the rule is
14.27automatically withdrawn. The agency may not adopt the withdrawn rules without again
14.28following the procedures of sections 14.05 to 14.28, with the exception of section 14.101,
14.29if the noncompliance is approved by the chief administrative law judge. The agency
14.30shall report its failure to adopt the rules and the reasons for that failure to the Legislative
14.31Coordinating Commission, other appropriate legislative committees, and the governor.
14.32    Subd. 2. Resubmission. Even if the 180-day period expires while the administrative
14.33law judge reviews the rule, if the administrative law judge rejects the rule, the agency may
14.34resubmit it after taking corrective action. The resubmission must occur within 30 days of
14.35when the agency receives written notice of the disapproval. If the rule is again disapproved,
15.1the rule is withdrawn. An agency may resubmit at any time before the expiration of the
15.2180-day period. If the agency withholds some of the proposed rule, it may not adopt the
15.3withheld portion without again following the procedures of sections 14.14 to 14.28.
15.4    Subd. 3. Review. (a) Within 14 days of receiving a submission under subdivision 1,
15.5the administrative law judge shall approve or disapprove the rule as to its legality and its
15.6form to the extent that the form relates to legality, including the issues of whether the rule
15.7if modified is substantially different, as determined under section 14.05, subdivision 2,
15.8from the rule as originally proposed, whether the agency has the authority to adopt the rule,
15.9and whether the record demonstrates a rational basis for the need for and reasonableness
15.10of the proposed rule. If the rule is approved, the administrative law judge shall promptly
15.11file four copies of it in the Office of the Secretary of State. The secretary of state shall
15.12forward one copy of each rule to the revisor of statutes, one to the agency, and one to the
15.13governor. If the rule is disapproved, the administrative law judge shall state in writing the
15.14reasons for the disapproval and make recommendations to overcome the defects.
15.15    Subd. 4. Harmless error. The administrative law judge shall disregard any error or
15.16defect in the proceeding due to the agency's failure to satisfy any procedural requirements
15.17imposed by law or rule if the administrative law judge finds:
15.18(1) that the failure did not deprive any person or entity of an opportunity to
15.19participate meaningfully in the rulemaking process; or
15.20(2) that the agency has taken corrective action to cure the error or defect so that the
15.21failure did not deprive any person or entity of an opportunity to participate meaningfully
15.22in the rulemaking process.
15.23    Subd. 5. Correction of defects. (b) (a) The written disapproval must be submitted
15.24to the chief administrative law judge for approval. If the chief administrative law judge
15.25approves of the findings of the administrative law judge, the chief administrative law
15.26judge shall send the statement of the reasons for disapproval of the rule to the agency,
15.27the Legislative Coordinating Commission, the house of representatives and senate policy
15.28committees with primary jurisdiction over state governmental operations, and the revisor
15.29of statutes and advise the agency and the revisor of statutes of actions that will correct the
15.30defects. The rule may not be filed in the Office of the Secretary of State, nor be published,
15.31until the chief administrative law judge determines that the defects have been corrected
15.32or, if applicable, that the agency has satisfied the rule requirements for the adoption of a
15.33substantially different rule.
15.34(b) The agency may resubmit the disapproved rule under paragraph (a) to the chief
15.35administrative law judge after correcting the defects. If the 180-day period expires while
15.36the administrative law judge is reviewing the rule, the agency may resubmit the rule within
16.130 days of the date the agency received written notice of disapproval. In all other cases,
16.2the agency may resubmit the rule at any time before the expiration of the 180-day period in
16.3subdivision 1. If the resubmitted rule is disapproved by the chief administrative law judge,
16.4the rule is withdrawn. If the agency does not resubmit a portion of the rule, it may not adopt
16.5that portion of the rule without again following the procedures of sections 14.14 to 14.28.
16.6    Subd. 6. Need or reasonableness not established. (c) If the chief administrative law
16.7judge determines that the need for or reasonableness of the rule has not been established,
16.8and if the agency does not elect to follow the suggested actions of the chief administrative
16.9law judge to correct that defect, then the agency shall submit the proposed rule to the
16.10Legislative Coordinating Commission and to the house of representatives and senate policy
16.11committees with primary jurisdiction over state governmental operations for advice and
16.12comment. The agency may not adopt the rule until it has received and considered the advice
16.13of the commission and committees. However, the agency need not wait for advice for more
16.14than 60 days after the commission and committees have received the agency's submission.
16.15(d) The administrative law judge shall disregard any error or defect in the proceeding
16.16due to the agency's failure to satisfy any procedural requirements imposed by law or
16.17rule if the administrative law judge finds:
16.18(1) that the failure did not deprive any person or entity of an opportunity to
16.19participate meaningfully in the rulemaking process; or
16.20(2) that the agency has taken corrective action to cure the error or defect so that the
16.21failure did not deprive any person or entity of an opportunity to participate meaningfully
16.22in the rulemaking process.
16.23    Subd. 7. Filing. If the rule is approved, the administrative law judge shall promptly
16.24file four paper copies or an electronic copy of it in the Office of the Secretary of State. The
16.25secretary of state shall forward one copy of each rule to the revisor of statutes, one to the
16.26agency, and one to the governor.
16.27    Subd. 4 8. Costs. The Office of Administrative Hearings shall assess an agency
16.28for the actual cost of processing rules under this section. Each agency shall include in its
16.29budget money to pay the assessment. Receipts from the assessment must be deposited in
16.30the administrative hearings account created in section 14.54.

16.31    Sec. 21. Minnesota Statutes 2012, section 14.388, subdivision 1, is amended to read:
16.32    Subdivision 1. Requirements. If an agency for good cause finds that the rulemaking
16.33provisions of this chapter are unnecessary, impracticable, or contrary to the public interest
16.34when adopting, amending, or repealing a rule to:
16.35(1) address a serious and immediate threat to the public health, safety, or welfare;
17.1(2) comply with a court order or a requirement in federal law in a manner that does
17.2not allow for compliance with sections 14.14 to 14.28;
17.3(3) incorporate specific changes set forth in applicable statutes when no interpretation
17.4of law is required; or
17.5(4) make changes that do not alter the sense, meaning, or effect of a rule,
17.6the agency may adopt, amend, or repeal the rule after satisfying the requirements of
17.7subdivision 2 and section 14.386, paragraph (a), clauses (1) to (4). The agency shall
17.8incorporate its findings and a brief statement of its supporting reasons in its order adopting,
17.9amending, or repealing the rule.
17.10After considering the agency's statement and any comments received, the Office
17.11of Administrative Hearings shall determine whether the agency has provided adequate
17.12justification for its use of this section.
17.13Rules adopted, amended, or repealed under clauses clause (1) and (2) are effective
17.14for a period of two years from the date of publication of the rule in the State Register.
17.15Rules adopted, amended, or repealed under clause (2), (3), or (4) are effective upon
17.16publication in the State Register.

17.17    Sec. 22. Minnesota Statutes 2012, section 14.389, is amended to read:
17.1814.389 EXPEDITED PROCESS.
17.19    Subdivision 1. Application. (a) This section applies when a law requiring or
17.20authorizing rules to be adopted states that this section must or may be used to adopt the
17.21rules. When a law refers to this section, the process in this section is the only process an
17.22agency must follow for its rules to:
17.23(1) a law requiring or authorizing rules to be adopted states that this section must or
17.24may be used to adopt the rules;
17.25(2) an agency is adopting or incorporating by reference a specific code or standard
17.26referenced in a law requiring or authorizing rules to be adopted under this chapter;
17.27(3) an agency is adopting or modifying a rule to conform to a change in federal law
17.28or regulation that is binding on the state or a state law or rule; or
17.29(4) an agency is repealing rules that are obsolete, unnecessary, or duplicative of other
17.30state or federal statutes or rules.
17.31(b) An agency may also use this process to adopt rules it determines are
17.32noncontroversial if there is other law authorizing the rules.
17.33(c) Rules adopted under this section have the force and effect of law. Sections 14.19
17.34and 14.366 apply to rules adopted under this section.
18.1    Subd. 2. Notice and comment. (a) The agency must publish notice of the proposed
18.2rule in the State Register and must mail the notice by United States mail or electronic mail
18.3to persons who have registered with the agency to receive mailed notices.
18.4(b) The notice for rules adopted under the authority granted in subdivision 1,
18.5paragraph (b), must include a statement that if 50 or more persons request that the agency
18.6follow all of the requirements for rules adopted with or without a public hearing, as
18.7appropriate, except section 14.101, the agency shall adopt the rule only after complying
18.8with all of the requirements for rules adopted with or without a public hearing, as
18.9appropriate, except section 14.101. The notice must also include an easily readable and
18.10understandable description of the purpose, nature, and effect of the proposed rules,
18.11including a description of the persons or classes of persons who are likely to be affected
18.12by the proposed rulemaking. A hearing request made pursuant to this subdivision must
18.13be in writing and include: (1) the name and address of the person requesting the agency
18.14to adopt the rule in compliance with the procedures under sections 14.05 to 14.28; and
18.15(2) the portion or portions of the rule to which the person objects or a statement that
18.16the person is opposed to the entire rule.
18.17(c) The mailed notice must include either a copy of the proposed rule or a description
18.18of the nature and effect of the proposed rule and a statement that a free copy is available
18.19from the agency upon request.
18.20(d) The notice in the State Register must include the proposed rule or the amended
18.21rule in the form required by the revisor under section 14.07, an easily readable and
18.22understandable summary of the overall nature and effect of the proposed rule, and a
18.23citation to the most specific statutory authority for the rule, including authority for the rule
18.24to be adopted under the process in this section.
18.25(e) The agency must allow 30 days after publication in the State Register for
18.26comment on the rule.
18.27    Subd. 3. Adoption. The agency may modify a proposed rule if the modifications
18.28do not result in a substantially different rule, as defined in section 14.05, subdivision 2,
18.29paragraphs (b) and (c). If the final rule is identical to the rule originally published in the
18.30State Register, the agency must publish a notice of adoption in the State Register. If the
18.31final rule is different from the rule originally published in the State Register, the agency
18.32must publish a copy of the changes in the State Register. The agency must also file a copy
18.33of the rule with the governor. The rule is effective upon publication in the State Register.
18.34    Subd. 4. Legal review. Before publication of the final rule in the State Register, the
18.35agency must submit the rule and its order adopting, amending, or repealing the rule to an
18.36administrative law judge in the Office of Administrative Hearings. The agency's order
19.1must include the agency's findings and a brief statement summarizing its reasons for using
19.2this expedited process. The administrative law judge shall within 14 days approve or
19.3disapprove the rule as to its legality and its form to the extent the form relates to legality.
19.4    Subd. 5. Option. A law authorizing or requiring rules to be adopted under this
19.5section may refer specifically to this subdivision. If the law contains a specific reference to
19.6this subdivision, as opposed to a general reference to this section:
19.7(1) the notice required in subdivision 2 must include a statement that a public
19.8hearing will be held if 100 or more people request a hearing. The request must be in
19.9the manner specified in section 14.25; and
19.10(2) if 100 or more people submit a written request for a public hearing, the agency
19.11may adopt the rule only after complying with all of the requirements of chapter 14 for
19.12rules adopted after a public hearing, except for section 14.101.
19.13    Subd. 6. Additional notice plan. An agency proposing expedited rules under
19.14subdivision 1 must give notice by methods designed to reach persons or classes of persons
19.15who might be affected by the proposal before publication of the notice required by
19.16subdivision 2 in the State Register. The agency must submit its additional notice plan to the
19.17Office of Administrative Hearings and receive approval of the plan before publication. The
19.18request for approval must include a description of the proposed additional notice plan; a
19.19description or a draft of the proposed rules; and an explanation of why the agency believes
19.20that its additional notice plan provides sufficient notice. The administrative law judge
19.21must approve or disapprove the plan within five working days after the office receives it.

19.22    Sec. 23. REPEALER.
19.23Minnesota Statutes 2012, sections 14.04; 14.05, subdivision 5; 14.14, subdivision
19.241b; and 14.3895, are repealed.

19.25    Sec. 24. EFFECTIVE DATE; APPLICATION.
19.26This act is effective the day following final enactment and applies to rules for which
19.27a notice of hearing under Minnesota Statutes, section 14.14; a notice of intent to adopt
19.28under Minnesota Statutes, section 14.22; or a dual notice under Minnesota Statutes,
19.29section 14.225, is published in the State Register on or after that date."
19.30Delete the title and insert:
19.32relating to state government; regulating agency rulemaking;amending Minnesota
19.33Statutes 2012, sections 3.842, subdivision 4a; 14.05, subdivision 6, by adding
19.34subdivisions; 14.07, subdivision 4; 14.08; 14.101, subdivision 1; 14.116; 14.125;
19.3514.126, subdivision 2; 14.131; 14.14, subdivisions 1a, 2a; 14.16, subdivisions 1,
19.363; 14.22; 14.23; 14.25; 14.26; 14.388, subdivision 1; 14.389; proposing coding
20.1for new law in Minnesota Statutes, chapter 14; repealing Minnesota Statutes
20.22012, sections 14.04; 14.05, subdivision 5; 14.14, subdivision 1b; 14.3895."