1.1 A bill for an act 1.2 relating to state government; adding requirements in the Administrative Procedure 1.3 Act to emphasize statutory authorization for rules; rescinding governor's statutory 1.4 authority to authorize rules in an emergency; precluding court deference to agency 1.5 rule interpretation; amending Minnesota Statutes 2024, sections 12.21, subdivision 1.6 3; 14.02, subdivision 4; 14.05, subdivision 1; 14.131; 14.365; 14.366; 14.37, by 1.7 adding a subdivision; 14.44; 14.69. 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 ARTICLE 1 1.10 ADMINISTRATIVE PROCEDURE 1.11 Section 1. Minnesota Statutes 2024, section 14.02, subdivision 4, is amended to read: 1.12 Subd. 4.Rule."Rule" means every agency statement of general applicability and future 1.13effect, including amendments, suspensions, and repeals of rules, adopted to implement or 1.14make specific the law enforced or administered by that agency or to govern its organization 1.15or procedure. A requirement in an agency guidance document is not a rule unless adopted 1.16following procedures required for adoption of a rule. 1.17 EFFECTIVE DATE.This section is effective the day following final enactment for 1.18rules for which a notice of intent to adopt a rule without public hearing under Minnesota 1.19Statutes, section 14.22, subdivision 1, paragraph (a), 14.389, subdivision 2, or 14.3895, 1.20subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a 1.21notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published 1.22before May 1, 2025. 1Article 1 Section 1. REVISOR VH/VJ 25-0492403/26/25 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 3113 NINETY-FOURTH SESSION Authored by Hudson04/03/2025 The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1 Sec. 2. Minnesota Statutes 2024, section 14.05, subdivision 1, is amended to read: 2.2 Subdivision 1.Authority to adopt original rules restricted.Each agency shall adopt, 2.3amend, suspend, or repeal its rules in accordance with the procedures specified in sections 2.414.001 to 14.69, and only pursuant to authority delegated by law statute and in full 2.5compliance with its duties and obligations. If a law authorizing rules is repealed, the rules 2.6adopted pursuant to that law are automatically repealed on the effective date of the law's 2.7repeal unless there is another law authorizing the rules. Except as provided in section 14.06, 2.8sections 14.001 to 14.69 shall not be authority for an agency to adopt, amend, suspend, or 2.9repeal rules. 2.10 EFFECTIVE DATE.This section is effective the day following final enactment for 2.11rules for which a notice of intent to adopt a rule without public hearing under Minnesota 2.12Statutes, section 14.22, subdivision 1, paragraph (a), 14.389, subdivision 2, or 14.3895, 2.13subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a 2.14notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published 2.15before May 1, 2025. 2.16 Sec. 3. Minnesota Statutes 2024, section 14.131, is amended to read: 2.17 14.131 STATEMENT OF NEED AND REASONABLENESS. 2.18 By the date of the section 14.14, subdivision 1a, notice, the agency must prepare, review, 2.19and make available for public review a statement of the need for and reasonableness of the 2.20rule. The statement of need and reasonableness must be prepared under rules adopted by 2.21the chief administrative law judge and must include the following to the extent the agency, 2.22through reasonable effort, can ascertain this information: 2.23 (1) a description of the classes of persons who probably will be affected by the proposed 2.24rule, including classes that will bear the costs of the proposed rule and classes that will 2.25benefit from the proposed rule; 2.26 (2) the probable costs to the agency and to any other agency of the implementation and 2.27enforcement of the proposed rule and any anticipated effect on state revenues; 2.28 (3) a determination of whether there are less costly methods or less intrusive methods 2.29for achieving the purpose of the proposed rule; 2.30 (4) a description of any alternative methods for achieving the purpose of the proposed 2.31rule that were seriously considered by the agency and the reasons why they were rejected 2.32in favor of the proposed rule, and where the rule incorporates a third-party standard by 2.33reference, this description must include an explanation of why the third-party's standard is 2Article 1 Sec. 3. REVISOR VH/VJ 25-0492403/26/25 3.1the method of enforcing the relevant statute that imposes the least burden on the entity 3.2subject to the statute and rule; 3.3 (5) the probable costs of complying with the proposed rule, including the portion of the 3.4total costs that will be borne by identifiable categories of affected parties, such as separate 3.5classes of governmental units, businesses, or individuals; 3.6 (6) the probable costs or consequences of not adopting the proposed rule, including those 3.7costs or consequences borne by identifiable categories of affected parties, such as separate 3.8classes of government units, businesses, or individuals; 3.9 (7) an assessment of any differences between the proposed rule and existing federal 3.10regulations and a specific analysis of the need for and reasonableness of each difference; 3.11and 3.12 (8) an assessment of the cumulative effect of the rule with other federal and state 3.13regulations related to the specific purpose of the rule. 3.14 The statement must describe how the agency, in developing the rules, considered and 3.15implemented the legislative policy supporting performance-based regulatory systems set 3.16forth in section 14.002. 3.17 For purposes of clause (8), "cumulative effect" means the impact that results from 3.18incremental impact of the proposed rule in addition to other rules, regardless of what state 3.19or federal agency has adopted the other rules. Cumulative effects can result from individually 3.20minor but collectively significant rules adopted over a period of time. 3.21 The statement must also describe the agency's efforts to provide additional notification 3.22under section 14.14, subdivision 1a, to persons or classes of persons who may be affected 3.23by the proposed rule or must explain why these efforts were not made. 3.24 The agency must consult with the commissioner of management and budget to help 3.25evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local 3.26government. The agency must send a copy of the statement of need and reasonableness to 3.27the Legislative Reference Library when the notice of hearing is mailed under section 14.14, 3.28subdivision 1a. 3.29 EFFECTIVE DATE.This section is effective the day following final enactment for 3.30rules for which a notice of intent to adopt a rule without public hearing under Minnesota 3.31Statutes, section 14.22, subdivision 1, paragraph (a), 14.389, subdivision 2, or 14.3895, 3.32subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a 3Article 1 Sec. 3. REVISOR VH/VJ 25-0492403/26/25 4.1notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published 4.2before May 1, 2025. 4.3 Sec. 4. Minnesota Statutes 2024, section 14.365, is amended to read: 4.4 14.365 OFFICIAL RULEMAKING RECORD. 4.5 The agency shall maintain the official rulemaking record for every rule adopted under 4.6sections 14.05 to 14.389. The record must be available for public inspection. The record 4.7required by this section constitutes the official and exclusive agency rulemaking record 4.8with respect to agency action on or judicial review of the rule. The record must contain: 4.9 (1) copies of all publications in the State Register pertaining to the rule; 4.10 (2) all written petitions, and all requests, submissions, or comments received by the 4.11agency or the administrative law judge after publication of the notice of intent to adopt or 4.12the notice of hearing in the State Register pertaining to the rule; 4.13 (3) the statement of need and reasonableness for the rule; 4.14 (4) the official transcript of the hearing if one was held, or the tape recording of the 4.15hearing if a transcript was not prepared; 4.16 (5) the report of the administrative law judge, if any; 4.17 (6) the rule in the form last submitted to the administrative law judge under sections 4.1814.14 to 14.20 or first submitted to the administrative law judge under sections 14.22 to 4.1914.28; 4.20 (7) the administrative law judge's written statement of required modifications and of 4.21approval or disapproval by the chief administrative law judge, if any; 4.22 (8) any documents required by applicable rules of the Office of Administrative Hearings; 4.23 (9) the agency's order adopting the rule, including an identification of the statutory 4.24authority that delegated authority to the agency to adopt the rule; 4.25 (10) the revisor's certificate approving the form of the rule; and 4.26 (11) a copy of the adopted rule as filed with the secretary of state. 4.27 EFFECTIVE DATE.This section is effective the day following final enactment for 4.28rules for which a notice of intent to adopt a rule without public hearing under Minnesota 4.29Statutes, section 14.22, subdivision 1, paragraph (a), 14.389, subdivision 2, or 14.3895, 4.30subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a 4Article 1 Sec. 4. REVISOR VH/VJ 25-0492403/26/25 5.1notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published 5.2before May 1, 2025. 5.3 Sec. 5. Minnesota Statutes 2024, section 14.366, is amended to read: 5.4 14.366 PUBLIC RULEMAKING DOCKET. 5.5 (a) Each agency shall maintain a current, public rulemaking docket. 5.6 (b) The rulemaking docket must contain a listing of the precise subject matter of each 5.7possible proposed rule currently under active consideration within the agency for proposal, 5.8the name and address of agency personnel with whom persons may communicate with 5.9respect to the matter, and an indication of its present status within the agency. 5.10 (c) The rulemaking docket must list each pending rulemaking proceeding. A rulemaking 5.11proceeding is pending from the time it is begun, by publication of the notice of solicitation, 5.12the notice of intent to adopt, or notice of hearing, to the time it is terminated, by publication 5.13of a notice of withdrawal or the rule becoming effective. For each rulemaking proceeding, 5.14the docket must indicate: 5.15 (1) the subject matter of the proposed rule; 5.16 (2) a citation to all published notices relating to the proceeding; 5.17 (3) where written comments on the proposed rule may be inspected; 5.18 (4) the time during which written comments may be made; 5.19 (5) the names of persons who have made written requests for a public hearing, where 5.20those requests may be inspected, and where and when the hearing will be held; 5.21 (6) the current status of the proposed rule and any agency determinations with respect 5.22to the rule; 5.23 (7) any known timetable for agency decisions or other action in the proceeding; 5.24 (8) the date of the rule's adoption; 5.25 (9) the date the rule was filed with the secretary of state; and 5.26 (10) when the rule will become effective; and 5.27 (11) the statutory authority for adoption of the rule. 5.28 EFFECTIVE DATE.This section is effective the day following final enactment for 5.29rules for which a notice of intent to adopt a rule without public hearing under Minnesota 5.30Statutes, section 14.22, subdivision 1, paragraph (a), 14.389, subdivision 2, or 14.3895, 5Article 1 Sec. 5. REVISOR VH/VJ 25-0492403/26/25 6.1subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a 6.2notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published 6.3before May 1, 2025. 6.4 Sec. 6. Minnesota Statutes 2024, section 14.37, is amended by adding a subdivision to 6.5read: 6.6 Subd. 3.Statutory authority.Any electronic or printed publication of a rule by the 6.7revisor of statutes must include a field that identifies the statutory authority for the rule. 6.8 Sec. 7. Minnesota Statutes 2024, section 14.44, is amended to read: 6.9 14.44 DETERMINATION OF VALIDITY OF RULE. 6.10 The validity of any rule may be determined upon the petition for a declaratory judgment 6.11thereon, addressed to the court of appeals, when it appears that the rule, or its threatened 6.12application, interferes with or impairs, or threatens to interfere with or impair the legal rights 6.13or privileges of the petitioner. The agency shall be made a party to the proceeding. The 6.14declaratory judgment may be rendered whether or not the petitioner has first requested the 6.15agency to pass upon the validity of the rule in question, and whether or not the agency has 6.16commenced an action against the petitioner to enforce the rule. The court shall not defer to 6.17the agency's interpretation. 6.18 EFFECTIVE DATE.This section is effective the day following final enactment and 6.19applies to petitions filed on or after that date. 6.20 Sec. 8. Minnesota Statutes 2024, section 14.69, is amended to read: 6.21 14.69 SCOPE OF JUDICIAL REVIEW. 6.22 In a judicial review under sections 14.63 to 14.68, the court may affirm the decision of 6.23the agency or remand the case for further proceedings; or it may reverse or modify the 6.24decision if the substantial rights of the petitioners may have been prejudiced because the 6.25administrative finding, inferences, conclusion, or decisions are: 6.26 (a) in violation of constitutional provisions; or 6.27 (b) in excess of the statutory authority or jurisdiction of the agency; or 6.28 (c) made upon unlawful procedure; or 6.29 (d) affected by other error of law; or 6.30 (e) unsupported by substantial evidence in view of the entire record as submitted; or 6Article 1 Sec. 8. REVISOR VH/VJ 25-0492403/26/25 7.1 (f) arbitrary or capricious. 7.2In making a determination under this section, the court shall not defer to the agency's 7.3interpretation. 7.4 EFFECTIVE DATE.This section is effective the day following final enactment and 7.5applies to petitions filed on or after that date. 7.6 ARTICLE 2 7.7 RESCINDING STATUTORY AUTHORITY FOR RULEMAKING 7.8 ON GOVERNOR'S ORDERS 7.9 Section 1. Minnesota Statutes 2024, section 12.21, subdivision 3, is amended to read: 7.10 Subd. 3.Specific authority.(a) In performing duties under this chapter and to effect its 7.11policy and purpose, the governor may: 7.12 (1) make, amend, and rescind the necessary orders and rules to carry out the provisions 7.13of this chapter and section 216C.15 within the limits of the authority conferred by this 7.14section, with due consideration of the plans of the federal government and without complying 7.15with sections 14.001 to 14.69, but no order or rule has the effect of law except as provided 7.16by section 12.32; 7.17 (2) ensure that a comprehensive emergency operations plan and emergency management 7.18program for this state are developed and maintained, and are integrated into and coordinated 7.19with the emergency plans of the federal government and of other states to the fullest possible 7.20extent; 7.21 (3) in accordance with the emergency operations plan and the emergency management 7.22program of this state, procure supplies, equipment, and facilities; institute training programs 7.23and public information programs; and take all other preparatory steps, including the partial 7.24or full activation of emergency management organizations in advance of actual disaster to 7.25ensure the furnishing of adequately trained and equipped forces of emergency management 7.26personnel in time of need; 7.27 (4) make studies and surveys of the industries, resources, and facilities in this state as 7.28may be necessary to ascertain the capabilities of the state for emergency management and 7.29to plan for the most efficient emergency use of those industries, resources, and facilities; 7.30 (5) on behalf of this state, enter into mutual aid arrangements or cooperative agreements 7.31with other states, tribal authorities, and Canadian provinces, and coordinate mutual aid plans 7.32between political subdivisions of this state; 7Article 2 Section 1. REVISOR VH/VJ 25-0492403/26/25 8.1 (6) delegate administrative authority vested in the governor under this chapter, except 8.2the power to make rules, and provide for the subdelegation of that authority; 8.3 (7) cooperate with the president and the heads of the armed forces, the Emergency 8.4Management Agency of the United States and other appropriate federal officers and agencies, 8.5and with the officers and agencies of other states in matters pertaining to the emergency 8.6management of the state and nation, including the direction or control of: 8.7 (i) emergency preparedness drills and exercises; 8.8 (ii) warnings and signals for drills or actual emergencies and the mechanical devices to 8.9be used in connection with them; 8.10 (iii) shutting off water mains, gas mains, electric power connections and the suspension 8.11of all other utility services; 8.12 (iv) the conduct of persons in the state, including entrance or exit from any stricken or 8.13threatened public place, occupancy of facilities, and the movement and cessation of 8.14movement of pedestrians, vehicular traffic, and all forms of private and public transportation 8.15during, prior, and subsequent to drills or actual emergencies; 8.16 (v) public meetings or gatherings; and 8.17 (vi) the evacuation, reception, and sheltering of persons; 8.18 (8) contribute to a political subdivision, within the limits of the appropriation for that 8.19purpose, not more than 25 percent of the cost of acquiring organizational equipment that 8.20meets standards established by the governor; 8.21 (9) formulate and execute, with the approval of the Executive Council, plans and rules 8.22for the control of traffic in order to provide for the rapid and safe movement over public 8.23highways and streets of troops, vehicles of a military nature, and materials for national 8.24defense and war or for use in any war industry, for the conservation of critical materials, or 8.25for emergency management purposes; and coordinate the activities of the departments or 8.26agencies of the state and its political subdivisions concerned directly or indirectly with 8.27public highways and streets, in a manner that will best effectuate those plans; 8.28 (10) alter or adjust by executive order, without complying with sections 14.01 to 14.69, 8.29the working hours, workdays and work week of, and annual and sick leave provisions and 8.30payroll laws regarding all state employees in the executive branch as the governor deems 8.31necessary to minimize the impact of the disaster or emergency, conforming the alterations 8.32or adjustments to existing state laws, rules, and collective bargaining agreements to the 8.33extent practicable; 8Article 2 Section 1. REVISOR VH/VJ 25-0492403/26/25 9.1 (11) authorize the commissioner of education to alter school schedules, curtail school 9.2activities, or order schools closed as defined in section 120A.05, subdivisions 9, 11, 13, and 9.317, and including charter schools under chapter 124E, and elementary schools enrolling 9.4prekindergarten pupils in district programs; and 9.5 (12) transfer the direction, personnel, or functions of state agencies to perform or facilitate 9.6response and recovery programs. 9.7 (b) Nothing in this section authorizes the governor to authorize an agency to adopt rules. 9.8 EFFECTIVE DATE.This section is effective the day following final enactment for 9.9rules for which a notice of intent to adopt a rule without public hearing under Minnesota 9.10Statutes, section 14.22, subdivision 1, paragraph (a), 14.389, subdivision 2, or 14.3895, 9.11subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a 9.12notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published 9.13before May 1, 2025. 9Article 2 Section 1. REVISOR VH/VJ 25-0492403/26/25 Page.Ln 1.9ADMINISTRATIVE PROCEDURE......................................................ARTICLE 1 Page.Ln 7.6 RESCINDING STATUTORY AUTHORITY FOR RULEMAKING ON GOVERNOR'S ORDERS...............................................................ARTICLE 2 1 APPENDIX Article locations for 25-04924