1.1.................... moves to amend H.F. No. 2169 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 3.842, subdivision 4a, is amended to read:
1.4    Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this
1.5subdivision, "committee" means the house of representatives policy committee or senate
1.6policy committee with primary jurisdiction over state governmental operations. The
1.7commission or a committee may object to a rule or proposed rule as provided in this
1.8subdivision. If the commission or a committee objects to all or some portion of a rule
1.9because the commission or committee considers it to be on the grounds that the rule or
1.10proposed rule: (1) is beyond the procedural or substantive authority delegated to the
1.11agency, including a proposed rule submitted under section 14.15, subdivision 4, or 14.26,
1.12subdivision 3 , paragraph (c); (2) is inconsistent with the enabling statute; (3) is unnecessary
1.13or redundant; or (4) fails to meet the requirements of section 14.131. If the commission or
1.14a committee objects to all or some portion of a rule or proposed rule, the commission or
1.15committee may shall file that objection in the Office of the Secretary of State. The filed
1.16objection must contain a concise statement of the commission's or committee's reasons for
1.17its action. An objection to a proposed rule submitted by the commission or a committee
1.18under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), may not be filed
1.19before the rule is adopted For a proposed rule, the objection must be filed within 30 days
1.20of receipt of the notice under section 14.116, 14.388, or 14.389.
1.21(b) The secretary of state shall affix to each objection a certification of the date and
1.22time of its filing and as soon after the objection is filed as practicable shall electronically
1.23transmit a certified copy of it to the agency issuing the rule in question and to the revisor
1.24of statutes. The secretary of state shall also maintain a permanent register open to public
1.25inspection of all objections by the commission or committee.
1.26(c) The commission or committee shall publish and index an objection filed under
1.27this section in the next issue of the State Register. The revisor of statutes shall indicate
2.1the existence of the objection adjacent to the rule in question when that rule is published
2.2in Minnesota Rules.
2.3(d) Within 14 days after the filing of an objection by the commission or committee to
2.4a rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
2.5After receipt of the response, the commission or committee may withdraw or modify its
2.6objection. After the filing of an objection that is not subsequently withdrawn, the agency
2.7may not adopt the rule until the legislature adjourns the annual legislative session that
2.8began after the vote of the commission or committee. The commission or committee
2.9that files an objection that is not subsequently withdrawn must, as soon as practical,
2.10make a recommendation on a bill that approves the proposed rule, prohibits adoption of
2.11the proposed rule, or amends or repeals the law governing a previously adopted rule
2.12for which an objection was filed.
2.13(e) After the filing of an objection by the commission or committee that is not
2.14subsequently withdrawn, the burden is upon the agency in any proceeding for judicial
2.15review or for enforcement of the rule to establish by clear and convincing evidence that
2.16the whole or portion of the rule objected to is valid and demonstrates that the objection
2.17raised under paragraph (a) is not justified, based on the criteria for objecting to a rule
2.18under paragraph (a).
2.19(f) The failure of the commission or a committee to object to a rule is not an implied
2.20legislative authorization of its validity.
2.21(g) In accordance with sections 14.44 and 14.45, the commission or a committee
2.22may petition for a declaratory judgment to determine the validity of a rule objected to
2.23by the commission or committee. The action must be started within two years after an
2.24objection is filed in the Office of the Secretary of State.
2.25(h) The commission or a committee may intervene in litigation arising from agency
2.26action. For purposes of this paragraph, agency action means the whole or part of a rule, or
2.27the failure to issue a rule.

2.28    Sec. 2. Minnesota Statutes 2011 Supplement, section 3D.06, is amended to read:
2.293D.06 AGENCY REPORT TO COMMISSION.
2.30Before September 1 of the odd-numbered year before the year in which a state agency
2.31is subject to sunset review, the agency commissioner shall report to the commission:
2.32(1) information regarding the application to the agency of the criteria in section
2.333D.10 ;
2.34(2) a priority-based budget for the agency;
3.1(3) an inventory of all boards, commissions, committees, and other entities related
3.2to the agency; and
3.3(4) a list of all rules promulgated by the state agency; and the following information
3.4for each rule: (i) the statutory authority; (ii) the statement of need and reasonableness of
3.5the rule; (iii) whether there has been any change in circumstance requiring the rule to
3.6be amended or repealed; (iv) an assessment of the cumulative effect of the rule with
3.7all other federal and state regulations and local ordinances or regulations related to the
3.8specific purpose of the rule being proposed; (v) an assessment of any differences between
3.9the proposed rule and existing federal regulations and a specific analysis of the need and
3.10reasonableness of each difference; and (vi) a summary of the means to better coordinate
3.11rulemaking between state agencies and other local, state, and federal agencies and a
3.12strategy and schedule to repeal or amend agency rules so as to achieve intended outcomes
3.13of the rules more effectively and efficiently; and
3.14(5) any other information that the agency commissioner considers appropriate or that
3.15is requested by the commission.
3.16The September 1 deadline in this section does not apply in 2011.

3.17    Sec. 3. Minnesota Statutes 2011 Supplement, section 3D.10, is amended to read:
3.183D.10 CRITERIA FOR REVIEW.
3.19The commission and its staff shall consider the following criteria in determining
3.20whether a public need exists for the continuation of a state agency or its advisory
3.21committees or for the performance of the functions of the agency or its advisory
3.22committees:
3.23(1) the efficiency and effectiveness with which the agency or the advisory committee
3.24operates;
3.25(2) an identification of the mission, goals, and objectives intended for the agency or
3.26advisory committee and of the problem or need that the agency or advisory committee
3.27was intended to address and the extent to which the mission, goals, and objectives have
3.28been achieved and the problem or need has been addressed;
3.29(3) an identification of any activities of the agency in addition to those granted by
3.30statute and of the authority for those activities and the extent to which those activities
3.31are needed;
3.32(4) an assessment of authority of the agency relating to fees, inspections,
3.33enforcement, and penalties;
3.34(5) whether less restrictive or alternative methods of performing any function that
3.35the agency performs could adequately protect or provide service to the public;
4.1(6) the extent to which the jurisdiction of the agency and the programs administered
4.2by the agency overlap or duplicate those of other agencies, the extent to which the agency
4.3coordinates with those agencies, and the extent to which the programs administered by the
4.4agency can be consolidated with the programs of other state agencies;
4.5(7) the promptness and effectiveness with which the agency addresses complaints
4.6concerning entities or other persons affected by the agency, including an assessment of the
4.7agency's administrative hearings process;
4.8(8) an assessment of the agency's rules and rulemaking process and the extent to
4.9which the agency has encouraged participation by the public in making its rules and
4.10decisions and the extent to which the public participation has resulted in rules that benefit
4.11the public;
4.12(9) an assessment of whether any of the agency's rules:
4.13(i) are beyond the procedural or substantive authority delegated to the agency;
4.14(ii) are inconsistent with the enabling statute;
4.15(iii) are unnecessary or redundant; or
4.16(iv) fail to meet the requirements of section 14.131;
4.17(9) (10) the extent to which the agency has complied with federal and state laws and
4.18applicable rules regarding equality of employment opportunity and the rights and privacy
4.19of individuals, and state law and applicable rules of any state agency regarding purchasing
4.20guidelines and programs for historically underutilized businesses;
4.21(10) (11) the extent to which the agency issues and enforces rules relating to
4.22potential conflicts of interest of its employees;
4.23(11) (12) the extent to which the agency complies with chapter 13 and follows
4.24records management practices that enable the agency to respond efficiently to requests for
4.25public information; and
4.26(12) (13) the effect of federal intervention or loss of federal funds if the agency is
4.27abolished.

4.28    Sec. 4. Minnesota Statutes 2011 Supplement, section 3D.11, is amended to read:
4.293D.11 RECOMMENDATIONS.
4.30(a) In its report on a state agency, the commission shall:
4.31(1) make recommendations on the abolition, continuation, or reorganization of each
4.32affected state agency and its advisory committees and on the need for the performance of
4.33the functions of the agency and its advisory committees;
5.1(2) make recommendations on the consolidation, transfer, or reorganization of
5.2programs within state agencies not under review when the programs duplicate functions
5.3performed in agencies under review; and
5.4(3) make recommendations to improve the operations of the agency, its policy body,
5.5and its advisory committees, including management recommendations that do not require
5.6a change in the agency's enabling statute; and
5.7(4) make recommendations for the repeal, consolidation, transfer, or amendment of
5.8the rules promulgated by the affected state agency.
5.9(b) The commission shall include the estimated fiscal impact of its recommendations
5.10and may recommend appropriation levels for certain programs to improve the operations
5.11of the state agency.
5.12(c) The commission shall have drafts of legislation prepared to carry out the
5.13commission's recommendations under this section, including legislation necessary
5.14to continue the existence of agencies that would otherwise sunset if the commission
5.15recommends continuation of an agency.
5.16(d) After the legislature acts on the report under section 3D.09, the commission shall
5.17present to the legislative auditor the commission's recommendations that do not require
5.18a statutory change to be put into effect. Subject to the legislative audit commission's
5.19approval, the legislative auditor may examine the recommendations and include as part
5.20of the next audit of the agency a report on whether the agency has implemented the
5.21recommendations and, if so, in what manner.

5.22    Sec. 5. Minnesota Statutes 2010, section 14.05, subdivision 1, is amended to read:
5.23    Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
5.24adopt, amend, suspend, or repeal its rules: (1) in accordance with the procedures specified
5.25in sections 14.001 to 14.69, and; (2) only pursuant to authority expressly delegated by
5.26state or federal law; (3) only that are necessary to serve the public interest; and (4) in full
5.27compliance with its duties and obligations.
5.28(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
5.29automatically repealed on the effective date of the law's repeal unless there is another
5.30law authorizing the rules.
5.31(c) Except as provided in section 14.06, sections 14.001 to 14.69 shall not be
5.32authority for an agency to adopt, amend, suspend, or repeal rules.

5.33    Sec. 6. Minnesota Statutes 2010, section 14.116, is amended to read:
5.3414.116 NOTICE TO LEGISLATURE.
6.1When an agency mails notice of intent to adopt rules under section 14.14 or 14.22,
6.2the agency must send a copy of the same notice and a copy of the statement of need and
6.3reasonableness to the chairs and ranking minority party members of the legislative policy
6.4and budget committees with jurisdiction over the subject matter of the proposed rules and
6.5to the Legislative Coordinating Commission.
6.6In addition, if the mailing of the notice is within two years of the effective date
6.7of the law granting the agency authority to adopt the proposed rules, the agency shall
6.8make reasonable efforts to send a copy of the notice and the statement to all sitting
6.9legislators who were chief house of representatives and senate authors of the bill granting
6.10the rulemaking authority. If the bill was amended to include this rulemaking authority,
6.11the agency shall make reasonable efforts to send the notice and the statement to the chief
6.12house of representatives and senate authors of the amendment granting rulemaking
6.13authority, rather than to the chief authors of the bill.

6.14    Sec. 7. Minnesota Statutes 2010, section 14.131, is amended to read:
6.1514.131 STATEMENT OF NEED AND REASONABLENESS.
6.16By the date of the section 14.14, subdivision 1a, notice, the agency must
6.17prepare, review, and make available for public review a statement of the need for and
6.18reasonableness of the rule. The statement of need and reasonableness must be prepared
6.19under rules adopted by the chief administrative law judge and must include the following
6.20to the extent the agency, through reasonable effort, can ascertain this information:
6.21(1) a description of the classes of persons who probably will be affected by the
6.22proposed rule, including classes that will bear the costs of the proposed rule and classes
6.23that will benefit from the proposed rule;
6.24(2) the probable costs to the agency and to any other agency of the implementation
6.25and enforcement of the proposed rule and any anticipated effect on state revenues;
6.26(3) a determination of whether there are less costly methods or less intrusive
6.27methods for achieving the purpose of the proposed rule;
6.28(4) a description of any alternative methods for achieving the purpose of the
6.29proposed rule that were seriously considered by the agency and the reasons why they
6.30were rejected in favor of the proposed rule;
6.31(5) the probable costs of complying with the proposed rule, including the portion
6.32of the total costs that will be borne by identifiable categories of affected parties, such as
6.33separate classes of governmental units, businesses, or individuals;
7.1(6) the probable costs or consequences of not adopting the proposed rule, including
7.2those costs or consequences borne by identifiable categories of affected parties, such as
7.3separate classes of government units, businesses, or individuals; and
7.4(7) an assessment of any differences between the proposed rule and existing federal
7.5regulations and a specific analysis of the need for and reasonableness of each difference.;
7.6and
7.7(8) an assessment of the cumulative effect of the rule with other federal and state
7.8regulations and local ordinances or regulations, related to the specific purpose of the rule.
7.9The statement must describe how the agency, in developing the rules, considered
7.10and implemented the legislative policy supporting performance-based regulatory systems
7.11set forth in section 14.002.
7.12The statement must describe, with reasonable particularity, the scientific, technical,
7.13and economic information that supports the proposed rule.
7.14The statement must also describe the agency's efforts to provide additional
7.15notification under section 14.14, subdivision 1a, to persons or classes of persons who may
7.16be affected by the proposed rule or must explain why these efforts were not made.
7.17The agency must consult with the commissioner of management and budget to
7.18help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
7.19government. The agency must send a copy of the statement of need and reasonableness
7.20to the Legislative Reference Library when the notice of hearing is mailed under section
7.2114.14, subdivision 1a .

7.22    Sec. 8. Minnesota Statutes 2010, section 14.388, subdivision 2, is amended to read:
7.23    Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this
7.24section must give notice to the chairs and ranking minority members of the legislative
7.25policy and budget committees with jurisdiction over the subject matter of the proposed
7.26rules and to the Legislative Coordinating Commission, must give electronic notice of its
7.27intent in accordance with section 16E.07, subdivision 3, and must give notice by United
7.28States mail or electronic mail to persons who have registered their names with the agency
7.29under section 14.14, subdivision 1a. The notice must be given no later than the date the
7.30agency submits the proposed rule to the Office of Administrative Hearings for review
7.31of its legality and must include:
7.32(1) the proposed rule, amendment, or repeal;
7.33(2) an explanation of why the rule meets the requirements of the good cause
7.34exemption under subdivision 1; and
8.1(3) a statement that interested parties have five business days after the date of the
8.2notice to submit comments to the Office of Administrative Hearings.

8.3    Sec. 9. Minnesota Statutes 2010, section 14.389, subdivision 2, is amended to read:
8.4    Subd. 2. Notice and comment. The agency must publish notice of the proposed
8.5rule in the State Register and, must mail the notice by United States mail or electronic
8.6mail to persons who have registered with the agency to receive mailed notices, and must
8.7give notice to the chairs and ranking minority members of the legislative policy and
8.8budget committees with jurisdiction over the subject matter of the proposed rules and to
8.9the Legislative Coordinating Commission. The mailed notice and the notice to legislators
8.10must include either a copy of the proposed rule or a description of the nature and effect
8.11of the proposed rule and a statement that a free copy is available from the agency upon
8.12request. The notice in the State Register must include the proposed rule or the amended
8.13rule in the form required by the revisor under section 14.07, an easily readable and
8.14understandable summary of the overall nature and effect of the proposed rule, and a
8.15citation to the most specific statutory authority for the rule, including authority for the
8.16rule to be adopted under the process in this section. The agency must allow 30 days after
8.17publication in the State Register for comment on the rule.

8.18    Sec. 10. REVIEW OF CERTAIN RULES; REPORT.
8.19By January 15, 2013, the Pollution Control Agency, Department of Natural
8.20Resources, Board of Water and Soil Resources, Environmental Quality Board, and
8.21Department of Agriculture must each submit to the governor, the Legislative Coordinating
8.22Commission, and the policy and funding committees and divisions with jurisdiction over
8.23the agency, a list of all rules promulgated by the agency. The submission must include
8.24for each rule:
8.25(1) the statutory authority;
8.26(2) the statement of need and reasonableness of the rule;
8.27(3) whether there has been any change in circumstance regarding the rule to be
8.28amended or repealed;
8.29(4) an assessment of the cumulative effect of the rule with all other federal and
8.30state regulations and local ordinances or regulations related to the specific purpose of
8.31the rule being proposed;
8.32(5) an assessment of any differences between the proposed rule and existing federal
8.33regulations and a specific analysis of the need and reasonableness of each difference; and
9.1(6) a summary of the means to better coordinate rulemaking between state agencies
9.2and other local, state, and federal agencies and a strategy and schedule to repeal or
9.3amend agency rules so as to achieve intended outcomes of the rules more effectively
9.4and efficiently.
9.5A report submitted under this subdivision must be signed by the person in the agency
9.6who is responsible for identifying and initiating rules and the commissioner of the agency."
9.7Amend the title accordingly