Section 1 [Legislative Approval Required.] requires a state agency proposing a rule to determine if the annual cost of complying with the proposed rule in any year after the rule takes effect will exceed $10,000 for any person or entity. The agency will be required to make this determination before the close of the hearing on the rule. The Administrative Law Judge conducting the rulemaking hearing must review and approve or disapprove the agency determination. If the agency determines the cost of compliance will exceed $10,000, or the Administrative Law Judge disapproves the agency's determination that it will not, the proposed rules will not take effect until they are approved by a law enacted after the agency has made the determination.
Subdivision 4 [Exceptions.] Legislative approval is not required under this section if:
(1) the Administrative Law Judge determines that the Legislature has appropriated sufficient funding to cover the expected cost of the rule for the people or entities affected by the rule;
(2) the Administrative Law Judge approves an agency determination that the rule has been proposed to comply with a federal mandate; or
(3) the rule is adopted under expedited rulemaking procedures or another law that specifies rulemaking requirements do not apply.
Section 2 [Deadlines.] provides a conforming cross-reference within existing law to allow time for legislative approval as required under section 1 of this bill.
Section 3 [Repealer.] repeals an existing section of law that requires legislative approval for rules that exceed a $25,000 threshold impact on businesses or municipalities of a certain size. These entities would be covered within the new section 1 of this bill.