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Bill > SF1438


MN SF1438

Proposed Administrative rules cost-benefit analysis requirement provision, certain rules adoption prohibition provision, and requiring notice to the legislature upon the adoption of certain rules


summary

Introduced
02/17/2025
In Committee
02/17/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to state government; requiring cost-benefit analysis for proposed administrative rules; prohibiting the adoption of certain rules; requiring notice to the legislature upon adoption of certain exempt rules; amending Minnesota Statutes 2024, sections 14.002; 14.02, by adding subdivisions; 14.131; 14.14, subdivision 2; 14.15, subdivisions 3, 4; 14.386; 14.388, subdivision 2; 14.389, subdivision 2; 14.44; 14.45; proposing coding for new law in Minnesota Statutes, chapter 14.

AI Summary

This bill establishes a comprehensive new framework for cost-benefit analysis in administrative rulemaking in Minnesota, requiring state agencies to demonstrate that the total projected benefits of a proposed rule will exceed its total projected costs. The legislation defines key terms like "benefit," "cost," and "stakeholder," and mandates that agencies prepare detailed cost-benefit analyses when proposing new rules, including publishing preliminary and final analyses in the State Register. Agencies must use standardized analytic methods, consult with the commissioner of management and budget, and transparently document all assumptions, methods, and data on a public website. The bill introduces provisions for agencies to justify their analyses, compare discount rates, and explain any significant uncertainties. If an agency's cost-benefit analysis is found to be significantly deficient—such as failing to consider relevant costs or benefits, or significantly misestimating them—the rule may be challenged in court or subject to legislative review. Certain types of rules, such as exempt rules, good cause rules, and expedited rules, are exempted from these requirements. The legislation also amends multiple existing statutes to incorporate these new cost-benefit analysis requirements, and requires agencies to notify legislative committee chairs when adopting certain rules, ultimately aiming to make government rulemaking more economically rigorous and transparent.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Referred to State and Local Government (on 02/17/2025)

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