This bill mandates that state agencies conduct a cost-benefit analysis for any proposed administrative rules, ensuring that the projected benefits of a rule exceed its costs. It introduces new definitions for terms such as "benefit," "cost," "best practices," and "stakeholder," which will guide the analysis process. Agencies are required to publish preliminary and final cost-benefit analyses when proposing and adopting rules, respectively, and must consult with the commissioner of management and budget to assess the impact on local governments. The bill also stipulates that agencies must use standardized methods for these analyses and make all related documentation publicly accessible.

Additionally, the bill prohibits the adoption of certain rules unless they meet the established criteria, and it requires agencies to notify legislative committees about the adoption of exempt rules. It amends various sections of Minnesota Statutes to incorporate these requirements, including the need for a statement of need and reasonableness that includes the cost-benefit analysis. The bill also allows for judicial review of rules based on the adequacy of their cost-benefit analyses, ensuring that rules adopted are not only legally compliant but also economically justified. The act will take effect the day after final enactment and applies to rules adopted or amended thereafter.

Statutes affected:
Introduction: 14.002, 14.02, 14.131, 14.14, 14.15, 14.386, 14.388, 14.389, 14.44, 14.45