House Bill No. 368
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act replacing the administrative code committee with nine administrative rules oversight committees, each with jurisdiction over the rules of certain agencies and offices; providing for the organization, authority, and meetings of the committees; and amending sections 2-4-102, 2-4-110, 2-4-302, 2-4-306, 2-4-307, 2-4-308, 2-4-311, 2-4-312, 2-4-313, 2-4-314, 2-4-401, 2-4-402, 2-4-403, 2-4-404, 2-4-405, 2-4-406, 2-4-410, 2-4-411, 2-4-412, 5-2-504, 5-14-101, 5-14-102, 5-14-103, and 5-14-104, MCA."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 2-4-102, MCA, is amended to read:
"2-4-102. Definitions. For purposes of this chapter, the following definitions apply:
code rules oversight committee" or "committee" means the a committee provided for in Title 5,
(2) (a) "Agency" means an agency, as defined in 2-3-102, of the state government, except that the provisions of this chapter do not apply to the following:
(i) the state board of pardons and parole, except that the board is subject to the requirements of 2-4-103, 2-4-201, 2-4-202,
and 2-4-306 and its rules must be published in the
Administrative Rules of Montana ARM and the Montana Administrative
(ii) the supervision and administration of a penal institution with regard to the institutional supervision, custody, control, care, or treatment of youths or prisoners;
(iii) the board of regents and the Montana university system;
(iv) the financing, construction, and maintenance of public works.
(b) Agency does not include a school district, a unit of local government, or any other political subdivision of the state.
(3) "ARM" means the Administrative Rules of Montana.
(4) "Contested case" means a proceeding before an agency in which a determination of legal rights, duties, or privileges of a party is required by law to be made after an opportunity for hearing. The term includes but is not restricted to ratemaking, price fixing, and licensing.
(5) "License" includes the whole or part of any agency permit, certificate, approval, registration, charter, or other form of permission required by law but does not include a license required solely for revenue purposes.
(6) "Licensing" includes any agency process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal, limitation, transfer, or amendment of a license.
(7) "Party" means a person named or admitted as a party or properly seeking and entitled as of right to be admitted as a party, but nothing in this chapter may be construed to prevent an agency from admitting any person as a party for limited purposes.
(8) "Person" means an individual, partnership, corporation, association, governmental subdivision, agency, or public organization of any character.
(9) "Register" means the Montana Administrative Register.
(10) "Rule" means each agency regulation, standard, or statement of general applicability that implements, interprets, or prescribes law or policy or describes the organization, procedures, or practice requirements of an agency. The term includes the amendment or repeal of a prior rule but does not include:
(a) statements concerning only the internal management of an agency and not affecting private rights or procedures available to the public;
(b) formal opinions of the attorney general and declaratory rulings issued pursuant to 2-4-501;
(c) rules relating to the use of public works, facilities, streets, and highways when the substance of the rules is indicated to the public by means of signs or signals;
(d) seasonal rules adopted annually or biennially relating to hunting, fishing, and trapping when there is a statutory requirement for the publication of the rules and rules adopted annually or biennially relating to the seasonal recreational use of lands and waters owned or controlled by the state when the substance of the rules is indicated to the public by means of signs or signals;
(e) rules implementing the state personnel classification plan, the state wage and salary plan, or the statewide budgeting and accounting system;
(f) uniform rules adopted pursuant to an interstate compact, except that the rules must be filed in accordance with 2-4-306
and must be published in the
Administrative Rules of Montana ARM.
(11) "Substantive rules" are either:
(a) legislative rules, which if adopted in accordance with this chapter and under expressly delegated authority to promulgate rules to implement a statute have the force of law and when not so adopted are invalid; or
(b) adjective or interpretive rules, which may be adopted in accordance with this chapter and under express or implied authority to codify an interpretation of a statute. The interpretation lacks the force of law."
Section 2. Section 2-4-110, MCA, is amended to read:
"2-4-110. Departmental review of rule notices. (1) The head of each department of the executive branch shall appoint
an existing attorney, paralegal, or other qualified person from that department to review each departmental rule proposal
notice, adoption notice, or other notice relating to administrative rulemaking. Notice of the name of the person appointed
under this subsection and of any successor must be given to the secretary of state and the administrative
oversight committee that has jurisdiction over the department's rules under 5-14-101 within 10 days of the appointment.
(2) The person appointed under subsection (1) shall review each notice by any division, bureau, or other unit of the department, including units attached to the department for administrative purposes only under 2-15-121, for compliance with this chapter before the notice is filed with the secretary of state. The reviewer shall pay particular attention to 2-4-302 and 2-4-305. The review must include but is not limited to consideration of:
(a) the adequacy of the rationale for the intended action and whether the intended action is reasonably necessary to effectuate the purpose of the code section or sections implemented;
(b) whether the proper statutory authority for the rule is cited;
(c) whether the citation of the code section or sections implemented is correct; and
(d) whether the intended action is contrary to the code section or sections implemented or to other law.
(3) The person appointed under subsection (1) shall sign each notice for which this section requires a review. The act of signing is an affirmation that the review required by this section has been performed to the best of the reviewer's ability. The secretary of state may not accept for filing a notice that does not have the signature required by this section."
Section 3. Section 2-4-302, MCA, is amended to read:
"2-4-302. Notice, hearing, and submission of views. (1) Prior to the adoption, amendment, or repeal of any rule, the
agency shall give written notice of its intended action. The notice
shall must include a statement of either the terms or
substance of the intended action or a description of the subjects and issues involved, the rationale for the intended action,
and the time when, place where, and manner in which interested persons may present their views thereon on the intended
(2) (a) The notice
shall must be filed with the secretary of state for publication in the register, as provided in 2-4-312, and
mailed within 3 days of publication to persons who have made timely requests to the agency for notice of its rulemaking
proceedings and to the office of any professional, trade, or industrial society or organization or member thereof which of
the entity that has filed a request with the an administrative code rules oversight committee when such the request has been
forwarded to the agency as provided in subsection (2)(b).
The Each administrative code rules oversight committee shall forward a list of all organizations or persons who have
submitted a request to be informed of agency actions to all agencies whose rules the committee has jurisdiction over under
5-14-101 publishing and that publish rulemaking notices in the Montana Administrative Register register. The list must be
amended by the agency upon request of any person requesting to be added to or deleted from the list.
(c) The notice
shall must be published and mailed at least 30 days in advance of the agency's intended action.
(3) If any statute provides for a different method of publication, the affected agency shall comply with the statute in
addition to the requirements contained
herein in this section. However, in no case may the notice period may not be less
than 30 days or more than 6 months.
(4) Prior to the adoption, amendment, or repeal of any rule, the agency shall afford interested persons at least 20 days'
notice of a hearing and 28 days from the day of notice to submit data, views, or arguments, orally or in writing. In the case
of substantive rules, the notice of proposed rulemaking must state that opportunity for oral hearing
shall must be granted if
requested by either 10% or 25, whichever is less, of the persons who will be directly affected by the proposed rule, by a
governmental subdivision or agency, by the administrative code rules oversight committee that has jurisdiction over the
agency's rules under 5-14-101, or by an association having not less than 25 members who will be directly affected.
(5) An agency may continue a hearing date for cause. In the discretion of the agency, contested case procedures need not
be followed in hearings held pursuant to this section. If a hearing is otherwise required by statute, nothing
herein in this
section alters that requirement.
(6) If an agency fails to publish a notice of adoption within the time required by 2-4-305(7) and the agency again proposes the same rule for adoption, amendment, or repeal, the proposal must be considered a new proposal for purposes of compliance with this chapter.
(7) At the commencement of
any a hearing on the intended action, the person designated by the agency to preside at the
hearing shall read aloud the "Notice of Function of Administrative Code Committee Rules Oversight Committees"
appearing in the register."
Section 4. Section 2-4-306, MCA, is amended to read:
"2-4-306. Filing, format, and effective date -- dissemination of emergency rules. (1) Each agency shall file with the secretary of state a copy of each rule adopted by it.
(2) The secretary of state may prescribe a format, style, and arrangement for notices and rules
which that are filed pursuant
to this chapter and may refuse to accept the filing of any notice or rule that is not in compliance therewith. He The secretary
of state shall keep and maintain a permanent register of all notices and rules filed, including superseded and repealed rules,
which shall that must be open to public inspection and shall provide copies of any notice or rule upon request of any
person. Unless otherwise provided by statute, the secretary of state may require the payment of the cost of providing such
In the event that the If an administrative code rules oversight committee has conducted a poll of the legislature in
accordance with 2-4-403 or the revenue oversight committee has conducted a poll in accordance with 5-18-109, the results
of the poll shall must be published with the rule.
(4) Each rule
shall become becomes effective after publication in the register as provided in 2-4-312, except that:
(a) if a later date is required by statute or specified in the rule, the later date
shall be is the effective date;
(b) subject to applicable constitutional or statutory provisions:
(i) a temporary rule is effective immediately upon filing with the secretary of state or at a stated date following publication in the register; and
(ii) an emergency rule
shall become becomes effective immediately upon filing with the secretary of state or at a stated date
following publication in the register if the agency finds that this effective date is necessary because of imminent peril to the
public health, safety, or welfare. The agency's finding and a brief statement of reasons therefor shall for the finding must be
filed with the rule. The agency shall take appropriate measures to make emergency rules known to every person who may
be affected by them the rules."
Section 5. Section 2-4-307, MCA, is amended to read:
"2-4-307. Omissions from ARM or register. (1) An agency may adopt by reference any model code, federal agency rule, rule of any agency of this state, or other similar publication if the publication of the model code, rule, or other publication would be unduly cumbersome, expensive, or otherwise inexpedient.
(2) The model code, rule, or other publication must be adopted by reference in a rule adopted under the rulemaking procedure required by this chapter. The rule must contain a citation to the material adopted by reference and a statement of the general subject matter of the omitted rule and must state where a copy of the omitted material may be obtained. Upon request of the secretary of state, a copy of the omitted material must be filed with the secretary of state.
No A rule originally adopting by reference any model code or a rule provided for in subsection (1) of this section may
not adopt any later amendments or editions of the material adopted. Except as provided in subsection (5), each later
amendment or edition may be adopted by reference only by following the rulemaking procedure required by this chapter.
(4) If requested by a three-fourths vote of the administrative
code rules oversight committee that has jurisdiction over the
agency's rules under 5-14-101, an agency must shall immediately publish the full or partial text of any pertinent material
adopted by reference under this section. The committee may not require the publication of copyrighted material.
Publication of the text of a rule previously adopted does not affect the date of adoption of the rule, but publication of the
text of a rule before publication of the notice of final adoption must be in the form of and is considered to be a new notice
of proposed rulemaking.
(5) Whenever later amendments of federal regulations must be adopted to comply with federal law or to qualify for federal
funding, only a notice of incorporation by reference of
such the later amendments shall must be filed in the Montana
Administrative Register register. This notice shall must contain the information required by subsection (2) of this section
and shall must state the effective date of such the incorporation. The effective date may be no sooner than 30 days after the
date upon which the notice is published unless the 30 days causes cause a delay that jeopardizes compliance with federal
law or qualification for federal funding, in which event the effective date may be no sooner than the date of publication. A
hearing is not required unless requested under 2-4-315 by either 10% or 25, whichever is less, of the persons who will be
directly affected by the incorporation, by a governmental subdivision or agency, or by an association having not less than
25 members who will be directly affected. No further Further notice of adoption or preparation of a replacement page for
the Administrative Rules of Montana ARM is not required.
(6) If a hearing is requested under subsection (5), the petition for hearing
shall must contain a request for an amendment
and may contain suggested language, reasons for an amendment, and any other information pertinent to the subject of the
Section 6. Section 2-4-308, MCA, is amended to read:
"2-4-308. Adjective or interpretive rule -- statement of implied authority and legal effect. (1) Each adjective or
interpretive rule or portion of
such a the rule to be adopted after October 1, 1983, under implied rulemaking authority shall
must contain a statement in the historical notations of the rule that the rule is advisory only but may be a correct
interpretation of the law. Such The statement must be placed in the ARM when the rule in question is next scheduled for
(2) The administrative
code rules oversight committee that has jurisdiction over the rule under 5-14-101 may file with the
secretary of state, for publication with any rule or portion thereof of a rule that it considers to be adjective or interpretive, a
statement indicating that it is the opinion of the administrative code committee that the rule or portion thereof of the rule is
adjective or interpretive and therefore advisory only. If the committee requests the statement to be published for an adopted
rule not scheduled for reprinting in the ARM, the cost of publishing the statement in the ARM shall must be borne by the
Section 7. Section 2-4-311, MCA, is amended to read:
"2-4-311. Publication and arrangement of ARM. (1) The secretary of state shall compile, index, arrange, rearrange,
correct errors or inconsistencies without changing the meaning, intent, or effect of any rule, and publish all rules filed
pursuant to this chapter in the ARM. The secretary of state shall supplement, revise, and publish the ARM or any part
thereof of the ARM as often as he the secretary of state considers necessary . He and may include such editorial notes,
cross-references, and other matter as he and the administrative code committee consider that the secretary of state considers
desirable or advantageous. He The secretary of state shall publish supplements to the ARM at such times and in such the
form as he that the secretary of state considers appropriate.
(2) The ARM
shall must be arranged, indexed, and printed or duplicated in such a manner as to permit that permits
separate publication of portions thereof of the ARM relating to individual agencies. An agency may make arrangements
with the secretary of state for the printing of as many copies of such the separate publications as it may require. The cost of
any such separate publications, determined in accordance with 2-4-313(4), shall must be paid by the agency."
Section 8. Section 2-4-312, MCA, is amended to read:
"2-4-312. Publication and arrangement of register. (1) The secretary of state shall publish in the register all notices,
rules, and interpretations filed with
him the secretary of state at least once a month or as directed by the administrative code
committee but not more often than twice a month.
He The secretary of state shall send the register without charge to each person listed in 2-4-313(1) and to each member
of the legislature requesting the same register. He The secretary of state shall send the register to any other person who pays
a subscription fee which he shall fix determined in accordance with 2-4-313(4).
(3) The register must contain three sections, a rules section, a notice section, and an interpretation section:
(a) The rules section of the register must contain all rules filed since the compilation and publication of the preceding issue of the register, together with the concise statement of reasons required under 2-4-305(1).
(b) The notice section of the register must contain all rulemaking notices filed with the secretary of state pursuant to 2-4-302 since the compilation and publication of the preceding register.
(c) The interpretation section of the register must contain all opinions of the attorney general and all declaratory rulings of agencies issued since the publication of the preceding register.
(4) Each issue of the register must contain the issue number and date of the register and a table of contents. Each page of the register must contain the issue number and date of the register of which it is a part. The secretary of state may include with the register information to help the user in relating the register to the ARM."
Section 9. Section 2-4-313, MCA, is amended to read:
"2-4-313. Distribution, costs, and maintenance. (1) The secretary of state shall distribute copies of the ARM and supplements or revisions to the ARM to the following:
(a) attorney general, one copy;
(b) clerk of United States district court for the district of Montana, one copy;
(c) clerk of United States court of appeals for the ninth circuit, one copy;
(d) county commissioners or governing body of each county of this state, for use of county officials and the public, at least one but not more than two copies, which may be maintained in a public library in the county seat or in the county offices as the county commissioners or governing body of the county may determine;
(e) state law library, one copy;
(f) state historical society, one copy;
(g) each unit of the Montana university system, one copy;
(h) law library of the university of Montana-Missoula, one copy;
council services division, two copies;
(j) library of congress, one copy;
(k) state library, one copy.
(2) The secretary of state, each county in the state, and the librarians for the state law library and the university of Montana-Missoula law library shall maintain a complete, current set of the ARM, including supplements or revisions to the ARM. The designated persons shall also maintain the register issues published during the preceding 2 years. The secretary of state shall maintain a permanent set of the registers.
(3) The secretary of state shall make copies of and subscriptions to the ARM and supplements or revisions to the ARM and the register available to any person at prices fixed in accordance with subsection (4).
(4) The secretary of state
, in consultation with the administrative code committee, shall determine the cost of supplying
copies of the ARM and supplements or revisions to the ARM and the register to persons not listed in subsection (1). The
cost must be the approximate cost of publication of the copies, including indexing, printing or duplicating, and mailing.
However, a uniform price per for each page or group of pages may be established without regard to differences in cost of
printing different parts of the ARM and supplements or revisions to the ARM and the register. Fees are not refundable.
(5) The secretary of state shall deposit all fees in a proprietary fund.
(6) The secretary of state may charge agencies a filing fee for all material to be published in the ARM or the register. The
secretary of state shall fix
, in consultation with the administrative code committee, the fee to cover the costs of supplying
copies of the ARM and supplements or revisions to the ARM and the register to the persons listed in subsection (1). The
cost must be the approximate cost of publication of the copies, including indexing, printing or duplicating, and mailing.
However, a uniform price per for each page or group of pages may be established without regard to differences in cost of
printing different parts of the ARM and supplements or revisions to the ARM and the register."
Section 10. Section 2-4-314, MCA, is amended to read:
"2-4-314. Biennial review by agencies -- recommendations by committee. (1) Each agency shall at least biennially review its rules to determine if any new rule should be adopted or any existing rule should be modified or repealed.
The An administrative rules oversight committee may recommend to the legislature those modifications, additions, or
deletions of agency rulemaking authority which that the committee considers necessary."
Section 11. Section 2-4-401, MCA, is amended to read:
code committee rules oversight committees -- staff, meetings, and compensation. (1) The
legislative services division shall provide staff assistance to the administrative code committee rules oversight committees.
The committee committees may advise the publisher in relation to the text and legal authority of the material published in
the register or the ARM, within the limitations of legislative appropriations.
The Each committee shall meet approximately every 4 months during the interim between regular legislative sessions
and as often as may be necessary during and between legislative sessions.
(3) Committee members are entitled to receive compensation and expenses as provided in 5-2-302."
Section 12. Section 2-4-402, MCA, is amended to read:
"2-4-402. Powers of
the committee committees -- duty to review rules -- exception for revenue rules. (1) Except for
rules proposed by the department of revenue, the Each administrative code rules oversight committee shall review all
proposed rules filed with the secretary of state and over which the committee has jurisdiction under 5-14-101.
(2) The revenue oversight committee shall review all rules proposed by the department of revenue.
The An administrative code rules oversight committee may, with respect to agencies and rules that the committee has
jurisdiction over under 5-14-101:
(a) request and obtain an agency's rulemaking records for the purpose of reviewing compliance with 2-4-305;
(b) prepare written recommendations for the adoption, amendment, or rejection of a rule and submit those
recommendations to the
department agency proposing the rule and submit oral or written testimony at a rulemaking
(c) require that a rulemaking hearing be held in accordance with the provisions of 2-4-302 through 2-4-305;
(d) institute, intervene in, or otherwise participate in proceedings involving this chapter in the state and federal courts and administrative agencies;
(e) review the incidence and conduct of administrative proceedings under this chapter."
Section 13. Section 2-4-403, MCA, is amended to read:
"2-4-403. Legislative intent -- poll. (1) If the legislature is not in session,
the an administrative rules oversight committee
may poll all members of the legislature by mail to determine whether a proposed rule over which the committee has
jurisdiction under 5-14-101 is consistent with the intent of the legislature.
Should If 20 or more legislators object to any rule, the committee shall poll the members of the legislature.
(3) The poll
shall must include an opportunity for the agency to present a written justification for the rule to the members
of the legislature."
Section 14. Section 2-4-404, MCA, is amended to read:
"2-4-404. Evidentiary value of legislative poll.
In the event that the If an administrative code rules oversight committee
has conducted a poll of the legislature in accordance with 2-4-403, the results of the poll shall be are admissible in any
court proceeding involving the validity of the rule. In the event that If the poll determines that a majority of the members of
both houses find that the proposed rule is contrary to the intent of the legislature, the rule shall be is conclusively presumed
to be contrary to the legislative intent in any court proceeding involving its validity."
Section 15. Section 2-4-405, MCA, is amended to read:
"2-4-405. Economic impact statement. (1) Upon written request of the administrative
code rules oversight committee
that has jurisdiction over the rule under 5-14-101, based upon the affirmative request of at least five members of the
committee at an open meeting, an agency shall prepare a statement of the economic impact of the adoption, amendment, or
repeal of a rule as proposed. As an alternative, the administrative code committee may, by contract, prepare such an the
estimate. Except to the extent that the request expressly waives any one or more of the following, the requested statement
must include and the statement prepared by the committee may include:
(a) a description of the classes of persons who will be affected by the proposed rule, including classes that will bear the costs of the proposed rule and classes that will benefit from the proposed rule;
(b) a description of the probable economic impact of the proposed rule upon affected classes of persons and quantifying, to the extent practicable, that impact;
(c) the probable costs to the agency and to any other agency of the implementation and enforcement of the proposed rule
and any anticipated effect on state
(d) an analysis comparing the costs and benefits of the proposed rule to the costs and benefits of inaction;
(e) an analysis that determines whether there are less costly or less intrusive methods for achieving the purpose of the proposed rule;
(f) an analysis of any alternative methods for achieving the purpose of the proposed rule that were seriously considered by the agency and the reasons why they were rejected in favor of the proposed rule;
(g) a determination as to whether the proposed rule represents an efficient allocation of public and private resources; and
(h) a quantification or description of the data upon which subsections (1)(a) through (1)(g) are based and an explanation of how the data was gathered.
(2) A request to an agency for
a an economic impact statement or a decision to contract for the preparation of a statement
must be made by the committee prior to the final agency action on the rule. The statement must be filed with the
administrative code committee within 3 months of the committee's request or decision. The committee may withdraw its
request or decision for an economic impact a statement at any time.
(3) Upon receipt of an economic impact statement, the committee shall determine the sufficiency of the statement. If the committee determines that the statement is insufficient, the committee may return it to the agency or other person who prepared the statement and request that corrections or amendments be made. If the committee determines that the statement is sufficient, a notice indicating where a copy of the statement may be obtained must be filed with the secretary of state for publication in the register by the agency preparing the statement or by the committee, if the statement is prepared under contract by the committee, and must be mailed to persons who have registered advance notice of the agency's rulemaking proceedings.
(4) This section does not apply to rulemaking pursuant to 2-4-303.
(5) The final adoption, amendment, or repeal of a rule is not subject to challenge in any court as a result of the inaccuracy
or inadequacy of
a an economic impact statement required under this section.
(6) An environmental impact statement prepared pursuant to 75-1-201 that includes an analysis of the factors listed in this section satisfies the provisions of this section."
Section 16. Section 2-4-406, MCA, is amended to read:
"2-4-406. Committee objection to violation of authority for rule -- effect. (1) If
the an administrative code rules
oversight committee objects to all or some portion of a proposed or adopted rule because the committee considers it not to
have been proposed or adopted in substantial compliance with 2-4-302, 2-4-303, and 2-4-305, the committee shall send a
written objection to the agency which that promulgated the rule. The objection must contain a concise statement of the
committee's reasons for its action.
(2) Within 14 days after the mailing of a committee objection to a rule, the agency promulgating the rule shall respond in writing to the committee. After receipt of the response, the committee may withdraw or modify its objection.
(3) If the committee fails to withdraw or substantially modify its objection to a rule, it may vote to send the objection to the
secretary of state, who shall, upon receipt
thereof of the objection, publish the objection in the Montana Administrative
Register register adjacent to any notice of adoption of the rule and in the ARM adjacent to the rule , provided. However, an
agency response must also be published if requested by the agency. Costs of publication of the objection and the agency
response shall must be borne by the committee.
(4) If an objection to all or a portion of a rule has been published pursuant to subsection (3), the agency bears the burden, in any action challenging the legality of the rule or portion of a rule objected to by the committee, of proving that the rule or portion of the rule objected to was adopted in substantial compliance with 2-4-302, 2-4-303, and 2-4-305. If a rule is invalidated by court judgment because the agency failed to meet its burden of proof imposed by this subsection and the court finds that the rule was adopted in arbitrary and capricious disregard for the purposes of the authorizing statute, the court may award costs and reasonable attorney fees against the agency."
Section 17. Section 2-4-410, MCA, is amended to read:
"2-4-410. Report of litigation. Each agency shall report to the administrative
code rules oversight committee that has
jurisdiction over the agency's rules any judicial proceedings in which the construction or interpretation of any provision of
this chapter is in issue and may report to the committee any proceeding in which the construction or interpretation of any
rule of the agency is in issue. Upon request of the committee, copies of documents filed in any proceeding in which the
construction or interpretation of either this chapter or an agency rule is in issue must be made available to the committee by
the agency involved."
Section 18. Section 2-4-411, MCA, is amended to read:
The With respect to rules that the committee has jurisdiction over under 5-14-101, an administrative
rules oversight committee may recommend amendments to the Montana Administrative Procedure Act or the repeal,
amendment, or adoption of a rule, as provided in 2-4-412, and make other recommendations and reports as that it considers
Section 19. Section 2-4-412, MCA, is amended to read:
"2-4-412. Legislative review of rules -- effect of failure to object. (1) The legislature may, by bill, repeal any rule in the ARM. If a rule is repealed, the legislature shall in the bill state its objections to the repealed rule. If an agency adopts a new rule to replace the repealed rule, the agency shall adopt the new rule in accordance with the objections stated by the legislature in the bill. If the legislature does not repeal a rule filed with it before the adjournment of that regular session, the rule remains valid.
(2) The legislature may also by joint resolution request or advise or by bill direct the adoption, amendment, or repeal of
any rule. If a change in any rule or the adoption of an additional rule is advised, requested, or directed to be made, the
legislature shall in the joint resolution or bill state the nature of the change or the additional rule to be made and its reasons
therefor for the change or the additional rule. The agency shall, in the manner provided in the Montana Administrative
Procedure Act, adopt a new rule in accordance with the legislative direction in a bill.
(3) Rules and changes in rules made by agencies under subsection (2)
of this section shall must conform and must be
pursuant to statutory authority.
(4) Failure of the legislature or the appropriate administrative
code rules oversight committee to object in any manner to
the adoption, amendment, or repeal of a rule is inadmissible in the courts of this state to prove the validity of any rule."
Section 20. Section 5-2-504, MCA, is amended to read:
"5-2-504. Legislative branch consolidated. The following legislative branch entities are consolidated with the legislative council, as provided in 5-2-503 and this section:
(1) the senate and the house of representatives provided for in Article V, section 1, of the Montana constitution;
(2) the legislative council established by 5-11-101;
(3) the legislative services division established by 5-11-111;
(4) the legislative finance committee established by 5-12-201;
(5) the legislative fiscal division established by 5-12-301;
(6) the legislative audit committee established by 5-13-201;
(7) the legislative audit division established by 5-13-301;
(8) the administrative
code committee rules oversight committees established by Title 5, chapter 14, part 1;
(9) the environmental quality council established by 5-16-101;
(10) the revenue oversight committee established by 5-18-102; and
(11) the committee on Indian affairs established by 5-19-102."
Section 21. Section 5-14-101, MCA, is amended to read:
"5-14-101. Appointment and composition of administrative rules oversight committees.
The administrative code
committee consists of four members of the senate and four members of the house of representatives (1) There are
administrative rules oversight committees that have the primary responsibility for considering bills relating to the subjects
listed in subsections (1)(a) through (1)(i). Each committee is composed of nine members, six members from the
appropriate house standing committee or committees and three members from the appropriate senate standing committee or
committees. The committee for each of the subjects has oversight over the rules of the departments and offices, including
entities attached to the departments and offices for administrative or other purposes, listed after that subject as follows:
(a) agriculture and livestock: department of agriculture and department of livestock;
(b) business, labor, and industry: secretary of state, state auditor, department of labor and industry, department of commerce, office of securities commissioner, insurance department, commissioner of insurance, and department of public service regulation;
(c) education and cultural resources: superintendent of public instruction, board of public education, and entities contained in Title 2, chapter 15, part 15;
(d) fish and game: department of fish, wildlife, and parks;
(e) highways and transportation: department of transportation;
(f) human services and public health, safety, and welfare: department of public health and human services;
(g) judiciary and criminal and civil justice: department of justice, and department of corrections;
(h) natural resources: department of natural resources and conservation and department of environmental quality; and
(i) state administration: governor, lieutenant governor, department of administration, and department of military affairs.
(2) There must be two senators from the majority party, one senator from the minority party, and three representatives
from the majority and minority parties on each of the committees created in subsection (1). The members must be
appointed before the 60th legislative day of the regular session in the same manner as standing committees of the respective
houses are appointed.
No more than two of the appointees of each house may be members of the same political party.
(3) In addition to its powers under Title 2, chapter 4, each committee has general oversight over existing rules and the application of existing rules."
Section 22. Section 5-14-102, MCA, is amended to read:
"5-14-102. Term of office. A member of
the an administrative rules oversight committee shall serve until his the
member's term of office as a legislator ends or until the end of the 60th legislative day of the session of the biennium
following his the member's appointment or until his the member's successor is appointed, whichever occurs first."
Section 23. Section 5-14-103, MCA, is amended to read:
"5-14-103. Vacancies. A vacancy on
the an administrative rules oversight committee occurring when the legislature is not
in session shall must be filled by the selection of a member of the legislature by the remaining members of the committee.
If there is a vacancy on the committee at the beginning of a legislative session because a member's term of office as a
legislator has ended, a member of the same political party must be appointed in the same manner as the original
appointment, no later than the 10th legislative day, to serve until a successor is appointed under 5-14-101."
Section 24. Section 5-14-104, MCA, is amended to read:
The Each administrative rules oversight committee shall elect one of its members as chairman
presiding officer and such may elect other officers as it considers necessary."