. MafI :ffiieroff(#j22404) . James A. Yarosh (#241854)

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James A. Yarosh (#241854). MafI :ffiieroff(#j22404)).Dean B. Thomson (#0141045) ,.Krisfine KioenKe·C#03J6294J.SIEGEL BRILL, P .A.1300 Washington Square100 Washington Avenue SouthMinneapolis, MN 55401 .(612) 337-6102FABYANSKE, WESTRA, HART &THOMSON, P.A.333 South Seventh Street, Suite 2600Minneapolis, MN 55402(612) 359-7624ATTORNEYS FOR AMICUS CURIAEFRANKLIN P. KOTTSCHADE ANDNATIONAL ASSOCIATION OFHOME BUILDERSATTORNEYS FOR AMICUS CURIAEMINNESOTA ASSOCIATION OFREAL TORS Joseph G. Springer (#213251)Haley L. Waller Pitts (#0393470) .FREDRIKSON & BYRON, P.A.4000 U.S. Bank Plaza200 South Sixth StreetMinneapolis, MN 55402-1425(612) 492-7168Brendan D. Cummins (#276236)CUMMINS & CUMMINS, LLP1245 International Centre920 Second Avenue SouthMinneapolis, MN 55402(612) 465-0108ATTORNEYS FOR AMICUS CURIAEBUILDERS ASSOCIATION OFMINNESOTAATTORNEYS FOR AMICUS CURIAEMINNESOTA PIPE TRADESASSOCIATION

TABLE OF CONTENTSTABLE OF AUTHORITIES;LEGAL ISSUESiii1STATEMENT OF THE CASE::2STATEMENT OF FACTS21.ADMINISTRATIVE FRAMEWORK2A.The State Building Code2B.Rulemaking Under The Minnesota Administrative Procedure Act.4II.III.IV.DLI AMENDSTHE MINNESOTARESIDENTIAL CODE, MINN. R. CH. 1309, ByADOPTING THE 2012 INTERNATIONAL RESIDENTIALCODE7A.The Challenged Automatic Fire Sprinkler Standard7B.DLI Collects Input From Stakeholders, Including Representatives Of. Building And Fire Safety Groups8C.DLI Undertakes The 1309 RulemakingD.ALJ LipmanApproves The 1309 Rule11;14DLI AMENDS THE MINNESOTA RESIDENTIAL ENERGY CODE, MINN. R.CH.1322, By ADOPTING PROVISIONS OF THE 2012 INTERNATIONALENERGYCONSERVATION CODE22PETITIONER SOUGHT JUDICIAL REVIEW ON THE EVE OF THE RULESBECOMING EFFECTIVE25STANDARD OF REVIEW·.······25ARGUMENT271.28CHAPTER326B AUTHORIZESDLI To ADOPTTHE RULESAT ISSUEA.DLI Has Statutory Authority To Adopt By Reference The 2012 IRCWith Amendments129

B.II.PETITIONER HAS NOT AND CANNOT CARRY ITS HEAVY BURDEN ToOVERTURN THE 1309 RULE;332A.ALI Lipman Correctly Rejected Petitioner's Cost-Based Arguments . 33B.The 1309 Rule Is Rationally Related To The Legitimate PublicPurpose Of Fire Safety34DLI's 1309 Rulemaking Complied With The MAPA42·. C.III.DLI Has Statutory Authority To Adopt By Reference The 2012IECC With Amendments, . " . , ,., . ", ,., ,. , ", ,.,.,PETITIONER HAS NOT AND CANNOT CARRY ITS REA VY BURDEN ToOVERTURN THE 1322 RULE43A.Petitioner's Vague Arguments Are Unavailing43B.Petitioner Improperly Cites To And Relies On The 2015 IECC44C.DLI's 1322 Rulemaking Complied With The MAPA45CONCLUSION:4611

TABLE OF AUTHORITIESFEDERALCOURT CASESUnited Mine Workers of Am., Intern. Union v. Dole,870 F.2d 662 (D.C. Cir. 1989)44STATE COURT CASESBuilders Ass 'n of Minn. v. City of St. Paul,819 N.W.2d 172 (Minn. Ct. App. 2012)28,29,35City of Minnetonka v. Mark Z. Jones Assoc., Inc.,306 Minn. 217, 236 N.W.2d 163 (1975)28,34City of Morris v. Sax Investments, Inc.,749 N.W.2d 1 (Minn. 2008)28,33GH Holdings, LLC v. Minn. Dep 't of Commerce,840 N.W.2d 838 (Minn. ct. App. 2013)26In re Jacobs,.802 N.W.2d 748 (Minn. 2011)33In re.Request for Issuance ofSDS General Permit MNG300000,769 N.W.2d 312 (Minn. Ct. App. 2009)31Jacka v. Coca-Cola Bottling Co., .580 N.W.2d 27 (Minn. 1998)34Mammenga v. State Dep 't of Human Svcs.,442 N.W.2d 786 (Minn. 1989),Meriwether Minn. Land & Timber, LLC v. State,818 N.W.2d 557 (Minn. Ct. App. 2012)Mfg. Housing Inst. v. Pettersen,347 N.W.2d 238 (Minn. 1984)2633passimMinn. Chamber of Commerce v. MPCA,469 N.W.2d 100 (Minn. Ct. App. 1991)Nat'! Council on Teacher Quality v. Minn. State Colleges & Univs.,837 N.W.2d 314 (Minn. Ct. App. 2013)11125,26,27,4139

Peterson v. Minn. Dep 't of Labor & Indus.,591 N.W.2d76 (Minn, Ct. App . 1999) .,',. ,., ,., ,.,.,., ,.,.,,.,26Rocco Altobelli, Inc. v. State, Dep 't of Commerce,524 N.W.2d 30 (Minn. Ct. App. 1994)'26Save Mille Lacs Sportsjishing, Die. v, Minn. Dep 't of Natural Res.,859 N.W.2d 845 (Minn. ct. App. 2015)26,44Schoepke v. Alexander Smith & Sons Carpet Co.,290 Minn. 518,187 N.W.2d 133 (1971)44State ex reI. Foster v, Naftalin,246 Minn. 181,74 N.W.2d 249 (1956),31STATUTORY AUTHORITIES1971 Minn. Laws 10181971 Minn. Laws 101933·33Minn. Stat. ch. 14Minn. Stat. § 14.144, 24;5,6, 7, 38Minn. Stat. § 14.156,43Minn. Stat. § 14.164,6Minn. Stat. § 14.186Minn. Stat. § 14.226, 7Minn. Stat. § 14.235,6, 7, 42Minn. Stat. §14.257. Minn. Stat. § 14.264, 7, 23, 46Minn. Stat. § 14.386, 7Minn. Stat. § 14.442,25,27,28Minn. Stat. §14.452,25,26Minn. Stat. § 14.1014IV

Minn. Stat. § 14.12742Minn. Stat. § 14.131:5, 42, 46Minn. Stat. § 14.225,"Minn. Stat. § 299F.011729Minn. Stat. ch. 326B2Minn. Stat. § 326B.02passimMinn. Stat. § 326B.134,25Minn. Stat. § 326B.1 0 12, 32, 33, 34Minn. Stat. § 3 26B.1 06:passimMinn. Stat. § 326B.1214Minn. Stat.· § 645.1734STATE RULES AND REGULATIONSMinn. R. ch. 1300: 2Minn. R. 1300.00304Minn. R. 1300.00503Minn. R. 1300.00803Minn. R. ch. 13053Minn. R. 1305.0903:8Minn. R. ch . 13073Minn. R. ch. 13092,3Minn. R. 1309.03008Minn. R. 1309.0301Minn. R. 1309.0313·:88Minn. R. 1309.0703!v20

Minn. R. ch. 1311 ;3Minn. R. ch. 13222,3Minn. R. ch. 13463Minn. R. ch. 14004, 24Minn. R. 1400.2000 4Minn. R. 1400.20607Minn. R. 1400l2070:5, 42, 45Minn. R. 1400.20806, 7Minn. R. 1400.20906Minn. R. 1400.2210:5,6Minn. R. 1400.22205Minn. R. · 6Minn. R. 1400.22406Minn. R. 1400.23007Minn. R. 1400.2310·7,23Minn. R. ch. 75113Minn. R .7511.09038TREATISES21 William J. Keppel, Minnesota Practice, § 1.08 (2d ed. 2007))VI,44

LEGAL ISSUES1.Does Minn. Stat. ch. 326B authorize the Commissioner ()f the Depcrriment ofLabor and Industry to amend the Minnesota Residential Code and MinnesotaResidential Energy Code?Most Apposite Authorities:Minn. Stat. § 326B.02Minn. Stat. § 326B.106II.Did Petitioner meet its heavy burden of proof to invalidate the formallypromulgated rule that updates the Minnesota Residential Code and mandates theinstallation of automatic fire sprinkler systems in certain single-family homes?Most Apposite Authorities:Mfg. Housing Inst. v. Pettersen, 347 N.W.2d 238 (Minn. 1984)Minn. Stat. ch. 14Minn. R. ch. 1400III.Did Petitioner meet its heavy burden of proof to invalidate the formallypromulgated rule that updates the Minnesota Residential Energy Code?Most Apposite Authorities:Minn. Stat. ch. 14Minn. R. ch. 1400

STATEMENTOF THE CASEThe Builders Association of the Twin Cities ("Petitioner") challenges two separaterulemaking proceedings by the Minnesota Department of Labor and Industry ("DLI")involving the State Building Code. One challenged rule, Minn. R. ch. 1309 (2015)("1309 Rule")/ was promulgated following a public hearing on the merits. The otherchallenged rule, Minn. R. ch. 1322 (2015) ("1322 Rule"), was promulgated pursuant tonon-hearing rulemaking procedures because fewer than 25 persons requested a hearing.These rulemaking proceedings upheld the need for and reasonableness of the 1309 Ruleand the 1322 Rule. This matter involves a pre-enforcement declaratory judgment actionunder Minn. Stat. §§ 14.44-.45 (2014).STATEMENTI.OF FACTSADMINISTRATIVE FRAMEWORKA.The State Building CodeThe State Building Code ("Code") establishes rmmmum standards for theconstruction, reconstruction, alteration, repair, and use of buildings and other structureswithin Minnesota. See Minn; Stat. ch. 326B (2014); Minn. R. ch. 1300 (2013). The'Code is intended to "provide basic and uniform performance standards, establishreasonable safeguards for health, safety, welfare, comfort, and security of the residents ofthis state and provide for the use of modern methods, devices, materials, and techniqueswhich will in part tend to lower construction costs." Minn. Stat. § 326B.101. The Code1 Both challenged rules became effective in 2015. Thus, although the revisor has notpublished the 2015 version of the Minnesota Rules at the time of this brief, the rulerevisions subject to this case will be cited as "(2015)" for clarity and ease of reference.2)

governs "matters of structural materials, design and construction, fire protection, health,sanitation, and safety, including design and construction standards regarding heat losscontrol, illumination, and climate control." Id. § 326B.1 06, subd. 1.The Legislature provided DLI with broad authority to "adopt, amend, suspend, andrepeal rules relating to [DLI's] responsibilities under [chapter 326B]," including theCode. Id. §§ 326B.02, subd. 5, .106, subd. 1.Chapter 326B requires the Code to"conform insofar as practicable to model building codes generally accepted and in usethroughout the United States," and explicitly provides that DLI may exercise its broadrulemakingauthority toadopt by reference"[m]odelcodes with necessarymodifications." Id. § 32613.106, subd. 1; see also id. § 326B.02, subd. 6. The Code "isadopted and periodically updated to include current' editions of national model codes ingeneraluse and existingstatewidespecialty codes and their amendments."Minn. R. 1300.0080.The Code incorporates many model codes by reference, including the InternationalResidential Code, International Building Code, International Existing Building Code,InternationalEnergyConservationCode, International Mechanical Code, andInternational Fire Code. Minn. R. 1300.0050; Minn. R. chs. 1305, 1307, 1309, 1311,1322, 1346, 7511 (2013). Together, these model codes and their amendments "establishminimum requirements to safeguard the public health, safety, and general welfarethrough structural strength, means of egress facilities, . energy conservation, and safetyto life and property from fire and other hazards attributed to the built environment and toprovide safety to firefighters and emergency responders during emergency operations."3

Minn. R. 1300.0030, subp. 1. The Code applies statewide and supersedes all municipalbuilding codes. Minn. Stat. § 326B.121, subd. 1.B.Rulemaking Under The Minnesota Administrative Procedure Act.DLI amends the Code pursuant to the rulemaking procedures of the MinnesotaAdministrative Procedure Act ("MAPA"). Id. § 326B.13, subd. 1; see also Minn. Stat.ch. 14 (2014); Minn. R. ch. 1400 (2013). Under the MAPA, an agency cannot adopt aproposed rule until an Administrative Law Judge ("ALJ") with the Office ofAdministrative Hearings has reviewed its reasonableness, necessity, and legality.See Minn. Stat. §§ 14.16, .26; see generally Minn. R. 1400.2000-.2310. The MAPAprovides separate requirements for rules reviewed by an ALJ after a public hearing andrules reviewed without hearing, but all formal MAPA rulemaking proceedingsnevertheless follow common preliminary steps.The first required formal step is a 60-day public comment period, whichISinitiated by publication in the State Register of a Request for Comments on the subjectmatter of a possible rulemaking proposal. Minn. Stat. § 14.101, subd. 1. The Request forComments alerts the public to the subject matter of rules under consideration, identifiesgroups and individuals likely to be affected, and provides interested persons withinformation about participating in the rulemaking process. Id. The agency may alsoconvene an advisory committee to obtain additional input. Id. § 14.101, subd. 2.The MAPA also requires preparation of a Statement of Need and Reasonableness("SONAR") describing the agency's efforts to provide notice to those affected by theproposed rule ("Additional Notice Plan") and including, to the extent the information can4

be ascertained through reasonable effort, eight other specific categories of information.Id. §§ 14.131, .23. The SONAR "must summarize the evidence the agency is relying onto justify both the need for and the reasonableness of the proposed rules, and must statehow the evidence rationally relates to the choice of action taken." Minn. R. 1400.2070.It must be sufficiently specific "that interested persons will be able to fully prepare anytestimony or evidence in favor of or in opposition to the proposed rules," but it "need notcontain evidence and argument in rebuttal of evidence and argument presented by thepublic." Id.1.Rulemaking With A Public HearingRulemaking hearings are public proceedings and afford anyone interested in aproposed rule the opportunity to present evidence and participate in the process. Id.§ 14.14, subds. 1, 2a; Minn. R. 1400.2210. An agency formally promulgating rules underthe MAP A may elect to hold a rule hearing and is required to hold a hearing if it receives25 or more qualifying hearing requests. Minn. Stat. §§ 14.14, subd. 1, .25, subd. 1.Hearings on rulemaking proceedings occur before an ALI. Minn. Stat. §§ 14.l4,subd. 2a. At hearing, the agency enters its rulemaking documents into the record andmakes an affirmative presentation of the facts to establish that the proposed rule isreasonable and necessary and that the agency has complied with all substantive andprocedural requirements.Minn. Stat. § 14.14, subds. 2-2a; Minn. R. 1400.2210,subp. 3, .2220, subps. 1, 3. Interested parties may ask questions and may present oral andwritten statements and evidence. Minn. Stat. § 14.14, subd. 2a; Minn. R. 1400.2210,subp. 4, .2220, subp. 4. The agency may present evidence responding to statements made5

by interested parties, and the interested parties may further respond to the agency'sadditional evidence. Minn. Stat. § 14.14, subd. 2a; Minn. R. 1400.2210, subps. 4-5, 7.After the hearing, the ALJ provides the agency and all other interested parties timeto submit additional comments and written material into the record. Minn. Stat. § 14.l5,subd. 1; Minn. R. 1400.2230, subp.l.The agency and all other interested parties thenhave a five-day rebuttal period to review and respond in writing to materials submittedduring .the post-hearing comment. Minn. Stat. § 14.15, subd. 1; Minn. R. 1400.2230,subp. 2. The hearing record closes on the last day of the post-hearing response period.Minn. R. 1400.2230, subp. 3.After the record closes, the ALJ must prepare a report approving or disapprovingthe proposed rule. Minn. Stat. § 14.15, subd. 2; Minn

The Challenged Automatic Fire Sprinkler Standard 7 B. DLI Collects Input From Stakeholders, Including Representatives Of . Building And Fire Safety Groups 8 C. DLI Undertakes The 1309 Rulemaking 11 D. ALJ LipmanApproves The 1309 Rule ; 14 III. DLI AMENDS THE MINNESOTA RESIDENTIAL ENERGY CODE, MINN. R. CH.1322, By ADOPTING PROVISIONS OF THE 2012 INTERNATIONAL ENERGY