Handle With Care, Inc. v. Department of Human Services

393 N.W.2d 421, 1986 Minn. App. LEXIS 4792
CourtCourt of Appeals of Minnesota
DecidedSeptember 30, 1986
DocketNo. C3-86-99
StatusPublished
Cited by1 cases

This text of 393 N.W.2d 421 (Handle With Care, Inc. v. Department of Human Services) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Handle With Care, Inc. v. Department of Human Services, 393 N.W.2d 421, 1986 Minn. App. LEXIS 4792 (Mich. Ct. App. 1986).

Opinion

OPINION

SEDGWICK, Judge.

Petitioners seek a judgment declaring that certain day care rules were invalidly promulgated. The petition for declaratory relief is granted.

[422]*422FACTS

Between October 1983 and February 1984, the Legislative Commission to Review Administrative Rules (LCRAR)1 conducted a review of agency rules governing the licensure of family and group family day care providers. A series of public meetings was held, and on February 15, 1984 the LCRAR issued a report which summarized its review process and recommended several amendments to the rules.

In May 1984, the legislature passed 1984 Minn.Laws ch. 658, § 2:

Subd. 4. The commissioners of human services, public safety, and administration shall conduct a comprehensive study of the issues surrounding the licen-sure of family or group family day care homes and day care centers. The commissioners shall prepare a report for the legislature with recommendations for regulations that will ensure a safe environment for children but which do not discourage the provision of quality day care services. The report must be delivered to the appropriate legislative committees by February 1, 1985.
Before adopting any rules regulating family or group family day care homes, the commissioner of human services shall consult with the state fire marshal and the state building inspector. The fire marshal and the state building inspector shall review the rules to ensure compliance with laws that are administered and enforced by their agencies.

Minn.Stat. § 245.802, subd. 4 (1984).

On October 10, 1984, the Department of Human Services filed a draft of proposed new day care rules with the chief administrative law judge. A notice of hearing was published in the State Register and mailed to interested parties, and a hearing on the proposed rules was held on November 30 and December 1,1984. The day before the hearing began, the LCRAR submitted a letter to the administrative law judge indi-eating that the proposed rules had been reviewed and were consistent with the commission’s actions. Several other legislators submitted comments on the proposed rules prior to the hearing, and at least one representative and two members of the LCRAR attended the hearing.

On January 22, 1985, the administrative law judge issued a report on the rulemak-ing proceeding, and the findings contained in that report were subsequently approved by the chief administrative law judge. The new rules were determined to be a “thorough-going revision of the standards governing family and group family day care in the State of Minnesota.” (Administrative law judge Finding of Fact No. 8.) On March 11, 1985, the rules and a notice of adoption were filed with the secretary of state, and on March 25, 1985, a notice of adoption was published in the State Register. With certain exceptions, the rules became effective five days later.

In March 1985, the Department of Human Services filed a “Status Report” on day care regulations with the Minnesota legislature. This report was only three and one-half pages long, and was not prepared by the Commissioners of the Department of Human Services, Public Safety and Administration as required by Minn.Stat. § 245.802, subd. 4. The report was also not filed by February 1, 1985, as required by the statute. Although the report referred to “proposed rules” and “recommendations for family and group family day care regulations,” the adopted family day care rules, the report of the administrative law judge and the order for adoption of the rules were appended to the report.

The petitioners are day care providers and organizations of day care providers who have requested a judgment declaring that because the Department of Human Services failed to comply with the procedures mandated by Minn.Stat. § 245.802, [423]*423subd. 4, the new rules are in excess of statutory authority and therefore invalid.

ISSUES

1. Do the petitioners have standing to bring this action?

2. Must petitioners be certified as a class?

3. Did the Department of Human Services, in promulgating its new day care rules, to comply with procedures mandated by statute?

ANALYSIS

1. The present action is a pre-en-forcement challenge to agency rules, rather than an appeal following a contested case hearing. As such, the petitioners’ claim is governed by Minn.Stat. § 14.44 (1984), which provides:

The validity of any rule may be determined upon the petition for a declaratory judgment thereon, addressed to the court of appeals, when it appears that the rule, or its threatened application, interferes with or impairs, or threatens to interfere with or impair the legal rights or privileges of the petitioner. The agency shall be made a party to the proceeding. The declaratory judgment may be rendered whether or not the petitioner has first requested the agency to pass upon the validity of the rule in question, and whether or not the agency has commenced an action against the petitioner to enforce the rule.

The test for standing to challenge a rule under the above language is whether a petitioner has demonstrated “injury in fact.” McKee v. Likins, 261 N.W.2d 566, 570 (Minn.1977) (citing Snyders Drug Stores v. Minnesota Board of Pharmacy, 301 Minn. 28, 32, 221 N.W.2d 162, 165 (1974)).

The Commissioner of Human Services alleges that the petitioners have made an insufficient showing of standing to bring this action because they have alleged only that they are “day care providers and organizations of day care providers,” and have not alleged injury as a result of the promulgation of the new rules. However, the petition for declaratory judgment alleges:

2. * * * The statute mandated that there be a comprehensive study, with proposed regulations, submitted to the appropriate legislative committees before February 1, 1985, which should take into account both a safe environment for children and effect on the provision of quality day care services. The purported “study” either ignores the second consideration or deals with it in a conclu-sory manner.
******
5. * * * the failure of the Departments to make such a comprehensive study and submit the results with the proposed regulations has effectively ignored the legislative intent and has effectively caused the anticipated harm— discouragement of quality services — by failing to comply with the statutory mandate.
6. Petitioners are individual day care providers, or organizations of such, within the State of Minnesota, whose legal rights and privileges are impaired by said rules.

(Emphasis supplied). Day care providers are certainly affected by day care regulations. By alleging that the Commissioner’s failure to comply with the legislature’s directives will discourage the provision of quality day care services, the petitioners have sufficiently established that the rules threaten to interfere with their legal rights.

2.

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Related

Handle With Care, Inc. v. Department of Human Services
406 N.W.2d 518 (Supreme Court of Minnesota, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
393 N.W.2d 421, 1986 Minn. App. LEXIS 4792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/handle-with-care-inc-v-department-of-human-services-minnctapp-1986.