S.F. No. 1438 is a bill proposed in the Minnesota Senate that focuses on amending the way state agencies create and implement administrative rules. The major points of the bill include:

1. Cost-Benefit Analysis Requirement: State agencies must perform a detailed analysis to demonstrate that the benefits of any new or amended rule exceed its costs. This analysis must consider direct and indirect financial impacts on various stakeholders, including state agencies, local government, businesses, and individuals.

2. Transparency and Documentation: The methods used for cost-benefit analyses must adhere to standardized, state-of-the-art practices. Agencies are required to publicly share all documentation, including assumptions and methods used in their analysis to allow for public scrutiny and replication.

3. Consultation and Reporting: Agencies need to consult with the Commissioner of Management and Budget to identify projected costs and benefits to local units of government. They must also provide documentation of their analyses during the preliminary notice of rulemaking and final adoption phases.

4. Procedural Safeguards: The bill sets up several checks to ensure that rules are not excessively burdensome or unnecessary. This includes justifying the chosen analytical methods, period of analysis, and addressing any significant uncertainties or changes in the preliminary analysis based on public feedback.

5. Special Exemptions: There are specific exceptions where the cost-benefit analysis requirement does not apply, such as for emergency or expedited rules.

6. Rulemaking Oversight: The process includes various stages of review and oversight, including a necessity for agencies to justify rules at public hearings based on their analyses. If a rule significantly differs from its original proposal or if the agency fails to meet analysis requirements, it must undergo further review and approval procedures.

7. Judicial Review: Rules may be challenged in the Court of Appeals, and the court can rule a regulation invalid if it finds that it violates constitutional provisions, exceeds statutory authority, or was adopted without meeting the necessary rulemaking procedures, including the required cost-benefit analysis.

In summary, S.F. No. 1438 aims to ensure that administrative rules in Minnesota are economically justifiable and transparent, by mandating thorough cost-benefit analyses, enhancing public documentation, and enforcing multiple layers of procedural and judicial oversight.