1.1                          A bill for an act 
  1.2             relating to economic development; reducing 
  1.3             appropriations for economic development and certain 
  1.4             other programs; appropriating money for economic 
  1.5             development and other programs; modifying programs and 
  1.6             practices; modifying provisions governing barbers and 
  1.7             cosmetologists; regulating petroleum testing and fees; 
  1.8             creating a revolving fund; increasing a bonding limit; 
  1.9             modifying tobacco sales penalty provisions; granting 
  1.10            extra unemployment benefits for certain military 
  1.11            reservists; transferring powers and funds; renumbering 
  1.12            sections; amending Minnesota Statutes 2002, sections 
  1.13            60A.14, subdivision 1; 154.01; 154.02; 154.03; 154.04; 
  1.14            154.06; 154.07, as amended; 154.08; 154.11; 154.12; 
  1.15            154.161, subdivisions 2, 4, 5, 7; 154.18; 154.19; 
  1.16            154.21; 154.22; 154.23; 154.24; 154.25; 155A.01; 
  1.17            155A.02; 155A.03, subdivisions 1, 2, 7, by adding 
  1.18            subdivisions; 155A.045, subdivision 1; 155A.05; 
  1.19            155A.07, subdivisions 2, 8, by adding a subdivision; 
  1.20            155A.08, subdivisions 1, 2, 3; 155A.09; 155A.095; 
  1.21            155A.10; 155A.135; 155A.14; 155A.15; 155A.16; 177.23, 
  1.22            subdivision 7; 182.653, subdivision 9; 214.01, 
  1.23            subdivision 3; 239.011, by adding a subdivision; 
  1.24            239.101, subdivision 3; 326.975, subdivision 1; 
  1.25            327C.01, by adding a subdivision; 327C.02, subdivision 
  1.26            2; 327C.04, by adding a subdivision; 446A.12, 
  1.27            subdivision 1; 446A.14; 446A.17; 446A.19; 461.12, 
  1.28            subdivision 2; 461.19; 462A.05, by adding a 
  1.29            subdivision; Minnesota Statutes 2003 Supplement, 
  1.30            sections 116J.70, subdivision 2a; 116J.8731, 
  1.31            subdivision 5; 214.04, subdivision 3; 462A.03, 
  1.32            subdivision 13; Laws 2003, chapter 128, article 10, 
  1.33            section 4, subdivision 3; proposing coding for new law 
  1.34            in Minnesota Statutes, chapter 446A; repealing 
  1.35            Minnesota Statutes 2002, sections 155A.03, 
  1.36            subdivisions 11, 13; 155A.04; 155A.06; Minnesota 
  1.37            Statutes 2003 Supplement, section 239.101, subdivision 
  1.38            7; Minnesota Rules, part 2100.9300, subpart 1. 
  1.39  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.40  Section 1.  [APPROPRIATIONS AND REDUCTIONS.] 
  1.41     The dollar amounts in the columns under "APPROPRIATIONS" 
  1.42  are added to or, if shown in parentheses, subtracted from the 
  2.1   appropriations in Laws 2003, chapter 128, article 10, or other 
  2.2   law, to the specified agencies.  The appropriations are from the 
  2.3   general fund or other named fund and are available for the 
  2.4   fiscal years indicated for each purpose.  The figure "2004" or 
  2.5   "2005" means that the addition to or subtraction from the 
  2.6   appropriations listed under the year are for the fiscal year 
  2.7   ending June 30, 2004, or June 30, 2005, respectively.  The term 
  2.8   "the first year" means the year ending June 30, 2004, and the 
  2.9   term "the second year" means the year ending June 30, 2005. 
  2.10                          SUMMARY BY FUND
  2.11                            2004          2005           TOTAL
  2.12  General                   -0-       $(1,096,000)    $(1,096,000)
  2.13                                             APPROPRIATIONS 
  2.14                                         Available for the Year 
  2.15                                             Ending June 30 
  2.16                                            2004         2005 
  2.17  Sec. 2.  EMPLOYMENT AND ECONOMIC
  2.18  DEVELOPMENT                             -0-            (599,000)
  2.19  Subdivision 1.  Appropriation Reduction
  2.20         -0-         (1,044,000)
  2.21  Of this amount, $594,000 is a reduction 
  2.22  from the operating budget appropriation 
  2.23  made in Laws 2003, chapter 128, article 
  2.24  10, section 2, and does not include any 
  2.25  reduction to the operating budget for 
  2.26  Minnesota State Services for the 
  2.27  Blind.  The base operating budget is 
  2.28  reduced by an additional $297,000 per 
  2.29  year for fiscal years 2006 and 2007. 
  2.30  Of this amount, $25,000 is a reduction 
  2.31  in the second year in the federal 
  2.32  matching fund appropriation made in 
  2.33  Laws 2003, chapter 128, article 10, 
  2.34  section 2.  The base federal matching 
  2.35  fund budget is reduced by $25,000 per 
  2.36  year in fiscal years 2006 and 2007. 
  2.37  Of this amount, $100,000 is the 
  2.38  rescission of the second year grant 
  2.39  appropriation to the Metropolitan 
  2.40  Economic Development Association made 
  2.41  in Laws 2003, chapter 128, article 10, 
  2.42  section 2.  Base funding for this grant 
  2.43  is included in fiscal years 2006 and 
  2.44  2007. 
  2.45  Of this amount, $150,000 is the 
  2.46  rescission of the second year grant 
  2.47  appropriation to WomenVenture made in 
  2.48  Laws 2003, chapter 128, article 10, 
  2.49  section 2.  Base funding for this grant 
  2.50  is included in fiscal years 2006 and 
  2.51  2007. 
  3.1   Of this amount, $175,000 is the 
  3.2   rescission of the second year 
  3.3   appropriation for the Minnesota Film 
  3.4   Board made in Laws 2003, chapter 128, 
  3.5   article 10, section 2.  Base funding 
  3.6   for this grant is included in fiscal 
  3.7   years 2006 and 2007. 
  3.8   Subd. 2.  Appropriations     
  3.9           -0-           445,000 
  3.10  $100,000 in the second year is for a 
  3.11  grant to Minnesota Project Innovation 
  3.12  to provide assistance to Minnesota 
  3.13  businesses in obtaining federal 
  3.14  contracts.  This appropriation is added 
  3.15  to the base budget for this program for 
  3.16  fiscal years 2006 and 2007. 
  3.17  $250,000 the second year is to the 
  3.18  Public Facilities Authority to carry 
  3.19  out the authority's duties under 
  3.20  Minnesota Statutes, section 446A.083. 
  3.21  The base budget for this program in 
  3.22  fiscal years 2006 and 2007 is $250,000 
  3.23  each year. 
  3.24  $95,000 in the second year is for a 
  3.25  onetime grant to the Minnesota 
  3.26  Employment Center for people who are 
  3.27  deaf and hard-of-hearing, and is in 
  3.28  addition to the appropriation made in 
  3.29  Laws 2003, chapter 128, article 10, 
  3.30  section 2. 
  3.31  Sec. 3.  HOUSING FINANCE AGENCY        -0-             (628,000)
  3.32  This reduction is from the 
  3.33  appropriation made in Laws 2003, 
  3.34  chapter 128, article 10, section 4. 
  3.35  This is a onetime reduction and is not 
  3.36  to be subtracted from the agency's base 
  3.37  for fiscal years 2006 and 2007. 
  3.38  Sec. 4.  LABOR AND INDUSTRY            -0-              (85,000)
  3.39  This reduction is from the operating 
  3.40  budget appropriation made in Laws 2003, 
  3.41  chapter 128, article 10, section 5.  
  3.42  The base operating budget is reduced by 
  3.43  an additional $43,000 per year for 
  3.44  fiscal years 2006 and 2007. 
  3.45  Sec. 5.  BUREAU OF MEDIATION           -0-             (100,000)
  3.46  SERVICES 
  3.47  This reduction is the rescission of the 
  3.48  second year appropriation for labor 
  3.49  management cooperation grants made in 
  3.50  Laws 2003, chapter 128, article 10, 
  3.51  section 6.  No base funding for these 
  3.52  grants is included in fiscal years 2006 
  3.53  and 2007. 
  3.54  Sec. 6.  MINNESOTA HISTORICAL  
  3.55  SOCIETY                                -0-              349,000
  4.1   Of this amount, $589,000 is for fiscal 
  4.2   year 2005 for the operation of the 
  4.3   following historical sites for the 
  4.4   summer of 2004 and spring of 2005:  
  4.5   Kelley Farm, Hill House, Lower Sioux 
  4.6   Agency, Fort Ridgely, Historic 
  4.7   Forestville, the Forest History Center, 
  4.8   and the Comstock House.  This is a 
  4.9   onetime appropriation and is not to be 
  4.10  added to the society's base. 
  4.11  Notwithstanding Minnesota Statutes, 
  4.12  section 138.668, the Minnesota 
  4.13  Historical Society may not charge a fee 
  4.14  for its general tours at the Capitol, 
  4.15  but may charge for special programs 
  4.16  other than general tours. 
  4.17  Of this amount, $60,000 in the second 
  4.18  year is to offset the revenue loss from 
  4.19  the prohibition of charging fees.  This 
  4.20  appropriation is added to the society's 
  4.21  base. 
  4.22  Of this amount, $300,000 in the second 
  4.23  year is a reduction from the 
  4.24  appropriation made in Laws 2003, 
  4.25  chapter 128, article 10, section 8.  
  4.26  The base budget is reduced by an 
  4.27  additional $368,000 per year for fiscal 
  4.28  years 2006 and 2007. 
  4.29  Sec. 7.  DEPARTMENT OF EDUCATION       -0-              250,000 
  4.30  $250,000 in the second year is for 
  4.31  transfer to the Department of Human 
  4.32  Services for a onetime grant for the 
  4.33  transitional housing programs according 
  4.34  to Minnesota Statutes, section 119A.43, 
  4.35  and is in addition to the appropriation 
  4.36  made in Laws 2003, chapter 128, article 
  4.37  10, section 10. 
  4.38  Sec. 8.  COMMERCE                      -0-             (855,000)
  4.39  Of this amount, $347,000 is a reduction 
  4.40  from the operating budget appropriation 
  4.41  made in Laws 2003, First Special 
  4.42  Session chapter 1, article 3, section 2.
  4.43  The base operating budget is reduced by 
  4.44  an additional $174,000 per year for 
  4.45  fiscal years 2006 and 2007. 
  4.46  Of this amount, $100,000 is a reduction 
  4.47  from the appropriation made in Laws 
  4.48  2003, First Special Session chapter 1, 
  4.49  article 3, section 2, for the 
  4.50  administrative costs of the contractors 
  4.51  recovery fund. 
  4.52  Of this amount, $408,000 is a reduction 
  4.53  from the appropriation made in Laws 
  4.54  2003, First Special Session chapter 1, 
  4.55  article 3, section 2, for programs to 
  4.56  improve the energy efficiency of 
  4.57  residential oil-fired heating plants in 
  4.58  low-income households and, when 
  4.59  necessary, to provide weatherization 
  4.60  services to the homes.  No base funding 
  5.1   for this program is included in fiscal 
  5.2   years 2006 and 2007. 
  5.3   Sec. 9.  BOARD OF BARBER AND    
  5.4   COSMETOLOGIST EXAMINERS                 -0-             572,000 
  5.5   This appropriation is in addition to 
  5.6   the appropriation made in Laws 2003, 
  5.7   First Special Session chapter 1, 
  5.8   article 3, section 5, and is added to 
  5.9   the board's base. 
  5.10  Sec. 10.  TRANSFERS AND CANCELLATIONS     
  5.11  Subdivision 1.  Vocational 
  5.12  Rehabilitation Transfer
  5.13  Beginning in fiscal year 2005, the 
  5.14  commissioner of employment and economic 
  5.15  development may transfer $1,325,000 
  5.16  from the independent living program's 
  5.17  general fund appropriation to the 
  5.18  vocational rehabilitation program.  
  5.19  Each year the state director of the 
  5.20  vocational rehabilitation program shall 
  5.21  immediately restore from the vocational 
  5.22  rehabilitation program's federal Social 
  5.23  Security Administration program income 
  5.24  or federal Title I funds, the 
  5.25  $1,325,000 to the Centers for 
  5.26  Independent Living. 
  5.27  Subd. 2.  Federal Funds Match                                   
  5.28  The transferred independent living 
  5.29  general funds under subdivision 1 must 
  5.30  be used to match federal vocational 
  5.31  rehabilitation funds as they become 
  5.32  available, and each year the resulting 
  5.33  additional federal funds must be 
  5.34  divided equally between the vocational 
  5.35  rehabilitation program and the Centers 
  5.36  for Independent Living.  
  5.37  The maximum amount of federal 
  5.38  vocational rehabilitation funds that 
  5.39  may be shared with the Centers for 
  5.40  Independent Living is $2,438,000.  The 
  5.41  vocational rehabilitation program may 
  5.42  not use the Centers for Independent 
  5.43  Living's share of the additional 
  5.44  federal funds for any other purpose 
  5.45  than to fund the Centers for 
  5.46  Independent Living. 
  5.47  Subd. 3.  Data Sharing                                          
  5.48  The Centers for Independent Living must 
  5.49  share data with the vocational 
  5.50  rehabilitation program to ensure that 
  5.51  the transfer of funds under subdivision 
  5.52  1 and the related contracts meet all 
  5.53  legal requirements. 
  5.54  Subd. 4.  Minnesota minerals 21st century fund
  5.55  On or before June 30, 2005, the 
  5.56  commissioner of finance shall transfer 
  5.57  $11,448,000 from the Minnesota minerals 
  5.58  21st century fund account in the 
  5.59  special revenue fund to the general 
  6.1   fund. 
  6.2   Subd. 5.  School Employee Health Insurance Study 
  6.3   Of the appropriation made to the 
  6.4   commissioner of commerce in Laws 2002, 
  6.5   chapter 378, section 3, $425,000 is 
  6.6   canceled and transferred to the general 
  6.7   fund. 
  6.8   Subd. 6.  Fair Housing Education  
  6.9   Of the money appropriated for fair 
  6.10  housing education under Laws 2001, 
  6.11  chapter 208, section 28, $800,000 is 
  6.12  canceled and transferred to the general 
  6.13  fund. 
  6.14  Subd. 7.  Mortgage Consumer Education
  6.15  Of the unexpended balance in the 
  6.16  consumer education account established 
  6.17  under Minnesota Statutes, section 
  6.18  58.10, subdivision 3, $100,000 is 
  6.19  transferred to the general fund. 
  6.20  Subd. 8.  Mortgage Flipping Education Campaign 
  6.21  Of the money appropriated for education 
  6.22  regarding mortgage flipping by Laws 
  6.23  1999, chapter 223, article 1, section 
  6.24  6, subdivision 3, $15,000 is canceled 
  6.25  and transferred to the general fund. 
  6.26  Subd. 9.  Employer Association Investigation 
  6.27  After July 1, 2004, and before 
  6.28  September 30, 2004, the commissioner of 
  6.29  finance shall transfer $211,000 from 
  6.30  the employer association investigation 
  6.31  set-aside within the workforce 
  6.32  development fund to the general fund. 
  6.33     <b>[EFFECTIVE DATE.]</b> Subdivision 5 is effective the day 
  6.34  following final enactment. 
  6.35     Sec. 11.  Minnesota Statutes 2002, section 60A.14, 
  6.36  subdivision 1, is amended to read: 
  6.37     Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
  6.38  addition to the fees and charges provided for examinations, the 
  6.39  following fees must be paid to the commissioner for deposit in 
  6.40  the general fund: 
  6.41     (a) by township mutual fire insurance companies; 
  6.42     (1) for filing certificate of incorporation $25 and 
  6.43  amendments thereto, $10; 
  6.44     (2) for filing annual statements, $15; 
  6.45     (3) for each annual certificate of authority, $15; 
  6.46     (4) for filing bylaws $25 and amendments thereto, $10; 
  7.1      (b) by other domestic and foreign companies including 
  7.2   fraternals and reciprocal exchanges; 
  7.3      (1) for filing an application for an initial certificate of 
  7.4   authority to be admitted to transact business in this state, 
  7.5   $1,500; 
  7.6      (2) for filing certified copy of certificate of articles of 
  7.7   incorporation, $100; 
  7.8      (2) (3) for filing annual statement, $225; 
  7.9      (3) (4) for filing certified copy of amendment to 
  7.10  certificate or articles of incorporation, $100; 
  7.11     (4) (5) for filing bylaws, $75 or amendments thereto, $75; 
  7.12     (5) (6) for each company's certificate of authority, $575, 
  7.13  annually; 
  7.14     (c) the following general fees apply: 
  7.15     (1) for each certificate, including certified copy of 
  7.16  certificate of authority, renewal, valuation of life policies, 
  7.17  corporate condition or qualification, $25; 
  7.18     (2) for each copy of paper on file in the commissioner's 
  7.19  office 50 cents per page, and $2.50 for certifying the same; 
  7.20     (3) for license to procure insurance in unadmitted foreign 
  7.21  companies, $575; 
  7.22     (4) for valuing the policies of life insurance companies, 
  7.23  one cent per $1,000 of insurance so valued, provided that the 
  7.24  fee shall not exceed $13,000 per year for any company.  The 
  7.25  commissioner may, in lieu of a valuation of the policies of any 
  7.26  foreign life insurance company admitted, or applying for 
  7.27  admission, to do business in this state, accept a certificate of 
  7.28  valuation from the company's own actuary or from the 
  7.29  commissioner of insurance of the state or territory in which the 
  7.30  company is domiciled; 
  7.31     (5) for receiving and filing certificates of policies by 
  7.32  the company's actuary, or by the commissioner of insurance of 
  7.33  any other state or territory, $50; 
  7.34     (6) for each appointment of an agent filed with the 
  7.35  commissioner, $10; 
  7.36     (7) for filing forms and rates, $75 per filing, which may 
  8.1   be paid on a quarterly basis in response to an invoice.  Billing 
  8.2   and payment may be made electronically; 
  8.3      (8) for annual renewal of surplus lines insurer license, 
  8.4   $300; 
  8.5      (9) $250 filing fee for a large risk alternative rating 
  8.6   option plan that meets the $250,000 threshold requirement. 
  8.7      The commissioner shall adopt rules to define filings that 
  8.8   are subject to a fee. 
  8.9      Sec. 12.  Minnesota Statutes 2003 Supplement, section 
  8.10  116J.70, subdivision 2a, is amended to read: 
  8.11     Subd. 2a.  [LICENSE; EXCEPTIONS.] "Business license" or 
  8.12  "license" does not include the following:  
  8.13     (1) any occupational license or registration issued by a 
  8.14  licensing board listed in section 214.01 or any occupational 
  8.15  registration issued by the commissioner of health pursuant to 
  8.16  section 214.13; 
  8.17     (2) any license issued by a county, home rule charter city, 
  8.18  statutory city, township, or other political subdivision; 
  8.19     (3) any license required to practice the following 
  8.20  occupation regulated by the following sections:  
  8.21     (i) abstracters regulated pursuant to chapter 386; 
  8.22     (ii) accountants regulated pursuant to chapter 326A; 
  8.23     (iii) adjusters regulated pursuant to chapter 72B; 
  8.24     (iv) architects regulated pursuant to chapter 326; 
  8.25     (v) assessors regulated pursuant to chapter 270; 
  8.26     (vi) athletic trainers regulated pursuant to chapter 148; 
  8.27     (vii) attorneys regulated pursuant to chapter 481; 
  8.28     (viii) auctioneers regulated pursuant to chapter 330; 
  8.29     (ix) barbers and cosmetologists regulated pursuant to 
  8.30  chapter 154; 
  8.31     (x) beauticians regulated pursuant to chapter 155A; 
  8.32     (xi) boiler operators regulated pursuant to chapter 183; 
  8.33     (xii) (xi) chiropractors regulated pursuant to chapter 148; 
  8.34     (xiii) (xii) collection agencies regulated pursuant to 
  8.35  chapter 332; 
  8.36     (xiv) cosmetologists regulated pursuant to chapter 155A; 
  9.1      (xv) (xiii) dentists, registered dental assistants, and 
  9.2   dental hygienists regulated pursuant to chapter 150A; 
  9.3      (xvi) (xiv) detectives regulated pursuant to chapter 326; 
  9.4      (xvii) (xv) electricians regulated pursuant to chapter 326; 
  9.5      (xviii) (xvi) mortuary science practitioners regulated 
  9.6   pursuant to chapter 149A; 
  9.7      (xix) (xvii) engineers regulated pursuant to chapter 326; 
  9.8      (xx) (xviii) insurance brokers and salespersons regulated 
  9.9   pursuant to chapter 60A; 
  9.10     (xxi) (xix) certified interior designers regulated pursuant 
  9.11  to chapter 326; 
  9.12     (xxii) (xx) midwives regulated pursuant to chapter 147D; 
  9.13     (xxiii) (xxi) nursing home administrators regulated 
  9.14  pursuant to chapter 144A; 
  9.15     (xxiv) (xxii) optometrists regulated pursuant to chapter 
  9.16  148; 
  9.17     (xxv) (xxiii) osteopathic physicians regulated pursuant to 
  9.18  chapter 147; 
  9.19     (xxvi) (xxiv) pharmacists regulated pursuant to chapter 
  9.20  151; 
  9.21     (xxvii) (xxv) physical therapists regulated pursuant to 
  9.22  chapter 148; 
  9.23     (xxviii) (xxvi) physician assistants regulated pursuant to 
  9.24  chapter 147A; 
  9.25     (xxix) (xxvii) physicians and surgeons regulated pursuant 
  9.26  to chapter 147; 
  9.27     (xxx) (xxviii) plumbers regulated pursuant to chapter 326; 
  9.28     (xxxi) (xxix) podiatrists regulated pursuant to chapter 
  9.29  153; 
  9.30     (xxxii) (xxx) practical nurses regulated pursuant to 
  9.31  chapter 148; 
  9.32     (xxxiii) (xxxi) professional fund-raisers regulated 
  9.33  pursuant to chapter 309; 
  9.34     (xxxiv) (xxxii) psychologists regulated pursuant to chapter 
  9.35  148; 
  9.36     (xxxv) (xxxiii) real estate brokers, salespersons, and 
 10.1   others regulated pursuant to chapters 82 and 83; 
 10.2      (xxxvi) (xxxiv) registered nurses regulated pursuant to 
 10.3   chapter 148; 
 10.4      (xxxvii) (xxxv) securities brokers, dealers, agents, and 
 10.5   investment advisers regulated pursuant to chapter 80A; 
 10.6      (xxxviii) (xxxvi) steamfitters regulated pursuant to 
 10.7   chapter 326; 
 10.8      (xxxix) (xxxvii) teachers and supervisory and support 
 10.9   personnel regulated pursuant to chapter 125; 
 10.10     (xl) (xxxviii) veterinarians regulated pursuant to chapter 
 10.11  156; 
 10.12     (xli) (xxxix) water conditioning contractors and installers 
 10.13  regulated pursuant to chapter 326; 
 10.14     (xlii) (xl) water well contractors regulated pursuant to 
 10.15  chapter 103I; 
 10.16     (xliii) (xli) water and waste treatment operators regulated 
 10.17  pursuant to chapter 115; 
 10.18     (xliv) (xlii) motor carriers regulated pursuant to chapter 
 10.19  221; 
 10.20     (xlv) (xliii) professional firms regulated under chapter 
 10.21  319B; 
 10.22     (xlvi) (xliv) real estate appraisers regulated pursuant to 
 10.23  chapter 82B; 
 10.24     (xlvii) (xlv) residential building contractors, residential 
 10.25  remodelers, residential roofers, manufactured home installers, 
 10.26  and specialty contractors regulated pursuant to chapter 326; 
 10.27     (xlviii) (xlvi) licensed professional counselors regulated 
 10.28  pursuant to chapter 148B; 
 10.29     (4) any driver's license required pursuant to chapter 171; 
 10.30     (5) any aircraft license required pursuant to chapter 360; 
 10.31     (6) any watercraft license required pursuant to chapter 
 10.32  86B; 
 10.33     (7) any license, permit, registration, certification, or 
 10.34  other approval pertaining to a regulatory or management program 
 10.35  related to the protection, conservation, or use of or 
 10.36  interference with the resources of land, air, or water, which is 
 11.1   required to be obtained from a state agency or instrumentality; 
 11.2   and 
 11.3      (8) any pollution control rule or standard established by 
 11.4   the Pollution Control Agency or any health rule or standard 
 11.5   established by the commissioner of health or any licensing rule 
 11.6   or standard established by the commissioner of human services. 
 11.7      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 11.8   116J.8731, subdivision 5, is amended to read: 
 11.9      Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
 11.10  may not be approved for an amount in excess of $1,000,000.  This 
 11.11  limit covers all money paid to complete the same project, 
 11.12  whether paid to one or more grant recipients and whether paid in 
 11.13  one or more fiscal years.  The portion Twenty percent of a 
 11.14  Minnesota investment fund grant that exceeds, but no more 
 11.15  than $100,000 must be repaid to the state when it is repaid to, 
 11.16  may be retained by the local community or recognized Indian 
 11.17  tribal government when the grant is repaid by the person or 
 11.18  entity to which it was loaned by the local community or Indian 
 11.19  tribal government.  The remainder must be repaid to the state.  
 11.20  Money repaid to the state must be credited to a Minnesota 
 11.21  investment revolving loan account in the state treasury.  Funds 
 11.22  in the account are appropriated to the commissioner and must be 
 11.23  used in the same manner as are funds appropriated to the 
 11.24  Minnesota investment fund.  Funds repaid to the state through 
 11.25  existing Minnesota investment fund agreements must be credited 
 11.26  to the Minnesota investment revolving loan account effective 
 11.27  July 1, 2003.  A grant or loan may not be made to a person or 
 11.28  entity for the operation or expansion of a casino or a store 
 11.29  which is used solely or principally for retail sales.  Persons 
 11.30  or entities receiving grants or loans must pay each employee 
 11.31  total compensation, including benefits not mandated by law, that 
 11.32  on an annualized basis is equal to at least 110 percent of the 
 11.33  federal poverty level for a family of four. 
 11.34     Sec. 14.  Minnesota Statutes 2002, section 154.01, is 
 11.35  amended to read: 
 11.36     154.01 [REGISTRATION MANDATORY.] 
 12.1      (a) No person shall practice, offer to practice, or attempt 
 12.2   to practice barbering without a current certificate of 
 12.3   registration as a registered barber, issued pursuant to 
 12.4   provisions of this chapter sections 154.01 to 154.26 by the 
 12.5   Board of Barber and Cosmetologist Examiners.  
 12.6      (b) No person shall serve, offer to serve, or attempt to 
 12.7   serve as an apprentice under a registered barber without a 
 12.8   current certificate of registration as a registered apprentice 
 12.9   or temporary apprentice permit issued pursuant to provisions of 
 12.10  this chapter sections 154.01 to 154.26 by the Board of Barber 
 12.11  and Cosmetologist Examiners.  The registered apprentice shall, 
 12.12  prior to or immediately upon issuance of the apprentice's 
 12.13  certificate of registration, and immediately after changing 
 12.14  employment, advise the board of the name, address, and 
 12.15  certificate number of the registered barber under whom the 
 12.16  registered apprentice is working.  
 12.17     (c) No person shall operate a barber shop unless it is at 
 12.18  all times under the direct supervision and management of a 
 12.19  registered barber and the owner or operator of the barber shop 
 12.20  possesses a current shop registration card, issued under this 
 12.21  chapter sections 154.01 to 154.26 by the Board of Barber and 
 12.22  Cosmetologist Examiners.  
 12.23     (d) No person shall serve, offer to serve, or attempt to 
 12.24  serve as an instructor of barbering without a current 
 12.25  certificate of registration as a registered instructor of 
 12.26  barbering or a temporary permit as an instructor of barbering, 
 12.27  as provided for the board by rule, issued under this chapter 
 12.28  sections 154.01 to 154.26 by the Board of Barber and 
 12.29  Cosmetologist Examiners. 
 12.30     (e) No person shall operate a barber school unless the 
 12.31  owner or operator possesses a current certificate of 
 12.32  registration as a barber school, issued under this chapter 
 12.33  sections 154.01 to 154.26 by the Board of Barber and 
 12.34  Cosmetologist Examiners. 
 12.35     Sec. 15.  Minnesota Statutes 2002, section 154.02, is 
 12.36  amended to read: 
 13.1      154.02 [WHAT CONSTITUTES BARBERING.] 
 13.2      Any one or any combination of the following practices when 
 13.3   done upon the head and neck for cosmetic purposes and not for 
 13.4   the treatment of disease or physical or mental ailments and when 
 13.5   done for payment directly or indirectly or without payment for 
 13.6   the public generally constitutes the practice of barbering 
 13.7   within the meaning of this chapter sections 154.01 to 154.26:  
 13.8   to shave, trim the beard, cut or bob the hair of any person of 
 13.9   either sex for compensation or other reward received by the 
 13.10  person performing such service or any other person; to give 
 13.11  facial and scalp massage or treatments with oils, creams, 
 13.12  lotions, or other preparations either by hand or mechanical 
 13.13  appliances; to singe, shampoo the hair, or apply hair tonics; or 
 13.14  to apply cosmetic preparations, antiseptics, powders, oils, 
 13.15  clays, or lotions to scalp, face, or neck.  
 13.16     Sec. 16.  Minnesota Statutes 2002, section 154.03, is 
 13.17  amended to read: 
 13.18     154.03 [APPRENTICES MAY BE EMPLOYED.] 
 13.19     A registered apprentice may practice barbering only if the 
 13.20  registered apprentice is, at all times, under the immediate 
 13.21  personal supervision of a registered barber and is in compliance 
 13.22  with this chapter sections 154.01 to 154.26 and the rules of the 
 13.23  board.  
 13.24     Sec. 17.  Minnesota Statutes 2002, section 154.04, is 
 13.25  amended to read: 
 13.26     154.04 [PERSONS EXEMPT FROM REGISTRATION.] 
 13.27     The following persons are exempt from the provisions of 
 13.28  this chapter sections 154.01 to 154.26 while in the proper 
 13.29  discharge of their professional duties: 
 13.30     (1) persons authorized by the law of this state to practice 
 13.31  medicine, surgery, osteopathy, and chiropractic; 
 13.32     (2) commissioned medical or surgical officers of the United 
 13.33  States armed services; 
 13.34     (3) registered nurses, licensed practical nurses, and 
 13.35  nursing aides performing services under the direction and 
 13.36  supervision of a registered nurse, provided, however, that no 
 14.1   additional compensation shall be paid for such service and 
 14.2   patients who are so attended shall not be charged for barbering; 
 14.3      (4) persons practicing beauty culture cosmetologists, 
 14.4   provided, however, that persons practicing beauty culture 
 14.5   cosmetologists shall not hold themselves out as barbers or, 
 14.6   except in the case of manicurists, practice their occupation in 
 14.7   a barber shop; and 
 14.8      (5) persons who perform barbering services for charitable 
 14.9   purposes in nursing homes, shelters, missions, or other similar 
 14.10  facilities, provided, however, that no direct or indirect 
 14.11  compensation is received for the services, and that persons who 
 14.12  receive barbering services are not charged for the services. 
 14.13     Sec. 18.  Minnesota Statutes 2002, section 154.06, is 
 14.14  amended to read: 
 14.15     154.06 [WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 
 14.16  REGISTERED APPRENTICE.] 
 14.17     A person is qualified to receive a certificate of 
 14.18  registration as a registered apprentice: 
 14.19     (1) who has completed at least ten grades of an approved 
 14.20  school; 
 14.21     (2) who has graduated from a barber school approved by the 
 14.22  board; and 
 14.23     (3) who has passed an examination conducted by the board to 
 14.24  determine fitness to practice as a registered apprentice.  
 14.25     An applicant for a certificate of registration to practice 
 14.26  as an apprentice who fails to pass the examination conducted by 
 14.27  the board is required to complete a further course of study of 
 14.28  at least 500 hours, of not more than eight hours in any one 
 14.29  working day, in a barber school approved by the board.  
 14.30     A certificate of registration of an apprentice shall be 
 14.31  valid for four years from the date the certificate of 
 14.32  registration is issued by the board and shall not be renewed.  
 14.33  During such the four-year period the certificate of registration 
 14.34  shall remain in full force and effect only if the apprentice 
 14.35  complies with all the provisions of this chapter, as 
 14.36  amended sections 154.01 to 154.26, including the payment of an 
 15.1   annual fee, and the rules of the board.  
 15.2      If any a registered apprentice shall, during the term in 
 15.3   which the certificate of registration is in effect, enter full 
 15.4   time enters full-time active duty in the armed forces of the 
 15.5   United States of America, the expiration date of the certificate 
 15.6   of registration shall be extended by a period of time equal to 
 15.7   the period or periods of active duty.  
 15.8      Sec. 19.  Minnesota Statutes 2002, section 154.07, as 
 15.9   amended by Laws 2003, chapter 130, section 12, is amended to 
 15.10  read: 
 15.11     154.07 [BARBER SCHOOLS; REQUIREMENTS.] 
 15.12     Subdivision 1.  [ADMISSION REQUIREMENTS; COURSE OF 
 15.13  INSTRUCTION.] No barber school shall be approved by the board 
 15.14  unless it requires, as a prerequisite to admission thereto, ten 
 15.15  grades of an approved school or its equivalent, as determined by 
 15.16  an examination conducted by the commissioner of education, which 
 15.17  shall issue a certificate that the student has passed the 
 15.18  required examination, and unless it requires, as a prerequisite 
 15.19  to graduation, a course of instruction of at least 1,500 hours, 
 15.20  of not more than eight hours in any one working day; such.  The 
 15.21  course of instruction to must include the following subjects:  
 15.22  scientific fundamentals for barbering,; hygiene,; practical 
 15.23  study of the hair, skin, muscles, and nerves,; structure of the 
 15.24  head, face, and neck,; elementary chemistry relating to 
 15.25  sterilization and antiseptics; diseases of the skin, hair, and 
 15.26  glands,; massaging and manipulating the muscles of the face and 
 15.27  neck,; haircutting,; shaving, and; trimming the beard; 
 15.28  bleaching, tinting and dyeing the hair,; and the chemical 
 15.29  straightening of hair. 
 15.30     Subd. 3.  [COSTS.] It shall be is permissible for barber 
 15.31  schools to make a reasonable charge for materials used and 
 15.32  services rendered by students for work done in such the schools 
 15.33  by students. 
 15.34     Subd. 3a.  [NUMBER OF INSTRUCTORS.] There shall must be one 
 15.35  registered instructor of barbering for every 17 students or 
 15.36  minor fraction in excess of 17.  No Instruction shall must not 
 16.1   be performed by persons not possessing a certificate of 
 16.2   registration as an instructor of barbering or a temporary permit 
 16.3   as an instructor of barbering. 
 16.4      Subd. 4.  [BUILDING REQUIREMENTS.] Each barber school shall 
 16.5   must be conducted and operated in one building, or in connecting 
 16.6   buildings, and no a barber school shall must not have any 
 16.7   department or branch in a building completely separated or 
 16.8   removed from the remainder of the barber school. 
 16.9      Subd. 5.  [OWNER'S REQUIREMENTS.] Any person may own and 
 16.10  operate a barber school if the person has had six years' 
 16.11  continuous experience as a barber, provided the person first 
 16.12  secures from the board an annual certificate of registration as 
 16.13  a barber school, keeps it prominently displayed, and before 
 16.14  commencing business: 
 16.15     (1) files with the secretary of state a bond to the state 
 16.16  approved by the attorney general in the sum of $25,000, 
 16.17  conditioned upon the faithful compliance of the barber school 
 16.18  with all the provisions herein sections 154.01 to 154.26, and to 
 16.19  pay all judgments that may be obtained against the school, or 
 16.20  the owners thereof, on account of fraud, misrepresentation, or 
 16.21  deceit practiced by them or their agents; and 
 16.22     (2) keeps prominently displayed on the exterior a 
 16.23  substantial sign indicating that the establishment is a barber 
 16.24  school. 
 16.25     Subd. 5a.  [STUDENT PERMITS.] All barber schools upon 
 16.26  receiving students shall immediately apply to the board for 
 16.27  student permits upon forms for that purpose furnished by the 
 16.28  board. 
 16.29     Subd. 5b.  [DESIGNATED OPERATOR.] When a person who owns a 
 16.30  barber school does not meet the requirements of this section to 
 16.31  operate a barber school, the owner shall notify the board in 
 16.32  writing and under oath of the identity of the person designated 
 16.33  to operate the barber school and shall notify the board of any 
 16.34  change of operator by telephone within 24 hours of such change, 
 16.35  exclusive of Saturdays, Sundays, and legal holidays, and shall 
 16.36  notify the board in writing and under oath within 72 hours of 
 17.1   such change. 
 17.2      Subd. 6.  [OPERATION BY TECHNICAL COLLEGE OR STATE 
 17.3   INSTITUTION.] A public technical college or a state institution 
 17.4   may operate a barber school provided it has in its employment a 
 17.5   qualified instructor holding a current certificate of 
 17.6   registration as a barber instructor and provided that it secures 
 17.7   from the board of Barber Examiners an annual certificate of 
 17.8   registration and does so in accordance with this chapter 
 17.9   sections 154.01 to 154.26 and the rules of the board for barber 
 17.10  schools but without the requirement to file a performance bond 
 17.11  with the secretary of state. 
 17.12     Sec. 20.  Minnesota Statutes 2002, section 154.08, is 
 17.13  amended to read: 
 17.14     154.08 [APPLICATION; FEE.] 
 17.15     Each applicant for an examination shall: 
 17.16     (1) make application to the Board of Barber and 
 17.17  Cosmetologist Examiners on blank forms prepared and furnished by 
 17.18  it, such the application to contain proof under the applicant's 
 17.19  oath of the particular qualifications of the applicant; 
 17.20     (2) furnish to the board two five inch x three inch signed 
 17.21  photographs of the applicant, one to accompany the application 
 17.22  and one to be returned to the applicant, to be presented to the 
 17.23  board when the applicant appears for examination; and 
 17.24     (3) pay to the board the required fee.  
 17.25     Sec. 21.  Minnesota Statutes 2002, section 154.11, is 
 17.26  amended to read: 
 17.27     154.11 [EXAMINATION OF NONRESIDENT BARBERS AND INSTRUCTORS 
 17.28  OF BARBERING; TEMPORARY APPRENTICE PERMITS.] 
 17.29     Subdivision 1.  [EXAMINATION OF NONRESIDENTS.] A person who 
 17.30  meets all of the requirements for licensure barber registration 
 17.31  in this chapter sections 154.01 to 154.26 and either has a 
 17.32  license, certificate of registration, or an equivalent as a 
 17.33  practicing barber or instructor of barbering from another state 
 17.34  or country which in the discretion of the board has 
 17.35  substantially the same requirements for licensing or registering 
 17.36  barbers and instructors of barbering as required by this chapter 
 18.1   sections 154.01 to 154.26 or can prove by sworn affidavits 
 18.2   practice as a barber or instructor of barbering in another state 
 18.3   or country for at least five years immediately prior to making 
 18.4   application in this state, shall, upon payment of the required 
 18.5   fee, be issued a certificate of registration without 
 18.6   examination, provided that the other state or country grants the 
 18.7   same privileges to holders of Minnesota certificates of 
 18.8   registration. 
 18.9      Subd. 2.  [TEMPORARY APPRENTICE PERMITS FOR NONRESIDENTS.] 
 18.10  Any person who qualifies for examination as a registered barber 
 18.11  under this section may apply for a temporary apprentice permit 
 18.12  which is effective no longer than six months.  All persons 
 18.13  holding a temporary apprentice permit are subject to all 
 18.14  provisions of this chapter sections 154.01 to 154.26 and the 
 18.15  rules adopted by the board under it those sections concerning 
 18.16  the conduct and obligations of registered apprentices. 
 18.17     Sec. 22.  Minnesota Statutes 2002, section 154.12, is 
 18.18  amended to read: 
 18.19     154.12 [EXAMINATION OF NONRESIDENT APPRENTICES.] 
 18.20     A person who meets all of the requirements for licensure 
 18.21  registration as a barber in this chapter sections 154.01 to 
 18.22  154.26 and who has a license, a certificate of registration, or 
 18.23  their its equivalent as an apprentice in a state or country 
 18.24  which in the discretion of the board has substantially the same 
 18.25  requirements for registration as an apprentice as is provided by 
 18.26  this chapter sections 154.01 to 154.26, shall, upon payment of 
 18.27  the required fee, be issued a certificate of registration 
 18.28  without examination, provided that the other state or country 
 18.29  grants the same privileges to holders of Minnesota certificates 
 18.30  of registration. 
 18.31     Sec. 23.  Minnesota Statutes 2002, section 154.161, 
 18.32  subdivision 2, is amended to read: 
 18.33     Subd. 2.  [LEGAL ACTIONS.] (a) When necessary to prevent an 
 18.34  imminent violation of a statute, rule, or order that the board 
 18.35  has adopted or issued or is empowered to enforce, the board, or 
 18.36  a complaint committee if authorized by the board, may bring an 
 19.1   action in the name of the state in the District Court of Ramsey 
 19.2   County in which jurisdiction is proper to enjoin the act or 
 19.3   practice and to enforce compliance with the statute, rule, or 
 19.4   order.  On a showing that a person has engaged in or is about to 
 19.5   engage in an act or practice that constitutes a violation of a 
 19.6   statute, rule, or order that the board has adopted or issued or 
 19.7   is empowered to enforce, the court shall grant a permanent or 
 19.8   temporary injunction, restraining order, or other appropriate 
 19.9   relief. 
 19.10     (b) For purposes of injunctive relief under this 
 19.11  subdivision, irreparable harm exists when the board shows that a 
 19.12  person has engaged in or is about to engage in an act or 
 19.13  practice that constitutes violation of a statute, rule, or order 
 19.14  that the board has adopted or issued or is empowered to enforce. 
 19.15     (c) Injunctive relief granted under paragraph (a) does not 
 19.16  relieve an enjoined person from criminal prosecution by a 
 19.17  competent authority, or from action by the board under 
 19.18  subdivision 3, 4, 5, or 6 with respect to the person's 
 19.19  license registration, certificate, or application for 
 19.20  examination, license registration, or renewal. 
 19.21     Sec. 24.  Minnesota Statutes 2002, section 154.161, 
 19.22  subdivision 4, is amended to read: 
 19.23     Subd. 4.  [LICENSE REGISTRATION ACTIONS.] (a) With respect 
 19.24  to a person who is a holder of or applicant for a licensee 
 19.25  registration or a shop registration card under this chapter 
 19.26  sections 154.01 to 154.26, the board may by order deny, refuse 
 19.27  to renew, suspend, temporarily suspend, or revoke the 
 19.28  application, certificate of registration, or shop registration 
 19.29  card, censure or reprimand the person, refuse to permit the 
 19.30  person to sit for examination, or refuse to release the person's 
 19.31  examination grades, if the board finds that such an order is in 
 19.32  the public interest and that, based on a preponderance of the 
 19.33  evidence presented, the person has: 
 19.34     (1) violated a statute, rule, or order that the board has 
 19.35  adopted or issued or is empowered to enforce; 
 19.36     (2) engaged in conduct or acts that are fraudulent, 
 20.1   deceptive, or dishonest, whether or not the conduct or acts 
 20.2   relate to the practice of barbering, if the fraudulent, 
 20.3   deceptive, or dishonest conduct or acts reflect adversely on the 
 20.4   person's ability or fitness to engage in the practice of 
 20.5   barbering; 
 20.6      (3) engaged in conduct or acts that constitute malpractice, 
 20.7   are negligent, demonstrate incompetence, or are otherwise in 
 20.8   violation of the standards in the rules of the board, where the 
 20.9   conduct or acts relate to the practice of barbering; 
 20.10     (4) employed fraud or deception in obtaining a certificate 
 20.11  of registration, shop registration card, renewal, or 
 20.12  reinstatement, or in passing all or a portion of the 
 20.13  examination; 
 20.14     (5) had a certificate of registration or shop registration 
 20.15  card, right to examine, or other similar authority revoked in 
 20.16  another jurisdiction; 
 20.17     (6) failed to meet any requirement for issuance or renewal 
 20.18  of the person's certificate of registration or shop registration 
 20.19  card; 
 20.20     (7) practiced as a barber while having an infectious or 
 20.21  contagious disease; 
 20.22     (8) advertised by means of false or deceptive statements; 
 20.23     (9) demonstrated intoxication or indulgence in the use of 
 20.24  drugs, including but not limited to narcotics as defined in 
 20.25  section 152.01 or in United States Code, title 26, section 4731, 
 20.26  barbiturates, amphetamines, benzedrine, dexedrine, or other 
 20.27  sedatives, depressants, stimulants, or tranquilizers; 
 20.28     (10) demonstrated unprofessional conduct or practice; 
 20.29     (11) permitted an employee or other person under the 
 20.30  person's supervision or control to practice as a registered 
 20.31  barber, registered apprentice, or registered instructor of 
 20.32  barbering unless that person has (i) a current certificate of 
 20.33  registration as a registered barber, registered apprentice, or 
 20.34  registered instructor of barbering, (ii) a temporary apprentice 
 20.35  permit, or (iii) a temporary permit as an instructor of 
 20.36  barbering; 
 21.1      (12) practices, offered to practice, or attempted to 
 21.2   practice by misrepresentation; 
 21.3      (13) failed to display a certificate of registration as 
 21.4   required by section 154.14; 
 21.5      (14) used any room or place of barbering that is also used 
 21.6   for any other purpose, or used any room or place of barbering 
 21.7   that violates the board's rules governing sanitation; 
 21.8      (15) in the case of a barber, apprentice, or other person 
 21.9   working in or in charge of any barber shop, or any person in a 
 21.10  barber school engaging in the practice of barbering, failed to 
 21.11  use separate and clean towels for each customer or patron, or to 
 21.12  discard and launder each towel after being used once; 
 21.13     (16) in the case of a barber or other person in charge of 
 21.14  any barber shop or barber school, (i) failed to supply in a 
 21.15  sanitary manner clean hot and cold water in quantities necessary 
 21.16  to conduct the shop or barbering service for the school, (ii) 
 21.17  failed to have water and sewer connections from the shop or 
 21.18  barber school with municipal water and sewer systems where they 
 21.19  are available for use, or (iii) failed or refused to maintain a 
 21.20  receptacle for hot water of a capacity of at least five gallons; 
 21.21     (17) refused to permit the board to make an inspection 
 21.22  permitted or required by this chapter sections 154.01 to 154.26, 
 21.23  or failed to provide the board or the attorney general on behalf 
 21.24  of the board with any documents or records they request; 
 21.25     (18) failed promptly to renew a certificate of registration 
 21.26  or shop registration card when remaining in practice, pay the 
 21.27  required fee, or issue a worthless check; 
 21.28     (19) failed to supervise a registered apprentice or 
 21.29  temporary apprentice, or permitted the practice of barbering by 
 21.30  a person not registered with the board or not holding a 
 21.31  temporary permit; 
 21.32     (20) refused to serve a customer because of race, color, 
 21.33  creed, religion, disability, national origin, or sex; 
 21.34     (21) failed to comply with a provision of chapter 141 or a 
 21.35  provision of another chapter that relates to barber schools; or 
 21.36     (22) with respect to temporary suspension orders, has 
 22.1   committed an act, engaged in conduct, or committed practices 
 22.2   that the board, or complaint committee if authorized by the 
 22.3   board, has determined may result or may have resulted in an 
 22.4   immediate threat to the public. 
 22.5      (b) In lieu of or in addition to any remedy under paragraph 
 22.6   (a), the board may as a condition of continued registration, 
 22.7   termination of suspension, reinstatement of registration, 
 22.8   examination, or release of examination results, require that the 
 22.9   person: 
 22.10     (1) submit to a quality review of the person's ability, 
 22.11  skills, or quality of work, conducted in a manner and by a 
 22.12  person or entity that the board determines; or 
 22.13     (2) complete to the board's satisfaction continuing 
 22.14  education as the board requires. 
 22.15     (c) Service of an order under this subdivision is effective 
 22.16  if the order is served personally on, or is served by certified 
 22.17  mail to the most recent address provided to the board by, the 
 22.18  licensee, certificate holder, applicant, or counsel of record.  
 22.19  The order must state the reason for the entry of the order. 
 22.20     (d) Except as provided in subdivision 5, paragraph (c), all 
 22.21  hearings under this subdivision must be conducted in accordance 
 22.22  with the Administrative Procedure Act. 
 22.23     Sec. 25.  Minnesota Statutes 2002, section 154.161, 
 22.24  subdivision 5, is amended to read: 
 22.25     Subd. 5.  [TEMPORARY SUSPENSION.] (a) When the board, or 
 22.26  complaint committee if authorized by the board, issues a 
 22.27  temporary suspension order, the suspension provided for in the 
 22.28  order is effective on service of a written copy of the order on 
 22.29  the licensee, certificate holder, or counsel of record.  The 
 22.30  order must specify the statute, rule, or order violated by the 
 22.31  licensee or certificate holder.  The order remains in effect 
 22.32  until the board issues a final order in the matter after a 
 22.33  hearing, or on agreement between the board and the licensee or 
 22.34  certificate holder. 
 22.35     (b) An order under this subdivision may (1) prohibit the 
 22.36  licensee or certificate holder from engaging in the practice of 
 23.1   barbering in whole or in part, as the facts require, and (2) 
 23.2   condition the termination of the suspension on compliance with a 
 23.3   statute, rule, or order that the board has adopted or issued or 
 23.4   is empowered to enforce.  The order must state the reasons for 
 23.5   entering the order and must set forth the right to a hearing as 
 23.6   provided in this subdivision. 
 23.7      (c) Within ten days after service of an order under this 
 23.8   subdivision the licensee or certificate holder may request a 
 23.9   hearing in writing.  The board must hold a hearing before its 
 23.10  own members within five working days of the request for a 
 23.11  hearing.  The sole issue at such a hearing must be whether there 
 23.12  is a reasonable basis to continue, modify, or terminate the 
 23.13  temporary suspension.  The hearing is not subject to the 
 23.14  Administrative Procedure Act.  Evidence presented to the board 
 23.15  or the licensee or certificate holder may be in affidavit form 
 23.16  only.  The licensee, certificate holder, or counsel of record 
 23.17  may appear for oral argument. 
 23.18     (d) Within five working days after the hearing, the board 
 23.19  shall issue its order and, if the order continues the 
 23.20  suspension, shall schedule a contested case hearing within 30 
 23.21  days of the issuance of the order.  Notwithstanding any rule to 
 23.22  the contrary, the administrative law judge shall issue a report 
 23.23  within 30 days after the closing of the contested case hearing 
 23.24  record.  The board shall issue a final order within 30 days of 
 23.25  receiving the report. 
 23.26     Sec. 26.  Minnesota Statutes 2002, section 154.161, 
 23.27  subdivision 7, is amended to read: 
 23.28     Subd. 7.  [REINSTATEMENT.] The board may reinstate a 
 23.29  suspended, revoked, or surrendered certificate of registration 
 23.30  or shop registration card, on petition of the former or 
 23.31  suspended registrant.  The board may in its sole discretion 
 23.32  place any conditions on reinstatement of a suspended, revoked, 
 23.33  or surrendered certificate of registration or shop registration 
 23.34  card that it finds appropriate and necessary to ensure that the 
 23.35  purposes of this chapter sections 154.01 to 154.26 are met.  No 
 23.36  certificate of registration or shop registration card may be 
 24.1   reinstated until the former registrant has completed at least 
 24.2   one-half of the suspension period. 
 24.3      Sec. 27.  Minnesota Statutes 2002, section 154.18, is 
 24.4   amended to read: 
 24.5      154.18 [FEES.] 
 24.6      (a) The fees collected, as required in this chapter, 
 24.7   chapter 214, and the rules of the board, shall be paid in 
 24.8   advance by September 1 of the year in which they are due to the 
 24.9   executive secretary of the board.  The executive secretary shall 
 24.10  deposit the fees in the general fund in the state treasury, to 
 24.11  be disbursed by the executive secretary on the order of the 
 24.12  chair in payment of expenses lawfully incurred by the board. 
 24.13     (b) The board shall charge the following fees:  
 24.14     (1) examination and certificate, registered barber, $65; 
 24.15     (2) examination and certificate, apprentice, $60; 
 24.16     (3) examination, instructor, $160; 
 24.17     (4) certificate, instructor, $45; 
 24.18     (5) temporary teacher or apprentice permit, $50; 
 24.19     (6) renewal of license, registered barber, $50; 
 24.20     (7) renewal of license, apprentice, $45; 
 24.21     (8) renewal of license, instructor, $60; 
 24.22     (9) renewal of temporary teacher permit, $35; 
 24.23     (10) student permit, $25; 
 24.24     (11) initial shop registration, $60; 
 24.25     (12) initial school registration, $1,010; 
 24.26     (13) renewal shop registration, $60; 
 24.27     (14) renewal school registration, $260; 
 24.28     (15) restoration of registered barber license, $75; 
 24.29     (16) restoration of apprentice license, $70; 
 24.30     (17) restoration of shop registration, $85; 
 24.31     (18) change of ownership or location, $35; 
 24.32     (19) duplicate license, $20; and 
 24.33     (20) home study course, $75. 
 24.34     Sec. 28.  Minnesota Statutes 2002, section 154.19, is 
 24.35  amended to read: 
 24.36     154.19 [VIOLATIONS.] 
 25.1      Each of the following constitutes a misdemeanor: 
 25.2      (1) The violation of any of the provisions of section 
 25.3   154.01; 
 25.4      (2) Permitting any person in one's employ, supervision, or 
 25.5   control to practice as a registered barber or registered 
 25.6   apprentice unless that person has a certificate of registration 
 25.7   as a registered barber or registered apprentice; 
 25.8      (3) Obtaining or attempting to obtain a certificate of 
 25.9   registration for money other than the required fee, or any other 
 25.10  thing of value, or by fraudulent misrepresentation; 
 25.11     (4) Practicing or attempting to practice by fraudulent 
 25.12  misrepresentation; 
 25.13     (5) The willful failure to display a certificate of 
 25.14  registration as required by section 154.14; 
 25.15     (6) The use of any room or place for barbering which is 
 25.16  also used for residential or business purposes, except the sale 
 25.17  of hair tonics, lotions, creams, cutlery, toilet articles, 
 25.18  cigars, tobacco, candies in original package, and such 
 25.19  commodities as are used and sold in barber shops, and except 
 25.20  that shoe-shining and an agency for the reception and delivery 
 25.21  of laundry, or either, may be conducted in a barber shop without 
 25.22  the same being construed as a violation of this section, unless 
 25.23  a substantial partition of ceiling height separates the portion 
 25.24  used for residential or business purposes, and where a barber 
 25.25  shop is situated in a residence, poolroom, confectionery, store, 
 25.26  restaurant, garage, clothing store, liquor store, hardware 
 25.27  store, or soft drink parlor, there must be an outside entrance 
 25.28  leading into the barber shop independent of any entrance leading 
 25.29  into such business establishment, except that this provision as 
 25.30  to an outside entrance shall not apply to barber shops in 
 25.31  operation at the time of the passage of this chapter section and 
 25.32  except that a barber shop and beauty parlor may be operated in 
 25.33  conjunction, without the same being separated by partition of 
 25.34  ceiling height; 
 25.35     (7) The failure or refusal of any barber or other person in 
 25.36  charge of any barber shop, or any person in barber schools or 
 26.1   colleges doing barber service work, to use separate and clean 
 26.2   towels for each customer or patron, or to discard and launder 
 26.3   each towel after once being used; 
 26.4      (8) The failure or refusal by any barber or other person in 
 26.5   charge of any barber shop or barber school or barber college to 
 26.6   supply clean hot and cold water in such quantities as may be 
 26.7   necessary to conduct such shop, or the barbering service of such 
 26.8   school or college, in a sanitary manner, or the failure or 
 26.9   refusal of any such person to have water and sewer connections 
 26.10  from such shop, or barber school or college, with municipal 
 26.11  water and sewer systems where the latter are available for use, 
 26.12  or the failure or refusal of any such person to maintain a 
 26.13  receptacle for hot water of a capacity of not less than five 
 26.14  gallons; 
 26.15     (9) For the purposes of this chapter sections 154.01 to 
 26.16  154.26, barbers, students, apprentices, or the proprietor or 
 26.17  manager of a barber shop, or barber school or barber college, 
 26.18  shall be responsible for all violations of the sanitary 
 26.19  provisions of this chapter sections 154.01 to 154.26, and if any 
 26.20  barber shop, or barber school or barber college, upon 
 26.21  inspection, shall be found to be in an unsanitary condition, the 
 26.22  person making such inspection shall immediately issue an order 
 26.23  to place the barber shop, or barber school, or barber college, 
 26.24  in a sanitary condition, in a manner and within a time 
 26.25  satisfactory to the Board of Barber and Cosmetologist Examiners, 
 26.26  and for the failure to comply with such order the board shall 
 26.27  immediately file a complaint for the arrest of the persons upon 
 26.28  whom the order was issued, and any licensed registered barber 
 26.29  who shall fail to comply with the rules adopted by the Board of 
 26.30  Barber and Cosmetologist Examiners, with the approval of the 
 26.31  state commissioner of health, or the violation or commission of 
 26.32  any of the offenses described in section 154.16, clauses (1), 
 26.33  (2), (3), (4), (5), (6), (7), (8), (9), and of clauses (1), (2), 
 26.34  (3), (4), (5), (6), (7), (8), and (9) of this section, shall be 
 26.35  fined not less than $10 or imprisoned for ten days and not more 
 26.36  than $100 or imprisoned for 90 days. 
 27.1      Sec. 29.  Minnesota Statutes 2002, section 154.21, is 
 27.2   amended to read: 
 27.3      154.21 [PERJURY.] 
 27.4      The willful making of any false statement as to a material 
 27.5   matter in any oath or affidavit which is required by the 
 27.6   provisions of this chapter sections 154.01 to 154.26 is perjury 
 27.7   and punishable as such.  
 27.8      Sec. 30.  Minnesota Statutes 2002, section 154.22, is 
 27.9   amended to read: 
 27.10     154.22 [BOARD OF BARBER AND COSMETOLOGIST EXAMINERS 
 27.11  CREATED; TERMS.] 
 27.12     (a) A Board of Barber and Cosmetologist Examiners is 
 27.13  established to consist of four three barber members, three 
 27.14  cosmetologist members, and one public member, as defined in 
 27.15  section 214.02, appointed by the governor.  Three of such 
 27.16     (b) The barber members shall be persons who have practiced 
 27.17  as a registered barber barbers in this state for at least five 
 27.18  years immediately prior to their appointment; shall be graduates 
 27.19  from the 12th grade of a high school or have equivalent 
 27.20  education, and shall have knowledge of the matters to be taught 
 27.21  in registered barber schools, as set forth in section 
 27.22  154.07.  The remaining member of the board shall be a public 
 27.23  member as defined by section 214.02.  One of the members shall 
 27.24  be a member of, or recommended by, a union of journeymen barbers 
 27.25  which shall have that has existed at least two years, and one 
 27.26  shall be a member of, or recommended by, a professional 
 27.27  organization of barbers. 
 27.28     (c) All members must be currently licensed in the state of 
 27.29  Minnesota, have practiced in the licensed occupation for at 
 27.30  least five years immediately prior to their appointment, be 
 27.31  graduates from the 12th grade of high school or have equivalent 
 27.32  education, and have knowledge of sections 155A.01 to 155A.16 and 
 27.33  Minnesota Rules, chapters 2642 and 2644.  The members shall be 
 27.34  members of, or recommended by, a professional organization of 
 27.35  cosmetologists, manicurists, or estheticians. 
 27.36     (d) Membership terms, compensation of members, removal of 
 28.1   members, the filling of membership vacancies, and fiscal year 
 28.2   and reporting requirements shall be as provided in sections 
 28.3   214.07 to 214.09.  The provision of staff, administrative 
 28.4   services and office space; the review and processing of 
 28.5   complaints; the setting of board fees; and other provisions 
 28.6   relating to board operations shall be as provided in chapter 214.
 28.7      (e) Members appointed to fill vacancies caused by death, 
 28.8   resignation, or removal shall serve during the unexpired term of 
 28.9   their predecessors. 
 28.10     (f) The barber members of the board shall separately 
 28.11  oversee administration, enforcement, and regulation of, and 
 28.12  adoption of rules under, sections 154.01 to 154.26.  The 
 28.13  cosmetologist members of the board shall separately oversee 
 28.14  administration, enforcement, and regulation of, and adoption of 
 28.15  rules under, sections 155A.01 to 155A.16.  Staff hired by the 
 28.16  board, including inspectors, shall serve both professions. 
 28.17     Sec. 31.  Minnesota Statutes 2002, section 154.23, is 
 28.18  amended to read: 
 28.19     154.23 [OFFICERS; COMPENSATION; FEES; EXPENSES.] 
 28.20     The Board of Barber and Cosmetologist Examiners shall 
 28.21  annually elect a chair and secretary.  It shall adopt and use a 
 28.22  common seal for the authentication of its orders and records.  
 28.23  The board shall appoint an executive secretary who shall not be 
 28.24  a member of the board and who shall be in the unclassified civil 
 28.25  service. 
 28.26     The executive secretary shall keep a record of all 
 28.27  proceedings of the board.  The expenses of administering 
 28.28  sections 154.01 to 154.26 this chapter shall be paid from the 
 28.29  appropriations made to the Board of Barber and Cosmetologist 
 28.30  Examiners. 
 28.31     Each member of the board shall take the oath provided by 
 28.32  law for public officers. 
 28.33     A majority of the board, in meeting assembled, may perform 
 28.34  and exercise all the duties and powers devolving upon the board. 
 28.35     The members of the board shall receive compensation for 
 28.36  each day spent on board activities, but not to exceed 20 days in 
 29.1   any calendar month nor 100 days in any calendar year. 
 29.2      The board shall have authority to employ such inspectors, 
 29.3   clerks, deputies, and other assistants as it may deem necessary 
 29.4   to carry out the provisions of this chapter. 
 29.5      Sec. 32.  Minnesota Statutes 2002, section 154.24, is 
 29.6   amended to read: 
 29.7      154.24 [RULES.] 
 29.8      The Board of Barber and Cosmetologist Examiners shall have 
 29.9   authority to make reasonable rules for the administration of the 
 29.10  provisions of this chapter sections 154.01 to 154.26 and 
 29.11  prescribe sanitary requirements for barber shops and barber 
 29.12  schools, subject to the approval of the state commissioner of 
 29.13  health.  Any member of the board, or its agents or assistants, 
 29.14  shall have authority to enter upon and to inspect any barber 
 29.15  shop or barber school at any time during business hours.  A copy 
 29.16  of the rules adopted by the board shall be furnished by it to 
 29.17  the owner or manager of each barber shop or barber school and 
 29.18  such copy shall be posted in a conspicuous place in such barber 
 29.19  shop or barber school. 
 29.20     The board shall keep a record of its proceedings relating 
 29.21  to the issuance, refusal, renewal, suspension, and revocation of 
 29.22  certificates of registration.  This record shall contain the 
 29.23  name, place of business and residence of each registered barber 
 29.24  and registered apprentice, and the date and number of the 
 29.25  certificate of registration.  This record shall be open to 
 29.26  public inspection at all reasonable times. 
 29.27     Sec. 33.  Minnesota Statutes 2002, section 154.25, is 
 29.28  amended to read: 
 29.29     154.25 [NOT TO SERVE CERTAIN PERSONS.] 
 29.30     No person practicing the occupation of a barber in any 
 29.31  barber shop, barber school, or college in this state shall 
 29.32  knowingly serve a person afflicted, in a dangerous or infectious 
 29.33  state of the disease, with erysipelas, eczema, impetigo, 
 29.34  sycosis, tuberculosis, or any other contagious or infectious 
 29.35  disease.  Any person so afflicted is hereby prohibited from 
 29.36  being served in any barber shop, barber school, or college in 
 30.1   this state.  Any violation of this section shall be considered a 
 30.2   misdemeanor as provided for in this chapter sections 154.01 to 
 30.3   154.26.  
 30.4      Sec. 34.  Minnesota Statutes 2002, section 155A.01, is 
 30.5   amended to read: 
 30.6      155A.01 [POLICY.] 
 30.7      The legislature finds that the health and safety of the 
 30.8   people of the state are served by the licensing of the practice 
 30.9   of cosmetology because of the use of chemicals, apparatus, and 
 30.10  other appliances requiring special skills and education.  
 30.11     To this end, the public will best be served by vesting 
 30.12  these responsibilities in the commissioner of commerce Board of 
 30.13  Barber and Cosmetologist Examiners. 
 30.14     Sec. 35.  Minnesota Statutes 2002, section 155A.02, is 
 30.15  amended to read: 
 30.16     155A.02 [PROHIBITION; LIMITATION.] 
 30.17     It shall be unlawful for any person to engage in 
 30.18  cosmetology, or to conduct or operate a cosmetology school or 
 30.19  salon, except as hereinafter provided in sections 155A.03 to 
 30.20  155A.16.  
 30.21     Sec. 36.  Minnesota Statutes 2002, section 155A.03, 
 30.22  subdivision 1, is amended to read: 
 30.23     Subdivision 1.  [TERMS.] For purposes of this chapter 
 30.24  sections 155A.03 to 155A.26, and unless the context clearly 
 30.25  requires otherwise, the words defined in this section have the 
 30.26  meanings given them.  
 30.27     Sec. 37.  Minnesota Statutes 2002, section 155A.03, is 
 30.28  amended by adding a subdivision to read: 
 30.29     Subd. 1a.  [BOARD.] "Board" means the Board of Barber and 
 30.30  Cosmetologist Examiners. 
 30.31     Sec. 38.  Minnesota Statutes 2002, section 155A.03, 
 30.32  subdivision 2, is amended to read: 
 30.33     Subd. 2.  [COSMETOLOGY.] "Cosmetology" is the practice of 
 30.34  personal services, for compensation, for the cosmetic care of 
 30.35  the hair, nails, and skin.  These services include cleaning, 
 30.36  conditioning, shaping, reinforcing, coloring and enhancing the 
 31.1   body surface in the areas of the head, scalp, face, arms, hands, 
 31.2   legs, and feet, except where these services are performed by a 
 31.3   licensed barber under chapter 154 sections 154.01 to 154.26.  
 31.4      Sec. 39.  Minnesota Statutes 2002, section 155A.03, is 
 31.5   amended by adding a subdivision to read: 
 31.6      Subd. 4a.  [LICENSED PRACTICE.] "Licensed practice" means 
 31.7   the practice of cosmetology in a licensed salon or the practice 
 31.8   of an esthetician in a licensed physician's office. 
 31.9      Sec. 40.  Minnesota Statutes 2002, section 155A.03, 
 31.10  subdivision 7, is amended to read: 
 31.11     Subd. 7.  [SALON.] A "salon" is an area, room, or rooms 
 31.12  employed to offer personal services, as defined in subdivision 2.
 31.13  "Salon" does not include the home of a customer but the 
 31.14  commissioner board may adopt health and sanitation rules 
 31.15  governing practice in the homes of customers.  
 31.16     Sec. 41.  Minnesota Statutes 2002, section 155A.045, 
 31.17  subdivision 1, is amended to read: 
 31.18     Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
 31.19  is as follows: 
 31.20     (a) Three-year license fees: 
 31.21     (1) cosmetologist, manicurist, esthetician, $45 $90 for 
 31.22  each initial license, and $30 $60 for each renewal; 
 31.23     (2) instructor, manager, $60 $120 for each initial license, 
 31.24  and $45 $90 for each renewal; 
 31.25     (3) licensed physician's office, $130 for each initial 
 31.26  license, and $100 for each renewal; 
 31.27     (4) salon, $65 $130 for each initial license, and 
 31.28  $50 $100 for each renewal; and 
 31.29     (4) (5) school, $750 $1,500. 
 31.30     (b) Penalties: 
 31.31     (1) reinspection fee, variable; and 
 31.32     (2) manager with lapsed practitioner, $25. 
 31.33     (c) Administrative fees: 
 31.34     (1) certificate of identification, $20; and 
 31.35     (2) school original application, $150. 
 31.36     (d) All fees established in this subdivision must be paid 
 32.1   to the executive secretary of the board on or before September 1 
 32.2   of the year in which they become due.  The executive secretary 
 32.3   of the board shall deposit the fees in the general fund in the 
 32.4   state treasury, to be disbursed by the executive secretary on 
 32.5   the order of the chair in payment of expenses lawfully incurred 
 32.6   by the board.  
 32.7      Sec. 42.  Minnesota Statutes 2002, section 155A.05, is 
 32.8   amended to read: 
 32.9      155A.05 [RULES.] 
 32.10     The commissioner board may develop and adopt rules 
 32.11  according to chapter 14 that the commissioner board considers 
 32.12  necessary to carry out this chapter sections 155A.01 to 155A.16. 
 32.13     Sec. 43.  Minnesota Statutes 2002, section 155A.07, 
 32.14  subdivision 2, is amended to read: 
 32.15     Subd. 2.  [QUALIFICATIONS.] Qualifications for licensing in 
 32.16  each classification shall be determined by the 
 32.17  commissioner board and established by rule, and shall include 
 32.18  educational and experiential prerequisites.  The rules shall 
 32.19  require a demonstrated knowledge of procedures necessary to 
 32.20  protect the health of the practitioner and the consumer of 
 32.21  cosmetology services, including but not limited to chemical 
 32.22  applications.  
 32.23     Sec. 44.  Minnesota Statutes 2002, section 155A.07, 
 32.24  subdivision 8, is amended to read: 
 32.25     Subd. 8.  [EXEMPTIONS.] Persons licensed to provide 
 32.26  cosmetology services in other states visiting this state for 
 32.27  cosmetology demonstrations shall be exempted from the licensing 
 32.28  provisions of this chapter sections 155A.01 to 155A.16 if 
 32.29  services to consumers are in the physical presence of a licensed 
 32.30  cosmetologist.  
 32.31     Sec. 45.  Minnesota Statutes 2002, section 155A.07, is 
 32.32  amended by adding a subdivision to read: 
 32.33     Subd. 10.  [NONRESIDENT LICENSES.] A nonresident 
 32.34  cosmetologist, manicurist, or esthetician may be licensed in 
 32.35  Minnesota if the individual has completed cosmetology school in 
 32.36  a state or country with the same or greater school hour 
 33.1   requirements, has an active license in that state or country, 
 33.2   and has passed the Minnesota-specific written operator 
 33.3   examination for cosmetologist, manicurist, or esthetician.  If a 
 33.4   test is used to verify the qualifications of trained 
 33.5   cosmetologists, the test should be translated into their native 
 33.6   language within the limits of available resources.  Licenses 
 33.7   shall not be issued under this subdivision for managers or 
 33.8   instructors. 
 33.9      Sec. 46.  Minnesota Statutes 2002, section 155A.08, 
 33.10  subdivision 1, is amended to read: 
 33.11     Subdivision 1.  [LICENSING.] Any person who offers 
 33.12  cosmetology services for compensation in this state shall be 
 33.13  licensed as a salon if not employed by another licensed salon or 
 33.14  as an esthetician in a licensed physician's area.  
 33.15     Sec. 47.  Minnesota Statutes 2002, section 155A.08, 
 33.16  subdivision 2, is amended to read: 
 33.17     Subd. 2.  [REQUIREMENTS.] (a) The conditions and process by 
 33.18  which a salon is licensed shall be established by the 
 33.19  commissioner board by rule.  In addition to those requirements, 
 33.20  no license shall be issued unless the commissioner board first 
 33.21  determines that paragraphs (a) to (e) the conditions in clauses 
 33.22  (1) to (5) have been satisfied:  
 33.23     (a) (1) compliance with all local and state laws, 
 33.24  particularly relating to matters of sanitation, health, and 
 33.25  safety; 
 33.26     (b) (2) the employment of a manager, as defined in section 
 33.27  155A.03, subdivision 6; 
 33.28     (c) (3) inspection and licensing prior to the commencing of 
 33.29  business; 
 33.30     (d) (4) if applicable, evidence of compliance with section 
 33.31  176.182; and 
 33.32     (e) (5) evidence of continued professional liability 
 33.33  insurance coverage of at least $25,000 for each claim and 
 33.34  $50,000 total coverage for each policy year for each operator.  
 33.35     (b) A licensed esthetician or manicurist who complies with 
 33.36  the health, safety, sanitation, inspection, and insurance rules 
 34.1   promulgated by the commissioner board to operate a salon solely 
 34.2   for the performance of those personal services defined in 
 34.3   section 155A.03, subdivision 4, in the case of an esthetician, 
 34.4   or subdivision 5, in the case of a manicurist. 
 34.5      Sec. 48.  Minnesota Statutes 2002, section 155A.08, 
 34.6   subdivision 3, is amended to read: 
 34.7      Subd. 3.  [HEALTH AND SANITARY STANDARDS.] Minimum health 
 34.8   and sanitary standards for the operation of a salon shall be 
 34.9   established by rule.  A salon shall not be located in a room 
 34.10  used for residential purposes.  If a salon is in the residence 
 34.11  of a person practicing cosmetology, the rooms used for the 
 34.12  practice of cosmetology shall be completely partitioned off from 
 34.13  the living quarters.  The salon may be inspected as often as the 
 34.14  commissioner board considers necessary to affirm compliance.  
 34.15     Sec. 49.  Minnesota Statutes 2002, section 155A.09, is 
 34.16  amended to read: 
 34.17     155A.09 [SCHOOLS.] 
 34.18     Subdivision 1.  [LICENSING.] Any person who establishes or 
 34.19  conducts a school in this state shall be licensed.  
 34.20     Subd. 2.  [STANDARDS.] The commissioner board shall by rule 
 34.21  establish minimum standards of course content and length 
 34.22  specific to the educational preparation prerequisite to testing 
 34.23  and licensing as cosmetologist, esthetician, and manicurist.  
 34.24     Subd. 3.  [APPLICATIONS.] Application for a license shall 
 34.25  be prepared on forms furnished by the commissioner board and 
 34.26  shall contain the following and such other information as may be 
 34.27  required:  
 34.28     (a) (1) The name of the school, together with ownership and 
 34.29  controlling officers, members, and managing employees and 
 34.30  commissioner; 
 34.31     (b) (2) The specific fields of instruction which will be 
 34.32  offered and reconciliation of the course content and length to 
 34.33  meet the minimum standards, as prescribed in subdivision 2; 
 34.34     (c) (3) The place or places where instruction will be 
 34.35  given; 
 34.36     (d) (4) A listing of the equipment available for 
 35.1   instruction in each course offered; 
 35.2      (e) (5) The maximum enrollment to be accommodated; 
 35.3      (f) (6) A listing of instructors, all of whom shall be 
 35.4   licensed as provided in section 155A.07, subdivision 2, except 
 35.5   that any school may use occasional instructors or lecturers who 
 35.6   would add to the general or specialized knowledge of the 
 35.7   students but who need not be licensed; 
 35.8      (g) (7) A current balance sheet, income statement or 
 35.9   documentation to show sufficient financial worth and 
 35.10  responsibility to properly conduct a school and to assure 
 35.11  financial resources ample to meet the school's financial 
 35.12  obligations; 
 35.13     (h) (8) Other financial guarantees which would assure 
 35.14  protection of the public as determined by rule; and 
 35.15     (i) (9) A copy of all written material which the school 
 35.16  uses to solicit prospective students, including but not limited 
 35.17  to a tuition and fee schedule, and all catalogues, brochures and 
 35.18  other recruitment advertisements.  Each school shall annually, 
 35.19  on a date determined by the commissioner board, file with 
 35.20  the director board any new or amended materials which it has 
 35.21  distributed during the past year.  
 35.22     Subd. 4.  [VERIFICATION OF APPLICATION.] Each application 
 35.23  shall be signed and certified to under oath by the proprietor if 
 35.24  the applicant is a proprietorship, by the managing partner if 
 35.25  the applicant is a partnership, or by the authorized officers of 
 35.26  the applicant if the applicant is a corporation, association, 
 35.27  company, firm, society or trust.  
 35.28     Subd. 5.  [CONDITIONS PRECEDENT TO ISSUANCE.] No A license 
 35.29  shall must not be issued unless the commissioner board first 
 35.30  determines: 
 35.31     (a) that the applicant has met the requirements in clauses 
 35.32  (1) to (8). 
 35.33     (1) The applicant has must have a sound financial condition 
 35.34  with sufficient resources available to meet the school's 
 35.35  financial obligations; to refund all tuition and other charges, 
 35.36  within a reasonable period of time, in the event of dissolution 
 36.1   of the school or in the event of any justifiable claims for 
 36.2   refund against the school; to provide adequate service to its 
 36.3   students and prospective students; and for the to maintain 
 36.4   proper use and support of the school to be maintained;. 
 36.5      (b) That (2) The applicant has must have satisfactory 
 36.6   training facilities with sufficient tools and equipment and the 
 36.7   necessary number of work stations to adequately train the 
 36.8   students currently enrolled, and those proposed to be enrolled;. 
 36.9      (c) That (3) The applicant employs must employ a sufficient 
 36.10  number of qualified instructors trained by experience and 
 36.11  education to give the training contemplated;. 
 36.12     (d) That (4) The premises and conditions under which the 
 36.13  students work and study are must be sanitary, healthful, and 
 36.14  safe according to modern standards;. 
 36.15     (e) That (5) Each occupational course or program of 
 36.16  instruction or study shall must be of such quality and content 
 36.17  as to provide education and training which will adequately 
 36.18  prepare enrolled students for testing, licensing, and entry 
 36.19  level positions as a cosmetologist, esthetician, or manicurist;. 
 36.20     (f) Evidence of (6) The school's school must have coverage 
 36.21  by professional liability insurance of at least $25,000 per 
 36.22  incident and an accumulation of $150,000 for each premium year;. 
 36.23     (g) (7) The applicant shall provide evidence of the 
 36.24  school's compliance with section 176.182; and. 
 36.25     (h) (8) The applicant, except the state and its political 
 36.26  subdivisions as described in section 471.617, subdivision 1, 
 36.27  shall file with the commissioner board a continuous corporate 
 36.28  surety bond in the amount of $10,000, conditioned upon the 
 36.29  faithful performance of all contracts and agreements with 
 36.30  students made by the applicant.  The bond shall run to the state 
 36.31  of Minnesota and to any person who may have a cause of action 
 36.32  against the applicant arising at any time after the bond is 
 36.33  filed and before it is canceled for breach of any contract or 
 36.34  agreement made by the applicant with any student.  The aggregate 
 36.35  liability of the surety for all breaches of the conditions of 
 36.36  the bond shall not exceed $10,000.  The surety of the bond may 
 37.1   cancel it upon giving 60 days' notice in writing to 
 37.2   the commissioner board and shall be relieved of liability for 
 37.3   any breach of condition occurring after the effective date of 
 37.4   cancellation. 
 37.5      Subd. 6.  [FEES; RENEWALS.] (a) Applications for initial 
 37.6   license under this chapter sections 155A.01 to 155A.16 shall be 
 37.7   accompanied by a nonrefundable application fee set forth in 
 37.8   section 155A.045.  
 37.9      (b) License duration shall be three years.  Each renewal 
 37.10  application shall be accompanied by a nonrefundable renewal fee 
 37.11  set forth in section 155A.045.  
 37.12     (c) Application for renewal of license shall be made as 
 37.13  provided in rules adopted by the commissioner board and on forms 
 37.14  supplied by the commissioner board.  
 37.15     Subd. 7.  [INSPECTIONS.] All schools may be inspected as 
 37.16  often as the commissioner board considers necessary to affirm 
 37.17  compliance.  The commissioner board shall have the authority to 
 37.18  assess the cost of the inspection to the school.  
 37.19     Subd. 8.  [LIST OF LICENSED SCHOOLS; AVAILABILITY.] The 
 37.20  commissioner board shall maintain and make available to the 
 37.21  public a list of licensed schools.  
 37.22     Subd. 9.  [SEPARATION OF SCHOOL AND PROFESSIONAL 
 37.23  DEPARTMENTS.] A school shall display in the entrance reception 
 37.24  room of its student section a sign prominently and conspicuously 
 37.25  indicating that all work therein is done exclusively by 
 37.26  students.  Professional departments of a school shall be run as 
 37.27  entirely separate and distinct businesses and shall have 
 37.28  separate entrances.  
 37.29     Nothing contained in this chapter sections 155A.01 to 
 37.30  155A.16 shall prevent a school from charging for student work 
 37.31  done in the school to cover the cost of materials used and 
 37.32  expenses incurred in and for the operation of the school.  All 
 37.33  of the student work shall be prominently and conspicuously 
 37.34  advertised and held forth as being student work and not 
 37.35  otherwise.  
 37.36     Subd. 10.  [DISCRIMINATION PROHIBITED.] No school, duly 
 38.1   approved under this chapter sections 155A.01 to 155A.16, shall 
 38.2   refuse to teach any student, otherwise qualified, on account of 
 38.3   race, sex, creed, color, citizenship, national origin, or sexual 
 38.4   preference.  
 38.5      Sec. 50.  Minnesota Statutes 2002, section 155A.095, is 
 38.6   amended to read: 
 38.7      155A.095 [INSPECTIONS.] 
 38.8      The commissioner board is responsible for inspecting salons 
 38.9   and schools licensed pursuant to this chapter sections 155A.01 
 38.10  to 155A.16 to assure compliance with the requirements of this 
 38.11  chapter sections 155A.01 to 155A.16.  The commissioner board 
 38.12  shall direct department board resources first to the inspection 
 38.13  of those licensees who fail to meet the requirements of law, 
 38.14  have indicated that they present a greater risk to the public, 
 38.15  or have otherwise, in the opinion of the commissioner board, 
 38.16  demonstrated that they require a greater degree of regulatory 
 38.17  attention.  
 38.18     Sec. 51.  Minnesota Statutes 2002, section 155A.10, is 
 38.19  amended to read: 
 38.20     155A.10 [DISPLAY OF LICENSE.] 
 38.21     (a) Every holder of a license granted by the commissioner, 
 38.22  board shall display it in a conspicuous place in the place of 
 38.23  business. 
 38.24     (b) Notwithstanding the provisions of paragraph (a), 
 38.25  nothing contained in this chapter sections 155A.01 to 155A.16 
 38.26  shall be construed to prohibit a person licensed to provide 
 38.27  cosmetology services from engaging in any practices defined 
 38.28  in this chapter sections 155A.01 to 155A.16 in the homes of 
 38.29  customers or patrons, under the sanitary and health rules 
 38.30  promulgated by the commissioner board.  
 38.31     Sec. 52.  Minnesota Statutes 2002, section 155A.135, is 
 38.32  amended to read: 
 38.33     155A.135 [ENFORCEMENT.] 
 38.34     The provisions of section 45.027 apply to the 
 38.35  administration of this chapter sections 155A.01 to 155A.16. 
 38.36     Sec. 53.  Minnesota Statutes 2002, section 155A.14, is 
 39.1   amended to read: 
 39.2      155A.14 [SERVICES EXCEPTED; EMERGENCY.] 
 39.3      Nothing in this chapter sections 155A.01 to 155A.16 
 39.4   prohibits services in cases of emergency where compensation or 
 39.5   other reward is not received, nor in domestic service, nor in 
 39.6   the practice of medicine, surgery, dentistry, podiatry, 
 39.7   osteopathy, chiropractic, or barbering.  This section shall not 
 39.8   be construed to authorize any of the persons so exempted to wave 
 39.9   the hair, or to color, tint, or bleach the hair, in any manner.  
 39.10     Sec. 54.  Minnesota Statutes 2002, section 155A.15, is 
 39.11  amended to read: 
 39.12     155A.15 [APPOINTMENT OF AGENT FOR SERVICE OF PROCESS.] 
 39.13     Any person, firm, partnership, or corporation, not a 
 39.14  resident of Minnesota, who engages in Minnesota in the practices 
 39.15  regulated in this chapter sections 155A.01 to 155A.16 shall file 
 39.16  with the commissioner board the name and address of a duly 
 39.17  authorized agent for service of legal process, which agent for 
 39.18  service shall be a resident of the state of Minnesota.  
 39.19     Sec. 55.  Minnesota Statutes 2002, section 155A.16, is 
 39.20  amended to read: 
 39.21     155A.16 [VIOLATIONS; PENALTIES.] 
 39.22     Any person who violates any of the provisions of this 
 39.23  chapter sections 155A.01 to 155A.16 is guilty of a misdemeanor 
 39.24  and upon conviction may be sentenced to imprisonment for not 
 39.25  more than 90 days or fined not more than $700, or both, per 
 39.26  violation.  
 39.27     Sec. 56.  Minnesota Statutes 2002, section 177.23, 
 39.28  subdivision 7, is amended to read: 
 39.29     Subd. 7.  [EMPLOYEE.] "Employee" means any individual 
 39.30  employed by an employer but does not include:  
 39.31     (1) two or fewer specified individuals employed at any 
 39.32  given time in agriculture on a farming unit or operation who are 
 39.33  paid a salary; 
 39.34     (2) any individual employed in agriculture on a farming 
 39.35  unit or operation who is paid a salary greater than the 
 39.36  individual would be paid if the individual worked 48 hours at 
 40.1   the state minimum wage plus 17 hours at 1-1/2 times the state 
 40.2   minimum wage per week; 
 40.3      (3) an individual under 18 who is employed in agriculture 
 40.4   on a farm to perform services other than corn detasseling or 
 40.5   hand field work when one or both of that minor hand field 
 40.6   worker's parents or physical custodians are also hand field 
 40.7   workers; 
 40.8      (4) for purposes of section 177.24, an individual under 18 
 40.9   who is employed as a corn detasseler; 
 40.10     (5) any staff member employed on a seasonal basis by an 
 40.11  organization for work in an organized resident or day camp 
 40.12  operating under a permit issued under section 144.72; 
 40.13     (6) any individual employed in a bona fide executive, 
 40.14  administrative, or professional capacity, or a salesperson who 
 40.15  conducts no more than 20 percent of sales on the premises of the 
 40.16  employer; 
 40.17     (7) any individual who renders service gratuitously for a 
 40.18  nonprofit organization; 
 40.19     (8) any individual who serves as an elected official for a 
 40.20  political subdivision or who serves on any governmental board, 
 40.21  commission, committee or other similar body, or who renders 
 40.22  service gratuitously for a political subdivision; 
 40.23     (9) any individual employed by a political subdivision to 
 40.24  provide police or fire protection services or employed by an 
 40.25  entity whose principal purpose is to provide police or fire 
 40.26  protection services to a political subdivision; 
 40.27     (10) any individual employed by a political subdivision who 
 40.28  is ineligible for membership in the Public Employees Retirement 
 40.29  Association under section 353.01, subdivision 2b, clause (1), 
 40.30  (2), (4), or (9); 
 40.31     (11) any driver employed by an employer engaged in the 
 40.32  business of operating taxicabs; 
 40.33     (12) any individual engaged in babysitting as a sole 
 40.34  practitioner; 
 40.35     (13) for the purpose of section 177.25, any individual 
 40.36  employed on a seasonal basis in a carnival, circus, fair, or ski 
 41.1   facility; 
 41.2      (14) any individual under 18 working less than 20 hours per 
 41.3   workweek for a municipality as part of a recreational program; 
 41.4      (15) any individual employed by the state as a natural 
 41.5   resource manager 1, 2, or 3 (conservation officer); 
 41.6      (16) any individual in a position for which the United 
 41.7   States Department of Transportation has power to establish 
 41.8   qualifications and maximum hours of service under United States 
 41.9   Code, title 49, section 304 31502; 
 41.10     (17) any individual employed as a seafarer.  The term 
 41.11  "seafarer" means a master of a vessel or any person subject to 
 41.12  the authority, direction, and control of the master who is 
 41.13  exempt from federal overtime standards under United States Code, 
 41.14  title 29, section 213(b)(6), including but not limited to 
 41.15  pilots, sailors, engineers, radio operators, firefighters, 
 41.16  security guards, pursers, surgeons, cooks, and stewards; 
 41.17     (18) any individual employed by a county in a single-family 
 41.18  residence owned by a county home school as authorized under 
 41.19  section 260B.060 if the residence is an extension facility of 
 41.20  that county home school, and if the individual as part of the 
 41.21  employment duties resides at the residence for the purpose of 
 41.22  supervising children as defined by section 260C.007, subdivision 
 41.23  4; or 
 41.24     (19) nuns, monks, priests, lay brothers, lay sisters, 
 41.25  ministers, deacons, and other members of religious orders who 
 41.26  serve pursuant to their religious obligations in schools, 
 41.27  hospitals, and other nonprofit institutions operated by the 
 41.28  church or religious order. 
 41.29     Sec. 57.  Minnesota Statutes 2002, section 182.653, 
 41.30  subdivision 9, is amended to read: 
 41.31     Subd. 9.  [STANDARD INDUSTRIAL CLASSIFICATION LIST.] The 
 41.32  commissioner shall adopt, in accordance with section 182.655, a 
 41.33  rule specifying a list of either standard industrial 
 41.34  classifications of employers or North American Industry 
 41.35  Classifications of employers who must comply with subdivision 
 41.36  8.  The commissioner shall demonstrate the need to include each 
 42.1   industrial classification on the basis of the safety record or 
 42.2   workers' compensation record of that industry segment.  An 
 42.3   employer must comply with subdivision 8 six months following the 
 42.4   date the standard industrial classification or North American 
 42.5   Industry Classification that applies to the employee is placed 
 42.6   on the list.  An employer having less than 51 employees must 
 42.7   comply with subdivision 8 six months following the date the 
 42.8   standard industrial classification or North American Industry 
 42.9   Classification that applies to the employee is placed on the 
 42.10  list or by July 1, 1993, whichever is later.  The list shall be 
 42.11  updated every two years. 
 42.12     Sec. 58.  Minnesota Statutes 2002, section 214.01, 
 42.13  subdivision 3, is amended to read: 
 42.14     Subd. 3.  [NON-HEALTH-RELATED LICENSING BOARD.] 
 42.15  "Non-health-related licensing board" means the Board of Teaching 
 42.16  established pursuant to section 122A.07, the Board of Barber and 
 42.17  Cosmetologist Examiners established pursuant to section 154.22, 
 42.18  the Board of Assessors established pursuant to section 270.41, 
 42.19  the Board of Architecture, Engineering, Land Surveying, 
 42.20  Landscape Architecture, Geoscience, and Interior Design 
 42.21  established pursuant to section 326.04, the Board of Electricity 
 42.22  established pursuant to section 326.241, the Private Detective 
 42.23  and Protective Agent Licensing Board established pursuant to 
 42.24  section 326.33, the Board of Accountancy established pursuant to 
 42.25  section 326A.02, and the Peace Officer Standards and Training 
 42.26  Board established pursuant to section 626.841. 
 42.27     Sec. 59.  Minnesota Statutes 2003 Supplement, section 
 42.28  214.04, subdivision 3, is amended to read: 
 42.29     Subd. 3.  [OFFICERS; STAFF.] The executive director of each 
 42.30  health-related board and the executive secretary of each 
 42.31  non-health-related board shall be the chief administrative 
 42.32  officer for the board but shall not be a member of the board.  
 42.33  The executive director or executive secretary shall maintain the 
 42.34  records of the board, account for all fees received by it, 
 42.35  supervise and direct employees servicing the board, and perform 
 42.36  other services as directed by the board.  The executive 
 43.1   directors, executive secretaries, and other employees of the 
 43.2   following boards shall be hired by the board, and the executive 
 43.3   directors or executive secretaries shall be in the unclassified 
 43.4   civil service, except as provided in this subdivision:  
 43.5      (1) Dentistry; 
 43.6      (2) Medical Practice; 
 43.7      (3) Nursing; 
 43.8      (4) Pharmacy; 
 43.9      (5) Accountancy; 
 43.10     (6) Architecture, Engineering, Land Surveying, Landscape 
 43.11  Architecture, Geoscience, and Interior Design; 
 43.12     (7) Barber and Cosmetologist Examiners; 
 43.13     (8) Cosmetology; 
 43.14     (9) Electricity; 
 43.15     (10) (9) Teaching; 
 43.16     (11) (10) Peace Officer Standards and Training; 
 43.17     (12) (11) Social Work; 
 43.18     (13) (12) Marriage and Family Therapy; 
 43.19     (14) (13) Dietetics and Nutrition Practice; and 
 43.20     (15) (14) Licensed Professional Counseling. 
 43.21     The executive directors or executive secretaries serving 
 43.22  the boards are hired by those boards and are in the unclassified 
 43.23  civil service, except for part-time executive directors or 
 43.24  executive secretaries, who are not required to be in the 
 43.25  unclassified service.  Boards not requiring full-time executive 
 43.26  directors or executive secretaries may employ them on a 
 43.27  part-time basis.  To the extent practicable, the sharing of 
 43.28  part-time executive directors or executive secretaries by boards 
 43.29  being serviced by the same department is encouraged.  Persons 
 43.30  providing services to those boards not listed in this 
 43.31  subdivision, except executive directors or executive secretaries 
 43.32  of the boards and employees of the attorney general, are 
 43.33  classified civil service employees of the department servicing 
 43.34  the board.  To the extent practicable, the commissioner shall 
 43.35  ensure that staff services are shared by the boards being 
 43.36  serviced by the department.  If necessary, a board may hire 
 44.1   part-time, temporary employees to administer and grade 
 44.2   examinations. 
 44.3      Sec. 60.  Minnesota Statutes 2002, section 239.011, is 
 44.4   amended by adding a subdivision to read: 
 44.5      Subd. 3.  [LIQUEFIED PETROLEUM GAS.] (a) The annual testing 
 44.6   and inspection requirements for liquefied petroleum gas 
 44.7   measuring equipment, as set forth in section 239.10, subdivision 
 44.8   3, shall be deemed to have been met by an owner or seller who 
 44.9   has testing and inspection performed annually in compliance with 
 44.10  this subdivision.  The testing and inspection must meet the 
 44.11  following requirements: 
 44.12     (1) all equipment subject to inspection and testing 
 44.13  requirements must be inspected and tested annually; 
 44.14     (2) inspection testing must only be done by persons who 
 44.15  have demonstrated to the director that they are competent to 
 44.16  inspect and test liquefied petroleum gas measuring equipment.  
 44.17  Competency may be established by passage of a competency 
 44.18  examination, which the director must establish, or by other 
 44.19  recognized credentialing processes approved by the director.  
 44.20  Persons taking tests established by the director may be charged 
 44.21  for the costs of the testing procedure; 
 44.22     (3) testing and inspection procedures must comply with 
 44.23  inspection protocol, which must be established by the director.  
 44.24  The director may use existing protocol or recognize any other 
 44.25  scientifically established and recognized protocol; 
 44.26     (4) persons who inspect or test liquefied petroleum gas 
 44.27  measuring equipment must use testing equipment that meets any 
 44.28  specifications issued by the director; 
 44.29     (5) equipment used for testing and inspection must be 
 44.30  submitted to the director for calibration by the division 
 44.31  whenever ordered by the director; and 
 44.32     (6) all inspectors, equipment, and inspection protocol must 
 44.33  comply with all relevant requirements of Minnesota Statutes, 
 44.34  department rules, and written procedures issued by the director. 
 44.35     (b) Owners or sellers of liquefied petroleum gas may 
 44.36  perform their own tests and inspections or have employees do so 
 45.1   as long as they meet the requirements of this subdivision.  
 45.2   Persons performing inspection and testing may also perform 
 45.3   repairs and maintenance on inspected equipment if authorized by 
 45.4   the owner.  However, they shall not be allowed to take equipment 
 45.5   out of service.  
 45.6      (c) Inspectors shall tag meters that fail the testing 
 45.7   process as "out of tolerance."  For equipment that has passed 
 45.8   inspection, the inspector shall provide to the owner or seller a 
 45.9   seal indicating that the equipment has been inspected and the 
 45.10  date of the inspection.  Whenever an inspector issues a seal to 
 45.11  an owner or seller, the inspector shall submit to the director 
 45.12  written verification that the equipment was tested by procedures 
 45.13  and testing equipment meeting the requirements of this 
 45.14  subdivision.  The director shall issue seals (stickers) to 
 45.15  inspectors for the purposes of this subdivision.  The issuance 
 45.16  of a seal to an owner or seller establishes only that the 
 45.17  equipment was inspected by a certified inspector using qualified 
 45.18  equipment and procedures, and that the equipment was found to be 
 45.19  within allowable tolerance on the date tested.  
 45.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 45.21  following final enactment. 
 45.22     Sec. 61.  Minnesota Statutes 2002, section 239.101, 
 45.23  subdivision 3, is amended to read: 
 45.24     Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
 45.25  is imposed (1) on petroleum products when received by the first 
 45.26  licensed distributor, and (2) on petroleum products received and 
 45.27  held for sale or use by any person when the petroleum products 
 45.28  have not previously been received by a licensed distributor.  
 45.29  The petroleum inspection fee is 85 cents $1 for every 1,000 
 45.30  gallons received.  The commissioner of revenue shall collect the 
 45.31  fee.  The revenue from the fee must first be applied to cover 
 45.32  the amounts appropriated.  Fifteen cents of the inspection fee 
 45.33  must be deposited in an account in the special revenue fund and 
 45.34  is appropriated to the commissioner of commerce for the cost of 
 45.35  petroleum product quality inspection expenses, and for the 
 45.36  inspection and testing of petroleum product measuring equipment, 
 46.1   and for petroleum supply monitoring under chapter 216C.  The 
 46.2   remainder of the fee must be deposited in the general fund. 
 46.3      (b) The commissioner of revenue shall credit a person for 
 46.4   inspection fees previously paid in error or for any material 
 46.5   exported or sold for export from the state upon filing of a 
 46.6   report as prescribed by the commissioner of revenue. 
 46.7      (c) The commissioner of revenue may collect the inspection 
 46.8   fee along with any taxes due under chapter 296A. 
 46.9      Sec. 62.  Minnesota Statutes 2002, section 326.975, 
 46.10  subdivision 1, is amended to read: 
 46.11     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
 46.12  fees, each applicant for a license under sections 326.83 to 
 46.13  326.98 shall pay a fee to the contractor's recovery fund.  The 
 46.14  contractor's recovery fund is created in the state treasury and 
 46.15  must be administered by the commissioner in the manner and 
 46.16  subject to all the requirements and limitations provided by 
 46.17  section 82.34 with the following exceptions: 
 46.18     (1) each licensee who renews a license shall pay in 
 46.19  addition to the appropriate renewal fee an additional fee which 
 46.20  shall be credited to the contractor's recovery fund.  The amount 
 46.21  of the fee shall be based on the licensee's gross annual 
 46.22  receipts for the licensee's most recent fiscal year preceding 
 46.23  the renewal, on the following scale: 
 46.24            Fee           Gross Receipts
 46.25            $100          under $1,000,000
 46.26            $150          $1,000,000 to $5,000,000
 46.27            $200          over $5,000,000
 46.28  Any person who receives a new license shall pay a fee based on 
 46.29  the same scale; 
 46.30     (2) the sole purpose of this fund is to:  
 46.31     (i) compensate any aggrieved owner or lessee of residential 
 46.32  property located within this state who obtains a final judgment 
 46.33  in any court of competent jurisdiction against a licensee 
 46.34  licensed under section 326.84, on grounds of fraudulent, 
 46.35  deceptive, or dishonest practices, conversion of funds, or 
 46.36  failure of performance arising directly out of any transaction 
 47.1   when the judgment debtor was licensed and performed any of the 
 47.2   activities enumerated under section 326.83, subdivision 19, on 
 47.3   the owner's residential property or on residential property 
 47.4   rented by the lessee, or on new residential construction which 
 47.5   was never occupied prior to purchase by the owner, or which was 
 47.6   occupied by the licensee for less than one year prior to 
 47.7   purchase by the owner, and which cause of action arose on or 
 47.8   after April 1, 1994; and 
 47.9      (ii) reimburse the Department of Commerce for all legal and 
 47.10  administrative expenses, including staffing costs, incurred in 
 47.11  administering the fund; 
 47.12     (3) nothing may obligate the fund for more than $50,000 per 
 47.13  claimant, nor more than $75,000 per licensee; and 
 47.14     (4) nothing may obligate the fund for claims based on a 
 47.15  cause of action that arose before the licensee paid the recovery 
 47.16  fund fee set in clause (1), or as provided in section 326.945, 
 47.17  subdivision 3.  
 47.18     (b) Should the commissioner pay from the contractor's 
 47.19  recovery fund any amount in settlement of a claim or toward 
 47.20  satisfaction of a judgment against a licensee, the license shall 
 47.21  be automatically suspended upon the effective date of an order 
 47.22  by the court authorizing payment from the fund.  No licensee 
 47.23  shall be granted reinstatement until the licensee has repaid in 
 47.24  full, plus interest at the rate of 12 percent a year, twice the 
 47.25  amount paid from the fund on the licensee's account, and has 
 47.26  obtained a surety bond issued by an insurer authorized to 
 47.27  transact business in this state in the amount of at least 
 47.28  $40,000. 
 47.29     Sec. 63.  Minnesota Statutes 2002, section 327C.01, is 
 47.30  amended by adding a subdivision to read: 
 47.31     Subd. 13.  [MEASURING DEVICE.] "Measuring device" means any 
 47.32  water submetering device used to measure and record water usage 
 47.33  of each resident to provide a separate billing amount and actual 
 47.34  water usage data on either a monthly or quarterly basis to the 
 47.35  resident.  At the time of installation, the measuring device 
 47.36  must be certified as being in compliance with one of the 
 48.1   following national standards:  American Water Works Association 
 48.2   (AWWA), American Society of Mechanical Engineers (ASME), or 
 48.3   American National Standards Institute (ANSI).  The measuring 
 48.4   devices must be installed in accordance with the manufacturer's 
 48.5   instructions or the Minnesota Plumbing Code and equipped with a 
 48.6   manual or digital display that is readily accessible to the 
 48.7   resident for inspection.  
 48.8      Sec. 64.  Minnesota Statutes 2002, section 327C.02, 
 48.9   subdivision 2, is amended to read: 
 48.10     Subd. 2.  [MODIFICATION OF RULES.] The park owner must give 
 48.11  the resident at least 60 days' notice in writing of any rule 
 48.12  change.  A rule adopted or amended after the resident initially 
 48.13  enters into a rental agreement may be enforced against that 
 48.14  resident only if the new or amended rule is reasonable and is 
 48.15  not a substantial modification of the original agreement.  Any 
 48.16  security deposit increase is a substantial modification of the 
 48.17  rental agreement.  A reasonable rent increase made in compliance 
 48.18  with section 327C.06, or the implementation and collection of 
 48.19  water and/or sewer charges under section 327C.04 as a rent 
 48.20  increase or reduction under section 327C.06, is not a 
 48.21  substantial modification of the rental agreement and is not 
 48.22  considered to be a rule for purposes of section 327C.01, 
 48.23  subdivision 8.  A rule change necessitated by government action 
 48.24  is not a substantial modification of the rental agreement.  A 
 48.25  rule change requiring all residents to maintain their homes, 
 48.26  sheds and other appurtenances in good repair and safe condition 
 48.27  shall not be deemed a substantial modification of a rental 
 48.28  agreement.  If a part of a resident's home, shed or other 
 48.29  appurtenance becomes so dilapidated that repair is impractical 
 48.30  and total replacement is necessary, the park owner may require 
 48.31  the resident to make the replacement in conformity with a 
 48.32  generally applicable rule adopted after the resident initially 
 48.33  entered into a rental agreement with the park owner.  
 48.34     In any action in which a rule change is alleged to be a 
 48.35  substantial modification of the rental agreement, a court may 
 48.36  consider the following factors in limitation of the criteria set 
 49.1   forth in section 327C.01, subdivision 11:  
 49.2      (a) any significant changes in circumstances which have 
 49.3   occurred since the original rule was adopted and which 
 49.4   necessitate the rule change; and 
 49.5      (b) any compensating benefits which the rule change will 
 49.6   produce for the residents. 
 49.7      Sec. 65.  Minnesota Statutes 2002, section 327C.04, is 
 49.8   amended by adding a subdivision to read: 
 49.9      Subd. 5.  [WATER AND SEWER CHARGES.] If a park owner 
 49.10  installs measuring devices which accurately meter each 
 49.11  household's use of water, the park owner shall bill the 
 49.12  residents based on each household's metered use of water and 
 49.13  sewer usage.  The park owner may not directly bill the residents 
 49.14  for the cost and installation of the measuring devices.  Each 
 49.15  billing statement shall contain the actual usage amount for the 
 49.16  billing period and the rate charged to the resident.  If the 
 49.17  water and sewer services are provided by a third party, the park 
 49.18  owner shall consider only the actual amount billed by the third 
 49.19  party and shall not consider administrative, capital, or other 
 49.20  expenses.  If the water or sewer service is provided by means of 
 49.21  a private well or private sewer or septic system, the park owner 
 49.22  may bill the residents at the rates permitted for utility 
 49.23  charges under subdivision 3.  Prior to or with the initial bill 
 49.24  for metered usage, the park owner must either: 
 49.25     (1) reduce the resident's monthly rent in an amount equal 
 49.26  to the average monthly amount billed over the previous 12 months 
 49.27  by the current provider of the services divided by the number of 
 49.28  licensed home sites; or 
 49.29     (2) in the case of a private well, the rent reduction shall 
 49.30  be calculated by applying the prevailing municipal water rate to 
 49.31  the previous 12 months of metering as required by the Department 
 49.32  of Natural Resources reporting divided by 12 months and further 
 49.33  divided by the number of licensed home sites. 
 49.34     Sec. 66.  [446A.083] [METHAMPHETAMINE LABORATORY CLEANUP 
 49.35  REVOLVING FUND.] 
 49.36     Subdivision 1.  [DEFINITIONS.] As used in this section: 
 50.1      (1) "clandestine lab site" means any structure or 
 50.2   conveyance or outdoor location occupied or affected by 
 50.3   conditions or chemicals, typically associated with a clandestine 
 50.4   drug lab operation; 
 50.5      (2) "property" includes buildings and other structures and 
 50.6   motor vehicles as defined in section 609.487, subdivision 2a.  
 50.7   Property also includes real property whether publicly or 
 50.8   privately owned and public waters and rights-of-way; and 
 50.9      (3) "remediate" or "remediation" means proper cleanup, 
 50.10  treatment, or containment of hazardous substances or 
 50.11  methamphetamine at or in a clandestine lab site, and may include 
 50.12  demolition or disposal of structures or other property when an 
 50.13  assessment so indicates. 
 50.14     Subd. 2.  [FUND ESTABLISHED.] The authority shall establish 
 50.15  a methamphetamine laboratory cleanup revolving fund to provide 
 50.16  loans to counties and cities to remediate clandestine lab 
 50.17  sites.  The fund must be credited with repayments.  
 50.18     Subd. 3.  [APPLICATIONS.] Applications by a county or city 
 50.19  for a loan from the fund must be made to the authority on the 
 50.20  forms prescribed by the authority.  The application must 
 50.21  include, but is not limited to:  
 50.22     (1) the amount of the loan requested and the proposed use 
 50.23  of the loan proceeds; 
 50.24     (2) the source of revenues to repay the loan; and 
 50.25     (3) certification by the county or city that it meets the 
 50.26  loan eligibility requirements of subdivision 4.  
 50.27     Subd. 4.  [LOAN ELIGIBILITY.] A county or city is eligible 
 50.28  for a loan under this section, if the county or city: 
 50.29     (1) identifies a site or sites designated by a local public 
 50.30  health department or law enforcement as a clandestine lab site; 
 50.31     (2) has required the site's property owner to remediate the 
 50.32  site at cost under chapter 145A or a local public health 
 50.33  nuisance ordinance that addresses clandestine lab remediation; 
 50.34     (3) certifies that the property owner cannot pay for the 
 50.35  remediation immediately; 
 50.36     (4) certifies that the property owner has not properly 
 51.1   remediated the site; and 
 51.2      (5) issues a revenue bond payable to the authority to 
 51.3   secure the loan.  
 51.4      Subd. 5.  [USE OF LOAN PROCEEDS; REIMBURSEMENT BY PROPERTY 
 51.5   OWNER.] (a) A loan recipient shall use the loan to remediate the 
 51.6   clandestine lab site or, if this has already been done, to 
 51.7   reimburse the applicable county or city fund for costs paid by 
 51.8   the recipient to remediate the clandestine lab site.  
 51.9      (b) A loan recipient shall seek reimbursement from the 
 51.10  owner of the property containing the clandestine lab site for 
 51.11  the costs of the remediation.  In addition to other lawful means 
 51.12  of seeking reimbursement, the loan recipient may recover its 
 51.13  costs through a property tax assessment by following the 
 51.14  procedures specified in section 145A.08, subdivision 2, 
 51.15  paragraph (c).  
 51.16     Subd. 6.  [AWARD AND DISBURSEMENT OF FUNDS.] The authority 
 51.17  shall award loans to recipients on a first-come, first-served 
 51.18  basis, provided that the recipient is able to comply with the 
 51.19  terms and conditions of the authority loan, which must be in 
 51.20  conformance with this section.  The authority shall make a 
 51.21  single disbursement of the loan upon receipt of a payment 
 51.22  request that includes a list of remediation expenses and 
 51.23  evidence that a second-party sampling was undertaken to ensure 
 51.24  that the remediation work was successful or a guarantee that 
 51.25  such a sampling will be undertaken.  
 51.26     Subd. 7.  [LOAN CONDITIONS AND TERMS.] (a) When making 
 51.27  loans from the revolving fund, the authority shall comply with 
 51.28  the criteria in paragraphs (b) to (f).  
 51.29     (b) Loans must be made at a two percent per annum interest 
 51.30  rate for terms not to exceed ten years unless the recipient 
 51.31  requests a 20-year term due to financial hardship. 
 51.32     (c) The annual principal and interest payments must begin 
 51.33  no later than one year after completion of the clean up.  Loans 
 51.34  must be amortized no later than 20 years after completion of the 
 51.35  clean up.  
 51.36     (d) A loan recipient must identify and establish a source 
 52.1   of revenue for repayment of the loan and must undertake whatever 
 52.2   steps are necessary to collect payments within one year of 
 52.3   receipt of funds from the authority.  
 52.4      (e) The fund must be credited with all payments of 
 52.5   principal and interest on all loans, except the costs as 
 52.6   permitted under section 446A.04, subdivision 5, paragraph (a). 
 52.7      (f) Loans must be made only to recipients with clandestine 
 52.8   lab ordinances that address remediation.  
 52.9      Subd. 8.  [AUTHORITY TO INCUR DEBT.] Counties and cities 
 52.10  may incur debt under this section by resolution of the board or 
 52.11  council authorizing issuance of a revenue bond to the authority. 
 52.12     Sec. 67.  Minnesota Statutes 2002, section 446A.12, 
 52.13  subdivision 1, is amended to read: 
 52.14     Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 52.15  issue negotiable bonds in a principal amount that the authority 
 52.16  determines necessary to provide sufficient funds for achieving 
 52.17  its purposes, including the making of loans and purchase of 
 52.18  securities, the payment of interest on bonds of the authority, 
 52.19  the establishment of reserves to secure its bonds, the payment 
 52.20  of fees to a third party providing credit enhancement, and the 
 52.21  payment of all other expenditures of the authority incident to 
 52.22  and necessary or convenient to carry out its corporate purposes 
 52.23  and powers, but not including the making of grants.  Bonds of 
 52.24  the authority may be issued as bonds or notes or in any other 
 52.25  form authorized by law.  The principal amount of bonds issued 
 52.26  and outstanding under this section at any time may not exceed 
 52.27  $1,000,000,000 $1,250,000,000, excluding bonds for which 
 52.28  refunding bonds or crossover refunding bonds have been issued. 
 52.29     Sec. 68.  Minnesota Statutes 2002, section 446A.14, is 
 52.30  amended to read: 
 52.31     446A.14 [INTEREST EXCHANGES RATE SWAPS AND OTHER 
 52.32  AGREEMENTS.] 
 52.33     The authority may enter into an agreement with a third 
 52.34  party for an exchange of interest rates under this subdivision.  
 52.35  With respect to outstanding obligations bearing interest at a 
 52.36  variable rate, the authority may agree to pay sums equal to 
 53.1   interest at a fixed rate or at a different variable rate 
 53.2   determined in accordance with a formula set out in the agreement 
 53.3   on an amount not exceeding the outstanding principal amount of 
 53.4   the obligations, in exchange for an agreement by the third party 
 53.5   to pay sums equal to interest on a similar amount at a variable 
 53.6   rate determined according to a formula set out in the agreement. 
 53.7   With respect to outstanding obligations bearing interest at a 
 53.8   fixed rate or rates, the authority may agree to pay sums equal 
 53.9   to interest at a variable rate determined according to a formula 
 53.10  set out in the agreement on an amount not exceeding the 
 53.11  outstanding principal amount of the obligations in exchange for 
 53.12  an agreement by the third party to pay sums equal to interest on 
 53.13  a similar amount at a fixed rate or rates set out in the 
 53.14  agreement.  Subject to any applicable bonds covenants, payments 
 53.15  required to be made by the municipality under the swap agreement 
 53.16  may be made from amounts secured to pay debt service on the 
 53.17  obligations with respect to which the swap agreement was made 
 53.18  from any other available source of the authority. Subdivision 1. 
 53.19  [AGREEMENTS.] (a) The authority may enter into interest rate 
 53.20  exchange or swap agreements, hedges, forward purchase or sale 
 53.21  agreements, loan sale or pooling agreements or trusts, or other 
 53.22  similar agreements in connection with: 
 53.23     (1) the issuance or proposed issuance of bonds; 
 53.24     (2) the making, proposed making, or sale of loans or other 
 53.25  financial assistance or investments; 
 53.26     (3) outstanding bonds, loans, or other financial 
 53.27  assistance; or 
 53.28     (4) existing similar agreements.  
 53.29     (b) The agreements authorized by this subdivision include, 
 53.30  without limitation, master agreements, options or contracts to 
 53.31  enter into such agreements in the future and related agreements, 
 53.32  including, without limitation, agreements to provide credit 
 53.33  enhancement, liquidity, or remarketing; valuation; monitoring; 
 53.34  or administrative services currently or in the future.  However, 
 53.35  the term of an option to enter into an interest rate swap, 
 53.36  exchange, hedge, or other similar agreement and the term of a 
 54.1   contract to sell, buy, or refund bonds in the future must not 
 54.2   exceed five years. 
 54.3      (c) The agreements authorized by this subdivision or 
 54.4   supplements to master agreements may be entered into on the 
 54.5   basis of negotiation with a qualified third party or through a 
 54.6   competitive proposal process on terms and conditions and with 
 54.7   covenants and provisions approved by the authority and may 
 54.8   include, without limitation: 
 54.9      (1) provisions establishing reserves; 
 54.10     (2) pledging assets or revenues of the authority for 
 54.11  current or other payments or termination payments; 
 54.12     (3) contracting with the other parties to such agreements 
 54.13  as to the custody, collection, securing, investment, and payment 
 54.14  of money of the authority or money held in trust; or 
 54.15     (4) requiring the issuance of bonds or entering into loans 
 54.16  or other agreements authorized by this subdivision in the future.
 54.17     (d) Subject to the terms of the agreement and other 
 54.18  agreements of the authority with bondholders or other third 
 54.19  parties, the agreements authorized by this subdivision may be 
 54.20  general or limited obligations of the authority payable from all 
 54.21  available or certain specified funds appropriated to the 
 54.22  authority.  The agreements authorized by this subdivision do not 
 54.23  constitute debt of the authority for the purposes of the limits 
 54.24  on bonds or notes of the authority set forth in section 446A.12, 
 54.25  subdivision 1.  
 54.26     (e) The authority may issue bonds to provide funds to make 
 54.27  payments, including, without limitation, termination payments 
 54.28  pursuant to an agreement authorized by this subdivision. 
 54.29     (f) The aggregate notional amount of interest rate swap or 
 54.30  exchange agreements in effect at any time must not exceed an 
 54.31  amount equal to ten percent of the aggregate principal amount of 
 54.32  bonds the authority is authorized to have outstanding pursuant 
 54.33  to section 446A.12, subdivision 1, including the notional amount 
 54.34  of interest rate swap or exchange agreements with respect to 
 54.35  which a reversing agreement has been entered into, the effect of 
 54.36  which is to terminate the original agreement or a portion 
 55.1   thereof, and reversing agreements with respect to all or a 
 55.2   portion of existing agreements. 
 55.3      Subd. 2.  [POWERS OF AUTHORITY.] For the purposes of this 
 55.4   section, the authority may exercise all powers provided in this 
 55.5   chapter.  The authority may consent, whenever it considers it 
 55.6   necessary or desirable in connection with agreements entered 
 55.7   into under this subdivision, to modifications, amendments, or 
 55.8   waivers of the terms of such agreements.  The proceeds of any 
 55.9   agreements entered into pursuant to this subdivision are 
 55.10  appropriated to the authority pursuant to section 446A.11, 
 55.11  subdivision 13.  The agreements entered into pursuant to this 
 55.12  subdivision are not subject to sections 16C.03, subdivision 4, 
 55.13  and 16C.05. 
 55.14     Sec. 69.  Minnesota Statutes 2002, section 446A.17, is 
 55.15  amended to read: 
 55.16     446A.17 [NONLIABILITY.] 
 55.17     Subdivision 1.  [NONLIABILITY OF INDIVIDUALS.] No member of 
 55.18  the authority or other person executing the bonds, loans, 
 55.19  interest rate swaps, or other agreements or contracts of the 
 55.20  authority is liable personally on the bonds such bonds, loans, 
 55.21  interest rate swaps, or other agreements or contracts of the 
 55.22  authority or is subject to any personal liability or 
 55.23  accountability by reason of their issuance, execution, delivery, 
 55.24  or performance.  
 55.25     Subd. 2.  [NONLIABILITY OF STATE.] The state is not liable 
 55.26  on bonds, loans, interest rate swaps, or other agreements or 
 55.27  contracts of the authority issued or entered into under this 
 55.28  chapter and those bonds such bonds, loans, interest rate swaps, 
 55.29  or other agreements or contracts of the authority are not a debt 
 55.30  of the state.  The bonds Such bonds, loans, interest rate swaps, 
 55.31  or other agreements or contracts of the authority must contain 
 55.32  on their face a statement to that effect. 
 55.33     Sec. 70.  Minnesota Statutes 2002, section 446A.19, is 
 55.34  amended to read: 
 55.35     446A.19 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
 55.36     The state pledges and agrees with the holders of bonds 
 56.1   issued under sections 446A.051, and 446A.12 to 446A.20 or other 
 56.2   parties to any loans, interest rate swaps, or other agreements 
 56.3   or contracts of the authority that the state will not limit or 
 56.4   alter the rights vested in the authority to fulfill the terms of 
 56.5   any agreements made with the bondholders or parties to any 
 56.6   loans, interest rate swaps, or other agreements or contracts of 
 56.7   the authority or in any way impair the rights and remedies of 
 56.8   the holders until the bonds, together with interest on them, 
 56.9   with interest on any unpaid installments of interest, and all 
 56.10  costs and expenses in connection with any action or proceeding 
 56.11  by or on behalf of the bondholders, are fully met and discharged 
 56.12  or, with respect to any loans, interest rate swaps, or other 
 56.13  agreements or contracts of the authority, such agreements have 
 56.14  been fully performed by the authority or otherwise terminated or 
 56.15  discharged.  The authority may include this pledge and agreement 
 56.16  of the state in any agreement with the holders of bonds issued 
 56.17  under sections 446A.051, and 446A.12 to 446A.20 or in any loans, 
 56.18  interest rate swaps, or other agreements or contracts of the 
 56.19  authority. 
 56.20     Sec. 71.  Minnesota Statutes 2002, section 461.12, 
 56.21  subdivision 2, is amended to read: 
 56.22     Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] (a) If a 
 56.23  licensee or employee of a licensee sells tobacco to a person 
 56.24  under the age of 18 years, or violates any other provision of 
 56.25  this chapter, the licensee shall be charged an administrative 
 56.26  penalty of at least $75 but no more than $500.  An 
 56.27  administrative penalty of at least $200 but no more than $1,000 
 56.28  must be imposed for a second violation at the same location 
 56.29  within 24 months after the initial violation.  An administrative 
 56.30  penalty of at least $250 but no more than $2,500 and up to a 
 56.31  three-day license suspension may be imposed for a third 
 56.32  violation at the same location within 24 months after the 
 56.33  initial violation.  For a third subsequent violation at the same 
 56.34  location within 24 months after the initial violation, both of 
 56.35  the following may be imposed:  
 56.36     (1) an administrative penalty of at least $250 must be 
 57.1   imposed, and but no more than $5,000; 
 57.2      (2) the licensee's authority to sell tobacco at that 
 57.3   location must may be suspended for not less than up to a maximum 
 57.4   of seven days. 
 57.5      (b) The licensing authority may suspend or revoke a tobacco 
 57.6   license if the licensee fails to act on any of the following: 
 57.7      (1) imposition of disciplinary sanctions of an employee 
 57.8   with multiple noncompliant sales to a minor; 
 57.9      (2) failure to conduct a minimum of one-half hour of 
 57.10  training annually, documented by passing a written test on state 
 57.11  laws concerning tobacco sales to minors; 
 57.12     (3) failure to adopt and enforce a written employee policy, 
 57.13  reviewed by the licensing authority, to prevent the sale of 
 57.14  tobacco to minors; or 
 57.15     (4) failure of a third compliance check while not 
 57.16  participating in a licensing authority local defined retailer 
 57.17  program.  For purposes of this clause, "defined retailer 
 57.18  program" means a voluntary program between the tobacco licensing 
 57.19  authority and the tobacco license holder.  The program must: 
 57.20     (1) consist of a tobacco compliance coordinator; 
 57.21     (2) provide training by the licensing authority for tobacco 
 57.22  retailer employees; 
 57.23     (3) reward employees for successfully blocking sales to 
 57.24  underage customers; 
 57.25     (4) encourage self-reporting of blocked sales to underage 
 57.26  customers; 
 57.27     (5) have an advisory panel consisting of city personnel and 
 57.28  tobacco retailers to look at the development and review of the 
 57.29  training curriculum; 
 57.30     (6) have a review panel consisting of the compliance 
 57.31  coordinator, a city council or county board member, a local 
 57.32  tobacco retailer, and a member of the local city staff; and 
 57.33     (7) not establish or impose penalties greater or less than 
 57.34  those specified in paragraph (a).  
 57.35     (c) No suspension or penalty may take effect until the 
 57.36  licensee has received notice, served personally or by mail, of 
 58.1   the alleged violation and an opportunity for a hearing before a 
 58.2   person authorized by the licensing authority to conduct the 
 58.3   hearing. 
 58.4      (d) In determining the amount of a penalty and the length 
 58.5   of a license suspension, at a hearing as specified in paragraph 
 58.6   (c), the local licensing authority shall take into consideration 
 58.7   as mitigating circumstances evidence provided by a licensee of a 
 58.8   licensee's adoption and enforcement of a written employee policy 
 58.9   to prevent the sale of tobacco to minors, a licensee's training 
 58.10  program to instruct employees on applicable laws and how to 
 58.11  prevent sales of tobacco to minors, a licensee's adoption and 
 58.12  imposition of disciplinary sanctions for employee noncompliance 
 58.13  with the licensee's policies, a licensee's policy of conducting 
 58.14  voluntary internal compliance checks to test compliance with 
 58.15  section 609.685, and whether a licensee or a licensee's employee 
 58.16  verified the age of the customer during the transaction in 
 58.17  question and reasonably relied on the age verification to 
 58.18  complete the sale.  A decision that a violation has occurred 
 58.19  must be in writing and must include a summary of the mitigating 
 58.20  circumstances considered by the local licensing authority in 
 58.21  assessing a penalty or a license suspension.  
 58.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 58.23  following final enactment and applies to administrative 
 58.24  penalties imposed on or after that date. 
 58.25     Sec. 72.  Minnesota Statutes 2002, section 461.19, is 
 58.26  amended to read: 
 58.27     461.19 [EFFECT ON LOCAL ORDINANCE; NOTICE.] 
 58.28     Sections 461.12 to 461.18 do not preempt a local ordinance 
 58.29  that provides for more restrictive regulation of tobacco sales, 
 58.30  except that on and after the effective date of this act, a 
 58.31  licensing authority shall not assess or impose a penalty on a 
 58.32  licensee or an employee of a licensee that is greater than the 
 58.33  administrative penalties set forth in section 461.12, 
 58.34  subdivisions 2 and 3.  A governing body shall give notice of its 
 58.35  intention to consider adoption or substantial amendment of any 
 58.36  local ordinance required under section 461.12 or permitted under 
 59.1   this section.  The governing body shall take reasonable steps to 
 59.2   send notice by mail at least 30 days prior to the meeting to the 
 59.3   last known address of each licensee or person required to hold a 
 59.4   license under section 461.12.  The notice shall state the time, 
 59.5   place, and date of the meeting and the subject matter of the 
 59.6   proposed ordinance. 
 59.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 59.8   following final enactment and applies to administrative 
 59.9   penalties imposed on or after that date. 
 59.10     Sec. 73.  Minnesota Statutes 2003 Supplement, section 
 59.11  462A.03, subdivision 13, is amended to read: 
 59.12     Subd. 13.  [ELIGIBLE MORTGAGOR.] "Eligible mortgagor" means 
 59.13  a nonprofit or cooperative housing corporation; the Department 
 59.14  of Administration for the purpose of developing nursing home 
 59.15  beds under section 251.011 or community-based programs as 
 59.16  defined in sections 252.50 and 253.28; a limited profit entity 
 59.17  or a builder as defined by the agency in its rules, which 
 59.18  sponsors or constructs residential housing as defined in 
 59.19  subdivision 7; or a natural person of low or moderate income, 
 59.20  except that the return to a limited dividend entity shall not 
 59.21  exceed ten 15 percent of the capital contribution of the 
 59.22  investors or such lesser percentage as the agency shall 
 59.23  establish in its rules, provided that residual receipts funds of 
 59.24  a limited dividend entity may be used for agency-approved, 
 59.25  housing-related investments owned by the limited dividend entity 
 59.26  without regard to the limitation on returns.  Owners of existing 
 59.27  residential housing occupied by renters shall be eligible for 
 59.28  rehabilitation loans, only if, as a condition to the issuance of 
 59.29  the loan, the owner agrees to conditions established by the 
 59.30  agency in its rules relating to rental or other matters that 
 59.31  will insure that the housing will be occupied by persons and 
 59.32  families of low or moderate income.  The agency shall require by 
 59.33  rules that the owner give preference to those persons of low or 
 59.34  moderate income who occupied the residential housing at the time 
 59.35  of application for the loan. 
 59.36     Sec. 74.  Minnesota Statutes 2002, section 462A.05, is 
 60.1   amended by adding a subdivision to read: 
 60.2      Subd. 3c.  [REFINANCING; LONG-TERM MORTGAGES.] It may agree 
 60.3   to purchase, make, or otherwise participate in the making and 
 60.4   enter into commitments for the purchase, making, or 
 60.5   participation in the making of long-term mortgage loans to 
 60.6   persons and families of low and moderate income to refinance a 
 60.7   long-term mortgage or other financing secured by the residential 
 60.8   housing occupied by the owner of the property.  The loans shall 
 60.9   be made only upon determination by the agency that long-term 
 60.10  mortgage loans are not otherwise available, wholly or in part, 
 60.11  from private lenders upon equivalent terms and conditions.  
 60.12     Sec. 75.  Laws 2003, chapter 128, article 10, section 4, 
 60.13  subdivision 3, is amended to read: 
 60.14  Subd. 3.  Affordable Rental Investment Fund
 60.15  $9,273,000 the first year and 
 60.16  $9,273,000 the second year are for the 
 60.17  affordable rental investment fund 
 60.18  program under Minnesota Statutes, 
 60.19  section 462A.21, subdivision 8b. 
 60.20  This appropriation is to finance the 
 60.21  acquisition, rehabilitation, and debt 
 60.22  restructuring of federally assisted 
 60.23  rental property and for making equity 
 60.24  take-out loans under Minnesota 
 60.25  Statutes, section 462A.05, subdivision 
 60.26  39.  This appropriation also may be 
 60.27  used to finance the acquisition, 
 60.28  rehabilitation, and debt restructuring 
 60.29  of existing supportive housing 
 60.30  properties.  For purposes of this 
 60.31  subdivision, supportive housing means 
 60.32  affordable rental housing with linkages 
 60.33  to services necessary for individuals, 
 60.34  youth, and families with children to 
 60.35  maintain housing stability.  The owner 
 60.36  of the federally assisted rental 
 60.37  property must agree to participate in 
 60.38  the applicable federally assisted 
 60.39  housing program and to extend any 
 60.40  existing low-income affordability 
 60.41  restrictions on the housing for the 
 60.42  maximum term permitted.  The owner must 
 60.43  also enter into an agreement that gives 
 60.44  local units of government, housing and 
 60.45  redevelopment authorities, and 
 60.46  nonprofit housing organizations the 
 60.47  right of first refusal if the rental 
 60.48  property is offered for sale.  Priority 
 60.49  must be given among comparable 
 60.50  properties to properties with the 
 60.51  longest remaining term under an 
 60.52  agreement for federal rental 
 60.53  assistance.  Priority must also be 
 60.54  given among comparable rental housing 
 60.55  developments to developments that are 
 60.56  or will be owned by local government 
 61.1   units, a housing and redevelopment 
 61.2   authority, or a nonprofit housing 
 61.3   organization.  
 61.4      Sec. 76.  [LOGGER SAFETY PROGRAM.] 
 61.5      The commissioner of labor and industry shall contract out 
 61.6   for the provision of a safety and education program for 
 61.7   Minnesota loggers under Minnesota Statutes, section 176.130. 
 61.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 61.9      Sec. 77.  [EXTRA UNEMPLOYMENT BENEFITS FOR MILITARY 
 61.10  RESERVISTS.] 
 61.11     Subdivision 1.  [ENTITLEMENT.] An applicant may be entitled 
 61.12  to extra unemployment benefits if: 
 61.13     (1) covered employment was not available to the applicant 
 61.14  upon release from active military service, or the applicant was 
 61.15  laid off due to lack of work from covered employment within 90 
 61.16  days of release from active military service; and 
 61.17     (2) the applicant then filed an application for 
 61.18  unemployment benefits and established a benefit account under 
 61.19  Minnesota Statutes, section 268.07.  
 61.20     Subd. 2.  [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 
 61.21  unemployment benefits under this section are payable from the 
 61.22  trust fund and subject to Minnesota Statutes, section 268.047.  
 61.23     Subd. 3.  [ELIGIBILITY CONDITIONS.] An applicant described 
 61.24  in subdivision 1 is eligible to collect extra unemployment 
 61.25  benefits for any week during the applicant's benefit year, if: 
 61.26     (1) the applicant was in the military reserves; 
 61.27     (2) the applicant had wages paid in covered employment in 
 61.28  each of the last four completed calendar quarters prior to being 
 61.29  called up for active military service; 
 61.30     (3) the applicant was called up for active military service 
 61.31  after January 1, 2003; 
 61.32     (4) the applicant was on active duty in the military for at 
 61.33  least six months; 
 61.34     (5) the applicant meets the eligibility requirements of 
 61.35  Minnesota Statutes, section 268.085; 
 61.36     (6) the applicant is not subject to a disqualification 
 61.37  under Minnesota Statutes, section 268.095; and 
 62.1      (7) the applicant is not entitled to any regular, 
 62.2   additional, or extended unemployment benefits for that week and 
 62.3   the applicant is not entitled to receive unemployment benefits 
 62.4   under any other state or federal law or the law of Canada for 
 62.5   that week.  
 62.6      Subd. 4.  [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 
 62.7   amount of extra unemployment benefits available to an applicant 
 62.8   under this section is the same as the applicant's regular weekly 
 62.9   benefit amount on the benefit account established under 
 62.10  subdivision 1.  
 62.11     Subd. 5.  [MAXIMUM AMOUNT OF EXTRA BENEFITS.] The maximum 
 62.12  amount of extra unemployment benefits available is 13 times the 
 62.13  applicant's weekly extra unemployment benefit amount. 
 62.14     Subd. 6.  [PROGRAM EXPIRATION.] This extra unemployment 
 62.15  benefit program expires the last Saturday in March 2006.  No 
 62.16  extra unemployment benefits shall be paid under this section 
 62.17  after the expiration of this program.  
 62.18     Subd. 7.  [APPLICABILITY.] This section shall apply to 
 62.19  applicants whose unemployment benefit entitlement results, in 
 62.20  whole or in part, because of United States Code, title 5, 
 62.21  section 8522.  
 62.22     Subd. 8.  [DEFINITIONS.] The definitions in Minnesota 
 62.23  Statutes, section 268.035, shall apply to this section. 
 62.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 62.25  following final enactment. 
 62.26     Sec. 78.  [TRIANNUAL REVIEWS BY DEPARTMENT OF LABOR AND 
 62.27  INDUSTRY.] 
 62.28     The commissioner of labor and industry may directly provide 
 62.29  triannual review services necessary for shops to maintain 
 62.30  national board and ASME stamps.  If the department elects to 
 62.31  conduct such reviews, the commissioner will by rule, adopt a fee 
 62.32  schedule calculated to return sufficient revenue to cover the 
 62.33  costs for conducting the reviews and for administrative costs 
 62.34  pertaining to the reviews.  All fees collected pursuant to this 
 62.35  section shall be deposited in the special revenue fund and are 
 62.36  appropriated to the commissioner of labor and industry for the 
 63.1   purposes of this section. 
 63.2      Sec. 79.  [SUSPENSION OF MORTGAGE CREDIT CERTIFICATE AID.] 
 63.3      Notwithstanding Minnesota Statutes, section 462C.15, during 
 63.4   the fiscal years 2006 and 2007, no applications or reports shall 
 63.5   be made pursuant to Minnesota Statutes, section 462C.15, 
 63.6   subdivision 1; no aid shall be provided pursuant to Minnesota 
 63.7   Statutes, section 462C.15, subdivision 3; and no money is 
 63.8   appropriated pursuant to Minnesota Statutes, section 462C.15, 
 63.9   subdivision 4. 
 63.10     Sec. 80.  [TRANSFER OF POWERS.] 
 63.11     All powers, duties, and obligations of the commissioner of 
 63.12  commerce in Minnesota Statutes, chapter 155A, are transferred to 
 63.13  the Board of Barber and Cosmetologist Examiners under Minnesota 
 63.14  Statutes, section 15.039, except as otherwise prescribed in this 
 63.15  act. 
 63.16     Sec. 81.  [TRANSITION AND TRANSFER OF FUNDS.] 
 63.17     The commissioner of commerce shall assist in the transition 
 63.18  of regulatory authority over the cosmetology industry from the 
 63.19  Department of Commerce to the Board of Barber and Cosmetology 
 63.20  Examiners.  Funding for this regulation is currently a part of 
 63.21  the base budget for the Department of Commerce.  To facilitate 
 63.22  the transition of funds to the Board of Barber and Cosmetology 
 63.23  Examiners, the commissioner of commerce shall enter into 
 63.24  interagency agreements with the board for amounts not to exceed 
 63.25  $50,000 in fiscal year 2005, $100,000 in fiscal year 2006, and 
 63.26  $150,000 in fiscal year 2007.  The Department of Commerce's base 
 63.27  budget for the 2008-2009 biennium shall be reduced by a total of 
 63.28  $205,000 and the Board of Barber and Cosmetology Examiners base 
 63.29  budget must be increased by the same amount. 
 63.30     Sec. 82.  [REVISOR'S INSTRUCTION.] 
 63.31     The revisor shall renumber Minnesota Statutes, sections 
 63.32  154.18, 154.22, and 154.23, as Minnesota Statutes, sections 
 63.33  154.003, 154.001, and 154.002, respectively; renumber Minnesota 
 63.34  Statutes, chapter 155A, in Minnesota Statutes, chapter 154, 
 63.35  following Minnesota Statutes, section 154.26; and correct 
 63.36  references to these sections in Minnesota Statutes and Minnesota 
 64.1   Rules.  The revisor shall delete "Board of Barber Examiners" and 
 64.2   substitute "Board of Barber and Cosmetologist Examiners" in 
 64.3   Minnesota Rules and shall delete "commissioner of commerce," 
 64.4   "commissioner," and "department" where it means the commissioner 
 64.5   or Department of Commerce, and substitute "board" or "Board of 
 64.6   Barber and Cosmetologist Examiners," as appropriate, in 
 64.7   Minnesota Rules, chapters 2642 and 2644.  The revisor shall 
 64.8   renumber Minnesota Rules, chapters 2642 and 2644, as chapters 
 64.9   2105 and 2110, respectively, and shall correct references to the 
 64.10  renumbered parts and chapters. 
 64.11     Sec. 83.  [REPEALER.] 
 64.12     (a) Minnesota Statutes 2002, sections 155A.03, subdivisions 
 64.13  11 and 13; 155A.04; and 155A.06; and Minnesota Statutes 2003 
 64.14  Supplement, section 239.101, subdivision 7, are repealed. 
 64.15     (b) Minnesota Rules, part 2100.9300, subpart 1, is repealed.
 64.16     (c) Section 60, is repealed effective January 1, 2007.