HF 2640

5th Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; creating a law enforcement 
  1.3             agency to deal with insurance fraud; prescribing its 
  1.4             powers and duties; establishing insurance assessments 
  1.5             to fund the insurance fraud prevention account; 
  1.6             providing for disclosure of certain data to the 
  1.7             Department of Commerce; transferring the automobile 
  1.8             theft prevention program to the Department of 
  1.9             Commerce; modifying provisions relating to barbers and 
  1.10            cosmetologists; creating a Board of Barber and 
  1.11            Cosmetologist Examiners; appropriating money; amending 
  1.12            Minnesota Statutes 2002, sections 13.82, subdivision 
  1.13            1; 45.0135, subdivision 6, by adding subdivisions; 
  1.14            154.01; 154.02; 154.03; 154.04; 154.06; 154.07, as 
  1.15            amended; 154.08; 154.11; 154.12; 154.161, subdivisions 
  1.16            2, 4, 5, 7; 154.18; 154.19; 154.21; 154.22; 154.23; 
  1.17            154.24; 154.25; 155A.01; 155A.02; 155A.03, 
  1.18            subdivisions 1, 2, 7, by adding subdivisions; 
  1.19            155A.045, subdivision 1; 155A.05; 155A.07, 
  1.20            subdivisions 2, 8, by adding a subdivision; 155A.08, 
  1.21            subdivisions 1, 2, 3; 155A.09; 155A.095; 155A.10; 
  1.22            155A.135; 155A.14; 155A.15; 155A.16; 299A.75, 
  1.23            subdivisions 1, 2, 3; 626.84, subdivision 1; Minnesota 
  1.24            Statutes 2003 Supplement, sections 116J.70, 
  1.25            subdivision 2a; 268.19, subdivision 1; repealing 
  1.26            Minnesota Statutes 2002, section 45.0135, subdivisions 
  1.27            1, 2. 
  1.28  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.29                             ARTICLE 1
  1.30                     INSURANCE FRAUD PREVENTION
  1.31     Section 1.  Minnesota Statutes 2002, section 13.82, 
  1.32  subdivision 1, is amended to read: 
  1.33     Subdivision 1.  [APPLICATION.] This section shall apply to 
  1.34  agencies which carry on a law enforcement function, including 
  1.35  but not limited to municipal police departments, county sheriff 
  1.36  departments, fire departments, the Bureau of Criminal 
  2.1   Apprehension, the Minnesota State Patrol, the Board of Peace 
  2.2   Officer Standards and Training, the Division of Insurance Fraud 
  2.3   Prevention in the Department of Commerce, and the Department of 
  2.4   Labor and Industry fraud investigation unit, the program 
  2.5   integrity section of, and county human service agency client and 
  2.6   provider fraud prevention and control units operated or 
  2.7   supervised by the Department of Human Services. 
  2.8      Sec. 2.  Minnesota Statutes 2002, section 45.0135, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 2a.  [AUTHORIZATION.] The commissioner may appoint 
  2.11  peace officers, as defined in section 626.84, subdivision 1, 
  2.12  paragraph (c), and establish a law enforcement agency, as 
  2.13  defined in section 626.84, subdivision 1, paragraph (h), known 
  2.14  as the Division of Insurance Fraud Prevention, to conduct 
  2.15  investigations, and to make arrests under sections 629.30 and 
  2.16  629.34.  The jurisdiction of the law enforcement agency is 
  2.17  limited to offenses related to insurance fraud. 
  2.18     Sec. 3.  Minnesota Statutes 2002, section 45.0135, is 
  2.19  amended by adding a subdivision to read: 
  2.20     Subd. 2b.  [DUTIES.] The Division of Insurance Fraud 
  2.21  Prevention shall: 
  2.22     (1) review notices and reports of insurance fraud submitted 
  2.23  by authorized insurers, their employees, and agents or 
  2.24  producers; 
  2.25     (2) respond to notifications or complaints of suspected 
  2.26  insurance fraud generated by other law enforcement agencies, 
  2.27  state or federal governmental units, or any other person; 
  2.28     (3) initiate inquiries and conduct investigations when the 
  2.29  division has reason to believe that insurance fraud has been or 
  2.30  is being committed; and 
  2.31     (4) report incidents of alleged insurance fraud disclosed 
  2.32  by its investigations to appropriate law enforcement agencies, 
  2.33  including, but not limited to, the attorney general, county 
  2.34  attorneys, or any other appropriate law enforcement or 
  2.35  regulatory agency, and shall assemble evidence, prepare charges, 
  2.36  and otherwise assist any law enforcement authority having 
  3.1   jurisdiction. 
  3.2      Sec. 4.  Minnesota Statutes 2002, section 45.0135, is 
  3.3   amended by adding a subdivision to read: 
  3.4      Subd. 2c.  [ARRESTS AND INVESTIGATIONS.] The initial 
  3.5   processing of a person arrested by the Division of Insurance 
  3.6   Fraud Prevention for an offense within its jurisdiction is the 
  3.7   responsibility of the Division of Insurance Fraud Prevention 
  3.8   unless otherwise directed by the law enforcement agency with 
  3.9   primary jurisdiction.  Subsequent investigation shall be the 
  3.10  responsibility of the Division of Insurance Fraud Prevention 
  3.11  unless otherwise directed by the law enforcement agency with 
  3.12  primary jurisdiction.  At the request of the primary 
  3.13  jurisdiction, the Division of Insurance Fraud Prevention may 
  3.14  assist in a subsequent investigation being carried out by the 
  3.15  primary jurisdiction. 
  3.16     Sec. 5.  Minnesota Statutes 2002, section 45.0135, is 
  3.17  amended by adding a subdivision to read: 
  3.18     Subd. 2d.  [POLICY FOR NOTICE OF INVESTIGATIONS.] The 
  3.19  Division of Insurance Fraud Prevention must develop a policy for 
  3.20  notifying the law enforcement agency with primary jurisdiction 
  3.21  when it has initiated investigation of any person within the 
  3.22  jurisdiction of that agency. 
  3.23     Sec. 6.  Minnesota Statutes 2002, section 45.0135, is 
  3.24  amended by adding a subdivision to read: 
  3.25     Subd. 2e.  [CHIEF LAW ENFORCEMENT OFFICER.] The 
  3.26  commissioner shall appoint a peace officer employed full time to 
  3.27  be the chief law enforcement officer and to be responsible for 
  3.28  the management of the Division of Insurance Fraud Prevention.  
  3.29  The chief law enforcement officer shall possess the necessary 
  3.30  police and management experience to manage a law enforcement 
  3.31  agency.  The chief law enforcement officer may appoint, 
  3.32  discipline, and discharge all employees of the Division of 
  3.33  Insurance Fraud Prevention.  All police managerial and 
  3.34  supervisory personnel must be full-time employees of the 
  3.35  Division of Insurance Fraud Prevention.  Supervisory personnel 
  3.36  must be on duty and available any time peace officers of the 
  4.1   Division of Insurance Fraud Prevention are on duty. 
  4.2      Sec. 7.  Minnesota Statutes 2002, section 45.0135, is 
  4.3   amended by adding a subdivision to read: 
  4.4      Subd. 2f.  [COMPLIANCE.] Except as otherwise provided in 
  4.5   this section, the Division of Insurance Fraud Prevention shall 
  4.6   comply with all statutes and administrative rules relating to 
  4.7   the operation and management of a law enforcement agency. 
  4.8      Sec. 8.  Minnesota Statutes 2002, section 45.0135, 
  4.9   subdivision 6, is amended to read: 
  4.10     Subd. 6.  [INSURANCE FRAUD PREVENTION ACCOUNT.] The 
  4.11  insurance fraud prevention account is created in the state 
  4.12  treasury.  It consists of any appropriations made by law Money 
  4.13  received from assessments under subdivision 7 is deposited in 
  4.14  the account.  Money in this fund is appropriated to the 
  4.15  commissioner of commerce for the purposes specified in this 
  4.16  section and sections 60A.951 to 60A.956. 
  4.17     Sec. 9.  Minnesota Statutes 2002, section 45.0135, is 
  4.18  amended by adding a subdivision to read: 
  4.19     Subd. 7.  [ASSESSMENT.] Each insurer authorized to sell 
  4.20  insurance in the state of Minnesota shall remit an assessment to 
  4.21  the commissioner for deposit in the insurance fraud prevention 
  4.22  account on or before June 1 of each year.  The amount of the 
  4.23  assessment shall be based on the insurer's total assets and on 
  4.24  the insurer's total written Minnesota premium, for the preceding 
  4.25  fiscal year, as reported pursuant to section 60A.13.  The 
  4.26  assessment is calculated as follows: 
  4.27            Total Assets                      Assessment
  4.28       Less than $100,000,000                   $  200
  4.29       $100,000,000 to $1,000,000,000           $  750
  4.30       Over $1,000,000,000                      $2,000
  4.31       
  4.32       Minnesota Written Premium              Assessment 
  4.33       Less than $10,000,000                    $  200
  4.34       $10,000,000 to $100,000,000              $  750
  4.35       Over $100,000,000                        $2,000
  4.36     For purposes of this subdivision, the following entities 
  5.1   are not considered to be insurers authorized to sell insurance 
  5.2   in the state of Minnesota:  risk retention groups; township 
  5.3   mutuals organized under chapter 67A; or health maintenance 
  5.4   organizations organized under chapter 62D. 
  5.5      Sec. 10.  Minnesota Statutes 2003 Supplement, section 
  5.6   268.19, subdivision 1, is amended to read: 
  5.7      Subdivision 1.  [USE OF DATA.] (a) Except as otherwise 
  5.8   provided by this section, data gathered from any employer or 
  5.9   individual pursuant to the administration of the Minnesota 
  5.10  Unemployment Insurance Law are private data on individuals or 
  5.11  nonpublic data not on individuals as defined in section 13.02, 
  5.12  subdivisions 9 and 12, and may not be disclosed except pursuant 
  5.13  to a court order or section 13.05.  These data may be 
  5.14  disseminated to and used by the following agencies without the 
  5.15  consent of the subject of the data:  
  5.16     (1) state and federal agencies specifically authorized 
  5.17  access to the data by state or federal law; 
  5.18     (2) any agency of Minnesota or any other state; or any 
  5.19  federal agency charged with the administration of an employment 
  5.20  security law or the maintenance of a system of public employment 
  5.21  offices; 
  5.22     (3) human rights agencies within Minnesota that have 
  5.23  enforcement powers; 
  5.24     (4) the Department of Revenue must have access to 
  5.25  department private data on individuals and nonpublic data not on 
  5.26  individuals only to the extent necessary for enforcement of 
  5.27  Minnesota tax laws; 
  5.28     (5) public and private agencies responsible for 
  5.29  administering publicly financed assistance programs for the 
  5.30  purpose of monitoring the eligibility of the program's 
  5.31  recipients; 
  5.32     (6) the Department of Labor and Industry and the Division 
  5.33  of Insurance Fraud Prevention in the Department of Commerce on 
  5.34  an interchangeable basis with the department subject to the 
  5.35  following limitations and regardless of any law to the contrary: 
  5.36     (i) the department must have access to private data on 
  6.1   individuals and nonpublic data not on individuals for uses 
  6.2   consistent with the administration of its duties under the 
  6.3   Minnesota Unemployment Insurance Law; and 
  6.4      (ii) the Department of Labor and Industry and the Division 
  6.5   of Insurance Fraud Prevention in the Department of Commerce must 
  6.6   have access to private data on individuals and nonpublic data 
  6.7   not on individuals for uses consistent with the administration 
  6.8   of its their duties under Minnesota law; 
  6.9      (7) the Department of Employment and Economic Development 
  6.10  may have access to private data on individual employers and 
  6.11  nonpublic data not on individual employers for its internal use 
  6.12  only; when received by the Department of Employment and Economic 
  6.13  Development, the data remain private data on individuals or 
  6.14  nonpublic data; 
  6.15     (8) local and state welfare agencies for monitoring the 
  6.16  eligibility of the data subject for assistance programs, or for 
  6.17  any employment or training program administered by those 
  6.18  agencies, whether alone, in combination with another welfare 
  6.19  agency, or in conjunction with the department or to monitor and 
  6.20  evaluate the statewide Minnesota family investment program by 
  6.21  providing data on recipients and former recipients of food 
  6.22  stamps or food support, cash assistance under chapter 256, 256D, 
  6.23  256J, or 256K, child care assistance under chapter 119B, or 
  6.24  medical programs under chapter 256B, 256D, or 256L; 
  6.25     (9) local, state, and federal law enforcement agencies for 
  6.26  the sole purpose of ascertaining the last known address and 
  6.27  employment location of the data subject, provided the data 
  6.28  subject is the subject of a criminal investigation; 
  6.29     (10) the federal Immigration and Naturalization Service 
  6.30  shall have access to data on specific individuals and specific 
  6.31  employers provided the specific individual or specific employer 
  6.32  is the subject of an investigation by that agency; and 
  6.33     (11) the Department of Health may have access to private 
  6.34  data on individuals and nonpublic data not on individuals solely 
  6.35  for the purposes of epidemiologic investigations.  
  6.36     (b) Data on individuals and employers that are collected, 
  7.1   maintained, or used by the department in an investigation 
  7.2   pursuant to section 268.182 are confidential as to data on 
  7.3   individuals and protected nonpublic data not on individuals as 
  7.4   defined in section 13.02, subdivisions 3 and 13, and must not be 
  7.5   disclosed except pursuant to statute or court order or to a 
  7.6   party named in a criminal proceeding, administrative or 
  7.7   judicial, for preparation of a defense.  
  7.8      (c) Tape recordings and transcripts of recordings of 
  7.9   proceedings conducted in accordance with section 268.105 and 
  7.10  exhibits received into evidence at those proceedings are private 
  7.11  data on individuals and nonpublic data not on individuals and 
  7.12  must be disclosed only pursuant to the administration of section 
  7.13  268.105, or pursuant to a court order.  
  7.14     (d) The department may disseminate an employer's name, 
  7.15  address, industry code, occupations employed, and the number of 
  7.16  employees by ranges of not less than 100 for the purpose of 
  7.17  assisting individuals using the Minnesota Workforce Center 
  7.18  system in obtaining employment. 
  7.19     (e) The general aptitude test battery and the nonverbal 
  7.20  aptitude test battery as administered by the department are 
  7.21  private data on individuals or nonpublic data.  
  7.22     (f) Data gathered by the department pursuant to the 
  7.23  administration of the Minnesota unemployment insurance program 
  7.24  and the job service must not be made the subject or the basis 
  7.25  for any suit in any civil proceedings, administrative or 
  7.26  judicial, unless the action is initiated by the department. 
  7.27     Sec. 11.  Minnesota Statutes 2002, section 626.84, 
  7.28  subdivision 1, is amended to read: 
  7.29     Subdivision 1.  [DEFINITIONS.] For purposes of sections 
  7.30  626.84 to 626.863, the following terms have the meanings given 
  7.31  them: 
  7.32     (a) "Board" means the Board of Peace Officer Standards and 
  7.33  Training. 
  7.34     (b) "Director" means the executive director of the board. 
  7.35     (c) "Peace officer" means: 
  7.36     (1) an employee or an elected or appointed official of a 
  8.1   political subdivision or law enforcement agency who is licensed 
  8.2   by the board, charged with the prevention and detection of crime 
  8.3   and the enforcement of the general criminal laws of the state 
  8.4   and who has the full power of arrest, and shall also include the 
  8.5   Minnesota State Patrol, agents of the Division of Alcohol and 
  8.6   Gambling Enforcement, state conservation officers, Metropolitan 
  8.7   Transit police officers, and Department of Corrections' Fugitive 
  8.8   Apprehension Unit officers, and Department of Commerce Insurance 
  8.9   Fraud Unit officers; and 
  8.10     (2) a peace officer who is employed by a law enforcement 
  8.11  agency of a federally recognized tribe, as defined in United 
  8.12  States Code, title 25, section 450b(e), and who is licensed by 
  8.13  the board. 
  8.14     (d) "Constable" has the meaning assigned to it in section 
  8.15  367.40. 
  8.16     (e) "Deputy constable" has the meaning assigned to it in 
  8.17  section 367.40. 
  8.18     (f) "Part-time peace officer" means an individual licensed 
  8.19  by the board whose services are utilized by law enforcement 
  8.20  agencies no more than an average of 20 hours per week, not 
  8.21  including time spent on call when no call to active duty is 
  8.22  received, calculated on an annual basis, who has either full 
  8.23  powers of arrest or authorization to carry a firearm while on 
  8.24  active duty.  The term shall apply even though the individual 
  8.25  receives no compensation for time spent on active duty, and 
  8.26  shall apply irrespective of the title conferred upon the 
  8.27  individual by any law enforcement agency.  The limitation on the 
  8.28  average number of hours in which the services of a part-time 
  8.29  peace officer may be utilized shall not apply to a part-time 
  8.30  peace officer who has formally notified the board pursuant to 
  8.31  rules adopted by the board of the part-time peace officer's 
  8.32  intention to pursue the specialized training for part-time peace 
  8.33  officers who desire to become peace officers pursuant to 
  8.34  sections 626.843, subdivision 1, clause (g), and 626.845, 
  8.35  subdivision 1, clause (g). 
  8.36     (g) "Reserve officer" means an individual whose services 
  9.1   are utilized by a law enforcement agency to provide 
  9.2   supplementary assistance at special events, traffic or crowd 
  9.3   control, and administrative or clerical assistance.  A reserve 
  9.4   officer's duties do not include enforcement of the general 
  9.5   criminal laws of the state, and the officer does not have full 
  9.6   powers of arrest or authorization to carry a firearm on duty. 
  9.7      (h) "Law enforcement agency" means: 
  9.8      (1) a unit of state or local government that is authorized 
  9.9   by law to grant full powers of arrest and to charge a person 
  9.10  with the duties of preventing and detecting crime and enforcing 
  9.11  the general criminal laws of the state; and 
  9.12     (2) subject to the limitations in section 626.93, a law 
  9.13  enforcement agency of a federally recognized tribe, as defined 
  9.14  in United States Code, title 25, section 450b(e). 
  9.15     (i) "Professional peace officer education" means a 
  9.16  postsecondary degree program, or a nondegree program for persons 
  9.17  who already have a college degree, that is offered by a college 
  9.18  or university in Minnesota, designed for persons seeking 
  9.19  licensure as a peace officer, and approved by the board. 
  9.20     Sec. 12.  [REPEALER.] 
  9.21     Minnesota Statutes 2002, section 45.0135, subdivisions 1 
  9.22  and 2, are repealed. 
  9.23     Sec. 13.  [EFFECTIVE DATE.] 
  9.24     Sections 1 to 12 are effective the day following final 
  9.25  enactment. 
  9.26                             ARTICLE 2
  9.27                       AUTO THEFT PREVENTION
  9.28     Section 1.  Minnesota Statutes 2002, section 299A.75, 
  9.29  subdivision 1, is amended to read: 
  9.30     Subdivision 1.  [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 
  9.31  (a) The commissioner of public safety commerce shall: 
  9.32     (1) develop and sponsor the implementation of statewide 
  9.33  plans, programs, and strategies to combat automobile theft, 
  9.34  improve the administration of the automobile theft laws, and 
  9.35  provide a forum for identification of critical problems for 
  9.36  those persons dealing with automobile theft; 
 10.1      (2) coordinate the development, adoption, and 
 10.2   implementation of plans, programs, and strategies relating to 
 10.3   interagency and intergovernmental cooperation with respect to 
 10.4   automobile theft enforcement; 
 10.5      (3) annually audit the plans and programs that have been 
 10.6   funded in whole or in part to evaluate the effectiveness of the 
 10.7   plans and programs and withdraw funding should the commissioner 
 10.8   determine that a plan or program is ineffective or is no longer 
 10.9   in need of further financial support from the fund; 
 10.10     (4) develop a plan of operation including: 
 10.11     (i) an assessment of the scope of the problem of automobile 
 10.12  theft, including areas of the state where the problem is 
 10.13  greatest; 
 10.14     (ii) an analysis of various methods of combating the 
 10.15  problem of automobile theft; 
 10.16     (iii) a plan for providing financial support to combat 
 10.17  automobile theft; 
 10.18     (iv) a plan for eliminating car hijacking; and 
 10.19     (v) an estimate of the funds required to implement the 
 10.20  plan; and 
 10.21     (5) distribute money, in consultation with the commissioner 
 10.22  of public safety, pursuant to subdivision 3 from the automobile 
 10.23  theft prevention special revenue account for automobile theft 
 10.24  prevention activities, including: 
 10.25     (i) paying the administrative costs of the program; 
 10.26     (ii) providing financial support to the State Patrol and 
 10.27  local law enforcement agencies for automobile theft enforcement 
 10.28  teams; 
 10.29     (iii) providing financial support to state or local law 
 10.30  enforcement agencies for programs designed to reduce the 
 10.31  incidence of automobile theft and for improved equipment and 
 10.32  techniques for responding to automobile thefts; 
 10.33     (iv) providing financial support to local prosecutors for 
 10.34  programs designed to reduce the incidence of automobile theft; 
 10.35     (v) providing financial support to judicial agencies for 
 10.36  programs designed to reduce the incidence of automobile theft; 
 11.1      (vi) providing financial support for neighborhood or 
 11.2   community organizations or business organizations for programs 
 11.3   designed to reduce the incidence of automobile theft and to 
 11.4   educate people about the common methods of automobile theft, the 
 11.5   models of automobiles most likely to be stolen, and the times 
 11.6   and places automobile theft is most likely to occur; and 
 11.7      (vii) providing financial support for automobile theft 
 11.8   educational and training programs for state and local law 
 11.9   enforcement officials, driver and vehicle services exam and 
 11.10  inspections staff, and members of the judiciary. 
 11.11     (b) The commissioner may not spend in any fiscal year more 
 11.12  than ten percent of the money in the fund for the program's 
 11.13  administrative and operating costs.  The commissioner is 
 11.14  annually appropriated and must distribute the amount of the 
 11.15  proceeds credited to the automobile theft prevention special 
 11.16  revenue account each year, less the transfer of $1,300,000 each 
 11.17  year to the general fund described in section 168A.40, 
 11.18  subdivision 4. 
 11.19     Sec. 2.  Minnesota Statutes 2002, section 299A.75, 
 11.20  subdivision 2, is amended to read: 
 11.21     Subd. 2.  [ANNUAL REPORT.] By January 15 of each year, the 
 11.22  commissioner shall report to the governor and legislature the 
 11.23  chairs and ranking minority members of the house and senate 
 11.24  committees having jurisdiction over the Departments of Commerce 
 11.25  and Public Safety on the activities and expenditures in the 
 11.26  preceding year. 
 11.27     Sec. 3.  Minnesota Statutes 2002, section 299A.75, 
 11.28  subdivision 3, is amended to read: 
 11.29     Subd. 3.  [GRANT CRITERIA; APPLICATION.] (a) A county 
 11.30  attorney's office, law enforcement agency, neighborhood 
 11.31  organization, community organization, or business organization 
 11.32  may apply for a grant under this section.  Multiple offices or 
 11.33  agencies within a county may apply for a grant under this 
 11.34  section. 
 11.35     (b) The commissioner, in consultation with the commissioner 
 11.36  of public safety, must develop criteria for the fair 
 12.1   distribution of grants from the automobile theft prevention 
 12.2   account that address the following factors: 
 12.3      (1) the number of reported automobile thefts per capita in 
 12.4   a city, county, or region, not merely the total number of 
 12.5   automobile thefts; 
 12.6      (2) the population of the jurisdiction of the applicant 
 12.7   office or agency; 
 12.8      (3) the total funds distributed within a county or region; 
 12.9   and 
 12.10     (4) the statewide interest in automobile theft reduction. 
 12.11     (c) The commissioner may give priority to: 
 12.12     (1) offices and agencies engaged in a collaborative effort 
 12.13  to reduce automobile theft; and 
 12.14     (2) counties or regions with the greatest rates of 
 12.15  automobile theft. 
 12.16     (d) The minimum amount of a grant award is $5,000.  After 
 12.17  considering the automobile theft rate and total population of an 
 12.18  applicant's jurisdiction, if a grant award, as determined under 
 12.19  the criteria and priorities in this subdivision, would be less 
 12.20  than $5,000, it must not be awarded. 
 12.21     Sec. 4.  [TRANSFER OF POWERS.] 
 12.22     The powers and duties of the Department of Public Safety 
 12.23  under Minnesota Statutes, section 299A.75, are transferred to 
 12.24  the Department of Commerce.  Minnesota Statutes, section 15.039, 
 12.25  applies to this transfer of powers. 
 12.26     Sec. 5.  [REVISOR INSTRUCTION.] 
 12.27     The revisor of statutes shall recodify Minnesota Statutes, 
 12.28  section 299A.75, into a chapter of Minnesota Statutes dealing 
 12.29  with the Department of Commerce. 
 12.30     Sec. 6.  [EFFECTIVE DATE.] 
 12.31     This article is effective July 1, 2004. 
 12.32                             ARTICLE 3 
 12.33                     BARBERS AND COSMETOLOGISTS 
 12.34     Section 1.  Minnesota Statutes 2003 Supplement, section 
 12.35  116J.70, subdivision 2a, is amended to read: 
 12.36     Subd. 2a.  [LICENSE; EXCEPTIONS.] "Business license" or 
 13.1   "license" does not include the following:  
 13.2      (1) any occupational license or registration issued by a 
 13.3   licensing board listed in section 214.01 or any occupational 
 13.4   registration issued by the commissioner of health pursuant to 
 13.5   section 214.13; 
 13.6      (2) any license issued by a county, home rule charter city, 
 13.7   statutory city, township, or other political subdivision; 
 13.8      (3) any license required to practice the following 
 13.9   occupation regulated by the following sections:  
 13.10     (i) abstracters regulated pursuant to chapter 386; 
 13.11     (ii) accountants regulated pursuant to chapter 326A; 
 13.12     (iii) adjusters regulated pursuant to chapter 72B; 
 13.13     (iv) architects regulated pursuant to chapter 326; 
 13.14     (v) assessors regulated pursuant to chapter 270; 
 13.15     (vi) athletic trainers regulated pursuant to chapter 148; 
 13.16     (vii) attorneys regulated pursuant to chapter 481; 
 13.17     (viii) auctioneers regulated pursuant to chapter 330; 
 13.18     (ix) barbers and cosmetologists regulated pursuant to 
 13.19  chapter 154; 
 13.20     (x) beauticians regulated pursuant to chapter 155A; 
 13.21     (xi) boiler operators regulated pursuant to chapter 183; 
 13.22     (xii) (xi) chiropractors regulated pursuant to chapter 148; 
 13.23     (xiii) (xii) collection agencies regulated pursuant to 
 13.24  chapter 332; 
 13.25     (xiv) cosmetologists regulated pursuant to chapter 155A; 
 13.26     (xv) (xiii) dentists, registered dental assistants, and 
 13.27  dental hygienists regulated pursuant to chapter 150A; 
 13.28     (xvi) (xiv) detectives regulated pursuant to chapter 326; 
 13.29     (xvii) (xv) electricians regulated pursuant to chapter 326; 
 13.30     (xviii) (xvi) mortuary science practitioners regulated 
 13.31  pursuant to chapter 149A; 
 13.32     (xix) (xvii) engineers regulated pursuant to chapter 326; 
 13.33     (xx) (xviii) insurance brokers and salespersons regulated 
 13.34  pursuant to chapter 60A; 
 13.35     (xxi) (xix) certified interior designers regulated pursuant 
 13.36  to chapter 326; 
 14.1      (xxii) (xx) midwives regulated pursuant to chapter 147D; 
 14.2      (xxiii) (xxi) nursing home administrators regulated 
 14.3   pursuant to chapter 144A; 
 14.4      (xxiv) (xxii) optometrists regulated pursuant to chapter 
 14.5   148; 
 14.6      (xxv) (xxiii) osteopathic physicians regulated pursuant to 
 14.7   chapter 147; 
 14.8      (xxvi) (xxiv) pharmacists regulated pursuant to chapter 
 14.9   151; 
 14.10     (xxvii) (xxv) physical therapists regulated pursuant to 
 14.11  chapter 148; 
 14.12     (xxviii) (xxvi) physician assistants regulated pursuant to 
 14.13  chapter 147A; 
 14.14     (xxix) (xxvii) physicians and surgeons regulated pursuant 
 14.15  to chapter 147; 
 14.16     (xxx) (xxviii) plumbers regulated pursuant to chapter 326; 
 14.17     (xxxi) (xxix) podiatrists regulated pursuant to chapter 
 14.18  153; 
 14.19     (xxxii) (xxx) practical nurses regulated pursuant to 
 14.20  chapter 148; 
 14.21     (xxxiii) (xxxi) professional fund-raisers regulated 
 14.22  pursuant to chapter 309; 
 14.23     (xxxiv) (xxxii) psychologists regulated pursuant to chapter 
 14.24  148; 
 14.25     (xxxv) (xxxiii) real estate brokers, salespersons, and 
 14.26  others regulated pursuant to chapters 82 and 83; 
 14.27     (xxxvi) (xxxiv) registered nurses regulated pursuant to 
 14.28  chapter 148; 
 14.29     (xxxvii) (xxxv) securities brokers, dealers, agents, and 
 14.30  investment advisers regulated pursuant to chapter 80A; 
 14.31     (xxxviii) (xxxvi) steamfitters regulated pursuant to 
 14.32  chapter 326; 
 14.33     (xxxix) (xxxvii) teachers and supervisory and support 
 14.34  personnel regulated pursuant to chapter 125; 
 14.35     (xl) (xxxviii) veterinarians regulated pursuant to chapter 
 14.36  156; 
 15.1      (xli) (xxxix) water conditioning contractors and installers 
 15.2   regulated pursuant to chapter 326; 
 15.3      (xlii) (xl) water well contractors regulated pursuant to 
 15.4   chapter 103I; 
 15.5      (xliii) (xli) water and waste treatment operators regulated 
 15.6   pursuant to chapter 115; 
 15.7      (xliv) (xlii) motor carriers regulated pursuant to chapter 
 15.8   221; 
 15.9      (xlv) (xliii) professional firms regulated under chapter 
 15.10  319B; 
 15.11     (xlvi) (xliv) real estate appraisers regulated pursuant to 
 15.12  chapter 82B; 
 15.13     (xlvii) (xlv) residential building contractors, residential 
 15.14  remodelers, residential roofers, manufactured home installers, 
 15.15  and specialty contractors regulated pursuant to chapter 326; 
 15.16     (xlviii) (xlvi) licensed professional counselors regulated 
 15.17  pursuant to chapter 148B; 
 15.18     (4) any driver's license required pursuant to chapter 171; 
 15.19     (5) any aircraft license required pursuant to chapter 360; 
 15.20     (6) any watercraft license required pursuant to chapter 
 15.21  86B; 
 15.22     (7) any license, permit, registration, certification, or 
 15.23  other approval pertaining to a regulatory or management program 
 15.24  related to the protection, conservation, or use of or 
 15.25  interference with the resources of land, air, or water, which is 
 15.26  required to be obtained from a state agency or instrumentality; 
 15.27  and 
 15.28     (8) any pollution control rule or standard established by 
 15.29  the Pollution Control Agency or any health rule or standard 
 15.30  established by the commissioner of health or any licensing rule 
 15.31  or standard established by the commissioner of human services. 
 15.32     Sec. 2.  Minnesota Statutes 2002, section 154.01, is 
 15.33  amended to read: 
 15.34     154.01 [REGISTRATION MANDATORY.] 
 15.35     (a) No person shall practice, offer to practice, or attempt 
 15.36  to practice barbering without a current certificate of 
 16.1   registration as a registered barber, issued pursuant to 
 16.2   provisions of this chapter sections 154.01 to 154.26 by the 
 16.3   Board of Barber and Cosmetologist Examiners.  
 16.4      (b) No person shall serve, offer to serve, or attempt to 
 16.5   serve as an apprentice under a registered barber without a 
 16.6   current certificate of registration as a registered apprentice 
 16.7   or temporary apprentice permit issued pursuant to provisions of 
 16.8   this chapter sections 154.01 to 154.26 by the Board of Barber 
 16.9   and Cosmetologist Examiners.  The registered apprentice shall, 
 16.10  prior to or immediately upon issuance of the apprentice's 
 16.11  certificate of registration, and immediately after changing 
 16.12  employment, advise the board of the name, address, and 
 16.13  certificate number of the registered barber under whom the 
 16.14  registered apprentice is working.  
 16.15     (c) No person shall operate a barber shop unless it is at 
 16.16  all times under the direct supervision and management of a 
 16.17  registered barber and the owner or operator of the barber shop 
 16.18  possesses a current shop registration card, issued under this 
 16.19  chapter sections 154.01 to 154.26 by the Board of Barber and 
 16.20  Cosmetologist Examiners.  
 16.21     (d) No person shall serve, offer to serve, or attempt to 
 16.22  serve as an instructor of barbering without a current 
 16.23  certificate of registration as a registered instructor of 
 16.24  barbering or a temporary permit as an instructor of barbering, 
 16.25  as provided for the board by rule, issued under this chapter 
 16.26  sections 154.01 to 154.26 by the Board of Barber and 
 16.27  Cosmetologist Examiners. 
 16.28     (e) No person shall operate a barber school unless the 
 16.29  owner or operator possesses a current certificate of 
 16.30  registration as a barber school, issued under this chapter 
 16.31  sections 154.01 to 154.26 by the Board of Barber and 
 16.32  Cosmetologist Examiners. 
 16.33     Sec. 3.  Minnesota Statutes 2002, section 154.02, is 
 16.34  amended to read: 
 16.35     154.02 [WHAT CONSTITUTES BARBERING.] 
 16.36     Any one or any combination of the following practices when 
 17.1   done upon the head and neck for cosmetic purposes and not for 
 17.2   the treatment of disease or physical or mental ailments and when 
 17.3   done for payment directly or indirectly or without payment for 
 17.4   the public generally constitutes the practice of barbering 
 17.5   within the meaning of this chapter sections 154.01 to 154.26:  
 17.6   to shave, trim the beard, cut or bob the hair of any person of 
 17.7   either sex for compensation or other reward received by the 
 17.8   person performing such service or any other person; to give 
 17.9   facial and scalp massage or treatments with oils, creams, 
 17.10  lotions, or other preparations either by hand or mechanical 
 17.11  appliances; to singe, shampoo the hair, or apply hair tonics; or 
 17.12  to apply cosmetic preparations, antiseptics, powders, oils, 
 17.13  clays, or lotions to scalp, face, or neck.  
 17.14     Sec. 4.  Minnesota Statutes 2002, section 154.03, is 
 17.15  amended to read: 
 17.16     154.03 [APPRENTICES MAY BE EMPLOYED.] 
 17.17     A registered apprentice may practice barbering only if the 
 17.18  registered apprentice is, at all times, under the immediate 
 17.19  personal supervision of a registered barber and is in compliance 
 17.20  with this chapter sections 154.01 to 154.26 and the rules of the 
 17.21  board.  
 17.22     Sec. 5.  Minnesota Statutes 2002, section 154.04, is 
 17.23  amended to read: 
 17.24     154.04 [PERSONS EXEMPT FROM REGISTRATION.] 
 17.25     The following persons are exempt from the provisions of 
 17.26  this chapter sections 154.01 to 154.26 while in the proper 
 17.27  discharge of their professional duties: 
 17.28     (1) persons authorized by the law of this state to practice 
 17.29  medicine, surgery, osteopathy, and chiropractic; 
 17.30     (2) commissioned medical or surgical officers of the United 
 17.31  States armed services; 
 17.32     (3) registered nurses, licensed practical nurses, and 
 17.33  nursing aides performing services under the direction and 
 17.34  supervision of a registered nurse, provided, however, that no 
 17.35  additional compensation shall be paid for such service and 
 17.36  patients who are so attended shall not be charged for barbering; 
 18.1      (4) persons practicing beauty culture cosmetologists, 
 18.2   provided, however, that persons practicing beauty culture 
 18.3   cosmetologists shall not hold themselves out as barbers or, 
 18.4   except in the case of manicurists, practice their occupation in 
 18.5   a barber shop; and 
 18.6      (5) persons who perform barbering services for charitable 
 18.7   purposes in nursing homes, shelters, missions, or other similar 
 18.8   facilities, provided, however, that no direct or indirect 
 18.9   compensation is received for the services, and that persons who 
 18.10  receive barbering services are not charged for the services. 
 18.11     Sec. 6.  Minnesota Statutes 2002, section 154.06, is 
 18.12  amended to read: 
 18.13     154.06 [WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 
 18.14  REGISTERED APPRENTICE.] 
 18.15     A person is qualified to receive a certificate of 
 18.16  registration as a registered apprentice: 
 18.17     (1) who has completed at least ten grades of an approved 
 18.18  school; 
 18.19     (2) who has graduated from a barber school approved by the 
 18.20  board; and 
 18.21     (3) who has passed an examination conducted by the board to 
 18.22  determine fitness to practice as a registered apprentice.  
 18.23     An applicant for a certificate of registration to practice 
 18.24  as an apprentice who fails to pass the examination conducted by 
 18.25  the board is required to complete a further course of study of 
 18.26  at least 500 hours, of not more than eight hours in any one 
 18.27  working day, in a barber school approved by the board.  
 18.28     A certificate of registration of an apprentice shall be 
 18.29  valid for four years from the date the certificate of 
 18.30  registration is issued by the board and shall not be renewed.  
 18.31  During such the four-year period the certificate of registration 
 18.32  shall remain in full force and effect only if the apprentice 
 18.33  complies with all the provisions of this chapter, as 
 18.34  amended sections 154.01 to 154.26, including the payment of an 
 18.35  annual fee, and the rules of the board.  
 18.36     If any a registered apprentice shall, during the term in 
 19.1   which the certificate of registration is in effect, enter full 
 19.2   time enters full-time active duty in the armed forces of the 
 19.3   United States of America, the expiration date of the certificate 
 19.4   of registration shall be extended by a period of time equal to 
 19.5   the period or periods of active duty.  
 19.6      Sec. 7.  Minnesota Statutes 2002, section 154.07, as 
 19.7   amended by Laws 2003, chapter 130, section 12, is amended to 
 19.8   read: 
 19.9      154.07 [BARBER SCHOOLS; REQUIREMENTS.] 
 19.10     Subdivision 1.  [ADMISSION REQUIREMENTS; COURSE OF 
 19.11  INSTRUCTION.] No barber school shall be approved by the board 
 19.12  unless it requires, as a prerequisite to admission thereto, ten 
 19.13  grades of an approved school or its equivalent, as determined by 
 19.14  an examination conducted by the commissioner of education, which 
 19.15  shall issue a certificate that the student has passed the 
 19.16  required examination, and unless it requires, as a prerequisite 
 19.17  to graduation, a course of instruction of at least 1,500 hours, 
 19.18  of not more than eight hours in any one working day; such.  The 
 19.19  course of instruction to must include the following subjects:  
 19.20  scientific fundamentals for barbering,; hygiene,; practical 
 19.21  study of the hair, skin, muscles, and nerves,; structure of the 
 19.22  head, face, and neck,; elementary chemistry relating to 
 19.23  sterilization and antiseptics; diseases of the skin, hair, and 
 19.24  glands,; massaging and manipulating the muscles of the face and 
 19.25  neck,; haircutting,; shaving, and; trimming the beard; 
 19.26  bleaching, tinting and dyeing the hair,; and the chemical 
 19.27  straightening of hair. 
 19.28     Subd. 3.  [COSTS.] It shall be is permissible for barber 
 19.29  schools to make a reasonable charge for materials used and 
 19.30  services rendered by students for work done in such the schools 
 19.31  by students. 
 19.32     Subd. 3a.  [NUMBER OF INSTRUCTORS.] There shall must be one 
 19.33  registered instructor of barbering for every 17 students or 
 19.34  minor fraction in excess of 17.  No Instruction shall must not 
 19.35  be performed by persons not possessing a certificate of 
 19.36  registration as an instructor of barbering or a temporary permit 
 20.1   as an instructor of barbering. 
 20.2      Subd. 4.  [BUILDING REQUIREMENTS.] Each barber school shall 
 20.3   must be conducted and operated in one building, or in connecting 
 20.4   buildings, and no a barber school shall must not have any 
 20.5   department or branch in a building completely separated or 
 20.6   removed from the remainder of the barber school. 
 20.7      Subd. 5.  [OWNER'S REQUIREMENTS.] Any person may own and 
 20.8   operate a barber school if the person has had six years' 
 20.9   continuous experience as a barber, provided the person first 
 20.10  secures from the board an annual certificate of registration as 
 20.11  a barber school, keeps it prominently displayed, and before 
 20.12  commencing business: 
 20.13     (1) files with the secretary of state a bond to the state 
 20.14  approved by the attorney general in the sum of $25,000, 
 20.15  conditioned upon the faithful compliance of the barber school 
 20.16  with all the provisions herein sections 154.01 to 154.26, and to 
 20.17  pay all judgments that may be obtained against the school, or 
 20.18  the owners thereof, on account of fraud, misrepresentation, or 
 20.19  deceit practiced by them or their agents; and 
 20.20     (2) keeps prominently displayed on the exterior a 
 20.21  substantial sign indicating that the establishment is a barber 
 20.22  school. 
 20.23     Subd. 5a.  [STUDENT PERMITS.] All barber schools upon 
 20.24  receiving students shall immediately apply to the board for 
 20.25  student permits upon forms for that purpose furnished by the 
 20.26  board. 
 20.27     Subd. 5b.  [DESIGNATED OPERATOR.] When a person who owns a 
 20.28  barber school does not meet the requirements of this section to 
 20.29  operate a barber school, the owner shall notify the board in 
 20.30  writing and under oath of the identity of the person designated 
 20.31  to operate the barber school and shall notify the board of any 
 20.32  change of operator by telephone within 24 hours of such change, 
 20.33  exclusive of Saturdays, Sundays, and legal holidays, and shall 
 20.34  notify the board in writing and under oath within 72 hours of 
 20.35  such change. 
 20.36     Subd. 6.  [OPERATION BY TECHNICAL COLLEGE OR STATE 
 21.1   INSTITUTION.] A public technical college or a state institution 
 21.2   may operate a barber school provided it has in its employment a 
 21.3   qualified instructor holding a current certificate of 
 21.4   registration as a barber instructor and provided that it secures 
 21.5   from the board of Barber Examiners an annual certificate of 
 21.6   registration and does so in accordance with this chapter 
 21.7   sections 154.01 to 154.26 and the rules of the board for barber 
 21.8   schools but without the requirement to file a performance bond 
 21.9   with the secretary of state. 
 21.10     Sec. 8.  Minnesota Statutes 2002, section 154.08, is 
 21.11  amended to read: 
 21.12     154.08 [APPLICATION; FEE.] 
 21.13     Each applicant for an examination shall: 
 21.14     (1) make application to the Board of Barber and 
 21.15  Cosmetologist Examiners on blank forms prepared and furnished by 
 21.16  it, such the application to contain proof under the applicant's 
 21.17  oath of the particular qualifications of the applicant; 
 21.18     (2) furnish to the board two five inch x three inch signed 
 21.19  photographs of the applicant, one to accompany the application 
 21.20  and one to be returned to the applicant, to be presented to the 
 21.21  board when the applicant appears for examination; and 
 21.22     (3) pay to the board the required fee.  
 21.23     Sec. 9.  Minnesota Statutes 2002, section 154.11, is 
 21.24  amended to read: 
 21.25     154.11 [EXAMINATION OF NONRESIDENT BARBERS AND INSTRUCTORS 
 21.26  OF BARBERING; TEMPORARY APPRENTICE PERMITS.] 
 21.27     Subdivision 1.  [EXAMINATION OF NONRESIDENTS.] A person who 
 21.28  meets all of the requirements for licensure barber registration 
 21.29  in this chapter sections 154.01 to 154.26 and either has a 
 21.30  license, certificate of registration, or an equivalent as a 
 21.31  practicing barber or instructor of barbering from another state 
 21.32  or country which in the discretion of the board has 
 21.33  substantially the same requirements for licensing or registering 
 21.34  barbers and instructors of barbering as required by this chapter 
 21.35  sections 154.01 to 154.26 or can prove by sworn affidavits 
 21.36  practice as a barber or instructor of barbering in another state 
 22.1   or country for at least five years immediately prior to making 
 22.2   application in this state, shall, upon payment of the required 
 22.3   fee, be issued a certificate of registration without 
 22.4   examination, provided that the other state or country grants the 
 22.5   same privileges to holders of Minnesota certificates of 
 22.6   registration. 
 22.7      Subd. 2.  [TEMPORARY APPRENTICE PERMITS FOR NONRESIDENTS.] 
 22.8   Any person who qualifies for examination as a registered barber 
 22.9   under this section may apply for a temporary apprentice permit 
 22.10  which is effective no longer than six months.  All persons 
 22.11  holding a temporary apprentice permit are subject to all 
 22.12  provisions of this chapter sections 154.01 to 154.26 and the 
 22.13  rules adopted by the board under it those sections concerning 
 22.14  the conduct and obligations of registered apprentices. 
 22.15     Sec. 10.  Minnesota Statutes 2002, section 154.12, is 
 22.16  amended to read: 
 22.17     154.12 [EXAMINATION OF NONRESIDENT APPRENTICES.] 
 22.18     A person who meets all of the requirements for licensure 
 22.19  registration as a barber in this chapter sections 154.01 to 
 22.20  154.26 and who has a license, a certificate of registration, or 
 22.21  their its equivalent as an apprentice in a state or country 
 22.22  which in the discretion of the board has substantially the same 
 22.23  requirements for registration as an apprentice as is provided by 
 22.24  this chapter sections 154.01 to 154.26, shall, upon payment of 
 22.25  the required fee, be issued a certificate of registration 
 22.26  without examination, provided that the other state or country 
 22.27  grants the same privileges to holders of Minnesota certificates 
 22.28  of registration. 
 22.29     Sec. 11.  Minnesota Statutes 2002, section 154.161, 
 22.30  subdivision 2, is amended to read: 
 22.31     Subd. 2.  [LEGAL ACTIONS.] (a) When necessary to prevent an 
 22.32  imminent violation of a statute, rule, or order that the board 
 22.33  has adopted or issued or is empowered to enforce, the board, or 
 22.34  a complaint committee if authorized by the board, may bring an 
 22.35  action in the name of the state in the District Court of Ramsey 
 22.36  County in which jurisdiction is proper to enjoin the act or 
 23.1   practice and to enforce compliance with the statute, rule, or 
 23.2   order.  On a showing that a person has engaged in or is about to 
 23.3   engage in an act or practice that constitutes a violation of a 
 23.4   statute, rule, or order that the board has adopted or issued or 
 23.5   is empowered to enforce, the court shall grant a permanent or 
 23.6   temporary injunction, restraining order, or other appropriate 
 23.7   relief. 
 23.8      (b) For purposes of injunctive relief under this 
 23.9   subdivision, irreparable harm exists when the board shows that a 
 23.10  person has engaged in or is about to engage in an act or 
 23.11  practice that constitutes violation of a statute, rule, or order 
 23.12  that the board has adopted or issued or is empowered to enforce. 
 23.13     (c) Injunctive relief granted under paragraph (a) does not 
 23.14  relieve an enjoined person from criminal prosecution by a 
 23.15  competent authority, or from action by the board under 
 23.16  subdivision 3, 4, 5, or 6 with respect to the person's 
 23.17  license registration, certificate, or application for 
 23.18  examination, license registration, or renewal. 
 23.19     Sec. 12.  Minnesota Statutes 2002, section 154.161, 
 23.20  subdivision 4, is amended to read: 
 23.21     Subd. 4.  [LICENSE REGISTRATION ACTIONS.] (a) With respect 
 23.22  to a person who is a holder of or applicant for a licensee 
 23.23  registration or a shop registration card under this chapter 
 23.24  sections 154.01 to 154.26, the board may by order deny, refuse 
 23.25  to renew, suspend, temporarily suspend, or revoke the 
 23.26  application, certificate of registration, or shop registration 
 23.27  card, censure or reprimand the person, refuse to permit the 
 23.28  person to sit for examination, or refuse to release the person's 
 23.29  examination grades, if the board finds that such an order is in 
 23.30  the public interest and that, based on a preponderance of the 
 23.31  evidence presented, the person has: 
 23.32     (1) violated a statute, rule, or order that the board has 
 23.33  adopted or issued or is empowered to enforce; 
 23.34     (2) engaged in conduct or acts that are fraudulent, 
 23.35  deceptive, or dishonest, whether or not the conduct or acts 
 23.36  relate to the practice of barbering, if the fraudulent, 
 24.1   deceptive, or dishonest conduct or acts reflect adversely on the 
 24.2   person's ability or fitness to engage in the practice of 
 24.3   barbering; 
 24.4      (3) engaged in conduct or acts that constitute malpractice, 
 24.5   are negligent, demonstrate incompetence, or are otherwise in 
 24.6   violation of the standards in the rules of the board, where the 
 24.7   conduct or acts relate to the practice of barbering; 
 24.8      (4) employed fraud or deception in obtaining a certificate 
 24.9   of registration, shop registration card, renewal, or 
 24.10  reinstatement, or in passing all or a portion of the 
 24.11  examination; 
 24.12     (5) had a certificate of registration or shop registration 
 24.13  card, right to examine, or other similar authority revoked in 
 24.14  another jurisdiction; 
 24.15     (6) failed to meet any requirement for issuance or renewal 
 24.16  of the person's certificate of registration or shop registration 
 24.17  card; 
 24.18     (7) practiced as a barber while having an infectious or 
 24.19  contagious disease; 
 24.20     (8) advertised by means of false or deceptive statements; 
 24.21     (9) demonstrated intoxication or indulgence in the use of 
 24.22  drugs, including but not limited to narcotics as defined in 
 24.23  section 152.01 or in United States Code, title 26, section 4731, 
 24.24  barbiturates, amphetamines, benzedrine, dexedrine, or other 
 24.25  sedatives, depressants, stimulants, or tranquilizers; 
 24.26     (10) demonstrated unprofessional conduct or practice; 
 24.27     (11) permitted an employee or other person under the 
 24.28  person's supervision or control to practice as a registered 
 24.29  barber, registered apprentice, or registered instructor of 
 24.30  barbering unless that person has (i) a current certificate of 
 24.31  registration as a registered barber, registered apprentice, or 
 24.32  registered instructor of barbering, (ii) a temporary apprentice 
 24.33  permit, or (iii) a temporary permit as an instructor of 
 24.34  barbering; 
 24.35     (12) practices, offered to practice, or attempted to 
 24.36  practice by misrepresentation; 
 25.1      (13) failed to display a certificate of registration as 
 25.2   required by section 154.14; 
 25.3      (14) used any room or place of barbering that is also used 
 25.4   for any other purpose, or used any room or place of barbering 
 25.5   that violates the board's rules governing sanitation; 
 25.6      (15) in the case of a barber, apprentice, or other person 
 25.7   working in or in charge of any barber shop, or any person in a 
 25.8   barber school engaging in the practice of barbering, failed to 
 25.9   use separate and clean towels for each customer or patron, or to 
 25.10  discard and launder each towel after being used once; 
 25.11     (16) in the case of a barber or other person in charge of 
 25.12  any barber shop or barber school, (i) failed to supply in a 
 25.13  sanitary manner clean hot and cold water in quantities necessary 
 25.14  to conduct the shop or barbering service for the school, (ii) 
 25.15  failed to have water and sewer connections from the shop or 
 25.16  barber school with municipal water and sewer systems where they 
 25.17  are available for use, or (iii) failed or refused to maintain a 
 25.18  receptacle for hot water of a capacity of at least five gallons; 
 25.19     (17) refused to permit the board to make an inspection 
 25.20  permitted or required by this chapter sections 154.01 to 154.26, 
 25.21  or failed to provide the board or the attorney general on behalf 
 25.22  of the board with any documents or records they request; 
 25.23     (18) failed promptly to renew a certificate of registration 
 25.24  or shop registration card when remaining in practice, pay the 
 25.25  required fee, or issue a worthless check; 
 25.26     (19) failed to supervise a registered apprentice or 
 25.27  temporary apprentice, or permitted the practice of barbering by 
 25.28  a person not registered with the board or not holding a 
 25.29  temporary permit; 
 25.30     (20) refused to serve a customer because of race, color, 
 25.31  creed, religion, disability, national origin, or sex; 
 25.32     (21) failed to comply with a provision of chapter 141 or a 
 25.33  provision of another chapter that relates to barber schools; or 
 25.34     (22) with respect to temporary suspension orders, has 
 25.35  committed an act, engaged in conduct, or committed practices 
 25.36  that the board, or complaint committee if authorized by the 
 26.1   board, has determined may result or may have resulted in an 
 26.2   immediate threat to the public. 
 26.3      (b) In lieu of or in addition to any remedy under paragraph 
 26.4   (a), the board may as a condition of continued registration, 
 26.5   termination of suspension, reinstatement of registration, 
 26.6   examination, or release of examination results, require that the 
 26.7   person: 
 26.8      (1) submit to a quality review of the person's ability, 
 26.9   skills, or quality of work, conducted in a manner and by a 
 26.10  person or entity that the board determines; or 
 26.11     (2) complete to the board's satisfaction continuing 
 26.12  education as the board requires. 
 26.13     (c) Service of an order under this subdivision is effective 
 26.14  if the order is served personally on, or is served by certified 
 26.15  mail to the most recent address provided to the board by, the 
 26.16  licensee, certificate holder, applicant, or counsel of record.  
 26.17  The order must state the reason for the entry of the order. 
 26.18     (d) Except as provided in subdivision 5, paragraph (c), all 
 26.19  hearings under this subdivision must be conducted in accordance 
 26.20  with the Administrative Procedure Act. 
 26.21     Sec. 13.  Minnesota Statutes 2002, section 154.161, 
 26.22  subdivision 5, is amended to read: 
 26.23     Subd. 5.  [TEMPORARY SUSPENSION.] (a) When the board, or 
 26.24  complaint committee if authorized by the board, issues a 
 26.25  temporary suspension order, the suspension provided for in the 
 26.26  order is effective on service of a written copy of the order on 
 26.27  the licensee, certificate holder, or counsel of record.  The 
 26.28  order must specify the statute, rule, or order violated by the 
 26.29  licensee or certificate holder.  The order remains in effect 
 26.30  until the board issues a final order in the matter after a 
 26.31  hearing, or on agreement between the board and the licensee or 
 26.32  certificate holder. 
 26.33     (b) An order under this subdivision may (1) prohibit the 
 26.34  licensee or certificate holder from engaging in the practice of 
 26.35  barbering in whole or in part, as the facts require, and (2) 
 26.36  condition the termination of the suspension on compliance with a 
 27.1   statute, rule, or order that the board has adopted or issued or 
 27.2   is empowered to enforce.  The order must state the reasons for 
 27.3   entering the order and must set forth the right to a hearing as 
 27.4   provided in this subdivision. 
 27.5      (c) Within ten days after service of an order under this 
 27.6   subdivision the licensee or certificate holder may request a 
 27.7   hearing in writing.  The board must hold a hearing before its 
 27.8   own members within five working days of the request for a 
 27.9   hearing.  The sole issue at such a hearing must be whether there 
 27.10  is a reasonable basis to continue, modify, or terminate the 
 27.11  temporary suspension.  The hearing is not subject to the 
 27.12  Administrative Procedure Act.  Evidence presented to the board 
 27.13  or the licensee or certificate holder may be in affidavit form 
 27.14  only.  The licensee, certificate holder, or counsel of record 
 27.15  may appear for oral argument. 
 27.16     (d) Within five working days after the hearing, the board 
 27.17  shall issue its order and, if the order continues the 
 27.18  suspension, shall schedule a contested case hearing within 30 
 27.19  days of the issuance of the order.  Notwithstanding any rule to 
 27.20  the contrary, the administrative law judge shall issue a report 
 27.21  within 30 days after the closing of the contested case hearing 
 27.22  record.  The board shall issue a final order within 30 days of 
 27.23  receiving the report. 
 27.24     Sec. 14.  Minnesota Statutes 2002, section 154.161, 
 27.25  subdivision 7, is amended to read: 
 27.26     Subd. 7.  [REINSTATEMENT.] The board may reinstate a 
 27.27  suspended, revoked, or surrendered certificate of registration 
 27.28  or shop registration card, on petition of the former or 
 27.29  suspended registrant.  The board may in its sole discretion 
 27.30  place any conditions on reinstatement of a suspended, revoked, 
 27.31  or surrendered certificate of registration or shop registration 
 27.32  card that it finds appropriate and necessary to ensure that the 
 27.33  purposes of this chapter sections 154.01 to 154.26 are met.  No 
 27.34  certificate of registration or shop registration card may be 
 27.35  reinstated until the former registrant has completed at least 
 27.36  one-half of the suspension period. 
 28.1      Sec. 15.  Minnesota Statutes 2002, section 154.18, is 
 28.2   amended to read: 
 28.3      154.18 [FEES.] 
 28.4      (a) The fees collected, as required in this chapter, 
 28.5   chapter 214, and the rules of the board, shall be paid in 
 28.6   advance by September 1 of the year in which they are due to the 
 28.7   executive secretary of the board.  The executive secretary shall 
 28.8   deposit the fees in the general fund in the state treasury, to 
 28.9   be disbursed by the executive secretary on the order of the 
 28.10  chair in payment of expenses lawfully incurred by the board. 
 28.11     (b) The board shall charge the following fees:  
 28.12     (1) examination and certificate, registered barber, $65; 
 28.13     (2) examination and certificate, apprentice, $60; 
 28.14     (3) examination, instructor, $160; 
 28.15     (4) certificate, instructor, $45; 
 28.16     (5) temporary teacher or apprentice permit, $50; 
 28.17     (6) renewal of license, registered barber, $50; 
 28.18     (7) renewal of license, apprentice, $45; 
 28.19     (8) renewal of license, instructor, $60; 
 28.20     (9) renewal of temporary teacher permit, $35; 
 28.21     (10) student permit, $25; 
 28.22     (11) initial shop registration, $60; 
 28.23     (12) initial school registration, $1,010; 
 28.24     (13) renewal shop registration, $60; 
 28.25     (14) renewal school registration, $260; 
 28.26     (15) restoration of registered barber license, $75; 
 28.27     (16) restoration of apprentice license, $70; 
 28.28     (17) restoration of shop registration, $85; 
 28.29     (18) change of ownership or location, $35; 
 28.30     (19) duplicate license, $20; and 
 28.31     (20) home study course, $75. 
 28.32     Sec. 16.  Minnesota Statutes 2002, section 154.19, is 
 28.33  amended to read: 
 28.34     154.19 [VIOLATIONS.] 
 28.35     Each of the following constitutes a misdemeanor: 
 28.36     (1) The violation of any of the provisions of section 
 29.1   154.01; 
 29.2      (2) Permitting any person in one's employ, supervision, or 
 29.3   control to practice as a registered barber or registered 
 29.4   apprentice unless that person has a certificate of registration 
 29.5   as a registered barber or registered apprentice; 
 29.6      (3) Obtaining or attempting to obtain a certificate of 
 29.7   registration for money other than the required fee, or any other 
 29.8   thing of value, or by fraudulent misrepresentation; 
 29.9      (4) Practicing or attempting to practice by fraudulent 
 29.10  misrepresentation; 
 29.11     (5) The willful failure to display a certificate of 
 29.12  registration as required by section 154.14; 
 29.13     (6) The use of any room or place for barbering which is 
 29.14  also used for residential or business purposes, except the sale 
 29.15  of hair tonics, lotions, creams, cutlery, toilet articles, 
 29.16  cigars, tobacco, candies in original package, and such 
 29.17  commodities as are used and sold in barber shops, and except 
 29.18  that shoe-shining and an agency for the reception and delivery 
 29.19  of laundry, or either, may be conducted in a barber shop without 
 29.20  the same being construed as a violation of this section, unless 
 29.21  a substantial partition of ceiling height separates the portion 
 29.22  used for residential or business purposes, and where a barber 
 29.23  shop is situated in a residence, poolroom, confectionery, store, 
 29.24  restaurant, garage, clothing store, liquor store, hardware 
 29.25  store, or soft drink parlor, there must be an outside entrance 
 29.26  leading into the barber shop independent of any entrance leading 
 29.27  into such business establishment, except that this provision as 
 29.28  to an outside entrance shall not apply to barber shops in 
 29.29  operation at the time of the passage of this chapter section and 
 29.30  except that a barber shop and beauty parlor may be operated in 
 29.31  conjunction, without the same being separated by partition of 
 29.32  ceiling height; 
 29.33     (7) The failure or refusal of any barber or other person in 
 29.34  charge of any barber shop, or any person in barber schools or 
 29.35  colleges doing barber service work, to use separate and clean 
 29.36  towels for each customer or patron, or to discard and launder 
 30.1   each towel after once being used; 
 30.2      (8) The failure or refusal by any barber or other person in 
 30.3   charge of any barber shop or barber school or barber college to 
 30.4   supply clean hot and cold water in such quantities as may be 
 30.5   necessary to conduct such shop, or the barbering service of such 
 30.6   school or college, in a sanitary manner, or the failure or 
 30.7   refusal of any such person to have water and sewer connections 
 30.8   from such shop, or barber school or college, with municipal 
 30.9   water and sewer systems where the latter are available for use, 
 30.10  or the failure or refusal of any such person to maintain a 
 30.11  receptacle for hot water of a capacity of not less than five 
 30.12  gallons; 
 30.13     (9) For the purposes of this chapter sections 154.01 to 
 30.14  154.26, barbers, students, apprentices, or the proprietor or 
 30.15  manager of a barber shop, or barber school or barber college, 
 30.16  shall be responsible for all violations of the sanitary 
 30.17  provisions of this chapter sections 154.01 to 154.26, and if any 
 30.18  barber shop, or barber school or barber college, upon 
 30.19  inspection, shall be found to be in an unsanitary condition, the 
 30.20  person making such inspection shall immediately issue an order 
 30.21  to place the barber shop, or barber school, or barber college, 
 30.22  in a sanitary condition, in a manner and within a time 
 30.23  satisfactory to the Board of Barber and Cosmetologist Examiners, 
 30.24  and for the failure to comply with such order the board shall 
 30.25  immediately file a complaint for the arrest of the persons upon 
 30.26  whom the order was issued, and any licensed registered barber 
 30.27  who shall fail to comply with the rules adopted by the Board of 
 30.28  Barber and Cosmetologist Examiners, with the approval of the 
 30.29  state commissioner of health, or the violation or commission of 
 30.30  any of the offenses described in section 154.16, clauses (1), 
 30.31  (2), (3), (4), (5), (6), (7), (8), (9), and of clauses (1), (2), 
 30.32  (3), (4), (5), (6), (7), (8), and (9) of this section, shall be 
 30.33  fined not less than $10 or imprisoned for ten days and not more 
 30.34  than $100 or imprisoned for 90 days. 
 30.35     Sec. 17.  Minnesota Statutes 2002, section 154.21, is 
 30.36  amended to read: 
 31.1      154.21 [PERJURY.] 
 31.2      The willful making of any false statement as to a material 
 31.3   matter in any oath or affidavit which is required by the 
 31.4   provisions of this chapter sections 154.01 to 154.26 is perjury 
 31.5   and punishable as such.  
 31.6      Sec. 18.  Minnesota Statutes 2002, section 154.22, is 
 31.7   amended to read: 
 31.8      154.22 [BOARD OF BARBER AND COSMETOLOGIST EXAMINERS 
 31.9   CREATED; TERMS.] 
 31.10     (a) A Board of Barber and Cosmetologist Examiners is 
 31.11  established to consist of four three barber members, three 
 31.12  cosmetologist members, and one public member, as defined in 
 31.13  section 214.02, appointed by the governor.  Three of such 
 31.14     (b) The barber members shall be persons who have practiced 
 31.15  as a registered barber barbers in this state for at least five 
 31.16  years immediately prior to their appointment; shall be graduates 
 31.17  from the 12th grade of a high school or have equivalent 
 31.18  education, and shall have knowledge of the matters to be taught 
 31.19  in registered barber schools, as set forth in section 
 31.20  154.07.  The remaining member of the board shall be a public 
 31.21  member as defined by section 214.02.  One of the members shall 
 31.22  be a member of, or recommended by, a union of journeymen barbers 
 31.23  which shall have that has existed at least two years, and one 
 31.24  shall be a member of, or recommended by, a professional 
 31.25  organization of barbers. 
 31.26     (c) All members must be currently licensed in the state of 
 31.27  Minnesota, have practiced in the licensed occupation for at 
 31.28  least five years immediately prior to their appointment, be 
 31.29  graduates from the 12th grade of high school or have equivalent 
 31.30  education, and have knowledge of sections 155A.01 to 155A.16 and 
 31.31  Minnesota Rules, chapters 2642 and 2644.  The members shall be 
 31.32  members of, or recommended by, a professional organization of 
 31.33  cosmetologists, manicurists, or estheticians. 
 31.34     (d) Membership terms, compensation of members, removal of 
 31.35  members, the filling of membership vacancies, and fiscal year 
 31.36  and reporting requirements shall be as provided in sections 
 32.1   214.07 to 214.09.  The provision of staff, administrative 
 32.2   services and office space; the review and processing of 
 32.3   complaints; the setting of board fees; and other provisions 
 32.4   relating to board operations shall be as provided in chapter 214.
 32.5      (e) Members appointed to fill vacancies caused by death, 
 32.6   resignation, or removal shall serve during the unexpired term of 
 32.7   their predecessors. 
 32.8      (f) The barber members of the board shall separately 
 32.9   oversee administration, enforcement, and regulation of, and 
 32.10  adoption of rules under, sections 154.01 to 154.26.  The 
 32.11  cosmetologist members of the board shall separately oversee 
 32.12  administration, enforcement, and regulation of, and adoption of 
 32.13  rules under, sections 155A.01 to 155A.16.  Staff hired by the 
 32.14  board, including inspectors, shall serve both professions. 
 32.15     Sec. 19.  Minnesota Statutes 2002, section 154.23, is 
 32.16  amended to read: 
 32.17     154.23 [OFFICERS; COMPENSATION; FEES; EXPENSES.] 
 32.18     The Board of Barber and Cosmetologist Examiners shall 
 32.19  annually elect a chair and secretary.  It shall adopt and use a 
 32.20  common seal for the authentication of its orders and records.  
 32.21  The board shall appoint an executive secretary who shall not be 
 32.22  a member of the board and who shall be in the unclassified civil 
 32.23  service. 
 32.24     The executive secretary shall keep a record of all 
 32.25  proceedings of the board.  The expenses of administering 
 32.26  sections 154.01 to 154.26 this chapter shall be paid from the 
 32.27  appropriations made to the Board of Barber and Cosmetologist 
 32.28  Examiners. 
 32.29     Each member of the board shall take the oath provided by 
 32.30  law for public officers. 
 32.31     A majority of the board, in meeting assembled, may perform 
 32.32  and exercise all the duties and powers devolving upon the board. 
 32.33     The members of the board shall receive compensation for 
 32.34  each day spent on board activities, but not to exceed 20 days in 
 32.35  any calendar month nor 100 days in any calendar year. 
 32.36     The board shall have authority to employ such inspectors, 
 33.1   clerks, deputies, and other assistants as it may deem necessary 
 33.2   to carry out the provisions of this chapter. 
 33.3      Sec. 20.  Minnesota Statutes 2002, section 154.24, is 
 33.4   amended to read: 
 33.5      154.24 [RULES.] 
 33.6      The Board of Barber and Cosmetologist Examiners shall have 
 33.7   authority to make reasonable rules for the administration of the 
 33.8   provisions of this chapter sections 154.01 to 154.26 and 
 33.9   prescribe sanitary requirements for barber shops and barber 
 33.10  schools, subject to the approval of the state commissioner of 
 33.11  health.  Any member of the board, or its agents or assistants, 
 33.12  shall have authority to enter upon and to inspect any barber 
 33.13  shop or barber school at any time during business hours.  A copy 
 33.14  of the rules adopted by the board shall be furnished by it to 
 33.15  the owner or manager of each barber shop or barber school and 
 33.16  such copy shall be posted in a conspicuous place in such barber 
 33.17  shop or barber school. 
 33.18     The board shall keep a record of its proceedings relating 
 33.19  to the issuance, refusal, renewal, suspension, and revocation of 
 33.20  certificates of registration.  This record shall contain the 
 33.21  name, place of business and residence of each registered barber 
 33.22  and registered apprentice, and the date and number of the 
 33.23  certificate of registration.  This record shall be open to 
 33.24  public inspection at all reasonable times. 
 33.25     Sec. 21.  Minnesota Statutes 2002, section 154.25, is 
 33.26  amended to read: 
 33.27     154.25 [NOT TO SERVE CERTAIN PERSONS.] 
 33.28     No person practicing the occupation of a barber in any 
 33.29  barber shop, barber school, or college in this state shall 
 33.30  knowingly serve a person afflicted, in a dangerous or infectious 
 33.31  state of the disease, with erysipelas, eczema, impetigo, 
 33.32  sycosis, tuberculosis, or any other contagious or infectious 
 33.33  disease.  Any person so afflicted is hereby prohibited from 
 33.34  being served in any barber shop, barber school, or college in 
 33.35  this state.  Any violation of this section shall be considered a 
 33.36  misdemeanor as provided for in this chapter sections 154.01 to 
 34.1   154.26.  
 34.2      Sec. 22.  Minnesota Statutes 2002, section 155A.01, is 
 34.3   amended to read: 
 34.4      155A.01 [POLICY.] 
 34.5      The legislature finds that the health and safety of the 
 34.6   people of the state are served by the licensing of the practice 
 34.7   of cosmetology because of the use of chemicals, apparatus, and 
 34.8   other appliances requiring special skills and education.  
 34.9      To this end, the public will best be served by vesting 
 34.10  these responsibilities in the commissioner of commerce Board of 
 34.11  Barber and Cosmetologist Examiners. 
 34.12     Sec. 23.  Minnesota Statutes 2002, section 155A.02, is 
 34.13  amended to read: 
 34.14     155A.02 [PROHIBITION; LIMITATION.] 
 34.15     It shall be unlawful for any person to engage in 
 34.16  cosmetology, or to conduct or operate a cosmetology school or 
 34.17  salon, except as hereinafter provided in sections 155A.03 to 
 34.18  155A.16.  
 34.19     Sec. 24.  Minnesota Statutes 2002, section 155A.03, 
 34.20  subdivision 1, is amended to read: 
 34.21     Subdivision 1.  [TERMS.] For purposes of this chapter 
 34.22  sections 155A.03 to 155A.26, and unless the context clearly 
 34.23  requires otherwise, the words defined in this section have the 
 34.24  meanings given them.  
 34.25     Sec. 25.  Minnesota Statutes 2002, section 155A.03, is 
 34.26  amended by adding a subdivision to read: 
 34.27     Subd. 1a.  [BOARD.] "Board" means the Board of Barber and 
 34.28  Cosmetologist Examiners. 
 34.29     Sec. 26.  Minnesota Statutes 2002, section 155A.03, 
 34.30  subdivision 2, is amended to read: 
 34.31     Subd. 2.  [COSMETOLOGY.] "Cosmetology" is the practice of 
 34.32  personal services, for compensation, for the cosmetic care of 
 34.33  the hair, nails, and skin.  These services include cleaning, 
 34.34  conditioning, shaping, reinforcing, coloring and enhancing the 
 34.35  body surface in the areas of the head, scalp, face, arms, hands, 
 34.36  legs, and feet, except where these services are performed by a 
 35.1   licensed barber under chapter 154 sections 154.01 to 154.26.  
 35.2      Sec. 27.  Minnesota Statutes 2002, section 155A.03, is 
 35.3   amended by adding a subdivision to read: 
 35.4      Subd. 4a.  [LICENSED PRACTICE.] "Licensed practice" means 
 35.5   the practice of cosmetology in a licensed salon or the practice 
 35.6   of an esthetician in a licensed physician's office. 
 35.7      Sec. 28.  Minnesota Statutes 2002, section 155A.03, 
 35.8   subdivision 7, is amended to read: 
 35.9      Subd. 7.  [SALON.] A "salon" is an area, room, or rooms 
 35.10  employed to offer personal services, as defined in subdivision 2.
 35.11  "Salon" does not include the home of a customer but the 
 35.12  commissioner board may adopt health and sanitation rules 
 35.13  governing practice in the homes of customers.  
 35.14     Sec. 29.  Minnesota Statutes 2002, section 155A.045, 
 35.15  subdivision 1, is amended to read: 
 35.16     Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
 35.17  is as follows: 
 35.18     (a) Three-year license fees: 
 35.19     (1) cosmetologist, manicurist, esthetician, $45 $90 for 
 35.20  each initial license, and $30 $60 for each renewal; 
 35.21     (2) instructor, manager, $60 $120 for each initial license, 
 35.22  and $45 $90 for each renewal; 
 35.23     (3) licensed physician's office, $130 for each initial 
 35.24  license, and $100 for each renewal; 
 35.25     (4) salon, $65 $130 for each initial license, and 
 35.26  $50 $100 for each renewal; and 
 35.27     (4) (5) school, $750 $1,500. 
 35.28     (b) Penalties: 
 35.29     (1) reinspection fee, variable; and 
 35.30     (2) manager with lapsed practitioner, $25. 
 35.31     (c) Administrative fees: 
 35.32     (1) certificate of identification, $20; and 
 35.33     (2) school original application, $150. 
 35.34     (d) All fees established in this subdivision must be paid 
 35.35  to the executive secretary of the board on or before September 1 
 35.36  of the year in which they become due.  The executive secretary 
 36.1   of the board shall deposit the fees in the general fund in the 
 36.2   state treasury, to be disbursed by the executive secretary on 
 36.3   the order of the chair in payment of expenses lawfully incurred 
 36.4   by the board.  
 36.5      Sec. 30.  Minnesota Statutes 2002, section 155A.05, is 
 36.6   amended to read: 
 36.7      155A.05 [RULES.] 
 36.8      The commissioner board may develop and adopt rules 
 36.9   according to chapter 14 that the commissioner board considers 
 36.10  necessary to carry out this chapter sections 155A.01 to 155A.16. 
 36.11     Sec. 31.  Minnesota Statutes 2002, section 155A.07, 
 36.12  subdivision 2, is amended to read: 
 36.13     Subd. 2.  [QUALIFICATIONS.] Qualifications for licensing in 
 36.14  each classification shall be determined by the 
 36.15  commissioner board and established by rule, and shall include 
 36.16  educational and experiential prerequisites.  The rules shall 
 36.17  require a demonstrated knowledge of procedures necessary to 
 36.18  protect the health of the practitioner and the consumer of 
 36.19  cosmetology services, including but not limited to chemical 
 36.20  applications.  
 36.21     Sec. 32.  Minnesota Statutes 2002, section 155A.07, 
 36.22  subdivision 8, is amended to read: 
 36.23     Subd. 8.  [EXEMPTIONS.] Persons licensed to provide 
 36.24  cosmetology services in other states visiting this state for 
 36.25  cosmetology demonstrations shall be exempted from the licensing 
 36.26  provisions of this chapter sections 155A.01 to 155A.16 if 
 36.27  services to consumers are in the physical presence of a licensed 
 36.28  cosmetologist.  
 36.29     Sec. 33.  Minnesota Statutes 2002, section 155A.07, is 
 36.30  amended by adding a subdivision to read: 
 36.31     Subd. 10.  [NONRESIDENT LICENSES.] A nonresident 
 36.32  cosmetologist, manicurist, or esthetician may be licensed in 
 36.33  Minnesota if the individual has completed cosmetology school in 
 36.34  a state or country with the same or greater school hour 
 36.35  requirements, has an active license in that state or country, 
 36.36  and has passed the Minnesota-specific written operator 
 37.1   examination for cosmetologist, manicurist, or esthetician.  If a 
 37.2   test is used to verify the qualifications of trained 
 37.3   cosmetologists, the test should be translated into their native 
 37.4   language within the limits of available resources.  Licenses 
 37.5   shall not be issued under this subdivision for managers or 
 37.6   instructors. 
 37.7      Sec. 34.  Minnesota Statutes 2002, section 155A.08, 
 37.8   subdivision 1, is amended to read: 
 37.9      Subdivision 1.  [LICENSING.] Any person who offers 
 37.10  cosmetology services for compensation in this state shall be 
 37.11  licensed as a salon if not employed by another licensed salon or 
 37.12  as an esthetician in a licensed physician's area.  
 37.13     Sec. 35.  Minnesota Statutes 2002, section 155A.08, 
 37.14  subdivision 2, is amended to read: 
 37.15     Subd. 2.  [REQUIREMENTS.] (a) The conditions and process by 
 37.16  which a salon is licensed shall be established by the 
 37.17  commissioner board by rule.  In addition to those requirements, 
 37.18  no license shall be issued unless the commissioner board first 
 37.19  determines that paragraphs (a) to (e) the conditions in clauses 
 37.20  (1) to (5) have been satisfied:  
 37.21     (a) (1) compliance with all local and state laws, 
 37.22  particularly relating to matters of sanitation, health, and 
 37.23  safety; 
 37.24     (b) (2) the employment of a manager, as defined in section 
 37.25  155A.03, subdivision 6; 
 37.26     (c) (3) inspection and licensing prior to the commencing of 
 37.27  business; 
 37.28     (d) (4) if applicable, evidence of compliance with section 
 37.29  176.182; and 
 37.30     (e) (5) evidence of continued professional liability 
 37.31  insurance coverage of at least $25,000 for each claim and 
 37.32  $50,000 total coverage for each policy year for each operator.  
 37.33     (b) A licensed esthetician or manicurist who complies with 
 37.34  the health, safety, sanitation, inspection, and insurance rules 
 37.35  promulgated by the commissioner board to operate a salon solely 
 37.36  for the performance of those personal services defined in 
 38.1   section 155A.03, subdivision 4, in the case of an esthetician, 
 38.2   or subdivision 5, in the case of a manicurist. 
 38.3      Sec. 36.  Minnesota Statutes 2002, section 155A.08, 
 38.4   subdivision 3, is amended to read: 
 38.5      Subd. 3.  [HEALTH AND SANITARY STANDARDS.] Minimum health 
 38.6   and sanitary standards for the operation of a salon shall be 
 38.7   established by rule.  A salon shall not be located in a room 
 38.8   used for residential purposes.  If a salon is in the residence 
 38.9   of a person practicing cosmetology, the rooms used for the 
 38.10  practice of cosmetology shall be completely partitioned off from 
 38.11  the living quarters.  The salon may be inspected as often as the 
 38.12  commissioner board considers necessary to affirm compliance.  
 38.13     Sec. 37.  Minnesota Statutes 2002, section 155A.09, is 
 38.14  amended to read: 
 38.15     155A.09 [SCHOOLS.] 
 38.16     Subdivision 1.  [LICENSING.] Any person who establishes or 
 38.17  conducts a school in this state shall be licensed.  
 38.18     Subd. 2.  [STANDARDS.] The commissioner board shall by rule 
 38.19  establish minimum standards of course content and length 
 38.20  specific to the educational preparation prerequisite to testing 
 38.21  and licensing as cosmetologist, esthetician, and manicurist.  
 38.22     Subd. 3.  [APPLICATIONS.] Application for a license shall 
 38.23  be prepared on forms furnished by the commissioner board and 
 38.24  shall contain the following and such other information as may be 
 38.25  required:  
 38.26     (a) (1) The name of the school, together with ownership and 
 38.27  controlling officers, members, and managing employees and 
 38.28  commissioner; 
 38.29     (b) (2) The specific fields of instruction which will be 
 38.30  offered and reconciliation of the course content and length to 
 38.31  meet the minimum standards, as prescribed in subdivision 2; 
 38.32     (c) (3) The place or places where instruction will be 
 38.33  given; 
 38.34     (d) (4) A listing of the equipment available for 
 38.35  instruction in each course offered; 
 38.36     (e) (5) The maximum enrollment to be accommodated; 
 39.1      (f) (6) A listing of instructors, all of whom shall be 
 39.2   licensed as provided in section 155A.07, subdivision 2, except 
 39.3   that any school may use occasional instructors or lecturers who 
 39.4   would add to the general or specialized knowledge of the 
 39.5   students but who need not be licensed; 
 39.6      (g) (7) A current balance sheet, income statement or 
 39.7   documentation to show sufficient financial worth and 
 39.8   responsibility to properly conduct a school and to assure 
 39.9   financial resources ample to meet the school's financial 
 39.10  obligations; 
 39.11     (h) (8) Other financial guarantees which would assure 
 39.12  protection of the public as determined by rule; and 
 39.13     (i) (9) A copy of all written material which the school 
 39.14  uses to solicit prospective students, including but not limited 
 39.15  to a tuition and fee schedule, and all catalogues, brochures and 
 39.16  other recruitment advertisements.  Each school shall annually, 
 39.17  on a date determined by the commissioner board, file with 
 39.18  the director board any new or amended materials which it has 
 39.19  distributed during the past year.  
 39.20     Subd. 4.  [VERIFICATION OF APPLICATION.] Each application 
 39.21  shall be signed and certified to under oath by the proprietor if 
 39.22  the applicant is a proprietorship, by the managing partner if 
 39.23  the applicant is a partnership, or by the authorized officers of 
 39.24  the applicant if the applicant is a corporation, association, 
 39.25  company, firm, society or trust.  
 39.26     Subd. 5.  [CONDITIONS PRECEDENT TO ISSUANCE.] No A license 
 39.27  shall must not be issued unless the commissioner board first 
 39.28  determines: 
 39.29     (a) that the applicant has met the requirements in clauses 
 39.30  (1) to (8). 
 39.31     (1) The applicant has must have a sound financial condition 
 39.32  with sufficient resources available to meet the school's 
 39.33  financial obligations; to refund all tuition and other charges, 
 39.34  within a reasonable period of time, in the event of dissolution 
 39.35  of the school or in the event of any justifiable claims for 
 39.36  refund against the school; to provide adequate service to its 
 40.1   students and prospective students; and for the to maintain 
 40.2   proper use and support of the school to be maintained;. 
 40.3      (b) That (2) The applicant has must have satisfactory 
 40.4   training facilities with sufficient tools and equipment and the 
 40.5   necessary number of work stations to adequately train the 
 40.6   students currently enrolled, and those proposed to be enrolled;. 
 40.7      (c) That (3) The applicant employs must employ a sufficient 
 40.8   number of qualified instructors trained by experience and 
 40.9   education to give the training contemplated;. 
 40.10     (d) That (4) The premises and conditions under which the 
 40.11  students work and study are must be sanitary, healthful, and 
 40.12  safe according to modern standards;. 
 40.13     (e) That (5) Each occupational course or program of 
 40.14  instruction or study shall must be of such quality and content 
 40.15  as to provide education and training which will adequately 
 40.16  prepare enrolled students for testing, licensing, and entry 
 40.17  level positions as a cosmetologist, esthetician, or manicurist;. 
 40.18     (f) Evidence of (6) The school's school must have coverage 
 40.19  by professional liability insurance of at least $25,000 per 
 40.20  incident and an accumulation of $150,000 for each premium year;. 
 40.21     (g) (7) The applicant shall provide evidence of the 
 40.22  school's compliance with section 176.182; and. 
 40.23     (h) (8) The applicant, except the state and its political 
 40.24  subdivisions as described in section 471.617, subdivision 1, 
 40.25  shall file with the commissioner board a continuous corporate 
 40.26  surety bond in the amount of $10,000, conditioned upon the 
 40.27  faithful performance of all contracts and agreements with 
 40.28  students made by the applicant.  The bond shall run to the state 
 40.29  of Minnesota and to any person who may have a cause of action 
 40.30  against the applicant arising at any time after the bond is 
 40.31  filed and before it is canceled for breach of any contract or 
 40.32  agreement made by the applicant with any student.  The aggregate 
 40.33  liability of the surety for all breaches of the conditions of 
 40.34  the bond shall not exceed $10,000.  The surety of the bond may 
 40.35  cancel it upon giving 60 days' notice in writing to 
 40.36  the commissioner board and shall be relieved of liability for 
 41.1   any breach of condition occurring after the effective date of 
 41.2   cancellation. 
 41.3      Subd. 6.  [FEES; RENEWALS.] (a) Applications for initial 
 41.4   license under this chapter sections 155A.01 to 155A.16 shall be 
 41.5   accompanied by a nonrefundable application fee set forth in 
 41.6   section 155A.045.  
 41.7      (b) License duration shall be three years.  Each renewal 
 41.8   application shall be accompanied by a nonrefundable renewal fee 
 41.9   set forth in section 155A.045.  
 41.10     (c) Application for renewal of license shall be made as 
 41.11  provided in rules adopted by the commissioner board and on forms 
 41.12  supplied by the commissioner board.  
 41.13     Subd. 7.  [INSPECTIONS.] All schools may be inspected as 
 41.14  often as the commissioner board considers necessary to affirm 
 41.15  compliance.  The commissioner board shall have the authority to 
 41.16  assess the cost of the inspection to the school.  
 41.17     Subd. 8.  [LIST OF LICENSED SCHOOLS; AVAILABILITY.] The 
 41.18  commissioner board shall maintain and make available to the 
 41.19  public a list of licensed schools.  
 41.20     Subd. 9.  [SEPARATION OF SCHOOL AND PROFESSIONAL 
 41.21  DEPARTMENTS.] A school shall display in the entrance reception 
 41.22  room of its student section a sign prominently and conspicuously 
 41.23  indicating that all work therein is done exclusively by 
 41.24  students.  Professional departments of a school shall be run as 
 41.25  entirely separate and distinct businesses and shall have 
 41.26  separate entrances.  
 41.27     Nothing contained in this chapter sections 155A.01 to 
 41.28  155A.16 shall prevent a school from charging for student work 
 41.29  done in the school to cover the cost of materials used and 
 41.30  expenses incurred in and for the operation of the school.  All 
 41.31  of the student work shall be prominently and conspicuously 
 41.32  advertised and held forth as being student work and not 
 41.33  otherwise.  
 41.34     Subd. 10.  [DISCRIMINATION PROHIBITED.] No school, duly 
 41.35  approved under this chapter sections 155A.01 to 155A.16, shall 
 41.36  refuse to teach any student, otherwise qualified, on account of 
 42.1   race, sex, creed, color, citizenship, national origin, or sexual 
 42.2   preference.  
 42.3      Sec. 38.  Minnesota Statutes 2002, section 155A.095, is 
 42.4   amended to read: 
 42.5      155A.095 [INSPECTIONS.] 
 42.6      The commissioner board is responsible for inspecting salons 
 42.7   and schools licensed pursuant to this chapter sections 155A.01 
 42.8   to 155A.16 to assure compliance with the requirements of this 
 42.9   chapter sections 155A.01 to 155A.16.  The commissioner board 
 42.10  shall direct department board resources first to the inspection 
 42.11  of those licensees who fail to meet the requirements of law, 
 42.12  have indicated that they present a greater risk to the public, 
 42.13  or have otherwise, in the opinion of the commissioner board, 
 42.14  demonstrated that they require a greater degree of regulatory 
 42.15  attention.  
 42.16     Sec. 39.  Minnesota Statutes 2002, section 155A.10, is 
 42.17  amended to read: 
 42.18     155A.10 [DISPLAY OF LICENSE.] 
 42.19     (a) Every holder of a license granted by the commissioner, 
 42.20  board shall display it in a conspicuous place in the place of 
 42.21  business. 
 42.22     (b) Notwithstanding the provisions of paragraph (a), 
 42.23  nothing contained in this chapter sections 155A.01 to 155A.16 
 42.24  shall be construed to prohibit a person licensed to provide 
 42.25  cosmetology services from engaging in any practices defined 
 42.26  in this chapter sections 155A.01 to 155A.16 in the homes of 
 42.27  customers or patrons, under the sanitary and health rules 
 42.28  promulgated by the commissioner board.  
 42.29     Sec. 40.  Minnesota Statutes 2002, section 155A.135, is 
 42.30  amended to read: 
 42.31     155A.135 [ENFORCEMENT.] 
 42.32     The provisions of section 45.027 apply to the 
 42.33  administration of this chapter sections 155A.01 to 155A.16. 
 42.34     Sec. 41.  Minnesota Statutes 2002, section 155A.14, is 
 42.35  amended to read: 
 42.36     155A.14 [SERVICES EXCEPTED; EMERGENCY.] 
 43.1      Nothing in this chapter sections 155A.01 to 155A.16 
 43.2   prohibits services in cases of emergency where compensation or 
 43.3   other reward is not received, nor in domestic service, nor in 
 43.4   the practice of medicine, surgery, dentistry, podiatry, 
 43.5   osteopathy, chiropractic, or barbering.  This section shall not 
 43.6   be construed to authorize any of the persons so exempted to wave 
 43.7   the hair, or to color, tint, or bleach the hair, in any manner.  
 43.8      Sec. 42.  Minnesota Statutes 2002, section 155A.15, is 
 43.9   amended to read: 
 43.10     155A.15 [APPOINTMENT OF AGENT FOR SERVICE OF PROCESS.] 
 43.11     Any person, firm, partnership, or corporation, not a 
 43.12  resident of Minnesota, who engages in Minnesota in the practices 
 43.13  regulated in this chapter sections 155A.01 to 155A.16 shall file 
 43.14  with the commissioner board the name and address of a duly 
 43.15  authorized agent for service of legal process, which agent for 
 43.16  service shall be a resident of the state of Minnesota.  
 43.17     Sec. 43.  Minnesota Statutes 2002, section 155A.16, is 
 43.18  amended to read: 
 43.19     155A.16 [VIOLATIONS; PENALTIES.] 
 43.20     Any person who violates any of the provisions of this 
 43.21  chapter sections 155A.01 to 155A.16 is guilty of a misdemeanor 
 43.22  and upon conviction may be sentenced to imprisonment for not 
 43.23  more than 90 days or fined not more than $700, or both, per 
 43.24  violation. 
 43.25     Sec. 44.  [APPROPRIATION.] 
 43.26     $572,000 is appropriated from the general fund to the Board 
 43.27  of Barber and Cosmetologist Examiners for the fiscal year ending 
 43.28  June 30, 2005.  This appropriation is in addition to the 
 43.29  appropriation made in Laws 2003, First Special Session chapter 
 43.30  1, article 3, section 5, and is added to the board's base.