2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to economic development; reducing 1.3 appropriations for economic development and certain 1.4 other programs; appropriating money for economic 1.5 development and other programs; modifying programs and 1.6 practices; modifying provisions governing barbers and 1.7 cosmetologists; regulating petroleum testing and fees; 1.8 creating a revolving fund; modifying tobacco sales 1.9 penalty provisions; granting extra unemployment 1.10 benefits for certain military reservists; transferring 1.11 powers and funds; renumbering sections; amending 1.12 Minnesota Statutes 2002, sections 60A.14, subdivision 1.13 1; 154.01; 154.02; 154.03; 154.04; 154.06; 154.07, as 1.14 amended; 154.08; 154.11; 154.12; 154.161, subdivisions 1.15 2, 4, 5, 7; 154.18; 154.19; 154.21; 154.22; 154.23; 1.16 154.24; 154.25; 155A.01; 155A.02; 155A.03, 1.17 subdivisions 1, 2, 7, by adding subdivisions; 1.18 155A.045, subdivision 1; 155A.05; 155A.07, 1.19 subdivisions 2, 8, by adding a subdivision; 155A.08, 1.20 subdivisions 1, 2, 3; 155A.09; 155A.095; 155A.10; 1.21 155A.135; 155A.14; 155A.15; 155A.16; 177.23, 1.22 subdivision 7; 182.653, subdivision 9; 214.01, 1.23 subdivision 3; 239.011, by adding a subdivision; 1.24 239.101, subdivision 3; 326.975, subdivision 1; 1.25 327C.01, by adding a subdivision; 327C.02, subdivision 1.26 2; 327C.04, by adding a subdivision; 461.12, 1.27 subdivision 2; 461.19; 462A.05, by adding a 1.28 subdivision; Minnesota Statutes 2003 Supplement, 1.29 sections 116J.70, subdivision 2a; 116J.8731, 1.30 subdivision 5; 214.04, subdivision 3; 462A.03, 1.31 subdivision 13; Laws 2003, chapter 128, article 10, 1.32 section 4, subdivision 3; proposing coding for new law 1.33 in Minnesota Statutes, chapter 446A; repealing 1.34 Minnesota Statutes 2002, sections 155A.03, 1.35 subdivisions 11, 13; 155A.04; 155A.06; Minnesota 1.36 Statutes 2003 Supplement, section 239.101, subdivision 1.37 7; Minnesota Rules, part 2100.9300, subpart 1. 1.38 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.39 Section 1. [APPROPRIATIONS AND REDUCTIONS.] 1.40 The dollar amounts in the columns under "APPROPRIATIONS" 1.41 are added to or, if shown in parentheses, subtracted from the 2.1 appropriations in Laws 2003, chapter 128, article 10, or other 2.2 law, to the specified agencies. The appropriations are from the 2.3 general fund or other named fund and are available for the 2.4 fiscal years indicated for each purpose. The figure "2004" or 2.5 "2005" means that the addition to or subtraction from the 2.6 appropriations listed under the year are for the fiscal year 2.7 ending June 30, 2004, or June 30, 2005, respectively. The term 2.8 "the first year" means the year ending June 30, 2004, and the 2.9 term "the second year" means the year ending June 30, 2005. 2.10 SUMMARY BY FUND 2.11 2004 2005 TOTAL 2.12 General -0- $(1,021,000) $(1,021,000) 2.13 APPROPRIATIONS 2.14 Available for the Year 2.15 Ending June 30 2.16 2004 2005 2.17 Sec. 2. EMPLOYMENT AND ECONOMIC 2.18 DEVELOPMENT -0- (599,000) 2.19 Subdivision 1. Appropriation Reduction 2.20 -0- (1,044,000) 2.21 Of this amount, $594,000 is a reduction 2.22 from the operating budget appropriation 2.23 made in Laws 2003, chapter 128, article 2.24 10, section 2, and does not include any 2.25 reduction to the operating budget for 2.26 Minnesota State Services for the 2.27 Blind. The base operating budget is 2.28 reduced by an additional $297,000 per 2.29 year for fiscal years 2006 and 2007. 2.30 Of this amount, $25,000 is a reduction 2.31 in the second year in the federal 2.32 matching fund appropriation made in 2.33 Laws 2003, chapter 128, article 10, 2.34 section 2. The base federal matching 2.35 fund budget is reduced by $25,000 per 2.36 year in fiscal years 2006 and 2007. 2.37 Of this amount, $100,000 is the 2.38 rescission of the second year grant 2.39 appropriation to the Metropolitan 2.40 Economic Development Association made 2.41 in Laws 2003, chapter 128, article 10, 2.42 section 2. Base funding for this grant 2.43 is included in fiscal years 2006 and 2.44 2007. 2.45 Of this amount, $150,000 is the 2.46 rescission of the second year grant 2.47 appropriation to WomenVenture made in 2.48 Laws 2003, chapter 128, article 10, 2.49 section 2. Base funding for this grant 2.50 is included in fiscal years 2006 and 2.51 2007. 3.1 Of this amount, $175,000 is the 3.2 rescission of the second year 3.3 appropriation for the Minnesota Film 3.4 Board made in Laws 2003, chapter 128, 3.5 article 10, section 2. Base funding 3.6 for this grant is not included in 3.7 fiscal years 2006 and 2007. 3.8 Subd. 2. Appropriations 3.9 -0- 445,000 3.10 $100,000 in the second year is for a 3.11 grant to Minnesota Project Innovation 3.12 to provide assistance to Minnesota 3.13 businesses in obtaining federal 3.14 contracts. This appropriation is added 3.15 to the base budget for this program for 3.16 fiscal years 2006 and 2007. 3.17 $250,000 the second year is to the 3.18 Public Facilities Authority to carry 3.19 out the authority's duties under 3.20 Minnesota Statutes, section 446A.083. 3.21 The base budget for this program in 3.22 fiscal years 2006 and 2007 is $250,000 3.23 each year. 3.24 $95,000 in the second year is for a 3.25 onetime grant to the Minnesota 3.26 Employment Center for people who are 3.27 deaf and hard-of-hearing, and is in 3.28 addition to the appropriation made in 3.29 Laws 2003, chapter 128, article 10, 3.30 section 2. 3.31 Sec. 3. HOUSING FINANCE AGENCY -0- (628,000) 3.32 This reduction is from the 3.33 appropriation made in Laws 2003, 3.34 chapter 128, article 10, section 4. 3.35 This is a onetime reduction and is not 3.36 to be subtracted from the agency's base 3.37 for fiscal years 2006 and 2007. 3.38 Sec. 4. LABOR AND INDUSTRY -0- (85,000) 3.39 This reduction is from the operating 3.40 budget appropriation made in Laws 2003, 3.41 chapter 128, article 10, section 5. 3.42 The base operating budget is reduced by 3.43 an additional $43,000 per year for 3.44 fiscal years 2006 and 2007. 3.45 Sec. 5. BUREAU OF MEDIATION -0- (100,000) 3.46 SERVICES 3.47 This reduction is the rescission of the 3.48 second year appropriation for labor 3.49 management cooperation grants made in 3.50 Laws 2003, chapter 128, article 10, 3.51 section 6. No base funding for these 3.52 grants is included in fiscal years 2006 3.53 and 2007. 3.54 Sec. 6. MINNESOTA HISTORICAL 3.55 SOCIETY -0- 424,000 4.1 Of this amount, $664,000 is for fiscal 4.2 year 2005 for the operation of the 4.3 following historical sites for the 4.4 summer of 2004 and spring of 2005: 4.5 Kelley Farm, Hill House, Lower Sioux 4.6 Agency, Fort Ridgely, Historic 4.7 Forestville, the Forest History Center, 4.8 and the Comstock House. This is a 4.9 onetime appropriation and is not to be 4.10 added to the society's base. 4.11 Notwithstanding Minnesota Statutes, 4.12 section 138.668, the Minnesota 4.13 Historical Society may not charge a fee 4.14 for its general tours at the Capitol, 4.15 but may charge for special programs 4.16 other than general tours. 4.17 Of this amount, $60,000 in the second 4.18 year is to offset the revenue loss from 4.19 the prohibition of charging fees. This 4.20 appropriation is added to the society's 4.21 base. 4.22 Of this amount, $300,000 in the second 4.23 year is a reduction from the 4.24 appropriation made in Laws 2003, 4.25 chapter 128, article 10, section 8. 4.26 The base budget is reduced by an 4.27 additional $368,000 per year for fiscal 4.28 years 2006 and 2007. 4.29 Sec. 7. DEPARTMENT OF EDUCATION -0- 250,000 4.30 $250,000 in the second year is for 4.31 transfer to the Department of Human 4.32 Services for a onetime grant for the 4.33 transitional housing programs according 4.34 to Minnesota Statutes, section 119A.43, 4.35 and is in addition to the appropriation 4.36 made in Laws 2003, chapter 128, article 4.37 10, section 10. 4.38 Sec. 8. COMMERCE -0- (855,000) 4.39 Of this amount, $347,000 is a reduction 4.40 from the operating budget appropriation 4.41 made in Laws 2003, First Special 4.42 Session chapter 1, article 3, section 2. 4.43 The base operating budget is reduced by 4.44 an additional $174,000 per year for 4.45 fiscal years 2006 and 2007. 4.46 Of this amount, $100,000 is a reduction 4.47 from the appropriation made in Laws 4.48 2003, First Special Session chapter 1, 4.49 article 3, section 2, for the 4.50 administrative costs of the contractors 4.51 recovery fund. 4.52 Of this amount, $408,000 is a reduction 4.53 from the appropriation made in Laws 4.54 2003, First Special Session chapter 1, 4.55 article 3, section 2, for programs to 4.56 improve the energy efficiency of 4.57 residential oil-fired heating plants in 4.58 low-income households and, when 4.59 necessary, to provide weatherization 4.60 services to the homes. No base funding 5.1 for this program is included in fiscal 5.2 years 2006 and 2007. 5.3 Sec. 9. BOARD OF BARBER AND 5.4 COSMETOLOGIST EXAMINERS -0- 572,000 5.5 This appropriation is in addition to 5.6 the appropriation made in Laws 2003, 5.7 First Special Session chapter 1, 5.8 article 3, section 5, and is added to 5.9 the board's base. 5.10 Sec. 10. TRANSFERS AND CANCELLATIONS 5.11 Subdivision 1. Vocational 5.12 Rehabilitation Transfer 5.13 Beginning in fiscal year 2005, the 5.14 commissioner of employment and economic 5.15 development may transfer $1,325,000 5.16 from the independent living program's 5.17 general fund appropriation to the 5.18 vocational rehabilitation program. 5.19 Each year the state director of the 5.20 vocational rehabilitation program shall 5.21 immediately restore from the vocational 5.22 rehabilitation program's federal Social 5.23 Security Administration program income 5.24 or federal Title I funds, the 5.25 $1,325,000 to the Centers for 5.26 Independent Living. 5.27 Subd. 2. Federal Funds Match 5.28 The transferred independent living 5.29 general funds under subdivision 1 must 5.30 be used to match federal vocational 5.31 rehabilitation funds as they become 5.32 available, and each year the resulting 5.33 additional federal funds must be 5.34 divided equally between the vocational 5.35 rehabilitation program and the Centers 5.36 for Independent Living. 5.37 The maximum amount of federal 5.38 vocational rehabilitation funds that 5.39 may be shared with the Centers for 5.40 Independent Living is $2,438,000. The 5.41 vocational rehabilitation program may 5.42 not use the Centers for Independent 5.43 Living's share of the additional 5.44 federal funds for any other purpose 5.45 than to fund the Centers for 5.46 Independent Living. 5.47 Subd. 3. Data Sharing 5.48 The Centers for Independent Living must 5.49 share data with the vocational 5.50 rehabilitation program to ensure that 5.51 the transfer of funds under subdivision 5.52 1 and the related contracts meet all 5.53 legal requirements. 5.54 Subd. 4. Minnesota minerals 21st century fund 5.55 On or before June 30, 2005, the 5.56 commissioner of finance shall transfer 5.57 $5,724,000 from the Minnesota minerals 5.58 21st century fund account in the 5.59 special revenue fund to the general 6.1 fund. 6.2 On June 30, 2005, the commissioner of 6.3 finance shall transfer any remaining 6.4 unencumbered balance in the fund 6.5 account to the general fund. 6.6 Subd. 5. School Employee Health Insurance Study 6.7 Of the appropriation made to the 6.8 commissioner of commerce in Laws 2002, 6.9 chapter 378, section 3, $425,000 is 6.10 canceled and transferred to the general 6.11 fund. 6.12 Subd. 6. Fair Housing Education 6.13 Of the money appropriated for fair 6.14 housing education under Laws 2001, 6.15 chapter 208, section 28, $875,000 is 6.16 canceled and transferred to the general 6.17 fund. 6.18 Subd. 7. Mortgage Consumer Education 6.19 Of the unexpended balance in the 6.20 consumer education account established 6.21 under Minnesota Statutes, section 6.22 58.10, subdivision 3, $100,000 is 6.23 transferred to the general fund. 6.24 Subd. 8. Mortgage Flipping Education Campaign 6.25 Of the money appropriated for education 6.26 regarding mortgage flipping by Laws 6.27 1999, chapter 223, article 1, section 6.28 6, subdivision 3, $15,000 is canceled 6.29 and transferred to the general fund. 6.30 Subd. 9. Employer Association Investigation 6.31 After July 1, 2004, and before 6.32 September 30, 2004, the commissioner of 6.33 finance shall transfer $211,000 from 6.34 the employer association investigation 6.35 set-aside within the workforce 6.36 development fund to the general fund. 6.37 [EFFECTIVE DATE.] Subdivision 5 is effective the day 6.38 following final enactment. 6.39 Sec. 11. Minnesota Statutes 2002, section 60A.14, 6.40 subdivision 1, is amended to read: 6.41 Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In 6.42 addition to the fees and charges provided for examinations, the 6.43 following fees must be paid to the commissioner for deposit in 6.44 the general fund: 6.45 (a) by township mutual fire insurance companies; 6.46 (1) for filing certificate of incorporation $25 and 6.47 amendments thereto, $10; 6.48 (2) for filing annual statements, $15; 7.1 (3) for each annual certificate of authority, $15; 7.2 (4) for filing bylaws $25 and amendments thereto, $10; 7.3 (b) by other domestic and foreign companies including 7.4 fraternals and reciprocal exchanges; 7.5 (1) for filing an application for an initial certificate of 7.6 authority to be admitted to transact business in this state, 7.7 $1,500; 7.8 (2) for filing certified copy of certificate of articles of 7.9 incorporation, $100; 7.10(2)(3) for filing annual statement, $225; 7.11(3)(4) for filing certified copy of amendment to 7.12 certificate or articles of incorporation, $100; 7.13(4)(5) for filing bylaws, $75 or amendments thereto, $75; 7.14(5)(6) for each company's certificate of authority, $575, 7.15 annually; 7.16 (c) the following general fees apply: 7.17 (1) for each certificate, including certified copy of 7.18 certificate of authority, renewal, valuation of life policies, 7.19 corporate condition or qualification, $25; 7.20 (2) for each copy of paper on file in the commissioner's 7.21 office 50 cents per page, and $2.50 for certifying the same; 7.22 (3) for license to procure insurance in unadmitted foreign 7.23 companies, $575; 7.24 (4) for valuing the policies of life insurance companies, 7.25 one cent per $1,000 of insurance so valued, provided that the 7.26 fee shall not exceed $13,000 per year for any company. The 7.27 commissioner may, in lieu of a valuation of the policies of any 7.28 foreign life insurance company admitted, or applying for 7.29 admission, to do business in this state, accept a certificate of 7.30 valuation from the company's own actuary or from the 7.31 commissioner of insurance of the state or territory in which the 7.32 company is domiciled; 7.33 (5) for receiving and filing certificates of policies by 7.34 the company's actuary, or by the commissioner of insurance of 7.35 any other state or territory, $50; 7.36 (6) for each appointment of an agent filed with the 8.1 commissioner, $10; 8.2 (7) for filing forms and rates, $75 per filing, which may 8.3 be paid on a quarterly basis in response to an invoice. Billing 8.4 and payment may be made electronically; 8.5 (8) for annual renewal of surplus lines insurer license, 8.6 $300; 8.7 (9) $250 filing fee for a large risk alternative rating 8.8 option plan that meets the $250,000 threshold requirement. 8.9 The commissioner shall adopt rules to define filings that 8.10 are subject to a fee. 8.11 Sec. 12. Minnesota Statutes 2003 Supplement, section 8.12 116J.70, subdivision 2a, is amended to read: 8.13 Subd. 2a. [LICENSE; EXCEPTIONS.] "Business license" or 8.14 "license" does not include the following: 8.15 (1) any occupational license or registration issued by a 8.16 licensing board listed in section 214.01 or any occupational 8.17 registration issued by the commissioner of health pursuant to 8.18 section 214.13; 8.19 (2) any license issued by a county, home rule charter city, 8.20 statutory city, township, or other political subdivision; 8.21 (3) any license required to practice the following 8.22 occupation regulated by the following sections: 8.23 (i) abstracters regulated pursuant to chapter 386; 8.24 (ii) accountants regulated pursuant to chapter 326A; 8.25 (iii) adjusters regulated pursuant to chapter 72B; 8.26 (iv) architects regulated pursuant to chapter 326; 8.27 (v) assessors regulated pursuant to chapter 270; 8.28 (vi) athletic trainers regulated pursuant to chapter 148; 8.29 (vii) attorneys regulated pursuant to chapter 481; 8.30 (viii) auctioneers regulated pursuant to chapter 330; 8.31 (ix) barbers and cosmetologists regulated pursuant to 8.32 chapter 154; 8.33 (x)beauticians regulated pursuant to chapter 155A;8.34(xi)boiler operators regulated pursuant to chapter 183; 8.35(xii)(xi) chiropractors regulated pursuant to chapter 148; 8.36(xiii)(xii) collection agencies regulated pursuant to 9.1 chapter 332; 9.2(xiv) cosmetologists regulated pursuant to chapter 155A;9.3(xv)(xiii) dentists, registered dental assistants, and 9.4 dental hygienists regulated pursuant to chapter 150A; 9.5(xvi)(xiv) detectives regulated pursuant to chapter 326; 9.6(xvii)(xv) electricians regulated pursuant to chapter 326; 9.7(xviii)(xvi) mortuary science practitioners regulated 9.8 pursuant to chapter 149A; 9.9(xix)(xvii) engineers regulated pursuant to chapter 326; 9.10(xx)(xviii) insurance brokers and salespersons regulated 9.11 pursuant to chapter 60A; 9.12(xxi)(xix) certified interior designers regulated pursuant 9.13 to chapter 326; 9.14(xxii)(xx) midwives regulated pursuant to chapter 147D; 9.15(xxiii)(xxi) nursing home administrators regulated 9.16 pursuant to chapter 144A; 9.17(xxiv)(xxii) optometrists regulated pursuant to chapter 9.18 148; 9.19(xxv)(xxiii) osteopathic physicians regulated pursuant to 9.20 chapter 147; 9.21(xxvi)(xxiv) pharmacists regulated pursuant to chapter 9.22 151; 9.23(xxvii)(xxv) physical therapists regulated pursuant to 9.24 chapter 148; 9.25(xxviii)(xxvi) physician assistants regulated pursuant to 9.26 chapter 147A; 9.27(xxix)(xxvii) physicians and surgeons regulated pursuant 9.28 to chapter 147; 9.29(xxx)(xxviii) plumbers regulated pursuant to chapter 326; 9.30(xxxi)(xxix) podiatrists regulated pursuant to chapter 9.31 153; 9.32(xxxii)(xxx) practical nurses regulated pursuant to 9.33 chapter 148; 9.34(xxxiii)(xxxi) professional fund-raisers regulated 9.35 pursuant to chapter 309; 9.36(xxxiv)(xxxii) psychologists regulated pursuant to chapter 10.1 148; 10.2(xxxv)(xxxiii) real estate brokers, salespersons, and 10.3 others regulated pursuant to chapters 82 and 83; 10.4(xxxvi)(xxxiv) registered nurses regulated pursuant to 10.5 chapter 148; 10.6(xxxvii)(xxxv) securities brokers, dealers, agents, and 10.7 investment advisers regulated pursuant to chapter 80A; 10.8(xxxviii)(xxxvi) steamfitters regulated pursuant to 10.9 chapter 326; 10.10(xxxix)(xxxvii) teachers and supervisory and support 10.11 personnel regulated pursuant to chapter 125; 10.12(xl)(xxxviii) veterinarians regulated pursuant to chapter 10.13 156; 10.14(xli)(xxxix) water conditioning contractors and installers 10.15 regulated pursuant to chapter 326; 10.16(xlii)(xl) water well contractors regulated pursuant to 10.17 chapter 103I; 10.18(xliii)(xli) water and waste treatment operators regulated 10.19 pursuant to chapter 115; 10.20(xliv)(xlii) motor carriers regulated pursuant to chapter 10.21 221; 10.22(xlv)(xliii) professional firms regulated under chapter 10.23 319B; 10.24(xlvi)(xliv) real estate appraisers regulated pursuant to 10.25 chapter 82B; 10.26(xlvii)(xlv) residential building contractors, residential 10.27 remodelers, residential roofers, manufactured home installers, 10.28 and specialty contractors regulated pursuant to chapter 326; 10.29(xlviii)(xlvi) licensed professional counselors regulated 10.30 pursuant to chapter 148B; 10.31 (4) any driver's license required pursuant to chapter 171; 10.32 (5) any aircraft license required pursuant to chapter 360; 10.33 (6) any watercraft license required pursuant to chapter 10.34 86B; 10.35 (7) any license, permit, registration, certification, or 10.36 other approval pertaining to a regulatory or management program 11.1 related to the protection, conservation, or use of or 11.2 interference with the resources of land, air, or water, which is 11.3 required to be obtained from a state agency or instrumentality; 11.4 and 11.5 (8) any pollution control rule or standard established by 11.6 the Pollution Control Agency or any health rule or standard 11.7 established by the commissioner of health or any licensing rule 11.8 or standard established by the commissioner of human services. 11.9 Sec. 13. Minnesota Statutes 2003 Supplement, section 11.10 116J.8731, subdivision 5, is amended to read: 11.11 Subd. 5. [GRANT LIMITS.] A Minnesota investment fund grant 11.12 may not be approved for an amount in excess of $1,000,000. This 11.13 limit covers all money paid to complete the same project, 11.14 whether paid to one or more grant recipients and whether paid in 11.15 one or more fiscal years.The portionTwenty percent of a 11.16 Minnesota investment fund grantthat exceeds, but no more 11.17 than $100,000must be repaid to the state when it is repaid to, 11.18 may be retained by the local community or recognized Indian 11.19 tribal government when the grant is repaid by the person or 11.20 entity to which it was loaned by the local community or Indian 11.21 tribal government. The remainder must be repaid to the state. 11.22 Money repaid to the state must be credited to a Minnesota 11.23 investment revolving loan account in the state treasury. Funds 11.24 in the account are appropriated to the commissioner and must be 11.25 used in the same manner as are funds appropriated to the 11.26 Minnesota investment fund. Funds repaid to the state through 11.27 existing Minnesota investment fund agreements must be credited 11.28 to the Minnesota investment revolving loan account effective 11.29 July 1, 2003. A grant or loan may not be made to a person or 11.30 entity for the operation or expansion of a casino or a store 11.31 which is used solely or principally for retail sales. Persons 11.32 or entities receiving grants or loans must pay each employee 11.33 total compensation, including benefits not mandated by law, that 11.34 on an annualized basis is equal to at least 110 percent of the 11.35 federal poverty level for a family of four. 11.36 Sec. 14. Minnesota Statutes 2002, section 154.01, is 12.1 amended to read: 12.2 154.01 [REGISTRATION MANDATORY.] 12.3 (a) No person shall practice, offer to practice, or attempt 12.4 to practice barbering without a current certificate of 12.5 registration as a registered barber, issued pursuant to 12.6 provisions ofthis chaptersections 154.01 to 154.26 by the 12.7 Board of Barber and Cosmetologist Examiners. 12.8 (b) No person shall serve, offer to serve, or attempt to 12.9 serve as an apprentice under a registered barber without a 12.10 current certificate of registration as a registered apprentice 12.11 or temporary apprentice permit issued pursuant to provisions of 12.12this chaptersections 154.01 to 154.26 by the Board of Barber 12.13 and Cosmetologist Examiners. The registered apprentice shall, 12.14 prior to or immediately upon issuance of the apprentice's 12.15 certificate of registration, and immediately after changing 12.16 employment, advise the board of the name, address, and 12.17 certificate number of the registered barber under whom the 12.18 registered apprentice is working. 12.19 (c) No person shall operate a barber shop unless it is at 12.20 all times under the direct supervision and management of a 12.21 registered barber and the owner or operator of the barber shop 12.22 possesses a current shop registration card, issued underthis12.23chaptersections 154.01 to 154.26 by the Board of Barber and 12.24 Cosmetologist Examiners. 12.25 (d) No person shall serve, offer to serve, or attempt to 12.26 serve as an instructor of barbering without a current 12.27 certificate of registration as a registered instructor of 12.28 barbering or a temporary permit as an instructor of barbering, 12.29 as provided for the board by rule, issued underthis chapter12.30 sections 154.01 to 154.26 by the Board of Barber and 12.31 Cosmetologist Examiners. 12.32 (e) No person shall operate a barber school unless the 12.33 owner or operator possesses a current certificate of 12.34 registration as a barber school, issued underthis chapter12.35 sections 154.01 to 154.26 by the Board of Barber and 12.36 Cosmetologist Examiners. 13.1 Sec. 15. Minnesota Statutes 2002, section 154.02, is 13.2 amended to read: 13.3 154.02 [WHAT CONSTITUTES BARBERING.] 13.4 Any one or any combination of the following practices when 13.5 done upon the head and neck for cosmetic purposes and not for 13.6 the treatment of disease or physical or mental ailments and when 13.7 done for payment directly or indirectly or without payment for 13.8 the public generally constitutes the practice of barbering 13.9 within the meaning ofthis chaptersections 154.01 to 154.26: 13.10 to shave, trim the beard, cut or bob the hair of any person of 13.11 either sex for compensation or other reward received by the 13.12 person performing such service or any other person; to give 13.13 facial and scalp massage or treatments with oils, creams, 13.14 lotions, or other preparations either by hand or mechanical 13.15 appliances; to singe, shampoo the hair, or apply hair tonics; or 13.16 to apply cosmetic preparations, antiseptics, powders, oils, 13.17 clays, or lotions to scalp, face, or neck. 13.18 Sec. 16. Minnesota Statutes 2002, section 154.03, is 13.19 amended to read: 13.20 154.03 [APPRENTICES MAY BE EMPLOYED.] 13.21 A registered apprentice may practice barbering only if the 13.22 registered apprentice is, at all times, under the immediate 13.23 personal supervision of a registered barber and is in compliance 13.24 withthis chaptersections 154.01 to 154.26 and the rules of the 13.25 board. 13.26 Sec. 17. Minnesota Statutes 2002, section 154.04, is 13.27 amended to read: 13.28 154.04 [PERSONS EXEMPT FROM REGISTRATION.] 13.29 The following persons are exempt from the provisions of 13.30this chaptersections 154.01 to 154.26 while in the proper 13.31 discharge of their professional duties: 13.32 (1) persons authorized by the law of this state to practice 13.33 medicine, surgery, osteopathy, and chiropractic; 13.34 (2) commissioned medical or surgical officers of the United 13.35 States armed services; 13.36 (3) registered nurses, licensed practical nurses, and 14.1 nursing aides performing services under the direction and 14.2 supervision of a registered nurse, provided, however, that no 14.3 additional compensation shall be paid for such service and 14.4 patients who are so attended shall not be charged for barbering; 14.5 (4)persons practicing beauty culturecosmetologists, 14.6 provided, however, thatpersons practicing beauty culture14.7 cosmetologists shall not hold themselves out as barbers or, 14.8 except in the case of manicurists, practice their occupation in 14.9 a barber shop; and 14.10 (5) persons who perform barbering services for charitable 14.11 purposes in nursing homes, shelters, missions, or other similar 14.12 facilities, provided, however, that no direct or indirect 14.13 compensation is received for the services, and that persons who 14.14 receive barbering services are not charged for the services. 14.15 Sec. 18. Minnesota Statutes 2002, section 154.06, is 14.16 amended to read: 14.17 154.06 [WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 14.18 REGISTERED APPRENTICE.] 14.19 A person is qualified to receive a certificate of 14.20 registration as a registered apprentice: 14.21 (1) who has completed at least ten grades of an approved 14.22 school; 14.23 (2) who has graduated from a barber school approved by the 14.24 board; and 14.25 (3) who has passed an examination conducted by the board to 14.26 determine fitness to practice as a registered apprentice. 14.27 An applicant for a certificate of registration to practice 14.28 as an apprentice who fails to pass the examination conducted by 14.29 the board is required to complete a further course of study of 14.30 at least 500 hours, of not more than eight hours in any one 14.31 working day, in a barber school approved by the board. 14.32 A certificate of registration of an apprentice shall be 14.33 valid for four years from the date the certificate of 14.34 registration is issued by the board and shall not be renewed. 14.35 Duringsuchthe four-year period the certificate of registration 14.36 shall remain in full force and effect only if the apprentice 15.1 complies with all the provisions ofthis chapter, as15.2amendedsections 154.01 to 154.26, including the payment of an 15.3 annual fee, and the rules of the board. 15.4 Ifanya registered apprenticeshall, during the term in 15.5 which the certificate of registration is in effect,enter full15.6timeenters full-time active duty in the armed forces of the 15.7 United States of America, the expiration date of the certificate 15.8 of registration shall be extended by a period of time equal to 15.9 the period or periods of active duty. 15.10 Sec. 19. Minnesota Statutes 2002, section 154.07, as 15.11 amended by Laws 2003, chapter 130, section 12, is amended to 15.12 read: 15.13 154.07 [BARBER SCHOOLS; REQUIREMENTS.] 15.14 Subdivision 1. [ADMISSION REQUIREMENTS; COURSE OF 15.15 INSTRUCTION.] No barber school shall be approved by the board 15.16 unless it requires, as a prerequisite to admissionthereto, ten 15.17 grades of an approved school or its equivalent, as determined by 15.18 an examination conducted by the commissioner of education, which 15.19 shall issue a certificate that the student has passed the 15.20 required examination, and unless it requires, as a prerequisite 15.21 to graduation, a course of instruction of at least 1,500 hours, 15.22 of not more than eight hours in any one working day; such. The 15.23 course of instructiontomust include the following subjects: 15.24 scientific fundamentals for barbering,; hygiene,; practical 15.25 study of the hair, skin, muscles, and nerves,; structure of the 15.26 head, face, and neck,; elementary chemistry relating to 15.27 sterilization and antiseptics; diseases of the skin, hair, and 15.28 glands,; massaging and manipulating the muscles of the face and 15.29 neck,; haircutting,; shaving, and; trimming the beard; 15.30 bleaching, tinting and dyeing the hair,; and the chemical 15.31 straightening of hair. 15.32 Subd. 3. [COSTS.] Itshall beis permissible for barber 15.33 schools to make a reasonable charge for materials used and 15.34 services rendered by students for work done insuchthe schools 15.35 by students. 15.36 Subd. 3a. [NUMBER OF INSTRUCTORS.] Thereshallmust be one 16.1 registered instructor of barbering for every 17 students or 16.2 minor fraction in excess of 17.NoInstructionshallmust not 16.3 be performed by persons not possessing a certificate of 16.4 registration as an instructor of barbering or a temporary permit 16.5 as an instructor of barbering. 16.6 Subd. 4. [BUILDING REQUIREMENTS.] Each barber schoolshall16.7 must be conducted and operated in one building, or in connecting 16.8 buildings, andnoa barber schoolshallmust not have any 16.9 department or branch in a building completely separated or 16.10 removed from the remainder of the barber school. 16.11 Subd. 5. [OWNER'S REQUIREMENTS.] Any person may own and 16.12 operate a barber school if the person has had six years' 16.13 continuous experience as a barber, provided the person first 16.14 secures from the board an annual certificate of registration as 16.15 a barber school, keeps it prominently displayed, and before 16.16 commencing business: 16.17 (1) files with the secretary of state a bond to the state 16.18 approved by the attorney general in the sum of $25,000, 16.19 conditioned upon the faithful compliance of the barber school 16.20 withall the provisions hereinsections 154.01 to 154.26, and to 16.21 pay all judgments that may be obtained against the school, or 16.22 the owners thereof, on account of fraud, misrepresentation, or 16.23 deceit practiced by them or their agents; and 16.24 (2) keeps prominently displayed on the exterior a 16.25 substantial sign indicating that the establishment is a barber 16.26 school. 16.27 Subd. 5a. [STUDENT PERMITS.] All barber schools upon 16.28 receiving students shall immediately apply to the board for 16.29 student permits upon forms for that purpose furnished by the 16.30 board. 16.31 Subd. 5b. [DESIGNATED OPERATOR.] When a person who owns a 16.32 barber school does not meet the requirements of this section to 16.33 operate a barber school, the owner shall notify the board in 16.34 writing and under oath of the identity of the person designated 16.35 to operate the barber school and shall notify the board of any 16.36 change of operator by telephone within 24 hours of such change, 17.1 exclusive of Saturdays, Sundays, and legal holidays, and shall 17.2 notify the board in writing and under oath within 72 hours of 17.3 such change. 17.4 Subd. 6. [OPERATION BY TECHNICAL COLLEGE OR STATE 17.5 INSTITUTION.] A public technical college or a state institution 17.6 may operate a barber school provided it has in its employment a 17.7 qualified instructor holding a current certificate of 17.8 registration as a barber instructor and provided that it secures 17.9 from the boardof Barber Examinersan annual certificate of 17.10 registration and does so in accordance withthis chapter17.11 sections 154.01 to 154.26 and the rules of the board for barber 17.12 schools but without the requirement to file a performance bond 17.13 with the secretary of state. 17.14 Sec. 20. Minnesota Statutes 2002, section 154.08, is 17.15 amended to read: 17.16 154.08 [APPLICATION; FEE.] 17.17 Each applicant for an examination shall: 17.18 (1) make application to the Board of Barber and 17.19 Cosmetologist Examiners on blank forms prepared and furnished by 17.20 it,suchthe application to contain proof under the applicant's 17.21 oath of the particular qualifications of the applicant; 17.22 (2) furnish to the board two five inch x three inch signed 17.23 photographs of the applicant, one to accompany the application 17.24 and one to be returned to the applicant, to be presented to the 17.25 board when the applicant appears for examination; and 17.26 (3) pay to the board the required fee. 17.27 Sec. 21. Minnesota Statutes 2002, section 154.11, is 17.28 amended to read: 17.29 154.11 [EXAMINATION OF NONRESIDENT BARBERS AND INSTRUCTORS 17.30 OF BARBERING; TEMPORARY APPRENTICE PERMITS.] 17.31 Subdivision 1. [EXAMINATION OF NONRESIDENTS.] A person who 17.32 meets all of the requirements forlicensurebarber registration 17.33 inthis chaptersections 154.01 to 154.26 and either has a 17.34 license, certificate of registration, or an equivalent as a 17.35 practicing barber or instructor of barbering from another state 17.36 or country which in the discretion of the board has 18.1 substantially the same requirements forlicensing orregistering 18.2 barbers and instructors of barbering as required bythis chapter18.3 sections 154.01 to 154.26 or can prove by sworn affidavits 18.4 practice as a barber or instructor of barbering in another state 18.5 or country for at least five years immediately prior to making 18.6 application in this state, shall, upon payment of the required 18.7 fee, be issued a certificate of registration without 18.8 examination, provided that the other state or country grants the 18.9 same privileges to holders of Minnesota certificates of 18.10 registration. 18.11 Subd. 2. [TEMPORARY APPRENTICE PERMITS FOR NONRESIDENTS.] 18.12 Any person who qualifies for examination as a registered barber 18.13 under this section may apply for a temporary apprentice permit 18.14 which is effective no longer than six months. All persons 18.15 holding a temporary apprentice permit are subject to all 18.16 provisions ofthis chaptersections 154.01 to 154.26 and the 18.17 rules adopted by the board underitthose sections concerning 18.18 the conduct and obligations of registered apprentices. 18.19 Sec. 22. Minnesota Statutes 2002, section 154.12, is 18.20 amended to read: 18.21 154.12 [EXAMINATION OF NONRESIDENT APPRENTICES.] 18.22 A person who meets all of the requirements forlicensure18.23 registration as a barber inthis chaptersections 154.01 to 18.24 154.26 and who has a license, a certificate of registration, or 18.25theirits equivalent as an apprentice in a state or country 18.26 which in the discretion of the board has substantially the same 18.27 requirements for registration as an apprentice as is provided by 18.28this chaptersections 154.01 to 154.26, shall, upon payment of 18.29 the required fee, be issued a certificate of registration 18.30 without examination, provided that the other state or country 18.31 grants the same privileges to holders of Minnesota certificates 18.32 of registration. 18.33 Sec. 23. Minnesota Statutes 2002, section 154.161, 18.34 subdivision 2, is amended to read: 18.35 Subd. 2. [LEGAL ACTIONS.] (a) When necessary to prevent an 18.36 imminent violation of a statute, rule, or order that the board 19.1 has adopted or issued or is empowered to enforce, the board, or 19.2 a complaint committee if authorized by the board, may bring an 19.3 action in the name of the state in the District Court of Ramsey 19.4 County in which jurisdiction is proper to enjoin the act or 19.5 practice and to enforce compliance with the statute, rule, or 19.6 order. On a showing that a person has engaged in or is about to 19.7 engage in an act or practice that constitutes a violation of a 19.8 statute, rule, or order that the board has adopted or issued or 19.9 is empowered to enforce, the court shall grant a permanent or 19.10 temporary injunction, restraining order, or other appropriate 19.11 relief. 19.12 (b) For purposes of injunctive relief under this 19.13 subdivision, irreparable harm exists when the board shows that a 19.14 person has engaged in or is about to engage in an act or 19.15 practice that constitutes violation of a statute, rule, or order 19.16 that the board has adopted or issued or is empowered to enforce. 19.17 (c) Injunctive relief granted under paragraph (a) does not 19.18 relieve an enjoined person from criminal prosecution by a 19.19 competent authority, or from action by the board under 19.20 subdivision 3, 4, 5, or 6 with respect to the person's 19.21licenseregistration, certificate, or application for 19.22 examination,licenseregistration, or renewal. 19.23 Sec. 24. Minnesota Statutes 2002, section 154.161, 19.24 subdivision 4, is amended to read: 19.25 Subd. 4. [LICENSEREGISTRATION ACTIONS.] (a) With respect 19.26 to a person who is a holder of or applicant fora licensee19.27 registration or a shop registration card underthis chapter19.28 sections 154.01 to 154.26, the board may by order deny, refuse 19.29 to renew, suspend, temporarily suspend, or revoke the 19.30 application, certificate of registration, or shop registration 19.31 card, censure or reprimand the person, refuse to permit the 19.32 person to sit for examination, or refuse to release the person's 19.33 examination grades, if the board finds that such an order is in 19.34 the public interest and that, based on a preponderance of the 19.35 evidence presented, the person has: 19.36 (1) violated a statute, rule, or order that the board has 20.1 adopted or issued or is empowered to enforce; 20.2 (2) engaged in conduct or acts that are fraudulent, 20.3 deceptive, or dishonest, whether or not the conduct or acts 20.4 relate to the practice of barbering, if the fraudulent, 20.5 deceptive, or dishonest conduct or acts reflect adversely on the 20.6 person's ability or fitness to engage in the practice of 20.7 barbering; 20.8 (3) engaged in conduct or acts that constitute malpractice, 20.9 are negligent, demonstrate incompetence, or are otherwise in 20.10 violation of the standards in the rules of the board, where the 20.11 conduct or acts relate to the practice of barbering; 20.12 (4) employed fraud or deception in obtaining a certificate 20.13 of registration, shop registration card, renewal, or 20.14 reinstatement, or in passing all or a portion of the 20.15 examination; 20.16 (5) had a certificate of registration or shop registration 20.17 card, right to examine, or other similar authority revoked in 20.18 another jurisdiction; 20.19 (6) failed to meet any requirement for issuance or renewal 20.20 of the person's certificate of registration or shop registration 20.21 card; 20.22 (7) practiced as a barber while having an infectious or 20.23 contagious disease; 20.24 (8) advertised by means of false or deceptive statements; 20.25 (9) demonstrated intoxication or indulgence in the use of 20.26 drugs, including but not limited to narcotics as defined in 20.27 section 152.01 or in United States Code, title 26, section 4731, 20.28 barbiturates, amphetamines, benzedrine, dexedrine, or other 20.29 sedatives, depressants, stimulants, or tranquilizers; 20.30 (10) demonstrated unprofessional conduct or practice; 20.31 (11) permitted an employee or other person under the 20.32 person's supervision or control to practice as a registered 20.33 barber, registered apprentice, or registered instructor of 20.34 barbering unless that person has (i) a current certificate of 20.35 registration as a registered barber, registered apprentice, or 20.36 registered instructor of barbering, (ii) a temporary apprentice 21.1 permit, or (iii) a temporary permit as an instructor of 21.2 barbering; 21.3 (12) practices, offered to practice, or attempted to 21.4 practice by misrepresentation; 21.5 (13) failed to display a certificate of registration as 21.6 required by section 154.14; 21.7 (14) used any room or place of barbering that is also used 21.8 for any other purpose, or used any room or place of barbering 21.9 that violates the board's rules governing sanitation; 21.10 (15) in the case of a barber, apprentice, or other person 21.11 working in or in charge of any barber shop, or any person in a 21.12 barber school engaging in the practice of barbering, failed to 21.13 use separate and clean towels for each customer or patron, or to 21.14 discard and launder each towel after being used once; 21.15 (16) in the case of a barber or other person in charge of 21.16 any barber shop or barber school, (i) failed to supply in a 21.17 sanitary manner clean hot and cold water in quantities necessary 21.18 to conduct the shop or barbering service for the school, (ii) 21.19 failed to have water and sewer connections from the shop or 21.20 barber school with municipal water and sewer systems where they 21.21 are available for use, or (iii) failed or refused to maintain a 21.22 receptacle for hot water of a capacity of at least five gallons; 21.23 (17) refused to permit the board to make an inspection 21.24 permitted or required bythis chaptersections 154.01 to 154.26, 21.25 or failed to provide the board or the attorney general on behalf 21.26 of the board with any documents or records they request; 21.27 (18) failed promptly to renew a certificate of registration 21.28 or shop registration card when remaining in practice, pay the 21.29 required fee, or issue a worthless check; 21.30 (19) failed to supervise a registered apprentice or 21.31 temporary apprentice, or permitted the practice of barbering by 21.32 a person not registered with the board or not holding a 21.33 temporary permit; 21.34 (20) refused to serve a customer because of race, color, 21.35 creed, religion, disability, national origin, or sex; 21.36 (21) failed to comply with a provision of chapter 141 or a 22.1 provision of another chapter that relates to barber schools; or 22.2 (22) with respect to temporary suspension orders, has 22.3 committed an act, engaged in conduct, or committed practices 22.4 that the board, or complaint committee if authorized by the 22.5 board, has determined may result or may have resulted in an 22.6 immediate threat to the public. 22.7 (b) In lieu of or in addition to any remedy under paragraph 22.8 (a), the board may as a condition of continued registration, 22.9 termination of suspension, reinstatement of registration, 22.10 examination, or release of examination results, require that the 22.11 person: 22.12 (1) submit to a quality review of the person's ability, 22.13 skills, or quality of work, conducted in a manner and by a 22.14 person or entity that the board determines; or 22.15 (2) complete to the board's satisfaction continuing 22.16 education as the board requires. 22.17 (c) Service of an order under this subdivision is effective 22.18 if the order is served personally on, or is served by certified 22.19 mail to the most recent address provided to the board by,the 22.20licensee,certificate holder, applicant, or counsel of record. 22.21 The order must state the reason for the entry of the order. 22.22 (d) Except as provided in subdivision 5, paragraph (c), all 22.23 hearings under this subdivision must be conducted in accordance 22.24 with the Administrative Procedure Act. 22.25 Sec. 25. Minnesota Statutes 2002, section 154.161, 22.26 subdivision 5, is amended to read: 22.27 Subd. 5. [TEMPORARY SUSPENSION.] (a) When the board, or 22.28 complaint committee if authorized by the board, issues a 22.29 temporary suspension order, the suspension provided for in the 22.30 order is effective on service of a written copy of the order on 22.31 thelicensee,certificate holder,or counsel of record. The 22.32 order must specify the statute, rule, or order violated by the 22.33licensee orcertificate holder. The order remains in effect 22.34 until the board issues a final order in the matter after a 22.35 hearing, or on agreement between the board and thelicensee or22.36 certificate holder. 23.1 (b) An order under this subdivision may (1) prohibit the 23.2licensee orcertificate holder from engaging in the practice of 23.3 barbering in whole or in part, as the facts require, and (2) 23.4 condition the termination of the suspension on compliance with a 23.5 statute, rule, or order that the board has adopted or issued or 23.6 is empowered to enforce. The order must state the reasons for 23.7 entering the order and must set forth the right to a hearing as 23.8 provided in this subdivision. 23.9 (c) Within ten days after service of an order under this 23.10 subdivision thelicensee orcertificate holder may request a 23.11 hearing in writing. The board must hold a hearing before its 23.12 own members within five working days of the request for a 23.13 hearing. The sole issue at such a hearing must be whether there 23.14 is a reasonable basis to continue, modify, or terminate the 23.15 temporary suspension. The hearing is not subject to the 23.16 Administrative Procedure Act. Evidence presented to the board 23.17 or thelicensee orcertificate holder may be in affidavit form 23.18 only. Thelicensee,certificate holder,or counsel of record 23.19 may appear for oral argument. 23.20 (d) Within five working days after the hearing, the board 23.21 shall issue its order and, if the order continues the 23.22 suspension, shall schedule a contested case hearing within 30 23.23 days of the issuance of the order. Notwithstanding any rule to 23.24 the contrary, the administrative law judge shall issue a report 23.25 within 30 days after the closing of the contested case hearing 23.26 record. The board shall issue a final order within 30 days of 23.27 receiving the report. 23.28 Sec. 26. Minnesota Statutes 2002, section 154.161, 23.29 subdivision 7, is amended to read: 23.30 Subd. 7. [REINSTATEMENT.] The board may reinstate a 23.31 suspended, revoked, or surrendered certificate of registration 23.32 or shop registration card, on petition of the former or 23.33 suspended registrant. The board may in its sole discretion 23.34 place any conditions on reinstatement of a suspended, revoked, 23.35 or surrendered certificate of registration or shop registration 23.36 card that it finds appropriate and necessary to ensure that the 24.1 purposes ofthis chaptersections 154.01 to 154.26 are met. No 24.2 certificate of registration or shop registration card may be 24.3 reinstated until the former registrant has completed at least 24.4 one-half of the suspension period. 24.5 Sec. 27. Minnesota Statutes 2002, section 154.18, is 24.6 amended to read: 24.7 154.18 [FEES.] 24.8 (a) The fees collected, as required in this chapter, 24.9 chapter 214, and the rules of the board, shall be paid in 24.10 advance by September 1 of the year in which they are due to the 24.11 executive secretary of the board. The executive secretary shall 24.12 deposit the fees in the general fund in the state treasury, to 24.13 be disbursed by the executive secretary on the order of the 24.14 chair in payment of expenses lawfully incurred by the board. 24.15 (b) The board shall charge the following fees: 24.16 (1) examination and certificate, registered barber, $65; 24.17 (2) examination and certificate, apprentice, $60; 24.18 (3) examination, instructor, $160; 24.19 (4) certificate, instructor, $45; 24.20 (5) temporary teacher or apprentice permit, $50; 24.21 (6) renewal of license, registered barber, $50; 24.22 (7) renewal of license, apprentice, $45; 24.23 (8) renewal of license, instructor, $60; 24.24 (9) renewal of temporary teacher permit, $35; 24.25 (10) student permit, $25; 24.26 (11) initial shop registration, $60; 24.27 (12) initial school registration, $1,010; 24.28 (13) renewal shop registration, $60; 24.29 (14) renewal school registration, $260; 24.30 (15) restoration of registered barber license, $75; 24.31 (16) restoration of apprentice license, $70; 24.32 (17) restoration of shop registration, $85; 24.33 (18) change of ownership or location, $35; 24.34 (19) duplicate license, $20; and 24.35 (20) home study course, $75. 24.36 Sec. 28. Minnesota Statutes 2002, section 154.19, is 25.1 amended to read: 25.2 154.19 [VIOLATIONS.] 25.3 Each of the following constitutes a misdemeanor: 25.4 (1) The violation of any of the provisions of section 25.5 154.01; 25.6 (2) Permitting any person in one's employ, supervision, or 25.7 control to practice as a registered barber or registered 25.8 apprentice unless that person has a certificate of registration 25.9 as a registered barber or registered apprentice; 25.10 (3) Obtaining or attempting to obtain a certificate of 25.11 registration for money other than the required fee, or any other 25.12 thing of value, or by fraudulent misrepresentation; 25.13 (4) Practicing or attempting to practice by fraudulent 25.14 misrepresentation; 25.15 (5) The willful failure to display a certificate of 25.16 registration as required by section 154.14; 25.17 (6) The use of any room or place for barbering which is 25.18 also used for residential or business purposes, except the sale 25.19 of hair tonics, lotions, creams, cutlery, toilet articles, 25.20 cigars, tobacco, candies in original package, and such 25.21 commodities as are used and sold in barber shops, and except 25.22 that shoe-shining and an agency for the reception and delivery 25.23 of laundry, or either, may be conducted in a barber shop without 25.24 the same being construed as a violation of this section, unless 25.25 a substantial partition of ceiling height separates the portion 25.26 used for residential or business purposes, and where a barber 25.27 shop is situated in a residence, poolroom, confectionery, store, 25.28 restaurant, garage, clothing store, liquor store, hardware 25.29 store, or soft drink parlor, there must be an outside entrance 25.30 leading into the barber shop independent of any entrance leading 25.31 into such business establishment, except that this provision as 25.32 to an outside entrance shall not apply to barber shops in 25.33 operation at the time of the passage of thischaptersection and 25.34 except that a barber shop and beauty parlor may be operated in 25.35 conjunction, without the same being separated by partition of 25.36 ceiling height; 26.1 (7) The failure or refusal of any barber or other person in 26.2 charge of any barber shop, or any person in barber schools or 26.3 colleges doing barber service work, to use separate and clean 26.4 towels for each customer or patron, or to discard and launder 26.5 each towel after once being used; 26.6 (8) The failure or refusal by any barber or other person in 26.7 charge of any barber shop or barber school or barber college to 26.8 supply clean hot and cold water in such quantities as may be 26.9 necessary to conduct such shop, or the barbering service of such 26.10 school or college, in a sanitary manner, or the failure or 26.11 refusal of any such person to have water and sewer connections 26.12 from such shop, or barber school or college, with municipal 26.13 water and sewer systems where the latter are available for use, 26.14 or the failure or refusal of any such person to maintain a 26.15 receptacle for hot water of a capacity of not less than five 26.16 gallons; 26.17 (9) For the purposes ofthis chaptersections 154.01 to 26.18 154.26, barbers, students, apprentices, or the proprietor or 26.19 manager of a barber shop, or barber school or barber college, 26.20 shall be responsible for all violations of the sanitary 26.21 provisions ofthis chaptersections 154.01 to 154.26, and if any 26.22 barber shop, or barber school or barber college, upon 26.23 inspection, shall be found to be in an unsanitary condition, the 26.24 person making such inspection shall immediately issue an order 26.25 to place the barber shop, or barber school, or barber college, 26.26 in a sanitary condition, in a manner and within a time 26.27 satisfactory to the Board of Barber and Cosmetologist Examiners, 26.28 and for the failure to comply with such order the board shall 26.29 immediately file a complaint for the arrest of the persons upon 26.30 whom the order was issued, and anylicensedregistered barber 26.31 who shall fail to comply with the rules adopted by the Board of 26.32 Barber and Cosmetologist Examiners, with the approval of the 26.33 state commissioner of health, or the violation or commission of 26.34 any of the offenses described in section 154.16, clauses (1), 26.35 (2), (3), (4), (5), (6), (7), (8), (9), and of clauses (1), (2), 26.36 (3), (4), (5), (6), (7), (8), and (9) of this section, shall be 27.1 fined not less than $10 or imprisoned for ten days and not more 27.2 than $100 or imprisoned for 90 days. 27.3 Sec. 29. Minnesota Statutes 2002, section 154.21, is 27.4 amended to read: 27.5 154.21 [PERJURY.] 27.6 The willful making of any false statement as to a material 27.7 matter in any oath or affidavit which is required by the 27.8 provisions ofthis chaptersections 154.01 to 154.26 is perjury 27.9 and punishable as such. 27.10 Sec. 30. Minnesota Statutes 2002, section 154.22, is 27.11 amended to read: 27.12 154.22 [BOARD OF BARBER AND COSMETOLOGIST EXAMINERS 27.13 CREATED; TERMS.] 27.14 (a) A Board of Barber and Cosmetologist Examiners is 27.15 established to consist offourthree barber members, three 27.16 cosmetologist members, and one public member, as defined in 27.17 section 214.02, appointed by the governor.Three of such27.18 (b) The barber members shall be persons who have practiced 27.19 asaregisteredbarberbarbers in this state for at least five 27.20 years immediately prior to their appointment; shall be graduates 27.21 from the 12th grade of a high school or have equivalent 27.22 education, and shall have knowledge of the matters to be taught 27.23 in registered barber schools, as set forth in section 27.24 154.07.The remaining member of the board shall be a public27.25member as defined by section 214.02.One of the members shall 27.26 be a member of, or recommended by, a union of journeymen barbers 27.27which shall havethat has existed at least two years, and one 27.28 shall be a member of, or recommended by, a professional 27.29 organization of barbers. 27.30 (c) All members must be currently licensed in the state of 27.31 Minnesota, have practiced in the licensed occupation for at 27.32 least five years immediately prior to their appointment, be 27.33 graduates from the 12th grade of high school or have equivalent 27.34 education, and have knowledge of sections 155A.01 to 155A.16 and 27.35 Minnesota Rules, chapters 2642 and 2644. The members shall be 27.36 members of, or recommended by, a professional organization of 28.1 cosmetologists, manicurists, or estheticians. 28.2 (d) Membership terms, compensation of members, removal of 28.3 members, the filling of membership vacancies, and fiscal year 28.4 and reporting requirements shall be as provided in sections 28.5 214.07 to 214.09. The provision of staff, administrative 28.6 services and office space; the review and processing of 28.7 complaints; the setting of board fees; and other provisions 28.8 relating to board operations shall be as provided in chapter 214. 28.9 (e) Members appointed to fill vacancies caused by death, 28.10 resignation, or removal shall serve during the unexpired term of 28.11 their predecessors. 28.12 (f) The barber members of the board shall separately 28.13 oversee administration, enforcement, and regulation of, and 28.14 adoption of rules under, sections 154.01 to 154.26. The 28.15 cosmetologist members of the board shall separately oversee 28.16 administration, enforcement, and regulation of, and adoption of 28.17 rules under, sections 155A.01 to 155A.16. Staff hired by the 28.18 board, including inspectors, shall serve both professions. 28.19 Sec. 31. Minnesota Statutes 2002, section 154.23, is 28.20 amended to read: 28.21 154.23 [OFFICERS; COMPENSATION; FEES; EXPENSES.] 28.22 The Board of Barber and Cosmetologist Examiners shall 28.23 annually elect a chair and secretary. It shall adopt and use a 28.24 common seal for the authentication of its orders and records. 28.25 The board shall appoint an executive secretary who shall not be 28.26 a member of the board and who shall be in the unclassified civil 28.27 service. 28.28 The executive secretary shall keep a record of all 28.29 proceedings of the board. The expenses of administering 28.30sections 154.01 to 154.26this chapter shall be paid from the 28.31 appropriations made to the Board of Barber and Cosmetologist 28.32 Examiners. 28.33 Each member of the board shall take the oath provided by 28.34 law for public officers. 28.35 A majority of the board, in meeting assembled, may perform 28.36 and exercise all the duties and powers devolving upon the board. 29.1 The members of the board shall receive compensation for 29.2 each day spent on board activities, but not to exceed 20 days in 29.3 any calendar month nor 100 days in any calendar year. 29.4 The board shall have authority to employ such inspectors, 29.5 clerks, deputies, and other assistants as it may deem necessary 29.6 to carry out the provisions of this chapter. 29.7 Sec. 32. Minnesota Statutes 2002, section 154.24, is 29.8 amended to read: 29.9 154.24 [RULES.] 29.10 The Board of Barber and Cosmetologist Examiners shall have 29.11 authority to make reasonable rules for the administration of the 29.12 provisions ofthis chaptersections 154.01 to 154.26 and 29.13 prescribe sanitary requirements for barber shops and barber 29.14 schools, subject to the approval of the state commissioner of 29.15 health. Any member of the board, or its agents or assistants, 29.16 shall have authority to enter upon and to inspect any barber 29.17 shop or barber school at any time during business hours. A copy 29.18 of the rules adopted by the board shall be furnished by it to 29.19 the owner or manager of each barber shop or barber school and 29.20 such copy shall be posted in a conspicuous place in such barber 29.21 shop or barber school. 29.22 The board shall keep a record of its proceedings relating 29.23 to the issuance, refusal, renewal, suspension, and revocation of 29.24 certificates of registration. This record shall contain the 29.25 name, place of business and residence of each registered barber 29.26 and registered apprentice, and the date and number of the 29.27 certificate of registration. This record shall be open to 29.28 public inspection at all reasonable times. 29.29 Sec. 33. Minnesota Statutes 2002, section 154.25, is 29.30 amended to read: 29.31 154.25 [NOT TO SERVE CERTAIN PERSONS.] 29.32 No person practicing the occupation of a barber in any 29.33 barber shop, barber school, or college in this state shall 29.34 knowingly serve a person afflicted, in a dangerous or infectious 29.35 state of the disease, with erysipelas, eczema, impetigo, 29.36 sycosis, tuberculosis, or any other contagious or infectious 30.1 disease. Any person so afflicted is hereby prohibited from 30.2 being served in any barber shop, barber school, or college in 30.3 this state. Any violation of this section shall be considered a 30.4 misdemeanor as provided for inthis chaptersections 154.01 to 30.5 154.26. 30.6 Sec. 34. Minnesota Statutes 2002, section 155A.01, is 30.7 amended to read: 30.8 155A.01 [POLICY.] 30.9 The legislature finds that the health and safety of the 30.10 people of the state are served by the licensing of the practice 30.11 of cosmetology because of the use of chemicals, apparatus, and 30.12 other appliances requiring special skills and education. 30.13 To this end, the public will best be served by vesting 30.14 these responsibilities in thecommissioner of commerceBoard of 30.15 Barber and Cosmetologist Examiners. 30.16 Sec. 35. Minnesota Statutes 2002, section 155A.02, is 30.17 amended to read: 30.18 155A.02 [PROHIBITION; LIMITATION.] 30.19 It shall be unlawful for any person to engage in 30.20 cosmetology, or to conduct or operate a cosmetology school or 30.21 salon, except ashereinafterprovided in sections 155A.03 to 30.22 155A.16. 30.23 Sec. 36. Minnesota Statutes 2002, section 155A.03, 30.24 subdivision 1, is amended to read: 30.25 Subdivision 1. [TERMS.] For purposes ofthis chapter30.26 sections 155A.03 to 155A.26, and unless the context clearly 30.27 requires otherwise, the words defined in this section have the 30.28 meanings given them. 30.29 Sec. 37. Minnesota Statutes 2002, section 155A.03, is 30.30 amended by adding a subdivision to read: 30.31 Subd. 1a. [BOARD.] "Board" means the Board of Barber and 30.32 Cosmetologist Examiners. 30.33 Sec. 38. Minnesota Statutes 2002, section 155A.03, 30.34 subdivision 2, is amended to read: 30.35 Subd. 2. [COSMETOLOGY.] "Cosmetology" is the practice of 30.36 personal services, for compensation, for the cosmetic care of 31.1 the hair, nails, and skin. These services include cleaning, 31.2 conditioning, shaping, reinforcing, coloring and enhancing the 31.3 body surface in the areas of the head, scalp, face, arms, hands, 31.4 legs, and feet, except where these services are performed by a 31.5licensedbarber underchapter 154sections 154.01 to 154.26. 31.6 Sec. 39. Minnesota Statutes 2002, section 155A.03, is 31.7 amended by adding a subdivision to read: 31.8 Subd. 4a. [LICENSED PRACTICE.] "Licensed practice" means 31.9 the practice of cosmetology in a licensed salon or the practice 31.10 of an esthetician in a licensed physician's office. 31.11 Sec. 40. Minnesota Statutes 2002, section 155A.03, 31.12 subdivision 7, is amended to read: 31.13 Subd. 7. [SALON.] A "salon" is an area, room, or rooms 31.14 employed to offer personal services, as defined in subdivision 2. 31.15 "Salon" does not include the home of a customer but the 31.16commissionerboard may adopt health and sanitation rules 31.17 governing practice in the homes of customers. 31.18 Sec. 41. Minnesota Statutes 2002, section 155A.045, 31.19 subdivision 1, is amended to read: 31.20 Subdivision 1. [SCHEDULE.] The fee schedule for licensees 31.21 is as follows: 31.22 (a) Three-year license fees: 31.23 (1) cosmetologist, manicurist, esthetician,$45$90 for 31.24 each initial license, and$30$60 for each renewal; 31.25 (2) instructor, manager,$60$120 for each initial license, 31.26 and$45$90 for each renewal; 31.27 (3) licensed physician's office, $130 for each initial 31.28 license, and $100 for each renewal; 31.29 (4) salon,$65$130 for each initial license, and 31.30$50$100 for each renewal; and 31.31(4)(5) school,$750$1,500. 31.32 (b) Penalties: 31.33 (1) reinspection fee, variable; and 31.34 (2) manager with lapsed practitioner, $25. 31.35 (c) Administrative fees: 31.36 (1) certificate of identification, $20; and 32.1 (2) school original application, $150. 32.2 (d) All fees established in this subdivision must be paid 32.3 to the executive secretary of the board on or before September 1 32.4 of the year in which they become due. The executive secretary 32.5 of the board shall deposit the fees in the general fund in the 32.6 state treasury, to be disbursed by the executive secretary on 32.7 the order of the chair in payment of expenses lawfully incurred 32.8 by the board. 32.9 Sec. 42. Minnesota Statutes 2002, section 155A.05, is 32.10 amended to read: 32.11 155A.05 [RULES.] 32.12 Thecommissionerboard may develop and adopt rules 32.13 according to chapter 14 that thecommissionerboard considers 32.14 necessary to carry outthis chaptersections 155A.01 to 155A.16. 32.15 Sec. 43. Minnesota Statutes 2002, section 155A.07, 32.16 subdivision 2, is amended to read: 32.17 Subd. 2. [QUALIFICATIONS.] Qualifications for licensing in 32.18 each classification shall be determined by the 32.19commissionerboard and established by rule, and shall include 32.20 educational and experiential prerequisites. The rules shall 32.21 require a demonstrated knowledge of procedures necessary to 32.22 protect the health of the practitioner and the consumer of 32.23 cosmetology services, including but not limited to chemical 32.24 applications. 32.25 Sec. 44. Minnesota Statutes 2002, section 155A.07, 32.26 subdivision 8, is amended to read: 32.27 Subd. 8. [EXEMPTIONS.] Persons licensed to provide 32.28 cosmetology services in other states visiting this state for 32.29 cosmetology demonstrations shall be exempted from the licensing 32.30 provisions ofthis chaptersections 155A.01 to 155A.16 if 32.31 services to consumers are in the physical presence of a licensed 32.32 cosmetologist. 32.33 Sec. 45. Minnesota Statutes 2002, section 155A.07, is 32.34 amended by adding a subdivision to read: 32.35 Subd. 10. [NONRESIDENT LICENSES.] A nonresident 32.36 cosmetologist, manicurist, or esthetician may be licensed in 33.1 Minnesota if the individual has completed cosmetology school in 33.2 a state or country with the same or greater school hour 33.3 requirements, has an active license in that state or country, 33.4 and has passed the Minnesota-specific written operator 33.5 examination for cosmetologist, manicurist, or esthetician. If a 33.6 test is used to verify the qualifications of trained 33.7 cosmetologists, the test should be translated into their native 33.8 language within the limits of available resources. Licenses 33.9 shall not be issued under this subdivision for managers or 33.10 instructors. 33.11 Sec. 46. Minnesota Statutes 2002, section 155A.08, 33.12 subdivision 1, is amended to read: 33.13 Subdivision 1. [LICENSING.] Any person who offers 33.14 cosmetology services for compensation in this state shall be 33.15 licensed as a salon if not employed by another licensed salon or 33.16 as an esthetician in a licensed physician's area. 33.17 Sec. 47. Minnesota Statutes 2002, section 155A.08, 33.18 subdivision 2, is amended to read: 33.19 Subd. 2. [REQUIREMENTS.] (a) The conditions and process by 33.20 which a salon is licensed shall be established by the 33.21commissionerboard by rule. In addition to those requirements, 33.22 no license shall be issued unless thecommissionerboard first 33.23 determines thatparagraphs (a) to (e)the conditions in clauses 33.24 (1) to (5) have been satisfied: 33.25(a)(1) compliance with all local and state laws, 33.26 particularly relating to matters of sanitation, health, and 33.27 safety; 33.28(b)(2) the employment of a manager, as defined in section 33.29 155A.03, subdivision 6; 33.30(c)(3) inspection and licensing prior to the commencing of 33.31 business; 33.32(d)(4) if applicable, evidence of compliance with section 33.33 176.182; and 33.34(e)(5) evidence of continued professional liability 33.35 insurance coverage of at least $25,000 for each claim and 33.36 $50,000 total coverage for each policy year for each operator. 34.1 (b) A licensed esthetician or manicurist who complies with 34.2 the health, safety, sanitation, inspection, and insurance rules 34.3 promulgated by thecommissionerboard to operate a salon solely 34.4 for the performance of those personal services defined in 34.5 section 155A.03, subdivision 4, in the case of an esthetician, 34.6 or subdivision 5, in the case of a manicurist. 34.7 Sec. 48. Minnesota Statutes 2002, section 155A.08, 34.8 subdivision 3, is amended to read: 34.9 Subd. 3. [HEALTH AND SANITARY STANDARDS.] Minimum health 34.10 and sanitary standards for the operation of a salon shall be 34.11 established by rule. A salon shall not be located in a room 34.12 used for residential purposes. If a salon is in the residence 34.13 of a person practicing cosmetology, the rooms used for the 34.14 practice of cosmetology shall be completely partitioned off from 34.15 the living quarters. The salon may be inspected as often as the 34.16commissionerboard considers necessary to affirm compliance. 34.17 Sec. 49. Minnesota Statutes 2002, section 155A.09, is 34.18 amended to read: 34.19 155A.09 [SCHOOLS.] 34.20 Subdivision 1. [LICENSING.] Any person who establishes or 34.21 conducts a school in this state shall be licensed. 34.22 Subd. 2. [STANDARDS.] Thecommissionerboard shall by rule 34.23 establish minimum standards of course content and length 34.24 specific to the educational preparation prerequisite to testing 34.25 and licensing as cosmetologist, esthetician, and manicurist. 34.26 Subd. 3. [APPLICATIONS.] Application for a license shall 34.27 be prepared on forms furnished by thecommissionerboard and 34.28 shall contain the following and such other information as may be 34.29 required: 34.30(a)(1) The name of the school, together with ownership and 34.31 controlling officers, members, and managing employeesand34.32commissioner; 34.33(b)(2) The specific fields of instruction which will be 34.34 offered and reconciliation of the course content and length to 34.35 meet the minimum standards, as prescribed in subdivision 2; 34.36(c)(3) The place or places where instruction will be 35.1 given; 35.2(d)(4) A listing of the equipment available for 35.3 instruction in each course offered; 35.4(e)(5) The maximum enrollment to be accommodated; 35.5(f)(6) A listing of instructors, all of whom shall be 35.6 licensed as provided in section 155A.07, subdivision 2, except 35.7 that any school may use occasional instructors or lecturers who 35.8 would add to the general or specialized knowledge of the 35.9 students but who need not be licensed; 35.10(g)(7) A current balance sheet, income statement or 35.11 documentation to show sufficient financial worth and 35.12 responsibility to properly conduct a school and to assure 35.13 financial resources ample to meet the school's financial 35.14 obligations; 35.15(h)(8) Other financial guarantees which would assure 35.16 protection of the public as determined by rule; and 35.17(i)(9) A copy of all written material which the school 35.18 uses to solicit prospective students, including but not limited 35.19 to a tuition and fee schedule, and all catalogues, brochures and 35.20 other recruitment advertisements. Each school shall annually, 35.21 on a date determined by thecommissionerboard, file with 35.22 thedirectorboard any new or amended materials which it has 35.23 distributed during the past year. 35.24 Subd. 4. [VERIFICATION OF APPLICATION.] Each application 35.25 shall be signed and certified to under oath by the proprietor if 35.26 the applicant is a proprietorship, by the managing partner if 35.27 the applicant is a partnership, or by the authorized officers of 35.28 the applicant if the applicant is a corporation, association, 35.29 company, firm, society or trust. 35.30 Subd. 5. [CONDITIONS PRECEDENT TO ISSUANCE.]NoA license 35.31shallmust not be issued unless thecommissionerboard first 35.32 determines:35.33(a)that the applicant has met the requirements in clauses 35.34 (1) to (8). 35.35 (1) The applicanthasmust have a sound financial condition 35.36 with sufficient resources available to meet the school's 36.1 financial obligations; to refund all tuition and other charges, 36.2 within a reasonable period of time, in the event of dissolution 36.3 of the school or in the event of any justifiable claims for 36.4 refund against the school; to provide adequate service to its 36.5 students and prospective students; andfor theto maintain 36.6 proper use and support of the schoolto be maintained;. 36.7(b) That(2) The applicanthasmust have satisfactory 36.8 training facilities with sufficient tools and equipment and the 36.9 necessary number of work stations to adequately train the 36.10 students currently enrolled, and those proposed to be enrolled;. 36.11(c) That(3) The applicantemploysmust employ a sufficient 36.12 number of qualified instructors trained by experience and 36.13 education to give the training contemplated;. 36.14(d) That(4) The premises and conditions under which the 36.15 students work and studyaremust be sanitary, healthful, and 36.16 safe according to modern standards;. 36.17(e) That(5) Each occupational course or program of 36.18 instruction or studyshallmust be of such quality and content 36.19 as to provide education and training which will adequately 36.20 prepare enrolled students for testing, licensing, and entry 36.21 level positions as a cosmetologist, esthetician, or manicurist;. 36.22(f) Evidence of(6) Theschool'sschool must have coverage 36.23 by professional liability insurance of at least $25,000 per 36.24 incident and an accumulation of $150,000 for each premium year;. 36.25(g)(7) The applicant shall provide evidence of the 36.26 school's compliance with section 176.182; and. 36.27(h)(8) The applicant, except the state and its political 36.28 subdivisions as described in section 471.617, subdivision 1, 36.29 shall file with thecommissionerboard a continuous corporate 36.30 surety bond in the amount of $10,000, conditioned upon the 36.31 faithful performance of all contracts and agreements with 36.32 students made by the applicant. The bond shall run to the state 36.33 of Minnesota and to any person who may have a cause of action 36.34 against the applicant arising at any time after the bond is 36.35 filed and before it is canceled for breach of any contract or 36.36 agreement made by the applicant with any student. The aggregate 37.1 liability of the surety for all breaches of the conditions of 37.2 the bond shall not exceed $10,000. The surety of the bond may 37.3 cancel it upon giving 60 days' notice in writing to 37.4 thecommissionerboard and shall be relieved of liability for 37.5 any breach of condition occurring after the effective date of 37.6 cancellation. 37.7 Subd. 6. [FEES; RENEWALS.] (a) Applications for initial 37.8 license underthis chaptersections 155A.01 to 155A.16 shall be 37.9 accompanied by a nonrefundable application fee set forth in 37.10 section 155A.045. 37.11 (b) License duration shall be three years. Each renewal 37.12 application shall be accompanied by a nonrefundable renewal fee 37.13 set forth in section 155A.045. 37.14 (c) Application for renewal of license shall be made as 37.15 provided in rules adopted by thecommissionerboard and on forms 37.16 supplied by thecommissionerboard. 37.17 Subd. 7. [INSPECTIONS.] All schools may be inspected as 37.18 often as thecommissionerboard considers necessary to affirm 37.19 compliance. Thecommissionerboard shall have the authority to 37.20 assess the cost of the inspection to the school. 37.21 Subd. 8. [LIST OF LICENSED SCHOOLS; AVAILABILITY.] The 37.22commissionerboard shall maintain and make available to the 37.23 public a list of licensed schools. 37.24 Subd. 9. [SEPARATION OF SCHOOL AND PROFESSIONAL 37.25 DEPARTMENTS.] A school shall display in the entrance reception 37.26 room of its student section a sign prominently and conspicuously 37.27 indicating that all work therein is done exclusively by 37.28 students. Professional departments of a school shall be run as 37.29 entirely separate and distinct businesses and shall have 37.30 separate entrances. 37.31 Nothing contained inthis chaptersections 155A.01 to 37.32 155A.16 shall prevent a school from charging for student work 37.33 done in the school to cover the cost of materials used and 37.34 expenses incurred in and for the operation of the school. All 37.35 of the student work shall be prominently and conspicuously 37.36 advertised and held forth as being student work and not 38.1 otherwise. 38.2 Subd. 10. [DISCRIMINATION PROHIBITED.] No school, duly 38.3 approved underthis chaptersections 155A.01 to 155A.16, shall 38.4 refuse to teach any student, otherwise qualified, on account of 38.5 race, sex, creed, color, citizenship, national origin, or sexual 38.6 preference. 38.7 Sec. 50. Minnesota Statutes 2002, section 155A.095, is 38.8 amended to read: 38.9 155A.095 [INSPECTIONS.] 38.10 Thecommissionerboard is responsible for inspecting salons 38.11 and schools licensed pursuant tothis chaptersections 155A.01 38.12 to 155A.16 to assure compliance with the requirements ofthis38.13chaptersections 155A.01 to 155A.16. Thecommissionerboard 38.14 shall directdepartmentboard resources first to the inspection 38.15 of those licensees who fail to meet the requirements of law, 38.16 have indicated that they present a greater risk to the public, 38.17 or have otherwise, in the opinion of thecommissionerboard, 38.18 demonstrated that they require a greater degree of regulatory 38.19 attention. 38.20 Sec. 51. Minnesota Statutes 2002, section 155A.10, is 38.21 amended to read: 38.22 155A.10 [DISPLAY OF LICENSE.] 38.23 (a) Every holder of a license granted by thecommissioner,38.24 board shall display it in a conspicuous place in the place of 38.25 business. 38.26 (b) Notwithstanding the provisions of paragraph (a), 38.27 nothing contained inthis chaptersections 155A.01 to 155A.16 38.28 shall be construed to prohibit a person licensed to provide 38.29 cosmetology services from engaging in any practices defined 38.30 inthis chaptersections 155A.01 to 155A.16 in the homes of 38.31 customers or patrons, under the sanitary and health rules 38.32 promulgated by thecommissionerboard. 38.33 Sec. 52. Minnesota Statutes 2002, section 155A.135, is 38.34 amended to read: 38.35 155A.135 [ENFORCEMENT.] 38.36 The provisions of section 45.027 apply to the 39.1 administration ofthis chaptersections 155A.01 to 155A.16. 39.2 Sec. 53. Minnesota Statutes 2002, section 155A.14, is 39.3 amended to read: 39.4 155A.14 [SERVICES EXCEPTED; EMERGENCY.] 39.5 Nothing inthis chaptersections 155A.01 to 155A.16 39.6 prohibits services in cases of emergency where compensation or 39.7 other reward is not received, nor in domestic service, nor in 39.8 the practice of medicine, surgery, dentistry, podiatry, 39.9 osteopathy, chiropractic, or barbering. This section shall not 39.10 be construed to authorize any of the persons so exempted to wave 39.11 the hair, or to color, tint, or bleach the hair, in any manner. 39.12 Sec. 54. Minnesota Statutes 2002, section 155A.15, is 39.13 amended to read: 39.14 155A.15 [APPOINTMENT OF AGENT FOR SERVICE OF PROCESS.] 39.15 Any person, firm, partnership, or corporation, not a 39.16 resident of Minnesota, who engages in Minnesota in the practices 39.17 regulated inthis chaptersections 155A.01 to 155A.16 shall file 39.18 with thecommissionerboard the name and address of a duly 39.19 authorized agent for service of legal process, which agent for 39.20 service shall be a resident of the state of Minnesota. 39.21 Sec. 55. Minnesota Statutes 2002, section 155A.16, is 39.22 amended to read: 39.23 155A.16 [VIOLATIONS; PENALTIES.] 39.24 Any person who violates any of the provisions ofthis39.25chaptersections 155A.01 to 155A.16 is guilty of a misdemeanor 39.26 and upon conviction may be sentenced to imprisonment for not 39.27 more than 90 days or fined not more than $700, or both, per 39.28 violation. 39.29 Sec. 56. Minnesota Statutes 2002, section 177.23, 39.30 subdivision 7, is amended to read: 39.31 Subd. 7. [EMPLOYEE.] "Employee" means any individual 39.32 employed by an employer but does not include: 39.33 (1) two or fewer specified individuals employed at any 39.34 given time in agriculture on a farming unit or operation who are 39.35 paid a salary; 39.36 (2) any individual employed in agriculture on a farming 40.1 unit or operation who is paid a salary greater than the 40.2 individual would be paid if the individual worked 48 hours at 40.3 the state minimum wage plus 17 hours at 1-1/2 times the state 40.4 minimum wage per week; 40.5 (3) an individual under 18 who is employed in agriculture 40.6 on a farm to perform services other than corn detasseling or 40.7 hand field work when one or both of that minor hand field 40.8 worker's parents or physical custodians are also hand field 40.9 workers; 40.10 (4) for purposes of section 177.24, an individual under 18 40.11 who is employed as a corn detasseler; 40.12 (5) any staff member employed on a seasonal basis by an 40.13 organization for work in an organized resident or day camp 40.14 operating under a permit issued under section 144.72; 40.15 (6) any individual employed in a bona fide executive, 40.16 administrative, or professional capacity, or a salesperson who 40.17 conducts no more than 20 percent of sales on the premises of the 40.18 employer; 40.19 (7) any individual who renders service gratuitously for a 40.20 nonprofit organization; 40.21 (8) any individual who serves as an elected official for a 40.22 political subdivision or who serves on any governmental board, 40.23 commission, committee or other similar body, or who renders 40.24 service gratuitously for a political subdivision; 40.25 (9) any individual employed by a political subdivision to 40.26 provide police or fire protection services or employed by an 40.27 entity whose principal purpose is to provide police or fire 40.28 protection services to a political subdivision; 40.29 (10) any individual employed by a political subdivision who 40.30 is ineligible for membership in the Public Employees Retirement 40.31 Association under section 353.01, subdivision 2b, clause (1), 40.32 (2), (4), or (9); 40.33 (11) any driver employed by an employer engaged in the 40.34 business of operating taxicabs; 40.35 (12) any individual engaged in babysitting as a sole 40.36 practitioner; 41.1 (13) for the purpose of section 177.25, any individual 41.2 employed on a seasonal basis in a carnival, circus, fair, or ski 41.3 facility; 41.4 (14) any individual under 18 working less than 20 hours per 41.5 workweek for a municipality as part of a recreational program; 41.6 (15) any individual employed by the state as a natural 41.7 resource manager 1, 2, or 3 (conservation officer); 41.8 (16) any individual in a position for which the United 41.9 States Department of Transportation has power to establish 41.10 qualifications and maximum hours of service under United States 41.11 Code, title 49, section30431502; 41.12 (17) any individual employed as a seafarer. The term 41.13 "seafarer" means a master of a vessel or any person subject to 41.14 the authority, direction, and control of the master who is 41.15 exempt from federal overtime standards under United States Code, 41.16 title 29, section 213(b)(6), including but not limited to 41.17 pilots, sailors, engineers, radio operators, firefighters, 41.18 security guards, pursers, surgeons, cooks, and stewards; 41.19 (18) any individual employed by a county in a single-family 41.20 residence owned by a county home school as authorized under 41.21 section 260B.060 if the residence is an extension facility of 41.22 that county home school, and if the individual as part of the 41.23 employment duties resides at the residence for the purpose of 41.24 supervising children as defined by section 260C.007, subdivision 41.25 4; or 41.26 (19) nuns, monks, priests, lay brothers, lay sisters, 41.27 ministers, deacons, and other members of religious orders who 41.28 serve pursuant to their religious obligations in schools, 41.29 hospitals, and other nonprofit institutions operated by the 41.30 church or religious order. 41.31 Sec. 57. Minnesota Statutes 2002, section 182.653, 41.32 subdivision 9, is amended to read: 41.33 Subd. 9. [STANDARD INDUSTRIAL CLASSIFICATION LIST.] The 41.34 commissioner shall adopt, in accordance with section 182.655, a 41.35 rule specifying a list of either standard industrial 41.36 classifications of employers or North American Industry 42.1 Classifications of employers who must comply with subdivision 42.2 8. The commissioner shall demonstrate the need to include each 42.3 industrial classification on the basis of the safety record or 42.4 workers' compensation record of that industry segment. An 42.5 employer must comply with subdivision 8 six months following the 42.6 date the standard industrial classification or North American 42.7 Industry Classification that applies to the employee is placed 42.8 on the list. An employer having less than 51 employees must 42.9 comply with subdivision 8 six months following the date the 42.10 standard industrial classification or North American Industry 42.11 Classification that applies to the employee is placed on the 42.12 list or by July 1, 1993, whichever is later. The list shall be 42.13 updated every two years. 42.14 Sec. 58. Minnesota Statutes 2002, section 214.01, 42.15 subdivision 3, is amended to read: 42.16 Subd. 3. [NON-HEALTH-RELATED LICENSING BOARD.] 42.17 "Non-health-related licensing board" means the Board of Teaching 42.18 established pursuant to section 122A.07, the Board of Barber and 42.19 Cosmetologist Examiners established pursuant to section 154.22, 42.20 the Board of Assessors established pursuant to section 270.41, 42.21 the Board of Architecture, Engineering, Land Surveying, 42.22 Landscape Architecture, Geoscience, and Interior Design 42.23 established pursuant to section 326.04, the Board of Electricity 42.24 established pursuant to section 326.241, the Private Detective 42.25 and Protective Agent Licensing Board established pursuant to 42.26 section 326.33, the Board of Accountancy established pursuant to 42.27 section 326A.02, and the Peace Officer Standards and Training 42.28 Board established pursuant to section 626.841. 42.29 Sec. 59. Minnesota Statutes 2003 Supplement, section 42.30 214.04, subdivision 3, is amended to read: 42.31 Subd. 3. [OFFICERS; STAFF.] The executive director of each 42.32 health-related board and the executive secretary of each 42.33 non-health-related board shall be the chief administrative 42.34 officer for the board but shall not be a member of the board. 42.35 The executive director or executive secretary shall maintain the 42.36 records of the board, account for all fees received by it, 43.1 supervise and direct employees servicing the board, and perform 43.2 other services as directed by the board. The executive 43.3 directors, executive secretaries, and other employees of the 43.4 following boards shall be hired by the board, and the executive 43.5 directors or executive secretaries shall be in the unclassified 43.6 civil service, except as provided in this subdivision: 43.7 (1) Dentistry; 43.8 (2) Medical Practice; 43.9 (3) Nursing; 43.10 (4) Pharmacy; 43.11 (5) Accountancy; 43.12 (6) Architecture, Engineering, Land Surveying, Landscape 43.13 Architecture, Geoscience, and Interior Design; 43.14 (7) Barber and Cosmetologist Examiners; 43.15 (8)Cosmetology;43.16(9)Electricity; 43.17(10)(9) Teaching; 43.18(11)(10) Peace Officer Standards and Training; 43.19(12)(11) Social Work; 43.20(13)(12) Marriage and Family Therapy; 43.21(14)(13) Dietetics and Nutrition Practice; and 43.22(15)(14) Licensed Professional Counseling. 43.23 The executive directors or executive secretaries serving 43.24 the boards are hired by those boards and are in the unclassified 43.25 civil service, except for part-time executive directors or 43.26 executive secretaries, who are not required to be in the 43.27 unclassified service. Boards not requiring full-time executive 43.28 directors or executive secretaries may employ them on a 43.29 part-time basis. To the extent practicable, the sharing of 43.30 part-time executive directors or executive secretaries by boards 43.31 being serviced by the same department is encouraged. Persons 43.32 providing services to those boards not listed in this 43.33 subdivision, except executive directors or executive secretaries 43.34 of the boards and employees of the attorney general, are 43.35 classified civil service employees of the department servicing 43.36 the board. To the extent practicable, the commissioner shall 44.1 ensure that staff services are shared by the boards being 44.2 serviced by the department. If necessary, a board may hire 44.3 part-time, temporary employees to administer and grade 44.4 examinations. 44.5 Sec. 60. Minnesota Statutes 2002, section 239.011, is 44.6 amended by adding a subdivision to read: 44.7 Subd. 3. [LIQUEFIED PETROLEUM GAS.] (a) The annual testing 44.8 and inspection requirements for liquefied petroleum gas 44.9 measuring equipment, as set forth in section 239.10, subdivision 44.10 3, shall be deemed to have been met by an owner or seller who 44.11 has testing and inspection performed annually in compliance with 44.12 this subdivision. The testing and inspection must meet the 44.13 following requirements: 44.14 (1) all equipment subject to inspection and testing 44.15 requirements must be inspected and tested annually; 44.16 (2) inspection testing must only be done by persons who 44.17 have demonstrated to the director that they are competent to 44.18 inspect and test liquefied petroleum gas measuring equipment. 44.19 Competency may be established by passage of a competency 44.20 examination, which the director must establish, or by other 44.21 recognized credentialing processes approved by the director. 44.22 Persons taking tests established by the director may be charged 44.23 for the costs of the testing procedure; 44.24 (3) testing and inspection procedures must comply with 44.25 inspection protocol, which must be established by the director. 44.26 The director may use existing protocol or recognize any other 44.27 scientifically established and recognized protocol; 44.28 (4) persons who inspect or test liquefied petroleum gas 44.29 measuring equipment must use testing equipment that meets any 44.30 specifications issued by the director; 44.31 (5) equipment used for testing and inspection must be 44.32 submitted to the director for calibration by the division 44.33 whenever ordered by the director; and 44.34 (6) all inspectors, equipment, and inspection protocol must 44.35 comply with all relevant requirements of Minnesota Statutes, 44.36 department rules, and written procedures issued by the director. 45.1 (b) Owners or sellers of liquefied petroleum gas may 45.2 perform their own tests and inspections or have employees do so 45.3 as long as they meet the requirements of this subdivision. 45.4 Persons performing inspection and testing may also perform 45.5 repairs and maintenance on inspected equipment if authorized by 45.6 the owner. However, they shall not be allowed to take equipment 45.7 out of service. 45.8 (c) Inspectors shall tag meters that fail the testing 45.9 process as "out of tolerance." For equipment that has passed 45.10 inspection, the inspector shall provide to the owner or seller a 45.11 seal indicating that the equipment has been inspected and the 45.12 date of the inspection. Whenever an inspector issues a seal to 45.13 an owner or seller, the inspector shall submit to the director 45.14 written verification that the equipment was tested by procedures 45.15 and testing equipment meeting the requirements of this 45.16 subdivision. The director shall issue seals (stickers) to 45.17 inspectors for the purposes of this subdivision. The issuance 45.18 of a seal to an owner or seller establishes only that the 45.19 equipment was inspected by a certified inspector using qualified 45.20 equipment and procedures, and that the equipment was found to be 45.21 within allowable tolerance on the date tested. 45.22 [EFFECTIVE DATE.] This section is effective the day 45.23 following final enactment. 45.24 Sec. 61. Minnesota Statutes 2002, section 239.101, 45.25 subdivision 3, is amended to read: 45.26 Subd. 3. [PETROLEUM INSPECTION FEE.] (a) An inspection fee 45.27 is imposed (1) on petroleum products when received by the first 45.28 licensed distributor, and (2) on petroleum products received and 45.29 held for sale or use by any person when the petroleum products 45.30 have not previously been received by a licensed distributor. 45.31 The petroleum inspection fee is85 cents$1 for every 1,000 45.32 gallons received. The commissioner of revenue shall collect the 45.33 fee. The revenue from the fee must first be applied to cover 45.34 the amounts appropriated. Fifteen cents of the inspection fee 45.35 must be deposited in an account in the special revenue fund and 45.36 is appropriated to the commissioner of commerce for the cost of 46.1 petroleum product quality inspection expenses,and for the 46.2 inspection and testing of petroleum product measuring equipment,46.3and for petroleum supply monitoring under chapter 216C. The 46.4 remainder of the fee must be deposited in the general fund. 46.5 (b) The commissioner of revenue shall credit a person for 46.6 inspection fees previously paid in error or for any material 46.7 exported or sold for export from the state upon filing of a 46.8 report as prescribed by the commissioner of revenue. 46.9 (c) The commissioner of revenue may collect the inspection 46.10 fee along with any taxes due under chapter 296A. 46.11 Sec. 62. Minnesota Statutes 2002, section 326.975, 46.12 subdivision 1, is amended to read: 46.13 Subdivision 1. [GENERALLY.] (a) In addition to any other 46.14 fees, each applicant for a license under sections 326.83 to 46.15 326.98 shall pay a fee to the contractor's recovery fund. The 46.16 contractor's recovery fund is created in the state treasury and 46.17 must be administered by the commissioner in the manner and 46.18 subject to all the requirements and limitations provided by 46.19 section 82.34 with the following exceptions: 46.20 (1) each licensee who renews a license shall pay in 46.21 addition to the appropriate renewal fee an additional fee which 46.22 shall be credited to the contractor's recovery fund. The amount 46.23 of the fee shall be based on the licensee's gross annual 46.24 receipts for the licensee's most recent fiscal year preceding 46.25 the renewal, on the following scale: 46.26 Fee Gross Receipts 46.27 $100 under $1,000,000 46.28 $150 $1,000,000 to $5,000,000 46.29 $200 over $5,000,000 46.30 Any person who receives a new license shall pay a fee based on 46.31 the same scale; 46.32 (2) the sole purpose of this fund is to: 46.33 (i) compensate any aggrieved owner or lessee of residential 46.34 property located within this state who obtains a final judgment 46.35 in any court of competent jurisdiction against a licensee 46.36 licensed under section 326.84, on grounds of fraudulent, 47.1 deceptive, or dishonest practices, conversion of funds, or 47.2 failure of performance arising directly out of any transaction 47.3 when the judgment debtor was licensed and performed any of the 47.4 activities enumerated under section 326.83, subdivision 19, on 47.5 the owner's residential property or on residential property 47.6 rented by the lessee, or on new residential construction which 47.7 was never occupied prior to purchase by the owner, or which was 47.8 occupied by the licensee for less than one year prior to 47.9 purchase by the owner, and which cause of action arose on or 47.10 after April 1, 1994; and 47.11 (ii) reimburse the Department of Commerce for all legal and 47.12 administrative expenses, including staffing costs, incurred in 47.13 administering the fund; 47.14 (3) nothing may obligate the fund for more than $50,000 per 47.15 claimant, nor more than $75,000 per licensee; and 47.16 (4) nothing may obligate the fund for claims based on a 47.17 cause of action that arose before the licensee paid the recovery 47.18 fund fee set in clause (1), or as provided in section 326.945, 47.19 subdivision 3. 47.20 (b) Should the commissioner pay from the contractor's 47.21 recovery fund any amount in settlement of a claim or toward 47.22 satisfaction of a judgment against a licensee, the license shall 47.23 be automatically suspended upon the effective date of an order 47.24 by the court authorizing payment from the fund. No licensee 47.25 shall be granted reinstatement until the licensee has repaid in 47.26 full, plus interest at the rate of 12 percent a year, twice the 47.27 amount paid from the fund on the licensee's account, and has 47.28 obtained a surety bond issued by an insurer authorized to 47.29 transact business in this state in the amount of at least 47.30 $40,000. 47.31 Sec. 63. Minnesota Statutes 2002, section 327C.01, is 47.32 amended by adding a subdivision to read: 47.33 Subd. 13. [MEASURING DEVICE.] "Measuring device" means any 47.34 water submetering device used to measure and record water usage 47.35 of each resident to provide a separate billing amount and actual 47.36 water usage data on either a monthly or quarterly basis to the 48.1 resident. At the time of installation, the measuring device 48.2 must be certified as being in compliance with one of the 48.3 following national standards: American Water Works Association 48.4 (AWWA), American Society of Mechanical Engineers (ASME), or 48.5 American National Standards Institute (ANSI). The measuring 48.6 devices must be installed in accordance with the manufacturer's 48.7 instructions or the Minnesota Plumbing Code and equipped with a 48.8 manual or digital display that is readily accessible to the 48.9 resident for inspection. 48.10 Sec. 64. Minnesota Statutes 2002, section 327C.02, 48.11 subdivision 2, is amended to read: 48.12 Subd. 2. [MODIFICATION OF RULES.] The park owner must give 48.13 the resident at least 60 days' notice in writing of any rule 48.14 change. A rule adopted or amended after the resident initially 48.15 enters into a rental agreement may be enforced against that 48.16 resident only if the new or amended rule is reasonable and is 48.17 not a substantial modification of the original agreement. Any 48.18 security deposit increase is a substantial modification of the 48.19 rental agreement. A reasonable rent increase made in compliance 48.20 with section 327C.06, or the implementation and collection of 48.21 water and/or sewer charges under section 327C.04 as a rent 48.22 increase or reduction under section 327C.06, is not a 48.23 substantial modification of the rental agreement and is not 48.24 considered to be a rule for purposes of section 327C.01, 48.25 subdivision 8. A rule change necessitated by government action 48.26 is not a substantial modification of the rental agreement. A 48.27 rule change requiring all residents to maintain their homes, 48.28 sheds and other appurtenances in good repair and safe condition 48.29 shall not be deemed a substantial modification of a rental 48.30 agreement. If a part of a resident's home, shed or other 48.31 appurtenance becomes so dilapidated that repair is impractical 48.32 and total replacement is necessary, the park owner may require 48.33 the resident to make the replacement in conformity with a 48.34 generally applicable rule adopted after the resident initially 48.35 entered into a rental agreement with the park owner. 48.36 In any action in which a rule change is alleged to be a 49.1 substantial modification of the rental agreement, a court may 49.2 consider the following factors in limitation of the criteria set 49.3 forth in section 327C.01, subdivision 11: 49.4 (a) any significant changes in circumstances which have 49.5 occurred since the original rule was adopted and which 49.6 necessitate the rule change; and 49.7 (b) any compensating benefits which the rule change will 49.8 produce for the residents. 49.9 Sec. 65. Minnesota Statutes 2002, section 327C.04, is 49.10 amended by adding a subdivision to read: 49.11 Subd. 5. [WATER AND SEWER CHARGES.] If a park owner 49.12 chooses to bill separately for water or sewer usage, a park 49.13 owner must install measuring devices which accurately meter each 49.14 household's use of water and the park owner shall bill the 49.15 residents based on each household's metered use of water and 49.16 sewer usage. The park owner may not directly bill the residents 49.17 for the cost and installation of the measuring devices. Each 49.18 billing statement shall contain the actual usage amount for the 49.19 billing period and the rate charged to the resident. If the 49.20 water and sewer services are provided by a third party, the park 49.21 owner shall consider only the actual amount billed by the third 49.22 party and shall not consider administrative, capital, or other 49.23 expenses. If the water or sewer service is provided by means of 49.24 a private well or private sewer or septic system, the park owner 49.25 may bill the residents at the rates permitted for utility 49.26 charges under subdivision 3. Prior to or with the initial bill 49.27 for metered usage, the park owner must either: 49.28 (1) reduce the resident's monthly rent in an amount equal 49.29 to the average monthly amount billed over the previous 12 months 49.30 by the current provider of the services divided by the number of 49.31 licensed home sites; or 49.32 (2) in the case of a private well or a private sewer or 49.33 private septic system, the rent reduction shall be calculated by 49.34 applying the prevailing municipal water or sewer rates to the 49.35 previous 12 months of metering as required by the Department of 49.36 Natural Resources reporting divided by 12 months and further 50.1 divided by the number of licensed home sites. 50.2 Sec. 66. [446A.083] [METHAMPHETAMINE LABORATORY CLEANUP 50.3 REVOLVING FUND.] 50.4 Subdivision 1. [DEFINITIONS.] As used in this section: 50.5 (1) "clandestine lab site" means any structure or 50.6 conveyance or outdoor location occupied or affected by 50.7 conditions or chemicals, typically associated with a clandestine 50.8 drug lab operation; 50.9 (2) "property" includes buildings and other structures and 50.10 motor vehicles as defined in section 609.487, subdivision 2a. 50.11 Property also includes real property whether publicly or 50.12 privately owned and public waters and rights-of-way; and 50.13 (3) "remediate" or "remediation" means proper cleanup, 50.14 treatment, or containment of hazardous substances or 50.15 methamphetamine at or in a clandestine lab site, and may include 50.16 demolition or disposal of structures or other property when an 50.17 assessment so indicates. 50.18 Subd. 2. [FUND ESTABLISHED.] The authority shall establish 50.19 a methamphetamine laboratory cleanup revolving fund to provide 50.20 loans to counties and cities to remediate clandestine lab 50.21 sites. The fund must be credited with repayments. 50.22 Subd. 3. [APPLICATIONS.] Applications by a county or city 50.23 for a loan from the fund must be made to the authority on the 50.24 forms prescribed by the authority. The application must 50.25 include, but is not limited to: 50.26 (1) the amount of the loan requested and the proposed use 50.27 of the loan proceeds; 50.28 (2) the source of revenues to repay the loan; and 50.29 (3) certification by the county or city that it meets the 50.30 loan eligibility requirements of subdivision 4. 50.31 Subd. 4. [LOAN ELIGIBILITY.] A county or city is eligible 50.32 for a loan under this section, if the county or city: 50.33 (1) identifies a site or sites designated by a local public 50.34 health department or law enforcement as a clandestine lab site; 50.35 (2) has required the site's property owner to remediate the 50.36 site at cost under chapter 145A or a local public health 51.1 nuisance ordinance that addresses clandestine lab remediation; 51.2 (3) certifies that the property owner cannot pay for the 51.3 remediation immediately; 51.4 (4) certifies that the property owner has not properly 51.5 remediated the site; and 51.6 (5) issues a revenue bond payable to the authority to 51.7 secure the loan. 51.8 Subd. 5. [USE OF LOAN PROCEEDS; REIMBURSEMENT BY PROPERTY 51.9 OWNER.] (a) A loan recipient shall use the loan to remediate the 51.10 clandestine lab site or, if this has already been done, to 51.11 reimburse the applicable county or city fund for costs paid by 51.12 the recipient to remediate the clandestine lab site. 51.13 (b) A loan recipient shall seek reimbursement from the 51.14 owner of the property containing the clandestine lab site for 51.15 the costs of the remediation. In addition to other lawful means 51.16 of seeking reimbursement, the loan recipient may recover its 51.17 costs through a property tax assessment by following the 51.18 procedures specified in section 145A.08, subdivision 2, 51.19 paragraph (c). 51.20 Subd. 6. [AWARD AND DISBURSEMENT OF FUNDS.] The authority 51.21 shall award loans to recipients on a first-come, first-served 51.22 basis, provided that the recipient is able to comply with the 51.23 terms and conditions of the authority loan, which must be in 51.24 conformance with this section. The authority shall make a 51.25 single disbursement of the loan upon receipt of a payment 51.26 request that includes a list of remediation expenses and 51.27 evidence that a second-party sampling was undertaken to ensure 51.28 that the remediation work was successful or a guarantee that 51.29 such a sampling will be undertaken. 51.30 Subd. 7. [LOAN CONDITIONS AND TERMS.] (a) When making 51.31 loans from the revolving fund, the authority shall comply with 51.32 the criteria in paragraphs (b) to (f). 51.33 (b) Loans must be made at a two percent per annum interest 51.34 rate for terms not to exceed ten years unless the recipient 51.35 requests a 20-year term due to financial hardship. 51.36 (c) The annual principal and interest payments must begin 52.1 no later than one year after completion of the clean up. Loans 52.2 must be amortized no later than 20 years after completion of the 52.3 clean up. 52.4 (d) A loan recipient must identify and establish a source 52.5 of revenue for repayment of the loan and must undertake whatever 52.6 steps are necessary to collect payments within one year of 52.7 receipt of funds from the authority. 52.8 (e) The fund must be credited with all payments of 52.9 principal and interest on all loans, except the costs as 52.10 permitted under section 446A.04, subdivision 5, paragraph (a). 52.11 (f) Loans must be made only to recipients with clandestine 52.12 lab ordinances that address remediation. 52.13 Subd. 8. [AUTHORITY TO INCUR DEBT.] Counties and cities 52.14 may incur debt under this section by resolution of the board or 52.15 council authorizing issuance of a revenue bond to the authority. 52.16 Sec. 67. Minnesota Statutes 2002, section 461.12, 52.17 subdivision 2, is amended to read: 52.18 Subd. 2. [ADMINISTRATIVE PENALTIES; LICENSEES.] (a) If a 52.19 licensee or employee of a licensee sells tobacco to a person 52.20 under the age of 18 years, or violates any other provision of 52.21 this chapter, the licensee shall be charged an administrative 52.22 penalty of at least $75 but no more than $500. An 52.23 administrative penalty of at least $200 but no more than $1,000 52.24 must be imposed for a second violation at the same location 52.25 within 24 months after the initial violation. An administrative 52.26 penalty of at least $250 but no more than $2,500 and up to a 52.27 three-day license suspension may be imposed for a third 52.28 violation at the same location within 24 months after the 52.29 initial violation. For athirdsubsequent violation at the same 52.30 location within 24 months after the initial violation, both of 52.31 the following may be imposed: 52.32 (1) an administrative penalty of at least $250must be52.33imposed, andbut no more than $5,000; 52.34 (2) the licensee's authority to sell tobacco at that 52.35 locationmustmay be suspended fornot less thanup to a maximum 52.36 of seven days. 53.1 (b) The licensing authority may suspend or revoke a tobacco 53.2 license if the licensee fails to act on any of the following: 53.3 (1) imposition of disciplinary sanctions of an employee 53.4 with multiple noncompliant sales to a minor; 53.5 (2) failure to conduct a minimum of one-half hour of 53.6 training annually, documented by passing a written test on state 53.7 laws concerning tobacco sales to minors; 53.8 (3) failure to adopt and enforce a written employee policy, 53.9 reviewed by the licensing authority, to prevent the sale of 53.10 tobacco to minors; or 53.11 (4) failure of a third compliance check while not 53.12 participating in a licensing authority local defined retailer 53.13 program. For purposes of this clause, "defined retailer 53.14 program" means a voluntary program between the tobacco licensing 53.15 authority and the tobacco license holder. The program must: 53.16 (1) consist of a tobacco compliance coordinator; 53.17 (2) provide training by the licensing authority for tobacco 53.18 retailer employees; 53.19 (3) reward employees for successfully blocking sales to 53.20 underage customers; 53.21 (4) encourage self-reporting of blocked sales to underage 53.22 customers; 53.23 (5) have an advisory panel consisting of city personnel and 53.24 tobacco retailers to look at the development and review of the 53.25 training curriculum; 53.26 (6) have a review panel consisting of the compliance 53.27 coordinator, a city council or county board member, a local 53.28 tobacco retailer, and a member of the local city staff; and 53.29 (7) not establish or impose penalties greater or less than 53.30 those specified in paragraph (a). 53.31 (c) No suspension or penalty may take effect until the 53.32 licensee has received notice, served personally or by mail, of 53.33 the alleged violation and an opportunity for a hearing before a 53.34 person authorized by the licensing authority to conduct the 53.35 hearing. 53.36 (d) In determining the amount of a penalty and the length 54.1 of a license suspension, at a hearing as specified in paragraph 54.2 (c), the local licensing authority shall take into consideration 54.3 as mitigating circumstances evidence provided by a licensee of a 54.4 licensee's adoption and enforcement of a written employee policy 54.5 to prevent the sale of tobacco to minors, a licensee's training 54.6 program to instruct employees on applicable laws and how to 54.7 prevent sales of tobacco to minors, a licensee's adoption and 54.8 imposition of disciplinary sanctions for employee noncompliance 54.9 with the licensee's policies, a licensee's policy of conducting 54.10 voluntary internal compliance checks to test compliance with 54.11 section 609.685, and whether a licensee or a licensee's employee 54.12 verified the age of the customer during the transaction in 54.13 question and reasonably relied on the age verification to 54.14 complete the sale. A decision that a violation has occurred 54.15 must be in writing and must include a summary of the mitigating 54.16 circumstances considered by the local licensing authority in 54.17 assessing a penalty or a license suspension. 54.18 [EFFECTIVE DATE.] This section is effective the day 54.19 following final enactment and applies to administrative 54.20 penalties imposed on or after that date. 54.21 Sec. 68. Minnesota Statutes 2002, section 461.19, is 54.22 amended to read: 54.23 461.19 [EFFECT ON LOCAL ORDINANCE; NOTICE.] 54.24 Sections 461.12 to 461.18 do not preempt a local ordinance 54.25 that provides for more restrictive regulation of tobacco sales, 54.26 except that on and after the effective date of this act, a 54.27 licensing authority shall not assess or impose a penalty on a 54.28 licensee or an employee of a licensee that is greater than the 54.29 administrative penalties set forth in section 461.12, 54.30 subdivisions 2 and 3. A governing body shall give notice of its 54.31 intention to consider adoption or substantial amendment of any 54.32 local ordinance required under section 461.12 or permitted under 54.33 this section. The governing body shall take reasonable steps to 54.34 send notice by mail at least 30 days prior to the meeting to the 54.35 last known address of each licensee or person required to hold a 54.36 license under section 461.12. The notice shall state the time, 55.1 place, and date of the meeting and the subject matter of the 55.2 proposed ordinance. 55.3 [EFFECTIVE DATE.] This section is effective the day 55.4 following final enactment and applies to administrative 55.5 penalties imposed on or after that date. 55.6 Sec. 69. Minnesota Statutes 2003 Supplement, section 55.7 462A.03, subdivision 13, is amended to read: 55.8 Subd. 13. [ELIGIBLE MORTGAGOR.] "Eligible mortgagor" means 55.9 a nonprofit or cooperative housing corporation; the Department 55.10 of Administration for the purpose of developing nursing home 55.11 beds under section 251.011 or community-based programs as 55.12 defined in sections 252.50 and 253.28; a limited profit entity 55.13 or a builder as defined by the agency in its rules, which 55.14 sponsors or constructs residential housing as defined in 55.15 subdivision 7; or a natural person of low or moderate income, 55.16 except that the return to a limited dividend entity shall not 55.17 exceedten15 percent of the capital contribution of the 55.18 investors or such lesser percentage as the agency shall 55.19 establish in its rules, provided that residual receipts funds of 55.20 a limited dividend entity may be used for agency-approved, 55.21 housing-related investments owned by the limited dividend entity 55.22 without regard to the limitation on returns. Owners of existing 55.23 residential housing occupied by renters shall be eligible for 55.24 rehabilitation loans, only if, as a condition to the issuance of 55.25 the loan, the owner agrees to conditions established by the 55.26 agency in its rules relating to rental or other matters that 55.27 will insure that the housing will be occupied by persons and 55.28 families of low or moderate income. The agency shall require by 55.29 rules that the owner give preference to those persons of low or 55.30 moderate income who occupied the residential housing at the time 55.31 of application for the loan. 55.32 Sec. 70. Minnesota Statutes 2002, section 462A.05, is 55.33 amended by adding a subdivision to read: 55.34 Subd. 3c. [REFINANCING; LONG-TERM MORTGAGES.] It may agree 55.35 to purchase, make, or otherwise participate in the making and 55.36 enter into commitments for the purchase, making, or 56.1 participation in the making of long-term mortgage loans to 56.2 persons and families of low and moderate income to refinance a 56.3 long-term mortgage or other financing secured by the residential 56.4 housing occupied by the owner of the property. The loans shall 56.5 be made only upon determination by the agency that long-term 56.6 mortgage loans are not otherwise available, wholly or in part, 56.7 from private lenders upon equivalent terms and conditions. 56.8 Sec. 71. Laws 2003, chapter 128, article 10, section 4, 56.9 subdivision 3, is amended to read: 56.10 Subd. 3. Affordable Rental Investment Fund 56.11 $9,273,000 the first year and 56.12 $9,273,000 the second year are for the 56.13 affordable rental investment fund 56.14 program under Minnesota Statutes, 56.15 section 462A.21, subdivision 8b. 56.16 This appropriation is to finance the 56.17 acquisition, rehabilitation, and debt 56.18 restructuring of federally assisted 56.19 rental property and for making equity 56.20 take-out loans under Minnesota 56.21 Statutes, section 462A.05, subdivision 56.22 39. This appropriation also may be 56.23 used to finance the acquisition, 56.24 rehabilitation, and debt restructuring 56.25 of existing supportive housing 56.26 properties. For purposes of this 56.27 subdivision, supportive housing means 56.28 affordable rental housing with linkages 56.29 to services necessary for individuals, 56.30 youth, and families with children to 56.31 maintain housing stability. The owner 56.32 of the federally assisted rental 56.33 property must agree to participate in 56.34 the applicable federally assisted 56.35 housing program and to extend any 56.36 existing low-income affordability 56.37 restrictions on the housing for the 56.38 maximum term permitted. The owner must 56.39 also enter into an agreement that gives 56.40 local units of government, housing and 56.41 redevelopment authorities, and 56.42 nonprofit housing organizations the 56.43 right of first refusal if the rental 56.44 property is offered for sale. Priority 56.45 must be given among comparable 56.46 properties to properties with the 56.47 longest remaining term under an 56.48 agreement for federal rental 56.49 assistance. Priority must also be 56.50 given among comparable rental housing 56.51 developments to developments that are 56.52 or will be owned by local government 56.53 units, a housing and redevelopment 56.54 authority, or a nonprofit housing 56.55 organization. 56.56 Sec. 72. [LOGGER SAFETY PROGRAM.] 56.57 The commissioner of labor and industry shall contract out 57.1 for the provision of a safety and education program for 57.2 Minnesota loggers under Minnesota Statutes, section 176.130. 57.3 [EFFECTIVE DATE.] This section is effective January 1, 2005. 57.4 Sec. 73. [EXTRA UNEMPLOYMENT BENEFITS FOR MILITARY 57.5 RESERVISTS.] 57.6 Subdivision 1. [ENTITLEMENT.] An applicant may be entitled 57.7 to extra unemployment benefits if: 57.8 (1) covered employment was not available to the applicant 57.9 upon release from active military service, or the applicant was 57.10 laid off due to lack of work from covered employment within 90 57.11 days of release from active military service; and 57.12 (2) the applicant then filed an application for 57.13 unemployment benefits and established a benefit account under 57.14 Minnesota Statutes, section 268.07. 57.15 Subd. 2. [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 57.16 unemployment benefits under this section are payable from the 57.17 trust fund and subject to Minnesota Statutes, section 268.047. 57.18 Subd. 3. [ELIGIBILITY CONDITIONS.] An applicant described 57.19 in subdivision 1 is eligible to collect extra unemployment 57.20 benefits for any week during the applicant's benefit year, if: 57.21 (1) the applicant was in the military reserves; 57.22 (2) the applicant had wages paid in covered employment in 57.23 each of the last four completed calendar quarters prior to being 57.24 called up for active military service; 57.25 (3) the applicant was called up for active military service 57.26 after January 1, 2003; 57.27 (4) the applicant was on active duty in the military for at 57.28 least six months; 57.29 (5) the applicant meets the eligibility requirements of 57.30 Minnesota Statutes, section 268.085; 57.31 (6) the applicant is not subject to a disqualification 57.32 under Minnesota Statutes, section 268.095; and 57.33 (7) the applicant is not entitled to any regular, 57.34 additional, or extended unemployment benefits for that week and 57.35 the applicant is not entitled to receive unemployment benefits 57.36 under any other state or federal law or the law of Canada for 58.1 that week. 58.2 Subd. 4. [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 58.3 amount of extra unemployment benefits available to an applicant 58.4 under this section is the same as the applicant's regular weekly 58.5 benefit amount on the benefit account established under 58.6 subdivision 1. 58.7 Subd. 5. [MAXIMUM AMOUNT OF EXTRA BENEFITS.] The maximum 58.8 amount of extra unemployment benefits available is 13 times the 58.9 applicant's weekly extra unemployment benefit amount. 58.10 Subd. 6. [PROGRAM EXPIRATION.] This extra unemployment 58.11 benefit program expires the last Saturday in March 2006. No 58.12 extra unemployment benefits shall be paid under this section 58.13 after the expiration of this program. 58.14 Subd. 7. [APPLICABILITY.] This section shall apply to 58.15 applicants whose unemployment benefit entitlement results, in 58.16 whole or in part, because of United States Code, title 5, 58.17 section 8522. 58.18 Subd. 8. [DEFINITIONS.] The definitions in Minnesota 58.19 Statutes, section 268.035, shall apply to this section. 58.20 [EFFECTIVE DATE.] This section is effective the day 58.21 following final enactment. 58.22 Sec. 74. [TRIENNIAL REVIEWS BY DEPARTMENT OF LABOR AND 58.23 INDUSTRY.] 58.24 The commissioner of labor and industry may directly provide 58.25 triennial review services necessary for shops to maintain 58.26 national board and ASME stamps. If the department elects to 58.27 conduct such reviews, the commissioner will by rule, adopt a fee 58.28 schedule calculated to return sufficient revenue to cover the 58.29 costs for conducting the reviews and for administrative costs 58.30 pertaining to the reviews. All fees collected pursuant to this 58.31 section shall be deposited in the special revenue fund and are 58.32 appropriated to the commissioner of labor and industry for the 58.33 purposes of this section. 58.34 Sec. 75. [SUSPENSION OF MORTGAGE CREDIT CERTIFICATE AID.] 58.35 Notwithstanding Minnesota Statutes, section 462C.15, during 58.36 the fiscal years 2006 and 2007, no applications or reports shall 59.1 be made pursuant to Minnesota Statutes, section 462C.15, 59.2 subdivision 1; no aid shall be provided pursuant to Minnesota 59.3 Statutes, section 462C.15, subdivision 3; and no money is 59.4 appropriated pursuant to Minnesota Statutes, section 462C.15, 59.5 subdivision 4. 59.6 Sec. 76. [TRANSFER OF POWERS.] 59.7 All powers, duties, and obligations of the commissioner of 59.8 commerce in Minnesota Statutes, chapter 155A, are transferred to 59.9 the Board of Barber and Cosmetologist Examiners under Minnesota 59.10 Statutes, section 15.039, except as otherwise prescribed in this 59.11 act. 59.12 Sec. 77. [TRANSITION AND TRANSFER OF FUNDS.] 59.13 The commissioner of commerce shall assist in the transition 59.14 of regulatory authority over the cosmetology industry from the 59.15 Department of Commerce to the Board of Barber and Cosmetology 59.16 Examiners. Funding for this regulation is currently a part of 59.17 the base budget for the Department of Commerce. To facilitate 59.18 the transition of funds to the Board of Barber and Cosmetology 59.19 Examiners, the commissioner of commerce shall enter into 59.20 interagency agreements with the board for amounts not to exceed 59.21 $50,000 in fiscal year 2005, $100,000 in fiscal year 2006, and 59.22 $150,000 in fiscal year 2007. The Department of Commerce's base 59.23 budget for the 2008-2009 biennium shall be reduced by a total of 59.24 $205,000 and the Board of Barber and Cosmetology Examiners base 59.25 budget must be increased by the same amount. 59.26 Sec. 78. [REVISOR'S INSTRUCTION.] 59.27 The revisor shall renumber Minnesota Statutes, sections 59.28 154.18, 154.22, and 154.23, as Minnesota Statutes, sections 59.29 154.003, 154.001, and 154.002, respectively; renumber Minnesota 59.30 Statutes, chapter 155A, in Minnesota Statutes, chapter 154, 59.31 following Minnesota Statutes, section 154.26; and correct 59.32 references to these sections in Minnesota Statutes and Minnesota 59.33 Rules. The revisor shall delete "Board of Barber Examiners" and 59.34 substitute "Board of Barber and Cosmetologist Examiners" in 59.35 Minnesota Rules and shall delete "commissioner of commerce," 59.36 "commissioner," and "department" where it means the commissioner 60.1 or Department of Commerce, and substitute "board" or "Board of 60.2 Barber and Cosmetologist Examiners," as appropriate, in 60.3 Minnesota Rules, chapters 2642 and 2644. The revisor shall 60.4 renumber Minnesota Rules, chapters 2642 and 2644, as chapters 60.5 2105 and 2110, respectively, and shall correct references to the 60.6 renumbered parts and chapters. 60.7 Sec. 79. [REPEALER.] 60.8 (a) Minnesota Statutes 2002, sections 155A.03, subdivisions 60.9 11 and 13; 155A.04; and 155A.06; and Minnesota Statutes 2003 60.10 Supplement, section 239.101, subdivision 7, are repealed. 60.11 (b) Minnesota Rules, part 2100.9300, subpart 1, is repealed. 60.12 (c) Section 60, is repealed effective January 1, 2007.