HF 3997

as introduced - 89th Legislature (2015 - 2016) Posted on 05/09/2016 01:40pm

A bill for an act
relating to occupations; providing for oversight of state occupational regulations;
requiring reports; amending Minnesota Statutes 2014, sections 3.303, by adding
a subdivision; 214.001, subdivisions 1, 3, by adding subdivisions; 214.002,
subdivision 2, by adding a subdivision; 214.01, by adding subdivisions;
proposing coding for new law in Minnesota Statutes, chapter 214.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 3.303, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Regulatory effects on minorities and the underprivileged. new text end

new text begin The
Legislative Coordinating Commission shall study and report to the legislature by January
15, 2017, and every five years thereafter, on matters relating to the economic effects of
existing and proposed occupational regulations on the availability of service providers to
and employment opportunities for members of economically underprivileged classes and
racial minorities. It shall also report to the legislature on whether occupational regulations
are being enforced for the benefit of all consumers consistent with section 214.001.
new text end

Sec. 2.

Minnesota Statutes 2014, section 214.001, subdivision 1, is amended to read:

Subdivision 1.

Policy.

The legislature finds that the interests of the people of the
state are served by the regulation of certain occupations. The legislature further finds:

(1) that it is desirable for boards composed primarily of members of the occupations
so regulated to be charged with formulating the policies and standards governing the
occupation;

(2) that economical and efficient administration of the regulation activities can
be achieved through the provision of administrative services by departments of state
government; and

(3) that procedural fairness in the disciplining of persons regulated by the boards
requires new text begin (i) new text end a separation of the investigative and prosecutorial functions from the deleted text begin board's
deleted text end new text begin boards' new text end judicial responsibility new text begin , and (ii) active supervision of the boards' disciplinary actions new text end .

Sec. 3.

Minnesota Statutes 2014, section 214.001, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Administrative rules. new text end

new text begin It is the responsibility of the governor or the
governor's designee to ensure that all rules and policies related to occupational licensing
promulgated by the state's executive agencies and boards are consistent with the policies
in subdivision 1.
new text end

Sec. 4.

Minnesota Statutes 2014, section 214.001, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Enforcement. new text end

new text begin An occupational regulation may be enforced against
an individual only to the extent the individual sells lawful goods and services that are
explicitly included in the law that defines the occupation's scope of practice.
new text end

Sec. 5.

Minnesota Statutes 2014, section 214.001, subdivision 3, is amended to read:

Subd. 3.

Regulation of new occupations.

new text begin (a) new text end If the legislature finds after evaluation
of the factors identified in subdivision 2 that it is necessary to regulate an occupation
not heretofore credentialed or regulated new text begin because private credentials and reputations are
insufficient to protect consumers new text end , then new text begin the state shall use the least restrictive new text end regulation
deleted text begin should be implemented deleted text end new text begin necessary to protect consumers from present, significant, and
substantiated harm that threatens public health and safety new text end consistent with the policy of this
section, in modes in the following order:

(1) creation or extension of common law or statutory causes of civil action, and the
creation or extension of criminal prohibitions;

new text begin (2) enactment of a regulation of the process providing the lawful goods or services
to consumers, including expanding the scope of a deceptive trade practices act to include
the sale of specific goods or services;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end imposition of inspection requirements and the ability to enforce violations
by injunctive relief in the courts;

new text begin (4) imposition of a bonding or insurance requirement;
new text end

deleted text begin (3) deleted text end new text begin (5) new text end implementation of a system of registration whereby practitioners new text begin give notice
to the state that may include the individual's name and address, the individual's agent for
service of process, the location of the activity to be performed, and a description of the
service the individual provides. "Registration" does not include predetermined personal
qualifications but may require a bond or insurance. Upon the state's receipt of notice, the
individual may use "registered" as a designated title. A nonregistered individual must not
perform the occupation for compensation or use "registered" as a designated title;
new text end

new text begin (6) implementation of a system of certification whereby practitioners new text end who will be the
only persons permitted to use a designated title are listed on an official roster after having
met predetermined new text begin personal new text end qualifications; deleted text begin or
deleted text end

new text begin (7) implementation of a system of a limited license for the purpose of receiving
payment or reimbursement from a government agency whereby the practitioner must
receive recognition by the state of having met predetermined personal qualifications but
persons not so licensed may practice for compensation but do not qualify for payments
or reimbursement from a government agency. A private company may recognize this
credential; or
new text end

deleted text begin (4) deleted text end new text begin (8) new text end implementation of a system of licensing whereby a practitioner must receive
recognition by the state of having met predetermined new text begin personal new text end qualifications, and persons
not so licensed are prohibited from practicing.

new text begin (b) new text end Two or more of deleted text begin these deleted text end new text begin the new text end modes new text begin in paragraph (a) new text end may be simultaneously
implemented if necessary and appropriate.

Sec. 6.

Minnesota Statutes 2014, section 214.002, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Occupational regulations analyst. new text end

new text begin (a) The Legislative Coordinating
Commission shall establish an analyst position to analyze occupational regulations
consistent with section 214.001.
new text end

new text begin (b) The analyst must issue periodic reports, as determined by the Legislative
Coordinating Commission, on the availability of service providers to and employment
opportunities for members of economically underprivileged classes and racial minorities.
new text end

new text begin (c) The analyst must review legislation to enact or modify an occupational regulation
to ensure compliance with the policies in section 214.001.
new text end

new text begin (d) The analyst may require submission of evidence from the legislation's
proponents. The analyst may also require information from others knowledgeable of the
occupation, labor economics, or other factors.
new text end

new text begin (e) The analyst must determine if the legislation meets the state policy of using
the least restrictive regulation necessary to protect consumers from present, significant,
and substantiated harm.
new text end

new text begin (f) The analyst must evaluate the effects of legislation on opportunities for workers,
consumers choices and costs, general unemployment, market competition, governmental
costs, and other effects including availability of service providers to and employment
opportunities for members of economically underprivileged classes and racial minorities.
new text end

new text begin (g) The analyst must issue a report to relevant committees about proposed
occupational regulation legislation as requested by the legislature.
new text end

Sec. 7.

Minnesota Statutes 2014, section 214.002, subdivision 2, is amended to read:

Subd. 2.

Contents of report.

A report in support of the regulation of a health-related
or non-health-related occupation must address the following issues as specifically as
possible:

(1) the harm to the public that is or could be posed by the unregulated practice of the
occupation or by continued practice at its current degree of regulation;

(2) any reason why existing civil or criminal laws or procedures are inadequate to
prevent or remedy any harm to the public;

(3) why the proposed level of regulation is being proposed and why, if there is a
lesser degree of regulation, it was not selected;

(4) any associations, organizations, or other groups representing the occupation
seeking regulation and the approximate number of members in each in Minnesota;

(5) the functions typically performed by members of this occupational group and
whether they are identical or similar to those performed by another occupational group
or groups;

(6) whether any specialized training, education, or experience is required to engage
in the occupation and, if so, how current practitioners have acquired that training,
education, or experience;

(7) whether the proposed regulation would change the way practitioners of the
occupation acquire any necessary specialized training, education, or experience and, if
so, why;

(8) whether any current practitioners of the occupation in Minnesota lack whatever
specialized training, education, or experience might be required to engage in the
occupation and, if so, how the proposed regulation would address that lack;

(9) whether new entrants into the occupation would be required to provide evidence
of any necessary training, education, or experience, or to pass an examination, or both;

(10) whether current practitioners would be required to provide evidence of any
necessary training, education, or experience, or to pass an examination, and, if not, why
not; deleted text begin and
deleted text end

(11) the expected impact of the proposed regulation on the supply of practitioners of
the occupation and on the cost of services or goods provided by the occupation deleted text begin . deleted text end new text begin ; and
new text end

new text begin (12) whether and how other states and the federal government regulate the occupation.
new text end

Sec. 8.

new text begin [214.003] OFFICE OF ADMINISTRATIVE HEARINGS;
OCCUPATIONAL BOARDS' DISCIPLINARY ACTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Office of Supervision of Occupational Boards' Disciplinary
Actions. new text end

new text begin The Office of Administrative Hearings shall establish the Office of Supervision
of Occupational Boards' Disciplinary Actions.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The office must actively supervise state occupational boards
to ensure compliance with section 214.001. The office must be staffed by one or more
attorneys who do not provide general counsel to any board and who may exercise control
over a board's disciplinary actions.
new text end

new text begin Subd. 3. new text end

new text begin Actively supervise. new text end

new text begin For the purposes of this section, "actively supervise"
means the office must act independently to:
new text end

new text begin (1) evaluate enforcement actions proposed after the effective date of this act to
determine consistency with section 214.001; and
new text end

new text begin (2) exercise control over each board by reviewing and approving only enforcement
actions that are consistent with section 214.001.
new text end

new text begin Subd. 4. new text end

new text begin Approval. new text end

new text begin The office must review, approve, or reject proposed
enforcement with respect to licensed or unlicensed practice of work alleged to be
inconsistent with or outside the applicable state law's scope of practice. The office's
approval of any action must be explicit; silence or failure to act is not deemed approval.
new text end

new text begin Subd. 5. new text end

new text begin Costs. new text end

new text begin A board appearing before the office must bear the cost of the review.
new text end

new text begin Subd. 6. new text end

new text begin Additional responsibility. new text end

new text begin The governor or a state legislator may ask the
chief judge of the Office of Administrative Hearings to review and issue a report about
any board's rule, policy, or enforcement action that the governor or state legislator believes
is inconsistent with section 214.001.
new text end

Sec. 9.

Minnesota Statutes 2014, section 214.01, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Least restrictive regulation. new text end

new text begin "Least restrictive regulation" means, from
least to most restrictive:
new text end

new text begin (1) market competition;
new text end

new text begin (2) a specific private civil cause of action to remedy consumer harm;
new text end

new text begin (3) a regulation of the process of providing the specific goods or services to
consumers, including expanding the scope of a deceptive trade practices act to include the
sale of specific goods or services;
new text end

new text begin (4) inspection;
new text end

new text begin (5) bonding or insurance;
new text end

new text begin (6) registration;
new text end

new text begin (7) government certification;
new text end

new text begin (8) limited license for government payments or reimbursements for medical
services; and
new text end

new text begin (9) occupational license.
new text end

Sec. 10.

Minnesota Statutes 2014, section 214.01, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Predetermined personal qualifications. new text end

new text begin "Predetermined personal
qualifications" are criteria related to an individual's personal background and experience
including completion of an approved educational program, satisfactory performance
on an examination, work experience, other evidence of attainment of requisite skills or
knowledge, moral standing, criminal history, and completion of continuing education.
new text end