Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 204-H.F.No. 643 
           An act relating to commerce; making technical changes 
          in the department's enforcement powers; regulating 
          cosmetology; prescribing powers and duties; setting 
          fees; amending Minnesota Statutes 1992, sections 
          45.011, subdivision 1, and by adding a subdivision; 
          45.027, subdivisions 1, 2, 5, 6, and 8; 155A.03, 
          subdivision 1; 155A.05; 155A.06; 155A.07, subdivisions 
          2, 4, 7, and 8; 155A.08, subdivisions 2 and 5; 
          155A.09, subdivisions 2, 5, 6, and 9; 155A.10; 
          155A.14; 155A.15; and 155A.16; proposing coding for 
          new law in Minnesota Statutes, chapter 155A; repealing 
          Minnesota Statutes 1992, sections 155A.11; 155A.12; 
          155A.13; and 155A.18; Minnesota Rules, parts 
          2642.0310, subparts 3, 4, and 5; 2642.0330, subparts 3 
          and 4; 2642.0800; 2642.0810; 2644.0310, subparts 2, 3, 
          and 4; 2644.0800; and 2644.0810. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 45.011, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCOPE.] As used in chapters 45 to 83, 
155A, 309, 332, and 359, and sections 326.83 to 326.98, unless 
the context indicates otherwise, the terms defined in this 
section have the meanings given them.  
    Sec. 2.  Minnesota Statutes 1992, section 45.011, is 
amended by adding a subdivision to read: 
    Subd. 4.  [DUTIES AND RESPONSIBILITIES ENTRUSTED TO THE 
COMMISSIONER.] "Duties and responsibilities entrusted to the 
commissioner" includes the administration of those chapters 
referred to in subdivision 1, as well as rules adopted or orders 
issued under those chapters. 
    Sec. 3.  Minnesota Statutes 1992, section 45.027, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL POWERS.] In connection with the 
administration of chapters 45 to 83, 309, and 332, and sections 
326.83 to 326.98 duties and responsibilities entrusted to the 
commissioner, the commissioner of commerce may:  
    (1) make public or private investigations within or without 
this state as the commissioner considers necessary to determine 
whether any person has violated or is about to violate chapters 
45 to 83, 309, and 332, sections 326.83 to 326.98, or any rule 
adopted or order issued under those chapters, or to aid in the 
enforcement of chapters 45 to 83, 309, and 332, sections 326.83 
to 326.98, or in the prescribing of rules or forms under those 
chapters any law, rule, or order related to the duties and 
responsibilities entrusted to the commissioner; 
    (2) require or permit any person to file a statement in 
writing, under oath or otherwise as the commissioner determines, 
as to all the facts and circumstances concerning the matter 
being investigated; 
    (3) hold hearings, upon reasonable notice, in respect to 
any matter arising out of the administration of chapters 45 to 
83, 309, and 332, and sections 326.83 to 326.98 duties and 
responsibilities entrusted to the commissioner; 
    (4) conduct investigations and hold hearings for the 
purpose of compiling information with a view to recommending 
changes in chapters 45 to 83, 309, and 332, and sections 326.83 
to 326.98, to the legislature in the laws related to the duties 
and responsibilities entrusted to the commissioner; 
    (5) examine the books, accounts, records, and files of 
every licensee under chapters 45 to 83, 309, and 332, and 
sections 326.83 to 326.98, and of every person who is engaged in 
any activity regulated under chapters 45 to 83, 309, and 332, 
and sections 326.83 to 326.98; the commissioner or a designated 
representative shall have free access during normal business 
hours to the offices and places of business of the person, and 
to all books, accounts, papers, records, files, safes, and 
vaults maintained in the place of business; 
    (6) publish information which is contained in any order 
issued by the commissioner; and 
    (7) require any person subject to chapters 45 to 83, 309, 
and 332, and sections 326.83 to 326.98 duties and 
responsibilities entrusted to the commissioner, to report all 
sales or transactions that are regulated under chapters 45 to 
83, 309, and 332, and sections 326.83 to 326.98.  The reports 
must be made within ten days after the commissioner has ordered 
the report.  The report is accessible only to the respondent and 
other governmental agencies unless otherwise ordered by a court 
of competent jurisdiction.  
    Sec. 4.  Minnesota Statutes 1992, section 45.027, 
subdivision 2, is amended to read: 
    Subd. 2.  [POWER TO COMPEL PRODUCTION OF EVIDENCE.] For the 
purpose of any investigation, hearing, proceeding, or inquiry 
under chapters 45 to 83, 309, and 332, and sections 326.83 to 
326.98 related to the duties and responsibilities entrusted to 
the commissioner, the commissioner or a designated 
representative may administer oaths and affirmations, subpoena 
witnesses, compel their attendance, take evidence, and require 
the production of books, papers, correspondence, memoranda, 
agreements, or other documents or records that the commissioner 
considers relevant or material to the inquiry.  
    Sec. 5.  Minnesota Statutes 1992, section 45.027, 
subdivision 5, is amended to read: 
    Subd. 5.  [LEGAL ACTIONS; INJUNCTIONS; CEASE AND DESIST 
ORDERS.] Whenever it appears to the commissioner that any person 
has engaged or is about to engage in any act or practice 
constituting a violation of chapters 45 to 83, 309, and 332, 
sections 326.83 to 326.98, or any rule adopted or order issued 
under those chapters any law, rule, or order related to the 
duties and responsibilities entrusted to the commissioner, the 
commissioner has the following powers:  (1) the commissioner may 
bring an action in the name of the state in the district court 
of the appropriate county to enjoin the acts or practices and to 
enforce compliance with chapters 45 to 83, 309, and 332, 
sections 326.83 to 326.98, or any rule or order adopted or 
issued under those chapters, or the commissioner may refer the 
matter to the attorney general or the county attorney of the 
appropriate county.  Upon a proper showing, a permanent or 
temporary injunction, restraining order, or other appropriate 
relief must be granted; (2) the commissioner may issue and cause 
to be served upon the person an order requiring the person to 
cease and desist from violations of chapters 45 to 83, 309, and 
332, sections 326.83 to 326.98, or any rule or order adopted or 
issued under those chapters.  The order must be calculated to 
give reasonable notice of the rights of the person to request a 
hearing and must state the reasons for the entry of the order.  
A hearing must be held not later than seven days after the 
request for the hearing is received by the commissioner, unless 
the person requesting the hearing and the department of commerce 
agree the hearing be scheduled after the seven-day period.  
After the hearing and within 20 days after receiving the 
administrative law judge's report, the commissioner shall issue 
a further order vacating the cease and desist order or making it 
permanent as the facts require.  If no hearing is requested 
within 30 days of service of the order, the order will become 
final and will remain in effect until it is modified or vacated 
by the commissioner.  Unless otherwise provided, all hearings 
must be conducted in accordance with chapter 14.  If the person 
to whom a cease and desist order is issued fails to appear at 
the hearing after being duly notified, the person is in default, 
and the proceeding may be determined against that person upon 
consideration of the cease and desist order, the allegations of 
which may be considered to be true.  The commissioner may adopt 
rules of procedure concerning all proceedings conducted under 
this subdivision.  
    Sec. 6.  Minnesota Statutes 1992, section 45.027, 
subdivision 6, is amended to read: 
    Subd. 6.  [VIOLATIONS AND PENALTIES.] The commissioner may 
impose a civil penalty not to exceed $2,000 per violation upon a 
person who violates chapters 45 to 83, 309, and 332, and 
sections 326.83 to 326.98, or any rule adopted or order issued 
under those chapters any law, rule, or order related to the 
duties and responsibilities entrusted to the commissioner unless 
a different penalty is specified.  
    Sec. 7.  Minnesota Statutes 1992, section 45.027, 
subdivision 8, is amended to read: 
    Subd. 8.  [STOP ORDER.] In addition to any other actions 
authorized by this section, the commissioner may issue a stop 
order denying effectiveness to or suspending or revoking any 
registration subject to chapters 45 to 83, 309, or 332, or 
sections 326.83 to 326.98. 
    Sec. 8.  Minnesota Statutes 1992, section 155A.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TERMS.] For purposes of sections 155A.01 
to 155A.18 this chapter, and unless the context clearly requires 
otherwise, the words defined in this section have the meanings 
given them.  
    Sec. 9.  [155A.045] [FEES.] 
    Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
is as follows: 
    (a) Three-year license fees: 
    (1) cosmetologist, manicurist, esthetician, $30; 
    (2) instructor, manager, $45; 
    (3) salon, $50; and 
    (4) school, $750. 
    (b) Penalties: 
    (1) reinspection fee, variable; and 
    (2) manager with lapsed practitioner, $25. 
    (c) Administrative fees: 
    (1) duplicate license (includes individual name or address 
change), $5; 
    (2) certificate of identification, $20; 
    (3) processing fee (covers licensing history or 
certification of licensure, restoration of lapsed license, salon 
name change, school name change, late renewals, applications for 
new licenses), $15; and 
    (4) school original application, $150. 
    Subd. 2.  [REFUNDS.] Refunds shall be given in the 
following situations:  overpayment; death or permanent 
disability before the effective date of a license; or an 
individual's ineligibility for licensure.  Applicants determined 
ineligible to receive a license will be refunded the license fee 
minus any processing fee this section requires. 
    Subd. 3.  [OTHER LICENSES.] A licensee who applies for 
licensing in a second category shall pay the full license fee 
for the second category of license. 
    Sec. 10.  Minnesota Statutes 1992, section 155A.05, is 
amended to read: 
    155A.05 [RULES.] 
    The commissioner shall may develop and adopt rules to carry 
out sections 155A.01 to 155A.18 according to chapter 14 that the 
commissioner considers necessary to carry out this chapter.  For 
purposes of sections 155A.01 to 155A.18, the commissioner may 
adopt emergency rules, according to sections 14.29 to 14.36.  
These rules may provide that for a renewal license issued by the 
commissioner within one year after July 1, 1981, the term of 
renewal shall be either one, two, or three years.  The fee for a 
one-year renewal license shall be one-third of the fee for a 
three-year renewal license, and the fee for a two-year renewal 
shall be two-thirds of the three-year fee.  
    Sec. 11.  Minnesota Statutes 1992, section 155A.06, is 
amended to read: 
    155A.06 [ADVISORY COUNCIL.] 
    Subdivision 1.  [CREATION.] The Minnesota cosmetology 
advisory council is created, consisting consists of 11 members, 
as follows:  Three members representative of consumers; four 
cosmetologists or shop managers; three cosmetology school 
representatives, at least one of whom shall represent public 
cosmetology schools and one represent private cosmetology 
schools; and one representative of manufacturers of cosmetology 
products.  The chair shall be selected at the first meeting of 
each year by the council from among its members by majority vote 
and shall serve until a successor is elected. 
    Subd. 2.  [APPOINTMENTS.] Appointments to the council shall 
be made by the commissioner in accordance with section 
15.0597 15.059. 
    Subd. 3.  [MEMBERSHIP TERMS.] Each member of the council 
shall be appointed for a four-year term, except that in making 
the appointments for the first term, the governor shall appoint 
members for one, two, three, or four-year duration by September 
1, 1981 so that appointments do not expire concurrently.  
    Subd. 4.  [DUTIES.] The council shall meet at least 
annually, at the call of the commissioner.  The council shall 
advise the commissioner of the availability of cosmetology 
services and their ethical and safe operation and on other 
matters as the commissioner considers appropriate.  The 
commissioner shall may consult with the council prior to the 
promulgation of before adopting any rules, adoption of testing 
instruments, criteria for inspections, and other matters as the 
commissioner deems considers appropriate.  
    Subd. 5.  [COMPENSATION.] Members of the council shall be 
compensated for expenses and the council shall expire as 
provided in section 15.059 and the council shall expire on June 
30, 1997.  
    Sec. 12.  Minnesota Statutes 1992, section 155A.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [QUALIFICATIONS.] Qualifications for licensing in 
each classification shall be determined by the commissioner in 
consultation with the council, and established by rule, and 
shall include educational and experiential prerequisites.  The 
rules shall require a demonstrated knowledge of procedures 
necessary to protect the health of the practitioner and the 
consumer of cosmetology services, including but not limited to 
chemical applications.  
    Sec. 13.  Minnesota Statutes 1992, section 155A.07, 
subdivision 4, is amended to read: 
    Subd. 4.  [LICENSING WITHOUT TEST.] Licensing of persons 
without testing may be allowed as determined by rules rule.  
    Sec. 14.  Minnesota Statutes 1992, section 155A.07, 
subdivision 7, is amended to read: 
    Subd. 7.  [FEES.] Examination and licensing fees shall 
be established and adjusted, by rule, so that the total amount 
of fee income at least meets the anticipated costs, as provided 
in section 16A.128 in the amounts specified in section 155A.045. 
    Sec. 15.  Minnesota Statutes 1992, section 155A.07, 
subdivision 8, is amended to read: 
    Subd. 8.  [EXEMPTIONS.] Persons licensed to provide 
cosmetology services in other states visiting this state for 
cosmetology demonstrations shall be exempted from the licensing 
provisions of sections 155A.01 to 155A.18 provided that this 
chapter if services to consumers are in the physical presence of 
a licensed cosmetologist.  
    Sec. 16.  Minnesota Statutes 1992, section 155A.08, 
subdivision 2, is amended to read: 
    Subd. 2.  [REQUIREMENTS.] The conditions and process by 
which a salon is licensed shall be established by the 
commissioner by rule after consultation with the council.  The 
rule shall include the following requirements.  In addition to 
those requirements, no license shall be issued unless the 
commissioner first determines that paragraphs (a) to (e) have 
been satisfied:  
    (a) compliance with all local and state laws, particularly 
relating to matters of sanitation, health, and safety; 
    (b) the employment of a manager, as defined in section 
155A.03, subdivision 6; 
    (c) inspection and licensing prior to the commencing of 
business; and 
    (d) if applicable, evidence of compliance with section 
176.182; and 
    (e) evidence of continued professional liability insurance 
coverage in an amount by of at least $25,000 for each claim and 
$50,000 total coverage as established by rule for each policy 
year for each operator.  
    The rule shall authorize A licensed esthetician or 
manicurist who complies with the health, safety, sanitation, 
inspection, and insurance rules promulgated by the commissioner 
to operate a salon solely for the performance of those personal 
services defined in section 155A.03, subdivision 4, in the case 
of an esthetician, or subdivision 5, in the case of a manicurist.
    Sec. 17.  Minnesota Statutes 1992, section 155A.08, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEES.] The licensing and inspection fees shall 
be established and adjusted, by rule, so that the total amount 
of fee income at least meets the anticipated costs, as provided 
in section 16A.128 are as specified in section 155A.045.  
    Sec. 18.  Minnesota Statutes 1992, section 155A.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [STANDARDS.] The commissioner, after consultation 
with the council, shall by rule establish minimum standards of 
course content and length specific to the educational 
preparation prerequisite to testing and licensing as 
cosmetologist, esthetician, and manicurist.  
    Sec. 19.  Minnesota Statutes 1992, section 155A.09, 
subdivision 5, is amended to read: 
     Subd. 5.  [CONDITIONS PRECEDENT TO ISSUANCE.] No license 
shall be issued unless the commissioner first determines: 
     (a) That the applicant has a sound financial condition with 
sufficient resources available to meet the school's financial 
obligations; to refund all tuition and other charges, within a 
reasonable period of time, in the event of dissolution of the 
school or in the event of any justifiable claims for refund 
against the school; to provide adequate service to its students 
and prospective students; and for the proper use and support of 
the school to be maintained; 
    (b) That the applicant has satisfactory training facilities 
with sufficient tools and equipment and the necessary number of 
work stations to adequately train the students currently 
enrolled, and those proposed to be enrolled; 
    (c) That the applicant employs a sufficient number of 
qualified instructors trained by experience and education to 
give the training contemplated; 
    (d) That the premises and conditions under which the 
students work and study are sanitary, healthful, and safe 
according to modern standards; 
    (e) That each occupational course or program of instruction 
or study shall be of such quality and content as to provide 
education and training which will adequately prepare enrolled 
students for testing, licensing, and entry level positions as a 
cosmetologist, esthetician, or manicurist; and 
    (f) Evidence of the school's coverage by professional 
liability insurance coverage in an amount by claim and total 
coverage as established by rule. of at least $25,000 per 
incident and an accumulation of $150,000 for each premium year; 
    (g) The applicant shall provide evidence of the school's 
compliance with section 176.182; and 
    (h) The applicant, except the state and its political 
subdivisions as described in section 471.617, subdivision 1, 
shall file with the commissioner a continuous corporate surety 
bond in the amount of $10,000, conditioned upon the faithful 
performance of all contracts and agreements with students made 
by the applicant.  The bond shall run to the state of Minnesota 
and to any person who may have a cause of action against the 
applicant arising at any time after the bond is filed and before 
it is canceled for breach of any contract or agreement made by 
the applicant with any student.  The aggregate liability of the 
surety for all breaches of the conditions of the bond shall not 
exceed $10,000.  The surety of the bond may cancel it upon 
giving 60 days notice in writing to the commissioner and shall 
be relieved of liability for any breach of condition occurring 
after the effective date of cancellation. 
    Sec. 20.  Minnesota Statutes 1992, section 155A.09, 
subdivision 6, is amended to read: 
    Subd. 6.  [FEES; RENEWALS.] (a) Applications for initial 
license under this chapter shall be accompanied by a 
nonrefundable application fee established by rule set forth in 
section 155A.045.  
    (b) License duration shall be three years.  Each renewal 
application shall be accompanied by a nonrefundable renewal fee 
established by rule set forth in section 155A.045.  
    (c) Application for renewal of license shall be made as 
stipulated provided in rules promulgated adopted by the 
commissioner and on forms supplied by the commissioner.  
    Sec. 21.  Minnesota Statutes 1992, section 155A.09, 
subdivision 9, is amended to read: 
    Subd. 9.  [SEPARATION OF SCHOOL AND PROFESSIONAL 
DEPARTMENTS.] A school shall display in the entrance reception 
room of its student section a sign prominently and conspicuously 
indicating that all work therein is done exclusively by 
students.  Professional departments of a school shall be run as 
entirely separate and distinct businesses and shall have 
separate entrances.  
    Nothing contained in sections 155A.01 to 155A.18 this 
chapter shall prevent a school from charging for student work 
done in the school to cover the cost of materials used and 
expenses incurred in and for the operation of the school.  All 
of the student work shall be prominently and conspicuously 
advertised and held forth as being student work and not 
otherwise.  
    Sec. 22.  [155A.095] [INSPECTIONS.] 
    The commissioner is responsible for inspecting salons and 
schools licensed pursuant to this chapter to assure compliance 
with the requirements of this chapter.  The commissioner shall 
direct department resources first to the inspection of those 
licensees who fail to meet the requirements of law, have 
indicated that they present a greater risk to the public, or 
have otherwise, in the opinion of the commissioner, demonstrated 
that they require a greater degree of regulatory attention.  In 
no event shall a salon or school be inspected less often than 
once each year. 
    Sec. 23.  Minnesota Statutes 1992, section 155A.10, is 
amended to read: 
    155A.10 [DISPLAY OF LICENSE.] 
    (a) Every holder of a license granted by the commissioner, 
shall display it in a conspicuous place in the place of business.
    (b) Notwithstanding the provisions of paragraph (a), 
nothing contained in sections 155A.01 to 155A.18 this chapter 
shall be construed to prohibit a person licensed to provide 
cosmetology services from engaging in any practices defined 
in sections 155A.01 to 155A.18 this chapter in the homes of 
customers or patrons, under the sanitary and health rules 
promulgated by the commissioner.  
     Sec. 24.  [155A.135] [ENFORCEMENT.] 
     The provisions of section 45.027 apply to the 
administration of this chapter. 
    Sec. 25.  Minnesota Statutes 1992, section 155A.14, is 
amended to read: 
    155A.14 [SERVICES EXCEPTED; EMERGENCY.] 
    Nothing in sections 155A.01 to 155A.18 shall prohibit this 
chapter prohibits services in cases of emergency where 
compensation or other reward is not received, nor in domestic 
service, nor in the practice of medicine, surgery, dentistry, 
podiatry, osteopathy, chiropractic, or barbering.  This section 
shall not be construed to authorize any of the persons so 
exempted to wave the hair, or to color, tint, or bleach the 
hair, in any manner.  
    Sec. 26.  Minnesota Statutes 1992, section 155A.15, is 
amended to read: 
    155A.15 [APPOINTMENT OF AGENT FOR SERVICE OF PROCESS.] 
    Any person, firm, partnership, or corporation, not a 
resident of Minnesota, who engages in Minnesota in the practices 
regulated in sections 155A.01 to 155A.18 this chapter shall file 
with the commissioner the name and address of a duly authorized 
agent for service of legal process, which agent for service 
shall be a resident of the state of Minnesota.  
    Sec. 27.  Minnesota Statutes 1992, section 155A.16, is 
amended to read: 
    155A.16 [VIOLATIONS; PENALTIES.] 
    Any person who violates any of the provisions of sections 
155A.01 to 155A.18 shall be this chapter is guilty of a 
misdemeanor and upon conviction may be sentenced to imprisonment 
for not more than 90 days or fined not more than $700, or both, 
per violation.  
    Sec. 28.  [REPEALER.] 
    (a) Minnesota Statutes 1992, sections 155A.11; 155A.12; 
155A.13; and 155A.18, are repealed.  
    (b) Minnesota Rules, parts 2642.0310, subparts 3, 4, and 5; 
2642.0330, subparts 3 and 4; 2642.0800; 2642.0810; 2644.0310, 
subparts 2, 3, and 4; 2644.0800; and 2644.0810, are repealed. 
    Sec. 29.  [EFFECTIVE DATE.] 
    Section 11 is effective the day following final enactment. 
    Presented to the governor May 12, 1993 
    Signed by the governor May 14, 1993, 10:03 p.m.