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Key: (1) language to be deleted (2) new language

                            CHAPTER 164-H.F.No. 1442 
                  An act relating to health; occupations and 
                  professions; modifying provisions relating to the 
                  office of mental health practice; licensing of 
                  chemical dependency counselors and hearing instrument 
                  dispensers; establishing an advisory council; 
                  providing penalties; amending Minnesota Statutes 1994, 
                  sections 148B.66, subdivision 1; 148B.68, subdivision 
                  1; 148C.01; 148C.02; 148C.03, subdivision 1, and by 
                  adding a subdivision; 148C.04, subdivisions 1, 2, 3, 
                  and 4; 148C.05; 148C.06; 148C.07; 148C.08; 148C.09; 
                  148C.10; 148C.11; 153A.13; 153A.14; 153A.15, 
                  subdivisions 1 and 2; 153A.17; 153A.18; 153A.19; 
                  214.01, subdivision 2; 214.10, subdivision 8; and 
                  214.103, subdivision 1; proposing coding for new law 
                  in Minnesota Statutes, chapters 148C; and 153A; 
                  repealing Minnesota Statutes 1994, sections 148B.62; 
                  148C.01, subdivision 8; 148C.03, subdivisions 2 and 3; 
                  148C.035; 148C.09, subdivision 3; and 153A.19, 
                  subdivision 1; Minnesota Rules, chapters 4692; and 
                  4745. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 148B.66, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COOPERATION.] An unlicensed mental health 
        practitioner who is the subject of an investigation, or who is 
        questioned in connection with an investigation, by or on behalf 
        of the office of mental health practice shall cooperate fully 
        with the investigation.  Cooperation includes responding fully 
        and promptly to any question raised by or on behalf of the 
        office relating to the subject of the investigation, whether 
        tape recorded or not, and providing copies of client records, as 
        reasonably requested by the office, to assist the office in its 
        investigation, and appearing at conferences or hearings 
        scheduled by the commissioner.  If the office does not have a 
        written consent from a client permitting access to the client's 
        records, the unlicensed mental health practitioner shall delete 
        any data in the record that identifies the client before 
        providing it to the board office.  The office shall maintain any 
        records obtained pursuant to this section as investigative data 
        pursuant to section 13.41.  If an unlicensed mental health 
        practitioner refuses to give testimony or produce any documents, 
        books, records, or correspondence on the basis of the fifth 
        amendment to the Constitution of the United States, the 
        commissioner may compel the unlicensed mental health 
        practitioner to provide the testimony or information; however, 
        the testimony or evidence may not be used against the 
        practitioner in any criminal proceeding. Challenges to requests 
        of the office may be brought before the appropriate agency or 
        court. 
           Sec. 2.  Minnesota Statutes 1994, section 148B.68, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITED CONDUCT.] The commissioner may 
        impose disciplinary action as described in section 148B.69 
        against any unlicensed mental health practitioner.  The 
        following conduct is prohibited and is grounds for disciplinary 
        action: 
           (a) Conviction of a crime, including a finding or verdict 
        of guilt, an admission of guilt, or a no contest plea, in any 
        court in Minnesota or any other jurisdiction in the United 
        States, reasonably related to the provision of mental health 
        services.  Conviction, as used in this subdivision, includes a 
        conviction of an offense which, if committed in this state, 
        would be deemed a felony or gross misdemeanor without regard to 
        its designation elsewhere, or a criminal proceeding where a 
        finding or verdict of guilty is made or returned but the 
        adjudication of guilt is either withheld or not entered. 
           (b) Conviction of crimes against persons.  For purposes of 
        this chapter, a crime against a person means violations of the 
        following:  sections 609.185; 609.19; 609.195; 609.20; 609.205; 
        609.21; 609.215; 609.221; 609.222; 609.223; 609.224; 609.23; 
        609.231; 609.235; 609.24; 609.245; 609.25; 609.255; 609.26, 
        subdivision 1, clause (1) or (2); 609.265; 609.342; 609.343; 
        609.344; 609.345; 609.365; 609.498, subdivision 1; 609.50, 
        clause (1); 609.561; 609.562; and 609.595. 
           (c) Failure to comply with the self-reporting requirements 
        of section 148B.63, subdivision 6 7. 
           (d) Engaging in sexual contact with a client or former 
        client as defined in section 148A.01, or engaging in contact 
        that may be reasonably interpreted by a client as sexual, or 
        engaging in any verbal behavior that is seductive or sexually 
        demeaning to the patient, or engaging in sexual exploitation of 
        a client or former client. 
           (e) Advertising that is false, fraudulent, deceptive, or 
        misleading. 
           (f) Conduct likely to deceive, defraud, or harm the public; 
        or demonstrating a willful or careless disregard for the health, 
        welfare, or safety of a client; or any other practice that may 
        create unnecessary danger to any client's life, health, or 
        safety, in any of which cases, proof of actual injury need not 
        be established. 
           (g) Adjudication as mentally incompetent, or as a person 
        who is dangerous to self, or adjudication pursuant to chapter 
        253B, as chemically dependent, mentally ill, mentally retarded, 
        mentally ill and dangerous to the public, or as a sexual 
        psychopathic personality or sexually dangerous person. 
           (h) Inability to provide mental health services with 
        reasonable safety to clients. 
           (i) The habitual overindulgence in the use of or the 
        dependence on intoxicating liquors. 
           (j) Improper or unauthorized personal or other use of any 
        legend drugs as defined in chapter 151, any chemicals as defined 
        in chapter 151, or any controlled substance as defined in 
        chapter 152. 
           (k) Revealing a communication from, or relating to, a 
        client except when otherwise required or permitted by law. 
           (l) Failure to comply with a client's request made under 
        section 144.335, or to furnish a client record or report 
        required by law. 
           (m) Splitting fees or promising to pay a portion of a fee 
        to any other professional other than for services rendered by 
        the other professional to the client. 
           (n) Engaging in abusive or fraudulent billing practices, 
        including violations of the federal Medicare and Medicaid laws 
        or state medical assistance laws. 
           (o) Failure to make reports as required by section 148B.63, 
        or cooperate with an investigation of the office. 
           (p) Obtaining money, property, or services from a client, 
        other than reasonable fees for services provided to the client, 
        through the use of undue influence, harassment, duress, 
        deception, or fraud. 
           (q) Undertaking or continuing a professional relationship 
        with a client in which the objectivity of the professional would 
        be impaired. 
           (r) Failure to provide the client with a copy of the client 
        bill of rights or violation of any provision of the client bill 
        of rights. 
           (s) Violating any order issued by the commissioner. 
           (t) Failure to comply with sections 148B.60 to 148B.71, and 
        the rules adopted under those sections. 
           (u) Failure to comply with any additional disciplinary 
        grounds established by the commissioner by rule. 
           (v) Revocation, suspension, restriction, limitation, or 
        other disciplinary action against the mental health 
        practitioner's license, certificate, registration, or right of 
        practice in this or another state or jurisdiction, for offenses 
        that would be subject to disciplinary action in this state, or 
        failure to report to the office of mental health practice that 
        charges regarding the practitioner's license, certificate, 
        registration, or right of practice have been brought in this or 
        another state or jurisdiction. 
           Sec. 3.  Minnesota Statutes 1994, section 148C.01, is 
        amended to read: 
           148C.01 [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY DEFINITIONS.] For the 
        purposes of sections 148C.01 to 148C.11 and 595.02, subdivision 
        1, the following terms have the meanings given them.  
           Subd. 2.  [LICENSED CHEMICAL DEPENDENCY ALCOHOL AND DRUG 
        COUNSELOR.] "Licensed chemical dependency Alcohol and drug 
        counselor" or "counselor" means a person who: 
           (1) uses, as a representation to the public, any title or 
        description of services incorporating the words "licensed 
        chemical dependency alcohol and drug counselor"; 
           (2) offers to render professional chemical dependency 
        alcohol and drug counseling services relative to the abuse of or 
        the dependency on alcohol or other drugs to the general public 
        or groups, organizations, corporations, institutions, or 
        government agencies for compensation, implying that the person 
        is licensed and trained, experienced or expert in chemical 
        dependency alcohol and drug counseling; and 
           (3) holds a valid license issued under sections 148C.01 to 
        148C.11 to engage in the practice of chemical dependency alcohol 
        and drug counseling; or 
           (4) is an applicant for an alcohol and drug counseling 
        license.  
           Subd. 3.  [OTHER TITLES.] For the purposes of sections 
        148C.01 to 148C.11 and 595.02, subdivision 1, all individuals, 
        except as provided in section 148C.11, who practice chemical 
        dependency counseling as defined in subdivision 2, regardless of 
        their titles, shall be covered by sections 148C.01 to 148C.11.  
        This includes, but is not limited to, individuals who may refer 
        to themselves as "alcoholism counselor," "drug abuse therapist," 
        "chemical dependency recovery counselor," "chemical dependency 
        relapse prevention planner," "addiction therapist," "chemical 
        dependency intervention specialist," "family chemical dependency 
        counselor," "chemical health specialist," "chemical health 
        coordinator," and "substance abuse counselor." 
           Subd. 4.  [CHEMICAL DEPENDENCY.] "Chemical Dependency" 
        means a condition in which a person pathologically uses alcohol 
        or a controlled substance as defined in chapter 152, accompanied 
        by physical manifestation of increased tolerance to the chemical 
        or chemicals being used, or withdrawal syndrome following 
        cessation of chemical use. maladaptive pattern of substance use, 
        leading to clinically significant impairment or distress, as 
        manifested by three or more of the following occurring at any 
        time in the same 12-month period: 
           (a) tolerance, as defined by either of the following: 
           (1) a need for markedly increased amounts of the substance 
        to achieve intoxication or desired effect; or 
           (2) a markedly diminished effect with continued use of the 
        same amount of the substance; 
           (b) withdrawal, as manifested by either of the following: 
           (1) the characteristic withdrawal syndrome for the 
        substance, as referred to in the most current edition of the 
        Diagnostic and Statistical Manual of Mental Disorders; or 
           (2) the same or closely related substance is taken to 
        relieve or avoid withdrawal symptoms; 
           (c) the substance is often taken in larger amounts or over 
        a longer period than was intended; 
           (d) a persistent desire or unsuccessful efforts to cut down 
        or control substance use; 
           (e) a great deal of time is spent in activities necessary 
        to obtain the substance, use the substance, or recover from its 
        effects; 
           (f) important social, occupational, or recreational 
        activities are given up or reduced because of the substance use; 
        or 
           (g) substance use continues despite knowledge of having had 
        a persistent or recurrent physical or psychological problem that 
        was likely to have been caused or exacerbated by the substance. 
           Subd. 5.  [CHEMICAL ABUSE.] "Chemical Abuse" means a 
        pattern of inappropriate and harmful use of alcohol or a 
        controlled substance governed by chapter 152.  Chemical abuse 
        includes inappropriate and harmful patterns of chemical use that 
        are linked to specific situations in an individual's life such 
        as loss of a job, death of a loved one, or a sudden change in 
        life circumstances.  Chemical abuse does not involve a pattern 
        of pathological use, but it may progress to pathological 
        use. maladaptive pattern of substance use leading to clinically 
        significant impairment or distress, as manifested by one or more 
        of the following occurring at any time during the same 12-month 
        period:  
           (1) recurrent substance use resulting in a failure to 
        fulfill major role obligations at work, school, or home; 
           (2) recurrent substance use in situations in which it is 
        physically hazardous; 
           (3) recurrent substance-related legal problems; and 
           (4) continued substance use despite having persistent or 
        recurrent social or interpersonal problems caused or exacerbated 
        by the effects of the substance. 
        For substance use to be considered abuse, the individual must 
        never have met the criteria for dependence in subdivision 4 for 
        the class of substance in question.  
           Subd. 6.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of health, or a designee. 
           Subd. 7.  [ACCREDITED SCHOOL OR EDUCATIONAL PROGRAM OF 
        CHEMICAL DEPENDENCY COUNSELING.] "Accredited school or 
        educational program of chemical dependency counseling" means a 
        school of chemical dependency alcohol and drug counseling or 
        other educational program that has been recognized by the 
        commissioner, university, college, or other post-secondary 
        education program that offers no less than the required number 
        of education and practicum hours as described in section 
        148C.04, subdivision 3, and the core functions as defined in 
        subdivision 9, and that, at the time the student completes the 
        program, is accredited by a regional accrediting association 
        whose standards are substantially equivalent to those of the 
        North Central Association of Colleges and Post-Secondary 
        Education Institutions or an accrediting association that 
        evaluates schools of alcohol and drug counseling for inclusion 
        of the education, practicum, and core function standards in this 
        chapter.  
           Subd. 8.  [PRIVATE PRACTICE.] "Private practice" means 
        chemical dependency counseling practice conducted by an 
        individual who is either self-employed or a member of a 
        partnership or a group practice, rather than being employed by a 
        public agency or an agency licensed under chapter 245A.  
           Subd. 9.  [TWELVE CORE FUNCTIONS.] "Twelve Core functions" 
        means the following services provided in chemical alcohol and 
        drug dependency treatment:  
           (1) "Screening" means the process by which a client is 
        determined appropriate and eligible for admission to a 
        particular program.; 
           (2) "Intake" means the administrative and initial 
        assessment procedures for admission to a program.; 
           (3) "Orientation" means describing to the client the 
        general nature and goals of the program; rules governing client 
        conduct and infractions that can lead to disciplinary action or 
        discharge from the program; in a nonresidential program, the 
        hours during which services are available; treatment costs to be 
        borne by the client, if any; and client's rights.; 
           (4) "Assessment" means those procedures by which a 
        counselor identifies and evaluates an individual's strengths, 
        weaknesses, problems, and needs for the development of the 
        treatment plan.; 
           (5) "Treatment planning" means the process by which the 
        counselor and the client identify and rank problems needing 
        resolution; establish agreed upon immediate and long-term goals; 
        and decide on a treatment process and the sources to be 
        utilized.; 
           (6) "Counseling" means the utilization of special skills to 
        assist individuals, families, or groups in achieving objectives 
        through exploration of a problem and its ramifications; 
        examination of attitudes and feelings; consideration of 
        alternative solutions; and decision making.; 
           (7) "Case management" means activities which bring 
        services, agencies, resources, or people together within a 
        planned framework of action toward the achievement of 
        established goals.; 
           (8) "Crisis intervention" means those services which 
        respond to an alcohol or other drug user's needs during acute 
        emotional or physical distress.; 
           (9) "Client education" means the provision of information 
        to clients who are receiving or seeking counseling concerning 
        alcohol and other drug abuse and the available services and 
        resources.; 
           (10) "Referral" means identifying the needs of the client 
        which cannot be met by the counselor or agency and assisting the 
        client to utilize the support systems and available community 
        resources.; 
           (11) "Reports and record keeping" means charting the 
        results of the assessment and treatment plan, writing reports, 
        progress notes, discharge summaries, and other client-related 
        data.; and 
           (12) "Consultation with other professionals regarding 
        client treatment and services" means communicating with other 
        professionals in regard to client treatment and services to 
        assure comprehensive, quality care for the client. 
           Subd. 10.  [PRACTICE OF ALCOHOL AND DRUG 
        COUNSELING.] "Practice of alcohol and drug counseling" means the 
        observation, description, evaluation, interpretation, and 
        modification of human behavior as it relates to the harmful or 
        pathological use or abuse of alcohol or other drugs by the 
        application of the core functions.  The practice of alcohol and 
        drug counseling includes, but is not limited to, the following 
        activities, regardless of whether the counselor receives 
        compensation for the activities: 
           (1) assisting clients who use alcohol or drugs, evaluating 
        that use, and recognizing dependency if it exists; 
           (2) assisting clients with alcohol or other drug problems 
        to gain insight and motivation aimed at resolving those 
        problems; 
           (3) providing experienced professional guidance, 
        assistance, and support for the client's efforts to develop and 
        maintain a responsible functional lifestyle; 
           (4) recognizing problems outside the scope of the 
        counselor's training, skill, or competence and referring the 
        client to other appropriate professional services; 
           (5) assessing the level of alcohol or other drug use 
        involvement; 
           (6) individual planning to prevent a return to harmful 
        alcohol or chemical use; 
           (7) alcohol and other drug abuse education for clients; 
           (8) consultation with other professionals; and 
           (9) providing the above services, as needed, to family 
        members or others who are directly affected by someone using 
        alcohol or other drugs. 
           Subd. 11.  [SEXUAL CONTACT.] "Sexual contact" means contact 
        as defined in section 148A.01 with a client or former client, or 
        engaging in contact that may reasonably be interpreted by a 
        client as sexual, or engaging in any verbal behavior that is 
        seductive or sexually demeaning to the client, or engaging in 
        sexual exploitation of a client or former client. 
           Subd. 12.  [SUPERVISED ALCOHOL AND DRUG COUNSELING 
        EXPERIENCE.] Except during the transition period, "supervised 
        alcohol and drug counseling experience" means practical 
        experience gained by a student, volunteer, or intern, and 
        supervised by a person licensed under this chapter; either 
        before, during, or after the student completes a program from an 
        accredited school or education program of alcohol and drug 
        counseling. 
           Subd. 13.  [ALCOHOL AND DRUG COUNSELING 
        PRACTICUM.] "Alcohol and drug counseling practicum" means formal 
        experience gained by a student and supervised by a person 
        licensed under this chapter, in an accredited school or program 
        of alcohol and drug counseling as part of the education 
        requirements of this chapter. 
           Subd. 14.  [APPLICANT.] "Applicant" means a person seeking 
        a license under this chapter. 
           Subd. 15.  [CLIENT.] "Client" means an individual who is 
        the recipient of any of the alcohol and drug counseling services 
        described in section 148C.01. 
           Subd. 16.  [COMPENSATION.] "Compensation" means a fee, 
        salary, reward, payment, or the expectation of payment from a 
        client or a client's agent, insurer, employer, or other 
        representative for providing alcohol and drug counseling 
        services.  Compensation does not include bartering for services. 
           Sec. 4.  [148C.015] [SCOPE; DEFINITIONS.] 
           Before engaging in the practice of alcohol and drug 
        counseling as defined in section 148C.01, all persons, except as 
        provided in section 148C.11, regardless of their titles, must 
        obtain a license as provided in this chapter. 
           Sec. 5.  Minnesota Statutes 1994, section 148C.02, is 
        amended to read: 
           148C.02 [CHEMICAL DEPENDENCY COUNSELING ALCOHOL AND DRUG 
        COUNSELORS LICENSING ADVISORY COUNCIL.] 
           Subdivision 1.  [MEMBERSHIP; STAFF.] (a) The chemical 
        dependency counseling alcohol and drug counselors licensing 
        advisory council consists of 13 members.  The commissioner shall 
        appoint: 
           (1) except for those members initially appointed, seven 
        members who must be licensed chemical alcohol and drug 
        dependency counselors; 
           (2) three members who must be public members as defined by 
        section 214.02; 
           (3) one member who must be a director or coordinator of an 
        accredited chemical alcohol and drug dependency training 
        program; and 
           (4) one member who must be a former consumer of chemical 
        alcohol and drug dependency counseling service and who must have 
        received the service more than three years before the person's 
        appointment. 
           The American Indian advisory committee to the department of 
        human services chemical dependency office shall appoint the 
        remaining member. 
           (b) The provision of staff, administrative services, and 
        office space are as provided in chapter 214.  
           Subd. 2.  [DUTIES.] (a) The commissioner, after 
        consultation with the advisory council, shall: 
           (1) develop rules for the licensure of chemical dependency 
        counselors; and provide advice and recommendations to the 
        commissioner on the development of rules for the licensure of 
        alcohol and drug counselors; 
           (2) administer or contract for the competency testing, 
        licensing, and ethical review of chemical dependency counselors. 
        provide advice and recommendations to the commissioner on the 
        development of standards and procedures for the competency 
        testing, licensing, and review of alcohol and drug counselors' 
        professional conduct; 
           (3) provide advice and recommendations to the commissioner 
        in disciplinary cases in the areas of counselor competency 
        issues, counselor practice issues, and counselor impairment 
        issues. 
           (b) The advisory council shall form an education committee, 
        including a chair, and shall advise the commissioner on the 
        administration of education requirements in section 148C.05, 
        subdivision 2. 
           Subd. 3.  [TERMS.] The terms, compensation, and removal of 
        members shall be as provided in section 15.059, except that 
        notwithstanding any contrary law, the advisory council shall not 
        expire. 
           Sec. 6.  Minnesota Statutes 1994, section 148C.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] The commissioner shall, after 
        consultation with the advisory council or a subcommittee or the 
        special licensing criteria committee established under section 
        148C.11, subdivision 3, paragraph (b): 
           (a) adopt and enforce rules for licensure of chemical 
        dependency alcohol and drug counselors and for, including 
        establishing standards and methods of determining whether 
        applicants and licensees are qualified under section 148C.04.  
        The rules must provide for examinations and establish standards 
        for the regulation of professional conduct.  The rules must be 
        designed to protect the public; 
           (b) adopt rules establishing standards and methods of 
        determining whether applicants and licensees are qualified under 
        section 148C.04.  The rules must provide for examinations; 
        establish standards for professional conduct, including adoption 
        of a professional code of ethics; and provide for sanctions as 
        described in section 148C.09; 
           (c) hold or contract for the administration of examinations 
        at least twice a year to assess applicants' knowledge and 
        skills.  The examinations must be written and oral and may be 
        administered by the commissioner or by a nonprofit agency 
        private organization under contract with the commissioner to 
        administer the licensing examinations.  Examinations must 
        minimize cultural bias and must be balanced in various theories 
        relative to practice of chemical dependency alcohol and drug 
        counseling; 
           (d) (c) issue licenses to individuals qualified under 
        sections 148C.01 to 148C.11; 
           (e) (d) issue copies of the rules for licensure to all 
        applicants; 
           (f) (e) adopt rules to establish and implement procedures, 
        including a standard disciplinary process and a code of ethics, 
        to ensure that individuals licensed as chemical dependency 
        counselors will comply with the commissioner's rules rules of 
        professional conduct; 
           (g) establish, maintain, and publish annually a register of 
        current licensees; 
           (f) carry out disciplinary actions against licensees; 
           (g) establish, with the advice and recommendations of the 
        advisory council, written internal operating procedures for 
        receiving and investigating complaints and for taking 
        disciplinary actions as appropriate.  Establishment of the 
        operating procedures are not subject to rulemaking procedures 
        under chapter 14; 
           (h) establish initial and renewal application and 
        examination fees sufficient to cover operating expenses of the 
        commissioner; 
           (i) educate the public about the existence and content of 
        the rules for chemical dependency counselor licensing to enable 
        consumers to file complaints against licensees who may have 
        violated the rules; and 
           (j) (i) evaluate the rules in order to refine and improve 
        the methods used to enforce the commissioner's standards.; 
           (j) set, collect, and adjust license fees for alcohol and 
        drug counselors so that the total fees collected will as closely 
        as possible equal anticipated expenditures during the biennium, 
        as provided in section 16A.1285; fees for initial and renewal 
        application and examinations; late fees for counselors who 
        submit license renewal applications after the renewal deadline; 
        and a surcharge fee.  The surcharge fee must include an amount 
        necessary to recover, over a five-year period, the 
        commissioner's direct expenditures for the adoption of the rules 
        providing for the licensure of alcohol and drug counselors.  All 
        fees received shall be deposited in the state treasury and 
        credited to the special revenue fund; and 
           (k) prepare reports on activities related to the licensure 
        of alcohol and drug counselors according to this subdivision by 
        October 1 of each even-numbered year.  Copies of the reports 
        shall be delivered to the legislature in accordance with section 
        3.195 and to the governor.  The reports shall contain the 
        following information on the commissioner's activities relating 
        to the licensure of chemical dependency counselors, for the 
        two-year period ending the previous June 30: 
           (1) a general statement of the activities; 
           (2) the number of staff hours spent on the activities; 
           (3) the receipts and disbursements of funds; 
           (4) the names of advisory council members and their 
        addresses, occupations, and dates of appointment and 
        reappointment; 
           (5) the names and job classifications of employees; 
           (6) a brief summary of rules proposed or adopted during the 
        reporting period with appropriate citations to the State 
        Register and published rules; 
           (7) the number of persons having each type of license 
        issued by the commissioner as of June 30 in the year of the 
        report; 
           (8) the locations and dates of the administration of 
        examinations by the commissioner; 
           (9) the number of persons examined by the commissioner with 
        the persons subdivided into groups showing age categories, sex, 
        and states of residency; 
           (10) the number of persons licensed by the commissioner 
        after taking the examinations referred to in clause (8) with the 
        persons subdivided by age categories, sex, and states of 
        residency; 
           (11) the number of persons not licensed by the commissioner 
        after taking the examinations referred to in clause (8) with the 
        persons subdivided by age categories, sex, and states of 
        residency; 
           (12) the number of persons not taking the examinations 
        referred to in clause (8) who were licensed by the commissioner 
        or who were denied licensing, the reasons for the licensing or 
        denial, and the persons subdivided by age categories, sex, and 
        states of residency; 
           (13) the number of persons previously licensed by the 
        commissioner whose licenses were revoked, suspended, or 
        otherwise altered in status with brief statements of the reasons 
        for the revocation, suspension, or alteration; 
           (14) the number of written and oral complaints and other 
        communications received by the commissioner which allege or 
        imply a violation of a statute or rule which the commissioner is 
        empowered to enforce; 
           (15) a summary, by specific category, of the substance of 
        the complaints and communications referred to in clause (14) 
        and, for each specific category, the responses or dispositions; 
        and 
           (16) any other objective information which the commissioner 
        believes will be useful in reviewing the commissioner's 
        activities. 
           Sec. 7.  Minnesota Statutes 1994, section 148C.03, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [PROFESSIONAL ACCOUNTABILITY.] The commissioner 
        shall maintain and keep current a file containing the reports 
        and complaints filed against alcohol and drug counselors within 
        the commissioner's jurisdiction. 
           Sec. 8.  [148C.0351] [PROCEDURES FOR ADMISSION TO 
        LICENSURE.] 
           Subdivision 1.  [APPLICATION FORMS.] Unless exempted under 
        section 148C.11, a person who practices alcohol and drug 
        counseling in Minnesota must: 
           (1) apply to the commissioner for a license to practice 
        alcohol and drug counseling on forms provided by the 
        commissioner; 
           (2) include with the application a statement that the 
        statements in the application are true and correct to the best 
        of the applicant's knowledge and belief; 
           (3) include with the application a nonrefundable 
        application fee specified by the commissioner; 
           (4) include with the application information describing the 
        applicant's experience, including the number of years and months 
        the applicant has practiced alcohol and drug counseling as 
        defined in section 148C.01; 
           (5) include with the application the applicant's business 
        address and telephone number, or home address and telephone 
        number if the applicant conducts business out of the home, and 
        if applicable, the name of the applicant's supervisor, manager, 
        and employer; 
           (6) include with the application a written and signed 
        authorization for the commissioner to make inquiries to 
        appropriate state regulatory agencies and private credentialing 
        organizations in this or any other state where the applicant has 
        practiced alcohol and drug counseling; and 
           (7) complete the application in sufficient detail for the 
        commissioner to determine whether the applicant meets the 
        requirements for filing.  The commissioner may ask the applicant 
        to provide additional information necessary to clarify 
        incomplete or ambiguous information submitted in the application.
           Subd. 2.  [FEE FOR LATE RENEWAL.] A licensee must pay a 
        late fee and the renewal fee set by rule. 
           Subd. 3.  [REQUIREMENT TO MAINTAIN CURRENT INFORMATION.] An 
        alcohol and drug counselor must notify the commissioner with 30 
        days of the occurrence of any of the following: 
           (1) a change of name, address, place of employment, and 
        home or business telephone number; and 
           (2) a settlement or award based on negligent or intentional 
        acts committed in providing alcohol and drug counseling services.
           Sec. 9.  Minnesota Statutes 1994, section 148C.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL REQUIREMENTS.] The commissioner 
        shall issue licenses to the individuals qualified under sections 
        148C.01 to 148C.11 to practice chemical dependency alcohol and 
        drug counseling. 
           Sec. 10.  Minnesota Statutes 1994, section 148C.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEE.] Each applicant shall pay a nonrefundable 
        fee set by the commissioner pursuant to section 148C.03.  Fees 
        paid to the commissioner shall be deposited in the special 
        revenue fund. 
           Sec. 11.  Minnesota Statutes 1994, section 148C.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LICENSING REQUIREMENTS FOR CHEMICAL DEPENDENCY 
        COUNSELOR ALCOHOL AND DRUG COUNSELORS; EVIDENCE.] (a) To be 
        licensed as a chemical dependency counselor, an applicant must 
        meet For five years after the effective date of the rules 
        authorized in section 148C.03, the applicant, unless qualified 
        for initial licensure under this subdivision, must furnish 
        evidence satisfactory to the commissioner that the applicant has 
        met all the requirements in clauses (1) to (3).  
           (1) Except as provided in subdivision 4, the applicant must 
        have received an associate degree including 270 clock hours of 
        chemical dependency alcohol and drug counseling education from 
        an accredited school or educational program and 880 clock hours 
        of chemical dependency practicum.; 
           (2) The applicant must have completed a written case 
        presentation and satisfactorily passed an oral examination that 
        demonstrates competence in the 12 core functions.; and 
           (3) The applicant must have satisfactorily passed a written 
        examination as established by the commissioner.  
           (b) To be licensed as a chemical dependency counselor 
        Unless the applicant qualifies for licensure under this 
        subdivision, an applicant must furnish evidence satisfactory to 
        the commissioner that the applicant has met the requirements of 
        paragraph (a), clauses (1) to (3).  
           Beginning two years after the effective date of the rules 
        authorized in section 148C.03, subdivision 1, no person may be 
        licensed without meeting the requirements in section 148C.04, 
        subdivision 4, paragraph (a), clauses (2) and (3), or the 
        special licensing criteria established pursuant to section 
        148C.11, subdivision 4. 
           Sec. 12.  Minnesota Statutes 1994, section 148C.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ADDITIONAL LICENSING REQUIREMENTS.] Beginning 
        five years after the effective date of the rules authorized in 
        section 148C.03, subdivision 1, an applicant for licensure must 
        have received a bachelor's degree in a human services area from 
        an accredited school or educational program, and must have 
        completed 480 clock hours of chemical dependency alcohol and 
        drug counseling education from an accredited school or 
        educational program and 880 clock hours of chemical dependency 
        alcohol and drug counseling practicum.  
           Sec. 13.  Minnesota Statutes 1994, section 148C.05, is 
        amended to read: 
           148C.05 [LICENSE RENEWAL REQUIREMENTS; LAPSE.] 
           Subdivision 1.  [RENEWAL REQUIREMENTS.] Licensees shall 
        renew licenses at the time and in the manner established by the 
        commissioner. To renew a license, an applicant must: 
           (1) annually complete a renewal application on a form 
        provided by the commissioner and submit the annual renewal fee 
        by the deadline; and 
           (2) submit additional information if requested by the 
        commissioner to clarify information presented in the renewal 
        application.  This information must be submitted within 30 days 
        of the commissioner's request.  
           Subd. 2.  [CONTINUING EDUCATION.] At the time of 
        renewal, if required, each licensee shall furnish evidence 
        satisfactory to the commissioner that the licensee has completed 
        at least the equivalent of 40 clock hours of continuing 
        professional postdegree education every during the past two 
        years, in programs approved by the commissioner, after 
        consultation with the education committee, and that the licensee 
        continues to be qualified to practice under sections 148C.01 to 
        148C.11. 
           Subd. 3.  [LATE RENEWALS.] The deadline to renew licensure 
        is the date set by the commissioner.  An application submitted 
        after that date but before the renewal deadline shall be a late 
        renewal and must be accompanied by a late fee as required in 
        section 148C.0351, subdivision 2. 
           Subd. 4.  [LAPSE IN LICENSURE.] An applicant's license 
        shall lapse if the renewal application is not received by the 
        date set by the commissioner.  An applicant whose license has 
        lapsed less than two years must meet all the requirements of 
        this chapter except the examination requirements of section 
        148C.04.  An applicant whose license has lapsed for two years or 
        more must meet all the requirements of this chapter except the 
        continuing education requirement of subdivision 2.  License 
        renewal fees of applicants whose license has lapsed shall not be 
        prorated over the time remaining in the annual licensure period. 
           Sec. 14.  Minnesota Statutes 1994, section 148C.06, is 
        amended to read: 
           148C.06 [TRANSITION PERIOD.] 
           For two years from the effective date of the rules 
        authorized in section 148C.03, subdivision 1, the commissioner 
        shall issue a license without examination to an applicant if the 
        applicant meets one of the following qualifications:  
           (a) is credentialed as a certified chemical dependency 
        counselor (CCDC) or certified chemical dependency counselor 
        reciprocal (CCDCR) by the Institute for Chemical Dependency 
        Professionals of Minnesota, Inc.; 
           (b) has three years or 6,000 hours of supervised chemical 
        dependency alcohol and drug counselor experience as defined by 
        the 12 core functions, 270 clock hours of chemical dependency 
        alcohol and drug training with a minimum of 60 hours of this 
        training occurring within the past five years, 300 hours 
        of chemical dependency alcohol and drug practicum, and has 
        successfully completed the requirements in section 148C.04, 
        subdivision 3, paragraph (a), clauses (2) and (3); 
           (c) has five years or 10,000 hours of chemical dependency 
        supervised alcohol and drug counselor experience as defined by 
        the 12 core functions, 270 clock hours of chemical dependency 
        alcohol and drug training with a minimum of 60 hours of this 
        training occurring with the past five years, and has 
        successfully completed the requirements in section 148C.04, 
        subdivision 3, paragraph (a), clause (2) or (3), or is 
        credentialed as a certified chemical dependency practitioner 
        (CCDP) by the Institute for Chemical Dependency Professionals of 
        Minnesota, Inc.; or 
           (d) has seven years or 14,000 hours of supervised chemical 
        dependency alcohol and drug counselor experience as defined by 
        the 12 core functions and 270 clock hours of chemical dependency 
        alcohol and drug training with a minimum of 60 hours of this 
        training occurring within the past five years; or 
           (e) has met the special licensing criteria established 
        pursuant to section 148C.11.  
           Beginning two years after the effective date of the rules 
        authorized in section 148C.03, subdivision 1, no person may be 
        licensed without meeting the requirements in section 148C.04, 
        subdivision 3, paragraph (a), clauses (2) and (3). 
           Sec. 15.  Minnesota Statutes 1994, section 148C.07, is 
        amended to read: 
           148C.07 [RECIPROCITY.] 
           The commissioner shall issue an appropriate license to an 
        individual who holds a current license or other credential to 
        engage in alcohol and drug counseling from another jurisdiction 
        if the commissioner finds that the requirements for that 
        credential are substantially similar to the requirements in 
        sections 148C.01 to 148C.11.  
           Sec. 16.  Minnesota Statutes 1994, section 148C.08, is 
        amended to read: 
           148C.08 [NONTRANSFERABILITY OF LICENSES.] 
           A chemical dependency An alcohol and drug counselor license 
        is not transferable. 
           Sec. 17.  Minnesota Statutes 1994, section 148C.09, is 
        amended to read: 
           148C.09 [DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.] 
           Subdivision 1.  [GROUNDS.] The commissioner may refuse to 
        grant a license to, or may suspend, revoke, or restrict the 
        license of an individual if the commissioner, after a hearing 
        under the contested case provisions of chapter 14, determines 
        that a licensee or applicant:  
           (1) is incompetent to engage in chemical dependency alcohol 
        and drug counseling practice or is found to be engaged 
        in chemical dependency alcohol and drug counseling practice in a 
        manner harmful or dangerous to a client or the public; 
           (2) has violated the rules of the commissioner or the 
        statutes the commissioner is empowered to enforce; or any law, 
        rule order, stipulation and consent order, agreement, or 
        settlement; 
           (3) has obtained or attempted to obtain a license or 
        license renewal by bribery or fraudulent misrepresentation; 
           (4) has knowingly made a false statement on the form 
        required by to be submitted to the commissioner for licensing or 
        license renewal; or 
           (5) has failed to obtain continuing education credits 
        required by the commissioner.; 
           (6) has failed to demonstrate the qualifications or satisfy 
        the requirements for a license contained in this chapter or 
        rules of the commissioner.  The burden of proof shall be upon 
        the applicant to demonstrate qualifications or satisfaction of 
        requirements; 
           (7) has been convicted of a crime, including a finding or 
        verdict of guilt, an admission of guilt, or a no contest plea, 
        in any court in Minnesota or any other jurisdiction in the 
        United States, reasonably related to the provision of alcohol 
        and drug counseling services.  Conviction, as used in this 
        subdivision, includes conviction of an offense which, if 
        committed in this state, would be deemed a felony or gross 
        misdemeanor without regard to its designation elsewhere, or a 
        criminal proceeding where a finding or verdict of guilty is made 
        or returned but the adjudication of guilt is either withheld or 
        not entered; 
           (8) has been convicted of a crime against another person.  
        For purposes of this chapter, a crime against another person 
        means an offense listed in section 148B.68, subdivision 1, 
        paragraph (b); 
           (9) has failed to comply with the self-reporting 
        requirements of section 148C.095, subdivision 7; 
           (10) has engaged in sexual contact with a client, or a 
        former client, as defined in section 148A.01, or has engaged in 
        conduct that may be reasonably interpreted by a client as 
        sexual, or has engaged in any verbal behavior that is seductive 
        or sexually demeaning to the client, or has engaged in sexual 
        exploitation of a client or former client; 
           (11) has engaged in false, fraudulent, deceptive, or 
        misleading advertising; 
           (12) has engaged in conduct likely to deceive, defraud, or 
        harm the public; or has demonstrated a willful or careless 
        disregard for the health, welfare, or safety of a client; or any 
        other practice that may create unnecessary danger to any 
        client's life, health, or safety, in any of which cases, proof 
        of actual injury need not be established; 
           (13) has been adjudicated as mentally incompetent, or as a 
        person who has a psychopathic personality, or who is dangerous 
        to self, or has been adjudicated as chemically dependent, 
        mentally ill, mentally retarded, or mentally ill and dangerous 
        to the public pursuant to chapter 253B; 
           (14) is unable to provide alcohol and drug counseling 
        services with reasonable safety to clients; 
           (15) is habitually overindulgent in the use of or the 
        dependence on alcohol; 
           (16) has engaged in the improper or unauthorized personal 
        or other use of any legend drugs as defined in section 151.01, 
        any chemicals as defined in section 151.01, or any controlled 
        substance as defined in section 152.01; 
           (17) reveals a communication from, or relating to, a client 
        except when required or permitted by law; 
           (18) fails to comply with a client's request for health 
        records made under section 144.335, or to furnish a client 
        record or report required by law; 
           (19) has engaged in fee splitting or promises to pay a 
        portion of a fee to any other professional other than for 
        services rendered by the other professional to the client; 
           (20) has engaged in abusive or fraudulent billing 
        practices, including violations of the federal Medicare and 
        Medicaid laws or state medical assistance laws; 
           (21) fails to make reports as required by section 148C.095, 
        or cooperate with an investigation of the commissioner; 
           (22) obtains money, property, or services from a client, 
        other than reasonable fees for services provided to the client, 
        through the use of undue influence, harassment, duress, 
        deception, or fraud; 
           (23) undertakes or continues a professional relationship 
        with a client in which the objectivity of the alcohol and drug 
        counselor may be impaired; 
           (24) engages in conduct that constitutes grounds for 
        discipline as established by the commissioner in rule; or 
           (25) engages in bartering for services with a client. 
           Subd. 2.  [APPEAL, RESTORING A LICENSE.] For reasons it 
        finds sufficient, the commissioner may grant a license 
        previously refused, restore a license that has been revoked, or 
        reduce a period of suspension or restriction of a license.  If a 
        license is denied, suspended, restricted, or revoked, an 
        applicant or licensee may request a hearing under the contested 
        case provisions of chapter 14.  The commissioner may, for good 
        cause demonstrated by the applicant or counselor, grant a 
        license previously refused, restore a license that has been 
        revoked, or reduce a period of suspension or restriction of a 
        license.  The commissioner may impose any conditions or 
        limitations as the commissioner deems reasonable.  
           Subd. 3.  [ANNUAL REVIEW.] Suspension, revocation, or 
        restriction of a license shall be reviewed by the commissioner 
        at the request of the licensee against whom the disciplinary 
        action was taken.  
           Subd. 4.  [EVIDENCE.] In disciplinary actions alleging 
        violations of subdivision 1, paragraph (7), (8), (13), or (14), 
        a copy of the judgment or proceedings under the seal of the 
        court administrator or of the administrative agency that entered 
        the judgment or proceeding is admissible into evidence without 
        further authentication and constitutes prima facie evidence of 
        its contents. 
           Sec. 18.  [148C.091] [DISCIPLINARY ACTIONS.] 
           Subdivision 1.  [FORMS OF DISCIPLINARY ACTION.] When the 
        commissioner finds that an applicant or a licensed alcohol and 
        drug counselor has violated a provision or provisions of 
        sections 148C.01 to 148C.11, or rules promulgated under this 
        chapter, the commissioner may take one or more of the following 
        actions: 
           (1) refuse to grant a license; 
           (2) revoke the license; 
           (3) suspend the license; 
           (4) impose limitations or conditions; 
           (5) impose a civil penalty not exceeding $10,000 for each 
        separate violation, the amount of the civil penalty to be fixed 
        so as to deprive the counselor of any economic advantage gained 
        by reason of the violation charged or to reimburse the 
        commissioner for all costs of the investigation and proceeding; 
        including, but not limited to, the amount paid by the 
        commissioner for services from the office of administrative 
        hearings, attorney fees, court reports, witnesses, reproduction 
        of records, advisory council members' per diem compensation, 
        staff time, and expense incurred by advisory council members and 
        staff of the department; 
           (6) order the counselor to provide uncompensated 
        professional service under supervision at a designated public 
        hospital, clinic, or other health care institution; 
           (7) censure or reprimand the counselor; or 
           (8) any other action justified by the case. 
           Subd. 2.  [DISCOVERY; SUBPOENAS.] In all matters relating 
        to the commissioner's investigation and enforcement activities 
        related to alcohol and drug counselors, the commissioner of 
        health may issue subpoenas and compel the attendance of 
        witnesses and the production of all necessary papers, books, 
        records, documents, and other evidentiary materials.  Any person 
        failing or refusing to appear or testify regarding any matter 
        about which the person may be lawfully questioned or failing to 
        produce any papers, books, records, documents, or other 
        evidentiary materials in the matter to be heard, after having 
        been required by order of the commissioner or by a subpoena of 
        the commissioner to do so may, upon application by the 
        commissioner to the district court in any district, be ordered 
        to comply with the order or subpoena.  The commissioner may 
        administer oaths to witnesses or take their affirmation.  
        Depositions may be taken within or without the state in the 
        manner provided by law for the taking of depositions in civil 
        actions.  A subpoena or other process or paper may be served 
        upon a person it names anywhere within the state by any officer 
        authorized to serve subpoenas or other process or paper in civil 
        actions in the same manner as prescribed by law for service of 
        process issued out of the district court of this state. 
           Subd. 3.  [TEMPORARY SUSPENSION.] In addition to any other 
        remedy provided by law, the commissioner may, without a hearing, 
        temporarily suspend the right of an alcohol and drug counselor 
        to practice if the commissioner finds that the counselor has 
        violated a statute or rule that the commissioner has authority 
        to enforce and that continued practice by the practitioner would 
        create a serious risk of harm to others.  The suspension takes 
        effect upon service of a written order on the practitioner 
        specifying the statute or rule violated.  The order remains in 
        effect until the commissioner issues a final order in the matter 
        after a hearing or upon agreement between the commissioner and 
        the counselor.  Service of the order is effective if the order 
        is served on the counselor or the counselor's attorney either 
        personally or by first class mail.  Within ten days of service 
        of the order, the commissioner shall hold a hearing on the sole 
        issue of whether there is a reasonable basis to continue, 
        modify, or lift the suspension.  Evidence presented by the 
        commissioner or counselor must be by affidavit only.  The 
        counselor or the counselor's attorney of record may appear for 
        oral argument.  Within five working days after the hearing, the 
        commissioner shall issue an order and, if the suspension is 
        continued, schedule a contested case hearing within 45 days 
        after issuance of the order.  The administrative law judge shall 
        issue a report within 30 days after closing of the contested 
        case hearing record.  The commissioner shall issue a final order 
        within 30 days after receipt of that report, the hearing record, 
        and any exceptions to the report filed by the parties. 
           Subd. 4.  [AUTOMATIC SUSPENSION.] The right to practice is 
        automatically suspended if (1) a guardian of an alcohol and drug 
        counselor is appointed by order of a probate court under 
        sections 525.54 to 525.61, or (2) the counselor is committed by 
        order of a probate court under chapter 253B.  The right to 
        practice remains suspended until the counselor is restored to 
        capacity by a court and, upon petition by the counselor, the 
        suspension is terminated by the commissioner after a hearing or 
        upon agreement between the commissioner and the counselor. 
           Sec. 19.  [148C.093] [ADDITIONAL REMEDIES.] 
           Subdivision 1.  [CEASE AND DESIST.] The commissioner may 
        issue a cease and desist order to stop a person from violating 
        or threatening to violate a statute, rule, or order which the 
        commissioner has issued or has authority to enforce.  The cease 
        and desist order must state the reason for its issuance and give 
        notice of the person's right to request a hearing under sections 
        14.57 to 14.62.  If, within 15 days of service of the order, the 
        subject of the order fails to request a hearing in writing, the 
        order is the final order of the commissioner and is not 
        reviewable by a court or agency. 
           A hearing must be initiated by the commissioner not later 
        than 30 days from the date of the commissioner's receipt of a 
        written hearing request.  Within 30 days of receipt of the 
        administrative law judge's report, and any written agreement or 
        exceptions filed by the parties, the commissioner shall issue a 
        final order modifying, vacating, or making permanent the cease 
        and desist order as the facts require.  The final order remains 
        in effect until modified or vacated by the commissioner. 
           When a request for a stay accompanies a timely hearing 
        request, the commissioner may, in the commissioner's discretion, 
        grant the stay.  If the commissioner does not grant a requested 
        stay, the commissioner shall refer the request to the office of 
        administrative hearings within three working days of receipt of 
        the request.  Within ten days after receiving the request from 
        the commissioner, an administrative law judge shall issue a 
        recommendation to grant or deny the stay.  The commissioner 
        shall grant or deny the stay within five working days of 
        receiving the administrative law judge's recommendation. 
           In the event of noncompliance with a cease and desist 
        order, the commissioner may institute a proceeding in district 
        court to obtain injunctive relief or other appropriate relief, 
        including a civil penalty payable to the commissioner not 
        exceeding $10,000 for each separate violation. 
           Subd. 2.  [INJUNCTIVE RELIEF.] In addition to any other 
        remedy provided by law, including the issuance of a cease and 
        desist order under subdivision 1, the commissioner may in the 
        commissioner's own name bring an action in district court for 
        injunctive relief to restrain an alcohol and drug counselor from 
        a violation or threatened violation of any statute, rule, or 
        order which the commissioner has authority to administer, 
        enforce, or issue. 
           Subd. 3.  [ADDITIONAL POWERS.] The issuance of a cease and 
        desist order or injunctive relief granted under this section 
        does not relieve a counselor from criminal prosecution by a 
        competent authority or from disciplinary action by the 
        commissioner. 
           Sec. 20.  [148C.095] [REPORTING OBLIGATIONS.] 
           Subdivision 1.  [PERMISSION TO REPORT.] A person who has 
        knowledge of any conduct constituting grounds for disciplinary 
        action relating to the practice of alcohol and drug counseling 
        under this chapter may report the violation to the commissioner. 
           Subd. 2.  [INSTITUTIONS.] A state agency, political 
        subdivision, agency of a local unit of government, private 
        agency, hospital, clinic, prepaid medical plan, or other health 
        care institution or organization located in this state shall 
        report to the commissioner any action taken by the agency, 
        institution, or organization or any of its administrators or 
        medical or other committees to revoke, suspend, restrict, or 
        condition an alcohol and drug counselor's privilege to practice 
        or treat patients or clients in the institution, or as part of 
        the organization, any denial of privileges, or any other 
        disciplinary action for conduct that might constitute grounds 
        for disciplinary action by the commissioner under this chapter.  
        The institution, organization, or governmental entity shall also 
        report the resignation of any alcohol and drug counselors before 
        the conclusion of any disciplinary action proceeding for conduct 
        that might constitute grounds for disciplinary action under this 
        chapter, or before the commencement of formal charges but after 
        the practitioner had knowledge that formal charges were 
        contemplated or were being prepared. 
           Subd. 3.  [PROFESSIONAL SOCIETIES.] A state or local 
        professional society for alcohol and drug counselors shall 
        report to the commissioner any termination, revocation, or 
        suspension of membership or any other disciplinary action taken 
        against an alcohol and drug counselor.  If the society has 
        received a complaint that might be grounds for discipline under 
        this chapter against a member on which it has not taken any 
        disciplinary action, the society shall report the complaint and 
        the reason why it has not taken action on it or shall direct the 
        complainant to the commissioner. 
           Subd. 4.  [LICENSED PROFESSIONALS.] A licensed health 
        professional shall report to the commissioner personal knowledge 
        of any conduct that the licensed health professional reasonably 
        believes constitutes grounds for disciplinary action under this 
        chapter by an alcohol and drug counselor, including conduct 
        indicating that the individual may be medically incompetent, or 
        may be medically or physically unable to engage safely in the 
        provision of services.  If the information was obtained in the 
        course of a client relationship, the client is an alcohol and 
        drug counselor, and the treating individual successfully 
        counsels the alcohol and drug counselor to limit or withdraw 
        from practice to the extent required by the impairment, the 
        commissioner may deem this limitation of or withdrawal from 
        practice to be sufficient disciplinary action. 
           Subd. 5.  [INSURERS.] Each insurer authorized to sell 
        insurance described in section 60A.06, subdivision 1, clause 
        (13), and providing professional liability insurance to alcohol 
        and drug counselors or the medical joint underwriting 
        association under chapter 62F, shall submit to the commissioner 
        quarterly reports concerning the alcohol and drug counselors 
        against whom malpractice settlements and awards have been made.  
        The report must contain at least the following information: 
           (1) the total number of malpractice settlements or awards 
        made; 
           (2) the date the malpractice settlements or awards were 
        made; 
           (3) the allegations contained in the claim or complaint 
        leading to the settlements or awards made; 
           (4) the dollar amount of each settlement or award; 
           (5) the address of the practice of the alcohol and drug 
        counselor against whom an award was made or with whom a 
        settlement was made; and 
           (6) the name of the alcohol and drug counselor against whom 
        an award was made or with whom a settlement was made. 
           The insurance company shall, in addition to the above 
        information, submit to the commissioner any information, 
        records, and files, including clients' charts and records, it 
        possesses that tend to substantiate a charge that a licensed 
        alcohol and drug counselor may have engaged in conduct violating 
        this chapter. 
           Subd. 6.  [SELF-REPORTING.] An alcohol and drug counselor 
        shall report to the commissioner any personal action that would 
        require that a report be filed with the commissioner by any 
        person, health care facility, business, or organization under 
        subdivisions 2 to 5.  The alcohol and drug counselor shall also 
        report the revocation, suspension, restriction, limitation, or 
        other disciplinary action in this state and report the filing of 
        charges regarding the practitioner's license or right of 
        practice in another state or jurisdiction. 
           Subd. 7.  [DEADLINES; FORMS.] Reports required by 
        subdivisions 2 to 6 must be submitted no later than 30 days 
        after the reporter learns of the occurrence of the reportable 
        event or transaction.  The commissioner may provide forms for 
        the submission of the reports required by this section, may 
        require that reports be submitted on the forms provided, and may 
        adopt rules necessary to assure prompt and accurate reporting. 
           Sec. 21.  [148C.099] [PROFESSIONAL COOPERATION.] 
           An alcohol and drug counselor who is the subject of an 
        investigation, or who is questioned in connection with an 
        investigation, by or on behalf of the commissioner, shall 
        cooperate fully with the investigation.  Cooperation includes 
        responding fully to any question raised by or on behalf of the 
        commissioner relating to the subject of the investigation 
        whether tape recorded or not.  Challenges to requests of the 
        commissioner may be brought before the appropriate agency or 
        court. 
           Sec. 22.  Minnesota Statutes 1994, section 148C.10, is 
        amended to read: 
           148C.10 [PROHIBITION AGAINST UNLICENSED PRACTICE OR USE OF 
        TITLES; PENALTY.] 
           Subdivision 1.  [PRACTICE.] After the commissioner adopts 
        rules, no individual shall engage in chemical dependency alcohol 
        and drug counseling practice unless that individual holds a 
        valid license as a chemical dependency an alcohol and drug 
        counselor.  
           Subd. 2.  [USE OF TITLES.] After the commissioner adopts 
        rules, no individual shall be presented present themselves or 
        any other individual to the public by any title incorporating 
        the words "chemical dependency licensed alcohol and drug 
        counselor" or otherwise hold themselves out to the public by any 
        title or description stating or implying that they are licensed 
        or otherwise qualified to practice alcohol and drug counseling 
        unless that individual holds a valid license.  City, county, and 
        state agency chemical dependency alcohol and drug counselors who 
        are not licensed under sections 148C.01 to 148C.11 may use the 
        title "city agency chemical dependency alcohol and drug 
        counselor," "county agency chemical dependency alcohol and drug 
        counselor," or "state agency chemical dependency alcohol and 
        drug counselor."  Hospital chemical dependency alcohol and drug 
        counselors who are not licensed under sections 148C.01 to 
        148C.11 may use the title "hospital chemical dependency alcohol 
        and drug counselor" while acting within the scope of their 
        employment. 
           Subd. 3.  [PENALTY.] A person who violates sections 148C.01 
        to 148C.11 is guilty of a misdemeanor.  
           Sec. 23.  Minnesota Statutes 1994, section 148C.11, is 
        amended to read: 
           148C.11 [EXCEPTIONS TO LICENSE REQUIREMENT.] 
           Subdivision 1.  [OTHER PROFESSIONALS.] Nothing in sections 
        148C.01 to 148C.10 shall prevent members of other professions or 
        occupations from performing functions for which they are 
        qualified or licensed.  This exception includes, but is not 
        limited to, licensed physicians, registered nurses, licensed 
        practical nurses, psychological practitioners, members of the 
        clergy, attorneys, probation officers, marriage and family 
        therapists, social workers, professional counselors, school 
        counselors, and registered occupational therapists or certified 
        occupational therapist assistants.  These persons must not, 
        however, use a title incorporating the words "chemical 
        dependency alcohol and drug counselor" or "licensed chemical 
        dependency alcohol and drug counselor" or otherwise hold 
        themselves out to the public by any title or description stating 
        or implying that they are licensed to engage in the practice 
        of chemical dependency alcohol and drug counseling. 
           Subd. 2.  [STUDENTS.] Nothing in sections 148C.01 to 
        148C.10 shall prevent students enrolled in an accredited school 
        of chemical dependency alcohol and drug counseling from engaging 
        in the practice of chemical dependency alcohol and drug 
        counseling under qualified supervision in an accredited school 
        of chemical dependency alcohol and drug counseling.  
           Subd. 3.  [FEDERALLY RECOGNIZED TRIBES AND PRIVATE 
        NONPROFIT AGENCIES WITH A MINORITY FOCUS.] (a) The licensing of 
        chemical dependency counselors who are employed by federally 
        recognized tribes shall be voluntary.  Alcohol and drug 
        counselors licensed to practice alcohol and drug counseling 
        according to standards established by federally recognized 
        tribes, while practicing under tribal jurisdiction, are exempt 
        from the requirements of this chapter.  In practicing alcohol 
        and drug counseling under tribal jurisdiction, individuals 
        licensed under that authority shall be afforded the same rights, 
        responsibilities, and recognition as persons licensed pursuant 
        to this chapter. 
           (b) The commissioner shall develop special licensing 
        criteria for issuance of a license to chemical dependency 
        alcohol and drug counselors who:  (1) are members of ethnic 
        minority groups; and or (2) are employed by private, nonprofit 
        agencies, including agencies operated by private, nonprofit 
        hospitals, whose primary agency service focus addresses ethnic 
        minority populations.  These licensing criteria may differ from 
        the licensing criteria specified in section 148C.04.  To develop 
        these criteria, the commissioner shall establish a committee 
        comprised of but not limited to representatives from the council 
        on hearing impaired, the council on affairs of Spanish-speaking 
        people, the council on Asian-Pacific Minnesotans, the council on 
        Black Minnesotans, and the Indian affairs council. 
           Subd. 4.  [HOSPITAL CHEMICAL DEPENDENCY ALCOHOL AND DRUG 
        COUNSELORS.] Except as provided in subdivision 3, paragraph (b), 
        The licensing of hospital chemical dependency alcohol and drug 
        counselors shall be voluntary, while the counselor is employed 
        by the hospital.  Hospitals employing chemical dependency 
        alcohol and drug counselors shall not be required to employ 
        licensed chemical dependency alcohol and drug counselors, nor 
        shall they require their chemical dependency alcohol and drug 
        counselors to be licensed, however, nothing in this chapter will 
        prohibit hospitals from requiring their counselors to be 
        eligible for licensure. 
           Subd. 5.  [CITY, COUNTY, AND STATE AGENCY CHEMICAL 
        DEPENDENCY ALCOHOL AND DRUG COUNSELORS.] The licensing of city, 
        county, and state agency chemical dependency alcohol and drug 
        counselors shall be voluntary, while the counselor is employed 
        by the city, county, or state agency.  City, county, and state 
        agencies employing chemical dependency alcohol and drug 
        counselors shall not be required to employ licensed chemical 
        dependency alcohol and drug counselors, nor shall they require 
        their chemical dependency drug and alcohol counselors to be 
        licensed. 
           Sec. 24.  Minnesota Statutes 1994, section 153A.13, is 
        amended to read: 
           153A.13 [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to sections 153A.13 to 153A.18. 
           Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of the department of health or a designee. 
           Subd. 3.  [HEARING INSTRUMENT.] "Hearing instrument" means 
        an instrument, or any of its parts, worn in the ear canal and 
        designed to or represented as being able to aid defective or 
        enhance human hearing.  "Hearing instrument" includes the 
        instrument's parts, attachments, and or accessories, including, 
        but not limited to, ear molds and behind the ear (BTE) devices 
        with or without an ear mold.  Batteries and cords are not parts, 
        attachments, or accessories of a hearing instrument.  Surgically 
        implanted hearing instruments, and assistive listening devices 
        that do not require testing, fitting, or the use of ear molds 
        and are not worn within the ear canal, are not hearing 
        instruments. 
           Subd. 4.  [HEARING INSTRUMENT DISPENSING.] "Hearing 
        instrument dispensing" means fitting and selling hearing 
        instruments making ear mold impressions, prescribing, or 
        recommending a hearing instrument, assisting the consumer in 
        instrument selection, selling hearing instruments at retail, or 
        testing human hearing in connection with these activities when 
        the person conducting these activities has a monetary interest 
        in the sale of hearing instruments to the consumer. 
           Subd. 5.  [DISPENSER OF HEARING INSTRUMENTS.] "Dispenser of 
        hearing instruments" means a natural person who engages in 
        hearing instrument dispensing whether or not 
        registered certified by the commissioner of health or licensed 
        by an existing health-related board, except that any person who 
        helps a dispenser of hearing instruments in an administrative or 
        clerical manner and does not engage in hearing instrument 
        dispensing is not a dispenser of hearing instruments.  A person 
        who offers to dispense a hearing instrument, or a person who 
        advertises, holds out to the public, or otherwise represents 
        that the person is authorized to dispense hearing instruments 
        must be certified by the commissioner. 
           Subd. 6.  [ADVISORY COUNCIL.] "Advisory council" means the 
        Minnesota hearing instrument dispenser advisory council, or a 
        committee of it, established under section 153A.20. 
           Subd. 7.  [ANSI.] "ANSI" means ANSI S3.6-1989, American 
        National Standard Specification for Audiometers from the 
        American National Standards Institute.  This document is 
        available through the Minitex interlibrary loan system. 
           Subd. 8.  [CERTIFICATION NUMBER.] "Certification number" 
        means the number assigned to each certification by the 
        commissioner. 
           Subd. 9.  [SUPERVISION.] "Supervision" means on-site 
        observing and monitoring activities of, and accepting 
        responsibility for, the hearing instrument dispensing activities 
        of a trainee. 
           Sec. 25.  Minnesota Statutes 1994, section 153A.14, is 
        amended to read: 
           153A.14 [REGULATION.] 
           Subdivision 1.  [APPLICATION FOR CERTIFICATE.] A dispenser 
        of hearing instruments shall An applicant must: 
           (1) be 18 years of age or older; 
           (2) apply to the commissioner for a certificate to dispense 
        hearing instruments.  The commissioner shall provide 
        applications for certificates. on application forms provided by 
        the commissioner; 
           (3) at a minimum, the information that an applicant must 
        provide includes the dispenser's applicant's name, social 
        security number, business address and phone number, employer, 
        and information about the dispenser's applicant's education, 
        training, and experience in testing human hearing and fitting 
        hearing instruments.  The commissioner may reject an application 
        for a certificate if there is evidence of a violation or failure 
        to comply with this chapter.; 
           (4) include with the application a statement that the 
        statements in the application are true and correct to the best 
        of the applicant's knowledge and belief; 
           (5) include with the application a written and signed 
        authorization that authorizes the commissioner to make inquiries 
        to appropriate regulatory agencies in this or any other state 
        where the applicant has sold hearing instruments; 
           (6) submit certification to the commissioner that the 
        applicant's audiometric equipment has been calibrated to meet 
        current ANSI standards within 12 months of the date of the 
        application; 
           (7) submit evidence of continuing education credits, if 
        required; and 
           (8) submit all fees as required under section 153A.17. 
           Subd. 2.  [ISSUANCE OF CERTIFICATE.] The commissioner shall 
        issue a certificate to each dispenser of hearing instruments who 
        applies under subdivision 1 if the commissioner determines that 
        the applicant is in compliance with this chapter, has passed an 
        examination administered by the commissioner, has met the 
        continuing education requirements, if required, and has paid the 
        fee set by the commissioner.  A certificate must be renewed by 
        November 1 of each year.  The commissioner may reject or deny an 
        application for a certificate if there is evidence of a 
        violation or failure to comply with this chapter. 
           Subd. 2a.  [EXEMPTION FROM EXAMINATION 
        REQUIREMENT.] Persons completing the audiology registration 
        requirements of Minnesota Rules, part 4750.0060, after January 
        1, 1996, are exempt from the examination requirements of 
        subdivision 2.  Minnesota registration or American 
        Speech-Language-Hearing Association certification as an 
        audiologist are not required but may be submitted as evidence 
        qualifying for exemption from the examination if the 
        requirements are completed after January 1, 1996. 
           Subd. 2b.  [ACTION ON APPLICATIONS FOR CERTIFICATION.] The 
        commissioner shall act on an application for certification 
        according to paragraphs (a) to (c). 
           (a) The commissioner shall determine if the applicant meets 
        the requirements for certification.  The commissioner or 
        advisory council may investigate information provided by an 
        applicant to determine whether the information is accurate and 
        complete. 
           (b) The commissioner shall notify each applicant of action 
        taken on the application and of the grounds for denying 
        certification if certification is denied. 
           (c) Applicants denied certification for failure to meet the 
        requirements may make a written request to the commissioner 
        within 30 days of the commissioner's determination to appear 
        before the advisory council and for the advisory council to 
        review the commissioner's decision to deny the applicant's 
        certification.  After reviewing the denial, the advisory council 
        shall make a recommendation to the commissioner as to whether 
        the denial should be affirmed. 
           Subd. 2c.  [REAPPLICATION FOLLOWING DENIAL, REJECTION, 
        REVOCATION, OR SUSPENSION OF CERTIFICATION.] After two years, 
        upon application and evidence that the disqualifying behavior 
        has ceased, the commissioner may restore or approve 
        certification previously denied, rejected, revoked, or 
        suspended, provided that the applicant has met all conditions 
        and terms of any orders to which the applicant is a subject. 
           Subd. 2d.  [CERTIFICATION RENEWAL NOTICE.] Certification 
        must be renewed annually.  At least 30 days before the deadline 
        for application to renew certification, the commissioner shall 
        mail a renewal notice to the dispenser's last known address.  
        The notice must include a renewal application and notice of fees 
        required for renewal.  A dispenser is not relieved from meeting 
        the applicable deadline for renewal on the basis that the 
        dispenser did not receive the renewal notice.  In renewing a 
        certificate, a dispenser shall follow the procedures for 
        applying for a certificate specified in section 153A.14, 
        subdivision 1. 
           Subd. 2e.  [RENEWAL REQUIREMENTS.] A certificate must be 
        renewed effective November 1 of each year.  To renew a 
        certificate, an applicant must: 
           (1) annually complete a renewal application on a form 
        provided by the commissioner and submit the annual renewal fee 
        by the deadline; 
           (2) submit certification to the commissioner that the 
        applicant's audiometric equipment has been calibrated to meet 
        current ANSI standards within 12 months of the date of the 
        application, if the applicant tests hearing; 
           (3) submit evidence of completion of continuing education 
        requirements, if required; and 
           (4) submit additional information if requested by the 
        commissioner to clarify information presented in the renewal 
        application.  The information must be submitted within 30 days 
        of the commissioner's request. 
           Subd. 2f.  [LATE RENEWALS.] The deadline for application to 
        renew certification is October 1 of each year.  An application 
        submitted after October 1 and before November 1 shall be a late 
        renewal and must be accompanied by a late fee as required in 
        section 153A.17. 
           Subd. 2g.  [LAPSE IN CERTIFICATION.] Certification shall 
        lapse if not renewed before November 1 of each year.  An 
        applicant whose certification has lapsed less than two years 
        must meet all the requirements of this chapter except the 
        certification by examination requirements of subdivision 2h.  
        The application fees to renew certification following a lapse of 
        less than two years must include the late fee.  An applicant 
        whose certification has lapsed for two years or more must meet 
        all the requirements of this chapter except the continuing 
        education requirement of subdivision 2i.  Certification 
        application fees of applicants whose certification has lapsed 
        for any amount of time shall not be prorated over the time 
        remaining in the annual certification period. 
           Subd. 2h.  [CERTIFICATION BY EXAMINATION.] An applicant 
        must achieve a passing score, as determined by the commissioner, 
        on an examination according to paragraphs (a) and (b). 
           (a) The examination must include, but is not limited to: 
           (1) A written examination approved by the commissioner 
        covering the following areas as they pertain to hearing 
        instrument selling: 
           (i) basic physics of sound; 
           (ii) the anatomy and physiology of the ear; 
           (iii) the function of hearing instruments; 
           (iv) the principles of hearing instrument selection; and 
           (v) state and federal laws, rules, and regulations. 
           (2) Practical tests of proficiency in the following 
        techniques as they pertain to hearing instrument selling: 
           (i) pure tone audiometry, including air conduction testing 
        and bone conduction testing; 
           (ii) live voice or recorded voice speech audiometry 
        including speech recognition (discrimination) testing, most 
        comfortable loudness level, and uncomfortable loudness 
        measurements of tolerance thresholds; 
           (iii) masking when indicated; 
           (iv) recording and evaluation of audiograms and speech 
        audiometry to determine proper selection and fitting of a 
        hearing instrument; 
           (v) taking ear mold impressions; and 
           (vi) using an otoscope for the visual observation of the 
        entire ear canal. 
           (b) The examination shall be administered by the 
        commissioner at least twice a year. 
           Subd. 2i.  [CONTINUING EDUCATION REQUIREMENT.] On forms 
        provided by the commissioner, each certified dispenser must 
        submit with the application for renewal of certification 
        evidence of completion of ten course hours of continuing 
        education earned within the 12-month period of July 1 to June 30 
        immediately preceding renewal.  Continuing education courses 
        must be directly related to hearing instrument dispensing and 
        approved by the International Hearing Society or qualify for 
        continuing education approved for Minnesota registered 
        audiologists.  Evidence of completion of the ten course hours of 
        continuing education must be submitted with renewal applications 
        by October 1 of each year.  This requirement does not apply to 
        dispensers certified for less than one year.  The first report 
        of evidence of completion of the continuing education credits 
        shall be due October 1, 1997.  
           Subd. 2j.  [REQUIRED USE OF CERTIFICATION NUMBER.] The 
        certification holder must use the certification number on all 
        contracts, bills of sale, and receipts used in the sale of 
        hearing instruments. 
           Subd. 3.  [NONTRANSFERABILITY OF CERTIFICATE.] A 
        certificate may not be transferred.  
           Subd. 4.  [DISPENSING OF HEARING INSTRUMENTS WITHOUT 
        CERTIFICATE.] Except as provided in subdivision 4a, it is 
        unlawful for any person not holding a valid certificate to 
        dispense a hearing instrument as defined in section 153A.13, 
        subdivision 3.  A person who dispenses a hearing instrument 
        without the certificate required by this section is guilty of a 
        gross misdemeanor.  For purposes of this chapter, a person is 
        dispensing a hearing instrument if the person does, or offers to 
        do, any of the activities described in section 153A.13, 
        subdivision 4, or if the person advertises, holds out to the 
        public, or otherwise represents that the person is authorized to 
        dispense hearing instruments. 
           Subd. 4a.  [TRAINEES.] (a) A person who is not certified 
        under this section may dispense hearing instruments as a trainee 
        for a period not to exceed nine 12 months if the person: 
           (1) submits an application on forms provided by the 
        commissioner; 
           (2) is employed by and under the supervision or sponsorship 
        of a certified dispenser meeting the requirements of this 
        subdivision; and 
           (2) (3) meets all requirements for certification except 
        completion of the person's training and passage of the 
        examination required by this section. 
           (b) A certified hearing instrument dispenser may not 
        employ, sponsor, and supervise more than two trainees at the 
        same time.  The certified dispenser is responsible for all 
        actions or omissions of a trainee in connection with the 
        dispensing of hearing instruments.  A certified dispenser may 
        not employ, sponsor, or supervise a trainee if there are any 
        commissioner, court, or other orders, currently in effect or 
        issued within the last five years, that were issued with respect 
        to an action or omission of a certified dispenser or a trainee 
        under the certified dispenser's supervision. 
           Trainees must be supervised in all areas described in 
        section 153A.14, subdivision 4b, and the activities tested by 
        the examination.  Two hundred hours of on-site observations must 
        be completed within the trainee period with a minimum of 100 
        hours involving the supervisor, trainee, and a consumer.  In 
        addition, the trainee must complete two monitored activities a 
        week.  Monitored activities may be executed by correspondence, 
        telephone, or other telephonic devices, and include, but are not 
        limited to, evaluation of audiograms, written reports, and 
        contracts.  The time spent in supervision must be recorded and 
        the record retained by the supervisor. 
           Subd. 4b.  [HEARING TESTING PROTOCOL.] (a) A dispenser when 
        conducting a hearing test for the purpose of hearing instrument 
        dispensing must: 
           (1) comply with the United States Food and Drug 
        Administration warning regarding potential medical conditions 
        required by Code of Federal Regulations, title 21, section 
        801.420; 
           (2) complete a case history of the client's hearing; 
           (3) inspect the client's ears with an otoscope; and 
           (4) conduct the following tests on both ears of the client 
        and document the results, and if for any reason one of the 
        following tests cannot be performed pursuant to the United 
        States Food and Drug Administration guidelines, an audiologist 
        shall evaluate the hearing and the need for a hearing instrument:
           (i) air conduction at 250, 500, 1,000, 2,000, 4,000, and 
        8,000 Hertz.  When a difference of 20 dB or more occurs between 
        adjacent octave frequencies the interoctave frequency must be 
        tested; 
           (ii) bone conduction at 500, 1,000, 2,000, and 4,000 Hertz 
        for any frequency where the air conduction threshold is greater 
        than 15 dB HL; 
           (iii) monaural word recognition (discrimination), with a 
        minimum of 25 words presented for each ear; and 
           (iv) loudness discomfort level, monaural, for setting a 
        hearing instrument's maximum power output; and 
           (5) include masking in all tests whenever necessary to 
        ensure accurate results. 
           Subd. 5.  [RULEMAKING AUTHORITY.] The commissioner shall 
        adopt rules under chapter 14 to implement this chapter.  The 
        rules must prescribe the form and content of the examination 
        required by this section and must establish and prescribe the 
        duties of a hearing instrument dispenser advisory council.  The 
        commissioner may adopt rules requiring continuing education of 
        certified hearing instrument dispensers. may include procedures 
        and standards relating to the certification requirement, the 
        scope of authorized practice, fees, supervision required, 
        continuing education, career progression, disciplinary matters, 
        and examination procedures. 
           Subd. 6.  [HEARING INSTRUMENTS TO COMPLY WITH FEDERAL AND 
        STATE REQUIREMENTS.] The commissioner shall ensure that hearing 
        instruments are dispensed in compliance with state requirements 
        and the requirements of the United States Food and Drug 
        Administration.  Failure to comply with state or federal 
        regulations may be grounds for enforcement actions under section 
        153A.15, subdivision 2. 
           Subd. 7.  [CONTESTED CASES.] The commissioner shall comply 
        with the contested case procedures in chapter 14 when 
        suspending, revoking, or refusing to issue a certificate under 
        this section. 
           Subd. 8.  [CONTENT OF CONTRACTS.] Oral statements made by a 
        hearing instrument dispenser regarding the provision of 
        warranties, refunds, and service on the hearing instrument or 
        instruments dispensed must be written on, and become part of, 
        the contract of sale, specify the item or items covered, and 
        indicate the person or business entity obligated to provide the 
        warranty, refund, or service. 
           Subd. 9.  [CONSUMER RIGHTS INFORMATION.] A hearing 
        instrument dispenser shall, at the time of the recommendation or 
        prescription, give a consumer rights brochure, prepared by the 
        commissioner and containing information about legal requirements 
        pertaining to sales of hearing instruments, to each potential 
        buyer of a hearing instrument.  A sales contract for a hearing 
        instrument must note the receipt of the brochure by the buyer. 
           Subd. 10.  [LIABILITY FOR CONTRACTS.] Owners of entities in 
        the business of dispensing hearing instruments, employers of 
        persons who dispense hearing instruments, and sponsors and 
        supervisors of trainees are liable for satisfying all terms of 
        contracts, written or oral, made by their agents, employees, 
        assignees, affiliates, or trainees, including terms relating to 
        products, repairs, warranties, service, and refunds.  The 
        commissioner may enforce the terms of hearing instrument sales 
        contracts against the principal, employer, sponsor, or 
        supervisor of an agent, employee, or trainee and may impose any 
        remedy provided for in this chapter. 
           Subd. 11.  [REQUIREMENT TO MAINTAIN CURRENT INFORMATION.] A 
        dispenser must notify the commissioner in writing within 30 days 
        of the occurrence of any of the following: 
           (1) a change of address, home, or business telephone 
        number, or business name; 
           (2) the occurrence of conduct prohibited by section 
        153A.15; 
           (3) a settlement, conciliation court judgment, or award 
        based on negligence, intentional acts, or contractual violations 
        committed in the dispensing of hearing instruments by the 
        dispenser; and 
           (4) the cessation of hearing instrument dispensing 
        activities as an individual or a business. 
           Sec. 26.  Minnesota Statutes 1994, section 153A.15, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITED ACTS.] The commissioner may 
        reject an application for a certificate or may act under 
        subdivision 2 against a dispenser of hearing instruments for 
        failure to comply with this chapter.  Failure to apply to the 
        commissioner for a certificate, or supplying false or misleading 
        information on the application for a certificate, is a ground 
        for action under subdivision 2.  The following acts and conduct 
        are also grounds for action under subdivision 2: 
           (1) prescribing or otherwise recommending to a consumer or 
        potential consumer the use of a hearing instrument, unless the 
        prescription from a physician or recommendation from a hearing 
        instrument dispenser or audiologist is in writing, is based on 
        an audiogram that is delivered to the consumer or potential 
        consumer, when the prescription or recommendation is made, and 
        bears the following information in all capital letters of 
        12-point or larger bold-face type:  "THIS PRESCRIPTION OR 
        RECOMMENDATION MAY BE FILLED BY, AND HEARING INSTRUMENTS MAY BE 
        PURCHASED FROM, THE CERTIFIED DISPENSER, AUDIOLOGIST, OR 
        PHYSICIAN OF YOUR CHOICE" and unless the prescription or written 
        recommendation includes, upon the authorization of the consumer 
        or potential consumer, the audiogram upon which the prescription 
        or recommendation is based if there has been a charge for the 
        audiogram; 
           (2) representing through any advertising or communication 
        to a consumer or potential consumer that a person's 
        certification to dispense hearing instruments indicates state 
        approval or endorsement failing to give a copy of the audiogram, 
        upon which the prescription or recommendation is based, to the 
        consumer when there has been a charge for the audiogram and the 
        consumer requests a copy; 
           (3) failing to provide the consumer rights brochure 
        required by section 153A.14, subdivision 9; 
           (4) being disciplined through a revocation, suspension, 
        restriction, or limitation by another state for conduct subject 
        to action under this chapter; 
           (4) (5) presenting advertising that is false or misleading; 
           (5) (6) providing the commissioner with false or misleading 
        statements of credentials, training, or experience; 
           (6) (7) engaging in conduct likely to deceive, defraud, or 
        harm the public; or demonstrating a willful or careless 
        disregard for the health, welfare, or safety of a consumer; 
           (7) (8) splitting fees or promising to pay a portion of a 
        fee to any other professional other than a fee for services 
        rendered by the other professional to the client; 
           (8) (9) engaging in abusive or fraudulent billing 
        practices, including violations of federal Medicare and Medicaid 
        laws, Food and Drug Administration regulations, or state medical 
        assistance laws; 
           (9) (10) obtaining money, property, or services from a 
        consumer through the use of undue influence, high pressure sales 
        tactics, harassment, duress, deception, or fraud; 
           (10) (11) failing to comply with restrictions on sales of 
        hearing aids in section sections 153A.14, subdivision 9, and 
        153A.19; 
           (11) (12) performing the services of a certified hearing 
        instrument dispenser in an incompetent or negligent manner; or 
           (12) (13) failing to comply with the requirements of this 
        chapter as an employer, supervisor, sponsor, or trainee.; 
           (14) failing to provide information in a timely manner in 
        response to a request by the commissioner, commissioner's 
        designee, or the advisory council; 
           (15) being convicted within the past five years of 
        violating any laws of the United States, or any state or 
        territory of the United States, and the violation is a felony, 
        gross misdemeanor, or misdemeanor, an essential element of which 
        relates to hearing instrument dispensing, except as provided in 
        chapter 364; 
           (16) failing to cooperate in good faith with the 
        commissioner, the commissioner's designee, or the advisory 
        council in any investigation; 
           (17) failing to perform hearing instrument dispensing with 
        reasonable judgment, skill, or safety due to the use of alcohol 
        or drugs, or other physical or mental impairment; 
           (18) failing to fully disclose actions taken against the 
        applicant or the applicant's legal authorization to dispense 
        hearing instruments in this or another state; 
           (19) violating a state or federal court order or judgment, 
        including a conciliation court judgment, relating to the 
        activities of the applicant in hearing instrument dispensing; 
           (20) having been or being disciplined by the commissioner 
        of the department of health, or other authority, in this or 
        another jurisdiction, if any of the grounds for the discipline 
        are the same or substantially equivalent to those in sections 
        153A.13 to 153A.19; 
           (21) misrepresenting the purpose of hearing tests, or in 
        any way communicating that the hearing test or hearing test 
        protocol required by section 153A.14, subdivision 4b, is a 
        medical evaluation, a diagnostic hearing evaluation conducted by 
        an audiologist, or is other than a test to select a hearing 
        instrument, except that the hearing instrument dispenser can 
        determine the need for or recommend the consumer obtain a 
        medical evaluation consistent with requirements of the United 
        States Food and Drug Administration; 
           (22) violating any of the provisions of sections 153A.13 to 
        153A.19; and 
           (23) aiding or abetting another person in violating any of 
        the provisions of sections 153A.13 to 153A.19. 
           Sec. 27.  Minnesota Statutes 1994, section 153A.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ENFORCEMENT ACTIONS.] When the commissioner 
        finds that a dispenser of hearing instruments has violated one 
        or more provisions of this chapter, the commissioner may do one 
        or more of the following: 
           (1) deny or reject the application for a certificate; 
           (2) revoke the certificate; 
           (3) suspend the certificate; 
           (4) impose, for each violation, a civil penalty that 
        deprives the dispenser of any economic advantage gained by the 
        violation and that reimburses the department of health for costs 
        of the investigation and proceeding resulting in disciplinary 
        action, including the amount paid for services of the office of 
        administrative hearings, the amount paid for services of the 
        office of the attorney general, attorney fees, court reporters, 
        witnesses, reproduction of records, advisory council members' 
        per diem compensation, department staff time, and expenses 
        incurred by advisory council members and department staff; 
           (5) censure or reprimand the dispenser; 
           (6) revoke or suspend the right to sponsor supervise 
        trainees; 
           (7) revoke or suspend the right to be a trainee; 
           (8) impose a civil penalty not to exceed $10,000 for each 
        separate violation; or 
           (8) (9) any other action reasonably justified by the 
        individual case. 
           Sec. 28.  Minnesota Statutes 1994, section 153A.17, is 
        amended to read: 
           153A.17 [EXPENSES; FEES.] 
           The expenses for administering the certification 
        requirements including the complaint handling system for hearing 
        aid dispensers in sections 153A.14 and 153A.15 and the consumer 
        information center under section 153A.18 must be paid from 
        initial application and examination fees, renewal fees, 
        penalties, and fines.  All fees are nonrefundable.  The 
        certificate application fee is $280, the examination fee is 
        $200, and the trainee application fee is $100, except that the 
        certification application fee for a registered audiologist is 
        $280 minus the audiologist registration fee of $101.  In 
        addition, both certification and examination fees are subject to 
        a surcharge of $60 to recover, over a five-year period, the 
        commissioner's accumulated direct expenditures for administering 
        the requirements of this chapter, but not registration of 
        hearing instrument dispensers under section 214.13, before 
        November 1, 1994.  The penalty fee for late submission of a 
        renewal application is $70.  All fees, penalties, and fines 
        received must be deposited in the state government special 
        revenue fund.  The commissioner may prorate the certification 
        fee for new applicants based on the number of quarters remaining 
        in the annual certification period. 
           Sec. 29.  Minnesota Statutes 1994, section 153A.18, is 
        amended to read: 
           153A.18 [CONSUMER INFORMATION CENTER.] 
           The commissioner shall establish a consumer information 
        center to assist actual and potential purchasers of hearing aids 
        by providing them with information regarding hearing instrument 
        sales.  The consumer information center shall disseminate 
        information about consumers' legal rights related to hearing 
        instrument sales, provide information relating to complaints 
        about sellers dispensers of hearing instruments, and provide 
        information about outreach and advocacy services for consumers 
        of hearing instruments.  In establishing the center and 
        developing the information, the commissioner shall consult with 
        representatives of hearing instrument sellers dispensers, 
        audiologists, physicians, and consumers. 
           Sec. 30.  Minnesota Statutes 1994, section 153A.19, is 
        amended to read: 
           153A.19 [HEARING AIDS; RESTRICTIONS ON SALES.] 
           Subdivision 1.  [DEFINITION.] "Hearing aid" means any 
        instrument or device designed for or represented as aiding 
        defective human hearing, and any parts, attachments, or 
        accessories of the instrument or device, including but not 
        limited to ear molds.  Batteries and cords shall not be 
        considered parts, attachments, or accessories of a hearing aid.  
           Subd. 2.  [30-DAY GUARANTEE AND BUYER RIGHT TO CANCEL.] No 
        person shall sell a hearing aid in this state unless: 
           (a) The seller dispenser provides the buyer with a 30-day 
        written money-back guarantee.  The guarantee must permit the 
        buyer to cancel the purchase for any reason within 30 days after 
        receiving the hearing aid by giving or mailing written notice of 
        cancellation to the seller dispenser.  If the hearing aid must 
        be repaired, remade, or adjusted during the 30-day money-back 
        guarantee period, the running of the 30-day period is suspended 
        one day for each 24-hour period that the hearing aid is not in 
        the buyer's possession.  A repaired, remade, or adjusted hearing 
        aid must be claimed by the buyer within three working days after 
        notification of availability, after which time the running of 
        the 30-day period resumes.  The guarantee must entitle the 
        buyer, upon cancellation, to receive a full refund of payment 
        within 30 days of return of the hearing aid to the seller 
        dispenser.  The seller dispenser may retain as a cancellation 
        fee ten percent of the buyer's total purchase price of the 
        hearing aid.  
           (b) The seller dispenser shall provide the buyer with a 
        contract written in plain English, that contains uniform 
        language and provisions that meet the requirements and are 
        certified by the attorney general under the Plain Language 
        Contract Act, sections 325G.29 to 325G.36.  The contract must 
        include, but is not limited to, the following:  in immediate 
        proximity to the space reserved for the signature of the buyer, 
        or on the first page if there is no space reserved for the 
        signature of the buyer, a clear and conspicuous disclosure of 
        the following specific statement in all capital letters of no 
        less than 12-point boldface type:  MINNESOTA STATE LAW GIVES THE 
        BUYER THE RIGHT TO CANCEL THIS PURCHASE FOR ANY REASON AT ANY 
        TIME PRIOR TO MIDNIGHT OF THE 30TH CALENDAR DAY AFTER RECEIPT OF 
        THE HEARING AID(S).  THIS CANCELLATION MUST BE IN WRITING AND 
        MUST BE GIVEN OR MAILED TO THE SELLER.  IF THE BUYER DECIDES TO 
        RETURN THE HEARING AID(S) WITHIN THIS 30-DAY PERIOD, THE BUYER 
        WILL RECEIVE A REFUND OF $.......  (State the dollar amount of 
        refund.) 
           Subd. 3.  [ITEMIZED REPAIR BILL.] (a) Any person or company 
        who agrees to repair a hearing aid must provide the owner of the 
        hearing aid, or the owner's representative, with a bill 
        that specifically itemizes all parts and labor charges for 
        describes the repair and services rendered.  The bill must also 
        include the repairing person's or company's name, address, and 
        phone number. 
           (b) This subdivision does not apply to: 
           (1) a person or company that repairs a hearing aid pursuant 
        to an express warranty covering the entire hearing aid and the 
        warranty covers the entire costs, both parts and labor, of the 
        repair; and. 
           (2) a person or company that repairs a hearing aid and the 
        entire hearing aid, after being repaired, is expressly warranted 
        for a period of at least six months, the warranty covers the 
        entire costs, both parts and labor, of the repair, and a copy of 
        the express warranty is given to the owner or the owner's 
        representative.  The owner of the hearing aid or the owner's 
        representative must be given a written express warranty that 
        includes the name, address, and phone number of the repairing 
        person or company; the make, model, and serial number of the 
        hearing aid repaired; the exact date of the last day of the 
        warranty period; and the terms of the warranty.  
           Subd. 4.  [REPAIR WARRANTY.] Any guarantee of hearing aid 
        repairs must be in writing and delivered to the owner of the 
        hearing aid, or the owner's representative, stating the 
        repairer's repairing person's or company's name, address, 
        telephone number, length of guarantee, model, and serial number 
        of the hearing aid and all other terms and conditions of the 
        guarantee. 
           Subd. 5.  [MISDEMEANOR.] Any person who is found to have 
        violated this section is guilty of a misdemeanor.  
           Subd. 6.  [ADDITIONAL.] In addition to the penalties 
        provided in subdivision 5, any person who is found to have 
        violated this section is subject to the penalties and remedies 
        provided in section 325F.69, subdivision 1.  
           Subd. 7.  [ESTIMATES.] Upon the request of the owner of a 
        hearing aid or the owner's representative for a written estimate 
        and prior to the commencement of repairs, a repairing person or 
        company shall provide the customer with a written estimate of 
        the price of repairs.  If a repairing person or company provides 
        a written estimate of the price of repairs, it shall not charge 
        more than the total price stated in the estimate for the 
        repairs.  If the repairing person or company after commencing 
        repairs determines that additional work is necessary to 
        accomplish repairs that are the subject of a written estimate 
        and if the repairing person or company did not unreasonably fail 
        to disclose the possible need for the additional work when the 
        estimate was made, the repairing person or company may charge 
        more than the estimate for the repairs if the repairing person 
        or company immediately provides the owner or owner's 
        representative a revised written estimate pursuant to this 
        section and receives authorization to continue with the 
        repairs.  If continuation of the repairs is not authorized, the 
        repairing person or company shall return the hearing aid as 
        close as possible to its former condition and shall release the 
        hearing aid to the owner or owner's representative upon payment 
        of charges for repairs actually performed and not in excess of 
        the original estimate. 
           Sec. 31.  [153A.20] [HEARING INSTRUMENT DISPENSER ADVISORY 
        COUNCIL.] 
           Subdivision 1.  [MEMBERSHIP.] The commissioner shall 
        appoint nine persons to a hearing instrument dispenser advisory 
        council. 
           (a) The nine persons must include: 
           (1) three public members, as defined in section 214.02.  At 
        least one of the public members shall be a hearing instrument 
        user and one of the public members shall be either a hearing 
        instrument user or an advocate of one; and 
           (2) three hearing instrument dispensers certified under 
        sections 153A.14 to 153A.20, each of whom is currently, and has 
        been for the five years immediately preceding their appointment, 
        engaged in hearing instrument dispensing in Minnesota and who 
        represent the occupation of hearing instrument dispensing and 
        who are not audiologists; and 
           (3) three audiologists who are certified hearing instrument 
        dispensers, are registered as audiologists under Minnesota 
        Rules, chapter 4750, or if no rules are in effect, audiologists 
        who hold current certificates of clinical competence in 
        audiology from the American Speech-Language-Hearing Association 
        and who represent the occupation of audiology. 
           (b) The factors the commissioner may consider when 
        appointing advisory council members include, but are not limited 
        to, professional affiliation, geographical location, and type of 
        practice. 
           (c) No two members of the advisory council shall be 
        employees of, or have binding contracts requiring sales 
        exclusively for, the same hearing instrument manufacturer or the 
        same employer. 
           Subd. 2.  [ORGANIZATION.] The advisory council shall be 
        organized and administered according to section 15.059, except 
        that, notwithstanding any other law to the contrary, the 
        advisory council shall not expire.  The council may form 
        committees to carry out its duties. 
           Subd. 3.  [DUTIES.] At the commissioner's request, the 
        advisory council shall: 
           (1) advise the commissioner regarding hearing instrument 
        dispenser certification standards; 
           (2) advise the commissioner on enforcement of sections 
        153A.13 to 153A.20; 
           (3) provide for distribution of information regarding 
        hearing instrument dispenser certification standards; 
           (4) review applications and make recommendations to the 
        commissioner on granting or denying certification or 
        certification renewal; 
           (5) review reports of investigations relating to 
        individuals and make recommendations to the commissioner as to 
        whether certification should be denied or disciplinary action 
        taken against the individual; and 
           (6) perform other duties authorized for advisory councils 
        by chapter 214, or as directed by the commissioner. 
           Sec. 32.  Minnesota Statutes 1994, section 214.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [HEALTH-RELATED LICENSING BOARD.] "Health-related 
        licensing board" means the board of examiners of nursing home 
        administrators established pursuant to section 144A.19, the 
        board of medical practice created pursuant to section 147.01, 
        the board of nursing created pursuant to section 148.181, the 
        board of chiropractic examiners established pursuant to section 
        148.02, the board of optometry established pursuant to section 
        148.52, the board of psychology established pursuant to section 
        148.90, the social work licensing board pursuant to section 
        148B.19, the board of marriage and family therapy pursuant to 
        section 148B.30, the office of mental health practitioner 
        advisory council practice established pursuant to section 
        148B.62 148B.61, the chemical dependency counseling licensing 
        advisory council established pursuant to section 148C.02, the 
        board of dietetics and nutrition practice established under 
        section 148.622, the board of dentistry established pursuant to 
        section 150A.02, the board of pharmacy established pursuant to 
        section 151.02, the board of podiatric medicine established 
        pursuant to section 153.02, and the board of veterinary 
        medicine, established pursuant to section 156.01. 
           Sec. 33.  Minnesota Statutes 1994, section 214.10, 
        subdivision 8, is amended to read: 
           Subd. 8.  [SPECIAL REQUIREMENTS FOR HEALTH-RELATED 
        LICENSING BOARDS.] In addition to the provisions of this section 
        that apply to all examining and licensing boards, the 
        requirements in this subdivision apply to all health-related 
        licensing boards, except the board of veterinary medicine. 
           (a) If the executive director or consulted board member 
        determines that a communication received alleges a violation of 
        statute or rule that involves sexual contact with a patient or 
        client, the communication shall be forwarded to the designee of 
        the attorney general for an investigation of the facts alleged 
        in the communication.  If, after an investigation it is the 
        opinion of the executive director or consulted board member that 
        there is sufficient evidence to justify disciplinary action, the 
        board shall conduct a disciplinary conference or hearing.  If, 
        after a hearing or disciplinary conference the board determines 
        that misconduct involving sexual contact with a patient or 
        client occurred, the board shall take disciplinary action.  
        Notwithstanding subdivision 2, a board may not attempt to 
        correct improper activities or redress grievances through 
        education, conciliation, and persuasion, unless in the opinion 
        of the executive director or consulted board member there is 
        insufficient evidence to justify disciplinary action.  The board 
        may settle a case by stipulation prior to, or during, a hearing 
        if the stipulation provides for disciplinary action. 
           (b) In addition to the information required under section 
        214.07, subdivision 1, each board shall include in its reports 
        to the legislature summaries of each individual case that 
        involved possible sexual contact with a patient or client.  The 
        summary must include a description of the alleged misconduct; 
        the general results of the investigation; the nature of board 
        activities relating to that case; the disposition of the case; 
        and the reasons for board decisions concerning the disposition 
        of the case.  The information disclosed under this section must 
        not include the name or specific identifying information about 
        any person, agency, or organization. 
           (c) A board member who has a direct current or former 
        financial connection or professional relationship to a person 
        who is the subject of board disciplinary activities must not 
        participate in board activities relating to that case. 
           (d) Each health-related licensing board shall establish 
        procedures for exchanging information with other Minnesota state 
        boards, agencies, and departments responsible for licensing 
        regulating health-related occupations, facilities, and programs, 
        and for coordinating investigations involving matters within the 
        jurisdiction of more than one licensing regulatory body.  The 
        procedures must provide for the forwarding to other licensing 
        regulatory bodies of all information and evidence, including the 
        results of investigations, that are relevant to matters within 
        that licensing body's regulatory jurisdiction.  Each 
        health-related licensing board shall have access to any data of 
        the department of human services relating to a person subject to 
        the jurisdiction of the licensing board.  The data shall have 
        the same classification under sections 13.01 to 13.88, the 
        Minnesota government data practices act, in the hands of the 
        agency receiving the data as it had in the hands of the 
        department of human services. 
           (e) Each health-related licensing board shall establish 
        procedures for exchanging information with other states 
        regarding disciplinary actions against licensees.  The 
        procedures must provide for the collection of information from 
        other states about disciplinary actions taken against persons 
        who are licensed to practice in Minnesota or who have applied to 
        be licensed in this state and the dissemination of information 
        to other states regarding disciplinary actions taken in 
        Minnesota.  In addition to any authority in chapter 13 
        permitting the dissemination of data, the board may, in its 
        discretion, disseminate data to other states regardless of its 
        classification under chapter 13.  Before transferring any data 
        that is not public, the board shall obtain reasonable assurances 
        from the receiving state that the data will not be made public. 
           Sec. 34.  Minnesota Statutes 1994, section 214.103, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] For purposes of this 
        section, "board" means "health-related licensing board" and does 
        not include the alcohol and drug counselors licensing advisory 
        council established pursuant to section 148C.02, or the 
        non-health-related licensing boards.  Nothing in this section 
        supersedes section 214.10, subdivisions 2a, 3, 8, and 9, as they 
        apply to the health-related licensing boards. 
           Sec. 35.  [REPEALER.] 
           Minnesota Statutes 1994, sections 148B.62; 148C.01, 
        subdivision 8; 148C.03, subdivisions 2 and 3; 148C.035; 148C.09, 
        subdivision 3; and 153A.19, subdivision 1, are repealed. 
           Minnesota Rules, chapters 4692; and 4745, are repealed. 
           Sec. 36.  [EFFECTIVE DATE.] 
           Sections 1 to 34 are effective the day following final 
        enactment. 
           Presented to the governor May 12, 1995 
           Signed by the governor May 15, 1995, 10:10 a.m.