Minnesota Session Laws - 1996, Regular Session

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 384-S.F.No. 1981 
                  An act relating to commerce; regulating the 
                  enforcement powers of the commissioner of commerce; 
                  providing for the study and consideration of certain 
                  insurance benefits; modifying reporting and 
                  enforcement provisions for charitable solicitations; 
                  regulating the repair of certain consumer goods; 
                  modifying the definition of "nonconformity" for 
                  purposes of assistive listening device regulation; 
                  amending Minnesota Statutes 1994, sections 45.027, 
                  subdivision 5, and by adding a subdivision; 325F.56, 
                  subdivision 2; and 325F.62, subdivision 3; Minnesota 
                  Statutes 1995 Supplement, sections 309.53, subdivision 
                  3; and 325G.203, subdivision 11. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 45.027, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LEGAL ACTIONS; INJUNCTIONS; CEASE AND DESIST 
        ORDERS.] Whenever it appears to the commissioner that any person 
        has engaged or is about to engage in any act or practice 
        constituting a violation of any law, rule, or order related to 
        the duties and responsibilities entrusted to the commissioner, 
        the commissioner has the following powers:  (1) the commissioner 
        may bring an action in the name of the state in Ramsey county 
        district court or the district court of the an appropriate 
        county to enjoin the acts or practices and to enforce 
        compliance, or the commissioner may refer the matter to the 
        attorney general or the county attorney of the appropriate 
        county.  Upon a proper showing, A permanent or temporary 
        injunction, restraining order, or other appropriate relief must 
        be granted; (2) based solely upon a showing that the person has 
        engaged or is about to engage in an act or practice constituting 
        a violation of a law, rule, cease and desist order, or other 
        order related to the duties and responsibilities entrusted to 
        the commissioner.  The terms of this subdivision govern an 
        action brought under this subdivision, including an action 
        against a person who, for whatever reason, claims that the 
        subject law, rule, cease and desist order or other order does 
        not apply to the person. 
           Subd. 5a.  [CEASE AND DESIST ORDERS.] (a) Whenever it 
        appears to the commissioner that a person has engaged or is 
        about to engage in an act or practice constituting a violation 
        of a law, rule, or order related to the duties and 
        responsibilities entrusted to the commissioner, the commissioner 
        may issue and cause to be served upon the person an order 
        requiring the person to cease and desist from violations.  
           (b) The cease and desist order must be calculated to give 
        reasonable notice of the rights of the person to request a 
        hearing and must state the reasons for the entry of the order.  
        A hearing must be held not later than seven ten days after the 
        request for the hearing is received by the commissioner, unless 
        the person requesting the hearing and the department of commerce 
        agree the hearing be scheduled after the seven-day period.  
        After the completion of the hearing and, the administrative law 
        judge shall issue a report within ten days.  Within 20 15 days 
        after receiving the administrative law judge's report, the 
        commissioner shall issue a further order vacating or making 
        permanent the cease and desist order or making it permanent as 
        the facts require.  If no hearing is requested within 30 days of 
        service of the order, the order will become final and will 
        remain in effect until it is modified or vacated by the 
        commissioner.  Unless otherwise provided, all hearings must be 
        conducted in accordance with chapter 14.  The time periods 
        provided in this provision may be waived by agreement of the 
        person requesting the hearing and the department of commerce and 
        the person against whom the cease and desist order is issued.  
        If the person to whom a cease and desist order is issued fails 
        to appear at the hearing after being duly notified, the person 
        is in default, and the proceeding may be determined against that 
        person upon consideration of the cease and desist order, the 
        allegations of which may be considered to be true.  Unless 
        otherwise provided, all hearings must be conducted according to 
        chapter 14.  The commissioner may adopt rules of procedure 
        concerning all proceedings conducted under this subdivision. 
           (c) If no hearing is requested within 30 days of service of 
        the order, the cease and desist order will become permanent. 
           (d) A cease and desist order issued under this subdivision 
        remains in effect until it is modified or vacated by the 
        commissioner.  The administrative proceeding provided by this 
        subdivision, and subsequent appellate judicial review of that 
        administrative proceeding, constitutes the exclusive remedy for 
        determining whether the commissioner properly issued the cease 
        and desist order and whether the cease and desist order should 
        be vacated or made permanent. 
           Sec. 2.  Minnesota Statutes 1994, section 45.027, is 
        amended by adding a subdivision to read: 
           Subd. 5b.  [ENFORCEMENT OF VIOLATIONS OF CEASE AND DESIST 
        ORDERS.] (a) Whenever the commissioner under subdivision 5 seeks 
        to enforce compliance with a cease and desist order that has 
        been made permanent, the allegations in the cease and desist 
        order are considered conclusively established for purposes of a 
        proceeding under subdivision 5 for permanent or temporary relief 
        to enforce the cease and desist order.  Whenever the 
        commissioner under subdivision 5 seeks to enforce compliance 
        with a cease and desist order when a hearing or hearing request 
        on the cease and desist order is pending, or the time has not 
        yet expired to request a hearing on whether a cease and desist 
        order should be vacated or made permanent, the allegations in 
        the cease and desist order are considered conclusively 
        established for purposes of a proceeding under subdivision 5 for 
        temporary relief to enforce the cease and desist order.  
           (b) Notwithstanding this subdivision or subdivision 5 or 5a 
        to the contrary, the person against whom the cease and desist 
        order is issued and who has requested a hearing under 
        subdivision 5a may within 15 days after service of cease and 
        desist order bring an action in Ramsey county district court for 
        issuance of an injunction to suspend enforcement of the cease 
        and desist order pending a final decision of the commissioner 
        under subdivision 5a to vacate or make permanent the cease and 
        desist order.  The court shall determine whether to issue such 
        an injunction based on traditional principles of temporary 
        relief. 
           Sec. 3.  Minnesota Statutes 1995 Supplement, section 
        309.53, subdivision 3, is amended to read: 
           Subd. 3.  The financial statement shall include a balance 
        sheet, statement of income and expense, and statement of 
        functional expenses, shall be consistent with forms furnished by 
        the attorney general, and shall be prepared in accordance with 
        generally accepted accounting principles so as to make a full 
        disclosure of the following, including necessary allocations 
        between each item and the basis of such allocations: 
           (a) total receipts and total income from all sources; 
           (b) cost of management and general; 
           (c) program services; 
           (d) cost of fund raising; 
           (d) (e) cost of public education; 
           (e) (f) funds or properties transferred out of state, with 
        explanation as to recipient and purpose; 
           (f) (g) total net amount disbursed or dedicated within this 
        state, broken down into total amounts disbursed or dedicated for 
        each major purpose, charitable or otherwise; 
           (g) (h) names of professional fund raisers used during the 
        accounting year and the financial compensation or and profit 
        resulting to each professional fund raiser; and 
           (h) (i) a list of the five highest paid directors, 
        officers, and employees of the organization and its related 
        organizations, as that term is defined by section 317A.011, 
        subdivision 18, that receive total compensation of more than 
        $50,000, together with the total compensation paid to each.  
        Total compensation shall include salaries, fees, bonuses, fringe 
        benefits, severance payments, and deferred compensation paid by 
        the charitable organization and all related organizations as 
        that term is defined by section 317A.011, subdivision 18.  On 
        July 1, 1997, and thereafter, the charitable organization shall 
        begin disclosure of the total compensation of the five highest 
        paid directors, officers, and employees of any related 
        organization if the related organization receives funds from the 
        charitable organization. 
           Unless otherwise required by this subdivision, the 
        financial statement need not be certified. 
           A financial statement of a charitable organization which 
        has received total revenue in excess of $350,000 for the 12 
        months of operation covered by the statement shall be 
        accompanied by an audited financial statement prepared in 
        accordance with generally accepted accounting principles that 
        has been examined by an independent certified public accountant 
        for the purpose of expressing an opinion.  In preparing the 
        audit the certified public accountant shall take into 
        consideration capital, endowment or other reserve funds, if any, 
        controlled by the charitable organization.  
           Sec. 4.  Minnesota Statutes 1994, section 325F.56, 
        subdivision 2, is amended to read: 
           Subd. 2.  "Repairs" means work performed for a total price 
        of more than $100 and less than $2,000 $7,500, including the 
        price of parts and materials, to restore a malfunctioning, 
        defective, or worn motor vehicle, appliance, or dwelling place 
        used primarily for personal, family, or household purposes and 
        not primarily for business or agricultural purposes.  "Repairs" 
        do not include service calls or estimates. 
           Sec. 5.  Minnesota Statutes 1994, section 325F.62, 
        subdivision 3, is amended to read: 
           Subd. 3.  Each shop shall conspicuously display a sign that 
        states the following:  "Upon a customer's request, this shop is 
        required to provide a written estimate for repairs costing $100 
        to $2,000 $7,500 if the shop agrees to perform the repairs.  The 
        shop's final price cannot exceed its written estimate by more 
        than ten percent without the prior authorization of the 
        customer.  You must request that the estimate be in writing.  An 
        oral estimate is not subject to the above repair cost 
        limitations.  If the shop charges a fee for the storage or care 
        of repaired motor vehicles or appliances, the shop shall 
        conspicuously display a sign that states the amount assessed for 
        storage or care, when the charge begins to accrue, and the 
        interval of time between assessments." 
           Sec. 6.  Minnesota Statutes 1995 Supplement, section 
        325G.203, subdivision 11, is amended to read: 
           Subd. 11.  [NONCONFORMITY.] "Nonconformity" means a 
        specific condition or generic defect or malfunction, or a defect 
        or condition that substantially impairs the use, value, or 
        safety of an assistive device, but does not include a condition 
        or defect that is the result of abuse or unauthorized 
        modification or alteration of the assistive device by the 
        consumer.  
           For those assistive devices regulated under section 
        153A.19, "nonconformity" does not include a condition of the 
        device that is the result of normal use which could be resolved 
        through fitting adjustments, cleaning, or proper care. 
           Sec. 7.  [PILOT PROJECT.] 
           The commissioner of employee relations shall develop a 
        proposal for a pilot project to determine the feasibility of 
        coordinating workers' compensation and insurance benefits.  This 
        proposal may include a pilot project for employees of local 
        units of government as well as state employees.  In developing 
        this project, the commissioner shall consult with the joint 
        labor management committee on health plans; the public employees 
        insurance program advisory board; the departments of labor and 
        industry, health, and commerce; and health plans serving state 
        employees and other public employees. 
           The commissioner shall report on the implementation of the 
        pilot project, and any recommendations, to the legislature by 
        January 15, 1997. 
           Sec. 8.  [LONG-TERM CARE COVERAGE.] 
           The commissioner of employee relations, with the assistance 
        of the labor-management committee, shall consider an optional 
        long-term care insurance benefit that may be offered to retiring 
        state employees.  The benefit would provide nursing home and/or 
        home care benefits.  Premiums for the benefit would be paid for 
        by retiring employees who choose to elect this coverage.  The 
        commissioner shall report to the legislature by January 15, 1997.
           Sec. 9.  [EFFECTIVE DATE.] 
           Sections 3 to 6 and 8 are effective on the day following 
        final enactment. 
           Presented to the governor March 25, 1996 
           Signed by the governor March 27, 1996, 11:30 a.m.