Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

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

                             CHAPTER 205-S.F.No. 95 
                  An act relating to health; modifying provisions 
                  related to health maintenance organizations; modifying 
                  lead inspection provisions; modifying vital statistics 
                  provisions; modifying asbestos abatement provisions; 
                  modifying provisions relating to traumatic brain 
                  injury and spinal cord injury notification and data; 
                  modifying provisions for hearings related to 
                  permitting, licensing, registration, and 
                  certification; modifying revocation and suspension 
                  provisions for permits, licenses, registration, and 
                  certifications; modifying provisions for testing 
                  infants for inborn metabolic errors; modifying medical 
                  education and research costs trust fund provisions; 
                  requiring conformance with federal regulations; 
                  amending Minnesota Statutes 1996, sections 62D.02, 
                  subdivision 10; 62D.03, subdivisions 3 and 4; 62D.04, 
                  subdivision 3; 62D.042, subdivision 3; 62D.06, 
                  subdivision 1; 62D.07, subdivision 3; 62D.09, 
                  subdivisions 1, 3, and 8; 62D.102; 62D.11, 
                  subdivisions 1, 1b, and 3; 62D.12, by adding a 
                  subdivision; 62D.20, subdivision 2; 62J.60, 
                  subdivision 3; 62J.69, subdivision 1; 144.125; 
                  144.215, subdivision 1; 144.218; 144.664, subdivision 
                  3; 144.665; 144.9501, subdivision 29, and by adding a 
                  subdivision; 144.9504, subdivision 2; 144.9506, 
                  subdivisions 1 and 5; 144.99, subdivisions 9 and 10; 
                  257.73; 326.71, subdivisions 4 and 6; 326.72, 
                  subdivision 2; 326.74; 326.76; 326.78, subdivision 1; 
                  and 326.785; repealing Minnesota Statutes 1996, 
                  sections 62D.03, subdivision 2; and 62D.11, 
                  subdivision 4; Laws 1988, chapter 495, section 1; 
                  Minnesota Rules, part 4600.3900. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 62D.02, 
        subdivision 10, is amended to read: 
           Subd. 10.  "Consumer" means any person other than a person 
        (a) whose occupation involves, or before retirement involved, 
        the administration of health activities or the providing of 
        health services; (b) who is, or ever was, employed by a health 
        care facility, as a licensed health professional; or (c) who 
        has, or ever had, a direct, substantial financial or managerial 
        interest in the rendering of health service other than the 
        payment of reasonable expense reimbursement or compensation as a 
        member of the board of a health maintenance organization, 
        including an enrollee, to whom a health maintenance organization 
        directs marketing materials. 
           Sec. 2.  Minnesota Statutes 1996, section 62D.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  The commissioner of health may require any person 
        providing physician and hospital services with payments made in 
        the manner set forth in section 62D.02, subdivision 4, to apply 
        for a certificate of authority under sections 62D.01 to 62D.30.  
        An applicant may continue to operate until the commissioner of 
        health acts upon the application.  In the event that an 
        application is denied, the applicant shall henceforth be treated 
        as a health maintenance organization whose certificate of 
        authority has been revoked.  Any person directed to apply for a 
        certificate of authority shall be subject to the provisions 
        of this subdivision 2. 
           Sec. 3.  Minnesota Statutes 1996, section 62D.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  Each application for a certificate of authority 
        shall be verified by an officer or authorized representative of 
        the applicant, and shall be in a form prescribed by the 
        commissioner of health.  Each application shall include the 
        following: 
           (a) a copy of the basic organizational document, if any, of 
        the applicant and of each major participating entity; such as 
        the articles of incorporation, or other applicable documents, 
        and all amendments thereto; 
           (b) a copy of the bylaws, rules and regulations, or similar 
        document, if any, and all amendments thereto which regulate the 
        conduct of the affairs of the applicant and of each major 
        participating entity; 
           (c) a list of the names, addresses, and official positions 
        of the following: 
           (1) all members of the board of directors, or governing 
        body of the local government unit, and the principal officers 
        and shareholders of the applicant organization; and 
           (2) all members of the board of directors, or governing 
        body of the local government unit, and the principal officers of 
        the major participating entity and each shareholder beneficially 
        owning more than ten percent of any voting stock of the major 
        participating entity; 
           The commissioner may by rule identify persons included in 
        the term "principal officers"; 
           (d) a full disclosure of the extent and nature of any 
        contract or financial arrangements between the following:  
           (1) the health maintenance organization and the persons 
        listed in clause (c)(1); 
           (2) the health maintenance organization and the persons 
        listed in clause (c)(2); 
           (3) each major participating entity and the persons listed 
        in clause (c)(1) concerning any financial relationship with the 
        health maintenance organization; and 
           (4) each major participating entity and the persons listed 
        in clause (c)(2) concerning any financial relationship with the 
        health maintenance organization; 
           (e) the name and address of each participating entity and 
        the agreed upon duration of each contract or agreement; 
           (f) a copy of the form of each contract binding the 
        participating entities and the health maintenance organization.  
        Contractual provisions shall be consistent with the purposes of 
        sections 62D.01 to 62D.30, in regard to the services to be 
        performed under the contract, the manner in which payment for 
        services is determined, the nature and extent of 
        responsibilities to be retained by the health maintenance 
        organization, the nature and extent of risk sharing permissible, 
        and contractual termination provisions; 
           (g) a copy of each contract binding major participating 
        entities and the health maintenance organization.  Contract 
        information filed with the commissioner shall be confidential 
        and subject to the provisions of section 13.37, subdivision 1, 
        clause (b), upon the request of the health maintenance 
        organization.  
           Upon initial filing of each contract, the health 
        maintenance organization shall file a separate document 
        detailing the projected annual expenses to the major 
        participating entity in performing the contract and the 
        projected annual revenues received by the entity from the health 
        maintenance organization for such performance.  The commissioner 
        shall disapprove any contract with a major participating entity 
        if the contract will result in an unreasonable expense under 
        section 62D.19.  The commissioner shall approve or disapprove a 
        contract within 30 days of filing.  
           Within 120 days of the anniversary of the implementation of 
        each contract, the health maintenance organization shall file a 
        document detailing the actual expenses incurred and reported by 
        the major participating entity in performing the contract in the 
        preceding year and the actual revenues received from the health 
        maintenance organization by the entity in payment for the 
        performance.; 
           Contracts implemented prior to April 25, 1984, shall be 
        filed within 90 days of April 25, 1984.  These contracts are 
        subject to the provisions of section 62D.19, but are not subject 
        to the prospective review prescribed by this clause, unless or 
        until the terms of the contract are modified.  Commencing with 
        the next anniversary of the implementation of each of these 
        contracts immediately following filing, the health maintenance 
        organization shall, as otherwise required by this subdivision, 
        file annual actual expenses and revenues; 
           (h) a statement generally describing the health maintenance 
        organization, its health maintenance contracts and separate 
        health service contracts, facilities, and personnel, including a 
        statement describing the manner in which the applicant proposes 
        to provide enrollees with comprehensive health maintenance 
        services and separate health services; 
           (i) a copy of the form of each evidence of coverage to be 
        issued to the enrollees; 
           (j) a copy of the form of each individual or group health 
        maintenance contract and each separate health service contract 
        which is to be issued to enrollees or their representatives; 
           (k) financial statements showing the applicant's assets, 
        liabilities, and sources of financial support.  If the 
        applicant's financial affairs are audited by independent 
        certified public accountants, a copy of the applicant's most 
        recent certified financial statement may be deemed to satisfy 
        this requirement; 
           (l) a description of the proposed method of marketing the 
        plan, a schedule of proposed charges, and a financial plan which 
        includes a three-year projection of the expenses and income and 
        other sources of future capital; 
           (m) a statement reasonably describing the geographic area 
        or areas to be served and the type or types of enrollees to be 
        served; 
           (n) a description of the complaint procedures to be 
        utilized as required under section 62D.11; 
           (o) a description of the procedures and programs to be 
        implemented to meet the requirements of section 62D.04, 
        subdivision 1, clauses (b) and (c) and to monitor the quality of 
        health care provided to enrollees; 
           (p) a description of the mechanism by which enrollees will 
        be afforded an opportunity to participate in matters of policy 
        and operation under section 62D.06; 
           (q) a copy of any agreement between the health maintenance 
        organization and an insurer or nonprofit health service 
        corporation regarding reinsurance, stop-loss coverage, 
        insolvency coverage, or any other type of coverage for potential 
        costs of health services, as authorized in sections 62D.04, 
        subdivision 1, clause (f), 62D.05, subdivision 3, and 62D.13; 
           (r) a copy of the conflict of interest policy which applies 
        to all members of the board of directors and the principal 
        officers of the health maintenance organization, as described in 
        section 62D.04, subdivision 1, paragraph (g).  All currently 
        licensed health maintenance organizations shall also file a 
        conflict of interest policy with the commissioner within 60 days 
        after August 1, 1990, or at a later date if approved by the 
        commissioner; 
           (s) a copy of the statement that describes the health 
        maintenance organization's prior authorization administrative 
        procedures; 
           (t) a copy of the agreement between the guaranteeing 
        organization and the health maintenance organization, as 
        described in section 62D.043, subdivision 6; and 
           (u) other information as the commissioner of health may 
        reasonably require to be provided. 
           Sec. 4.  Minnesota Statutes 1996, section 62D.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  Except as provided in section 62D.03, subdivision 
        2, no person who has not been issued a certificate of authority 
        shall use the words "health maintenance organization" or the 
        initials "HMO" in its name, contracts or literature.  Provided, 
        however, that persons who are operating under a contract with, 
        operating in association with, enrolling enrollees for, or 
        otherwise authorized by a health maintenance organization 
        licensed under sections 62D.01 to 62D.30 to act on its behalf 
        may use the terms "health maintenance organization" or "HMO" for 
        the limited purpose of denoting or explaining their association 
        or relationship with the authorized health maintenance 
        organization.  No health maintenance organization which has a 
        minority of consumers enrollees and members elected according to 
        section 62D.06, subdivision 1, as members of its board of 
        directors shall use the words "consumer controlled" in its name 
        or in any way represent to the public that it is controlled by 
        consumers. 
           Sec. 5.  Minnesota Statutes 1996, section 62D.042, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PHASE-IN FOR EXISTING ORGANIZATIONS.] (a) 
        Organizations that obtained a certificate of authority on or 
        before April 25, 1988, have until December 31, 1993, to 
        establish a net worth of at least 8-1/3 percent of the sum of 
        all expenses incurred during the previous calendar year, or 
        $1,000,000, whichever is greater. 
           (b) By December 31, 1989, organizations shall have a net 
        worth of at least one-fifth of 8-1/3 percent of the sum of all 
        expenses incurred during the previous calendar year, or 
        $1,000,000, whichever is greater. 
           (c) By December 31, 1990, organizations shall have a net 
        worth of at least two-fifths of 8-1/3 percent of the sum of all 
        expenses incurred during the previous calendar year, or 
        $1,000,000, whichever is greater. 
           (d) By December 31, 1991, organizations shall have a net 
        worth of at least three-fifths of 8-1/3 percent of the sum of 
        all expenses incurred during the previous calendar year, or 
        $1,000,000, whichever is greater. 
           (e) By December 31, 1992, organizations Each organization 
        shall have a net worth of at least four-fifths of 8-1/3 percent 
        of the sum of all expenses incurred during the previous calendar 
        year, or $1,000,000, whichever is greater. 
           Sec. 6.  Minnesota Statutes 1996, section 62D.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  The governing body of any health 
        maintenance organization which is a nonprofit corporation may 
        include enrollees, providers, or other individuals; provided, 
        however, that after a health maintenance organization which is a 
        nonprofit corporation has been authorized under sections 62D.01 
        to 62D.30 for one year, at least 40 percent of the governing 
        body shall be composed of consumers enrollees and members 
        elected by the enrollees and members from among the 
        enrollees and members.  For purposes of this section, "member" 
        means a consumer who receives health care services through a 
        self-insured contract that is administered by the health 
        maintenance organization or its related third-party 
        administrator.  The number of members elected to the governing 
        body shall not exceed the number of enrollees elected to the 
        governing body.  An enrollee or member elected to the governing 
        board may not be a person (1) whose occupation involves, or 
        before retirement involved, the administration of health 
        activities or the provision of health services; (2) who is or 
        was employed by a health care facility as a licensed health 
        professional; or (3) who has or had a direct substantial 
        financial or managerial interest in the rendering of a health 
        service, other than the payment of a reasonable expense 
        reimbursement or compensation as a member of the board of a 
        health maintenance organization. 
           After a health maintenance organization which is a local 
        governmental unit has been authorized under sections 62D.01 to 
        62D.30 for one year, an enrollee advisory body shall be 
        established.  The enrollees who make up this advisory body shall 
        be elected by the enrollees from among the enrollees. 
           Sec. 7.  Minnesota Statutes 1996, section 62D.07, 
        subdivision 3, is amended to read: 
           Subd. 3.  Contracts and evidences of coverage shall contain:
           (a) No provisions or statements which are unjust, unfair, 
        inequitable, misleading, deceptive, or which are untrue, 
        misleading, or deceptive as defined in section 62D.12, 
        subdivision 1; and 
           (b) A clear, concise and complete statement of: 
           (1) the health care services and the insurance or other 
        benefits, if any, to which the enrollee is entitled under the 
        health maintenance contract; 
           (2) any exclusions or limitations on the services, kind of 
        services, benefits, or kind of benefits, to be provided, 
        including any deductible or copayment feature and requirements 
        for referrals, prior authorizations, and second opinions; 
           (3) where and in what manner information is available as to 
        how services, including emergency and out of area services, may 
        be obtained; 
           (4) the total amount of payment and copayment, if any, for 
        health care services and the indemnity or service benefits, if 
        any, which the enrollee is obligated to pay with respect to 
        individual contracts, or an indication whether the plan is 
        contributory or noncontributory with respect to group 
        certificates; and 
           (5) a description of the health maintenance organization's 
        method for resolving enrollee complaints and a statement 
        identifying the commissioner as an external source with whom 
        grievances complaints may be registered.; and 
           (c) On the cover page of the evidence of coverage and 
        contract, a clear and complete statement of enrollees' rights as 
        consumers.  The statement must be in bold print and captioned 
        "Important Consumer Enrollee Information and Enrollee Bill of 
        Rights" and must include but not be limited to the following 
        provisions in the following language or in substantially similar 
        language approved in advance by the commissioner, except that 
        paragraph (8) does not apply to prepaid health plans providing 
        coverage for programs administered by the commissioner of human 
        services:  
                       CONSUMER ENROLLEE INFORMATION 
           (1) COVERED SERVICES:  Services provided by (name of health 
        maintenance organization) will be covered only if services are 
        provided by participating (name of health maintenance 
        organization) providers or authorized by (name of health 
        maintenance organization).  Your contract fully defines what 
        services are covered and describes procedures you must follow to 
        obtain coverage. 
           (2) PROVIDERS:  Enrolling in (name of health maintenance 
        organization) does not guarantee services by a particular 
        provider on the list of providers.  When a provider is no longer 
        part of (name of health maintenance organization), you must 
        choose among remaining (name of the health maintenance 
        organization) providers. 
           (3) REFERRALS:  Certain services are covered only upon 
        referral.  See section (section number) of your contract for 
        referral requirements.  All referrals to non-(name of health 
        maintenance organization) providers and certain types of health 
        care providers must be authorized by (name of health maintenance 
        organization). 
           (4) EMERGENCY SERVICES:  Emergency services from providers 
        who are not affiliated with (name of health maintenance 
        organization) will be covered only if proper procedures are 
        followed.  Your contract explains the procedures and benefits 
        associated with emergency care from (name of health maintenance 
        organization) and non-(name of health maintenance organization) 
        providers. 
           (5) EXCLUSIONS:  Certain services or medical supplies are 
        not covered.  You should read the contract for a detailed 
        explanation of all exclusions. 
           (6) CONTINUATION:  You may convert to an individual health 
        maintenance organization contract or continue coverage under 
        certain circumstances.  These continuation and conversion rights 
        are explained fully in your contract. 
           (7) CANCELLATION:  Your coverage may be canceled by you or 
        (name of health maintenance organization) only under certain 
        conditions.  Your contract describes all reasons for 
        cancellation of coverage. 
           (8) NEWBORN COVERAGE:  If your health plan provides for 
        dependent coverage, a newborn infant is covered from birth, but 
        only if services are provided by participating (name of health 
        maintenance organization) providers or authorized by (name of 
        health maintenance organization).  Certain services are covered 
        only upon referral.  (Name of health maintenance organization) 
        will not automatically know of the infant's birth or that you 
        would like coverage under your plan.  You should notify (name of 
        health maintenance organization) of the infant's birth and that 
        you would like coverage.  If your contract requires an 
        additional premium for each dependent, (name of health 
        maintenance organization) is entitled to all premiums due from 
        the time of the infant's birth until the time you notify (name 
        of health maintenance organization) of the birth.  (Name of 
        health maintenance organization) may withhold payment of any 
        health benefits for the newborn infant until any premiums you 
        owe are paid. 
           (9) PRESCRIPTION DRUGS AND MEDICAL EQUIPMENT:  Enrolling in 
        (name of health maintenance organization) does not guarantee 
        that any particular prescription drug will be available nor that 
        any particular piece of medical equipment will be available, 
        even if the drug or equipment is available at the start of the 
        contract year. 
                            ENROLLEE BILL OF RIGHTS 
           (1) Enrollees have the right to available and accessible 
        services including emergency services, as defined in your 
        contract, 24 hours a day and seven days a week; 
           (2) Enrollees have the right to be informed of health 
        problems, and to receive information regarding treatment 
        alternatives and risks which is sufficient to assure informed 
        choice; 
           (3) Enrollees have the right to refuse treatment, and the 
        right to privacy of medical and financial records maintained by 
        the health maintenance organization and its health care 
        providers, in accordance with existing law; 
           (4) Enrollees have the right to file a grievance complaint 
        with the health maintenance organization and the commissioner of 
        health and the right to initiate a legal proceeding when 
        experiencing a problem with the health maintenance organization 
        or its health care providers; 
           (5) Enrollees have the right to a grace period of 31 days 
        for the payment of each premium for an individual health 
        maintenance contract falling due after the first premium during 
        which period the contract shall continue in force; 
           (6) Medicare enrollees have the right to voluntarily 
        disenroll from the health maintenance organization and the right 
        not to be requested or encouraged to disenroll except in 
        circumstances specified in federal law; and 
           (7) Medicare enrollees have the right to a clear 
        description of nursing home and home care benefits covered by 
        the health maintenance organization. 
           Sec. 8.  Minnesota Statutes 1996, section 62D.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  (a) Any written marketing materials which 
        may be directed toward potential enrollees and which include a 
        detailed description of benefits provided by the health 
        maintenance organization shall include a statement of 
        consumer enrollee information and rights as described in section 
        62D.07, subdivision 3, paragraphs (b) and (c).  Prior to any 
        oral marketing presentation, the agent marketing the plan must 
        inform the potential enrollees that any complaints concerning 
        the material presented should be directed to the health 
        maintenance organization, the commissioner of health, or, if 
        applicable, the employer. 
           (b) Detailed marketing materials must affirmatively 
        disclose all exclusions and limitations in the organization's 
        services or kinds of services offered to the contracting party, 
        including but not limited to the following types of exclusions 
        and limitations: 
           (1) health care services not provided; 
           (2) health care services requiring copayments or 
        deductibles paid by enrollees; 
           (3) the fact that access to health care services does not 
        guarantee access to a particular provider type; and 
           (4) health care services that are or may be provided only 
        by referral of a physician. 
           (c) No marketing materials may lead consumers to believe 
        that all health care needs will be covered.  All marketing 
        materials must alert consumers to possible uncovered expenses 
        with the following language in bold print:  "THIS HEALTH CARE 
        PLAN MAY NOT COVER ALL YOUR HEALTH CARE EXPENSES; READ YOUR 
        CONTRACT CAREFULLY TO DETERMINE WHICH EXPENSES ARE COVERED."  
        Immediately following the disclosure required under paragraph 
        (b), clause (3), consumers must be given a telephone number to 
        use to contact the health maintenance organization for specific 
        information about access to provider types. 
           (d) The disclosures required in paragraphs (b) and (c) are 
        not required on billboards or image, and name identification 
        advertisement. 
           Sec. 9.  Minnesota Statutes 1996, section 62D.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  Every health maintenance organization or its 
        representative shall annually, before June 1, provide to its 
        enrollees the following:  (1) a summary of its most recent 
        annual financial statement including a balance sheet and 
        statement of receipts and disbursements; (2) a description of 
        the health maintenance organization, its health care plan or 
        plans, its facilities and personnel, any material changes 
        therein since the last report; (3) the current evidence of 
        coverage or contract; and (4) a statement of consumer enrollee 
        information and rights as described in section 62D.07, 
        subdivision 3, paragraph (c). 
           Sec. 10.  Minnesota Statutes 1996, section 62D.09, 
        subdivision 8, is amended to read: 
           Subd. 8.  Each health maintenance organization shall issue 
        a membership card to its enrollees.  The membership card must: 
           (1) identify the health maintenance organization; 
           (2) include the name, address, and telephone number to call 
        if the enroller enrollee has a complaint; 
           (3) include the telephone number to call or the instruction 
        on how to receive authorization for emergency care; and 
           (4) include one of the following: 
           (i) the telephone number to call to appeal to or file a 
        complaint with the commissioner of health.; or 
           (ii) for persons enrolled under section 256.9363, 256B.69, 
        or 256D.03, the telephone number to call to file a complaint 
        with the ombudsperson designated by the commissioner of human 
        services under section 256B.69 and the address to appeal to the 
        commissioner of human services.  The ombudsperson shall annually 
        provide the commissioner of health with a summary of complaints 
        and actions taken. 
           Sec. 11.  Minnesota Statutes 1996, section 62D.102, is 
        amended to read: 
           62D.102 [FAMILY THERAPY.] 
           (a) In addition to minimum requirements established in 
        other sections, all group health maintenance contracts providing 
        benefits for mental or nervous disorder treatments in a hospital 
        shall also provide coverage for at least ten hours of treatment 
        over a 12-month period with a copayment not to exceed the 
        greater of $10 or 20 percent of the applicable usual and 
        customary charge for mental or nervous disorder consultation, 
        diagnosis and treatment services delivered while the enrollee is 
        not a bed patient in a hospital and at least 75 percent of the 
        cost of the usual and customary charges for any additional hours 
        of ambulatory mental health treatment during the same 12-month 
        benefit period for serious or persistent mental or nervous 
        disorders.  Prior authorization may be required for an extension 
        of coverage beyond ten hours of treatment.  This prior 
        authorization must be based upon the severity of the disorder, 
        the patient's risk of deterioration without ongoing treatment 
        and maintenance, degree of functional impairment, and a concise 
        treatment plan.  Authorization for extended treatment may be 
        limited to a maximum of 30 visit hours during any 12-month 
        benefit period. 
           (b) For purposes of this section, Covered treatment for a 
        minor includes treatment for the family if family therapy is 
        recommended by a health maintenance organization provider.  For 
        purposes of determining benefits under this section, "hours of 
        treatment" means treatment rendered on an individual or 
        single-family basis.  If treatment is rendered on a group basis, 
        the hours of covered group treatment must be provided at a ratio 
        of no less than two group treatment sessions to one individual 
        treatment hour.  For a health maintenance contract that is 
        offered as a companion to a health insurance subscriber 
        contract, the benefits for mental or nervous disorders must be 
        calculated in aggregate for the health maintenance contract and 
        the health insurance subscriber contract. 
           Sec. 12.  Minnesota Statutes 1996, section 62D.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ENROLLEE COMPLAINT SYSTEM.] Every health 
        maintenance organization shall establish and maintain a 
        complaint system, as required under section 62Q.105 to provide 
        reasonable procedures for the resolution of written complaints 
        initiated by or on behalf of enrollees concerning the provision 
        of health care services.  "Provision of health services" 
        includes, but is not limited to, questions of the scope of 
        coverage, quality of care, and administrative operations.  The 
        health maintenance organization must inform enrollees that they 
        may choose to use an alternative dispute resolution process to 
        appeal a health maintenance organization's internal appeal 
        decision.  If an enrollee chooses to use an alternative dispute 
        resolution process, the health maintenance organization must 
        participate. 
           Sec. 13.  Minnesota Statutes 1996, section 62D.11, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [EXPEDITED RESOLUTION OF COMPLAINTS ABOUT 
        URGENTLY NEEDED SERVICE MEDICALLY URGENT SERVICES.] In addition 
        to any remedy contained in subdivision 1a, when a complaint 
        involves a dispute about a health maintenance organization's 
        coverage of an immediately and urgently needed a medically 
        urgent service, the commissioner may also order the health 
        maintenance organization to use an expedited system to process 
        the complaint.  
           Sec. 14.  Minnesota Statutes 1996, section 62D.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DENIAL OF SERVICE COVERAGE.] Within a reasonable 
        time after receiving an enrollee's written or oral communication 
        to the health maintenance organization concerning a refusal 
        denial of service coverage or inadequacy of services, the health 
        maintenance organization shall provide the enrollee with a 
        written statement of the reason for the refusal denial of 
        service coverage, and a statement approved by the commissioner 
        of health which explains the health maintenance organization 
        complaint procedures, and in the case of Medicare enrollees, 
        which also explains Medicare appeal procedures. 
           Sec. 15.  Minnesota Statutes 1996, section 62D.12, is 
        amended by adding a subdivision to read: 
           Subd. 19.  [COVERAGE OF SERVICE.] A health maintenance 
        organization may not deny or limit coverage of a service which 
        the enrollee has already received solely on the basis of lack of 
        prior authorization or second opinion, to the extent that the 
        service would otherwise have been covered under the member's 
        contract by the health maintenance organization had prior 
        authorization or second opinion been obtained. 
           Sec. 16.  Minnesota Statutes 1996, section 62D.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PRIOR AUTHORIZATION.] The commissioner shall 
        adopt rules that address the issue of appropriate prior 
        authorization requirements, considering consumer enrollee needs, 
        administrative concerns, and the nature of the benefit. 
           Sec. 17.  Minnesota Statutes 1996, section 62J.60, 
        subdivision 3, is amended to read: 
           Subd. 3.  [HUMAN READABLE DATA ELEMENTS.] (a) The following 
        are the minimum human readable data elements that must be 
        present on the front side of the Minnesota health care 
        identification card: 
           (1) card issuer name or logo, which is the name or logo 
        that identifies the card issuer.  The card issuer name or logo 
        may be the card's front background.  No standard label is 
        required for this data element; 
           (2) claim submission number.  The standardized label for 
        this element is "Clm Subm #"; 
           (3) identification number, which is the unique 
        identification number of the individual card holder established 
        and defined under this section.  The standardized label for the 
        data element is "ID"; 
           (4) identification name, which is the name of the 
        individual card holder.  The identification name must be 
        formatted as follows:  first name, space, optional middle 
        initial, space, last name, optional space and name suffix.  The 
        standardized label for this data element is "Name"; 
           (5) account number(s), which is any other number, such as a 
        group number, if required for part of the identification or 
        claims process.  The standardized label for this data element is 
        "Account"; 
           (6) care type, which is the description of the group 
        purchaser's plan product under which the beneficiary is 
        covered.  The description shall include the health plan company 
        name and the plan or product name.  The standardized label for 
        this data element is "Care Type"; 
           (7) service type, which is the description of coverage 
        provided such as hospital, dental, vision, prescription, or 
        mental health.  The standard label for this data element is "Svc 
        Type"; and 
           (8) provider/clinic name, which is the name of the primary 
        care clinic the card holder is assigned to by the health plan 
        company.  The standard label for this field is "PCP."  This 
        information is mandatory only if the health plan company assigns 
        a specific primary care provider to the card holder. 
           (b) The following human readable data elements shall be 
        present on the back side of the Minnesota health identification 
        card.  These elements must be left justified, and no optional 
        data elements may be interspersed between them:  
           (1) claims submission name(s) and address(es), which are 
        the name(s) and address(es) of the entity or entities to which 
        claims should be submitted.  If different destinations are 
        required for different types of claims, this must be 
        labeled; and 
           (2) telephone number(s) and name(s); which are the 
        telephone number(s) and name(s) of the following contact(s) with 
        a standardized label describing the service function as 
        applicable:  
           (i) eligibility and benefit information; 
           (ii) utilization review; 
           (iii) precertification; or 
           (iv) customer services. 
           (c) The following human readable data elements are 
        mandatory on the back side of the card for health maintenance 
        organizations and integrated service networks: 
           (1) emergency care authorization telephone number or 
        instruction on how to receive authorization for emergency care.  
        There is no standard label required for this information; and 
           (2) one of the following: 
           (i) telephone number to call to appeal to or file a 
        complaint with the commissioner of health; or 
           (ii) for persons enrolled under section 256.9363, 256B.69, 
        or 256D.03, the telephone number to call to file a complaint 
        with the ombudsperson designated by the commissioner of human 
        services under section 256B.69 and the address to appeal to the 
        commissioner of human services.  There is no standard label 
        required for this information. 
           (d) All human readable data elements not required under 
        paragraphs (a) to (c) are optional and may be used at the 
        issuer's discretion. 
           Sec. 18.  Minnesota Statutes 1996, section 62J.69, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, the following definitions apply: 
           (a) "Medical education" means the accredited clinical 
        training of physicians (medical students and residents), doctor 
        of pharmacy practitioners, dentists, advanced practice nurses 
        (clinical nurse specialist, certified registered nurse 
        anesthetists, nurse practitioners, and certified nurse 
        midwives), and physician assistants. 
           (b) "Clinical training" means accredited training that is 
        funded and was historically funded in part by inpatient care 
        revenues and that occurs in both inpatient and ambulatory care 
        settings. 
           (c) "Trainee" means students involved in an accredited 
        clinical training program for medical education as defined in 
        paragraph (a). 
           (d) "Health care research" means approved clinical, 
        outcomes, and health services investigations that are funded by 
        patient out-of-pocket expenses or a third-party payer. 
           (e) "Commissioner" means the commissioner of health. 
           (f) "Teaching institutions" means any hospital, medical 
        center, clinic, or other organization that currently sponsors or 
        conducts accredited medical education programs or clinical 
        research in Minnesota. 
           Sec. 19.  Minnesota Statutes 1996, section 144.125, is 
        amended to read: 
           144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS.] 
           It is the duty of (1) the administrative officer or other 
        person in charge of each institution caring for infants 28 days 
        or less of age and, (2) the person required in pursuance of the 
        provisions of section 144.215, to register the birth of a child, 
        or (3) the nurse midwife or midwife in attendance at the birth, 
        to cause arrange to have administered to every infant or child 
        in its care tests for hemoglobinopathy, phenylketonuria, and 
        other inborn errors of metabolism in accordance with rules 
        prescribed by the state commissioner of health.  In determining 
        which tests must be administered, the commissioner shall take 
        into consideration the adequacy of laboratory methods to detect 
        the inborn metabolic error, the ability to treat or prevent 
        medical conditions caused by the inborn metabolic error, and the 
        severity of the medical conditions caused by the inborn 
        metabolic error.  Testing and the recording and reporting of the 
        test results of the tests shall be performed at the times and in 
        the manner prescribed by the commissioner of health.  The 
        commissioner shall charge laboratory service fees for conducting 
        the tests of infants for inborn metabolic errors so that the 
        total of fees collected will approximate the costs of conducting 
        the tests.  Costs associated with capital expenditures and the 
        development of new procedures may be prorated over a three-year 
        period when calculating the amount of the fees. 
           Sec. 20.  Minnesota Statutes 1996, section 144.215, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WHEN AND WHERE TO FILE.] A certificate of 
        birth for each live birth which occurs in this state shall be 
        filed with the state registrar or the local registrar of the 
        district in which the birth occurred, within five days after the 
        birth. 
           Sec. 21.  Minnesota Statutes 1996, section 144.218, is 
        amended to read: 
           144.218 [NEW REPLACEMENT CERTIFICATES OF BIRTH.] 
           Subdivision 1.  [ADOPTION.] Upon receipt of a certified 
        copy of an order, decree, or certificate of adoption, the state 
        registrar shall register a supplementary replacement certificate 
        in the new name of the adopted person.  The original certificate 
        of birth and the certified copy are confidential pursuant to 
        section 13.02, subdivision 3, and shall not be disclosed except 
        pursuant to court order or section 144.1761.  A certified copy 
        of the original birth certificate from which the registration 
        number has been deleted and which has been marked "Not for 
        Official Use," or the information contained on the original 
        birth certificate, except for the registration number, shall be 
        provided on request to a parent who is named on the original 
        birth certificate.  Upon the receipt of a certified copy of a 
        court order of annulment of adoption the state registrar shall 
        restore the original certificate to its original place in the 
        file. 
           Subd. 2. [ADOPTION OF FOREIGN PERSONS.] In proceedings for 
        the adoption of a person who was born in a foreign country, the 
        court, upon evidence presented by the commissioner of human 
        services from information secured at the port of entry, or upon 
        evidence from other reliable sources, may make findings of fact 
        as to the date and place of birth and parentage.  Upon receipt 
        of certified copies of the court findings and the order or 
        decree of adoption, the state registrar shall register a birth 
        certificate in the new name of the adopted person.  The 
        certified copies of the court findings and the order or decree 
        of adoption are confidential, pursuant to section 13.02, 
        subdivision 3, and shall not be disclosed except pursuant to 
        court order or section 144.1761.  The birth certificate shall 
        state the place of birth as specifically as possible, and that 
        the certificate is not evidence of United States citizenship. 
           Subd. 3.  [SUBSEQUENT MARRIAGE OF BIRTH PARENTS.] If, in 
        cases in which a certificate of birth has been registered 
        pursuant to section 144.215 and the birth parents of the child 
        marry after the birth of the child, a new replacement 
        certificate of birth shall be registered upon presentation of a 
        certified copy of the marriage certificate of the birth parents, 
        and either an acknowledgment a recognition of parentage or court 
        adjudication of paternity.  The information presented and the 
        original certificate of birth are confidential, pursuant to 
        section 13.02, subdivision 3, and shall not be disclosed except 
        pursuant to court order. 
           Subd. 4.  [INCOMPLETE, INCORRECT, AND MODIFIED 
        CERTIFICATES.] If a court finds that a birth certificate is 
        incomplete, inaccurate or false, or if it is being issued 
        pursuant to section 259.10, subdivision 2, it may order the 
        registration of a new replacement certificate, and, if 
        necessary, set forth the correct information in the order.  Upon 
        receipt of the order the state registrar shall register a new 
        replacement certificate containing the findings of the court, 
        and the prior certificate shall be confidential pursuant to 
        section 13.02, subdivision 3, and shall not be disclosed except 
        pursuant to court order. 
           Sec. 22.  Minnesota Statutes 1996, section 144.664, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NOTIFICATION.] Within five days of receiving a 
        report of traumatic brain injury or spinal cord injury, the 
        commissioner shall notify the commissioner of economic 
        security.  The notification shall include the person's name and 
        other identifying information injured person or the injured 
        person's family of resources and services available in 
        Minnesota, pursuant to section 144.662, clause (2). 
           Sec. 23.  Minnesota Statutes 1996, section 144.665, is 
        amended to read: 
           144.665 [TRAUMATIC BRAIN INJURY AND SPINAL CORD INJURY 
        DATA.] 
           Data on individuals collected by the commissioner of health 
        under sections 144.662 to 144.664 or provided to the 
        commissioner of economic security under section 144.664 are 
        private data on individuals as defined in section 13.02, 
        subdivision 12, and may be used only for the purposes set forth 
        in sections 144.662 to 144.664 in accordance with the rules 
        adopted by the commissioner. 
           Sec. 24.  Minnesota Statutes 1996, section 144.9501, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [CHILD.] "Child" means an individual up to 72 
        months of age. 
           Sec. 25.  Minnesota Statutes 1996, section 144.9501, 
        subdivision 29, is amended to read: 
           Subd. 29.  [SWAB TEAM SERVICES.] "Swab team services" means 
        activities that provide protection from lead hazards such as:  
           (1) removing lead dust by washing, vacuuming with high 
        efficiency particle accumulator (HEPA) or wet vacuum cleaners, 
        and cleaning the interior of residential property; 
           (2) removing loose paint and paint chips and reporting 
        repainting or installing guards to protect intact paint; 
           (3) covering or replacing bare soil that has a lead 
        concentration of 100 parts per million or more; 
           (4) health education; 
           (5) advice and assistance to help residents locate and move 
        to a temporary residence while lead hazard reduction is being 
        completed; or 
           (6) any other assistance necessary to meet the resident's 
        immediate needs as a result of the relocation.  
           Sec. 26.  Minnesota Statutes 1996, section 144.9504, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LEAD INSPECTION.] (a) An inspecting agency shall 
        conduct a lead inspection of a residence according to the venous 
        blood lead level and time frame set forth in clauses (1) 
        to (4) (5) for purposes of secondary prevention:  
           (1) within 48 hours of a child or pregnant female in the 
        residence being identified to the agency as having a venous 
        blood lead level equal to or greater than 70 micrograms of lead 
        per deciliter of whole blood; 
           (2) within five working days of a child or pregnant female 
        in the residence being identified to the agency as having a 
        venous blood lead level equal to or greater than 45 micrograms 
        of lead per deciliter of whole blood; 
           (3) within ten working days of a child or pregnant female 
        in the residence being identified to the agency as having a 
        venous blood lead level equal to or greater than 20 micrograms 
        of lead per deciliter of whole blood; or 
           (4) within ten working days of a child or pregnant female 
        in the residence being identified to the agency as having a 
        venous blood lead level that persists in the range of 15 to 19 
        micrograms of lead per deciliter of whole blood for 90 days 
        after initial identification; or 
           (5) within ten working days of a pregnant female in the 
        residence being identified to the agency as having a venous 
        blood lead level equal to or greater than ten micrograms of lead 
        per deciliter of whole blood.  
           (b) Within the limits of available state and federal 
        appropriations, an inspecting agency may also conduct a lead 
        inspection for children with any elevated blood lead level.  
           (c) In a building with two or more dwelling units, an 
        inspecting agency shall inspect the individual unit in which the 
        conditions of this section are met and shall also inspect all 
        common areas.  If a child visits one or more other sites such as 
        another residence, or a residential or commercial child care 
        facility, playground, or school, the inspecting agency shall 
        also inspect the other sites.  The inspecting agency shall have 
        one additional day added to the time frame set forth in this 
        subdivision to complete the lead inspection for each additional 
        site.  
           (d) Within the limits of appropriations, the inspecting 
        agency shall identify the known addresses for the previous 12 
        months of the child or pregnant female with elevated blood lead 
        levels; notify the property owners, landlords, and tenants at 
        those addresses that an elevated blood lead level was found in a 
        person who resided at the property; and give them a copy of the 
        lead inspection guide. This information shall be classified as 
        private data on individuals as defined under section 13.02, 
        subdivision 12.  
           (e) The inspecting agency shall conduct the lead inspection 
        according to rules adopted by the commissioner under section 
        144.9508.  An inspecting agency shall have lead inspections 
        performed by lead inspectors licensed by the commissioner 
        according to rules adopted under section 144.9508.  If a 
        property owner refuses to allow an inspection, the inspecting 
        agency shall begin legal proceedings to gain entry to the 
        property and the time frame for conducting a lead inspection set 
        forth in this subdivision no longer applies.  An inspector or 
        inspecting agency may observe the performance of lead hazard 
        reduction in progress and shall enforce the provisions of this 
        section under section 144.9509.  Deteriorated painted surfaces, 
        bare soil, dust, and drinking water must be tested with 
        appropriate analytical equipment to determine the lead content, 
        except that deteriorated painted surfaces or bare soil need not 
        be tested if the property owner agrees to engage in lead hazard 
        reduction on those surfaces.  
           (f) A lead inspector shall notify the commissioner and the 
        board of health of all violations of lead standards under 
        section 144.9508, that are identified in a lead inspection 
        conducted under this section.  
           (g) Each inspecting agency shall establish an 
        administrative appeal procedure which allows a property owner to 
        contest the nature and conditions of any lead order issued by 
        the inspecting agency.  Inspecting agencies must consider 
        appeals that propose lower cost methods that make the residence 
        lead safe. 
           (h) Sections 144.9501 to 144.9509 neither authorize nor 
        prohibit an inspecting agency from charging a property owner for 
        the cost of a lead inspection.  
           Sec. 27.  Minnesota Statutes 1996, section 144.9506, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE REQUIRED.] (a) A lead inspector 
        shall obtain a license before performing lead inspections and 
        shall renew it annually.  The commissioner shall charge a fee 
        and require annual training, as specified in this section.  A 
        lead inspector shall have the inspector's license readily 
        available at all times at an inspection site and make it 
        available, on request, for inspection by the inspecting agency 
        with jurisdiction over the site.  A license shall not be 
        transferred. 
           (b) Individuals shall not advertise or otherwise present 
        themselves as lead inspectors unless licensed by the 
        commissioner. 
           (c) An individual may use sodium rhodizonate to test paint 
        for the presence of lead without obtaining a lead inspector 
        license, but must not represent the test as a lead inspection. 
           Sec. 28.  Minnesota Statutes 1996, section 144.9506, 
        subdivision 5, is amended to read: 
           Subd. 5.  [APPROVAL OF LEAD INSPECTION COURSE.] Until the 
        commissioner adopts rules under section 144.9508 to license lead 
        inspectors and approve lead inspector training courses, a lead 
        inspection course sponsored by a training course provider in one 
        of the regional lead training consortia established by the 
        United States Environmental Protection Agency is an approved 
        course for the purpose of this section, providing it covers the 
        criteria listed in section 144.9505.  The commissioner shall 
        evaluate for approval by permit lead inspector courses other 
        than those approved by the United States Environmental 
        Protection Agency.  After adoption of rules under section 
        144.9508, all training courses offered for the purpose of 
        licensing individuals as lead inspectors must be reviewed and 
        approved by the commissioner. 
           Sec. 29.  Minnesota Statutes 1996, section 144.99, 
        subdivision 9, is amended to read: 
           Subd. 9.  [SUSPENSION OR REVOCATION OF PERMITS, LICENSES, 
        REGISTRATIONS, OR CERTIFICATES.] The commissioner may suspend, 
        place conditions on, or revoke a permit, license, registration, 
        or certificate issued under the statutes or rules cited in 
        subdivision 1 for: 
           (1) serious or repeated violations of the requirements in 
        the statutes, rules, or other actions listed in subdivision 1 
        that apply to the permit, license, registration, or certificate, 
        or if the applicant submitted; 
           (2) submitting false material information to the department 
        in connection with activities for which the permit, license, 
        registration, or certificate. is issued; 
           (3) allowing the alteration or use of one's own permit, 
        license, registration, or certificate by another; or 
           (4) within the previous five years, conviction of a crime 
        in connection with activities for which the permit, license, 
        registration, or certificate was issued. 
           Sec. 30.  Minnesota Statutes 1996, section 144.99, 
        subdivision 10, is amended to read: 
           Subd. 10.  [HEARINGS RELATED TO DENIAL, REFUSAL TO RENEW, 
        SUSPENSION, OR REVOCATION OF A PERMIT, LICENSE, REGISTRATION, OR 
        CERTIFICATE.] If the commissioner proposes to deny, refuses to 
        renew, suspends, or revokes a permit, license, registration, or 
        certificate under subdivision 8 or 9, the commissioner must 
        first notify, in writing, the person against whom the action is 
        proposed to be taken and provide the person an opportunity to 
        request a hearing under the contested case provisions of chapter 
        14.  If the person does not request a hearing by notifying the 
        commissioner within 20 days after receipt of the notice of 
        proposed action, the commissioner may proceed with the action 
        without a hearing.  This subdivision does not apply to: 
           (1) the denial of or refusal to renew a permit, license, 
        registration, or certificate based on the applicant's failure to 
        meet or maintain the minimum qualifications for holding the 
        permit, license, registration, or certificate; or 
           (2) the denial of, refusal to renew, suspension of, or 
        revocation of a permit, license, registration, or certificate if 
        the person against whom the action is proposed to be taken has 
        been granted a hearing under this subdivision within the 
        previous 12 months. 
           Sec. 31.  Minnesota Statutes 1996, section 257.73, is 
        amended to read: 
           257.73 [BIRTH RECORDS.] 
           Subdivision 1.  Upon compliance with the provisions of 
        section 257.55, subdivision 1, paragraph (e), 257.75, or upon 
        order of a court of this state or upon request of a court of 
        another state, the state or local registrar of vital statistics 
        shall prepare a new replacement certificate of birth consistent 
        with the acknowledgment or the findings of the court and shall 
        substitute the new replacement certificate for the original 
        certificate of birth.  
           Subd. 2.  The fact that the father and child relationship 
        was declared after the child's birth shall not be ascertainable 
        from the new replacement certificate but the actual place and 
        date of birth shall be shown.  
           Subd. 3.  The evidence upon which the new replacement 
        certificate was made and the original birth certificate shall be 
        kept in a sealed and confidential file and be subject to 
        inspection only upon consent of the court and all interested 
        persons, or in exceptional cases only upon an order of the court 
        for good cause shown.  
           Sec. 32.  Minnesota Statutes 1996, section 326.71, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ASBESTOS-RELATED WORK.] "Asbestos-related work" 
        means the enclosure, removal, or encapsulation of 
        asbestos-containing material in a quantity that meets or exceeds 
        260 lineal feet of friable asbestos-containing material on 
        pipes, 160 square feet of friable asbestos-containing material 
        on other facility components, or, if linear feet or square feet 
        cannot be measured, a total of 35 cubic feet of friable 
        asbestos-containing material on or off all facility components 
        in one facility.  In the case of single or multifamily 
        residences, "asbestos-related work" also means the enclosure, 
        removal, or encapsulation of greater than ten but less than 260 
        lineal linear feet of friable asbestos-containing material on 
        pipes or ducts or, greater than six but less than 160 square 
        feet of friable asbestos-containing material on other facility 
        components, or, if linear feet or square feet cannot be 
        measured, greater than one cubic foot but less than 35 cubic 
        feet of friable asbestos-containing material on or off all 
        facility components in one facility.  This provision excludes 
        asbestos-containing floor tiles and sheeting, roofing materials, 
        siding, and all ceilings with asbestos-containing material in 
        single family residences and buildings with no more than four 
        dwelling units.  Asbestos-related work includes asbestos 
        abatement area preparation; enclosure, removal, or encapsulation 
        operations; and an air quality monitoring specified in rule to 
        assure that the abatement and adjacent areas are not 
        contaminated with asbestos fibers during the project and after 
        completion. 
           For purposes of this subdivision, the quantity of asbestos 
        containing material applies separately for every project. 
           Sec. 33.  Minnesota Statutes 1996, section 326.71, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CONTRACTING ENTITY.] "Contracting entity" means 
        a public or private body, board, natural person, corporation, 
        partnership, proprietorship, joint venture, fund, authority, or 
        similar entity that contracts with a person to do 
        asbestos-related work or asbestos management activity for the 
        benefit of the contracting entity. 
           Sec. 34.  Minnesota Statutes 1996, section 326.72, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISPLAY OF LICENSE.] Licensees shall post a 
        project permit, obtained from the commissioner after compliance 
        with the provisions of section 326.74 and rules promulgated 
        under section 326.78, in a conspicuous place outside of the 
        asbestos abatement work area.  The actual license or a copy 
        shall be readily available at the work site for inspection by 
        the commissioner, other public officials charged with the 
        health, safety, and welfare of the state's citizens, and the 
        contracting entity.  
           Sec. 35.  Minnesota Statutes 1996, section 326.74, is 
        amended to read: 
           326.74 [REPORTING ASBESTOS WORK.] 
           At least five calendar days before beginning any 
        asbestos-related work, Written notice shall be given to the 
        commissioner of the an asbestos-related work project by the 
        person holding the license issued under section 326.72, 
        subdivision 1.  Unless the project is an emergency project, the 
        notice shall be given to the commissioner at least five calendar 
        days before the project begins.  The notice shall contain the 
        following information:  
           (1) a brief description of the work to be performed; 
           (2) the name of the contracting entity; 
           (3) the location and address of the project work site; 
           (4) the approximate duration of the project; 
           (5) the approximate amount of the asbestos involved in the 
        project; 
           (6) the name of any project manager; and 
           (7) other information required by the commissioner.  
           Sec. 36.  Minnesota Statutes 1996, section 326.76, is 
        amended to read: 
           326.76 [DUTIES OF CONTRACTING ENTITIES.] 
           A contracting entity intending to have asbestos-related 
        work or asbestos management activity performed for its benefit 
        shall include in the specifications and contracts for the work a 
        requirement that the work be performed by contractors and 
        subcontractors licensed or certified by the commissioner under 
        sections 326.70 to 326.81 and in accordance with rules 
        prescribed by the commissioner related to asbestos 
        abatement asbestos-related work and asbestos management 
        activity.  No contracting entity shall allow asbestos-related 
        work or asbestos management activity to be performed for its 
        benefit unless it has seen that the person has a valid license 
        or certificate.  A contracting entity's failure to comply with 
        this section does not relieve a person from any responsibilities 
        under sections 326.70 to 326.81. 
           Sec. 37.  Minnesota Statutes 1996, section 326.78, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RULEMAKING.] The commissioner shall adopt 
        and begin enforcement of rules necessary to implement sections 
        326.70 to 326.81.  The rules adopted shall not be duplicative of 
        rules adopted by the commissioner of the department of labor and 
        industry.  The rules shall include rules in the following areas: 
           (1) application, enclosure, removal, and encapsulation 
        procedures; 
           (2) license and certificate qualification requirements; 
           (3) examinations for obtaining a license and certificate; 
           (4) training necessary for individual certification; 
           (5) qualifications for managers of asbestos 
        abatement asbestos-related work projects; 
           (6) abatement asbestos-related work and asbestos management 
        activity specifications; 
           (7) any contractor bonding and insurance requirements 
        deemed necessary by the commissioner; 
           (8) license and certificate issuance and revocation 
        procedures; 
           (9) suspension or revocation of licenses or certificates; 
           (10) license and certificate suspension and revocation 
        criteria; 
           (11) cleanup standards; 
           (12) continuing education requirements; and 
           (13) other rules necessary to implement sections 326.70 to 
        326.81.  
           Sec. 38.  Minnesota Statutes 1996, section 326.785, is 
        amended to read: 
           326.785 [ASBESTOS CONTAINMENT BARRIERS.] 
           Notwithstanding Minnesota Rules, part 4620.3500, subpart 4, 
        item B, subitem (5) 4620.3568, subparts 1 to 4, containment 
        barriers, in the case of tunnel abatement enclosures, are 
        limited to double critical barriers. 
           Sec. 39.  [CONFORMANCE WITH FEDERAL REGULATIONS.] 
           The commissioner of health shall amend Minnesota Rules, 
        chapter 4761, as needed to conform with federal regulations, and 
        shall perform any procedural steps necessary to obtain 
        authorization to administer the regulations in Code of Federal 
        Regulations, title 40, part 745 (1996), adopted by the United 
        States Environmental Protection Agency to implement the 
        requirements of title X of the federal Residential Lead-Based 
        Paint Hazard Reduction Act of 1992, Public Law Number 102-550, 
        106 Statutes at Large 3897. 
           Sec. 40.  [REPEALER.] 
           (a) Minnesota Statutes 1996, sections 62D.03, subdivision 
        2; and 62D.11, subdivision 4, are repealed. 
           (b) Minnesota Rules, part 4600.3900, is repealed. 
           (c) Laws 1988, chapter 495, section 1, is repealed.  
           Sec. 41.  [EFFECTIVE DATE.] 
           Section 19 is effective the day following final enactment. 
           Presented to the governor May 20, 1997 
           Signed by the governor May 22, 1997, 12:02 p.m.