Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1983, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1983
CHAPTER 290--H.F.No. 274
An act relating to workers' compensation; providing
for comprehensive reform of all aspects of workers'
compensation; providing penalties; appropriating
money; amending Minnesota Statutes 1982, sections
43A.23, by adding a subdivision; 79.071, subdivisions
1 and 1a; 79.211, subdivision 2; 79.251; 79.34,
subdivisions 1, 2, and by adding a subdivision; 79.35;
79.37; 79.51, subdivision 3; 79.52, by adding a
subdivision; 79.53; 147.02, by adding a subdivision;
175.006, subdivision 1; 175.007, subdivision 1;
175.08; 175.10; 175.101, subdivisions 1 and 2;
176.001; 176.011, subdivision 9, and by adding
subdivisions; 176.012; 176.021, subdivisions 1a and 3;
176.041, subdivision 1; 176.061; 176.081, subdivisions
1, 2, 5, 6, 7, and by adding a subdivision; 176.101,
subdivisions 1, 2, 6, and by adding subdivisions;
176.102, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,
11, and by adding subdivisions; 176.105, by adding a
subdivision; 176.111, subdivisions 6, 7, 8, and 18,
and by adding a subdivision; 176.121; 176.131,
subdivisions 1, 1a, 2, 3, 4, 5, 6, 7, and 8; 176.132,
subdivision 1, and by adding a subdivision; 176.134,
subdivision 4; 176.135, subdivisions 1 and 3; 176.136;
176.155, subdivisions 3 and 5; 176.179; 176.181, by
adding a subdivision; 176.182; 176.183, subdivisions
1, 1a, and by adding subdivisions; 176.185,
subdivision 1, and by adding a subdivision; 176.191,
by adding subdivisions; 176.195, subdivision 2, and by
adding subdivisions; 176.221; 176.225, subdivisions 1,
2, and 3; 176.231, subdivisions 3, 4, 5, 9, and 10;
176.241, subdivisions 2 and 4; 176.281; 176.285;
176.321, subdivision 1; 176.331; 176.341; 176.361;
176.371; 176.421, subdivisions 3, 4, 6, and 7;
176.442; 176.461; 176.521, subdivisions 2, 2a, and 3;
176.561; 176.571, subdivision 6; 176.66, by adding
subdivisions; 268.08, subdivision 3; and 471.982,
subdivision 2, and by adding a subdivision; Laws 1981,
chapter 346, sections 145 and 146; proposing new law
coded in Minnesota Statutes, chapters 79; 148; and
176; proposing new law coded as Minnesota Statutes,
chapter 176A; repealing Minnesota Statutes 1982,
sections 8.31, subdivision 4; 79.51, subdivision 2;
79.63; 175.07; 175.101, subdivision 3; 175.36;
176.101, subdivision 3; 176.102, subdivision 12;
176.131, subdivisions 9, 10, 11, and 12; 176.152; and
176.262.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1982, section 43A.23, is
amended by adding a subdivision to read:
Subd. 3. [CONTRACT WITH INSURANCE CARRIERS.] The
commissioner of labor and industry may contract with carriers
authorized to provide coverage under the state employees group
insurance plan to extend coverage to eligible employees who
incur medical expenses due to a personal injury which results
from their state employment which is compensable under chapter
176.
Sec. 2. Minnesota Statutes 1982, section 79.071,
subdivision 1, is amended to read:
Subdivision 1. The commissioner shall adopt a schedule of
workers' compensation insurance rates for use in this state for
each classification under which business is written until
January 1, 1986 1984. The schedule of rates shall not be
excessive, inadequate, or unfairly discriminatory. In adopting
a schedule of rates, the commissioner may act on the written
petition of the association or any other interested party
requesting that a hearing be held for modification of the
schedule of rates. The commissioner may include the expense of
a reasonable charge for the services of an agent of record, for
the service of rejected risks as set forth in sections 79.24 to
79.27.
Sec. 3. Minnesota Statutes 1982, section 79.071,
subdivision 1a, is amended to read:
Subd. 1a. If the legislature enacts amendments to the
workers' compensation laws of this state which indicate a
reduction in the schedule of rates, or the commissioner
determines that the loss experience of Minnesota workers'
compensation insurers indicates a change in the existing
schedule of rates, the commissioner may, in his discretion,
order a change in the schedule of rates or order a hearing to
determine whether and by what percentage the schedule of rates
should be changed. A hearing held pursuant to this subdivision
is not subject to the contested case proceeding requirements of
sections 79.071 and 79.072, notwithstanding section 79.076. The
commissioner is prohibited from granting approval of any
proposed increase in rates after May 1, 1983.
Sec. 4. Minnesota Statutes 1982, section 79.211,
subdivision 2, is amended to read:
Subd. 2. [DIVISION OF PAYROLL.] An insurer shall permit an
employer to divide his payroll among the rating classifications
most closely fitting the work actually performed by each
employee in a four-hour block or more for purposes of premium
calculation when the employer's records provide adequate support
for a division.
Sec. 5. Minnesota Statutes 1982, section 79.251, is
amended to read:
79.251 [ADMINISTRATION OF ASSIGNED RISK PLAN.]
Subdivision 1. [ASSIGNED RISK PLAN REVIEW BOARD.] (1) An
assigned risk plan review board is created for the purposes of
review of the operation of sections 79.24 to 79.27 6 and 79.251.
The board shall have all the usual powers and authorities
necessary for the discharge of its duties under this section and
may contract with individuals in discharge of those duties.
(2) The board shall consist of five six members to be
appointed by the commissioner of insurance. Two Three members
shall be insureds holding policies or contracts of coverage
issued pursuant to section 79.25 subdivision 4. Two members
shall be members of the association insurers licensed pursuant
to section 60A.06, subdivision 1, clause (5), paragraph (b).
The commissioner shall be the fifth sixth member and shall vote.
Initial appointments shall be made by September 1, 1981,
and terms shall be for three years duration. Removal, the
filling of vacancies and compensation of the members other than
the commissioner shall be as provided in section 15.059.
(3) The assigned risk plan review board shall audit the
reserves established by insurers (a) for individual cases
arising under policies and contracts of coverage issued under
section 79.25 subdivision 4 and (b) for the total book of
business issued under section 79.25 subdivision 4.
(4) The assigned risk plan review board shall monitor the
operations of sections 79.24 to 79.27 6 and 79.251 and shall
periodically make recommendations to the commissioner, and to
the governor and legislature when appropriate, for improvement
in the operation of those sections.
(5) All members of the association insurers and
self-insurance administrators issuing policies or contracts
under section 79.25 subdivision 4 shall pay and the commissioner
shall receive and disburse, on behalf of the board, a .25
percent assessment on premiums for policies and contracts of
coverage issued under section 79.25 subdivision 4 for the
purpose of defraying the costs of the assigned risk plan review
board.
(6) The assigned risk plan and the assigned risk plan
review board shall not be deemed a state agency.
Subd. 2. [APPROPRIATE MERIT RATING PLAN.] The commissioner
shall develop an appropriate merit rating plan which shall be
applicable to all insureds holding policies or contracts of
coverage issued pursuant to section 79.25 whose premium is less
than the amount necessary to qualify for experience rating
subdivision 4 and to the insurers or self-insurance
administrators issuing those policies or contracts. The plan
shall provide a maximum merit payment adjustment equal to ten
percent of earned premium. The actual payment adjustment may
vary with insured's loss experience.
Subd. 3. [RATES.] Insureds served by the assigned risk
plan shall be charged premiums based upon a rating plan,
including a merit rating plan adopted by the commissioner by
rule. The commissioner shall annually, not later than January 1
of each year, establish the schedule of rates applicable to
assigned risk plan business. Assigned risk premiums shall not
be lower than rates generally charged by insurers for the
business. The commissioner shall fix the compensation received
by the agent of record. The establishment of the assigned risk
plan rates and agent fees are not subject to chapter 14.
Subd. 4. [ADMINISTRATION.] The commissioner shall enter
into service contracts as necessary or beneficial for
accomplishing the purposes of the assigned risk plan. Services
related to the administration of policies or contracts of
coverage shall be performed by one or more qualified insurance
companies licensed pursuant to section 60A.06, subdivision 1,
clause (5), paragraph (b), or self-insurance administrators
licensed pursuant to section 176.181, subdivision 2, clause (2),
paragraph (a). A qualified insurer or self-insurance
administrator shall possess sufficient financial, professional,
administrative, and personnel resources to provide the services
contemplated in the contract. Services related to assignments,
data management, assessment collection, and other services shall
be performed by a licensed data service organization. The cost
of those services is an obligation of the assigned risk plan.
Subd. 5. [ASSESSMENTS.] The commissioner shall assess all
insurers licensed pursuant to section 60A.06, subdivision 1,
clause (5), paragraph (b) an amount sufficient to fully fund the
obligations of the assigned risk plan, if the commissioner
determines that the assets of the assigned risk plan are
insufficient to meet its obligations. The assessment of each
insurer shall be in a proportion equal to the proportion which
the amount of compensation insurance written in this state
during the preceding calendar year by that insurer bears to the
total compensation insurance written in this state during the
preceding calendar year by all licensed insurers.
Sec. 6. [79.252] [ASSIGNED RISK PLAN.]
Subdivision 1. [PURPOSE.] The purpose of the assigned risk
plan is to provide workers' compensation coverage to employers
rejected by a licensed insurance company, pursuant to
subdivision 2.
Subd. 2. [REJECTED RISKS.] An insurer that refuses to
write insurance for an employer shall furnish the employer a
written notice of refusal. The employer shall file a copy of
the notice of refusal with the data service organization under
contract with the commissioner pursuant to section 79.251,
subdivision 4.
Subd. 3. [COVERAGE.] Policies and contracts of coverage
issued pursuant to section 79.251, subdivision 4, shall contain
the usual and customary provisions of workers' compensation
insurance policies, and shall be deemed to meet the mandatory
workers' compensation insurance requirements of section 176.181,
subdivision 2.
Subd. 4. [RESPONSIBILITIES.] Assigned risk policies and
contracts of coverage shall be subject to premium tax pursuant
to section 60A.15, and special compensation fund assessments
pursuant to section 176.131, subdivision 10. The assigned risk
plan shall be a member of the reinsurance association for the
purposes of sections 79.34 to 79.40 and shall be deemed to have
selected the higher retention limit provided in section 79.34,
subdivision 2.
Subd. 5. [RULES.] The commissioner may adopt rules,
including temporary rules, as may be necessary to implement
sections 6 and 79.251.
Sec. 7. Minnesota Statutes 1982, section 79.34,
subdivision 1, is amended to read:
Subdivision 1. A nonprofit association known as the
workers' compensation reinsurance association is created, which
may be incorporated under chapter 317 with all the powers of a
corporation formed under that chapter, except that if the
provisions of that chapter are inconsistent with sections 79.34
to 79.40 or any amendments thereto, sections 79.34 to 79.40
shall govern. Each insurer as defined by section 79.01,
subdivision 2, shall as a condition of its authority to transact
workers' compensation insurance in this state, be a member of
the reinsurance association and shall be bound by the plan of
operation of the reinsurance association; provided, that all
affiliated insurers within a holding company system as defined
in sections 60D.01 to 60D.13 shall be considered a single entity
for purposes of the exercise of all rights and duties of
membership in the reinsurance association. Each self-insurer
approved pursuant to section 176.181 and each political
subdivision which self-insures shall, as a condition of its
authority to self-insure workers' compensation liability in this
state, be a member of the reinsurance association and shall be
bound by its plan of operation; provided, that (a) all
affiliated companies within a holding company system, as
determined by the commissioner in a manner consistent with the
standards and definitions in sections 60D.01 to 60D.13, shall be
considered a single entity for purposes of the exercise of all
rights and duties of membership in the reinsurance association,
and (b) all group self-insurers granted authority to self-insure
pursuant to section 176.181 shall be considered a single entity
for purposes of the exercise of all the rights and duties of
membership in the reinsurance association. As a condition of
its authority to self-insure workers' compensation liability,
and for losses incurred on or after January 1, 1984, the state
shall be a member of the reinsurance association and is bound by
its plan of operation. The commissioner of labor and industry
represents the state in the exercise of all the rights and
duties of membership in the reinsurance association. The state
treasurer shall pay the premium to the reinsurance association
from the state compensation revolving fund upon warrants of the
commissioner of labor and industry. For the purposes of this
section "state" means the administrative branch of state
government, the legislative branch, the judicial branch, the
University of Minnesota, and any other entity whose workers'
compensation liability is paid from the state revolving fund.
The commissioner may calculate, prorate, and charge a department
or agency the portion of premiums paid to the reinsurance
association for employees who are paid wholly or in part by
federal funds, dedicated funds, or special revenue funds. The
reinsurance association shall is not be deemed a state agency.
Actions of the reinsurance association and its board of
directors and actions of the commissioner of insurance with
respect to the reinsurance association shall are not be subject
to chapter chapters 13, 14, and 15. The reinsurance association
shall be is exempt from taxation under the laws of this state
and all property owned by the association shall be is exempt
from taxation. The reinsurance association shall is not be
obligated to make any payments or pay any assessments to any
funds or pools established pursuant to this chapter or chapter
176 or any other law.
Sec. 8. Minnesota Statutes 1982, section 79.34,
subdivision 2, is amended to read:
Subd. 2. The reinsurance association shall provide and
each member shall accept indemnification for 100 percent of the
amount of ultimate loss sustained in each loss occurrence
relating to one or more claims arising out of a single
compensable event, including aggregate losses related to a
single event or occurrence which constitutes a single loss
occurrence, under chapter 176 on and after October 1, 1979, in
excess of $300,000 or $100,000 retention limit, at the option of
the member. In case of occupational disease causing disablement
on and after October 1, 1979, each person suffering such
disablement shall be due to occupational disease is considered
to be involved in a separate loss occurrence. The lesser lower
retention limit shall be increased to the nearest $10,000, on
January 1, 1982 and on each January 1 thereafter by the
percentage increase in the statewide average weekly wage, as
determined in accordance with section 176.011, subdivision 20.
On January 1, 1982 and on each January 1 thereafter, the greater
higher retention limit shall be increased by the amount
necessary to retain a $200,000 difference between the two
retention limits. Ultimate loss as used in this section means
the actual loss amount which a member is obligated to pay and
which is paid by the member for workers' compensation benefits
payable under chapter 176 and shall not include claim expenses,
assessments, damages or penalties. For losses incurred on or
after January 1, 1979, any amounts paid by a member pursuant to
sections 176.183, 176.221, 176.225, and 176.82 shall not be
included in ultimate loss and shall not be indemnified by the
reinsurance association. A loss is incurred by the reinsurance
association on the date on which the accident or other
compensable event giving rise to the loss occurs, and a member
is liable for a loss up to its retention limit in effect at the
time that the loss was incurred, except that members which are
determined by the reinsurance association to be controlled by or
under common control with another member, and which are liable
for claims from one or more employees entitled to compensation
for a single compensable event, including aggregate losses
relating to a single loss occurrence, may aggregate their losses
and obtain indemnification from the reinsurance association for
the aggregate losses in excess of the higher retention limit in
effect at the time the loss was incurred. Each member is liable
for payment of its ultimate loss and shall be entitled to
indemnification from the reinsurance association for the
ultimate loss in excess of the member's retention limit in
effect at the time of the loss occurrence.
A member that chooses the higher retention limit shall
retain the liability for all losses below the higher retention
limit itself and shall not transfer the liability to any other
entity or reinsure or otherwise contract for reimbursement or
indemnification for losses below its retention limit, except in
the following cases: (a) when the reinsurance or contract is
with another member which, directly or indirectly, through one
or more intermediaries, control or are controlled by or are
under common control with the member; (b) when the reinsurance
or contract provides for reimbursement or indemnification of a
member if and only if the total of all claims which the member
pays or incurs, but which are not reimbursable or subject to
indemnification by the reinsurance association for a given
period of time, exceeds a dollar value or percentage of premium
written or earned and stated in the reinsurance agreement or
contract; (c) when the reinsurance or contract is a pooling
arrangement with other insurers where liability of the member to
pay claims pursuant to chapter 176 is incidental to
participation in the pool and not as a result of providing
workers' compensation insurance to employers on a direct basis
under chapter 176; (d) when the reinsurance or contract is
limited to all the claims of a specific insured of a member
which are reimbursed or indemnified by a reinsurer which,
directly or indirectly, through one or more intermediaries,
controls or is controlled by or is under common control with the
insured of the member so long as any subsequent contract or
reinsurance of the reinsurer relating to the claims of the
insured of a member is not inconsistent with the bases of
exception provided under clauses (a), (b) and (c) above; or (e)
when the reinsurance or contract is limited to all claims of a
specific self-insurer member which are reimbursed or indemnified
by a reinsurer which, directly or indirectly, through one or
more intermediaries, controls or is controlled by or is under
common control with the self-insurer member so long as any
subsequent contract or reinsurance of the reinsurer relating to
the claims of the self-insurer member are not inconsistent with
the bases for exception provided under clauses (a), (b) and (c)
above.
Whenever it appears to the commissioner that any member
that chooses the higher retention limit has participated in the
transfer of liability to any other entity or reinsured or
otherwise contracted for reimbursement or indemnification of
losses below its retention limit in a manner inconsistent with
the bases for exception provided under clauses (a), (b), (c),
(d), and (e), the commissioner may, after giving notice and an
opportunity to be heard, order the member to pay to the state of
Minnesota an amount not to exceed twice the difference between
the reinsurance premium for the higher and lower retention limit
applicable to the member for each year in which the prohibited
reinsurance or contract was in effect. Any member subject to
this penalty provision shall continue to be bound by its
selection of the higher retention limit for purposes of
membership in the reinsurance association.
Sec. 9. Minnesota Statutes 1982, section 79.34, is amended
by adding a subdivision to read:
Subd. 7. For losses incurred on or after January 1, 1984,
the reinsurance association shall indemnify the member for the
ultimate loss, in excess of the retention limit in effect at the
time of the loss occurrence, sustained in each loss occurrence
relating to one or more claims arising out of a single
compensable event in another state provided that:
(a) the injured worker is eligible for benefits under
section 176.041, subdivision 2 or 3, but elects to receive
benefits under the workers' compensation statute of another
state in lieu of benefits under chapter 176; and
(b) the ultimate loss indemnified by the reinsurance
association shall be determined as provided in this chapter,
except that the benefits shall be equal to those required to be
paid under the workers' compensation statute of the state
elected.
Sec. 10. Minnesota Statutes 1982, section 79.35, is
amended to read:
79.35 [DUTIES; RESPONSIBILITIES; POWERS.]
The reinsurance association shall do the following on
behalf of its members:
(a) Assume 100 percent of the liability as provided in
section 79.34;
(b) Establish procedures by which members shall promptly
report to the reinsurance association each claim which, on the
basis of the injury sustained, may reasonably be anticipated to
involve liability to the reinsurance association if the member
is held liable under chapter 176. Solely for the purpose of
reporting claims, the member shall in all instances consider
itself legally liable for the injury. The member shall advise
the reinsurance association of subsequent developments likely to
materially affect the interest of the reinsurance association in
the claim;
(c) Maintain relevant loss and expense data relative to all
liabilities of the reinsurance association and require each
member to furnish statistics in connection with liabilities of
the reinsurance association at the times and in the form and
detail as may be required by the plan of operation;
(d) Calculate and charge to members a total premium
sufficient to cover the expected liability which the reinsurance
association will incur in excess of the higher retention limit
but less than the prefunded limit, together with incurred or
estimated to be incurred operating and administrative expenses
for the period to which this premium applies and actual claim
payments to be made by members, during the period to which this
premium applies, for claims in excess of the prefunded limit in
effect at the time the loss was incurred. The prefunded limit
shall be $2,500,000 on and after October 1, 1979, provided that
the prefunded limit shall be increased on January 1, 1983 and on
each January 1 thereafter by the percentage increase in the
statewide average weekly wage, to the nearest $100,000, as
determined in accordance with section 176.011, subdivision 20.
Each member shall be charged a proportion of the total premium
in an amount equal to its proportion of the total standard
earned premium exposure base of all members during the period to
which the reinsurance association premium will apply, as
determined by the commissioner. The exposure base shall be
determined by the board and is subject to the approval of the
commissioner. In determining the exposure base, the board shall
consider, among other things, equity, administrative
convenience, records maintained by members, amenability to
audit, and degree of risk refinement. Each member exercising
the lower retention option shall also be charged a premium
established by the board as sufficient to cover incurred or
estimated to be incurred claims for the liability the
reinsurance association is likely to incur between the lower and
higher retention limits for the period to which the premium
applies. Each member shall also be charged a premium determined
by the board to equitably distribute excess or deficient
premiums from previous periods including any excess or deficient
premiums resulting from a retroactive change in the prefunded
limit. An equitable basis for determining standard earned
premium for self-insurers shall be established by the
commissioner. The premiums charged to members shall not be
unfairly discriminatory as defined in section 79.074. All
premiums shall be approved by the commissioner;
(e) Require and accept the payment of premiums from members
of the reinsurance association;
(f) Receive and distribute all sums required by the
operation of the reinsurance association;
(g) Establish procedures for reviewing claims procedures
and practices of members of the reinsurance association. If the
claims procedures or practices of a member are considered
inadequate to properly service the liabilities of the
reinsurance association, the reinsurance association may
undertake, or may contract with another person, including
another member, to adjust or assist in the adjustment of claims
which create a potential liability to the association and. The
reinsurance association may charge the cost of the adjustment
under this paragraph to the member, except that any penalties or
interest incurred under sections 176.183, 176.221, 176.225, and
176.82 as a result of actions by the reinsurance association
after it has undertaken adjustment of the claim shall not be
charged to the member but shall be included in the ultimate loss
and listed as a separate item; and
(h) Provide each member of the reinsurance association with
an annual report of the operations of the reinsurance
association in a form the board of directors may specify.
Sec. 11. Minnesota Statutes 1982, section 79.37, is
amended to read:
79.37 [BOARD OF DIRECTORS.]
A board of directors of the reinsurance association is
created and shall be is responsible for the operation of the
reinsurance association consistent with the plan of operation
and sections 79.34 to 79.42. The board shall consist consists
of nine 13 directors and the commissioner commissioners of
insurance and labor and industry who shall be an ex officio
member members. Four members of the board shall represent
insurers, three six members of the board shall represent
employers, at least one, but not more than two three, of whom
shall represent self-insurers, and two three members of the
board shall represent employees. Members shall elect the
insurer directors, and the commissioner of insurance shall
appoint the employer and employee directors from a list
presented to the commissioner by the workers' compensation
advisory council established in chapter 175, for the terms
authorized in the plan of operation. Each board member shall be
is entitled to one vote. Terms of the directors shall be
staggered so that the terms of all the directors do not expire
at the same time and so that a director does not serve a term of
more than four years. The board shall select a chairman and
other officers it deems appropriate.
A majority of the board shall constitute constitutes a
quorum, notwithstanding any vacancies. Action may be taken by a
majority vote of the directors present.
Sec. 12. Minnesota Statutes 1982, section 79.51,
subdivision 3, is amended to read:
Subd. 3. [RULES; SUBJECT MATTER.] (a) The commissioner in
issuing rules shall consider:
(1) data reporting requirements, including types of data
reported, such as loss and expense data;
(2) experience rating plans;
(3) retrospective rating plans;
(4) general expenses and related expense provisions;
(5) minimum premiums;
(6) classification systems and assignment of risks to
classifications;
(7) loss development and trend factors;
(8) the workers' compensation reinsurance association;
(9) restrictions, prohibitions, and requirements with
respect to the activities of the workers' compensation insurers
rating association of Minnesota during the period from July 1,
1983 to January 1, 1986;
(10) requiring substantial compliance with the rules
mandated by this section as a condition of workers' compensation
carrier licensure;
(11) (10) imposing limitations on the functions of workers'
compensation data service organizations consistent with the
introduction of competition;
(12) (11) the rules contained in the workers' compensation
rating manual adopted by the workers' compensation insurers
rating association; and
(13) (12) any other factors that the commissioner deems
relevant to achieve the purposes of chapter 79.
(b) The rules shall provide for the following:
(1) competition in workers' compensation insurance rates in
such a way that the advantages of competition are introduced
with a minimum of employer hardship during the transition period;
(2) adequate safeguards against excessive or discriminatory
rates in workers' compensation during the transition period;
(3) encouragement of workers' compensation insurance rates
which are as low as reasonably necessary, but shall make
provision against inadequate rates, insolvencies and unpaid
benefits;
(4) assurances that employers are not unfairly relegated to
the assigned risk pool;
(5) requiring all appropriate data and other information
from insurers for the purpose of issuing rules and, making
legislative recommendations pursuant to this section and
monitoring the effectiveness of competition; and
(6) preserving a framework for risk classification, data
collection, and other appropriate joint insurer services where
these will not impede the introduction of competition in premium
rates.
(c) The rules shall expire on January 1, 1986.
Sec. 13. Minnesota Statutes 1982, section 79.52, is
amended by adding a subdivision to read:
Subd. 16. [ATTORNEY'S FEES.] No loss adjustment expense
used to pay attorney fees or other costs in defense of a
workers' compensation claim shall be charged to an insured in a
merit rating plan or to a plan under section 79.251, subdivision
2.
Sec. 14. Minnesota Statutes 1982, section 79.53, is
amended to read:
79.53 [PREMIUM CALCULATION.]
Subdivision 1. [METHOD OF CALCULATION.] Each insurer shall
establish premiums to be paid by an employer according to its
filed rates and rating plan as follows:
Rates shall be applied to an exposure base to yield a base
premium which may be further modified by merit rating, premium
discounts, and other appropriate factors contained in the rating
plan of an insurer to produce premium. Nothing in this chapter
shall be deemed to prohibit the use of any premium, provided the
premium is not excessive, inadequate or unfairly discriminatory.
Subd. 2. [STUDY; REPORT.] The commissioner of insurance
shall conduct a comparative actuarial study of the exposure
bases of employers located within and outside of the seven
county metropolitan area. In addition to the factors required
to be considered by a data service organization under section
79.61, subdivision 1, the study shall include the activity
permitted under section 79.61, subdivision 2, and specifically,
shall include a comparative study of the incidence of litigation
in relationship to first reports of injuries as between
employers within and outside the metropolitan area.
For the purposes of this section, "metropolitan area" has
the meaning as defined in section 473.121, subdivision 2.
A report on the study shall be made by the commissioner to
the legislature by January 15, 1984.
Sec. 15. Laws 1981, chapter 346, section 145, is amended
to read:
Sec. 145. [REPEALER.]
Minnesota Statutes 1980, Sections 79.071, Subdivision 1;
79.074, Subdivision 1; 79.075; 79.076; 79.08; 79.09; 79.11;
79.12; 79.13; 79.14; 79.15; 79.16; 79.17; 79.171; 79.18; 79.19;
79.20; 79.21; 79.22, Subdivision 1; 79.221; 79.23; 79.24; 79.25;
and 79.26; 79.27; 79.28; 79.29; 79.30; 79.31; 79.32; and 79.33
are repealed effective July 1, 1983. Minnesota Statutes 1980,
Sections 79.071, Subdivisions 2, 3, 4, 5, 6, and 7; 79.072; and
79.073; 79.074, Subdivision 1; 79.075; 79.076; 79.08; 79.09;
79.11; 79.12; 79.13; 79.14; 79.15; 79.16; 79.17; 79.171; 79.18;
79.19; 79.20; 79.21; 79.22, Subdivision 1; 79.221; 79.23; 79.27;
79.28; 79.29; 79.30; 79.31; 79.32; and 79.33 are repealed
effective January 1, 1986 1984. Minnesota Statutes 1980,
Sections 175.006, Subdivisions 1a and 2; 175.0061; 175.09;
176.111, Subdivision 11; and 176.441, Subdivision 2, are
repealed.
Sec. 16. Laws 1981, chapter 346, section 146, is amended
to read:
Sec. 146. [EFFECTIVE DATE.]
Sections 11, 21, 22, 23, 35, 36, 37, 38, 53, 54, 141, and
142 are effective the day following enactment. Sections 1 to 8,
12, 39 to 52, 55 to 95, 99 to 138, 140, and 143 to 145 are
effective July 1, 1981. Sections 96 to 98 are effective October
1, 1981. Sections 9, 10, and 13 to 20 are effective January 1,
1982. Sections 24 30 to 34 are effective July 1, 1983.
Sections 24 to 29 are effective January 1, 1984. Section 139 is
effective retroactively to April 12, 1980.
Sec. 17. Minnesota Statutes 1982, section 147.02, is
amended by adding a subdivision to read:
Subd. 4. [CONTINUING EDUCATION.] The board shall adopt
rules requiring continuing education for physicians, surgeons,
and osteopaths licensed under this chapter who regularly
practice in the area of workers' compensation. These rules
shall include rules relating to continuing education designed to
assure the coordination of treatment, rehabilitation, and other
medical services provided to injured employees under chapter
176. Rules relative to education regarding treatment under
chapter 176 shall be adopted jointly with the commissioner of
labor and industry. These rules shall be consistent with
section 214.12.
Sec. 18. [148.031] [CONTINUING EDUCATION.]
The board shall adopt rules requiring continuing education
for chiropractors licensed under this chapter who regularly
practice in the area of workers' compensation. These rules
shall include rules relating to continuing education designed to
assure the coordination of treatment, rehabilitation, and other
chiropractic services provided to injured employees under
chapter 176. Rules relative to education under chapter 176
shall be adopted jointly with the commissioner of labor and
industry. These rules shall be consistent with section 214.12.
Sec. 19. Minnesota Statutes 1982, section 175.006,
subdivision 1, is amended to read:
Subdivision 1. [CREATION AND ORGANIZATION.] The division
of workers' compensation, generally administering the workers'
compensation law, is created within the department of labor and
industry. There is created as a separate appellate tribunal for
workers' compensation, the workers' compensation court of
appeals.
The workers' compensation court of appeals shall be
composed of five judges each serving in the unclassified service
of the state civil service. Of the five judges, at least three
shall be learned in the law. Each judge of the workers'
compensation court of appeals shall be appointed by the
governor, by and with the advice and consent of the senate, for
a term of six years. The judges of the workers' compensation
court of appeals as now created shall be the judges of the
workers' compensation court of appeals until the expiration of
the terms for which they have been appointed and qualified.
Sec. 20. Minnesota Statutes 1982, section 175.007,
subdivision 1, is amended to read:
Subdivision 1. The commissioner shall appoint an advisory
council on workers' compensation, which shall consist consists
of five representatives of employers and five representatives of
employees and three five nonvoting members representing the
general public. The council may consult with the judges of the
workers' compensation court of appeals any party it desires.
The council shall expire and the terms, compensation and removal
of members shall be as provided in section 15.059. The council
is not subject to section 15.059, subdivision 5.
Sec. 21. Minnesota Statutes 1982, section 175.08, is
amended to read:
175.08 [OFFICE.]
The workers' compensation court of appeals and the
department of labor and industry shall maintain their its main
offices office within the Minneapolis-Saint Paul metropolitan
area and be provided by the commissioner of administration with
suitable rooms and necessary furniture. The offices of the
workers' compensation court of appeals and the department of
labor and industry shall be in separate buildings. They It may
hold sessions at any other place in the state when their
convenience and that of the parties interested so requires it is
convenient.
Sec. 22. Minnesota Statutes 1982, section 175.10, is
amended to read:
175.10 [SESSIONS TO BE PUBLIC.]
The department of labor and industry shall be open for the
transaction of business during all business hours of each and
every day, excepting Saturdays, Sundays and legal holidays. The
hearings of the workers' compensation court of appeals and the
workers' compensation division shall be are open to the public
and may be adjourned from time to time. All the proceedings of
the workers' compensation court of appeals and the division
shall be shown on their its records, which shall be are public
records.
Sec. 23. Minnesota Statutes 1982, section 175.101,
subdivision 1, is amended to read:
Subdivision 1. It is the legislative purpose in creating a
division of workers' compensation, and in assigning to the
commissioner of the department of labor and industry specific
duties and responsibilities, to:
(a) provide for a unified department of labor and industry
for the limited purposes of organization and administration of
common administrative functions; and
(b) assure the autonomy and maximum independence of the
necessary adjudicative functions and quasi-legislative
administrative duties of the division, and;
(c) separate and limit the functions and responsibilities
of the existing workers' compensation court of appeals to those
appropriate to an independent appellate reviewing body.
The commissioner of the department of labor and industry as
head of the workers' compensation division is the administrator
of the workers' compensation division. He The commissioner
shall possess only such the powers and shall perform only such
the duties as are specifically prescribed by law.
Sec. 24. Minnesota Statutes 1982, section 175.101,
subdivision 2, is amended to read:
Subd. 2. The commissioner of the department of labor and
industry shall keep a full and true record of all proceedings of
the workers' compensation division and the workers' compensation
court of appeals, issue all necessary processes, writs,
warrants, and notices which the division or workers'
compensation court of appeals are is required or authorized to
issue and generally act as the administrator of the division of
workers' compensation in the department of labor and industry.
Notices and other documents required to be served or filed on
the division of workers' compensation or the workers'
compensation court of appeals shall be served on the
commissioner of the department of labor and industry.
Sec. 25. Minnesota Statutes 1982, section 176.001, is
amended to read:
176.001 [INTENT OF THE LEGISLATURE.]
It is the intent of the legislature that chapter 176 be
interpreted so as to assure the quick and efficient delivery of
indemnity and medical benefits to injured workers at a
reasonable cost to the employers who are subject to the
provisions of chapter 176. It is the specific intent of the
legislature that workers' compensation cases shall be decided on
their merits and that the common law rule of "liberal
construction" based on the supposed "remedial" basis of workers'
compensation legislation shall not apply in such cases. The
workers' compensation system in Minnesota is based on a mutual
renunciation of common law rights and defenses by employers and
employees alike. Employees' rights to sue for damages over and
above medical and health care benefits and wage loss benefits
are to a certain degree limited by the provisions of this
chapter, and employers' rights to raise common law defenses such
as lack of negligence, contributory negligence on the part of
the employee, and others, are curtailed as well. Accordingly,
the legislature hereby declares that the workers' compensation
laws are not remedial in any sense and are not to be given a
broad liberal construction in favor of the claimant or employee
on the one hand, nor are the rights and interests of the
employer to be favored over those of the employee on the other
hand.
Sec. 26. Minnesota Statutes 1982, section 176.011,
subdivision 9, is amended to read:
Subd. 9. [EMPLOYEE.] "Employee" means any person who
performs services for another for hire; and includes the
following:
(1) an alien;
(2) a minor;
(3) a sheriff, deputy sheriff, constable, marshal,
policeman, firefighter, a county highway engineer, and a peace
officer while engaged in the enforcement of peace or in and
about the pursuit or capture of any person charged with or
suspected of crime and any person requested or commanded to aid
an officer in arresting any person, or in retaking any person
who has escaped from lawful custody, or in executing any legal
process in which case, for purposes of calculating compensation
payable under this chapter, the daily wage of the person
requested or commanded to assist an officer or to execute a
legal process shall be the prevailing wage for similar services
where the services are performed by paid employees;
(4) a county assessor;
(5) an elected or appointed official of the state, or of
any county, city, town, school district or governmental
subdivision therein but an officer of a political subdivision
elected or appointed for a regular term of office or to complete
the unexpired portion of any such regular term, shall be
included only after the governing body of the political
subdivision has adopted an ordinance or resolution to that
effect;
(6) an executive officer of a corporation except an officer
of a family farm corporation as defined in section 500.24,
subdivision 1, clause (c), nor shall it include an executive
officer of a closely held corporation who is referred to in
section 176.012;
(7) a voluntary uncompensated worker, other than an inmate,
rendering services in state institutions under the commissioner
of public welfare and state institutions under the commissioner
of corrections similar to those of officers and employees of
these institutions, and whose services have been accepted or
contracted for by the commissioner of public welfare or the
commissioner of corrections as authorized by law, shall be
employees within the meaning of this subdivision. In the event
of injury or death of the voluntary uncompensated worker, the
daily wage of the worker, for the purpose of calculating
compensation payable under this chapter, shall be the usual
going wage paid at the time of the injury or death for similar
services in institutions where the services are performed by
paid employees;
(8) a voluntary uncompensated worker engaged in peace time
in the civil defense program when ordered to training or other
duty by the state or any political subdivision thereof, shall be
an employee. The daily wage of the worker for the purpose of
calculating compensation payable under this chapter, shall be
the usual going wage paid at the time of the injury or death for
similar services where the services are performed by paid
employees;
(9) a voluntary uncompensated worker participating in a
program established by a county welfare board shall be an
employee within the meaning of this subdivision. In the event
of injury or death of the voluntary uncompensated worker, the
wage of the worker, for the purpose of calculating compensation
payable under this chapter, shall be the usual going wage paid
in the county at the time of the injury or death for similar
services where the services are performed by paid employees
working a normal day and week;
(10) a voluntary uncompensated worker accepted by the
commissioner of natural resources who is rendering services as a
volunteer pursuant to section 84.089 shall be an employee. The
daily wage of the worker for the purpose of calculating
compensation payable under this chapter, shall be the usual
going wage paid at the time of injury or death for similar
services where the services are performed by paid employees;
(11) a member of the military forces, as defined in section
190.05, while in "active service" or "on duty" as defined in
section 190.05, when the service or duty is ordered by state
authority. The daily wage of the member for the purpose of
calculating compensation payable under this chapter shall be
based on the member's usual earnings in civil life. If there is
no evidence of previous occupation or earning, the trier of fact
shall consider the member's earnings as a member of the military
forces;
(12) a voluntary uncompensated worker, accepted by the
director of the Minnesota historical society, rendering services
as a volunteer, pursuant to chapter 138, shall be an employee.
The daily wage of the worker, for the purposes of calculating
compensation payable under this chapter, shall be the usual
going wage paid at the time of injury or death for similar
services where the services are performed by paid employees;
(13) a voluntary uncompensated worker, other than a
student, who renders services at the Minnesota School for the
Deaf or the Minnesota Braille and Sight-Saving School, and whose
services have been accepted or contracted for by the state board
of education, as authorized by law, shall be an employee within
the meaning of this subdivision. In the event of injury or
death of the voluntary uncompensated worker, the daily wage of
the worker, for the purpose of calculating compensation payable
under this chapter, shall be the usual going wage paid at the
time of the injury or death for similar services in institutions
where the services are performed by paid employees;
(14) a voluntary uncompensated worker, other than a
resident of the veterans home, who renders services at a
Minnesota veterans home, and whose services have been accepted
or contracted for by the commissioner of veterans affairs, as
authorized by law, is an employee within the meaning of this
subdivision. In the event of injury or death of the voluntary
uncompensated worker, the daily wage of the worker, for the
purpose of calculating compensation payable under this chapter,
shall be the usual going wage paid at the time of the injury or
death for similar services in institutions where the services
are performed by paid employees;
(15) a worker who renders in-home attendant care services
to a physically handicapped person, and who is paid directly by
the commissioner of public welfare for these services, shall be
an employee of the state within the meaning of this subdivision,
but for no other purpose; and
(16) those students enrolled in and regularly attending the
medical school of the University of Minnesota, whether in the
graduate school program or the post-graduate program, as
provided in section 147.20, notwithstanding that the students
shall not be considered employees for any other purpose. In the
event of the student's injury or death, the weekly wage of the
student for the purpose of calculating compensation payable
under chapter 176, shall be the annualized educational stipend
awarded to the student, divided by 52 weeks. The institution in
which the student is enrolled shall be considered the "employer"
for the limited purpose of determining responsibility for paying
benefits payable under chapter 176.
In the event it is difficult to determine the daily wage as
provided in this subdivision, then the trier of fact may
determine the wage upon which the compensation is payable.
Sec. 27. Minnesota Statutes 1982, section 176.011, is
amended by adding a subdivision to read:
Subd. 23. [RETRAINING.] "Retraining" means a formal course
of study in a school setting which is designed to train an
employee to return to suitable gainful employment.
Sec. 28. Minnesota Statutes 1982, section 176.011, is
amended by adding a subdivision to read:
Subd. 24. [HEALTH CARE PROVIDER.] "Health care provider"
means a physician, podiatrist, chiropractor, dentist,
optometrist, osteopath, psychologist, psychiatric social worker,
or any other person who furnishes a medical or health service to
an employee under this chapter but does not include a qualified
rehabilitation consultant or approved vendor.
Sec. 29. Minnesota Statutes 1982, section 176.011, is
amended by adding a subdivision to read:
Subd. 25. [MAXIMUM MEDICAL IMPROVEMENT.] "Maximum medical
improvement" means the date after which no further significant
recovery from or significant lasting improvement to a personal
injury can reasonably be anticipated, based upon reasonable
medical probability.
Sec. 30. Minnesota Statutes 1982, section 176.011, is
amended by adding a subdivision to read:
Subd. 26. [MONITORING PERIOD.] "Monitoring period" means
the number of weeks during which economic recovery compensation
pursuant to section 176.101, subdivision 3a, would have been
paid if that compensation were payable.
Sec. 31. Minnesota Statutes 1982, section 176.012, is
amended to read:
176.012 [ELECTION OF COVERAGE.]
The persons, partnerships and corporations described in
this section may elect to provide the insurance coverage
required by this chapter.
(a) An owner or owners of a business or farm may elect
coverage for themselves.
(b) A partnership owning a business or farm may elect
coverage for any partner.
(c) A family farm corporation as defined in section 500.24,
subdivision 2, clause (c) may elect coverage for any executive
officer.
(d) A closely held corporation which had less than 22,880
hours of payroll in the previous calendar year may elect
coverage for any executive officer if that executive officer is
also an owner of at least 25 percent of the stock of the
corporation.
(e) A person, partnership, or corporation hiring an
independent contractor, as defined by rules adopted by the
commissioner, may elect to provide coverage for that independent
contractor.
The persons, partnerships and corporations described in
this section may also elect coverage for an employee who is a
spouse, parent or child, regardless of age, of an owner,
partner, or executive officer, who is eligible for coverage
under this section. Coverage may be elected for a spouse,
parent or child whether or not coverage is elected for the
related owner, partner or executive director and whether or not
the person, partnership or corporation employs any other person
to perform a service for hire. Any person for whom coverage is
elected pursuant to this section shall be included within the
meaning of the term employee for the purposes of this chapter.
Notice of election of coverage or of termination of
election under this section shall be provided in writing to the
insurer. Coverage or termination of coverage is effective the
day following receipt of notice by the insurer or at a
subsequent date if so indicated in the notice. The insurance
policy shall be endorsed to indicate the names of those persons
for whom coverage has been elected or terminated under this
section. An election of coverage under this section shall
continue in effect as long as a policy or renewal policy of the
same insurer is in effect.
Nothing in this section shall be construed to limit the
responsibilities of owners, partnerships or corporations to
provide coverage for their employees, if any, as required under
this chapter.
Sec. 32. Minnesota Statutes 1982, section 176.021,
subdivision 1a, is amended to read:
Subd. 1a. [BURDEN OF PROOF.] All disputed issues of fact
arising under chapter 176 shall be determined by a preponderance
of the evidence, and in accordance with the principles laid down
in section 176.001. Preponderance of the evidence means
evidence produced in substantiation of a fact which, when
weighed against the evidence opposing the fact, has more
convincing force and greater probability of truth.
Questions of law arising under chapter 176 shall be
determined in accordance with the rules of construction
generally applied to all other civil matters on an even-handed
basis in accordance with the principles laid down in section
176.001.
Sec. 33. Minnesota Statutes 1982, section 176.021,
subdivision 3, is amended to read:
Subd. 3. [COMPENSATION, COMMENCEMENT OF PAYMENT.] All
employers shall commence payment of compensation at the time and
in the manner prescribed by this chapter without the necessity
of any agreement or any order of the division. Except for
medical, burial, and other nonperiodic benefits, payments shall
be made as nearly as possible at the intervals when the wage was
payable, provided, however, that payments for permanent partial
disability shall be governed by subdivision 3a section 176.101.
If doubt exists as to the eventual permanent partial disability,
payment for the economic recovery compensation or impairment
compensation, whichever is due, pursuant to subdivision 3a
section 176.101, shall be then made when due for the minimum
permanent partial disability ascertainable, and further payment
shall be made upon any later ascertainment of greater permanent
partial disability. Prior to or at the time of any tender
commencement of the lump sum payment of economic recovery
compensation or lump sum or periodic payment of impairment
compensation, the employee and employer shall be furnished with
a copy of the medical report upon which the payment is based and
all other medical reports which the insurer has that indicate a
permanent partial disability rating, together with a statement
by the insurer as to whether the tendered payment is for minimum
permanent partial disability or final and eventual disability.
Compensation for permanent partial disability After receipt of
all reports available to the insurer that indicate a permanent
partial disability rating, the employee shall make available or
permit the insurer to obtain any medical report that the
employee has or has knowledge of that contains a permanent
partial disability rating which the insurer does not already
have. Economic recovery compensation or impairment compensation
pursuant to section 176.101 is payable in addition to but not
concurrently with compensation for temporary total disability
and but is payable temporary partial disability pursuant to
section 176.101, subdivisions 1 and 2, as provided in
subdivision 3a. Compensation for permanent partial disability
Impairment compensation is payable concurrently and in addition
to compensation for permanent total disability pursuant to
section 176.101, subdivision 5, as provided in subdivision 3a.
Compensation for permanent partial disability Economic recovery
compensation or impairment compensation pursuant to section
176.101 shall be withheld pending completion of payment for
temporary total and temporary partial disability but shall not
be withheld pending payment of compensation for permanent total
disability, and no credit shall be taken for payment of
permanent partial disability economic recovery compensation or
impairment compensation against liability for temporary total or
future permanent total disability. Liability on the part of an
employer or his the insurer for disability of a temporary total,
temporary partial, and permanent total nature shall be
considered as a continuing product and part of the employee's
inability to earn or reduction in earning capacity due to injury
or occupational disease and shall be compensation is payable
accordingly, subject to subdivision 3a section 176.101.
Permanent partial disability Economic recovery compensation or
impairment compensation is payable for functional loss of use or
impairment of function, permanent in nature, and payment
therefore shall be separate, distinct, and in addition to
payment for any other compensation, subject to subdivision 3a
section 176.101. The right to receive temporary total,
temporary partial, permanent partial or permanent total
disability payments shall vest vests in the injured employee or
his the employee's dependents under this chapter or, if none, in
his the employee's legal heirs at the time the disability can be
ascertained and the right shall is not be abrogated by the
employee's death prior to the making of the payment.
The right to receive economic recovery compensation or
impairment compensation vests in an injured employee at the time
the disability can be ascertained provided that the employee
lives for at least 30 days beyond the date of the injury. Upon
the death of an employee who is receiving economic recovery
compensation or impairment compensation, further compensation is
payable pursuant to section 176.101. Impairment compensation is
payable under this paragraph if vesting has occurred, the
employee dies prior to reaching maximum medical improvement, and
the requirements and conditions under section 176.101,
subdivision 3e, are not met.
Disability ratings for permanent partial disability shall
be based on objective medical evidence.
Sec. 34. Minnesota Statutes 1982, section 176.041,
subdivision 1, is amended to read:
Subdivision 1. [EMPLOYMENTS EXCLUDED.] This chapter does
not apply to persons employed by any common carrier by railroad
engaged in interstate or foreign commerce, which persons who are
covered by the Federal Employers' Liability Act (45 U.S.C.
51-60) or other comparable federal law; persons employed by
family farms as defined by section 176.011, subdivision 11a, the
spouse, parent and child, regardless of age, of a farmer
employer working for him the farmer employer; partners engaged
in any farm operation or partners engaged in a business and the
spouse, parent, and child, regardless of age, of any of the
partners of the farm operation or business; an executive officer
of a family farm corporation; an executive officer of a closely
held corporation referred to in section 176.012; any spouse,
parent, or child, regardless of age, of an executive officer of
a family farm corporation as defined in section 500.24,
subdivision 2, employed by that family farm corporation; any
spouse, parent, or child, regardless of age, of an executive
officer of a closely held corporation referred to in section
176.012; or other farmers or members of their families
exchanging work with the farmer employer or family farm
corporation operator in the same community, or persons whose
employment at the time of the injury is casual, and not in the
usual course of the trade, business, profession, or occupation
of his the employer; persons who are independent contractors as
defined by rules adopted by the commissioner pursuant to section
176.83 except that this exclusion does not apply to an employee
of an independent contractor; nor does it apply to officers or
members of veteran's organizations whose employment relationship
arises solely by virtue of attending meetings or conventions of
their organization, unless the veteran's organizations elect by
resolution to provide coverage under this chapter for the
officers or members. Neither shall The chapter also does not
apply to any person employed as a household worker in, for, or
about, a private home or household who earns less than $500 in
cash in any three month period from a single private home or
household provided that any household worker who has earned $500
or more from his the household worker's present employer in any
three month period within the previous year shall be is covered
by this chapter regardless of whether or not he the household
worker has earned $500 in the present quarter earned $500. This
chapter does not apply to those persons employed by a
corporation where those persons are related by blood or
marriage, within the third degree of kindred according to the
rules of civil law, to all of the officers of the corporation,
and if the corporation files a written election with the
commissioner of labor and industry to have those persons
excluded from this chapter except that a written election is not
required for a person who is otherwise excluded from this
chapter by this section. This chapter does not apply to a
nonprofit association which does not pay more than $500 in
salary or wages in a year.
Sec. 35. Minnesota Statutes 1982, section 176.061, is
amended to read:
176.061 [THIRD PARTY LIABILITY.]
Subdivision 1. [ELECTION OF REMEDIES.] Where If an injury
or death for which benefits are payable occurs under
circumstances which create a legal liability for damages on the
part of a party other than the employer and at the time of such
the injury or death that party was insured or self-insured in
accordance with this chapter, the employee, in case of injury,
or his the employee's dependents, in case of death, may proceed
either at law against that party to recover damages or against
the employer for benefits, but not against both.
Subd. 2. [ACTION FOR RECOVERY OF DAMAGES.] If the
employee, in case of injury, or his the employee's dependents,
in case of death, brings an action for the recovery of damages,
the amount thereof of the damages, the manner in which they are
paid, and the persons to whom the same they are payable, shall
be are as provided in this chapter. In no case shall such the
party be liable to any person other than the employee or his the
employee's dependents for any damages resulting from such the
injury or death.
Subd. 3. [ELECTION TO RECEIVE BENEFITS FROM EMPLOYER;
SUBROGATION.] If the employee or his the employee's dependents
elect to receive benefits from the employer, or the special
compensation fund, the employer, or the special compensation
fund, has a right of indemnity or is subrogated to the right of
the employee or his the employee's dependents to recover damages
against the other party. The employer, or the attorney general
on behalf of the special compensation fund, may bring legal
proceedings against such the party and recover the aggregate
amount of benefits payable to or on behalf of the employee or
his the employee's dependents, together with costs,
disbursements, and reasonable attorney's fees of the action.
If an action as provided in this chapter is prosecuted by
the employee, the employer, or the attorney general on behalf of
the special compensation fund, against the third person, and
results in judgment against the third person, or settlement by
the third person, the employer shall have has no liability to
reimburse or hold the third person harmless on the judgment or
settlement in absence of a written agreement to do so executed
prior to the injury.
Subd. 4. [APPLICATION OF SUBDIVISIONS 1, 2, AND 3.] The
provisions of subdivisions 1, 2, and 3 apply only where if the
employer liable for benefits and the other party legally liable
for damages are insured or self-insured and engaged, in the due
course of business in, (a) furtherance of a common enterprise,
or (b) in the accomplishment of the same or related purposes in
operations on the premises where the injury was received at the
time thereof of the injury.
Subd. 5. [CUMULATIVE REMEDIES.] Where If an injury or
death for which benefits are payable is caused under
circumstances which created a legal liability for damages on the
part of a party other than the employer, that party being then
insured or self-insured in accordance with this chapter, and the
provisions of subdivisions 1, 2, 3, and 4 do not apply, or the
party other than the employer is not then insured or
self-insured as provided by this chapter, legal proceedings may
be taken by the employee or his the employee's dependents in
accordance with clause (a), or by his employer, or by the
attorney general on behalf of the special compensation fund, in
accordance with clause (b), against the other party to recover
damages, notwithstanding the payment of benefits by the employer
, or the special compensation fund or their liability to pay
benefits.
(a) If an action against the other party is brought by the
injured employee or his the employee's dependents and a judgment
is obtained and paid or settlement is made with the other party,
the employer or the special compensation fund may deduct from
the benefits payable the amount actually received by the
employee or dependents or paid on their behalf in accordance
with subdivision 6. If the action is not diligently prosecuted
or if the court deems it advisable in order to protect the
interests of the employer, or the special compensation fund,
upon application the court may grant the employer, or the
special compensation fund, the right to intervene in any such
the action for the prosecution thereof of the action. If the
injured employee or his the employee's dependents or any party
on their behalf receives benefits from the employer, or the
special compensation fund, or institute institutes proceedings
to recover the same benefits or accept accepts from the employer
, or the special compensation fund, any payment on account of
the benefits, the employer, or the special compensation fund, is
subrogated to the rights of the employee or his the employee's
dependents or has a right of indemnity against a third party.
This The employer, or the attorney general on behalf of the
special compensation fund, may maintain an a separate action or
continue an action already instituted. This action may be
maintained in the name of the employee or the names of the
employee's dependents, or in the name of the employer, or in the
name of the attorney general on behalf of the special
compensation fund, against such the other party for the recovery
of damages. If the action is not diligently prosecuted by the
employer, or the attorney general on behalf of the special
compensation fund, or if the court deems it advisable in order
to protect the interest of the employee, the court, upon
application, may grant to the employee or his the employee's
dependents the right to intervene in the action for the
prosecution thereof of the action. The proceeds of such the
action or settlement thereof of the action shall be paid in
accordance with subdivision 6.
(b) If an employer, being then insured, sustains damages
due to a change in workers' compensation insurance premiums,
whether by a failure to achieve a decrease or by a retroactive
or prospective increase, as a result of the injury or death of
his an employee which was caused under circumstances which
created a legal liability for damages on the part of a party
other than the employer, the employer, notwithstanding other
remedies provided, may maintain an action against the other
party for recovery of such the premiums. This cause of action
may be brought either by joining in an action described in
clause (a) or by a separate action. Damages recovered under
this clause shall be are for the benefit of the employer and the
provisions of subdivision 6 shall are not be applicable to such
the damages.
(c) The third party is not liable to any person other than
the employee or his the employee's dependents, or his the
employer, or the special compensation fund, for any damages
resulting from the injury or death.
A co-employee working for the same employer is not liable
for a personal injury incurred by another employee unless the
injury resulted from the gross negligence of the co-employee or
was intentionally inflicted by the co-employee.
Subd. 6. [COSTS, ATTORNEY FEES, EXPENSES.] The proceeds of
all actions for damages or of a settlement thereof of an action
under this section, except for damages received under
subdivision 5, clause (b) received by the injured employee or
his the employee's dependents or by the employer, or the special
compensation fund, as provided by subdivision 5, shall be
divided as follows:
(a) After deducting the reasonable cost of collection,
including but not limited to attorneys fees and burial expense
in excess of the statutory liability, then
(b) One-third of the remainder shall in any event be paid
to the injured employee or his the employee's dependents,
without being subject to any right of subrogation.
(c) Out of the balance remaining, the employer, or the
special compensation fund, shall be reimbursed in an amount
equal to all benefits paid under this chapter to or on behalf of
the employee or his the employee's dependents by the employer,
or special compensation fund, less the product of the costs
deducted under clause (a) divided by the total proceeds received
by the employee or his dependents from the other party
multiplied by all benefits paid by the employer, or the special
compensation fund, to the employee or his the employee's
dependents.
(d) Any balance remaining shall be paid to the employee or
his the employee's dependents, and shall be a credit to the
employer, and or the special compensation fund, for any benefits
which the employer or the special compensation fund is obligated
to pay, but has not paid, and for any benefits that such the
employer shall be or the special compensation fund is obligated
to make in the future.
There shall be no reimbursement or credit to the employer,
or to the special compensation fund, for interest or penalties.
Subd. 7. [MEDICAL TREATMENT.] The liability of an employer
, or the special compensation fund, for medical treatment or
payment of any other compensation under this chapter shall is
not be affected by the fact that his the employee was injured
through the fault or negligence of a third party, against whom
the employee may have a cause of action which may be sued under
this chapter, but the employer, or the attorney general on
behalf of the special compensation fund, shall have has a
separate additional cause of action against such the third party
to recover any amounts paid for medical treatment or for other
compensation payable under this section resulting from the
negligence of such the third party. This separate cause of
action of the employer, or the attorney general on behalf of the
special compensation fund, may be asserted in a separate action
brought by the employer, or the attorney general on behalf of
the special compensation fund, against such the third party, or
in the action commenced by the employee or the employer, or the
attorney general on behalf of the special compensation fund,
under this chapter, but in the latter case the cause of action
shall be separately stated, the amount awarded thereon in the
action shall be separately set out in the verdict, and the
amount recovered by suit or otherwise as reimbursement for
medical expenses or other compensation shall be for the benefit
of the employer, or the special compensation fund, to the extent
that the employer, or the special compensation fund, has paid or
will be required to pay compensation or pay for medical
treatment of the injured employee and shall does not affect the
amount of periodic compensation to be paid.
Subd. 8. [STATE AS EMPLOYER.] In every case arising under
subdivision 5 when the state is the employer and a settlement
between the third party and the employee is made it is not valid
unless prior notice thereof is given to the state within a
reasonable time. If the state pays compensation to the employee
under the provisions of this chapter and becomes subrogated to
the rights of the employee or his dependents any settlement
between the employee or his dependents and the third party is
void as against the state's right of subrogation. When an
action at law is instituted by an employee or his dependents
against a third party for recovery of damages a copy of the
complaint and notice of trial or note of issue in such action
shall be served on the state. Any judgment rendered therein is
subject to a lien of the state for the amount to which it is
entitled to be subrogated under the provisions of subdivision 5.
Subd. 8a. [NOTICE TO EMPLOYER.] In every case arising
under subdivision 5, a settlement between the third party and
the employee is not valid unless prior notice of the intention
to settle is given to the employer within a reasonable time. If
the employer or insurer pays compensation to the employee under
the provisions of this chapter and becomes subrogated to the
right of the employee or the employee's dependents or has a
right of indemnity, any settlement between the employee or the
employee's dependents and the third party is void as against the
employer's right of subrogation or indemnity. When an action at
law is instituted by an employee or the employee's dependents
against a third party for recovery of damages, a copy of the
complaint and notice of trial or note of issue in the action
shall be served on the employer or insurer. Any judgment
rendered in the action is subject to a lien of the employer for
the amount to which it is entitled to be subrogated or
indemnified under the provisions of subdivision 5.
Subd. 9. [SERVICE OF NOTICE ON ATTORNEY GENERAL.] In every
case in which the state is liable to pay compensation or is
subrogated to the rights of the employee or his the employee's
dependents or has a right of indemnity, all notices required to
be given the state shall be served on the attorney general and
the commissioner of the department of labor and industry.
Subd. 10. [INDEMNITY.] Notwithstanding the provisions of
chapter 65B or any other law to the contrary, an employer has a
right of indemnity for any compensation paid or payable pursuant
to this chapter, including temporary total compensation,
temporary partial compensation, permanent partial disability,
economic recovery compensation, impairment compensation, medical
compensation, rehabilitation, death, and permanent total
compensation.
Sec. 36. Minnesota Statutes 1982, section 176.081,
subdivision 1, is amended to read:
Subdivision 1. No claim for legal services or
disbursements pertaining to any demand made or suit or
proceeding brought under the provisions of this chapter is an
enforceable lien against the compensation or is valid or binding
in any other respect unless approved in writing by the division,
a compensation judge, a judge of the district court, or the
workers' compensation court of appeals, if the claim arises out
of a proceeding for compensation under this chapter, or by the
judge presiding at the trial in an action for damages, or by a
judge of the district court in a settlement of a claim for
damages without trial. The division, a compensation judge, a
judge of the district court or the workers' compensation court
of appeals shall in matters before them, including settlement
proceedings, have authority to approve (a) A fee for legal
services of up to 25 percent of the first $4,000 of compensation
awarded to the employee and up to 20 percent of the next $27,500
of compensation awarded to the employee is permissible and does
not require approval by the commissioner, compensation judge, or
any other party except as provided in clause (b). If the
employer or his the insurer or the defendant is given written
notice of such claims for legal services or disbursements, the
same claim shall be a lien against the amount paid or payable as
compensation, subject to determination of the amount and
approval provided by this chapter. Provided, however, that In
no case shall fees be calculated on the basis of any undisputed
portion of compensation awards. Allowable fees under this
chapter shall be based solely upon genuinely disputed portions
of claims, including disputes related to the payment of
rehabilitation benefits or to other aspects of a rehabilitation
plan.
(b) An attorney who is claiming legal fees under this
section shall file a statement of attorney's fees with the
commissioner, compensation judge before whom the matter was
heard, or workers' compensation court of appeals on cases before
the court. A copy of the signed retainer agreement shall also
be filed. The employee and insurer shall receive a copy of the
statement. The statement shall be on a form prescribed by the
commissioner and shall clearly and conspicuously state that the
employee or insurer has ten calendar days to object to the
attorney fees requested. If no objection is timely made by the
employee or insurer, the amount requested shall be conclusively
presumed reasonable providing the amount does not exceed the
limitation in subdivision 1. The commissioner, compensation
judge, or court of appeals shall issue an order granting the
fees and the amount requested shall be awarded to the party
requesting the fee.
If a timely objection is filed, the commissioner,
compensation judge, or court of appeals shall review the matter
and make a determination based on the criteria in subdivision 5.
If no timely objection is made by an employer or insurer,
reimbursement under subdivision 7 shall be made if the statement
of fees requested this reimbursement.
Sec. 37. Minnesota Statutes 1982, section 176.081,
subdivision 2, is amended to read:
Subd. 2. Any An application for attorney fees in excess of
the amount authorized in subdivision 1 shall be made to the
workers' compensation court of appeals division, compensation
judge, or district judge, before whom the matter was heard. An
appeal of a decision by a compensation judge or district court
judge on additional fees may be made to the workers'
compensation court of appeals. The application shall set forth
the fee requested and the basis for such the request and whether
or not a hearing is requested. The application, with affidavit
of service upon the employee, shall be filed by the attorney
requesting the fee. If a hearing is requested by an interested
party, a hearing shall be set with notice of such the hearing
served upon known interested parties. In all cases the employee
shall be served with notice of hearing.
Sec. 38. Minnesota Statutes 1982, section 176.081,
subdivision 5, is amended to read:
Subd. 5. In the determination of the reasonable value of
attorney fees arising out of a claim or proceeding under this
chapter an award of fees in excess of the amount authorized
under subdivision 1, or if an objection is filed under
subdivision 1, clause (b), the following principles are to be
applied:
(a) The fee in each individual case must be a reasonable
one.
(b) There is no set standard fee to be awarded in any
workers' compensation matter.
(c) No attorney-client fee contract or arrangement is
binding in any workers' compensation matter.
(d) In determining a reasonable attorney fee, important
factors to be taken into account are: the amount involved, the
time and expense necessary to prepare for trial, the
responsibility assumed by counsel, the expertise of counsel in
the workers' compensation field, the difficulties of the issues
involved, the nature of proof needed to be adduced and the
results obtained. The amount of money involved shall not be the
controlling factor.
(e) The determination of the fee in each specific workers'
compensation matter must be done with the same care as the
determination of any other fact question in the matter.
(f) The determiner of the attorney fee in each matter must
ascertain whether or not a retainer fee has been paid to the
attorney and if so, the amount of the retainer fee.
(g) The determiner of attorney fees in each case must
personally see that the workers' compensation file contains
fully adequate information to justify the fee that is determined.
Sec. 39. Minnesota Statutes 1982, section 176.081,
subdivision 6, is amended to read:
Subd. 6. The commissioner, office of administrative
hearings, and the workers' compensation court of appeals may
adopt reasonable and proper joint rules to effect its each of
their obligations under this section.
Sec. 40. Minnesota Statutes 1982, section 176.081,
subdivision 7, is amended to read:
Subd. 7. If the employer or insurer shall file files a
denial of liability, notice of discontinuance, or shall fail
fails to make payment of compensation or medical expenses within
the statutory period after notice of injury or occupational
disease, or shall otherwise resist unsuccessfully resists the
payment of compensation or medical expenses, or unsuccessfully
disputes the payment of rehabilitation benefits or other aspects
of a rehabilitation plan, and the injured person shall have has
employed an attorney at law, who successfully procures payment
on behalf of the employee or who enables the resolution of a
dispute with respect to a rehabilitation plan, the compensation
judge, commissioner of the department of labor and industry, or
the workers' compensation court of appeals upon appeal, upon
application, shall award to the employee against the insurer or
self-insured employer or uninsured employer, in addition to the
compensation benefits paid or awarded to the employee, an amount
equal to 25 percent of that portion of the attorney's fee which
has been awarded pursuant to this section that is in excess of
$250.
Sec. 41. Minnesota Statutes 1982, section 176.081, is
amended by adding a subdivision to read:
Subd. 11. [WHEN FEES DUE.] Attorney fees and other
disbursements for a proceeding under this chapter shall not be
due or paid until the issue for which the fee or disbursement
was incurred has been resolved.
Sec. 42. Minnesota Statutes 1982, section 176.101,
subdivision 1, is amended to read:
Subdivision 1. [TEMPORARY TOTAL DISABILITY.] For injury
producing temporary total disability, the compensation is 66-2/3
percent of the daily weekly wage at the time of injury
(1) provided that during the year commencing on October 1,
1979, and each year thereafter, commencing on October 1, the
maximum weekly benefits compensation payable shall be is the
statewide average weekly wage for the period ending December 31,
of the preceding year.
(2) The minimum weekly compensation benefits for temporary
total disability shall be not less than 50 percent of the
statewide average weekly wage or the injured employee's actual
weekly wage, whichever is less. In no case shall a weekly
benefit be less than 20 percent of the statewide average weekly
wage.
Subject to subdivisions 3a to 3u this compensation shall be
paid during the period of disability, payment to be made at the
intervals when the wage was payable, as nearly as may be.
Sec. 43. Minnesota Statutes 1982, section 176.101,
subdivision 2, is amended to read:
Subd. 2. [TEMPORARY PARTIAL DISABILITY.] In all cases of
temporary partial disability the compensation shall be 66-2/3
percent of the difference between the daily weekly wage of the
worker employee at the time of injury and the wage he the
employee is able to earn in his the employee's partially
disabled condition. This compensation shall be paid during the
period of disability except as provided in section 176.101,
payment to be made at the intervals when the wage was payable,
as nearly as may be, and subject to a maximum compensation equal
to the statewide average weekly wage. If the employer does not
furnish the worker with work which he can do in his temporary
partially disabled condition and he is unable to procure such
work with another employer, after reasonably diligent effort,
the employee shall be paid at the full compensation rate for his
or her temporary total disability.
Sec. 44. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3a. [ECONOMIC RECOVERY COMPENSATION.] If an employee
is not eligible for an impairment award pursuant to subdivision
3b, then the employee shall receive economic recovery
compensation for a permanent partial disability pursuant to this
subdivision. The compensation shall be 66-2/3 percent of the
weekly wage at the time of injury subject to a maximum equal to
the statewide average weekly wage. For permanent partial
disability up to the percent of the whole body in the following
schedule the compensation shall be paid for the proportion that
the loss of function of the disabled part bears to the whole
body multiplied by the number of weeks aligned with that percent.
Percent of disability Weeks of compensation
0-25 600
26-30 640
31-35 680
36-40 720
41-45 760
46-50 800
51-55 880
56-60 960
61-65 1040
66-70 1120
71-100 1200
The percentage loss in all cases under this subdivision is
determined according to the rules adopted by the commissioner
pursuant to section 176.105, subdivision 4. This subdivision
shall apply to a permanent partial disability incurred on or
after the adoption of those rules.
Sec. 45. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3b. [IMPAIRMENT COMPENSATION.] An employee who
suffers a permanent partial disability due to a personal injury
and receives impairment compensation under this section shall
receive compensation in an amount as provided by this
subdivision. For permanent partial disability up to the percent
of the whole body shown in the following schedule the amount
shall be equal to the proportion that the loss of function of
the disabled part bears to the whole body multiplied by the
amount aligned with that percent in the following schedule:
Percent of disability Amount
0-25 $ 75,000
26-30 80,000
31-35 85,000
36-40 90,000
41-45 95,000
46-50 100,000
51-55 120,000
56-60 140,000
61-65 160,000
66-70 180,000
71-75 200,000
76-80 240,000
81-85 280,000
86-90 320,000
91-95 360,000
96-100 400,000
For all cases under this subdivision the percentage loss of
function of a part of the body is determined according to the
rules adopted by the commissioner pursuant to section 176.105,
subdivision 4. This subdivision shall apply to a permanent
partial disability incurred on or after the adoption of those
rules.
Sec. 46. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3c. [MAXIMUM PAYABLE.] The maximum amount payable
under subdivisions 3a and 3b is the maximum compensation payable
to an employee who has a 100 percent disability to the body as a
whole and under no conditions shall an employee receive more
than those amounts even if the employee sustains a disability to
two or more body parts.
Sec. 47. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3d. [GENERAL.] An employee who has incurred a
personal injury shall receive temporary total compensation until
these benefits are no longer payable pursuant to this section.
If the injury results in a permanent partial disability the
employee shall receive compensation as provided in this section.
Sec. 48. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3e. [END OF TEMPORARY TOTAL COMPENSATION.] (a) 90
days after an employee has reached maximum medical improvement
or 90 days after the end of an approved retraining program,
whichever is later, the employee's temporary total compensation
shall cease. This cessation shall occur at an earlier date if
otherwise provided by this chapter.
(b) If during the 90-day period described in clause (a) the
employee retires or the employer furnishes work to the employee
that is consistent with an approved plan of rehabilitation or,
if no plan has been approved, that the employee can do in his or
her physical condition and that job produces an economic status
as close as possible to that the employee would have enjoyed
without the disability, or the employer procures this employment
with another employer or the employee accepts this job with
another employer, temporary total compensation shall cease and
the employee shall, if appropriate, receive impairment
compensation pursuant to subdivision 3b. This impairment
compensation is in lieu of economic recovery compensation under
subdivision 3a, and the employee shall not receive both economic
recovery compensation and impairment compensation. Temporary
total compensation and impairment compensation shall not be paid
concurrently. Once temporary total compensation ceases no
further temporary total compensation is payable except as
specifically provided by this section.
Upon receipt of a written medical report indicating that
the employee has reached maximum medical improvement, the
employer or insurer shall serve a copy of the report upon the
employee and shall file a copy with the division. The beginning
of the 90-day period shall commence on the day this report is
served on the employee for the purpose of determining whether a
job offer consistent with the requirements of this subdivision
is made.
(c) The job which is offered or procured by the employer or
accepted by the employee under clause (b) does not necessarily
have to commence immediately but shall commence within a
reasonable period after the end of the 90-day period described
in clause (a). Temporary total compensation shall not cease
under this subdivision until the job commences.
(d) If the job offered under clause (a) is not the job the
employee had at the time of injury it shall be offered in
writing and shall state the nature of the job, the rate of pay,
the physical requirements of the job, and any other information
necessary to fully and completely inform the employee of the job
duties and responsibilities.
The employee has 14 calendar days to accept or reject the
job offer. If the employee does not respond within this period
it is deemed a refusal of the offer.
(e) Self-employment may be an appropriate job under this
subdivision.
The commissioner shall monitor application of this
subdivision and may adopt rules to assure its proper application.
Sec. 49. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3f. [JOB PRIOR TO MAXIMUM MEDICAL IMPROVEMENT.] If
the employer offers a job prior to the employee reaching maximum
medical improvement and the job is consistent with an approved
plan of rehabilitation or if no rehabilitation plan has been
approved and the job is within the employee's physical
limitations; or the employer procures a job for the employee
with another employer which meets the requirements of this
subdivision; or the employee accepts a job with another employer
which meets the requirements of this subdivision, the employee's
temporary total compensation shall cease. In this case the
employee shall receive impairment compensation for the permanent
partial disability which is ascertainable at that time. This
impairment compensation shall be paid at the same rate that
temporary total compensation was last paid. Upon reaching
maximum medical improvement the provisions of subdivisions 3e or
3p apply, whichever is appropriate, and economic recovery
compensation or impairment compensation is payable accordingly
except that the compensation shall be offset by impairment
compensation received under this subdivision.
Sec. 50. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3g. [ACCEPTANCE OF JOB OFFER.] If the employee
accepts a job offer described in subdivision 3e and the employee
begins work at that job, although not necessarily within the
90-day period specified in that subdivision, the impairment
compensation shall be paid in a lump sum 30 calendar days after
the employee actually commences work.
Sec. 51. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3h. [TEMPORARY PARTIAL COMPENSATION.] An employee
who accepts a job under subdivision 3e or subdivision 3f and
begins that job shall receive temporary partial compensation
pursuant to subdivision 2, if appropriate.
Sec. 52. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3i. [LAY OFF BECAUSE OF LACK OF WORK OR RELEASED FOR
OTHER THAN SEASONAL CONDITIONS.] (a) If an employee accepts a
job under subdivision 3e and begins work at that job and is
subsequently unemployed because of economic conditions, other
than seasonal conditions, the employee shall receive monitoring
period compensation pursuant to clause (b). In addition, the
employer who was the employer at the time of the injury shall
provide rehabilitation consultation by a qualified
rehabilitation consultant if the employee remains unemployed for
45 calendar days. The commissioner may waive this
rehabilitation consultation if the commissioner deems it
appropriate. Further rehabilitation, if deemed appropriate, is
governed by section 176.102.
(b) Upon the employee's initial return to work the
monitoring period begins to run. If the employee is unemployed
for the reason in clause (a), prior to the end of the monitoring
period the employee shall receive monitoring period
compensation. This compensation shall be paid for the lesser of
(1) the weeks remaining in the monitoring period, or (2) the
weeks equal to the monitoring period minus the impairment
compensation paid to the employee. For purposes of this clause
the impairment compensation shall be converted to weeks by
dividing the impairment compensation received by the employee by
the employee's compensation rate for temporary total disability
at the time of the injury. No monitoring period compensation is
payable if the unemployment occurs after the expiration of the
monitoring period. Monitoring period compensation is payable at
the same intervals and in the same amount as when temporary
total compensation ceased.
(c) If the employee returns to work and is still receiving
monitoring period compensation, this compensation shall cease.
Any period remaining in the monitoring period upon this return
to work shall be used to determine further benefits if the
employee is again unemployed under clause (a).
(d) Upon the employee's return to work pursuant to this
section the insurer shall notify the employee of the length of
the employee's monitoring period and shall notify the employee
of the amount of impairment to be paid and the date of payment.
Sec. 53. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3j. [MEDICALLY UNABLE TO CONTINUE WORK.] (a) If the
employee has started the job offered under subdivision 3e and is
medically unable to continue at that job because of the
permanent partial disability, that employee shall receive
temporary total compensation pursuant to clause (b). In
addition, the employer who was the employer at the time of the
injury shall provide rehabilitation consultation by a qualified
rehabilitation consultant. Further rehabilitation, if deemed
appropriate, is governed by section 176.102.
(b) Temporary total compensation shall be paid for up to 90
days after the employee has reached maximum medical improvement
or 90 days after the end of an approved retraining plan,
whichever is later. The temporary total compensation shall
cease at any time within the 90-day period that the employee
begins work meeting the requirements of subdivision 3e. If no
job is offered to the employee by the end of this 90-day period,
the employee shall receive economic recovery compensation
pursuant to this section but reduced by the impairment
compensation previously received by the employee for the same
disability.
Sec. 54. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3k. [UNEMPLOYMENT DUE TO SEASONAL CONDITION.] If an
employee has started the job offered under subdivision 3e and is
subsequently unemployed from that job because of the job's
seasonal nature, the employee shall receive any unemployment
compensation the employee is eligible for pursuant to chapter
268. The employee shall receive, in addition and concurrently,
the amount that the employee was receiving for temporary partial
disability at the time of the layoff. No further or additional
compensation is payable under this chapter because of the
seasonal layoff.
Sec. 55. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3l. [FAILURE TO ACCEPT JOB OFFER.] If the employee
has been offered a job under subdivision 3e and has refused the
offer, the impairment compensation shall not be paid in a lump
sum but shall be paid in the same interval and amount that
temporary total compensation was initially paid. Temporary
total compensation shall cease upon the employee's refusal to
accept the job offered and no further or additional temporary
total compensation is payable for that injury. The payment of
the periodic impairment compensation shall cease when the amount
the employee is eligible to receive under subdivision 3b is
reached, after which time the employee shall not receive
additional impairment compensation or any other compensation
under this chapter unless the employee has a greater permanent
partial disability than already compensated for.
Sec. 56. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3m. [RETURN TO WORK AFTER REFUSAL OF JOB OFFER.] If
the employee has refused the job offer under subdivision 3e and
is receiving periodic impairment compensation and returns to
work at another job, the employee shall receive the remaining
impairment compensation due, in a lump sum, 30 days after return
to work.
Sec. 57. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3n. [NO TEMPORARY PARTIAL COMPENSATION OR
REHABILITATION IF JOB OFFER REFUSED.] An employee who has been
offered a job under subdivision 3e and has refused that offer
and who subsequently returns to work shall not receive temporary
partial compensation pursuant to subdivision 2 if the job the
employee returns to provides a wage less than the wage at the
time of the injury. No rehabilitation shall be provided to this
employee.
Sec. 58. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3o. [INABILITY TO RETURN TO WORK.] (a) An employee
who is permanently totally disabled pursuant to subdivision 5
shall receive impairment compensation as determined pursuant to
subdivision 3b. This compensation is payable in addition to
permanent total compensation pursuant to subdivision 4 and is
payable concurrently. In this case the impairment compensation
shall be paid in the same intervals and amount as the permanent
total compensation is paid, and the impairment compensation
shall cease when the amount due under subdivision 3b is
reached. If this employee returns to work at any job during the
period the impairment compensation is being paid, the remaining
impairment compensation due shall be paid in a lump sum 30 days
after the employee has returned to work and no further temporary
total compensation shall be paid.
(b) If an employee is receiving periodic economic recovery
compensation and is determined to be permanently totally
disabled no offset shall be taken against future permanent total
compensation for the compensation paid. No further economic
recovery compensation is payable even if the amount due the
employee pursuant to subdivision 3a has not yet been reached.
(c) An employee who has received periodic economic recovery
compensation and who meets the criteria under clause (b) of this
subdivision shall receive impairment compensation pursuant to
clause (a) of this subdivision even if the employee has
previously received economic recovery compensation for that
disability.
(d) Rehabilitation consultation pursuant to section 176.102
shall be provided to an employee who is permanently totally
disabled.
Sec. 59. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3p. [NO JOB OFFER.] Where the employee has a
permanent partial disability and has reached maximum medical
improvement or upon completion of an approved retraining
program, whichever is later, that employee shall receive
economic recovery compensation pursuant to subdivision 3a if no
job offer meeting the criteria of the job in subdivision 3e is
made within 90 days after reaching maximum medical improvement
or 90 days after the end of an approved retraining plan,
whichever is later.
Temporary total compensation shall cease upon commencement
of the payment of economic recovery compensation. Temporary
total compensation shall not be paid concurrently with economic
recovery compensation.
Sec. 60. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3q. [METHOD OF PAYMENT OF ECONOMIC RECOVERY
COMPENSATION.] (a) Economic recovery compensation is payable at
the same intervals and in the same amount as temporary total
compensation was paid. If the employee returns to work and the
economic recovery compensation is still being paid, the
remaining economic recovery compensation due shall be paid in a
lump sum 30 days after the employee has returned to work.
(b) Periodic economic recovery compensation paid to the
employee shall not be adjusted pursuant to section 176.645.
Sec. 61. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3r. [PAYMENT OF COMPENSATION AT DEATH.] If an
employee receiving economic recovery compensation or impairment
compensation in periodic amounts dies during the period from
causes unrelated to the injury, the compensation shall be paid
in the following manner:
(a) If the deceased employee leaves a dependent surviving
spouse and no dependent children, as defined by section 176.111,
subdivision 1, the spouse shall receive the periodic economic
recovery or impairment compensation that the deceased was
receiving before the death. This compensation shall be paid for
a period of up to ten years after the date of death at which
time payments and future entitlement to it ceases.
(b) If the deceased employee leaves a dependent spouse and
dependent children, as defined in section 176.111, subdivision
1, the periodic economic recovery or impairment compensation
shall continue to be paid to the surviving spouse for up to ten
years after the last child is no longer dependent after which
time payments and future entitlement to the compensation ceases.
(c) Payment of compensation under this subdivision shall
cease prior to the end of the ten-year periods in this
subdivision if the amount to which the employee is entitled to
receive under subdivision 3, 3a, or 3b, is reached prior to the
end of the ten-year period. If the deceased employee is not
survived by dependent children or a dependent spouse as defined
in section 176.111, no further economic recovery compensation or
impairment compensation is payable to any person under this
subdivision.
(d) If the death results from the injury, the payment of
economic recovery compensation or impairment compensation shall
cease upon the death and death benefits are payable pursuant to
section 176.111.
Sec. 62. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3s. [ADDITIONAL ECONOMIC RECOVERY COMPENSATION OR
IMPAIRMENT COMPENSATION.] No additional economic recovery
compensation or impairment compensation is payable to an
employee who has received that compensation to which the
employee is entitled pursuant to subdivision 3a or 3b unless the
employee has a greater permanent partial disability than already
compensated.
Sec. 63. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3t. [MINIMUM ECONOMIC RECOVERY COMPENSATION.] (a)
Economic recovery compensation pursuant to this section shall be
at least 120 percent of the impairment compensation the employee
would receive if that compensation were payable to the
employee. The monitoring period shall be at least 120 percent
of the weeks during which impairment compensation would be
payable if paid weekly.
(b) An employee who has suffered a personal injury for
which temporary total compensation is payable but which produces
no permanent partial disability shall receive 26 weeks of
economic recovery compensation if no job is offered within the
time specified in and meeting the criteria of subdivision 3e.
Sec. 64. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3u. [MEDICAL BENEFITS.] This section does not in any
way limit the medical benefits to which an injured employee is
otherwise entitled pursuant to this chapter.
Sec. 65. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 3v. [ADMINISTRATIVE CONFERENCE.] The provisions of
section 176.242 apply if there exists a dispute regarding
maximum medical improvement or whether the job offered meets the
criteria under subdivision 3e or 3f.
Sec. 66. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 4a. [PREEXISTING CONDITION OR DISABILITY;
APPORTIONMENT.] (a) If a personal injury results in a disability
which is attributable in part to a preexisting disability that
arises from a congenital condition or is the result of a
traumatic injury or incident, whether or not compensable under
this chapter, the compensation payable for the permanent partial
disability pursuant to this section shall be reduced by the
proportion of the disability which is attributable only to the
preexisting disability. An apportionment of a permanent partial
disability under this subdivision shall be made only if the
preexisting disability is clearly evidenced in a medical report
or record made prior to the current personal injury. Evidence
of a copy of the medical report or record upon which
apportionment is based shall be made available to the employee
by the employer at the time compensation for the permanent
partial disability is begun.
(b) The compensable portion of the permanent partial
disability under this section shall be paid at the rate at which
the entire disability would be compensated but for the
apportionment.
Sec. 67. Minnesota Statutes 1982, section 176.101,
subdivision 6, is amended to read:
Subd. 6. [MINORS.] If any employee entitled to the
benefits of this chapter is a minor or is an apprentice of any
age and sustains a personal injury arising out of and in the
course of employment resulting in permanent total or a
compensable permanent partial disability, for the purpose of
computing the compensation to which he the employee is entitled
for said the injury the compensation rate for temporary total,
temporary partial, retraining, permanent partial or a permanent
total disability or economic recovery compensation shall be the
larger of either the statewide average weekly wage or the
employees weekly wage, but in no case shall the compensation
exceed the maximum weekly compensation rate payable under this
chapter.
Sec. 68. Minnesota Statutes 1982, section 176.101, is
amended by adding a subdivision to read:
Subd. 8. [RETIREMENT PRESUMPTION.] For injuries occurring
after the effective date of this subdivision an employee who
receives social security old age and survivors insurance
retirement benefits is presumed retired from the labor market.
This presumption is rebuttable by a preponderance of the
evidence.
Sec. 69. Minnesota Statutes 1982, section 176.102,
subdivision 1, is amended to read:
Subdivision 1. [SCOPE.] Vocational Rehabilitation shall
train an is intended to restore the injured employee, through
physical and vocational rehabilitation, so he the employee may
be returned return to a job related to his the employee's former
employment or to a job in another work area which produces an
economic status as close as possible to that he the employee
would have enjoyed without disability. Rehabilitation to a job
with a higher economic status than would have occurred without
disability is permitted if it can be demonstrated that this
rehabilitation is necessary to increase the likelihood of
reemployment. Economic status is to be measured not only by
opportunity for immediate income but also by opportunity for
future income.
Sec. 70. Minnesota Statutes 1982, section 176.102,
subdivision 2, is amended to read:
Subd. 2. [ADMINISTRATORS.] The commissioner of labor and
industry shall hire a director of rehabilitation services in the
classified service. The commissioner of labor and industry is
responsible for supervising shall monitor and supervise
rehabilitation services, including, but not limited to, making
determinations regarding the selection and delivery of
rehabilitation services and the criteria used to approve
qualified rehabilitation consultants and rehabilitation
vendors. The commissioner may also make determinations
regarding fees for rehabilitation services, the fitness of
qualified rehabilitation consultants and vendors to continue to
be approved under this section and has authority to discipline,
by fine or otherwise, the consultants or vendors who act in
violation of this chapter or rules adopted pursuant to this
chapter. The commissioner of labor and industry may hire
qualified personnel to assist in his duties under this section
and may delegate his duties and performance.
Sec. 71. Minnesota Statutes 1982, section 176.102,
subdivision 3, is amended to read:
Subd. 3. [REVIEW PANEL.] There is created a rehabilitation
review panel composed of the commissioner of labor and industry
or his a designee, who shall serve as an ex officio member and
two members each from labor, employers, insurers, vocational
rehabilitation, and medicine and, one member representing
chiropractors, and four members representing labor. The members
shall be appointed by the governor commissioner and shall serve
four year four-year terms which may be renewed. Compensation
for members shall be governed by section 15.0575. The panel
shall select a chairman. The panel shall (a) review and make a
determination with respect to (a) appeals regarding eligibility
for rehabilitation services, rehabilitation plans and
rehabilitation benefits under subdivisions 9 and 11; (b) hold
appeals on any other rehabilitation issue the commissioner
determines under this section; and (c) appeals regarding fee
disputes, penalties, discipline, certification approval or
revocation of certification approval hearings; (c) of
registration of qualified rehabilitation consultants and
approved vendors. The panel shall continuously study
rehabilitation; services and delivery and (d) develop and
recommend rehabilitation rules as necessary to the commissioner
of labor and industry. A majority vote of those attending a
panel hearing under subdivision 6 shall constitute the decision
of the board.
Sec. 72. Minnesota Statutes 1982, section 176.102, is
amended by adding a subdivision to read:
Subd. 3a. [REVIEW PANEL APPEALS.] Appeals to the review
panel shall be heard before a panel of five members designated
by the review panel. Each five-member panel shall consist of
two labor members, two employer or insurer members, and one
member representing medicine, chiropractic, or rehabilitation.
The determination of the five-member panel shall be by a
majority vote and shall represent the determination of the
entire review panel and is not subject to review by the panel as
a whole. When conducting a review of the commissioner's
determination regarding any rehabilitation issue or plan the
panel shall give the parties notice that the appeal will be
heard. This notice shall be given at least ten working days
prior to the hearing. The notice shall state that parties may
be represented by counsel at the hearing. In conducting its
review the panel shall permit an interested party to present
relevant, competent, oral or written evidence and to
cross-examine opposing evidence. Evidence presented is not
limited to the evidence previously submitted to the
commissioner. A record of the proceeding shall be made by the
panel. Upon determination of the issue presented, the panel
shall issue to the interested parties a written decision and
order. The decision need not contain a recitation of the
evidence presented at the hearing, but shall be limited to the
panel's basis for the decision.
Sec. 73. Minnesota Statutes 1982, section 176.102,
subdivision 4, is amended to read:
Subd. 4. [REHABILITATION PLAN; DEVELOPMENT.] Within 30
days of the time an employer or his insurer has medical
information that an employee is unable due to a personal injury
or occupational disease to return to his preinjury occupation
the employer shall provide rehabilitation consultation for the
employee. The employee, however, has the final decision on
which rehabilitation agency is to be utilized pursuant to the
provisions of this section. The consultation shall be done by
any person or public or private institution approved by the
commissioner of labor and industry. If the consultant
determines rehabilitation would significantly reduce or
eliminate the decrease in employability, the employer or insurer
in conjunction with the rehabilitation consultant shall submit a
specific plan of rehabilitation to the commissioner. If the
employer does not provide rehabilitation consultation, when
required by this section, within the time specified by this
subdivision, the commissioner of labor and industry shall notify
the employer and insurer that should they fail to provide
rehabilitation consultation within 15 days from the receipt of
the commissioner's notice, the division of vocational
rehabilitation shall be authorized to provide the rehabilitation
consultation for the employee. If the employee refuses to
submit to any reasonable examinations and evaluative procedures
to determine the need for and the details of a plan of
rehabilitation, the amount of compensation may be reduced or the
right to compensation may be suspended by an order of the
division or workers' compensation court of appeals in a matter
before it. In developing a plan, consideration shall be given
to the employee's age, education, previous work history,
interests and skills. (a) An employer or insurer shall provide
rehabilitation consultation by a qualified rehabilitation
consultant or by another person permitted by rule to provide
consultation to an injured employee within five days after the
employee has 60 days of lost work time due to the personal
injury, except as otherwise provided in this subdivision. Where
an employee has incurred an injury to the back, the consultation
shall be made within five days after the employee has 30 days of
lost work time due to the injury. The lost work time in either
case may be intermittent lost work time. If an employer or
insurer has medical information at any time prior to the time
specified in this subdivision that the employee will be unable
to return to the job the employee held at the time of the injury
rehabilitation consultation shall be provided immediately after
receipt of this information.
For purposes of this section "lost work time" means only
those days during which the employee would actually be working
but for the injury. In the case of the construction industry,
mining industry, or other industry where the hours and days of
work are affected by seasonal conditions, "lost work time" shall
be computed by using the normal schedule worked when employees
are working full time.
If the employee objects to the employer's selection of a
qualified rehabilitation consultant, the employee shall notify
the employer and the commissioner in writing of the objection.
Upon receipt of the notice of objection, the commissioner
may schedule an administrative conference for the purpose of
determining which qualified rehabilitation consultant may be
mutually acceptable. The employee has the final decision on
which qualified rehabilitation consultant is to be utilized.
The employee and employer shall enter into a program if one
is prescribed in a rehabilitation plan. A copy of the plan,
including a target date for return to work, shall be submitted
to the commissioner.
(b) If the employer does not provide rehabilitation
consultation as required by this section, the commissioner shall
notify the employer that if the employer fails to appoint a
qualified rehabilitation consultant or other persons as
permitted by clause (a) within 15 days to conduct a
rehabilitation consultation, the commissioner shall appoint a
qualified rehabilitation consultant to provide the consultation
at the expense of the employer unless the commissioner
determines the consultation is not required.
(c) In developing a rehabilitation plan consideration shall
be given to the employee's qualifications, including but not
limited to age, education, previous work history, interest,
transferable skills, and present and future labor market
conditions.
(d) The commissioner may waive rehabilitation consultation
under this section if the commissioner is satisfied that the
employee will return to work in the near future or that
rehabilitation consultation will not be useful in returning an
employee to work.
Sec. 74. Minnesota Statutes 1982, section 176.102,
subdivision 5, is amended to read:
Subd. 5. [ON-THE-JOB TRAINING.] On-the-job training is to
be given consideration in developing a rehabilitation plan
especially where it would produce an economic status similar to
that enjoyed prior to disability. When a rehabilitation plan
includes on the job training, the employee shall receive
compensation while employed in an amount equal to the after tax
wage the employee received at the time of the personal injury.
This compensation shall be paid in whole or in part by the
insurer liable for compensation for the employee's personal
injury. The amount of compensation to be paid by this insurer
shall be determined in the rehabilitation plan prepared pursuant
to this section. Any difference between the amount of
compensation the insurer is paying and the after tax wage the
employee received at the time of the personal injury shall be
paid by the on the job employer, but in no case shall this
employer's amount exceed the prevailing wage for the job. After
tax wage shall be determined by subtracting federal and state
income tax from the employee's gross wage.
A rehabilitation plan which includes on the job training
shall attempt to create an incentive for an employer to hire the
employee for on the job training. This incentive may be in the
form of reducing the on the job training employer's wages paid
to the employee to a level which is less than the prevailing
wage for the job, provided that the total compensation from the
insurer, required by this section, and the wages paid by the on
the job training employer is not less than the after tax wage
received by the employee at the time of the personal injury.
The compensation from the insurer and the on the job training
employer paid pursuant to this subdivision is in lieu of
temporary total disability payments and the additional
compensation provided in subdivision 11.
Sec. 75. Minnesota Statutes 1982, section 176.102,
subdivision 6, is amended to read:
Subd. 6. [PLAN, ELIGIBILITY FOR REHABILITATION, APPROVAL
AND APPEAL.] The commissioner of labor and industry shall
determine eligibility for rehabilitation services and shall
review, approve, modify or reject rehabilitation plans developed
under subdivision 4. The commissioner shall also make
determinations regarding rehabilitation issues not necessarily
part of a plan including, but not limited to, determinations
regarding whether an employee is eligible for further
rehabilitation and the benefits under subdivisions 9 and 11 to
which an employee is entitled. Any persons aggrieved by A
decision of the commissioner may appeal be appealed to the
rehabilitation review panel within 30 days of the commissioner's
decision. The decision of the panel may be appealed to the
workers' compensation court of appeals in the same manner as
other matters appealed to the court. The panel may approve or
reject the decision of the commissioner. If it rejects the
commissioner's decision it may formulate its own rehabilitation
plan.
Sec. 76. Minnesota Statutes 1982, section 176.102, is
amended by adding a subdivision to read:
Subd. 6a. [ELIGIBILITY DETERMINATION.] The commissioner
has the sole authority under this chapter to determine
eligibility for rehabilitation services under this section and
to review, approve, modify, or reject rehabilitation plans and
make other rehabilitation determinations pursuant to this
chapter. These determinations shall not be made by a
compensation judge but may be appealed to the rehabilitation
review panel and workers' compensation court of appeals as
provided by subdivision 6.
Sec. 77. Minnesota Statutes 1982, section 176.102,
subdivision 7, is amended to read:
Subd. 7. [PLAN IMPLEMENTATION; REPORTS.] Upon request by
the commissioner, insurer or, employer or employee, medical and
rehabilitation reports shall be made by the provider of the
medical and rehabilitation service to the commissioner of labor
and industry, insurer and, employer or employee of an
employee's progress under a plan.
Sec. 78. Minnesota Statutes 1982, section 176.102,
subdivision 8, is amended to read:
Subd. 8. [PLAN MODIFICATION.] Upon request of to the
commissioner by the employer, the insurer, or employee to the
commissioner, or upon the commissioner's own request, the plan
may be suspended, terminated or altered upon a showing of good
cause therefor, including:
(a) a physical impairment that does not allow the employee
to pursue the vocation being trained for rehabilitation plan;
(b) the employee's performance level indicates he cannot
complete the plan will not be successfully completed; or
(c) an employee does not cooperate with a plan.;
(d) that the plan or its administration is substantially
inadequate to achieve the rehabilitation plan objectives.
An employee may request a change in a rehabilitation plan
once because he the employee feels he is not suited ill-suited
for the type of work for which training rehabilitation is being
provided if the request is made within 90 days of the start of
the plan if the rehabilitation plan includes retraining, this
request must be made within 90 days of the beginning of the
retraining program. Any decision of the commissioner regarding
a change in a plan may be appealed to the rehabilitation review
panel within 15 30 days of the decision.
Sec. 79. Minnesota Statutes 1982, section 176.102,
subdivision 9, is amended to read:
Subd. 9. [PLAN, COSTS.] An employer is liable for the
following rehabilitation expenses under this section:
(a) Cost of vocational rehabilitation diagnosis evaluation
and preparation of a plan;
(b) Cost of all rehabilitation services and supplies
necessary for implementation of the plan;
(c) Reasonable cost of tuition, books and travel; and, in
addition, reasonable costs of board and, lodging and custodial
daycare when rehabilitation requires residence away from the
employee's customary residence; and
(d) Reasonable costs of travel and custodial daycare during
the job interview process;
(e) Reasonable cost for moving expenses of the employee and
family if a job is found in a geographic area beyond reasonable
commuting distance after a diligent search within the present
community. Relocation shall not be paid more than once during
any rehabilitation program, and relocation shall not be required
if the new job is located within the same standard metropolitan
statistical area as the employee's job at the time of injury. An
employee shall not be required to relocate and a refusal to
relocate shall not result in a suspension or termination of
compensation under this chapter; and
(d) (f) Any other expense agreed to be paid.
Sec. 80. Minnesota Statutes 1982, section 176.102,
subdivision 10, is amended to read:
Subd. 10. [REHABILITATION; CONSULTANTS.] The commissioner
shall approve rehabilitation consultants who may propose and
implement plans if they satisfy rules promulgated adopted by the
commissioner for rehabilitation consultants. A consultant may
be an individual or public or private entity, but may not be a
vendor or the agent of a vendor of rehabilitation services.
Sec. 81. Minnesota Statutes 1982, section 176.102,
subdivision 11, is amended to read:
Subd. 11. [COMPENSATION DURING REHABILITATION RETRAINING.]
The insurer or employer shall pay up Retraining is limited to
156 weeks of compensation during rehabilitation under a plan in
an amount equal to 125 percent of the employee's rate for
temporary total disability. This payment is in lieu of payment
for temporary total, temporary partial, or permanent total
disability to which the employee might otherwise be entitled for
this period under this chapter, but shall be considered to be
the equivalent of temporary total disability for the purposes of
section 176.132. If on the job training is part of the
rehabilitation program, the weeks during which the insurer or
employer pays compensation pursuant to subdivision 5 shall be
subtracted from the 156 weeks of retraining compensation which
has been paid, if any, pursuant to this subdivision. This
subdivision shall not apply to retraining benefits for which
liability has been established prior to July 1, 1979. An
employee who has been approved for retraining may petition the
commissioner for additional compensation not to exceed 25
percent of the compensation otherwise payable. If the
commissioner determines that this additional compensation is
warranted due to unusual or unique circumstances of the
employee's retraining plan, the commissioner may award
additional compensation in an amount the commissioner determines
is appropriate, not to exceed the employee's request. This
additional compensation shall cease at any time the commissioner
determines the special circumstances are no longer present.
Sec. 82. Minnesota Statutes 1982, section 176.102, is
amended by adding a subdivision to read:
Subd. 11a. [APPLICABILITY OF SECTION.] This section is
applicable to all employees injured prior to or on and after
October 1, 1979, except for those provisions which affect an
employee's monetary benefits.
Sec. 83. Minnesota Statutes 1982, section 176.102, is
amended by adding a subdivision to read:
Subd. 13. [DISCONTINUANCE.] All benefits payable under
chapter 176 may, after a determination and order by the
commissioner, be discontinued or forfeited for any time during
which the employee refuses to submit to any reasonable
examinations and evaluative procedures ordered by the
commissioner to determine the need for and details of a plan of
rehabilitation, or refuses to participate in rehabilitation
evaluation as required by this section or does not make a good
faith effort to participate in a rehabilitation plan. A
discontinuance under this section is governed by section 140.
Sec. 84. [176.103] [MEDICAL HEALTH CARE REVIEW.]
Subdivision 1. [PURPOSE.] It is the purpose of this
section to provide for review of clinical health care providers
who render services to injured employees. This review shall be
achieved by establishing a quality control system within the
department of labor and industry.
The commissioner shall hire a medical consultant to assist
in the administration of this section.
The medical consultant shall be a doctor of medicine
licensed under the laws of Minnesota.
The medical consultant shall perform all duties assigned by
the commissioner relating to the supervision of the total
continuum of care of injured employees and shall also advise the
department on matters on which the commissioner requests the
consultant's advice or if the consultant deems it appropriate.
Subd. 2. [SCOPE.] The commissioner shall monitor the
medical and surgical treatment provided to injured employees,
the services of other health care providers and shall also
monitor hospital utilization as it relates to the treatment of
injured employees. This monitoring shall include determinations
concerning the appropriateness of the service, whether the
treatment is necessary and effective, the proper cost of
services, the quality of the treatment, the right of providers
to receive payment under this chapter for services rendered or
the right to receive payment under this chapter for future
services. The commissioner may penalize, disqualify, or suspend
a provider from receiving payment for services rendered under
this chapter, if the commissioner determines that the provider
has violated any part of this chapter or rule adopted under this
chapter. The commissioner's authority under this section also
includes the authority to make determinations regarding any
other activity involving the questions of utilization of medical
services, and any other determination the commissioner deems
necessary for the proper administration of this section.
The commissioner has the sole authority to make
determinations under this section with a right of appeal to the
medical services review board as provided in subdivision 3 and
the workers' compensation court of appeals. A compensation
judge has no jurisdiction in making determinations under this
section.
Subd. 3. [MEDICAL SERVICES REVIEW BOARD; SELECTION;
POWERS.] (a) There is created a medical services review board
composed of the commissioner or the commissioner's designee as
an ex officio member, two persons representing chiropractic, one
person representing hospital administrators, and six medical
practitioners representing different specialties which the
commissioner determines are the most frequently utilized by
injured employees. The board shall also have one person
representing employees, one person representing employers or
insurers, and one person representing the general public. The
members shall be appointed by the commissioner and shall be
governed by section 15.0575. Terms of the board's members may
be renewed. The board shall appoint from among its clinical
members a clinical advisory subcommittee on clinical quality and
a clinical advisory subcommittee on clinical cost containment.
Each subcommittee shall consist of at least three members one of
whom shall be a member who is not a chiropractor or licensed
physician.
The clinical quality subcommittee shall review clinical
results for adequacy and recommend to the commissioner scales
for disabilities and apportionment.
The clinical cost containment subcommittee shall review and
recommend to the commissioner rates for individual clinical
procedures and aggregate costs. The subcommittees shall make
regular reports to the board and the commissioner which shall
evaluate the reports for the purpose of determining whether or
not a particular health care provider continues to qualify for
payment under chapter 176 or is subject to any other sanctions
or penalties authorized under this section and to determine
whether an employee has been off work longer than necessary.
In evaluating the clinical consequences of the services
provided to an employee by a clinical health care provider, the
board shall consider the following factors in the priority
listed:
(1) the clinical effectiveness of the treatment;
(2) the clinical cost of the treatment; and
(3) the length of time of treatment.
In its consideration of these factors, the board shall
utilize the information and recommendations developed by the
subcommittees. In addition, the board shall utilize any other
data developed by the subcommittees pursuant to the duties
assigned to the subcommittees under this section.
After making a determination, the board shall submit its
recommendation in writing to the commissioner. The board shall
advise the commissioner on the adoption of rules regarding all
aspects of medical care and services provided to injured
employees.
(b) The board shall appoint three of its members to hear
appeals from decisions of the commissioner regarding quality
control and supervision of medical care; any other disputes
regarding medical, surgical, and hospital care; decisions
regarding the eligibility of medical providers to receive
payments; or any other determinations of the commissioner
pursuant to subdivision 2. The three-member panel shall be
composed of one member who does not represent a health care
specialty, one member who represents the same specialty as the
specialty at issue or, if the same specialty is not available,
one member whose specialty is as close as possible considering
the board's composition, and one member representing a different
specialty. The three-member panel shall conduct a hearing in
the same manner, giving the same notice and following other
procedures required of the rehabilitation review panel in
section 176.102, subdivision 3a. A majority vote of the
three-member panel constitutes the decision of the full board.
This decision may be appealed to the workers' compensation court
of appeals.
(c) In any situation where a conflict of interest prevents
the appointment of a full three-member panel or in any other
situation where the commissioner deems it necessary to resolve a
conflict of interest, the commissioner may appoint a temporary
substitute board member to serve until the situation creating
the conflict of interest has been resolved.
Sec. 85. [176.104] [REHABILITATION PRIOR TO DETERMINATION
OF LIABILITY.]
Subdivision 1. [DISPUTE.] If there exists a dispute
regarding whether an injury arose out of and in the course and
scope of employment and an employee has been disabled for the
requisite time under section 176.102, subdivision 4, prior to
determination of liability, the employee shall be referred by
the commissioner to the division of vocational rehabilitation
which shall provide rehabilitation consultation. The services
provided by the division of vocational rehabilitation and the
scope and term of the rehabilitation are governed by section
176.102 and rules adopted pursuant to that section.
Rehabilitation costs and services under this subdivision shall
be approved, rejected, or modified by the commissioner.
Subd. 2. [LIABILITY FOR PAST REHABILITATION.] If liability
is determined after the employee has commenced rehabilitation
under this section the liable party is responsible for the cost
of rehabilitation provided and approved by the commissioner.
Future rehabilitation after liability is established is governed
by section 176.102.
Sec. 86. Minnesota Statutes 1982, section 176.105, is
amended by adding a subdivision to read:
Subd. 4. [LEGISLATIVE INTENT; RULES; LOSS OF MORE THAN ONE
BODY PART.] (a) For the purpose of establishing a disability
schedule pursuant to clause (b) of this subdivision, the
legislature declares its intent that the commissioner establish
a disability schedule which, assuming the same number and
distribution of severity of injuries, the aggregate total of
impairment compensation and economic recovery compensation
benefits under section 176.101, subdivisions 3a to 3u be
approximately equal to the total aggregate amount payable for
permanent partial disabilities under section 176.101,
subdivision 3, provided, however, that awards for specific
injuries under the proposed schedule need not be the same as
they were for the same injuries under the schedule pursuant to
section 176.101, subdivision 3. The schedule shall be
determined by sound actuarial evaluation and shall be based on
the benefit level which exists on January 1, 1983.
(b) The commissioner shall by rulemaking adopt procedures
setting forth rules for the evaluation and rating of functional
disability and the schedule for permanent partial disability and
to determine the percentage of loss of function of a part of the
body based on the body as a whole, including internal organs,
described in section 176.101, subdivision 3, and any other body
part not listed in section 176.101, subdivision 3, which the
commissioner deems appropriate.
Temporary rules shall be adopted for this purpose not later
than January 1, 1984. Prior to the adoption of these rules, at
least one public hearing shall be held by the commissioner, in
addition to the requirements of sections 14.29 to 14.36.
Notwithstanding sections 14.29 to 14.36, the temporary rules
adopted under this subdivision shall be effective until
superseded by permanent rules. The rules shall promote
objectivity and consistency in the evaluation of permanent
functional impairment due to personal injury and in the
assignment of a numerical rating to the functional impairment.
Prior to adoption of temporary rules the commissioner shall
conduct an analysis of the current permanent partial disability
schedule for the purpose of determining the number and
distribution of permanent partial disabilities and the average
compensation for various permanent partial disabilities. The
commissioner shall consider setting the compensation under the
proposed schedule for the most serious conditions higher in
comparison to the current schedule and shall consider decreasing
awards for minor conditions in comparison to the current
schedule.
The commissioner may consider, among other factors, and
shall not be limited to the following factors in developing
rules for the evaluation and rating of functional disability and
the schedule for permanent partial disability benefits:
(1) the workability and simplicity of the procedures with
respect to the evaluation of functional disability;
(2) the consistency of the procedures with accepted medical
standards;
(3) rules, guidelines, and schedules that exist in other
states that are related to the evaluation of permanent partial
disability or to a schedule of benefits for functional
disability provided that the commissioner is not bound by the
degree of disability in these sources but shall adjust the
relative degree of disability to conform to the expressed intent
of clause (a);
(4) rules, guidelines, and schedules that have been
developed by associations of health care providers or
organizations provided that the commissioner is not bound by the
degree of disability in these sources but shall adjust the
relative degree of disability to conform to the expressed intent
of clause (a);
(5) the effect the rules may have on reducing litigation;
(6) the treatment of preexisting disabilities with respect
to the evaluation of permanent functional disability provided
that any preexisting disabilities must be objectively determined
by medical evidence; and
(7) symptomatology and loss of function and use of the
injured member.
The factors in paragraphs (1) to (7) shall not be used in
any individual or specific workers' compensation claim under
this chapter but shall be used only in the adoption of rules
pursuant to this section.
Nothing listed in paragraphs (1) to (7) shall be used to
dispute or challenge a disability rating given to a part of the
body so long as the whole schedule conforms with the expressed
intent of clause (a).
(c) If an employee suffers a permanent functional
disability of more than one body part due to a personal injury
incurred in a single occurrence, the percent of the whole body
which is permanently partially disabled shall be determined by
the following formula so as to ensure that the percentage for
all functional disability combined does not exceed the total for
the whole body:
A + B (1 - A)
where: A is the greater percentage whole body loss of the
first body part; and B is the lesser percentage whole body loss
otherwise payable for the second body part.
For permanent partial disabilities to three body parts due
to a single occurrence or as the result of an occupational
disease, the above formula shall be applied, providing that A
equals the result obtained from application of the formula to
the first two body parts and B equals the percentage for the
third body part. For permanent partial disability to four or
more body parts incurred as described above, A equals the result
obtained from the prior application of the formula, and B equals
the percentage for the fourth body part or more in arithmetic
progressions.
Sec. 87. Minnesota Statutes 1982, section 176.111,
subdivision 6, is amended to read:
Subd. 6. [SPOUSE, NO DEPENDENT CHILD.] (a) If the deceased
employee leaves a dependent surviving spouse and no dependent
child, there shall be paid to the spouse, at the option of the
spouse, either:
(1) A lump sum settlement equal to ten full years of
compensation at 50 percent of the daily wage at the time of the
injury of the deceased, computed without regard to section
176.645; or
(2) weekly workers' compensation benefits at 50 percent of
the daily wage at the time of the injury for a period of ten
years, including adjustments as provided in section 176.645.
(b) A dependent surviving spouse who has not accepted a
lump sum settlement pursuant to clause (a)(1) and who remarries
shall receive the lesser of either:
(1) A lump sum settlement equal to two full years of
compensation at 50 percent of the daily wage at the time of the
injury of the deceased, computed without regard to section
176.645; or
(2) The remaining weekly workers' compensation benefits
pursuant to clause (a)(2) at 50 percent of the daily wage,
including adjustments as provided in section 176.645.
Sec. 88. Minnesota Statutes 1982, section 176.111,
subdivision 7, is amended to read:
Subd. 7. [SPOUSE, ONE DEPENDENT CHILD.] (a) If the
deceased employee leaves a surviving spouse and one dependent
child, there shall be paid to the surviving spouse for the
benefit of the spouse and child 60 percent of the daily wage at
the time of the injury of the deceased until the child is no
longer a dependent as defined in subdivision 1. At that time
there shall be paid to the dependent surviving spouse, at the
option of the spouse, either:
(1) A lump sum settlement equal to ten full years of
compensation at a rate which is 16 2/3 percent less than the
last weekly workers' compensation benefit payment, as defined in
subdivision 8a, while the surviving child was a dependent,
computed without regard to section 176.645; or
(2) weekly benefits at a rate which is 16-2/3 percent less
than the last weekly workers' compensation benefit payment, as
defined in subdivision 8a, while the surviving child was a
dependent, for a period of ten years, including adjustments as
provided in section 176.645.
(b) A surviving spouse who remarries shall receive:
(1) Compensation, for the benefit of the dependent child,
according to the allocation provided in subdivision 10, until
the child is no longer a dependent as defined in subdivision 1;
and
(2) A lump sum settlement, for the benefit of the surviving
spouse, equal to two full years of weekly benefits in an amount
which equals the difference between the benefit otherwise
payable under clause (a) and the amount payable to the dependent
child pursuant to clause (b)(1).
Sec. 89. Minnesota Statutes 1982, section 176.111,
subdivision 8, is amended to read:
Subd. 8. [SPOUSE, TWO DEPENDENT CHILDREN.] (a) If the
deceased employee leaves a surviving spouse and two dependent
children, there shall be paid to the surviving spouse for the
benefit of the spouse and children 66-2/3 percent of the daily
wage at the time of the injury of the deceased until the
youngest last dependent child is no longer dependent. At that
time the dependent surviving spouse shall be paid, at the option
of the spouse, either:
(1) A lump sum settlement equal to ten full years of
compensation at a rate which is 25 percent less than the last
weekly workers' compensation benefit payment, as defined in
subdivision 8a, while the last surviving child was a dependent,
computed without regard to section 176.645; or
(2) weekly benefits at a rate which is 25 percent less than
the last weekly workers' compensation benefit payment, as
defined in subdivision 8a, while the surviving child was a
dependent, for a period of ten years, adjusted according to
section 176.645.
(b) A surviving spouse who remarries shall receive
compensation, for the benefit of the children, allocated
according to subdivision 10, until the youngest dependent child
is no longer dependent as defined in subdivision 1 and, for the
benefit of the surviving spouse, a lump sum settlement equal to
two full years of weekly benefits in an amount which equals the
difference between the benefit otherwise payable pursuant to
clause (a) and the amount payable to the dependent children
allocated according to subdivision 10, computed without regard
to section 176.645.
Sec. 90. Minnesota Statutes 1982, section 176.111, is
amended by adding a subdivision to read:
Subd. 9a. [REMARRIAGE OF SPOUSE.] A surviving spouse who
remarries and is receiving benefits under subdivisions 6, 7, or
8 shall continue to be eligible to receive weekly benefits for
the remaining period that the spouse is entitled to receive
benefits pursuant to this section.
Sec. 91. Minnesota Statutes 1982, section 176.111,
subdivision 18, is amended to read:
Subd. 18. [BURIAL EXPENSE.] In all cases where death
results to an employee from a personal injury arising out of and
in the course of employment, the employer shall pay the expense
of burial, not exceeding in amount $1,000 $2,500. In case any
dispute arises as to the reasonable value of the services
rendered in connection with the burial, such its reasonable
value shall be determined and approved by the commissioner of
the department of labor and industry, a compensation judge, or
workers' compensation court of appeals, in cases upon appeal,
before payment, after such reasonable notice to interested
parties as is required by the commissioner of the department of
labor and industry. If the deceased leave no dependents, no
compensation is payable, except as provided by this chapter.
Sec. 92. Minnesota Statutes 1982, section 176.121, is
amended to read:
176.121 [COMMENCEMENT OF COMPENSATION.]
In cases of temporary total or temporary partial disability
no compensation shall be is allowed for the three calendar days
after the disability commenced, except as provided by section
176.135, nor in any case unless the employer has actual
knowledge of the injury or is notified thereof within the period
specified in section 176.141. If such the disability continues
for ten calendar days or longer, such the compensation shall be
is computed from the commencement of the disability. Disability
is deemed to commence on the first calendar day or fraction of a
calendar day that the employee is unable to work.
Sec. 93. [176.129] [CREATION OF THE SPECIAL COMPENSATION
FUND.]
Subdivision 1. [DEPOSIT OF FUNDS.] The special
compensation fund is created for the purposes provided for in
this chapter. The state treasurer is the custodian of the
special compensation fund. Sums paid to the commissioner
pursuant to this section shall be deposited with the state
treasurer for the benefit of the fund and used to pay the
benefits under this chapter. Any interest or profit accruing
from investment of these sums shall be credited to the special
compensation fund. Subject to the provisions of this section,
all the powers, duties, functions, obligations, and rights
vested in the special compensation fund immediately prior to the
effective date of this section are transferred to and vested in
the special compensation fund recreated by this section. All
rights and obligations of employers with regard to the special
compensation fund which existed immediately prior to the
effective date of this section continue, subject to the
provisions of this section.
Subd. 2. [PAYMENTS TO FUND, DEATH.] In every case of death
of an employee resulting from personal injury arising out of and
in the course of employment where there are no persons entitled
to monetary benefits of dependency compensation, the employer
shall pay to the commissioner the sum of $25,000 for the benefit
of the special compensation fund. In every case of death of an
employee resulting from personal injury arising out of and in
the course of employment where there are no persons entitled to
at least $25,000 in monetary benefits of dependency
compensation, the employer shall pay to the commissioner for the
benefit of the special compensation fund the difference between
the amounts actually paid for the dependency benefits and
$25,000; but in no event shall the employer pay the commissioner
less than $5,000.
Subd. 3. [PAYMENTS TO FUND, INJURY.] If an employee
suffers a personal injury resulting in permanent partial
disability, temporary total disability, temporary partial
disability, permanent total disability, or death and the
employee or the employee's dependents are entitled to
compensation under sections 176.101 or 176.111 the employer
shall pay to the commissioner a lump sum amount, without any
interest deduction, equal to 20 percent of the total
compensation payable. The rate under this subdivision shall
remain constant and applies to injuries occurring after June 1,
1971, and prior to January 1, 1984, for payments made on or
after January 1, 1984. This payment is to be credited to the
special compensation fund and shall be in addition to any
compensation payments made by the employer under this chapter.
Payment shall be made as soon as the amount is determined and
approved by the commissioner.
Subd. 4. [TIME OF INJURY.] Subdivision 3 applies to all
workers' compensation payments paid under sections 176.101,
176.102, 176.111, or 176.135, for an injury or death occurring
on or after June 1, 1971, but before January 1, 1984.
Payments made for personal injuries that occurred prior to
June 1, 1971, shall be assessed at the rate in effect on the
date of occurrence.
Subd. 5. [DETERMINATION OF AMOUNT PAYABLE.] (a) In
addition to assessments under subdivisions 2 and 3, an employer
shall, beginning in calendar year 1984, pay an assessment as
provided in this subdivision. The assessment base shall be
determined according to a method established by rule adopted by
the commissioner. In determining this method, the commissioner
shall consider, among other things, the frequency of indemnity
claims, equity, potential for retaliation by other states
against Minnesota insurers, administrative convenience, records
maintained by employer's insurers and self-insurers,
verification of underlying records, and degree of risk
refinement. The assessment base shall not be determined by paid
losses.
(b) Using the assessment base method established in clause
(a), the commissioner shall annually determine the amount of the
assessment base of each employer.
(c) The commissioner shall annually establish a uniform
percentage rate to be applied to the assessment base determined
pursuant to clause (b). In establishing this rate, the
commissioner shall consider, among other things, the likely
expenditures to be made by the special fund in the next calendar
year, the current fiscal status of the fund, future expenditure
trends, and the assessments estimated to be collected under
subdivisions 2 and 3. The assessment rate multiplied by the
assessment base of an employer is the assessment amount payable
under this subdivision. The total amount assessed against all
employers under this subdivision shall not exceed $25,000,000 in
calendar year 1984. The total amount which may annually be
assessed under this subdivision may be increased by up to ten
percent beginning on January 1, 1985, and each January 1
thereafter.
(d) An amount assessed pursuant to this subdivision is
payable to the commissioner within 45 days of mailing notice of
the amount due.
Subd. 6. [PAYMENTS OUT OF FUND.] The workers' compensation
division, a compensation judge, the workers' compensation court
of appeals, or district court in cases before them shall direct
the distribution of benefits provided by this chapter. These
benefits are payable in the same manner as other payments of
compensation.
Subd. 7. [REFUNDS.] In case deposit is or has been made
under subdivision 2 and dependency later is shown, or if deposit
is or has been made pursuant to subdivision 2 or 3 by mistake or
inadvertence, or under circumstances that justice requires a
refund, the state treasurer is authorized to refund the deposit
under order of the commissioner, a compensation judge, the
workers' compensation court of appeals, or a district court.
There is appropriated to the commissioner from the fund an
amount sufficient to make the refund and payment.
Subd. 8. [COMMISSIONER AS ADMINISTRATOR.] The commissioner
is the administrator of the special compensation fund. The
special fund shall be designated a party in an action regarding
any right, obligation, and liability of the special fund. The
state treasurer, as custodian, does not have standing in an
action determining any right, obligation, or liability of the
special fund. The attorney general shall represent the special
fund in all legal matters in which the special fund has an
interest.
Subd. 9. [POWERS OF FUND.] In addition to powers granted
to the special compensation fund by this chapter the fund may do
the following:
(a) sue and be sued in its own name;
(b) intervene in or commence an action under this chapter
or any other law, including, but not limited to, intervention or
action as a subrogee to the division's right in a third-party
action, any proceeding under this chapter in which liability of
the special compensation fund is an issue, or any proceeding
which may result in other liability of the fund or to protect
the legal right of the fund;
(c) enter into settlements including but not limited to
structured, annuity purchase agreements with appropriate parties
under this chapter;
(d) contract with another party to administer the special
compensation fund; and
(e) take any other action which an insurer is permitted by
law to take in operating within this chapter.
Subd. 10. [PENALTY.] Sums paid to the commissioner
pursuant to this section shall be in the manner prescribed by
the commissioner. The commissioner may impose a penalty of up
to 15 percent of the amount due under this section but not less
than $500 in the event payment is not made in the manner
prescribed.
Subd. 11. [ADMINISTRATIVE PROVISIONS.] The accounting,
investigation, and legal costs necessary for the administration
of the programs financed by the special compensation fund shall
be paid from the fund during each biennium commencing July 1,
1981. Staffing and expenditures related to the administration
of the special compensation fund shall be approved through the
regular budget and appropriations process.
Subd. 12. [REPORT OF COMMISSIONER.] The commissioner shall
report biennially to the governor and to the legislature as to
the financial status of the special compensation fund. The
report shall include a statement of the receipts and the
disbursements for the period covered.
Subd. 13. [EMPLOYER REPORTS.] All employers shall make
reports to the commissioner as required for the proper
administration of this section and section 176.131.
Sec. 94. Minnesota Statutes 1982, section 176.131,
subdivision 1, is amended to read:
Subdivision 1. If an employee incurs personal injury and
suffers disability that is substantially greater, because of a
preexisting physical impairment, than what would have resulted
from the personal injury alone, the employer shall pay all
compensation provided by this chapter, but he the employer shall
be reimbursed from the special compensation fund for all
compensation paid in excess of 52 weeks of monetary benefits and
$2,000 in medical expenses, subject to the following exceptions:
If the personal injury alone results in permanent partial
disability to a scheduled member under section 176.101 the
schedule adopted by the commissioner pursuant to section
176.105, the monetary and medical expense limitations shall not
apply and the employer shall be is liable for such the
compensation, medical expense, and retraining rehabilitation
attributable to the permanent partial disability, and he may be
reimbursed from the special compensation fund only for
compensation paid in excess of such the disability.
Sec. 95. Minnesota Statutes 1982, section 176.131,
subdivision 1a, is amended to read:
Subd. 1a. If an employee is employed in an on the job
retraining program pursuant to section 176.102 and the employee
incurs a personal injury that aggravates the personal injury for
which the employee has been certified to enter the on the job
retraining program, the on the job training employer shall pay
the medical expenses and compensation required by this chapter,
but and shall be reimbursed from the special compensation fund
for the compensation and medical expense that is attributable to
the aggravated injury. The employer, at the time of the
personal injury for which the employee has been certified for
retraining, is liable for the portion of the disability that is
attributable to that injury.
Sec. 96. Minnesota Statutes 1982, section 176.131,
subdivision 2, is amended to read:
Subd. 2. If the employee's personal injury shall result
results in disability or death, and if the injury, death, or
disability would not have occurred except for the preexisting
physical impairment registered with the special compensation
fund, the employer shall pay all compensation provided by this
chapter, but and shall be fully reimbursed from the special
compensation fund for such the compensation only where the
permanent physical impairment contributing to the second injury
is diabetes, hemophilia or seizures except that this full
reimbursement shall not be made for cardiac disease or a
condition registered pursuant to subdivision 8, clauses (t) or
(u) unless the commissioner by rule provides otherwise.
Sec. 97. Minnesota Statutes 1982, section 176.131,
subdivision 3, is amended to read:
Subd. 3. To entitle the employer to secure reimbursement
from the special compensation fund, the following provisions
must be complied with:
(a) Provisions of section 176.181, subdivisions 1 and 2.
(b) The employee with a preexisting physical impairment
must have been registered with the commissioner of labor and
industry prior to the employee's personal injury or within 180
days after notice of the employee's personal injury is received
by the employer. Registration subsequent to the injury shall be
based on a medical report or record made prior to the injury
indicating the preexisting physical impairment.
Sec. 98. Minnesota Statutes 1982, section 176.131,
subdivision 4, is amended to read:
Subd. 4. Any employer who hires or retains in his its
employment any person who has a physical impairment shall file a
formal registration for each such the employee with the
commissioner of the department of labor and industry in such on
a form as prescribed by the commissioner may require.
Sec. 99. Minnesota Statutes 1982, section 176.131,
subdivision 5, is amended to read:
Subd. 5. Registration under this section may be made by
the employee or any employer provided:
(a) registration shall be is accompanied by satisfactory
evidence of such the physical impairment;
(b) registration shall be is in effect as long as said the
impairment exists;
(c) upon request, a registered employee shall be furnished
by the commissioner of the department of labor and industry with
a registration card evidencing the fact of registration, and
such other facts as the commissioner of the department of labor
and industry deems advisable.
Sec. 100. Minnesota Statutes 1982, section 176.131,
subdivision 6, is amended to read:
Subd. 6. When the employer claims reimbursement from the
special compensation fund after paying compensation as
prescribed by this section, he the employer shall file with the
commissioner of the department of labor and industry written
notice of intention to claim reimbursement in accordance with
the rules and regulations of adopted by the commissioner of the
department of labor and industry.
Sec. 101. Minnesota Statutes 1982, section 176.131,
subdivision 7, is amended to read:
Subd. 7. Under subdivisions 1 and 2, an occupational
disease may be deemed to be the personal (second) injury.
If the subsequent disability for which reimbursement is
claimed is an occupational disease, and if, subsequent to
registration as provided by subdivisions 4 and 5, the employee
has been employed by the employer in employment similar to that
which initially resulted in such the occupational disease, no
reimbursement shall be paid to the employer.
Sec. 102. Minnesota Statutes 1982, section 176.131,
subdivision 8, is amended to read:
Subd. 8. As used in this section the following terms have
the meanings given them:
"Physical impairment" means any physical or mental
condition that is permanent in nature, whether congenital or due
to injury, disease or surgery and which is or is likely to be a
hindrance or obstacle to obtaining employment provided except
that, physical impairment as used herein is limited to the
following:
(a) Epilepsy,
(b) Diabetes,
(c) Hemophilia,
(d) Cardiac disease,
(e) Partial or entire absence of thumb, finger, hand, foot,
arm or leg,
(f) Lack of sight in one or both eyes or vision in either
eye not correctable to 20/40,
(g) Residual disability from poliomyelitis,
(h) Cerebral Palsy,
(i) Multiple Sclerosis,
(j) Parkinson's disease,
(k) Cerebral vascular accident,
(l) Chronic Osteomyelitis,
(m) Muscular Dystrophy,
(n) Thrombophlebitis,
(o) Brain tumors,
(p) Pott's disease,
(q) Seizures,
(r) Cancer of the bone,
(s) Leukemia,
(o) (t) Any other physical impairment for which resulting
in a disability rating of at least 50 weeks or more of weekly
benefits would be payable as permanent partial disability ten
percent of the whole body if the physical impairment were
evaluated according to standards used in workers' compensation
proceedings, and
(p) (u) Any other physical impairments of a permanent
nature which the workers' compensation court of appeals
commissioner may by rule prescribe;
"Compensation" has the meaning defined in section 176.011;
"Employer" includes insurer;
"Disability" means, unless otherwise indicated, any
condition causing either temporary total, temporary partial,
permanent total, permanent partial, death, medical expense, or
retraining rehabilitation.
Sec. 103. Minnesota Statutes 1982, section 176.132,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBLE RECIPIENTS.] (a) An employee who
has suffered personal injury prior to the effective date of
clause (b) for which benefits are payable under section 176.101
and who has been totally disabled for more than 104 weeks shall
be eligible for supplementary benefits as hereinafter prescribed
in this section after 104 weeks have elapsed and for the
remainder of his the total disablement. Regardless of the
number of weeks of total disability, no totally disabled person
shall be is ineligible for supplementary benefits after four
years have elapsed since the first date of his the total
disability, except as provided by clause (b), provided that all
periods of disability are caused by the same injury.
(b) An employee who has suffered personal injury after the
effective date of this clause is eligible to receive
supplementary benefits after the employee has been receiving
temporary total or permanent total benefits for 208 weeks.
Regardless of the number of weeks of total disability, no person
who is receiving temporary total compensation shall be
ineligible for supplementary benefits after four years have
elapsed since the first date of the total disability, provided
that all periods of disability are caused by the same injury.
Sec. 104. Minnesota Statutes 1982, section 176.132, is
amended by adding a subdivision to read:
Subd. 5. [ROUNDING OF PAYMENTS.] A payment made under this
section shall be rounded up to the nearest whole dollar.
Sec. 105. Minnesota Statutes 1982, section 176.134,
subdivision 4, is amended to read:
Subd. 4. [ADMINISTRATION.] The commissioner of labor and
industry shall administer the reopened case fund as part of the
special compensation fund provided that the reopened case fund
is under separate accounting and audit procedures from the
special fund.
Sec. 106. Minnesota Statutes 1982, section 176.135,
subdivision 1, is amended to read:
Subdivision 1. [MEDICAL, CHIROPRACTIC, PODIATRIC,
SURGICAL, HOSPITAL.] The employer shall furnish such any
medical, chiropractic, podiatric, surgical and hospital
treatment, including nursing, medicines, medical, chiropractic,
podiatric, and surgical supplies, crutches and apparatus,
including artificial members, or, at the option of the employee,
if the employer has not filed notice as hereinafter provided,
Christian Science treatment in lieu of medical treatment,
chiropractic medicine and medical supplies, as may reasonably be
required at the time of the injury and any time thereafter to
cure and relieve from the effects of the injury. Such This
treatment shall include treatments necessary to physical
rehabilitation. The employer shall furnish replacement or
repair for artificial members, glasses, or spectacles,
artificial eyes, podiatric orthotics, dental bridge work,
dentures or artificial teeth, hearing aids, canes, crutches or
wheel chairs damaged by reason of an injury arising out of and
in the course of the employment. In case of his inability or
refusal seasonably to do so the employer shall be is liable for
the reasonable expense incurred by or on behalf of the employee
in providing the same. The employer shall pay for the
reasonable value of nursing services by a member of the
employee's family in cases of permanent total disability.
Orders of a compensation judge the commissioner or medical
services review board with respect to this subdivision may be
reviewed by the workers' compensation court of appeals on
petition of an aggrieved party or by writ of certiorari to the
supreme court.
Sec. 107. Minnesota Statutes 1982, section 176.135,
subdivision 3, is amended to read:
Subd. 3. [LIMITATION OF LIABILITY.] The pecuniary
liability of the employer for the treatment, articles and
supplies required by this section shall be limited to such the
charges therefor as prevail in the same community for similar
treatment, articles and supplies furnished to injured persons of
a like standard of living when the same are paid for by the
injured persons. On this basis the compensation judge
commissioner, medical services review board, or workers'
compensation court of appeals on appeal may determine the
reasonable value of all such services and supplies and the
liability of the employer is limited to the amount so determined.
Sec. 108. Minnesota Statutes 1982, section 176.136, is
amended to read:
176.136 [MEDICAL FEE REVIEW.]
The commissioner of insurance shall by rule establish
procedures for determining whether or not the charge for a
health service is excessive. In order to accomplish this
purpose, the commissioner of insurance shall consult with
insurers, associations and organizations representing the
medical and other providers of treatment services and other
appropriate groups. The procedures established by the
commissioner of insurance shall limit the charges allowable for
medical, chiropractic, podiatric, surgical, hospital and other
health care provider treatment or services, as defined and
compensable under section 176.135, to the 75th percentile of
usual and customary fees or charges based upon billings for each
class of health care provider during all of the calendar year
preceding the year in which the determination is made of the
amount to be paid the health care provider for the billing. The
procedures established by the commissioner for determining
whether or not the charge for a health service is excessive
shall be structured to encourage providers to develop and
deliver services for rehabilitation of injured workers. The
procedures shall incorporate the provisions of sections 144.701,
144.702, and 144.703 to the extent that the commissioner finds
that these provisions effectively accomplish the intent of this
section or are otherwise necessary to insure that quality
hospital care is available to injured employees. If the
commissioner of insurance, a compensation judge, medical
services review board, the workers' compensation court of
appeals or a district court determines that the charge for a
health service or medical service is excessive, no payment in
excess of the reasonable charge for that service shall be made
under this chapter nor may the provider collect or attempt to
collect from the injured employee or any other insurer or
government amounts in excess of the amount payable under this
chapter; however, the commissioner of insurance shall by rule
establish procedures allowing for a provider to appeal such
determination. The commissioner of insurance shall contract
with a review organization as defined in section 145.61 for the
purposes listed in section 145.61, subdivision 5, and report to
the legislature by January 15, 1983 and thereafter on January 15
of every odd-numbered year, regarding the delivery of medical
and health care services, including rehabilitation services,
under the workers' compensation laws of this state.
The commissioner of insurance shall also conduct a study of
the qualifications and background of rehabilitation consultants
and vendors providing services under section 176.102 for the
purpose of determining whether there are adequate professional
standards provided, including safeguards to protect against
conflicts of interest.
The commissioner of insurance shall adopt temporary rules
in order to implement the provisions of this subdivision.
Notwithstanding the provisions of section 14.14, subdivision 1,
and any amendments, the temporary rules adopted by the
commissioner of insurance pursuant to this subdivision may be
extended for an additional 180 days if the procedures for
adoption of a rule pursuant to sections 14.13 to 14.20 or 14.21
to 14.28, and other provisions of the administrative procedure
act related to final agency action and rule adoption have not
been concluded.
Any rules adopted by the commissioner of insurance pursuant
to this section shall remain in effect but may be amended,
modified, or repealed only by the commissioner of labor and
industry.
Sec. 109. [176.138] [MEDICAL DATA; ACCESS.]
Notwithstanding any other state laws related to the privacy
of medical data or any private agreements to the contrary, the
release of medical data related to a current claim for
compensation under this chapter to the employee, employer, or
insurer who are parties to the claim, or to the department of
labor and industry, shall not require prior approval of any
party to the claim. Requests for pertinent data shall be made
in writing to the person or organization that collected or
currently possesses the data. The data shall be provided by the
collector or possessor within seven working days of receiving
the request. In all cases of a request for the data, except
when it is the employee who is making the request, the employee
shall be sent written notification of the request by the party
requesting the data at the same time the request is made. This
data shall be treated as private data by the party who requests
or receives the data and the employee or the employee's attorney
shall be provided with a copy of all data requested by the
requester.
Medical data which is not directly related to a current
injury or disability shall not be released without prior
authorization of the employee.
The commissioner may impose a penalty of up to $200 payable
to the special compensation fund against a party who does not
release the data in a timely manner. A party who does not treat
this data as private pursuant to this section is guilty of a
misdemeanor.
Sec. 110. Minnesota Statutes 1982, section 176.155,
subdivision 3, is amended to read:
Subd. 3. [REFUSAL TO BE EXAMINED.] If the injured employee
refuses to comply with any reasonable request for examination,
his the right to compensation may be suspended by order of the
division, a compensation judge or workers' compensation court of
appeals in a matter before it, and no compensation shall be paid
while he the employee continues in such the refusal.
Sec. 111. Minnesota Statutes 1982, section 176.155,
subdivision 5, is amended to read:
Subd. 5. [TESTIMONY OF EXAMINING PHYSICIANS HEALTH CARE
PROVIDER.] Any physician or other health care provider
designated by the commissioner of the department of labor and
industry, compensation judge, or workers' compensation court of
appeals or whose services are furnished or paid for by the
employer, who treats or who makes, examines, or is present at
any examination, of an injured employee, may be required to
testify as to any knowledge acquired by him the physician or
health care provider in the course of such the treatment or
examination relative to the injury or disability resulting
therefrom from the injury only if the commissioner or a
compensation judge makes a written finding that the appearance
of the physician or health care provider is crucial to the
accurate determination of the employee's disability. In all
other cases all evidence related to health care must be
submitted by written report as prescribed by the chief hearing
examiner. A party may cross-examine by deposition a physician
or health care provider who has examined or treated the
employee. If a physician or health care provider is not
available for cross-examination prior to the hearing and the
physician's or health care provider's written report is
submitted at the hearing, the compensation judge shall, upon
request of the adverse party, require the physician or health
care provider to testify at the hearing for the purpose of being
cross-examined by the adverse party. All written evidence
relating to health care must be submitted prior to or at the
time of the hearing and no evidence shall be considered which
was submitted after the hearing unless the compensation judge
orders otherwise.
Sec. 112. Minnesota Statutes 1982, section 176.179, is
amended to read:
176.179 [PAYMENTS OF COMPENSATION RECEIVED IN GOOD FAITH.]
Notwithstanding section 176.521, subdivision 3, or any
other provision of this chapter to the contrary, except as
provided in this section, no lump sum or weekly payment, or
settlement, which is voluntarily paid to an injured employee or
the survivors of a deceased employee in apparent or seeming
accordance with the provisions of this chapter by an employer or
insurer, or is paid pursuant to an order of the workers'
compensation division, a compensation judge, or court of appeals
relative to a claim by an injured employee or his the employee's
survivors, and received in good faith by the employee or his the
employee's survivors shall be refunded to the paying employer or
insurer in the event that it is subsequently determined that the
payment was made under a mistake in fact or law by the employer
or insurer. When the payments have been made to a person who is
entitled to receive further payments of compensation for the
same injury, the mistaken compensation may be taken as a credit
against future benefit entitlement; provided, however, that the
credit applied against further payments of temporary total
disability, temporary partial disability, permanent total
disability, retraining benefits or death benefits shall not
exceed 20 percent of the amount that would otherwise be payable.
Sec. 113. Minnesota Statutes 1982, section 176.181, is
amended by adding a subdivision to read:
Subd. 2a. [APPLICATION FEE.] Every initial application
filed pursuant to subdivision 2 requesting authority to
self-insure shall be accompanied by a fee of $1,000. The fee is
not refundable.
Sec. 114. Minnesota Statutes 1982, section 176.182, is
amended to read:
176.182 [BUSINESS LICENSES OR PERMITS; COVERAGE REQUIRED.]
Every state or local licensing agency shall withhold the
issuance of a license or permit to operate a business in
Minnesota until the applicant presents acceptable evidence of
compliance with the workers' compensation insurance coverage
requirement of section 176.181, subdivision 2.
Neither the state nor any governmental subdivision thereof
of the state shall enter into any contract for the doing of any
public work before receiving from all other contracting parties
acceptable evidence of compliance with the workers' compensation
insurance coverage requirement of section 176.181, subdivision 2.
This section shall not be construed to create any liability
on the part of the state or any governmental subdivision to pay
workers' compensation benefits or to indemnify the special
compensation fund, an employer, or insurer who pays workers'
compensation benefits.
Sec. 115. Minnesota Statutes 1982, section 176.183,
subdivision 1, is amended to read:
Subdivision 1. When any employee shall sustain sustains an
injury arising out of and in the course of his employment while
in the employ of an employer, other than the state or its
political subdivisions, not insured or self-insured as provided
for in this chapter, the employee or his the employee's
dependents shall nevertheless receive benefits as provided for
therein in this chapter from the special compensation fund, and
the state treasurer as custodian of such fund shall have
commissioner has a cause of action against such the employer for
reimbursement for all moneys paid out or to be paid out, and, in
the discretion of the court, as punitive damages an additional
amount not exceeding 50 percent of all moneys paid out or to be
paid out. An action to recover such the moneys shall be
instituted unless the custodian commissioner determines that no
recovery is possible. All moneys recovered shall be deposited
in the general fund. There shall be no payment from the special
compensation fund if there is liability for the injury under the
provisions of section 176.215, by an insurer or self-insurer.
Sec. 116. Minnesota Statutes 1982, section 176.183,
subdivision 1a, is amended to read:
Subd. 1a. When an employee or his the employee's dependent
is entitled to benefits under this chapter from a self-insurer,
present or past, other than the state and its municipal
subdivisions, but the self-insurer fails to be paid them pay the
benefits, the employee or his the employee's dependents,
regardless of the date when the accident, personal injury,
occupational disease, or death occurred, shall nevertheless
receive such the benefits from the special compensation fund,
and. The state treasurer as custodian of such fund shall have
commissioner has a cause of action against such the
self-insuring employer for reimbursement, for all moneys
benefits and other expenditures paid out or to be paid out and,
in the discretion of the court, as the self-insurer is liable
for punitive damages in an additional amount not to exceed 50
percent of the total of all moneys benefits and other
expenditures paid out or to be paid out. The commissioner shall
institute an action to recover such moneys shall be instituted
the total expenditures from the fund unless the custodian
commissioner determines that no recovery is possible. All
moneys proceeds recovered shall be deposited in the general fund.
Sec. 117. Minnesota Statutes 1982, section 176.183, is
amended by adding a subdivision to read:
Subd. 3. (a) Notwithstanding subdivision 2, the
commissioner may direct payment from the special compensation
fund for compensation payable pursuant to subdivisions 1 and 1a,
including benefits payable under sections 176.102 and 176.135,
prior to issuance of an order of a compensation judge or the
workers' compensation court of appeals directing payment or
awarding compensation.
(b) The commissioner may suspend or terminate an order
under clause (a) for good cause as determined by the
commissioner.
Sec. 118. Minnesota Statutes 1982, section 176.183, is
amended by adding a subdivision to read:
Subd. 4. If the commissioner authorizes the special fund
to commence payment under this section, the commissioner shall
serve by certified mail notice upon the employer and other
interested parties of the intention to commence payment. This
notice shall be served at least ten calendar days before
commencing payment and shall be mailed to the last known address
of the parties. The notice shall include a statement that
failure of the employer to respond within ten calendar days of
the date of service will be deemed acceptance by the employer of
the proposed action by the commissioner and will be deemed a
waiver of defenses the employer has to a subrogation or
indemnity action by the commissioner. At any time prior to
final determination of liability, the employer may appear as a
party and present defenses the employer has, whether or not an
appearance by the employer has previously been made in the
matter. The commissioner has a cause of action against the
employer to recover compensation paid by the special fund under
this section.
Sec. 119. Minnesota Statutes 1982, section 176.185,
subdivision 1, is amended to read:
Subdivision 1. [NOTICE OF COVERAGE, TERMINATION,
CANCELLATION.] Within ten days after the issuance of a policy of
insurance covering the liability to pay compensation under this
chapter written by any an insurer licensed to insure such
liability in this state, the insurer shall file notice of
coverage with the commissioner of the department of labor and
industry under regulations and on forms prescribed by the
commissioner of the department of labor and industry. No policy
shall be canceled by the insurer within the policy period nor
terminated upon its expiration date until a notice in writing
shall be is delivered or mailed to the insured and filed with
the commissioner of the department of labor and industry, fixing
the date on which it is proposed to cancel it, or declaring that
the insurer does not intend to renew the policy upon the
expiration date. Such A cancellation or termination shall is
not become effective until 30 days after written notice has been
filed with the commissioner of the department of labor and
industry in a manner prescribed by the commissioner unless prior
to the expiration of said the 30-day period the employer obtains
other insurance coverage or an order exempting him the employer
from carrying insurance as provided in section 176.181. Upon
receipt of said the notice the commissioner of the department of
labor and industry shall notify the insured that he the insured
must obtain coverage from some other licensed carrier and that,
if unable to do so, he the insured shall request the
Compensation Rating Bureau commissioner of insurance to
designate some carrier to issue a require the issuance of a
policy as provided in section 79.25 79.251, subdivision 4. Upon
a cancellation or termination of a policy by the insurer the
employer is entitled to have a policy assigned to him in
accordance with sections 79.24 to 79.27 79.251 and 79.252.
Notice of cancellation or termination by the insured shall be
served upon the insurer by written statement to that effect
mailed or delivered to the insurer. Upon receipt of such the
notice the insurer shall notify the commissioner of the
department of labor and industry of the cancellation or
termination and thereupon the commissioner of the department of
labor and industry shall ask the employer for the reasons for
his the cancellation or termination and notify him the employer
of his the duty under this chapter to insure his the employer's
employees.
Sec. 120. Minnesota Statutes 1982, section 176.185, is
amended by adding a subdivision to read:
Subd. 10. [DATA COLLECTION CONTRACTS.] The commissioner
may contract with other parties regarding the collection of
appropriate data to assist in meeting the requirements of this
section.
Sec. 121. [176.186] [RECORDS FROM OTHER STATE AGENCIES.]
Notwithstanding any other state law to the contrary, the
commissioner may obtain from the department of revenue,
department of economic security, and office of the secretary of
state, or any other state agency, upon request, names or lists
of employers doing business in the state. This information
shall be treated by the commissioner in the manner provided by
chapter 13 and shall be used only for insurance verification by
the commissioner.
Sec. 122. Minnesota Statutes 1982, section 176.191, is
amended by adding a subdivision to read:
Subd. 5. Where a dispute exists between an employer,
insurer, the special compensation fund, the reopened case fund,
or the workers' compensation reinsurance association, regarding
benefits payable under this chapter, the dispute may be
submitted with consent of all interested parties to binding
arbitration pursuant to the rules of the American arbitration
association. The decision of the arbitrator shall be conclusive
with respect to all issues presented except as provided in
subdivisions 6 and 7. Consent of the employee is not required
for submission of a dispute to arbitration pursuant to this
section and the employee is not bound by the results of the
arbitration. An arbitration award shall not be admissible in
any other proceeding under this chapter. Notice of the
proceeding shall be given to the employee.
The employee, or any person with material information to
the facts to be arbitrated, shall attend the arbitration
proceeding if any party to the proceeding deems it necessary.
Nothing said by an employee in connection with any arbitration
proceeding may be used against the employee in any other
proceeding under this chapter. Reasonable expenses of meals,
lost wages, and travel of the employee or witnesses in attending
shall be reimbursed on a pro rata basis. Arbitration costs
shall be paid by the parties, except the employee, on a pro rata
basis.
Sec. 123. Minnesota Statutes 1982, section 176.191, is
amended by adding a subdivision to read:
Subd. 6. If the employee commences an action under this
chapter for benefits arising out of the same injury which
resulted in the dispute arbitrated under subdivision 5, and if
the benefits awarded to the employee under the employee's claim
are inconsistent with the arbitration decision, any increase in
benefits over those paid pursuant to the arbitration proceeding
is paid by the party or parties who ordinarily would have been
required to pay the increased benefits but for the arbitration.
Any reimbursement from the employee of any decrease in benefits
from those paid pursuant to the arbitration is paid to the party
or parties who previously had paid the increased benefits. The
provisions of this subdivision apply regardless of whether more
or fewer employers and insurers or the special fund have been
added or omitted as parties to the employee's subsequent action
after arbitration.
Sec. 124. Minnesota Statutes 1982, section 176.191, is
amended by adding a subdivision to read:
Subd. 7. If an employee brings an action under the
circumstances described in subdivision 6, the parties to the
previous arbitration may be represented at the new action by a
common or joint attorney.
Sec. 125. Minnesota Statutes 1982, section 176.191, is
amended by adding a subdivision to read:
Subd. 8. No attorney's fees shall be awarded under either
section 176.081, subdivision 8, or 176.191 against any employer
or insurer in connection with any arbitration proceeding unless
the employee chooses to retain an attorney to represent the
employee's interests during arbitration.
Sec. 126. Minnesota Statutes 1982, section 176.195, is
amended by adding a subdivision to read:
Subd. 1a. [ADDITIONAL GROUNDS.] Where an insurer or agent
of an insurer has failed to comply with provisions of this
chapter, other than the provisions in subdivision 1, the
commissioner of insurance may revoke the license of the insurer
to write workers' compensation insurance.
Sec. 127. Minnesota Statutes 1982, section 176.195,
subdivision 2, is amended to read:
Subd. 2. [COMMENCEMENT OF PROCEEDINGS.] Such The
commissioner of insurance may act under subdivision 1 or
subdivision 1a upon his own motion, the recommendation of the
commissioner of the department of labor and industry, the chief
hearing examiner, or the workers' compensation court of appeals,
or the complaint of any interested person.
Sec. 128. Minnesota Statutes 1982, section 176.195, is
amended by adding a subdivision to read:
Subd. 7. [REPORT TO COMMISSIONER OF INSURANCE.] The
commissioner may send reports to the commissioner of insurance
regarding compliance with this chapter by insurers writing
workers' compensation insurance. A report may include a
recommendation for revocation of an insurer's license under this
section and may also recommend the imposition of other penalties
which may be imposed upon insurers by the commissioner of
insurance.
Sec. 129. Minnesota Statutes 1982, section 176.221, is
amended to read:
176.221 [PAYMENT OF COMPENSATION AND TREATMENT CHARGES,
COMMENCEMENT.]
Subdivision 1. [COMMENCEMENT OF PAYMENT.] Within 14 days
of notice to or knowledge by the employer of an injury
compensable under this chapter the payment of temporary total
compensation due pursuant to section 176.101, subdivision 1,
shall commence. Commencement of payment by an employer or
insurer does not waive any rights to any defense the employer
may have on any claim or incident either with respect to the
compensability of the claim under chapter 176 or the amount of
the compensation due. Where there are multiple employers, the
first employer shall pay, unless it is shown that the injury has
arisen out of employment with the second or subsequent
employer. When If the employer or insurer has commenced payment
of compensation under this subdivision but determines within 30
days of notice to or knowledge by the employer of the injury
that the disability is not a result of a personal injury,
payment of compensation may be discontinued terminated upon
notice of discontinuance pursuant to section 176.241 the filing
of a notice of denial of liability. Upon the determination
termination, payments made may be recovered by the employer if
the commissioner or compensation judge finds that the employee's
claim of work related disability was not made in good faith. A
notice of denial of liability must state in detail specific
reasons explaining why the claimed injury or occupational
disease was determined not to be within the scope and course of
employment and shall include the name and telephone number of
the person making this determination.
Subd. 2. [GRANT OF EXTENSION.] Upon application made
within 30 days after the date on which the first payment was
due, the commissioner may grant an extension of time within
which to determine liability. The extension shall not exceed 30
days.
Subd. 3. [PAYMENTS TO SPECIAL COMPENSATION FUND.] Where an
employer or insurer fails to begin payment of compensation,
charges for treatment under section 176.135 or retraining
expenses under 176.102, subdivision 9 pursuant to subdivision 1,
or to file a denial of liability within the 14-day period
referred to in subdivision 1, or to request an extension of time
within 30 days after the date on which the first payment was
due, he it shall pay to the special compensation fund an amount
equal to the total amount of compensation to which the employee
is entitled because of the injury. In addition, each day
subsequent to the end of the period and until a to receive up to
the date compensation payment is made to the injured employee,
the person responsible for payment of compensation shall pay to
the special compensation fund an amount equal to the total
compensation to which the injured employee is entitled.
Subd. 4. [FAILURE TO MAKE PAYMENTS AFTER EXTENSION.] Where
an employer or insurer has been granted an extension of time
within which to determine liability and fails to begin payment
of compensation, charges for treatment under section 176.135 or
retraining expenses under 176.102, subdivision 9 or to file a
denial of liability within such extended period, he shall make
the payments provided in subdivision 3.
Subd. 5. [DOUBLE PAYMENTS TO SPECIAL COMPENSATION FUND.]
Where an employer or insurer has failed to make the payments
required by subdivision 3 or subdivision 4 within 30 days from
the end of the period or the extended period, the division may
require him to pay to the special compensation fund, each day
subsequent to the end of the period and until a compensation
payment is made to the injured employee, a sum equal to double
the total amount of compensation to which the employee is
entitled because of the injury. In addition, the person
responsible for compensation, charges for treatment under
section 176.135 or retraining expenses under 176.102,
subdivision 9 shall pay to the special compensation fund an
amount equal to the total amount of compensation to which the
employee is entitled.
Subd. 6. [ASSESSMENT OF PENALTIES.] The division or
compensation judge shall assess the penalty payments provided
for by subdivisions subdivision 3 to 5, and any increase in
benefit payments provided by section 176.225, subdivision 5,
against either the employer or the insurer depending upon to
whom the delay is attributable in making payment of
compensation, charges for treatment under section 176.135 or
retraining expenses under 176.102, subdivision 9. The insurer
is not liable for a penalty payment assessed against it even if
the delay is attributable to the employer.
An insurer who has paid a penalty under this section may
recover from the employer the portion of the penalty
attributable to the acts of the employer which resulted in the
delay. A penalty paid by an insurer under this section which is
attributable to the fault of the employer shall be treated as a
loss in an experience rated plan, retrospective rating plan, or
dividend calculation where appropriate.
Subd. 6a. [MEDICAL, REHABILITATION, ECONOMIC RECOVERY, AND
IMPAIRMENT COMPENSATION.] The penalties provided by this section
apply in cases where payment for treatment under section
176.135, rehabilitation expenses under section 176.102,
subdivisions 9 and 11, economic recovery compensation or
impairment compensation are not made in a timely manner as
required by law or by rule adopted by the commissioner.
Subd. 7. [INTEREST.] Any payment of compensation, charges
for treatment under section 176.135 or retraining rehabilitation
expenses under 176.102, subdivision 9 not made when due shall
bear interest at the rate of eight percent per annum a year from
the due date to the date the payment is made or the rate set by
section 549.09, subdivision 1, whichever is greater.
Subd. 8. [METHOD AND TIMELINESS OF PAYMENT.] Payment of
compensation under this chapter shall be by immediately payable
negotiable instrument, or if by any other method, arrangements
shall be available to provide for the immediate negotiability of
the payment instrument.
All payment of compensation shall be made within 14 days of
the filing of an appropriate order by the division or a
compensation judge, unless the order is to be appealed, or where
if a different time period is provided by this chapter.
Subd. 9. [PAYMENT OF FULL WAGES.] An employer who pays
full wages to an injured employee is not relieved of the
obligation for reporting the injury and making a liability
determination within the times specified in this chapter. If
the full wage is paid the employer's insurer or self-insurer
shall report the amount of this payment to the division and
determine the portion which is temporary total compensation for
purposes of administering this chapter and special compensation
fund assessments. The employer shall also make appropriate
adjustments to the employee's payroll records to assure that the
employee's sick leave or the vacation time is not
inappropriately charged against the employee, and to assure the
proper income tax treatment for the payments.
Sec. 130. Minnesota Statutes 1982, section 176.225,
subdivision 1, is amended to read:
Subdivision 1. [GROUNDS.] Upon reasonable notice and
hearing or opportunity to be heard, the division, a compensation
judge, or upon appeal, the workers' compensation court of
appeals or the supreme court may award compensation, in addition
to the total amount of compensation award, of up to 25 percent
of that total amount where an employer or insurer has:
(a) instituted a proceeding or interposed a defense which
does not present a real controversy but which is frivolous or
for the purpose of delay; or,
(b) unreasonably or vexatiously delayed payment; or,
(c) neglected or refused to pay compensation; or,
(d) intentionally underpaid compensation.
Sec. 131. Minnesota Statutes 1982, section 176.225,
subdivision 2, is amended to read:
Subd. 2. [EXAMINATION OF BOOKS AND RECORDS.] To determine
whether an employer or insurer has become subject to is liable
for the payment provided by subdivision 1, the division, a
compensation judge, or the workers' compensation court of
appeals upon appeal may examine the books and records of the
person employer or insurer relating to the payment of
compensation, and may require him the employer or insurer to
furnish any other information relating to the payment of
compensation.
Sec. 132. Minnesota Statutes 1982, section 176.225,
subdivision 3, is amended to read:
Subd. 3. [DEFIANCE OF DIVISION, COMPENSATION JUDGE, OR
WORKERS' COMPENSATION COURT OF APPEALS, COMPLAINT.] Where If an
insurer persists in an action or omission listed in subdivision
1, or does not permit the examination of his books and records,
or fails to furnish such information as required, the
commissioner or the chief hearing examiner shall file a written
complaint with the insurance commissioner. The complaint shall
specify the facts and recommend the revocation of the license of
the insurer to do business in this state. The workers'
compensation court of appeals may also file such a written
complaint.
Sec. 133. Minnesota Statutes 1982, section 176.231,
subdivision 3, is amended to read:
Subd. 3. [PHYSICIANS, CHIROPRACTORS, OR SURGEONS OTHER
HEALTH CARE PROVIDERS TO REPORT INJURIES.] Where A physician or
surgeon, chiropractor, or other health care provider who has
examined, treated, or has special knowledge of an injury to an
employee which may be compensable under this chapter, he shall
report to the commissioner of the department of labor and
industry all facts relating to the nature and extent of the
injury and disability, and the treatment provided for the injury
or disability, within ten days after he the health care provider
has received a written request for such the information from the
commissioner of the department of labor and industry or any
member or employee thereof an authorized representative of the
commissioner.
Sec. 134. Minnesota Statutes 1982, section 176.231,
subdivision 4, is amended to read:
Subd. 4. [SUPPLEMENTARY REPORTS.] The commissioner of the
department of labor and industry, or any member or employee
thereof, an authorized representative may require the filing of
such supplementary reports of accidents as it deems is deemed
necessary to provide information required by law.
Supplementary reports related to the current nature and
extent of the employee's injury, disability, or treatment may be
requested from a physician, surgeon, chiropractor, or other
health care provider by the commissioner or a representative, an
employer or insurer, or the employee.
Sec. 135. Minnesota Statutes 1982, section 176.231,
subdivision 5, is amended to read:
Subd. 5. [FORMS FOR REPORTS.] The commissioner of the
department of labor and industry shall prescribe forms for use
in making the reports required by this section. The first
report of injury form which the employer submits with reference
to an accident shall include a declaration by the employer that
he the employer will pay the compensation the law requires.
Forms for reports required by this section shall be as
prescribed by the commissioner and shall be the only forms used
by an employer, insurer, self-insurer, group self-insurer, and
all health care providers.
Sec. 136. Minnesota Statutes 1982, section 176.231,
subdivision 9, is amended to read:
Subd. 9. [USES WHICH MAY BE MADE OF REPORTS.] Reports
filed with the commissioner of the department of labor and
industry under this section may be used in hearings held under
this chapter, and for the purpose of state investigations and
for statistics.
The division or office of administrative hearings or
workers' compensation court of appeals may permit an attorney at
law who represents an employer, insurer, or an employee or his a
dependent to examine its file in a compensation case if the
attorney furnishes written authorization to do so from his the
attorney's client. Reports filed under this section and other
information the commissioner has regarding injuries or deaths
shall be made available to the workers' compensation reinsurance
association for use by the association in carrying out its
responsibilities under chapter 79.
Sec. 137. Minnesota Statutes 1982, section 176.231,
subdivision 10, is amended to read:
Subd. 10. [FAILURE TO FILE REQUIRED REPORT, PENALTY.]
Where If an employer, physician, or surgeon has failed
chiropractor, or other health provider fails to file with the
commissioner of the department of labor and industry any report
required by this section in the manner and within the time
limitations prescribed, he shall forfeit to the state $50 or
otherwise fails to provide a report required by this section in
the manner provided by this section, the commissioner may impose
a penalty of up to $200 for each such failure.
The attorney general shall sue in a civil action to collect
this penalty upon notification of the matter by the commissioner
of the department of labor and industry. The commissioner of
the department of labor and industry shall certify to the
attorney general each failure to report immediately upon its
occurrence.
Penalties collected by the state under this subdivision
shall be paid into the state treasury.
Sec. 138. Minnesota Statutes 1982, section 176.241,
subdivision 2, is amended to read:
Subd. 2. [CONTINUANCE OF EMPLOYER'S LIABILITY;
SUSPENSION.] Except where when the commissioner orders
otherwise, until the copy of the notice and reports have been
filed with the division, the liability of the employer to make
payments of compensation continues.
When the division has received a copy of the notice of
discontinuance, the statement of facts and available medical
reports, the duty of the employer to pay compensation is
suspended pending an investigation, hearing, and determination
of the matter by the division or compensation judge as provided
in the following subdivisions.
Sec. 139. Minnesota Statutes 1982, section 176.241,
subdivision 4, is amended to read:
Subd. 4. [ORDER.] When the hearing has been held, and he
has duly considered the evidence duly considered, the person who
held the hearing shall promptly enter an order directing the
payment of further compensation or confirming the termination of
compensation. Where If the order confirms a termination of
compensation, the commissioner of labor and industry shall
notify the employer of the action. This notification the
service and filing of the order relieves the employer from
further liability for compensation subject to the right of
review afforded by this chapter, and to the right of the
division compensation judge to set aside the order at any time
prior to the review and to grant a new hearing pursuant to this
chapter. Once an appeal to the workers' compensation court of
appeals is filed, a compensation judge may not set aside the
order but the court of appeals may remand the matter to a
compensation judge for a new hearing.
Sec. 140. [176.242] [ADMINISTRATIVE CONFERENCE PRIOR TO
DISCONTINUANCE OF COMPENSATION.]
Subdivision 1. [NOTICE OF DISCONTINUANCE; GROUNDS.] If an
employer or insurer files a notice of intention to discontinue,
the employer or insurer shall serve a copy upon the commissioner
and the employee including detailed reasons for the intended
discontinuance.
Subd. 2. [CONFERENCE, REQUEST.] (a) The employee has ten
calendar days from the date the notice was served to request
that the commissioner schedule an administrative conference to
determine the appropriateness of the proposed discontinuance.
The employer or insurer may request an administrative conference
under this section at any time whether or not a notice of intent
to discontinue is filed. The commissioner shall schedule an
administrative conference to be held within ten calendar days
after the commissioner receives timely notice of the employee's
or employer's request for an administrative conference.
(b) If the employee does not, in a timely manner, request
that the commissioner schedule an administrative conference, or
fails to appear, without good cause, at a scheduled conference,
compensation may be discontinued, subject to the employee's
right under section 176.241.
(c) An employee or employer may request a continuance of a
scheduled administrative conference. If the commissioner
determines that good cause exists for granting a continuance,
the commissioner may grant the continuance which shall not
exceed ten calendar days. No more than one continuance shall be
granted. If the employee is granted a continuance, compensation
need not be paid during the period of continuance but shall
recommence upon the date of the conference unless the
commissioner orders otherwise.
(d) The purpose of an administrative conference is to
determine whether reasonable grounds exist for a discontinuance.
Subd. 3. [NECESSITY FOR CONFERENCE, COMMISSIONER'S
DISCRETION.] The commissioner may determine that no
administrative conference is necessary under this section and
permit the employer or insurer to discontinue compensation,
subject to the employee's right under section 176.241.
The commissioner may permit compensation to be discontinued
at any time after a notice pursuant to subdivision 1 is received
even if no administrative conference has been held, if the
commissioner deems the discontinuance appropriate based on the
information the commissioner has, subject to the employee's
right under section 176.241.
Subd. 4. [ADMINISTRATIVE DECISION.] After considering the
information provided by the parties at the administrative
conference, the commissioner shall issue to all interested
parties a written administrative decision permitting or denying
the employer's or insurer's request to discontinue
compensation. The decision shall be issued within five working
days from the close of the conference. The commissioner's
decision is binding on the parties. The commissioner shall
advise all parties of the right to petition to the chief hearing
examiner under section 176.241 and of the right to be
represented by an attorney at a hearing before a compensation
judge.
Subd. 5. [OBJECTION TO DECISION.] If the commissioner
grants the employer's or insurer's request to discontinue
compensation and the employee objects to the discontinuance, the
employee may file an objection to discontinuance under section
176.241. If the commissioner denies the request to discontinue
compensation the employer or insurer may file a petition to
discontinue under section 176.241.
Subd. 6. [EFFECT OF DECISION, APPEAL.] If an objection or
a petition is filed under subdivision 5, the commissioner's
administrative decision remains in effect and the parties
obligations or rights to pay or receive compensation are
governed by the commissioner's administrative decision, pending
a determination by a compensation judge.
Subd. 7. [DECISION AS NOTICE.] If a party proceeds under
subdivision 5, the commissioner's administrative decision under
this section is deemed required notice to interested parties
under section 176.241 and the commissioner's obligations under
section 176.241 are deemed to be met.
Subd. 8. [WHEN DISCONTINUANCE ALLOWED.] Compensation shall
not be discontinued prior to an administrative conference except
as provided under subdivision 2, clause (b), or if the
commissioner determines pursuant to subdivision 3 that no
administrative conference is necessary. The employer may
discontinue compensation immediately without having an
administrative conference if the discontinuance is because the
employee has returned to work.
Subd. 9. [NOTICE, FORMS.] Notice to the employee under
subdivision 1 shall be on forms prescribed by the commissioner.
Subd. 10. [FINES, VIOLATIONS.] An employer or insurer who
discontinues compensation in violation of this section is
subject to a fine of up to $500 for each violation. Fines shall
be paid to the special compensation fund.
Subd. 11. [APPLICATION.] This section is applicable to any
notice of intent to discontinue which is filed after the
effective date of this section, even if the injury occurred
prior to the effective date of this section.
Sec. 141. [176.243] [ADMINISTRATIVE CONFERENCE FOLLOWING
RETURN TO WORK, SUBSEQUENT INABILITY TO WORK.]
Subdivision 1. [CONFIRMATION OF EMPLOYMENT AND WAGES.] If
an insurer has discontinued compensation to an employee because
the employee has returned to work, the insurer shall contact the
employee 14 calendar days after return to work. The insurer
shall determine whether the employee is still employed after 14
days and shall also ascertain the wages being paid to the
employee.
Subd. 2. [NOTICE TO COMMISSIONER.] If upon contact the
insurer determines that the employee is not working or that the
employee is earning a lower wage than at the time of the injury,
the insurer shall notify the commissioner in writing of this
fact and shall also state the actions that the insurer has taken
or intends to take regarding payment of compensation. A copy of
this notice shall be served by the insurer by certified mail to
the employee.
Subd. 3. [EMPLOYEE REQUEST FOR ADMINISTRATIVE CONFERENCE.]
If the employee objects to the action of the insurer regarding
payment of compensation upon the cessation of work by the
employee, the employee may request an administrative conference
with the commissioner to resolve disputed issues. A request for
an administrative conference shall be made within ten calendar
days after service of the notice on the employee. If the
employee requests an administrative conference the commissioner
shall schedule a conference to be held within 14 calendar days
after the commissioner receives the request.
Subd. 4. [ADMINISTRATIVE DECISION.] After considering the
information provided by the parties at the administrative
conference the commissioner shall issue to all interested
parties a written administrative decision regarding payment of
compensation. The commissioner's decision is binding upon the
parties and the rights and obligations of the parties are
governed by the decision. The commissioner shall advise all
parties of the right to petition to the chief hearing examiner
under section 176.241 and of the right to be represented by an
attorney at a hearing before a compensation judge. A party
aggrieved by the commissioner's decision may proceed under
section 176.241.
Subd. 5. [DECISION BINDING PENDING COMPENSATION JUDGE
DECISION.] If an aggrieved party files a petition under section
176.241, the commissioner's administrative decision remains in
effect pending a determination by a compensation judge.
Subd. 6. [DECISION AS NOTICE.] If a party proceeds under
section 176.241, the commissioner's administrative decision is
deemed to fulfill the division's obligations under section
176.241.
Subd. 7. [OBLIGATIONS PRIOR TO ADMINISTRATIVE DECISION.]
If an insurer has not voluntarily commenced compensation
following the employee's cessation of work the insurer is not
obligated to do so until an administrative conference is held
and unless the commissioner determines that compensation shall
be commenced.
Subd. 8. [NECESSITY OF ADMINISTRATIVE CONFERENCE.] If the
commissioner deems it appropriate, based upon information the
commissioner has, the commissioner may determine that an
administrative conference is not necessary, in which case a
party may proceed under section 176.241.
Subd. 9. [APPLICATION OF SECTION.] This section applies
only when the employee has received at least 45 days of
temporary total or temporary partial compensation prior to
return to work and if no rehabilitation plan has been approved.
This section is applicable to all cases in which a return
to work has occurred after the effective date of this section
even if the injury occurred prior to the effective date.
Subd. 10. [NOTICE FORMS.] A notice under this section
shall be on a form prescribed by the commissioner.
Subd. 11. [FINES, VIOLATIONS.] An employer or insurer who
violates this section is subject to a fine of up to $500 for
each violation which shall be paid to the special compensation
fund.
Sec. 142. Minnesota Statutes 1982, section 176.281, is
amended to read:
176.281 [ORDERS, DECISIONS, AND AWARDS; FILING; SERVICE.]
When the commissioner or compensation judge or office of
administrative hearings or the workers' compensation court of
appeals has rendered an a final order, decision, or award, or
amendment to an order, decision, or award, it shall be filed
immediately with the commissioner. Where If the commissioner,
compensation judge, office of administrative hearings, or
workers' compensation court of appeals has rendered an a final
order, decision, or award, or amendment thereto, the
commissioner or the office of administrative hearings or the
workers' compensation court of appeals shall immediately serve a
copy upon every party in interest, together with a notification
of the time date the same order was filed.
Sec. 143. Minnesota Statutes 1982, section 176.285, is
amended to read:
176.285 [SERVICE OF PAPERS AND NOTICES.]
Service of papers and notices shall be by mail or by such
other means otherwise as the commissioner of the department of
labor and industry directs or the chief hearing examiner may by
rule direct. Where service is by mail, service is effected at
the time mailed if properly addressed and stamped. If it is so
mailed, it is presumed the paper or notice reached the party to
be served. However, a party may show by competent evidence that
he that party did not receive it or that it had been delayed in
transit for an unusual or unreasonable period of time. In case
of such nonreceipt or delay, an allowance shall be made for the
party's failure to assert a right within the prescribed time.
The commissioner of the department of labor and industry
and the chief hearing examiner shall keep a careful record of
each service including the time when made ensure that proof of
service of all papers and notices served by their respective
agencies is placed in the official file of the case.
Sec. 144. [176.312] [AFFIDAVIT OF PREJUDICE.]
An affidavit of prejudice for cause may be filed by a party
to the claim against a compensation judge, in the same manner as
an affidavit of prejudice is filed pursuant to law or rule of
district court. The filing of an affidavit of prejudice against
a compensation judge has the same effect and shall be treated in
the same manner as in district court.
Sec. 145. Minnesota Statutes 1982, section 176.321,
subdivision 1, is amended to read:
Subdivision 1. [FILING, SERVICE.] Within twenty 20 days
after he has been served with a copy service of the petition, an
adverse party may shall serve and file a verified an answer to
the petition. When he files the answer, The party shall also
serve a copy of the answer on the petitioner or his the
petitioner's attorney.
Within five days after he has been served with a copy of
the answer, the petitioner may file a verified reply admitting
or denying new matter set forth in the answer.
Sec. 146. Minnesota Statutes 1982, section 176.331, is
amended to read:
176.331 [AWARD BY DEFAULT.]
Where If an adverse party has failed fails to file and
serve an answer, if and the petitioner presents proof of such
this fact, the commissioner or compensation judge shall may
enter whatever award or order to which the petitioner is
entitled on the basis of the facts alleged in the petition, but
the compensation judge may require proof of an alleged fact. If
the commissioner requires such proof, he the commissioner shall
request the chief hearing examiner to assign the matter to a
compensation judge to summarily hear and determine the same for
an immediate hearing and to promptly make an prompt award or
other order.
Where in such a default case the petition does not state
facts sufficient to support an award, the compensation judge
shall give the petitioner or his the petitioner's attorney
written notice of this deficiency. The petitioner may thereupon
serve and file another petition as in the case of an original
petition.
Sec. 147. Minnesota Statutes 1982, section 176.341, is
amended to read:
176.341 [HEARING ON PETITION.]
Subdivision 1. [TIME.] When the reply has been filed or
the time has expired in which to file a reply Upon receipt of a
matter from the commissioner, the chief hearing examiner shall
fix a time and place for hearing the petition. The hearing
shall be held as soon as practicable and at a time and place
determined by the chief hearing examiner to be the most
convenient for the parties, keeping in mind the intent of
chapter 176 as expressed in section 176.001 and the requirements
of section 176.306.
Subd. 2. [PLACE.] Unless otherwise ordered by the
commissioner of the department of labor and industry or
compensation judge chief hearing examiner, the hearing shall be
held in the county where the injury or death occurred.
Subd. 3. [NOTICE MAILED TO EACH PARTY.] At least five 30
days prior to the date of hearing, the workers' compensation
division chief hearing examiner shall mail a notice of the time
and place of hearing to each interested party. This subdivision
does not apply to hearings which have been continued from an
earlier date. In those cases, the notice shall be given in a
manner deemed appropriate by the chief hearing examiner after
considering the particular circumstances in each case.
Sec. 148. Minnesota Statutes 1982, section 176.361, is
amended to read:
176.361 [INTERVENTION.]
Where A person who has an interest in any matter before the
workers' compensation court of appeals, or commissioner, or
compensation judge of such a character that he the person may
either gain or lose by an order or decision, he may intervene in
the proceeding by filing an application in writing stating the
facts which show such the interest.
The commissioner of the department of labor and industry
and workers' compensation court of appeals shall adopt rules to
govern the procedure for intervention.
If the department of public welfare or the department of
economic security seeks to intervene in any matter before the
division, a compensation judge or the workers' compensation
court of appeals, a nonattorney employee of the department,
acting at the direction of the staff of the attorney general,
may prepare, sign, serve and file motions for intervention and
related documents and appear at prehearing conferences. This
activity shall not be considered to be the unauthorized practice
of law.
Sec. 149. Minnesota Statutes 1982, section 176.371, is
amended to read:
176.371 [AWARD OR DISALLOWANCE OF COMPENSATION.]
The compensation judge to whom a petition has been assigned
for hearing, shall hear all competent, relevant evidence
produced at the hearing, and, as soon after the hearing as
possible, make findings of fact, conclusions of law,. All
questions of fact and law submitted to a compensation judge at
the hearing shall be disposed of and the judge's decision shall
be filed with the commissioner within 60 days after the
submission, unless sickness or casualty prevents a timely
filing, or the time is extended by written consent of the
parties, or the chief hearing examiner extends the time for good
cause. The compensation judge's decision shall include a
determination of all contested issues of fact and law and an
award or disallowance of compensation or other order as the
pleadings, evidence, this chapter and rule require. A
compensation judge's decision shall include a memorandum only if
necessary to delineate the reasons for the decision or to
discuss the credibility of witnesses. A memorandum shall not
contain a recitation of the evidence presented at the hearing
but shall be limited to the compensation judge's basis for the
decision.
No part of the salary of a compensation judge shall be paid
unless the chief hearing examiner determines that all decisions
of that judge have been issued within the time limit prescribed
by this section.
Sec. 150. Minnesota Statutes 1982, section 176.421,
subdivision 3, is amended to read:
Subd. 3. [NOTICE OF APPEAL.] The appellant or his the
appellant's attorney shall prepare and sign a written notice of
appeal specifying:
(1) the order appealed from;
(2) that appellant appeals from the order to the workers'
compensation court of appeals;
(3) the particular finding of fact or conclusion of law
which he the appellant claims was unwarranted by the evidence or
procured by fraud, coercion, or other improper conduct; and
(4) the testimony or other part of the record of the
hearing necessary to be transcribed in order for the court of
appeals to consider the appeal; and,
(5) any other ground upon which the appeal is taken.
An appeal initiates the preparation of a typewritten
transcript of the entire record unless the appeal is solely from
an award of attorney's fees or an award of costs and
disbursements or unless otherwise ordered by the court of
appeals. On appeals from an award of attorney's fees or an
award of costs and disbursements, the appellant must
specifically delineate in the notice of appeal the portions of
the record to be transcribed in order for the court of appeals
to consider the appeal.
Sec. 151. Minnesota Statutes 1982, section 176.421,
subdivision 4, is amended to read:
Subd. 4. [SERVICE AND FILING OF NOTICE; COST OF
TRANSCRIPT.] Within the 30-day period for taking an appeal, the
appellant shall:
(1) serve a copy of the notice of appeal on each adverse
party;
(2) file the original notice, with proof of service by
admission or affidavit, with the chief hearing examiner and file
a copy with the commissioner;
(3) in order to defray the cost of the preparation of the
record of the proceedings appealed from, pay to the state
treasurer, office of administrative hearings account the sum of
$25; and
(4) Submit a request that the chief hearing examiner order
the preparation of a transcript of that part of the hearing
delineated in the notice of appeal.
A party who desires a transcript of more of the hearing
than has been requested by the appellant shall, within five
working days of service of the notice of appeal, make a request
of the chief hearing examiner that the additional testimony be
transcribed.
The first party requesting the preparation of the
transcript or any part to file an appeal is liable for the
original cost of preparation of the transcript. Cross-appellants
or any other persons requesting a copy of the transcript are
liable for the cost of the copy. The cost of a transcript
prepared by a nongovernmental source shall be paid directly to
that source and shall not exceed the cost that the source would
be able to charge the state for the same service.
Upon a showing of cause, the chief hearing examiner may
direct that a transcript be prepared without expense to the
party requesting its preparation, in which case the cost of the
transcript shall be paid by the office of administrative
hearings.
All fees received by the office of administrative hearings
for the preparation of the record for submission to the workers'
compensation court of appeals or for the cost of transcripts
prepared by the office shall be deposited in the office of
administrative hearings account in the state treasury and shall
be used solely for the purpose of keeping the record of hearings
conducted under this chapter and the preparation of transcripts
of those hearings.
Sec. 152. Minnesota Statutes 1982, section 176.421,
subdivision 6, is amended to read:
Subd. 6. [POWERS OF WORKERS' COMPENSATION COURT OF APPEALS
ON APPEAL.] On an appeal taken under this section, the workers'
compensation court of appeals appeals' review is limited to the
issues raised by the parties in the notice of appeal or by a
cross-appeal. In these cases, on those issues raised by the
appeal, the workers' compensation court of appeals may:
(1) disregard the findings of fact which the compensation
judge has made;
(2) examine the record;
(3) substitute for the findings of fact made by the
compensation judge such findings as based on the total evidence
requires; and,
(4) make an award or disallowance of compensation or other
order as based on the facts and findings require.
Sec. 153. Minnesota Statutes 1982, section 176.421,
subdivision 7, is amended to read:
Subd. 7. [RECORD OF PROCEEDINGS.] At the division's own
expense, the commissioner shall make a complete record of all
proceedings before himself. the commissioner and shall provide a
stenographer or an audio magnetic recording device to make a the
record of the proceedings before him.
The commissioner shall furnish a transcript of these
proceedings to any person who requests it and who pays a
reasonable charge and shall fix the amount of this charge which
shall be set by the commissioner. Upon a showing of cause, the
commissioner may direct that a transcript be prepared without
expense to the person requesting the transcript, in which case
the cost of the transcript shall be paid by the division.
Transcript fees received under this subdivision shall be paid to
the workers' compensation division account in the state treasury
and shall be annually appropriated to the division for the sole
purpose of providing a record and transcripts as provided in
this subdivision.
Sec. 154. Minnesota Statutes 1982, section 176.442, is
amended to read:
176.442 [APPEALS FROM DECISIONS OF COMMISSIONER OF
DEPARTMENT OF LABOR AND INDUSTRY.]
Any decision or determination of the commissioner of the
department of labor and industry affecting a right, privilege,
benefit, or duty which is imposed or conferred under this
chapter is subject to review by the workers' compensation court
of appeals. A person aggrieved by such the determination may
appeal to the workers' compensation court of appeals by filing a
notice of appeal with the commissioner in the same manner and
within the same time as if the appeal were from an order or
decision of a compensation judge to the workers' compensation
court of appeals.
Sec. 155. Minnesota Statutes 1982, section 176.461, is
amended to read:
176.461 [SETTING ASIDE AWARD.]
Except where when a writ of certiorari has been issued by
the supreme court and the matter is still pending in that court
or where if as a matter of law the determination of the supreme
court cannot be subsequently modified, the workers' compensation
court of appeals, for cause, at any time after an award, upon
application of either party and not less than five working days
after written notice to all interested parties, may set the
award aside and grant a new hearing and refer the matter for a
determination on its merits to the chief hearing examiner for
assignment to a compensation judge, who shall make such findings
of fact, conclusions of law, and an order of award or
disallowance of compensation or other order as based on the
pleadings and the evidence produced and as required by the
provisions of this chapter shall require or rules adopted under
it.
Sec. 156. Minnesota Statutes 1982, section 176.521,
subdivision 2, is amended to read:
Subd. 2. [APPROVAL.] Settlements shall be approved only
where if the terms conform with this chapter.
The division, a compensation judge, the workers'
compensation court of appeals, and the district court shall
exercise discretion in approving or disapproving a proposed
settlement.
The parties to the agreement of settlement have the burden
of proving that the settlement is reasonable, fair, and in
conformity with this chapter. A settlement agreement where both
the employee or his the employee's dependent and the employer or
insurer and intervenors in the matter are represented by an
attorney shall be conclusively presumed to be reasonable, fair,
and in conformity with this chapter except when the settlement
purports to be a full, final, and complete settlement of an
employee's right to medical compensation under this chapter or
rehabilitation under section 176.102. A settlement which
purports to do so must be approved by the division, a
compensation judge, or workers' compensation court of appeals.
The conclusive presumption in this subdivision applies to a
settlement agreement entered into on or after January 15, 1982,
whether the injury to which the settlement applies occurred
prior to or on or after January 15, 1982.
Sec. 157. Minnesota Statutes 1982, section 176.521,
subdivision 2a, is amended to read:
Subd. 2a. [SETTLEMENTS NOT SUBJECT TO APPROVAL.] When a
settled case is not subject to approval, upon receipt of the
stipulation for settlement, a compensation judge or, a
settlement judge, or the workers' compensation court of appeals
shall immediately sign the award and file it with the
commissioner. Payment pursuant to the award shall be made
within 14 days after it is filed with the commissioner. The
commissioner may correct mathematical or clerical errors at any
time.
Sec. 158. Minnesota Statutes 1982, section 176.521,
subdivision 3, is amended to read:
Subd. 3. [SETTING ASIDE AWARD UPON SETTLEMENT.]
Notwithstanding the provisions of section 176.521, subdivision
1, 2, or 2a, or any provision in the agreement of settlement to
the contrary, upon the filing of a petition by any party to the
settlement and after a hearing on the petition, the workers'
compensation court of appeals may set aside an award made upon a
settlement, pursuant to this chapter. In those cases, the
workers' compensation court of appeals shall refer the matter to
the chief hearing examiner for assignment to a compensation
judge for hearing.
Sec. 159. [176.522] [NOTICE TO EMPLOYER.]
An employer shall be notified by the insurer 30 days after
any final valid settlement is approved or otherwise made final
under any provision of this chapter. The notice shall include
all terms of the settlement including the total amount of money
required to be reserved in order to pay the claim.
Sec. 160. Minnesota Statutes 1982, section 176.561, is
amended to read:
176.561 [WORKERS' COMPENSATION COURT OF APPEALS POWERS AND
DUTIES AS TO STATE EMPLOYEES; PROCEDURE FOR DETERMINING
LIABILITY.]
The division, a compensation judge and the workers'
compensation court of appeals have the same powers and duties in
matters relating to state employees as they have in relation to
other employees.
Except as specifically provided otherwise herein in this
chapter, the procedure for determining the liability of the
state for compensation is the same as that applicable in other
cases.
Sec. 161. Minnesota Statutes 1982, section 176.571,
subdivision 6, is amended to read:
Subd. 6. [FORMAL HEARING ON OBJECTIONS.] If the
commissioner of the department of labor and industry shall hold
determines that a formal hearing on the objections which have
been filed to the proposed order where the circumstances warrant
such is warranted, the commissioner shall refer the matter to
the chief hearing examiner for the assignment of a compensation
judge who shall hold a hearing. The hearing shall be before a
compensation judge.
Sec. 162. [176.572] [CONTRACT WITH INSURANCE CARRIERS.]
The commissioner may contract with group health insurance
carriers or health maintenance organizations to provide health
care services and reimburse health care payments for injured
state employees entitled to benefits under this chapter.
Sec. 163. Minnesota Statutes 1982, section 176.66, is
amended by adding a subdivision to read:
Subd. 10. [MULTIPLE EMPLOYERS OR INSURERS; LIABILITY.] The
employer liable for the compensation for a personal injury under
this chapter is the employer in whose employment the employee
was last exposed in a significant way to the hazard of the
occupational disease. In the event that the employer who is
liable for the compensation had multiple insurers during the
employee's term of employment, the insurer who was on the risk
during the employee's last significant exposure to the hazard of
the occupational disease is the liable party. Where there is a
dispute as to which employer is liable under this section, the
employer in whose employment the employee is last exposed to the
hazard of the occupational disease shall pay benefits pursuant
to section 176.191, subdivision 1.
Sec. 164. Minnesota Statutes 1982, section 176.66, is
amended by adding a subdivision to read:
Subd. 11. [AMOUNT OF COMPENSATION.] The compensation for
an occupational disease is 66-2/3 percent of the employee's
weekly wage on the date of injury subject to a maximum
compensation equal to the maximum compensation in effect on the
date of last exposure. The employee shall be immediately
eligible for supplementary benefits if that employee's
compensation is less than 65 percent of the statewide average
weekly wage.
Sec. 165. [176.83] [RULES.]
In addition to any other section under this chapter giving
the commissioner the authority to adopt rules, the commissioner
may adopt, amend, or repeal rules to implement the provisions of
this chapter. The rules include but are not limited to:
(a) rules necessary to implement and administer section
176.102, including the establishment of qualifications necessary
to be a qualified rehabilitation consultant and the requirements
to be an approved registered vendor of rehabilitation services.
In this regard, the commissioner shall impose fees under
section 16A.128 sufficient to cover the cost of approving,
registering and monitoring qualified rehabilitation consultants
and approved vendors of rehabilitation services. The rules may
also provide for penalties to be imposed by the commissioner
against insurers or self-insured employers who fail to provide
rehabilitation consultation to employees pursuant to section
176.102.
These rules may also establish criteria for determining
"reasonable moving expenses" under section 176.102.
The rules shall also establish criteria, guidelines,
methods, or procedures to be met by an employer or insurer in
providing the initial rehabilitation consultation required under
this chapter which would permit the initial consultation to be
provided by an individual other than a qualified rehabilitation
consultant. In the absence of rules regarding an initial
consultation this consultation shall be conducted pursuant to
section 176.102;
(b) rules establishing standards for reviewing and
evaluating the clinical consequences of services provided by
qualified rehabilitation consultants, approved registered
vendors of rehabilitation services, and services provided to an
employee by health care providers;
(c) rules establishing standards and procedures for
determining whether or not charges for health services or
rehabilitation services rendered under this chapter are
excessive. In this regard, the standards and procedures shall
be structured to determine what is necessary to encourage
providers of health services and rehabilitation services to
develop and deliver services for the rehabilitation of injured
employees.
The procedures shall include standards for evaluating
hospital care, other health care and rehabilitation services to
insure that quality hospital, other health care, and
rehabilitation is available and is provided to injured employees;
(d) in consultation with the medical services review board
or the rehabilitation review panel, rules establishing standards
and procedures for determining whether a provider of health care
services and rehabilitation services, including a provider of
medical, chiropractic, podiatric, surgical, hospital or other
services, is performing procedures or providing services at a
level or with a frequency that is excessive, based upon accepted
medical standards for quality health care and accepted
rehabilitation standards.
If it is determined by the commissioner that the level,
frequency or cost of a procedure or service of a provider is
excessive according to the standards established by the rules,
the provider shall not be paid for the excessive procedure,
service, or cost by an insurer, self-insurer, or group
self-insurer. In addition, the provider shall not be reimbursed
or attempt to collect reimbursement for the excessive procedure,
service, or cost from any other source, including the employee,
another insurer, the special compensation fund, or any
government program.
A health or rehabilitation provider who is determined by
the commissioner to be consistently performing procedures or
providing services at an excessive level or cost may be
prohibited from receiving any further reimbursement for
procedures or services provided under chapter 176. A
prohibition imposed on a provider under this clause may be
grounds for revocation or suspension of the provider's license
or certificate of registration to provide health care or
rehabilitation service in Minnesota by the appropriate licensing
or certifying body.
The rules adopted under this clause shall require insurers,
self-insurers, and group self-insurers to report medical and
other data necessary to implement the procedures required by
this clause;
(e) rules establishing procedures and standards for the
certification of physicians, chiropractors, podiatrists, and
other health care providers in order to assure the coordination
of treatment, rehabilitation, and other services and
requirements of chapter 176 for carrying out the purposes and
intent of this chapter;
(f) rules necessary for implementing and administering the
provisions of sections 176.131, 176.132, 176.134, sections
176.242 and 176.243; sections 176.251, 176.66 to 176.669, and
rules regarding proper allocation of compensation under section
176.111. Under the rules adopted under section 176.111 a party
may petition for a hearing before a compensation judge to
determine the proper allocation. In this case the compensation
judge may order a different allocation than prescribed by rule;
(g) rules establishing standards or criteria under which a
physician, podiatrist, or chiropractor is selected or under
which a change of physician, podiatrist, or chiropractor is
allowed under section 176.135, subdivision 2;
(h) rules to govern the procedure for intervention pursuant
to section 176.361;
(i) joint rules with either or both the workers'
compensation court of appeals and the chief hearing examiner
which may be necessary in order to provide for the orderly
processing of claims or petitions made or filed pursuant to
chapter 176;
(j) rules establishing criteria to be used by the division,
compensation judge, and workers' compensation court of appeals
to determine "suitable gainful employment" and "independent
contractor."
The chief hearing examiner shall adopt rules relating to
procedures in matters pending before a compensation judge in the
office of administrative hearings.
The commissioner may adopt rules regarding requirements
which must be met by individuals who are employed by insurers or
self-insurers or claims servicing or adjusting agencies and who
work as claims adjusters in the field of workers' compensation
insurance.
The commissioner may adopt temporary rules establishing
qualifications necessary to be a qualified rehabilitation
consultant and penalties to be imposed against qualified
rehabilitation consultants or approved vendors who violate this
chapter or rules, including temporary rules, adopted under this
chapter. In addition to the provisions of sections 14.29 to
14.36, at least one public hearing shall be held prior to the
adoption of these temporary rules.
The commissioner may prescribe forms and other reporting
procedures to be used by an employer, insurer, medical provider,
qualified rehabilitation consultant, approved vendor of
rehabilitation services, attorney, employee, or other person
subject to the provisions of this chapter.
Sec. 166. [176.84] [SPECIFICITY OF NOTICE OR STATEMENT.]
All notices or statements required by this chapter
including, but not limited to, notices or statements pursuant to
sections 176.102; 176.221; 176.241; 176.242; and 176.243 shall
be sufficiently specific to convey clearly, without further
inquiry, the basis upon which the party issuing the notice or
statement is acting. If the commissioner or compensation judge
determines that a notice or statement is not sufficiently
specific to meet the standard under this section, the notice or
statement may be rejected as unacceptable and the party issuing
it shall be informed of this. The rejected notice or statement
may be amended to meet the requirement of this section or a new
one may be filed.
Sec. 167. [176.85] [PENALTIES; APPEALS.]
Subdivision 1. [APPEAL PROCEDURE.] If the commissioner has
assessed a penalty against a party subject to this chapter and
the party believes the penalty is not warranted, the party may
request that a formal hearing be held on the matter. Upon a
request for a hearing the commissioner shall refer the matter to
the chief hearing examiner for assignment to a compensation
judge or hearing examiner.
The chief hearing examiner shall keep a record of the
proceeding and provide a record pursuant to section 176.421.
The decision of the compensation judge or hearing examiner
shall be final and shall be binding and enforceable. The
decision may be appealed to the workers' compensation court of
appeals.
Subd. 2. [EXCEPTION.] This section does not apply to
penalties for which another appeal procedure is provided,
including but not limited to penalties imposed pursuant to
section 176.102 or section 84.
Subd. 3. [HEARING COSTS.] For purposes of this section, a
hearing before a hearing examiner shall be treated in the same
manner as a hearing before a compensation judge and no costs may
be charged to the commissioner for the hearing, regardless of
who hears it.
Sec. 168. Minnesota Statutes 1982, section 268.08,
subdivision 3, is amended to read:
Subd. 3. [NOT ELIGIBLE.] An individual shall not be
eligible to receive benefits for any week with respect to which
he is receiving, has received, or has filed a claim for
remuneration in an amount equal to or in excess of his weekly
benefit amount in the form of
(1) termination, severance, or dismissal payment or wages
in lieu of notice whether legally required or not; provided that
if a termination, severance, or dismissal payment is made in a
lump sum, the employer may allocate such lump sum payment over a
period equal to the lump sum divided by the employee's regular
pay while employed by such employer; provided any such payment
shall be applied for a period immediately following the last day
of work but not to exceed 28 calendar days; or
(2) vacation allowance paid directly by the employer for a
period of requested vacation, including vacation periods
assigned by the employer under the provisions of a collective
bargaining agreement, or uniform vacation shutdown; or
(3) compensation for loss of wages under the workers'
compensation law of this state or any other state or under a
similar law of the United States, or under other insurance or
fund established and paid for by the employer except that this
does not apply to an individual who is receiving temporary
partial compensation pursuant to section 176.101, subdivision 3k;
or
(4) 50 percent of the pension payments from any fund,
annuity or insurance maintained or contributed to by a base
period employer including the armed forces of the United States
if the employee contributed to the fund, annuity or insurance
and all of the pension payments if the employee did not
contribute to the fund, annuity or insurance; or
(5) 50 percent of a primary insurance benefit under title
II of the Social Security Act as amended, or similar old age
benefits under any act of congress or this state or any other
state.
Provided, that if such remuneration is less than the
benefits which would otherwise be due under sections 268.03 to
268.24, he shall be entitled to receive for such week, if
otherwise eligible, benefits reduced by the amount of such
remuneration; provided, further, that if the appropriate agency
of such other state or the federal government finally determines
that he is not entitled to such benefits, this provision shall
not apply.
Sec. 169. Minnesota Statutes 1982, section 471.982,
subdivision 2, is amended to read:
Subd. 2. The commissioner of insurance is authorized to
promulgate adopt administrative rules, including emergency rules
pursuant to sections 14.01 to 14.70. These rules may provide
standards or guidelines governing the formation, operation,
administration, dissolution of self insurance pools, and other
reasonable requirements to further the purpose of this section
and. In developing the rules under this section, the
commissioner shall at a minimum require consider the following:
(a) The requirements for self-insuring pools of political
subdivisions shall be no more restrictive and may be less
restrictive than the requirements for self-insuring pools of
private employers;
(b) All participants in the pool are jointly and severally
liable for all claims and expenses of the pool;
(b) (c) Each pool shall contract with a service company
licensed by the commissioner to provide or contract for all
administrative services required by the pool. No vendor of risk
management services or entity administering a self insurance
plan under this section may transact such business in this state
unless it is licensed to do so by the commissioner. An
applicant for a license shall state in writing the type of
activities it seeks authorization to engage in and the type of
services it seeks authorization to provide. The license shall
be granted only when the commissioner is satisfied that the
entity possesses the necessary organization, background,
expertise, and financial integrity to supply the services sought
to be offered. The commissioner may issue a license subject to
restrictions or limitations upon the authorization, including
the type of services which may be supplied or the activities
which may be engaged in. The license fee shall be $100. All
licenses shall be for a period of two years;
(c) (d) The service company has sole responsibility for the
settlement of all claims against the pool or its members for
which the pool may provide indemnification;
(d) (e) A minimum premium volume for each pool shall be
established. The minimum premium volume may differ because of
the kinds of coverage provided, and the limits of liability for
the coverage;
(e) (f) All premiums or other assessments due to the pool
from members shall be payable prior to the period for which
coverage is being provided, or at equal intervals throughout the
period;
(f) (g) Premiums shall either be established by an actuary
approved by the commissioner or shall be premiums filed by a
licensed rate service organization with reductions permitted
solely for administrative or premium tax savings neither
excessive, inadequate, nor unfairly discriminatory;
(g) (h) The commissioner may require each pool to purchase
excess insurance above certain limits and in a particular form.
The limits or form of the excess insurance may differ based on
the kinds of coverage offered by a pool, the limits of liability
of the coverage, and the revenues available to pool members for
the payment of premiums or assessments;
(h) (i) Each pool shall be audited annually by a certified
public accountant;
(i) (j) Whether limitations on the payment of dividends to
pool members may be established as are necessary to assure the
solvency of the pool in view of the taxing and levying authority
of political subdivisions;
(j) (k) No participant may withdraw from a pool for a
period of at least three years after its initial entry into the
pool;
(k) (l) The amount of any liabilities in excess of assets
shall be assessed to members of the pool within 30 days after a
deficiency is identified and shall be payable by the member
within 90 days;
(l) (m) The investment policies of the pool shall be
governed by the laws governing investments by cities pursuant to
section 475.66;
(m) (n) Pools shall be subject to the standards of unfair
methods of competition and unfair or deceptive acts or practices
established in chapter 72A;
(n) (o) Other requirements that are necessary to protect
the solvency of the pool, the rights and privileges of claimants
against the pool, and citizens of the members of the pool shall
be included in the rules.
Sec. 170. Minnesota Statutes 1982, section 471.982, is
amended by adding a subdivision to read:
Subd. 3. Self-insurance pools established and open for
enrollment on a statewide basis by the Minnesota league of
cities insurance trust, the Minnesota school boards association
insurance trust or the Minnesota association of counties
insurance trust are exempt from the requirements of this section.
Sec. 171. [CITY OF DULUTH; GROUP WORKER'S COMPENSATION
SELF-INSURANCE POOLS.]
Subdivision 1. [FORMATION OF POOLS WITH PRIVATE
EMPLOYERS.] Notwithstanding any contrary provision of other law,
ordinance, or charter, the city of Duluth may enter into a self-
insurance pool with private employers to self-insure worker's
compensation liability of pool members. Any pool formed
pursuant to this section shall be operated under bylaws
established by members of the pool. The initial bylaws and
amendments to them shall not be effective unless approved by the
city of Duluth and the commissioner of insurance. The bylaws
shall address the following subjects:
(a) Qualifications for group self-insurer membership,
including underwriting standards.
(b) The method of selecting the board of directors,
including the directors' terms of office.
(c) The procedure for amending the bylaws or plan of
operation.
(d) Investment of assets of the fund.
(e) Frequency and extent of loss control or safety
engineering services provided to members.
(f) A schedule for payment and collection of premiums.
(g) Expulsion procedures, including expulsion for
nonpayment of premiums and expulsion for excessive losses.
(h) Delineation of authority granted to the administrator.
(i) Delineation of authority granted to the service company.
(j) Basis for determining premium contributions by members
including any experience rating program.
(k) Procedures for resolving disputes between members of
the group, which shall not include submitting them to the
commissioner.
(l) Basis for determining distribution of any surplus to
the members, or assessing the membership to make up any deficit.
(m) Provisions for security to be furnished by private
employers to insure assessments are paid in case of private
employer insolvency.
The members participating in the pool may establish a joint
board with appropriate powers to manage the pool. Each member
of the pool shall pay to the pool the amounts assessed against
it pursuant to the bylaws. A member may withdraw only after it
has reimbursed the pool for the amounts for which it is
obligated under the terms of the agreement.
Subd. 2. [APPROVAL OF COMMISSIONER.] A pool formed
pursuant to this section shall not be effective or begin
operation until it has been approved by the commissioner of
insurance in the manner provided in Minnesota Statutes, section
471.982. Section 471.982 and any applicable rules adopted
pursuant to it shall apply to any pool formed pursuant to this
section. A pool formed pursuant to this section shall be a
member of the workers' compensation reinsurance association and
shall be bound by its plan of operation.
Sec. 172. [APPROPRIATIONS; COMPLEMENT INCREASE.]
Subdivision 1. [DEPARTMENT OF LABOR AND INDUSTRY.] (a)
There is appropriated to the department of labor and industry
for the fiscal years ending June 30 of the year indicated from
the general fund in the state treasury:
1984 1985
$1,947,500 $2,142,400
The approved complement of the department of labor and
industry is increased by 90 of which two shall be federally
funded and 19 shall be from the special compensation fund. The
increased complement shall be allocated as follows:
(1) workers' compensation administration, 1;
(2) records and compliance, 15;
(3) rehabilitation service, 20;
(4) legal services, 1;
(5) settlement and docket, 3;
(6) mediation and arbitration, 6;
(7) research and education, 8;
(8) information management service, 6;
(9) state employee fund, 6;
(10) general support, 8; and
(11) special compensation fund, 19.
The appropriation provided by this clause (a) is for the
purpose of paying for the increased general fund complement and
expenses related to their duties except that $100,000 shall be
used for the recodification of chapter 176.
The authorized complement for the records and compliance
section shall be reduced by four positions by June 30, 1985.
(b) There is appropriated to the department of labor and
industry for the fisal years ending June 30 of the year
indicated from the general fund in the state treasury:
1984 1985
$437,500 $875,000
The appropriation provided by this clause (b) is for the
purpose of paying the state's premium to the workers'
compensation reinsurance association. The commissioner of
finance shall transfer to the general fund from each federal
fund, dedicated or special revenue fund, or revolving fund the
proportion of premium costs attributable to that fund as
calculated pursuant to section 10. The amounts necessary for
this transfer are appropriated from the various funds in the
state treasury from which salaries are paid.
(c) There is appropriated to the department of labor and
industry for the fiscal years ending June 30 of the year
indicated from the special compensation fund in the state
treasury:
1984 1985
$614,000 $646,400
The funds appropriated by this clause (c) are to pay the
expenses of the increased complement provided for the fund by
clause (a) and expenses related to their duties and to reimburse
the general fund for legal services performed on behalf of the
fund by the attorney general.
Subd. 2. [OFFICE OF ADMINISTRATIVE HEARINGS.] There is
appropriated to the office of administrative hearings for the
fiscal years ending June 30 of the year indicated from the
general fund in the state treasury:
1984 1985
$85,400 $86,300
The approved complement of the office of administrative
hearings is increased by two. The appropriation provided by
this subdivision is for the purpose of paying for the increased
complement and expenses related to their duties.
Subd. 3. [INSURANCE DIVISION.] There is appropriated to
the department of commerce for its insurance division for the
fiscal years ending June 30 of the year indicated from the
general fund in the state treasury:
1984 1985
$230,800 $229,100
The approved complement of the insurance division of the
department of commerce is increased by seven. The appropriation
provided by this subdivision is for the purpose of paying for
the increased complement and expense related to their duties.
Subd. 4. [ATTORNEY GENERAL.] There is appropriated to the
office of the attorney general for the fiscal years ending June
30 of the year indicated from the general fund in the state
treasury:
1984 1985
$201,500 $204,900
The approved complement of the office of attorney general
is increased by six. The appropriation provided by this
subdivision is for the purpose of providing for the increased
complement and expenses related to their duties.
Sec. 173. [REPEALER.]
Minnesota Statutes 1982, sections 8.31, subdivision 4;
79.51, subdivision 2; and 79.63 are repealed effective July 1,
1983. Minnesota Statutes 1982, sections 175.07; 175.101,
subdivision 3; 175.36; 176.101, subdivision 3; 176.102,
subdivision 12; 176.131, subdivisions 9, 10, 11, and 12;
176.152; and 176.262 are repealed effective January 1, 1984.
Sec. 174. [SEVERABILITY.]
If any provision of this act is found to be
unconstitutional and void, the remaining provisions of the act
shall remain valid, unless the court finds the valid provisions
of the article are so essentially and inseparably connected
with, and so dependent upon, the void provisions that the court
cannot presume the legislature would have enacted the remaining
valid provisions without the void one; or unless the court finds
the remaining valid provisions, standing alone, are incomplete
and are incapable of being executed in accordance with the
legislative intent.
Sec. 175. [SMALL BUSINESS PREMIUM COST STUDY.]
The commissioner shall conduct a study on the effect of
sections 44 to 64 on small businesses located in Minnesota,
including to what extent benefits payable pursuant thereto
affect small businesses' workers' compensation insurance premium
costs. The commissioner shall report to the legislature by
January 30, 1985.
Sec. 176. [EFFECTIVE DATE.]
Sections 1 to 6, 12, 14, 19 to 25, 28, 32, 35 to 41, 69 to
83, 85, section 86, except for section 86, clause (c) which is
effective upon the adoption of temporary rules under section 86,
92, 95, 97 to 101, 110 to 129, except for those portions of
section 129, subdivision 6a relating to economic recovery
compensation and impairment compensation which are effective
upon the adoption of temporary rules under section 86, 130 to
162, 165 to 167, 169 to 172, and 174 are effective July 1,
1983. Sections 8, 17, 18, 26, 27, 31, 34, 84, 87 to 91, 103 to
109, 163 and 164 are effective October 1, 1983. Sections 7, 9,
10, 11, 13, 68, and 93 are effective January 1, 1984. Sections
15, 16 and 173 are effective the day after final enactment.
Sections 29, 30, 33, 42 to 67, 94, 96, 102 and 168 are effective
upon adoption of temporary rules under section 86.
Approved June 7, 1983
Official Publication of the State of Minnesota
Revisor of Statutes