Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1987, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1987
CHAPTER 332-H.F.No. 913
An act relating to workers' compensation; providing a
general administrative reform; providing for certain
proceedings to be expedited; providing penalties;
amending Minnesota Statutes 1986, sections 14.48;
175.007, subdivision 1; 175.101, subdivision 2;
176.011, subdivisions 2, 6, 7a, 9, and by adding a
subdivision; 176.041, subdivision 1, 4, and by adding
a subdivision; 176.081, subdivision 2; 176.102,
subdivisions 2, 3, 3a, 4, 6, 8, 10, and 13; 176.103,
subdivisions 2 and 3; 176.111, subdivision 17;
176.129, subdivisions 9, 11, and 13; 176.131,
subdivisions 1 and 8; 176.133; 176.135, subdivisions
1, 1a, 2, 3, and by adding subdivisions; 176.136,
subdivision 2; 176.1361; 176.139; 176.155,
subdivisions 1, 3, and 5; 176.179; 176.181,
subdivision 3; 176.182; 176.183, subdivisions 1a and 2;
176.185, by adding a subdivision; 176.191,
subdivisions 1 and 2; 176.195, subdivision 3, 176.221,
subdivisions 1, 3, and 7; 176.225, subdivisions 1, 2,
and 4; 176.231, subdivisions 2, 10, and by adding a
subdivision; 176.271, subdivision 1; 176.275; 176.291;
176.301, subdivision 1; 176.305, subdivisions 1, 2,
and by adding subdivisions; 176.306, subdivision 1,
and by adding a subdivision; 176.312; 176.321,
subdivisions 2 and 3; 176.331; 176.341, subdivision 3,
and by adding subdivisions; 176.351, subdivision 2a;
176.361, subdivisions 2, 5, and 7; 176.371; 176.411,
subdivision 1; 176.421, subdivision 4, and by adding a
subdivision; 176.442; 176.511, subdivisions 1, 2, and
3; 176.521; 176.541, subdivisions 2, 3, 4, and 6;
176.571, subdivisions 1 and 2; 176.572; 176.581;
176.591, subdivision 3; 176.603; 176.83, subdivisions
5, 7, and 11; 176.84; 176B.02; and 176B.05; proposing
coding for new law in Minnesota Statutes, chapters 60A
and 176; repealing Minnesota Statutes 1986, sections
176.012; 176.101, subdivision 3v; 176.102, subdivision
6a; 176.103, subdivision 4; 176.136, subdivision 4;
176.195, subdivisions 4, 5, and 6; 176.241; 176.242;
176.2421; 176.243; 176.244; 176.271, subdivision 2;
176.501; 176.571, subdivisions 3, 4, 5, 6, and 7; and
176.602.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1986, section 14.48, is
amended to read:
14.48 [CREATION OF OFFICE OF ADMINISTRATIVE HEARINGS; CHIEF
ADMINISTRATIVE LAW JUDGE APPOINTED; OTHER ADMINISTRATIVE LAW
JUDGES APPOINTED.]
A state office of administrative hearings is created. The
office shall be under the direction of a chief administrative
law judge who shall be learned in the law and appointed by the
governor, with the advice and consent of the senate, for a term
ending on June 30 of the sixth calendar year after appointment.
Senate confirmation of the chief administrative law judge shall
be as provided by section 15.066. The chief administrative law
judge may hear cases and shall appoint additional administrative
law judges and compensation judges to serve in the office as
necessary to fulfill the duties prescribed in sections 14.48 to
14.56 and chapter 176. The chief administrative law judge may
delegate to a subordinate employee the exercise of a specified
statutory power or duty as deemed advisable, subject to the
control of the chief administrative law judge. Every delegation
must be by written order filed with the secretary of state. All
administrative law judges and compensation judges shall be in
the classified service except that the chief administrative law
judge shall be in the unclassified service, but may be removed
only for cause. All administrative law judges shall have
demonstrated knowledge of administrative procedures and shall be
free of any political or economic association that would impair
their ability to function officially in a fair and objective
manner. All workers' compensation judges shall be learned in
the law, shall have demonstrated knowledge of workers'
compensation laws and shall be free of any political or economic
association that would impair their ability to function
officially in a fair and objective manner.
Sec. 2. [60A.101] [SELF-INSURERS; DEPOSIT OF SECURITIES.]
Subdivision 1. [REQUIREMENT.] A workers' compensation
self-insurer, except the state and its political subdivisions,
as well as political subdivision self-insurance pools exempted
by sections 471.98 to 471.982 must deposit securities or surety
bonds acceptable to the commissioner of commerce of a value at
least equal to:
(1) 110 percent of its total outstanding workers'
compensation liability provided that the deposit shall be no
less than the retention level selected with the workers'
compensation reinsurance association, for an employer who has
been self-insured for at least two years. The total outstanding
workers' compensation liability incurred must be certified by an
actuary who is a member of the casualty actuarial society one
year after the date of authority to self-insure and every fourth
year thereafter unless requested more frequently by the
commissioner of commerce. Self-insurers authorized to
self-insure on the effective date of this section must provide
this actuarial certification of outstanding liabilities by July
1, 1988, or upon the anniversary of their authority to
self-insure, whichever comes first; or
(2) the greater of the retention level selected with the
workers' compensation reinsurance association, or 70 percent of
the employer's estimated current modified premium as developed
using the rates currently utilized by the Minnesota workers'
compensation assigned risk plan for an employer who has been
self-insured less than two years.
Subd. 2. [SURETY BOND FORM.] The bond shall be in the form
as follows:
"KNOW ALL PERSONS BY THESE PRESENTS: That we, (entity to
be bonded), of (location), (hereinafter called the
"principal(s)"), as principal(s), and (bonding company name), a
(name of state) corporation, of (location) (hereinafter called
the "surety"), as surety, are held and firmly bound unto the
commissioner of commerce of the STATE OF MINNESOTA for the use
and benefit of the employees of the principal(s) and to pay
workers' compensation obligations of the principal(s) in the sum
of (amount in writing), for the payment of which well and truly
to be made, the principal(s) bind themselves, their successors
and assigns, and the surety binds itself and its successors and
assigns, jointly and severally, firmly by these presents.
WHEREAS, in accordance with the provisions of Minnesota
Statutes, section 176.181, the principal(s) has by written order
of the commissioner of commerce of the state of Minnesota been
exempted from insuring their liability for compensation
according to the Minnesota workers' compensation act and have
been permitted by order to self-insure all liability hereafter
arising under the workers' compensation act.
NOW, THEREFORE, the condition of this obligation is such
that if the principal(s) shall, according to the terms,
provisions, and limitations of the Minnesota workers'
compensation act, pay all of the principal's liabilities and
obligations under the act, including all benefits as provided by
the act, then this obligation shall be null and void, otherwise
to remain in full force and effect subject, however, to the
following terms and conditions.
(a) The liability of the surety is limited to the payment
of all legal liabilities and obligations, including payment of
compensation and medical benefits, provided by the workers'
compensation act of Minnesota which are payable by the
principals for or on account of personal injuries or
occupational diseases sustained during or attributable to the
entire period that the bond is in effect, subject to
cancellation, as provided in paragraphs (b) and (e). In no
event shall the total liability of the surety exceed the penal
amount of the bond.
(b) In the event of a default, whenever occurring, on the
part of the principal(s) to abide by any award, order, or
decision directing and awarding payment of such legal
liabilities, obligations, or benefits to or on behalf of any
employee or the dependents of any deceased employee, which
occurred during the period this bond remains in force regardless
of whether this bond has been canceled prior to the making of
the claim or the award, order, or decision, the commissioner of
commerce may, upon 20-days notice to the surety and
opportunity to be heard, require the surety to pay the amount of
the award, order, or decision to be enforced in the same manner
as an award may be enforced against said principal(s).
(c) Service on the surety shall be deemed to be service on
the principals.
(d) This bond shall continue in force from year to year
unless canceled as herein provided. However, the penal amount
of the bond must be revised each year to comply with all
statutory requirements and rules. Regardless of the number of
years this bond remains in force or the number of annual
premiums paid or payable, the total liability of the surety
hereunder may not exceed the penal amount of the bond.
(e) This bond may be canceled at any time by the surety by
giving 60-days notice in writing to the commissioner of commerce
of the state of Minnesota at its offices in the city of St.
Paul, Minnesota, and upon expiration of said 60 days, the
liability of the surety hereunder shall cease, except as to
liability incurred hereunder prior to the expiration of said 60
days, as set out in paragraph (a).
(f) This bond shall become effective at (time of day,
month, day, year).
IN TESTIMONY WHEREOF, said principal(s) and said surety
have caused this instrument to be signed by their respective
duly-authorized officers and their corporate seals to be
hereunto affixed this (day, month, year).
Signed, sealed, and delivered in
the presence of: Corporation Name
............................. By: .................
............................. Bonding Company Name
............................. By: .................
Subd. 3. [DEFINITIONS.] For the purposes of this section,
the terms defined in this subdivision have the meanings given
them.
"Control" means, with respect to a company or organization
authorized to self-insure under Minnesota Statutes, section
176.181, and Minnesota Rules, parts 2780.0100 to 2780.9920:
(1) the ownership of, directly or indirectly, or acting
through one or more other persons, control of or the power to
vote, 25 percent of more of any class of voting securities; and
(2) control in any manner over the election of a majority
of the directors.
Sec. 3. Minnesota Statutes 1986, section 175.007,
subdivision 1, is amended to read:
Subdivision 1. The commissioner shall appoint an advisory
council on workers' compensation, which consists of five
representatives of employers and five representatives of
employees; five nonvoting members representing the general
public; and two persons who have received or are currently
receiving workers' compensation benefits under chapter 176 and
the chairpersons of the rehabilitation review panel and the
medical services review board. The council may consult with any
party it desires. The terms and removal of members shall be as
provided in section 15.059. The council is not subject to
section 15.059, subdivision 5.
Sec. 4. Minnesota Statutes 1986, section 175.101,
subdivision 2, is amended to read:
Subd. 2. The commissioner shall keep a full and true
record of all proceedings of the workers' compensation division,
issue all necessary processes, writs, warrants, and notices
which the division 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.
Sec. 5. Minnesota Statutes 1986, section 176.011,
subdivision 2, is amended to read:
Subd. 2. [CHILD.] "Child" includes a posthumous child, a
child entitled by law to inherit as a child of a deceased
person, a child of a person adjudged by a court of competent
jurisdiction to be the father of the child, and a stepchild,
grandchild, or foster child who was a member of the family of a
deceased employee at the time of injury and dependent upon the
employee for support. A stepchild is a "child" within the
meaning of section 176.041.
Sec. 6. Minnesota Statutes 1986, section 176.011,
subdivision 6, is amended to read:
Subd. 6. (1) "Court of appeals" means the workers'
compensation court of appeals of Minnesota.
(2) "Division" means the workers' compensation division of
the department of labor and industry.
(3) "Department" means the department of labor and industry.
(4) "Commissioner", unless the context clearly indicates
otherwise, means the commissioner of labor and industry.
(5) "Office" means the office of administrative hearings.
Sec. 7. Minnesota Statutes 1986, section 176.011,
subdivision 7a, is amended to read:
Subd. 7a. [COMPENSATION JUDGE.] The title referee as used
in this chapter, relating to workers' compensation is hereby
changed to (1) Compensation judge means a workers' compensation
judge at the office of administrative hearings.
(2) "Calendar judge" means a workers' compensation judge at
the office of administrative hearings.
(3) "Settlement judge" means a compensation judge at the
department of labor and industry. Settlement judges may conduct
settlement conferences, issue summary decisions, approve
settlements and issue awards thereon, determine petitions for
attorney fees and costs, and make other determinations,
decisions, orders, and awards as may be delegated to them by the
commissioner.
Sec. 8. Minnesota Statutes 1986, section 176.011,
subdivision 9, is amended to read:
Subd. 9. [EMPLOYEE.] "Employee" means any person who
performs services for another for hire including the following:
(1) an alien;
(2) a minor;
(3) a sheriff, deputy sheriff, constable, marshal, police
officer, firefighter, county highway engineer, and peace officer
while engaged in the enforcement of peace or in 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 in it. An officer of a political subdivision
elected or appointed for a regular term of office, or to
complete the unexpired portion of a 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), or an executive officer of a
closely held corporation who is referred to in section
176.012 those executive officers excluded by section 176.041;
(7) a voluntary uncompensated worker, other than an inmate,
rendering services in state institutions under the commissioner
of human services 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 human services or the
commissioner of corrections as authorized by law, shall be
employees. 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 of it, 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. 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 state active service, as defined in section
190.05, subdivision 5a. 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. 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. 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 human services for these services, shall be
an employee of the state within the meaning of this subdivision,
but for no other purpose;
(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,
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 this chapter, 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 this chapter;
(17) a faculty member of the University of Minnesota
employed for the current academic year is also an employee for
the period between that academic year and the succeeding
academic year if:
(a) the faculty member has a contract or reasonable
assurance of a contract from the University of Minnesota for the
succeeding academic year; and
(b) the personal injury for which compensation is sought
arises out of and in the course of activities related to the
faculty member's employment by the University of Minnesota; and
(18) a worker who performs volunteer ambulance driver or
attendant services is an employee of the political subdivision,
nonprofit hospital, nonprofit corporation, or other entity for
which the worker performs the services. The daily wage of the
worker for the purpose of calculating compensation payable under
this chapter is the usual going wage paid at the time of injury
or death for similar services if the services are performed by
paid employees; and
(19) a voluntary uncompensated worker, accepted by the
commissioner of administration, rendering services as a
volunteer at the department of administration. 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 were performed by paid employees.
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. 9. Minnesota Statutes 1986, section 176.011, is
amended by adding a subdivision to read:
Subd. 27. [ADMINISTRATIVE CONFERENCE.] An "administrative
conference" is a meeting conducted by a commissioner's designee
where parties can discuss on an expedited basis and in an
informal setting their viewpoints concerning disputed issues
arising under section 176.102, 176.103, 176.135, 176.136, or
176.239. If the parties are unable to resolve the dispute, the
commissioner's designee shall issue an administrative decision
under section 176.106 or section 66.
Sec. 10. Minnesota Statutes 1986, section 176.041,
subdivision 1, is amended to read:
Subdivision 1. [EMPLOYMENTS EXCLUDED.] This chapter does
not apply to any of the following:
(a) a person employed by a common carrier by railroad
engaged in interstate or foreign commerce and who is covered by
the Federal Employers' Liability Act, United States Code, title
45, sections 51 to 60, or other comparable federal law;
to (b) a person employed by a family farm as defined by
section 176.011, subdivision 11a,
or (c) the spouse, parent, and child, regardless of age, of
a farmer-employer working for the farmer-employer;
(d) a sole proprietor, or the spouse, parent, and child,
regardless of age, of a sole proprietor;
to (e) a partner engaged in a farm operation or a partner
engaged in a business and the spouse, parent, and child,
regardless of age, of a partner in the farm operation or
business;
to (f) an executive officer of a family farm corporation;
to (g) an executive officer of a closely held corporation
referred to in section 176.012 having less than 22,880 hours of
payroll in the preceding calendar year, if that executive
officer owns at least 25 percent of the stock of the corporation;
to (h) a spouse, parent, or child, regardless of age, of an
executive officer of a family farm corporation as defined in
section 500.24, subdivision 2, and employed by that family farm
corporation;
to (i) a spouse, parent, or child, regardless of age, of an
executive officer of a closely held corporation referred to in
section 176.012 who is referred to in paragraph (g);
to (j) another farmer or to a member of the other farmer's
family exchanging work with the farmer-employer or family farm
corporation operator in the same community;
to (k) a person whose employment at the time of the injury
is casual and not in the usual course of the trade, business,
profession, or occupation of the employer;
(l) 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 this chapter apply to
(m) an officer or a member of a veterans' organization
whose employment relationship arises solely by virtue of
attending meetings or conventions of the veterans' organization,
unless the veterans' organization elects by resolution to
provide coverage under this chapter for the officer or member.;
Neither does the chapter apply to (n) a person employed as
a household worker in, for, or about a private home or household
who earns less than $1,000 in cash in a three-month period from
a single private home or household provided that a household
worker who has earned $1,000 or more from the household worker's
present employer in a three-month period within the previous
year is covered by this chapter regardless of whether or not the
household worker has earned $1,000 in the present quarter.;
This chapter does not apply to those (o) persons employed
by a closely held corporation if those persons who are related
by blood or marriage, within the third degree of kindred
according to the rules of civil law, to the officers an officer
of the corporation, and who is referred to in paragraph (g), if
the corporation files a written election with the commissioner
to have those persons excluded from this chapter except
that exclude such individuals. 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 (p) a nonprofit association
which does not pay more than $1,000 in salary or wages in a
year.;
This chapter does not apply to (q) persons covered under
the Domestic Volunteer Service Act of 1973, as amended, United
States Code, title 42, sections 5011, et. seq.
Sec. 11. Minnesota Statutes 1986, section 176.041, is
amended by adding a subdivision to read:
Subd. 1a. [ELECTION OF COVERAGE.] The persons,
partnerships and corporations described in this subdivision 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.
A person, partnership, or corporation may charge the
independent contractor a fee for providing the coverage only if
the independent contractor (1) elects in writing to be covered,
(2) is issued an endorsement setting forth the terms of the
coverage, the name of the independent contractors, and the fee
and how it is calculated.
The persons, partnerships and corporations described in
this subdivision 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 subdivision. 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 subdivision 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 subdivision 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
subdivision. An election of coverage under this subdivision
shall continue in effect as long as a policy or renewal policy
of the same insurer is in effect.
Nothing in this subdivision 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. 12. Minnesota Statutes 1986, section 176.041,
subdivision 4, is amended to read:
Subd. 4. [OUT-OF-STATE EMPLOYMENTS.] If an employee who
regularly performs the primary duties of employment outside of
this state or is hired to perform the primary duties of
employment outside of this state, receives an injury within this
state in the employ of the same employer, such injury shall be
covered within the provisions of this chapter if the employee
chooses to forego any workers' compensation claim resulting from
the injury that the employee may have a right to pursue in some
other state, provided that the special compensation fund is not
liable for payment of benefits pursuant to section 176.183 if
the employer is not insured against workers' compensation
liability pursuant to this chapter and the employee is a
nonresident of Minnesota on the date of the personal injury.
Sec. 13. Minnesota Statutes 1986, section 176.081,
subdivision 2, is amended to read:
Subd. 2. An application for attorney fees in excess of the
amount authorized in subdivision 1 shall be made to the division
commissioner, compensation judge, or district judge, before whom
the matter was heard. An appeal of a decision by the
commissioner, 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 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 the hearing served upon known interested
parties. In all cases the employee shall be served with notice
of hearing.
Sec. 14. Minnesota Statutes 1986, section 176.102,
subdivision 2, is amended to read:
Subd. 2. [ADMINISTRATORS.] The commissioner shall hire a
director of rehabilitation services in the classified service.
The commissioner 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 may
hire qualified personnel to assist in the commissioner's duties
under this section and may delegate the duties and performance.
Sec. 15. Minnesota Statutes 1986, section 176.102,
subdivision 3, is amended to read:
Subd. 3. [REVIEW PANEL.] There is created a rehabilitation
review panel composed of the commissioner or a designee, who
shall serve as an ex officio member and two members each from
employers, insurers, rehabilitation, and medicine, one member
representing chiropractors, and four members representing
labor. The members shall be appointed by the commissioner and
shall serve four-year terms which may be renewed. Compensation
for members shall be governed by section 15.0575. The panel
shall select a chair. The panel shall 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) appeals
on any other rehabilitation issue the commissioner determines
under this section; and (c) appeals from orders of the
commissioner regarding fee disputes, penalties, discipline,
certification approval or revocation of registration of
qualified rehabilitation consultants and approved vendors. The
hearings are de novo and initiated by the panel under the
contested case procedures of chapter 14, and are appealable to
the workers' compensation court of appeals in the manner
provided by section 176.421.
Subd. 3a. [DISCIPLINARY ACTIONS.] The panel has authority
to discipline qualified rehabilitation consultants and vendors
and may impose a penalty of up to $1,000 per violation, and may
suspend or revoke certification. Complaints against registered
qualified rehabilitation consultants and vendors shall be made
to the commissioner who shall investigate all complaints. If
the investigation indicates a violation of this chapter or rules
adopted under this chapter, the commissioner may initiate a
contested case proceeding under the provisions of chapter 14.
In these cases, the rehabilitation review panel shall make the
final decision following receipt of the report of an
administrative law judge. The decision of the panel is
appealable to the workers' compensation court of appeals in the
manner provided by section 176.421. The panel shall
continuously study rehabilitation services and delivery and,
develop and recommend rehabilitation rules to the commissioner,
and assist the commissioner in accomplishing public education.
The commissioner may appoint alternates for one-year terms
to serve as a member when a member is unavailable. The number
of alternates shall not exceed one labor member, one employer or
insurer member, and one member representing medicine,
chiropractic, or rehabilitation.
Sec. 16. Minnesota Statutes 1986, section 176.102,
subdivision 3a, is amended to read:
Subd. 3a. 3b. [REVIEW PANEL APPEALS
DETERMINATIONS.] Appeals to the review panel Recommendations
from the administrative law judge following a contested case
hearing shall be heard before determined by a panel of five
members designated by the review panel. Each five-member panel
shall consist of at least one labor member, at least one
employer or insurer member, and at least one member representing
medicine, chiropractic, or rehabilitation. The number of labor
members and employer or insurer members on the five-member panel
shall be equal. 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. The panel may adopt rules of
procedure which may be joint rules with the medical services
review board.
Sec. 17. Minnesota Statutes 1986, section 176.102,
subdivision 4, is amended to read:
Subd. 4. [REHABILITATION PLAN; DEVELOPMENT.] (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.
The qualified rehabilitation consultant appointed by the
employer or insurer shall disclose in writing at the first
meeting or written communication with the employee any ownership
interest or affiliation between the firm which employs the
qualified rehabilitation consultant and the employer, insurer,
adjusting or servicing company, including the nature and extent
of the affiliation or interest.
The consultant shall also disclose to all parties any
affiliation, business referral or other arrangement between the
consultant or the firm employing the consultant and any other
party to the case, including any attorneys, doctors, or
chiropractors.
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. The notification shall include the name, address,
and telephone number of the qualified rehabilitation consultant
chosen by the employee to provide rehabilitation consultation.
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 may choose a different qualified
rehabilitation consultant as follows:
(1) once during the first 60 days following the first
in-person contact between the employee and the original
consultant;
(2) once after the 60-day period referred to in clause (1);
and
(3) subsequent requests shall be determined by the
commissioner or compensation judge according to the best
interests of the parties.
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 or
compensation judge 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 or
compensation judge shall appoint a qualified rehabilitation
consultant to provide the consultation at the expense of the
employer unless the commissioner or compensation judge
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 or compensation judge may waive
rehabilitation consultation services under this section if the
commissioner or compensation judge is satisfied that the
employee will return to work in the near future or that
rehabilitation consultation services will not be useful in
returning an employee to work.
Sec. 18. Minnesota Statutes 1986, section 176.102,
subdivision 6, is amended to read:
Subd. 6. [PLAN, ELIGIBILITY FOR REHABILITATION, APPROVAL
AND APPEAL.] The commissioner or a compensation judge shall
determine eligibility for rehabilitation services and shall
review, approve, modify or reject rehabilitation plans developed
under subdivision 4. The commissioner or a compensation judge
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. A decision of the
commissioner may 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.
Sec. 19. Minnesota Statutes 1986, section 176.102,
subdivision 8, is amended to read:
Subd. 8. [PLAN MODIFICATION.] Upon request to the
commissioner or compensation judge by the employer, the insurer,
or employee, or upon the commissioner's own request, the plan
may be suspended, terminated or altered upon a showing of good
cause, including:
(a) a physical impairment that does not allow the employee
to pursue the rehabilitation plan;
(b) the employee's performance level indicates the plan
will not be successfully completed;
(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;
(e) that the employee is not likely to benefit from further
rehabilitation services.
An employee may request a change in a rehabilitation plan
once because the employee feels ill-suited for the type of work
for which rehabilitation is being provided. 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 30
days of the decision.
Sec. 20. Minnesota Statutes 1986, section 176.102,
subdivision 10, is amended to read:
Subd. 10. [REHABILITATION; CONSULTANTS AND VENDORS.] The
commissioner shall approve rehabilitation consultants who may
propose and implement plans if they satisfy rules adopted by the
commissioner for rehabilitation consultants. A consultant may
be an individual or public or private entity, but and except for
the division of rehabilitation services, department of jobs and
training, a consultant may not be a vendor or the agent of a
vendor of rehabilitation services. The commissioner shall also
approve rehabilitation vendors if they satisfy rules adopted by
the commissioner.
Sec. 21. Minnesota Statutes 1986, section 176.102,
subdivision 13, is amended to read:
Subd. 13. [DISCONTINUANCE.] All benefits payable under
chapter 176 may, after a determination and order by the
commissioner or compensation judge, 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 or compensation judge 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 176.242 sections 65 and 66.
Sec. 22. [176.1021] [CONTINUING EDUCATION; COMPENSATION
JUDGES.]
The commissioner and the chief administrative law judge
shall provide continuing education and training for workers'
compensation judges in the conduct of administrative hearings,
new trends in workers' compensation, techniques of alternative
dispute resolution and, at least annually, continuing education
in the areas of physical and vocational rehabilitation.
Sec. 23. Minnesota Statutes 1986, section 176.103,
subdivision 2, is amended to read:
Subd. 2. [SCOPE.] (a) 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 shall report the results of the
monitoring to the medical services review board. The
commissioner may, either as a result of the monitoring or as a
result of an investigation following receipt of a complaint, if
the commissioner believes that any provider of health care
services has violated any provision of this chapter or rules
adopted under this chapter, initiate a contested case proceeding
under chapter 14. In these cases, the medical services review
board shall make the final decision following receipt of the
report of an administrative law judge. 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, but does not include the
authority to make the initial determination of primary
liability, except as provided by section 176.305.
Except as provided in paragraph (b), 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.
(b) The commissioner has authority under this section to
make determinations regarding medical causation. Objections to
these determinations shall be referred to the chief
administrative law judge for a de novo hearing before a
compensation judge, with a right to review by the workers'
compensation court of appeals, as provided in this chapter.
Sec. 24. Minnesota Statutes 1986, section 176.103,
subdivision 3, is amended to read:
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 physicians
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 board may appoint from its members whatever
subcommittees it deems appropriate.
The commissioner may appoint alternates for one-year terms
to serve as a member when a member is unavailable. The number
of alternates shall not exceed one chiropractor, one hospital
administrator, three physicians, one employee representative,
one employer or insurer representative, and one representative
of the general public.
The clinical quality subcommittee board shall review
clinical results for adequacy and recommend to the commissioner
scales for disabilities and apportionment.
The clinical cost containment subcommittee board 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 this chapter 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. The board shall assist the commissioner in
accomplishing public education.
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 The medical services review board may upon petition
from the commissioner and after hearing, issue a penalty of $100
per violation, disqualify, or suspend a provider from receiving
payment for services rendered under this chapter if a provider
has violated any part of this chapter or rule adopted under this
chapter. The hearings are initiated by the commissioner under
the contested case procedures of chapter 14. The board shall
make the final decision following receipt of the recommendation
of the administrative law judge. The board's decision is
appealable to the workers' compensation court of appeals in the
manner provided by section 176.421.
(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.
(d) The board may adopt rules of procedure. The rules may
be joint rules with the rehabilitation review panel.
Sec. 25. [176.106] [ADMINISTRATIVE CONFERENCE.]
Subdivision 1. [SCOPE.] All determinations by the
commissioner pursuant to sections 176.102, 176.103, 176.135, or
176.136 shall be in accordance with the procedures contained in
this section.
Subd. 2. [REQUEST FOR CONFERENCE.] Any party may request
an administrative conference by filing a request on a form
prescribed by the commissioner.
Subd. 3. [CONFERENCE.] The matter shall be scheduled for
an administrative conference within 60 days after receipt of the
request for a conference. Notice of the conference shall be
served on all parties no later than 14 days prior to the
conference, unless the commissioner determines that a conference
shall not be held. The commissioner may order an administrative
conference whether or not a request for conference is filed.
The commissioner, at his discretion, may refuse to hold an
administrative conference and refer the matter for a settlement
or pretrial conference or may certify the matter to the office
of administrative hearings for a full hearing before a
compensation judge.
Subd. 4. [APPEARANCES.] All parties shall appear either
personally, by telephone, by representative, or by written
submission. The commissioner shall determine the issues in
dispute based upon the information available at the conference.
Subd. 5. [DECISION.] A written decision shall be issued by
the commissioner or an authorized representative determining all
issues considered at the conference or if a conference was not
held, based on the written submissions. Disputed issues of fact
shall be determined by a preponderance of the evidence. The
decision must be issued within 30 days after the close of the
conference or if no conference was held, within 60 days after
receipt of the request for conference. The decision must
include a statement indicating the right to request a de novo
hearing before a compensation judge and how to initiate the
request.
Subd. 6. [PENALTY.] At a conference, if the insurer does
not provide a specific reason for nonpayment of the items in
dispute, the commissioner may assess a penalty of $300 payable
to the special compensation fund, unless it is determined that
the reason for the lack of specificity was the failure of the
insurer, upon timely request, to receive information necessary
to remedy the lack of specificity. This penalty is in addition
to any penalty that may be applicable for nonpayment.
Subd. 7. [REQUEST FOR HEARING.] Any party aggrieved by the
decision of the commissioner may request a formal hearing by
filing the request with the commissioner no later than 30 days
after the decision. The request shall be referred to the office
of administrative hearings for a de novo hearing before a
compensation judge. The commissioner shall refer a timely
request to the office of administrative hearings within five
working days after filing of the request and the hearing at the
office of administrative hearings must be held on the first date
that all parties are available but not later than 60 days after
the office of administrative hearings receives the matter.
Following the hearing, the compensation judge must issue the
decision within 30 days. The decision of the compensation judge
is appealable pursuant to section 176.421.
Subd. 8. [DENIAL OF PRIMARY LIABILITY.] The commissioner
does not have authority to make determinations relating to
medical or rehabilitation benefits when there is a genuine
dispute over whether the injury initially arose out of and in
the course of employment, except as provided by section 176.305.
Subd. 9. [SUBSEQUENT CAUSATION ISSUES.] If initial
liability for an injury has been admitted or established and an
issue subsequently arises regarding causation between the
employee's condition and the work injury, the commissioner may
make the subsequent causation determination subject to de novo
hearing by a compensation judge with a right to review by the
court of appeals, as provided in this chapter.
Sec. 26. Minnesota Statutes 1986, section 176.111,
subdivision 17, is amended to read:
Subd. 17. [PARTIAL DEPENDENTS.] Partial dependents are
entitled to receive only that proportion of the benefits
provided for actual dependents which the average amount of wages
regularly contributed by the deceased to such partial dependents
at the time of and for a reasonable time immediately prior to
the injury bore to the total income of the dependent during the
same time; and if the amount regularly contributed by the
deceased to such partial dependents cannot be ascertained
because of the circumstances of the case, the commissioner,
compensation judge, or workers' compensation court of appeals,
in cases upon appeal, shall make a reasonable estimate thereof
taking into account all pertinent factors of the case.
Sec. 27. Minnesota Statutes 1986, section 176.129,
subdivision 9, is amended to read:
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; and
(f) conduct a financial audit of indemnity claim payments
and assessments reported to the fund. This may be contracted by
the fund to a private auditing firm.
Sec. 28. Minnesota Statutes 1986, section 176.129,
subdivision 11, is amended to read:
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. All sums recovered
by the special compensation fund as a result of action under
section 176.061, or recoveries of payments made by the special
compensation fund under section 176.183 or 176.191 shall be
credited to the special compensation fund.
Sec. 29. Minnesota Statutes 1986, section 176.129,
subdivision 13, is amended to read:
Subd. 13. [EMPLOYER REPORTS.] All employers and insurers
shall make reports to the commissioner as required for the
proper administration of this section and section sections
176.131 and 176.132. Employers and insurers may not be
reimbursed from the special compensation fund for any periods
for which the employer has not properly filed reports as
required by this section and made all payments due to the
special compensation fund under subdivision 3.
Sec. 30. Minnesota Statutes 1986, section 176.131,
subdivision 1, is amended to read:
Subdivision 1. If an employee incurs personal injury and
suffers disability from that injury alone that is substantially
greater, because of a preexisting physical impairment, than what
would have resulted from the personal injury alone, the employer
or insurer shall pay all compensation provided by this chapter,
but 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 in paragraphs (a), (b), and
(c):
(a) If the disability caused by the subsequent injury is
made substantially greater by the employee's registered
preexisting physical impairment, there shall be apportionment of
liability among all injuries. The special compensation fund
shall only reimburse for that portion of the compensation,
medical expenses, and rehabilitation expenses attributed to the
subsequent injury after the applicable deductible has been met.
(b) If the subsequent personal injury alone results in
permanent partial disability to a scheduled member under the
schedule adopted by the commissioner pursuant to section
176.105, the monetary and medical expense limitations shall not
apply and the employer is liable for the compensation, medical
expense, and rehabilitation attributable to the permanent
partial disability, and may be reimbursed from the special
compensation fund only for compensation paid in excess of the
disability the special compensation fund shall not reimburse
permanent partial disability, medical expenses, or
rehabilitation expenses.
Sec. 31. Minnesota Statutes 1986, 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 except that
physical impairment is limited to the following:
(a) Epilepsy,
(b) Diabetes,
(c) Hemophilia,
(d) Cardiac disease, provided that objective medical
evidence substantiates at least the minimum permanent partial
disability listed in the workers' compensation permanent partial
disability schedule,
(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,
(t) Any other physical impairment resulting in a disability
rating of at least ten percent of the whole body if the physical
impairment were evaluated according to standards used in
workers' compensation proceedings, and
(u) Any other physical impairments of a permanent nature
which the 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
rehabilitation.
Sec. 32. Minnesota Statutes 1986, section 176.133, is
amended to read:
176.133 [ATTORNEY'S FEES, SUPPLEMENTARY BENEFITS.]
Attorney's fees may be approved by the commissioner, a
compensation judge, or by the workers' compensation court of
appeals from the supplementary workers' compensation benefits
provided by section 176.132 if the case involves the obtaining
of supplementary workers' compensation benefits. When such fees
are allowed an amount equal to 25 percent of that portion of the
fee which is in excess of $250 shall be added to the employee's
benefit as provided in section 176.081 rather than deducted as a
portion thereof. The fees shall be determined according to
section 176.081.
Sec. 33. Minnesota Statutes 1986, section 176.135,
subdivision 1, is amended to read:
Subdivision 1. [MEDICAL, CHIROPRACTIC, PODIATRIC,
SURGICAL, HOSPITAL.] (a) The employer shall furnish 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. 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 the employer's inability or refusal
seasonably to do so the employer is liable for the reasonable
expense incurred by or on behalf of the employee in providing
the same, including costs of copies of any medical records or
medical reports that are in existence, obtained from health care
providers, and that directly relate to the items for which
payment is sought under this chapter, limited to the charges
allowed by subdivision 7, and attorney fees incurred by the
employee. No action to recover the cost of copies may be
brought until the commissioner adopts a schedule of reasonable
charges under subdivision 7. Attorney's fees shall be
determined on an hourly basis according to the criteria in
section 176.081, subdivision 5. 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. Except
as provided in paragraph (b), orders of the commissioner with
respect to this subdivision may be reviewed by the medical
services review board pursuant to section 176.103. Orders of
the 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 pursuant to section
176.103. Orders of the court of appeals may be reviewed by writ
of certiorari to the supreme court.
(b) The commissioner has authority to make determinations
regarding medical causation and regarding the question whether
the medical condition, which required the furnished treatment or
supplies, is a consequence of the injury. Objections to any
order of the commissioner with respect to this paragraph shall
be referred to the chief administrative law judge for a de novo
hearing before a compensation judge, with a right to review by
the workers' compensation court of appeals, as provided in this
chapter Both the commissioner and the compensation judges have
authority to make determinations under this section in
accordance with section 25 and section 176.305.
Sec. 34. Minnesota Statutes 1986, section 176.135,
subdivision 1a, is amended to read:
Subd. 1a. [NONEMERGENCY SURGERY; SECOND SURGICAL OPINION.]
The employer is required to furnish surgical treatment pursuant
to subdivision 1 only after the employee has obtained two
surgical opinions concerning whether when the surgery is
reasonably required to cure and relieve the effects of the
personal injury or occupational disease. If at least one of the
opinions affirms that the surgery is reasonably required, the
employee may choose to undergo the surgery. An employee may not
be compelled to undergo surgery. If an employee desires a
second opinion on the necessity of the surgery, the employer
shall pay the costs of obtaining the second opinion. Except in
cases of emergency surgery, the employer or insurer may require
the employee to obtain a second opinion on the necessity of the
surgery, at the expense of the employer, before the employee
undergoes surgery. Failure to obtain a second surgical opinion
shall not be reason for nonpayment of the charges for the
surgery. The employer is required to pay the reasonable value
of the surgery unless the commissioner or compensation judge
determines that the surgery is not reasonably required. A
second surgical opinion is not required in cases of emergency
surgery or when the employer and employee agree that the opinion
is not necessary.
Sec. 35. Minnesota Statutes 1986, section 176.135,
subdivision 2, is amended to read:
Subd. 2. [CHANGE OF PHYSICIANS, PODIATRISTS, OR
CHIROPRACTORS.] The commissioner of the department of labor and
industry shall make the necessary adopt rules for establishing
standards and criteria to be used when a dispute arises over a
change of physicians, podiatrists, or chiropractors in the case
that either the employee or the employer desire a change and for
the designation of a physician, podiatrist, or chiropractor
suggested by the injured employee or the commissioner of the
department of labor and industry. In such case If a change is
agreed upon or ordered, the expense thereof medical expenses
shall be borne by the employer upon the same terms and
conditions as provided in subdivision 1 and for medical,
podiatric, chiropractic and surgical treatment and attendance.
Sec. 36. Minnesota Statutes 1986, 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 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 commissioner, medical
services review board, or workers' compensation court of appeals
on appeal or compensation judge 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. 37. Minnesota Statutes 1986, section 176.135, is
amended by adding a subdivision to read:
Subd. 6. [COMMENCEMENT OF PAYMENT.] As soon as reasonably
possible, and no later than 30 calendar days after receiving the
bill, the employer or insurer shall pay the charge or any
portion of the charge which is not denied, deny all or a part of
the charge on the basis of excessiveness or noncompensability,
or specify the additional data needed, with written notification
to the employee and the provider.
Sec. 38. Minnesota Statutes 1986, section 176.135, is
amended by adding a subdivision to read:
Subd. 7. [MEDICAL BILLS AND RECORDS.] Health care
providers shall submit to the insurer an itemized statement of
charges. Health care providers other than hospitals shall also
submit copies of medical records or reports that substantiate
the nature of the charge and its relationship to the work
injury, provided, however, that hospitals must submit any copies
of records or reports requested under subdivision 6. Health
care providers may charge for copies of any records or reports
that are in existence and directly relate to the items for which
payment is sought under this chapter. Charges for copies
provided under this subdivision shall be reasonable. The
commissioner shall adopt a schedule of reasonable charges by
emergency rules.
A health care provider shall not collect, attempt to
collect, refer a bill for collection, or commence an action for
collection against the employee, employer, or any other party
until the information required by this section has been
furnished.
Sec. 39. Minnesota Statutes 1986, section 176.136,
subdivision 2, is amended to read:
Subd. 2. [EXCESSIVE FEES.] If the payer employer or
insurer 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 unless the
commissioner, medical services review board compensation judge,
or workers' compensation court of appeals determines otherwise.
In such a case, the health care provider may initiate an action
under this chapter for recovery of the amounts deemed excessive
by the employer or insurer, but the employer or insurer shall
have the burden of proving excessiveness.
Sec. 40. Minnesota Statutes 1986, section 176.1361, is
amended to read:
176.1361 [TESTIMONY OF PROVIDERS.]
When the commissioner, a compensation judge, or the
workers' compensation court of appeals has reason to believe
that a medical or other provider of treatment services has
submitted false testimony or a false report in any proceeding
under this chapter, the commissioner, compensation judge, or the
workers' compensation court of appeals shall refer the matter to
an appropriate licensing body or other professional certifying
organization for review and recommendations. Based upon their
recommendation, the commissioner medical services review board,
after hearing, may bar the provider from making an appearance,
and disallow the admission into evidence of written reports of
the provider, in any proceeding under this chapter for a period
not to exceed one year in the first instance and three years in
the second instance, and may permanently bar the provider from
appearance and the provider's reports from admission in evidence
thereafter.
Sec. 41. Minnesota Statutes 1986, section 176.139, is
amended to read:
176.139 [NOTICE OF RIGHTS POSTED.]
A notice, in form approved by the commissioner of labor and
industry, shall be posted in a conspicuous place at each place
of employment Subdivision 1. [POSTING REQUIREMENT.] All
employers required or electing to carry workers' compensation
coverage in the state of Minnesota shall post and display in a
conspicuous location a notice, in a form approved by the
commissioner, advising employees of their rights and obligations
under this chapter, assistance available to them, and the
operation of the workers' compensation system, the name and
address of the workers' compensation carrier insuring them or
the fact that the employer is self-insured.
The notice shall be displayed at all locations where the
employer is engaged in business.
Subd. 2. [FAILURE TO POST; PENALTY.] The commissioner may
assess a penalty of $300 against the employer payable to the
special compensation fund if, after notice from the
commissioner, the employer violates the posting requirement of
this section.
Sec. 42. Minnesota Statutes 1986, section 176.155,
subdivision 1, is amended to read:
Subdivision 1. [EMPLOYER'S PHYSICIAN.] The injured
employee must submit to examination by the employer's physician,
if requested by the employer, and at reasonable times thereafter
upon the employer's request. The employee is entitled upon
request to have a personal physician present at any such
examination. Each party shall defray the cost of that party's
physician. Any report or written statement made by the
employer's physician as a result of an examination of the
employee, regardless of whether the examination preceded the
injury or was made subsequent to the injury, shall be made
available, upon request and without charge, to the injured
employee or representative of the employee. The employer shall
pay reasonable travel expenses incurred by the employee in
attending the examination including mileage, parking, and, if
necessary, lodging and meals. The employer shall also pay the
employee for any lost wages resulting from attendance at the
examination. A self-insured employer or insurer who is served
with a claim petition pursuant to section 176.271, subdivision
1, or 176.291, shall schedule any necessary examinations of the
employee, if an examination by the employer's physician or
health care provider is necessary to evaluate benefits claimed.
The examination shall be completed and the report of the
examination shall be served on the employee and filed with the
commissioner within 120 days of service of the claim petition.
No evidence relating to the examination or report shall be
received or considered by the commissioner, a compensation
judge, or the court of appeals in determining any issues unless
the report has been served and filed as required by this
section, unless a written extension has been granted by the
commissioner or compensation judge. The commissioner or a
compensation judge shall extend the time for completing the
adverse examination and filing the report upon good cause
shown. The extension must not be for the purpose of delay and
the insurer must make a good faith effort to comply with this
subdivision. Good cause shall include but is not limited to:
(1) that the extension is necessary because of the limited
number of physicians or health care providers available with
expertise in the particular injury or disease, or that the
extension is necessary due to the complexity of the medical
issues, or
(2) that the extension is necessary to gather addition
information which was not included on the petition as required
by section 176.291.
Sec. 43. Minnesota Statutes 1986, 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,
the right to compensation may be suspended by order of the
division, commissioner or a compensation judge or workers'
compensation court of appeals in a matter before it, and no
compensation shall be paid while the employee continues in the
refusal.
Sec. 44. Minnesota Statutes 1986, section 176.155,
subdivision 5, is amended to read:
Subd. 5. [TESTIMONY OF HEALTH CARE PROVIDER.] Any
physician or other health care provider designated by the
commissioner, or compensation judge, or workers' compensation
court of appeals or whose services are furnished or paid for by
the employer, or who treats, examines, or is present at any
examination, of an injured employee, may be required to testify
as to any knowledge acquired by the physician or health care
provider in the course of the treatment or examination relative
to the injury or disability resulting 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 cases involving occupational disease,
cardiopulmonary injuries or diseases, injuries resulting from
cumulative trauma, issues of apportionment of liability, and
mental disorders, or upon an order of a compensation judge. In
all other cases all evidence related to health care must be
submitted by written report as prescribed by the chief
administrative law judge. 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 or to be present at a
posthearing deposition 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, and,
in no case later than 30 days following the final hearing date
unless an extension is granted by the chief administrative law
judge. Existing medical reports must be submitted with a claim
petition or answer as provided in sections 176.291 and 176.321.
All reports shall substantially conform to rules prescribed by
the chief administrative law judge. When a written report is
used to present the testimony, it shall be admitted into
evidence without the necessity for foundational testimony and
shall be considered as prima facie evidence of the opinions it
contains.
Sec. 45. Minnesota Statutes 1986, 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 the employee's
survivors, and received in good faith by the employee or 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 full
credit against future lump sum benefit entitlement and as a
partial credit against future weekly benefits. The credit
applied against further payments of temporary total disability,
temporary partial disability, permanent total disability,
retraining benefits, death benefits, or weekly payments of
economic recovery or impairment compensation shall not exceed 20
percent of the amount that would otherwise be payable.
A credit may not be applied against medical expenses due or
payable.
Sec. 46. Minnesota Statutes 1986, section 176.181,
subdivision 3, is amended to read:
Subd. 3. [FAILURE TO INSURE, PENALTY.] Any employer who
fails to comply with the provisions of subdivision 2 to secure
payment of compensation is liable to the state of Minnesota for
a penalty of $100 $750, if the number of uninsured employees is
less than five and for a penalty of $400 $1,500 if the number of
such uninsured employees is five or more. If the commissioner
determines that the failure to comply with the provisions of
subdivision 2 was willful and deliberate, the employer shall be
liable to the state of Minnesota for a penalty of $500 $2,500,
if the number of uninsured employees is less than five, and for
a penalty of $2,000 $5,000 if the number of uninsured employees
is five or more. If the employer continues noncompliance, the
employer is liable for five times the lawful premium for
compensation insurance for such employer for the period the
employer fails to comply with such provisions, commencing ten
days after notice has been served upon the employer by the
commissioner of the department of labor and industry by
certified mail. These penalties may be recovered jointly or
separately in a civil action brought in the name of the state by
the attorney general in any court having jurisdiction. Whenever
any such failure occurs the commissioner of the department of
labor and industry shall immediately certify the that
fact thereof to the attorney general. Upon receipt of such
certification the attorney general shall forthwith commence and
prosecute such the action. All penalties recovered by the state
in any such action shall be paid into the state treasury and
credited to the special compensation fund. If an employer fails
to comply with the provisions of subdivision 2, to secure
payment of compensation after having been notified of the
employer's duty, the attorney general, upon request of the
commissioner, may proceed against the employer in any court
having jurisdiction for an order restraining the employer from
having any person in employment at any time when the employer is
not complying with the provisions of subdivision 2 or for an
order compelling the employer to comply with subdivision 2.
Sec. 47. Minnesota Statutes 1986, 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 or renewal 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, by providing the
name of the insurance company, the policy number, and dates of
coverage or the permit to self-insure. The commissioner shall
assess a penalty to the employer of $1,000 payable to the
special compensation fund, if the information is not reported or
is falsely reported.
Neither the state nor any governmental subdivision 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. 48. Minnesota Statutes 1986, section 176.183,
subdivision 1a, is amended to read:
Subd. 1a. When an employee or 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 pay the benefits,
the employee or the employee's dependents, regardless of the
date when the accident, personal injury, occupational disease,
or death occurred, shall nevertheless receive the benefits from
the special compensation fund. The commissioner has a cause of
action against the self-insuring employer for reimbursement for
all benefits and other expenditures paid out or to be paid out
and, in the discretion of the court, the self-insurer is liable
for punitive damages in an amount not to exceed 50 percent of
the total of all benefits and other expenditures paid out or to
be paid out. The commissioner shall institute an action to
recover the total expenditures from the fund unless the
commissioner determines that no recovery is possible. All
proceeds recovered shall be deposited in the general special
compensation fund.
By assumption of the obligations of a self-insured employer
pursuant to this subdivision, the special compensation fund
shall have the right to direct reimbursement under the same
conditions and in the same amounts from the workers'
compensation insurers reinsurance association and from any other
agreement, contract, or insurance policies which would have
reimbursed or indemnified the self-insured employer for payments
made pursuant to this chapter.
Sec. 49. Minnesota Statutes 1986, section 176.183,
subdivision 2, is amended to read:
Subd. 2. The commissioner of labor and industry, in
accordance with the terms of the order awarding compensation,
shall pay compensation to the employee or the employee's
dependent from the special compensation fund. The commissioner
of labor and industry shall certify to the commissioner of
finance and to the legislature annually the total amount of
compensation paid from the special compensation fund under
subdivisions 1 and 1a. The commissioner of finance shall upon
proper certification reimburse the special compensation fund
from the general fund appropriation provided for this purpose.
The amount reimbursed shall be limited to the certified amount
paid under this section or the appropriation made for this
purpose, whichever is the lesser amount. Compensation paid
under this section which is not reimbursed by the general fund
shall remain a liability of the special compensation fund and
shall be financed by the percentage assessed under
section 176.131, subdivision 10 176.129.
Sec. 50. [176.184] [INSPECTIONS; ENFORCEMENT.]
Subdivision 1. [PROOF OF INSURANCE.] The commissioner of
labor and industry, in order to carry out the purpose of section
176.181, may request satisfactory proof of authority to self
insure workers' compensation liability or satisfactory proof of
insurance coverage for workers' compensation liability. If an
employer does not provide satisfactory proof as requested within
seven working days of the mailing of the request, the
commissioner may proceed in accordance with the provisions of
subdivisions 2 to 7.
Subd. 2. [AT PLACE OF EMPLOYMENT.] In order to carry out
the purposes of section 176.181, the commissioner, upon
presenting appropriate credentials to the owner, operator, or
agent in charge, is authorized to enter without delay and at
reasonable times any place of employment and to inspect and
investigate during regular working hours and at other reasonable
times, within reasonable limits, and in a reasonable manner, any
records pertaining to that employer's workers' compensation
insurance policy, number of employees, documents governing
conditions and benefits of employment, contracts with employees
and their authorized representatives, and any other documents
which may be relevant to the enforcement of section 176.181 and
to question privately any employer, owner, operator, agent, or
employee with respect to matters relevant to the enforcement of
section 176.181.
Subd. 3. [POWERS; COMMISSIONER AND DISTRICT COURT.] In
making inspections and investigations under this chapter, the
commissioner shall have the power to administer oaths, certify
official acts, take and cause to be taken depositions of
witnesses, issue subpoenas, and compel the attendance of
witnesses and production of papers, books, documents, records,
and testimony. In case of failure of any person to comply with
any subpoena lawfully issued, or on the refusal of any witness
to produce evidence or to testify to any matter regarding which
the person may be lawfully interrogated, the district court
shall, upon application of the commissioner, compel obedience in
proceedings for contempt, as in the case of disobedience of the
requirements of a subpoena issued by the court or a refusal to
testify.
Subd. 4. [RIGHTS OF EMPLOYER AND EMPLOYEE REPRESENTATIVE.]
A representative of the employer and a representative authorized
by employees shall be given an opportunity to participate in any
conference or discussion held prior to, during, or after any
inspection. Where there is no authorized employee
representative, the commissioner shall consult with a reasonable
number of employees. No employee as a consequence of aiding an
inspection shall lose any privilege or payment that the employee
would otherwise earn.
Subd. 5. [REQUEST FOR INVESTIGATION BY EMPLOYEE.] (a) Any
employee or representative of an employee who believes that
their employer is uninsured against workers' compensation
liability, may request an inspection by giving notice to the
commissioner of the belief and grounds for the belief. Any
notice shall be written, shall set forth with reasonable
particularity the grounds for the notice, and shall be signed by
the employee or representative of employees. A copy of the
notice shall be provided the employer, representative, or agent
no later than the time of inspection, except that, upon the
request of a person giving the notice, the employee's name and
the names of individual employees referred to in the notice
shall not appear in the copy or on any record published,
released, or made available. If upon receipt of the
notification the commissioner determines that reasonable grounds
exist to believe that the employer is uninsured against workers'
compensation liability, the commissioner shall make an
inspection in accordance with this section as soon as
practicable. If the commissioner determines that there are not
reasonable grounds to believe that a violation exists, the
commissioner shall so notify the employee or representative of
employees in writing. Upon notification, the employee or the
employee representative may request the commissioner to
reconsider the determination. Upon receiving the request, the
commissioner shall review the determination.
(b) The commissioner, upon receipt of a report of violation
of the mandatory insurance provisions of sections 176.181 or
176.185 verified by review of the department's insurance
registration records and other relevant information, shall
initiate a preliminary investigation to determine if reasonable
grounds exist to believe that the employer is uninsured against
workers' compensation liability, and upon certification of
reasonable belief that the employer is uninsured the
commissioner shall make an inspection in accordance with
paragraph (a).
Subd. 6. [ORDER PERMITTING ENTRY.] Upon the refusal of an
owner, operator, or agent in charge to permit entry as specified
in this section, the commissioner may apply for an order in the
district court in the county which entry was refused, to compel
the employer to permit the commissioner to enter and inspect the
place of employment.
Subd. 7. [ADVANCE NOTICE.] Advance notice may not be
authorized by the commissioner except:
(1) in circumstances where the inspection can most
effectively be conducted after regular business hours or where
special preparations are necessary for an inspection;
(2) where necessary to assure the presence of
representatives of the employer and employees or the appropriate
personnel needed to aid in the inspection; and
(3) in other circumstances where the commissioner
determines that the giving of advance notice would enhance the
probability of an effective and thorough inspection.
When advance notice is given to an employer, notice shall
also be given by the commissioner to the authorized
representative of employees if the identity of the
representative is known to the employer.
Sec. 51. Minnesota Statutes 1986, section 176.185, is
amended by adding a subdivision to read:
Subd. 5a. [PENALTY FOR IMPROPER WITHHOLDING.] An employer
who violates subdivision 5 after notice from the commissioner is
subject to a penalty of 200 percent of the amount withheld from
or charged the employee. The penalty shall be imposed by the
commissioner. Fifty percent of this penalty is payable to the
special compensation fund and 50 percent is payable to the
employee.
Sec. 52. Minnesota Statutes 1986, section 176.191,
subdivision 1, is amended to read:
Subdivision 1. Where compensation benefits are payable
under this chapter, and a dispute exists between two or more
employers or two or more insurers as to which is liable for
payment, the commissioner, compensation judge, or workers'
compensation court of appeals upon appeal shall direct, unless
action is taken under subdivision 2, that one or more of the
employers or insurers make payment of the benefits pending a
determination of liability. A temporary order may be issued
under this subdivision whether or not the employers or insurers
agree to pay under the order.
When liability has been determined, the party held liable
for the benefits shall be ordered to reimburse any other party
for payments which the latter has made, including interest at
the rate of 12 percent a year. The claimant shall also be
awarded a reasonable attorney fee, to be paid by the party held
liable for the benefits.
An order directing payment of benefits pending a
determination of liability may not be used as evidence before a
compensation judge, the workers' compensation court of appeals,
or court in which the dispute is pending.
Sec. 53. Minnesota Statutes 1986, section 176.191,
subdivision 2, is amended to read:
Subd. 2. Where compensation benefits are payable under
this chapter, and a dispute exists between two or more employers
or two or more insurers as to which is liable for payment, the
commissioner or a compensation judge upon petition shall
authorize order, unless action is taken under subdivision 1, the
special compensation fund established in section 176.131 to make
payment of the benefits pending a determination of liability.
The personal injury for which the commissioner or a
compensation judge shall order compensation from the special
fund is not limited by section 176.131, subdivision 8.
When liability has been determined, the party held liable
for benefits shall be ordered to reimburse the special
compensation fund for payments made, including interest at the
rate of 12 percent a year.
Sec. 54. [176.194] [PROHIBITED PRACTICES.]
Subdivision 1. [APPLICATION.] This section applies to
insurers, self-insurers, group self-insurers, political
subdivisions of the state, and the administrator of state
employees' claims.
This section also applies to adjusters and third-party
administrators who act on behalf of an insurer, self-insurer,
group self-insurer, the assigned risk plan, the Minnesota
insurance guaranty association, a political subdivision, or any
other entity.
This section shall be enforceable only by the commissioner
of labor and industry. Evidence of violations under this
section shall not be admissible in any civil action.
Subd. 2. [PURPOSE.] This section is not intended to
replace existing requirements of this chapter which govern the
same or similar conduct; these requirements and penalties are in
addition to any others provided by this chapter.
Subd. 3. [PROHIBITED CONDUCT.] The following conduct is
prohibited:
(1) failing to reply, within 30 calendar days after
receipt, to all written communication about a claim from a
claimant that requests a response;
(2) failing, within 45 calendar days after receipt of a
written request, to commence benefits or to advise the claimant
of the acceptance or denial of the claim by the insurer;
(3) failing to pay or deny medical bills within 45 days
after the receipt of all information requested from medical
providers;
(4) filing a denial of liability for workers' compensation
benefits without conducting an investigation;
(5) failing to regularly pay weekly benefits in a timely
manner as prescribed by rules adopted by the commissioner once
weekly benefits have begun. Failure to regularly pay weekly
benefits means failure to pay an employee on more than three
occasions in any 12-month period within three business days of
when payment was due;
(6) failing to respond to the department within 30 calendar
days after receipt of a written inquiry from the department
about a claim;
(7) failing to pay pursuant to an order of the department,
compensation judge, court of appeals, or the supreme court,
within 45 days from the filing of the order unless the order is
under appeal; or
(8) advising a claimant not to obtain the services of an
attorney or representing that payment will be delayed if an
attorney is retained by the claimant.
Subd. 4. [PENALTIES.] The penalties for violations of
clauses (1) through (6) are as follows:
1st through 5th violation
of each paragraph written warning
6th through 10th violation $2,500 per violation
of each paragraph in excess of five
11th through 30th violation $5,000 per violation
of each paragraph in excess of ten
For violations of clauses (7) and (8), the penalties are:
1st through 5th violation
of each paragraph $2,500 per violation
6th through 30th violation $5,000 per violation
of each paragraph in excess of five
The penalties under this section may be imposed in addition
to other penalties under this chapter that might apply for the
same violation. The penalties under this section are assessed
by the commissioner and are payable to the special compensation
fund. A party may object to the penalty and request a formal
hearing under section 176.85. If an entity has more than 30
violations within any 12-month period, in addition to the
monetary penalties provided, the commissioner may refer the
matter to the commissioner of commerce with recommendation for
suspension or revocation of the entity's (a) license to write
workers' compensation insurance; (b) license to administer
claims on behalf of a self-insured, the assigned risk plan, or
the Minnesota insurance guaranty association; (c) authority to
self-insure; or (d) license to adjust claims. The commissioner
of commerce shall follow the procedures specified in section
176.195.
Subd. 5. [RULES.] The commissioner may, by rules adopted
in accordance with chapter 14, specify additional misleading,
deceptive, or fraudulent practices or conduct which are subject
to the penalties under this section.
Sec. 55. Minnesota Statutes 1986, section 176.195,
subdivision 3, is amended to read:
Subd. 3. [COMPLAINT, ANSWER; HEARING.] A complaint against
an insurer shall include a notice and order for hearing, shall
be in writing and shall specify clearly the grounds upon which
the license is sought to be suspended or revoked. The insurer
may shall file a written answer to the complaint and is entitled
to receive a hearing in its own behalf before the commissioner
of commerce within 20 days of service of the complaint. The
hearing shall be conducted under chapter 14.
Sec. 56. Minnesota Statutes 1986, section 176.221,
subdivision 1, is amended to read:
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 shall commence. Within 14 days of notice to or
knowledge by an employer of a new period of temporary total
disability which is caused by an old injury compensable under
this chapter, the payment of temporary total compensation shall
commence; provided that the employer or insurer may file for an
extension with the commissioner within this 14-day period, in
which case the compensation need not commence within the 14-day
period but shall commence no later than 30 days from the date of
the notice to or knowledge by the employer of the new period of
disability. Commencement of payment by an employer or insurer
does not waive any rights to any defense the employer has on any
claim or incident either with respect to the compensability of
the claim under this chapter 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. Liability
for compensation under this chapter may be denied by the
employer or insurer by giving the employee written notice of the
denial of liability. If liability is denied for an injury which
is required to be reported to the commissioner under section
176.231, subdivision 1, the denial of liability must be filed
with the commissioner within 14 days after notice to or
knowledge by the employer of an injury which is alleged to be
compensable under this chapter. 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 terminated upon
the filing of a notice of denial of liability within 30 days of
notice or knowledge. After the 30-day period, payment may be
terminated only by the filing of a notice as provided under
section 176.242 66. Upon the 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.
Sec. 57. Minnesota Statutes 1986, section 176.221,
subdivision 3, is amended to read:
Subd. 3. [PENALTY.] If the employer or insurer does not
begin payment of compensation within the time limit prescribed
under subdivision 1 or 8, the commissioner may assess a penalty,
payable to the special compensation fund, of up to 100
percent which shall be a percentage of the amount of
compensation to which the employee is entitled because of the
injury to receive up to the date compensation payment is made to
the employee or the compensation to which the employee is
entitled to receive up to the date the penalty is imposed, in
addition to any other penalty otherwise provided by statute.
This penalty may also be imposed on an employer or insurer who
violates section 176.242 or 176.243 including, but not limited
to, violating the commissioner's decision not to discontinue
compensation.
The amount of penalty shall be determined as follows:
Numbers of days late Penalty
1 - 15 25 percent of
compensation due,
not to exceed $375,
16 - 30 50 percent of
compensation due,
not to exceed $1,140,
31 - 60 75 percent of
compensation due,
not to exceed $2,878,
61 or more 100 percent of
compensation due,
not to exceed $3,838.
The penalty under this section is in addition to any
penalty otherwise provided by statute.
Sec. 58. Minnesota Statutes 1986, section 176.221,
subdivision 7, is amended to read:
Subd. 7. [INTEREST.] Any payment of compensation, charges
for treatment under section 176.135 or, rehabilitation expenses
under 176.102, subdivision 9, or penalties assessed under this
chapter not made when due shall bear interest at the rate of
eight percent 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.
For the purposes of this subdivision, permanent partial
disability payment is due 14 days after receipt of the first
medical report which contains a disability rating if such
payment is otherwise due under this chapter, and charges for
treatment under section 176.135 are due 30 calendar days after
receiving the bill and necessary medical data.
If the claim of the employee or dependent for compensation
is contested in a proceeding before a compensation judge or the
commissioner, the decision of the judge or commissioner shall
provide for the payment of unpaid interest on all compensation
awarded, including interest accruing both before and after the
filing of the decision.
Sec. 59. Minnesota Statutes 1986, section 176.225,
subdivision 1, is amended to read:
Subdivision 1. [GROUNDS.] Upon reasonable notice and
hearing or opportunity to be heard, the division commissioner, 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; or
(e) unreasonably or vexatiously discontinued compensation
in violation of section 176.242 sections 65 and 66.
Sec. 60. Minnesota Statutes 1986, section 176.225,
subdivision 2, is amended to read:
Subd. 2. [EXAMINATION OF BOOKS AND RECORDS.] To determine
whether an employer or insurer 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 employer or insurer
relating to the payment of compensation, and may require the
employer or insurer to furnish any other information relating to
the payment of compensation.
The right of the division to review the records of an
employer or insurer includes the right of the special
compensation fund to examine records for the proper
administration of sections 176.129, 176.131, 176.132, 176.181,
and 176.183. The special compensation fund may not review the
records of the employer or insurer relating to a claim under
section 176.131 until the special compensation fund has accepted
liability under that section or a final determination of
liability under that section has been made. The special
compensation fund may withhold reimbursement to the employer or
insurer under section 176.131 or 176.132 if the employer or
insurer denies access to records requested for the proper
administration of section 176.129, 176.131, 176.132, 176.181, or
176.183.
Sec. 61. Minnesota Statutes 1986, section 176.225,
subdivision 4, is amended to read:
Subd. 4. [HEARING BEFORE COMMISSIONER OF COMMERCE.] Upon
receipt of a complaint filed under subdivision 3, the
commissioner of commerce shall hear and determine the matter in
the manner provided by this chapter 14. On finding that a
charge made by the complaint is true, the commissioner of
commerce shall may suspend or revoke the license of the insurer
to do business in this state. The insurer may appeal from the
action of the commissioner revoking the license in the manner
provided in this chapter 14.
Sec. 62. Minnesota Statutes 1986, section 176.231,
subdivision 2, is amended to read:
Subd. 2. [INITIAL REPORT, WRITTEN REPORT.] Where
subdivision 1 requires an injury to be reported within 48 hours,
the employer may make an initial report by telephone, telegraph,
or personal notice, and file a written report of the injury
within seven days from its occurrence or within such time as the
commissioner of labor and industry designates. All written
reports of injuries required by subdivision 1 shall include the
date of injury, amounts of payments made, if any, and the date
of the first payment. The reports shall be in quadruplicate on
a form designed by the commissioner, with two copies the
original to the commissioner and, one copy to the insurer, and
one copy to the employee.
If an insurer or self-insurer repeatedly fails to pay
benefits within three days of the due date, pursuant to section
176.221, the insurer or self-insurer shall be ordered by the
commissioner to explain, in person, the failure to pay benefits
due in a reasonable time. If prompt payments are not thereafter
made, the commissioner shall refer the insurer or self-insurer
to the commissioner of commerce for action pursuant to section
176.225, subdivision 4.
Sec. 63. Minnesota Statutes 1986, section 176.231,
subdivision 10, is amended to read:
Subd. 10. [FAILURE TO FILE REQUIRED REPORT, PENALTY.] If
an employer, insurer, physician, chiropractor, or other health
provider fails to file with the commissioner any report required
by this section in the manner and within the time limitations
prescribed, 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 failure.
The imposition of a penalty may be appealed to a
compensation judge within 30 days of notice of the penalty.
Penalties collected by the state under this subdivision
shall be paid into the special compensation fund.
Sec. 64. Minnesota Statutes 1986, section 176.231, is
amended by adding a subdivision to read:
Subd. 11. [FAILURE TO FILE REQUIRED REPORT; SUBSTITUTE
FILING.] Where this section requires the employer to file a
report of injury with the commissioner, and the employer is
unable or refuses to file the report, the insurer shall file the
report within ten days of a request from the division. The
report shall be filed in the manner prescribed by this section.
If both the employer and the insurer fail to file the report
within 30 days of notice of the injury, the commissioner shall
file the report.
The filing of a report of injury by the commissioner does
not subject an employee or the dependents of an employee to the
three-year time limitations under section 176.151, paragraphs 1
and 2.
A substitute filing under this subdivision shall not be a
defense to a penalty assessed under subdivision 10.
Sec. 65. [176.238] [NOTICE OF DISCONTINUANCE OF TEMPORARY
TOTAL, TEMPORARY PARTIAL, OR PERMANENT TOTAL COMPENSATION.]
Subdivision 1. [NECESSITY FOR NOTICE AND SHOWING;
CONTENTS.] Except as provided in section 176.221, subdivision 1,
once the employer has commenced payment of benefits, the
employer may not discontinue payment of compensation until it
provides the employee with notice in writing of intention to do
so. A copy of the notice shall be filed with the division by
the employer. The notice to the employee and the copy to the
division shall state the date of intended discontinuance and set
forth a statement of facts clearly indicating the reason for the
action. Copies of whatever medical reports or other written
reports in the employer's possession which are relied on for the
discontinuance shall be attached to the notice.
Subd. 2. [CONTINUANCE OF EMPLOYER'S LIABILITY;
SUSPENSION.] (a) [DISCONTINUANCE BECAUSE OF RETURN TO WORK.] If
the reason for discontinuance is that the employee has returned
to work, temporary total compensation may be discontinued
effective the day the employee returned to work. Written notice
shall be served on the employee and filed with the division
within 14 days of the date the insurer or self-insured employer
has notice that the employee has returned to work.
(b) [DISCONTINUANCE FOR REASONS OTHER THAN RETURN TO WORK.]
If the reason for the discontinuance is for other than that the
employee has returned to work, the liability of the employer to
make payments of compensation continues until the copy of the
notice and reports have been filed with the division. 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, except as
provided in the following subdivisions and in section 66.
Subd. 3. [INTERIM ADMINISTRATIVE DECISION.] An employee
may request the commissioner to schedule an administrative
discontinuance conference to obtain an expedited interim
decision concerning the discontinuance of compensation.
Procedures relating to discontinuance conferences are set forth
in section 66.
Subd. 4. [OBJECTION TO DISCONTINUANCE.] An employee may
serve on the employer and file with the commissioner an
objection to discontinuance if:
(a) the employee elects not to request an administrative
conference under section 66;
(b) if the employee fails to timely proceed under that
section;
(c) if the discontinuance is not governed by that section;
or
(d) if the employee disagrees with the commissioner's
decision issued under that section. Within ten calendar days
after receipt of an objection to discontinuance, the
commissioner shall refer the matter to the office for a de novo
hearing before a compensation judge to determine the right of
the employee to further compensation.
Subd. 5. [PETITION TO DISCONTINUE.] Instead of filing a
notice of discontinuance, an employer may serve on the employee
and file with the commissioner a petition to discontinue
compensation. A petition to discontinue compensation may also
be used when the employer disagrees with the commissioner's
decision under section 66. Within ten calendar days after
receipt of a petition to discontinue, the commissioner shall
refer the matter to the office for a de novo hearing before a
compensation judge to determine the right of the employer to
discontinue compensation.
The petition shall include copies of medical reports or
other written reports or evidence in the possession of the
employer bearing on the physical condition or other present
status of the employee which relate to the proposed
discontinuance. The employer shall continue payment of
compensation until the filing of the decision of the
compensation judge and thereafter as the compensation judge,
court of appeals, or the supreme court directs, unless, during
the interim, occurrences arise justifying the filing of a notice
under subdivision 1 or 2 and the discontinuance is permitted by
the commissioner's order or no conference under section 66 is
requested.
Subd. 6. [EXPEDITED HEARING BEFORE A COMPENSATION
JUDGE.] A hearing before a compensation judge shall be held
within 30 calendar days after the office receives the file from
the commissioner if:
(a) an objection to discontinuance has been filed under
subdivision 4 within 60 calendar days after the notice of
discontinuance was filed and where no administrative conference
has been held;
(b) an objection to discontinuance has been filed under
subdivision 4 within 60 calendar days after the commissioner's
decision under this section has been issued;
(c) a petition to discontinue has been filed by the insurer
in lieu of filing a notice of discontinuance; or
(d) a petition to discontinue has been filed within 60
calendar days after the commissioner's decision under this
section has been issued.
If the petition or objection is filed later than the
deadlines listed above, the expedited procedures in this section
apply only where the employee is unemployed at the time of
filing the objection and shows, to the satisfaction of the chief
administrative judge, by sworn affidavit, that the failure to
file the objection within the deadlines was due to some
infirmity or incapacity of the employee or to circumstances
beyond the employee's control. The hearing shall be limited to
the issues raised by the notice or petition unless all parties
agree to expanding the issues. If the issues are expanded, the
time limits for hearing and issuance of a decision by the
compensation judge under this subdivision shall not apply.
Once a hearing date has been set, a continuance of the
hearing date will be granted only under the following
circumstances:
(a) the employer has agreed, in writing, to a continuation
of the payment of benefits pending the outcome of the hearing;
or
(b) the employee has agreed, in a document signed by the
employee, that benefits may be discontinued pending the outcome
of the hearing.
Absent a clear showing of surprise at the hearing or the
unexpected unavailability of a crucial witness, all evidence
must be introduced at the hearing. If it is necessary to accept
additional evidence or testimony after the scheduled hearing
date, it must be submitted no later than 14 days following the
hearing, unless the compensation judge, for good cause,
determines otherwise.
The compensation judge shall issue a decision pursuant to
this subdivision within 30 days following the close of the
hearing record.
Subd. 7. [ORDER OF COMPENSATION JUDGE.] If the order of
the compensation judge confirms a discontinuance of
compensation, the service and filing of the order relieves the
employer from further liability for compensation subject to the
right of review provided by this chapter, and to the right of
the 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. In any appeal from the compensation judge's decision
under this section, the court of appeals shall conclude any oral
arguments by the parties within 60 days following certification
of the record from the office.
Subd. 8. [NOTICE FORMS.] Notices under this section shall
be on forms prescribed by the commissioner.
Subd. 9. [SERVICE ON ATTORNEY.] If the employee has been
presently represented by an attorney for the same injury, all
notices required by this section shall also be served on the
last attorney of record.
Subd. 10. [FINES; VIOLATION.] An employer who violates
requirements set forth in this section or section 66 is subject
to a fine of up to $500 for each violation payable to the
special compensation fund.
Subd. 11. [APPLICATION OF SECTION.] This section shall not
apply to those employees who have been adjudicated permanently
totally disabled, or to those employees who have been
administratively determined pursuant to division rules to be
permanently totally disabled.
Sec. 66. [176.239] [ADMINISTRATIVE DECISION CONCERNING
DISCONTINUANCE OF COMPENSATION.]
Subdivision 1. [PURPOSE.] The purpose of this section is
to provide a procedure for parties to obtain an expedited
interim administrative decision in disputes over discontinuance
of temporary total, temporary partial, or permanent total
compensation.
Subd. 2. [REQUEST FOR ADMINISTRATIVE CONFERENCE.] If the
employee disagrees with the notice of discontinuance, the
employee may request that the commissioner schedule an
administrative conference to be conducted pursuant to this
section.
If temporary total, temporary partial, or permanent total
compensation has been discontinued because the employee has
returned to work, and the employee believes benefits should be
reinstated due to occurrences during the initial 14 calendar
days of the employee's return to work, the employee's request
must be received by the commissioner within 30 calendar days
after the employee has returned to work. If the employer has
failed to properly serve and file the notice as provided in
section 65, the employee's time period to request an
administrative conference is extended up to and including the
40th calendar day subsequent to the return to work.
If temporary total, temporary partial, or permanent total
compensation has been discontinued for a reason other than a
return to work, the employee's request must be received by the
commissioner within 12 calendar days after the notice of
discontinuance is received by the commissioner. If the employer
discontinues compensation without giving notice as required by
section 66, the employee's time period for requesting an
administrative conference is extended up to and including the
40th calendar day after which the notice should have been served
and filed.
The commissioner may determine that an administrative
conference is not necessary under this section for reasons
prescribed by rule and permit the employer to discontinue
compensation, subject to the employee's right to file an
objection to discontinuance under section 65, subdivision 4.
In lieu of making a written request for an administrative
conference with the commissioner, an employee may make an
in-person or telephone request for the administrative conference.
Subd. 3. [PAYMENT THROUGH DATE OF DISCONTINUANCE
CONFERENCE.] If a notice of discontinuance has been served and
filed due to the employee's return to work, and the employee
requests a conference, the employer is not obligated to
reinstate or otherwise pay temporary total, temporary partial,
or permanent total compensation unless so ordered by the
commissioner.
When an administrative conference is conducted under
circumstances in which the employee has not returned to work,
compensation shall be paid through the date of the
administrative conference unless:
(a) the employee has returned to work since the notice was
filed;
(b) the employee fails to appear at the scheduled
administrative conference; or
(c) due to unusual circumstances or pursuant to the rules
of the division, the commissioner orders otherwise.
Subd. 4. [SCHEDULING OF CONFERENCE.] If the employee
timely requests an administrative conference under this section,
the commissioner shall schedule a conference within ten calendar
days after receiving the request.
Subd. 5. [CONTINUANCES.] An employee or employer may
request a continuance of a scheduled administrative conference.
If the commissioner determines there is good cause for a
continuance, the commissioner may grant the continuance for not
more than 14 calendar days unless the parties agree to a longer
continuance. If compensation is payable through the day of the
administrative conference pursuant to subdivision 3, and the
employee is granted a continuance, compensation need not be paid
during the period of continuance unless the commissioner orders
otherwise. If the employer is granted a continuance and
compensation is payable through the day of the administrative
conference pursuant to subdivision 3, then compensation shall
continue to be paid during the continuance. The commissioner
may grant an unlimited number of continuances provided that
payment of compensation during any continuance is subject to
this subdivision.
Subd. 6. [SCOPE OF THE ADMINISTRATIVE DECISION.] If
benefits have been discontinued due to the employee's return to
work, the commissioner shall determine whether, as a result of
occurrences arising during the initial 14 calendar days after
the return to work, the employee is entitled to additional
payment of temporary total, temporary partial, or permanent
total compensation.
If periodic payment of temporary total, temporary partial,
or permanent total compensation has been discontinued for
reasons other than a return to work, the commissioner shall
determine whether the employer has reasonable grounds to support
the discontinuance. Only information or reasons specified on
the notice of discontinuance shall provide a basis for a
discontinuance, unless the parties agree otherwise.
Subd. 7. [INTERIM ADMINISTRATIVE DECISION.] After
considering the information provided by the parties at the
administrative conference, the commissioner shall issue to all
interested parties a written decision on payment of
compensation. Administrative decisions under this section shall
be issued within five working days from the close of the
conference. Disputed issues of fact shall be determined by a
preponderance of the evidence.
Subd. 8. [DISAGREEMENT WITH ADMINISTRATIVE DECISION.] An
employee who disagrees with the commissioner's decision under
this section may file an objection to discontinuance under
section 65, subdivision 4. An employer who disagrees with the
commissioner's decision under this section may file a petition
to discontinue under section 65, subdivision 5.
Subd. 9. [ADMINISTRATIVE DECISION BINDING; EFFECT OF
SUBSEQUENT DETERMINATIONS.] The commissioner's decision under
this section is binding upon the parties and the rights and
obligations of the parties are governed by the decision.
If an objection or a petition is filed under subdivision 8,
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
pursuant to section 65, subdivision 6.
If the commissioner has denied a discontinuance or
otherwise ordered commencement of benefits, the employer shall
continue paying compensation until an order is issued by a
compensation judge, the court of appeals, or the supreme court,
allowing compensation to be discontinued, or unless, during the
interim, occurrences arise justifying the filing of a notice
under section 65, subdivisions 1 or 2, and the discontinuance is
permitted by the commissioner or no conference is requested. If
a compensation judge, the court of appeals, or the supreme court
later rules that the discontinuance was proper or that benefits
were otherwise not owing the employee, payments made under the
commissioner's administrative decision and order shall be
treated as an overpayment which the insurer may recover from the
employee subject to section 176.179.
If the commissioner has permitted a discontinuance or
otherwise not ordered commencement of benefits, the service and
filing of the administrative decision relieves the employer from
further liability for compensation subject to the right of
review afforded by this chapter.
Subd. 10. [APPLICATION OF SECTION.] This section is
applicable to all cases in which the employee's request for an
administrative conference is received by the division after the
effective date of this section even if the injury occurred prior
to the effective date. This section shall not apply to those
employees who have been adjudicated permanently totally
disabled, or to those employees who have been administratively
determined pursuant to division rules to be permanently totally
disabled.
Sec. 67. Minnesota Statutes 1986, section 176.271,
subdivision 1, is amended to read:
Subdivision 1. Unless otherwise provided by this chapter
or by the commissioner of labor and industry, all
proceedings before the division under this chapter are initiated
by the filing of a written petition on a prescribed form with
the commissioner of labor and industry at the commissioner's
principal office. All claim petitions shall include the
information required by section 176.291.
Sec. 68. Minnesota Statutes 1986, section 176.275, is
amended to read:
176.275 [FILING OF PAPERS; PROOF OF SERVICE.]
Subdivision 1. [FILING.] If a document is required to be
filed by this chapter or any rules adopted pursuant to authority
granted by this chapter, the filing shall be completed by the
receipt of the document at the division, department, office, or
the court of appeals. The workers' compensation division,
department, office, and the workers' compensation court of
appeals shall file accept any paper document which has been
delivered to it for legal filing immediately upon its receipt in
the office of the commissioner of the department of labor and
industry. The commissioner of the department of labor and
industry shall file any paper which has been delivered to the
commissioner for filing immediately upon its receipt.
A notice or other document required to be served or filed
at either the department, the office, or the court of appeals
which is inadvertently served or filed at the wrong one of these
agencies shall be deemed to have been served or filed with the
proper agency. The receiving agency shall note the date of
receipt of a document and shall forward the documents to the
proper agency no later than two working days following receipt.
Subd. 2. [PROOF OF SERVICE.] Whenever a provision of this
chapter or rules adopted pursuant to authority granted by this
chapter require either a proof of service or affidavit of
service, the requirement is satisfied by the inclusion of a
proof of service on the document which has been served, in a
form acceptable by the state district courts or approved by the
commissioner.
Sec. 69. Minnesota Statutes 1986, section 176.291, is
amended to read:
176.291 [DISPUTES AND DEFAULTS; PETITIONS; PROCEDURE.]
Where there is a dispute as to a question of law or fact in
connection with a claim for compensation, or where there has
been a default in the payment of compensation for a period of
ten days, a party may present serve on all other parties and
file a verified notarized petition to with the commissioner
stating the matter in dispute or the fact of default. The
petition shall be on a form prescribed by the commissioner.
The petition shall also state and include, where applicable:
(1) names and residence or business address of parties;
(2) facts relating to the employment at the time of injury,
including amount of wages received;
(3) extent and character of injury;
(4) notice to or knowledge by employer of injury;
(5) facts which the commissioner by rule requires; and,
(6) such other facts as are necessary for the information
of the commissioner, a compensation judge or the workers'
compensation court of appeals copies of written medical reports
or other information in support of the claim;
(6) names and addresses of all known witnesses intended to
be called in support of the claim;
(7) the desired location of any hearing and estimated time
needed to present evidence at the hearing;
(8) any requests for a prehearing or settlement conference;
(9) a list of all known third parties, including the
departments of human services and jobs and training, who may
have paid any medical bills or other benefits to the employee
for the injuries or disease alleged in the petition or for the
time the employee was unable to work due to the injuries or
disease, together with a listing of the amounts paid by each;
(10) the nature and extent of the claim; and
(11) a request for an expedited hearing which must include
an attached affidavit of significant financial hardship which
complies with the requirements of section 176.341, subdivision 6.
Incomplete petitions may be stricken from the calendar as
provided by section 176.305, subdivision 4. Within 30 days of a
request by a party, an employee who has filed a claim petition
pursuant to section 176.271 or this section shall furnish a list
of physicians and health care providers from whom the employee
has received treatment for the same or a similar condition as
well as authorizations to release relevant information, data,
and records to the requester. The petition may be stricken from
the calendar upon motion of a party for failure to timely
provide the required list of health care providers or
authorizations.
Sec. 70. Minnesota Statutes 1986, section 176.301,
subdivision 1, is amended to read:
Subdivision 1. [TRIAL BY COURT; REFERENCE TO COMMISSIONER
CHIEF ADMINISTRATIVE LAW JUDGE.] When a workers' compensation
issue has been joined is present in the district court action,
the court may try the action itself without a jury, or refer the
matter to the commissioner. In the latter case, the
commissioner shall refer the matter to the chief administrative
law judge for assignment to a compensation judge. The
compensation judge shall report findings and decisions to the
district court. The court may approve or disapprove such
decision in the same manner as it approves or disapproves the
report of a referee. The court shall enter judgment upon such
decision.
Sec. 71. Minnesota Statutes 1986, section 176.305,
subdivision 1, is amended to read:
Subdivision 1. [HEARINGS ON PETITIONS.] The petitioner
shall serve a copy of the petition on each adverse party
personally or by first class mail. The original petition shall
then be filed with the commissioner together with an appropriate
affidavit of service. When any petition has been filed with the
workers' compensation division, the commissioner shall, within
ten days, refer the matter presented by the petition to a
settlement judge. The settlement judge shall schedule a
settlement conference if appropriate within 60 days. If a
settlement conference is not appropriate, or if such a
conference or conferences do not result in progress toward a
settlement, the settlement judge shall certify the matter for a
hearing before a compensation judge and shall refer the matter
to the chief administrative law judge to be heard by a
compensation judge for a settlement conference under this
section, for an administrative conference under section 25, or
for hearing to the office.
Sec. 72. Minnesota Statutes 1986, section 176.305, is
amended by adding a subdivision to read:
Subd. 1a. [SETTLEMENT AND PRETRIAL CONFERENCES; SUMMARY
DECISION.] The commissioner shall schedule a settlement
conference, if appropriate, within 60 days after receiving the
petition. All parties must appear at the conference, either
personally or by representative, must be prepared to discuss
settlement of all issues, and must be prepared to discuss or
present the information required by the joint rules of the
division and the office. If a representative appears on behalf
of a party, the representative must have authority to fully
settle the matter.
If settlement is not reached, the presiding officer may
require the parties to present copies of all documentary
evidence not previously filed and a summary of the evidence they
will present at a formal hearing. If appropriate, a written
summary decision shall be issued within ten days after the
conference stating the issues and a determination of each
issue. If a party fails to appear at the conference, all issues
may be determined contrary to the absent party's interest,
provided the party in attendance presents a prima facie case.
The summary decision is final unless a written request for
a formal hearing is served on all parties and filed with the
commissioner within 30 days after the date of service and filing
of the summary decision. Within ten days after receipt of the
request, the commissioner shall certify the matter to the office
for a de novo hearing.
Sec. 73. Minnesota Statutes 1986, section 176.305,
subdivision 2, is amended to read:
Subd. 2. [COPY OF PETITION.] The commissioner shall
deliver the original petition and answer, after certification
for a hearing before a compensation judge by a settlement judge,
to the office of administrative hearings for assignment to a
compensation judge.
Sec. 74. Minnesota Statutes 1986, section 176.305, is
amended by adding a subdivision to read:
Subd. 4. [STRIKING FROM CALENDAR.] A compensation judge or
the commissioner, after receiving a properly served motion, may
strike a case from the active trial calendar after the employee
has been given 30 days to correct the deficiency if it is shown
that the information on the petition or included with the
petition is incomplete. Once a case is stricken, it may not be
reinstated until the missing information is provided to the
adverse parties and filed with the commissioner or compensation
judge. If a case has been stricken from the calendar for one
year or more and no corrective action has been taken, the
commissioner or a compensation judge may, upon the
commissioner's or judge's own motion or a motion of a party
which is properly served on all parties, dismiss the case. The
petitioner must be given at least 30 days advance notice of the
proposed dismissal before the dismissal is effective.
Sec. 75. Minnesota Statutes 1986, section 176.306,
subdivision 1, is amended to read:
Subdivision 1. [CHIEF ADMINISTRATIVE LAW JUDGE.] The chief
administrative law judge shall schedule workers' compensation
hearings on as regular a schedule as may be practicable in no
fewer than six widely separated locations throughout the state,
including at least four locations outside of the seven county
metropolitan area and Duluth, for the purpose of providing a
convenient forum for parties to a compensation hearing and shall
maintain a permanent office in Duluth staffed by at least one
compensation judge. Continuances of the scheduled hearing date
may be granted only under section 176.341, subdivision 4.
Sec. 76. Minnesota Statutes 1986, section 176.306, is
amended by adding a subdivision to read:
Subd. 3. [SCHEDULING MATTERS.] A compensation judge may
schedule a pretrial or settlement conference, whether or not a
party requests such a conference.
Sec. 77. Minnesota Statutes 1986, section 176.312, is
amended to read:
176.312 [AFFIDAVIT AFFIDAVITS OF PREJUDICE AND PETITIONS
FOR REASSIGNMENT.]
In accordance with rules adopted by the chief
administrative law judge, an affidavit of prejudice for cause
may be filed by a each 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 assigned to hear a
case. 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.
A petition for reassignment of a case to a different
compensation judge for hearing may be filed once, in any case,
by each party to the claim within ten days after the filing
party has received notice of the assigned judge. Upon receipt
of a timely petition for reassignment, the chief administrative
law judge shall assign the case to another judge.
An affidavit of prejudice or a petition for reassignment
shall be filed with the chief administrative law judge and shall
not result in the continuance or delay of a hearing scheduled
under section 176.341.
This section does not apply to prehearing or settlement
conferences.
Sec. 78. Minnesota Statutes 1986, section 176.321,
subdivision 2, is amended to read:
Subd. 2. [CONTENTS.] The answer shall admit, deny, or
affirmatively defend against the substantial averments of the
petition, and shall state the contention of the adverse party
with reference to the matter in dispute.
Each fact alleged by the petition or answer and not
specifically denied by the answer or reply is deemed admitted,
but the failure to deny such a fact does not preclude the
workers' compensation court of appeals, commissioner, or
compensation judge from requiring proof of the fact.
The answer shall include the names and addresses of all
known witnesses; whether or not the employer intends to schedule
an adverse examination and, if known, the date, time, and place
of all adverse examinations; the desired location for a hearing;
any request for a prehearing or settlement conference; the
estimated time needed to present evidence at a hearing; and, if
an affidavit of significant financial hardship and request for
an expedited hearing are included with the petition, any
objection the employer may have to that request. If the date,
time, and place of all adverse examinations is unknown at the
time the answer is filed, the employer must notify the
commissioner in writing of the date, time, and place of all
adverse examinations within 50 days of the filing of the claim
petition.
Sec. 79. Minnesota Statutes 1986, section 176.321,
subdivision 3, is amended to read:
Subd. 3. [EXTENSION OF TIME IN WHICH TO FILE ANSWER.] Upon
showing of cause, the commissioner of the department of labor
and industry may extend the time in which to file an answer or
reply for not more than 30 additional days. The time to file an
answer or reply may also be extended upon agreement of the
petitioner, and provided that the commissioner must be notified
in writing by the employer no later than five days beyond the
time required for the filing of the answer of the fact that an
agreement has been reached, including the length of the
extension. If an answer is not filed and there has been no
extension by order of the commissioner or by agreement, the
failure to file an answer shall be treated as a default Any case
received by the office that does not include an answer, written
extension order, or written notification of the extension
agreement shall be immediately set for a hearing at the first
available date under section 176.331.
Sec. 80. [176.322] [DECISIONS BASED ON STIPULATED FACTS.]
If the parties agree to a stipulated set of facts and only
legal issues remain, the commissioner or compensation judge may
determine the matter without a hearing based upon the stipulated
facts and the determination is appealable to the court of
appeals pursuant to sections 176.421 and 176.442. In any case
where a stipulated set of facts has been submitted pursuant to
this section, upon receipt of the file or the stipulated set of
facts the chief administrative law judge shall immediately
assign the case to a compensation judge for a determination.
The judge shall issue a determination within 60 days after
receipt of the stipulated facts.
Sec. 81. Minnesota Statutes 1986, section 176.331, is
amended to read:
176.331 [AWARD BY DEFAULT PROCEEDINGS WHEN ANSWER NOT
FILED.]
Except in cases involving multiple employers or multiple
insurers, if an adverse party fails to file and serve an answer
and the petitioner presents proof of this fact, the commissioner
or compensation judge 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 proof or obtain an
extension from the commissioner or the petitioner as required by
section 176.321, subdivision 3, the commissioner shall request
refer the matter to the chief administrative law judge to assign
the matter to a compensation judge for an immediate hearing and
prompt award or other order. The adverse party that failed to
file an answer may appear at the hearing, present evidence and
question witnesses, but shall not be granted a continuance for
any reason.
If an adverse party who fails to serve and file an answer
is neither insured for workers' compensation liability nor a
licensed self-insured as required by section 176.181 and the
special compensation fund is a party to the proceeding, the
commissioner or compensation judge may enter an order awarding
benefits to the petitioning party without a hearing if so
requested by the special compensation fund.
Where in a default case the petition does not state facts
sufficient to support an award, the compensation judge shall
give the petitioner or 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. 82. Minnesota Statutes 1986, section 176.341,
subdivision 3, is amended to read:
Subd. 3. [NOTICE MAILED TO EACH PARTY.] Unless subdivision
6 applies, at least 30 days prior to the date of hearing, the
chief administrative law judge 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 administrative law judge
after considering the particular circumstances in each case.
Sec. 83. Minnesota Statutes 1986, section 176.341, is
amended by adding a subdivision to read:
Subd. 4. [CONTINUANCES.] Only the chief administrative law
judge or designee, on a showing of good cause, may grant a
continuance of a hearing at the office. Except in cases of
emergency or other good cause shown, any request for a
continuance must be signed by both the party and the attorney
seeking the continuance.
A continuance of a hearing will be granted only upon a
showing of good cause. Good cause is established when the
underlying eventuality is unforeseen, is not due to lack of
preparation, is relevant, is brought to the chief administrative
law judge's attention in a timely manner and does not prejudice
the adversary.
Continuances will not be granted for the reason that an
attorney for one of the parties has scheduled a vacation for the
date set for the hearing unless the attorney has, prior to the
setting of the hearing date, notified the office of the
unavailable dates.
Continuances which are requested during the course of a
hearing are subject to the same standards but may be granted or
denied by the compensation judge assigned to the hearing.
Continuances of prehearing or settlement conferences at the
department or at the office are subject to the same standards
but may be granted or denied by a settlement judge, the calendar
judge, compensation judge, or other presiding officer assigned
to the prehearing or settlement conference.
Sec. 84. Minnesota Statutes 1986, section 176.341, is
amended by adding a subdivision to read:
Subd. 5. [EVIDENCE.] Absent a clear showing of surprise at
the hearing or the unexpected unavailability of a crucial
witness, all evidence must be submitted at the time of the
hearing. Upon a showing of good cause, the compensation judge
may grant an extension not to exceed 30 days following the
hearing date.
Sec. 85. Minnesota Statutes 1986, section 176.341, is
amended by adding a subdivision to read:
Subd. 6. [SIGNIFICANT FINANCIAL HARDSHIP; EXPEDITED
HEARINGS.] An employee may file a request for an expedited
hearing which must be granted upon a showing of significant
financial hardship. In determining whether a significant
financial hardship exists, consideration shall be given to
whether the employee is presently employed, the employee's
income from all sources, the nature and extent of the employee's
expenses and debts, whether the employee is the sole support of
any dependents, whether either foreclosure of homestead property
or repossession of necessary personal property is imminent, and
any other matters which have a direct bearing on the employee's
ability to provide food, clothing, and shelter for the employee
and any dependents.
A request for an expedited hearing must be accompanied by a
sworn affidavit of the employee providing facts necessary to
satisfy the criteria for a significant financial hardship. The
request may be made at the time a claim petition is filed or any
time thereafter. Unless the employer objects to the request in
the answer to the claim petition or within 20 calendar days of
the filing of a request made subsequent to the filing of the
claim petition, the affidavit is a sufficient showing of
significant financial hardship.
If a request for an expedited hearing has been served and
filed, the commissioner or compensation judge shall issue an
order granting or denying the request, provided that where the
parties agree that significant financial hardship exists or no
objection to the request is timely filed, the request is
automatically granted and the compensation judge or commissioner
need not issue an order. If it is denied, the matter will be
returned to the regular calendar of cases and the request for an
expedited hearing may be renewed at a settlement conference. If
no objection has been timely filed or if the request is granted,
the commissioner shall immediately refer the matter to the
office to commence prehearing procedures.
The calendar judge shall issue a prehearing order and
notice of the date, time, and place for a prehearing conference
which shall be set for no later than 45 days following the
filing of the affidavit of significant financial hardship. The
prehearing order shall require the parties to serve and file
prehearing statements no later than five working days prior to
the date set for the prehearing conference. The prehearing
statements shall include those items listed in the joint rules
of the division and the office which the calendar judge deems
appropriate.
Following any prehearing conference and absent an agreement
or stipulation from the parties, the commissioner or
compensation judge shall issue an order establishing deadlines
for the parties to complete their preparation for hearing and,
after consultation with the calendar judge, establishing the
date, time, and place for a hearing.
Sec. 86. Minnesota Statutes 1986, section 176.351,
subdivision 2a, is amended to read:
Subd. 2a. [SUBPOENAS NOT PERMITTED.] A member of the
rehabilitation review panel or medical services board or an
employee of the department who has conducted an
administrative or settlement conference or hearing under section
176.102, 176.103, 176.135, 176.136, 176.242, or 176.243 section
25 or 66, shall not be subpoenaed to testify regarding the
conference, hearing, or concerning a mediation session. A
member of the rehabilitation review panel, medical services
board, or an employee of the department may be required to
answer written interrogatories limited to the following
questions:
(a) Were all statutory and administrative procedural rules
adhered to in reaching the decision?
(b) If the answer to question (a) is no, what deviations
took place?
(c) Did the person making the decision consider all the
information presented prior to rendering a decision?
(d) Did the person making the decision rely on information
outside of the information presented at the conference or
hearing in making the decision?
(e) If the answer to question (d) is yes, what other
information was relied upon in making the decision?
In addition, for a hearing with a compensation judge and
with the consent of the compensation judge, an employee of the
department who conducted an administrative conference, hearing,
or mediation session, may be requested to answer written
interrogatories relating to statements made by a party at the
prior proceeding. These interrogatories shall be limited to
affirming or denying that specific statements were made by a
party.
Sec. 87. Minnesota Statutes 1986, section 176.361,
subdivision 2, is amended to read:
Subd. 2. [WRITTEN APPLICATION.] A person desiring to
intervene in a workers' compensation case as a party, including
but not limited to a health care provider who has rendered
services to an employee or an insurer who has paid benefits
under section 176.191, shall submit a timely written application
to intervene to the compensation or settlement judge to whom the
case has been assigned. If the case has not yet been assigned,
the application shall be made to the calendar judge if the case
has been certified to the office, or to the division if the case
has not been certified to commissioner, the office, or to the
mediation or rehabilitation and medical services section if the
matter is pending in that section court of appeals, whichever is
applicable.
(a) The application must be served on all parties either
personally, by first class mail, or registered mail, return
receipt requested. An application to intervene must be served
and filed within 30 days after a person has received notice that
a claim has been filed or a request for mediation made. An
untimely application is subject to denial under subdivision 7.
(b) In any other situation, timeliness will be determined
by the commissioner, compensation judge, or awarding authority
in each case based on circumstances at the time of filing. The
application must show how the applicant's legal rights, duties,
or privileges may be determined or affected by the case; state
the grounds and purposes for which intervention is sought; and
indicate the statutory right to intervene. The application must
be accompanied by the following, if applicable, except that if
the action is pending in the mediation or rehabilitation and
medical services section, clause (6) is not required and the
information listed in clauses (1) to (5) may be brought to the
conference rather than attached to the application:
(1) an itemization of disability payments showing the
period during which the payments were or are being made; the
weekly or monthly rate of the payments; and the amount of
reimbursement claimed;
(2) a summary of the medical or treatment payments, or
rehabilitation services provided by the division of vocational
rehabilitation, broken down by creditor, showing the total bill
submitted, the period of treatment or rehabilitation covered by
that bill, the amount of payment on that bill, and to whom the
payment was made;
(3) copies of all medical or treatment bills on which some
payment was made;
(4) copies of the work sheets or other information stating
how the payments on medical or treatment bills were calculated;
(5) a copy of the relevant policy or contract provisions
upon which the claim for reimbursement is based;
(6) a proposed order allowing intervention with sufficient
copies to serve on all parties;
(7) the name and telephone number of the person
representing the intervenor who has authority to reach a
settlement of the issues in dispute;
(8) proof of service or copy of the registered mail receipt;
(9) at the option of the intervenor, a proposed stipulation
which states that all of the payments for which reimbursement is
claimed are related to the injury or condition in dispute in the
case and that, if the petitioner is successful in proving the
compensability of the claim, it is agreed that the sum be
reimbursed to the intervenor; and
(10) if represented by an attorney, the name, address,
telephone number, and Minnesota Supreme Court license number of
the attorney.
Sec. 88. Minnesota Statutes 1986, section 176.361,
subdivision 5, is amended to read:
Subd. 5. [ORDER.] If an objection to intervention remains
following settlement or pretrial conferences, the calendar
commissioner or compensation judge shall rule on the
intervention and the order is binding on the compensation judge
to whom the case is assigned for hearing.
Sec. 89. Minnesota Statutes 1986, section 176.361,
subdivision 7, is amended to read:
Subd. 7. [EFFECTS OF NONCOMPLIANCE.] Failure to comply
with this section shall not result in a denial of the claim for
reimbursement unless the compensation judge, or commissioner, or
settlement judge determines that the noncompliance has
materially prejudiced the interests of the other parties.
Sec. 90. Minnesota Statutes 1986, 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. 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, except where expedited procedures require a
shorter time, 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
administrative law judge 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 administrative law judge determines that all
decisions of that judge have been issued within the time limit
limits prescribed by this section chapter.
Sec. 91. Minnesota Statutes 1986, section 176.411,
subdivision 1, is amended to read:
Subdivision 1. [CONDUCT OF HEARINGS AND INVESTIGATIONS.]
Except as otherwise provided by this chapter, when a
compensation judge makes an investigation or conducts a hearing,
the compensation judge is bound neither by the common law or
statutory rules of evidence nor by technical or formal rules of
pleading or procedure. Hearsay evidence which is reliable is
admissible. The investigation or hearing shall be conducted in
a manner to ascertain the substantial rights of the parties.
Findings of fact shall be based upon competent relevant and
material evidence only, as presented by competent witnesses, and
shall comport with section 176.021.
Sec. 92. Minnesota Statutes 1986, section 176.421, is
amended by adding a subdivision to read:
Subd. 3a. [CROSS-APPEAL.] The respondent may cross-appeal
within the 30-day period for taking an appeal, or within 15 days
after service of the notice of appeal on that respondent,
whichever is later.
Sec. 93. Minnesota Statutes 1986, 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 administrative law judge
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.
The first party 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 chief
administrative law judge may require payment for transcription
costs to be made in advance of the transcript preparation. 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 administrative law judge
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. 94. Minnesota Statutes 1986, section 176.442, is
amended to read:
176.442 [APPEALS FROM DECISIONS OF COMMISSIONER.]
Except for a commissioner's decision which may be heard de
novo in another proceeding including but not limited to a
decision from an administrative conference under section
176.102, 176.103, 176.242, or 176.243, 36, 73, or a summary
decision under section 176.305, any decision or determination of
the commissioner 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 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. 95. Minnesota Statutes 1986, section 176.511,
subdivision 1, is amended to read:
Subdivision 1. [PARTIES NOT AWARDED COSTS.] Except as
provided otherwise by this chapter and specifically by this
section, in appeals before the workers' compensation court of
appeals or hearings proceedings before the division or a
compensation judge, the rehabilitation review panel, or the
medical services review board costs shall not be awarded to
either any party.
Sec. 96. Minnesota Statutes 1986, section 176.511,
subdivision 2, is amended to read:
Subd. 2. [DISBURSEMENTS, TAXATION.] The commissioner or
compensation judge, the commissioner on behalf of the
rehabilitation review panel or the medical services review board
or on appeals to appeal the workers' compensation court of
appeals, the workers' compensation court of appeals may award
the prevailing party reimbursement for actual and necessary
disbursements. These disbursements shall be taxed upon five
days written notice to adverse parties.
Sec. 97. Minnesota Statutes 1986, section 176.511,
subdivision 3, is amended to read:
Subd. 3. [ATTORNEY'S FEE, ALLOWANCE.] Where upon an appeal
to the workers' compensation court of appeals, an award of
compensation is affirmed, or modified and affirmed, or an order
disallowing compensation is reversed, the workers' compensation
court of appeals may include in its award as an incident to its
review on appeal an amount to cover a reasonable attorney's fee,
or it may allow the fee in a proceeding to tax disbursements.
If the employer or insurer files a notice of discontinuance
of an employee's benefits and an administrative conference is
held to resolve the dispute, but the employer or insurer fails
to attend the administrative conference, the commissioner or
compensation judge may order the employer or insurer to pay the
employee's attorney fees as a cost under this section if the
employee's benefits are continued.
Sec. 98. Minnesota Statutes 1986, section 176.521, is
amended to read:
176.521 [SETTLEMENT OF CLAIMS.]
Subdivision 1. [VALIDITY.] An agreement between an
employee or an employee's dependent and the employer or insurer
to settle any claim, which is not upon appeal before
the workers' compensation court of appeals, for compensation
under this chapter is valid where it has been executed in
writing and signed by the parties and intervenors in the matter,
and, where one or more of the parties is not represented by an
attorney, the division commissioner or a compensation judge has
approved the settlement and made an award thereon. If the
matter is upon appeal before the workers' compensation court of
appeals or district court, the workers' compensation court of
appeals or district court is the approving body.
Subd. 2. [APPROVAL.] Settlements shall be approved only if
the terms conform with this chapter.
The division commissioner, 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 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 commissioner,
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.
Subd. 2a. [SETTLEMENTS NOT SUBJECT TO APPROVAL.] When a
settled case is not subject to approval, upon receipt of the
stipulation for settlement, the commissioner, a compensation
judge, 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.
Subd. 3. [SETTING ASIDE AWARD UPON SETTLEMENT.]
Notwithstanding the provisions of 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,
the workers' compensation court of appeals may set aside an
award made upon a settlement, pursuant to this chapter. In
appropriate cases, the workers' compensation court of appeals
may refer the matter to the chief administrative law judge for
assignment to a compensation judge for hearing.
Sec. 99. [176.540] [TRANSFER OF STATE CLAIMS UNIT TO
DEPARTMENT OF EMPLOYEE RELATIONS.]
The responsibilities of the commissioner of labor and
industry relating to the administration and payment of workers'
compensation benefits to state employees under chapter 176 and
the administration of the peace officers benefits fund under
chapter 176B, and the staff assigned to administer these
responsibilities, are hereby transferred to the department of
employee relations under section 15.039. The complement
positions to be transferred shall be determined by the
commissioner of administration in consultation with the
commissioners of employee relations and labor and industry.
Sec. 100. Minnesota Statutes 1986, section 176.541,
subdivision 2, is amended to read:
Subd. 2. [DEFENSE OF CLAIM AGAINST STATE.] When the
commissioner of the department of labor and industry employee
relations believes that a claim against the state for
compensation should be contested, the commissioner shall defend
the state claim.
Sec. 101. Minnesota Statutes 1986, section 176.541,
subdivision 3, is amended to read:
Subd. 3. [DUTIES OF ATTORNEY GENERAL.] At any stage in
such a compensation proceeding, the attorney general may assume
the duty of defending the state. When the commissioner of the
department of labor and industry employee relations or a
department of this state requests the attorney general to assume
the defense, the attorney general shall do so.
Sec. 102. Minnesota Statutes 1986, section 176.541,
subdivision 4, is amended to read:
Subd. 4. [MEDICAL EXAMINATION OF EMPLOYEE; WITNESSES;
CONDUCT OF DEFENSE.] In conducting a defense against a claim for
compensation, the commissioner of the department of labor and
industry employee relations or the attorney general, as the case
may be, may require that an employee submit to a medical
examination, procure the attendance of expert and other
witnesses at a hearing, and do any other act necessary to
conduct a proper defense.
Sec. 103. Minnesota Statutes 1986, section 176.541,
subdivision 6, is amended to read:
Subd. 6. [LEGAL AND CLERICAL HELP.] The commissioner of
the department of labor and industry employee relations may
employ such legal and clerical help as authorized by the
department of administration. The salaries of these persons
shall be paid from the state compensation revolving fund, but
shall be apportioned among the several departments of the state
in relation to the amount of compensation paid to employees of
any department as against the total amount of compensation paid
to employees of all departments.
Sec. 104. Minnesota Statutes 1986, section 176.571,
subdivision 1, is amended to read:
Subdivision 1. [PRELIMINARY INVESTIGATION.] When the head
of a department has filed a report or the commissioner of the
department of labor and industry employee relations has
otherwise received information of the occurrence of an injury to
a state employee for which liability to pay compensation may
exist, the commissioner of the department of labor and industry
employee relations shall make a preliminary investigation to
determine the question of probable liability.
In making this investigation, the commissioner of the
department of labor and industry employee relations may require
the assistance of the head of any department or any employee of
the state. The commissioner of the department of labor and
industry employee relations may require that all facts be
furnished which appear in the records of any state department
bearing on the issue.
Sec. 105. Minnesota Statutes 1986, section 176.571,
subdivision 2, is amended to read:
Subd. 2. [FINDINGS OF FACT, PROPOSED ORDER DETERMINATION
BY DEPARTMENT.] When the commissioner of the department of labor
and industry employee relations has completed an investigation,
the commissioner shall make findings of fact and shall enter an
award or other order which the commissioner proposes to make
relating to the liability of the state to pay
compensation inform the claimant, the head of the employing
department, and the commissioner of finance in writing of the
action taken.
Sec. 106. Minnesota Statutes 1986, section 176.572, is
amended to read:
176.572 [CONTRACT WITH INSURANCE CARRIERS.]
The commissioner of employee relations 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. 107. Minnesota Statutes 1986, section 176.581, is
amended to read:
176.581 [FINDINGS AND FINAL ORDER PAYMENT TO STATE
EMPLOYEES.]
Subdivision 1. [FILING OF CERTIFIED COPIES.] The
commissioner of the department of labor and industry shall file
a certified copy of the findings and final order with the
attorney general and the commissioner of finance.
Subd. 2. [PAYMENT OF COMPENSATION.] Upon a warrant
prepared by the commissioner of the department of labor and
industry employee relations and approved by the commissioner of
finance, and in accordance with the terms of the order awarding
compensation, the state treasurer shall pay compensation to the
employee or the employee's dependent. These payments shall be
made from money appropriated for this purpose.
Subd. 3. [RECEIPTS FILED.] The person to whom compensation
is paid shall file with the commissioner of the department of
labor and industry all current interim and final receipts for
such payment as is required of employers.
Sec. 108. Minnesota Statutes 1986, section 176.591,
subdivision 3, is amended to read:
Subd. 3. [COMPENSATION PAYMENTS UPON WARRANTS.] The state
treasurer shall make compensation payments from the fund only as
authorized by this chapter upon warrants of the commissioner of
the department of labor and industry employee relations.
Sec. 109. Minnesota Statutes 1986, section 176.603, is
amended to read:
176.603 [COST OF ADMINISTERING CHAPTER, PAYMENT.]
The annual cost to the commissioner of the department of
labor and industry employee relations of administering this
chapter in relation to state employees and the necessary
expenses which the department of labor and industry employee
relations or the attorney general incurs in investigating,
administering, and defending a claim against the state for
compensation shall be paid from the state compensation revolving
fund.
Sec. 110. Minnesota Statutes 1986, section 176.83,
subdivision 5, is amended to read:
Subd. 5. [EXCESSIVE MEDICAL SERVICES.] 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 payer 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, and
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 unless the
commissioner, medical services review board, or workers'
compensation court of appeals or compensation judge determines
at a hearing or administrative conference that the level,
frequency, or cost was not excessive in which case the insurer,
self-insurer, or group self-insurer shall make the payment
deemed reasonable.
A health or rehabilitation provider who is determined by
the commissioner rehabilitation review panel or medical services
review board, after hearing, 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 this chapter. A
prohibition imposed on a provider under this subdivision 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 subdivision shall require
insurers, self-insurers, and group self-insurers to report
medical and other data necessary to implement the procedures
required by this clause.
Sec. 111. Minnesota Statutes 1986, section 176.83,
subdivision 7, is amended to read:
Subd. 7. [MISCELLANEOUS RULES.] Rules necessary for
implementing and administering the provisions of sections
176.131, 176.132, 176.134, sections 176.242 52 and 176.243 53;
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.
Sec. 112. Minnesota Statutes 1986, section 176.83,
subdivision 11, is amended to read:
Subd. 11. [SUITABLE GAINFUL EMPLOYMENT INDEPENDENT
CONTRACTORS.] 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."
Sec. 113. Minnesota Statutes 1986, section 176.84, is
amended to read:
176.84 [SPECIFICITY OF NOTICE OR STATEMENT.]
Subdivision 1. [SPECIFICITY REQUIRED.] 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 of discontinuance and denials of
liability 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.
Subd. 2. [PENALTY.] The commissioner or compensation judge
may impose a penalty of $300 for each violation of subdivision 1.
Subd. 3. [EFFECTIVE DATE.] This section shall not be
effective until the commissioner adopts rules which specify what
is required to be contained in the notice of discontinuance and
the denial of liability.
Sec. 114. Minnesota Statutes 1986, section 176B.02, is
amended to read:
176B.02 [PEACE OFFICERS BENEFIT FUND.]
There is hereby created in the state treasury an account to
be known as peace officers benefit fund. Funds in the peace
officers benefit fund shall consist of moneys appropriated to
that fund. The administrator of the fund is the commissioner of
labor and industry employee relations, who shall follow the
procedures specified in section 176.541, subdivisions 2, 3, and
4.
Sec. 115. Minnesota Statutes 1986, section 176B.05, is
amended to read:
176B.05 [ATTORNEY'S FEES FOR CLAIMING BENEFITS.]
No fee for legal services which is claimed for the work of
an attorney relating to a claim made pursuant to the provisions
of sections 176B.01 to 176B.05 is binding unless the amount of
the fee charged is determined and approved in writing by the
commissioner, compensation judge, or the workers' compensation
court of appeals.
Sec. 116. [PREMIUM REDUCTION RECOMMENDATIONS.]
The commissioner of labor and industry shall make detailed
recommendations to the legislature proposing changes in the
workers' compensation system, before January 1, 1988, which will
result in reducing workers' compensation insurance premiums of
employers. The proposal shall consider the level of wage
replacement of benefits and shall be designed to reduce the high
rate of litigation and to increase the equity of the system.
Sec. 117. [REPEALER.]
Minnesota Statutes 1986, sections 176.012; 176.101,
subdivision 3v; 176.102, subdivision 6a; 176.103, subdivision 4;
176.136, subdivision 4; 176.195, subdivisions 4, 5, and 6;
176.241; 176.242; 176.2421; 176.243; 176.244; 176.271,
subdivision 2; 176.501; 176.571, subdivisions 3, 4, 5, 6, and 7;
and 176.602, are repealed.
Sec. 118. [EFFECTIVE DATES.]
Sections 42, 44, 54, 62, 63, 64, 67, 69, 78, and 79 are
effective October 1, 1987. All other sections are effective
July 1, 1987.
Approved May 29, 1987
Official Publication of the State of Minnesota
Revisor of Statutes