1.1                          A bill for an act 
  1.2             relating to workers' compensation; modifying 
  1.3             provisions relating to procedures and benefits; 
  1.4             providing penalties; amending Minnesota Statutes 1994, 
  1.5             sections 79.211, subdivision 1; 175.16; 176.011, 
  1.6             subdivision 25; 176.021, subdivisions 1, 3 and 3a; 
  1.7             176.061, subdivision 10; 176.081, subdivisions 1, 7a, 
  1.8             and 9; 176.101, subdivisions 1, 2, 4, 5, 6, 8, and by 
  1.9             adding subdivisions; 176.102, subdivision 11; 176.105, 
  1.10            subdivision 4; 176.106; 176.111, subdivisions 6, 7, 8, 
  1.11            12, 14, 15, and 20; 176.135, subdivision 1; 176.178; 
  1.12            176.179; 176.191, subdivisions 5, 7, 8, and by adding 
  1.13            a subdivision; 176.221, subdivision 6a; 176.238, 
  1.14            subdivisions 3, 4, 5, and 6; 176.239, subdivisions 1, 
  1.15            2, 3, 4, 5, 7, 8, 9, and 10; 176.291; 176.305, 
  1.16            subdivisions 1, 1a, 2, and 4; 176.321, subdivisions 2 
  1.17            and 3; 176.322; 176.645, subdivision 1; 176.66, 
  1.18            subdivision 11; 176.82; and 268.08, subdivision 3; 
  1.19            proposing coding for new law in Minnesota Statutes, 
  1.20            chapters 175; and 176; repealing Minnesota Statutes 
  1.21            1994, sections 175.007; 176.011, subdivision 26; 
  1.22            176.081, subdivisions 2, 5, 7, and 8; 176.101, 
  1.23            subdivisions 3a, 3b, 3c, 3d, 3e, 3f, 3g, 3h, 3i, 3j, 
  1.24            3k, 3l, 3m, 3n, 3o, 3p, 3q, 3r, 3s, 3t, and 3u; 
  1.25            176.132; 176.133; and 176.191, subdivision 6. 
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27                             ARTICLE 1
  1.28     Section 1.  Minnesota Statutes 1994, section 176.011, 
  1.29  subdivision 25, is amended to read: 
  1.30     Subd. 25.  [MAXIMUM MEDICAL IMPROVEMENT.] "Maximum medical 
  1.31  improvement" means the date after which no further significant 
  1.32  recovery from or significant lasting improvement to a personal 
  1.33  injury can reasonably be anticipated, based upon reasonable 
  1.34  medical probability, irrespective and regardless of subjective 
  1.35  complaints of pain.  Once the date of maximum medical 
  2.1   improvement has been determined, no further determinations of 
  2.2   other dates of maximum medical improvement for that personal 
  2.3   injury is permitted.  The determination that an employee has 
  2.4   reached maximum medical improvement shall not be rendered 
  2.5   ineffective by the worsening of the employee's medical condition 
  2.6   and recovery therefrom.  
  2.7      Sec. 2.  Minnesota Statutes 1994, section 176.021, 
  2.8   subdivision 1, is amended to read: 
  2.9      Subdivision 1.  [LIABILITY FOR COMPENSATION.] Except as 
  2.10  excluded by this chapter all employers and employees are subject 
  2.11  to the provisions of this chapter.  
  2.12     Every employer is liable for compensation according to the 
  2.13  provisions of this chapter and is liable to pay compensation in 
  2.14  every case of personal injury or death of an employee arising 
  2.15  out of and in the course of employment without regard to the 
  2.16  question of negligence.  The burden of proof of these facts is 
  2.17  upon the employee.  
  2.18     If the injury was intentionally self-inflicted or the 
  2.19  intoxication of the employee is the proximate cause of the 
  2.20  injury, then the employer is not liable for compensation.  The 
  2.21  burden of proof of these facts is upon the employer. 
  2.22     Sec. 3.  Minnesota Statutes 1994, section 176.101, 
  2.23  subdivision 4, is amended to read: 
  2.24     Subd. 4.  [PERMANENT TOTAL DISABILITY.] For permanent total 
  2.25  disability, as defined in subdivision 5, the compensation shall 
  2.26  be 66-2/3 percent of the daily wage at the time of the injury, 
  2.27  subject to a maximum weekly compensation equal to the maximum 
  2.28  weekly compensation for a temporary total disability and a 
  2.29  minimum weekly compensation equal to the minimum weekly 
  2.30  compensation for a temporary total disability 65 percent of the 
  2.31  statewide average weekly wage.  This compensation shall be paid 
  2.32  during the permanent total disability of the injured employee 
  2.33  but after a total of $25,000 of weekly compensation has been 
  2.34  paid, the amount of the weekly compensation benefits being paid 
  2.35  by the employer shall be reduced by the amount of any disability 
  2.36  benefits being paid by any government disability benefit program 
  3.1   if the disability benefits are occasioned by the same injury or 
  3.2   injuries which give rise to payments under this subdivision.  
  3.3   This reduction shall also apply to any old age and survivor 
  3.4   insurance benefits.  Payments shall be made at the intervals 
  3.5   when the wage was payable, as nearly as may be.  In case an 
  3.6   employee who is permanently and totally disabled becomes an 
  3.7   inmate of a public institution, no compensation shall be payable 
  3.8   during the period of confinement in the institution, unless 
  3.9   there is wholly dependent on the employee for support some 
  3.10  person named in section 176.111, subdivision 1, 2 or 3, in which 
  3.11  case the compensation provided for in section 176.111, during 
  3.12  the period of confinement, shall be paid for the benefit of the 
  3.13  dependent person during dependency.  The dependency of this 
  3.14  person shall be determined as though the employee were deceased. 
  3.15     Sec. 4.  Minnesota Statutes 1994, section 176.101, 
  3.16  subdivision 5, is amended to read: 
  3.17     Subd. 5.  [DEFINITION.] (a) For purposes of subdivision 4, 
  3.18  permanent total disability means only:  
  3.19     (1) the total and permanent loss of the sight of both eyes, 
  3.20  the loss of both arms at the shoulder, the loss of both legs so 
  3.21  close to the hips that no effective artificial members can be 
  3.22  used, complete and permanent paralysis, total and permanent loss 
  3.23  of mental faculties; or 
  3.24     (2) any other injury that results in a disability rating 
  3.25  under this chapter of at least 20 percent of the whole body 
  3.26  which totally and permanently incapacitates the employee from 
  3.27  working at an occupation which brings the employee an 
  3.28  income.  Local labor market conditions may not be considered in 
  3.29  making the total and permanent incapacitation determination. 
  3.30     (b) For purposes of paragraph (a), clause (2), "totally and 
  3.31  permanently incapacitated" means that the employee's physical 
  3.32  disability, in combination with the employee's age, education, 
  3.33  training, and experience, causes the employee to be unable to 
  3.34  secure anything more than sporadic employment resulting in an 
  3.35  insubstantial income. 
  3.36     Sec. 5.  Minnesota Statutes 1994, section 176.101, 
  4.1   subdivision 8, is amended to read: 
  4.2      Subd. 8.  [RETIREMENT CESSATION OF BENEFITS.] Temporary 
  4.3   total disability payments shall cease at retirement.  
  4.4   "Retirement" means that a preponderance of the evidence supports 
  4.5   a conclusion that an employee has retired.  The subjective 
  4.6   statement of an employee that the employee is not retired is not 
  4.7   sufficient in itself to rebut objective evidence of retirement 
  4.8   but may be considered along with other evidence.  
  4.9      For injuries occurring after January 1, 1984, an employee 
  4.10  who receives social security old age and survivors insurance 
  4.11  retirement benefits is presumed retired from the labor market.  
  4.12  This presumption is rebuttable by a preponderance of the 
  4.13  evidence.  Permanent total disability benefits shall cease at 
  4.14  age 67 provided that the employee is eligible to receive 
  4.15  disability benefits being paid by a government disability 
  4.16  benefit program if the disability benefits are occasioned by the 
  4.17  same injury or injuries which gave rise to payments under this 
  4.18  chapter, or if the employee is eligible to receive any old age 
  4.19  and survivor insurance benefits.  If the employee is not 
  4.20  eligible, then permanent total disability benefits may continue 
  4.21  after age 67. 
  4.22     Sec. 6.  Minnesota Statutes 1994, section 176.101, is 
  4.23  amended by adding a subdivision to read: 
  4.24     Subd. 9.  [VIOLATIONS OF SAFETY PROVISION, PENALTY.] If 
  4.25  injury is caused by the failure of the employer to comply with 
  4.26  any statute or any lawful order of the department, compensation 
  4.27  and death benefits provided in this chapter shall be increased 
  4.28  15 percent but the total increase may not exceed $15,000.  
  4.29  Failure of an employer to reasonably enforce compliance by 
  4.30  employees with that statute or order of the department 
  4.31  constitutes failure by the employer to comply with that statute 
  4.32  or order. 
  4.33     Sec. 7.  Minnesota Statutes 1994, section 176.101, is 
  4.34  amended by adding a subdivision to read: 
  4.35     Subd. 10.  [DECREASED COMPENSATION.] If injury is caused by 
  4.36  the failure of the employee to use safety devices which are 
  5.1   provided in accordance with any statute or lawful order of the 
  5.2   department and are adequately maintained, and the use of which 
  5.3   is reasonably enforced by the employer, or if injury results 
  5.4   from the employee's failure to obey any reasonable rule adopted 
  5.5   and reasonably enforced by the employer for the safety of the 
  5.6   employee and of which the employee has notice, or if injury 
  5.7   results from the intoxication of the employee by alcohol 
  5.8   beverages or use of a controlled substance, the compensation and 
  5.9   death benefit provided in this chapter shall be reduced 15 
  5.10  percent but the total reduction may not exceed $15,000. 
  5.11     Sec. 8.  Minnesota Statutes 1994, section 176.645, 
  5.12  subdivision 1, is amended to read: 
  5.13     Subdivision 1.  [AMOUNT.] For injuries occurring after 
  5.14  October 1, 1975 for which benefits are payable under section 
  5.15  176.101, subdivisions 1, 2 and 4, and section 176.111, 
  5.16  subdivision 5, the total benefits due the employee or any 
  5.17  dependents shall be adjusted in accordance with this section.  
  5.18  On October 1, 1981, and thereafter on the anniversary of the 
  5.19  date of the employee's injury the total benefits due shall be 
  5.20  adjusted by multiplying the total benefits due prior to each 
  5.21  adjustment by a fraction, the denominator of which is the 
  5.22  statewide average weekly wage for December 31, of the year two 
  5.23  years previous to the adjustment and the numerator of which is 
  5.24  the statewide average weekly wage for December 31, of the year 
  5.25  previous to the adjustment.  For injuries occurring after 
  5.26  October 1, 1975, all adjustments provided for in this section 
  5.27  shall be included in computing any benefit due under this 
  5.28  section.  Any limitations of amounts due for daily or weekly 
  5.29  compensation under this chapter shall not apply to adjustments 
  5.30  made under this section.  No adjustment increase made on or 
  5.31  after October 1, 1977, but prior to October 1, 1992, under this 
  5.32  section shall exceed six percent a year; in those instances 
  5.33  where the adjustment under the formula of this section would 
  5.34  exceed this maximum, the increase shall be deemed to be six 
  5.35  percent.  No adjustment increase made on or after October 1, 
  5.36  1992, under this section shall exceed four percent a year; in 
  6.1   those instances where the adjustment under the formula of this 
  6.2   section would exceed this maximum, the increase shall be deemed 
  6.3   to be four percent.  No adjustment increase shall be made under 
  6.4   this section on or after October 1, 1994, for any injuries 
  6.5   occurring after October 1, 1975.  The workers' compensation 
  6.6   advisory council may consider adjustment increases and make 
  6.7   recommendations to the legislature. 
  6.8      Sec. 9.  Minnesota Statutes 1994, section 176.66, 
  6.9   subdivision 11, is amended to read: 
  6.10     Subd. 11.  [AMOUNT OF COMPENSATION.] The compensation for 
  6.11  an occupational disease is 66-2/3 percent of the employee's 
  6.12  weekly wage on the date of injury subject to a maximum 
  6.13  compensation equal to the maximum compensation in effect on the 
  6.14  date of last exposure.  The employee shall be eligible for 
  6.15  supplementary benefits notwithstanding the provisions of section 
  6.16  176.132, after four years have elapsed since the date of last 
  6.17  significant exposure to the hazard of the occupational disease 
  6.18  if that employee's weekly compensation rate is less than the 
  6.19  current supplementary benefit rate.  
  6.20     Sec. 10.  [REPEALER.] 
  6.21     Minnesota Statutes 1994, section 176.132, is repealed. 
  6.22     Sec. 11.  [EFFECTIVE DATE.] 
  6.23     Sections 1, 2, and 4 to 8 are effective October 1, 1995.  
  6.24  Sections 3, 9, and 10 apply to a personal injury, as defined 
  6.25  under Minnesota Statutes, section 176.011, subdivision 16, 
  6.26  occurring on or after October 1, 1991. 
  6.27                             ARTICLE 2
  6.28     Section 1.  Minnesota Statutes 1994, section 175.16, is 
  6.29  amended to read: 
  6.30     175.16 [DIVISIONS.] 
  6.31     Subdivision 1.  [ESTABLISHED.] The department of labor and 
  6.32  industry shall consist of the following divisions:  division of 
  6.33  workers' compensation, division of boiler inspection, division 
  6.34  of occupational safety and health, division of statistics, 
  6.35  division of steamfitting standards, division of voluntary 
  6.36  apprenticeship, division of labor standards, and such other 
  7.1   divisions as the commissioner of the department of labor and 
  7.2   industry may deem necessary and establish.  Each division of the 
  7.3   department and persons in charge thereof shall be subject to the 
  7.4   supervision of the commissioner of the department of labor and 
  7.5   industry and, in addition to such duties as are or may be 
  7.6   imposed on them by statute, shall perform such other duties as 
  7.7   may be assigned to them by said commissioner. 
  7.8      Subd. 2.  [FRAUD INVESTIGATION UNIT.] The department of 
  7.9   labor and industry shall contain a fraud investigation unit for 
  7.10  the purposes of investigating fraudulent or other illegal 
  7.11  practices of health care providers, employers, insurers, 
  7.12  attorneys, employees, and others related to workers' 
  7.13  compensation and to investigate other matters under the 
  7.14  jurisdiction of the department. 
  7.15     Sec. 2.  Minnesota Statutes 1994, section 176.178, is 
  7.16  amended to read: 
  7.17     176.178 [FRAUD.] 
  7.18     Subdivision 1.  [INTENT.] Any person who, with intent to 
  7.19  defraud, receives workers' compensation benefits to which the 
  7.20  person is not entitled by knowingly misrepresenting, misstating, 
  7.21  or failing to disclose any material fact is guilty of theft and 
  7.22  shall be sentenced pursuant to section 609.52, subdivision 3. 
  7.23     Subd. 2.  [FORMS.] The text of subdivision 1 shall be 
  7.24  placed on all forms prescribed by the commissioner for claims or 
  7.25  responses to claims for workers' compensation benefits under 
  7.26  this chapter.  The absence of the text does not constitute a 
  7.27  defense against prosecution under subdivision 1.  
  7.28     Sec. 3.  [176.861] [DISCLOSURE OF INFORMATION.] 
  7.29     Subdivision 1.  [INSURANCE INFORMATION.] The commissioner 
  7.30  may, in writing, require an insurance company to release to the 
  7.31  commissioner any or all relevant information or evidence the 
  7.32  commissioner deems important which the company may have in its 
  7.33  possession relating to a workers' compensation claim including 
  7.34  material relating to the investigation of the claim; statements 
  7.35  of any person, and any other evidence relevant to the 
  7.36  investigation. 
  8.1      Subd. 2.  [INFORMATION RELEASED TO AUTHORIZED PERSONS.] If 
  8.2   an insurance company has reason to believe that a claim may be 
  8.3   suspicious, fraudulent, or illegal, the company shall, in 
  8.4   writing, notify the commissioner and provide the commissioner 
  8.5   with all relevant material related to the company's inquiry into 
  8.6   the claim. 
  8.7      Subd. 3.  [GOOD FAITH IMMUNITY.] An insurance company or 
  8.8   its agent acting in its behalf and in good faith who releases 
  8.9   oral or written information under subdivisions 1 and 2 is immune 
  8.10  from civil or criminal liability that might otherwise be 
  8.11  incurred or imposed. 
  8.12     Subd. 4.  [SELF-INSURER; ASSIGNED RISK PLAN.] For the 
  8.13  purposes of this section "insurance company" includes a 
  8.14  self-insurer and the assigned risk plan and their agents. 
  8.15                             ARTICLE 3
  8.16     Section 1.  [175.0071] [WORKERS' COMPENSATION ADVISORY 
  8.17  COUNCIL.] 
  8.18     Subdivision 1.  [COUNCIL ON WORKERS' COMPENSATION.] There 
  8.19  is created in the department of labor and industry a council on 
  8.20  workers' compensation appointed by the commissioner of labor and 
  8.21  industry to consist of a designated employee of the department 
  8.22  of labor and industry as chair, five representatives of 
  8.23  employers, and five representatives of employees.  No person 
  8.24  registered as a lobbyist pursuant to chapter 10A shall be 
  8.25  appointed to or serve on the council.  The commissioner shall 
  8.26  also appoint three representatives of insurers authorized to do 
  8.27  a workers' compensation insurance business in this state as 
  8.28  nonvoting members of the council. 
  8.29     Subd. 2.  [COUNCIL RECOMMENDATIONS.] The council on 
  8.30  workers' compensation shall advise the department in carrying 
  8.31  out the purposes of chapter 176.  The council shall submit its 
  8.32  recommendations with respect to amendments to chapter 176 to 
  8.33  each session of the legislature and report its views upon any 
  8.34  pending bill relating to chapter 176 to the proper legislative 
  8.35  committee.  At the request of the chairs of the senate and house 
  8.36  committees on having jurisdiction over workers' compensation 
  9.1   matters, the department shall schedule a meeting of the council 
  9.2   with the members of the committees to review and discuss matters 
  9.3   of legislative concern arising under chapter 176. 
  9.4      Sec. 2.  Minnesota Statutes 1994, section 176.021, 
  9.5   subdivision 3, is amended to read: 
  9.6      Subd. 3.  [COMPENSATION, COMMENCEMENT OF PAYMENT.] All 
  9.7   employers shall commence payment of compensation at the time and 
  9.8   in the manner prescribed by this chapter without the necessity 
  9.9   of any agreement or any order of the division.  Except for 
  9.10  medical, burial, and other nonperiodic benefits, payments shall 
  9.11  be made as nearly as possible at the intervals when the wage was 
  9.12  payable, provided, however, that payments for permanent partial 
  9.13  disability shall be governed by section 176.101.  If doubt 
  9.14  exists as to the eventual permanent partial disability, payment 
  9.15  for the economic recovery compensation or impairment 
  9.16  compensation, whichever is due, pursuant to section 176.101, 
  9.17  shall be then made when due for the minimum permanent partial 
  9.18  disability ascertainable, and further payment shall be made upon 
  9.19  any later ascertainment of greater permanent partial 
  9.20  disability.  Prior to or at the time of commencement of the 
  9.21  payment of economic recovery compensation or lump sum or 
  9.22  periodic payment of impairment permanent partial compensation, 
  9.23  the employee and employer shall be furnished with a copy of the 
  9.24  medical report upon which the payment is based and all other 
  9.25  medical reports which the insurer has that indicate a permanent 
  9.26  partial disability rating, together with a statement by the 
  9.27  insurer as to whether the tendered payment is for minimum 
  9.28  permanent partial disability or final and eventual disability.  
  9.29  After receipt of all reports available to the insurer that 
  9.30  indicate a permanent partial disability rating, the employee 
  9.31  shall make available or permit the insurer to obtain any medical 
  9.32  report that the employee has or has knowledge of that contains a 
  9.33  permanent partial disability rating which the insurer does not 
  9.34  already have.  Economic recovery compensation or impairment 
  9.35  Permanent partial compensation pursuant to section 176.101 is 
  9.36  payable in addition to but not concurrently with compensation 
 10.1   for temporary total disability but is payable pursuant to 
 10.2   section 176.101.  Impairment Permanent partial compensation is 
 10.3   not payable concurrently and in addition to compensation for 
 10.4   permanent total disability pursuant to section 
 10.5   176.101.  Economic recovery compensation or impairment 
 10.6   compensation Permanent partial compensation pursuant to section 
 10.7   176.101 shall be withheld pending completion of payment for 
 10.8   temporary total disability, and no credit shall be taken for 
 10.9   payment of economic recovery compensation or 
 10.10  impairment permanent partial compensation against liability for 
 10.11  temporary total or future permanent total disability.  Liability 
 10.12  on the part of an employer or the insurer for disability of a 
 10.13  temporary total, temporary partial, and permanent total nature 
 10.14  shall be considered as a continuing product and part of the 
 10.15  employee's inability to earn or reduction in earning capacity 
 10.16  due to injury or occupational disease and compensation is 
 10.17  payable accordingly, subject to section 176.101.  Economic 
 10.18  recovery compensation or impairment Permanent partial 
 10.19  compensation is payable for functional loss of use or impairment 
 10.20  of function, permanent in nature, and payment therefore shall be 
 10.21  separate, distinct, and in addition to payment for any other 
 10.22  compensation, subject to section 176.101.  The right to receive 
 10.23  temporary total, temporary partial, or permanent total 
 10.24  disability payments vests in the injured employee or the 
 10.25  employee's dependents under this chapter or, if none, in the 
 10.26  employee's legal heirs at the time the disability can be 
 10.27  ascertained and the right is not abrogated by the employee's 
 10.28  death prior to the making of the payment. 
 10.29     The right to receive economic recovery permanent partial 
 10.30  compensation or impairment compensation vests in an injured 
 10.31  employee at the time the disability can be ascertained provided 
 10.32  that the employee lives for at least 30 days beyond the date of 
 10.33  the injury.  Upon the death of an employee who is receiving 
 10.34  economic recovery permanent partial compensation or impairment 
 10.35  compensation, further compensation is payable pursuant to 
 10.36  section 176.101.  Impairment compensation is payable under this 
 11.1   paragraph if vesting has occurred, the employee dies prior to 
 11.2   reaching maximum medical improvement, and the requirements and 
 11.3   conditions under section 176.101, subdivision 3e, are not met.  
 11.4      Disability ratings for permanent partial disability shall 
 11.5   be based on objective medical evidence.  
 11.6      Sec. 3.  Minnesota Statutes 1994, section 176.021, 
 11.7   subdivision 3a, is amended to read: 
 11.8      Subd. 3a.  [PERMANENT PARTIAL BENEFITS, PAYMENT.] Payments 
 11.9   for permanent partial disability as provided in section 176.101, 
 11.10  subdivision 3 2a, shall be made in the following manner:  
 11.11     (a) If the employee returns to work, payment shall be made 
 11.12  by lump sum at the same intervals as temporary total payments 
 11.13  were made; 
 11.14     (b) If temporary total payments have ceased, but the 
 11.15  employee has not returned to work, payment shall be made at the 
 11.16  same intervals as temporary total payments were made; 
 11.17     (c) If temporary total disability payments cease because 
 11.18  the employee is receiving payments for permanent total 
 11.19  disability or because the employee is retiring or has retired 
 11.20  from the work force, then payment shall be made by lump sum at 
 11.21  the same intervals as temporary total payments were made; 
 11.22     (d) If the employee completes a rehabilitation plan 
 11.23  pursuant to section 176.102, but the employer does not furnish 
 11.24  the employee with work the employee can do in a permanently 
 11.25  partially disabled condition, and the employee is unable to 
 11.26  procure such work with another employer, then payment shall be 
 11.27  made by lump sum at the same intervals as temporary total 
 11.28  payments were made.  
 11.29     Sec. 4.  Minnesota Statutes 1994, section 176.061, 
 11.30  subdivision 10, is amended to read: 
 11.31     Subd. 10.  [INDEMNITY.] Notwithstanding the provisions of 
 11.32  chapter 65B or any other law to the contrary, an employer has a 
 11.33  right of indemnity for any compensation paid or payable pursuant 
 11.34  to this chapter, including temporary total compensation, 
 11.35  temporary partial compensation, permanent partial disability, 
 11.36  economic recovery compensation, impairment compensation, medical 
 12.1   compensation, rehabilitation, death, and permanent total 
 12.2   compensation.  
 12.3      Sec. 5.  Minnesota Statutes 1994, section 176.101, 
 12.4   subdivision 1, is amended to read: 
 12.5      Subdivision 1.  [TEMPORARY TOTAL DISABILITY.] (a) For 
 12.6   injury producing temporary total disability, the compensation is 
 12.7   66-2/3 percent of the weekly wage at the time of injury. 
 12.8      (b) On and after October 1, 1994, the maximum weekly 
 12.9   compensation payable shall be as follows: 
 12.10     (1) During the year commencing on October 1, 1992 1994, and 
 12.11  each year thereafter, the maximum weekly compensation payable is 
 12.12  105 percent of the statewide average weekly wage for the period 
 12.13  ending December 31 of the preceding year. 
 12.14     (2) During the year commencing on October 1, 1995, the 
 12.15  maximum weekly compensation payable is 106 percent of the 
 12.16  statewide average weekly wage for the period ending December 31 
 12.17  of the preceding year. 
 12.18     (3) During the year commencing on October 1, 1996, the 
 12.19  maximum weekly compensation payable is 107 percent of the 
 12.20  statewide average weekly wage for the period ending December 31 
 12.21  of the preceding year. 
 12.22     (4) During the year commencing on October 1, 1997, the 
 12.23  maximum weekly compensation payable is 108 percent of the 
 12.24  statewide average weekly wage for the period ending December 31 
 12.25  of the preceding year. 
 12.26     (5) During the year commencing on October 1, 1998, the 
 12.27  maximum weekly compensation payable is 109 percent of the 
 12.28  statewide average weekly wage for the period ending December 31 
 12.29  of the preceding year. 
 12.30     (6) During the year commencing on October 1, 1999, and each 
 12.31  year thereafter, the maximum weekly compensation payable is 110 
 12.32  percent of the statewide average weekly wage for the period 
 12.33  ending December 31 of the preceding year. 
 12.34     (c) The minimum weekly compensation payable is 20 percent 
 12.35  of the statewide average weekly wage for the period ending 
 12.36  December 31 of the preceding year or the injured employee's 
 13.1   actual weekly wage, whichever is less.  
 13.2      (d) Subject to subdivisions 3a to 3u this Temporary total 
 13.3   compensation shall be paid during the period of disability, 
 13.4   payment to be made at the intervals when the wage was payable, 
 13.5   as nearly as may be. and shall cease whenever any one of the 
 13.6   following occurs: 
 13.7      (1) the employee returns to work; 
 13.8      (2) the employee withdraws from the labor market; 
 13.9      (3) the disability ends and the employee fails to 
 13.10  diligently search for appropriate work; 
 13.11     (4) the employee refuses an offer of work that is 
 13.12  consistent with a plan of rehabilitation filed with the 
 13.13  commissioner which meets the requirements of section 176.102, 
 13.14  subdivision 4, or, if no plan has been filed, the employee 
 13.15  refuses an offer of gainful employment, paying at least 80 
 13.16  percent of the employee's preinjury wage that the employee can 
 13.17  do in the employee's physical condition; or 
 13.18     (5) the employee has reached maximum medical improvement, 
 13.19  except as provided in section 176.102, subdivision 11, paragraph 
 13.20  (b). 
 13.21     (e) Maximum medical improvement occurs on the earlier of: 
 13.22     (1) the date that the employee receives a written medical 
 13.23  report indicating that the employee has reached maximum medical 
 13.24  improvement; or 
 13.25     (2) the date that the employer or insurer serves the report 
 13.26  on the employee and the employee's attorney, if any. 
 13.27     (f) Once temporary total disability compensation has ceased 
 13.28  under paragraph (d), clause (1), (2), or (3), it may only be 
 13.29  recommenced prior to maximum medical improvement and only as 
 13.30  follows: 
 13.31     (1) if temporary total disability compensation ceased under 
 13.32  paragraph (d), clause (1), it may be recommenced if the employee 
 13.33  is laid off or terminated within one year of employment for 
 13.34  reasons other than misconduct or is medically unable to continue 
 13.35  at the job; 
 13.36     (2) if temporary total disability compensation ceased under 
 14.1   paragraph (d), clause (2), but the employee subsequently 
 14.2   returned to work, it may be recommenced in accordance with 
 14.3   clause (1); or 
 14.4      (3) if temporary total disability compensation ceased under 
 14.5   paragraph (d), clause (3), it may be recommenced if the employee 
 14.6   begins diligently searching for appropriate work.  Temporary 
 14.7   total disability compensation recommenced under this paragraph 
 14.8   (f) is subject to cessation under paragraph (d). 
 14.9      Recommenced temporary total disability compensation may not 
 14.10  be paid after the employee reaches maximum medical improvement, 
 14.11  except as provided under section 176.102, subdivision 11, 
 14.12  paragraph (b). 
 14.13     (g) Once temporary total disability compensation has ceased 
 14.14  under paragraph (d), clauses (4) and (5), it may not be 
 14.15  recommenced at a later date except as provided under section 
 14.16  176.102, subdivision 11, paragraph (b). 
 14.17     Sec. 6.  Minnesota Statutes 1994, section 176.101, 
 14.18  subdivision 2, is amended to read: 
 14.19     Subd. 2.  [TEMPORARY PARTIAL DISABILITY.] (a) In all cases 
 14.20  of temporary partial disability the compensation shall be 66-2/3 
 14.21  percent of the difference between the weekly wage of the 
 14.22  employee at the time of injury and the wage the employee is able 
 14.23  to earn in the employee's partially disabled condition.  This 
 14.24  compensation shall be paid during the period of disability 
 14.25  except as provided in this section, payment to be made at the 
 14.26  intervals when the wage was payable, as nearly as may be, and 
 14.27  subject to the maximum rate for temporary total compensation.  
 14.28     (b) Except as provided under subdivision 3k, Temporary 
 14.29  partial compensation may be paid only while the employee is 
 14.30  employed, earning less than the employee's weekly wage at the 
 14.31  time of the injury, in the event that the employee is receiving 
 14.32  permanent partial disability benefits pursuant to section 
 14.33  176.101, subdivision 6, temporary partial compensation may not 
 14.34  commence or be paid until all installment payments of permanent 
 14.35  partial disability have been paid, and the reduced wage the 
 14.36  employee is able to earn in the employee's partially disabled 
 15.1   condition is due to the injury.  Except as provided in section 
 15.2   176.102, subdivision 11, paragraph (b), temporary partial 
 15.3   compensation may not be paid for more than 225 weeks, or after 
 15.4   450 weeks after the date of injury, whichever occurs first.  
 15.5      (c) Temporary partial compensation must be reduced to the 
 15.6   extent that the wage the employee is able to earn in the 
 15.7   employee's partially disabled condition plus the temporary 
 15.8   partial disability payment otherwise payable under this 
 15.9   subdivision exceeds 500 percent of the statewide average weekly 
 15.10  wage. 
 15.11     Sec. 7.  Minnesota Statutes 1994, section 176.101, is 
 15.12  amended by adding a subdivision to read: 
 15.13     Subd. 2a.  [PERMANENT PARTIAL DISABILITY.] (a) Compensation 
 15.14  for permanent partial disability is as provided in this 
 15.15  subdivision.  Permanent partial disability must be rated as a 
 15.16  percentage of the whole body in accordance with rules adopted by 
 15.17  the commissioner under section 176.105.  The percentage 
 15.18  determined pursuant to the rules must be multiplied by the 
 15.19  corresponding amount in the following table: 
 15.20        Impairment rating                 Amount
 15.21            (percent)
 15.22              0-5                         $ 65,000
 15.23              6-10                          67,500
 15.24             11-15                          70,000
 15.25             16-20                          72,500
 15.26             21-25                          75,000
 15.27             26-30                          80,000
 15.28             31-35                          90,000
 15.29             36-40                         100,000
 15.30             41-45                         110,000
 15.31             46-50                         120,000
 15.32             51-55                         140,000
 15.33             56-60                         160,000
 15.34             61-65                         200,000
 15.35             66-70                         250,000
 15.36             71-75                         300,000
 16.1              76-80                         350,000
 16.2              81-85                         400,000
 16.3              86-90                         450,000
 16.4              91-95                         500,000
 16.5              96-100                        600,000
 16.6   An employee may not receive compensation for more than a 100 
 16.7   percent disability of the whole body, even if the employee 
 16.8   sustains disability to two or more body parts. 
 16.9      (b) Permanent partial disability is payable upon cessation 
 16.10  of temporary total disability under subdivision 1.  The 
 16.11  compensation is payable in installments at the same intervals 
 16.12  and in one-half of the amount as the employee's temporary total 
 16.13  disability rate on the date of injury.  Permanent partial 
 16.14  disability is not payable while temporary total compensation is 
 16.15  being paid.  Permanent partial disability is not payable to 
 16.16  permanently totally disabled employees.  
 16.17     Sec. 8.  Minnesota Statutes 1994, section 176.101, 
 16.18  subdivision 6, is amended to read: 
 16.19     Subd. 6.  [MINORS; APPRENTICES.] (a) If any employee 
 16.20  entitled to the benefits of this chapter is an apprentice of any 
 16.21  age and sustains a personal injury arising out of and in the 
 16.22  course of employment resulting in permanent total or a 
 16.23  compensable permanent partial disability, for the purpose of 
 16.24  computing the compensation to which the employee is entitled for 
 16.25  the injury, the compensation rate for temporary total, temporary 
 16.26  partial, a or permanent total disability or economic recovery 
 16.27  compensation shall be the maximum rate for temporary total 
 16.28  disability under subdivision 1. 
 16.29     (b) If any employee entitled to the benefits of this 
 16.30  chapter is a minor and sustains a personal injury arising out of 
 16.31  and in the course of employment resulting in permanent total 
 16.32  disability, for the purpose of computing the compensation to 
 16.33  which the employee is entitled for the injury, the compensation 
 16.34  rate for a permanent total disability shall be the maximum rate 
 16.35  for temporary total disability under subdivision 1. 
 16.36     Sec. 9.  Minnesota Statutes 1994, section 176.105, 
 17.1   subdivision 4, is amended to read: 
 17.2      Subd. 4.  [LEGISLATIVE INTENT; RULES; LOSS OF MORE THAN ONE 
 17.3   BODY PART.] (a) For the purpose of establishing a disability 
 17.4   schedule pursuant to clause (b), the legislature declares its 
 17.5   intent that the commissioner establish a disability schedule 
 17.6   which, assuming the same number and distribution of severity of 
 17.7   injuries, the aggregate total of impairment compensation and 
 17.8   economic recovery compensation benefits under section 176.101, 
 17.9   subdivisions 3a to 3u be approximately equal to the total 
 17.10  aggregate amount payable for permanent partial disabilities 
 17.11  under section 176.101, subdivision 3, provided, however, that 
 17.12  awards for specific injuries under the proposed schedule need 
 17.13  not be the same as they were for the same injuries under the 
 17.14  schedule pursuant to section 176.101, subdivision 3.  The 
 17.15  schedule shall be determined by sound actuarial evaluation and 
 17.16  shall be based on the benefit level which exists on January 1, 
 17.17  1983.  
 17.18     (b) The commissioner shall by rulemaking adopt procedures 
 17.19  setting forth rules for the evaluation and rating of functional 
 17.20  disability and the schedule for permanent partial disability and 
 17.21  to determine the percentage of loss of function of a part of the 
 17.22  body based on the body as a whole, including internal organs, 
 17.23  described in section 176.101, subdivision 3, and any other body 
 17.24  part not listed in section 176.101, subdivision 3, which the 
 17.25  commissioner deems appropriate.  
 17.26     The rules shall promote objectivity and consistency in the 
 17.27  evaluation of permanent functional impairment due to personal 
 17.28  injury and in the assignment of a numerical rating to the 
 17.29  functional impairment.  
 17.30     Prior to adoption of rules the commissioner shall conduct 
 17.31  an analysis of the current permanent partial disability schedule 
 17.32  for the purpose of determining the number and distribution of 
 17.33  permanent partial disabilities and the average compensation for 
 17.34  various permanent partial disabilities.  The commissioner shall 
 17.35  consider setting the compensation under the proposed schedule 
 17.36  for the most serious conditions higher in comparison to the 
 18.1   current schedule and shall consider decreasing awards for minor 
 18.2   conditions in comparison to the current schedule.  
 18.3      The commissioner may consider, among other factors, and 
 18.4   shall not be limited to the following factors in developing 
 18.5   rules for the evaluation and rating of functional disability and 
 18.6   the schedule for permanent partial disability benefits:  
 18.7      (1) the workability and simplicity of the procedures with 
 18.8   respect to the evaluation of functional disability; 
 18.9      (2) the consistency of the procedures with accepted medical 
 18.10  standards; 
 18.11     (3) rules, guidelines, and schedules that exist in other 
 18.12  states that are related to the evaluation of permanent partial 
 18.13  disability or to a schedule of benefits for functional 
 18.14  disability provided that the commissioner is not bound by the 
 18.15  degree of disability in these sources but shall adjust the 
 18.16  relative degree of disability to conform to the expressed intent 
 18.17  of clause (a) this section; 
 18.18     (4) rules, guidelines, and schedules that have been 
 18.19  developed by associations of health care providers or 
 18.20  organizations provided that the commissioner is not bound by the 
 18.21  degree of disability in these sources but shall adjust the 
 18.22  relative degree of disability to conform to the expressed intent 
 18.23  of clause (a) this section; 
 18.24     (5) the effect the rules may have on reducing litigation; 
 18.25     (6) the treatment of preexisting disabilities with respect 
 18.26  to the evaluation of permanent functional disability provided 
 18.27  that any preexisting disabilities must be objectively determined 
 18.28  by medical evidence; and 
 18.29     (7) symptomatology and loss of function and use of the 
 18.30  injured member.  
 18.31     The factors in paragraphs (1) to (7) shall not be used in 
 18.32  any individual or specific workers' compensation claim under 
 18.33  this chapter but shall be used only in the adoption of rules 
 18.34  pursuant to this section.  
 18.35     Nothing listed in paragraphs (1) to (7) shall be used to 
 18.36  dispute or challenge a disability rating given to a part of the 
 19.1   body so long as the whole schedule conforms with the expressed 
 19.2   intent of clause (a) this section. 
 19.3      (c) If an employee suffers a permanent functional 
 19.4   disability of more than one body part due to a personal injury 
 19.5   incurred in a single occurrence, the percent of the whole body 
 19.6   which is permanently partially disabled shall be determined by 
 19.7   the following formula so as to ensure that the percentage for 
 19.8   all functional disability combined does not exceed the total for 
 19.9   the whole body:  
 19.10                           A + B (1 - A) 
 19.11     where:  A is the greater percentage whole body loss of the 
 19.12  first body part; and B is the lesser percentage whole body loss 
 19.13  otherwise payable for the second body part.  A + B (1-A) is 
 19.14  equivalent to A + B - AB.  
 19.15     For permanent partial disabilities to three body parts due 
 19.16  to a single occurrence or as the result of an occupational 
 19.17  disease, the above formula shall be applied, providing that A 
 19.18  equals the result obtained from application of the formula to 
 19.19  the first two body parts and B equals the percentage for the 
 19.20  third body part.  For permanent partial disability to four or 
 19.21  more body parts incurred as described above, A equals the result 
 19.22  obtained from the prior application of the formula, and B equals 
 19.23  the percentage for the fourth body part or more in arithmetic 
 19.24  progressions. 
 19.25     Sec. 10.  Minnesota Statutes 1994, section 176.179, is 
 19.26  amended to read: 
 19.27     176.179 [RECOVERY OF OVERPAYMENTS.] 
 19.28     Notwithstanding section 176.521, subdivision 3, or any 
 19.29  other provision of this chapter to the contrary, except as 
 19.30  provided in this section, no lump sum or weekly payment, or 
 19.31  settlement, which is voluntarily paid to an injured employee or 
 19.32  the survivors of a deceased employee in apparent or seeming 
 19.33  accordance with the provisions of this chapter by an employer or 
 19.34  insurer, or is paid pursuant to an order of the workers' 
 19.35  compensation division, a compensation judge, or court of appeals 
 19.36  relative to a claim by an injured employee or the employee's 
 20.1   survivors, and received in good faith by the employee or the 
 20.2   employee's survivors shall be refunded to the paying employer or 
 20.3   insurer in the event that it is subsequently determined that the 
 20.4   payment was made under a mistake in fact or law by the employer 
 20.5   or insurer.  When the payments have been made to a person who is 
 20.6   entitled to receive further payments of compensation for the 
 20.7   same injury, the mistaken compensation may be taken as a full 
 20.8   credit against future lump sum benefit entitlement and as a 
 20.9   partial credit against future weekly periodic benefits.  The 
 20.10  credit applied against further payments of temporary total 
 20.11  disability, temporary partial disability, permanent partial 
 20.12  disability, permanent total disability, retraining benefits, or 
 20.13  death benefits, or weekly payments of economic recovery or 
 20.14  impairment compensation shall not exceed 20 percent of the 
 20.15  amount that would otherwise be payable. 
 20.16     A credit may not be applied against medical expenses due or 
 20.17  payable.  
 20.18     Where the commissioner or compensation judge determines 
 20.19  that the mistaken compensation was not received in good faith, 
 20.20  the commissioner or compensation judge may order reimbursement 
 20.21  of the compensation.  For purposes of this section, a payment is 
 20.22  not received in good faith if it is obtained through fraud, or 
 20.23  if the employee knew that the compensation was paid under 
 20.24  mistake of fact or law, and the employee has not refunded the 
 20.25  mistaken compensation. 
 20.26     Sec. 11.  Minnesota Statutes 1994, section 176.221, 
 20.27  subdivision 6a, is amended to read: 
 20.28     Subd. 6a.  [MEDICAL, REHABILITATION, ECONOMIC RECOVERY, AND 
 20.29  IMPAIRMENT AND PERMANENT PARTIAL COMPENSATION.] The penalties 
 20.30  provided by this section apply in cases where payment for 
 20.31  treatment under section 176.135, rehabilitation expenses under 
 20.32  section 176.102, subdivisions 9 and 11, economic recovery 
 20.33  compensation or impairment compensation or permanent partial 
 20.34  compensation are not made in a timely manner as required by law 
 20.35  or by rule adopted by the commissioner.  
 20.36     Sec. 12.  Minnesota Statutes 1994, section 176.82, is 
 21.1   amended to read: 
 21.2      176.82 [ACTION FOR CIVIL DAMAGES FOR OBSTRUCTING EMPLOYEE 
 21.3   SEEKING BENEFITS.] 
 21.4      Subdivision 1.  [RETALIATORY DISCHARGE.] Any person 
 21.5   discharging or threatening to discharge an employee for seeking 
 21.6   workers' compensation benefits or in any manner intentionally 
 21.7   obstructing an employee seeking workers' compensation benefits 
 21.8   is liable in a civil action for damages incurred by the employee 
 21.9   including any diminution in workers' compensation benefits 
 21.10  caused by a violation of this section including costs and 
 21.11  reasonable attorney fees, and for punitive damages not to exceed 
 21.12  three times the amount of any compensation benefit to which the 
 21.13  employee is entitled.  Damages awarded under this section shall 
 21.14  not be offset by any workers' compensation benefits to which the 
 21.15  employee is entitled. 
 21.16     Subd. 2.  [REFUSAL TO OFFER CONTINUED EMPLOYMENT.] An 
 21.17  employer who, without reasonable cause, refuses to offer 
 21.18  continued employment to its employee when employment is 
 21.19  available within the employee's physical limitations shall be 
 21.20  liable for one year's wages.  The wages are payable from the 
 21.21  date of the refusal to offer continued employment, and at the 
 21.22  same time and at the same rate as the employee's preinjury wage, 
 21.23  to continue during the period of the refusal up to a maximum of 
 21.24  $15,000.  These payments shall be in addition to any other 
 21.25  payments provided by this chapter.  In determining the 
 21.26  availability of employment, the continuance in business of the 
 21.27  employer shall be considered and written rules promulgated by 
 21.28  the employer with respect to seniority or the provisions or any 
 21.29  collective bargaining agreement with respect to seniority shall 
 21.30  govern. 
 21.31     Sec. 13.  Minnesota Statutes 1994, section 268.08, 
 21.32  subdivision 3, is amended to read: 
 21.33     Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
 21.34  eligible to receive benefits for any week with respect to which 
 21.35  the individual is receiving, has received, or has filed a claim 
 21.36  for remuneration in an amount equal to or in excess of the 
 22.1   individual's weekly benefit amount in the form of: 
 22.2      (1) termination, severance, or dismissal payment or wages 
 22.3   in lieu of notice whether legally required or not; provided that 
 22.4   if a termination, severance, or dismissal payment is made in a 
 22.5   lump sum, such lump sum payment shall be allocated over a period 
 22.6   equal to the lump sum divided by the employee's regular pay 
 22.7   while employed by such employer; provided such payment shall be 
 22.8   applied for a period immediately following the last day of 
 22.9   employment but not to exceed 28 calendar days provided that 50 
 22.10  percent of the total of any such payments in excess of eight 
 22.11  weeks shall be similarly allocated to the period immediately 
 22.12  following the 28 days; or 
 22.13     (2) vacation allowance paid directly by the employer for a 
 22.14  period of requested vacation, including vacation periods 
 22.15  assigned by the employer under the provisions of a collective 
 22.16  bargaining agreement, or uniform vacation shutdown; or 
 22.17     (3) compensation for loss of wages under the workers' 
 22.18  compensation law of this state or any other state or under a 
 22.19  similar law of the United States, or under other insurance or 
 22.20  fund established and paid for by the employer except that this 
 22.21  does not apply to an individual who is receiving temporary 
 22.22  partial compensation pursuant to section 176.101, subdivision 
 22.23  3k; or 
 22.24     (4) 50 percent of the pension payments from any fund, 
 22.25  annuity or insurance maintained or contributed to by a base 
 22.26  period employer including the armed forces of the United States 
 22.27  if the employee contributed to the fund, annuity or insurance 
 22.28  and all of the pension payments if the employee did not 
 22.29  contribute to the fund, annuity or insurance; or 
 22.30     (5) 50 percent of a primary insurance benefit under title 
 22.31  II of the Social Security Act, as amended, or similar old age 
 22.32  benefits under any act of Congress or this state or any other 
 22.33  state. 
 22.34     Provided, that if such remuneration is less than the 
 22.35  benefits which would otherwise be due under sections 268.03 to 
 22.36  268.231, the individual shall be entitled to receive for such 
 23.1   week, if otherwise eligible, benefits reduced by the amount of 
 23.2   such remuneration; provided, further, that if the appropriate 
 23.3   agency of such other state or the federal government finally 
 23.4   determines that the individual is not entitled to such benefits, 
 23.5   this provision shall not apply.  If the computation of reduced 
 23.6   benefits, required by this subdivision, is not a whole dollar 
 23.7   amount, it shall be rounded down to the next lower dollar amount.
 23.8      Sec. 14.  [REPEALER.] 
 23.9      Minnesota Statutes 1994, sections 175.007; 176.011, 
 23.10  subdivision 26; and 176.101, subdivisions 3a, 3b, 3c, 3d, 3e, 
 23.11  3f, 3g, 3h, 3i, 3j, 3k, 3l, 3m, 3n, 3o, 3p, 3q, 3r, 3s, 3t, and 
 23.12  3u, are repealed. 
 23.13     Sec. 15.  [EFFECTIVE DATE.] 
 23.14     Sections 1 to 14 are effective October 1, 1995. 
 23.15                             ARTICLE 4
 23.16     Section 1.  Minnesota Statutes 1994, section 79.211, 
 23.17  subdivision 1, is amended to read: 
 23.18     Subdivision 1.  [CERTAIN WAGES EXCLUDED INCLUDED FOR 
 23.19  RATEMAKING.] The rating association or an insurer shall not 
 23.20  include wages paid for a vacation, holiday, or sick leave in the 
 23.21  determination of a workers' compensation insurance premium. 
 23.22     An insurer, including the assigned risk plan, shall not 
 23.23  include wages paid for work performed in an adjacent state in 
 23.24  the determination of a workers' compensation premium if the 
 23.25  employer paid a workers' compensation insurance premium to the 
 23.26  exclusive state fund of the adjacent state on the wages earned 
 23.27  in the adjacent state. 
 23.28     Sec. 2.  Minnesota Statutes 1994, section 176.111, 
 23.29  subdivision 6, is amended to read: 
 23.30     Subd. 6.  [SPOUSE, NO DEPENDENT CHILD.] If the deceased 
 23.31  employee leaves a dependent surviving spouse and no dependent 
 23.32  child, there shall be paid to the spouse weekly workers' 
 23.33  compensation benefits at 50 percent of 1.25 times the weekly 
 23.34  wage at the time of the injury for a period of ten years, 
 23.35  including adjustments as provided in section 176.645.  
 23.36     Sec. 3.  Minnesota Statutes 1994, section 176.111, 
 24.1   subdivision 7, is amended to read: 
 24.2      Subd. 7.  [SPOUSE, ONE DEPENDENT CHILD.] If the deceased 
 24.3   employee leaves a surviving spouse and one dependent child, 
 24.4   there shall be paid to the surviving spouse for the benefit of 
 24.5   the spouse and child 60 percent of 1.25 times the daily wage at 
 24.6   the time of the injury of the deceased until the child is no 
 24.7   longer a dependent as defined in subdivision 1.  At that time 
 24.8   there shall be paid to the dependent surviving spouse weekly 
 24.9   benefits at a rate which is 16-2/3 percent less than the last 
 24.10  weekly workers' compensation benefit payment, as defined in 
 24.11  subdivision 8a, while the surviving child was a dependent, for a 
 24.12  period of ten years, including adjustments as provided in 
 24.13  section 176.645.  
 24.14     Sec. 4.  Minnesota Statutes 1994, section 176.111, 
 24.15  subdivision 8, is amended to read: 
 24.16     Subd. 8.  [SPOUSE, TWO DEPENDENT CHILDREN.] If the deceased 
 24.17  employee leaves a surviving spouse and two dependent children, 
 24.18  there shall be paid to the surviving spouse for the benefit of 
 24.19  the spouse and children 66-2/3 percent of 1.25 times the daily 
 24.20  wage at the time of the injury of the deceased until the last 
 24.21  dependent child is no longer dependent.  At that time the 
 24.22  dependent surviving spouse shall be paid weekly benefits at a 
 24.23  rate which is 25 percent less than the last weekly workers' 
 24.24  compensation benefit payment, as defined in subdivision 8a, 
 24.25  while the surviving child was a dependent, for a period of ten 
 24.26  years, adjusted according to section 176.645.  
 24.27     Sec. 5.  Minnesota Statutes 1994, section 176.111, 
 24.28  subdivision 12, is amended to read: 
 24.29     Subd. 12.  [ORPHANS.] If the deceased employee leaves a 
 24.30  dependent orphan, there shall be paid 55 percent of 1.25 times 
 24.31  the weekly wage at the time of the injury of the deceased, for 
 24.32  two or more orphans there shall be paid 66-2/3 percent of 1.25 
 24.33  times the wages. 
 24.34     Sec. 6.  Minnesota Statutes 1994, section 176.111, 
 24.35  subdivision 14, is amended to read: 
 24.36     Subd. 14.  [PARENTS.] If the deceased employee leave no 
 25.1   surviving spouse or child entitled to any payment under this 
 25.2   chapter, but leaves both parents wholly dependent on deceased, 
 25.3   there shall be paid to such parents jointly 45 percent of 1.25 
 25.4   times the weekly wage at the time of the injury of the 
 25.5   deceased.  In case of the death of either of the wholly 
 25.6   dependent parents the survivor shall receive 35 percent of 1.25 
 25.7   times the weekly wage thereafter.  If the deceased employee 
 25.8   leave one parent wholly dependent on the deceased, there shall 
 25.9   be paid to such parent 35 percent of 1.25 times the weekly wage 
 25.10  at the time of the injury of the deceased employee.  The 
 25.11  compensation payments under this section shall not exceed the 
 25.12  actual contributions made by the deceased employee to the 
 25.13  support of the employee's parents for a reasonable time 
 25.14  immediately prior to the injury which caused the death of the 
 25.15  deceased employee. 
 25.16     Sec. 7.  Minnesota Statutes 1994, section 176.111, 
 25.17  subdivision 15, is amended to read: 
 25.18     Subd. 15.  [REMOTE DEPENDENTS.] If the deceased employee 
 25.19  leaves no surviving spouse or child or parent entitled to any 
 25.20  payment under this chapter, but leaves a grandparent, 
 25.21  grandchild, brother, sister, mother-in-law, or father-in-law 
 25.22  wholly dependent on the employee for support, there shall be 
 25.23  paid to such dependent, if but one, 30 percent of 1.25 times the 
 25.24  weekly wage at the time of injury of the deceased, or if more 
 25.25  than one, 35 percent of 1.25 times the weekly wage at the time 
 25.26  of the injury of the deceased, divided among them share and 
 25.27  share alike. 
 25.28     Sec. 8.  Minnesota Statutes 1994, section 176.111, 
 25.29  subdivision 20, is amended to read: 
 25.30     Subd. 20.  [ACTUAL DEPENDENTS, COMPENSATION.] Actual 
 25.31  dependents are entitled to take compensation in the order named 
 25.32  in subdivision 3 during dependency until 66-2/3 percent of 1.25 
 25.33  times the weekly wage of the deceased at the time of injury is 
 25.34  exhausted.  The total weekly compensation to be paid to full 
 25.35  actual dependents of a deceased employee shall not exceed in the 
 25.36  aggregate an amount equal to 1.25 times the maximum weekly 
 26.1   compensation for a temporary total disability. 
 26.2                              ARTICLE 5
 26.3      Section 1.  Minnesota Statutes 1994, section 176.081, 
 26.4   subdivision 1, is amended to read: 
 26.5      Subdivision 1.  [APPROVAL LIMITATION OF FEES.] (a) A fee 
 26.6   for legal services of 25 ten percent of the first 
 26.7   $4,000 $130,000 of compensation awarded to the employee and 20 
 26.8   percent of the next $60,000 of compensation awarded to the 
 26.9   employee is the maximum permissible fee and does not require 
 26.10  approval by the commissioner, compensation judge, or any other 
 26.11  party except as provided in paragraph (d).  All fees must be 
 26.12  calculated according to the formula under this subdivision, or 
 26.13  earned in hourly fees for representation at discontinuance 
 26.14  conferences under section 176.239, or earned in hourly fees for 
 26.15  representation on rehabilitation or medical issues under section 
 26.16  176.102, 176.135, or 176.136.  Attorney fees for recovery of 
 26.17  medical or rehabilitation benefits or services shall be assessed 
 26.18  against the employer or insurer if these fees exceed the 
 26.19  contingent fee under this section in connection with benefits 
 26.20  currently in dispute.  The amount of the fee that the employer 
 26.21  or insurer is liable for is the amount determined under 
 26.22  subdivision 5, minus the contingent fee. 
 26.23     (b) All fees for legal services related to the same injury 
 26.24  are cumulative and may not exceed $13,000, except as provided by 
 26.25  subdivision 2.  If multiple injuries are the subject of a 
 26.26  dispute, the commissioner, compensation judge, or court of 
 26.27  appeals shall specify the attorney fee attributable to each 
 26.28  injury. 
 26.29     (c) If the employer or the insurer or the defendant is 
 26.30  given written notice of claims for legal services or 
 26.31  disbursements, the claim shall be a lien against the amount paid 
 26.32  or payable as compensation.  Subject to the foregoing maximum 
 26.33  amount for attorney fees, up to ten percent of periodic 
 26.34  compensation awards made to employees may be withheld from the 
 26.35  periodic payments for attorney fees or disbursements if the 
 26.36  payor of the funds clearly indicates on the check or draft 
 27.1   issued for payment the purpose of the withholding, the name of 
 27.2   the attorney who will be paid, the amount withheld, and the 
 27.3   gross amount of the compensation payment before withholding.  In 
 27.4   no case shall fees be calculated on the basis of any undisputed 
 27.5   portion of compensation awards.  Allowable fees under this 
 27.6   chapter shall be based solely upon genuinely disputed claims or 
 27.7   portions of claims, including disputes related to the payment of 
 27.8   rehabilitation benefits or to other aspects of a rehabilitation 
 27.9   plan.  Fees for administrative conferences under section 176.239 
 27.10  shall be determined on an hourly basis, according to the 
 27.11  criteria in subdivision 5.  
 27.12     (d) An attorney who is claiming legal fees for representing 
 27.13  an employee in a workers' compensation matter shall file a 
 27.14  statement of attorney fees with the commissioner, compensation 
 27.15  judge before whom the matter was heard, or workers' compensation 
 27.16  court of appeals on cases before the court.  A copy of the 
 27.17  signed retainer agreement shall also be filed.  The employee and 
 27.18  insurer shall receive a copy of the statement.  The statement 
 27.19  shall be on a form prescribed by the commissioner, and shall 
 27.20  report the number of hours spent on the case, and shall clearly 
 27.21  and conspicuously state that the employee or insurer has ten 
 27.22  calendar days to object to the attorney fees requested.  If no 
 27.23  objection is timely made by the employee or insurer, the amount 
 27.24  requested shall be conclusively presumed reasonable providing 
 27.25  the amount does not exceed the limitation in subdivision 1.  The 
 27.26  commissioner, compensation judge, or court of appeals shall 
 27.27  issue an order granting the fees and the amount requested shall 
 27.28  be awarded to the party requesting the fee.  
 27.29     If a timely objection is filed, or the fee is determined on 
 27.30  an hourly basis, the commissioner, compensation judge, or court 
 27.31  of appeals shall review the matter and make a determination 
 27.32  based on the criteria in subdivision 5. 
 27.33     If no timely objection is made by an employer or insurer, 
 27.34  reimbursement under subdivision 7 shall be made if the statement 
 27.35  of fees requested this reimbursement. 
 27.36     (e) Employers and insurers may not pay attorney fees or 
 28.1   wages for legal services of more than $13,000 per case unless 
 28.2   the additional fees or wages are approved under subdivision 2.  
 28.3      (f) Each insurer and self-insured employer shall file 
 28.4   annual statements with the commissioner detailing the total 
 28.5   amount of legal fees and other legal costs incurred by the 
 28.6   insurer or employer during the year.  The statement shall 
 28.7   include the amount paid for outside and in-house counsel, 
 28.8   deposition and other witness fees, and all other costs relating 
 28.9   to litigation. 
 28.10     Sec. 2.  Minnesota Statutes 1994, section 176.081, 
 28.11  subdivision 7a, is amended to read: 
 28.12     Subd. 7a.  [SETTLEMENT OFFER.] At any time prior to one day 
 28.13  before a matter is to be heard, a party litigating a claim made 
 28.14  pursuant to this chapter may serve upon the adverse party a 
 28.15  reasonable offer of settlement of the claim, with provision for 
 28.16  costs and disbursements then accrued.  If before the hearing the 
 28.17  adverse party serves written notice that the offer is accepted, 
 28.18  either party may then file the offer and notice of acceptance, 
 28.19  together with the proof of service thereof, and thereupon 
 28.20  judgment shall be entered.  
 28.21     If an offer by an employer or insurer is not accepted by 
 28.22  the employee, it shall be deemed withdrawn and evidence thereof 
 28.23  is not admissible, except in a proceeding to determine 
 28.24  attorney's fees.  Notwithstanding the provisions of subdivision 
 28.25  7, if the judgment finally obtained by the employee is less 
 28.26  favorable than the offer, the employer shall not be liable for 
 28.27  any part of the attorney's fees awarded pursuant to this section.
 28.28     If an offer by an employee is not accepted by the employer 
 28.29  or insurer, it shall be deemed withdrawn and evidence thereof is 
 28.30  not admissible, except in a proceeding to determine attorney's 
 28.31  fees.  Notwithstanding the provisions of subdivision 7, if the 
 28.32  judgment finally obtained by the employee is at least as 
 28.33  favorable as the offer, the employer shall pay an additional 25 
 28.34  percent, over the amount provided in subdivision 7, of that 
 28.35  portion of the attorney's fee which has been awarded pursuant to 
 28.36  this section that is in excess of $250.  
 29.1      The fact that an offer is made but not accepted does not 
 29.2   preclude a subsequent offer.  
 29.3      Sec. 3.  Minnesota Statutes 1994, section 176.081, 
 29.4   subdivision 9, is amended to read: 
 29.5      Subd. 9.  [RETAINER AGREEMENT.] An attorney who is hired by 
 29.6   an employee to provide legal services with respect to a claim 
 29.7   for compensation made pursuant to this chapter shall prepare a 
 29.8   retainer agreement in which the provisions of this section are 
 29.9   specifically set out and provide a copy of this agreement to the 
 29.10  employee.  The retainer agreement shall provide a space for the 
 29.11  signature of the employee.  A signed agreement shall raise a 
 29.12  conclusive presumption that the employee has read and 
 29.13  understands the statutory fee provisions.  No fee shall be 
 29.14  awarded pursuant to this section in the absence of a signed 
 29.15  retainer agreement.  
 29.16     The retainer agreement shall contain a notice to the 
 29.17  employee regarding the maximum fee allowed under this section in 
 29.18  ten-point type, which shall read: 
 29.19                      Notice of Maximum Fee
 29.20     The maximum fee allowed by law for legal services is ten 
 29.21  percent of the first $130,000 of compensation awarded to the 
 29.22  employee subject to a cumulative maximum fee of $13,000 for fees 
 29.23  related to the same injury. 
 29.24     The employee shall take notice that the employee is under 
 29.25  no legal or moral obligation to pay any fee for legal services 
 29.26  in excess of the foregoing maximum fee. 
 29.27     Sec. 4.  Minnesota Statutes 1994, section 176.135, 
 29.28  subdivision 1, is amended to read: 
 29.29     Subdivision 1.  [MEDICAL, PSYCHOLOGICAL, CHIROPRACTIC, 
 29.30  PODIATRIC, SURGICAL, HOSPITAL.] (a) The employer shall furnish 
 29.31  any medical, psychological, chiropractic, podiatric, surgical 
 29.32  and hospital treatment, including nursing, medicines, medical, 
 29.33  chiropractic, podiatric, and surgical supplies, crutches and 
 29.34  apparatus, including artificial members, or, at the option of 
 29.35  the employee, if the employer has not filed notice as 
 29.36  hereinafter provided, Christian Science treatment in lieu of 
 30.1   medical treatment, chiropractic medicine and medical supplies, 
 30.2   as may reasonably be required at the time of the injury and any 
 30.3   time thereafter to cure and relieve from the effects of the 
 30.4   injury.  This treatment shall include treatments necessary to 
 30.5   physical rehabilitation. 
 30.6      (b) The employer shall pay for the reasonable value of 
 30.7   nursing services provided by a member of the employee's family 
 30.8   in cases of permanent total disability.  
 30.9      (c) Exposure to rabies is an injury and an employer shall 
 30.10  furnish preventative treatment to employees exposed to rabies. 
 30.11     (d) The employer shall furnish replacement or repair for 
 30.12  artificial members, glasses, or spectacles, artificial eyes, 
 30.13  podiatric orthotics, dental bridge work, dentures or artificial 
 30.14  teeth, hearing aids, canes, crutches, or wheel chairs damaged by 
 30.15  reason of an injury arising out of and in the course of the 
 30.16  employment.  For the purpose of this paragraph, "injury" 
 30.17  includes damage wholly or in part to an artificial member.  In 
 30.18  case of the employer's inability or refusal seasonably to 
 30.19  provide the items required to be provided under this paragraph, 
 30.20  the employer is liable for the reasonable expense incurred by or 
 30.21  on behalf of the employee in providing the same, including costs 
 30.22  of copies of any medical records or medical reports that are in 
 30.23  existence, obtained from health care providers, and that 
 30.24  directly relate to the items for which payment is sought under 
 30.25  this chapter, limited to the charges allowed by subdivision 7, 
 30.26  and attorney fees incurred by the employee.  Attorney's fees 
 30.27  shall be determined on an hourly basis according to the criteria 
 30.28  in section 176.081, subdivision 5.  
 30.29     (e) Both the commissioner and the compensation judges have 
 30.30  authority to make determinations under this section in 
 30.31  accordance with sections 176.106 and 176.305.  
 30.32     (f) An employer may require that the treatment and supplies 
 30.33  required to be provided by an employer by this section be 
 30.34  received in whole or in part from a managed care plan certified 
 30.35  under section 176.1351 except as otherwise provided by that 
 30.36  section. 
 31.1      Sec. 5.  Minnesota Statutes 1994, section 176.191, 
 31.2   subdivision 8, is amended to read: 
 31.3      Subd. 8.  [ATTORNEY FEES.] No attorney's fees shall be 
 31.4   awarded under either section 176.081, subdivision 8, or 176.191 
 31.5   against any employer or insurer in connection with any 
 31.6   arbitration proceeding unless the employee chooses to retain an 
 31.7   attorney to represent the employee's interests during 
 31.8   arbitration.  
 31.9      Sec. 6.  [REPEALER.] 
 31.10     Minnesota Statutes 1994, sections 176.081, subdivisions 2, 
 31.11  5, 7, and 8; and 176.133, are repealed. 
 31.12                             ARTICLE 6 
 31.13     Section 1.  Minnesota Statutes 1994, section 176.102, 
 31.14  subdivision 11, is amended to read: 
 31.15     Subd. 11.  [RETRAINING; COMPENSATION.] (a) Retraining is 
 31.16  limited to 156 weeks.  An employee who has been approved for 
 31.17  retraining may petition the commissioner or compensation judge 
 31.18  for additional compensation not to exceed 25 percent of the 
 31.19  compensation otherwise payable.  If the commissioner or 
 31.20  compensation judge determines that this additional compensation 
 31.21  is warranted due to unusual or unique circumstances of the 
 31.22  employee's retraining plan, the commissioner may award 
 31.23  additional compensation in an amount not to exceed the 
 31.24  employee's request.  This additional compensation shall cease at 
 31.25  any time the commissioner or compensation judge determines the 
 31.26  special circumstances are no longer present.  
 31.27     (b) If the employee is not employed during a retraining 
 31.28  plan that has been specifically approved under this section, 
 31.29  temporary total compensation is payable for up to 90 days after 
 31.30  the end of the retraining plan; except that, payment during the 
 31.31  90-day period is subject to cessation in accordance with section 
 31.32  176.101.  If the employee is employed during the retraining plan 
 31.33  but earning less than at the time of injury, temporary partial 
 31.34  compensation is payable at the rate of 66-2/3 percent of the 
 31.35  difference between the employee's weekly wage at the time of 
 31.36  injury and the weekly wage the employee is able to earn in the 
 32.1   employee's partially disabled condition, subject to the maximum 
 32.2   rate for temporary total compensation.  Temporary partial 
 32.3   compensation is not subject to the 225-week or 450-week 
 32.4   limitations provided by section 176.101, subdivision 2, during 
 32.5   the retraining plan, but is subject to those limitations before 
 32.6   and after the plan. 
 32.7      Sec. 2.  Minnesota Statutes 1994, section 176.106, is 
 32.8   amended to read: 
 32.9      176.106 [ADMINISTRATIVE CONFERENCE DISPUTE RESOLUTION; 
 32.10  PAPER DECISIONS; HEARINGS.] 
 32.11     Subdivision 1.  [SCOPE.] All determinations by the 
 32.12  commissioner pursuant to section 176.102, 176.103, 176.135, or 
 32.13  176.136 shall be in accordance with the procedures contained in 
 32.14  this section.  
 32.15     Subd. 2.  [REQUEST FOR CONFERENCE DECISION.] Any party may 
 32.16  request an administrative conference a decision by serving and 
 32.17  filing a request on a form prescribed by the commissioner.  The 
 32.18  request shall be served on all interested parties by the party 
 32.19  making the request.  The request shall have attached verified or 
 32.20  certified reports substantiating the claim including the medical 
 32.21  and vocational records and other information necessary to 
 32.22  establish the compensability of a claim or to determine whether 
 32.23  a medical or rehabilitation request is reasonable and necessary. 
 32.24     Subd. 3.  [CONFERENCE DECISION.] A decision in the matter 
 32.25  shall be scheduled for an administrative conference issued by 
 32.26  the commissioner or the matter shall be certified for hearing 
 32.27  and decision within 60 90 days after receipt of the a party's 
 32.28  request for a conference.  A notice of the conference request 
 32.29  shall be served by the department on all parties no later than 
 32.30  14 days prior to after the conference, unless the commissioner 
 32.31  determines that a conference shall not be held.  The 
 32.32  commissioner may order an administrative conference whether or 
 32.33  not a request for conference is filed.  
 32.34     The commissioner may refuse to hold an administrative 
 32.35  conference and refer the matter for a settlement or pretrial 
 32.36  conference or may certify the matter to the office of 
 33.1   administrative hearings for a full hearing before a compensation 
 33.2   judge. request is filed.  The notice must state that the 
 33.3   responding interested parties must serve the requesting party 
 33.4   and file with the commissioner within 20 days from the date of 
 33.5   the notice, the verified or certified reports substantiating the 
 33.6   responding parties position on the issues presented by the 
 33.7   request including the medical and vocational records and other 
 33.8   information necessary to establish whether a claim is 
 33.9   compensable or to determine whether a medical or rehabilitation 
 33.10  request is reasonable and necessary.  If the request and 
 33.11  responses do not include sufficient information, the 
 33.12  commissioner may require the parties to submit further 
 33.13  documentary evidence and a summary of evidence they would 
 33.14  present at a formal hearing by a date certain and may extend the 
 33.15  period to issue a decision by no more than 60 days.  
 33.16     Subd. 4.  [APPEARANCES.] All parties shall appear either 
 33.17  personally, by telephone, by representative, or by written 
 33.18  submission.  The commissioner shall determine the issues in 
 33.19  dispute based upon the information available at submitted with 
 33.20  the conference request and submitted by the responding 
 33.21  interested parties. 
 33.22     Subd. 5.  [CONTENTS OF DECISION.] A written decision shall 
 33.23  be issued by the commissioner or an authorized representative 
 33.24  determining all issues considered at the conference or if a 
 33.25  conference was not held raised by the request, based on the 
 33.26  written submissions.  Disputed issues of fact shall be 
 33.27  determined by a preponderance of the evidence.  The decision 
 33.28  must be issued within 30 days after the close of the conference 
 33.29  or if no conference was held, within 60 90 days after receipt of 
 33.30  the request for conference.  The decision must include a 
 33.31  statement indicating the right to request a de novo hearing 
 33.32  before a compensation judge and how to initiate the request. 
 33.33     Subd. 6.  [PENALTY.] At a conference In the request or 
 33.34  response to request provided by this section, if the insurer 
 33.35  does not provide a specific reason for nonpayment of the items 
 33.36  in dispute, the commissioner may assess a penalty of $300 
 34.1   payable to the assigned risk safety account, unless it is 
 34.2   determined that the reason for the lack of specificity was the 
 34.3   failure of the insurer, upon timely request, to receive 
 34.4   information necessary to remedy the lack of specificity.  This 
 34.5   penalty is in addition to any penalty that may be applicable for 
 34.6   nonpayment.  
 34.7      Subd. 7.  [REQUEST FOR HEARING.] Any party aggrieved by the 
 34.8   decision of the commissioner may request a formal hearing by 
 34.9   filing the request with the commissioner and paying a filing fee 
 34.10  of $100 no later than 30 days after the decision.  The request 
 34.11  shall be referred to the office of administrative hearings for a 
 34.12  de novo hearing before a compensation judge.  The commissioner 
 34.13  shall refer a timely request to the office of administrative 
 34.14  hearings within five working days after filing of the request 
 34.15  and the hearing at the office of administrative hearings must be 
 34.16  held on the first date that all parties are available but not 
 34.17  later than 60 days after the office of administrative hearings 
 34.18  receives the matter. Following the hearing, the compensation 
 34.19  judge must issue the decision within 30 days.  The decision of 
 34.20  the compensation judge is appealable pursuant to section 176.421.
 34.21     Subd. 8.  [DENIAL OF PRIMARY LIABILITY.] The commissioner 
 34.22  does not have authority to make determinations relating to 
 34.23  medical or rehabilitation benefits when there is a genuine 
 34.24  dispute over whether the injury initially arose out of and in 
 34.25  the course of employment, except as provided by section 176.305. 
 34.26     Subd. 9.  [SUBSEQUENT CAUSATION ISSUES.] If initial 
 34.27  liability for an injury has been admitted or established and an 
 34.28  issue subsequently arises regarding causation between the 
 34.29  employee's condition and the work injury, the commissioner may 
 34.30  make the subsequent causation determination subject to de novo 
 34.31  hearing by a compensation judge with a right to review by the 
 34.32  court of appeals, as provided in this chapter.  
 34.33     Sec. 3.  Minnesota Statutes 1994, section 176.191, is 
 34.34  amended by adding a subdivision to read: 
 34.35     Subd. 1a.  [EQUITABLE APPORTIONMENT.] Equitable 
 34.36  apportionment of liability for an injury under this chapter is 
 35.1   not allowed except that apportionment among employers and 
 35.2   insurers is allowed in a settlement agreement filed pursuant to 
 35.3   section 176.521, and an employer or insurer may request 
 35.4   equitable apportionment of liability for workers' compensation 
 35.5   benefits among employer and insurers by arbitration pursuant to 
 35.6   subdivision 5.  To the same extent limited by this subdivision, 
 35.7   contribution and reimbursement actions based on equitable 
 35.8   apportionment are not allowed under this chapter.  If the 
 35.9   insurers choose to arbitrate apportionment, contribution, or 
 35.10  reimbursement issues pursuant to this section, the arbitration 
 35.11  proceeding is for the limited purpose of apportioning liability 
 35.12  for workers' compensation benefits payable among employers and 
 35.13  insurers.  This subdivision applies without regard to whether 
 35.14  one or more of the injuries results from cumulative trauma or a 
 35.15  specific injury, but does not apply to an occupational disease.  
 35.16  In the case of an occupational disease, section 176.66 applies.  
 35.17  In the arbitration of equitable apportionment under this 
 35.18  section, the parties and the arbitrator must be guided by 
 35.19  general rules of arbitrator selection and presumptive 
 35.20  apportionment among employers and insurers that are developed by 
 35.21  the insurer's administrative task force and approved by the 
 35.22  commissioner of the department of labor and industry.  
 35.23  Apportionment against preexisting disability is allowed only for 
 35.24  permanent partial disability as provided in section 176.101, 
 35.25  subdivision 4a.  Nothing in this subdivision shall be 
 35.26  interpreted to repeal or in any way affect the law with respect 
 35.27  to special compensation fund liability or benefits.  
 35.28     Sec. 4.  Minnesota Statutes 1994, section 176.191, 
 35.29  subdivision 5, is amended to read: 
 35.30     Subd. 5.  [ARBITRATION.] Where a dispute exists between an 
 35.31  employer, insurer, the special compensation fund, the reopened 
 35.32  case fund, or the workers' compensation reinsurance association, 
 35.33  regarding apportionment of liability for benefits payable under 
 35.34  this chapter, the dispute and the requesting party has expended 
 35.35  over $10,000 in medical or 52 weeks worth of indemnity benefits 
 35.36  and made the request within one year thereafter, a party may be 
 36.1   submitted with consent of all interested parties request 
 36.2   submission of the dispute as to apportionment of liability among 
 36.3   employers and insurers to binding arbitration.  The decision of 
 36.4   the arbitrator shall be conclusive with respect to all issues 
 36.5   presented except as provided in subdivisions 6 and 7 on the 
 36.6   issue of apportionment among employers and insurers.  Consent of 
 36.7   the employee is not required for submission of a dispute to 
 36.8   arbitration pursuant to this section and the employee is not 
 36.9   bound by the results of the arbitration.  An arbitration award 
 36.10  shall not be admissible in any other proceeding under this 
 36.11  chapter.  Notice of the proceeding shall be given to the 
 36.12  employee.  
 36.13     The employee, or any person with material information to 
 36.14  the facts to be arbitrated, shall attend the arbitration 
 36.15  proceeding if any party to the proceeding deems it necessary. 
 36.16  Nothing said by an employee in connection with any arbitration 
 36.17  proceeding may be used against the employee in any other 
 36.18  proceeding under this chapter.  Reasonable expenses of meals, 
 36.19  lost wages, and travel of the employee or witnesses in attending 
 36.20  shall be reimbursed on a pro rata basis.  Arbitration costs 
 36.21  shall be paid by the parties, except the employee, on a pro rata 
 36.22  basis. 
 36.23     Sec. 5.  Minnesota Statutes 1994, section 176.191, 
 36.24  subdivision 7, is amended to read: 
 36.25     Subd. 7.  [REPRESENTATION.] If an employee brings an action 
 36.26  under the circumstances described in subdivision 6 in which 
 36.27  there had been an arbitration proceeding under subdivisions 1a 
 36.28  and 5, the parties to the previous arbitration may be 
 36.29  represented at the new action by a common or joint attorney.  
 36.30     Sec. 6.  Minnesota Statutes 1994, section 176.238, 
 36.31  subdivision 3, is amended to read: 
 36.32     Subd. 3.  [INTERIM ADMINISTRATIVE DECISION.] An employee 
 36.33  may request the commissioner to schedule issue an administrative 
 36.34  discontinuance conference decision to obtain an expedited 
 36.35  interim decision concerning the discontinuance of compensation.  
 36.36  Procedures relating to administrative discontinuance conferences 
 37.1   decisions are set forth in section 176.239.  
 37.2      Sec. 7.  Minnesota Statutes 1994, section 176.238, 
 37.3   subdivision 4, is amended to read: 
 37.4      Subd. 4.  [OBJECTION TO DISCONTINUANCE.] An employee may 
 37.5   serve on the employer and file with the commissioner an 
 37.6   objection to discontinuance if:  
 37.7      (a) the employee elects not to request an administrative 
 37.8   conference decision under section 176.239; 
 37.9      (b) if the employee fails to timely proceed under that 
 37.10  section; 
 37.11     (c) if the discontinuance is not governed by that section; 
 37.12  or 
 37.13     (d) if the employee disagrees with the commissioner's 
 37.14  decision issued under that section.  Within ten calendar days 
 37.15  after receipt of an objection to discontinuance, the 
 37.16  commissioner shall refer the matter to the office for a de novo 
 37.17  hearing before a compensation judge to determine the right of 
 37.18  the employee to further compensation.  
 37.19     Sec. 8.  Minnesota Statutes 1994, section 176.238, 
 37.20  subdivision 5, is amended to read: 
 37.21     Subd. 5.  [PETITION TO DISCONTINUE.] Instead of filing a 
 37.22  notice of discontinuance, an employer may serve on the employee 
 37.23  and file with the commissioner a petition to discontinue 
 37.24  compensation with a filing fee of $100.  A petition to 
 37.25  discontinue compensation may also be used when the employer 
 37.26  disagrees with the commissioner's decision under section 
 37.27  176.239.  Within ten calendar days after receipt of a petition 
 37.28  to discontinue, the commissioner shall refer the matter to the 
 37.29  office for a de novo hearing before a compensation judge to 
 37.30  determine the right of the employer to discontinue compensation. 
 37.31     The petition shall include copies of medical reports or 
 37.32  other written reports or evidence in the possession of the 
 37.33  employer bearing on the physical condition or other present 
 37.34  status of the employee which relate to the proposed 
 37.35  discontinuance.  The employer shall continue payment of 
 37.36  compensation until the filing of the decision of the 
 38.1   compensation judge and thereafter as the compensation judge, 
 38.2   court of appeals, or the supreme court directs, unless, during 
 38.3   the interim, occurrences arise justifying the filing of a notice 
 38.4   under subdivision 1 or 2 and the discontinuance is permitted by 
 38.5   the commissioner's order or no conference under section 176.239 
 38.6   is requested.  
 38.7      Sec. 9.  Minnesota Statutes 1994, section 176.238, 
 38.8   subdivision 6, is amended to read: 
 38.9      Subd. 6.  [EXPEDITED HEARING BEFORE A COMPENSATION JUDGE.] 
 38.10  A hearing before a compensation judge shall be held within 30 
 38.11  calendar days after the office receives the file from the 
 38.12  commissioner if:  
 38.13     (a) an objection to discontinuance has been filed under 
 38.14  subdivision 4 within 60 calendar days after the notice of 
 38.15  discontinuance was filed and where no administrative conference 
 38.16  decision has been held requested; 
 38.17     (b) an objection to discontinuance has been filed under 
 38.18  subdivision 4 within 60 30 calendar days after the 
 38.19  commissioner's decision under this section has been issued; 
 38.20     (c) a petition to discontinue has been filed by the insurer 
 38.21  in lieu of filing a notice of discontinuance; or 
 38.22     (d) a petition to discontinue has been filed within 60 30 
 38.23  calendar days after the commissioner's decision under this 
 38.24  section has been issued.  
 38.25     If the petition or objection is filed later than the 
 38.26  deadlines listed above, the expedited procedures in this section 
 38.27  apply only where the employee is unemployed at the time of 
 38.28  filing the objection and shows, to the satisfaction of the chief 
 38.29  administrative judge, by sworn affidavit, that the failure to 
 38.30  file the objection within the deadlines was due to some 
 38.31  infirmity or incapacity of the employee or to circumstances 
 38.32  beyond the employee's control.  The hearing shall be limited to 
 38.33  the issues raised by the notice or petition unless all parties 
 38.34  agree to expanding the issues.  If the issues are expanded, the 
 38.35  time limits for hearing and issuance of a decision by the 
 38.36  compensation judge under this subdivision shall not apply.  
 39.1      Once a hearing date has been set, a continuance of the 
 39.2   hearing date will be granted only under the following 
 39.3   circumstances:  
 39.4      (a) the employer has agreed, in writing, to a continuation 
 39.5   of the payment of benefits pending the outcome of the hearing; 
 39.6   or 
 39.7      (b) the employee has agreed, in a document signed by the 
 39.8   employee, that benefits may be discontinued pending the outcome 
 39.9   of the hearing.  
 39.10     Absent a clear showing of surprise at the hearing or the 
 39.11  unexpected unavailability of a crucial witness, all evidence 
 39.12  must be introduced at the hearing.  If it is necessary to accept 
 39.13  additional evidence or testimony after the scheduled hearing 
 39.14  date, it must be submitted no later than 14 days following the 
 39.15  hearing, unless the compensation judge, for good cause, 
 39.16  determines otherwise.  
 39.17     The compensation judge shall issue a decision pursuant to 
 39.18  this subdivision within 30 days following the close of the 
 39.19  hearing record.  
 39.20     Sec. 10.  Minnesota Statutes 1994, section 176.239, 
 39.21  subdivision 1, is amended to read: 
 39.22     Subdivision 1.  [PURPOSE.] The purpose of this section is 
 39.23  to provide a procedure for parties to obtain an expedited 
 39.24  interim administrative decision in disputes over discontinuance 
 39.25  of temporary total, temporary partial, or permanent total 
 39.26  compensation.  
 39.27     Sec. 11.  Minnesota Statutes 1994, section 176.239, 
 39.28  subdivision 2, is amended to read: 
 39.29     Subd. 2.  [REQUEST FOR ADMINISTRATIVE CONFERENCE DECISION.] 
 39.30  If the employee disagrees with the notice of discontinuance, the 
 39.31  employee may request, on a form prescribed by the commissioner, 
 39.32  that the commissioner schedule issue an administrative 
 39.33  conference to be conducted pursuant to this section decision 
 39.34  determining whether the benefit should be discontinued.  
 39.35     If temporary total, temporary partial, or permanent total 
 39.36  compensation has been discontinued because the employee has 
 40.1   returned to work, and the employee believes benefits should be 
 40.2   reinstated due to occurrences during the initial 14 calendar 
 40.3   days of the employee's return to work, the employee's request 
 40.4   must be received by the commissioner within 30 calendar days 
 40.5   after the employee has returned to work.  If the employer has 
 40.6   failed to properly serve and file the notice as provided in 
 40.7   section 176.238, the employee's time period to request an 
 40.8   administrative conference decision is extended up to and 
 40.9   including the 40th calendar day subsequent to the return to work.
 40.10     If temporary total, temporary partial, or permanent total 
 40.11  compensation has been discontinued for a reason other than a 
 40.12  return to work, the employee's request must be received by the 
 40.13  commissioner within 12 calendar days after the notice of 
 40.14  discontinuance is received by the commissioner.  If the employer 
 40.15  discontinues compensation without giving notice as required by 
 40.16  section 176.238, the employee's time period for requesting an 
 40.17  administrative conference decision is extended up to and 
 40.18  including the 40th calendar day after which the notice should 
 40.19  have been served and filed.  
 40.20     The commissioner may determine that an administrative 
 40.21  conference is not necessary under this section for reasons 
 40.22  prescribed by rule and permit the employer to discontinue 
 40.23  compensation, subject to the employee's right to file an 
 40.24  objection to discontinuance under section 176.238, subdivision 4.
 40.25     In lieu of making a written request for an administrative 
 40.26  conference with the commissioner, an employee may make an 
 40.27  in-person or telephone request for the administrative conference.
 40.28     Sec. 12.  Minnesota Statutes 1994, section 176.239, 
 40.29  subdivision 3, is amended to read: 
 40.30     Subd. 3.  [PAYMENT THROUGH DATE OF DISCONTINUANCE 
 40.31  CONFERENCE.] If a notice of discontinuance has been served and 
 40.32  filed due to the employee's return to work, and the employee 
 40.33  requests a conference decision, the employer is not obligated to 
 40.34  reinstate or otherwise pay temporary total, temporary partial, 
 40.35  or permanent total compensation unless so ordered by the 
 40.36  commissioner.  
 41.1      When an administrative conference decision is conducted 
 41.2   requested under circumstances in which the employee has not 
 41.3   returned to work, compensation shall be paid through the date of 
 41.4   the administrative conference decision unless:  
 41.5      (a) the employee has returned to work since the notice was 
 41.6   filed; or 
 41.7      (b) the employee fails to appear at the scheduled 
 41.8   administrative conference; or 
 41.9      (c) due to unusual circumstances or pursuant to the rules 
 41.10  of the division, the commissioner orders otherwise.  
 41.11     Sec. 13.  Minnesota Statutes 1994, section 176.239, 
 41.12  subdivision 4, is amended to read: 
 41.13     Subd. 4.  [SCHEDULING OF CONFERENCE TIMING OF DECISION.] If 
 41.14  the employee timely requests an administrative conference 
 41.15  decision under this section, the commissioner shall schedule 
 41.16  issue a conference decision or certify the matter to the office 
 41.17  of administrative hearings for hearing and decision within ten 
 41.18  calendar 60 days after receiving the request.  
 41.19     Sec. 14.  Minnesota Statutes 1994, section 176.239, 
 41.20  subdivision 5, is amended to read: 
 41.21     Subd. 5.  [CONTINUANCES EXTENSION OF TIME TO ISSUE 
 41.22  DECISION.] An employee or employer may request a continuance of 
 41.23  a scheduled an extension of time to issue an administrative 
 41.24  conference decision.  If the commissioner, upon request or in 
 41.25  the commissioner's own discretion determines there is good cause 
 41.26  for a continuance an extension, the commissioner may grant 
 41.27  the continuance extension for not more than 14 calendar days 
 41.28  unless the parties agree to a longer continuance extension.  If 
 41.29  compensation is payable through the day of the 
 41.30  administrative conference decision pursuant to subdivision 3, 
 41.31  and the employee is granted a continuance an extension, 
 41.32  compensation need not be paid during the period of continuance 
 41.33  extension unless the commissioner orders otherwise.  If the 
 41.34  employer is granted a continuance an extension and compensation 
 41.35  is payable through the day of the administrative 
 41.36  conference decision pursuant to subdivision 3, then compensation 
 42.1   shall continue to be paid during the continuance extension.  The 
 42.2   commissioner may grant an unlimited number of continuances 
 42.3   extensions provided that payment of compensation during 
 42.4   any continuance extension is subject to this subdivision.  
 42.5      Sec. 15.  Minnesota Statutes 1994, section 176.239, 
 42.6   subdivision 7, is amended to read: 
 42.7      Subd. 7.  [INTERIM ADMINISTRATIVE DECISION.] After 
 42.8   considering the information provided by the parties at the 
 42.9   administrative conference, the commissioner shall issue to all 
 42.10  interested parties a written decision on payment of 
 42.11  compensation.  Administrative decisions under this section shall 
 42.12  be issued within five working 60 days from the close date of the 
 42.13  conference requests.  Disputed issues of fact shall be 
 42.14  determined by a preponderance of the evidence.  
 42.15     Sec. 16.  Minnesota Statutes 1994, section 176.239, 
 42.16  subdivision 8, is amended to read: 
 42.17     Subd. 8.  [DISAGREEMENT WITH ADMINISTRATIVE DECISION.] An 
 42.18  employee who disagrees with the commissioner's decision under 
 42.19  this section may file an objection to discontinuance under 
 42.20  section 176.238, subdivision 4.  An employer who disagrees with 
 42.21  the commissioner's decision under this section may file a 
 42.22  petition to discontinue under section 176.238, subdivision 
 42.23  5.  The objection to discontinuance or petition to discontinue 
 42.24  must be served and filed with the commissioner and a filing fee 
 42.25  of $100 must be paid no later than 30 days after the decision. 
 42.26     Sec. 17.  Minnesota Statutes 1994, section 176.239, 
 42.27  subdivision 9, is amended to read: 
 42.28     Subd. 9.  [ADMINISTRATIVE DECISION BINDING; EFFECT OF 
 42.29  SUBSEQUENT DETERMINATIONS.] The commissioner's decision under 
 42.30  this section is binding upon the parties and the rights and 
 42.31  obligations of the parties are governed by the decision.  
 42.32     If an objection or a petition is filed under subdivision 8, 
 42.33  the commissioner's administrative decision remains in effect and 
 42.34  the parties' obligations or rights to pay or receive 
 42.35  compensation are governed by the commissioner's administrative 
 42.36  decision, pending a determination by a compensation judge 
 43.1   pursuant to section 176.238, subdivision 6.  
 43.2      If the commissioner has denied a discontinuance or 
 43.3   otherwise ordered commencement of benefits, the employer shall 
 43.4   continue paying compensation until an order is issued by a 
 43.5   compensation judge, the court of appeals, or the supreme court, 
 43.6   allowing compensation to be discontinued, or unless, during the 
 43.7   interim, occurrences arise justifying the filing of a notice 
 43.8   under section 176.238, subdivision 1 or 2, and the 
 43.9   discontinuance is permitted by the commissioner or no conference 
 43.10  administrative decision is requested.  If a compensation judge, 
 43.11  the court of appeals, or the supreme court later rules that the 
 43.12  discontinuance was proper or that benefits were otherwise not 
 43.13  owing the employee, payments made under the commissioner's 
 43.14  administrative decision and order shall be treated as an 
 43.15  overpayment which the insurer may recover from the employee 
 43.16  subject to section 176.179. 
 43.17     If the commissioner has permitted a discontinuance or 
 43.18  otherwise not ordered commencement of benefits, the service and 
 43.19  filing of the administrative decision relieves the employer from 
 43.20  further liability for compensation subject to the right of 
 43.21  review afforded by this chapter.  
 43.22     Sec. 18.  Minnesota Statutes 1994, section 176.239, 
 43.23  subdivision 10, is amended to read: 
 43.24     Subd. 10.  [APPLICATION OF SECTION.] This section is 
 43.25  applicable to all cases in which the employee's request for an 
 43.26  administrative conference decision is received by the division 
 43.27  after July 1, 1987, even if the injury occurred prior to July 1, 
 43.28  1987.  This section shall not apply to those employees who have 
 43.29  been adjudicated permanently totally disabled, or to those 
 43.30  employees who have been administratively determined pursuant to 
 43.31  division rules to be permanently totally disabled.  
 43.32     Sec. 19.  Minnesota Statutes 1994, section 176.291, is 
 43.33  amended to read: 
 43.34     176.291 [DISPUTES; PETITIONS; PROCEDURE.] 
 43.35     Where there is a dispute as to a question of law or fact in 
 43.36  connection with a claim for compensation, a party may serve on 
 44.1   all other parties and file a notarized petition with the 
 44.2   commissioner stating the matter in dispute.  The petition shall 
 44.3   be on a form prescribed by the commissioner. 
 44.4      The petition shall also state and include, where applicable:
 44.5      (1) names and residence or business address of parties; 
 44.6      (2) facts relating to the employment at the time of injury, 
 44.7   including amount of wages received; 
 44.8      (3) extent and character of injury; 
 44.9      (4) notice to or knowledge by employer of injury; 
 44.10     (5) copies of written medical reports or other information 
 44.11  in support of the claim; 
 44.12     (6) names and addresses of all known witnesses intended to 
 44.13  who would be called in support of the claim in the event of a 
 44.14  formal hearing; 
 44.15     (7) the desired location of any hearing and estimated time 
 44.16  needed to present evidence at the hearing; 
 44.17     (8) any requests for a prehearing or settlement conference; 
 44.18     (9) a list of all known third parties, including the 
 44.19  departments of human services and economic security, who may 
 44.20  have paid any medical bills or other benefits to the employee 
 44.21  for the injuries or disease alleged in the petition or for the 
 44.22  time the employee was unable to work due to the injuries or 
 44.23  disease, together with a listing of the amounts paid by each; 
 44.24     (10) (8) the nature and extent of the claim; and 
 44.25     (11) (9) a request for an expedited hearing summary 
 44.26  decision which must include an attached affidavit of significant 
 44.27  financial hardship which complies with the requirements of 
 44.28  section 176.341, subdivision 6; and 
 44.29     (10) sufficient additional supporting documentation 
 44.30  including the medical, employment, and vocational records and 
 44.31  other information necessary to establish the compensability of a 
 44.32  claim or to determine other issues raised by the petition in a 
 44.33  summary decision. 
 44.34     Incomplete petitions may be stricken from the calendar 
 44.35  consideration for summary decision as provided by section 
 44.36  176.305, subdivision 4.  Within 30 ten days of a request by a 
 45.1   party, an employee who has filed a claim petition pursuant to 
 45.2   section 176.271 or this section shall furnish a list of 
 45.3   physicians and health care providers from whom the employee has 
 45.4   received treatment for the same or a similar condition as well 
 45.5   as authorizations to release relevant information, data, and 
 45.6   records to the requester.  The petition may be stricken from the 
 45.7   calendar consideration for summary decision upon motion of a 
 45.8   party for failure to timely provide the required list of health 
 45.9   care providers or authorizations.  
 45.10     Sec. 20.  Minnesota Statutes 1994, section 176.305, 
 45.11  subdivision 1, is amended to read: 
 45.12     Subdivision 1.  [HEARINGS PROCEDURES ON PETITIONS.] The 
 45.13  petitioner shall serve a copy of the petition and the supporting 
 45.14  documentation on each adverse party personally or by first class 
 45.15  mail.  The original petition and supporting documentation shall 
 45.16  then be filed with the commissioner together with an appropriate 
 45.17  affidavit of service.  When any petition has been filed with the 
 45.18  workers' compensation division, the commissioner shall, within 
 45.19  ten 14 days, refer the matter presented by the petition for a 
 45.20  settlement conference under this section, for an administrative 
 45.21  conference under section 176.106, or for hearing to the 
 45.22  office serve a notice on all parties stating that all responding 
 45.23  interested parties must serve and file their answers and 
 45.24  supporting documentation with the commissioner within 20 days of 
 45.25  service of the petition.  
 45.26     Sec. 21.  Minnesota Statutes 1994, section 176.305, 
 45.27  subdivision 1a, is amended to read: 
 45.28     Subd. 1a.  [SETTLEMENT AND PRETRIAL CONFERENCES; SUMMARY 
 45.29  DECISION DECISIONS.] The commissioner shall schedule a 
 45.30  settlement conference, if appropriate, issue a summary decision 
 45.31  determining the issues of law and fact raised in the petition or 
 45.32  certify the claim petition to the office of administrative 
 45.33  hearings for hearing and decision within 60 90 days after 
 45.34  receiving the petition.  All parties must appear at the 
 45.35  conference, either personally or by representative, appearing by 
 45.36  petition or answer or other written submission must be prepared 
 46.1   to discuss settlement of all issues, and must be prepared to 
 46.2   discuss or present include the information required by the joint 
 46.3   rules of the division and the office.  If a representative 
 46.4   appears on behalf of a party, the representative must have 
 46.5   authority to fully settle the matter note the representative's 
 46.6   appearance.  
 46.7      If settlement is not reached the petition and answers do 
 46.8   not include sufficient information, the presiding officer 
 46.9   commissioner may require the parties to present copies of all 
 46.10  documentary evidence not previously filed and a summary of the 
 46.11  evidence they will would present at a formal hearing by a date 
 46.12  certain and may extend the period to issue a decision by no more 
 46.13  than 60 days.  If appropriate, A written summary decision shall 
 46.14  be issued within ten days after the conference stating the 
 46.15  issues and a determination of each issue.  If a party fails 
 46.16  to appear at the conference answer or to submit additional 
 46.17  documentation requested by the commissioner pursuant to this 
 46.18  subdivision, all issues may be determined contrary to the absent 
 46.19  party's interest of the party failing to appear or submit 
 46.20  additional documentation, provided the party in attendance 
 46.21  presents a prima facie case.  
 46.22     The summary decision is final unless a written request for 
 46.23  a formal hearing is served on all parties and filed with the 
 46.24  commissioner and a filing fee of $100 is paid within 30 days 
 46.25  after the date of service and filing of the summary decision.  
 46.26  Within ten days after receipt of the request for formal hearing, 
 46.27  the commissioner shall certify the matter to the office for a de 
 46.28  novo hearing.  
 46.29     Sec. 22.  Minnesota Statutes 1994, section 176.305, 
 46.30  subdivision 2, is amended to read: 
 46.31     Subd. 2.  [COPY OF PETITION.] The commissioner shall 
 46.32  deliver the original petition and answer and supporting 
 46.33  documentation, after certification for a hearing, to the office 
 46.34  of administrative hearings for assignment to a compensation 
 46.35  judge. 
 46.36     Sec. 23.  Minnesota Statutes 1994, section 176.305, 
 47.1   subdivision 4, is amended to read: 
 47.2      Subd. 4.  [STRIKING FROM CALENDAR.] A compensation judge or 
 47.3   The commissioner, after receiving a properly served motion, may 
 47.4   strike a case from the active trial calendar consideration for 
 47.5   summary decision after the employee has been given 30 days to 
 47.6   correct the deficiency if it is shown that the information on 
 47.7   the petition or included with the petition is incomplete.  Once 
 47.8   a case is stricken, it may not be reinstated until the missing 
 47.9   information is provided to the adverse parties and filed with 
 47.10  the commissioner or compensation judge.  If a case has been 
 47.11  stricken from the calendar for one year or consideration for 
 47.12  summary decision for more than 30 days and no corrective action 
 47.13  has been taken, the commissioner or a compensation judge may, 
 47.14  upon the commissioner's or judge's own motion or a motion of a 
 47.15  party which is properly served on all parties, dismiss the 
 47.16  case.  The petitioner must be given at least 30 days advance 
 47.17  notice of the proposed dismissal before the dismissal is 
 47.18  effective.  
 47.19     Sec. 24.  Minnesota Statutes 1994, section 176.321, 
 47.20  subdivision 2, is amended to read: 
 47.21     Subd. 2.  [CONTENTS.] The answer shall admit, deny, or 
 47.22  affirmatively defend against the substantial averments of the 
 47.23  petition, and shall state the contention of the adverse party 
 47.24  with reference to the matter in dispute. 
 47.25     Each fact alleged by the petition or answer and not 
 47.26  specifically denied by the answer or reply is deemed admitted, 
 47.27  but the failure to deny such a fact does not preclude the 
 47.28  commissioner or compensation judge from requiring proof of the 
 47.29  fact. 
 47.30     The answer shall include the names and addresses of all 
 47.31  known witnesses; whether or not the employer intends to schedule 
 47.32  an adverse examination and, if known, the date, time, and place 
 47.33  of all adverse examinations; the desired location for a hearing; 
 47.34  any request for a prehearing or settlement conference; the 
 47.35  estimated time needed to present evidence at a 
 47.36  hearing sufficient additional supporting documentation including 
 48.1   the medical, employment, and vocational records and other 
 48.2   information necessary to establish the compensability of a claim 
 48.3   or to determine other issues raised by the petition in a summary 
 48.4   decision; and, if an affidavit of significant financial hardship 
 48.5   and request for an expedited hearing are included with the 
 48.6   petition, any objection the employer may have to that request.  
 48.7   If the date, time, and place of all adverse examinations is 
 48.8   unknown at the time the answer is filed, the employer must 
 48.9   notify the commissioner in writing of the date, time, and place 
 48.10  of all adverse examinations within 50 days of the filing of the 
 48.11  claim petition.  
 48.12     Sec. 25.  Minnesota Statutes 1994, section 176.321, 
 48.13  subdivision 3, is amended to read: 
 48.14     Subd. 3.  [EXTENSION OF TIME IN WHICH TO FILE ANSWER.] Upon 
 48.15  showing of cause, the commissioner may extend the time in which 
 48.16  to file an answer or reply for not more than 30 additional 
 48.17  days in which the time for the commissioner to issue a decision 
 48.18  shall be increased by a period of not more than 30 days.  The 
 48.19  time to file an answer or reply and the time for the 
 48.20  commissioner to issue a decision may also be extended for not 
 48.21  more than 30 days upon agreement of the petitioner, and provided 
 48.22  that the commissioner must be notified in writing by the 
 48.23  employer no later than five days beyond the time required for 
 48.24  the filing of the answer of the fact that an agreement has been 
 48.25  reached, including the length of the extension.  Any case 
 48.26  received by the office that does not include an answer, written 
 48.27  extension order, or written notification of the extension 
 48.28  agreement shall be immediately set for a hearing at the first 
 48.29  available date under section 176.331. 
 48.30     Sec. 26.  Minnesota Statutes 1994, section 176.322, is 
 48.31  amended to read: 
 48.32     176.322 [DECISIONS BASED ON STIPULATED FACTS.] 
 48.33     If the parties agree to a stipulated set of facts and only 
 48.34  legal issues remain, the commissioner or compensation judge may 
 48.35  shall determine the matter without a hearing based upon the 
 48.36  stipulated facts and the determination is appealable to the 
 49.1   court of appeals pursuant to sections 176.421 and 176.442.  In 
 49.2   any case where a stipulated set of facts has been submitted 
 49.3   pursuant to this section, upon receipt of the file or the 
 49.4   stipulated set of facts the chief administrative law judge shall 
 49.5   immediately assign the case to a compensation judge for a 
 49.6   determination.  The judge shall issue a determination within 60 
 49.7   days after receipt of the stipulated facts.  
 49.8      Sec. 27.  [TRANSFER OF JURISDICTION AND PERSONNEL.] 
 49.9      The jurisdiction of the workers' compensation court of 
 49.10  appeals is transferred to the court of appeals.  All contracts, 
 49.11  books, plans, papers, records, and property of every description 
 49.12  of the workers' compensation court of appeals relating to its 
 49.13  transferred responsibilities and within its jurisdiction or 
 49.14  control are transferred to the court of appeals; except that all 
 49.15  case files are transferred to the clerk of the appellate 
 49.16  courts.  All classified employees and staff attorneys of the 
 49.17  workers' compensation court of appeals must be given preference 
 49.18  in the employment of personnel required to staff the increased 
 49.19  caseload of the court of appeals as a result of transfer of 
 49.20  jurisdiction under this section. 
 49.21     Sec. 28.  [INCREASED JUDGES.] 
 49.22     The number of judges on the court of appeals on July 1, 
 49.23  1996, shall be increased by three. 
 49.24     Sec. 29.  [REAPPROPRIATION.] 
 49.25     All funds remaining in the biennial appropriation on July 
 49.26  1, 1996, are to be reappropriated from the special compensation 
 49.27  fund, as a result of the savings to that fund in fiscal years 
 49.28  1996 and 1997 due to the abolition of the workers' compensation 
 49.29  court of appeals, to the court of appeals for the purposes of 
 49.30  this article. 
 49.31     Sec. 30.  [REVISOR INSTRUCTION.] 
 49.32     In every instance in Minnesota Statutes in which the term 
 49.33  "workers' compensation court of appeals" appears, the revisor of 
 49.34  statutes shall change that reference to the "court of appeals." 
 49.35     The revisor of statutes shall, in conjunction with the 
 49.36  department of labor and industry, determine and implement 
 50.1   appropriate cross-reference changes to more specific references. 
 50.2      Sec. 31.  [REPEALER.] 
 50.3      Minnesota Statutes 1994, section 176.191, subdivision 6, is 
 50.4   repealed. 
 50.5      Sec. 32.  [EFFECTIVE DATE.] 
 50.6      Sections 3 to 5 and 31 are effective October 1, 1995.  
 50.7      Sections 6 to 30 are effective July 1, 1996. 
 50.8                              ARTICLE 7
 50.9      Section 1.  [176.1812] [COLLECTIVE BARGAINING AGREEMENTS.] 
 50.10     Subdivision 1.  [REQUIREMENTS.] Upon appropriate filing, 
 50.11  the commissioner, compensation judge, workers' compensation 
 50.12  court of appeals, and courts shall recognize as valid and 
 50.13  binding a provision in a collective bargaining agreement between 
 50.14  a qualified employer or qualified groups of employers engaged in 
 50.15  construction, construction maintenance, and related activities 
 50.16  and the recognized or certified and exclusive representative of 
 50.17  its employees to establish certain obligations and procedures 
 50.18  relating to workers' compensation.  For purposes of this 
 50.19  section, "qualified employer" means a private employer 
 50.20  developing or projecting an annual workers' compensation 
 50.21  premium, in Minnesota, of $250,000 or more and a "qualified 
 50.22  group of employers" means a group of private employers engaged 
 50.23  in workers' compensation group self-insurance complying with 
 50.24  section 79A.03, subdivision 6, which develops or projects annual 
 50.25  workers' compensation insurance premiums of $2,000,000 or more.  
 50.26  This agreement must be limited to, but need not include, all of 
 50.27  the following: 
 50.28     (a) an alternative dispute resolution system to supplement, 
 50.29  modify, or replace the procedural or dispute resolution 
 50.30  provisions of this chapter.  The system may include mediation, 
 50.31  arbitration, or other dispute resolution proceedings, the 
 50.32  results of which may be finally binding upon the parties.  A 
 50.33  system of arbitration may provide that the decision of the 
 50.34  arbiter is subject to review either by the workers' compensation 
 50.35  court of appeals in the same manner as an award or order of a 
 50.36  compensation judge or, in lieu of review by the workers' 
 51.1   compensation court of appeals, by the district court, by the 
 51.2   Minnesota court of appeals, or by the supreme court in the same 
 51.3   manner as the workers' compensation court of appeals; 
 51.4      (b) an agreed list of providers of medical treatment that 
 51.5   may be the exclusive source of all medical and related treatment 
 51.6   provided under this chapter which shall not be subject to the 
 51.7   requirements in section 176.1351; 
 51.8      (c) the use of a limited list of impartial physicians to 
 51.9   conduct independent medical examinations; 
 51.10     (d) the creation of a light duty, modified job, or return 
 51.11  to work program; 
 51.12     (e) the establishment of vocational rehabilitation or 
 51.13  retraining programs which are not subject to the requirements of 
 51.14  section 176.102; or 
 51.15     (f) the adoption of a 24-hour health care coverage plan. 
 51.16     Subd. 2.  [FILING AND REVIEW.] A copy of the agreement and 
 51.17  the approximate number of employees who will be covered under it 
 51.18  must be filed with the commissioner.  Within 21 days of receipt 
 51.19  of an agreement, the commissioner shall review the agreement for 
 51.20  compliance with the benefit provisions of this chapter and 
 51.21  notify the parties of any additional information required or any 
 51.22  recommended modification that would bring the agreement into 
 51.23  compliance.  Upon receipt of any requested information or 
 51.24  modification, the commissioner must notify the parties within 21 
 51.25  days whether the agreement is in compliance with the benefit 
 51.26  provisions of this chapter. 
 51.27     In order for any agreement to remain in effect, it must 
 51.28  provide for a timely and accurate method of reporting to the 
 51.29  commissioner necessary information regarding service cost and 
 51.30  utilization to enable the commissioner to annually report to the 
 51.31  legislature.  The information provided to the commissioner must 
 51.32  include aggregate data on the: 
 51.33     (i) person hours covered by agreements filed; 
 51.34     (ii) number of claims filed; 
 51.35     (iii) average cost per claim; 
 51.36     (iv) number of litigated claims, including the number of 
 52.1   claims submitted to arbitration, the workers' compensation court 
 52.2   of appeals, the district court, the Minnesota court of appeals 
 52.3   or the supreme court; 
 52.4      (v) number of contested claims resolved prior to 
 52.5   arbitration; 
 52.6      (vi) projected incurred costs and actual costs of claims; 
 52.7      (vii) employer's safety history; 
 52.8      (viii) number of workers participating in vocational 
 52.9   rehabilitation; and 
 52.10     (ix) number of workers participating in light-duty programs.
 52.11     Subd. 3.  [REFUSAL TO RECOGNIZE.] A person aggrieved by the 
 52.12  commissioner's decision concerning an agreement may request in 
 52.13  writing, within 30 days of the date the notice is issued, the 
 52.14  initiation of a contested case proceeding under chapter 14.  The 
 52.15  request to initiate a contested case must be received by the 
 52.16  department by the 30th day after the commissioner's decision.  
 52.17  An appeal from the commissioner's final decision and order may 
 52.18  be taken to the workers' compensation court of appeals pursuant 
 52.19  to sections 176.421 and 176.442. 
 52.20     Subd. 4.  [VOID AGREEMENTS.] Nothing in this section shall 
 52.21  allow any agreement that diminishes an employee's entitlement to 
 52.22  benefits as otherwise set forth in this chapter.  Any agreement 
 52.23  that diminishes an employee's entitlement to benefits as set 
 52.24  forth in this chapter is null and void. 
 52.25     Subd. 5.  [NOTICE TO INSURANCE CARRIER.] If the employer is 
 52.26  insured under this chapter, the collective bargaining agreement 
 52.27  provision shall not be recognized by the commissioner, 
 52.28  compensation judge, workers' compensation court of appeals, and 
 52.29  other courts unless the employer has given notice to the 
 52.30  employer's insurance carrier, in the manner provided in the 
 52.31  insurance contract, of intent to enter into an agreement with 
 52.32  its employees as provided in this section. 
 52.33     Subd. 6.  [PILOT PROGRAM.] The commissioner shall establish 
 52.34  a pilot program ending December 31, 1997, in which up to ten 
 52.35  private employers not otherwise able to participate in the 
 52.36  agreements provided for in this section shall be authorized to 
 53.1   enter into valid agreements with their employees.  The 
 53.2   agreements shall be recognized and enforced as provided by this 
 53.3   section.  Notwithstanding subdivision 1, private employers 
 53.4   engaged in any type of business activity may participate in the 
 53.5   pilot program through agreements with the majority of employees 
 53.6   to be covered by the proposed agreement whether or not the 
 53.7   employees have a recognized or certified and exclusive 
 53.8   representative and without regard to the dollar insurance 
 53.9   premium limitations in subdivision 1. 
 53.10     Subd. 7.  [RULES.] The commissioner may adopt emergency or 
 53.11  permanent rules necessary to implement this section.