1.1                          A bill for an act 
  1.2             relating to workers' compensation law and insurance; 
  1.3             providing a new general system of law and insurance 
  1.4             provisions for the compensation of employment related 
  1.5             injuries; transferring the jurisdiction and personnel 
  1.6             of the workers' compensation court of appeals; 
  1.7             providing rights, duties, and remedies; providing for 
  1.8             administration and procedure; permitting adoption of 
  1.9             administrative rules; proposing penalties; proposing 
  1.10            coding for new law as Minnesota Statutes, chapters 
  1.11            176C; and 176D; repealing Minnesota Statutes 1994, 
  1.12            sections 79.01; 79.074; 79.081; 79.085; 79.095; 
  1.13            79.096; 79.10; 79.211; 79.251; 79.252; 79.253; 79.255; 
  1.14            79.50; 79.52; 79.53; 79.531; 79.54; 79.55; 79.56; 
  1.15            79.57; 79.58; 79.59; 79.60; 79.61; 79.62; 176.001; 
  1.16            176.011; 176.021; 176.031; 176.041; 176.051; 176.061; 
  1.17            176.071; 176.081; 176.091; 176.092; 176.095; 176.101; 
  1.18            176.1011; 176.102; 176.1021; 176.103; 176.104; 
  1.19            176.1041; 176.105; 176.106; 176.111; 176.121; 176.129; 
  1.20            176.130; 176.1311; 176.132; 176.1321; 176.133; 
  1.21            176.135; 176.1351; 176.136; 176.1361; 176.137; 
  1.22            176.138; 176.139; 176.141; 176.145; 176.151; 176.155; 
  1.23            176.161; 176.165; 176.171; 176.175; 176.178; 176.179; 
  1.24            176.181; 176.182; 176.183; 176.184; 176.185; 176.186; 
  1.25            176.191; 176.192; 176.194; 176.195; 176.201; 176.205; 
  1.26            176.211; 176.215; 176.221; 176.222; 176.225; 176.231; 
  1.27            176.232; 176.234; 176.235; 176.238; 176.239; 176.245; 
  1.28            176.251; 176.253; 176.261; 176.2615; 176.271; 176.275; 
  1.29            176.281; 176.285; 176.291; 176.295; 176.301; 176.305; 
  1.30            176.306; 176.307; 176.311; 176.312; 176.321; 176.322; 
  1.31            176.325; 176.331; 176.341; 176.351; 176.361; 176.371; 
  1.32            176.381; 176.391; 176.401; 176.411; 176.421; 176.442; 
  1.33            176.451; 176.461; 176.471; 176.481; 176.491; 176.511; 
  1.34            176.521; 176.522; 176.531; 176.5401; 176.541; 176.551; 
  1.35            176.561; 176.571; 176.572; 176.581; 176.591; 176.603; 
  1.36            176.611; 176.641; 176.645; 176.651; 176.66; 176.669; 
  1.37            176.82; 176.83; 176.84; 176.85; and 176.86. 
  1.38  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.39                             ARTICLE 1 
  1.40                       WORKERS' COMPENSATION
  1.41     Section 1.  [176C.01] [CITATION.] 
  2.1      This act may be referred to as the "workers' compensation 
  2.2   act" and allowances, recoveries, and liabilities under this act 
  2.3   constitute "workers' compensation." 
  2.4      Sec. 2.  [176C.02] [DEFINITIONS.] 
  2.5      Subdivision 1.  [SCOPE.] For the purposes of this act, the 
  2.6   terms defined in this section have the meanings given them. 
  2.7      Subd. 2.  [COMPENSATION.] "Compensation" means workers' 
  2.8   compensation. 
  2.9      Subd. 3.  [COMPENSATION RATING BUREAU.] "Compensation 
  2.10  rating bureau" means the bureau provided for in section 176D.06. 
  2.11     Subd. 4.  [DEPARTMENT.] "Department" means the department 
  2.12  of labor and industry unless the context clearly indicates 
  2.13  otherwise. 
  2.14     Subd. 5.  [INJURY.] "Injury" means mental or physical harm 
  2.15  to an employee caused by accident or disease, and also means 
  2.16  damage to or destruction of artificial members, dental 
  2.17  appliances, teeth, hearing aids, and eyeglasses, but, in the 
  2.18  case of hearing aids or eyeglasses, only if the damage or 
  2.19  destruction resulted from an accident which also caused personal 
  2.20  injury entitling the employee to compensation either for 
  2.21  disability or treatment. 
  2.22     Subd. 6.  [MUNICIPALITY.] "Municipality" includes a county, 
  2.23  home rule charter or statutory city, town, school district, 
  2.24  sewer district, drainage district, and other public or 
  2.25  quasi-public corporations. 
  2.26     Subd. 7.  [PRIMARY COMPENSATION AND DEATH 
  2.27  BENEFIT.] "Primary compensation and death benefit" means 
  2.28  compensation or indemnity for disability or death benefit, other 
  2.29  than increased, double or treble compensation or death benefit. 
  2.30     Subd. 8.  [TEMPORARY HELP AGENCY.] "Temporary help agency" 
  2.31  means an employer who places its employee with or leases its 
  2.32  employees to another employer who controls the employee's work 
  2.33  activities and compensates the first employer for the employee's 
  2.34  services, regardless of the duration of the services. 
  2.35     Subd. 9.  [TIME OF INJURY; OCCURRENCE OF INJURY; DATE OF 
  2.36  INJURY.] Except as provided in section 176C.555 with respect to 
  3.1   occupational deafness, "time of injury," "occurrence of injury," 
  3.2   or "date of injury" means: 
  3.3      (1) in the case of accidental injury, the date of the 
  3.4   accident which caused the injury; and 
  3.5      (2) in the case of disease, the date of disability or, if 
  3.6   that date occurs after the cessation of all employment that 
  3.7   contributed to the disability, the last day of work for the last 
  3.8   employer whose employment caused disability. 
  3.9      Subd. 10.  [UNINSURED EMPLOYER.] "Uninsured employer" means 
  3.10  an employer that is in violation of chapter 176C.  
  3.11     Subd. 11.  [UNINSURED EMPLOYER ASSESSMENT.] "Uninsured 
  3.12  employer assessment" means the assessment imposed under chapter 
  3.13  176C.  
  3.14     Subd. 12.  [UNINSURED EMPLOYERS FUND.] "Uninsured employers 
  3.15  fund" means the fund established under chapter 176C. 
  3.16     Sec. 3.  [176C.03] [CONDITIONS OF LIABILITY.] 
  3.17     Subdivision 1.  [CONDITIONS.] Liability under this act 
  3.18  exists against an employer only if the following conditions 
  3.19  concur: 
  3.20     (1) the employee sustains an injury; 
  3.21     (2) at the time of injury, both the employer and employee 
  3.22  are subject to the provisions of this act; 
  3.23     (3) at the time of the injury, the employee is performing 
  3.24  service growing out of and incidental to the employee's 
  3.25  employment; 
  3.26     (4) the injury is not intentionally self-inflicted; and 
  3.27     (5) the accident or disease causing injury arises out of 
  3.28  the employee's employment. 
  3.29     Subd. 2.  [GOING TO AND FROM WORK; COVERED.] Any employee 
  3.30  going to and from the employee's employment in the ordinary and 
  3.31  usual way, while on the premises of the employer, or while in 
  3.32  their immediate vicinity if the injury results from an 
  3.33  occurrence on the premises, any employee going between an 
  3.34  employer's designated parking lot and the employer's work 
  3.35  premises while on a direct route and in the ordinary and usual 
  3.36  way or any firefighter or municipal utility employee responding 
  4.1   to a call for assistance outside the limits of the firefighter's 
  4.2   or employer's city or town, unless that response is in violation 
  4.3   of law, is performing service growing out of and incidental to 
  4.4   employment. 
  4.5      Subd. 3.  [GOING TO AND FROM WORK; NO LIABILITY.] An 
  4.6   employee is not performing service growing out of and incidental 
  4.7   to the employee's employment while going to or from employment 
  4.8   in a private or group or employer-sponsored car pool, van pool, 
  4.9   commuter bus service or other ride-sharing program in which the 
  4.10  employee participates voluntarily and the sole purpose of which 
  4.11  is the mass transportation of employees to and from employment. 
  4.12     Subd. 4.  [PHYSICAL FITNESS PROGRAMS.] An employee is not 
  4.13  performing service growing out of and incidental to employment 
  4.14  while engaging in a program designed to improve the physical 
  4.15  well-being of the employee, whether or not the program is 
  4.16  located on the employer's premises, if participation in the 
  4.17  program is voluntary, and the employee receives no compensation 
  4.18  for participation. 
  4.19     Subd. 5.  [EMPLOYMENT PREMISES.] The premises of the 
  4.20  employer include the premises of any other person on whose 
  4.21  premises the employee performs service. 
  4.22     Subd. 6.  [PUBLIC EMPLOYMENT.] To enhance the morale and 
  4.23  efficiency of public employees in this state and attract 
  4.24  qualified personnel to the public service, it is the policy of 
  4.25  the state that benefits of this act shall extend and be granted 
  4.26  to employees in the service of the state or of any municipality 
  4.27  on the same basis, in the same manner, under the same 
  4.28  conditions, and with like right of recovery as in the case of 
  4.29  employees of persons, firms, or private corporations.  
  4.30  Accordingly, the same considerations, standards, and rules of 
  4.31  decision shall apply in all cases in determining whether any 
  4.32  employee under this act, at the time of the injury, was 
  4.33  performing service growing out of and incidental to the 
  4.34  employee's employment.  For the purposes of this subdivision no 
  4.35  differentiation shall be made among any of the classes of 
  4.36  employers enumerated in section 176C.04 or of employees 
  5.1   enumerated in section 176C.07; and no statutes, ordinances, or 
  5.2   administrative rules otherwise applicable to any employees 
  5.3   enumerated in section 176C.07 shall be controlling. 
  5.4      Subd. 7.  [TRAVELING DURING EMPLOYMENT.] Every employee 
  5.5   whose employment requires travel shall be deemed to be 
  5.6   performing service growing out of and incidental to employment 
  5.7   at all times while on a trip, except when engaged in a deviation 
  5.8   for a private or personal purpose.  An act reasonably necessary 
  5.9   for living or incidental to living shall not be regarded as such 
  5.10  a deviation.  Any accident or disease arising out of a hazard of 
  5.11  service shall be deemed to arise out of employment. 
  5.12     Subd. 8.  [LEGISLATORS.] Members of the state legislature 
  5.13  are covered by this act when they are engaged in performing 
  5.14  duties as state legislators including: 
  5.15     (1) performing services growing out of and incidental to 
  5.16  their function as legislators; 
  5.17     (2) performing their official duties as members of 
  5.18  committees or other official bodies created by the legislature; 
  5.19     (3) traveling to and from the state capital to perform 
  5.20  their duties as legislators; and 
  5.21     (4) traveling to and from any place to perform services 
  5.22  growing out of and incidental to their function as legislators, 
  5.23  regardless of where the trip originated, and including acts 
  5.24  reasonably necessary for living but excluding any deviations for 
  5.25  private or personal purposes except that acts reasonably 
  5.26  necessary for living are not deviations. 
  5.27     Subd. 9.  [EXCLUSIVE REMEDY; EXCEPTIONS.] If the conditions 
  5.28  in subdivisions 1 to 8 exist, the right to the recovery of 
  5.29  compensation under this act shall be the exclusive remedy 
  5.30  against the employer, any other employee of the same employer, 
  5.31  and the workers' compensation insurance carrier.  This section 
  5.32  does not limit the right of an employee to bring action against 
  5.33  any coemployee for an assault intended to cause bodily harm, or 
  5.34  against a coemployee for negligent operation of a motor vehicle 
  5.35  not owned or leased by the employer, or against a coemployee of 
  5.36  the same employer to the extent that there would be liability of 
  6.1   a governmental unit to pay judgments against employees under a 
  6.2   collective bargaining agreement or a local ordinance. 
  6.3      Subd. 10.  [SAFETY INSPECTION OR SERVICE 
  6.4   ACTIVITIES.] Providing or failing to provide any safety 
  6.5   inspection or safety advisory service incident to a contract for 
  6.6   workers' compensation insurance or to a contract for safety 
  6.7   inspections or safety advisory services does not by itself 
  6.8   subject an insurer, an employer, an insurance service 
  6.9   organization, a union, a union member, or any agent or employee 
  6.10  of the insurer, employer, insurance service organization, or 
  6.11  union to liability for damages for an injury resulting from 
  6.12  providing or failing to provide the inspection or services. 
  6.13     Subd. 11.  [DATE OF INJURY GOVERNS.] The right to 
  6.14  compensation and the amount of the compensation shall in all 
  6.15  cases be determined in accordance with the provisions of law in 
  6.16  effect as of the date of the injury except as to employees whose 
  6.17  rate of compensation is changed as provided in sections 176C.43, 
  6.18  subdivision 8, and 176C.44, subdivision 5, and employees who are 
  6.19  eligible to receive private rehabilitative counseling and 
  6.20  training under section 176C.61. 
  6.21     Subd. 12.  [OUT-OF-STATE INJURIES.] If an employee, while 
  6.22  working outside the territorial limits of this state, suffers an 
  6.23  injury on account of which the employee, or in the event of the 
  6.24  employee's death, the employee's dependents, would have been 
  6.25  entitled to the benefits provided by this act had the injury 
  6.26  occurred within this state, the employee, or in the event of the 
  6.27  employee's death resulting from the injury, the dependents of 
  6.28  the employee, shall be entitled to the benefits provided by this 
  6.29  act, if at the time of the injury any of the following applies: 
  6.30     (1) the employee's employment is principally localized in 
  6.31  this state; 
  6.32     (2) the employee is working under a contract of hire made 
  6.33  in this state in employment not principally localized in any 
  6.34  state; 
  6.35     (3) the employee is working under a contract made in this 
  6.36  state in employment principally localized in another state whose 
  7.1   workers' compensation law is not applicable to that person's 
  7.2   employer; 
  7.3      (4) the employee is working under a contract of hire made 
  7.4   in this state for employment outside the United States; or 
  7.5      (5) the employee is a Minnesota peace officer acting under 
  7.6   an agreement authorized in sections 626.65 to 626.72. 
  7.7      Sec. 4.  [176C.04] [EMPLOYER; DEFINITION.] 
  7.8      Subdivision 1.  [SCOPE.] "Employer" has the meaning given 
  7.9   in this section and the employers described in this section are 
  7.10  subject to the provisions of this act, within the meaning of 
  7.11  section 176C.03. 
  7.12     Subd. 2.  [GOVERNMENT EMPLOYERS.] The state, each county, 
  7.13  city, town, school district, sewer district, drainage district, 
  7.14  and other public or quasi-public corporations in the state.  
  7.15     Subd. 3.  [EMPLOYER.] Every person who usually employs 
  7.16  three or more employees, whether in one or more trades, 
  7.17  businesses, professions or occupations, and whether in one or 
  7.18  more locations. 
  7.19     This subdivision does not apply to farmers or farm labor. 
  7.20     Subd. 3a.  [SMALL EMPLOYER; WAGES PAID.] Every person who 
  7.21  usually employs less than three employees, provided the person 
  7.22  has paid wages of $500 or more in any calendar quarter for 
  7.23  services performed in this state.  Such an employer is subject 
  7.24  on the tenth day of the month next succeeding such quarter. 
  7.25     This subdivision does not apply to farmers or farm labor. 
  7.26     Subd. 4.  [FARMING.] Every person engaged in farming who on 
  7.27  any 20 consecutive or nonconsecutive days during a calendar year 
  7.28  employs six or more employees, whether in one or more locations. 
  7.29  The provisions of this act apply to such an employer ten days 
  7.30  after the 20th such day. 
  7.31     Subd. 5.  [JOINT VENTURES.] Every joint venture electing 
  7.32  under section 176C.281, subdivision 1, to be an employer. 
  7.33     Subd. 6.  [ELECTED COVERAGE.] Every person to whom 
  7.34  subdivisions 2 to 5 are not applicable, who has any person in 
  7.35  service under any contract of hire, express or implied, oral or 
  7.36  written, and who, at or prior to the time of the injury to the 
  8.1   employee for which compensation may be claimed, shall, as 
  8.2   provided in section 176C.05, have elected to become subject to 
  8.3   the provisions of this act, and who has not, prior to the 
  8.4   accident, effected a withdrawal of the election. 
  8.5      Subd. 7.  [PARTNERS.] Except with respect to a partner or 
  8.6   member electing under section 176C.075, members of partnerships 
  8.7   or limited liability companies shall not be counted as employees.
  8.8      Subd. 8.  [EMPLOYEE OF ONLY ONE EMPLOYER.] Except as 
  8.9   provided in section 176C.07, subdivision 7, clause (a), a person 
  8.10  under contract of hire for the performance of any service for 
  8.11  any employer subject to this section shall not constitute an 
  8.12  employer of any other person with respect to the service and the 
  8.13  other person shall, with respect to the service, be deemed to be 
  8.14  an employee only of the employer for whom the service is being 
  8.15  performed. 
  8.16     Subd. 9.  [FARMING; FARM PREMISES; FARMER.] As used in this 
  8.17  act, "farming" means the operation of farm premises owned or 
  8.18  rented by the operator.  "Farm premises" means areas used for 
  8.19  operations set forth in this subdivision, but does not include 
  8.20  other areas, greenhouses, or other similar structures unless 
  8.21  used principally for the production of food and farm plants.  
  8.22  "Farmer" means any person engaged in farming.  Operation of farm 
  8.23  premises shall be deemed to be:  
  8.24     (1) planting and cultivating of their soil; 
  8.25     (2) raising and harvesting of agricultural, horticultural, 
  8.26  or arboricultural crops on them; 
  8.27     (3) raising, breeding, tending, training, and management of 
  8.28  livestock, bees, poultry, fur-bearing animals, wildlife or 
  8.29  aquatic life, or their products on them; 
  8.30     (4) processing, drying, packing, packaging, freezing, 
  8.31  grading, storing, delivering to storage, to market or to a 
  8.32  carrier for transportation to market, distributing directly to 
  8.33  consumers or marketing any of the above-named commodities, 
  8.34  substantially all of which have been planted or produced on the 
  8.35  premises; 
  8.36     (5) clearing of the premises and salvaging of timber and 
  9.1   management and use of wood lots on them, but not including 
  9.2   logging, lumbering, or wood cutting operations unless conducted 
  9.3   as an accessory to other farming operations; and 
  9.4      (6) managing, conserving, improving, and maintaining the 
  9.5   premises or the tools, equipment and improvements on them and 
  9.6   the exchange of labor, services, or the exchange of use of 
  9.7   equipment with other farmers in pursuing those activities.  
  9.8   The operation for not to exceed 30 days during any calendar 
  9.9   year, by any person deriving the person's principal income from 
  9.10  farming, of farm machinery in performing farming services for 
  9.11  other farmers for a consideration other than exchange of labor 
  9.12  shall be deemed farming.  Operation of the premises shall be 
  9.13  deemed to include also any other activities commonly considered 
  9.14  to be farming whether conducted on or off the premises by the 
  9.15  farm operator. 
  9.16     Sec. 5.  [176C.05] [ELECTION BY EMPLOYER, WITHDRAWAL.] 
  9.17     Subdivision 1.  [WITHDRAWAL.] An employer who has had no 
  9.18  employee at any time within a continuous period of two years 
  9.19  shall be deemed to have effected withdrawal, which shall be 
  9.20  effective on the last day of that period.  An employer who has 
  9.21  not usually employed three employees and who has not paid wages 
  9.22  of at least $500 for employment in this state in any calendar 
  9.23  quarter in a calendar year may file a withdrawal notice with the 
  9.24  department, which withdrawal shall take effect 30 days after the 
  9.25  date of the filing or at a later date specified in the notice. 
  9.26  If an employer who is subject to this chapter only because the 
  9.27  employer elected to become subject to this chapter under 
  9.28  subdivision 2 cancels or terminates the contract for the 
  9.29  insurance of compensation under this chapter, that employer is 
  9.30  deemed to have effected withdrawal, which shall be effective on 
  9.31  the day after the contract is canceled or terminated. 
  9.32     Subd. 2.  [ELECTION BY PURCHASE OF INSURANCE.] An employer 
  9.33  who enters into insurance of compensation, or against liability 
  9.34  for compensation, shall be deemed by that action to have elected 
  9.35  to accept the provisions of this act, and the election shall 
  9.36  include farm laborers, domestic servants, and employees not in 
 10.1   the course of a trade, business, profession, or occupation of 
 10.2   the employer if such an intent is shown by the terms of the 
 10.3   policy.  The election shall remain in force until withdrawn in 
 10.4   the manner provided in subdivision 1. 
 10.5      Subd. 3.  [WITHDRAWAL BY FARMER.] Any person engaged in 
 10.6   farming who has become subject to this act may withdraw by 
 10.7   filing with the department a notice of withdrawal, providing he 
 10.8   has not employed six or more employees as defined by section 
 10.9   176C.07, subdivision 7, on 20 or more days during the current or 
 10.10  previous calendar year.  The withdrawal shall be effective 30 
 10.11  days after the date of receipt by the department, or at the 
 10.12  later date specified in the notice.  The person may again become 
 10.13  subject to this act as provided by section 176C.04, subdivisions 
 10.14  4 and 6.  
 10.15     Sec. 6.  [176C.06] [JOINT LIABILITY OF EMPLOYER AND 
 10.16  CONTRACTOR.] 
 10.17     An employer shall be liable for compensation to an employee 
 10.18  of a contractor or subcontractor under the employer who is not 
 10.19  subject to this chapter, or who has not complied with the 
 10.20  conditions of section 176C.281, subdivision 2, in any case where 
 10.21  such employer would have been liable for compensation if such 
 10.22  employee had been working directly for the employer, including 
 10.23  also work in the erection, alteration, repair, or demolition of 
 10.24  improvements or of fixtures upon premises of such employer which 
 10.25  are used or to be used in the operations of such employer.  The 
 10.26  contractor or subcontractor, if subject to this chapter, shall 
 10.27  also be liable for such compensation, but the employee shall not 
 10.28  recover compensation for the same injury from more than one 
 10.29  party.  The employer who becomes liable for and pays such 
 10.30  compensation may recover the same from such contractor, 
 10.31  subcontractor, or other employer for whom the employee was 
 10.32  working at the time of the injury if such contractor, 
 10.33  subcontractor, or other employer was an employer as defined in 
 10.34  section 176C.04. 
 10.35     Sec. 7.  [176C.07] [EMPLOYEES DEFINED.] 
 10.36     Subdivision 1.  [SCOPE.] As used in this act employee means 
 11.1   the persons described in this section. 
 11.2      Subd. 2.  [PUBLIC EMPLOYEES.] Every person, including all 
 11.3   officials, in the service of the state, or of any municipality 
 11.4   whether elected or under any appointment, or contract of hire, 
 11.5   express or implied, and whether a resident or employed or 
 11.6   injured within or without the state. 
 11.7      Subd. 3.  [PEACE OFFICER.] Any peace officer shall be 
 11.8   considered an employee while engaged in the enforcement of peace 
 11.9   or in the pursuit and capture of those charged with crime.  
 11.10     Subd. 4.  [PUBLIC EMPLOYEES; PAYMENT DURING 
 11.11  DISABILITY.] Nothing herein contained shall prevent 
 11.12  municipalities from paying teachers, police officers, 
 11.13  firefighters, and other employees full salaries during 
 11.14  disability, or interfere with any pension funds, or prevent 
 11.15  payment to teachers, police officers, or firefighters from them. 
 11.16     Subd. 5.  [EMPLOYEE IN COURSE OF TRADE; SERVANTS.] Every 
 11.17  person in the service of another under any contract of hire, 
 11.18  express or implied, all helpers and assistants of employees, 
 11.19  whether paid by the employer or employee, if employed with the 
 11.20  knowledge, actual or constructive, of the employer, including 
 11.21  minors (who shall have the same power of contracting as adult 
 11.22  employees), but not including (1) domestic servants, (2) any 
 11.23  person whose employment is not in the course of a trade, 
 11.24  business, profession, or occupation of the employer, unless as 
 11.25  to any of those classes, the employer has elected to include 
 11.26  them.  Clause (2) shall not operate to exclude an employee whose 
 11.27  employment is in the course of a trade, business, profession, or 
 11.28  occupation of the employer, however casual, unusual, desultory, 
 11.29  or isolated such a trade, business, profession, or occupation 
 11.30  may be. 
 11.31     Subd. 6.  [FARM EMPLOYEES.] For the purposes of determining 
 11.32  the number of employees to be counted under section 176C.04, 
 11.33  subdivision 4, but for no other purpose, the following shall 
 11.34  apply: 
 11.35     (a) Farmers or their employees working on an exchange basis 
 11.36  shall not be deemed employees of a farmer to whom their labor is 
 12.1   furnished in exchange. 
 12.2      (b) The parents, spouse, child, brother, sister, 
 12.3   son-in-law, daughter-in-law, father-in-law, mother-in-law, 
 12.4   brother-in-law, or sister-in-law of a farmer shall not be deemed 
 12.5   the farmer's employees. 
 12.6      (c) A shareholder-employee of a family farm corporation 
 12.7   shall be deemed a "farmer" for purposes of this act and shall 
 12.8   not be deemed an employee of a farmer.  A "family farm 
 12.9   corporation" means a corporation engaged in farming all of whose 
 12.10  shareholders are related as lineal ancestors or lineal 
 12.11  descendants, or as spouses, brothers, sisters, uncles, aunts, 
 12.12  cousins, sons-in-law, daughters-in-law, fathers-in-law, 
 12.13  mothers-in-law, brothers-in-law, or sisters-in-law of lineal 
 12.14  ancestors or lineal descendants. 
 12.15     Subd. 7.  [NEWSPAPER AND MAGAZINE SELLERS.] Every person 
 12.16  selling or distributing newspapers or magazines on the street or 
 12.17  from house to house.  Such a person shall be deemed an employee 
 12.18  of each independent news agency which is subject to this act, or 
 12.19  (in the absence of such agencies) of each publisher's (or other 
 12.20  intermediate) selling agency which is subject to this act, or 
 12.21  (in the absence of all such agencies) of each publisher, whose 
 12.22  newspapers or magazines the person sells or distributes.  Such a 
 12.23  person shall not be counted in determining whether an 
 12.24  intermediate agency or publisher is subject to this act. 
 12.25     Subd. 8.  [VOLUNTEER FIREFIGHTER.] (a) Every member of a 
 12.26  volunteer fire company or fire department organized under 
 12.27  statute or a legally organized rescue squad shall be deemed an 
 12.28  employee of the company, department, or squad.  Every member, 
 12.29  while serving as an auxiliary police officer at an emergency, 
 12.30  shall also be deemed an employee of the company, department, or 
 12.31  squad.  If the company, department, or squad has not insured its 
 12.32  liability for compensation to its employees, the municipality or 
 12.33  county within which the company, department, or squad was 
 12.34  organized shall be liable for such compensation. 
 12.35     (b) The department may issue an order under section 
 12.36  176C.31, subdivision 2, permitting the county within which a 
 13.1   volunteer fire company or fire department organized under 
 13.2   chapter 424A, a legally organized volunteer rescue squad or a 
 13.3   volunteer ambulance service provider, as defined in section 
 13.4   144.8091, subdivision 2, is organized to assume full liability 
 13.5   for the compensation provided under this chapter of all 
 13.6   volunteer members of that company, department, squad, or 
 13.7   provider. 
 13.8      Subd. 9.  [INDEPENDENT CONTRACTOR.] (a) Except as provided 
 13.9   in paragraph (b), every independent contractor is, for the 
 13.10  purpose of this act, an employee of any employer under this act 
 13.11  for whom the independent contractor is performing service in the 
 13.12  course of the trade, business, profession, or occupation of the 
 13.13  employer at the time of the injury. 
 13.14     (b) An independent contractor is not an employee of an 
 13.15  employer for whom the independent contractor performs work or 
 13.16  services if the independent contractor meets all of the 
 13.17  following requirements concurrently: 
 13.18     (1) maintains a separate business with an office, 
 13.19  equipment, materials, and other facilities; 
 13.20     (2) holds or has applied for a federal employer 
 13.21  identification number; 
 13.22     (3) operates under contracts to perform specific services 
 13.23  or work for specific amounts of money and under which the 
 13.24  independent contractor controls the means of performing the 
 13.25  services or work; 
 13.26     (4) incurs the main expenses related to the service or work 
 13.27  that the independent contractor performs under contract; 
 13.28     (5) is responsible for the satisfactory completion of work 
 13.29  or services that the independent contractor contracts to perform 
 13.30  and is liable for a failure to complete the work or service; 
 13.31     (6) receives compensation for work or service performed 
 13.32  under a contract on a commission, per job, or competitive bid 
 13.33  basis and not on any other basis; 
 13.34     (7) may realize a profit or suffer a loss under contracts 
 13.35  to perform work or service; 
 13.36     (8) has continuing or recurring business liabilities or 
 14.1   obligations; and 
 14.2      (9) the success or failure of the independent contractor's 
 14.3   business depends on the relationship of business receipts to 
 14.4   expenditures. 
 14.5      (c) The department may not admit in evidence state or 
 14.6   federal laws, regulations, or documents granting operating 
 14.7   authority or licenses when determining whether an independent 
 14.8   contractor meets the conditions specified in paragraph (b), 
 14.9   clause (1) or (3). 
 14.10     (d) An employer who is subject to this chapter is not an 
 14.11  employee of another employer for whom the first employer 
 14.12  performs work or service in the course of the other employer's 
 14.13  trade, business, profession, or occupation. 
 14.14     Subd. 10.  [NATIONAL GUARD.] Members of the national guard 
 14.15  and state defense force, when on state active duty under 
 14.16  direction of appropriate authority, but only if federal laws, 
 14.17  rules, or regulations provide no benefits substantially 
 14.18  equivalent to those provided in this act. 
 14.19     Subd. 11.  [PUBLIC EMPLOYEES; GOVERNING LAW.] Further to 
 14.20  effectuate the policy of the state that the benefits of this 
 14.21  chapter shall extend and be granted to employees in the service 
 14.22  of the state, or of any municipality on the same basis, in the 
 14.23  same manner, under the same conditions, and with like right of 
 14.24  recovery as in the case of employees of persons, firms, or 
 14.25  private corporations, any question whether any person is an 
 14.26  employee under this act shall be governed by and determined 
 14.27  under the same standards, considerations, and rules of decision 
 14.28  in all cases under subdivisions 1 to 10.  Any statutes, 
 14.29  ordinances, or administrative rules or regulations which may be 
 14.30  otherwise applicable to the classes of employees enumerated in 
 14.31  subdivision 2 shall not be controlling in deciding whether any 
 14.32  person is an employee for the purposes of this act. 
 14.33     Subd. 12.  [VOLUNTEERS.] The department of labor and 
 14.34  industry may by rule prescribe classes of volunteer workers who 
 14.35  may, at the election of the person for whom the service is being 
 14.36  performed, be deemed to be employees for the purposes of this 
 15.1   act.  Election shall be by endorsement upon the workers' 
 15.2   compensation insurance policy with written notice to the 
 15.3   department.  In the case of an employer exempt from insuring 
 15.4   liability, election shall be by written notice to the 
 15.5   department.  The department shall by rule prescribe the means 
 15.6   and manner in which notice of election by the employer is to be 
 15.7   provided to the volunteer workers. 
 15.8      Subd. 13.  [STUDENTS.] A student in a technical college 
 15.9   while, as a part of a program, engaged in performing services 
 15.10  for which a college collects a fee or is engaged in producing a 
 15.11  product sold by the college is an employee of that college. 
 15.12     Subd. 14.  [MINORS; COMMUNITY SERVICE WORK.] A minor 
 15.13  performing uncompensated community service work as a result of 
 15.14  an informal disposition under an order or direction of a court 
 15.15  is an employee of the county in which the court ordering the 
 15.16  community service work is located.  No compensation may be paid 
 15.17  to that employee for temporary disability during the healing 
 15.18  period. 
 15.19     Subd. 15.  [ADULT COMMUNITY SERVICE WORK.] An adult 
 15.20  performing uncompensated community service work under an order 
 15.21  or direction of a court is an employee of the county in which 
 15.22  the county attorney requiring or the court ordering the 
 15.23  community service work is located.  No compensation may be paid 
 15.24  to that employee for temporary disability during the healing 
 15.25  period. 
 15.26     Subd. 16.  [SOLE PROPRIETOR, PARTNER, OR MEMBER.] A sole 
 15.27  proprietor, partner, or member electing under section 176C.075 
 15.28  is an employee. 
 15.29     Subd. 17.  [WORK RELEASE PROGRAM.] An inmate participating 
 15.30  in a work release program or a transitional employment program 
 15.31  is an employee of any employer under this act for whom the 
 15.32  inmate is performing service at the time of the injury.  
 15.33     Sec. 8.  [176C.075] [ELECTION BY SOLE PROPRIETOR, PARTNER, 
 15.34  OR MEMBER.] 
 15.35     Subdivision 1.  [OBTAINING INSURANCE.] Any sole proprietor, 
 15.36  partner, or member of a limited liability company engaged in a 
 16.1   vocation, profession, or business on a substantially full-time 
 16.2   basis may elect to be an employee under this act by procuring 
 16.3   insurance against injury sustained in the pursuit of that 
 16.4   vocation, profession, or business.  This coverage may be 
 16.5   obtained by endorsement on an existing policy of workers' 
 16.6   compensation insurance or by issuance of a separate policy to 
 16.7   the sole proprietor, partner, or member on the same basis as any 
 16.8   other policy of workers' compensation insurance. 
 16.9      Subd. 2.  [ELIGIBILITY FOR BENEFITS.] For the purpose of 
 16.10  any insurance policy other than a workers' compensation 
 16.11  insurance policy, no sole proprietor, partner, or member may be 
 16.12  considered eligible for workers' compensation benefits unless 
 16.13  the person elected to be an employee under this section. 
 16.14     Subd 3.  [WITHDRAWAL OF ELECTION.] Any sole proprietor, 
 16.15  partner, or member who elected to be an employee under this 
 16.16  section may withdraw that election upon 30 days' prior written 
 16.17  notice to the insurance carrier and the compensation rating 
 16.18  bureau.  
 16.19     Sec. 9.  [176C.076] [ELECTION BY CORPORATE OFFICER.] 
 16.20     Subdivision 1.  [NONCOVERAGE; LIMITS.] Not more than two 
 16.21  officers of a corporation having not more than ten shareholders 
 16.22  may elect not to be subject to this act.  Except as provided in 
 16.23  subdivision 2, the election shall be made by an endorsement, on 
 16.24  the policy of workers' compensation insurance issued to that 
 16.25  corporation, naming each officer who has so elected.  The 
 16.26  election is effective for the period of the policy.  An officer 
 16.27  who so elects is an employee for the purpose of determining 
 16.28  whether the corporation is an employer under section 176C.04, 
 16.29  subdivision 3.  
 16.30     Subd. 2.  [ELECTION BY OFFICERS OF CORPORATION NOT SUBJECT 
 16.31  TO COVERAGE.] If a corporation has not more than ten 
 16.32  shareholders, not more than two officers, and no other employees 
 16.33  and is not otherwise required under this act to have a policy of 
 16.34  workers' compensation insurance, an officer of that corporation 
 16.35  who elects not to be subject to this act shall file a notice of 
 16.36  that election with the department of labor and industry on a 
 17.1   form approved by the department.  The election is effective 
 17.2   until the officer rescinds it by notifying the department in 
 17.3   writing. 
 17.4      Sec. 10.  [176C.08] [ADMINISTRATION FOR STATE EMPLOYEES.] 
 17.5      The department of employee relations has responsibility for 
 17.6   the timely delivery of benefits payable under this act to 
 17.7   employees of the state and their dependents and other functions 
 17.8   of the state as an employer under this act.  The department of 
 17.9   employee relations may delegate this authority to employing 
 17.10  departments and agencies and require reports as it deems 
 17.11  necessary to accomplish this purpose.  The department of 
 17.12  employee relations or its delegated authorities shall file with 
 17.13  the department of labor and industry the reports that are 
 17.14  required of all employers.  The department of labor and industry 
 17.15  shall monitor the delivery of benefits to state employees and 
 17.16  their dependents and shall consult with and advise the 
 17.17  department of employee relations in the manner and at the times 
 17.18  necessary to ensure prompt and proper delivery. 
 17.19     Sec. 11.  [176C.11] [EARNINGS, METHOD OF COMPUTATION.] 
 17.20     Subdivision 1.  [MAXIMUM EARNINGS AND COMPENSATION 
 17.21  RATES.] The average weekly earnings for temporary disability, 
 17.22  permanent total disability, or death benefits for injury in each 
 17.23  calendar year shall be not less than $30 nor more than the wage 
 17.24  rate which results in a maximum compensation rate of 100 percent 
 17.25  of the state's average weekly earnings as of June 30 of the 
 17.26  previous year.  The average weekly earnings for temporary 
 17.27  disability, permanent total disability, or death benefits for 
 17.28  injuries occurring before January 1, 1996, shall be not more 
 17.29  than $718.50, resulting in a maximum compensation rate of $479.  
 17.30  The average weekly earnings for permanent partial disability 
 17.31  shall be not less than $30 and for permanent partial 
 17.32  disabilities not more than $246 resulting in a maximum 
 17.33  compensation rate of $164.  Between those limits the average 
 17.34  weekly earnings shall be determined as provided in this section. 
 17.35     Subd. 2.  [DAILY EARNINGS.] Daily earnings means the daily 
 17.36  earnings of the employee at the time of the injury in the 
 18.1   employment in which the employee was then engaged.  In 
 18.2   determining daily earnings under this subdivision, overtime 
 18.3   shall not be considered.  If at the time of the injury the 
 18.4   employee is working on part time for the day, daily earnings 
 18.5   shall be arrived at by dividing the amount received, or to be 
 18.6   received by the employee for the part-time service for the day, 
 18.7   by the number of hours and fractional hours of part-time 
 18.8   service, and multiplying the result by the number of hours of 
 18.9   the normal full-time working day for the employment involved.  
 18.10  The words "part time for the day" shall apply to Saturday half 
 18.11  days and all other days upon which the employee works less than 
 18.12  normal full-time working hours.  The average weekly earnings 
 18.13  shall be arrived at by multiplying the daily earnings by the 
 18.14  number of days and fractional days normally worked per week at 
 18.15  the time of the injury in the business operation of the employer 
 18.16  for the particular employment in which the employee was engaged 
 18.17  at the time of the injury. 
 18.18     Subd. 3.  [SEASONAL EMPLOYMENT.] In case of seasonal 
 18.19  employment, average weekly earnings shall be arrived at by the 
 18.20  method prescribed in subdivision 2, except that the number of 
 18.21  hours of the normal full-time working day and the number of days 
 18.22  of the normal full-time working week shall be the hours and days 
 18.23  in similar service in the same or similar nonseasonal 
 18.24  employment.  Seasonal employment shall mean employment which can 
 18.25  be conducted only during certain times of the year, and in no 
 18.26  event shall employment be considered seasonal if it extends 
 18.27  during a period of more than fourteen weeks within a calendar 
 18.28  year. 
 18.29     Subd. 4.  [EARNINGS NOT CALCULABLE BY NORMAL METHOD.] In 
 18.30  the case of persons performing service without fixed earnings, 
 18.31  or if normal full-time days or weeks are not maintained by the 
 18.32  employer in the employment in which the employee worked when 
 18.33  injured, or if, for other reason, earnings cannot be determined 
 18.34  under the methods prescribed by subdivision 2 or 3, the earnings 
 18.35  of the injured person shall, for the purpose of calculating 
 18.36  compensation payable under this act, be taken to be the usual 
 19.1   going earnings paid for similar services on a normal full-time 
 19.2   basis in the same or similar employment in which earnings can be 
 19.3   determined under the methods set out in subdivision 2 or 3. 
 19.4      Subd. 5.  [AVERAGE WEEKLY EARNING CALCULATION.] Except in 
 19.5   situations where subdivision 3 applies, average weekly earnings 
 19.6   shall in no case be less than actual average weekly earnings of 
 19.7   the employee for the four calendar quarters before the injury 
 19.8   within which the employee has been employed in the business, in 
 19.9   the kind of employment and for the employer for whom the 
 19.10  employee worked when injured.  Calendar weeks within which no 
 19.11  work was performed shall not be considered under this 
 19.12  subdivision.  This subdivision applies only if the employee has 
 19.13  worked within a total of at least six calendar weeks during the 
 19.14  four calendar quarters before the injury in the business, in the 
 19.15  kind of employment and for the employer for whom the employee 
 19.16  worked when injured.  For purposes of this section, earnings for 
 19.17  part-time services performed for a labor organization pursuant 
 19.18  to a collective bargaining agreement between the employer and 
 19.19  that labor organization shall be considered as part of the total 
 19.20  earnings in the preceding four calendar quarter, whether payment 
 19.21  is made by the labor organization or the employer. 
 19.22     Subd. 6.  [NONCASH EARNINGS.] If any things of value are 
 19.23  received in addition to monetary earnings as a part of the wage 
 19.24  contract, they shall be deemed a part of earnings and computed 
 19.25  at their value to the employee. 
 19.26     Subd. 7.  [MINIMUM AVERAGE WEEKLY EARNINGS.] (a) Except as 
 19.27  provided in paragraph (b), average weekly earnings may not be 
 19.28  less than 24 times the normal hourly earnings at the time of 
 19.29  injury. 
 19.30     (b) The weekly temporary disability benefits for a 
 19.31  part-time employee who restricts availability in the labor 
 19.32  market to part-time work and is not employed elsewhere may not 
 19.33  exceed the average weekly wages of the part-time employment. 
 19.34     Subd. 8.  [EMPLOYEES UNDER AGE 27.] If an employee is under 
 19.35  27 years of age, the average weekly earnings on which to compute 
 19.36  the benefits accruing for permanent disability or death shall be 
 20.1   determined on the basis of the earnings that the employee, if 
 20.2   not disabled, probably would earn after attaining the age of 
 20.3   27.  Unless otherwise established, the earnings shall be taken 
 20.4   as equivalent to the amount upon which maximum weekly indemnity 
 20.5   is payable. 
 20.6      Subd. 9.  [AVERAGE ANNUAL EARNINGS.] The average annual 
 20.7   earnings when referred to in this act shall consist of 50 times 
 20.8   the employee's average weekly earnings.  Subject to the maximum 
 20.9   limitation, average annual earnings shall in no case be taken at 
 20.10  less than the actual earnings of the employee in the year 
 20.11  immediately preceding the injury in the kind of employment in 
 20.12  which he worked at the time of injury. 
 20.13     Subd. 10.  [WEEKLY WAGE LOSS.] The weekly wage loss 
 20.14  referred to in this act, except under section 176C.60, 
 20.15  subdivision 3, shall be the percentage of the average weekly 
 20.16  earnings of the injured employee computed according to this 
 20.17  section, as shall fairly represent the proportionate extent of 
 20.18  the impairment of the employee's earning capacity in the 
 20.19  employment in which the employee was working at the time of the 
 20.20  injury, and other suitable employments, to be fixed as of the 
 20.21  time of the injury, but to be determined in view of the nature 
 20.22  and extent of the injury. 
 20.23     Sec. 12.  [176C.12] [NOTICE OF INJURY, EXCEPTION, LACHES.] 
 20.24     No claim for compensation may be maintained unless, within 
 20.25  30 days after the occurrence of the injury or within 30 days 
 20.26  after the employee knew or ought to have known the nature of a 
 20.27  disability and its relation to the employment, actual notice was 
 20.28  received by the employer or by an officer, manager, or 
 20.29  designated representative of an employer.  If no representative 
 20.30  has been designated by posters placed in one or more conspicuous 
 20.31  places, then notice received by any superior is sufficient.  
 20.32  Absence of notice does not bar recovery if it is found that the 
 20.33  employer was not misled by it.  Regardless of whether notice was 
 20.34  received, if no payment of compensation, other than medical 
 20.35  treatment or burial expense, is made, and no application is 
 20.36  filed with the department of labor and industry within two years 
 21.1   from the date of the injury or death, or from the date the 
 21.2   employee or the dependent knew or ought to have known the nature 
 21.3   of the disability and its relation to the employment, the right 
 21.4   to compensation is barred, except that the right to compensation 
 21.5   is not barred if the employer knew or should have known, within 
 21.6   the two-year period, that the employee had sustained the injury 
 21.7   on which the claim is based.  Issuance of notice of a hearing on 
 21.8   the department's own motion has the same effect for the purposes 
 21.9   of this section as the filing of an application.  This section 
 21.10  does not affect any claim barred under section 176C.17, 
 21.11  subdivision 11.  
 21.12     Sec. 13.  [176C.125] [FRAUDULENT CLAIMS REPORTING AND 
 21.13  INVESTIGATION.] 
 21.14     (a) If an insurer or self-insured employer has evidence 
 21.15  that a claim is false or fraudulent in violation of chapter 609 
 21.16  and if the insurer or self-insured employer is satisfied that 
 21.17  reporting the claim to the department will not impede its 
 21.18  ability to defend the claim, the insurer or self-insured 
 21.19  employer shall report the claim to the department.  The 
 21.20  department may require an insurer or self-insured employer to 
 21.21  investigate an allegedly false or fraudulent claim and may 
 21.22  provide the insurer or self-insured employer with any records of 
 21.23  the department relating to that claim.  An insurer or 
 21.24  self-insured employer that investigates a claim under this 
 21.25  section shall report on the results of that investigation to the 
 21.26  department.  If based on the investigation the department has a 
 21.27  reasonable basis to believe that a violation of chapter 609 has 
 21.28  occurred, the department shall refer the results of the 
 21.29  investigation to the district attorney of the county in which 
 21.30  the alleged violation occurred for prosecution. 
 21.31     (b) Annually, the department shall submit a report to the 
 21.32  house labor management relations committee; the senate jobs, 
 21.33  energy, and community development committee; and the governor 
 21.34  detailing, for the previous year, the number of reports under 
 21.35  paragraph (a) that the department received, the number of 
 21.36  referrals for prosecution that the department made, and the 
 22.1   results of those referrals. 
 22.2      Sec. 14.  [176C.13] [EXAMINATION; COMPETENT WITNESSES; 
 22.3   EXCLUSION OF EVIDENCE; AUTOPSY.] 
 22.4      Subdivision 1.  [SUBMISSION TO EXAMINATION.] Except as 
 22.5   provided in subdivision 8, when compensation is claimed by an 
 22.6   employee, the employee shall, upon the written request of the 
 22.7   employee's employer, or workers' compensation insurer, submit to 
 22.8   reasonable examinations by physicians, chiropractors, 
 22.9   psychologists, or podiatrists provided and paid for by the 
 22.10  employer or insurer.  No employee who submits to an examination 
 22.11  under this paragraph is a patient of the examining physician, 
 22.12  chiropractor, psychologist, or podiatrist for any purpose unless 
 22.13  the employee specifically requests treatment from the physician, 
 22.14  chiropractor, psychologist, or podiatrist.  When compensation is 
 22.15  claimed for loss of earning capacity under section 176C.44, 
 22.16  subdivision 2 or 3, the employee shall, on the written request 
 22.17  of the employee's employer or insurer, submit to reasonable 
 22.18  examinations by vocational experts provided and paid for by the 
 22.19  employer or insurer. 
 22.20     Subd. 2.  [EXPENSES AND NOTICE OF EXAMINATION.] An employer 
 22.21  or insurer who requests that an employee submit to reasonable 
 22.22  examination under subdivision 1 shall tender to the employee, 
 22.23  before the examination, all necessary expenses including 
 22.24  transportation expenses.  The employee is entitled to have a 
 22.25  physician, chiropractor, psychologist, or podiatrist, provided 
 22.26  by the employee present at the examination and to request and 
 22.27  receive a copy of all reports of the examination that are 
 22.28  prepared by the examiner.  The employee is also entitled to 
 22.29  provide and have a translator present at the examination if the 
 22.30  employee has difficulty speaking or understanding the English 
 22.31  language.  The employer's or insurer's written request for 
 22.32  examination shall notify the employee of the following: 
 22.33     (1) the proposed date, time, and place of the examination 
 22.34  and the identity of the examining physician, chiropractor, 
 22.35  psychologist, podiatrist, or vocational expert; 
 22.36     (2) the procedure for changing the proposed date, time, and 
 23.1   place of the examination; 
 23.2      (3) the employee's right to have the employee's physician, 
 23.3   chiropractor, psychologist, podiatrist, or vocational expert 
 23.4   present at the examination; 
 23.5      (4) the employee's right to request and receive a copy of 
 23.6   all reports of the examination that are prepared by the 
 23.7   examiner; and 
 23.8      (5) the employee's right to provide a translator to be 
 23.9   present at the examination if the employee has difficulty 
 23.10  speaking or understanding the English language. 
 23.11     Subd. 3.  [REFUSAL TO COOPERATE; CONSEQUENCES.] So long as 
 23.12  the employee, after a written request of the employer or insurer 
 23.13  which complies with subdivision 2, refuses to submit to or in 
 23.14  any way obstructs the examination, the employee's right to begin 
 23.15  or maintain any proceeding for the collection of compensation is 
 23.16  suspended, except as provided in subdivision 8.  If the employee 
 23.17  refuses to submit to the examination after direction by the 
 23.18  department, or an examiner, or in any way obstructs the 
 23.19  examination, the employee's right to the weekly indemnity which 
 23.20  accrues and becomes payable during the period of that refusal or 
 23.21  obstruction, is barred, except as provided in subdivision 8. 
 23.22     Subd. 4.  [REPORTS AND TESTIMONY OF HEALTH CARE PROVIDER.] 
 23.23  Subject to subdivision 5: 
 23.24     (a) A physician, chiropractor, psychologist, podiatrist, or 
 23.25  vocational expert who is present at an examination under 
 23.26  subdivision 1 may be required to testify as to its results. 
 23.27     (b) A physician, chiropractor, psychologist, podiatrist, or 
 23.28  vocational expert who attended a workers' compensation claimant 
 23.29  for any condition or complaint reasonably related to the 
 23.30  condition for which the claimant claims compensation may be 
 23.31  required to testify before the department when it so directs. 
 23.32     (c) Notwithstanding any statutory provisions except 
 23.33  subdivision 5, a physician, chiropractor, psychologist, 
 23.34  podiatrist, or vocational expert attending a workers' 
 23.35  compensation claimant for a condition or complaint reasonably 
 23.36  related to the condition for which the claimant claims 
 24.1   compensation may furnish to the employee, employer, workers' 
 24.2   compensation insurer, or the department information and reports 
 24.3   relative to a compensation claim. 
 24.4      (d) The testimony of a physician, chiropractor, 
 24.5   psychologist, or podiatrist who is licensed to practice or 
 24.6   practices in any state and the testimony of any vocational 
 24.7   expert may be received in evidence in compensation proceedings. 
 24.8      Subd. 5.  [HEALTH CARE FEES; TESTIMONY.] No person may 
 24.9   testify on the issue of the reasonableness of the fees of a 
 24.10  licensed health care professional unless the person is licensed 
 24.11  to practice the same health care profession as the professional 
 24.12  whose fees are the subject of the testimony.  This subdivision 
 24.13  does not apply to the fee dispute resolution process under 
 24.14  section 176C.16, subdivision 2.  If an employee claims 
 24.15  compensation under section 176C.81, the department may require 
 24.16  the employee to submit to physical or vocational examinations 
 24.17  under this section. 
 24.18     Subd. 6.  [DOCTOR-PATIENT PRIVILEGE WAIVER.] An employee 
 24.19  who reports an injury alleged to be work-related or files an 
 24.20  application for hearing waives any physician-patient, 
 24.21  psychologist-patient, or chiropractor-patient privilege with 
 24.22  respect to any condition or complaint reasonably related to the 
 24.23  condition for which the employee claims compensation.  Any 
 24.24  physician, chiropractor, podiatrist, hospital, or health care 
 24.25  provider shall, within a reasonable time after written request 
 24.26  by the employee, employer, workers' compensation insurer, or 
 24.27  department or its representative, provide that person with any 
 24.28  information or written material reasonably related to any injury 
 24.29  for which the employee claims compensation. 
 24.30     Subd. 6a.  [COSTS.] A physician, chiropractor, 
 24.31  psychologist, podiatrist, hospital, or health service provider 
 24.32  shall furnish a legible, certified duplicate of the written 
 24.33  material requested under subdivision 6 upon payment of the 
 24.34  greater of the actual costs not to exceed 45 cents per page or 
 24.35  $7.50 per request plus the actual costs of postage.  Any person 
 24.36  who refuses to provide certified duplicates of written material 
 25.1   in the person's custody that is requested under subdivision 6 
 25.2   shall be liable for reasonable and necessary costs and 
 25.3   reasonable attorney fees incurred in enforcing the requester's 
 25.4   right to the duplicates under subdivision 6. 
 25.5      Subd. 7.  [MEDICAL DISPUTE; THIRD PARTY OPINION.] If two or 
 25.6   more physicians, chiropractors, psychologists, or podiatrists 
 25.7   disagree as to the extent of an injured employee's temporary 
 25.8   disability, the end of an employee's healing period, or an 
 25.9   employee's ability to return to work at suitable available 
 25.10  employment, or the necessity for further treatment or for a 
 25.11  particular type of treatment, the department may appoint another 
 25.12  physician, chiropractor, psychologist, or podiatrist to examine 
 25.13  the employee and render an opinion as soon as possible.  The 
 25.14  department shall promptly notify the parties of this 
 25.15  appointment.  If the employee has not returned to work, payment 
 25.16  for temporary disability shall continue until the department 
 25.17  receives the opinion.  The employer or its insurance carrier or 
 25.18  both shall pay for the examination and opinion.  The employer or 
 25.19  insurance carrier or both shall receive appropriate credit for 
 25.20  any overpayment to the employee determined by the department 
 25.21  after receipt of the opinion. 
 25.22     Subd. 8.  [DISTANT EXAM; EXCEPTIONS.] The rights of 
 25.23  employees to begin or maintain proceedings to collect 
 25.24  compensation and to receive weekly indemnities which accrue and 
 25.25  become payable shall not be suspended or barred under 
 25.26  subdivision 3 when an employee refuses to submit to a physical 
 25.27  examination, upon the request of the employer or workers' 
 25.28  compensation insurer or at the direction of the department or 
 25.29  examiner, which would require the employee to travel a distance 
 25.30  of 100 miles or more from the employee's place of residence, 
 25.31  unless the employee has claimed compensation for treatment from 
 25.32  a practitioner whose office is located 100 miles or more from 
 25.33  the employee's place of residence, or the department or examiner 
 25.34  determines that any other circumstances warrant the 
 25.35  examination.  If the employee has claimed compensation for 
 25.36  treatment from a practitioner whose office is located 100 miles 
 26.1   or more from the employee's place of residence, the employer or 
 26.2   insurer may request or the department or an examiner may direct, 
 26.3   the employee to submit to a physical examination in the area 
 26.4   where the employee's treatment practitioner is located. 
 26.5      Subd. 9.  [AUTOPSY EVIDENCE.] The department may refuse to 
 26.6   receive testimony as to conditions determined from an autopsy if 
 26.7   it appears that the party offering the testimony had procured 
 26.8   the autopsy and failed to make reasonable effort to notify at 
 26.9   least one party in adverse interest or the department at least 
 26.10  12 hours before the autopsy of the time and place it would be 
 26.11  performed, or that the autopsy was performed by or at the 
 26.12  direction of the coroner or medical examiner or at the direction 
 26.13  of the county attorney for purposes not authorized by statute.  
 26.14  The department may withhold findings until an autopsy is held in 
 26.15  accordance with its directions. 
 26.16     Sec. 15.  [176C.14] [JURISDICTION OF DEPARTMENT; ADVISORY 
 26.17  COMMITTEE.] 
 26.18     Subdivision 1.  [ADMINISTRATION.] This act shall be 
 26.19  administered by the department. 
 26.20     Subd. 2.  [ADVISORY COUNCIL RECOMMENDATIONS.] The council 
 26.21  on workers' compensation shall advise the department in carrying 
 26.22  out the purposes of this act.  The council shall submit its 
 26.23  recommendations with respect to amendments to this act to each 
 26.24  regular session of the legislature and report its views upon any 
 26.25  pending bill relating to this act to the proper legislative 
 26.26  committee.  At the request of the chairs of the senate and house 
 26.27  committees on labor, the department shall schedule a meeting of 
 26.28  the council with the members of the committees to review and 
 26.29  discuss matters of legislative concern arising under this act. 
 26.30     Sec. 16.  [176C.15] [RULES OF PROCEDURE; TRANSCRIPTS.] 
 26.31     Subject to this act, the department may adopt its own rules 
 26.32  of procedure and change them from time to time. 
 26.33     The department may provide by rule the conditions under 
 26.34  which transcripts of testimony and proceedings shall be 
 26.35  furnished. 
 26.36     All testimony at any hearing held under this act shall be 
 27.1   taken down by a stenographic reporter except that in the case of 
 27.2   an emergency as determined by the examiner conducting the 
 27.3   hearing, testimony may be recorded by a recording machine. 
 27.4      Sec. 17.  [176C.16] [SUBMISSION OF DISPUTES; CONTRIBUTIONS 
 27.5   BY EMPLOYEES.] 
 27.6      Subdivision 1.  [CONTROVERSIES; SETTLEMENTS; DEPARTMENT 
 27.7   JURISDICTION.] Any controversy concerning compensation, or a 
 27.8   violation of subdivision 3, including controversies in which the 
 27.9   state may be a party, shall be submitted to the department in 
 27.10  the manner and with the effect provided in this act.  Every 
 27.11  compromise of a claim for compensation may be reviewed and set 
 27.12  aside, modified, or confirmed by the department within one year 
 27.13  from the date the compromise is filed with the department, or 
 27.14  from the date an award has been entered, based on the 
 27.15  compromise, or the department may take that action upon 
 27.16  application made within one year.  Unless the word "compromise" 
 27.17  appears in a stipulation of settlement, the settlement shall not 
 27.18  be deemed a compromise, and further claim is not barred except 
 27.19  as provided in section 176C.17, subdivision 12, regardless of 
 27.20  whether an award is made.  The employer, insurer, or a dependent 
 27.21  under section 176C.51, subdivision 5, shall have equal rights 
 27.22  with the employee to have review of a compromise or any other 
 27.23  stipulation of settlement.  Upon petition filed with the 
 27.24  department, the department may set aside the award or otherwise 
 27.25  determine the rights of the parties. 
 27.26     Subd. 2.  [DISPUTE RESOLUTION; FEES.] (a) The department 
 27.27  has jurisdiction to resolve a dispute between a health service 
 27.28  provider and an insurer or self-insured employer over the 
 27.29  reasonableness of a fee charged by the health service provider 
 27.30  for health services provided to an injured employee who claims 
 27.31  benefits under this chapter.  The department shall deny payment 
 27.32  of a health service fee that the department determines under 
 27.33  this subdivision to be unreasonable.  A health service provider 
 27.34  and an insurer or self-insured employer that are parties to a 
 27.35  fee dispute under this subdivision are bound by the department's 
 27.36  determination on the reasonableness of the disputed fee, unless 
 28.1   that determination is set aside on judicial review under 
 28.2   paragraph (f). 
 28.3      (b) An insurer or self-insured employer that disputes the 
 28.4   reasonableness of a fee charged by a health service provider 
 28.5   shall provide reasonable notice to the health service provider 
 28.6   that the fee is being disputed.  After receiving reasonable 
 28.7   notice that a health service fee is being disputed, a health 
 28.8   service provider may not collect the disputed fee from, or bring 
 28.9   an action for collection of the disputed fee against, the 
 28.10  employee who received the services for which the fee was charged.
 28.11     (c) After a fee dispute is submitted to the department, the 
 28.12  insurer or self-insured employer that is a party to the dispute 
 28.13  shall provide to the department information on that fee and 
 28.14  information on fees charged by other health service providers 
 28.15  for comparable services.  The insurer or self-insured employer 
 28.16  shall obtain the information on comparable fees from a database 
 28.17  that is certified by the department under paragraph (h).  Except 
 28.18  as provided in paragraph (e), if the insurer or self-insured 
 28.19  employer does not provide the information required under this 
 28.20  paragraph, the department shall determine that the disputed fee 
 28.21  is reasonable and order that it be paid.  If the insurer or 
 28.22  self-insured employer provides the information required under 
 28.23  this paragraph, the department shall use that information to 
 28.24  determine the reasonableness of the disputed fee. 
 28.25     (d) For fee disputes that are submitted to the department 
 28.26  before July 1, 1996, the department shall analyze the 
 28.27  information provided to the department under paragraph (c) 
 28.28  according to the criteria provided in this paragraph to 
 28.29  determine the reasonableness of the disputed fee.  The 
 28.30  department shall determine that a disputed fee is reasonable and 
 28.31  order that the disputed fee be paid if that fee is at or below 
 28.32  the mean fee for the health service procedure for which the 
 28.33  disputed fee was charged, plus 1.5 standard deviations from that 
 28.34  mean, as shown by data from a database that is certified by the 
 28.35  department under paragraph (h).  The department shall determine 
 28.36  that a disputed fee is unreasonable and order that a reasonable 
 29.1   fee be paid if the disputed fee is above the mean fee for the 
 29.2   health service procedure for which the disputed fee was charged, 
 29.3   plus 1.5 standard deviations from that mean, as shown by data 
 29.4   from a database that is certified by the department under 
 29.5   paragraph (h), unless the health service provider proves to the 
 29.6   satisfaction of the department that a higher fee is justified 
 29.7   because the service provided in the disputed case was more 
 29.8   difficult or more complicated to provide than in the usual case. 
 29.9      (e) If an insurer or self-insured employer that disputes 
 29.10  the reasonableness of a fee charged by a health service provider 
 29.11  cannot provide information on fees charged by other health 
 29.12  service providers for comparable services because the database 
 29.13  to which the insurer or self-insured employer subscribes is not 
 29.14  able to provide accurate information for the health service 
 29.15  procedure at issue, the department may use any other information 
 29.16  that the department considers to be reliable and relevant to the 
 29.17  disputed fee to determine the reasonableness of the disputed 
 29.18  fee.  Notwithstanding subdivision 1, the department may use only 
 29.19  a hospital radiology database that has been certified by the 
 29.20  department under paragraph (h) to determine the reasonableness 
 29.21  of a hospital fee for radiology services.  
 29.22     (f) A health service provider, insurer, or self-insured 
 29.23  employer that is aggrieved by a determination of the department 
 29.24  under this subdivision may seek judicial review of that 
 29.25  determination in the same manner that compensation claims are 
 29.26  reviewed under section 176C.23. 
 29.27     (g) Section 176C.13, subdivision 5, does not apply to the 
 29.28  fee dispute resolution process under this subdivision.  
 29.29     (h) The department shall promulgate rules establishing 
 29.30  procedures and requirements for the fee dispute resolution 
 29.31  process under this subdivision, including rules specifying the 
 29.32  standards that health service fee databases must meet for 
 29.33  certification under this paragraph.  Using those standards, the 
 29.34  department shall certify databases of the health service fees 
 29.35  that various health service providers charge.  In certifying 
 29.36  databases under this paragraph, the department shall certify at 
 30.1   least one database of hospital fees for radiology services, 
 30.2   including diagnostic and interventional radiology, diagnostic 
 30.3   ultrasound, and nuclear medicine. 
 30.4      Subd. 2a.  [DISPUTE RESOLUTION; TREATMENT.] (a) The 
 30.5   department has jurisdiction to resolve a dispute between a 
 30.6   health service provider and an insurer or self-insured employer 
 30.7   over the necessity of treatment provided for an injured employee 
 30.8   who claims benefits under this act.  The department shall deny 
 30.9   payment for any treatment that the department determines under 
 30.10  this subdivision to be unnecessary.  A health service provider 
 30.11  and an insurer or self-insured employer that are parties to a 
 30.12  dispute under this subdivision over the necessity of treatment 
 30.13  are bound by the department's determination on the necessity of 
 30.14  that treatment, unless that determination is set aside on 
 30.15  judicial review under paragraph (e). 
 30.16     (b) An insurer or self-insured employer that disputes the 
 30.17  necessity of treatment provided by a health service provider 
 30.18  shall provide reasonable notice to the health service provider 
 30.19  that the necessity of that treatment is being disputed.  After 
 30.20  receiving reasonable notice that the necessity of treatment is 
 30.21  being disputed, a health service provider may not collect a fee 
 30.22  for that disputed treatment from, or bring an action for 
 30.23  collection of the fee for that disputed treatment against, the 
 30.24  employee who received the treatment. 
 30.25     (c) Before determining the necessity of treatment provided 
 30.26  for an injured employee who claims benefits under this chapter, 
 30.27  the department shall obtain a written opinion on the necessity 
 30.28  of the treatment in dispute from an expert selected by the 
 30.29  department.  To qualify as an expert, a person must be licensed 
 30.30  to practice the same health care profession as the individual 
 30.31  health service provider whose treatment is under review and must 
 30.32  either be performing services for an impartial health care 
 30.33  services review organization or be a member of an independent 
 30.34  panel of experts established by the department under paragraph 
 30.35  (f).  The department shall adopt the written opinion of the 
 30.36  expert as the department's determination on the issues covered 
 31.1   in the written opinion, unless the health service provider or 
 31.2   the insurer or self-insured employer present clear and 
 31.3   convincing written evidence that the expert's opinion is in 
 31.4   error. 
 31.5      (d) The department may charge a party to a dispute over the 
 31.6   necessity of treatment provided for an injured employee who 
 31.7   claims benefits under this act for the full cost of obtaining 
 31.8   the written opinion of the expert under paragraph (c).  The 
 31.9   department shall charge the insurer or self-insured employer for 
 31.10  the full cost of obtaining the written opinion of the expert for 
 31.11  the first dispute that a particular individual health service 
 31.12  provider is involved in, unless the department determines that 
 31.13  the individual health service provider's position in the dispute 
 31.14  is frivolous or based on fraudulent representations.  In a 
 31.15  subsequent dispute involving the same individual health service 
 31.16  provider, the department shall charge the losing party to the 
 31.17  dispute for the full cost of obtaining the written opinion of 
 31.18  the expert. 
 31.19     (e) A health service provider, insurer, or self-insured 
 31.20  employer that is aggrieved by a determination of the department 
 31.21  under this subdivision may seek judicial review of that 
 31.22  determination in the same manner that compensation claims are 
 31.23  reviewed under section 176C.23. 
 31.24     (f) The department may contract with an impartial health 
 31.25  care services review organization to provide the expert opinions 
 31.26  required under paragraph (c), or establish a panel of experts to 
 31.27  provide those opinions, or both.  If the department establishes 
 31.28  a panel of experts to provide the expert opinions required under 
 31.29  paragraph (c), the department may pay the members of that panel 
 31.30  a reasonable fee, plus actual and necessary expenses, for their 
 31.31  services. 
 31.32     (g) The department shall promulgate rules establishing 
 31.33  procedures and requirements for the necessity of treatment 
 31.34  dispute resolution process under this subdivision, including 
 31.35  rules setting the fees under paragraph (f). 
 31.36     Subd. 3.  [PAYMENTS BY EMPLOYEE PROHIBITED.] No employer 
 32.1   subject to this act may solicit, receive, or collect any money 
 32.2   from an employee or any other person or make any deduction from 
 32.3   their wages, either directly or indirectly, for the purpose of 
 32.4   discharging any liability under this act or recovering premiums 
 32.5   paid on a contract described in section 176C.31, subdivision 1; 
 32.6   nor may the employer sell to an employee or other person, or 
 32.7   solicit or require the employee or other person to purchase, 
 32.8   medical, chiropractic, podiatric, psychological, or hospital 
 32.9   tickets or contracts for medical, surgical, hospital, or other 
 32.10  health care treatment which is required to be furnished by that 
 32.11  employer. 
 32.12     Subd. 4.  [PENALTIES.] The department has jurisdiction to 
 32.13  pass on any question arising out of subdivision 3 and has 
 32.14  jurisdiction to order the employer to reimburse an employee or 
 32.15  other person for any sum deducted from wages or paid by the 
 32.16  employee in violation of that subdivision.  In addition, any 
 32.17  employer violating subdivision 3 shall be subject to the 
 32.18  penalties provided in section 176C.281, subdivision 5, and be 
 32.19  liable to an injured employee for the reasonable value of the 
 32.20  necessary services rendered to that employee pursuant to any 
 32.21  arrangement made in violation of subdivision 3 without regard to 
 32.22  that employee's actual disbursements for the same. 
 32.23     Subd. 5.  [WAIVER.] No agreement by an employee to waive 
 32.24  the right to compensation is valid. 
 32.25     Sec. 18.  [176C.17] [PROCEDURE; NOTICE OF HEARING; 
 32.26  WITNESSES; CONTEMPT; TESTIMONY; MEDICAL EXAMINATION.] 
 32.27     Subdivision 1.  [NOTICE; SERVICE; HEARING.] Upon the filing 
 32.28  with the department by any party in interest of an application 
 32.29  in writing stating the general nature of a claim as to which a 
 32.30  dispute or controversy may have arisen, it shall mail a copy of 
 32.31  the application to all other parties in interest.  The insurance 
 32.32  carrier shall be deemed a party in interest.  The department may 
 32.33  bring in additional parties by service of a copy of the 
 32.34  application.  The department shall cause notice of hearing on 
 32.35  the application to be given to each party interested, by service 
 32.36  of notice on the interested party personally or by mailing a 
 33.1   copy to the interested party's last-known address at least ten 
 33.2   days before the hearing.  If a party in interest is located 
 33.3   without the state, and has no post office address within the 
 33.4   state, the copy of the application and copies of all notices 
 33.5   shall be filed in the office of the secretary of state and also 
 33.6   be sent by registered or certified mail to the last-known post 
 33.7   office address of the party.  Such a filing and mailing shall 
 33.8   constitute sufficient service, with the same effect as if served 
 33.9   upon a party located within this state.  The hearing may be 
 33.10  adjourned in the discretion of the department, and hearings may 
 33.11  be held at places the department designates, within or without 
 33.12  the state.  The department may also arrange to have a hearing 
 33.13  held by the commission, officer, or tribunal having authority to 
 33.14  hear cases arising under the workers' compensation law of 
 33.15  another state, of the District of Columbia, or of a territory of 
 33.16  the United States, the testimony and proceedings at the hearing 
 33.17  to be reported to the department and to be part of the record in 
 33.18  the case.  Any evidence so taken shall be subject to rebuttal 
 33.19  upon final hearing before the department. 
 33.20     Subd. 2.  [APPEARANCE BEFORE EXAMINER; DISCOVERY 
 33.21  ORDERS.] In any dispute or controversy pending before the 
 33.22  department, the department may direct the parties to appear 
 33.23  before an examiner for a conference to consider the 
 33.24  clarification of issues, the joining of additional parties, the 
 33.25  necessity or desirability of amendments to the pleadings, the 
 33.26  obtaining of admissions of fact or of documents, records, 
 33.27  reports and bills which may avoid unnecessary proof, and other 
 33.28  matters as may aid in disposition of the dispute or 
 33.29  controversy.  After this conference the department may issue an 
 33.30  order requiring disclosure or exchange of any information or 
 33.31  written material which it considers material to the timely and 
 33.32  orderly disposition of the dispute or controversy.  If a party 
 33.33  fails to disclose or exchange within the time stated in the 
 33.34  order, the department may issue an order dismissing the claim 
 33.35  without prejudice or excluding evidence or testimony relating to 
 33.36  the information or written material.  The department shall 
 34.1   provide each party with a copy of any order. 
 34.2      Subd. 3.  [APPEARANCE BY REPRESENTATIVE; ATTORNEY.] Either 
 34.3   party shall have the right to be present at any hearing, in 
 34.4   person or by attorney, or any other agent, and to present 
 34.5   testimony that is pertinent to the controversy before the 
 34.6   department.  No person, firm, or corporation other than an 
 34.7   attorney at law, licensed to practice law in the state, may 
 34.8   appear on behalf of a party in interest before the department or 
 34.9   a member or employee of the department assigned to conduct a 
 34.10  hearing, investigation, or inquiry relative to a claim for 
 34.11  compensation or benefits under this act, unless the person is 18 
 34.12  years of age or older, does not have an arrest or conviction 
 34.13  record, is otherwise qualified, and has obtained from the 
 34.14  department a license with authorization to appear in matters or 
 34.15  proceedings before the department.  The license shall be issued 
 34.16  by the department under rules to be adopted by the department.  
 34.17  A current list of persons to whom licenses have been issued 
 34.18  shall be maintained in the office of the department.  A license 
 34.19  may be suspended or revoked by the department for fraud or 
 34.20  serious misconduct on the part of an agent.  Before suspending 
 34.21  or revoking the license of an agent, the department shall give 
 34.22  notice in writing to the agent of the charges of fraud or 
 34.23  misconduct, and give the agent full opportunity to be heard in 
 34.24  relation to them.  The license and certificate of authority 
 34.25  shall, unless otherwise suspended or revoked, be in force from 
 34.26  the date of issuance until the June 30 following the date of 
 34.27  issuance and may be renewed by the department from time to 
 34.28  time.  Each renewed license shall expire on the June 30 
 34.29  following its issuance.  
 34.30     Subd. 4.  [MEDICAL REPORTS.] The contents of verified 
 34.31  medical and surgical reports by physicians, podiatrists, 
 34.32  surgeons, dentists, psychologists, and chiropractors licensed in 
 34.33  and practicing in this state and of verified reports by experts 
 34.34  concerning loss of earning capacity presented by a party for 
 34.35  compensation constitute prima facie evidence as to the matter 
 34.36  contained in them, subject to any rules and limitations the 
 35.1   department prescribes.  Verified reports of physicians, 
 35.2   podiatrists, surgeons, dentists, psychologists, and 
 35.3   chiropractors, wherever licensed and practicing, who have 
 35.4   examined or treated the claimant, and of experts, if the 
 35.5   practitioner or expert consents to cross-examination also 
 35.6   constitute prima facie evidence as to the matter contained in 
 35.7   them.  Verified reports of physicians, podiatrists, surgeons, 
 35.8   psychologists, and chiropractors are admissible as evidence of 
 35.9   the diagnosis, necessity of the treatment, and cause and extent 
 35.10  of the disability.  Verified reports by doctors of dentistry are 
 35.11  admissible as evidence of the diagnosis and necessity for 
 35.12  treatment but not of disability.  Physicians, podiatrists, 
 35.13  surgeons, dentists, psychologists, and chiropractors licensed in 
 35.14  and practicing in this state and experts may certify instead of 
 35.15  verify the reports.  That certification is equivalent to 
 35.16  verification.  Any physician, podiatrist, surgeon, dentist, 
 35.17  psychologist, chiropractor, or expert who knowingly makes a 
 35.18  false statement of fact or opinion in a verified or certified 
 35.19  report violates section 609.48 and is subject to fines, 
 35.20  imprisonment, or both.  The record of a hospital or sanitarium 
 35.21  in this state operated by a department or agency of the federal 
 35.22  or state government or by a municipality, or of another hospital 
 35.23  or sanitarium in this state which is satisfactory to the 
 35.24  department, established by certificate, affidavit, or testimony 
 35.25  of the supervising officer or other person having charge of the 
 35.26  record, or of a physician, podiatrist, surgeon, dentist, 
 35.27  psychologist, or chiropractor to be the record of the patient, 
 35.28  and made in the regular course of examination or treatment of 
 35.29  the patient, constitutes prima facie evidence in any workers' 
 35.30  compensation proceeding as to the matter contained in it, to the 
 35.31  extent that it is otherwise competent and relevant.  The 
 35.32  department may, by rule, establish the qualifications of and the 
 35.33  form used for verified reports submitted by experts who provide 
 35.34  information concerning loss of earning capacity.  The department 
 35.35  may not admit into evidence a verified report of a practitioner 
 35.36  or other expert that was not filed with the department and all 
 36.1   parties in interest at least 15 days before the date of the 
 36.2   hearing, unless the department is satisfied that there is good 
 36.3   cause for the failure to file the report. 
 36.4      Subd. 5.  [DEPARTMENT INVESTIGATION OR INSPECTION.] The 
 36.5   department may, with or without notice to either party, cause 
 36.6   testimony to be taken, or an inspection of the premises where 
 36.7   the injury occurred to be made, or the time books and payrolls 
 36.8   of the employer to be examined by an examiner, and may direct an 
 36.9   employee claiming compensation to be examined by a physician, 
 36.10  chiropractor, psychologist, or podiatrist.  The testimony so 
 36.11  taken, and the results of such an inspection or examination, 
 36.12  shall be reported to the department for its consideration upon 
 36.13  final hearing.  All ex parte testimony taken by the department 
 36.14  shall be reduced to writing and either party shall have 
 36.15  opportunity to rebut it on final hearing. 
 36.16     Subd. 6.  [INDEPENDENT PHYSICAL EXAMINATION OR 
 36.17  AUTOPSY.] Whenever the testimony presented at a hearing 
 36.18  indicates a dispute, or is such as to create doubt as to the 
 36.19  extent or cause of disability or death, the department may 
 36.20  direct that the injured employee be examined or an autopsy be 
 36.21  performed, or an opinion of a physician, chiropractor, 
 36.22  psychologist, or podiatrist be obtained without examination or 
 36.23  autopsy, by an impartial, competent physician, chiropractor, 
 36.24  psychologist, or podiatrist designated by the department who is 
 36.25  not under contract with or regularly employed by a compensation 
 36.26  insurance carrier or self-insured employer.  The expense of the 
 36.27  examination shall be paid by the employer or if the employer is 
 36.28  uninsured, from the special compensation fund. 
 36.29     The report of the examination shall be transmitted in 
 36.30  writing to the department and a copy furnished by the department 
 36.31  to each party, who shall have an opportunity to rebut the report 
 36.32  on further hearing. 
 36.33     Subd. 7.  [INDUSTRIAL SAFETY SPECIALIST REPORT.] The 
 36.34  contents of certified reports of investigation, made by 
 36.35  industrial safety specialists who are employed by the department 
 36.36  and available for cross-examination, served upon the parties 15 
 37.1   days prior to hearing, shall constitute prima facie evidence as 
 37.2   to matter contained in them. 
 37.3      Subd. 8.  [FAILURE TO MAKE PAYMENT; HEARING.] If the 
 37.4   department has reason to believe that the payment of 
 37.5   compensation has not been made, it may on its own motion give 
 37.6   notice to the parties, in the manner provided for the service of 
 37.7   an application, of a time and place when a hearing will be had 
 37.8   for the purpose of determining the facts.  The notice shall 
 37.9   contain a statement of the matter to be considered.  Thereafter 
 37.10  all other provisions governing proceedings on application shall 
 37.11  attach insofar as the same may be applicable. 
 37.12     Subd. 9.  [SUBPOENA.] A party, including the department, 
 37.13  may require a person to produce books, papers, and records at 
 37.14  the hearing by personal service of a subpoena upon the person 
 37.15  along with a tender of witness fees.  Except as provided in 
 37.16  subdivision 9a, the subpoena shall be on a form provided by the 
 37.17  department and give the name and address of the party requesting 
 37.18  the subpoena. 
 37.19     Subd. 9a.  [ATTORNEY SUBPOENA.] A party's attorney of 
 37.20  record may issue a subpoena to compel the attendance of a 
 37.21  witness or the production of evidence.  A subpoena issued by an 
 37.22  attorney must be in substantially the same form and must be 
 37.23  served in the same manner as in a civil action.  The attorney 
 37.24  shall, at the time if issuance, send a copy of the subpoena to 
 37.25  the appeal tribunal or other representative of the department 
 37.26  responsible for conducting the proceeding. 
 37.27     Subd. 10.  [FAILURE TO APPEAR OR PRODUCE RECORDS.] A person 
 37.28  who willfully and unlawfully fails or neglects to appear or to 
 37.29  testify or to produce books, papers, and records as required, 
 37.30  shall be fined not less than $25 nor more than $100, or 
 37.31  imprisoned not longer than 30 days.  Each day a person fails or 
 37.32  neglects constitutes a separate offense. 
 37.33     Subd. 11.  [STATUTE OF LIMITATIONS.] The right of an 
 37.34  employee, the employee's legal representative, or a dependent to 
 37.35  proceed under this section shall not extend beyond 12 years from 
 37.36  the date of the injury or death or from the date that 
 38.1   compensation, other than treatment or burial expenses, was last 
 38.2   paid, or would have been last payable if no advancement were 
 38.3   made, whichever date is latest.  In the case of occupational 
 38.4   disease there shall be no statute of limitations, except that 
 38.5   benefits or treatment expense becoming due after 12 years from 
 38.6   the date of injury or death or last payment of compensation 
 38.7   shall be paid from the work injury supplemental benefit fund 
 38.8   under section 176C.65 and in the manner provided in section 
 38.9   176C.66.  Payment of wages by the employer during disability or 
 38.10  absence from work to obtain treatment is payment of compensation 
 38.11  for the purpose of this section if the employer knew of the 
 38.12  employee's condition and its alleged relation to the employment. 
 38.13     Subd. 12.  [LIMITATIONS; EXCEPTION FOR STATE ACTION.] This 
 38.14  section does not limit the time within which the state may bring 
 38.15  an action to recover the amounts specified in sections 176C.49, 
 38.16  subdivision 5, and 176C.59.  
 38.17     Subd. 13.  [STATUTE OF LIMITATION; MINORS.] If an employee 
 38.18  or dependent is, at the time of injury, or at the time the right 
 38.19  accrues, under 18 years of age, the limitations of time within 
 38.20  which the employee may file application or proceed under this 
 38.21  act, if they would otherwise expire sooner, shall be extended to 
 38.22  one year after the employee attains the age of 18 years.  If, 
 38.23  within any part of the last year of such a period of limitation, 
 38.24  an employee, the employee's personal representative, or 
 38.25  surviving dependent is insane or on active duty in the armed 
 38.26  forces of the United States the period of limitation shall be 
 38.27  extended to two years after the date that the limitation would 
 38.28  otherwise expire.  The provision of this subdivision with 
 38.29  respect to persons on active duty in the armed forces of the 
 38.30  United States applies only if no applicable federal statute is 
 38.31  in effect. 
 38.32     Subd. 14.  [LOSS OF EARNING CAPACITY TESTIMONY.] (a) Except 
 38.33  as provided in paragraph (b), in a claim under section 176C.44, 
 38.34  subdivisions 2 and 3, testimony or verified reports of expert 
 38.35  witnesses on loss of earning capacity may be received in 
 38.36  evidence and considered with all other evidence to decide on an 
 39.1   employee's actual loss of earning capacity. 
 39.2      (b) Except as provided in paragraph (c), the department 
 39.3   shall exclude from evidence testimony or verified reports from 
 39.4   expert witnesses under paragraph (a) offered by the party that 
 39.5   raises the issue of loss of earning capacity if that party 
 39.6   failed to notify the department and the other parties of 
 39.7   interest, at least 60 days before the date of the hearing, of 
 39.8   the party's intent to provide the testimony or reports and of 
 39.9   the names of the expert witnesses involved.  Except as provided 
 39.10  in paragraph (c), the department shall exclude from evidence 
 39.11  testimony or verified reports from expert witnesses under 
 39.12  paragraph (a) offered by a party of interest in response to the 
 39.13  party that raises the issue of loss of earning capacity if the 
 39.14  responding party failed to notify the department and the other 
 39.15  parties of interest, at least 45 days before the date of the 
 39.16  hearing, of the party's intent to provide the testimony or 
 39.17  reports and of the names of the expert witnesses involved. 
 39.18     (c) Notwithstanding the notice deadlines provided in 
 39.19  paragraph (b), the department may receive in evidence testimony 
 39.20  or verified reports from expert witnesses under paragraph (a) 
 39.21  when the applicable notice deadline under paragraph (b) is not 
 39.22  met if good cause is shown for the delay in providing the notice 
 39.23  required under paragraph (b) and if no party is prejudiced by 
 39.24  the delay. 
 39.25     Subd. 15.  [MEDICAL EXPENSE STATEMENT.] Unless otherwise 
 39.26  agreed to by all parties, an injured employee shall file with 
 39.27  the department and serve on all parties at least 15 days before 
 39.28  the date of the hearing an itemized statement of all medical 
 39.29  expenses and incidental compensation under section 176C.42 
 39.30  claimed by the injured employee.  The itemized statement shall 
 39.31  include, if applicable, information relating to any travel 
 39.32  expenses incurred by the injured employee in obtaining treatment 
 39.33  including the injured employee's destination, number of trips, 
 39.34  round trip mileage, and meal and lodging expenses.  The 
 39.35  department may not admit into evidence any information relating 
 39.36  to medical expenses and incidental compensation under section 
 40.1   176C.42 claimed by an injured employee if the injured employee 
 40.2   failed to file with the department and serve on all parties at 
 40.3   least 15 days before the date of the hearing an itemized 
 40.4   statement of the medical expenses and incidental compensation 
 40.5   under section 176C.42 claimed by the injured employee, unless 
 40.6   the department is satisfied that there is good cause for the 
 40.7   failure to file and serve the itemized statement. 
 40.8      Sec. 19.  [176C.175] [APPORTIONMENT OF LIABILITY.] 
 40.9      (a) If it is established at the hearing that two or more 
 40.10  accidental injuries, for each of which a party to the 
 40.11  proceedings is liable under this act, have each contributed to a 
 40.12  physical or mental condition for which benefits would be 
 40.13  otherwise due, liability for the benefits shall be apportioned 
 40.14  according to the proof of the relative contribution to 
 40.15  disability resulting from the injury. 
 40.16     (b) If after a hearing or a prehearing conference the 
 40.17  department determines that an injured employee is entitled to 
 40.18  compensation but that there remains in dispute only the issue of 
 40.19  which of two or more parties is liable for that compensation, 
 40.20  the department may order one or more parties to pay compensation 
 40.21  in an amount, time, and manner as determined by the department.  
 40.22  If the department later determines that another party is liable 
 40.23  for compensation, the department shall order that other party to 
 40.24  reimburse any party that was ordered to pay compensation under 
 40.25  this section. 
 40.26     Sec. 20.  [176C.18] [FINDINGS, ORDERS, AND AWARDS.] 
 40.27     Subdivision 1.  [HEARING NOT REQUIRED.] All parties shall 
 40.28  be afforded opportunity for full, fair, public hearing after 
 40.29  reasonable notice, but disposition of application may be made by 
 40.30  compromise, stipulation, agreement, or default without hearing. 
 40.31     Subd. 2.  [FINDINGS AND ORDER.] Within 90 days after the 
 40.32  final hearing and close of the record, the department shall make 
 40.33  and file its findings upon the ultimate facts involved in the 
 40.34  controversy, and its order, which shall state its determination 
 40.35  as to the rights of the parties.  Pending the final 
 40.36  determination of a controversy, the department may in its 
 41.1   discretion after any hearing make interlocutory findings, 
 41.2   orders, and awards which may be enforced in the same manner as 
 41.3   final awards.  The department may include in its final award, as 
 41.4   a penalty for noncompliance with an interlocutory order or 
 41.5   award, if it finds that noncompliance was not in good faith, not 
 41.6   exceeding 25 percent of each amount which shall not have been 
 41.7   paid as directed.  If there is a finding that the employee is in 
 41.8   fact suffering from an occupational disease caused by the 
 41.9   employment of the employer against whom the application is 
 41.10  filed, a final award dismissing the application upon the ground 
 41.11  that the applicant has suffered no disability from the disease 
 41.12  shall not bar any claim the applicant may thereafter have for 
 41.13  disability sustained after the date of the award. 
 41.14     Subd. 3.  [AWARD OF PENALTY.] The department may include a 
 41.15  penalty in an award to an employee if it determines that the 
 41.16  employer's or insurance carrier's suspension of, termination of, 
 41.17  or failure to make payments or failure to report injury resulted 
 41.18  from malice or bad faith.  This penalty is the exclusive remedy 
 41.19  against an employer or insurance carrier for malice or bad 
 41.20  faith.  The department may award an amount which it considers 
 41.21  just, not to exceed the lesser of 200 percent of total 
 41.22  compensation due or $15,000.  The department may assess the 
 41.23  penalty against the employer, the insurance carrier, or both.  
 41.24  Neither the employer nor the insurance carrier is liable to 
 41.25  reimburse the other for the penalty amount.  The department may, 
 41.26  by rule, define actions which demonstrate malice or bad faith. 
 41.27     Subd. 3a.  [LIABILITY FOR EXCESS PAYMENT.] If an insurer, a 
 41.28  self-insured employer, or, if applicable, the special 
 41.29  compensation fund pays compensation to an employee in excess of 
 41.30  its liability and another insurer is liable for all or part of 
 41.31  the excess payment, the department may order the insurer or 
 41.32  self-insured employer that is liable to reimburse the insurer or 
 41.33  self-insured employer that made the excess payment or, if 
 41.34  applicable, the special compensation fund. 
 41.35     Subd. 4.  [MAJORITY DECISION GOVERNS.] If two or more 
 41.36  examiners have conducted a formal hearing on a claim and are 
 42.1   unable to agree on the order or award to be issued, the decision 
 42.2   shall be the decision of the majority.  If the examiners are 
 42.3   equally divided on the decision, the department may appoint an 
 42.4   additional examiner who shall review the record and consult with 
 42.5   the other examiners concerning their personal impressions of the 
 42.6   credibility of the evidence.  Findings of fact and an order or 
 42.7   award may then be issued by a majority of the examiners. 
 42.8      Subd. 5.  [AWARD WITHIN RANGE OF EVIDENCE.] Any award which 
 42.9   falls within a range of five percent of the highest or lowest 
 42.10  estimate of permanent partial disability made by a practitioner 
 42.11  which is in evidence is presumed to be a reasonable award, 
 42.12  provided it is not higher than the highest or lower than the 
 42.13  lowest estimate in evidence. 
 42.14     Subd. 6.  [CLAIMS EXAMINER.] The department shall have and 
 42.15  maintain on its staff the examiners necessary to hear and decide 
 42.16  disputed claims and to assist in the effective administration of 
 42.17  this act.  The examiners shall be attorneys and may be 
 42.18  designated as administrative law judges.  The examiners may make 
 42.19  findings and orders, and approve, review, set aside, modify, or 
 42.20  confirm stipulations of settlement or compromises of claims for 
 42.21  compensation. 
 42.22     Subd. 7.  [REVIEW OF EXAMINER'S DECISION.] A party in 
 42.23  interest may petition the workers' compensation court of appeals 
 42.24  for review of an examiner's decision awarding or denying 
 42.25  compensation if the department or the court receives the 
 42.26  petition within 21 days after the department mailed a copy of 
 42.27  the examiner's findings and order to the party's last-known 
 42.28  address.  The workers' compensation court of appeals shall 
 42.29  dismiss a petition which is not timely filed unless the petition 
 42.30  shows probable good cause that the reason for failure to timely 
 42.31  file was beyond the petitioner's control.  If no petition is 
 42.32  filed within 21 days from the date that a copy of the findings 
 42.33  or order of the examiner is mailed to the last-known address of 
 42.34  the parties in interest, the findings or order shall be 
 42.35  considered final unless set aside, reversed, or modified by the 
 42.36  examiner within that time.  If the findings or order are set 
 43.1   aside by the examiner, the status shall be the same as prior to 
 43.2   the findings or order set aside.  If the findings or order are 
 43.3   reversed or modified by the examiner, the time for filing a 
 43.4   petition commences with the date that notice of reversal or 
 43.5   modification is mailed to the last-known address of the parties 
 43.6   in interest.  The workers' compensation court of appeals shall 
 43.7   either affirm, reverse, set aside, or modify the findings or 
 43.8   order in whole or in part, or direct the taking of additional 
 43.9   evidence.  This action shall be based on a review of the 
 43.10  evidence submitted. 
 43.11     Subd. 8.  [CERTAIN LIABILITY UNAFFECTED.] Unless the 
 43.12  liability under section 176C.35, subdivision 3, 176C.43, 
 43.13  subdivision 6, 176C.48, 176C.57, 176C.58, 176C.59, 176C.60, or 
 43.14  176C.61 is specifically mentioned, the order, findings, or award 
 43.15  are deemed not to affect the liability. 
 43.16     Subd. 9.  [SETTING ASIDE ORDERS.] Within 28 days after a 
 43.17  decision of the workers' compensation court of appeals is mailed 
 43.18  to the last-known address of each party in interest, the court 
 43.19  may, on its own motion, set aside the decision for further 
 43.20  consideration. 
 43.21     On its own motion, for reasons it deems sufficient, the 
 43.22  court may set aside any final order or award of the court or 
 43.23  examiner within one year after the date of the order or award, 
 43.24  upon grounds of mistake or newly discovered evidence, and, after 
 43.25  further consideration, do any of the following: 
 43.26     (1) Affirm, reverse, or modify, in whole or in part, the 
 43.27  order or award. 
 43.28     (2) Reinstate the previous order or award. 
 43.29     (3) Remand the case to the department for further 
 43.30  proceedings. 
 43.31     Subd. 10.  [REMAND OF COMPROMISE.] While a petition for 
 43.32  review by the workers' compensation court of appeals is pending 
 43.33  or after entry of an order or award by the court but before 
 43.34  commencement of an action for judicial review or expiration of 
 43.35  the period in which to commence an action for judicial review, 
 43.36  the court shall remand any compromise presented to it to the 
 44.1   department for consideration and approval or rejection pursuant 
 44.2   to section 176C.16, subdivision 1.  
 44.3      Presentation of a compromise does not affect the period in 
 44.4   which to commence an action for judicial review. 
 44.5      Subd. 11.  [MISTAKE AS TO CAUSE OF INJURY.] If it appears 
 44.6   to the department that a mistake may have been made as to cause 
 44.7   of injury in the findings, order, or award upon an alleged 
 44.8   injury based on accident, when in fact the employee was 
 44.9   suffering from an occupational disease, the department may upon 
 44.10  its own motion, with or without hearing, within three years from 
 44.11  the date of the findings, order, or award, set aside the 
 44.12  findings, order, or award.  The department may take similar 
 44.13  action upon an application made within the three years.  After 
 44.14  opportunity for hearing, the department may then, if in fact the 
 44.15  employee is suffering from disease arising out of the 
 44.16  employment, make new findings and award, or reinstate the 
 44.17  previous findings, order, or award. 
 44.18     Subd. 12.  [OCCUPATIONAL DISEASE; FINDINGS, ORDER, AND 
 44.19  AWARD.] In case of disease arising out of the employment, the 
 44.20  department may from time to time review its findings, order, or 
 44.21  award, and make new findings, order, or award, based on the 
 44.22  facts regarding disability or otherwise as they may then 
 44.23  appear.  This subdivision shall not affect the application of 
 44.24  the limitation in section 176C.17, subdivision 12.  
 44.25     Sec. 21.  [176C.19] [ALIEN DEPENDENTS; PAYMENTS THROUGH 
 44.26  CONSULAR OFFICERS.] 
 44.27     In case a deceased employee, for whose injury or death 
 44.28  compensation is payable, leaves surviving alien dependents 
 44.29  residing outside of the United States, the accredited consular 
 44.30  officer of the country of which the dependents are citizens or 
 44.31  the officer's designated representative residing within the 
 44.32  state shall, except as otherwise determined by the department, 
 44.33  be the sole representative of the deceased employee and 
 44.34  dependents in all matters pertaining to their claims for 
 44.35  compensation.  The receipt by the officer or representative of 
 44.36  compensation funds and their distribution shall be made only 
 45.1   upon order of the department.  Payment to the officer or 
 45.2   representative pursuant to the order shall be a full discharge 
 45.3   of the benefits or compensation.  The consular officer or the 
 45.4   officer's representative shall furnish, if required by the 
 45.5   department, a bond to be approved by it, conditioned upon the 
 45.6   proper application of all money received by the person.  Before 
 45.7   the bond is discharged, the consular officer or representative 
 45.8   shall file with the department a verified account of the items 
 45.9   of receipt and disbursement of the compensation.  The consular 
 45.10  officer or representative shall make interim reports to the 
 45.11  department as it may require. 
 45.12     Sec. 22.  [176C.195] [EMPLOYEES CONFINED IN INSTITUTIONS; 
 45.13  PAYMENT OF BENEFITS.] 
 45.14     If an employee is adjudged insane or incompetent, or 
 45.15  convicted of a felony, and is confined in a public institution 
 45.16  and has wholly dependent upon the employee for support a person, 
 45.17  whose dependency is determined as if the employee were deceased, 
 45.18  compensation payable during the period of confinement may be 
 45.19  paid to the employee and the employee's dependents, in the 
 45.20  manner, for the time and in the amount as the department 
 45.21  provides by order.  
 45.22     Sec. 23.  [176C.20] [JUDGMENT ON AWARD.] 
 45.23     Either party may present a certified copy of the award to 
 45.24  the district court.  The court shall then, without notice, 
 45.25  render judgment in accordance with the award.  The judgment 
 45.26  shall have the same effect as though rendered in an action tried 
 45.27  and determined by the court, and shall be entered and docketed 
 45.28  with like effect.  
 45.29     Sec. 24.  [176C.21] [PAYMENT OF AWARDS BY MUNICIPALITIES.] 
 45.30     When an award is made by the department under this act, 
 45.31  against a municipality, the person in whose favor it is made 
 45.32  shall file a certified copy of it with the municipal clerk.  
 45.33  Within 20 days thereafter, unless an appeal is taken, the clerk 
 45.34  shall draw an order on the municipal treasurer for the payment 
 45.35  of the award.  If upon appeal the award is affirmed in whole or 
 45.36  in part the order for payment shall be drawn within ten days 
 46.1   after a certified copy of the judgment is filed with the proper 
 46.2   clerk.  If more than one payment is provided for in the award or 
 46.3   judgment, orders shall be drawn as the payments become due.  No 
 46.4   statute relating to the filing of claims against, and the 
 46.5   auditing, allowing, and payment of claims by municipalities 
 46.6   shall apply to the payment of an award or judgment under this 
 46.7   section. 
 46.8      Sec. 25.  [176C.22] [PENALTY FOR DELAYED PAYMENTS; 
 46.9   INTEREST.] 
 46.10     Subdivision 1.  [INEXCUSABLE DELAY.] If the employer or the 
 46.11  employer's insurer inexcusably delays in making the first 
 46.12  payment that is due an injured employee for more than 30 days 
 46.13  after the day on which the employee leaves work as a result of 
 46.14  an injury and if the amount due is $500 or more, the payments as 
 46.15  to which the delay is found shall be increased by ten percent.  
 46.16  If the employer or the employer's insurer inexcusably delays in 
 46.17  making the first payment that is due an injured employee for 
 46.18  more than 14 days after the day on which the employee leaves 
 46.19  work as a result of an injury, the payments as to which the 
 46.20  delay is found may be increased by ten percent.  If the employer 
 46.21  or the employer's insurer inexcusably delays for any length of 
 46.22  time in making any other payment that is due an injured 
 46.23  employee, the payments as to which the delay is found may be 
 46.24  increased by ten percent.  If the delay is chargeable to the 
 46.25  employer and not to the insurer, section 176C.62 shall apply and 
 46.26  the relative liability of the parties shall be fixed and 
 46.27  discharged as provided by it.  The department may also order the 
 46.28  employer or insurance carrier to reimburse the employee for any 
 46.29  finance charges, collection charges, or interest which the 
 46.30  employee paid as a result of the inexcusable delay by the 
 46.31  employer or insurance carrier. 
 46.32     Subd. 2.  [OVERDUE PAYMENT.] If the sum ordered by the 
 46.33  department to be paid is not paid when due, that sum shall bear 
 46.34  interest at the rate of ten percent per year.  The state is 
 46.35  liable for interest on awards issued against it under this act.  
 46.36  The department has jurisdiction to issue an award for payment of 
 47.1   the interest at any time within one year of the date of its 
 47.2   order, or upon appeal after final court determination.  The 
 47.3   interest becomes due from the date the examiner's order becomes 
 47.4   final or from the date of a decision by the court of appeals, 
 47.5   whichever is later. 
 47.6      Subd. 3.  [INTEREST ON AWARD.] If upon petition for review 
 47.7   the court affirms an examiner's order, interest at the rate of 
 47.8   seven percent per year on the amount ordered by the examiner 
 47.9   shall be due for the period beginning on the 21st day after the 
 47.10  date of the examiner's order and ending on the date paid under 
 47.11  the court's decision.  If upon petition for judicial review 
 47.12  under section 176C.23 the district court affirms the court of 
 47.13  appeals' decision, interest at the rate of seven percent per 
 47.14  year on the amount ordered by the examiner shall be due up to 
 47.15  the date of the court of appeals' decision.  Thereafter interest 
 47.16  shall be computed under subdivision 2. 
 47.17     Sec. 26.  [176C.23] [JUDICIAL REVIEW.] 
 47.18     Subdivision 1.  [COMMENCEMENT OF ACTION.] The findings of 
 47.19  fact made by the court of appeals acting within it powers shall, 
 47.20  in the absence of fraud, be conclusive.  The order or award 
 47.21  granting or denying compensation, either interlocutory or final, 
 47.22  whether judgment has been rendered on it or not, is subject to 
 47.23  review only as provided in this section.  Within 30 days after 
 47.24  the date of an order or award made by the court of appeals 
 47.25  either originally or after the filing of a petition for review 
 47.26  with the department under section 176C.18 any party aggrieved by 
 47.27  it may by serving a complaint as provided in subdivision 2 and 
 47.28  filing the summons and complaint with the court administrator of 
 47.29  the district court commence, in district court, an action 
 47.30  against the court of appeals for the review of the order or 
 47.31  award, in which action the adverse party shall also be made a 
 47.32  defendant.  If the district court is satisfied that a party in 
 47.33  interest has been prejudiced because of an exceptional delay in 
 47.34  the receipt of a copy of a finding or order, it may extend the 
 47.35  time in which an action may be commenced by an additional 30 
 47.36  days.  The proceedings shall be in the district court of the 
 48.1   county where the plaintiff resides, except that if the plaintiff 
 48.2   is a state agency, the proceedings shall be in the district 
 48.3   court of the county where the defendant resides.  The 
 48.4   proceedings may be brought in another county if all parties 
 48.5   stipulate and the court agrees. 
 48.6      Subd. 2.  [SERVICE OF SUMMONS AND COMPLAINT.] In such an 
 48.7   action a complaint shall be served with an authenticated copy of 
 48.8   the summons.  The complaint shall state the grounds upon which a 
 48.9   review is sought.  Service upon a commissioner or agent 
 48.10  authorized by the court of appeals to accept service constitutes 
 48.11  complete service on all parties, but there shall be left with 
 48.12  the person so served as many copies of the summons and complaint 
 48.13  as there are defendants, and the court of appeals shall mail one 
 48.14  copy to each other defendant. 
 48.15     Subd. 3.  [ANSWER.] The court of appeals shall serve its 
 48.16  answer within 20 days after the service of the complaint, and, 
 48.17  within the like time, the adverse party may serve an answer to 
 48.18  the complaint, which answer may, by way of counterclaim or cross 
 48.19  complaint, ask for the review of the order or award referred to 
 48.20  in the complaint, with the same effect as if the party had 
 48.21  commenced a separate action for its review.  
 48.22     Subd. 4.  [FILING OF DOCUMENTS WITH COURT.] The court of 
 48.23  appeals shall make return to the district court of all documents 
 48.24  and papers on file in the matter, and of all testimony which has 
 48.25  been taken, and of its orders, findings, and award.  The return 
 48.26  of the court of appeals when filed in the district court shall 
 48.27  constitute a judgment roll in the action and it shall not be 
 48.28  necessary to have a transcript approved.  The action may 
 48.29  thereupon be brought on for hearing before the court upon the 
 48.30  record by either party on ten days' notice to the other; 
 48.31  subject, however, to the provisions for a change of the place of 
 48.32  trial or the calling in of another judge. 
 48.33     Subd. 5.  [ACTION BY COURT.] Upon the hearing, the district 
 48.34  court may confirm or set aside the order or award and any 
 48.35  judgment which may have been rendered on it; but an order, 
 48.36  award, or judgment shall be set aside only upon the following 
 49.1   grounds: 
 49.2      (1) that the commission acted without or in excess of its 
 49.3   powers; 
 49.4      (2) that the order or award was procured by fraud; or 
 49.5      (3) that the findings of fact by the commission do not 
 49.6   support the order or award. 
 49.7      Subd. 6.  [HARMLESS ERROR DISREGARDED.] Upon the trial of 
 49.8   the appeal the district court shall disregard any irregularity 
 49.9   or error of the commission or the department unless it is made 
 49.10  to affirmatively appear that the plaintiff was damaged by it. 
 49.11     Subd. 7.  [COURT RECORD TRANSMITTED TO DEPARTMENT.] The 
 49.12  record in any case shall be transmitted to the department within 
 49.13  five days after expiration of the time for appeal from the order 
 49.14  or judgment of the court, unless appeal is taken from the order 
 49.15  or judgment. 
 49.16     Subd. 8.  [ATTORNEY GENERAL ACTION FOR REVIEW.] When an 
 49.17  award is made against the state the attorney general may bring 
 49.18  an action for review in the manner and upon the grounds provided 
 49.19  by subdivision 5. 
 49.20     Subd. 9.  [PAYMENT LIABILITY PENDING REVIEW.] The 
 49.21  commencement of action for review shall not relieve the employer 
 49.22  from paying compensation as directed, when the review involves 
 49.23  only the question of liability as between the employer and one 
 49.24  or more insurance companies or as between several insurance 
 49.25  companies. 
 49.26     Subd. 10.  [REVIEW OF FACTS.] If the court of appeals' 
 49.27  order or award depends on any fact found by the court of 
 49.28  appeals, the district court shall not substitute its judgment 
 49.29  for that of the court of appeals as to the weight or credibility 
 49.30  of the evidence on any finding of fact.  The court may, however, 
 49.31  set aside the court of appeals' order or award and remand the 
 49.32  case to the court of appeals if the court of appeals' order or 
 49.33  award depends on a material and controverted finding of fact 
 49.34  that is not supported by credible and substantial evidence. 
 49.35     Sec. 27.  [176C.24] [REMANDING RECORD.] 
 49.36     Subdivision 1.  [ABSTRACT OF JUDGMENT; ACTION OF 
 50.1   COURT.] Upon the setting aside of an order or award, the court 
 50.2   may recommit the controversy and remand the record in the case 
 50.3   to the court of appeals for further hearing or proceedings, or 
 50.4   it may enter the proper judgment upon the findings of the court 
 50.5   of appeals, as the nature of the case shall demand.  An abstract 
 50.6   of the judgment entered by the district court upon the review of 
 50.7   an order or award shall be made by the district court 
 50.8   administrator upon the docket entry of any judgment which may 
 50.9   have been rendered upon the order or award.  Transcripts of the 
 50.10  abstract may be obtained for entry upon the dockets in other 
 50.11  counties. 
 50.12     Subd. 2.  [REMAND OF RECORD TO DEPARTMENT.] After the 
 50.13  commencement of an action to review an award of the commission 
 50.14  the parties may have the record remanded by the court for the 
 50.15  time and under the condition as they may provide, to have the 
 50.16  department act upon the question of approving or disapproving 
 50.17  any settlement or compromise that the parties may desire to have 
 50.18  approved.  If approved the action shall be at an end and 
 50.19  judgment may be entered upon the approval as upon an award.  If 
 50.20  not approved, the record shall immediately be returned to the 
 50.21  court and the action proceed as if no remand had been made. 
 50.22     Sec. 28.  [176C.25] [APPEAL FROM JUDGMENT ON AWARD.] 
 50.23     Subdivision 1.  [PROCEDURES.] Any party aggrieved by a 
 50.24  judgment entered upon the review of any order or award may 
 50.25  appeal from it as in other civil actions.  The state is a party 
 50.26  aggrieved under this subdivision if a judgment is entered upon 
 50.27  the review confirming an order or award against it.  At any time 
 50.28  before the case is set down for hearing in the court of appeals 
 50.29  or the supreme court, the parties may have the record remanded 
 50.30  by the court to the department in the same manner and for the 
 50.31  same purposes as provided for remanding from the court to the 
 50.32  department under section 176C.24, subdivision 2.  
 50.33     Subd. 2.  [COPY OF DECISION TO DEPARTMENT.] The clerk of 
 50.34  any court rendering a decision affecting an award of the court 
 50.35  of appeals shall promptly furnish that court with a copy of the 
 50.36  decision without charge. 
 51.1      Sec. 29.  [176C.26] [FEES AND COSTS.] 
 51.2      Subdivision 1.  [COURT FEE CHARGES LIMITED; COSTS 
 51.3   REGULATED.] No fees may be charged by the clerk of any court for 
 51.4   the performance of any service required by this act, except for 
 51.5   docketing judgments and for certified transcripts.  In 
 51.6   proceedings to review an order or award, costs between the 
 51.7   parties shall be in the discretion of the court, but no costs 
 51.8   may be taxed against the court of appeals. 
 51.9      Subd. 2.  [ATTORNEY AND COLLECTION FEES.] Unless previously 
 51.10  authorized by the department, no fee may be charged or received 
 51.11  to enforce or collect any claim for compensation, nor may any 
 51.12  contract to enforce or collect be enforceable if the fee, 
 51.13  inclusive of all taxable attorney's fees paid or agreed to be 
 51.14  paid for enforcement or collection, exceeds 20 percent of the 
 51.15  amount at which the claim is compromised or of the amount 
 51.16  awarded, adjudged, or collected, except that in cases of 
 51.17  admitted liability where there is no dispute as to amount of 
 51.18  compensation due and in which no hearing or appeal is necessary, 
 51.19  the fee charged shall not exceed ten percent or $100, whichever 
 51.20  is less, of the amount at which the claim is compromised or of 
 51.21  the amount awarded, adjudged, or collected.  The limitation as 
 51.22  to fees applies to the combined charges of attorneys, 
 51.23  solicitors, representatives, and adjusters who knowingly combine 
 51.24  their efforts to enforce or collect any compensation claim. 
 51.25     Subd. 3.  [TUBERCULOSIS SANITARIUM; ATTORNEY'S FEES.] In an 
 51.26  action for the recovery of costs of hospitalization in a 
 51.27  tuberculosis sanitarium, if the cost was incurred by a patient 
 51.28  whose tuberculosis entitled the patient to workers' 
 51.29  compensation, no attorney fee for the recovery of the cost shall 
 51.30  be allowed to the attorney for the patient in the workers' 
 51.31  compensation action, unless, by express agreement with the 
 51.32  governing board of the institution the attorney has been 
 51.33  retained by the board to also act as its attorney. 
 51.34     Subd. 4.  [PAYMENT OF VARIOUS CLAIMS.] (a) Except as 
 51.35  provided in this subdivision, compensation exceeding $100 in 
 51.36  favor of a claimant shall be made payable to and delivered 
 52.1   directly to the claimant in person. 
 52.2      (b) The department may upon application of an interested 
 52.3   party and subject to paragraph (c), fix the fee of the 
 52.4   claimant's attorney or representative and provide in the award 
 52.5   for that fee to be paid directly to the attorney or 
 52.6   representative. 
 52.7      (c) At the request of the claimant, medical expense, 
 52.8   witness fees, and other charges associated with the claim may be 
 52.9   ordered paid out of the amount awarded. 
 52.10     (d) Payment according to the directions of the award shall 
 52.11  protect the employer and the employer's insurer, or the special 
 52.12  compensation fund, if applicable, from any claim of attorney's 
 52.13  lien. 
 52.14     Subd. 5.  [UNAUTHORIZED FEES; PENALTY.] Charging or 
 52.15  receiving a fee in violation of this section is unlawful, and an 
 52.16  attorney or other guilty person shall forfeit double the amount 
 52.17  retained by the person, to be collected by the state in a civil 
 52.18  action in debt, upon complaint of the department.  Out of the 
 52.19  sum recovered, the court shall direct payment to the injured 
 52.20  party of the amount of the overcharge. 
 52.21     Sec. 30.  [176C.27] [CLAIMS AND AWARDS PROTECTED; 
 52.22  EXCEPTIONS.] 
 52.23     Subdivision 1.  [ASSIGNMENT OF CLAIM PROHIBITED.] Except as 
 52.24  provided in subdivision 2, no claim for compensation is 
 52.25  assignable, but this provision shall not affect the survival of 
 52.26  the claim.  No claim for compensation, or compensation awarded 
 52.27  or paid, may be taken for the debts of the party entitled to the 
 52.28  compensation. 
 52.29     Subd. 2.  [EXCEPTIONS.] If a governmental unit provides 
 52.30  public assistance to pay medical costs or living expenses 
 52.31  related to a claim under this act, the employer or insurance 
 52.32  carrier owing compensation shall reimburse that governmental 
 52.33  unit any compensation awarded or paid if the governmental unit 
 52.34  has given the parties to the claim written notice stating that 
 52.35  it provided the assistance and the cost of the assistance 
 52.36  provided.  Reimbursement shall equal the least of either the 
 53.1   amount of assistance the governmental unit provided or 
 53.2   two-thirds of the amount of the award or payment remaining after 
 53.3   deduction or two-thirds of the amount of the award or payment 
 53.4   remaining after deduction of attorney fees and any other fees or 
 53.5   costs chargeable under this act.  The department shall comply 
 53.6   with this subdivision when making payments under the special 
 53.7   compensation fund. 
 53.8      Sec. 31.  [176C.28] [PREFERENCE OF CLAIMS.] 
 53.9      The whole claim for compensation for the injury or death of 
 53.10  any employee or any award or judgment on the claim, and any 
 53.11  claim for unpaid compensation insurance premiums are entitled to 
 53.12  preference in bankruptcy or insolvency proceedings as is given 
 53.13  creditor's actions except as denied or limited by state or 
 53.14  federal law.  This section shall not impair the lien of any 
 53.15  judgment entered upon any award. 
 53.16     Sec. 32.  [176C.281] [WORKERS' COMPENSATION INSURANCE.] 
 53.17     Subdivision 1.  [DUTY TO INSURE PAYMENT FOR 
 53.18  COMPENSATION.] Unless exempted by the department, every employer 
 53.19  as described in section 176C.04, subdivisions 1 to 3, shall 
 53.20  insure payment for the compensation in an insurer authorized to 
 53.21  do business in this state.  A joint venture may elect to be an 
 53.22  employer under this act and obtain insurance for payment of 
 53.23  compensation.  If a joint venture that is subject to this 
 53.24  chapter only because the joint venture elected to be an employer 
 53.25  under this chapter is dissolved and cancels or terminates its 
 53.26  contract for the insurance of compensation under this chapter, 
 53.27  that joint venture is deemed to have effected withdrawal, which 
 53.28  shall be effective on the day after the contract is canceled or 
 53.29  terminated. 
 53.30     Subd. 2.  [EXEMPTION FROM DUTY TO INSURE.] The department 
 53.31  may grant a written order of exemption to an employer who shows 
 53.32  its financial ability to pay the amount of compensation, agrees 
 53.33  to report faithfully all compensable injuries, and agrees to 
 53.34  comply with this act and the rules of the department.  The 
 53.35  department may condition the granting of an exemption upon the 
 53.36  employer's furnishing of satisfactory security to guarantee 
 54.1   payment of all claims under compensation.  The department may 
 54.2   require that bonds or other personal guarantees be enforceable 
 54.3   against sureties in the same manner as an award may be 
 54.4   enforced.  The department may from time to time require proof of 
 54.5   financial ability of the employer to pay compensation.  Any 
 54.6   exemption shall be void if the application for it contains a 
 54.7   financial statement which is false in any material respect.  An 
 54.8   employer who files an application containing a false financial 
 54.9   statement remains subject to subdivision 1. 
 54.10     The department may promulgate rules establishing an amount 
 54.11  to be charged as an initial application fee and an amount to be 
 54.12  charged as a renewal application fee to employers applying for 
 54.13  exemption under this subdivision. 
 54.14     Subd. 3.  [REVOCATION OF EXEMPTION.] Upon giving ten days' 
 54.15  notice in writing, the department may, after hearing, revoke the 
 54.16  exemption for financial reasons or for the failure of the 
 54.17  employer to faithfully discharge its obligations according to 
 54.18  the agreement contained in the application for exemption.  Upon 
 54.19  revocation, the employer shall insure its liability immediately 
 54.20  as provided in subdivision 1. 
 54.21     Subd. 4.  [EFFECT OF INSURING WITH UNAUTHORIZED 
 54.22  INSURER.] An employer who procures an exemption under 
 54.23  subdivision 2 and thereafter enters into any agreement for 
 54.24  excess insurance coverage with an insurer not authorized to do 
 54.25  business in this state shall report that agreement to the 
 54.26  department immediately.  The placing of excess insurance 
 54.27  coverage with such an insurer shall not by itself be grounds for 
 54.28  revocation of the exemption. 
 54.29     Subd. 5.  [CLOSURE ORDER.] (a) When the department 
 54.30  discovers an uninsured employer, the department may order the 
 54.31  employer to cease operations until the employer complies with 
 54.32  subdivisions 1 to 4. 
 54.33     (b) If the department believes that an employer may be an 
 54.34  uninsured employer, the department shall notify the employer of 
 54.35  the alleged violation and the possibility of closure.  The 
 54.36  employer may request and shall receive a hearing under section 
 55.1   176C.17 on the matter if the employer applies for a hearing 
 55.2   within ten days after the notice of the alleged violation is 
 55.3   served. 
 55.4      (c) After a hearing under paragraph (b), or without a 
 55.5   hearing if one is not requested, the department may issue an 
 55.6   order to an employer to cease operations on a finding that the 
 55.7   employer is an uninsured employer. 
 55.8      (d) The attorney general may bring an action in any court 
 55.9   of competent jurisdiction for an injunction or other remedy to 
 55.10  enforce the department's order to cease operations under 
 55.11  paragraph (c). 
 55.12     Subd. 6.  [EMPLOYER'S LIABILITY.] If compensation is 
 55.13  awarded under this act, against an employer who at the time of 
 55.14  the accident has not complied with subdivision 1, the employer 
 55.15  shall not be entitled as to the award or a judgment entered on 
 55.16  it, to any of the exemptions of property from seizure and sale 
 55.17  on execution allowed in Minnesota Statutes, chapter 550.  If the 
 55.18  employer is a corporation, its officers and directors are 
 55.19  individually and jointly and severally liable for any portion of 
 55.20  the judgment that is returned unsatisfied after execution 
 55.21  against the corporation. 
 55.22     Subd. 7.  [REPORTS BY EMPLOYER.] Every employer shall upon 
 55.23  request of the department report to it the number of employees 
 55.24  and the nature of their work and also the name of the insurance 
 55.25  company with whom the employer has insured liability under this 
 55.26  act and the number and date of expiration of the policy.  
 55.27  Failure to furnish the report within ten days from the making of 
 55.28  a request by certified mail is presumptive evidence that the 
 55.29  delinquent employer is violating subdivision 1. 
 55.30     Subd. 8.  [INSOLVENT EMPLOYERS; ASSESSMENTS.] (a) If an 
 55.31  employer who is currently or was formerly exempted by written 
 55.32  order of the department under subdivision 2 is unable to pay an 
 55.33  award, judgment is rendered in accordance with section 176C.20 
 55.34  against that employer and execution is levied and returned 
 55.35  unsatisfied in whole or in part, payments for the employer's 
 55.36  liability shall be made from the fund established under 
 56.1   subdivision 10.  If a currently or formerly exempted employer 
 56.2   files for bankruptcy and not less than 60 days after that filing 
 56.3   the department has reason to believe that compensation payments 
 56.4   due are not being paid, the department in its discretion may 
 56.5   make payment for the employer's liability from the fund 
 56.6   established under subdivision 10.  The state treasurer shall 
 56.7   proceed to recover the payments from the employer or the 
 56.8   employer's receiver or trustee in bankruptcy, and may commence 
 56.9   an action or proceeding or file a claim for them.  The attorney 
 56.10  general shall appear on behalf of the state treasurer in the 
 56.11  action or proceeding.  All money recovered in the action or 
 56.12  proceeding shall be paid into the fund established under 
 56.13  subdivision 10. 
 56.14     (b) Each employer exempted by written order of the 
 56.15  department under subdivision 2 shall pay into the fund 
 56.16  established by subdivision 10 the sum assessed against each 
 56.17  exempt employer upon the issuance of an initial order.  The 
 56.18  order shall provide for a sum sufficient to secure estimated 
 56.19  payments of the insolvent exempt employer due for the period up 
 56.20  to the date of the order and for one year following the date of 
 56.21  the order and to pay the estimated cost of insurance carrier or 
 56.22  insurance service organization services under subdivision 9.  
 56.23  Payments ordered to be made to the fund shall be paid to the 
 56.24  department within 30 days.  If additional money is required, 
 56.25  further assessments shall be made based on orders of the 
 56.26  department with assessments prorated on the basis of the gross 
 56.27  payroll for this state of the exempt employer, reported to the 
 56.28  department for the previous calendar year for unemployment 
 56.29  compensation purposes.  If the exempt employer has not reported 
 56.30  the necessary information, the department shall determine the 
 56.31  comparable gross payroll for the exempt employer.  If an 
 56.32  assessment made under this subdivision is not paid within 30 
 56.33  days of the order of the department, the attorney general may 
 56.34  collect the assessment by civil action or otherwise. 
 56.35     Subd. 9.  [SERVICE OF CLAIMS.] The department may retain an 
 56.36  insurance carrier or insurance service organization to process, 
 57.1   investigate, and pay valid claims.  The charge for the service 
 57.2   shall be paid from the fund as provided under subdivision 8, 
 57.3   paragraph (b). 
 57.4      Subd. 10.  [SELF-INSURED EMPLOYERS LIABILITY FUND.] The 
 57.5   money paid into the state treasury under subdivision 8, together 
 57.6   with all accrued interest, shall constitute the "self-insured 
 57.7   employers liability fund." 
 57.8      Sec. 33.  [176C.29] [THIRD PARTY LIABILITY.] 
 57.9      Subdivision 1.  [RIGHT OF ACTION; NOTICE; DISTRIBUTION OF 
 57.10  PROCEEDS.] Making a claim for compensation against an employer 
 57.11  or compensation insurer for the injury or death of an employee 
 57.12  shall not affect the right of the employee, the employee's 
 57.13  personal representative, or other person entitled to bring 
 57.14  action, to make claim or maintain an action in tort against any 
 57.15  other party for the injury or death.  The other party is 
 57.16  referred to in this section as the third party.  Making a claim 
 57.17  by a person against a third party for damages by reason of an 
 57.18  injury to which this act applies, or the adjustment of the 
 57.19  claim, shall not affect the right of the injured employee or the 
 57.20  employee's dependents to recover compensation.  An employer or 
 57.21  compensation insurer who has paid or is obligated to pay a 
 57.22  lawful claim under this act shall have the same right to make 
 57.23  claim or maintain an action in tort against any other party for 
 57.24  the injury or death.  If the department pays or is obligated to 
 57.25  pay a claim under the special compensation fund, the department 
 57.26  shall also have the right to maintain an action in tort against 
 57.27  any other party for the employee's injury or death.  However, 
 57.28  each shall give to the other reasonable notice and opportunity 
 57.29  to join in the making of the claim or instituting an action and 
 57.30  to be represented by counsel.  If a party entitled to notice 
 57.31  cannot be found, the department shall be the agent of the party 
 57.32  for the giving of a notice as required in this subdivision.  The 
 57.33  notice, when given to the department, shall include an affidavit 
 57.34  setting forth the facts, including the steps taken to locate the 
 57.35  party.  Each shall have an equal voice in the prosecution of the 
 57.36  claim, and any disputes arising shall be passed upon by the 
 58.1   court before whom the case is pending, and if no action is 
 58.2   pending, then by a court of record or by the department.  If 
 58.3   notice is given as provided in this subdivision, the liability 
 58.4   of the tort-feasor shall be determined as to all parties having 
 58.5   a right to make claim, and irrespective of whether or not all 
 58.6   parties join in prosecuting the claim, the proceeds of the claim 
 58.7   shall be divided as follows:  After deducting the reasonable 
 58.8   cost of collection, one-third of the remainder shall in any 
 58.9   event be paid to the injured employee of the employee's personal 
 58.10  representative or other person entitled to bring action.  Out of 
 58.11  the balance remaining, the employer or insurance carrier or, if 
 58.12  applicable, the special compensation fund shall be reimbursed 
 58.13  for all payments made by it, or which it may be obligated to 
 58.14  make in the future, under this act, except that it shall not be 
 58.15  reimbursed for any payments of increased compensation made or to 
 58.16  be made under section 176C.18, subdivision 3, 176C.22, 176C.35, 
 58.17  subdivision 3, 176C.57, or 176C.60.  Any balance remaining shall 
 58.18  be paid to the employee or the employee's personal 
 58.19  representative or other person entitled to bring action.  If 
 58.20  both the employee or the employee's personal representative or 
 58.21  other person entitled to bring action, and the employer, 
 58.22  compensation insurer or department, join in pressing the claim 
 58.23  and are represented by counsel, the attorney's fees allowed as a 
 58.24  part of the costs of collection shall be, unless otherwise 
 58.25  agreed upon, divided between the attorneys as directed by the 
 58.26  court or by the department.  A settlement of any third party 
 58.27  claim shall be void unless the settlement and the distribution 
 58.28  of its proceeds is approved by the court before whom the action 
 58.29  is pending and, if no action is pending, by a court of record or 
 58.30  by the department. 
 58.31     Subd. 2.  [CERTAIN ACTIONS; CONTRIBUTION; CONSOLIDATION.] 
 58.32  In the case of liability of the employer or insurer to make 
 58.33  payment into the state treasury under section 176C.49 or 
 58.34  176C.59, if the injury or death was due to the actionable act, 
 58.35  neglect, or default of a third party, the employer or insurer 
 58.36  shall have a right of action against the third party to recover 
 59.1   the sum paid into the state treasury, which right may be 
 59.2   enforced either by joining in the action mentioned in 
 59.3   subdivision 1, or by independent action.  Contributory 
 59.4   negligence of the employee because of whose injury or death the 
 59.5   payment was made shall bar recovery if the contributory 
 59.6   negligence was greater than the negligence of the person against 
 59.7   whom recovery is sought, and the recovery allowed the employer 
 59.8   or insurer shall be diminished in proportion to the amount of 
 59.9   negligence attributable to the injured or deceased employee.  
 59.10  Any action brought under this subdivision may, upon order of the 
 59.11  court, be consolidated and tried together with any action 
 59.12  brought under subdivision 1. 
 59.13     Subd. 3.  [ACTION AGAINST HEALTH CARE PROVIDER.] Nothing in 
 59.14  this act shall prevent an employee from taking the compensation 
 59.15  that the employee may be entitled to under it and also 
 59.16  maintaining a civil action against any physician, chiropractor, 
 59.17  psychologist, or podiatrist for malpractice. 
 59.18     Subd. 4.  [COMMON INSURER; NOTICE.] If the employer and the 
 59.19  third party are insured by the same insurer, or by insurers who 
 59.20  are under common control, the employer's insurer shall promptly 
 59.21  notify the parties in interest and the department.  If the 
 59.22  employer has assumed the liability of the third party, it shall 
 59.23  give similar notice, in default of which any settlement with an 
 59.24  injured employee or beneficiary is void.  This subdivision does 
 59.25  not prevent the employer or compensation insurer from sharing in 
 59.26  the proceeds of any third party claim or action, as set forth in 
 59.27  subdivision 1. 
 59.28     Subd. 5.  [TEMPORARY HELP AGENCY.] No employee of a 
 59.29  temporary help agency who makes a claim for compensation may 
 59.30  make a claim or maintain an action in tort against an employer 
 59.31  who compensates the temporary help agency for the employee's 
 59.32  services. 
 59.33     Subd. 5a.  [LOANED EMPLOYEES.] No employee who is loaned by 
 59.34  an employer to another employer and who makes a claim for 
 59.35  compensation under this chapter may make a claim or maintain an 
 59.36  action in tort against the employer who accepted the loaned 
 60.1   employee's services. 
 60.2      Sec. 34.  [176C.30] [OTHER INSURANCE NOT AFFECTED; 
 60.3   LIABILITY OF INSURED EMPLOYER.] 
 60.4      Subdivision 1.  [RIGHT TO INSURE.] This act does not affect 
 60.5   the organization of any mutual or other insurance company or the 
 60.6   right of the employer to insure in mutual or other companies 
 60.7   against liability including the liability for the compensation 
 60.8   provided for by this act. 
 60.9      Subd. 2.  [ADDITIONAL COVERAGE PERMITTED.] An employer may 
 60.10  provide by mutual or other insurance, by arrangement with 
 60.11  employees or otherwise, for the payment to those employees, 
 60.12  their families, their dependents, or their representatives, of 
 60.13  sick, accident, or death benefits in addition to the 
 60.14  compensation provided under this act.  Liability for 
 60.15  compensation is not affected by any insurance, contribution, or 
 60.16  other benefit due to or received by the person entitled to that 
 60.17  compensation. 
 60.18     Subd. 3.  [SICK LEAVE.] Unless an employee elects to 
 60.19  receive sick leave benefits in lieu of compensation under this 
 60.20  act, if sick leave benefits are paid during the period that 
 60.21  temporary disability benefits are payable, the employer shall 
 60.22  restore sick leave benefits to the employee in an amount equal 
 60.23  in value to the amount payable under this act.  The combination 
 60.24  of temporary disability benefits and sick leave benefits paid to 
 60.25  the employee may not exceed the employee's weekly wage. 
 60.26     Subd. 4.  [DIRECT LIABILITY OF EMPLOYER.] Regardless of any 
 60.27  insurance or other contract, an employee or dependent entitled 
 60.28  to compensation under this act may recover compensation directly 
 60.29  from the employer and may enforce in the person's own name, in 
 60.30  the manner provided in this act, the liability of any insurance 
 60.31  company which insured the liability for that compensation.  The 
 60.32  appearance, whether general or special, of the insurance carrier 
 60.33  by agent or attorney constitutes waiver of the service of copy 
 60.34  of application and of notice of hearing required by section 
 60.35  176C.17. 
 60.36     Subd. 5.  [EMPLOYER AND INSURER RELATIONSHIP.] Payment of 
 61.1   compensation under this act by either the employer or the 
 61.2   insurance company shall, to the extent of the payment, bar 
 61.3   recovery against the other of the amount paid.  As between the 
 61.4   employer and the insurance company, payment by either the 
 61.5   employer or the insurance company directly to the employee or 
 61.6   the person entitled to compensation is subject to the conditions 
 61.7   of the policy. 
 61.8      Subd. 6.  [NONCOOPERATION DEFENSE PROHIBITED.] The failure 
 61.9   of the assured to do or refrain from doing any act required by 
 61.10  the policy is not available to the insurance carrier as a 
 61.11  defense against the claim of the injured employee or the injured 
 61.12  employee's dependents. 
 61.13     Subd. 7.  [REIMBURSEMENT FOR PAYMENT FROM OTHER INSURANCE.] 
 61.14  The department may order direct reimbursement out of the 
 61.15  proceeds payable under this act for payments made under a 
 61.16  nonindustrial insurance policy covering the same disability and 
 61.17  expenses compensable under section 176C.42 when the claimant 
 61.18  consents or when it is established that the payments under the 
 61.19  nonindustrial insurance policy were improper.  No attorney fee 
 61.20  is due with respect to that reimbursement.  An insurer who 
 61.21  issues a nonindustrial insurance policy may not intervene as a 
 61.22  party in any proceeding under this act for reimbursement under 
 61.23  this subdivision. 
 61.24     Sec. 35.  [176C.31] [INSURANCE POLICY REGULATIONS.] 
 61.25     Subdivision 1.  [POLICIES MUST COMPLY WITH STATUTE.] Every 
 61.26  contract for the insurance of compensation provided under this 
 61.27  act or against liability for the compensation is subject to this 
 61.28  act and provisions inconsistent with this act are void. 
 61.29     Subd. 2.  [FULL COVERAGE REQUIRED.] Except as provided in 
 61.30  subdivision 3, a contract under subdivision 1 shall be construed 
 61.31  to grant full coverage of all liability of the assured under 
 61.32  this act unless the department specifically consents by written 
 61.33  order to the issuance of a contract providing divided insurance 
 61.34  or partial insurance. 
 61.35     Subd. 3.  [CERTAIN LIABILITY EXCLUSIVE.] Liability under 
 61.36  section 176C.35, subdivision 3, is the sole liability of the 
 62.1   employer, notwithstanding any agreement of the parties to the 
 62.2   contrary. 
 62.3      Subd. 4.  [INTERMEDIATE AGENCY OR PUBLISHER.] An 
 62.4   intermediate agency or publisher referred to in section 176C.07, 
 62.5   subdivision 8, may, under its own contract of insurance, cover 
 62.6   liability of employees as defined in section 176C.07, 
 62.7   subdivision 8, for an intermediate or independent news agency, 
 62.8   if the contract of insurance of the publisher or intermediate 
 62.9   agency is endorsed to cover those persons.  If the publisher so 
 62.10  covers, the intermediate or independent news agency need not 
 62.11  cover liability for those persons. 
 62.12     Subd. 5.  [PARTNERSHIPS.] A contract procured to insure a 
 62.13  partnership may not be construed to cover the individual 
 62.14  liability of the members of the partnership in the course of a 
 62.15  trade, business, profession, or occupation conducted by them as 
 62.16  individuals.  A contract procured to insure an individual may 
 62.17  not be construed to cover the liability of a partnership of 
 62.18  which the individual is a member or to cover the liability of 
 62.19  the individual arising as a member of any partnership. 
 62.20     Subd. 6.  [POLICY CANCELLATION OR TERMINATION.] No party to 
 62.21  a contract of insurance may cancel or not renew it within the 
 62.22  contract period or terminate it upon the expiration date until a 
 62.23  notice in writing is given to the other party fixing the 
 62.24  proposed date of cancellation or declaring that the party 
 62.25  intends to terminate or does not intend to renew the policy upon 
 62.26  expiration.  Except as provided in this subdivision, when an 
 62.27  insurance company does not renew a policy upon expiration the 
 62.28  nonrenewal is not effective until 60 days after the insurance 
 62.29  company has given written notice of the nonrenewal to the 
 62.30  insured employer and the department.  Cancellation or 
 62.31  termination of a policy by an insurance company for any reason 
 62.32  other than nonrenewal is not effective until 30 days after the 
 62.33  insurance company has given written notice of the cancellation 
 62.34  or termination to the insured employer and the department either 
 62.35  by personal service of the notice upon the department or by 
 62.36  sending the notice by facsimile transmission or certified mail 
 63.1   addressed to the department.  The department may provide by rule 
 63.2   that the notice of cancellation or termination be given by 
 63.3   certified mail or facsimile machine transmission to the 
 63.4   compensation rating bureau rather than to the department.  
 63.5   Whenever the compensation rating bureau receives such a notice 
 63.6   of cancellation or termination it shall immediately notify the 
 63.7   department of the notice of cancellation or termination. 
 63.8      In the event of a court-ordered liquidation of an insurance 
 63.9   company, a contract of insurance issued by that company 
 63.10  terminates on the date specified in the court order. 
 63.11     Regardless of whether notice has been given to the 
 63.12  department, a cancellation or termination is effective upon the 
 63.13  effective date of replacement insurance coverage obtained by the 
 63.14  employer or of an order exempting the employer from carrying 
 63.15  insurance under section 176C.281, subdivisions 1 to 4. 
 63.16     Subd. 7.  [EXAMINATION OF BOOKS AND RECORDS.] The 
 63.17  department may examine from time to time the books and records 
 63.18  of any insurer insuring liability or compensation for an 
 63.19  employer in this state.  The department may require an insurer 
 63.20  to designate one mailing address for use by the department and 
 63.21  to respond to correspondence from the department within 30 
 63.22  days.  Any insurer that refuses or fails to answer 
 63.23  correspondence from the department or allow the department to 
 63.24  examine its books and records is subject to enforcement 
 63.25  proceedings. 
 63.26     Subd. 8.  [INSURER'S FAILURE TO PAY CLAIMS PROMPTLY.] If 
 63.27  any insurer authorized to transact workers' compensation 
 63.28  insurance in this state fails to promptly pay claims for 
 63.29  compensation for which it is liable or fails to make reports to 
 63.30  the department required by section 176C.38, the department may 
 63.31  recommend to the commissioner of commerce, with detailed 
 63.32  reasons, that enforcement proceedings be commenced.  The 
 63.33  commissioner shall furnish a copy of the recommendation to the 
 63.34  insurer and set a date for a hearing, at which both the insurer 
 63.35  and the department shall be afforded an opportunity to present 
 63.36  evidence.  If after the hearing the commissioner finds that the 
 64.1   insurer has failed to carry out its obligations under this act, 
 64.2   the commissioner shall institute enforcement proceedings.  If 
 64.3   the commissioner does not so find, the commissioner shall 
 64.4   dismiss the complaint. 
 64.5      Subd. 9.  [EXEMPT EMPLOYER; REVOCATION FOR DISCRIMINATION.] 
 64.6   If an employer whom the department exempted from carrying 
 64.7   compensation insurance arbitrarily or unreasonably refuses 
 64.8   employment to or discharges employees because of a nondisabling 
 64.9   physical condition, the department shall revoke the exemption of 
 64.10  that employer. 
 64.11     Subd. 10.  [CONSTRUCTION PROJECTS.] If the department by 
 64.12  one or more written orders specifically consents to the issuance 
 64.13  of one or more contracts covering only the liability incurred on 
 64.14  a construction project and if the construction project owner 
 64.15  designates the insurance carrier and pays for each contract, the 
 64.16  construction project owner shall reimburse the department for 
 64.17  all costs incurred by the department in issuing the written 
 64.18  orders and in ensuring minimum confusion and maximum safety on 
 64.19  the construction project. 
 64.20     Subd. 11.  [RATING BUREAU.] The compensation rating bureau 
 64.21  shall provide the department with any information it requests 
 64.22  relating to workers' compensation insurance coverage, including 
 64.23  but not limited to the names of employers insured and any 
 64.24  insured employer's address, business status, type and date of 
 64.25  coverage, manual premium code, and policy information including 
 64.26  numbers, cancellations, terminations, endorsements and 
 64.27  reinstatement dates.  The department may enter into contracts 
 64.28  with compensation rating bureau to share the costs of data 
 64.29  processing and other services. 
 64.30     Sec. 36.  [176C.32] [CONTINUING LIABILITY; GUARANTEE 
 64.31  SETTLEMENT; GROSS PAYMENT.] 
 64.32     Subdivision 1.  [PAYMENTS OVER SIX MONTHS; GUARANTEE.] In 
 64.33  any case in which compensation payments have extended or will 
 64.34  extend over six months or more from the date of the injury (or 
 64.35  at any time in death benefit cases), any party in interest may, 
 64.36  in the discretion of the department, be discharged from, or 
 65.1   compelled to guarantee, future compensation payments as follows: 
 65.2      (1) By depositing the present value of the total unpaid 
 65.3   compensation upon a seven percent interest discount basis with a 
 65.4   credit union, savings and loan association, bank, or trust 
 65.5   company designated by the department; or 
 65.6      (2) By purchasing an annuity within the limitations 
 65.7   provided by law, in an insurance company granting annuities and 
 65.8   licensed in this state, designated by the department; or 
 65.9      (3) By making payment in gross upon a seven percent 
 65.10  interest discount basis approved by the department; and 
 65.11     (4) If the time for making payments or their amounts cannot 
 65.12  be definitely determined, by furnishing a bond, or other 
 65.13  security, satisfactory to the department for the payment of 
 65.14  compensation as may be due or become due.  The acceptance of the 
 65.15  bond, or other security, and its form and sufficiency, shall be 
 65.16  subject to the approval of the department.  If the employer or 
 65.17  insurer is unable or fails to immediately procure the bond, 
 65.18  then, in lieu of it, deposit shall be made with a credit union, 
 65.19  savings and loan association, bank, or trust company designated 
 65.20  by the department, of the maximum amount that may reasonably 
 65.21  become payable in these cases, to be determined by the 
 65.22  department at amounts consistent with the extent of the injuries 
 65.23  and the law.  The bonds and deposits are to be reduced only to 
 65.24  satisfy claims and withdrawn only after the claims which they 
 65.25  are to guarantee are fully satisfied or liquidated under clauses 
 65.26  (1), (2), or (3); and 
 65.27     (5) Any insured employer may, within the discretion of the 
 65.28  department, compel the insurer to discharge, or to guarantee 
 65.29  payment of its liabilities in any case under this section and 
 65.30  thereby release the employer from compensation liability in the 
 65.31  case, but if for any reason a bond furnished or deposit made 
 65.32  under clause (4) does not fully protect, the compensation 
 65.33  insurer or uninsured employer, as the case may be, shall be 
 65.34  liable to its beneficiary. 
 65.35     Subd. 2.  [PERMANENT DISABILITY.] If compensation is due 
 65.36  for permanent disability following an injury or if death 
 66.1   benefits are payable, payments shall be made to the employee or 
 66.2   dependent on a monthly basis.  The department may direct an 
 66.3   advance on a payment of unaccrued compensation or death benefits 
 66.4   if it determines that the advance payment is in the best 
 66.5   interest of the injured employee or the employee's dependents.  
 66.6   In directing the advance, the department shall give the employer 
 66.7   or the employer's insurer an interest credit against its 
 66.8   liability.  The credit shall be computed at seven percent. 
 66.9      Subd. 3.  [LUMP SUM SETTLEMENT.] No lump sum settlement 
 66.10  shall be allowed in any case of permanent total disability upon 
 66.11  an estimated life expectancy, except upon consent of all 
 66.12  parties, after hearing and finding by the department that the 
 66.13  interests of the injured employee will be conserved by it. 
 66.14     Sec. 37.  [176C.33] [BLANKS AND RECORDS.] 
 66.15     Subdivision 1.  [RECORDS.] The department shall print and 
 66.16  furnish free to any employer or employee the blank forms that it 
 66.17  shall deem requisite to facilitate efficient administration of 
 66.18  this act.  It shall keep the record books or records that it 
 66.19  shall deem required for the proper and efficient administration 
 66.20  of this act.  The records of the department related to the 
 66.21  administration of this act are not subject to inspection and 
 66.22  copying under chapter 13, except as provided by the department 
 66.23  by rule. 
 66.24     Subd. 2.  [CONFIDENTIALITY.] Notwithstanding subdivision 1, 
 66.25  a record maintained by the department that reveals the identity 
 66.26  of an employee who claims workers' compensation benefits, the 
 66.27  nature of the employee's claimed injury, the employee's past or 
 66.28  present medical condition, the extent of the employee's 
 66.29  disability, the amount, type, or duration of benefits paid to 
 66.30  the employee or any financial information provided to the 
 66.31  department by a self-insured employer or by an applicant for 
 66.32  exemption is confidential and not open to public inspection or 
 66.33  copying.  The department may deny a request made to inspect and 
 66.34  copy a record that is confidential under this paragraph, unless 
 66.35  one of the following applies: 
 66.36     (1) The requester is the employee who is the subject of the 
 67.1   record or an attorney or authorized agent of that employee.  An 
 67.2   attorney or authorized agent of an employee who is the subject 
 67.3   of a record shall provide a written authorization for inspection 
 67.4   and copying from the employee if requested by the department. 
 67.5      (2) The record that is requested contains confidential 
 67.6   information concerning a workers' compensation claim and the 
 67.7   requester is an insurance carrier or employer that is a party to 
 67.8   the claim or an attorney or authorized agent of that insurance 
 67.9   carrier or employer.  An attorney or authorized agent of an 
 67.10  insurance carrier or employer that is a party to an employee's 
 67.11  workers' compensation claim shall provide a written 
 67.12  authorization for inspection and copying from the insurance 
 67.13  carrier or employer if requested by the department. 
 67.14     (3) The record that is requested contains financial 
 67.15  information provided by a self-insured employer or by an 
 67.16  applicant for exemption and the requester is the self-insured 
 67.17  employer or applicant for exemption or an attorney or authorized 
 67.18  agent of the self-insured employer or applicant for exemption.  
 67.19  An attorney or authorized agent of the self-insured employer or 
 67.20  of the applicant for exemption shall provide a written 
 67.21  authorization for inspection and copying from the self-insured 
 67.22  employer or applicant for exemption if requested by the 
 67.23  department. 
 67.24     Sec. 38.  [176C.35] [PENALTIES.] 
 67.25     Subdivision 1.  [RECORDS OR REPORTS VIOLATION.] Every 
 67.26  employer and every insurance company that fails to keep the 
 67.27  records or to make the reports required by this act or that 
 67.28  knowingly falsifies the records or makes false reports shall 
 67.29  forfeit to the state not less than $10 nor more than $100 for 
 67.30  each offense. 
 67.31     Subd. 2.  [REFUSAL TO HIRE; DISCRIMINATION.] Any employer, 
 67.32  or duly authorized agent of any employer, who, without 
 67.33  reasonable cause, refuses to rehire an employee injured in the 
 67.34  course of employment, or who, because of a claim or attempt to 
 67.35  claim compensation benefits from the employer, discriminates or 
 67.36  threatens to discriminate against an employee as to the 
 68.1   employee's employment, shall forfeit to the state not less than 
 68.2   $50 nor more than $500 for each offense.  No action under this 
 68.3   subdivision may be commenced except upon request of the 
 68.4   department. 
 68.5      Subd. 3.  [REFUSAL TO REHIRE.] Any employer who without 
 68.6   reasonable cause refuses to rehire an employee who is injured in 
 68.7   the course of employment, where suitable employment is available 
 68.8   within the employee's physical and mental limitations, upon 
 68.9   order of the department and in addition to other benefits, has 
 68.10  exclusive liability to pay to the employee the wages lost during 
 68.11  the period of the refusal, not exceeding one year's wages.  In 
 68.12  determining the availability of suitable employment the 
 68.13  continuance in business of the employer shall be considered and 
 68.14  written rules promulgated by the employer with respect to 
 68.15  seniority or the provisions of any collective bargaining 
 68.16  agreement with respect to seniority shall govern. 
 68.17     Sec. 39.  [176C.37] [EMPLOYERS' RECORDS.] 
 68.18     Every employer of three or more persons and every employer 
 68.19  who is subject to this act shall keep a record of all accidents 
 68.20  causing death or disability of any employee while performing 
 68.21  services growing out of and incidental to the employment.  This 
 68.22  record shall give the name, address, age, and wages of the 
 68.23  deceased or injured employee, the time and causes of the 
 68.24  accident, the nature and extent of the injury, and any other 
 68.25  information the department may require by general order.  
 68.26  Reports based upon this record shall be furnished to the 
 68.27  department at the times and in the manner as it may require by 
 68.28  general order, upon forms approved by the department. 
 68.29     Sec. 40.  [176C.38] [RECORDS OF PAYMENTS; REPORTS.] 
 68.30     Every insurance company which transacts the business of 
 68.31  compensation insurance, and every employer who is subject to 
 68.32  this act but whose liability is not insured, shall keep a record 
 68.33  of all payments made under this act and of the time and manner 
 68.34  of making the payments, and shall furnish reports based upon 
 68.35  these records to the department as it may require by general 
 68.36  order, upon forms approved by the department. 
 69.1      Sec. 41.  [176C.39] [GENERAL ORDERS; APPLICATION OF 
 69.2   STATUTES.] 
 69.3      The provisions of chapter 14, relating to the 
 69.4   administrative procedures of the department apply to this act. 
 69.5      Sec. 42.  [176C.40] [REPORTS NOT EVIDENCE IN ACTIONS.] 
 69.6      Reports furnished to the department pursuant to sections 
 69.7   176C.37 and 176C.38 shall not be admissible as evidence in any 
 69.8   action or proceeding arising out of the death or accident 
 69.9   reported. 
 69.10     Sec. 43.  [176C.42] [INCIDENTAL COMPENSATION.] 
 69.11     Subdivision 1.  [TREATMENT OF EMPLOYEE.] The employer shall 
 69.12  supply the medical, surgical, chiropractic, psychologist, 
 69.13  podiatric, dental, and hospital treatment, medicines, medical 
 69.14  and surgical supplies, crutches, artificial members, appliances, 
 69.15  and training in the use of artificial members and appliances, 
 69.16  or, at the option of the employee, if the employer has not filed 
 69.17  notice as provided in subdivision 4, Christian Science treatment 
 69.18  in lieu of medical treatment, medicines, and medical supplies, 
 69.19  as may be reasonably required to cure and relieve from the 
 69.20  effects of the injury, and to attain efficient use of artificial 
 69.21  members and appliances, and in case of the employer's neglect or 
 69.22  refusal seasonably to do so, or in emergency until it is 
 69.23  practicable for the employee to give notice of injury, the 
 69.24  employer shall be liable for the reasonable expense incurred by 
 69.25  or on behalf of the employee in providing the treatment, 
 69.26  medicines, supplies, and training.  If the employer has 
 69.27  knowledge of the injury and the necessity for treatment, the 
 69.28  employer's failure to tender the necessary treatment, medicines, 
 69.29  supplies, and training constitutes neglect or refusal.  The 
 69.30  employer shall also be liable for reasonable expense incurred by 
 69.31  the employee for necessary treatment to cure and relieve the 
 69.32  employee from the effects of occupational disease prior to the 
 69.33  time that the employee knew or should have known the nature of 
 69.34  the employee's disability and its relation to employment, and as 
 69.35  to such treatment subdivisions 2 and 3 shall not apply.  The 
 69.36  obligation to furnish treatment and appliances shall continue as 
 70.1   required to prevent further deterioration in the condition of 
 70.2   the employee or to maintain the existing status of the condition 
 70.3   whether or not healing is completed. 
 70.4      Subd. 2.  [CHOICE OF PRACTITIONER.] (a) If the employer has 
 70.5   notice of an injury and its relationship to the employment the 
 70.6   employer shall offer to the injured employee the choice of any 
 70.7   physician, chiropractor, psychologist, or podiatrist licensed to 
 70.8   practice and practicing in this state for treatment of the 
 70.9   injury.  By mutual agreement, the employee may have the choice 
 70.10  of any qualified practitioner not licensed in this state.  In 
 70.11  case of emergency, the employer may arrange for treatment 
 70.12  without tendering a choice.  After the emergency has passed the 
 70.13  employee shall be given the choice of attending practitioner at 
 70.14  the earliest opportunity.  The employee has the right to a 
 70.15  second choice of attending practitioner on notice to the 
 70.16  employer or its insurance carrier.  Any further choice shall be 
 70.17  by mutual agreement.  Partners and clinics are deemed to be one 
 70.18  practitioner.  Treatment by a practitioner on referral from 
 70.19  another practitioner is deemed to be treatment by one 
 70.20  practitioner. 
 70.21     (b) The employer is not liable for the expense of 
 70.22  unreasonable travel to obtain treatment. 
 70.23     Subd. 3.  [PRACTITIONER CHOICE UNRESTRICTED.] If the 
 70.24  employer fails to tender treatment as provided in subdivision 1 
 70.25  or choice of an attending practitioner as provided in 
 70.26  subdivision 2, the employee's right to choose the attending 
 70.27  practitioner is not restricted and the employer is liable for 
 70.28  the reasonable and necessary expense of the choice. 
 70.29     Subd. 4.  [CHRISTIAN SCIENCE.] Any employer may elect not 
 70.30  to be subject to the provisions for Christian Science treatment 
 70.31  provided for in this section by filing written notice of the 
 70.32  election with the department. 
 70.33     Subd. 5.  [ARTIFICIAL MEMBERS.] Liability for repair and 
 70.34  replacement of prosthetic devices is limited to the effects of 
 70.35  normal wear and tear.  Artificial members furnished at the end 
 70.36  of the healing period for cosmetic purposes only need not be 
 71.1   duplicated. 
 71.2      Subd. 6.  [TREATMENT REJECTED BY EMPLOYEE.] Unless the 
 71.3   employee has elected Christian Science treatment in lieu of 
 71.4   medical, surgical, hospital, or sanitarium treatment, no 
 71.5   compensation shall be payable for the death or disability of an 
 71.6   employee, if the death is caused, or insofar as the disability 
 71.7   may be aggravated, caused, or continued (1) by an unreasonable 
 71.8   refusal or neglect to submit to or follow any competent and 
 71.9   reasonable medical or surgical treatment, (2) or, in the case of 
 71.10  tuberculosis, by refusal or neglect to submit to or follow 
 71.11  hospital or sanitarium treatment when found by the department to 
 71.12  be necessary.  The right to compensation accruing during a 
 71.13  period of refusal or neglect under clause (2) shall be barred, 
 71.14  irrespective of whether disability was aggravated, caused, or 
 71.15  continued by the refusal. 
 71.16     Subd. 7.  [AWARD TO STATE EMPLOYEE.] When an award is made 
 71.17  by the department in behalf of a state employee, it shall file 
 71.18  duplicate copies of the award with the department of employee 
 71.19  relations.  Upon receipt of the copies of the award, the 
 71.20  department of employee relations shall promptly issue a voucher 
 71.21  in payment of the award from the proper appropriation, and shall 
 71.22  transmit one copy of the voucher and the award to the officer, 
 71.23  department, or agency by whom the affected employee is employed. 
 71.24     Subd. 8.  [REHABILITATION; PHYSICAL AND VOCATIONAL.] (a) 
 71.25  One of the primary purposes of this act is restoration of an 
 71.26  injured employee to gainful employment.  To this end, the 
 71.27  department shall employ a specialist in physical, medical, and 
 71.28  vocational rehabilitation. 
 71.29     (b) The specialist shall study the problems of 
 71.30  rehabilitation, both physical and vocational, and refer suitable 
 71.31  cases to the vocational rehabilitation unit of the department 
 71.32  for vocational evaluation and training.  The specialist shall 
 71.33  investigate and maintain a directory of rehabilitation 
 71.34  facilities, private and public, that are capable of rendering 
 71.35  competent rehabilitation service to seriously injured employees. 
 71.36     (c) The specialist shall review and evaluate reported 
 72.1   injuries for potential cases in which seriously injured 
 72.2   employees may be in need of physical and medical rehabilitation 
 72.3   and may confer with the injured employee, employer, insurance 
 72.4   carrier, or attending practitioner regarding treatment and 
 72.5   rehabilitation. 
 72.6      Sec. 44.  [176C.43] [WEEKLY COMPENSATION SCHEDULE.] 
 72.7      Subdivision 1.  [WHEN PAYMENT DUE.] If the injury causes 
 72.8   disability, an indemnity shall be due as wages commencing the 
 72.9   fourth calendar day from the commencement of the day the 
 72.10  scheduled work shift began, exclusive of Sundays only, except if 
 72.11  the employee works on Sunday, after the employee leaves work as 
 72.12  the result of the injury, and shall be payable weekly 
 72.13  thereafter, during the disability.  If the disability exists 
 72.14  after seven calendar days from the date the employee leaves work 
 72.15  as a result of the injury and only if it so exists, indemnity 
 72.16  shall also be due and payable for the first three calendar days, 
 72.17  exclusive of Sundays only, except if the employee works on 
 72.18  Sunday.  The weekly indemnity shall be as provided in this 
 72.19  section. 
 72.20     Subd. 2.  [TOTAL DISABILITY.] If the injury causes total 
 72.21  disability, the indemnity is two-thirds of the average weekly 
 72.22  earnings during the disability. 
 72.23     Subd. 3.  [PARTIAL DISABILITY.] If the injury causes 
 72.24  partial disability, during the partial disability, the 
 72.25  proportion of the weekly indemnity rate for total disability 
 72.26  that the actual wage loss of the injured employee bears to the 
 72.27  employee's average weekly wage at the time of the injury. 
 72.28     Subd. 4.  [TEMPORARY AND PARTIAL DISABILITY.] If the 
 72.29  disability caused by the injury is at times total and at times 
 72.30  partial, the weekly indemnity each total or partial disability 
 72.31  shall be in accordance with subdivisions 1 and 2, respectively. 
 72.32     Subd. 5.  [PAYMENT FOR FRACTIONAL WEEK.] If the disability 
 72.33  period involves a fractional week, indemnity shall be paid for 
 72.34  each day of the week, except Sundays only, at the rate of 
 72.35  one-sixth of the weekly indemnity. 
 72.36     Subd. 6.  [PAYMENT DURING TRAINING.] Temporary disability, 
 73.1   during which compensation shall be payable for loss of earnings, 
 73.2   shall include the period reasonably required for training in the 
 73.3   use of artificial members and appliances, and shall include the 
 73.4   period that the employee may be receiving instruction pursuant 
 73.5   to section 176C.61.  Temporary disability on account of 
 73.6   receiving instruction of the latter nature, and not otherwise 
 73.7   resulting from the injury, shall not be in excess of 40 weeks.  
 73.8   Such 40-week limitation does not apply to temporary disability 
 73.9   or travel or maintenance expense under section 176C.61 if the 
 73.10  department determines that additional training is warranted.  
 73.11  The necessity for additional training as authorized by the 
 73.12  department for any employee shall be subject to periodic review 
 73.13  and reevaluation. 
 73.14     Subd. 7.  [USE OF SICK LEAVE AND OTHER WAGES IN COMPUTING 
 73.15  BENEFITS.] Except as provided in this subdivision, no sick leave 
 73.16  benefits provided in connection with other employment or wages 
 73.17  received from other employment held by the employee when the 
 73.18  injury occurred may be considered in computing actual wage loss 
 73.19  from the employer in whose employ the employee sustained 
 73.20  injury.  Wages received from other employment held by the 
 73.21  employee when the injury occurred shall be considered in 
 73.22  computing actual wage loss from the employer in whose employ the 
 73.23  employee sustained the injury, if the employee's weekly 
 73.24  temporary disability benefits are calculated under section 
 73.25  176C.11, subdivision 2.  Wages received from the employer in 
 73.26  whose employ the employee sustained injury or from other 
 73.27  employment obtained after the injury occurred shall be 
 73.28  considered in computing benefits for temporary disability. 
 73.29     Subd. 8.  [RENEWED PERIOD OF DISABILITY.] (a) If an 
 73.30  employee has a renewed period of temporary disability commencing 
 73.31  more than two years after the date of injury and, except as 
 73.32  provided in paragraph (b), the employee returned to work for at 
 73.33  least ten days preceding the renewed period of disability, 
 73.34  payment of compensation for the new period of disability shall 
 73.35  be made as provided in paragraph (c). 
 73.36     (b) An employee need not return to work at least ten days 
 74.1   preceding a renewed period of temporary disability to obtain 
 74.2   benefits under subdivision 6 for rehabilitative training 
 74.3   commenced more than two years after the date of injury.  
 74.4   Benefits for rehabilitative training shall be made as provided 
 74.5   in paragraph (c). 
 74.6      (c)(1) If the employee was entitled to maximum weekly 
 74.7   benefits at the time of injury, payment for the renewed 
 74.8   temporary disability or the rehabilitative training shall be at 
 74.9   the maximum rate in effect at the commencement of the new period.
 74.10     (2) If the employee was entitled to less than the maximum 
 74.11  rate, the employee shall receive the same proportion of the 
 74.12  maximum which is in effect at the time of the commencement of 
 74.13  the renewed period or the rehabilitative training as the 
 74.14  employee's actual rate at the time of injury bore to the maximum 
 74.15  rate in effect at that time. 
 74.16     Subd. 9.  [COMPULSORY VACATION PERIOD.] During a compulsory 
 74.17  vacation period scheduled in accordance with a collective 
 74.18  bargaining agreement: 
 74.19     (a) Regardless of whether the employee's healing period has 
 74.20  ended, no employee at work immediately before the compulsory 
 74.21  vacation period may receive a temporary total disability benefit 
 74.22  for injury sustained while engaged in employment for that 
 74.23  employer. 
 74.24     (b) An employee receiving temporary partial disability 
 74.25  benefits immediately before the compulsory vacation period for 
 74.26  injury sustained while engaged in employment for that employer 
 74.27  shall continue to receive those benefits. 
 74.28     Sec. 45.  [176C.44] [MAXIMUM LIMITATIONS.] 
 74.29     Subdivision 1.  [SCOPE.] Section 176C.43 is subject to the 
 74.30  limitations in this section. 
 74.31     Subd. 2.  [PERMANENT TOTAL DISABILITY.] In case of 
 74.32  permanent total disability aggregate indemnity shall be weekly 
 74.33  indemnity for the period that the employee may live.  Total 
 74.34  impairment for industrial use of both eyes, or the loss of both 
 74.35  arms at or near the shoulder, or of both legs at or near the 
 74.36  hip, or of one arm at the shoulder and one leg at the hip, 
 75.1   constitutes permanent total disability.  This enumeration is not 
 75.2   exclusive, but in other cases the department shall find the 
 75.3   facts. 
 75.4      Subd. 3.  [PERMANENT PARTIAL DISABILITY.] For permanent 
 75.5   partial disability not covered by sections 176C.52 to 176C.56, 
 75.6   the aggregate number of weeks of indemnity shall bear the 
 75.7   relation to 1,000 weeks that the nature of the injury bears to 
 75.8   one causing permanent total disability and shall be payable at 
 75.9   the rate of two-thirds of the average weekly earnings of the 
 75.10  employee, the earnings to be computed as provided in section 
 75.11  176C.11.  The weekly indemnity shall be in addition to 
 75.12  compensation for the healing period and shall be for the period 
 75.13  that the employee may live, not to exceed 1,000 weeks. 
 75.14     Subd. 4.  [CERTAIN PERMANENT DISABILITIES.] If the 
 75.15  permanent disability is covered by sections 176C.52, 176C.53, 
 75.16  and 176C.55, those sections shall govern; but in no case shall 
 75.17  the percentage of permanent total disability be taken as more 
 75.18  than 100 percent. 
 75.19     Subd. 5.  [SOCIAL SECURITY REDUCTION.] When it is 
 75.20  determined that periodic benefits granted by the federal social 
 75.21  security act are paid to the employee because of disability, the 
 75.22  benefits payable under this act shall be reduced as follows: 
 75.23     (a) For each dollar that the total monthly benefits payable 
 75.24  under this act, excluding attorney fees and costs, plus the 
 75.25  monthly benefits payable under the social security act for 
 75.26  disability exceed 80 percent of the employee's average current 
 75.27  earnings as determined by the social security administration, 
 75.28  the benefits payable under this act shall be reduced by the same 
 75.29  amount so that the total benefits payable shall not exceed 80 
 75.30  percent of the employee's average current earning.  However, no 
 75.31  total benefit payable under this act and under the federal 
 75.32  social security act may be reduced to an amount less than the 
 75.33  benefit payable under this act. 
 75.34     (b) No reduction under this section shall be made because 
 75.35  of an increase granted by the social security administration as 
 75.36  a cost of living adjustment. 
 76.1      (c) Failure of the employee, except for excusable neglect, 
 76.2   to report social security disability payments within 30 days 
 76.3   after written request shall allow the employer or insurance 
 76.4   carrier to reduce weekly compensation benefits payable under 
 76.5   this act by 75 percent.  Compensation benefits otherwise payable 
 76.6   shall be reimbursed to the employee after reporting. 
 76.7      (d) The employer or insurance carrier making a reduction 
 76.8   under this section shall report to the department the reduction 
 76.9   and as requested by the department, furnish to the department 
 76.10  satisfactory proof of the basis for the reduction. 
 76.11     (e) The reduction prescribed by this section shall be 
 76.12  allowed only as to payments made on or after July 1, 1980, and 
 76.13  shall be computed on the basis of payments made for temporary 
 76.14  total, temporary partial, permanent total, and permanent partial 
 76.15  disability. 
 76.16     (f) No reduction shall take into account payments made 
 76.17  under the social security act to dependents of an employee. 
 76.18     Subd. 6.  [EARNING CAPACITY.] If an injured employee 
 76.19  claiming compensation for disability under subdivision 3 or 4 
 76.20  has returned to work for the employer for whom the employee 
 76.21  worked at the time of the injury, the permanent disability award 
 76.22  shall be based upon the physical limitations resulting from the 
 76.23  injury without regard to loss of earning capacity unless the 
 76.24  actual wage loss in comparison with earnings at the time of 
 76.25  injury equals or exceeds 15 percent. 
 76.26     Subd. 7.  [AWARD; REOPENING AND REDETERMINATION.] If, 
 76.27  during the period set forth in section 176C.17, subdivision 11, 
 76.28  the employment relationship is terminated by the employer at the 
 76.29  time of the injury, or by the employee because the employee's 
 76.30  physical or mental limitations prevent continuing in the 
 76.31  employment, or if during the period a wage loss of 15 percent or 
 76.32  more occurs, the department may reopen and redetermine any award 
 76.33  taking into account loss of earning capacity. 
 76.34     Subd. 8.  [DETERMINATION OF WAGE LOSS.] The determination 
 76.35  of wage loss shall not take into account any period during which 
 76.36  benefits are payable for temporary disability. 
 77.1      The determination of wage loss shall not take into account 
 77.2   any period during which reemployment insurance or unemployment 
 77.3   compensation benefits are paid. 
 77.4      For the purpose of determining wage loss, payment of 
 77.5   benefits for permanent partial disability shall not be 
 77.6   considered payment of wages. 
 77.7      Wage loss shall be determined on wages, as defined in 
 77.8   section 176C.11.  Percentage of wage loss shall be calculated on 
 77.9   the basis of actual average wages over a period of at least 13 
 77.10  weeks. 
 77.11     For purposes of subdivisions 7, 8, and 9, if the employer 
 77.12  in good faith makes an offer of employment which is refused by 
 77.13  the employee without reasonable cause, the employee is 
 77.14  considered to have returned to work with the earnings the 
 77.15  employee would have received had it not been for the refusal. 
 77.16     Subd. 9.  [PERMANENT PARTIAL; PHYSICAL LIMITATIONS.] In all 
 77.17  cases of permanent partial disability not covered by sections 
 77.18  176C.52 to 176C.56, whether or not the employee has returned to 
 77.19  work, the permanent partial disability shall not be less than 
 77.20  that imposed by the physical limitations. 
 77.21     Sec. 46.  [176C.45] [BENEFITS PAYABLE TO MINORS; HOW PAID.] 
 77.22     Compensation and death benefit payable to an employee or 
 77.23  dependent who was a minor when the right began to accrue, may, 
 77.24  in the discretion of the department, be ordered paid to a bank, 
 77.25  trust company, trustee, parent or guardian, for the use of the 
 77.26  employee or dependent as may be found best calculated to 
 77.27  conserve the interests of the employee or dependent.  The 
 77.28  employee or dependent shall be entitled to receive payments, in 
 77.29  the aggregate, at a rate not less than that applicable to 
 77.30  payments of primary compensation for total disability or death 
 77.31  benefit as accruing from the person's 18th birthday. 
 77.32     Sec. 47.  [176C.46] [DEATH BENEFIT.] 
 77.33     If death proximately results from the injury and the 
 77.34  deceased leaves a person wholly dependent upon the deceased for 
 77.35  support, the death benefit shall equal four times the average 
 77.36  annual earnings of the deceased, but when added to the 
 78.1   disability indemnity paid and due at the time of death, it shall 
 78.2   not exceed two-thirds of weekly wage for the number of weeks set 
 78.3   out in section 176C.44, subdivision 3. 
 78.4      Sec. 48.  [176C.47] [DEATH BENEFIT, CONTINUED.] 
 78.5      If death occurs to an injured employee other than as a 
 78.6   proximate result of the injury, before disability indemnity 
 78.7   ceases, death benefit and burial expense allowance shall be as 
 78.8   follows: 
 78.9      (1) Where the injury proximately causes permanent total 
 78.10  disability, they shall be the same as if the injury had caused 
 78.11  death, except that the burial expense allowance shall be 
 78.12  included in the items subject to the limitation stated in 
 78.13  section 176C.46.  The amount available shall be applied toward 
 78.14  burial expense before any is applied toward death benefit.  If 
 78.15  there are no surviving dependents the amount payable to 
 78.16  dependents shall be paid, as provided in section 176C.49, 
 78.17  subdivision 5, paragraph (b), to the fund created under section 
 78.18  176C.65. 
 78.19     (2) Where the injury proximately causes permanent partial 
 78.20  disability, the unaccrued compensation shall first be applied 
 78.21  toward funeral expenses, not to exceed the amount specified in 
 78.22  section 176C.50, any remaining sum shall be paid to dependents, 
 78.23  as provided in this section and sections 176C.46 and 176C.48, 
 78.24  and there shall be no liability for any other payments.  All 
 78.25  computations under this clause shall take into consideration the 
 78.26  present value of future payments.  If there are no surviving 
 78.27  dependents the amount payable to dependents shall be paid, as 
 78.28  provided in section 176C.49, subdivision 5, paragraph (b), to 
 78.29  the fund created under section 176C.65. 
 78.30     Sec. 49.  [176C.475] [DEATH BENEFIT; VARIOUS GOVERNMENT 
 78.31  PERSONNEL.] 
 78.32     Subdivision 1.  [SPECIAL BENEFIT.] (a) If the deceased 
 78.33  employee is a law enforcement officer, correctional officer, 
 78.34  firefighter, rescue squad member, national guard member, or 
 78.35  state defense force member on state active duty as described in 
 78.36  section 176C.07, subdivision 11, or if a deceased person is an 
 79.1   employee or volunteer performing emergency government activities 
 79.2   during a state of emergency, who sustained an accidental injury 
 79.3   so that benefits are payable under section 176C.46 or 176C.47, 
 79.4   clause (1), the department shall voucher and pay a sum equal to 
 79.5   75 percent of the primary death benefit as of the date of death, 
 79.6   but not less than $50,000 to the persons wholly dependent upon 
 79.7   the deceased.  For purposes of this subdivision, dependency 
 79.8   shall be determined under sections 176C.49 and 176C.51. 
 79.9      (b) The department shall reduce the amount of the special 
 79.10  death benefit required to be paid under paragraph (a) by the 
 79.11  amount received upon submittal of a claim paid under United 
 79.12  States Code, title 42, section 3796. 
 79.13     Subd. 2.  [PAYMENTS TO DEPENDENTS.] (a) If there are more 
 79.14  than four persons who are wholly dependent upon the deceased 
 79.15  employee an additional benefit of $2,000 shall be paid for each 
 79.16  dependent in excess of four. 
 79.17     (b) If there is more than one person who is wholly 
 79.18  dependent upon the deceased employee, the benefits under this 
 79.19  section shall be apportioned among the dependents on the same 
 79.20  proportional basis as the primary death benefit. 
 79.21     (c) Notwithstanding subdivision 1, if there are partial 
 79.22  dependents of the deceased employee who are entitled to benefits 
 79.23  under this section, they shall be entitled to the portion of the 
 79.24  benefit determined under subdivision 1 that their partial 
 79.25  dependency benefit bears to the primary benefit payable to one 
 79.26  wholly dependent upon the deceased.  No payment to a partial 
 79.27  dependent shall be less than $1,000. 
 79.28     Subd. 3.  [DISPUTES.] In cases of dispute, dependents may 
 79.29  file applications as provided in section 176C.17, and sections 
 79.30  176C.17 to 176C.27 shall apply.  In such a case, if the claim 
 79.31  for a primary death benefit is compromised, any claim under this 
 79.32  section shall be compromised on the same proportional basis.  
 79.33  The attorney general shall represent the interests of the state 
 79.34  in cases of such dispute. 
 79.35     Subd. 4.  [MINORS.] Benefits due to minors under this 
 79.36  section may be paid as provided in section 176C.45. 
 80.1      Subd. 5.  [PROOF.] In administering this section the 
 80.2   department may require reasonable proof of birth, marriage, 
 80.3   relationship, or dependency. 
 80.4      Subd. 6.  [NOT TO AFFECT OTHER RIGHTS, BENEFITS, OR 
 80.5   COMPENSATION.] The compensation provided for in this section is 
 80.6   in addition to, and not exclusive of, any pension rights, death 
 80.7   benefits, or other compensation otherwise payable by law. 
 80.8      Subd. 7.  [DEFINITIONS.] As used in this section: 
 80.9      (a) "Correctional officer" means any person employed by the 
 80.10  state or any political subdivision as a guard or officer whose 
 80.11  principal duties are supervision and discipline of inmates at a 
 80.12  penal institution, prison, jail, house of correction, or other 
 80.13  place of penal detention. 
 80.14     (b) "Firefighter" means any person employed by the state or 
 80.15  any political subdivision as a member or officer of a fire 
 80.16  department or a member of a volunteer department, including the 
 80.17  state fire marshal and deputies or a member of a legally 
 80.18  organized rescue squad. 
 80.19     (c) "Peace officer" means any person employed by the state 
 80.20  or any political subdivision for the purpose of detecting and 
 80.21  preventing crime and enforcing laws or ordinances and who is 
 80.22  authorized to make arrests for violations of the laws or 
 80.23  ordinances the person is employed to enforce, whether that 
 80.24  enforcement authority extends to all laws or ordinances or is 
 80.25  limited to specific laws or ordinances. 
 80.26     (d) "Political subdivision" includes counties, 
 80.27  municipalities, and municipal corporations. 
 80.28     (e) "State" means the state of Minnesota and its 
 80.29  departments, divisions, boards, bureaus, commissions, 
 80.30  authorities, and colleges and universities. 
 80.31     Sec. 50.  [176C.48] [DEATH BENEFIT, CONTINUED.] 
 80.32     Subdivision 1.  [SCOPE.] If no one is wholly dependent upon 
 80.33  the deceased employee for support, partial dependency and death 
 80.34  benefits for the person shall be as provided in this section. 
 80.35     Subd. 2.  [PARENTS.] An unestranged surviving parent or 
 80.36  parents to whose support the deceased has contributed less than 
 81.1   $500 in the 52 weeks next preceding the injury causing death 
 81.2   shall receive a death benefit of $6,500.  If the parents are not 
 81.3   living together, the department shall divide this sum in the 
 81.4   proportion as it deems to be just, considering their ages and 
 81.5   other facts bearing on dependency. 
 81.6      Subd. 3.  [OTHER PARTIAL DEPENDENTS.] In all other cases 
 81.7   the death benefit shall be the sum that the department shall 
 81.8   determine to represent fairly and justly the aid to support 
 81.9   which the dependent might reasonably have anticipated from the 
 81.10  deceased employee but for the injury.  To establish anticipation 
 81.11  of support and dependency, it shall not be essential that the 
 81.12  deceased employee made any contribution to support.  The 
 81.13  aggregate benefits in such a case shall not exceed twice the 
 81.14  average annual earnings of the deceased or four times the 
 81.15  contributions of the deceased to the support of the dependents 
 81.16  during the year immediately preceding death, whichever amount is 
 81.17  the greater.  In no event shall the aggregate benefits in such a 
 81.18  case exceed the amount which would accrue to a person solely and 
 81.19  wholly dependent.  If there is more than one partial dependent 
 81.20  the weekly benefit shall be apportioned according to their 
 81.21  relative dependency.  The term "support" as used in sections 
 81.22  176C.42 to 176C.63 shall include contributions to the capital 
 81.23  fund of the dependents, for their necessary comfort. 
 81.24     Subd. 4.  [INSTALLMENT PAYMENTS.] A death benefit, other 
 81.25  than burial expenses, except as otherwise provided, shall be 
 81.26  paid in weekly installments corresponding in amounts to 
 81.27  two-thirds of the weekly earnings of the employee, until 
 81.28  otherwise ordered by the department. 
 81.29     Sec. 51.  [176C.49] [ADDITIONAL DEATH BENEFIT FOR CHILDREN, 
 81.30  STATE FUND.] 
 81.31     Subdivision 1.  [AMOUNT AND DURATION.] If the beneficiary 
 81.32  under section 176C.46 or 176C.47, clause (1), is the wife or 
 81.33  husband of the deceased employee and is wholly dependent for 
 81.34  support, an additional death benefit shall be paid from the 
 81.35  funds provided by subdivision 5 for each child by their marriage 
 81.36  who is living at the time of the death of the employee, and who 
 82.1   is likewise wholly dependent upon the employee for support.  The 
 82.2   payment shall commence at the time that primary death benefit 
 82.3   payments are completed, or if advancement of compensation has 
 82.4   been paid at the time when payments would normally have been 
 82.5   completed.  Payments shall continue at the rate of ten percent 
 82.6   of the surviving parent's weekly indemnity until the child's 
 82.7   18th birthday.  If the child is physically or mentally 
 82.8   incapacitated, the payments may be continued beyond the 18th 
 82.9   birthday but the payments may not continue for more than a total 
 82.10  of 15 years. 
 82.11     Subd. 2.  [CHILD DEFINED.] A child lawfully adopted by the 
 82.12  deceased employee and the surviving spouse, prior to the time of 
 82.13  the injury, and a child not the employee's by birth or adoption 
 82.14  but living with the employee as a member of the employee's 
 82.15  family at the time of the injury shall for the purpose of this 
 82.16  section be taken as a child by their marriage. 
 82.17     Subd. 3.  [SPOUSE AND CHILD DEPENDENTS.] If the employee 
 82.18  leaves a wife or husband wholly dependent and also a child or 
 82.19  children by a former marriage or adoption, likewise wholly 
 82.20  dependent, aggregate benefits shall be the same in amount as if 
 82.21  the children were the children of the surviving spouse, and the 
 82.22  entire benefit shall be apportioned to the dependents in the 
 82.23  amounts as the department shall determine to be just, 
 82.24  considering their ages and other facts bearing on dependency.  
 82.25  The benefit awarded to the surviving spouse shall not exceed 
 82.26  four times the average annual earnings of the deceased employee. 
 82.27     Subd. 4.  [DETERMINATION OF DEPENDENCY.] Dependency of any 
 82.28  child for the purposes of this section shall be determined 
 82.29  according to section 176C.51, subdivision 1, in like manner as 
 82.30  would be done if there was no surviving dependent parent. 
 82.31     Subd. 5.  [ADDITIONAL PAYMENT TO STATE.] (a) In each case 
 82.32  of injury resulting in death, the employer or insurer shall pay 
 82.33  into the state treasury the sum of $5,000. 
 82.34     (b) In addition to the payment required under paragraph 
 82.35  (a), in each case of injury resulting in death leaving no person 
 82.36  dependent for support, the employer or insurer shall pay into 
 83.1   the state treasury the amount of the death benefit otherwise 
 83.2   payable, minus any payment made under section 176C.48, 
 83.3   subdivision 2, in five equal annual installments with the first 
 83.4   installment due as of the date of death. 
 83.5      (c) In addition to the payment required under paragraph 
 83.6   (a), in each case of injury resulting in death, leaving one or 
 83.7   more persons partially dependent for support, the employer or 
 83.8   insurer shall pay into the state treasury an amount which, when 
 83.9   added to the sums paid or to be paid on account of partial 
 83.10  dependency and under section 176C.48, subdivision 2, shall equal 
 83.11  the death benefit payable to a person wholly dependent. 
 83.12     (d) The payment into the state treasury shall be made in 
 83.13  all such cases regardless of whether the dependents or personal 
 83.14  representatives of the deceased employee commence action against 
 83.15  a third party under section 176C.29.  If the payment is not made 
 83.16  within 20 days after the department makes request therefore, any 
 83.17  sum payable shall bear interest at the rate of seven percent per 
 83.18  year. 
 83.19     (e) The adjustments in compensation provided in sections 
 83.20  176C.57, 176C.58, and 176C.60, do not apply to payments made 
 83.21  under this section. 
 83.22     Subd. 6.  [PAYMENT OF FUNDS.] The department may award the 
 83.23  additional benefits payable under this section to the surviving 
 83.24  parent of the child, to the child's guardian or to another 
 83.25  person, bank, or trust company for the child's use as may be 
 83.26  found best calculated to conserve the interest of the child.  In 
 83.27  the case of death of a child while benefits are still payable 
 83.28  there shall be paid the reasonable expense for burial, not 
 83.29  exceeding $1,500. 
 83.30     Subd. 7.  [DEPOSIT IN FUND.] All payments received under 
 83.31  this section shall be deposited in the fund established by 
 83.32  section 176C.65. 
 83.33     Sec. 52.  [176C.50] [BURIAL EXPENSES.] 
 83.34     In all cases where death of an employee proximately results 
 83.35  from the injury the employer or insurer shall pay the reasonable 
 83.36  expense for burial, not exceeding $4,000. 
 84.1      Sec. 53.  [176C.51] [DEPENDENTS.] 
 84.2      Subdivision 1.  [ENTITLED TO BENEFITS.] (a) The following 
 84.3   persons are entitled to death benefits as if they are solely and 
 84.4   wholly dependent for support upon a deceased employee: 
 84.5      (1) a wife upon a husband with whom she is living at the 
 84.6   time of his death; 
 84.7      (2) a husband upon a wife with whom he is living at the 
 84.8   time of her death; or 
 84.9      (3) a child under the age of 18 years (or over that age, 
 84.10  but physically or mentally incapacitated from earning), upon the 
 84.11  parent with whom the child is living at the time of the death of 
 84.12  the parent, there being no surviving dependent parent. 
 84.13     (b) If a dependent who is entitled to death benefits under 
 84.14  this subdivision survives the deceased employee, all other 
 84.15  dependents shall be excluded.  The charging of any portion of 
 84.16  the support and maintenance of a child upon one of the parents, 
 84.17  or any voluntary contribution toward the support of a child by a 
 84.18  parent, or an obligation to support a child by a parent 
 84.19  constitutes living with the parent within the meaning of this 
 84.20  subdivision. 
 84.21     Subd. 2.  [NOT ENTITLED TO BENEFITS.] (a) No person shall 
 84.22  be considered a dependent unless a member of the family or a 
 84.23  spouse, or a divorced spouse who has not remarried, or lineal 
 84.24  descendant or ancestor, or brother or sister of the deceased 
 84.25  employee. 
 84.26     (b) If for eight years or more prior to the date of injury 
 84.27  a deceased employee has been a resident of the United States, it 
 84.28  shall be conclusively presumed that no person who has remained a 
 84.29  nonresident alien during that period is either totally or 
 84.30  partially dependent upon the employee for support. 
 84.31     (c) No person who is a nonresident alien shall be found to 
 84.32  be either totally or partially dependent on a deceased employee 
 84.33  for support who cannot establish dependency by proving 
 84.34  contributions from the deceased employee by written evidence or 
 84.35  tokens of the transfer of money, such as drafts, letters of 
 84.36  credit, microfilm or other copies of paid share drafts, canceled 
 85.1   checks, or receipts for the payment to any bank, express 
 85.2   company, United States post office, or other agency commercially 
 85.3   engaged in the transfer of funds from one country to another, 
 85.4   for transmission of funds on behalf of the deceased employee to 
 85.5   the nonresident alien claiming dependency.  This provision shall 
 85.6   not apply unless the employee has been continuously in the 
 85.7   United States for at least one year prior to the injury, and has 
 85.8   been remuneratively employed in the United States for at least 
 85.9   six months. 
 85.10     Subd. 3.  [DIVISION AMONG DEPENDENTS.] If there is more 
 85.11  than one person wholly or partially dependent, the death benefit 
 85.12  shall be divided between the dependents in the proportion that 
 85.13  the department determines to be just, considering their ages and 
 85.14  other facts bearing on dependency. 
 85.15     Subd. 4.  [DEPENDENCY AS OF THE DATE OF DEATH.] Questions 
 85.16  as to who is a dependent and the extent of the dependency shall 
 85.17  be determined as of the date of the death of the employee, and 
 85.18  the dependent's right to any death benefit becomes fixed at that 
 85.19  time, regardless of any subsequent change in conditions.  The 
 85.20  death benefit shall be directly recoverable by and payable to 
 85.21  the dependents entitled to it or their legal guardians or 
 85.22  trustees.  In case of the death of a dependent whose right to a 
 85.23  death benefit has become fixed, so much of the benefit as is 
 85.24  then unpaid is payable to the dependent's personal 
 85.25  representatives, unless the department determines that the 
 85.26  unpaid benefit shall be reassigned, under subdivision 6, and 
 85.27  paid to any other dependent who is physically or mentally 
 85.28  incapacitated or a minor.  A posthumous child is for the purpose 
 85.29  of this subdivision a dependent as of the date of death. 
 85.30     Subd. 5.  [WHEN NOT INTERESTED.] No dependent of an injured 
 85.31  employee shall be deemed a party in interest to any proceeding 
 85.32  by the employee to enforce the employee's claim for 
 85.33  compensation, nor with respect to the compromise of it by the 
 85.34  employee.  A compromise of all liability entered into by an 
 85.35  employee is binding upon the dependents, except that any 
 85.36  dependent of a deceased employee may submit the compromise for 
 86.1   review under section 176C.16, subdivision 1. 
 86.2      Subd. 6.  [DIVISION AMONG DEPENDENTS.] Benefits accruing to 
 86.3   a minor dependent child may be awarded to either parent in the 
 86.4   discretion of the department.  Notwithstanding subdivision 1, 
 86.5   the department may reassign the death benefit, in accordance 
 86.6   with their respective needs for it, between a surviving spouse 
 86.7   and children designated in subdivision 1 and section 176C.49. 
 86.8      Subd. 7.  [CERTAIN DEFENSE BARRED.] In proceedings for the 
 86.9   collection of primary death benefit or burial expense it shall 
 86.10  not be a defense that the applicant, either individually or as a 
 86.11  partner, was an employer of the deceased. 
 86.12     Sec. 54.  [176C.52] [PERMANENT PARTIAL DISABILITY 
 86.13  SCHEDULE.] 
 86.14     In cases included in the following schedule of permanent 
 86.15  partial disabilities indemnity shall be paid for the healing 
 86.16  period, and in addition, for the period specified, at the rate 
 86.17  of two-thirds of the average weekly earnings of the employee, to 
 86.18  be computed as provided in section 176C.11: 
 86.19     (1) the loss of an arm at the shoulder, 500 weeks; 
 86.20     (2) the loss of an arm at the elbow, 450 weeks; 
 86.21     (3) the loss of a hand, 400 weeks; 
 86.22     (4) the loss of a palm where the thumb remains, 325 weeks; 
 86.23     (5) the loss of a thumb and its metacarpal bone, 160 weeks; 
 86.24     (6) the loss of a thumb at the proximal joint, 120 weeks; 
 86.25     (7) the loss of a thumb at the distal joint, 50 weeks; 
 86.26     (8) the loss of all fingers on one hand at their proximal 
 86.27  joints, 225 weeks; 
 86.28     (9) losses of fingers on each hand as follows: 
 86.29     (a) an index finger and its metacarpal bone, 60 weeks; 
 86.30     (b) an index finger at the proximal joint, 50 weeks; 
 86.31     (c) an index finger at the second joint, 30 weeks; 
 86.32     (d) an index finger at the distal joint, 12 weeks; 
 86.33     (e) a middle finger and its metacarpal bone, 45 weeks; 
 86.34     (f) a middle finger at the proximal joint, 35 weeks; 
 86.35     (g) a middle finger at the second joint, 20 weeks; 
 86.36     (h) a middle finger at the distal joint, eight weeks; 
 87.1      (i) a ring finger and its metacarpal bone, 26 weeks; 
 87.2      (j) a ring finger at the proximal joint, 20 weeks; 
 87.3      (k) a ring finger at the second joint, 15 weeks; 
 87.4      (l) a ring finger at the distal joint, six weeks; 
 87.5      (m) a little finger and its metacarpal bone, 28 weeks; 
 87.6      (n) a little finger at the proximal joint, 22 weeks; 
 87.7      (o) a little finger at the second joint, 16 weeks; 
 87.8      (p) a little finger at the distal joint, six weeks; 
 87.9      (10) the loss of a leg at the hip joint, 500 weeks; 
 87.10     (11) the loss of a leg at the knee, 425 weeks; 
 87.11     (12) the loss of a foot at the ankle, 250 weeks; 
 87.12     (13) the loss of the great toe with its metatarsal bone, 
 87.13  83-1/3 weeks; 
 87.14     (14) losses of toes on each foot as follows: 
 87.15     (a) a great toe at the proximal joint, 25 weeks; 
 87.16     (b) a great toe at the distal joint, 12 weeks; 
 87.17     (c) the second toe with its metatarsal bone, 25 weeks; 
 87.18     (d) the second toe at the proximal joint, eight weeks; 
 87.19     (e) the second toe at the second joint, six weeks; 
 87.20     (f) the second toe at the distal joint, four weeks; 
 87.21     (g) the third, fourth, or little toe with its metatarsal 
 87.22  bone, 20 weeks; 
 87.23     (h) the third, fourth, or little toe at the proximal joint, 
 87.24  six weeks; 
 87.25     (i) the third, fourth, or little toe at the second or 
 87.26  distal joint, four weeks; 
 87.27     (15) the loss of an eye by enucleation or evisceration, 275 
 87.28  weeks; 
 87.29     (16) total impairment of one eye for industrial use, 250 
 87.30  weeks; 
 87.31     (17) total deafness from accident or sudden trauma, 330 
 87.32  weeks; 
 87.33     (18) total deafness of one ear from accident or sudden 
 87.34  trauma, 55 weeks. 
 87.35     Sec. 55.  [176C.53] [MULTIPLE INJURY VARIATIONS.] 
 87.36     In case an injury causes more than one permanent disability 
 88.1   specified in sections 176C.44, subdivision 3, 176C.52, and 
 88.2   176C.55, the period for which indemnity shall be payable for 
 88.3   each additional equal or lesser disability shall be increased as 
 88.4   follows: 
 88.5      (1) In the case of impairment of both eyes, by 200 percent. 
 88.6      (2) In the case of disabilities on the same hand covered by 
 88.7   section 176C.52, clause (9), by 100 percent for the first equal 
 88.8   or lesser disability and by 150 percent for the second and third 
 88.9   equal or lesser disabilities. 
 88.10     (3) In the case of disabilities on the same foot covered by 
 88.11  section 176C.52, clause (14), by 20 percent. 
 88.12     (4) In all other cases, by 20 percent. 
 88.13     (5) The aggregate result as computed by applying clause 
 88.14  (1), and the aggregate result for members on the same hand or 
 88.15  foot as computed by applying clauses (2) and (3), shall each be 
 88.16  taken as a unit for applying clause (4) as between such units, 
 88.17  and as between such units and each other disability. 
 88.18     Sec. 56.  [176C.54] [INJURY TO DOMINANT HAND.] 
 88.19     If an injury to an employee's dominant hand causes a 
 88.20  disability specified in section 176C.52, clauses (1) to (9), or 
 88.21  amputation of more than two-thirds of the distal joint of a 
 88.22  finger, the period for which indemnity is payable for that 
 88.23  disability or amputation is increased by 25 percent.  This 
 88.24  increase is in addition to any other increase payable under 
 88.25  section 176C.53 but, for cases in which an injury causes more 
 88.26  than one permanent disability, the increase under this section 
 88.27  shall be based on the periods specified in section 176C.52, 
 88.28  clauses (1) to (9) for each disability and not on any increased 
 88.29  period specified in section 176C.53. 
 88.30     Sec. 57.  [176C.55] [APPLICATION OF SCHEDULES.] 
 88.31     Subdivision 1.  [AMPUTATION OF MEMBER.] Whenever amputation 
 88.32  of a member is made between any two joints mentioned in the 
 88.33  schedule in section 176C.52, the determined loss and resultant 
 88.34  indemnity for it shall bear the relation to the loss and 
 88.35  indemnity applicable in case of amputation at the joint next 
 88.36  nearer the body that the injury bears to one of amputation at 
 89.1   the joint nearer the body. 
 89.2      Subd. 2.  [PARALYSIS.] For the purposes of this schedule, 
 89.3   permanent and complete paralysis of any member shall be deemed 
 89.4   equivalent to the loss of it. 
 89.5      Subd. 3.  [OTHER INJURIES.] For all other injuries to the 
 89.6   members of the body or its faculties which are specified in this 
 89.7   schedule resulting in permanent disability, though the member is 
 89.8   not actually severed or the faculty totally lost, compensation 
 89.9   shall bear the relation to that named in this schedule that 
 89.10  disabilities bear to the disabilities named in this schedule.  
 89.11  Indemnity in those cases shall be determined by allowing weekly 
 89.12  indemnity during the healing period resulting from the injury 
 89.13  and the percentage of permanent disability resulting thereafter 
 89.14  as found by the department. 
 89.15     Sec. 58.  [176C.555] [OCCUPATIONAL DEAFNESS; DEFINITIONS.] 
 89.16     Subdivision 1.  [DEFINITIONS.] "Occupational deafness" 
 89.17  means permanent partial or permanent total loss of hearing of 
 89.18  one or both ears due to prolonged exposure to noise in 
 89.19  employment.  "Noise" means sound capable of producing 
 89.20  occupational deafness.  "Noisy employment" means employment in 
 89.21  the performance of which an employee is subjected to noise. 
 89.22     Subd. 2.  [BENEFITS PROHIBITED.] No benefits shall be 
 89.23  payable for temporary total or temporary partial disability 
 89.24  under this act for loss of hearing due to prolonged exposure to 
 89.25  noise. 
 89.26     Subd. 3.  [ACTUAL WAGE LOSS.] An employee who because of 
 89.27  occupational deafness is transferred by the employer to other 
 89.28  noisy employment and thereby sustains actual wage loss shall be 
 89.29  compensated at the rate provided in section 176C.43, subdivision 
 89.30  3, not exceeding $7,000 in the aggregate from all employers.  
 89.31  "Time of injury," "occurrence of injury," and "date of injury" 
 89.32  in such case mean the date of wage loss. 
 89.33     Subd. 4.  [TOTAL OCCUPATIONAL DEAFNESS.] Subject to the 
 89.34  limitations provided in this section, there shall be payable for 
 89.35  total occupational deafness of one ear, 36 weeks of 
 89.36  compensation; for total occupational deafness of both ears, 216 
 90.1   weeks of compensation; and for partial occupational deafness, 
 90.2   compensation shall bear the relation to that named in this 
 90.3   section that disabilities bear to the maximum disabilities 
 90.4   provided in this section.  In cases covered by this subdivision, 
 90.5   "time of injury," "occurrence of injury," or "date of injury" 
 90.6   shall, at the option of the employee, be the date of occurrence 
 90.7   of any of the following events to an employee: 
 90.8      (1) transfer to nonnoisy employment by an employer whose 
 90.9   employment has caused occupational deafness; 
 90.10     (2) the last day actually worked before retiring, 
 90.11  regardless of vacation pay or time, sick leave, or any other 
 90.12  benefit to which the employee is entitled; 
 90.13     (3) termination of the employer-employee relationship; or 
 90.14     (4) layoff, provided the layoff is complete and continuous 
 90.15  for six months. 
 90.16     Subd. 5.  [TIME FOR CLAIM.] No claim under subdivision 4 
 90.17  may be filed until seven consecutive days of removal from noisy 
 90.18  employment after the time of injury except that under 
 90.19  subdivision 4, clause (4), the seven consecutive days' period 
 90.20  may commence within the last two months of layoff. 
 90.21     Subd. 6.  [LIMITATIONS.] The limitation provisions in this 
 90.22  act shall control claims arising under this section.  The 
 90.23  limitation provisions shall run from the first date upon which 
 90.24  claim may be filed, or from the date of subsequent death, but no 
 90.25  claim shall accrue to a dependent unless an award has been 
 90.26  issued or hearing tests have been conducted by a competent 
 90.27  medical specialist after the employee has been removed from the 
 90.28  noisy environment for a period of two months. 
 90.29     Subd. 7.  [MINIMUM DURATION OF NOISY EMPLOYMENT.] No 
 90.30  payment shall be made to an employee under this section unless 
 90.31  the employee has worked in noisy employment for a total period 
 90.32  of at least 90 days for the employer from whom the employee 
 90.33  claims compensation. 
 90.34     Subd. 8.  [APPORTIONMENT OF DEAFNESS.] An employer is 
 90.35  liable for the entire occupational deafness to which the 
 90.36  employment provided by the employer has contributed.  If 
 91.1   previous deafness is established by a hearing test or other 
 91.2   competent evidence, whether or not the employee was exposed to 
 91.3   noise within the two months preceding such test, the employer is 
 91.4   not liable for previous loss so established nor for any loss for 
 91.5   which compensation has previously been paid or awarded. 
 91.6      Subd. 9.  [COORDINATION.] Any amount paid to an employee 
 91.7   under this section by any employer shall be credited against 
 91.8   compensation payable by any employer to the employee for 
 91.9   occupational deafness under subdivision 3 or 4.  No employee 
 91.10  shall in the aggregate receive greater compensation from any or 
 91.11  all employers for occupational deafness than that provided in 
 91.12  this section for total occupational deafness. 
 91.13     Subd. 10.  [TINNITUS.] No compensation may be paid for 
 91.14  tinnitus unless a hearing test demonstrates a compensable 
 91.15  hearing loss other than tinnitus.  For injuries occurring on or 
 91.16  after January 1, 1992, no compensation is payable for tinnitus. 
 91.17     Subd. 11.  [PERMANENT PARTIAL DISABILITY; LATE 
 91.18  CLAIMS.] Compensation under section 176C.66 for permanent 
 91.19  partial disability due to occupational deafness may be paid only 
 91.20  if the loss of hearing exceeds 20 percent of binaural hearing 
 91.21  loss. 
 91.22     Sec. 59.  [176C.56] [DISFIGUREMENT.] 
 91.23     Subdivision 1.  [POTENTIAL WAGE LOSS AWARD.] If an employee 
 91.24  is so permanently disfigured as to occasion potential wage loss, 
 91.25  the department may allow the sum that it deems just as 
 91.26  compensation for it, not exceeding the employee's average annual 
 91.27  earnings as defined in section 176C.11.  In determining the 
 91.28  potential for wage loss and the sum awarded, the department 
 91.29  shall take into account the age, education, training, and 
 91.30  previous experience and earnings of the employee, the employee's 
 91.31  present occupation and earnings and likelihood of future 
 91.32  suitable occupational change.  Consideration for disfigurement 
 91.33  allowance is confined to those areas of the body that are 
 91.34  exposed in the normal course of employment.  The department 
 91.35  shall also take into account the appearance of the 
 91.36  disfigurement, its location, and the likelihood of its exposure 
 92.1   in occupations for which the employee is suited. 
 92.2      Subd. 2.  [RETURN TO WORK.] Notwithstanding subdivision 1, 
 92.3   if an employee who claims compensation under this section 
 92.4   returns to work for the employer who employed the employee at 
 92.5   the time of the injury at the same or a higher wage, the 
 92.6   employee may not be compensated unless the employee shows that 
 92.7   the employee probably has lost or will lose wages due to the 
 92.8   disfigurement. 
 92.9      Sec. 60.  [176C.565] [TOXIC OR HAZARDOUS EXPOSURE; MEDICAL 
 92.10  EXAMINATION; CONDITIONS OF LIABILITY.] 
 92.11     Subdivision 1.  [EXPOSURE COMPENSATION.] When an employee 
 92.12  working subject to this act, as a result of exposure in the 
 92.13  course of employment over a period of time to toxic or hazardous 
 92.14  substances or conditions, develops any clinically observable 
 92.15  abnormality or condition which, on competent medical opinion, 
 92.16  predisposes or renders the employee in any manner differentially 
 92.17  susceptible to disability to such an extent that it is 
 92.18  inadvisable for the employee to continue employment involving 
 92.19  the exposure and the employee is discharged from or ceases to 
 92.20  continue the employment, and suffers wage loss by reason of the 
 92.21  discharge or cessation, the department may allow the sum that it 
 92.22  deems just as compensation, not exceeding $13,000.  If a 
 92.23  nondisabling condition may also be caused by toxic or hazardous 
 92.24  exposure not related to employment, and the employee has a 
 92.25  history of such exposure, compensation as provided by this 
 92.26  section shall not be allowed nor shall any other remedy for loss 
 92.27  of earning capacity.  In case of such a discharge prior to a 
 92.28  finding by the department that it is inadvisable for the 
 92.29  employee to continue in the employment and if it is reasonably 
 92.30  probable that continued exposure would result in disability, the 
 92.31  liability of the employer who so discharges the employee is 
 92.32  primary, and the liability of the employer's insurer is 
 92.33  secondary, under the same procedure and to the same effect as 
 92.34  provided by section 176C.62. 
 92.35     Subd. 2.  [PHYSICAL EXAMINATION.] Upon application of an 
 92.36  employer or employee, the department may direct any employee of 
 93.1   the employer or an employee who, in the course of employment, 
 93.2   has been exposed to toxic or hazardous substances or conditions, 
 93.3   to submit to examination by a physician or physicians appointed 
 93.4   by the department to determine whether the employee has 
 93.5   developed any abnormality or condition under subdivision 1, and 
 93.6   its degree.  The cost of the medical examination shall be borne 
 93.7   by the person making the application.  The results of the 
 93.8   examination shall be submitted by the physician to the 
 93.9   department, which shall submit copies of the reports to the 
 93.10  employer and employee, who shall have opportunity to rebut the 
 93.11  reports provided request for the opportunity is made to the 
 93.12  department within ten days from the mailing of the report to the 
 93.13  parties.  The department shall make its findings as to whether 
 93.14  it is inadvisable for the employee to continue employment. 
 93.15     Subd. 3.  [REFUSAL TO SUBMIT TO EXAM.] If an employee 
 93.16  refuses to submit to the examination after direction by the 
 93.17  commission, or a member of it or the department or a 
 93.18  departmental examiner, or in any way obstructs the examination, 
 93.19  the employee's right to compensation under this section shall be 
 93.20  barred. 
 93.21     Subd. 4.  [WORK DURATION REQUIRED FOR COMPENSATION.] No 
 93.22  payment shall be made to an employee under this section unless 
 93.23  the employee has worked for a reasonable period of time for the 
 93.24  employer from whom the employee claims compensation for exposure 
 93.25  to toxic or hazardous conditions. 
 93.26     Subd. 5.  [ESTOPPED.] Payment of a benefit under this 
 93.27  section to an employee shall estop the employee from further 
 93.28  recovery whatsoever from any employer under this section. 
 93.29     Sec. 61.  [176C.57] [VIOLATIONS OF SAFETY PROVISIONS, 
 93.30  PENALTY.] 
 93.31     If injury is caused by the failure of the employer to 
 93.32  comply with any statute or any lawful order of the department, 
 93.33  compensation and death benefits provided in this act shall be 
 93.34  increased 15 percent but the total increase may not exceed 
 93.35  $15,000.  Failure of an employer to reasonably enforce 
 93.36  compliance by employees with that statute or order of the 
 94.1   department constitutes failure by the employer to comply with 
 94.2   that statute or order. 
 94.3      Sec. 62.  [176C.58] [DECREASED COMPENSATION.] 
 94.4      If injury is caused by the failure of the employee to use 
 94.5   safety devices which are provided in accordance with any statute 
 94.6   or lawful order of the department and are adequately maintained, 
 94.7   and the use of which is reasonably enforced by the employer, or 
 94.8   if injury results from the employee's failure to obey any 
 94.9   reasonable rule adopted and reasonably enforced by the employer 
 94.10  for the safety of the employee and of which the employee has 
 94.11  notice, or if injury results from the intoxication of the 
 94.12  employee by alcohol beverages or use of a controlled substance, 
 94.13  the compensation and death benefit provided in this chapter 
 94.14  shall be reduced 15 percent but the total reduction may not 
 94.15  exceed $15,000. 
 94.16     Sec. 63.  [176C.59] [PREEXISTING DISABILITY; INDEMNITY.] 
 94.17     Subdivision 1.  [SECOND INJURY; PAYMENT AMOUNT.] If an 
 94.18  employee has at the time of injury a permanent disability which 
 94.19  if it had resulted from the injury would have entitled the 
 94.20  employee to indemnity for 200 weeks and, as a result of the 
 94.21  injury, incurs further permanent disability which entitles the 
 94.22  employee to indemnity for 200 weeks, the employee shall be paid 
 94.23  additional compensation from the funds provided in this section 
 94.24  equivalent to the amount which would be payable for the previous 
 94.25  disability if it had resulted from the injury or the amount 
 94.26  which is payable for the further disability, whichever is less.  
 94.27  If the disabilities result in permanent total disability, the 
 94.28  additional compensation shall be in an amount that will complete 
 94.29  the payments which would have been due had the permanent total 
 94.30  disability resulted from the injury.  This additional 
 94.31  compensation accrues from, and may not be paid to any person 
 94.32  before, the end of the period for which compensation for 
 94.33  permanent disability resulting from the injury is payable by the 
 94.34  employer, and is subject to section 176C.32, subdivisions 2 and 
 94.35  3.  No compromise agreement of liability for this additional 
 94.36  compensation may provide for any lump sum payment.  A compromise 
 95.1   order issued under section 176C.16, subdivision 1, may not be 
 95.2   admitted as evidence in any action or proceeding for benefits 
 95.3   compensable under this section. 
 95.4      Subd. 2.  [PAYMENT TO STATE.] In the case of the loss or of 
 95.5   the total impairment of a hand, arm, foot, leg, or eye, the 
 95.6   employer shall pay $7,000 into the state treasury.  The payment 
 95.7   shall be made in all those cases regardless of whether the 
 95.8   employee, the employee's dependent, or personal representative 
 95.9   commences action against a third party as provided in section 
 95.10  176C.29. 
 95.11     Subd. 3.  [DEPOSIT IN SUPPLEMENTAL FUND.] All payments 
 95.12  received under this section shall be deposited in the fund 
 95.13  established by section 176C.65. 
 95.14     Sec. 64.  [176C.60] [MINOR ILLEGALLY EMPLOYED; 
 95.15  COMPENSATION.] 
 95.16     Subdivision 1.  [AMOUNT.] Compensation and death benefits 
 95.17  shall be treble the amount otherwise recoverable if the injured 
 95.18  employee is a minor, and at the time of the injury is illegally 
 95.19  employed, required, suffered, or permitted to work. 
 95.20     Subd. 2.  [UNLAWFULLY ISSUED CERTIFICATE.] If the employer 
 95.21  is misled in employing a minor illegally because of fraudulent 
 95.22  written evidence of age presented by the minor, the increased 
 95.23  compensation provided by this section shall not be paid to the 
 95.24  employee, but shall be paid into the fund established by section 
 95.25  176C.65. 
 95.26     Subd. 3.  [LIABILITY FOR LOSS OF WAGE.] If the amount 
 95.27  recoverable under this section for temporary disability is less 
 95.28  than the actual loss of wage sustained by the minor employee, 
 95.29  then liability shall exist for the loss of wage. 
 95.30     Subd. 4.  [AGENCY OR PUBLISHER.] Subdivisions 1 to 3 shall 
 95.31  not apply to employees as defined in section 176C.07, 
 95.32  subdivision 8, if the agency or publisher shall establish by 
 95.33  affirmative proof that at the time of the injury the employee 
 95.34  was not employed with the actual or constructive knowledge of 
 95.35  the agency or publisher. 
 95.36     Subd. 5.  [CONTRACTOR OR SUBCONTRACTOR.] This section does 
 96.1   not apply to liability arising under section 176C.06 unless the 
 96.2   employer sought to be charged knew or should have known that the 
 96.3   minor was illegally employed by the contractor or subcontractor. 
 96.4      Subd. 6.  [MAXIMUM AMOUNT OF INCREASED COMPENSATION.] The 
 96.5   increased compensation or increased death benefits recoverable 
 96.6   under subdivision 1 may not exceed $7,500. 
 96.7      Sec. 65.  [176C.61] [INDEMNITY UNDER REHABILITATION LAW.] 
 96.8      Subdivision 1.  [TRAVEL AND OTHER EXPENSES.] An employee 
 96.9   who is entitled to receive and has received compensation under 
 96.10  this act, and who is entitled to and is receiving instructions 
 96.11  under the vocational rehabilitation act, and amendments to it, 
 96.12  Public Law Number 78-113, as administered by the state in which 
 96.13  the employee resides or in which the employee resided at the 
 96.14  time of becoming physically handicapped, shall, in addition to 
 96.15  other indemnity, be paid the actual and necessary expenses of 
 96.16  travel and, if the employee receives instructions elsewhere than 
 96.17  at the place of residence, the actual and necessary costs of 
 96.18  maintenance, during rehabilitation, subject to the following 
 96.19  conditions and limitations: 
 96.20     (a) The employee must undertake the course of instruction 
 96.21  within 60 days from the date when the employee has sufficiently 
 96.22  recovered from the injury to permit so doing, or as soon 
 96.23  thereafter as the officer or agency having charge of the 
 96.24  instruction shall provide opportunity for the rehabilitation. 
 96.25     (b) The employee must continue in rehabilitation training 
 96.26  with such reasonable regularity as health and situation will 
 96.27  permit. 
 96.28     (c) The employee may not have expenses of travel and costs 
 96.29  of maintenance on account of training for a period in excess of 
 96.30  40 weeks in all, except as provided in section 176C.43, 
 96.31  subdivision 6. 
 96.32     Subd. 2.  [ADMINISTRATION.] The department shall determine 
 96.33  the rights and liabilities of the parties under this section in 
 96.34  like manner and with like effect as it does other issues under 
 96.35  compensation. 
 96.36     Subd. 3.  [PRIVATE REHABILITATION PROVIDER.] Nothing in 
 97.1   this section prevents an employer or insurance carrier from 
 97.2   providing an employee with the services of a private 
 97.3   rehabilitation provider if the employee voluntarily accepts 
 97.4   those services. 
 97.5      Sec. 66.  [176C.62] [PRIMARY AND SECONDARY LIABILITY; 
 97.6   UNCHANGEABLE.] 
 97.7      In case of liability for the increased compensation or 
 97.8   increased death benefits provided for by section 176C.57, or 
 97.9   included in section 176C.60, the liability of the employer shall 
 97.10  be primary and the liability of the insurance carrier shall be 
 97.11  secondary.  In case proceedings are had before the department 
 97.12  for the recovery of such increased compensation or increased 
 97.13  death benefits the department shall set forth in its award the 
 97.14  amount and order of liability.  Execution shall not be issued 
 97.15  against the insurance carrier to satisfy any judgment covering 
 97.16  the increased compensation or increased death benefits until 
 97.17  execution has first been issued against the employer and has 
 97.18  been returned unsatisfied as to any part.  Any provision in an 
 97.19  insurance policy undertaking to guarantee primary liability or 
 97.20  to avoid secondary liability for the increased compensation or 
 97.21  increased death benefits is void.  If the employer has been 
 97.22  adjudged bankrupt, or has made an assignment for the benefit of 
 97.23  creditors, or if the employer, other than an individual, has 
 97.24  gone out of business or has been dissolved, or if a corporation, 
 97.25  its charter has been forfeited or revoked, the insurer shall be 
 97.26  liable for the payment of increased compensation and death 
 97.27  benefits without judgment or execution against the employer, but 
 97.28  without altering the primary liability of the employer. 
 97.29     Sec. 67.  [176C.63] [REFUNDS BY STATE.] 
 97.30     Whenever the department shall certify to the state 
 97.31  treasurer that excess payment has been made under section 
 97.32  176C.49, subdivision 5, or 176C.59, either because of mistake or 
 97.33  otherwise, the state treasurer shall within five days after 
 97.34  receipt of the certificate draw an order against the fund in the 
 97.35  state treasury into which the excess was paid, reimbursing the 
 97.36  payor of the excess payment, together with interest actually 
 98.1   earned on it if the excess payment has been on deposit for at 
 98.2   least six months. 
 98.3      Sec. 68.  [176C.64] [ATTORNEY GENERAL SHALL REPRESENT STATE 
 98.4   AND COMMISSION.] 
 98.5      Subdivision 1.  [ATTORNEY GENERAL REPRESENTATION.] Upon 
 98.6   request of the department of employee relations, the attorney 
 98.7   general shall appear on behalf of the state in proceedings upon 
 98.8   claims for its compensation against the state.  The attorney 
 98.9   general may compromise claims in the proceedings, but the 
 98.10  compromises are subject to review by the department of labor and 
 98.11  industry.  If the spouse of the deceased employee compromises 
 98.12  the employee's claim for a primary death benefit, the claim of 
 98.13  the children of the employee under section 176C.49 shall be 
 98.14  compromised on the same proportional basis, subject to approval 
 98.15  by the department.  If the persons entitled to compensation on 
 98.16  the basis of total dependency under section 176C.51, subdivision 
 98.17  1, compromise their claim, payments under section 176C.49, 
 98.18  subdivision 5, clause (a), shall be compromised on the same 
 98.19  proportional basis.  
 98.20     Upon request of the department of employee relations, the 
 98.21  attorney general shall appear on behalf of the state in 
 98.22  proceedings upon claims for compensation against the state.  The 
 98.23  attorney general shall represent the interests of the state in 
 98.24  proceedings under section 176C.49, 176C.59, or 176C.66.  The 
 98.25  attorney general may compromise claims in those proceedings, but 
 98.26  the compromises are subject to review by the department of labor 
 98.27  and industry.  Costs incurred by the attorney general in 
 98.28  prosecuting or defending any claim for payment into or out of 
 98.29  the work injury supplemental benefit fund under section 176C.65, 
 98.30  including expert witness and witness fees but not including 
 98.31  attorney fees or attorney travel expenses for services performed 
 98.32  under this subdivision, shall be paid from the work injury 
 98.33  supplemental benefit fund. 
 98.34     Subd. 2.  [REPRESENTATION IN VARIOUS ACTIONS.] In an action 
 98.35  to review an order or award of the commission, and upon any 
 98.36  appeal of it to the court of appeals, the attorney general shall 
 99.1   appear on behalf of the commission, whether any other party 
 99.2   defendant is represented or not, except that in actions brought 
 99.3   by the state the governor shall appoint an attorney to appear on 
 99.4   behalf of the commission. 
 99.5      Sec. 69.  [176C.65] [WORK INJURY SUPPLEMENTAL BENEFIT 
 99.6   FUND.] 
 99.7      Subdivision 1.  [DESCRIPTION OF FUND.] The money payable to 
 99.8   the state treasury under sections 176C.47, 176C.49, and 176C.59, 
 99.9   together with all accrued interest, shall constitute a fund to 
 99.10  be known as the "work injury supplemental benefit fund." 
 99.11     Subd. 2.  [FUND DESCRIPTION.] For proper administration of 
 99.12  the money available in the fund the department shall by order, 
 99.13  set aside in the state treasury suitable reserves to carry to 
 99.14  maturity the liability for benefits under sections 176C.43, 
 99.15  176C.49, 176C.59, and 176C.66. 
 99.16     Subd. 3.  [FUND BALANCE; PAYMENT REDUCTION.] If the balance 
 99.17  in the fund on any June 30 exceeds three times the amount paid 
 99.18  out of the fund during the fiscal year ending on that date, the 
 99.19  department shall by order direct an appropriate proportional 
 99.20  reduction of the payments into the fund under sections 176C.47, 
 99.21  176C.49, and 176C.59, so that the balance in the fund will 
 99.22  remain at three times the payments made in the preceding fiscal 
 99.23  year. 
 99.24     Sec. 70.  [176C.66] [PAYMENT OF CERTAIN BARRED CLAIMS.] 
 99.25     Subdivision 1.  [BARRED OCCUPATIONAL DISEASE CLAIMS.] If 
 99.26  there is an otherwise meritorious claim for occupational disease 
 99.27  barred solely by the statute of limitations under section 
 99.28  176C.17, subdivision 11, the department may in lieu of workers' 
 99.29  compensation benefits direct payment from the work injury 
 99.30  supplemental benefit fund under section 176C.65 of the 
 99.31  compensation and medical expenses that would otherwise be due, 
 99.32  based on the date of injury to or on behalf of the injured 
 99.33  employee.  The benefits shall be supplemental to the extent of 
 99.34  compensation liability to any disability or medical benefits 
 99.35  payable from any group insurance policy where the premium is 
 99.36  paid in whole or in part by any employer, or under any federal