as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to workers' compensation; modifying third 1.3 party liability provisions; requiring attorneys to 1.4 file statements of attorney fees; modifying special 1.5 compensation fund procedures; providing alternative 1.6 cost allocation accounts; amending Minnesota Statutes 1.7 1998, sections 176.011, subdivision 3; 176.061, 1.8 subdivisions 3, 5, 7, 10, and by adding a subdivision; 1.9 176.081, subdivision 1; 176.101, subdivisions 1, 2a, 1.10 and 8; 176.102, subdivision 11; 176.111, by adding a 1.11 subdivision; 176.129, subdivisions 2, 3, and 4; 1.12 176.231, subdivision 2; and 176.611, subdivision 2a. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. Minnesota Statutes 1998, section 176.011, 1.15 subdivision 3, is amended to read: 1.16 Subd. 3. [DAILY WAGE.] "Daily wage" means the daily wage 1.17 of the employee in the employment engaged in at the time of 1.18 injury but does not include tips and gratuities paid directly to 1.19 an employee by a customer of the employer and not accounted for 1.20 by the employee to the employer. If the amount of the daily 1.21 wage received or to be received by the employee in the 1.22 employment engaged in at the time of injury was irregular or 1.23 difficult to determine, or if the employment was part time, the 1.24 daily wage shall be computed by dividing the total amount of 1.25 wages, vacation pay, and holiday pay the employee actually 1.26 earned in such employment in the last 26 weeks, by the total 1.27 number of days in whichthe employee actually performed any of1.28the duties of such employmentsuch wages, vacation pay, and 1.29 holiday pay was earned, provided further, that in the case of 2.1 the construction industry, mining industry, or other industry 2.2 where the hours of work are affected by seasonal conditions, the 2.3 weekly wage shall not be less than five times the daily 2.4 wage. If the employee worked or earned less than a full day's 2.5 worth of wages, vacation pay, or holiday pay, the total amount 2.6 earned shall be divided by the corresponding proportion of that 2.7 day. Where board or allowances other than tips and gratuities 2.8 are made to an employee in addition to wages as a part of the 2.9 wage contract they are deemed a part of earnings and computed at 2.10 their value to the employee. In the case of persons performing 2.11 services for municipal corporations in the case of emergency, 2.12 then the normal working day shall be considered and computed as 2.13 eight hours, and in cases where such services are performed 2.14 gratis or without fixed compensation the daily wage of the 2.15 person injured shall, for the purpose of calculating 2.16 compensation payable under this chapter, be taken to be the 2.17 usual going wage paid for similar services in municipalities 2.18 where such services are performed by paid employees. If, at the 2.19 time of injury, the employee was regularly employed by two or 2.20 more employers, the employee's earnings in all such employments 2.21 shall be included in the computation of daily wage. 2.22 Sec. 2. Minnesota Statutes 1998, section 176.061, 2.23 subdivision 3, is amended to read: 2.24 Subd. 3. [ELECTION TO RECEIVE BENEFITS FROM EMPLOYER; 2.25 SUBROGATION.] If the employee or the employee's dependents elect 2.26 to receive benefits from the employer, or the special 2.27 compensation fund, the employer or the special compensation fund 2.28 has a right of indemnity or is subrogated to the right of the 2.29 employee or the employee's dependents to recover damages against 2.30 the other party. The employer, or the attorney general on 2.31 behalf of the special compensation fund, may bring legal 2.32 proceedings against the party and recover the aggregate amount 2.33 of benefits payable to or on behalf of the employee or the 2.34 employee's dependents, regardless of whether such benefits are 2.35 recoverable by the employee or the employee's dependents at 2.36 common law or by statute together with costs, disbursements, and 3.1 reasonable attorney's fees of the action. 3.2 If an action as provided in this chapter is prosecuted by 3.3 the employee, the employer, or the attorney general on behalf of 3.4 the special compensation fund, against the third person, and 3.5 results in judgment against the third person, or settlement by 3.6 the third person, the employer has no liability to reimburse or 3.7 hold the third person harmless on the judgment or settlement in 3.8 absence of a written agreement to do so executed prior to the 3.9 injury. 3.10 Sec. 3. Minnesota Statutes 1998, section 176.061, 3.11 subdivision 5, is amended to read: 3.12 Subd. 5. [CUMULATIVE REMEDIES.] If an injury or death for 3.13 which benefits are payable is caused under circumstances which 3.14 created a legal liability for damages on the part of a party 3.15 other than the employer, that party being then insured or 3.16 self-insured in accordance with this chapter, and the provisions 3.17 of subdivisions 1, 2, 3, and 4 do not apply, or the party other 3.18 than the employer is not then insured or self-insured as 3.19 provided by this chapter, legal proceedings may be taken by the 3.20 employee or the employee's dependents in accordance with clause 3.21 (a), or by the employer, or by the attorney general on behalf of 3.22 the special compensation fund, in accordance with clause (b), 3.23 against the other party to recover damages, notwithstanding the 3.24 payment of benefits by the employer or the special compensation 3.25 fund or their liability to pay benefits. 3.26 (a) If an action against the other party is brought by the 3.27 injured employee or the employee's dependents and a judgment is 3.28 obtained and paid or settlement is made with the other party, 3.29 the employer or the special compensation fund may deduct from 3.30 the benefits payable the amount actually received by the 3.31 employee or dependents or paid on their behalf in accordance 3.32 with subdivision 6. If the action is not diligently prosecuted 3.33 or if the court deems it advisable in order to protect the 3.34 interests of the employer or the special compensation fund, upon 3.35 application the court may grant the employer or the special 3.36 compensation fund the right to intervene in the action for the 4.1 prosecution of the action. If the injured employee or the 4.2 employee's dependents or any party on their behalf receives 4.3 benefits from the employer or the special compensation fund or 4.4 institutes proceedings to recover benefits or accepts from the 4.5 employer or the special compensation fund any payment on account 4.6 of the benefits, the employer or the special compensation fund 4.7 is subrogated to the rights of the employee or the employee's 4.8 dependents or has a right of indemnity against a third party 4.9 regardless of whether such benefits are recoverable by the 4.10 employee or the employee's dependents at common law or by 4.11 statute. The employer or the attorney general on behalf of the 4.12 special compensation fund may maintain a separate action or 4.13 continue an action already instituted. This action may be 4.14 maintained in the name of the employee or the names of the 4.15 employee's dependents, or in the name of the employer, or in the 4.16 name of the attorney general on behalf of the special 4.17 compensation fund, against the other party for the recovery of 4.18 damages. If the action is not diligently prosecuted by the 4.19 employer or the attorney general on behalf of the special 4.20 compensation fund, or if the court deems it advisable in order 4.21 to protect the interest of the employee, the court, upon 4.22 application, may grant to the employee or the employee's 4.23 dependents the right to intervene in the action for the 4.24 prosecution of the action. The proceeds of the action or 4.25 settlement of the action shall be paid in accordance with 4.26 subdivision 6. 4.27 (b) If an employer, being then insured, sustains damages 4.28 due to a change in workers' compensation insurance premiums, 4.29 whether by a failure to achieve a decrease or by a retroactive 4.30 or prospective increase, as a result of the injury or death of 4.31 an employee which was caused under circumstances which created a 4.32 legal liability for damages on the part of a party other than 4.33 the employer, the employer, notwithstanding other remedies 4.34 provided, may maintain an action against the other party for 4.35 recovery of the premiums. This cause of action may be brought 4.36 either by joining in an action described in clause (a) or by a 5.1 separate action. Damages recovered under this clause are for 5.2 the benefit of the employer and the provisions of subdivision 6 5.3 are not applicable to the damages. 5.4 (c) The third party is not liable to any person other than 5.5 the employee or the employee's dependents, or the employer, or 5.6 the special compensation fund, for any damages resulting from 5.7 the injury or death. 5.8 A coemployee working for the same employer is not liable 5.9 for a personal injury incurred by another employee unless the 5.10 injury resulted from the gross negligence of the coemployee or 5.11 was intentionally inflicted by the coemployee. 5.12 Sec. 4. Minnesota Statutes 1998, section 176.061, 5.13 subdivision 7, is amended to read: 5.14 Subd. 7. [MEDICAL TREATMENT.] The liability of an employer 5.15 or the special compensation fund for medical treatment or 5.16 payment of any other compensation under this chapter is not 5.17 affected by the fact that the employee was injured through the 5.18 fault or negligence of a third party, against whom the employee 5.19 may have a cause of action which may be sued under this chapter, 5.20 but the employer, or the attorney general on behalf of the 5.21 special compensation fund, has a separate additional cause of 5.22 action against the third party to recover any amounts paid for 5.23 medical treatment or for other compensation payable under this 5.24 section resulting from the negligence of the third 5.25 party regardless of whether such other compensation is 5.26 recoverable by the employee or the employee's dependents at 5.27 common law or by statute. This separate cause of action of the 5.28 employer or the attorney general on behalf of the special 5.29 compensation fund may be asserted in a separate action brought 5.30 by the employer or the attorney general on behalf of the special 5.31 compensation fund against the third party, or in the action 5.32 commenced by the employee or the employer or the attorney 5.33 general on behalf of the special compensation fund under this 5.34 chapter, but in the latter case the cause of action shall be 5.35 separately stated, the amount awarded in the action shall be 5.36 separately set out in the verdict, and the amount recovered by 6.1 suit or otherwise as reimbursement for medical expenses or other 6.2 compensation shall be for the benefit of the employer or the 6.3 special compensation fund to the extent that the employer or the 6.4 special compensation fund has paid or will be required to pay 6.5 compensation or pay for medical treatment of the injured 6.6 employee and does not affect the amount of periodic compensation 6.7 to be paid. 6.8 Sec. 5. Minnesota Statutes 1998, section 176.061, 6.9 subdivision 10, is amended to read: 6.10 Subd. 10. [INDEMNITY.] Notwithstanding the provisions of 6.11 chapter 65B or any other law to the contrary, an employer has a 6.12 right of indemnity for any compensation paid or payable pursuant 6.13 to this chapter, regardless of whether such compensation is 6.14 recoverable by the employee or the employee's dependents at 6.15 common law or by statute, including temporary total 6.16 compensation, temporary partial compensation, permanent partial 6.17 compensation, medical compensation, rehabilitation, death, and 6.18 permanent total compensation. 6.19 Sec. 6. Minnesota Statutes 1998, section 176.061, is 6.20 amended by adding a subdivision to read: 6.21 Subd. 11. [RIGHT OF CONTRIBUTION.] To the extent the 6.22 employer has fault, separate from the fault of the injured 6.23 employee to whom workers' compensation benefits are payable, any 6.24 nonemployer third party who is liable has a right of 6.25 contribution against the employer in an amount proportional to 6.26 the employer's percentage of fault but not to exceed the net 6.27 amount the employer recovered pursuant to subdivision 6, 6.28 paragraphs (c) and (d). The employer may avoid contribution 6.29 exposure by affirmatively waiving, before selection of the jury, 6.30 the right to recover workers' compensation benefits paid and 6.31 payable, thus removing compensation benefits from the damages 6.32 payable by any third party. 6.33 Procedurally, if the employer waives or settles the right 6.34 to recover workers' compensation benefits paid and payable, the 6.35 employee or the employee's dependents have the option to present 6.36 all common law or wrongful death damages whether they are 7.1 recoverable under the Workers' Compensation Act or not. 7.2 Following the verdict, the trial court will deduct any awarded 7.3 damages that are duplicative of workers' compensation benefits 7.4 paid or payable. 7.5 Sec. 7. Minnesota Statutes 1998, section 176.081, 7.6 subdivision 1, is amended to read: 7.7 Subdivision 1. [LIMITATION OF FEES.] (a) A fee for legal 7.8 services of 25 percent of the first $4,000 of compensation 7.9 awarded to the employee and 20 percent of the next $60,000 of 7.10 compensation awarded to the employee is the maximum permissible 7.11 fee and does not require approval by the commissioner, 7.12 compensation judge, or any other party. All fees, including 7.13 fees for obtaining medical or rehabilitation benefits, must be 7.14 calculated according to the formula under this subdivision, 7.15 except as otherwise provided in clause (1) or (2). 7.16 (1) The contingent attorney fee for recovery of monetary 7.17 benefits according to the formula in this section is presumed to 7.18 be adequate to cover recovery of medical and rehabilitation 7.19 benefit or services concurrently in dispute. Attorney fees for 7.20 recovery of medical or rehabilitation benefits or services shall 7.21 be assessed against the employer or insurer only if the attorney 7.22 establishes that the contingent fee is inadequate to reasonably 7.23 compensate the attorney for representing the employee in the 7.24 medical or rehabilitation dispute. In cases where the 7.25 contingent fee is inadequate the employer or insurer is liable 7.26 for attorney fees based on the formula in this subdivision or in 7.27 clause (2). 7.28 For the purposes of applying the formula where the employer 7.29 or insurer is liable for attorney fees, the amount of 7.30 compensation awarded for obtaining disputed medical and 7.31 rehabilitation benefits under sections 176.102, 176.135, and 7.32 176.136 shall be the dollar value of the medical or 7.33 rehabilitation benefit awarded, where ascertainable. 7.34 (2) The maximum attorney fee for obtaining a change of 7.35 doctor or qualified rehabilitation consultant, or any other 7.36 disputed medical or rehabilitation benefit for which a dollar 8.1 value is not reasonably ascertainable, is the amount charged in 8.2 hourly fees for the representation or $500, whichever is less, 8.3 to be paid by the employer or insurer. 8.4 (3) The fees for obtaining disputed medical or 8.5 rehabilitation benefits are included in the $13,000 limit in 8.6 paragraph (b). An attorney must concurrently file all 8.7 outstanding disputed issues. An attorney is not entitled to 8.8 attorney fees for representation in any issue which could 8.9 reasonably have been addressed during the pendency of other 8.10 issues for the same injury. 8.11 (b) All fees for legal services related to the same injury 8.12 are cumulative and may not exceed $13,000. If multiple injuries 8.13 are the subject of a dispute, the commissioner, compensation 8.14 judge, or court of appeals shall specify the attorney fee 8.15 attributable to each injury. 8.16 (c) If the employer or the insurer or the defendant is 8.17 given written notice of claims for legal services or 8.18 disbursements, the claim shall be a lien against the amount paid 8.19 or payable as compensation. Subject to the foregoing maximum 8.20 amount for attorney fees, up to 25 percent of the first $4,000 8.21 of periodic compensation awarded to the employee and 20 percent 8.22 of the next $60,000 of periodic compensation awarded to the 8.23 employee may be withheld from the periodic payments for attorney 8.24 fees or disbursements if the payor of the funds clearly 8.25 indicates on the check or draft issued to the employee for 8.26 payment the purpose of the withholding, the name of the 8.27 attorney, the amount withheld, and the gross amount of the 8.28 compensation payment before withholding. In no case shall fees 8.29 be calculated on the basis of any undisputed portion of 8.30 compensation awards. Allowable fees under this chapter shall be 8.31 based solely upon genuinely disputed claims or portions of 8.32 claims, including disputes related to the payment of 8.33 rehabilitation benefits or to other aspects of a rehabilitation 8.34 plan. The existence of a dispute is dependent upon a 8.35 disagreement after the employer or insurer has had adequate time 8.36 and information to take a position on liability. Neither the 9.1 holding of a hearing nor the filing of an application for a 9.2 hearing alone may determine the existence of a dispute. Except 9.3 where the employee is represented by an attorney in other 9.4 litigation pending at the department or at the office of 9.5 administrative hearings, a fee may not be charged after June 1, 9.6 1996, for services with respect to a medical or rehabilitation 9.7 issue arising under section 176.102, 176.135, or 176.136 9.8 performed before the employee has consulted with the department 9.9 and the department certifies that there is a dispute and that it 9.10 has tried to resolve the dispute. 9.11 (d) An attorney who is claiming legal fees for representing 9.12 an employee in a workers' compensation matter shall file a 9.13 statement of attorney fees with the commissioner, compensation 9.14 judge before whom the matter was heard, or workers' compensation 9.15 court of appeals on cases before the court. A copy of the 9.16 signed retainer agreement shall also be filed. The employee and 9.17 insurer shall receive a copy of the statement. The statement 9.18 shall be on a form prescribed by the commissioner and shall 9.19 report the number of hours spent on the case. 9.20 (e) Employers and insurers may not pay attorney fees or 9.21 wages for legal services of more than $13,000 per case. 9.22 (f) Each insurer and self-insured employer shall file 9.23 annual statements with the commissioner detailing the total 9.24 amount of legal fees and other legal costs incurred by the 9.25 insurer or employer during the year. The statement shall 9.26 include the amount paid for outside and in-house counsel, 9.27 deposition and other witness fees, and all other costs relating 9.28 to litigation. 9.29 (g) An attorney must file a statement of attorney fees 9.30 within 12 months of the date the attorney has submitted the 9.31 written notice specified in paragraph (c). If the attorney has 9.32 not filed a statement of attorney fees within the 12 months, the 9.33 attorney must send a renewed notice of lien to the insurer. If 9.34 12 months has elapsed since the last notice of lien has been 9.35 received by the insurer and no statement of attorney fees has 9.36 been filed, the insurer must release the withheld money to the 10.1 employee, except that before releasing the money to the 10.2 employee, the insurer must give the attorney 30 days written 10.3 notice of the pending release. The insurer must not release the 10.4 money if the attorney files a statement of attorney fees within 10.5 the 30 days. 10.6 Sec. 8. Minnesota Statutes 1998, section 176.101, 10.7 subdivision 1, is amended to read: 10.8 Subdivision 1. [TEMPORARY TOTAL DISABILITY.] (a) For 10.9 injury producing temporary total disability, the compensation is 10.10 66-2/3 percent of the weekly wage at the time of injury. 10.11 (b) (1) Commencing on October 1, 1995, the maximum weekly 10.12 compensation payable is $615 per week. 10.13 (2) The workers' compensation advisory council may consider 10.14 adjustment increases and make recommendations to the legislature. 10.15 (c) The minimum weekly compensation payable is $104 per 10.16 week or the injured employee's actual weekly wage, whichever is 10.17 less. 10.18 (d) Temporary total compensation shall be paid during the 10.19 period of disability subject to the cessation and recommencement 10.20 conditions in paragraphs (e) to (l). 10.21 (e) Temporary total disability compensation shall cease 10.22 when the employee returns to work. Except as otherwise provided 10.23 in section 176.102, subdivision 11, temporary total disability 10.24 compensation may only be recommenced following cessation under 10.25 this paragraph, paragraph (h), or paragraph (j) prior to payment 10.26 of 104 weeks of temporary total disability compensation and only 10.27 as follows: 10.28 (1) if temporary total disability compensation ceased 10.29 because the employee returned to work, it may be recommenced if 10.30 the employee is laid off or terminated for reasons other than 10.31 misconductwithin one year after returning to workif the layoff 10.32 or termination occurs prior to 90 days after the employee has 10.33 reached maximum medical improvement. Recommenced temporary 10.34 total disability compensation under this clause ceases when any 10.35 of the cessation events in paragraphs (e) to (l) occurs; or 10.36 (2) if temporary total disability compensation ceased 11.1 because the employee returned to work or ceased under paragraph 11.2 (h) or (j), it may be recommenced if the employee is medically 11.3 unable to continue at a job due to the injury. Where the 11.4 employee is medically unable to continue working due to the 11.5 injury, temporary total disability compensation may continue 11.6 until any of the cessation events in paragraphs (e) to (l) 11.7 occurs following recommencement. If an employee who has not yet 11.8 received temporary total disability compensation becomes 11.9 medically unable to continue working due to the injury after 11.10 reaching maximum medical improvement, temporary total disability 11.11 compensation shall commence and shall continue until any of the 11.12 events in paragraphs (e) to (l) occurs following commencement. 11.13 For purposes of commencement or recommencement under this clause 11.14 only, a new period of maximum medical improvement under 11.15 paragraph (j) begins when the employee becomes medically unable 11.16 to continue working due to the injury. Temporary total 11.17 disability compensation may not be recommenced under this clause 11.18 and a new period of maximum medical improvement does not begin 11.19 if the employee is not actively employed when the employee 11.20 becomes medically unable to work. All periods of initial and 11.21 recommenced temporary total disability compensation are included 11.22 in the 104-week limitation specified in paragraph (k). 11.23 (f) Temporary total disability compensation shall cease if 11.24 the employee withdraws from the labor market. Temporary total 11.25 disability compensation may be recommenced following cessation 11.26 under this paragraph only if the employee reenters the labor 11.27 market prior to 90 days after the employee reached maximum 11.28 medical improvement and prior to payment of 104 weeks of 11.29 temporary total disability compensation. Once recommenced, 11.30 temporary total disability ceases when any of the cessation 11.31 events in paragraphs (e) to (l) occurs. 11.32 (g) Temporary total disability compensation shall cease if 11.33 the total disability ends and the employee fails to diligently 11.34 search for appropriate work within the employee's physical 11.35 restrictions. Temporary total disability compensation may be 11.36 recommenced following cessation under this paragraph only if the 12.1 employee begins diligently searching for appropriate work within 12.2 the employee's physical restrictions prior to 90 days after 12.3 maximum medical improvement and prior to payment of 104 weeks of 12.4 temporary total disability compensation. Once recommenced, 12.5 temporary total disability compensation ceases when any of the 12.6 cessation events in paragraphs (e) to (l) occurs. 12.7 (h) Temporary total disability compensation shall cease if 12.8 the employee has been released to work without any physical 12.9 restrictions caused by the work injury. 12.10 (i) Temporary total disability compensation shall cease if 12.11 the employee refuses an offer of work that is consistent with a 12.12 plan of rehabilitation filed with the commissioner which meets 12.13 the requirements of section 176.102, subdivision 4, or, if no 12.14 plan has been filed, the employee refuses an offer of gainful 12.15 employment that the employee can do in the employee's physical 12.16 condition. Once temporary total disability compensation has 12.17 ceased under this paragraph, it may not be recommenced. 12.18 (j) Temporary total disability compensation shall cease 90 12.19 days after the employee has reached maximum medical improvement, 12.20 except as provided in section 176.102, subdivision 11, paragraph 12.21 (b). For purposes of this subdivision, the 90-day period after 12.22 maximum medical improvement commences on the earlier of: (1) 12.23 the date that the employee receives a written medical report 12.24 indicating that the employee has reached maximum medical 12.25 improvement; or (2) the date that the employer or insurer serves 12.26 the report on the employee and the employee's attorney, if any. 12.27 Once temporary total disability compensation has ceased under 12.28 this paragraph, it may not be recommenced except if the employee 12.29 returns to work and is subsequently medically unable to continue 12.30 working as provided in paragraph (e), clause (2). 12.31 (k) Temporary total disability compensation shall cease 12.32 entirely when 104 weeks of temporary total disability 12.33 compensation have been paid, except as provided in section 12.34 176.102, subdivision 11, paragraph (b). Notwithstanding 12.35 anything in this section to the contrary, initial and 12.36 recommenced temporary total disability compensation combined 13.1 shall not be paid for more than 104 weeks, regardless of the 13.2 number of weeks that have elapsed since the injury, except that 13.3 if the employee is in a retraining plan approved under section 13.4 176.102, subdivision 11, the 104 week limitation shall not apply 13.5 during the retraining, but is subject to the limitation before 13.6 the plan begins and after the plan ends. 13.7 (l) Paragraphs (e) to (k) do not limit other grounds under 13.8 law to suspend or discontinue temporary total disability 13.9 compensation provided under this chapter. 13.10 Sec. 9. Minnesota Statutes 1998, section 176.101, 13.11 subdivision 2a, is amended to read: 13.12 Subd. 2a. [PERMANENT PARTIAL DISABILITY.] (a) Compensation 13.13 for permanent partial disability is as provided in this 13.14 subdivision. Permanent partial disability must be rated as a 13.15 percentage of the whole body in accordance with rules adopted by 13.16 the commissioner under section 176.105. The percentage 13.17 determined pursuant to the rules must be multiplied by the 13.18 corresponding amount in the following table: 13.19 Impairment rating Amount 13.20 (percent) 13.21 0-25 $ 75,000 13.22 26-30 80,000 13.23 31-35 85,000 13.24 36-40 90,000 13.25 41-45 95,000 13.26 46-50 100,000 13.27 51-55 120,000 13.28 56-60 140,000 13.29 61-65 160,000 13.30 66-70 180,000 13.31 71-75 200,000 13.32 76-80 240,000 13.33 81-85 280,000 13.34 86-90 320,000 13.35 91-95 360,000 13.36 96-100 400,000 14.1 An employee may not receive compensation for more than a 100 14.2 percent disability of the whole body, even if the employee 14.3 sustains disability to two or more body parts. 14.4 (b) Permanent partial disability is payable upon cessation 14.5 of temporary total disability under subdivision 1. If the 14.6 employee wants payment in a lump sum, then the compensation must 14.7 be paid within 30 days. This lump sum payment may be discounted 14.8 to the present value calculated up to a maximum five percent 14.9 basis. If the employee does not choose to receive the 14.10 compensation in a lump sum, then the compensation is payable in 14.11 installments at the same intervals and in the same amount as the 14.12 employee's temporary total disability rate on the date of injury. 14.13 Permanent partial disability is not payable while temporary 14.14 total compensation is being paid. 14.15 Sec. 10. Minnesota Statutes 1998, section 176.101, 14.16 subdivision 8, is amended to read: 14.17 Subd. 8. [CESSATION OF BENEFITS.] Temporary total 14.18 disability payments shall cease at retirement. "Retirement" 14.19 means that a preponderance of the evidence supports a conclusion 14.20 that an employee has retired. The subjective statement of an 14.21 employee that the employee is not retired is not sufficient in 14.22 itself to rebut objective evidence of retirement but may be 14.23 considered along with other evidence. 14.24 For injuries occurring after January 1, 1984, an employee 14.25 who receives social security old age and survivors insurance 14.26 retirement benefits under the Social Security Act, Public Law 14.27 Number 98-21, as amended, is presumed retired from the labor 14.28 market.This presumption isFor injuries occurring after 14.29 October 1, 1999, an employee who receives any other 14.30 service-based government retirement pension is presumed retired 14.31 from the labor market. The term "service-based government 14.32 retirement pension" does not include disability-based government 14.33 pensions. These presumptions are rebuttable by a preponderance 14.34 of the evidence. 14.35 Sec. 11. Minnesota Statutes 1998, section 176.102, 14.36 subdivision 11, is amended to read: 15.1 Subd. 11. [RETRAINING; COMPENSATION.] (a) Retraining is 15.2 limited to 156 weeks. An employee who has been approved for 15.3 retraining may petition the commissioner or compensation judge 15.4 for additional compensation not to exceed 25 percent of the 15.5 compensation otherwise payable. If the commissioner or 15.6 compensation judge determines that this additional compensation 15.7 is warranted due to unusual or unique circumstances of the 15.8 employee's retraining plan, the commissioner may award 15.9 additional compensation in an amount not to exceed the 15.10 employee's request. This additional compensation shall cease at 15.11 any time the commissioner or compensation judge determines the 15.12 special circumstances are no longer present. 15.13 (b) If the employee is not employed during a retraining 15.14 plan that has been specifically approved under this section, 15.15 temporary total compensation is payable for up to 90 days after 15.16 the end of the retraining plan; except that, payment during the 15.17 90-day period is subject to cessation in accordance with section 15.18 176.101. If the employee is employed during the retraining plan 15.19 but earning less than at the time of injury, temporary partial 15.20 compensation is payable at the rate of 66-2/3 percent of the 15.21 difference between the employee's weekly wage at the time of 15.22 injury and the weekly wage the employee is able to earn in the 15.23 employee's partially disabled condition, subject to the maximum 15.24 rate for temporary total compensation. Temporary partial 15.25 compensation is not subject to the 225-week or 450-week 15.26 limitations provided by section 176.101, subdivision 2, during 15.27 the retraining plan, but is subject to those limitations before 15.28 and after the plan. 15.29 (c) Any request for retraining shall be filed with the 15.30 commissioner before104156 weeks of any combination of 15.31 temporary total or temporary partial compensation have been paid. 15.32 Retraining shall not be available after104156 weeks of any 15.33 combination of temporary total or temporary partial compensation 15.34 benefits have been paid unless the request for the retraining 15.35 has been filed with the commissioner prior to the time the10415.36 156 weeks of compensation have been paid. 16.1 (d) The employer or insurer must notify the employee in 16.2 writing of the104156 week limitation for filing a request for 16.3 retraining with the commissioner. This notice must be given 16.4 before 80 weeks of temporary total disability or temporary 16.5 partial disability compensation have been paid, regardless of 16.6 the number of weeks that have elapsed since the date of injury. 16.7 If the notice is not given before the 80 weeks, the period of 16.8 time within which to file a request for retraining is extended 16.9 by the number of days the notice is late, but in no event may a 16.10 request be filed later than 225 weeks after any combination of 16.11 temporary total disability or temporary partial disability 16.12 compensation have been paid. The commissioner may assess a 16.13 penalty of $25 per day that the notice is late, up to a maximum 16.14 penalty of $2,000, against an employer or insurer for failure to 16.15 provide the notice. The penalty is payable to the assigned risk 16.16 safety account. 16.17 Sec. 12. Minnesota Statutes 1998, section 176.111, is 16.18 amended by adding a subdivision to read: 16.19 Subd. 22. [PAYMENTS TO ESTATE; DEATH OF EMPLOYEE.] In 16.20 every case of death of an employee resulting from personal 16.21 injury arising out of and in the course of employment where 16.22 there are no persons entitled to monetary benefits of dependency 16.23 compensation, the employer shall pay to the estate of the 16.24 deceased employee the sum of $25,000. 16.25 Sec. 13. Minnesota Statutes 1998, section 176.129, 16.26 subdivision 2, is amended to read: 16.27 Subd. 2. [PAYMENTS TO FUND, DEATH.]In every case of death16.28of an employee resulting from personal injury arising out of and16.29in the course of employment where there are no persons entitled16.30to monetary benefits of dependency compensation, the employer16.31shall pay to the commissioner the sum of $25,000 for the benefit16.32of the special compensation fund.In every case of death of an 16.33 employee resulting from personal injury arising out of and in 16.34 the course of employment where there are no persons entitled to 16.35 at least $25,000 in monetary benefits of dependency 16.36 compensation, the employer shall pay to the commissioner for the 17.1 benefit of the special compensation fund the difference between 17.2 the amounts actually paid for the dependency benefits and 17.3 $25,000; but in no event shall the employer pay the commissioner 17.4 less than $5,000. 17.5 Sec. 14. Minnesota Statutes 1998, section 176.129, 17.6 subdivision 3, is amended to read: 17.7 Subd. 3. [PAYMENTS TO FUND, INJURY.] If an employee 17.8 suffers a personal injury resulting in permanent partial 17.9 disability, temporary total disability, temporary partial 17.10 disability, permanent total disability, or death and the 17.11 employee or the employee's dependents are entitled to 17.12 compensation under sections 176.101 or 176.111 the employer 17.13 shall pay to the commissioner a lump sum amount, without any 17.14 interest deduction, equal to 20 percent of the total 17.15 compensation payable. The rate under this subdivision shall be 17.16 adjusted as provided under subdivision 4a and applies to 17.17 injuries occurring after June 1, 1971, for payments made on or 17.18 after January 1, 1984. This payment is to be credited to the 17.19 special compensation fund and shall be in addition to any 17.20 compensation payments made by the employer under this chapter. 17.21 Payment shall be madeas soon as the amount is determined and17.22approved byand the completed assessment form shall be submitted 17.23 to the commissioner no later than April 1 and August 15 of the 17.24 same calendar year. 17.25 Sec. 15. Minnesota Statutes 1998, section 176.129, 17.26 subdivision 4, is amended to read: 17.27 Subd. 4. [TIME OF INJURY.] Subdivision 3 applies to all 17.28 workers' compensation payments, exclusive of medical costs, paid 17.29 under section 176.101 or 176.111 for an injury or death 17.30 occurring on or after June 1, 1971. 17.31 Payments made for personal injuries that occurred prior to 17.32 June 1, 1971, shall be reported to the special compensation fund 17.33 but shall not be assessedat the rate in effect on the date of17.34occurrence. 17.35 Sec. 16. Minnesota Statutes 1998, section 176.231, 17.36 subdivision 2, is amended to read: 18.1 Subd. 2. [INITIAL REPORT, WRITTEN REPORT.] Where 18.2 subdivision 1 requires an injury to be reported within 48 hours, 18.3 the employer may make an initial report by telephone, telegraph, 18.4 or personal notice, and file a written report of the injury 18.5 within seven days from its occurrence or within such time as the 18.6 commissioner of labor and industry designates. All written 18.7 reports of injuries required by subdivision 1 shall include the 18.8 date of injury, amounts of payments made, if any, and the date 18.9 of the first payment. The reports shall be on a form designed 18.10 by the commissioner, with a clear copy suitable for imaging to 18.11 the commissioner, one copy to the insurer, and one copy to the 18.12 employee. 18.13 The employer must detach and give the employee the second 18.14 page of the first report of injury titled "Minnesota Workers' 18.15 Compensation System Quick Reference Guide" at the time the 18.16 employee is given a copy of the first report of injury. 18.17 If an insurer or self-insurer repeatedly fails to pay 18.18 benefits within three days of the due date, pursuant to section 18.19 176.221, the insurer or self-insurer shall be ordered by the 18.20 commissioner to explain, in person, the failure to pay benefits 18.21 due in a reasonable time. If prompt payments are not thereafter 18.22 made, the commissioner shall refer the insurer or self-insurer 18.23 to the commissioner of commerce for action pursuant to section 18.24 176.225, subdivision 4. 18.25 Sec. 17. Minnesota Statutes 1998, section 176.611, 18.26 subdivision 2a, is amended to read: 18.27 Subd. 2a. [SETTLEMENT AND CONTINGENCY RESERVEALTERNATIVE 18.28 COST ALLOCATION ACCOUNT.] To reduce long-term costs, minimize 18.29 impairment to agency operations and budgets, and distribute risk 18.30 ofone-time catastrophicclaims, the commissioner of employee 18.31 relations shall maintain a separate account within the state 18.32 compensation revolving fund. The account shall be used to pay 18.33 for lump-sum or annuitized settlements, structured claim 18.34 settlements, andone-time large,legal,catastrophicmedical, 18.35 indemnity, or otherirregularclaim costs that mightotherwise18.36 pose a significant burden for agencies. The commissioner of 19.1 employee relations, with the approval of the commissioner of 19.2 finance, may establish criteria and procedures for payment from 19.3 the account on an agency's behalf. The commissioner of employee 19.4 relations may assess agencies on a reimbursement or premium 19.5 basis from time to time to ensure adequate account reserves. 19.6 The account consists of appropriations from the general fund, 19.7 receipts from billings to agencies, and credited investment 19.8 gains or losses attributable to balances in the account. The 19.9 state board of investment shall invest the assets of the account 19.10 according to section 11A.24. 19.11 Sec. 18. [EFFECTIVE DATE.] 19.12 Sections 1, 8, 9, and 11 are effective for dates of injury 19.13 on or after October 1, 1999. Section 7 is effective for written 19.14 notices of claims for legal services that were filed on or after 19.15 August 1, 1999. Section 12 is effective for dates of injury on 19.16 or after the day following final enactment.