1.1                          A bill for an act 
  1.2             relating to workers' compensation; regulating 
  1.3             benefits; limiting supplementary benefits; eliminating 
  1.4             certain lump sum payments; requiring safety programs; 
  1.5             regulating coverage for independent contractors; 
  1.6             abolishing apportionment; providing for a study of 
  1.7             insurance; providing penalties; amending Minnesota 
  1.8             Statutes 1994, sections 13.69, subdivision 1; 79.085; 
  1.9             79.37; 79.55, subdivision 2; 175.16; 176.041, 
  1.10            subdivision 1; 176.081, subdivision 5; 176.101, 
  1.11            subdivisions 3b, 3m, 3o, and 3q; 176.132, subdivision 
  1.12            2; 176.181, subdivision 8; 176.191, by adding a 
  1.13            subdivision; 176.194, subdivisions 1 and 4; 176.221, 
  1.14            subdivision 1; 176.225, subdivision 1; 176.232; 
  1.15            176.261; 176.645, subdivision 1; 176.66, subdivision 
  1.16            11; 268.08, subdivision 3; 299C.46, subdivision 2; 
  1.17            626.05, subdivision 2; 626.11; 626.13; and 626.84, 
  1.18            subdivision 1; proposing coding for new law in 
  1.19            Minnesota Statutes, chapters 176 and 182; repealing 
  1.20            Minnesota Statutes 1994, section 176.86. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 1994, section 13.69, 
  1.23  subdivision 1, is amended to read: 
  1.24     Subdivision 1.  [CLASSIFICATIONS.] (a) The following 
  1.25  government data of the department of public safety are private 
  1.26  data:  
  1.27     (1) medical data on driving instructors, licensed drivers, 
  1.28  and applicants for parking certificates and special license 
  1.29  plates issued to physically handicapped persons; and 
  1.30     (2) social security numbers in driver's license and motor 
  1.31  vehicle registration records, except that social security 
  1.32  numbers must be provided to the department of revenue for 
  1.33  purposes of tax administration and the department of labor and 
  2.1   industry for purposes of workers' compensation administration 
  2.2   and enforcement.  
  2.3      (b) The following government data of the department of 
  2.4   public safety are confidential data:  data concerning an 
  2.5   individual's driving ability when that data is received from a 
  2.6   member of the individual's family. 
  2.7      Sec. 2.  Minnesota Statutes 1994, section 79.085, is 
  2.8   amended to read: 
  2.9      79.085 [SAFETY PROGRAMS.] 
  2.10     All insurers writing workers' compensation insurance in 
  2.11  this state shall provide safety and occupational health loss 
  2.12  control consultation services at no fee to each of their 
  2.13  policyholders requesting the services in writing.  Insurers must 
  2.14  annually notify their policyholders of their right under this 
  2.15  section to free safety and occupational health loss consultation 
  2.16  services.  The services must include the conduct of workplace 
  2.17  surveys to identify health and safety problems, review of 
  2.18  employer injury records with appropriate personnel, and 
  2.19  development of plans to improve employer occupational health and 
  2.20  safety loss records.  Insurers shall notify each policyholder of 
  2.21  the availability of those services and the telephone number and 
  2.22  address where such services can be requested.  The notification 
  2.23  may be delivered with the policy of workers' compensation 
  2.24  insurance. 
  2.25     Sec. 3.  Minnesota Statutes 1994, section 79.37, is amended 
  2.26  to read: 
  2.27     79.37 [BOARD OF DIRECTORS.] 
  2.28     A board of directors of the reinsurance association is 
  2.29  created and is responsible for the operation of the reinsurance 
  2.30  association consistent with the plan of operation and sections 
  2.31  79.34 to 79.40.  The board consists of 13 directors.  Four 
  2.32  directors One director shall represent insurers, two five 
  2.33  directors shall represent employers, two shall represent 
  2.34  self-insurers; two directors shall represent employees; the 
  2.35  commissioner of finance and the executive director of the state 
  2.36  board of investment or their designees shall serve as directors; 
  3.1   and one director shall represent the public.  Insurer members of 
  3.2   the reinsurance association shall elect the directors director 
  3.3   who represent insurers; self-insurer members of the reinsurance 
  3.4   association shall elect the directors who represent 
  3.5   self-insurers; and the commissioner of labor and industry shall 
  3.6   appoint the remaining directors for the terms authorized in the 
  3.7   plan of operation.  Each director is entitled to one vote.  
  3.8   Terms of the directors shall be staggered so that the terms of 
  3.9   all the directors do not expire at the same time and so that a 
  3.10  director does not serve a term of more than four years.  The 
  3.11  board shall select a chair and other officers it deems 
  3.12  appropriate. 
  3.13     A majority of the directors currently holding office 
  3.14  constitutes a quorum.  Action may be taken by a majority vote of 
  3.15  the directors present. 
  3.16     The board shall take reasonable and prudent action 
  3.17  regarding the management of the reinsurance association 
  3.18  including but not limited to determining the entity who shall 
  3.19  manage the daily affairs of the reinsurance association.  The 
  3.20  board shall report to the governor of its actions regarding the 
  3.21  entity selected to manage the reinsurance association and the 
  3.22  reasons for the selection. 
  3.23     Sec. 4.  Minnesota Statutes 1994, section 79.55, 
  3.24  subdivision 2, is amended to read: 
  3.25     Subd. 2.  [EXCESSIVENESS.] No premium is excessive in a 
  3.26  competitive market.  In the absence of a competitive market, 
  3.27  premiums are excessive if the expected underwriting profit, 
  3.28  together with expected income from invested reserves for the 
  3.29  market in question, that would accrue to an insurer would be 
  3.30  unreasonably high in relation to the risk undertaken by the 
  3.31  insurer in transacting the business.  
  3.32     A premium is excessive if it does not reflect a reasonable 
  3.33  reduction based on the receipt by an insurer of a refund of 
  3.34  excess premium from the workers' compensation reinsurance 
  3.35  association.  An insurer's premium reductions may be spread in a 
  3.36  reasonably equal fashion over a period of up to three years. 
  4.1      Sec. 5.  Minnesota Statutes 1994, section 175.16, is 
  4.2   amended to read: 
  4.3      175.16 [DIVISIONS.] 
  4.4      Subdivision 1.  [ESTABLISHED.] The department of labor and 
  4.5   industry shall consist of the following divisions:  division of 
  4.6   workers' compensation, division of boiler inspection, division 
  4.7   of occupational safety and health, division of statistics, 
  4.8   division of steamfitting standards, division of voluntary 
  4.9   apprenticeship, division of labor standards, and such other 
  4.10  divisions as the commissioner of the department of labor and 
  4.11  industry may deem necessary and establish.  Each division of the 
  4.12  department and persons in charge thereof shall be subject to the 
  4.13  supervision of the commissioner of the department of labor and 
  4.14  industry and, in addition to such duties as are or may be 
  4.15  imposed on them by statute, shall perform such other duties as 
  4.16  may be assigned to them by said commissioner. 
  4.17     Subd. 2.  [FRAUD INVESTIGATION UNIT.] The department of 
  4.18  labor and industry shall contain a fraud investigation unit for 
  4.19  the purposes of investigating fraudulent or other illegal 
  4.20  practices of health care providers, employers, insurers, 
  4.21  attorneys, employees, and others related to workers' 
  4.22  compensation and to investigate other matters under the 
  4.23  jurisdiction of the department. 
  4.24     The director of the fraud investigation unit shall be 
  4.25  appointed by and is subject to the control and direction of the 
  4.26  commissioner.  The director shall have full investigative 
  4.27  powers, including the power to issue subpoenas to compel the 
  4.28  production of witnesses, books and records, and other 
  4.29  documents.  Subpoenas shall be served and enforced in the same 
  4.30  manner as district court subpoenas.  The director may administer 
  4.31  oaths and take and record testimony of witnesses.  Investigative 
  4.32  data obtained by the fraud investigation unit shall be treated 
  4.33  as other law enforcement and investigative data under chapter 
  4.34  13.  The fraud unit director shall refer determinations of 
  4.35  illegal activity to the attorney general or other appropriate 
  4.36  prosecuting authority.  The attorney general and other 
  5.1   appropriate prosecuting authorities must give high priority to 
  5.2   reviewing and prosecuting cases referred to them under this 
  5.3   section. 
  5.4      The attorney general shall train personnel of the 
  5.5   department of labor and industry in effective investigative 
  5.6   practices and in the requisites for successful prosecution of 
  5.7   illegal activity.  Investigators with peace officer standards 
  5.8   and training certification shall have the general powers of a 
  5.9   peace officer. 
  5.10     Sec. 6.  Minnesota Statutes 1994, section 176.041, 
  5.11  subdivision 1, is amended to read: 
  5.12     Subdivision 1.  [EMPLOYMENTS EXCLUDED.] This chapter does 
  5.13  not apply to any of the following:  
  5.14     (a) a person employed by a common carrier by railroad 
  5.15  engaged in interstate or foreign commerce and who is covered by 
  5.16  the Federal Employers' Liability Act, United States Code, title 
  5.17  45, sections 51 to 60, or other comparable federal law; 
  5.18     (b) a person employed by a family farm as defined by 
  5.19  section 176.011, subdivision 11a; 
  5.20     (c) the spouse, parent, and child, regardless of age, of a 
  5.21  farmer-employer working for the farmer-employer; 
  5.22     (d) a sole proprietor, or the spouse, parent, and child, 
  5.23  regardless of age, of a sole proprietor; 
  5.24     (e) a partner engaged in a farm operation or a partner 
  5.25  engaged in a business and the spouse, parent, and child, 
  5.26  regardless of age, of a partner in the farm operation or 
  5.27  business; 
  5.28     (f) an executive officer of a family farm corporation; 
  5.29     (g) an executive officer of a closely held corporation 
  5.30  having less than 22,880 hours of payroll in the preceding 
  5.31  calendar year, if that executive officer owns at least 25 
  5.32  percent of the stock of the corporation; 
  5.33     (h) a spouse, parent, or child, regardless of age, of an 
  5.34  executive officer of a family farm corporation as defined in 
  5.35  section 500.24, subdivision 2, and employed by that family farm 
  5.36  corporation; 
  6.1      (i) a spouse, parent, or child, regardless of age, of an 
  6.2   executive officer of a closely held corporation who is referred 
  6.3   to in paragraph (g); 
  6.4      (j) another farmer or a member of the other farmer's family 
  6.5   exchanging work with the farmer-employer or family farm 
  6.6   corporation operator in the same community; 
  6.7      (k) a person whose employment at the time of the injury is 
  6.8   casual and not in the usual course of the trade, business, 
  6.9   profession, or occupation of the employer; 
  6.10     (l) persons who are independent contractors as defined by 
  6.11  rules adopted by the commissioner pursuant to section 176.83 
  6.12  except that this exclusion does not apply to an employee of an 
  6.13  independent contractor nor to an independent contractor declared 
  6.14  an employee under section 176.042; 
  6.15     (m) an officer or a member of a veterans' organization 
  6.16  whose employment relationship arises solely by virtue of 
  6.17  attending meetings or conventions of the veterans' organization, 
  6.18  unless the veterans' organization elects by resolution to 
  6.19  provide coverage under this chapter for the officer or member; 
  6.20     (n) a person employed as a household worker in, for, or 
  6.21  about a private home or household who earns less than $1,000 in 
  6.22  cash in a three-month period from a single private home or 
  6.23  household provided that a household worker who has earned $1,000 
  6.24  or more from the household worker's present employer in a 
  6.25  three-month period within the previous year is covered by this 
  6.26  chapter regardless of whether or not the household worker has 
  6.27  earned $1,000 in the present quarter; 
  6.28     (o) persons employed by a closely held corporation who are 
  6.29  related by blood or marriage, within the third degree of kindred 
  6.30  according to the rules of civil law, to an officer of the 
  6.31  corporation, who is referred to in paragraph (g), if the 
  6.32  corporation files a written election with the commissioner to 
  6.33  exclude such individuals.  A written election is not required 
  6.34  for a person who is otherwise excluded from this chapter by this 
  6.35  section; 
  6.36     (p) a nonprofit association which does not pay more than 
  7.1   $1,000 in salary or wages in a year; 
  7.2      (q) persons covered under the Domestic Volunteer Service 
  7.3   Act of 1973, as amended, United States Code, title 42, sections 
  7.4   5011, et seq.; 
  7.5      (r) a manager of a limited liability company having ten or 
  7.6   fewer members and having less than 22,880 hours of payroll in 
  7.7   the preceding calendar year, if that manager owns at least a 25 
  7.8   percent membership interest in the limited liability company; 
  7.9      (s) a spouse, parent, or child, regardless of age, of a 
  7.10  manager of a limited liability company described in paragraph 
  7.11  (r); 
  7.12     (t) persons employed by a limited liability company having 
  7.13  ten or fewer members and having less than 22,880 hours of 
  7.14  payroll in the preceding calendar year who are related by blood 
  7.15  or marriage, within the third degree of kindred according to the 
  7.16  rules of civil law, to a manager of a limited liability company 
  7.17  described in paragraph (r), if the company files a written 
  7.18  election with the commissioner to exclude these persons.  A 
  7.19  written election is not required for a person who is otherwise 
  7.20  excluded from this chapter by this section; or 
  7.21     (u) members of limited liability companies who satisfy the 
  7.22  requirements of paragraph (l). 
  7.23     Sec. 7.  [176.042] [INDEPENDENT CONTRACTORS; BUILDING 
  7.24  CONSTRUCTION OR IMPROVEMENTS.] 
  7.25     Subdivision 1.  [GENERAL RULE; ARE EMPLOYEES.] Except as 
  7.26  provided in subdivision 2, an independent contractor is an 
  7.27  employee for the purposes of this chapter if: 
  7.28     (1) the independent contractor performs construction trade 
  7.29  or craft services at a commercial or residential building 
  7.30  construction or improvement project in the private or public 
  7.31  sector; and 
  7.32     (2) those services are performed in the course of the trade 
  7.33  or business of the person or business entity with whom the 
  7.34  independent contractor has contracted. 
  7.35     Subd. 2.  [EXCEPTION.] An independent contractor is not an 
  7.36  employee pursuant to subdivision 1 if the independent contractor 
  8.1   meets all of the following conditions: 
  8.2      (1) maintains a separate business with the independent 
  8.3   contractor's own office, equipment, materials, and other 
  8.4   facilities; 
  8.5      (2) holds or has applied for a federal employer 
  8.6   identification number; 
  8.7      (3) operates under contracts to perform specific services 
  8.8   or work for specific amounts of money and under which the 
  8.9   independent contractor controls the means of performing the 
  8.10  services or work; 
  8.11     (4) incurs the main expenses related to the services or 
  8.12  work that the independent contractor performs under contract; 
  8.13     (5) is responsible for the satisfactory completion of work 
  8.14  or services that the independent contractor contracts to perform 
  8.15  and is liable for a failure to complete the work or services; 
  8.16     (6) receives compensation for work or service performed 
  8.17  under a contract on a commission or per job or competitive bid 
  8.18  basis and not on any other basis; 
  8.19     (7) may realize a profit or suffer a loss under contracts 
  8.20  to perform work or service; 
  8.21     (8) has continuing or recurring business liabilities or 
  8.22  obligations; and 
  8.23     (9) the success or failure of the independent contractor's 
  8.24  business depends on the relationship of business receipts to 
  8.25  expenditures. 
  8.26     Sec. 8.  Minnesota Statutes 1994, section 176.081, 
  8.27  subdivision 5, is amended to read: 
  8.28     Subd. 5.  [PRINCIPLES; APPLICATION.] In the determination 
  8.29  of an award of fees in excess of the amount authorized under 
  8.30  subdivision 1, or if an objection is filed under subdivision 1, 
  8.31  clause (b), the following principles are to be applied: 
  8.32     (a) The fee in each individual case must be a reasonable 
  8.33  one. 
  8.34     (b) There is no set standard fee to be awarded in any 
  8.35  workers' compensation matter. 
  8.36     (c) No attorney-client fee contract or arrangement is 
  9.1   binding in any workers' compensation matter. 
  9.2      (d) In determining a reasonable attorney fee, important 
  9.3   factors to be taken into account are:  the amount involved, the 
  9.4   time and expense necessary to prepare for trial, the 
  9.5   responsibility assumed by counsel, the expertise of counsel in 
  9.6   the workers' compensation field, the difficulties of the issues 
  9.7   involved, the nature of proof needed to be adduced and the 
  9.8   results obtained.  The amount of money involved shall not be the 
  9.9   controlling factor.  An award of excess fees may be made only if 
  9.10  there is clear and convincing evidence that there are unusual 
  9.11  circumstances related to the claim justifying an increase over 
  9.12  the fee provided by subdivision 1. 
  9.13     (e) The determination of the fee in each specific workers' 
  9.14  compensation matter must be done with the same care as the 
  9.15  determination of any other fact question in the matter. 
  9.16     (f) The determiner of the attorney fee in each matter must 
  9.17  ascertain whether or not a retainer fee has been paid to the 
  9.18  attorney and if so, the amount of the retainer fee. 
  9.19     (g) The determiner of attorney fees in each case must 
  9.20  personally see that the workers' compensation file contains 
  9.21  fully adequate information to justify the fee that is determined.
  9.22     Sec. 9.  Minnesota Statutes 1994, section 176.101, 
  9.23  subdivision 3b, is amended to read: 
  9.24     Subd. 3b.  [IMPAIRMENT COMPENSATION.] An employee who 
  9.25  suffers a permanent partial disability due to a personal injury 
  9.26  and receives impairment compensation under this section shall 
  9.27  receive compensation in an amount as provided by this 
  9.28  subdivision.  For permanent partial disability up to the percent 
  9.29  of the whole body shown in the following schedule the amount 
  9.30  shall be equal to the proportion that the loss of function of 
  9.31  the disabled part bears to the whole body multiplied by the 
  9.32  amount aligned with that percent in the following schedule:  
  9.33         Percent of disability             Amount
  9.34                  0-25                    $ 75,000 $ 82,500
  9.35                 26-30                      80,000   88,000
  9.36                 31-35                      85,000   93,500
 10.1                  36-40                      90,000   99,000
 10.2                  41-45                      95,000  104,500
 10.3                  46-50                     100,000  110,000
 10.4                  51-55                     120,000  132,000
 10.5                  56-60                     140,000  154,000
 10.6                  61-65                     160,000  176,000
 10.7                  66-70                     180,000  198,000
 10.8                  71-75                     200,000  220,000
 10.9                  76-80                     240,000  264,000
 10.10                 81-85                     280,000  308,000
 10.11                 86-90                     320,000  352,000
 10.12                 91-95                     360,000  396,000
 10.13                 96-100                    400,000  440,000
 10.14     For all cases under this subdivision the percentage loss of 
 10.15  function of a part of the body is determined according to the 
 10.16  rules adopted by the commissioner pursuant to section 176.105, 
 10.17  subdivision 4.  This subdivision applies to an injury which 
 10.18  occurs on or after January 1, 1984.  
 10.19     Sec. 10.  Minnesota Statutes 1994, section 176.101, 
 10.20  subdivision 3m, is amended to read: 
 10.21     Subd. 3m.  [RETURN TO WORK AFTER REFUSAL OF JOB OFFER.] If 
 10.22  the employee has refused the job offer under subdivision 3e and 
 10.23  is receiving periodic impairment compensation and returns to 
 10.24  work at another job, the employee shall receive the remaining 
 10.25  impairment compensation due, in a lump sum, 30 days after return 
 10.26  to work if the employment has not been substantially interrupted 
 10.27  by the injury for any part of the 30 days and the employee is 
 10.28  still employed at that job at the end of the period at the same 
 10.29  rate that temporary total compensation was last paid. 
 10.30     Sec. 11.  Minnesota Statutes 1994, section 176.101, 
 10.31  subdivision 3o, is amended to read: 
 10.32     Subd. 3o.  [INABILITY TO RETURN TO WORK.] (a) An employee 
 10.33  who is permanently totally disabled pursuant to subdivision 5 
 10.34  shall receive impairment compensation as determined pursuant to 
 10.35  subdivision 3b.  This compensation is payable in addition to 
 10.36  permanent total compensation pursuant to subdivision 4 and is 
 11.1   payable concurrently.  In this case the impairment compensation 
 11.2   shall be paid in the same intervals and amount as the permanent 
 11.3   total compensation was initially paid, and the impairment 
 11.4   compensation shall cease when the amount due under subdivision 
 11.5   3b is reached.  If this employee returns to work at any job 
 11.6   during the period the impairment compensation is being paid, the 
 11.7   remaining impairment compensation due shall be paid in a lump 
 11.8   sum 30 days after the employee has returned to work and no 
 11.9   further temporary total compensation shall be paid.  
 11.10     (b) If an employee is receiving periodic economic recovery 
 11.11  compensation and is determined to be permanently totally 
 11.12  disabled no offset shall be taken against future permanent total 
 11.13  compensation for the compensation paid and no permanent total 
 11.14  weekly compensation is payable for any period during which 
 11.15  economic recovery compensation has already been paid.  No 
 11.16  further economic recovery compensation is payable even if the 
 11.17  amount due the employee pursuant to subdivision 3a has not yet 
 11.18  been reached.  
 11.19     (c) An employee who has received periodic economic recovery 
 11.20  compensation and who meets the criteria under clause (b) shall 
 11.21  receive impairment compensation pursuant to clause (a) even if 
 11.22  the employee has previously received economic recovery 
 11.23  compensation for that disability.  
 11.24     (d) Rehabilitation consultation pursuant to section 176.102 
 11.25  shall be provided to an employee who is permanently totally 
 11.26  disabled.  
 11.27     Sec. 12.  Minnesota Statutes 1994, section 176.101, 
 11.28  subdivision 3q, is amended to read: 
 11.29     Subd. 3q.  [METHOD OF PAYMENT OF ECONOMIC RECOVERY 
 11.30  COMPENSATION.] (a) Economic recovery compensation is payable at 
 11.31  the same intervals and in the same amount as temporary total 
 11.32  compensation was initially paid.  If the employee returns to 
 11.33  work and the economic recovery compensation is still being paid, 
 11.34  the remaining economic recovery compensation due shall be paid 
 11.35  in a lump sum 30 days after the employee has returned to work if 
 11.36  the employment has not been substantially interrupted by the 
 12.1   injury for any part of the 30 days and the employee is still 
 12.2   employed at that job at the end of the period.  
 12.3      (b) Periodic economic recovery compensation paid to the 
 12.4   employee shall not be adjusted pursuant to section 176.645.  
 12.5      Sec. 13.  Minnesota Statutes 1994, section 176.132, 
 12.6   subdivision 2, is amended to read: 
 12.7      Subd. 2.  [AMOUNT.] (a) The supplementary benefit payable 
 12.8   under this section shall be the difference between the amount 
 12.9   the employee receives on or after January 1, 1976, under section 
 12.10  176.101, subdivision 1 or 4, and 65 percent of the statewide 
 12.11  average weekly wage as computed annually. is: 
 12.12     (1) the sum of the amount the employee receives under 
 12.13  section 176.101, subdivision 4, plus the amount of any 
 12.14  disability benefits being paid by any government disability 
 12.15  benefit program if those benefits are occasioned by the same 
 12.16  injury or injuries giving rise to payments under section 
 12.17  176.101, subdivision 4, plus any old age and survivor's 
 12.18  insurance benefits, subtracted from; 
 12.19     (2) 65 percent of the statewide average weekly wage, as 
 12.20  computed annually. 
 12.21     (b) In the event an eligible recipient is currently 
 12.22  receiving no compensation or is receiving a reduced level of 
 12.23  compensation because of a credit being applied as the result of 
 12.24  a third party liability or damages, the employer or insurer 
 12.25  shall compute the offset credit as if the individual were 
 12.26  entitled to the actual benefit or 65 percent of the statewide 
 12.27  average weekly wage as computed annually, whichever is greater.  
 12.28  If this results in the use of a higher credit than otherwise 
 12.29  would have been applied and the employer or insurer becomes 
 12.30  liable for compensation benefits which would otherwise not have 
 12.31  been paid, the additional benefits resulting shall be handled 
 12.32  according to this section. 
 12.33     (c) In the event an eligible recipient is receiving no 
 12.34  compensation or is receiving a reduced level of compensation 
 12.35  because of a valid agreement in settlement of a claim, no 
 12.36  supplementary benefit shall be payable under this section.  
 13.1   Attorney's fees shall be allowed in settlements of claims for 
 13.2   supplementary benefits in accordance with this chapter.  
 13.3      (d) In the event an eligible recipient is receiving no 
 13.4   compensation or is receiving a reduced level of compensation 
 13.5   because of prior limitations in the maximum amount payable for 
 13.6   permanent total disability or because of reductions resulting 
 13.7   from the simultaneous receipt of old age or disability benefits, 
 13.8   the supplementary benefit shall be payable for the difference 
 13.9   between the actual amount of compensation currently being paid 
 13.10  and 65 percent of the statewide average weekly wage as computed 
 13.11  annually. 
 13.12     (e) In the event that an eligible recipient is receiving 
 13.13  simultaneous benefits from any government disability program, 
 13.14  the amount of supplementary benefits payable under this section 
 13.15  shall be reduced by five percent.  If the individual does not 
 13.16  receive the maximum benefits for which the individual is 
 13.17  eligible under other governmental disability programs due to the 
 13.18  provisions of United States Code, title 42, section 424a(d), 
 13.19  this reduction shall not apply. 
 13.20     (f) Notwithstanding any other provision in this subdivision 
 13.21  to the contrary, if the individual does not receive the maximum 
 13.22  benefits for which the individual is eligible under other 
 13.23  governmental disability programs due to the provision of United 
 13.24  States Code, title 42, section 424a(d), the calculation of 
 13.25  supplementary benefits payable to the individual shall be as 
 13.26  provided under this section in Minnesota Statutes 1988. 
 13.27     Sec. 14.  Minnesota Statutes 1994, section 176.181, 
 13.28  subdivision 8, is amended to read: 
 13.29     Subd. 8.  [DATA SHARING.] (a) The departments of labor and 
 13.30  industry, economic security, human services, agriculture, 
 13.31  transportation, and revenue are authorized to share information 
 13.32  regarding the employment status of individuals, including but 
 13.33  not limited to payroll and withholding and income tax 
 13.34  information, and may use that information for purposes 
 13.35  consistent with this section and regarding the employment or 
 13.36  employer status of individuals, partnerships, limited liability 
 14.1   companies, corporations, or employers, including, but not 
 14.2   limited to, general contractors, intermediate contractors, and 
 14.3   subcontractors.  The commissioner shall request data in writing 
 14.4   and the responding department shall respond to the request by 
 14.5   producing the requested data within 30 days. 
 14.6      (b) The commissioner is authorized to inspect and to order 
 14.7   the production of all payroll and other business records and 
 14.8   documents of any alleged employer in order to determine the 
 14.9   employment status of persons and compliance with this section.  
 14.10  If any person or employer refuses to comply with such an order, 
 14.11  the commissioner may apply to the district court of the county 
 14.12  where the person or employer is located for an order compelling 
 14.13  production of the documents. 
 14.14     Sec. 15. Minnesota Statutes 1992, section 176.191, is 
 14.15  amended by adding a subdivision to read: 
 14.16     Subd. 5a.  [EQUITABLE APPORTIONMENT.] For the purpose of 
 14.17  this subdivision, "equitable apportionment" means a division of 
 14.18  workers' compensation benefit liability among workers' 
 14.19  compensation employers or insurers for the same period of 
 14.20  disability or for the same service based upon the relative 
 14.21  percentage of liability of each.  This subdivision applies to 
 14.22  all injuries including cumulative trauma injuries.  Section 
 14.23  176.66 also applies in the case of an occupational disease. 
 14.24     Where more than one work injury substantially contributes 
 14.25  to the disability or the need for a medical or rehabilitation 
 14.26  service for which compensation is payable under this chapter, 
 14.27  the employer or insurer on the risk at the time of the last 
 14.28  injury is liable for all compensation owed under this chapter 
 14.29  for the last injury without any apportionment except as provided 
 14.30  in clauses (1) to (4). 
 14.31     Equitable apportionment of liability for an injury under 
 14.32  this chapter whether arising as a defense to an employee's claim 
 14.33  or in an action for contribution, reimbursement, or otherwise is 
 14.34  not allowed except that: 
 14.35     (1) permanent partial disability may be apportioned as 
 14.36  provided in section 176.101, subdivision 4a; 
 15.1      (2) apportionment is allowed in a settlement agreement 
 15.2   filed pursuant to section 176.521; 
 15.3      (3) an employer or insurer may submit an equitable 
 15.4   apportionment dispute to arbitration pursuant to subdivision 5; 
 15.5   and 
 15.6      (4) if the employee is entitled to temporary partial 
 15.7   benefits at the time a new work injury occurs, the entitlement 
 15.8   to temporary partial benefits pursuant to section 176.101, 
 15.9   subdivision 2, continues during periods of temporary total 
 15.10  disability from the subsequent injury.  The temporary partial 
 15.11  compensation is payable at the rate being paid or due at the 
 15.12  time the new period of temporary total disability occurs and is 
 15.13  payable in addition to the temporary total disability 
 15.14  compensation from the subsequent injury. 
 15.15     An arbitration proceeding under subdivision 5 may only be 
 15.16  commenced after a final determination concerning liability for 
 15.17  any benefit claimed by the employee which is the subject of the 
 15.18  apportionment, contribution, or reimbursement claim.  A final 
 15.19  determination is a decision of the commissioner, compensation 
 15.20  judge, court of appeals, or supreme court which has not been 
 15.21  appealed. 
 15.22     Sec. 16.  Minnesota Statutes 1994, section 176.194, 
 15.23  subdivision 1, is amended to read: 
 15.24     Subdivision 1.  [APPLICATION.] This section applies to 
 15.25  insurers, self-insurers, group self-insurers, political 
 15.26  subdivisions of the state, and the administrator of state 
 15.27  employees' claims. 
 15.28     This section also applies to adjusters and third-party 
 15.29  administrators who act on behalf of an insurer, self-insurer, 
 15.30  group self-insurer, the assigned risk plan, the Minnesota 
 15.31  insurance guaranty association, a political subdivision, or any 
 15.32  other entity. 
 15.33     This section shall be enforceable only by the commissioner 
 15.34  of labor and industry or a compensation judge.  Evidence of 
 15.35  violations under this section shall not be admissible in any 
 15.36  civil action. 
 16.1      Sec. 17.  Minnesota Statutes 1994, section 176.194, 
 16.2   subdivision 4, is amended to read: 
 16.3      Subd. 4.  [PENALTIES.] The penalties for violations of 
 16.4   subdivision 3, clauses (1) through (6), are as follows: 
 16.5       1st through 5th violation
 16.6       of each paragraph                   written warning 
 16.7       2nd through 5th violation
 16.8       of each paragraph with respect
 16.9       to a particular claimant            $2,500 per violation
 16.10      6th through 10th violation          $2,500 per violation 
 16.11      of each paragraph                   in excess of five 
 16.12      11th through 30th violation         $5,000 per violation 
 16.13      of each paragraph                   in excess of ten 
 16.14  For violations of subdivision 3, clauses (7) and (8), the 
 16.15  penalties are: 
 16.16      1st through 5th violation
 16.17      of each paragraph                   $2,500 per violation 
 16.18      6th through 30th violation          $5,000 per violation 
 16.19      of each paragraph                   in excess of five 
 16.20     The penalties under this section may be imposed in addition 
 16.21  to other penalties under this chapter that might apply for the 
 16.22  same violation.  The penalties under this section are assessed 
 16.23  by the commissioner and are payable to the assigned risk safety 
 16.24  account.  A party may object to the penalty and request a formal 
 16.25  hearing under section 176.85.  If an entity has more than 30 
 16.26  violations within any 12-month period, in addition to the 
 16.27  monetary penalties provided, the commissioner may shall refer 
 16.28  the matter to the commissioner of commerce with recommendation 
 16.29  for suspension or revocation of the entity's (a) license to 
 16.30  write workers' compensation insurance; (b) license to administer 
 16.31  claims on behalf of a self-insured, the assigned risk plan, or 
 16.32  the Minnesota insurance guaranty association; (c) authority to 
 16.33  self-insure; or (d) license to adjust claims.  The commissioner 
 16.34  of commerce shall follow the procedures specified in section 
 16.35  176.195. 
 16.36     Sec. 18.  Minnesota Statutes 1994, section 176.221, 
 17.1   subdivision 1, is amended to read: 
 17.2      Subdivision 1.  [COMMENCEMENT OF PAYMENT.] Within 14 days 
 17.3   of notice to or knowledge by the employer of an injury 
 17.4   compensable under this chapter the payment of temporary total 
 17.5   compensation shall commence.  Within 14 days of notice to or 
 17.6   knowledge by an employer of a new period of temporary total 
 17.7   disability which is caused by an old injury compensable under 
 17.8   this chapter, the payment of temporary total compensation shall 
 17.9   commence; provided that the employer or insurer may file for an 
 17.10  extension with the commissioner within this 14-day period, in 
 17.11  which case the compensation need not commence within the 14-day 
 17.12  period but shall commence no later than 30 days from the date of 
 17.13  the notice to or knowledge by the employer of the new period of 
 17.14  disability.  Commencement of payment by an employer or insurer 
 17.15  does not waive any rights to any defense the employer has on any 
 17.16  claim or incident either with respect to the compensability of 
 17.17  the claim under this chapter or the amount of the compensation 
 17.18  due.  Where there are multiple employers, the first employer 
 17.19  shall pay, unless it is shown that the injury has arisen out of 
 17.20  employment with the second or subsequent employer.  Liability 
 17.21  for compensation under this chapter may be denied by the 
 17.22  employer or insurer by giving the employee written notice of the 
 17.23  denial of liability.  If liability is denied for an injury which 
 17.24  is required to be reported to the commissioner under section 
 17.25  176.231, subdivision 1, the denial of liability must be filed 
 17.26  with the commissioner within 14 days after notice to or 
 17.27  knowledge by the employer of an injury which is alleged to be 
 17.28  compensable under this chapter.  If the employer or insurer has 
 17.29  commenced payment of compensation under this subdivision but 
 17.30  determines within 30 60 days of notice to or knowledge by the 
 17.31  employer of the injury that the disability is not a result of a 
 17.32  personal injury, payment of compensation may be terminated upon 
 17.33  the filing of a notice of denial of liability within 30 60 days 
 17.34  of notice or knowledge.  After the 30-day 60-day period, payment 
 17.35  may be terminated only by the filing of a notice as provided 
 17.36  under section 176.239.  Upon the termination, payments made may 
 18.1   be recovered by the employer if the commissioner or compensation 
 18.2   judge finds that the employee's claim of work related disability 
 18.3   was not made in good faith.  A notice of denial of liability 
 18.4   must state in detail the facts forming the basis for the denial 
 18.5   and specific reasons explaining why the claimed injury or 
 18.6   occupational disease was determined not to be within the scope 
 18.7   and course of employment and shall include the name and 
 18.8   telephone number of the person making this determination.  
 18.9      Sec. 19.  Minnesota Statutes 1994, section 176.225, 
 18.10  subdivision 1, is amended to read: 
 18.11     Subdivision 1.  [GROUNDS.] Upon reasonable notice and 
 18.12  hearing or opportunity to be heard, the commissioner, a 
 18.13  compensation judge, or upon appeal, the court of appeals or the 
 18.14  supreme court may shall award compensation, in addition to the 
 18.15  total amount of compensation award, of up to 25 percent of that 
 18.16  total amount where an employer or insurer has: 
 18.17     (a) instituted a proceeding or interposed a defense which 
 18.18  does not present a real controversy but which is frivolous or 
 18.19  for the purpose of delay; or, 
 18.20     (b) unreasonably or vexatiously delayed payment; or, 
 18.21     (c) neglected or refused to pay compensation; or, 
 18.22     (d) intentionally underpaid compensation; or 
 18.23     (e) frivolously denied a claim; or 
 18.24     (f) unreasonably or vexatiously discontinued compensation 
 18.25  in violation of sections 176.238 and 176.239. 
 18.26     For the purpose of this section, "frivolously" means 
 18.27  without a good faith investigation of the facts or on a basis 
 18.28  that is clearly contrary to fact or law. 
 18.29     Sec. 20.  Minnesota Statutes 1994, section 176.232, is 
 18.30  amended to read: 
 18.31     176.232 [SAFETY COMMITTEES.] 
 18.32     Every public or private employer of more than 25 employees 
 18.33  shall establish and administer a joint labor-management safety 
 18.34  committee.  
 18.35     Every public or private employer of 25 or fewer employees 
 18.36  shall establish and administer a safety committee if: 
 19.1      (1) the employer has a lost workday cases incidence rate in 
 19.2   the top ten percent of all rates for employers in the same 
 19.3   industry; or 
 19.4      (2) the workers' compensation premium classification 
 19.5   assigned to the greatest portion of the payroll for the employer 
 19.6   has a pure premium rate as reported by the workers' compensation 
 19.7   rating association in the top 25 percent of premium rates for 
 19.8   all classes. 
 19.9      A safety committee must hold regularly scheduled meetings 
 19.10  at least monthly. 
 19.11     Employee safety committee members must be selected by 
 19.12  employees.  An employer that fails to establish or administer a 
 19.13  safety committee as required by this section may be cited by the 
 19.14  commissioner.  A citation is punishable as a serious violation 
 19.15  under section 182.666. 
 19.16     The commissioner may adopt rules regarding the training of 
 19.17  safety committee members and the operation of safety committees. 
 19.18     Sec. 21.  [176.233] [EMPLOYER SAFETY PROGRAMS.] 
 19.19     Subdivision 1.  [PROGRAM REQUIREMENT.] Each public or 
 19.20  private employer must establish and administer a safety program. 
 19.21     An employer who employs temporary workers shall include 
 19.22  those workers in the employer's safety program.  A temporary 
 19.23  services contractor shall provide a safety program for employees 
 19.24  not employed by other employers. 
 19.25     Subd. 2.  [PROGRAM COMPONENTS.] Each safety program must 
 19.26  include, but not be limited to: 
 19.27     (1) new employee general safety orientation; 
 19.28     (2) job- or task-specific safety training; 
 19.29     (3) continuous refresher safety training, including 
 19.30  periodic safety meetings; 
 19.31     (4) periodic hazard assessment with corrective actions 
 19.32  identified; and 
 19.33     (5) appropriate documentation of performance of the 
 19.34  activities. 
 19.35     Subd. 3.  [LARGER EMPLOYERS.] An employer of more than five 
 19.36  employees must have: 
 20.1      (1) procedures of reporting and investigating all 
 20.2   work-related incidents, accidents, injuries, and illnesses; and 
 20.3      (2) policies and procedures that assign specific safety 
 20.4   responsibilities and safety performance accountability. 
 20.5      Subd. 4.  [INSURANCE CONTRACT.] Each insurance contract or 
 20.6   agreement must require each insured employer to implement a 
 20.7   safety program as part of the contract or agreement to provide 
 20.8   workers' compensation coverage. 
 20.9      Sec. 22.  Minnesota Statutes 1994, section 176.261, is 
 20.10  amended to read: 
 20.11     176.261 [EMPLOYEE OF COMMISSIONER OF THE DEPARTMENT OF 
 20.12  LABOR AND INDUSTRY MAY ACT FOR AND ADVISE A PARTY TO A 
 20.13  PROCEEDING.] 
 20.14     When requested by an employer or an employee or an 
 20.15  employee's dependent, the commissioner of the department of 
 20.16  labor and industry may designate one or more of the division 
 20.17  employees to advise that party of rights under this chapter, and 
 20.18  as far as possible to assist in adjusting differences between 
 20.19  the parties.  The person so designated may appear in person in 
 20.20  any proceedings under this chapter as the representative or 
 20.21  adviser of the party.  In such case, the party need not be 
 20.22  represented by an attorney at law.  
 20.23     Prior to advising an employee or employer to seek 
 20.24  assistance outside of the department, the department must refer 
 20.25  employers and employees seeking advice or requesting assistance 
 20.26  in resolving a dispute to an attorney or rehabilitation and 
 20.27  medical specialist employed by the department, whichever is 
 20.28  appropriate. 
 20.29     The department must make efforts to settle problems of 
 20.30  employees and employers by contacting third parties, including 
 20.31  attorneys, insurers, and health care providers, on behalf of 
 20.32  employers and employees and using the department's persuasion to 
 20.33  settle issues quickly and cooperatively.  The obligation to make 
 20.34  efforts to settle problems exists whether or not a formal claim 
 20.35  has been filed with the department. 
 20.36     Sec. 23.  Minnesota Statutes 1994, section 176.645, 
 21.1   subdivision 1, is amended to read: 
 21.2      Subdivision 1.  [AMOUNT.] For injuries occurring after 
 21.3   October 1, 1975 for which benefits are payable under section 
 21.4   176.101, subdivisions 1, 2 and 4, and section 176.111, 
 21.5   subdivision 5, the total benefits due the employee or any 
 21.6   dependents shall be adjusted in accordance with this section.  
 21.7   On October 1, 1981, and thereafter on the anniversary of the 
 21.8   date of the employee's injury the total benefits due shall be 
 21.9   adjusted by multiplying the total benefits due prior to each 
 21.10  adjustment by a fraction, the denominator of which is the 
 21.11  statewide average weekly wage for December 31, of the year two 
 21.12  years previous to the adjustment and the numerator of which is 
 21.13  the statewide average weekly wage for December 31, of the year 
 21.14  previous to the adjustment.  For injuries occurring after 
 21.15  October 1, 1975, all adjustments provided for in this section 
 21.16  shall be included in computing any benefit due under this 
 21.17  section.  Any limitations of amounts due for daily or weekly 
 21.18  compensation under this chapter shall not apply to adjustments 
 21.19  made under this section.  No adjustment increase made on or 
 21.20  after October 1, 1977, but prior to October 1, 1992, under this 
 21.21  section shall exceed six percent a year; in those instances 
 21.22  where the adjustment under the formula of this section would 
 21.23  exceed this maximum, the increase shall be deemed to be six 
 21.24  percent.  For injuries occurring on or after October 1, 1992, no 
 21.25  adjustment increase made on or after October 1, 1992, under this 
 21.26  section shall exceed four percent a year; in those instances 
 21.27  where the adjustment under the formula of this section would 
 21.28  exceed this maximum, the increase shall be deemed to be four 
 21.29  percent. 
 21.30     Sec. 24.  Minnesota Statutes 1994, section 176.66, 
 21.31  subdivision 11, is amended to read: 
 21.32     Subd. 11.  [AMOUNT OF COMPENSATION.] The compensation for 
 21.33  an occupational disease is 66-2/3 percent of the employee's 
 21.34  weekly wage on the date of injury subject to a maximum 
 21.35  compensation equal to the maximum compensation in effect on the 
 21.36  date of last exposure.  The employee shall be eligible for 
 22.1   supplementary benefits notwithstanding the provisions of section 
 22.2   176.132, after four years have elapsed since the date of last 
 22.3   significant exposure to the hazard of the occupational disease 
 22.4   if that employee's weekly compensation rate is less than the 
 22.5   current supplementary benefit rate.  
 22.6      Sec. 25.  [176.861] [DISCLOSURE OF INFORMATION.] 
 22.7      Subdivision 1.  [INSURANCE INFORMATION.] The commissioner 
 22.8   may, in writing, require an insurance company to release to the 
 22.9   commissioner any or all relevant information or evidence the 
 22.10  commissioner deems important which the company may have in its 
 22.11  possession relating to a workers' compensation claim including 
 22.12  material relating to the investigation of the claim, statements 
 22.13  of any person, and any other evidence relevant to the 
 22.14  investigation. 
 22.15     Subd. 2.  [INFORMATION RELEASED TO AUTHORIZED PERSONS.] If 
 22.16  an insurance company has reason to believe that a claim may be 
 22.17  suspicious, fraudulent, or illegal, the company shall, in 
 22.18  writing, notify the commissioner and provide the commissioner 
 22.19  with all relevant material related to the company's inquiry into 
 22.20  the claim. 
 22.21     Subd. 3.  [GOOD FAITH IMMUNITY.] An insurance company or 
 22.22  its agent acting in its behalf who releases information, whether 
 22.23  oral or written, acting in good faith, pursuant to subdivisions 
 22.24  1 and 2 is immune from any liability, civil or criminal, that 
 22.25  might otherwise be incurred or imposed. 
 22.26     Subd. 4.  [SELF-INSURER; ASSIGNED RISK PLAN.] For the 
 22.27  purposes of this section, "insurance company" includes a 
 22.28  self-insurer and the assigned risk plan and their agents. 
 22.29     Sec. 26.  [182.6531] [INJURY AND ILLNESS PREVENTION 
 22.30  PROGRAM.] 
 22.31     The commissioner shall establish model injury and illness 
 22.32  prevention training programs to prevent repetitive motion 
 22.33  injuries including, but not limited to, back injuries.  The 
 22.34  commissioner shall make recommendations for the minimum 
 22.35  qualifications of training program instructors.  The model 
 22.36  programs must be made available to employers, employer 
 23.1   associations, workers' compensation insurers, and employee 
 23.2   organizations on request. 
 23.3      Sec. 27.  Minnesota Statutes 1994, section 268.08, 
 23.4   subdivision 3, is amended to read: 
 23.5      Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
 23.6   eligible to receive benefits for any week with respect to which 
 23.7   the individual is receiving, has received, or has filed a claim 
 23.8   for remuneration in an amount equal to or in excess of the 
 23.9   individual's weekly benefit amount in the form of: 
 23.10     (1) termination, severance, or dismissal payment or wages 
 23.11  in lieu of notice whether legally required or not; provided that 
 23.12  if a termination, severance, or dismissal payment is made in a 
 23.13  lump sum, such lump sum payment shall be allocated over a period 
 23.14  equal to the lump sum divided by the employee's regular pay 
 23.15  while employed by such employer; provided such payment shall be 
 23.16  applied for a period immediately following the last day of 
 23.17  employment but not to exceed 28 calendar days provided that 50 
 23.18  percent of the total of any such payments in excess of eight 
 23.19  weeks shall be similarly allocated to the period immediately 
 23.20  following the 28 days; or 
 23.21     (2) vacation allowance paid directly by the employer for a 
 23.22  period of requested vacation, including vacation periods 
 23.23  assigned by the employer under the provisions of a collective 
 23.24  bargaining agreement, or uniform vacation shutdown; or 
 23.25     (3) compensation for loss of wages under the workers' 
 23.26  compensation law of this state or any other state or under a 
 23.27  similar law of the United States, or under other insurance or 
 23.28  fund established and paid for by the employer except that this 
 23.29  does not apply to an individual who is receiving temporary 
 23.30  partial compensation pursuant to section 176.101, subdivision 
 23.31  3k; or 
 23.32     (4) 50 percent of the pension payments from any fund, 
 23.33  annuity or insurance maintained or contributed to by a base 
 23.34  period employer including the armed forces of the United States 
 23.35  if the employee contributed to the fund, annuity or insurance 
 23.36  and all of the pension payments if the employee did not 
 24.1   contribute to the fund, annuity or insurance; or 
 24.2      (5) (4) 50 percent of a primary insurance benefit under 
 24.3   title II of the Social Security Act, as amended, or similar old 
 24.4   age benefits under any act of Congress or this state or any 
 24.5   other state. 
 24.6      An individual shall not be eligible to receive benefits for 
 24.7   any week with respect to which the individual is receiving or 
 24.8   has received remuneration in an amount equal to or in excess of 
 24.9   the individual's weekly benefit amount in the form of 
 24.10  compensation for loss of wages under the workers' compensation 
 24.11  law of this state or any other state or under a similar law of 
 24.12  the United States or under other insurance or fund established 
 24.13  and paid for by the employer except that this does not apply to 
 24.14  an individual who is receiving temporary partial compensation 
 24.15  pursuant to section 176.101, subdivision 3k. 
 24.16     Provided, that if such remuneration is less than the 
 24.17  benefits which would otherwise be due under sections 268.03 to 
 24.18  268.231, the individual shall be entitled to receive for such 
 24.19  week, if otherwise eligible, benefits reduced by the amount of 
 24.20  such remuneration; provided, further, that if the appropriate 
 24.21  agency of such other state or the federal government finally 
 24.22  determines that the individual is not entitled to such benefits, 
 24.23  this provision shall not apply.  If the computation of reduced 
 24.24  benefits, required by this subdivision, is not a whole dollar 
 24.25  amount, it shall be rounded down to the next lower dollar amount.
 24.26     Sec. 28.  Minnesota Statutes 1994, section 299C.46, 
 24.27  subdivision 2, is amended to read: 
 24.28     Subd. 2.  [CRIMINAL JUSTICE AGENCY DEFINED.] For the 
 24.29  purposes of sections 299C.46 to 299C.49, "criminal justice 
 24.30  agency" shall mean an agency of the state, including the fraud 
 24.31  investigation unit of the department of labor and industry, or 
 24.32  an agency of a political subdivision charged with detection, 
 24.33  enforcement, prosecution, adjudication or incarceration in 
 24.34  respect to the criminal or traffic laws of this state. 
 24.35     Sec. 29.  Minnesota Statutes 1994, section 626.05, 
 24.36  subdivision 2, is amended to read: 
 25.1      Subd. 2.  [PEACE OFFICER.] The term "peace officer," as 
 25.2   used in sections 626.04 to 626.17, means a person who is 
 25.3   licensed as a peace officer in accordance with section 626.84, 
 25.4   subdivision 1, and who serves as a sheriff, deputy sheriff, 
 25.5   police officer, constable, conservation officer, agent of the 
 25.6   bureau of criminal apprehension, agent of the division of 
 25.7   gambling enforcement, University of Minnesota peace officer, 
 25.8   investigator of the fraud investigation unit of the department 
 25.9   of labor or industry with peace officer standards and training 
 25.10  certification, or state patrol trooper as authorized by section 
 25.11  299D.03. 
 25.12     Sec. 30.  Minnesota Statutes 1994, section 626.11, is 
 25.13  amended to read: 
 25.14     626.11 [ISSUANCE OF WARRANT.] 
 25.15     If the judge is satisfied of the existence of the grounds 
 25.16  of the application, or that there is probable cause to believe 
 25.17  their existence, the judge must issue a signed search warrant, 
 25.18  naming the judge's judicial office, to a peace officer in the 
 25.19  judge's county or, to an agent of the bureau of criminal 
 25.20  apprehension, or to an investigator of the fraud investigation 
 25.21  unit of the department of labor and industry with peace officer 
 25.22  standards and training certification.  The warrant shall direct 
 25.23  the officer or agent to search the person or place named for the 
 25.24  property or things specified, and to retain the property or 
 25.25  things in the officer's or agent's custody subject to order of 
 25.26  the court issuing the warrant. 
 25.27     Sec. 31.  Minnesota Statutes 1994, section 626.13, is 
 25.28  amended to read: 
 25.29     626.13 [SERVICE; PERSONS MAKING.] 
 25.30     A search warrant may in all cases be served by any of the 
 25.31  officers mentioned in its directions, but by no other person, 
 25.32  except in aid of the officer on the officer's requiring it, the 
 25.33  officer being present and acting in its execution.  If the 
 25.34  warrant is to be served by an agent of the bureau of criminal 
 25.35  apprehension, an agent of the division of gambling 
 25.36  enforcement, an investigator of the fraud investigation unit of 
 26.1   the department of labor and industry with peace officer 
 26.2   standards and training certification, a state patrol trooper, or 
 26.3   a conservation officer, the agent, investigator, state patrol 
 26.4   trooper, or conservation officer shall notify the chief of 
 26.5   police of an organized full-time police department of the 
 26.6   municipality or, if there is no such local chief of police, the 
 26.7   sheriff or a deputy sheriff of the county in which service is to 
 26.8   be made prior to execution. 
 26.9      Sec. 32.  Minnesota Statutes 1994, section 626.84, 
 26.10  subdivision 1, is amended to read: 
 26.11     Subdivision 1.  [DEFINITIONS.] For purposes of sections 
 26.12  626.84 to 626.863, the following terms have the meanings given 
 26.13  them: 
 26.14     (a) "Board" means the board of peace officer standards and 
 26.15  training. 
 26.16     (b) "Director" means the executive director of the board. 
 26.17     (c) "Peace officer" means an employee or an elected or 
 26.18  appointed official of a political subdivision or law enforcement 
 26.19  agency who is licensed by the board, charged with the prevention 
 26.20  and detection of crime and the enforcement of the general 
 26.21  criminal laws of the state and who has the full power of arrest, 
 26.22  and shall also include the Minnesota state patrol, agents of the 
 26.23  division of gambling enforcement, investigators of the fraud 
 26.24  investigation unit of the department of labor and industry with 
 26.25  peace officer standards and certification training, and state 
 26.26  conservation officers. 
 26.27     (d) "Constable" has the meaning assigned to it in section 
 26.28  367.40. 
 26.29     (e) "Deputy constable" has the meaning assigned to it in 
 26.30  section 367.40. 
 26.31     (f) "Part-time peace officer" means an individual licensed 
 26.32  by the board whose services are utilized by law enforcement 
 26.33  agencies no more than an average of 20 hours per week, not 
 26.34  including time spent on call when no call to active duty is 
 26.35  received, calculated on an annual basis, who has either full 
 26.36  powers of arrest or authorization to carry a firearm while on 
 27.1   active duty.  The term shall apply even though the individual 
 27.2   receives no compensation for time spent on active duty, and 
 27.3   shall apply irrespective of the title conferred upon the 
 27.4   individual by any law enforcement agency.  The limitation on the 
 27.5   average number of hours in which the services of a part-time 
 27.6   peace officer may be utilized shall not apply to a part-time 
 27.7   peace officer who has formally notified the board pursuant to 
 27.8   rules adopted by the board of the part-time peace officer's 
 27.9   intention to pursue the specialized training for part-time peace 
 27.10  officers who desire to become peace officers pursuant to 
 27.11  sections 626.843, subdivision 1, clause (g), and 626.845, 
 27.12  subdivision 1, clause (g).  
 27.13     (g) "Reserve officer" means an individual whose services 
 27.14  are utilized by a law enforcement agency to provide 
 27.15  supplementary assistance at special events, traffic or crowd 
 27.16  control, and administrative or clerical assistance.  A reserve 
 27.17  officer's duties do not include enforcement of the general 
 27.18  criminal laws of the state, and the officer does not have full 
 27.19  powers of arrest or authorization to carry a firearm on duty.  
 27.20     (h) "Law enforcement agency" means a unit of state or local 
 27.21  government that is authorized by law to grant full powers of 
 27.22  arrest and to charge a person with the duties of preventing and 
 27.23  detecting crime and enforcing the general criminal laws of the 
 27.24  state. 
 27.25     (i) "Professional peace officer education" means a 
 27.26  post-secondary degree program, or a nondegree program for 
 27.27  persons who already have a college degree, that is offered by a 
 27.28  college or university in Minnesota, designed for persons seeking 
 27.29  licensure as a peace officer, and approved by the board. 
 27.30     Sec. 33.  [EXCESS PREMIUMS; WORKERS' COMPENSATION 
 27.31  REINSURANCE ASSOCIATION.] 
 27.32     The workers' compensation reinsurance association must 
 27.33  amend its bylaws, contracts with members, and any other of its 
 27.34  documents and agreements to implement Laws 1993, chapter 361, 
 27.35  governing the distribution of excess surplus of the 
 27.36  association.  The association shall also make recommendations to 
 28.1   the legislature by January 1, 1996, on any statutory changes 
 28.2   necessary to effectuate the intent of Laws 1993, chapter 361. 
 28.3      Sec. 34.  [REPEALER.] 
 28.4      Minnesota Statutes 1994, section 176.86, is repealed. 
 28.5      Sec. 35.  [EFFECTIVE DATE.] 
 28.6      Section 4 applies to an excess premium refund received on 
 28.7   or after January 1, 1995, or received prior to January 1, 1995, 
 28.8   but whose legality had not been finally determined by an 
 28.9   appellate court before January 1, 1995. 
 28.10     Sections 9 to 13 and 24 apply to personal injuries 
 28.11  occurring on and after October 1, 1995. 
 28.12     Section 23 is effective retroactive to October 1, 1992.