1.1                          A bill for an act 
  1.2             relating to workers' compensation; modifying 
  1.3             provisions relating to procedures and benefits; 
  1.4             providing penalties; amending Minnesota Statutes 1994, 
  1.5             sections 79.211, subdivision 1; 175.16; 176.011, 
  1.6             subdivision 25; 176.021, subdivisions 3 and 3a; 
  1.7             176.061, subdivision 10; 176.101, subdivisions 1, 2, 
  1.8             4, 5, 6, 8, and by adding a subdivision; 176.105, 
  1.9             subdivision 4; 176.111, subdivisions 6, 7, 8, 12, 14, 
  1.10            15, and 20; 176.178; 176.179; 176.221, subdivision 6a; 
  1.11            176.645, subdivision 1; 176.66, subdivision 11; 
  1.12            176.82; and 268.08, subdivision 3; proposing coding 
  1.13            for new law in Minnesota Statutes, chapter 176; 
  1.14            repealing Minnesota Statutes 1994, sections 176.011, 
  1.15            subdivision 26; 176.101, subdivisions 3a, 3b, 3c, 3d, 
  1.16            3e, 3f, 3g, 3h, 3i, 3j, 3k, 3l, 3m, 3n, 3o, 3p, 3q, 
  1.17            3r, 3s, 3t, and 3u; and 176.132. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1
  1.20     Section 1.  Minnesota Statutes 1994, section 176.011, 
  1.21  subdivision 25, is amended to read: 
  1.22     Subd. 25.  [MAXIMUM MEDICAL IMPROVEMENT.] "Maximum medical 
  1.23  improvement" means the date after which no further significant 
  1.24  recovery from or significant lasting improvement to a personal 
  1.25  injury can reasonably be anticipated, based upon reasonable 
  1.26  medical probability.  Once the date of maximum medical 
  1.27  improvement has been determined, no further determinations of 
  1.28  other dates of maximum medical improvement for that personal 
  1.29  injury is permitted.  The determination that an employee has 
  1.30  reached maximum medical improvement shall not be rendered 
  1.31  ineffective by the worsening of the employee's medical condition 
  2.1   and recovery therefrom. 
  2.2      Sec. 2.  Minnesota Statutes 1994, section 176.101, 
  2.3   subdivision 4, is amended to read: 
  2.4      Subd. 4.  [PERMANENT TOTAL DISABILITY.] For permanent total 
  2.5   disability, as defined in subdivision 5, the compensation shall 
  2.6   be 66-2/3 percent of the daily wage at the time of the injury, 
  2.7   subject to a maximum weekly compensation equal to the maximum 
  2.8   weekly compensation for a temporary total disability and a 
  2.9   minimum weekly compensation equal to the minimum weekly 
  2.10  compensation for a temporary total disability 65 percent of the 
  2.11  statewide average weekly wage.  This compensation shall be paid 
  2.12  during the permanent total disability of the injured employee 
  2.13  but after a total of $25,000 of weekly compensation has been 
  2.14  paid, the amount of the weekly compensation benefits being paid 
  2.15  by the employer shall be reduced by the amount of any disability 
  2.16  benefits being paid by any government disability benefit program 
  2.17  if the disability benefits are occasioned by the same injury or 
  2.18  injuries which give rise to payments under this subdivision.  
  2.19  This reduction shall also apply to any old age and survivor 
  2.20  insurance benefits.  Payments shall be made at the intervals 
  2.21  when the wage was payable, as nearly as may be.  In case an 
  2.22  employee who is permanently and totally disabled becomes an 
  2.23  inmate of a public institution, no compensation shall be payable 
  2.24  during the period of confinement in the institution, unless 
  2.25  there is wholly dependent on the employee for support some 
  2.26  person named in section 176.111, subdivision 1, 2 or 3, in which 
  2.27  case the compensation provided for in section 176.111, during 
  2.28  the period of confinement, shall be paid for the benefit of the 
  2.29  dependent person during dependency.  The dependency of this 
  2.30  person shall be determined as though the employee were deceased. 
  2.31     Sec. 3.  Minnesota Statutes 1994, section 176.101, 
  2.32  subdivision 5, is amended to read: 
  2.33     Subd. 5.  [DEFINITION.] (a) For purposes of subdivision 4, 
  2.34  permanent total disability means only:  
  2.35     (1) the total and permanent loss of the sight of both eyes, 
  2.36  the loss of both arms at the shoulder, the loss of both legs so 
  3.1   close to the hips that no effective artificial members can be 
  3.2   used, complete and permanent paralysis, total and permanent loss 
  3.3   of mental faculties; or 
  3.4      (2) any other injury that results in a disability rating 
  3.5   under this chapter of at least 15 percent of the whole body 
  3.6   which totally and permanently incapacitates the employee from 
  3.7   working at an occupation which brings the employee an income.  
  3.8      (b) For purposes of paragraph (a), clause (2), "totally and 
  3.9   permanently incapacitated" means that the employee's physical 
  3.10  disability, in combination with the employee's age, education, 
  3.11  training, and experience, causes the employee to be unable to 
  3.12  secure anything more than sporadic employment resulting in an 
  3.13  insubstantial income. 
  3.14     Sec. 4.  Minnesota Statutes 1994, section 176.101, 
  3.15  subdivision 8, is amended to read: 
  3.16     Subd. 8.  [RETIREMENT CESSATION OF BENEFITS.] Temporary 
  3.17  total disability payments shall cease at retirement.  
  3.18  "Retirement" means that a preponderance of the evidence supports 
  3.19  a conclusion that an employee has retired.  The subjective 
  3.20  statement of an employee that the employee is not retired is not 
  3.21  sufficient in itself to rebut objective evidence of retirement 
  3.22  but may be considered along with other evidence.  
  3.23     For injuries occurring after January 1, 1984, an employee 
  3.24  who receives social security old age and survivors insurance 
  3.25  retirement benefits is presumed retired from the labor market.  
  3.26  This presumption is rebuttable by a preponderance of the 
  3.27  evidence.  Permanent total disability benefits shall cease at 
  3.28  age 67; provided that the employee is eligible to receive 
  3.29  disability benefits being paid by a government disability 
  3.30  benefit program if the disability benefits are occasioned by the 
  3.31  same injury or injuries which gave rise to payments under this 
  3.32  chapter, or if the employee is eligible to receive any old age 
  3.33  and survivor insurance benefits.  If the employee is not 
  3.34  eligible, then permanent total disability benefits may continue 
  3.35  after age 67. 
  3.36     Sec. 5.  Minnesota Statutes 1994, section 176.645, 
  4.1   subdivision 1, is amended to read: 
  4.2      Subdivision 1.  [AMOUNT.] For injuries occurring after 
  4.3   October 1, 1975 for which benefits are payable under section 
  4.4   176.101, subdivisions 1, 2 and 4, and section 176.111, 
  4.5   subdivision 5, the total benefits due the employee or any 
  4.6   dependents shall be adjusted in accordance with this section.  
  4.7   On October 1, 1981, and thereafter on the anniversary of the 
  4.8   date of the employee's injury the total benefits due shall be 
  4.9   adjusted by multiplying the total benefits due prior to each 
  4.10  adjustment by a fraction, the denominator of which is the 
  4.11  statewide average weekly wage for December 31, of the year two 
  4.12  years previous to the adjustment and the numerator of which is 
  4.13  the statewide average weekly wage for December 31, of the year 
  4.14  previous to the adjustment.  For injuries occurring after 
  4.15  October 1, 1975, all adjustments provided for in this section 
  4.16  shall be included in computing any benefit due under this 
  4.17  section.  Any limitations of amounts due for daily or weekly 
  4.18  compensation under this chapter shall not apply to adjustments 
  4.19  made under this section.  No adjustment increase made on or 
  4.20  after October 1, 1977, but prior to October 1, 1992, under this 
  4.21  section shall exceed six percent a year; in those instances 
  4.22  where the adjustment under the formula of this section would 
  4.23  exceed this maximum, the increase shall be deemed to be six 
  4.24  percent.  No adjustment increase made on or after October 1, 
  4.25  1992, under this section shall exceed four percent a year; in 
  4.26  those instances where the adjustment under the formula of this 
  4.27  section would exceed this maximum, the increase shall be deemed 
  4.28  to be four percent.  No adjustment increase shall be made under 
  4.29  this section on or after October 1, 1994, for any injuries 
  4.30  occurring after October 1, 1975.  The workers' compensation 
  4.31  advisory council may consider adjustment increases and make 
  4.32  recommendations to the legislature. 
  4.33     Sec. 6.  Minnesota Statutes 1994, section 176.66, 
  4.34  subdivision 11, is amended to read: 
  4.35     Subd. 11.  [AMOUNT OF COMPENSATION.] The compensation for 
  4.36  an occupational disease is 66-2/3 percent of the employee's 
  5.1   weekly wage on the date of injury subject to a maximum 
  5.2   compensation equal to the maximum compensation in effect on the 
  5.3   date of last exposure.  The employee shall be eligible for 
  5.4   supplementary benefits notwithstanding the provisions of section 
  5.5   176.132, after four years have elapsed since the date of last 
  5.6   significant exposure to the hazard of the occupational disease 
  5.7   if that employee's weekly compensation rate is less than the 
  5.8   current supplementary benefit rate.  
  5.9      Sec. 7.  [REPEALER.] 
  5.10     Minnesota Statutes 1994, section 176.132, is repealed. 
  5.11     Sec. 8.  [EFFECTIVE DATE.] 
  5.12     Sections 1 to 7 are effective October 1, 1995.  Sections 2, 
  5.13  6, and 7 apply to a personal injury, as defined under Minnesota 
  5.14  Statutes, section 176.011, subdivision 16, occurring on or after 
  5.15  October 1, 1995. 
  5.16                             ARTICLE 2
  5.17     Section 1.  Minnesota Statutes 1994, section 175.16, is 
  5.18  amended to read: 
  5.19     175.16 [DIVISIONS.] 
  5.20     Subdivision 1.  [ESTABLISHED.] The department of labor and 
  5.21  industry shall consist of the following divisions:  division of 
  5.22  workers' compensation, division of boiler inspection, division 
  5.23  of occupational safety and health, division of statistics, 
  5.24  division of steamfitting standards, division of voluntary 
  5.25  apprenticeship, division of labor standards, and such other 
  5.26  divisions as the commissioner of the department of labor and 
  5.27  industry may deem necessary and establish.  Each division of the 
  5.28  department and persons in charge thereof shall be subject to the 
  5.29  supervision of the commissioner of the department of labor and 
  5.30  industry and, in addition to such duties as are or may be 
  5.31  imposed on them by statute, shall perform such other duties as 
  5.32  may be assigned to them by said commissioner. 
  5.33     Subd. 2.  [FRAUD INVESTIGATION UNIT.] The department of 
  5.34  labor and industry shall contain a fraud investigation unit for 
  5.35  the purposes of investigating fraudulent or other illegal 
  5.36  practices of health care providers, employers, insurers, 
  6.1   attorneys, employees, and others related to workers' 
  6.2   compensation and to investigate other matters under the 
  6.3   jurisdiction of the department. 
  6.4      Sec. 2.  Minnesota Statutes 1994, section 176.178, is 
  6.5   amended to read: 
  6.6      176.178 [FRAUD.] 
  6.7      Subdivision 1.  [INTENT.] Any person who, with intent to 
  6.8   defraud, receives workers' compensation benefits to which the 
  6.9   person is not entitled by knowingly misrepresenting, misstating, 
  6.10  or failing to disclose any material fact is guilty of theft and 
  6.11  shall be sentenced pursuant to section 609.52, subdivision 3. 
  6.12     Subd. 2.  [FORMS.] The text of subdivision 1 shall be 
  6.13  placed on all forms prescribed by the commissioner for claims or 
  6.14  responses to claims for workers' compensation benefits under 
  6.15  this chapter.  The absence of the text does not constitute a 
  6.16  defense against prosecution under subdivision 1.  
  6.17     Sec. 3.  [176.861] [DISCLOSURE OF INFORMATION.] 
  6.18     Subdivision 1.  [INSURANCE INFORMATION.] The commissioner 
  6.19  may, in writing, require an insurance company to release to the 
  6.20  commissioner any or all relevant information or evidence the 
  6.21  commissioner deems important which the company may have in its 
  6.22  possession relating to a workers' compensation claim including 
  6.23  material relating to the investigation of the claim; statements 
  6.24  of any person, and any other evidence relevant to the 
  6.25  investigation. 
  6.26     Subd. 2.  [INFORMATION RELEASED TO AUTHORIZED PERSONS.] If 
  6.27  an insurance company has reason to believe that a claim may be 
  6.28  suspicious, fraudulent, or illegal, the company shall, in 
  6.29  writing, notify the commissioner and provide the commissioner 
  6.30  with all relevant material related to the company's inquiry into 
  6.31  the claim. 
  6.32     Subd. 3.  [GOOD FAITH IMMUNITY.] An insurance company or 
  6.33  its agent acting in its behalf and in good faith who releases 
  6.34  oral or written information under subdivisions 1 and 2 is immune 
  6.35  from civil or criminal liability that might otherwise be 
  6.36  incurred or imposed. 
  7.1      Subd. 4.  [SELF-INSURER; ASSIGNED RISK PLAN.] For the 
  7.2   purposes of this section "insurance company" includes a 
  7.3   self-insurer and the assigned risk plan and their agents. 
  7.4                              ARTICLE 3
  7.5      Section 1.  Minnesota Statutes 1994, section 176.021, 
  7.6   subdivision 3, is amended to read: 
  7.7      Subd. 3.  [COMPENSATION, COMMENCEMENT OF PAYMENT.] All 
  7.8   employers shall commence payment of compensation at the time and 
  7.9   in the manner prescribed by this chapter without the necessity 
  7.10  of any agreement or any order of the division.  Except for 
  7.11  medical, burial, and other nonperiodic benefits, payments shall 
  7.12  be made as nearly as possible at the intervals when the wage was 
  7.13  payable, provided, however, that payments for permanent partial 
  7.14  disability shall be governed by section 176.101.  If doubt 
  7.15  exists as to the eventual permanent partial disability, payment 
  7.16  for the economic recovery compensation or impairment 
  7.17  compensation, whichever is due, pursuant to section 176.101, 
  7.18  shall be then made when due for the minimum permanent partial 
  7.19  disability ascertainable, and further payment shall be made upon 
  7.20  any later ascertainment of greater permanent partial 
  7.21  disability.  Prior to or at the time of commencement of the 
  7.22  payment of economic recovery compensation or lump sum or 
  7.23  periodic payment of impairment permanent partial compensation, 
  7.24  the employee and employer shall be furnished with a copy of the 
  7.25  medical report upon which the payment is based and all other 
  7.26  medical reports which the insurer has that indicate a permanent 
  7.27  partial disability rating, together with a statement by the 
  7.28  insurer as to whether the tendered payment is for minimum 
  7.29  permanent partial disability or final and eventual disability.  
  7.30  After receipt of all reports available to the insurer that 
  7.31  indicate a permanent partial disability rating, the employee 
  7.32  shall make available or permit the insurer to obtain any medical 
  7.33  report that the employee has or has knowledge of that contains a 
  7.34  permanent partial disability rating which the insurer does not 
  7.35  already have.  Economic recovery compensation or impairment 
  7.36  Permanent partial compensation pursuant to section 176.101 is 
  8.1   payable in addition to but not concurrently with compensation 
  8.2   for temporary total disability but is payable pursuant to 
  8.3   section 176.101.  Impairment Permanent partial compensation is 
  8.4   payable concurrently and in addition to compensation for 
  8.5   permanent total disability pursuant to section 
  8.6   176.101.  Economic recovery compensation or impairment 
  8.7   compensation Permanent partial compensation pursuant to section 
  8.8   176.101 shall be withheld pending completion of payment for 
  8.9   temporary total disability, and no credit shall be taken for 
  8.10  payment of economic recovery compensation or 
  8.11  impairment permanent partial compensation against liability for 
  8.12  temporary total or future permanent total disability.  Liability 
  8.13  on the part of an employer or the insurer for disability of a 
  8.14  temporary total, temporary partial, and permanent total nature 
  8.15  shall be considered as a continuing product and part of the 
  8.16  employee's inability to earn or reduction in earning capacity 
  8.17  due to injury or occupational disease and compensation is 
  8.18  payable accordingly, subject to section 176.101.  Economic 
  8.19  recovery compensation or impairment Permanent partial 
  8.20  compensation is payable for functional loss of use or impairment 
  8.21  of function, permanent in nature, and payment therefore shall be 
  8.22  separate, distinct, and in addition to payment for any other 
  8.23  compensation, subject to section 176.101.  The right to receive 
  8.24  temporary total, temporary partial, or permanent total 
  8.25  disability payments vests in the injured employee or the 
  8.26  employee's dependents under this chapter or, if none, in the 
  8.27  employee's legal heirs at the time the disability can be 
  8.28  ascertained and the right is not abrogated by the employee's 
  8.29  death prior to the making of the payment. 
  8.30     The right to receive economic recovery permanent partial 
  8.31  compensation or impairment compensation vests in an injured 
  8.32  employee at the time the disability can be ascertained provided 
  8.33  that the employee lives for at least 30 days beyond the date of 
  8.34  the injury.  Upon the death of an employee who is receiving 
  8.35  economic recovery compensation or impairment compensation, 
  8.36  further compensation is payable pursuant to section 176.101.  
  9.1   Impairment compensation is payable under this paragraph if 
  9.2   vesting has occurred, the employee dies prior to reaching 
  9.3   maximum medical improvement, and the requirements and conditions 
  9.4   under section 176.101, subdivision 3e, are not met.  
  9.5      Disability ratings for permanent partial disability shall 
  9.6   be based on objective medical evidence.  
  9.7      Sec. 2.  Minnesota Statutes 1994, section 176.021, 
  9.8   subdivision 3a, is amended to read: 
  9.9      Subd. 3a.  [PERMANENT PARTIAL BENEFITS, PAYMENT.] Payments 
  9.10  for permanent partial disability as provided in section 176.101, 
  9.11  subdivision 3 2a, shall be made in the following manner:  
  9.12     (a) If the employee returns to work, payment shall be made 
  9.13  by lump sum at the same intervals as temporary total payments 
  9.14  were made; 
  9.15     (b) If temporary total payments have ceased, but the 
  9.16  employee has not returned to work, payment shall be made at the 
  9.17  same intervals as temporary total payments were made; 
  9.18     (c) If temporary total disability payments cease because 
  9.19  the employee is receiving payments for permanent total 
  9.20  disability or because the employee is retiring or has retired 
  9.21  from the work force, then payment shall be made by lump sum at 
  9.22  the same intervals as temporary total payments were made; 
  9.23     (d) If the employee completes a rehabilitation plan 
  9.24  pursuant to section 176.102, but the employer does not furnish 
  9.25  the employee with work the employee can do in a permanently 
  9.26  partially disabled condition, and the employee is unable to 
  9.27  procure such work with another employer, then payment shall be 
  9.28  made by lump sum at the same intervals as temporary total 
  9.29  payments were made.  
  9.30     Sec. 3.  Minnesota Statutes 1994, section 176.061, 
  9.31  subdivision 10, is amended to read: 
  9.32     Subd. 10.  [INDEMNITY.] Notwithstanding the provisions of 
  9.33  chapter 65B or any other law to the contrary, an employer has a 
  9.34  right of indemnity for any compensation paid or payable pursuant 
  9.35  to this chapter, including temporary total compensation, 
  9.36  temporary partial compensation, permanent partial disability, 
 10.1   economic recovery compensation, impairment compensation, medical 
 10.2   compensation, rehabilitation, death, and permanent total 
 10.3   compensation.  
 10.4      Sec. 4.  Minnesota Statutes 1994, section 176.101, 
 10.5   subdivision 1, is amended to read: 
 10.6      Subdivision 1.  [TEMPORARY TOTAL DISABILITY.] (a) For 
 10.7   injury producing temporary total disability, the compensation is 
 10.8   66-2/3 percent of the weekly wage at the time of injury. 
 10.9      (b) On and after October 1, 1994, the maximum weekly 
 10.10  compensation payable shall be as follows: 
 10.11     (1) During the year commencing on October 1, 1992 1994, and 
 10.12  each year thereafter, the maximum weekly compensation payable is 
 10.13  105 percent of the statewide average weekly wage for the period 
 10.14  ending December 31 of the preceding year. 
 10.15     (2) During the year commencing on October 1, 1995, the 
 10.16  maximum weekly compensation payable is 106 percent of the 
 10.17  statewide average weekly wage for the period ending December 31 
 10.18  of the preceding year. 
 10.19     (3) During the year commencing on October 1, 1996, the 
 10.20  maximum weekly compensation payable is 107 percent of the 
 10.21  statewide average weekly wage for the period ending December 31 
 10.22  of the preceding year. 
 10.23     (4) During the year commencing on October 1, 1997, the 
 10.24  maximum weekly compensation payable is 108 percent of the 
 10.25  statewide average weekly wage for the period ending December 31 
 10.26  of the preceding year. 
 10.27     (5) During the year commencing on October 1, 1998, the 
 10.28  maximum weekly compensation payable is 109 percent of the 
 10.29  statewide average weekly wage for the period ending December 31 
 10.30  of the preceding year. 
 10.31     (6) During the year commencing on October 1, 1999, and each 
 10.32  year thereafter, the maximum weekly compensation payable is 110 
 10.33  percent of the statewide average weekly wage for the period 
 10.34  ending December 31 of the preceding year. 
 10.35     (c) The minimum weekly compensation payable is 20 percent 
 10.36  of the statewide average weekly wage for the period ending 
 11.1   December 31 of the preceding year or the injured employee's 
 11.2   actual weekly wage, whichever is less.  
 11.3      (d) Subject to subdivisions 3a to 3u this Temporary total 
 11.4   compensation shall be paid during the period of disability, 
 11.5   payment to be made at the intervals when the wage was payable, 
 11.6   as nearly as may be. and shall cease whenever any one of the 
 11.7   following occurs: 
 11.8      (1) the employee returns to work; 
 11.9      (2) the employee withdraws from the labor market; 
 11.10     (3) the disability ends and the employee fails to 
 11.11  diligently search for appropriate work; 
 11.12     (4) the employee refuses an offer of work that is 
 11.13  consistent with a plan of rehabilitation filed with the 
 11.14  commissioner which meets the requirements of section 176.102, 
 11.15  subdivision 4, or, if no plan has been filed, the employee 
 11.16  refuses an offer of suitable gainful employment that the 
 11.17  employee can do in the employee's physical condition; or 
 11.18     (5) 90 days pass after the employee has reached maximum 
 11.19  medical improvement, except as provided in section 176.102, 
 11.20  subdivision 11, paragraph (b). 
 11.21     (e) For purposes of this subdivision, the 90-day period 
 11.22  after maximum medical improvement commences on the earlier of: 
 11.23     (1) the date that the employee receives a written medical 
 11.24  report indicating that the employee has reached maximum medical 
 11.25  improvement; or 
 11.26     (2) the date that the employer or insurer serves the report 
 11.27  on the employee and the employee's attorney, if any. 
 11.28     (f) Once temporary total disability compensation has ceased 
 11.29  under paragraph (d), clause (1), (2), or (3), it may only be 
 11.30  recommenced prior to 90 days after maximum medical improvement 
 11.31  and only as follows: 
 11.32     (1) if temporary total disability compensation ceased under 
 11.33  paragraph (d), clause (1), it may be recommenced if the employee 
 11.34  is laid off or terminated within one year of employment for 
 11.35  reasons other than misconduct or is medically unable to continue 
 11.36  at the job; 
 12.1      (2) if temporary total disability compensation ceased under 
 12.2   paragraph (d), clause (2), but the employee subsequently 
 12.3   returned to work, it may be recommenced in accordance with 
 12.4   clause (1); or 
 12.5      (3) if temporary total disability compensation ceased under 
 12.6   paragraph (d), clause (3), it may be recommenced if the employee 
 12.7   begins diligently searching for appropriate work.  Temporary 
 12.8   total disability compensation recommenced under this paragraph 
 12.9   (f) is subject to cessation under paragraph (d). 
 12.10     Recommenced temporary total disability compensation may not 
 12.11  be paid beyond 90 days after the employee reaches maximum 
 12.12  medical improvement, except as provided under section 176.102, 
 12.13  subdivision 11, paragraph (b). 
 12.14     (g) Once temporary total disability compensation has ceased 
 12.15  under paragraph (d), clauses (4) and (5), it may not be 
 12.16  recommenced at a later date except as provided under section 
 12.17  176.102, subdivision 11, paragraph (b). 
 12.18     Sec. 5.  Minnesota Statutes 1994, section 176.101, 
 12.19  subdivision 2, is amended to read: 
 12.20     Subd. 2.  [TEMPORARY PARTIAL DISABILITY.] (a) In all cases 
 12.21  of temporary partial disability the compensation shall be 66-2/3 
 12.22  percent of the difference between the weekly wage of the 
 12.23  employee at the time of injury and the wage the employee is able 
 12.24  to earn in the employee's partially disabled condition.  This 
 12.25  compensation shall be paid during the period of disability 
 12.26  except as provided in this section, payment to be made at the 
 12.27  intervals when the wage was payable, as nearly as may be, and 
 12.28  subject to the maximum rate for temporary total compensation.  
 12.29     (b) Except as provided under subdivision 3k, Temporary 
 12.30  partial compensation may be paid only while the employee is 
 12.31  employed, earning less than the employee's weekly wage at the 
 12.32  time of the injury, and the reduced wage the employee is able to 
 12.33  earn in the employee's partially disabled condition is due to 
 12.34  the injury.  Except as provided in section 176.102, subdivision 
 12.35  11, paragraph (b), temporary partial compensation may not be 
 12.36  paid for more than 225 weeks, or after 450 weeks after the date 
 13.1   of injury, whichever occurs first.  
 13.2      (c) Temporary partial compensation must be reduced to the 
 13.3   extent that the wage the employee is able to earn in the 
 13.4   employee's partially disabled condition plus the temporary 
 13.5   partial disability payment otherwise payable under this 
 13.6   subdivision exceeds 500 percent of the statewide average weekly 
 13.7   wage. 
 13.8      Sec. 6.  Minnesota Statutes 1994, section 176.101, is 
 13.9   amended by adding a subdivision to read: 
 13.10     Subd. 2a.  [PERMANENT PARTIAL DISABILITY.] (a) Compensation 
 13.11  for permanent partial disability is as provided in this 
 13.12  subdivision.  Permanent partial disability must be rated as a 
 13.13  percentage of the whole body in accordance with rules adopted by 
 13.14  the commissioner under section 176.105.  The percentage 
 13.15  determined pursuant to the rules must be multiplied by the 
 13.16  corresponding amount in the following table: 
 13.17        Impairment rating                 Amount
 13.18            (percent)
 13.19              0-5                         $ 65,000
 13.20              6-10                          67,500
 13.21             11-15                          70,000
 13.22             16-20                          72,500
 13.23             21-25                          75,000
 13.24             26-30                          80,000
 13.25             31-35                          90,000
 13.26             36-40                         100,000
 13.27             41-45                         110,000
 13.28             46-50                         120,000
 13.29             51-55                         140,000
 13.30             56-60                         160,000
 13.31             61-65                         200,000
 13.32             66-70                         250,000
 13.33             71-75                         300,000
 13.34             76-80                         350,000
 13.35             81-85                         400,000
 13.36             86-90                         450,000
 14.1              91-95                         500,000
 14.2              96-100                        600,000
 14.3   An employee may not receive compensation for more than a 100 
 14.4   percent disability of the whole body, even if the employee 
 14.5   sustains disability to two or more body parts. 
 14.6      (b) Permanent partial disability is payable upon cessation 
 14.7   of temporary total disability under subdivision 1.  The 
 14.8   compensation is payable in installments at the same intervals 
 14.9   and in the same amount as the employee's temporary total 
 14.10  disability rate on the date of injury.  Permanent partial 
 14.11  disability is not payable while temporary total compensation is 
 14.12  being paid.  Permanent partial disability is payable to 
 14.13  permanently totally disabled employees in installments at the 
 14.14  same intervals and the same amount as the employee's permanent 
 14.15  total disability rate on the date of injury commencing at the 
 14.16  time the disability can be ascertained. 
 14.17     Sec. 7.  Minnesota Statutes 1994, section 176.101, 
 14.18  subdivision 6, is amended to read: 
 14.19     Subd. 6.  [MINORS; APPRENTICES.] (a) If any employee 
 14.20  entitled to the benefits of this chapter is an apprentice of any 
 14.21  age and sustains a personal injury arising out of and in the 
 14.22  course of employment resulting in permanent total or a 
 14.23  compensable permanent partial disability, for the purpose of 
 14.24  computing the compensation to which the employee is entitled for 
 14.25  the injury, the compensation rate for temporary total, temporary 
 14.26  partial, a or permanent total disability or economic recovery 
 14.27  compensation shall be the maximum rate for temporary total 
 14.28  disability under subdivision 1. 
 14.29     (b) If any employee entitled to the benefits of this 
 14.30  chapter is a minor and sustains a personal injury arising out of 
 14.31  and in the course of employment resulting in permanent total 
 14.32  disability, for the purpose of computing the compensation to 
 14.33  which the employee is entitled for the injury, the compensation 
 14.34  rate for a permanent total disability shall be the maximum rate 
 14.35  for temporary total disability under subdivision 1. 
 14.36     Sec. 8.  Minnesota Statutes 1994, section 176.105, 
 15.1   subdivision 4, is amended to read: 
 15.2      Subd. 4.  [LEGISLATIVE INTENT; RULES; LOSS OF MORE THAN ONE 
 15.3   BODY PART.] (a) For the purpose of establishing a disability 
 15.4   schedule pursuant to clause (b), the legislature declares its 
 15.5   intent that the commissioner establish a disability schedule 
 15.6   which, assuming the same number and distribution of severity of 
 15.7   injuries, the aggregate total of impairment compensation and 
 15.8   economic recovery compensation benefits under section 176.101, 
 15.9   subdivisions 3a to 3u be approximately equal to the total 
 15.10  aggregate amount payable for permanent partial disabilities 
 15.11  under section 176.101, subdivision 3, provided, however, that 
 15.12  awards for specific injuries under the proposed schedule need 
 15.13  not be the same as they were for the same injuries under the 
 15.14  schedule pursuant to section 176.101, subdivision 3.  The 
 15.15  schedule shall be determined by sound actuarial evaluation and 
 15.16  shall be based on the benefit level which exists on January 1, 
 15.17  1983.  
 15.18     (b) The commissioner shall by rulemaking adopt procedures 
 15.19  setting forth rules for the evaluation and rating of functional 
 15.20  disability and the schedule for permanent partial disability and 
 15.21  to determine the percentage of loss of function of a part of the 
 15.22  body based on the body as a whole, including internal organs, 
 15.23  described in section 176.101, subdivision 3, and any other body 
 15.24  part not listed in section 176.101, subdivision 3, which the 
 15.25  commissioner deems appropriate.  
 15.26     The rules shall promote objectivity and consistency in the 
 15.27  evaluation of permanent functional impairment due to personal 
 15.28  injury and in the assignment of a numerical rating to the 
 15.29  functional impairment.  
 15.30     Prior to adoption of rules the commissioner shall conduct 
 15.31  an analysis of the current permanent partial disability schedule 
 15.32  for the purpose of determining the number and distribution of 
 15.33  permanent partial disabilities and the average compensation for 
 15.34  various permanent partial disabilities.  The commissioner shall 
 15.35  consider setting the compensation under the proposed schedule 
 15.36  for the most serious conditions higher in comparison to the 
 16.1   current schedule and shall consider decreasing awards for minor 
 16.2   conditions in comparison to the current schedule.  
 16.3      The commissioner may consider, among other factors, and 
 16.4   shall not be limited to the following factors in developing 
 16.5   rules for the evaluation and rating of functional disability and 
 16.6   the schedule for permanent partial disability benefits:  
 16.7      (1) the workability and simplicity of the procedures with 
 16.8   respect to the evaluation of functional disability; 
 16.9      (2) the consistency of the procedures with accepted medical 
 16.10  standards; 
 16.11     (3) rules, guidelines, and schedules that exist in other 
 16.12  states that are related to the evaluation of permanent partial 
 16.13  disability or to a schedule of benefits for functional 
 16.14  disability provided that the commissioner is not bound by the 
 16.15  degree of disability in these sources but shall adjust the 
 16.16  relative degree of disability to conform to the expressed intent 
 16.17  of clause (a) this section; 
 16.18     (4) rules, guidelines, and schedules that have been 
 16.19  developed by associations of health care providers or 
 16.20  organizations provided that the commissioner is not bound by the 
 16.21  degree of disability in these sources but shall adjust the 
 16.22  relative degree of disability to conform to the expressed intent 
 16.23  of clause (a) this section; 
 16.24     (5) the effect the rules may have on reducing litigation; 
 16.25     (6) the treatment of preexisting disabilities with respect 
 16.26  to the evaluation of permanent functional disability provided 
 16.27  that any preexisting disabilities must be objectively determined 
 16.28  by medical evidence; and 
 16.29     (7) symptomatology and loss of function and use of the 
 16.30  injured member.  
 16.31     The factors in paragraphs (1) to (7) shall not be used in 
 16.32  any individual or specific workers' compensation claim under 
 16.33  this chapter but shall be used only in the adoption of rules 
 16.34  pursuant to this section.  
 16.35     Nothing listed in paragraphs (1) to (7) shall be used to 
 16.36  dispute or challenge a disability rating given to a part of the 
 17.1   body so long as the whole schedule conforms with the expressed 
 17.2   intent of clause (a) this section. 
 17.3      (c) If an employee suffers a permanent functional 
 17.4   disability of more than one body part due to a personal injury 
 17.5   incurred in a single occurrence, the percent of the whole body 
 17.6   which is permanently partially disabled shall be determined by 
 17.7   the following formula so as to ensure that the percentage for 
 17.8   all functional disability combined does not exceed the total for 
 17.9   the whole body:  
 17.10                           A + B (1 - A) 
 17.11     where:  A is the greater percentage whole body loss of the 
 17.12  first body part; and B is the lesser percentage whole body loss 
 17.13  otherwise payable for the second body part.  A + B (1-A) is 
 17.14  equivalent to A + B - AB.  
 17.15     For permanent partial disabilities to three body parts due 
 17.16  to a single occurrence or as the result of an occupational 
 17.17  disease, the above formula shall be applied, providing that A 
 17.18  equals the result obtained from application of the formula to 
 17.19  the first two body parts and B equals the percentage for the 
 17.20  third body part.  For permanent partial disability to four or 
 17.21  more body parts incurred as described above, A equals the result 
 17.22  obtained from the prior application of the formula, and B equals 
 17.23  the percentage for the fourth body part or more in arithmetic 
 17.24  progressions. 
 17.25     Sec. 9.  Minnesota Statutes 1994, section 176.179, is 
 17.26  amended to read: 
 17.27     176.179 [RECOVERY OF OVERPAYMENTS.] 
 17.28     Notwithstanding section 176.521, subdivision 3, or any 
 17.29  other provision of this chapter to the contrary, except as 
 17.30  provided in this section, no lump sum or weekly payment, or 
 17.31  settlement, which is voluntarily paid to an injured employee or 
 17.32  the survivors of a deceased employee in apparent or seeming 
 17.33  accordance with the provisions of this chapter by an employer or 
 17.34  insurer, or is paid pursuant to an order of the workers' 
 17.35  compensation division, a compensation judge, or court of appeals 
 17.36  relative to a claim by an injured employee or the employee's 
 18.1   survivors, and received in good faith by the employee or the 
 18.2   employee's survivors shall be refunded to the paying employer or 
 18.3   insurer in the event that it is subsequently determined that the 
 18.4   payment was made under a mistake in fact or law by the employer 
 18.5   or insurer.  When the payments have been made to a person who is 
 18.6   entitled to receive further payments of compensation for the 
 18.7   same injury, the mistaken compensation may be taken as a full 
 18.8   credit against future lump sum benefit entitlement and as a 
 18.9   partial credit against future weekly periodic benefits.  The 
 18.10  credit applied against further payments of temporary total 
 18.11  disability, temporary partial disability, permanent partial 
 18.12  disability, permanent total disability, retraining benefits, 
 18.13  death benefits, or weekly payments of economic recovery or 
 18.14  impairment compensation shall not exceed 20 percent of the 
 18.15  amount that would otherwise be payable. 
 18.16     A credit may not be applied against medical expenses due or 
 18.17  payable.  
 18.18     Where the commissioner or compensation judge determines 
 18.19  that the mistaken compensation was not received in good faith, 
 18.20  the commissioner or compensation judge may order reimbursement 
 18.21  of the compensation.  For purposes of this section, a payment is 
 18.22  not received in good faith if it is obtained through fraud, or 
 18.23  if the employee knew that the compensation was paid under 
 18.24  mistake of fact or law, and the employee has not refunded the 
 18.25  mistaken compensation. 
 18.26     Sec. 10.  Minnesota Statutes 1994, section 176.221, 
 18.27  subdivision 6a, is amended to read: 
 18.28     Subd. 6a.  [MEDICAL, REHABILITATION, ECONOMIC RECOVERY, AND 
 18.29  IMPAIRMENT AND PERMANENT PARTIAL COMPENSATION.] The penalties 
 18.30  provided by this section apply in cases where payment for 
 18.31  treatment under section 176.135, rehabilitation expenses under 
 18.32  section 176.102, subdivisions 9 and 11, economic recovery 
 18.33  compensation or impairment compensation or permanent partial 
 18.34  compensation are not made in a timely manner as required by law 
 18.35  or by rule adopted by the commissioner.  
 18.36     Sec. 11.  Minnesota Statutes 1994, section 176.82, is 
 19.1   amended to read: 
 19.2      176.82 [ACTION FOR CIVIL DAMAGES FOR OBSTRUCTING EMPLOYEE 
 19.3   SEEKING BENEFITS.] 
 19.4      Subdivision 1.  [RETALIATORY DISCHARGE.] Any person 
 19.5   discharging or threatening to discharge an employee for seeking 
 19.6   workers' compensation benefits or in any manner intentionally 
 19.7   obstructing an employee seeking workers' compensation benefits 
 19.8   is liable in a civil action for damages incurred by the employee 
 19.9   including any diminution in workers' compensation benefits 
 19.10  caused by a violation of this section including costs and 
 19.11  reasonable attorney fees, and for punitive damages not to exceed 
 19.12  three times the amount of any compensation benefit to which the 
 19.13  employee is entitled.  Damages awarded under this section shall 
 19.14  not be offset by any workers' compensation benefits to which the 
 19.15  employee is entitled. 
 19.16     Subd. 2.  [REFUSAL TO OFFER CONTINUED EMPLOYMENT.] An 
 19.17  employer who, without reasonable cause, refuses to offer 
 19.18  continued employment to its employee when employment is 
 19.19  available within the employee's physical limitations shall be 
 19.20  liable for one year's wages.  The wages are payable from the 
 19.21  date of the refusal to offer continued employment, and at the 
 19.22  same time and at the same rate as the employee's preinjury wage, 
 19.23  to continue during the period of the refusal up to a maximum of 
 19.24  $15,000.  These payments shall be in addition to any other 
 19.25  payments provided by this chapter.  In determining the 
 19.26  availability of employment, the continuance in business of the 
 19.27  employer shall be considered and written rules promulgated by 
 19.28  the employer with respect to seniority or the provisions or any 
 19.29  collective bargaining agreement with respect to seniority shall 
 19.30  govern. 
 19.31     Sec. 12.  Minnesota Statutes 1994, section 268.08, 
 19.32  subdivision 3, is amended to read: 
 19.33     Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
 19.34  eligible to receive benefits for any week with respect to which 
 19.35  the individual is receiving, has received, or has filed a claim 
 19.36  for remuneration in an amount equal to or in excess of the 
 20.1   individual's weekly benefit amount in the form of: 
 20.2      (1) termination, severance, or dismissal payment or wages 
 20.3   in lieu of notice whether legally required or not; provided that 
 20.4   if a termination, severance, or dismissal payment is made in a 
 20.5   lump sum, such lump sum payment shall be allocated over a period 
 20.6   equal to the lump sum divided by the employee's regular pay 
 20.7   while employed by such employer; provided such payment shall be 
 20.8   applied for a period immediately following the last day of 
 20.9   employment but not to exceed 28 calendar days provided that 50 
 20.10  percent of the total of any such payments in excess of eight 
 20.11  weeks shall be similarly allocated to the period immediately 
 20.12  following the 28 days; or 
 20.13     (2) vacation allowance paid directly by the employer for a 
 20.14  period of requested vacation, including vacation periods 
 20.15  assigned by the employer under the provisions of a collective 
 20.16  bargaining agreement, or uniform vacation shutdown; or 
 20.17     (3) compensation for loss of wages under the workers' 
 20.18  compensation law of this state or any other state or under a 
 20.19  similar law of the United States, or under other insurance or 
 20.20  fund established and paid for by the employer except that this 
 20.21  does not apply to an individual who is receiving temporary 
 20.22  partial compensation pursuant to section 176.101, subdivision 
 20.23  3k; or 
 20.24     (4) 50 percent of the pension payments from any fund, 
 20.25  annuity or insurance maintained or contributed to by a base 
 20.26  period employer including the armed forces of the United States 
 20.27  if the employee contributed to the fund, annuity or insurance 
 20.28  and all of the pension payments if the employee did not 
 20.29  contribute to the fund, annuity or insurance; or 
 20.30     (5) 50 percent of a primary insurance benefit under title 
 20.31  II of the Social Security Act, as amended, or similar old age 
 20.32  benefits under any act of Congress or this state or any other 
 20.33  state. 
 20.34     Provided, that if such remuneration is less than the 
 20.35  benefits which would otherwise be due under sections 268.03 to 
 20.36  268.231, the individual shall be entitled to receive for such 
 21.1   week, if otherwise eligible, benefits reduced by the amount of 
 21.2   such remuneration; provided, further, that if the appropriate 
 21.3   agency of such other state or the federal government finally 
 21.4   determines that the individual is not entitled to such benefits, 
 21.5   this provision shall not apply.  If the computation of reduced 
 21.6   benefits, required by this subdivision, is not a whole dollar 
 21.7   amount, it shall be rounded down to the next lower dollar amount.
 21.8      Sec. 13.  [REPEALER.] 
 21.9      Minnesota Statutes 1994, sections 176.011, subdivision 26; 
 21.10  and 176.101, subdivisions 3a, 3b, 3c, 3d, 3e, 3f, 3g, 3h, 3i, 
 21.11  3j, 3k, 3l, 3m, 3n, 3o, 3p, 3q, 3r, 3s, 3t, and 3u, are repealed.
 21.12     Sec. 14.  [EFFECTIVE DATE.] 
 21.13     Sections 1 to 13 are effective October 1, 1995. 
 21.14                             ARTICLE 4
 21.15     Section 1.  Minnesota Statutes 1994, section 79.211, 
 21.16  subdivision 1, is amended to read: 
 21.17     Subdivision 1.  [CERTAIN WAGES EXCLUDED INCLUDED FOR 
 21.18  RATEMAKING.] The rating association or an insurer shall not 
 21.19  include wages paid for a vacation, holiday, or sick leave in the 
 21.20  determination of a workers' compensation insurance premium. 
 21.21     An insurer, including the assigned risk plan, shall not 
 21.22  include wages paid for work performed in an adjacent state in 
 21.23  the determination of a workers' compensation premium if the 
 21.24  employer paid a workers' compensation insurance premium to the 
 21.25  exclusive state fund of the adjacent state on the wages earned 
 21.26  in the adjacent state. 
 21.27     Sec. 2.  Minnesota Statutes 1994, section 176.111, 
 21.28  subdivision 6, is amended to read: 
 21.29     Subd. 6.  [SPOUSE, NO DEPENDENT CHILD.] If the deceased 
 21.30  employee leaves a dependent surviving spouse and no dependent 
 21.31  child, there shall be paid to the spouse weekly workers' 
 21.32  compensation benefits at 50 percent of 1.25 times the weekly 
 21.33  wage at the time of the injury for a period of ten years, 
 21.34  including adjustments as provided in section 176.645.  
 21.35     Sec. 3.  Minnesota Statutes 1994, section 176.111, 
 21.36  subdivision 7, is amended to read: 
 22.1      Subd. 7.  [SPOUSE, ONE DEPENDENT CHILD.] If the deceased 
 22.2   employee leaves a surviving spouse and one dependent child, 
 22.3   there shall be paid to the surviving spouse for the benefit of 
 22.4   the spouse and child 60 percent of 1.25 times the daily wage at 
 22.5   the time of the injury of the deceased until the child is no 
 22.6   longer a dependent as defined in subdivision 1.  At that time 
 22.7   there shall be paid to the dependent surviving spouse weekly 
 22.8   benefits at a rate which is 16-2/3 percent less than the last 
 22.9   weekly workers' compensation benefit payment, as defined in 
 22.10  subdivision 8a, while the surviving child was a dependent, for a 
 22.11  period of ten years, including adjustments as provided in 
 22.12  section 176.645.  
 22.13     Sec. 4.  Minnesota Statutes 1994, section 176.111, 
 22.14  subdivision 8, is amended to read: 
 22.15     Subd. 8.  [SPOUSE, TWO DEPENDENT CHILDREN.] If the deceased 
 22.16  employee leaves a surviving spouse and two dependent children, 
 22.17  there shall be paid to the surviving spouse for the benefit of 
 22.18  the spouse and children 66-2/3 percent of 1.25 times the daily 
 22.19  wage at the time of the injury of the deceased until the last 
 22.20  dependent child is no longer dependent.  At that time the 
 22.21  dependent surviving spouse shall be paid weekly benefits at a 
 22.22  rate which is 25 percent less than the last weekly workers' 
 22.23  compensation benefit payment, as defined in subdivision 8a, 
 22.24  while the surviving child was a dependent, for a period of ten 
 22.25  years, adjusted according to section 176.645.  
 22.26     Sec. 5.  Minnesota Statutes 1994, section 176.111, 
 22.27  subdivision 12, is amended to read: 
 22.28     Subd. 12.  [ORPHANS.] If the deceased employee leaves a 
 22.29  dependent orphan, there shall be paid 55 percent of 1.25 times 
 22.30  the weekly wage at the time of the injury of the deceased, for 
 22.31  two or more orphans there shall be paid 66-2/3 percent of 1.25 
 22.32  times the wages. 
 22.33     Sec. 6.  Minnesota Statutes 1994, section 176.111, 
 22.34  subdivision 14, is amended to read: 
 22.35     Subd. 14.  [PARENTS.] If the deceased employee leave no 
 22.36  surviving spouse or child entitled to any payment under this 
 23.1   chapter, but leaves both parents wholly dependent on deceased, 
 23.2   there shall be paid to such parents jointly 45 percent of 1.25 
 23.3   times the weekly wage at the time of the injury of the 
 23.4   deceased.  In case of the death of either of the wholly 
 23.5   dependent parents the survivor shall receive 35 percent of 1.25 
 23.6   times the weekly wage thereafter.  If the deceased employee 
 23.7   leave one parent wholly dependent on the deceased, there shall 
 23.8   be paid to such parent 35 percent of 1.25 times the weekly wage 
 23.9   at the time of the injury of the deceased employee.  The 
 23.10  compensation payments under this section shall not exceed the 
 23.11  actual contributions made by the deceased employee to the 
 23.12  support of the employee's parents for a reasonable time 
 23.13  immediately prior to the injury which caused the death of the 
 23.14  deceased employee. 
 23.15     Sec. 7.  Minnesota Statutes 1994, section 176.111, 
 23.16  subdivision 15, is amended to read: 
 23.17     Subd. 15.  [REMOTE DEPENDENTS.] If the deceased employee 
 23.18  leaves no surviving spouse or child or parent entitled to any 
 23.19  payment under this chapter, but leaves a grandparent, 
 23.20  grandchild, brother, sister, mother-in-law, or father-in-law 
 23.21  wholly dependent on the employee for support, there shall be 
 23.22  paid to such dependent, if but one, 30 percent of 1.25 times the 
 23.23  weekly wage at the time of injury of the deceased, or if more 
 23.24  than one, 35 percent of 1.25 times the weekly wage at the time 
 23.25  of the injury of the deceased, divided among them share and 
 23.26  share alike. 
 23.27     Sec. 8.  Minnesota Statutes 1994, section 176.111, 
 23.28  subdivision 20, is amended to read: 
 23.29     Subd. 20.  [ACTUAL DEPENDENTS, COMPENSATION.] Actual 
 23.30  dependents are entitled to take compensation in the order named 
 23.31  in subdivision 3 during dependency until 66-2/3 percent of 1.25 
 23.32  times the weekly wage of the deceased at the time of injury is 
 23.33  exhausted.  The total weekly compensation to be paid to full 
 23.34  actual dependents of a deceased employee shall not exceed in the 
 23.35  aggregate an amount equal to 1.25 times the maximum weekly 
 23.36  compensation for a temporary total disability.