1.1                          A bill for an act 
  1.2             relating to workers' compensation; modifying third 
  1.3             party liability provisions; requiring attorneys to 
  1.4             file statements of attorney fees; modifying special 
  1.5             compensation fund procedures; increasing the benefit 
  1.6             for burial expenses; providing alternative cost 
  1.7             allocation accounts; amending Minnesota Statutes 1998, 
  1.8             sections 176.011, subdivision 3; 176.061, subdivisions 
  1.9             3, 5, 7, 10, and by adding a subdivision; 176.081, 
  1.10            subdivision 1; 176.101, subdivisions 1, 2a, and 8; 
  1.11            176.102, subdivision 11; 176.111, subdivision 18, and 
  1.12            by adding a subdivision; 176.129, subdivisions 2, 3, 
  1.13            and 4; 176.231, subdivision 2; and 176.611, 
  1.14            subdivision 2a. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1998, section 176.011, 
  1.17  subdivision 3, is amended to read: 
  1.18     Subd. 3.  [DAILY WAGE.] "Daily wage" means the daily wage 
  1.19  of the employee in the employment engaged in at the time of 
  1.20  injury but does not include tips and gratuities paid directly to 
  1.21  an employee by a customer of the employer and not accounted for 
  1.22  by the employee to the employer.  If the amount of the daily 
  1.23  wage received or to be received by the employee in the 
  1.24  employment engaged in at the time of injury was irregular or 
  1.25  difficult to determine, or if the employment was part time, the 
  1.26  daily wage shall be computed by dividing the total amount of 
  1.27  wages, vacation pay, and holiday pay the employee actually 
  1.28  earned in such employment in the last 26 weeks, by the total 
  1.29  number of days in which the employee actually performed any of 
  1.30  the duties of such employment such wages, vacation pay, and 
  2.1   holiday pay was earned, provided further, that in the case of 
  2.2   the construction industry, mining industry, or other industry 
  2.3   where the hours of work are affected by seasonal conditions, the 
  2.4   weekly wage shall not be less than five times the daily 
  2.5   wage.  If the employee worked or earned less than a full day's 
  2.6   worth of wages, vacation pay, or holiday pay, the total amount 
  2.7   earned shall be divided by the corresponding proportion of that 
  2.8   day.  Where board or allowances other than tips and gratuities 
  2.9   are made to an employee in addition to wages as a part of the 
  2.10  wage contract they are deemed a part of earnings and computed at 
  2.11  their value to the employee.  In the case of persons performing 
  2.12  services for municipal corporations in the case of emergency, 
  2.13  then the normal working day shall be considered and computed as 
  2.14  eight hours, and in cases where such services are performed 
  2.15  gratis or without fixed compensation the daily wage of the 
  2.16  person injured shall, for the purpose of calculating 
  2.17  compensation payable under this chapter, be taken to be the 
  2.18  usual going wage paid for similar services in municipalities 
  2.19  where such services are performed by paid employees.  If, at the 
  2.20  time of injury, the employee was regularly employed by two or 
  2.21  more employers, the employee's earnings in all such employments 
  2.22  shall be included in the computation of daily wage. 
  2.23     Sec. 2.  Minnesota Statutes 1998, section 176.061, 
  2.24  subdivision 3, is amended to read: 
  2.25     Subd. 3.  [ELECTION TO RECEIVE BENEFITS FROM EMPLOYER; 
  2.26  SUBROGATION.] If the employee or the employee's dependents elect 
  2.27  to receive benefits from the employer, or the special 
  2.28  compensation fund, the employer or the special compensation fund 
  2.29  has a right of indemnity or is subrogated to the right of the 
  2.30  employee or the employee's dependents to recover damages against 
  2.31  the other party.  The employer, or the attorney general on 
  2.32  behalf of the special compensation fund, may bring legal 
  2.33  proceedings against the party and recover the aggregate amount 
  2.34  of benefits payable to or on behalf of the employee or the 
  2.35  employee's dependents, regardless of whether such benefits are 
  2.36  recoverable by the employee or the employee's dependents at 
  3.1   common law or by statute together with costs, disbursements, and 
  3.2   reasonable attorney's fees of the action. 
  3.3      If an action as provided in this chapter is prosecuted by 
  3.4   the employee, the employer, or the attorney general on behalf of 
  3.5   the special compensation fund, against the third person, and 
  3.6   results in judgment against the third person, or settlement by 
  3.7   the third person, the employer has no liability to reimburse or 
  3.8   hold the third person harmless on the judgment or settlement in 
  3.9   absence of a written agreement to do so executed prior to the 
  3.10  injury. 
  3.11     Sec. 3.  Minnesota Statutes 1998, section 176.061, 
  3.12  subdivision 5, is amended to read: 
  3.13     Subd. 5.  [CUMULATIVE REMEDIES.] If an injury or death for 
  3.14  which benefits are payable is caused under circumstances which 
  3.15  created a legal liability for damages on the part of a party 
  3.16  other than the employer, that party being then insured or 
  3.17  self-insured in accordance with this chapter, and the provisions 
  3.18  of subdivisions 1, 2, 3, and 4 do not apply, or the party other 
  3.19  than the employer is not then insured or self-insured as 
  3.20  provided by this chapter, legal proceedings may be taken by the 
  3.21  employee or the employee's dependents in accordance with clause 
  3.22  (a), or by the employer, or by the attorney general on behalf of 
  3.23  the special compensation fund, in accordance with clause (b), 
  3.24  against the other party to recover damages, notwithstanding the 
  3.25  payment of benefits by the employer or the special compensation 
  3.26  fund or their liability to pay benefits. 
  3.27     (a) If an action against the other party is brought by the 
  3.28  injured employee or the employee's dependents and a judgment is 
  3.29  obtained and paid or settlement is made with the other party, 
  3.30  the employer or the special compensation fund may deduct from 
  3.31  the benefits payable the amount actually received by the 
  3.32  employee or dependents or paid on their behalf in accordance 
  3.33  with subdivision 6.  If the action is not diligently prosecuted 
  3.34  or if the court deems it advisable in order to protect the 
  3.35  interests of the employer or the special compensation fund, upon 
  3.36  application the court may grant the employer or the special 
  4.1   compensation fund the right to intervene in the action for the 
  4.2   prosecution of the action.  If the injured employee or the 
  4.3   employee's dependents or any party on their behalf receives 
  4.4   benefits from the employer or the special compensation fund or 
  4.5   institutes proceedings to recover benefits or accepts from the 
  4.6   employer or the special compensation fund any payment on account 
  4.7   of the benefits, the employer or the special compensation fund 
  4.8   is subrogated to the rights of the employee or the employee's 
  4.9   dependents or has a right of indemnity against a third party 
  4.10  regardless of whether such benefits are recoverable by the 
  4.11  employee or the employee's dependents at common law or by 
  4.12  statute.  The employer or the attorney general on behalf of the 
  4.13  special compensation fund may maintain a separate action or 
  4.14  continue an action already instituted.  This action may be 
  4.15  maintained in the name of the employee or the names of the 
  4.16  employee's dependents, or in the name of the employer, or in the 
  4.17  name of the attorney general on behalf of the special 
  4.18  compensation fund, against the other party for the recovery of 
  4.19  damages.  If the action is not diligently prosecuted by the 
  4.20  employer or the attorney general on behalf of the special 
  4.21  compensation fund, or if the court deems it advisable in order 
  4.22  to protect the interest of the employee, the court, upon 
  4.23  application, may grant to the employee or the employee's 
  4.24  dependents the right to intervene in the action for the 
  4.25  prosecution of the action.  The proceeds of the action or 
  4.26  settlement of the action shall be paid in accordance with 
  4.27  subdivision 6. 
  4.28     (b) If an employer, being then insured, sustains damages 
  4.29  due to a change in workers' compensation insurance premiums, 
  4.30  whether by a failure to achieve a decrease or by a retroactive 
  4.31  or prospective increase, as a result of the injury or death of 
  4.32  an employee which was caused under circumstances which created a 
  4.33  legal liability for damages on the part of a party other than 
  4.34  the employer, the employer, notwithstanding other remedies 
  4.35  provided, may maintain an action against the other party for 
  4.36  recovery of the premiums.  This cause of action may be brought 
  5.1   either by joining in an action described in clause (a) or by a 
  5.2   separate action.  Damages recovered under this clause are for 
  5.3   the benefit of the employer and the provisions of subdivision 6 
  5.4   are not applicable to the damages. 
  5.5      (c) The third party is not liable to any person other than 
  5.6   the employee or the employee's dependents, or the employer, or 
  5.7   the special compensation fund, for any damages resulting from 
  5.8   the injury or death. 
  5.9      A coemployee working for the same employer is not liable 
  5.10  for a personal injury incurred by another employee unless the 
  5.11  injury resulted from the gross negligence of the coemployee or 
  5.12  was intentionally inflicted by the coemployee. 
  5.13     Sec. 4.  Minnesota Statutes 1998, section 176.061, 
  5.14  subdivision 7, is amended to read: 
  5.15     Subd. 7.  [MEDICAL TREATMENT.] The liability of an employer 
  5.16  or the special compensation fund for medical treatment or 
  5.17  payment of any other compensation under this chapter is not 
  5.18  affected by the fact that the employee was injured through the 
  5.19  fault or negligence of a third party, against whom the employee 
  5.20  may have a cause of action which may be sued under this chapter, 
  5.21  but the employer, or the attorney general on behalf of the 
  5.22  special compensation fund, has a separate additional cause of 
  5.23  action against the third party to recover any amounts paid for 
  5.24  medical treatment or for other compensation payable under this 
  5.25  section resulting from the negligence of the third 
  5.26  party regardless of whether such other compensation is 
  5.27  recoverable by the employee or the employee's dependents at 
  5.28  common law or by statute.  This separate cause of action of the 
  5.29  employer or the attorney general on behalf of the special 
  5.30  compensation fund may be asserted in a separate action brought 
  5.31  by the employer or the attorney general on behalf of the special 
  5.32  compensation fund against the third party, or in the action 
  5.33  commenced by the employee or the employer or the attorney 
  5.34  general on behalf of the special compensation fund under this 
  5.35  chapter, but in the latter case the cause of action shall be 
  5.36  separately stated, the amount awarded in the action shall be 
  6.1   separately set out in the verdict, and the amount recovered by 
  6.2   suit or otherwise as reimbursement for medical expenses or other 
  6.3   compensation shall be for the benefit of the employer or the 
  6.4   special compensation fund to the extent that the employer or the 
  6.5   special compensation fund has paid or will be required to pay 
  6.6   compensation or pay for medical treatment of the injured 
  6.7   employee and does not affect the amount of periodic compensation 
  6.8   to be paid. 
  6.9      Sec. 5.  Minnesota Statutes 1998, section 176.061, 
  6.10  subdivision 10, is amended to read: 
  6.11     Subd. 10.  [INDEMNITY.] Notwithstanding the provisions of 
  6.12  chapter 65B or any other law to the contrary, an employer has a 
  6.13  right of indemnity for any compensation paid or payable pursuant 
  6.14  to this chapter, regardless of whether such compensation is 
  6.15  recoverable by the employee or the employee's dependents at 
  6.16  common law or by statute, including temporary total 
  6.17  compensation, temporary partial compensation, permanent partial 
  6.18  compensation, medical compensation, rehabilitation, death, and 
  6.19  permanent total compensation.  
  6.20     Sec. 6.  Minnesota Statutes 1998, section 176.061, is 
  6.21  amended by adding a subdivision to read: 
  6.22     Subd. 11.  [RIGHT OF CONTRIBUTION.] To the extent the 
  6.23  employer has fault, separate from the fault of the injured 
  6.24  employee to whom workers' compensation benefits are payable, any 
  6.25  nonemployer third party who is liable has a right of 
  6.26  contribution against the employer in an amount proportional to 
  6.27  the employer's percentage of fault but not to exceed the net 
  6.28  amount the employer recovered pursuant to subdivision 6, 
  6.29  paragraphs (c) and (d).  The employer may avoid contribution 
  6.30  exposure by affirmatively waiving, before selection of the jury, 
  6.31  the right to recover workers' compensation benefits paid and 
  6.32  payable, thus removing compensation benefits from the damages 
  6.33  payable by any third party. 
  6.34     Procedurally, if the employer waives or settles the right 
  6.35  to recover workers' compensation benefits paid and payable, the 
  6.36  employee or the employee's dependents have the option to present 
  7.1   all common law or wrongful death damages whether they are 
  7.2   recoverable under the Workers' Compensation Act or not.  
  7.3   Following the verdict, the trial court will deduct any awarded 
  7.4   damages that are duplicative of workers' compensation benefits 
  7.5   paid or payable. 
  7.6      Sec. 7.  Minnesota Statutes 1998, section 176.081, 
  7.7   subdivision 1, is amended to read: 
  7.8      Subdivision 1.  [LIMITATION OF FEES.] (a) A fee for legal 
  7.9   services of 25 percent of the first $4,000 of compensation 
  7.10  awarded to the employee and 20 percent of the next $60,000 of 
  7.11  compensation awarded to the employee is the maximum permissible 
  7.12  fee and does not require approval by the commissioner, 
  7.13  compensation judge, or any other party.  All fees, including 
  7.14  fees for obtaining medical or rehabilitation benefits, must be 
  7.15  calculated according to the formula under this subdivision, 
  7.16  except as otherwise provided in clause (1) or (2).  
  7.17     (1) The contingent attorney fee for recovery of monetary 
  7.18  benefits according to the formula in this section is presumed to 
  7.19  be adequate to cover recovery of medical and rehabilitation 
  7.20  benefit or services concurrently in dispute.  Attorney fees for 
  7.21  recovery of medical or rehabilitation benefits or services shall 
  7.22  be assessed against the employer or insurer only if the attorney 
  7.23  establishes that the contingent fee is inadequate to reasonably 
  7.24  compensate the attorney for representing the employee in the 
  7.25  medical or rehabilitation dispute.  In cases where the 
  7.26  contingent fee is inadequate the employer or insurer is liable 
  7.27  for attorney fees based on the formula in this subdivision or in 
  7.28  clause (2). 
  7.29     For the purposes of applying the formula where the employer 
  7.30  or insurer is liable for attorney fees, the amount of 
  7.31  compensation awarded for obtaining disputed medical and 
  7.32  rehabilitation benefits under sections 176.102, 176.135, and 
  7.33  176.136 shall be the dollar value of the medical or 
  7.34  rehabilitation benefit awarded, where ascertainable.  
  7.35     (2) The maximum attorney fee for obtaining a change of 
  7.36  doctor or qualified rehabilitation consultant, or any other 
  8.1   disputed medical or rehabilitation benefit for which a dollar 
  8.2   value is not reasonably ascertainable, is the amount charged in 
  8.3   hourly fees for the representation or $500, whichever is less, 
  8.4   to be paid by the employer or insurer. 
  8.5      (3) The fees for obtaining disputed medical or 
  8.6   rehabilitation benefits are included in the $13,000 limit in 
  8.7   paragraph (b).  An attorney must concurrently file all 
  8.8   outstanding disputed issues.  An attorney is not entitled to 
  8.9   attorney fees for representation in any issue which could 
  8.10  reasonably have been addressed during the pendency of other 
  8.11  issues for the same injury. 
  8.12     (b) All fees for legal services related to the same injury 
  8.13  are cumulative and may not exceed $13,000.  If multiple injuries 
  8.14  are the subject of a dispute, the commissioner, compensation 
  8.15  judge, or court of appeals shall specify the attorney fee 
  8.16  attributable to each injury.  
  8.17     (c) If the employer or the insurer or the defendant is 
  8.18  given written notice of claims for legal services or 
  8.19  disbursements, the claim shall be a lien against the amount paid 
  8.20  or payable as compensation.  Subject to the foregoing maximum 
  8.21  amount for attorney fees, up to 25 percent of the first $4,000 
  8.22  of periodic compensation awarded to the employee and 20 percent 
  8.23  of the next $60,000 of periodic compensation awarded to the 
  8.24  employee may be withheld from the periodic payments for attorney 
  8.25  fees or disbursements if the payor of the funds clearly 
  8.26  indicates on the check or draft issued to the employee for 
  8.27  payment the purpose of the withholding, the name of the 
  8.28  attorney, the amount withheld, and the gross amount of the 
  8.29  compensation payment before withholding.  In no case shall fees 
  8.30  be calculated on the basis of any undisputed portion of 
  8.31  compensation awards.  Allowable fees under this chapter shall be 
  8.32  based solely upon genuinely disputed claims or portions of 
  8.33  claims, including disputes related to the payment of 
  8.34  rehabilitation benefits or to other aspects of a rehabilitation 
  8.35  plan.  The existence of a dispute is dependent upon a 
  8.36  disagreement after the employer or insurer has had adequate time 
  9.1   and information to take a position on liability.  Neither the 
  9.2   holding of a hearing nor the filing of an application for a 
  9.3   hearing alone may determine the existence of a dispute.  Except 
  9.4   where the employee is represented by an attorney in other 
  9.5   litigation pending at the department or at the office of 
  9.6   administrative hearings, a fee may not be charged after June 1, 
  9.7   1996, for services with respect to a medical or rehabilitation 
  9.8   issue arising under section 176.102, 176.135, or 176.136 
  9.9   performed before the employee has consulted with the department 
  9.10  and the department certifies that there is a dispute and that it 
  9.11  has tried to resolve the dispute.  
  9.12     (d) An attorney who is claiming legal fees for representing 
  9.13  an employee in a workers' compensation matter shall file a 
  9.14  statement of attorney fees with the commissioner, compensation 
  9.15  judge before whom the matter was heard, or workers' compensation 
  9.16  court of appeals on cases before the court.  A copy of the 
  9.17  signed retainer agreement shall also be filed.  The employee and 
  9.18  insurer shall receive a copy of the statement.  The statement 
  9.19  shall be on a form prescribed by the commissioner and shall 
  9.20  report the number of hours spent on the case.  
  9.21     (e) Employers and insurers may not pay attorney fees or 
  9.22  wages for legal services of more than $13,000 per case.  
  9.23     (f) Each insurer and self-insured employer shall file 
  9.24  annual statements with the commissioner detailing the total 
  9.25  amount of legal fees and other legal costs incurred by the 
  9.26  insurer or employer during the year.  The statement shall 
  9.27  include the amount paid for outside and in-house counsel, 
  9.28  deposition and other witness fees, and all other costs relating 
  9.29  to litigation. 
  9.30     (g) An attorney must file a statement of attorney fees 
  9.31  within 12 months of the date the attorney has submitted the 
  9.32  written notice specified in paragraph (c).  If the attorney has 
  9.33  not filed a statement of attorney fees within the 12 months, the 
  9.34  attorney must send a renewed notice of lien to the insurer.  If 
  9.35  12 months has elapsed since the last notice of lien has been 
  9.36  received by the insurer and no statement of attorney fees has 
 10.1   been filed, the insurer must release the withheld money to the 
 10.2   employee, except that before releasing the money to the 
 10.3   employee, the insurer must give the attorney 30 days written 
 10.4   notice of the pending release.  The insurer must not release the 
 10.5   money if the attorney files a statement of attorney fees within 
 10.6   the 30 days.  
 10.7      Sec. 8.  Minnesota Statutes 1998, section 176.101, 
 10.8   subdivision 1, is amended to read: 
 10.9      Subdivision 1.  [TEMPORARY TOTAL DISABILITY.] (a) For 
 10.10  injury producing temporary total disability, the compensation is 
 10.11  66-2/3 percent of the weekly wage at the time of injury. 
 10.12     (b)  (1) Commencing on October 1, 1995, the maximum weekly 
 10.13  compensation payable is $615 per week. 
 10.14     (2) The workers' compensation advisory council may consider 
 10.15  adjustment increases and make recommendations to the legislature.
 10.16     (c) The minimum weekly compensation payable is $104 per 
 10.17  week or the injured employee's actual weekly wage, whichever is 
 10.18  less.  
 10.19     (d) Temporary total compensation shall be paid during the 
 10.20  period of disability subject to the cessation and recommencement 
 10.21  conditions in paragraphs (e) to (l). 
 10.22     (e) Temporary total disability compensation shall cease 
 10.23  when the employee returns to work.  Except as otherwise provided 
 10.24  in section 176.102, subdivision 11, temporary total disability 
 10.25  compensation may only be recommenced following cessation under 
 10.26  this paragraph, paragraph (h), or paragraph (j) prior to payment 
 10.27  of 104 weeks of temporary total disability compensation and only 
 10.28  as follows: 
 10.29     (1) if temporary total disability compensation ceased 
 10.30  because the employee returned to work, it may be recommenced if 
 10.31  the employee is laid off or terminated for reasons other than 
 10.32  misconduct within one year after returning to work if the layoff 
 10.33  or termination occurs prior to 90 days after the employee has 
 10.34  reached maximum medical improvement.  Recommenced temporary 
 10.35  total disability compensation under this clause ceases when any 
 10.36  of the cessation events in paragraphs (e) to (l) occurs; or 
 11.1      (2) if temporary total disability compensation ceased 
 11.2   because the employee returned to work or ceased under paragraph 
 11.3   (h) or (j), it may be recommenced if the employee is medically 
 11.4   unable to continue at a job due to the injury.  Where the 
 11.5   employee is medically unable to continue working due to the 
 11.6   injury, temporary total disability compensation may continue 
 11.7   until any of the cessation events in paragraphs (e) to (l) 
 11.8   occurs following recommencement.  If an employee who has not yet 
 11.9   received temporary total disability compensation becomes 
 11.10  medically unable to continue working due to the injury after 
 11.11  reaching maximum medical improvement, temporary total disability 
 11.12  compensation shall commence and shall continue until any of the 
 11.13  events in paragraphs (e) to (l) occurs following commencement.  
 11.14  For purposes of commencement or recommencement under this clause 
 11.15  only, a new period of maximum medical improvement under 
 11.16  paragraph (j) begins when the employee becomes medically unable 
 11.17  to continue working due to the injury.  Temporary total 
 11.18  disability compensation may not be recommenced under this clause 
 11.19  and a new period of maximum medical improvement does not begin 
 11.20  if the employee is not actively employed when the employee 
 11.21  becomes medically unable to work.  All periods of initial and 
 11.22  recommenced temporary total disability compensation are included 
 11.23  in the 104-week limitation specified in paragraph (k).  
 11.24     (f) Temporary total disability compensation shall cease if 
 11.25  the employee withdraws from the labor market.  Temporary total 
 11.26  disability compensation may be recommenced following cessation 
 11.27  under this paragraph only if the employee reenters the labor 
 11.28  market prior to 90 days after the employee reached maximum 
 11.29  medical improvement and prior to payment of 104 weeks of 
 11.30  temporary total disability compensation.  Once recommenced, 
 11.31  temporary total disability ceases when any of the cessation 
 11.32  events in paragraphs (e) to (l) occurs. 
 11.33     (g) Temporary total disability compensation shall cease if 
 11.34  the total disability ends and the employee fails to diligently 
 11.35  search for appropriate work within the employee's physical 
 11.36  restrictions.  Temporary total disability compensation may be 
 12.1   recommenced following cessation under this paragraph only if the 
 12.2   employee begins diligently searching for appropriate work within 
 12.3   the employee's physical restrictions prior to 90 days after 
 12.4   maximum medical improvement and prior to payment of 104 weeks of 
 12.5   temporary total disability compensation.  Once recommenced, 
 12.6   temporary total disability compensation ceases when any of the 
 12.7   cessation events in paragraphs (e) to (l) occurs. 
 12.8      (h) Temporary total disability compensation shall cease if 
 12.9   the employee has been released to work without any physical 
 12.10  restrictions caused by the work injury. 
 12.11     (i) Temporary total disability compensation shall cease if 
 12.12  the employee refuses an offer of work that is consistent with a 
 12.13  plan of rehabilitation filed with the commissioner which meets 
 12.14  the requirements of section 176.102, subdivision 4, or, if no 
 12.15  plan has been filed, the employee refuses an offer of gainful 
 12.16  employment that the employee can do in the employee's physical 
 12.17  condition.  Once temporary total disability compensation has 
 12.18  ceased under this paragraph, it may not be recommenced. 
 12.19     (j) Temporary total disability compensation shall cease 90 
 12.20  days after the employee has reached maximum medical improvement, 
 12.21  except as provided in section 176.102, subdivision 11, paragraph 
 12.22  (b).  For purposes of this subdivision, the 90-day period after 
 12.23  maximum medical improvement commences on the earlier of:  (1) 
 12.24  the date that the employee receives a written medical report 
 12.25  indicating that the employee has reached maximum medical 
 12.26  improvement; or (2) the date that the employer or insurer serves 
 12.27  the report on the employee and the employee's attorney, if any.  
 12.28  Once temporary total disability compensation has ceased under 
 12.29  this paragraph, it may not be recommenced except if the employee 
 12.30  returns to work and is subsequently medically unable to continue 
 12.31  working as provided in paragraph (e), clause (2). 
 12.32     (k) Temporary total disability compensation shall cease 
 12.33  entirely when 104 weeks of temporary total disability 
 12.34  compensation have been paid, except as provided in section 
 12.35  176.102, subdivision 11, paragraph (b).  Notwithstanding 
 12.36  anything in this section to the contrary, initial and 
 13.1   recommenced temporary total disability compensation combined 
 13.2   shall not be paid for more than 104 weeks, regardless of the 
 13.3   number of weeks that have elapsed since the injury, except that 
 13.4   if the employee is in a retraining plan approved under section 
 13.5   176.102, subdivision 11, the 104 week limitation shall not apply 
 13.6   during the retraining, but is subject to the limitation before 
 13.7   the plan begins and after the plan ends. 
 13.8      (l) Paragraphs (e) to (k) do not limit other grounds under 
 13.9   law to suspend or discontinue temporary total disability 
 13.10  compensation provided under this chapter. 
 13.11     Sec. 9.  Minnesota Statutes 1998, section 176.101, 
 13.12  subdivision 2a, is amended to read: 
 13.13     Subd. 2a.  [PERMANENT PARTIAL DISABILITY.] (a) Compensation 
 13.14  for permanent partial disability is as provided in this 
 13.15  subdivision.  Permanent partial disability must be rated as a 
 13.16  percentage of the whole body in accordance with rules adopted by 
 13.17  the commissioner under section 176.105.  The percentage 
 13.18  determined pursuant to the rules must be multiplied by the 
 13.19  corresponding amount in the following table: 
 13.20        Impairment rating                   Amount
 13.21            (percent)
 13.22              0-25                        $ 75,000
 13.23             26-30                          80,000
 13.24             31-35                          85,000
 13.25             36-40                          90,000
 13.26             41-45                          95,000
 13.27             46-50                         100,000
 13.28             51-55                         120,000
 13.29             56-60                         140,000
 13.30             61-65                         160,000
 13.31             66-70                         180,000
 13.32             71-75                         200,000
 13.33             76-80                         240,000
 13.34             81-85                         280,000
 13.35             86-90                         320,000
 13.36             91-95                         360,000
 14.1              96-100                        400,000
 14.2   An employee may not receive compensation for more than a 100 
 14.3   percent disability of the whole body, even if the employee 
 14.4   sustains disability to two or more body parts. 
 14.5      (b) Permanent partial disability is payable upon cessation 
 14.6   of temporary total disability under subdivision 1.  If the 
 14.7   employee requests payment in a lump sum, then the compensation 
 14.8   must be paid within 30 days.  This lump sum payment may be 
 14.9   discounted to the present value calculated up to a maximum five 
 14.10  percent basis.  If the employee does not choose to receive the 
 14.11  compensation in a lump sum, then the compensation is payable in 
 14.12  installments at the same intervals and in the same amount as the 
 14.13  employee's temporary total disability rate on the date of injury.
 14.14  Permanent partial disability is not payable while temporary 
 14.15  total compensation is being paid. 
 14.16     Sec. 10.  Minnesota Statutes 1998, section 176.101, 
 14.17  subdivision 8, is amended to read: 
 14.18     Subd. 8.  [CESSATION OF BENEFITS.] Temporary total 
 14.19  disability payments shall cease at retirement.  "Retirement" 
 14.20  means that a preponderance of the evidence supports a conclusion 
 14.21  that an employee has retired.  The subjective statement of an 
 14.22  employee that the employee is not retired is not sufficient in 
 14.23  itself to rebut objective evidence of retirement but may be 
 14.24  considered along with other evidence.  
 14.25     For injuries occurring after January 1, 1984, an employee 
 14.26  who receives social security old age and survivors insurance 
 14.27  retirement benefits under the Social Security Act, Public Law 
 14.28  Number 98-21, as amended, is presumed retired from the labor 
 14.29  market.  This presumption is For injuries occurring after 
 14.30  October 1, 1999, an employee who receives any other 
 14.31  service-based government retirement pension is presumed retired 
 14.32  from the labor market.  The term "service-based government 
 14.33  retirement pension" does not include disability-based government 
 14.34  pensions.  These presumptions are rebuttable by a preponderance 
 14.35  of the evidence. 
 14.36     Sec. 11.  Minnesota Statutes 1998, section 176.102, 
 15.1   subdivision 11, is amended to read: 
 15.2      Subd. 11.  [RETRAINING; COMPENSATION.] (a) Retraining is 
 15.3   limited to 156 weeks.  An employee who has been approved for 
 15.4   retraining may petition the commissioner or compensation judge 
 15.5   for additional compensation not to exceed 25 percent of the 
 15.6   compensation otherwise payable.  If the commissioner or 
 15.7   compensation judge determines that this additional compensation 
 15.8   is warranted due to unusual or unique circumstances of the 
 15.9   employee's retraining plan, the commissioner may award 
 15.10  additional compensation in an amount not to exceed the 
 15.11  employee's request.  This additional compensation shall cease at 
 15.12  any time the commissioner or compensation judge determines the 
 15.13  special circumstances are no longer present.  
 15.14     (b) If the employee is not employed during a retraining 
 15.15  plan that has been specifically approved under this section, 
 15.16  temporary total compensation is payable for up to 90 days after 
 15.17  the end of the retraining plan; except that, payment during the 
 15.18  90-day period is subject to cessation in accordance with section 
 15.19  176.101.  If the employee is employed during the retraining plan 
 15.20  but earning less than at the time of injury, temporary partial 
 15.21  compensation is payable at the rate of 66-2/3 percent of the 
 15.22  difference between the employee's weekly wage at the time of 
 15.23  injury and the weekly wage the employee is able to earn in the 
 15.24  employee's partially disabled condition, subject to the maximum 
 15.25  rate for temporary total compensation.  Temporary partial 
 15.26  compensation is not subject to the 225-week or 450-week 
 15.27  limitations provided by section 176.101, subdivision 2, during 
 15.28  the retraining plan, but is subject to those limitations before 
 15.29  and after the plan. 
 15.30     (c) Any request for retraining shall be filed with the 
 15.31  commissioner before 104 156 weeks of any combination of 
 15.32  temporary total or temporary partial compensation have been paid.
 15.33  Retraining shall not be available after 104 156 weeks of any 
 15.34  combination of temporary total or temporary partial compensation 
 15.35  benefits have been paid unless the request for the retraining 
 15.36  has been filed with the commissioner prior to the time the 104 
 16.1   156 weeks of compensation have been paid.  
 16.2      (d) The employer or insurer must notify the employee in 
 16.3   writing of the 104 156 week limitation for filing a request for 
 16.4   retraining with the commissioner.  This notice must be given 
 16.5   before 80 weeks of temporary total disability or temporary 
 16.6   partial disability compensation have been paid, regardless of 
 16.7   the number of weeks that have elapsed since the date of injury.  
 16.8   If the notice is not given before the 80 weeks, the period of 
 16.9   time within which to file a request for retraining is extended 
 16.10  by the number of days the notice is late, but in no event may a 
 16.11  request be filed later than 225 weeks after any combination of 
 16.12  temporary total disability or temporary partial disability 
 16.13  compensation have been paid.  The commissioner may assess a 
 16.14  penalty of $25 per day that the notice is late, up to a maximum 
 16.15  penalty of $2,000, against an employer or insurer for failure to 
 16.16  provide the notice.  The penalty is payable to the assigned risk 
 16.17  safety account. 
 16.18     Sec. 12.  Minnesota Statutes 1998, section 176.111, 
 16.19  subdivision 18, is amended to read: 
 16.20     Subd. 18.  [BURIAL EXPENSE.] In all cases where death 
 16.21  results to an employee from a personal injury arising out of and 
 16.22  in the course of employment, the employer shall pay 
 16.23  the reasonable expense of burial, not exceeding in 
 16.24  amount $7,500 $15,000.  In case any dispute arises as to the 
 16.25  reasonable value of the services rendered in connection with the 
 16.26  burial, its reasonable value shall be determined and approved by 
 16.27  the commissioner, a compensation judge, or workers' compensation 
 16.28  court of appeals, in cases upon appeal, before payment, after 
 16.29  reasonable notice to interested parties as is required by the 
 16.30  commissioner.  If the deceased leaves no dependents, no 
 16.31  compensation is payable, except as provided by this chapter. 
 16.32     Sec. 13.  Minnesota Statutes 1998, section 176.111, is 
 16.33  amended by adding a subdivision to read: 
 16.34     Subd. 22.  [PAYMENTS TO ESTATE; DEATH OF EMPLOYEE.] In 
 16.35  every case of death of an employee resulting from personal 
 16.36  injury arising out of and in the course of employment where 
 17.1   there are no persons entitled to monetary benefits of dependency 
 17.2   compensation, the employer shall pay to the estate of the 
 17.3   deceased employee the sum of $25,000. 
 17.4      Sec. 14.  Minnesota Statutes 1998, section 176.129, 
 17.5   subdivision 2, is amended to read: 
 17.6      Subd. 2.  [PAYMENTS TO FUND, DEATH.] In every case of death 
 17.7   of an employee resulting from personal injury arising out of and 
 17.8   in the course of employment where there are no persons entitled 
 17.9   to monetary benefits of dependency compensation, the employer 
 17.10  shall pay to the commissioner the sum of $25,000 for the benefit 
 17.11  of the special compensation fund.  In every case of death of an 
 17.12  employee resulting from personal injury arising out of and in 
 17.13  the course of employment where there are no persons entitled to 
 17.14  at least $25,000 in monetary benefits of dependency 
 17.15  compensation, the employer shall pay to the commissioner for the 
 17.16  benefit of the special compensation fund the difference between 
 17.17  the amounts actually paid for the dependency benefits and 
 17.18  $25,000; but in no event shall the employer pay the commissioner 
 17.19  less than $5,000.  
 17.20     Sec. 15.  Minnesota Statutes 1998, section 176.129, 
 17.21  subdivision 3, is amended to read: 
 17.22     Subd. 3.  [PAYMENTS TO FUND, INJURY.] If an employee 
 17.23  suffers a personal injury resulting in permanent partial 
 17.24  disability, temporary total disability, temporary partial 
 17.25  disability, permanent total disability, or death and the 
 17.26  employee or the employee's dependents are entitled to 
 17.27  compensation under sections 176.101 or 176.111 the employer 
 17.28  shall pay to the commissioner a lump sum amount, without any 
 17.29  interest deduction, equal to 20 percent of the total 
 17.30  compensation payable.  The rate under this subdivision shall be 
 17.31  adjusted as provided under subdivision 4a and applies to 
 17.32  injuries occurring after June 1, 1971, for payments made on or 
 17.33  after January 1, 1984.  This payment is to be credited to the 
 17.34  special compensation fund and shall be in addition to any 
 17.35  compensation payments made by the employer under this chapter. 
 17.36  Payment shall be made as soon as the amount is determined and 
 18.1   approved by and the completed assessment form shall be submitted 
 18.2   to the commissioner no later than April 1 and August 15 of the 
 18.3   same calendar year.  
 18.4      Sec. 16.  Minnesota Statutes 1998, section 176.129, 
 18.5   subdivision 4, is amended to read: 
 18.6      Subd. 4.  [TIME OF INJURY.] Subdivision 3 applies to all 
 18.7   workers' compensation payments, exclusive of medical costs, paid 
 18.8   under section 176.101 or 176.111 for an injury or death 
 18.9   occurring on or after June 1, 1971.  
 18.10     Payments made for personal injuries that occurred prior to 
 18.11  June 1, 1971, shall be reported to the special compensation fund 
 18.12  but shall not be assessed at the rate in effect on the date of 
 18.13  occurrence.  
 18.14     Sec. 17.  Minnesota Statutes 1998, section 176.231, 
 18.15  subdivision 2, is amended to read: 
 18.16     Subd. 2.  [INITIAL REPORT, WRITTEN REPORT.] Where 
 18.17  subdivision 1 requires an injury to be reported within 48 hours, 
 18.18  the employer may make an initial report by telephone, telegraph, 
 18.19  or personal notice, and file a written report of the injury 
 18.20  within seven days from its occurrence or within such time as the 
 18.21  commissioner of labor and industry designates.  All written 
 18.22  reports of injuries required by subdivision 1 shall include the 
 18.23  date of injury, amounts of payments made, if any, and the date 
 18.24  of the first payment.  The reports shall be on a form designed 
 18.25  by the commissioner, with a clear copy suitable for imaging to 
 18.26  the commissioner, one copy to the insurer, and one copy to the 
 18.27  employee.  
 18.28     The employer must detach and give the employee the second 
 18.29  page of the first report of injury titled "Minnesota Workers' 
 18.30  Compensation System Quick Reference Guide" at the time the 
 18.31  employee is given a copy of the first report of injury. 
 18.32     If an insurer or self-insurer repeatedly fails to pay 
 18.33  benefits within three days of the due date, pursuant to section 
 18.34  176.221, the insurer or self-insurer shall be ordered by the 
 18.35  commissioner to explain, in person, the failure to pay benefits 
 18.36  due in a reasonable time.  If prompt payments are not thereafter 
 19.1   made, the commissioner shall refer the insurer or self-insurer 
 19.2   to the commissioner of commerce for action pursuant to section 
 19.3   176.225, subdivision 4. 
 19.4      Sec. 18.  Minnesota Statutes 1998, section 176.611, 
 19.5   subdivision 2a, is amended to read: 
 19.6      Subd. 2a.  [SETTLEMENT AND CONTINGENCY RESERVE ALTERNATIVE 
 19.7   COST ALLOCATION ACCOUNT.] To reduce long-term costs, minimize 
 19.8   impairment to agency operations and budgets, and distribute risk 
 19.9   of one-time catastrophic claims, the commissioner of employee 
 19.10  relations shall maintain a separate account within the state 
 19.11  compensation revolving fund.  The account shall be used to pay 
 19.12  for lump-sum or annuitized settlements, structured claim 
 19.13  settlements, and one-time large, legal, catastrophic medical, 
 19.14  indemnity, or other irregular claim costs that might otherwise 
 19.15  pose a significant burden for agencies.  The commissioner of 
 19.16  employee relations, with the approval of the commissioner of 
 19.17  finance, may establish criteria and procedures for payment from 
 19.18  the account on an agency's behalf.  The commissioner of employee 
 19.19  relations may assess agencies on a reimbursement or premium 
 19.20  basis from time to time to ensure adequate account reserves.  
 19.21  The account consists of appropriations from the general fund, 
 19.22  receipts from billings to agencies, and credited investment 
 19.23  gains or losses attributable to balances in the account.  The 
 19.24  state board of investment shall invest the assets of the account 
 19.25  according to section 11A.24. 
 19.26     Sec. 19.  [EFFECTIVE DATE.] 
 19.27     Sections 1, 8, 9, 11, and 12 are effective for dates of 
 19.28  injury on or after October 1, 1999.  Section 7 is effective for 
 19.29  written notices of claims for legal services that were filed on 
 19.30  or after August 1, 1999.  Section 13 is effective for dates of 
 19.31  injury on or after the day following final enactment.