1.1 	A bill for an act
1.2 	relating to workers' compensation; adopting recommendations of the Workers' 
1.3 	Compensation Advisory Council;amending Minnesota Statutes 2006, sections 
1.4 	176.011, subdivision 9; 176.041, subdivision 1; 176.101, subdivision 1; 176.102, 
1.5 	subdivisions 2, 11; 176.135, by adding a subdivision; 176.136, subdivisions 1a, 
1.6 	1b; 176.1812, subdivision 1; 176.183, subdivision 1; 176.185, subdivision 8a; 
1.7 	176.231, subdivision 10; 176.245; 176.275, subdivision 1; 176.285; 176.83, 
1.8 	subdivision 7; repealing Minnesota Statutes 2006, sections 176.1041; 176.669.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2006, section 176.011, subdivision 9, is amended to read:
1.11 		Subd. 9.Employee. "Employee" means any person who performs services for 
1.12 	another for hire including the following:
1.13 	(1) an alien;
1.14 	(2) a minor;
1.15 	(3) a sheriff, deputy sheriff, police officer, firefighter, county highway engineer, and 
1.16 	peace officer while engaged in the enforcement of peace or in the pursuit or capture of a 
1.17 	person charged with or suspected of crime;
1.18 	(4) a person requested or commanded to aid an officer in arresting or retaking a 
1.19 	person who has escaped from lawful custody, or in executing legal process, in which 
1.20 	cases, for purposes of calculating compensation under this chapter, the daily wage of the 
1.21 	person shall be the prevailing wage for similar services performed by paid employees;
1.22 	(5) a county assessor;
1.23 	(6) an elected or appointed official of the state, or of a county, city, town, school 
1.24 	district, or governmental subdivision in the state. An officer of a political subdivision 
1.25 	elected or appointed for a regular term of office, or to complete the unexpired portion of a 
2.1 	regular term, shall be included only after the governing body of the political subdivision 
2.2 	has adopted an ordinance or resolution to that effect;
2.3 	(7) an executive officer of a corporation, except those executive officers excluded 
2.4 	by section 176.041;
2.5 	(8) a voluntary uncompensated worker, other than an inmate, rendering services in 
2.6 	state institutions under the commissioners of human services and corrections similar to 
2.7 	those of officers and employees of the institutions, and whose services have been accepted 
2.8 	or contracted for by the commissioner of human services or corrections as authorized by 
2.9 	law. In the event of injury or death of the worker, the daily wage of the worker, for the 
2.10 	purpose of calculating compensation under this chapter, shall be the usual wage paid at 
2.11 	the time of the injury or death for similar services in institutions where the services are 
2.12 	performed by paid employees;
2.13 	(9) a voluntary uncompensated worker engaged in emergency management as 
2.14 	defined in section 12.03, subdivision 4, who is:
2.15 	(i) registered with the state or any political subdivision of it, according to the 
2.16 	procedures set forth in the state or political subdivision emergency operations plan; and
2.17 	(ii) acting under the direction and control of, and within the scope of duties approved 
2.18 	by, the state or political subdivision.
2.19 	The daily wage of the worker, for the purpose of calculating compensation under this 
2.20 	chapter, shall be the usual wage paid at the time of the injury or death for similar services 
2.21 	performed by paid employees;
2.22 	(10) a voluntary uncompensated worker participating in a program established by a 
2.23 	local social services agency. For purposes of this clause, "local social services agency" 
2.24 	means any agency established under section 393.01. In the event of injury or death of the 
2.25 	worker, the wage of the worker, for the purpose of calculating compensation under this 
2.26 	chapter, shall be the usual wage paid in the county at the time of the injury or death for 
2.27 	similar services performed by paid employees working a normal day and week;
2.28 	(11) a voluntary uncompensated worker accepted by the commissioner of natural 
2.29 	resources who is rendering services as a volunteer pursuant to section 84.089. The daily 
2.30 	wage of the worker for the purpose of calculating compensation under this chapter, shall 
2.31 	be the usual wage paid at the time of injury or death for similar services performed by 
2.32 	paid employees;
2.33 	(12) a voluntary uncompensated worker in the building and construction industry 
2.34 	who renders services for joint labor-management nonprofit community service projects. 
2.35 	The daily wage of the worker for the purpose of calculating compensation under this 
3.1 	chapter shall be the usual wage paid at the time of injury or death for similar services 
3.2 	performed by paid employees;
3.3 	(13) a member of the military forces, as defined in section 190.05, while in state 
3.4 	active service, as defined in section 190.05, subdivision 5a. The daily wage of the member 
3.5 	for the purpose of calculating compensation under this chapter shall be based on the 
3.6 	member's usual earnings in civil life. If there is no evidence of previous occupation or 
3.7 	earning, the trier of fact shall consider the member's earnings as a member of the military 
3.8 	forces;
3.9 	(14) a voluntary uncompensated worker, accepted by the director of the Minnesota 
3.10 	Historical Society, rendering services as a volunteer, pursuant to chapter 138. The daily 
3.11 	wage of the worker, for the purposes of calculating compensation under this chapter, 
3.12 	shall be the usual wage paid at the time of injury or death for similar services performed 
3.13 	by paid employees;
3.14 	(15) a voluntary uncompensated worker, other than a student, who renders services 
3.15 	at the Minnesota State Academy for the Deaf or the Minnesota State Academy for the 
3.16 	Blind, and whose services have been accepted or contracted for by the commissioner of 
3.17 	education, as authorized by law. In the event of injury or death of the worker, the daily 
3.18 	wage of the worker, for the purpose of calculating compensation under this chapter, shall 
3.19 	be the usual wage paid at the time of the injury or death for similar services performed in 
3.20 	institutions by paid employees;
3.21 	(16) a voluntary uncompensated worker, other than a resident of the veterans home, 
3.22 	who renders services at a Minnesota veterans home, and whose services have been 
3.23 	accepted or contracted for by the commissioner of veterans affairs, as authorized by law. 
3.24 	In the event of injury or death of the worker, the daily wage of the worker, for the purpose 
3.25 	of calculating compensation under this chapter, shall be the usual wage paid at the time of 
3.26 	the injury or death for similar services performed in institutions by paid employees;
3.27 	(17) a worker who renders in-home attendant care services to a physically disabled 
3.28 	person, and who is paid directly by the commissioner of human services for these services, 
3.29 	shall be an employee of the state within the meaning of this subdivision, but for no other 
3.30 	purpose; performing services under section 256B.0655 for a recipient in the home of the 
3.31 	recipient or in the community under section 256B.0625, subdivision 19a, who is paid from 
3.32 	government funds through a fiscal intermediary under section 256B.0655, subdivision 
3.33 	7. For purposes of maintaining workers' compensation insurance, the employer of 
3.34 	the worker is as designated in law by the commissioner of the Department of Human 
3.35 	Services, notwithstanding any other law to the contrary. If the entity designated in law 
3.36 	by the commissioner of the Department of Human Services fails to maintain workers' 
4.1 	compensation insurance covering the worker, then in the event of the worker's injury or 
4.2 	death under this chapter, the state of Minnesota, Department of Human Services, is liable 
4.3 	for the worker's compensation.
4.4 	(18) students enrolled in and regularly attending the Medical School of the 
4.5 	University of Minnesota in the graduate school program or the postgraduate program. The 
4.6 	students shall not be considered employees for any other purpose. In the event of the 
4.7 	student's injury or death, the weekly wage of the student for the purpose of calculating 
4.8 	compensation under this chapter, shall be the annualized educational stipend awarded to 
4.9 	the student, divided by 52 weeks. The institution in which the student is enrolled shall 
4.10 	be considered the "employer" for the limited purpose of determining responsibility for 
4.11 	paying benefits under this chapter;
4.12 	(19) a faculty member of the University of Minnesota employed for an academic 
4.13 	year is also an employee for the period between that academic year and the succeeding 
4.14 	academic year if:
4.15 	(a) the member has a contract or reasonable assurance of a contract from the 
4.16 	University of Minnesota for the succeeding academic year; and
4.17 	(b) the personal injury for which compensation is sought arises out of and in the 
4.18 	course of activities related to the faculty member's employment by the University of 
4.19 	Minnesota;
4.20 	(20) a worker who performs volunteer ambulance driver or attendant services is an 
4.21 	employee of the political subdivision, nonprofit hospital, nonprofit corporation, or other 
4.22 	entity for which the worker performs the services. The daily wage of the worker for the 
4.23 	purpose of calculating compensation under this chapter shall be the usual wage paid at the 
4.24 	time of injury or death for similar services performed by paid employees;
4.25 	(21) a voluntary uncompensated worker, accepted by the commissioner of 
4.26 	administration, rendering services as a volunteer at the Department of Administration. In 
4.27 	the event of injury or death of the worker, the daily wage of the worker, for the purpose of 
4.28 	calculating compensation under this chapter, shall be the usual wage paid at the time of the 
4.29 	injury or death for similar services performed in institutions by paid employees;
4.30 	(22) a voluntary uncompensated worker rendering service directly to the Pollution 
4.31 	Control Agency. The daily wage of the worker for the purpose of calculating compensation 
4.32 	payable under this chapter is the usual going wage paid at the time of injury or death for 
4.33 	similar services if the services are performed by paid employees;
4.34 	(23) a voluntary uncompensated worker while volunteering services as a first 
4.35 	responder or as a member of a law enforcement assistance organization while acting under 
4.36 	the supervision and authority of a political subdivision. The daily wage of the worker for 
5.1 	the purpose of calculating compensation payable under this chapter is the usual going 
5.2 	wage paid at the time of injury or death for similar services if the services are performed 
5.3 	by paid employees; and
5.4 	(24) a voluntary uncompensated member of the civil air patrol rendering service on 
5.5 	the request and under the authority of the state or any of its political subdivisions. The 
5.6 	daily wage of the member for the purposes of calculating compensation payable under this 
5.7 	chapter is the usual going wage paid at the time of injury or death for similar services if 
5.8 	the services are performed by paid employees.; and
5.9 	(25) a Minnesota Responds Medical Reserve Corps volunteer, as provided in 
5.10 	sections 145A.04 and 145A.06, responding at the request of or engaged in training 
5.11 	conducted by the commissioner of health. The daily wage of the volunteer for the purposes 
5.12 	of calculating compensation payable under this chapter is established in section 145A.06. 
5.13 	A person who qualifies under this clause and who may also qualify under another clause 
5.14 	of this subdivision shall receive benefits in accordance with this clause.
5.15 	If it is difficult to determine the daily wage as provided in this subdivision, the trier 
5.16 	of fact may determine the wage upon which the compensation is payable.

5.17 	EFFECTIVE DATE. Clause (25) is effective the day that amendments to 
5.18 	Minnesota Statutes, sections 145A.04 to 145A.06, related to Medical Reserve Corps 
5.19 	volunteers, are effective. The other amendments to this section are effective the day 
5.20 	following final enactment.

5.21 	Sec. 2. Minnesota Statutes 2006, section 176.041, subdivision 1, is amended to read:
5.22 		Subdivision 1.Employments excluded. This chapter does not apply to any of 
5.23 	the following:
5.24 	(a) a person employed by a common carrier by railroad engaged in interstate or 
5.25 	foreign commerce and who is covered by the Federal Employers' Liability Act, United 
5.26 	States Code, title 45, sections 51 to 60, or other comparable federal law;
5.27 	(b) a person employed by a family farm as defined by section 176.011, subdivision 
5.28 	11a; 
5.29 	(c) the spouse, parent, and child, regardless of age, of a farmer-employer working 
5.30 	for the farmer-employer;
5.31 	(d) a sole proprietor, or the spouse, parent, and child, regardless of age, of a sole 
5.32 	proprietor;
5.33 	(e) a partner engaged in a farm operation or a partner engaged in a business and the 
5.34 	spouse, parent, and child, regardless of age, of a partner in the farm operation or business;
5.35 	(f) an executive officer of a family farm corporation;
6.1 	(g) an executive officer of a closely held corporation having less than 22,880 hours 
6.2 	of payroll in the preceding calendar year, if that executive officer owns at least 25 percent 
6.3 	of the stock of the corporation;
6.4 	(h) a spouse, parent, or child, regardless of age, of an executive officer of a family 
6.5 	farm corporation as defined in section 500.24, subdivision 2, and employed by that 
6.6 	family farm corporation; 
6.7 	(i) a spouse, parent, or child, regardless of age, of an executive officer of a closely 
6.8 	held corporation who is referred to in paragraph (g);
6.9 	(j) another farmer or a member of the other farmer's family exchanging work with 
6.10 	the farmer-employer or family farm corporation operator in the same community;
6.11 	(k) a person whose employment at the time of the injury is casual and not in the 
6.12 	usual course of the trade, business, profession, or occupation of the employer;
6.13 	(l) persons who are independent contractors as defined by section 181.723 and any 
6.14 	rules adopted by the commissioner pursuant to section 176.83 except that this exclusion 
6.15 	does these exclusions do not apply to an employee of an independent contractor; 
6.16 	(m) an officer or a member of a veterans' organization whose employment 
6.17 	relationship arises solely by virtue of attending meetings or conventions of the veterans' 
6.18 	organization, unless the veterans' organization elects by resolution to provide coverage 
6.19 	under this chapter for the officer or member;
6.20 	(n) a person employed as a household worker in, for, or about a private home 
6.21 	or household who earns less than $1,000 in cash in a three-month period from a single 
6.22 	private home or household provided that a household worker who has earned $1,000 or 
6.23 	more from the household worker's present employer in a three-month period within the 
6.24 	previous year is covered by this chapter regardless of whether or not the household worker 
6.25 	has earned $1,000 in the present quarter;
6.26 	(o) persons employed by a closely held corporation who are related by blood or 
6.27 	marriage, within the third degree of kindred according to the rules of civil law, to an 
6.28 	officer of the corporation, who is referred to in paragraph (g), if the corporation files a 
6.29 	written election with the commissioner to exclude such individuals. A written election is 
6.30 	not required for a person who is otherwise excluded from this chapter by this section;
6.31 	(p) a nonprofit association which does not pay more than $1,000 in salary or wages 
6.32 	in a year;
6.33 	(q) persons covered under the Domestic Volunteer Service Act of 1973, as amended, 
6.34 	United States Code, title 42, sections 5011, et seq.;
7.1 	(r) a manager of a limited liability company having ten or fewer members and 
7.2 	having less than 22,880 hours of payroll in the preceding calendar year, if that manager 
7.3 	owns at least a 25 percent membership interest in the limited liability company;
7.4 	(s) a spouse, parent, or child, regardless of age, of a manager of a limited liability 
7.5 	company described in paragraph (r);
7.6 	(t) persons employed by a limited liability company having ten or fewer members 
7.7 	and having less than 22,880 hours of payroll in the preceding calendar year who are related 
7.8 	by blood or marriage, within the third degree of kindred according to the rules of civil law, 
7.9 	to a manager of a limited liability company described in paragraph (r), if the company files 
7.10 	a written election with the commissioner to exclude these persons. A written election is 
7.11 	not required for a person who is otherwise excluded from this chapter by this section; or
7.12 	(u) members of limited liability companies who satisfy the requirements of 
7.13 	paragraph (l).

7.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.15 	Sec. 3. Minnesota Statutes 2006, section 176.101, subdivision 1, is amended to read:
7.16 		Subdivision 1.Temporary total disability. (a) For injury producing temporary total 
7.17 	disability, the compensation is 66-2/3 percent of the weekly wage at the time of injury.
7.18 	(b)(1)  Commencing on October 1, 2000 2008, the maximum weekly compensation 
7.19 	payable is $750$850 per week.
7.20 	(2) The Workers' Compensation Advisory Council may consider adjustment 
7.21 	increases and make recommendations to the legislature.
7.22 	(c) The minimum weekly compensation payable is $130 per week or the injured 
7.23 	employee's actual weekly wage, whichever is less.
7.24 	(d) Temporary total compensation shall be paid during the period of disability 
7.25 	subject to the cessation and recommencement conditions in paragraphs (e) to (l).
7.26 	(e) Temporary total disability compensation shall cease when the employee returns 
7.27 	to work. Except as otherwise provided in section  176.102, subdivision 11, temporary 
7.28 	total disability compensation may only be recommenced following cessation under this 
7.29 	paragraph, paragraph (h), or paragraph (j) prior to payment of 104130 weeks of temporary 
7.30 	total disability compensation and only as follows: 
7.31 	(1) if temporary total disability compensation ceased because the employee returned 
7.32 	to work, it may be recommenced if the employee is laid off or terminated for reasons other 
7.33 	than misconduct if the layoff or termination occurs prior to 90 days after the employee 
7.34 	has reached maximum medical improvement. Recommenced temporary total disability 
8.1 	compensation under this clause ceases when any of the cessation events in paragraphs 
8.2 	(e) to (l) occurs; or
8.3 	(2) if temporary total disability compensation ceased because the employee returned 
8.4 	to work or ceased under paragraph (h) or (j), it may be recommenced if the employee is 
8.5 	medically unable to continue at a job due to the injury. Where the employee is medically 
8.6 	unable to continue working due to the injury, temporary total disability compensation 
8.7 	may continue until any of the cessation events in paragraphs (e) to (l) occurs following 
8.8 	recommencement. If an employee who has not yet received temporary total disability 
8.9 	compensation becomes medically unable to continue working due to the injury after 
8.10 	reaching maximum medical improvement, temporary total disability compensation shall 
8.11 	commence and shall continue until any of the events in paragraphs (e) to (l) occurs 
8.12 	following commencement. For purposes of commencement or recommencement under 
8.13 	this clause only, a new period of maximum medical improvement under paragraph 
8.14 	(j) begins when the employee becomes medically unable to continue working due to 
8.15 	the injury. Temporary total disability compensation may not be recommenced under 
8.16 	this clause and a new period of maximum medical improvement does not begin if the 
8.17 	employee is not actively employed when the employee becomes medically unable to 
8.18 	work. All periods of initial and recommenced temporary total disability compensation are 
8.19 	included in the 104-week130-week limitation specified in paragraph (k).
8.20 	(f)  Temporary total disability compensation shall cease if the employee withdraws 
8.21 	from the labor market. Temporary total disability compensation may be recommenced 
8.22 	following cessation under this paragraph only if the employee reenters the labor market 
8.23 	prior to 90 days after the employee reached maximum medical improvement and 
8.24 	prior to payment of 104130 weeks of temporary total disability compensation. Once 
8.25 	recommenced, temporary total disability ceases when any of the cessation events in 
8.26 	paragraphs (e) to (l) occurs.
8.27 	(g) Temporary total disability compensation shall cease if the total disability ends 
8.28 	and the employee fails to diligently search for appropriate work within the employee's 
8.29 	physical restrictions. Temporary total disability compensation may be recommenced 
8.30 	following cessation under this paragraph only if the employee begins diligently searching 
8.31 	for appropriate work within the employee's physical restrictions prior to 90 days after 
8.32 	maximum medical improvement and prior to payment of 104130 weeks of temporary total 
8.33 	disability compensation. Once recommenced, temporary total disability compensation 
8.34 	ceases when any of the cessation events in paragraphs (e) to (l) occurs.
8.35 	(h) Temporary total disability compensation shall cease if the employee has been 
8.36 	released to work without any physical restrictions caused by the work injury.
9.1 	(i) Temporary total disability compensation shall cease if the employee refuses an 
9.2 	offer of work that is consistent with a plan of rehabilitation filed with the commissioner 
9.3 	which meets the requirements of section  176.102, subdivision 4, or, if no plan has been 
9.4 	filed, the employee refuses an offer of gainful employment that the employee can do in the 
9.5 	employee's physical condition. Once temporary total disability compensation has ceased 
9.6 	under this paragraph, it may not be recommenced. 
9.7 	(j) Temporary total disability compensation shall cease 90 days after the employee 
9.8 	has reached maximum medical improvement, except as provided in section  176.102, 
9.9 	subdivision 11, paragraph (b). For purposes of this subdivision, the 90-day period after 
9.10 	maximum medical improvement commences on the earlier of: (1) the date that the 
9.11 	employee receives a written medical report indicating that the employee has reached 
9.12 	maximum medical improvement; or (2) the date that the employer or insurer serves the 
9.13 	report on the employee and the employee's attorney, if any. Once temporary total disability 
9.14 	compensation has ceased under this paragraph, it may not be recommenced except if the 
9.15 	employee returns to work and is subsequently medically unable to continue working 
9.16 	as provided in paragraph (e), clause (2). 
9.17 	(k) Temporary total disability compensation shall cease entirely when 104130 weeks 
9.18 	of temporary total disability compensation have been paid, except as provided in section  
9.19 	176.102, subdivision 11, paragraph (b). Notwithstanding anything in this section to the 
9.20 	contrary, initial and recommenced temporary total disability compensation combined shall 
9.21 	not be paid for more than 104130 weeks, regardless of the number of weeks that have 
9.22 	elapsed since the injury, except that if the employee is in a retraining plan approved under 
9.23 	section  176.102, subdivision 11, the 104 week130-week limitation shall not apply during 
9.24 	the retraining, but is subject to the limitation before the plan begins and after the plan ends. 
9.25 	(l) Paragraphs (e) to (k) do not limit other grounds under law to suspend or 
9.26 	discontinue temporary total disability compensation provided under this chapter.
9.27 	(m) Once an employee has been paid 52 weeks of temporary total compensation, 
9.28 	the employer or insurer must notify the employee in writing of the 104-week130-week 
9.29 	limitation on payment of temporary total compensation. A copy of this notice must also 
9.30 	be filed with the department.

9.31 	EFFECTIVE DATE. This section is effective for injuries occurring on or after 
9.32 	October 1, 2008.

9.33 	Sec. 4. Minnesota Statutes 2006, section 176.102, subdivision 2, is amended to read:
9.34 		Subd. 2.Administrators. (a) The commissioner shall hire a director of 
9.35 	rehabilitation services in the classified service. The commissioner shall monitor and 
10.1 	supervise rehabilitation services, including, but not limited to, making determinations 
10.2 	regarding the selection and delivery of rehabilitation services and the criteria used to 
10.3 	approve qualified rehabilitation consultants and rehabilitation vendors. The commissioner 
10.4 	may also make determinations regarding fees for rehabilitation services and shall by 
10.5 	rule establish a fee schedule or otherwise limit fees charged by qualified rehabilitation 
10.6 	consultants and vendors. The commissioner shall annually review the fees and give notice 
10.7 	of any adjustment in the State Register. By March 1, 1993, the commissioner shall report 
10.8 	to the legislature on the status of the commission's monitoring of rehabilitation services.
10.9 	The commissioner may hire qualified personnel to assist in the commissioner's duties 
10.10 	under this section and may delegate the duties and performance.
10.11 	(b) On October 1, 2008, the maximum hourly rate for rehabilitation services under 
10.12 	Minnesota Rules, part 5220.1900, subpart 1c, is increased to $91, and the maximum 
10.13 	hourly rate for rehabilitation services under Minnesota Rules, part 5220.1900, subpart 1d, 
10.14 	is increased to $81. These increases are in lieu of the October 1, 2008, annual increase 
10.15 	authorized by Minnesota Rules, part 5220.1900, subpart 1b. The maximum hourly rate 
10.16 	and annual increase under Minnesota Rules, part 5220.1900, subpart 1e, and the hourly 
10.17 	rate reduction under Minnesota Rules, part 5220.1900, subpart 1f, are unchanged by 
10.18 	this paragraph.

10.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.20 	Sec. 5. Minnesota Statutes 2006, section 176.102, subdivision 11, is amended to read:
10.21 		Subd. 11.Retraining; compensation. (a) Retraining is limited to 156 weeks. 
10.22 	An employee who has been approved for retraining may petition the commissioner 
10.23 	or compensation judge for additional compensation not to exceed 25 percent of the 
10.24 	compensation otherwise payable. If the commissioner or compensation judge determines 
10.25 	that this additional compensation is warranted due to unusual or unique circumstances of 
10.26 	the employee's retraining plan, the commissioner may award additional compensation in 
10.27 	an amount not to exceed the employee's request. This additional compensation shall cease 
10.28 	at any time the commissioner or compensation judge determines the special circumstances 
10.29 	are no longer present.
10.30 	(b) If the employee is not employed during a retraining plan that has been 
10.31 	specifically approved under this section, temporary total compensation is payable for up 
10.32 	to 90 days after the end of the retraining plan; except that, payment during the 90-day 
10.33 	period is subject to cessation in accordance with section 176.101. If the employee is 
10.34 	employed during the retraining plan but earning less than at the time of injury, temporary 
10.35 	partial compensation is payable at the rate of 66-2/3 percent of the difference between 
11.1 	the employee's weekly wage at the time of injury and the weekly wage the employee is 
11.2 	able to earn in the employee's partially disabled condition, subject to the maximum rate 
11.3 	for temporary total compensation. Temporary partial compensation is not subject to the 
11.4 	225-week or 450-week limitations provided by section 176.101, subdivision 2, during the 
11.5 	retraining plan, but is subject to those limitations before and after the plan. 
11.6 	(c) Any request for retraining shall be filed with the commissioner before 156208 
11.7 	weeks of any combination of temporary total or temporary partial compensation have 
11.8 	been paid. Retraining shall not be available after 156208 weeks of any combination of 
11.9 	temporary total or temporary partial compensation benefits have been paid unless the 
11.10 	request for the retraining has been filed with the commissioner prior to the time the 156
11.11 	208 weeks of compensation have been paid.
11.12 	(d) The employer or insurer must notify the employee in writing of the 156-week
11.13 	208-week limitation for filing a request for retraining with the commissioner. This notice 
11.14 	must be given before 80 weeks of temporary total disability or temporary partial disability 
11.15 	compensation have been paid, regardless of the number of weeks that have elapsed since 
11.16 	the date of injury. If the notice is not given before the 80 weeks, the period of time within 
11.17 	which to file a request for retraining is extended by the number of days the notice is late, 
11.18 	but in no event may a request be filed later than 225 weeks after any combination of 
11.19 	temporary total disability or temporary partial disability compensation have been paid. The 
11.20 	commissioner may assess a penalty of $25 per day that the notice is late, up to a maximum 
11.21 	penalty of $2,000, against an employer or insurer for failure to provide the notice. The 
11.22 	penalty is payable to the commissioner for deposit in the assigned risk safety account.

11.23 	EFFECTIVE DATE. This section is effective for injuries occurring on or after 
11.24 	October 1, 2008.

11.25 	Sec. 6. Minnesota Statutes 2006, section 176.135, is amended by adding a subdivision 
11.26 	to read:
11.27 		Subd. 1b.Complementary and alternative health care providers. Any service, 
11.28 	article, or supply provided by an unlicensed complementary and alternative health care 
11.29 	practitioner as defined in section 146A.01, subdivision 6, is not compensable under this 
11.30 	chapter.

11.31 	EFFECTIVE DATE. This section is effective for treatment, services, articles, and 
11.32 	supplies provided on or after the day following final enactment for all dates of injury.

11.33 	Sec. 7. Minnesota Statutes 2006, section 176.136, subdivision 1a, is amended to read:
12.1 		Subd. 1a.Relative value fee schedule. (a) The liability of an employer for services 
12.2 	included in the medical fee schedule is limited to the maximum fee allowed by the 
12.3 	schedule in effect on the date of the medical service, or the provider's actual fee, whichever 
12.4 	is lower. The medical fee schedule effective on October 1, 1991, remains in effect until 
12.5 	the commissioner adopts a new schedule by permanent rule. The commissioner shall 
12.6 	adopt permanent rules regulating fees allowable for medical, chiropractic, podiatric, 
12.7 	surgical, and other health care provider treatment or service, including those provided 
12.8 	to hospital outpatients, by implementing a relative value fee schedule to be effective 
12.9 	on October 1, 1993. The commissioner may adopt by reference, according to the 
12.10 	procedures in paragraph (h), clause (2),  the relative value fee schedule tables adopted for 
12.11 	the federal Medicare program or a relative value fee schedule adopted by other federal 
12.12 	or state agencies. The relative value fee schedule must contain reasonable classifications 
12.13 	including, but not limited to, classifications that differentiate among health care provider 
12.14 	disciplines. The conversion factors for the original relative value fee schedule must 
12.15 	reasonably reflect a 15 percent overall reduction from the medical fee schedule most 
12.16 	recently in effect. The reduction need not be applied equally to all treatment or services, 
12.17 	but must represent a gross 15 percent reduction.
12.18 	(b) Effective October 1, 2005, the commissioner shall remove all scaling factors 
12.19 	from the relative value units and establish four separate conversion factors according to 
12.20 	paragraphs (c) and (d) for each of the following parts of Minnesota Rules:
12.21 	(1) Medical/surgical services in Minnesota Rules, part 5221.4030, as defined in part 
12.22 	5221.0700, subpart 3, item C, subitem (2);
12.23 	(2) Pathology and laboratory services in Minnesota Rules, part 5221.4040, as 
12.24 	defined in part 5221.0700, subpart 3, item C, subitem (3);
12.25 	(3) Physical medicine and rehabilitation services in Minnesota Rules, part 
12.26 	5221.4050, as defined in part 5221.0700, subpart 3, item C, subitem (4); and
12.27 	(4) Chiropractic services in Minnesota Rules, part 5221.4060, as defined in part 
12.28 	5221.0700, subpart 3, item C, subitem (5).
12.29 	(c) The four conversion factors established under paragraph (b) shall be calculated 
12.30 	so that there is no change in each maximum fee for each service under the current fee 
12.31 	schedule, except as provided in paragraphs (d) and (e).
12.32 	(d) By October 1, 2006, the conversion factor for chiropractic services described in 
12.33 	paragraph (b), clause (4), shall be increased to equal 72 percent of the conversion factor 
12.34 	for medical/surgical services described in paragraph (b), clause (1). Beginning October 1, 
12.35 	2005, the increase in chiropractic conversion factor shall be phased in over two years by 
12.36 	approximately equal percentage point increases.
13.1 	(e) When adjusting the conversion factors in accordance with paragraph (g) on 
13.2 	October 1, 2005, and October 1, 2006, the commissioner may adjust by no less than zero, 
13.3 	all of the conversion factors as necessary to offset any overall increase in payments under 
13.4 	the fee schedule resulting from the increase in the chiropractic conversion factor.
13.5 	(f) The commissioner shall give notice of the relative value units and conversion 
13.6 	factors established under paragraphs (b), (c), and (d) according to the procedures in 
13.7 	section 14.386, paragraph (a). The relative value units and conversion factors established 
13.8 	under paragraphs (b), (c), and (d) are not subject to expiration under section 14.386, 
13.9 	paragraph (b).
13.10 	(g) The conversion factors shall be adjusted as follows:
13.11 	(1) After permanent rules have been adopted to implement this section, the 
13.12 	conversion factors must be adjusted annually on October 1 by no more than the percentage 
13.13 	change computed under section 176.645, but without the annual cap provided by that 
13.14 	section.
13.15 	(2) Each time the workers' compensation relative value fee schedule tables are 
13.16 	updated under paragraph (h), the commissioner shall adjust the conversion factors so that, 
13.17 	for services in both fee schedules, there is no difference between the overall payment in 
13.18 	each category of service listed in paragraph (b) under the new schedule and the overall 
13.19 	payment for that category under the workers' compensation fee schedule most recently 
13.20 	in effect. This adjustment must be made before making any additional adjustment under 
13.21 	clause (1).
13.22 	(h) The commissioner shall give notice of the adjusted conversion factors and 
13.23 	updates to the relative value fee schedule as follows:
13.24 	(1) The commissioner shall annually give notice in the State Register of the adjusted 
13.25 	conversion factors and may also give annual notice of any additions, deletions, or changes 
13.26 	to the relative value units or service codes adopted by the federal Medicare program. The 
13.27 	relative value units may be statistically adjusted in the same manner as for the original 
13.28 	workers' compensation relative value fee schedule and any amendments to rules to 
13.29 	implement Medicare relative value tables incorporated by reference under this subdivision. 
13.30 	The notices of the adjusted conversion factors and additions, deletions, or changes to the 
13.31 	relative value units and service codes is in lieu of the requirements of chapter 14. The 
13.32 	commissioner shall follow theamended rules to implement the relative value tables are 
13.33 	subject to the requirements of section 14.386, paragraph (a). The annual adjustments to the 
13.34 	conversion factors and the medical fee schedules adopted under this section, including all 
13.35 	previous fee schedules, are not subject to expiration under section 14.386, paragraph (b).
14.1 	(2) The commissioner shall periodically, but at least once every three years, update 
14.2 	the workers' compensation relative value tables by incorporating by reference the relative 
14.3 	value tables in the national physician fee schedule relative value file established by the 
14.4 	Centers for Medicare and Medicaid Services. The commissioner shall publish the notices 
14.5 	of the incorporation by reference in the State Register at least 60 days before the tables 
14.6 	are to become effective for purposes of payment under this section. Each notice of 
14.7 	incorporation must state the date the incorporated tables will become effective and must 
14.8 	include information on how the Medicare relative value tables may be obtained. The 
14.9 	published notices of incorporation by reference and the incorporated tables are not rules 
14.10 	subject to section 14.386 or other provisions of chapter 14, but have the force and effect of 
14.11 	law as of the date specified in the notices.

14.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

14.13 	Sec. 8. Minnesota Statutes 2006, section 176.136, subdivision 1b, is amended to read:
14.14 		Subd. 1b.Limitation of liability. (a) The liability of the employer for treatment, 
14.15 	articles, and supplies provided to an employee while an inpatient or outpatient at a small 
14.16 	hospital shall be the hospital's usual and customary charge, unless the charge is determined 
14.17 	by the commissioner or a compensation judge to be unreasonably excessive. A "small 
14.18 	hospital," for purposes of this paragraph, is a hospital which has 100 or fewer licensed 
14.19 	beds.
14.20 	(b) The liability of the employer for the treatment, articles, and supplies that are 
14.21 	not limited by subdivision 1a or 1c or paragraph (a) shall be limited to 85 percent of 
14.22 	the provider's usual and customary charge, or 85 percent of the prevailing charges for 
14.23 	similar treatment, articles, and supplies furnished to an injured person when paid for by 
14.24 	the injured person, whichever is lower. On this basis, the commissioner or compensation 
14.25 	judge may determine the reasonable value of all treatment, services, and supplies, and 
14.26 	the liability of the employer is limited to that amount. The commissioner may by rule 
14.27 	establish the reasonable value of a service, article, or supply in lieu of the 85 percent 
14.28 	limitation in this paragraph.
14.29 	(c) The limitation of liability for charges provided by paragraph (b) does not apply 
14.30 	to a nursing home that participates in the medical assistance program and whose rates are 
14.31 	established by the commissioner of human services.
14.32 	(d) An employer's liability for treatment, articles, and supplies provided under this 
14.33 	chapter by a health care provider located outside of Minnesota is limited to the payment 
14.34 	that the health care provider would receive if the treatment, article, or supply were paid 
15.1 	under the workers' compensation law of the jurisdiction in which the treatment was 
15.2 	provided.

15.3 	EFFECTIVE DATE. This section is effective for treatment, services, articles, and 
15.4 	supplies provided on or after the day following final enactment for all dates of injury.

15.5 	Sec. 9. Minnesota Statutes 2006, section 176.1812, subdivision 1, is amended to read:
15.6 		Subdivision 1.Requirements. Upon appropriate filing, the commissioner, 
15.7 	compensation judge, Workers' Compensation Court of Appeals, and courts shall recognize 
15.8 	as valid and binding a provision in a collective bargaining agreement between a qualified 
15.9 	employer or qualified groups of employers and the certified and exclusive representative 
15.10 	of its employees to establish certain obligations and procedures relating to workers' 
15.11 	compensation. For purposes of this section, "qualified employer" means any self-insured
15.12 	employer that is self-insured for workers' compensation in compliance with this chapter, 
15.13 	any employer, through itself or any affiliate as defined in section 60D.15, subdivision 2, 
15.14 	who is responsible for the first $100,000 or more of any claim, or a privateany employer 
15.15 	developing or projecting an annual workers' compensation premium, in Minnesota, 
15.16 	of $250,000 or more that is insured for workers' compensation in compliance with this 
15.17 	chapter. For purposes of this section, a "qualified group of employers" means a group of 
15.18 	private employers engaged in workers' compensation group self-insurance complying 
15.19 	with chapter 79A, or a group of private employers who purchase workers' compensation 
15.20 	insurance as a group, which develops or projects annual workers' compensation insurance 
15.21 	premiums of $2,000,000 or more., in which each employer is insured for workers' 
15.22 	compensation in compliance with this chapter or is self-insured for workers' compensation 
15.23 	in compliance with this chapter. This agreement must be limited to, but need not include, 
15.24 	all of the following:
15.25 	(a) an alternative dispute resolution system to supplement, modify, or replace the 
15.26 	procedural or dispute resolution provisions of this chapter. The system may include 
15.27 	mediation, arbitration, or other dispute resolution proceedings, the results of which may 
15.28 	be final and binding upon the parties. A system of arbitration shall provide that the 
15.29 	decision of the arbiter is subject to review either by the Workers' Compensation Court of 
15.30 	Appeals in the same manner as an award or order of a compensation judge or, in lieu of 
15.31 	review by the Workers' Compensation Court of Appeals, by the Office of Administrative 
15.32 	Hearings, by the district court, by the Minnesota Court of Appeals, or by the Supreme 
15.33 	Court in the same manner as the Workers' Compensation Court of Appeals and may 
15.34 	provide that any arbiter's award disapproved by a court be referred back to the arbiter for 
15.35 	reconsideration and possible modification;
16.1 	(b) an agreed list of providers of medical treatment that may be the exclusive 
16.2 	source of all medical and related treatment provided under this chapter which need not be 
16.3 	certified under section 176.1351;
16.4 	(c) the use of a limited list of impartial physicians to conduct independent medical 
16.5 	examinations;
16.6 	(d) the creation of a light duty, modified job, or return to work program;
16.7 	(e) the use of a limited list of individuals and companies for the establishment 
16.8 	of vocational rehabilitation or retraining programs which list is not subject to the 
16.9 	requirements of section 176.102;
16.10 	(f) the establishment of safety committees and safety procedures; or
16.11 	(g) the adoption of a 24-hour health care coverage plan if a 24-hour plan pilot project 
16.12 	is authorized by law, according to the terms and conditions authorized by that law.

16.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.14 	Sec. 10. Minnesota Statutes 2006, section 176.183, subdivision 1, is amended to read:
16.15 		Subdivision 1.Uninsured and self-insured employers; special compensation 
16.16 	fund. When any employee sustains an injury arising out of and in the course of 
16.17 	employment while in the employ of an employer, other than the state or its political 
16.18 	subdivisions, not insured or self-insured as provided for in this chapter, the employee 
16.19 	or the employee's dependents shall nevertheless receive benefits as provided for in this 
16.20 	chapter from the special compensation fund. The commissioner is not required to comply 
16.21 	with the procedures in chapter 16C before purchasing, paying for, or reimbursing the 
16.22 	employee for medical treatment, equipment, or supplies that are compensable under this 
16.23 	chapter. As used in subdivision 1 or 2, "employer" includes any owners or officers of a 
16.24 	corporation who direct and control the activities of employees. In any petition for benefits 
16.25 	under this chapter, the naming of an employer corporation not insured or self-insured as 
16.26 	provided for in this chapter, as a defendant, shall constitute without more the naming of the 
16.27 	owners or officers as defendants, and service of notice of proceeding under this chapter on 
16.28 	the corporation shall constitute service upon the owners or officers. An action to recover 
16.29 	benefits paid shall be instituted unless the commissioner determines that no recovery is 
16.30 	possible. There shall be no payment from the special compensation fund if there is liability 
16.31 	for the injury under the provisions of section 176.215, by an insurer or self-insurer. 

16.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.33 	Sec. 11. Minnesota Statutes 2006, section 176.185, subdivision 8a, is amended to read:
17.1 		Subd. 8a.Insolvent insurer. (a) If an insurer is or becomes insolvent as defined 
17.2 	in section 60C.03, subdivision 8, the insured employer is liable, as of May 23, 2003, for 
17.3 	payment of the compensable workers' compensation claims that were covered under the 
17.4 	employer's policy with the insolvent insurer, to the extent that the Insurance Guaranty 
17.5 	Association has determined that the claims are not covered claims under chapter 60C. This 
17.6 	paragraph does not in any way limit the Insurance Guaranty Association's right of recovery 
17.7 	from an employer under section 60C.11, subdivision 7, for workers' compensation claims 
17.8 	that are covered claims under chapter 60C.
17.9 	The Insurance Guaranty Association shall notify the employer and the 
17.10 	commissioners of the Departments of Commerce and Labor and Industry of the 
17.11 	association's determination and of the employer's liability under this subdivision. The 
17.12 	association's failure to notify the employer or the commissioners shall not relieve the 
17.13 	employer of its liability and obligations under this subdivision.
17.14 	(b) An employer who is liable for payment of claims under paragraph (a) shall 
17.15 	have all of the rights, responsibilities, and obligations of a self-insured employer 
17.16 	under this chapter for those claims only, but without the need for an order from the 
17.17 	commissioner of commerce. The employer shall not be self-insured for purposes of the 
17.18 	workers' compensation self-insurers' security fund under chapter 79A for those claims. 
17.19 	The employer shall not be required to pay assessments to the workers' compensation 
17.20 	self-insurers' security fund, and the security fund shall not be liable for the claims under 
17.21 	section 79A.10. Notwithstanding any contrary provision of chapter 60C, the Insurance 
17.22 	Guaranty Association shall pay the claims as covered claims under chapter 60C if the 
17.23 	employer fails to pay the claims as required under this chapter and the commissioner of 
17.24 	commerce determines that:
17.25 	(1) determines that the employer is the subject of a voluntary or involuntary petition 
17.26 	under the United States Bankruptcy Code, title 11;
17.27 	(2) determines that a court of competent jurisdiction has declared the employer 
17.28 	to be bankrupt or insolvent; or
17.29 	(3) determines that the employer is insolvent.; or
17.30 	(4) issues a certificate of default against the employer for failure to pay workers' 
17.31 	compensation benefits as required under this chapter.
17.32 	The commissioner of labor and industry shall notify the commissioner of commerce 
17.33 	and the Insurance Guaranty Association if the commissioner of labor and industry has 
17.34 	knowledge that any employer has failed to pay, and will likely continue to fail to pay, 
17.35 	workers' compensation benefits as required by chapter 176. If clauses (1) to (3) do not 
17.36 	apply, but the employer refuses or fails to pay benefits required under this chapter, or 
18.1 	if there is a dispute about an employer's liability for the claims, the commissioner of 
18.2 	commerce shall issue a certificate of default.
18.3 	The commissioner of commerce shall immediately notify, by certified mail, the 
18.4 	Insurance Guaranty Association of the occurrence of any of the circumstances in clauses 
18.5 	(1) to (4), and shall order the association to assume the employer's obligations under 
18.6 	this chapter. The association shall commence payment of these obligations as soon as 
18.7 	possible upon receipt of the employer's claim files. Upon the assumption of obligations by 
18.8 	the association pursuant to the commissioner of commerce's notification and order, the 
18.9 	association has the right to immediate possession of all relevant workers' compensation 
18.10 	claim files and data of the employer or other possessor of the files and data. The possessor 
18.11 	of the files and data must provide the files and data, or complete copies of them, to the 
18.12 	association within five days of the notification provided under this subdivision.
18.13 	If the possessor of the files and data fails to timely provide the files and data to the 
18.14 	association, it is liable to the commissioner of commerce for a penalty of $500 per day for 
18.15 	each day after the five-day period has expired. The association is also entitled to recover 
18.16 	from the employer reasonable attorney fees and costs in administering and paying benefits 
18.17 	owed under this chapter. If the association's payments are made pursuant to a certificate of 
18.18 	default as provided in clause (4), the employer is also liable for and shall pay a penalty 
18.19 	in the amount of 300 percent of all benefits the association pays to or on behalf of the 
18.20 	employee. The commissioner of commerce shall assess the penalties under this paragraph.
18.21 	An appeal from the commissioner of commerce's order or penalties under this 
18.22 	paragraph may be instituted pursuant to the contested case procedures of chapter 14. 
18.23 	Payment of claims by the association shall not be stayed pending the resolution of the 
18.24 	disputes.
18.25 	(c) If the employer contracts with an entity or person to administer the claims 
18.26 	under paragraph (a), the entity or person must be a licensed workers' compensation 
18.27 	insurer or a licensed third-party administrator under section 60A.23, subdivision 8. 
18.28 	The commissioner of commerce may require the employer to contract with a licensed 
18.29 	third-party administrator when the commissioner determines it is necessary to ensure 
18.30 	proper payment of compensation under this chapter.
18.31 	(d) For all claims that an employer is liable for under paragraph (a) and pays on or 
18.32 	after May 26, 2005, and for all deductible amounts an employer pays on or after May 
18.33 	26, 2005, under an employer's policy with an insurer that became insolvent before May 
18.34 	23, 2003:
18.35 	(1) the employer shall file reports and pay assessments to the special compensation 
18.36 	fund, according to the requirements of section 176.129 that apply to self-insured 
19.1 	employers, based on paid indemnity losses for the claims and deductible amounts it 
19.2 	paid; and
19.3 	(2) the employer may request supplementary benefit and second injury 
19.4 	reimbursement from the special compensation fund for the claims and deductible amounts 
19.5 	it paid, subject to section 176.129, subdivision 13. Reimbursement from the special 
19.6 	compensation fund is limited to claims that are eligible for supplementary benefit and 
19.7 	second injury reimbursement under Minnesota Statutes 1990, section 176.131, and 
19.8 	Minnesota Statutes 1994, section 176.132.
19.9 	(e) For all claims for which an employer is liable under paragraph (a) and paid 
19.10 	between the date of the insurer's insolvency and May 26, 2005, and for all deductible 
19.11 	amounts an employer paid between the date of the insurer's insolvency and May 26, 2005, 
19.12 	under an employer's policy with an insurer that became insolvent before May 23, 2003, 
19.13 	the employer may request supplementary benefit and second injury reimbursement from 
19.14 	the special compensation fund, subject to section 176.129, subdivision 13, if:
19.15 	(1) the employer files reports and pays all past assessments based on paid indemnity 
19.16 	losses, for all claims and deductible amounts it paid from the date of the insolvency of the 
19.17 	insurer to May 26, 2005, at the rate that was in effect for self-insured employers under 
19.18 	section 176.129 during the applicable assessment reporting period;
19.19 	(2) the employer has a pending request for reimbursement of the claims and 
19.20 	deductible amounts it paid from the special compensation fund as of May 26, 2005, or 
19.21 	files a request for reimbursement within one year after May 26, 2005; and
19.22 	(3) the claims are eligible for supplementary benefit and second injury 
19.23 	reimbursement under Minnesota Statutes 1990, section 176.131, and Minnesota Statutes 
19.24 	1994, section 176.132.
19.25 	(f) An employer who is liable for claims under paragraph (a) shall be eligible for 
19.26 	reimbursement from the Workers' Compensation Reinsurance Association under chapter 
19.27 	79 for those claims to the extent they exceed the applicable retention limit selected 
19.28 	by the insolvent insurer and if the employer has complied with the requirements for 
19.29 	reimbursement established by the Workers' Compensation Reinsurance Association for its 
19.30 	self-insured members. The employer is not responsible for payment of premiums to the 
19.31 	reinsurance association to the extent the premiums have been paid by the insolvent insurer.
19.32 	(g) The expenses of the employer in handling the claims paid under paragraph 
19.33 	(a) are accorded the same priority as the liquidator's expenses. The employer must be 
19.34 	recognized as a claimant in the liquidation of an insolvent insurer for amounts paid by 
19.35 	the employer under this subdivision, and must receive dividends and other distributions 
19.36 	at the priority set forth in chapter 60B. The receiver, liquidator, or statutory successor of 
20.1 	an insolvent insurer is bound by settlements of claims made by the employer under this 
20.2 	subdivision. The court having jurisdiction shall grant the claims priority equal to that 
20.3 	which the claimant would have been entitled against the assets of the insolvent insurer in 
20.4 	the absence of this subdivision.
20.5 	(h) The Workers' Compensation Reinsurance Association and the special 
20.6 	compensation fund, as a condition of directly reimbursing an employer eligible for 
20.7 	reimbursement, may require the employer to hold it harmless from any claims by a 
20.8 	liquidator, receiver, or statutory successor to the insolvent insurer that the Workers' 
20.9 	Compensation Reinsurance Association or special compensation fund improperly 
20.10 	indemnified or reimbursed the employer. In no event shall the Workers' Compensation 
20.11 	Reinsurance Association or the special compensation fund be required to reimburse any 
20.12 	amounts for any claim more than once.

20.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.14 	Sec. 12. Minnesota Statutes 2006, section 176.231, subdivision 10, is amended to read:
20.15 		Subd. 10.Failure to file required report, penalty. If an employer, qualified 
20.16 	rehabilitation consultant or rehabilitation vendor, insurer, physician, chiropractor, or other 
20.17 	health provider fails to file with the commissioner any report required by this section
20.18 	chapter in the manner and within the time limitations prescribed, or otherwise fails to 
20.19 	provide a report required by this sectionchapter in the manner provided by this section
20.20 	chapter, the commissioner may impose a penalty of up to $500 for each failure.
20.21 	The imposition of a penalty may be appealed to a compensation judge within 30 
20.22 	days of notice of the penalty.
20.23 	Penalties collected by the state under this subdivision shall be payable to the 
20.24 	commissioner for deposit into the assigned risk safety account.

20.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.26 	Sec. 13. Minnesota Statutes 2006, section 176.245, is amended to read:
20.27 	176.245 RECEIPTS FOR PAYMENT OF COMPENSATION, FILING.
20.28 	An employer shall promptly file with the division receipts for payment of 
20.29 	compensation as may be required by the rules of the division.
20.30 	The commissioner of the Department of Labor and Industry shall periodically check 
20.31 	its records in each case to determine whether these receipts have been promptly filed, and 
20.32 	if not, shall require the employer to do so. The commissioner may determine, using 
20.33 	statistical methodology similar to Six Sigma, the most efficient manner of reviewing or 
21.1 	auditing the records filed under this chapter, including using sampling methodology, to 
21.2 	determine compliance with this chapter.

21.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.4 	Sec. 14. Minnesota Statutes 2006, section 176.275, subdivision 1, is amended to read:
21.5 		Subdivision 1.Filing. If a document is required to be filed by this chapter or any 
21.6 	rules adopted pursuant to authority granted by this chapter, the filing shall be completed by 
21.7 	the receipt of the document at the division, department, office, or the court of appeals. The 
21.8 	division, department, office, and the court of appeals shall accept any document which 
21.9 	has been delivered to it for legal filing immediately upon its receipt, but may refuse to 
21.10 	accept any form or document that lacks the name of the injured employee, employer, or 
21.11 	insurer, the date of injury, or the injured employee's Social Security number. If a workers' 
21.12 	compensation identification number has been assigned by the department, it may be 
21.13 	substituted for the Social Security number on a form or document. If the injured employee 
21.14 	has fewer than three days of lost time from work, the party submitting the required 
21.15 	document must attach to it, at the time of filing, a copy of the first report of injury.
21.16 	A notice or other document required to be served or filed at either the department, 
21.17 	the office, or the court of appeals which is inadvertently served or filed at the wrong one 
21.18 	of these agencies shall be deemed to have been served or filed with the proper agency. 
21.19 	The receiving agency shall note the date of receipt of a document and shall forward the 
21.20 	documents to the proper agency no later than two working days following receipt.

21.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.22 	Sec. 15. Minnesota Statutes 2006, section 176.285, is amended to read:
21.23 	176.285 SERVICE OF PAPERS AND NOTICES; ELECTRONIC FILING.
21.24 	Service of papers and notices shall be by mail or otherwise as the commissioner or 
21.25 	the chief administrative law judge may by rule direct. Where service is by mail, service 
21.26 	is effected at the time mailed if properly addressed and stamped. If it is so mailed, it is 
21.27 	presumed the paper or notice reached the party to be served. However, a party may show 
21.28 	by competent evidence that that party did not receive it or that it had been delayed in 
21.29 	transit for an unusual or unreasonable period of time. In case of nonreceipt or delay, an 
21.30 	allowance shall be made for the party's failure to assert a right within the prescribed time.
21.31 	Where service to the division, department, office, or court of appeals is by electronic 
21.32 	filing, digitized signatures may be used provided that the signature has been certified 
21.33 	by the department no later than five business days after filing. Where a statute or rule 
22.1 	authorizes or requires a document to be filed with or served on an agency, the document 
22.2 	may be filed electronically if electronic filing is authorized by the agency and if the 
22.3 	document is transmitted in the manner and in the format specified by the agency. Where a 
22.4 	statute or rule authorizes or requires a person's signature on a document to be filed with 
22.5 	or served on an agency, the signature may be transmitted electronically, if authorized 
22.6 	by the agency and if the signature is transmitted in the manner and format specified by 
22.7 	the agency. The commissioner may require that a document authorized or required to 
22.8 	be filed with the commissioner, department, or division be filed electronically in the 
22.9 	manner and format specified by the commissioner, except that an employee must not be 
22.10 	required to file a document electronically unless the document is filed by an attorney on 
22.11 	behalf of an employee. An agency may serve a document electronically if the recipient 
22.12 	agrees to receive it in an electronic format. The department or court may adopt rules 
22.13 	for the certification of signatures.
22.14 	When the electronic filing of a legal document with the department marks the 
22.15 	beginning of a prescribed time for another party to assert a right, the prescribed time for 
22.16 	another party to assert a right shall be lengthened by two calendar days when it can be 
22.17 	shown that service to the other party was by mail.
22.18 	The commissioner and the chief administrative law judge shall ensure that proof 
22.19 	of service of all papers and notices served by their respective agencies is placed in the 
22.20 	official file of the case.
22.21 	For purposes of this section, "agency" means the workers' compensation division, 
22.22 	the Department of Labor and Industry, the commissioner of the Department of Labor and 
22.23 	Industry, the Office of Administrative Hearings, the chief administrative law judge, or 
22.24 	the workers' compensation court of appeals. "Document" includes documents, reports, 
22.25 	notices, orders, papers, forms, information, and data elements that are authorized or 
22.26 	required to be filed with an agency or the commissioner or that are authorized or required 
22.27 	to be served on or by an agency or the commissioner.
22.28 	Except as otherwise modified by this section, the provisions of chapter 325L apply 
22.29 	to electronic signatures and the electronic transmission of documents under this section.

22.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

22.31 	Sec. 16. Minnesota Statutes 2006, section 176.83, subdivision 7, is amended to read:
22.32 		Subd. 7.Miscellaneous rules. Rules necessary for implementing and administering 
22.33 	the provisions of Minnesota Statutes 1990, section 176.131, Minnesota Statutes 1994, 
22.34 	section 176.132, sections 176.238 and 176.239; sections 176.251, and176.66to 176.669, 
22.35 	and rules regarding proper allocation of compensation under section 176.111. Under 
23.1 	the rules adopted under section 176.111 a party may petition for a hearing before a 
23.2 	compensation judge to determine the proper allocation. In this case the compensation 
23.3 	judge may order a different allocation than prescribed by rule. 

23.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

23.5 	Sec. 17. REVISOR'S INSTRUCTION.
 23.6 	The revisor of statutes shall recode Minnesota Statutes, section 176.181, subdivision 
23.7 	2b, as Minnesota Statutes, section 79A.04, subdivision 3a.

23.8 	Sec. 18.  REPEALER.
 23.9 	Minnesota Statutes 2006, sections 176.1041; and 176.669, are repealed.

23.10 	EFFECTIVE DATE. This section is effective the day following final enactment.