SF 1234

1st Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 05/07/2013 09:59 a.m.

1.1A bill for an act 1.2relating to workers' compensation; making various policy and housekeeping 1.3changes; adopting advisory council recommendations; requiring a report; 1.4amending Minnesota Statutes 2012, sections 176.011, subdivisions 15, 16; 1.5176.081, subdivisions 1, 7; 176.101, subdivision 1; 176.102, subdivisions 3a, 5, 1.610; 176.106, subdivisions 1, 3; 176.129, subdivision 13; 176.136, subdivision 1.71b; 176.138; 176.183, subdivision 4; 176.245; 176.521; 176.645; 176.83, 1.8subdivision 5. 1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10ARTICLE 1 1.11WORKERS' COMPENSATION DEPARTMENT PROPOSALS 1.12    Section 1. Minnesota Statutes 2012, section 176.102, subdivision 3a, is amended to read: 1.13    Subd. 3a. Disciplinary actions. The panel has authority to discipline qualified 1.14rehabilitation consultants and vendors and may impose a penalty of up to $3,000 per 1.15violation, payable to the commissioner for deposit in the assigned risk safety account, and 1.16may suspend or revoke certification. Complaints against registered qualified rehabilitation 1.17consultants and vendors shall be made to the commissioner who shall new text begin may new text end investigate 1.18all complaints. If the investigation indicates a violation of this chapter or rules adopted 1.19under this chapter, the commissioner may initiate a contested case proceeding under the 1.20provisions of chapter 14. In these cases, the rehabilitation review panel shall make the 1.21final decision following receipt of the report of an administrative law judge. The decision 1.22of the panel is appealable to the Workers' Compensation Court of Appeals in the manner 1.23provided by section 176.421. The panel shall continuously study rehabilitation services 1.24and delivery, develop and recommend rehabilitation rules to the commissioner, and assist 1.25the commissioner in accomplishing public education. 2.1The commissioner may appoint alternates for one-year terms to serve as a member 2.2when a member is unavailable. The number of alternates shall not exceed one labor 2.3member, one employer or insurer member, and one member representing a licensed or 2.4registered health care provider, chiropractic, or rehabilitation. 2.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 2.6    Sec. 2. Minnesota Statutes 2012, section 176.106, subdivision 1, is amended to read: 2.7    Subdivision 1. Scope. All determinations by the commissioner or compensation 2.8judge pursuant to section 176.102, 176.103, 176.135, or 176.136 shall be in accordance 2.9with the procedures contained in this section. For medical disputes under sections 176.135 2.10and 176.136, the commissioner shall have jurisdiction to hold an administrative conference 2.11and issue decisions and orders under this section if the amount in dispute at the time the 2.12medical request is filed is $7,500 or less. new text begin The $7,500 limit does not apply if the medical new text end 2.13 new text begin issue to be determined is whether a charge for a service, article, or supply is excessive new text end 2.14 new text begin under section 176.136, subdivision 1, 1a, 1b, or 1c, and corresponding Minnesota Rules. new text end 2.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 2.16 new text begin and applies to medical disputes filed on or after that date. new text end 2.17    Sec. 3. Minnesota Statutes 2012, section 176.129, subdivision 13, is amended to read: 2.18    Subd. 13. Employer reports. new text begin (a) new text end All employers and insurers shall make reports to 2.19the commissioner as required for the proper administration of this section and Minnesota 2.20Statutes 1990, section 176.131, and Minnesota Statutes 1994, section 176.132. Employers 2.21and insurers may not be reimbursed from the special compensation fund for any 2.22periods unless the employer or insurer is up to date with all past due and currently due 2.23assessments, penalties, and reports to the special compensation fund under this section. 2.24The commissioner may allow an offset of the reimbursements due an employer or insurer 2.25pursuant to Minnesota Statutes 1990, section 176.131, and Minnesota Statutes 1994, 2.26section 176.132, against the assessment due under the section new text begin or against any other debt new text end 2.27 new text begin owed to the special compensation fund by the employer or insurer new text end . 2.28 new text begin (b) Except as provided in paragraph (c), the special compensation fund shall not new text end 2.29 new text begin reimburse an insolvent insurer for subsequent injury or supplementary benefits after a new text end 2.30 new text begin declaration of bankruptcy or order of liquidation or insolvency is issued for the insurer, new text end 2.31 new text begin even if the benefits were paid before the declaration or order. This does not limit the claim new text end 2.32 new text begin distribution or set-off authority of a court, trustee, or liquidator under federal bankruptcy new text end 2.33 new text begin law or under chapter 60B or a similar law in another jurisdiction. For purposes of this new text end 3.1 new text begin paragraph, subsequent injury benefits are the benefits paid pursuant to Minnesota Statutes new text end 3.2 new text begin 1990, section 176.131, and supplementary benefits are the benefits paid pursuant to new text end 3.3 new text begin Minnesota Statutes 1994, section 176.132. new text end 3.4 new text begin (c) The special compensation fund shall reimburse an insolvent insurer for new text end 3.5 new text begin subsequent injury or supplemental benefits after a declaration of bankruptcy or order of new text end 3.6 new text begin liquidation or insolvency to an insolvent insurer who has filed for reimbursement from the new text end 3.7 new text begin special compensation fund before June 1, 2013. This includes reimbursement for any past, new text end 3.8 new text begin pending, or future claims that may arise out of the insolvent insurer's coverage. new text end 3.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 3.10 new text begin and applies to claims for reimbursement filed with the special compensation fund on or new text end 3.11 new text begin after that date. new text end 3.12    Sec. 4. Minnesota Statutes 2012, section 176.138, is amended to read: 3.13176.138 MEDICAL DATA; ACCESS. 3.14(a) Notwithstanding any other state laws related to the privacy of medical data or 3.15any private agreements to the contrary, the release in writing, by telephone discussion, or 3.16otherwise of medical data related to a current claim for compensation under this chapter 3.17to the employee, employer, or insurer who are parties to the claim, or to the Department 3.18of Labor and Industry, shall not require prior approval of any party to the claim. This 3.19section does not preclude the release of medical data under section 175.10 or 176.231, 3.20subdivision 9 . Requests for pertinent data shall be made, and the date of discussions 3.21with medical providers about medical data shall be confirmed, in writing to the person 3.22or organization that collected or currently possesses the data. Written medical data that 3.23exists at the time the request is made shall be provided by the collector or possessor within 3.24seven working days of receiving the request. Nonwritten medical data may be provided, 3.25but is not required to be provided, by the collector or possessor. In all cases of a request 3.26for the data or discussion with a medical provider about the data, except when it is the 3.27employee who is making the request, the employee shall be sent written notification of the 3.28request by the party requesting the data at the same time the request is made or a written 3.29confirmation of the discussion. This data shall be treated as private data by the party who 3.30requests or receives the data and the party receiving the data shall provide the employee or 3.31the employee's attorney with a copy of all data requested by the requester. 3.32(b) Medical data which is not directly related to a current injury or disability shall 3.33not be released without prior authorization of the employee. 4.1(c) The commissioner may impose a penalty of up to $600 payable to the 4.2commissioner for deposit in the assigned risk safety account against a party who does not 4.3timely release data as required in this section. A party who does not treat this data as 4.4private pursuant to this section is guilty of a misdemeanor. This paragraph applies only to 4.5written medical data which exists at the time the request is made. 4.6(d) Workers' compensation insurers and self-insured employers may, for the sole 4.7purpose of identifying duplicate billings submitted to more than one insurer, disclose to 4.8health insurers, including all insurers writing insurance described in section 60A.06, 4.9subdivision 1 , clause (5)(a), nonprofit health service plan corporations subject to chapter 4.1062C, health maintenance organizations subject to chapter 62D, and joint self-insurance 4.11employee health plans subject to chapter 62H, computerized information about dates, 4.12coded items, and charges for medical treatment of employees and other medical billing 4.13information submitted to them by an employee, employer, health care provider, or other 4.14insurer in connection with a current claim for compensation under this chapter, without 4.15prior approval of any party to the claim. The data may not be used by the health insurer 4.16for any other purpose whatsoever and must be destroyed after verification that there has 4.17been no duplicative billing. Any person who is the subject of the data which is used in 4.18a manner not allowed by this paragraph has a cause of action for actual damages and 4.19punitive damages for a minimum of $5,000. 4.20 new text begin (e) Medical data collected, stored, used, or disseminated by or filed with the new text end 4.21 new text begin commissioner in connection with a claim for workers' compensation benefits governed by new text end 4.22 new text begin this chapter does not constitute genetic information for the purposes of section 13.386. new text end 4.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 4.24    Sec. 5. Minnesota Statutes 2012, section 176.183, subdivision 4, is amended to read: 4.25    Subd. 4. Notice by commissioner; rights of parties. new text begin (a) new text end If the commissioner 4.26authorizes the special new text begin compensation new text end fund to commence payment without the issuance of 4.27a temporary order, the commissioner shall serve by certified new text begin first class new text end mail notice upon 4.28the employer and other interested parties of the intention to commence payment. This 4.29notice shall be served at least ten calendar days before commencing payment and shall 4.30be mailed to the last known address of the parties new text begin employer new text end . The notice shall include a 4.31statement that failure of the employer to respond within ten calendar days of the date 4.32of service will be deemed acceptance by the employer of the proposed action by the 4.33commissioner new text begin special compensation fund new text end and will be deemed a waiver of defenses the 4.34employer has to a subrogation or indemnity action by the commissioner new text begin the special new text end 4.35 new text begin compensation fund's action to recover amounts specified under subdivision 2 new text end . At any time 5.1prior to final determination of liability, the employer may appear as a party and present 5.2defenses the employer has, whether or not an appearance by the employer has previously 5.3been made in the matter. The commissioner new text begin special compensation fund new text end has a cause of 5.4action against the employer to recover compensation paid by the special fund under this 5.5section new text begin amounts specified under subdivision 2 new text end . 5.6 new text begin (b) The commissioner shall notify the employer by first class mail if the special new text end 5.7 new text begin compensation fund intends to enter into a settlement agreement with the employee for new text end 5.8 new text begin the payment of benefits under this section. This notice shall be sent by first class mail to new text end 5.9 new text begin the last known address of the employer at least 15 calendar days before executing the new text end 5.10 new text begin settlement agreement, and shall include: new text end 5.11 new text begin (1) a copy of the proposed settlement agreement; new text end 5.12 new text begin (2) a statement that within 15 calendar days the employer must notify the special new text end 5.13 new text begin compensation fund in writing of its objection to the proposed settlement; and new text end 5.14 new text begin (3) a statement that if the special compensation fund does not receive the employer's new text end 5.15 new text begin written objection within 15 calendar days, the employer must be deemed to have waived new text end 5.16 new text begin all defenses to the special compensation fund's claim for amounts specified under new text end 5.17 new text begin subdivision 2. new text end 5.18 new text begin (c) If a settlement agreement is approved by the commissioner or compensation judge new text end 5.19 new text begin after the commissioner has provided notice to the employer under paragraph (b), and if the new text end 5.20 new text begin employer did not provide timely written notification to the special compensation fund of new text end 5.21 new text begin the employer's objection, then the employer must be deemed to have waived all defenses new text end 5.22 new text begin to the special compensation fund's claim for amounts specified under subdivision 2. new text end 5.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.24    Sec. 6. Minnesota Statutes 2012, section 176.245, is amended to read: 5.25176.245 RECEIPTS FOR PAYMENT OF COMPENSATION, FILING. 5.26An employer shall promptly file with the division receipts for payment of 5.27compensation as may be required by the rules of the division. 5.28The commissioner of the Department of Labor and Industry shall periodically check 5.29its records to determine whether these receipts have been promptly filed, and if not, 5.30shall require the employer to do so. The commissioner may determine, using statistical 5.31methodology similar to Six Sigma, the most efficient manner of reviewing or auditing 5.32the records filed under this chapter, including using sampling methodology, to determine 5.33compliance with this chapter. 5.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 6.1    Sec. 7. Minnesota Statutes 2012, section 176.521, is amended to read: 6.2176.521 SETTLEMENT OF CLAIMS. 6.3    Subdivision 1. Validity. new text begin (a) new text end An agreement between an employee or an employee's 6.4dependent and the employer or insurer to settle any claim, which is not upon appeal before 6.5the court of appeals, for compensation under this chapter is valid where it has been executed 6.6in writing and signed by the parties and intervenors in the matter, and, where one or more 6.7of the parties is not represented by an attorney, the commissioner or a compensation judge 6.8has approved the settlement and made an award thereon. If the matter is upon appeal before 6.9the Court of Appeals or district court, the court of appeals or district court is the approving 6.10body. An agreement to settle any claim is not valid if a guardian or conservator is required 6.11under section 176.092 and an employee or dependent has no guardian or conservator. 6.12 new text begin (b) If the matter is on appeal before the workers' compensation court of appeals, the new text end 6.13 new text begin proposed settlement shall be submitted for approval to a compensation judge at the Office new text end 6.14 new text begin of Administrative Hearings. Before the settlement is submitted to the compensation judge, new text end 6.15 new text begin the parties shall notify the workers' compensation court of appeals and request that it new text end 6.16 new text begin suspend further action on the appeal pending review of the settlement by the compensation new text end 6.17 new text begin judge. Within 14 days after the compensation judge's final approval or disapproval of the new text end 6.18 new text begin settlement, the parties shall notify the workers' compensation court of appeals of the new text end 6.19 new text begin compensation judge's action and shall request that the appeal be dismissed or reactivated. new text end 6.20    Subd. 2. Approval. Settlements shall be approved only if the terms conform with 6.21this chapter. 6.22The commissioner, a compensation judge, the court of appeals, and the district court 6.23shall exercise discretion in approving or disapproving a proposed settlement. 6.24The parties to the agreement of settlement have the burden of proving that the 6.25settlement is reasonable, fair, and in conformity with this chapter. A settlement agreement 6.26where both the employee or the employee's dependent and the employer or insurer are 6.27represented by an attorney shall be conclusively presumed to be reasonable, fair, and in 6.28conformity with this chapter except when the settlement purports to be a full, final, and 6.29complete settlement of an employee's right to medical compensation under this chapter 6.30or rehabilitation under section 176.102. A settlement which purports to do so must be 6.31approved by the commissioner, new text begin or new text end a compensation judge, or court of appeals. 6.32The conclusive presumption in this subdivision is not available in cases involving 6.33an employee or dependent with a guardian or conservator. 6.34The conclusive presumption in this subdivision applies to a settlement agreement 6.35entered into on or after January 15, 1982, whether the injury to which the settlement 6.36applies occurred prior to or on or after January 15, 1982. 7.1    Subd. 2a. Settlements not subject to approval. When a settled case is not 7.2subject to approval, upon receipt of the stipulation for settlement, the commissioner, new text begin or new text end 7.3 a compensation judge, or the court of appeals shall immediately sign the award and file 7.4it with the commissioner. Payment pursuant to the award shall be made within 14 days 7.5after it is filed with the commissioner. The commissioner may correct mathematical or 7.6clerical errors at any time. 7.7    Subd. 3. Setting aside award upon settlement. Notwithstanding the provisions of 7.8subdivision 1, 2, or 2a, or any provision in the agreement of settlement to the contrary, 7.9upon the filing of a petition by any party to the settlement, the new text begin workers' compensation new text end 7.10court of appeals may set aside an award made upon a settlement, pursuant to this chapter. 7.11In appropriate cases, the new text begin workers' compensation new text end court of appeals may refer the matter to 7.12the chief administrative law judge for assignment to a compensation judge for hearing. 7.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for settlement agreements submitted new text end 7.14 new text begin for approval on or after July 1, 2013. new text end 7.15ARTICLE 2 7.16WORKERS' COMPENSATION ADVISORY COUNCIL RECOMMENDATIONS 7.17    Section 1. Minnesota Statutes 2012, section 176.011, subdivision 15, is amended to read: 7.18    Subd. 15. Occupational disease. (a) "Occupational disease" means a new text begin mental new text end 7.19 new text begin impairment as defined in paragraph (d) or physical new text end disease arising out of and in the 7.20course of employment peculiar to the occupation in which the employee is engaged 7.21and due to causes in excess of the hazards ordinary of employment and shall include 7.22undulant fever. new text begin Physical stimulus resulting in mental injury and mental stimulus resulting new text end 7.23 new text begin in physical injury shall remain compensable. Mental impairment is not considered a new text end 7.24 new text begin disease if it results from a disciplinary action, work evaluation, job transfer, layoff, new text end 7.25 new text begin demotion, promotion, termination, retirement, or similar action taken in good faith by the new text end 7.26 new text begin employer. new text end Ordinary diseases of life to which the general public is equally exposed outside 7.27of employment are not compensable, except where the diseases follow as an incident of an 7.28occupational disease, or where the exposure peculiar to the occupation makes the disease 7.29an occupational disease hazard. A disease arises out of the employment only if there be a 7.30direct causal connection between the conditions under which the work is performed and 7.31if the occupational disease follows as a natural incident of the work as a result of the 7.32exposure occasioned by the nature of the employment. An employer is not liable for 7.33compensation for any occupational disease which cannot be traced to the employment as a 7.34direct and proximate cause and is not recognized as a hazard characteristic of and peculiar 8.1to the trade, occupation, process, or employment or which results from a hazard to which 8.2the worker would have been equally exposed outside of the employment. 8.3(b) If immediately preceding the date of disablement or death, an employee was 8.4employed on active duty with an organized fire or police department of any municipality, 8.5as a member of the Minnesota State Patrol, conservation officer service, state crime bureau, 8.6as a forest officer by the Department of Natural Resources, state correctional officer, or 8.7sheriff or full-time deputy sheriff of any county, and the disease is that of myocarditis, 8.8coronary sclerosis, pneumonia or its sequel, and at the time of employment such employee 8.9was given a thorough physical examination by a licensed doctor of medicine, and a written 8.10report thereof has been made and filed with such organized fire or police department, with 8.11the Minnesota State Patrol, conservation officer service, state crime bureau, Department 8.12of Natural Resources, Department of Corrections, or sheriff's department of any county, 8.13which examination and report negatived any evidence of myocarditis, coronary sclerosis, 8.14pneumonia or its sequel, the disease is presumptively an occupational disease and shall 8.15be presumed to have been due to the nature of employment. If immediately preceding 8.16the date of disablement or death, any individual who by nature of their position provides 8.17emergency medical care, or an employee who was employed as a licensed police officer 8.18under section 626.84, subdivision 1; firefighter; paramedic; state correctional officer; 8.19emergency medical technician; or licensed nurse providing emergency medical care; and 8.20who contracts an infectious or communicable disease to which the employee was exposed 8.21in the course of employment outside of a hospital, then the disease is presumptively an 8.22occupational disease and shall be presumed to have been due to the nature of employment 8.23and the presumption may be rebutted by substantial factors brought by the employer 8.24or insurer. Any substantial factors which shall be used to rebut this presumption and 8.25which are known to the employer or insurer at the time of the denial of liability shall be 8.26communicated to the employee on the denial of liability. 8.27(c) A firefighter on active duty with an organized fire department who is unable 8.28to perform duties in the department by reason of a disabling cancer of a type caused 8.29by exposure to heat, radiation, or a known or suspected carcinogen, as defined by the 8.30International Agency for Research on Cancer, and the carcinogen is reasonably linked to 8.31the disabling cancer, is presumed to have an occupational disease under paragraph (a). If a 8.32firefighter who enters the service after August 1, 1988, is examined by a physician prior to 8.33being hired and the examination discloses the existence of a cancer of a type described 8.34in this paragraph, the firefighter is not entitled to the presumption unless a subsequent 8.35medical determination is made that the firefighter no longer has the cancer. 9.1 new text begin (d) For the purposes of this chapter, "mental impairment" means a diagnosis of new text end 9.2 new text begin post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purpose new text end 9.3 new text begin of this chapter, "post-traumatic stress disorder" means the condition as described in new text end 9.4 new text begin the most recently published edition of the Diagnostic and Statistical Manual of Mental new text end 9.5 new text begin Disorders by the American Psychiatric Association. new text end 9.6    Sec. 2. Minnesota Statutes 2012, section 176.011, subdivision 16, is amended to read: 9.7    Subd. 16. Personal injury. "Personal injury" means new text begin any mental impairment as new text end 9.8 new text begin defined in subdivision 15, paragraph (d), or physical new text end injury arising out of and in the course 9.9of employment and includes personal injury caused by occupational disease; but does 9.10not cover an employee except while engaged in, on, or about the premises where the 9.11employee's services require the employee's presence as a part of that service at the time of 9.12the injury and during the hours of that service. Where the employer regularly furnished 9.13transportation to employees to and from the place of employment, those employees are 9.14subject to this chapter while being so transported. new text begin Physical stimulus resulting in mental new text end 9.15 new text begin injury and mental stimulus resulting in physical injury shall remain compensable. Mental new text end 9.16 new text begin impairment is not considered a personal injury if it results from a disciplinary action, work new text end 9.17 new text begin evaluation, job transfer, layoff, demotion, promotion, termination, retirement, or similar new text end 9.18 new text begin action taken in good faith by the employer. new text end Personal injury does not include an injury 9.19caused by the act of a third person or fellow employee intended to injure the employee 9.20because of personal reasons, and not directed against the employee as an employee, or 9.21because of the employment. An injury or disease resulting from a vaccine in response 9.22to a declaration by the Secretary of the United States Department of Health and Human 9.23Services under the Public Health Service Act to address an actual or potential health 9.24risk related to the employee's employment is an injury or disease arising out of and in 9.25the course of employment. 9.26    Sec. 3. Minnesota Statutes 2012, section 176.081, subdivision 1, is amended to read: 9.27    Subdivision 1. Limitation of fees. (a) A fee for legal services of 25 new text begin 20 new text end percent of 9.28the first $4,000 of compensation awarded to the employee and 20 percent of the next 9.29$60,000 new text begin $130,000 new text end of compensation awarded to the employee is the maximum permissible 9.30fee and does not require approval by the commissioner, compensation judge, or any other 9.31party. All fees, including fees for obtaining medical or rehabilitation benefits, must be 9.32calculated according to the formula under this subdivision, except as otherwise provided 9.33in clause (1) or (2). 10.1(1) The contingent attorney fee for recovery of monetary benefits according to the 10.2formula in this section is presumed to be adequate to cover recovery of medical and 10.3rehabilitation benefit or services concurrently in dispute. Attorney fees for recovery of 10.4medical or rehabilitation benefits or services shall be assessed against the employer or 10.5insurer only if the attorney establishes that the contingent fee is inadequate to reasonably 10.6compensate the attorney for representing the employee in the medical or rehabilitation 10.7dispute. In cases where the contingent fee is inadequate the employer or insurer is liable 10.8for attorney fees based on the formula in this subdivision or in clause (2). 10.9    For the purposes of applying the formula where the employer or insurer is liable for 10.10attorney fees, the amount of compensation awarded for obtaining disputed medical and 10.11rehabilitation benefits under sections 176.102, 176.135, and 176.136 shall be the dollar 10.12value of the medical or rehabilitation benefit awarded, where ascertainable. 10.13(2) The maximum attorney fee for obtaining a change of doctor or qualified 10.14rehabilitation consultant, or any other disputed medical or rehabilitation benefit for which 10.15a dollar value is not reasonably ascertainable, is the amount charged in hourly fees for the 10.16representation or $500, whichever is less, to be paid by the employer or insurer. 10.17(3) The fees for obtaining disputed medical or rehabilitation benefits are included 10.18in the $13,000 new text begin $26,000 new text end limit in paragraph (b). An attorney must concurrently file all 10.19outstanding disputed issues. An attorney is not entitled to attorney fees for representation 10.20in any issue which could reasonably have been addressed during the pendency of other 10.21issues for the same injury. 10.22(b) All fees for legal services related to the same injury are cumulative and may 10.23not exceed $13,000 new text begin $26,000 new text end . If multiple injuries are the subject of a dispute, the 10.24commissioner, compensation judge, or court of appeals shall specify the attorney fee 10.25attributable to each injury. 10.26(c) If the employer or the insurer or the defendant is given written notice of claims 10.27for legal services or disbursements, the claim shall be a lien against the amount paid or 10.28payable as compensation. Subject to the foregoing maximum amount for attorney fees, up 10.29to 25 new text begin 20 new text end percent of the first $4,000 new text begin $130,000 new text end of periodic compensation awarded to the 10.30employee and 20 percent of the next $60,000 of periodic compensation awarded to the 10.31employee may be withheld from the periodic payments for attorney fees or disbursements 10.32if the payor of the funds clearly indicates on the check or draft issued to the employee for 10.33payment the purpose of the withholding, the name of the attorney, the amount withheld, 10.34and the gross amount of the compensation payment before withholding. In no case 10.35shall fees be calculated on the basis of any undisputed portion of compensation awards. 10.36Allowable fees under this chapter shall be based solely upon genuinely disputed claims or 11.1portions of claims, including disputes related to the payment of rehabilitation benefits or 11.2to other aspects of a rehabilitation plan. The existence of a dispute is dependent upon a 11.3disagreement after the employer or insurer has had adequate time and information to take 11.4a position on liability. Neither the holding of a hearing nor the filing of an application for a 11.5hearing alone may determine the existence of a dispute. Except where the employee is 11.6represented by an attorney in other litigation pending at the department or at the Office 11.7of Administrative Hearings, a fee may not be charged after June 1, 1996, for services 11.8with respect to a medical or rehabilitation issue arising under section 176.102, 176.135, 11.9or 176.136 performed before the employee has consulted with the department and the 11.10department certifies that there is a dispute and that it has tried to resolve the dispute. 11.11(d) An attorney who is claiming legal fees for representing an employee in a workers' 11.12compensation matter shall file a statement of attorney fees with the commissioner, 11.13compensation judge before whom the matter was heard, or Workers' Compensation Court 11.14of Appeals on cases before the court. A copy of the signed retainer agreement shall also 11.15be filed. The employee and insurer shall receive a copy of the statement. The statement 11.16shall be on a form prescribed by the commissioner and shall report the number of hours 11.17spent on the case. 11.18(e) Employers and insurers may not pay attorney fees or wages for legal services 11.19of more than $13,000 new text begin $26,000 new text end per case. 11.20(f) An attorney must file a statement of attorney fees within 12 months of the date 11.21the attorney has submitted the written notice specified in paragraph (c). If the attorney 11.22has not filed a statement of attorney fees within the 12 months, the attorney must send a 11.23renewed notice of lien to the insurer. If 12 months have elapsed since the last notice of 11.24lien has been received by the insurer and no statement of attorney fees has been filed, the 11.25insurer must release the withheld money to the employee, except that before releasing the 11.26money to the employee, the insurer must give the attorney 30 days' written notice of the 11.27pending release. The insurer must not release the money if the attorney files a statement of 11.28attorney fees within the 30 days. 11.29    Sec. 4. Minnesota Statutes 2012, section 176.081, subdivision 7, is amended to read: 11.30    Subd. 7. Award; additional amount. If the employer or insurer files a denial of 11.31liability, notice of discontinuance, or fails to make payment of compensation or medical 11.32expenses within the statutory period after notice of injury or occupational disease, or 11.33otherwise unsuccessfully resists the payment of compensation or medical expenses, 11.34or unsuccessfully disputes the payment of rehabilitation benefits or other aspects of 11.35a rehabilitation plan, and the injured person has employed an attorney at law, who 12.1successfully procures payment on behalf of the employee or who enables the resolution of 12.2a dispute with respect to a rehabilitation plan, the compensation judge, commissioner, or 12.3the Workers' Compensation Court of Appeals upon appeal, upon application, shall award 12.4to the employee against the insurer or self-insured employer or uninsured employer, in 12.5addition to the compensation benefits paid or awarded to the employee, an amount equal 12.6to 30 percent of that portion of the attorney's fee which has been awarded pursuant to this 12.7section that is in excess of $250. new text begin This subdivision shall apply only to contingent fees new text end 12.8 new text begin payable from the employee's compensation benefits, and not to other fees paid by the new text end 12.9 new text begin employer and insurer, including but not limited to those fees payable for resolution of a new text end 12.10 new text begin medical dispute or rehabilitation dispute, or pursuant to section 176.191. new text end 12.11    Sec. 5. Minnesota Statutes 2012, section 176.101, subdivision 1, is amended to read: 12.12    Subdivision 1. Temporary total disability. (a) For injury producing temporary total 12.13disability, the compensation is 66-2/3 percent of the weekly wage at the time of injury. 12.14(b)(1) Commencing on October 1, 2008 new text begin 2013, and each October 1 thereafter new text end , the 12.15maximum weekly compensation payable is $850 per week new text begin 102 percent of the statewide new text end 12.16 new text begin average weekly wage for the period ending December 31 of the preceding year new text end . 12.17(2) The Workers' Compensation Advisory Council may consider adjustment 12.18increases and make recommendations to the legislature. 12.19(c) The minimum weekly compensation payable is $130 per week or the injured 12.20employee's actual weekly wage, whichever is less. 12.21(d) Temporary total compensation shall be paid during the period of disability 12.22subject to the cessation and recommencement conditions in paragraphs (e) to (l). 12.23(e) Temporary total disability compensation shall cease when the employee returns 12.24to work. Except as otherwise provided in section 176.102, subdivision 11, temporary 12.25total disability compensation may only be recommenced following cessation under this 12.26paragraph, paragraph (h), or paragraph (j) prior to payment of 130 weeks of temporary 12.27total disability compensation and only as follows: 12.28(1) if temporary total disability compensation ceased because the employee returned 12.29to work, it may be recommenced if the employee is laid off or terminated for reasons other 12.30than misconduct if the layoff or termination occurs prior to 90 days after the employee 12.31has reached maximum medical improvement. Recommenced temporary total disability 12.32compensation under this clause ceases when any of the cessation events in paragraphs 12.33(e) to (l) occurs; or 12.34(2) if temporary total disability compensation ceased because the employee returned 12.35to work or ceased under paragraph (h) or (j), it may be recommenced if the employee is 13.1medically unable to continue at a job due to the injury. Where the employee is medically 13.2unable to continue working due to the injury, temporary total disability compensation 13.3may continue until any of the cessation events in paragraphs (e) to (l) occurs following 13.4recommencement. If an employee who has not yet received temporary total disability 13.5compensation becomes medically unable to continue working due to the injury after 13.6reaching maximum medical improvement, temporary total disability compensation shall 13.7commence and shall continue until any of the events in paragraphs (e) to (l) occurs 13.8following commencement. For purposes of commencement or recommencement under 13.9this clause only, a new period of maximum medical improvement under paragraph 13.10(j) begins when the employee becomes medically unable to continue working due to 13.11the injury. Temporary total disability compensation may not be recommenced under 13.12this clause and a new period of maximum medical improvement does not begin if the 13.13employee is not actively employed when the employee becomes medically unable to 13.14work. All periods of initial and recommenced temporary total disability compensation are 13.15included in the 130-week limitation specified in paragraph (k). 13.16(f) Temporary total disability compensation shall cease if the employee withdraws 13.17from the labor market. Temporary total disability compensation may be recommenced 13.18following cessation under this paragraph only if the employee reenters the labor market 13.19prior to 90 days after the employee reached maximum medical improvement and prior to 13.20payment of 130 weeks of temporary total disability compensation. Once recommenced, 13.21temporary total disability ceases when any of the cessation events in paragraphs (e) to 13.22(l) occurs. 13.23(g) Temporary total disability compensation shall cease if the total disability ends 13.24and the employee fails to diligently search for appropriate work within the employee's 13.25physical restrictions. Temporary total disability compensation may be recommenced 13.26following cessation under this paragraph only if the employee begins diligently searching 13.27for appropriate work within the employee's physical restrictions prior to 90 days after 13.28maximum medical improvement and prior to payment of 130 weeks of temporary total 13.29disability compensation. Once recommenced, temporary total disability compensation 13.30ceases when any of the cessation events in paragraphs (e) to (l) occurs. 13.31(h) Temporary total disability compensation shall cease if the employee has been 13.32released to work without any physical restrictions caused by the work injury. 13.33(i) Temporary total disability compensation shall cease if the employee refuses an 13.34offer of work that is consistent with a plan of rehabilitation filed with the commissioner 13.35which meets the requirements of section 176.102, subdivision 4, or, if no plan has been 13.36filed, the employee refuses an offer of gainful employment that the employee can do in the 14.1employee's physical condition. Once temporary total disability compensation has ceased 14.2under this paragraph, it may not be recommenced. 14.3(j) Temporary total disability compensation shall cease 90 days after the employee 14.4has reached maximum medical improvement, except as provided in section 176.102, 14.5subdivision 11, paragraph (b) . For purposes of this subdivision, the 90-day period after 14.6maximum medical improvement commences on the earlier of: (1) the date that the 14.7employee receives a written medical report indicating that the employee has reached 14.8maximum medical improvement; or (2) the date that the employer or insurer serves the 14.9report on the employee and the employee's attorney, if any. Once temporary total disability 14.10compensation has ceased under this paragraph, it may not be recommenced except if the 14.11employee returns to work and is subsequently medically unable to continue working 14.12as provided in paragraph (e), clause (2). 14.13(k) Temporary total disability compensation shall cease entirely when 130 weeks 14.14of temporary total disability compensation have been paid, except as provided in section 14.15176.102, subdivision 11, paragraph (b) . Notwithstanding anything in this section to the 14.16contrary, initial and recommenced temporary total disability compensation combined shall 14.17not be paid for more than 130 weeks, regardless of the number of weeks that have elapsed 14.18since the injury, except that if the employee is in a retraining plan approved under section 14.19176.102, subdivision 11 , the 130-week limitation shall not apply during the retraining, but 14.20is subject to the limitation before the plan begins and after the plan ends. 14.21(l) Paragraphs (e) to (k) do not limit other grounds under law to suspend or 14.22discontinue temporary total disability compensation provided under this chapter. 14.23(m) Once an employee has been paid 52 weeks of temporary total compensation, 14.24the employer or insurer must notify the employee in writing of the 130-week limitation 14.25on payment of temporary total compensation. A copy of this notice must also be filed 14.26with the department. 14.27    Sec. 6. Minnesota Statutes 2012, section 176.102, subdivision 5, is amended to read: 14.28    Subd. 5. On-the-job training new text begin ; job development limitation new text end . new text begin (a) new text end On-the-job training 14.29is to be given consideration in developing a rehabilitation plan especially where it would 14.30produce an economic status similar to that enjoyed prior to disability. 14.31 new text begin (b) For purposes of this subdivision, job development means systematic contact with new text end 14.32 new text begin prospective employers resulting in opportunities for interviews and employment that new text end 14.33 new text begin might not otherwise have existed, and includes identification of job leads and arranging new text end 14.34 new text begin for job interviews. Job development facilitates a prospective employer's consideration new text end 14.35 new text begin of a qualified employee for employment. Job development services provided by a new text end 15.1 new text begin qualified rehabilitation consultant firm or a registered rehabilitation vendor must not new text end 15.2 new text begin exceed 20 hours per month or 26 consecutive or intermittent weeks. When 13 consecutive new text end 15.3 new text begin or intermittent weeks of job development services have been provided, the qualified new text end 15.4 new text begin rehabilitation consultant must consult with the parties and either file a plan amendment new text end 15.5 new text begin reflecting an agreement by the parties to extend job development services for up to new text end 15.6 new text begin an additional 13 consecutive or intermittent weeks, or file a request for a rehabilitation new text end 15.7 new text begin conference under section 176.106. The commissioner or compensation judge may issue an new text end 15.8 new text begin order modifying the rehabilitation plan or make other determinations about the employee's new text end 15.9 new text begin rehabilitation, but must not order more than 26 total consecutive or intermittent weeks of new text end 15.10 new text begin job development services. new text end 15.11    Sec. 7. Minnesota Statutes 2012, section 176.102, subdivision 10, is amended to read: 15.12    Subd. 10. Rehabilitation; consultants and vendors. new text begin (a) new text end The commissioner shall 15.13approve rehabilitation consultants who may propose and implement plans if they satisfy 15.14rules adopted by the commissioner for rehabilitation consultants. A consultant may be an 15.15individual or public or private entity, and except for rehabilitation services, Department of 15.16Employment and Economic Development, a consultant may not be a vendor or the agent 15.17of a vendor of rehabilitation services. The commissioner shall also approve rehabilitation 15.18vendors if they satisfy rules adopted by the commissioner. 15.19 new text begin (b) An individual qualified rehabilitation consultant registered by the commissioner new text end 15.20 new text begin must not provide any medical, rehabilitation, or disability case management services related new text end 15.21 new text begin to an injury that is compensable under this chapter when these services are part of the same new text end 15.22 new text begin claim, unless the case management services are part of an approved rehabilitation plan. new text end 15.23    Sec. 8. Minnesota Statutes 2012, section 176.106, subdivision 3, is amended to read: 15.24    Subd. 3. Conference. The matter shall be scheduled for an administrative 15.25conference within 60 days after receipt of the request for a conference new text begin , except that an new text end 15.26 new text begin administrative conference on a rehabilitation issue under section 176.102 must be held new text end 15.27 new text begin within 21 days, unless the issue involves only fees for rehabilitation services that have new text end 15.28 new text begin already been provided or there is good cause for holding the conference later than 21 new text end 15.29 new text begin days. If there is a rehabilitation plan in effect, the qualified rehabilitation consultant must new text end 15.30 new text begin continue to provide reasonable services under the plan until the date the conference was new text end 15.31 new text begin initially scheduled to be held new text end . Notice of the conference shall be served on all parties no 15.32later than 14 days prior to the conference, unless the commissioner or compensation judge 15.33determines that a conference shall not be held. The commissioner or compensation judge 16.1may order an administrative conference before the commissioner's designee whether or 16.2not a request for conference is filed. 16.3The commissioner or compensation judge may refuse to hold an administrative 16.4conference and refer the matter for a settlement or pretrial conference or may certify the 16.5matter to the Office of Administrative Hearings for a full hearing before a compensation 16.6judge. 16.7    Sec. 9. Minnesota Statutes 2012, section 176.136, subdivision 1b, is amended to read: 16.8    Subd. 1b. Limitation of liability. (a) The liability of the employer for treatment, 16.9articles, and supplies provided to an employee while an inpatient or outpatient at a small 16.10hospital shall be the hospital's usual and customary charge, unless the charge is determined 16.11by the commissioner or a compensation judge to be unreasonably excessive. A "small 16.12hospital," for purposes of this paragraph, is a hospital which has 100 or fewer licensed beds. 16.13(b) The liability of the employer for the treatment, articles, and supplies that are 16.14not limited by subdivision 1a or 1c or paragraph (a) shall be limited to 85 percent of 16.15the provider's usual and customary charge, or 85 percent of the prevailing charges for 16.16similar treatment, articles, and supplies furnished to an injured person when paid for by 16.17the injured person, whichever is lower. On this basis, the commissioner or compensation 16.18judge may determine the reasonable value of all treatment, services, and supplies, and 16.19the liability of the employer is limited to that amount. The commissioner may by rule 16.20establish the reasonable value of a service, article, or supply in lieu of the 85 percent 16.21limitation in this paragraph. new text begin A prevailing charge established under Minnesota Rules, new text end 16.22 new text begin part 5221.0500, subpart 2, must be based on no more than two years of billing data new text end 16.23 new text begin immediately preceding the date of the service. new text end 16.24(c) The limitation of liability for charges provided by paragraph (b) does not apply 16.25to a nursing home that participates in the medical assistance program and whose rates are 16.26established by the commissioner of human services. 16.27(d) An employer's liability for treatment, articles, and supplies provided under this 16.28chapter by a health care provider located outside of Minnesota is limited to the payment that 16.29the health care provider would receive if the treatment, article, or supply were paid under 16.30the workers' compensation law of the jurisdiction in which the treatment was provided. 16.31    Sec. 10. Minnesota Statutes 2012, section 176.645, is amended to read: 16.32176.645 ADJUSTMENT OF BENEFITS. 16.33    Subdivision 1. Amount. For injuries occurring after October 1, 1975, for which 16.34benefits are payable under section 176.101, subdivisions 1, 2 and 4, and section 176.111, 17.1subdivision 5 , the total benefits due the employee or any dependents shall be adjusted in 17.2accordance with this section. On October 1, 1981, and thereafter on the anniversary of 17.3the date of the employee's injury the total benefits due shall be adjusted by multiplying 17.4the total benefits due prior to each adjustment by a fraction, the denominator of which 17.5is the statewide average weekly wage for December 31, of the year two years previous 17.6to the adjustment and the numerator of which is the statewide average weekly wage for 17.7December 31, of the year previous to the adjustment. For injuries occurring after October 17.81, 1975, all adjustments provided for in this section shall be included in computing 17.9any benefit due under this section. Any limitations of amounts due for daily or weekly 17.10compensation under this chapter shall not apply to adjustments made under this section. 17.11No adjustment increase made on or after October 1, 1977, but prior to October 1, 17.121992, under this section shall exceed six percent a year; in those instances where the 17.13adjustment under the formula of this section would exceed this maximum, the increase 17.14shall be deemed to be six percent. No adjustment increase made on or after October 1, 17.151992, under this section shall exceed four percent a year; in those instances where the 17.16adjustment under the formula of this section would exceed this maximum, the increase 17.17shall be deemed to be four percent. For injuries occurring on and after October 1, 1995, no 17.18adjustment increase made on or after October 1, 1995, shall exceed two percent a year; 17.19in those instances where the adjustment under the formula of this section would exceed 17.20this maximum, the increase shall be deemed to be two percent. new text begin For injuries occurring on new text end 17.21 new text begin and after October 1, 2013, no adjustment increase shall exceed three percent a year. If new text end 17.22 new text begin the adjustment under the formula of this section would exceed three percent, the increase new text end 17.23 new text begin shall be three percent. No adjustment under this section shall be less than zero percent. new text end 17.24The Workers' Compensation Advisory Council may consider adjustment or other further 17.25increases and make recommendations to the legislature. 17.26    Subd. 2. Time of first adjustment. For injuries occurring on or after October 1, 17.271981, the initial adjustment made pursuant to subdivision 1 is deferred until the first 17.28anniversary of the date of the injury. For injuries occurring on or after October 1, 1992, 17.29the initial adjustment under subdivision 1 is deferred until the second anniversary of the 17.30date of the injury. The adjustment made at that time shall be that of the last year only. For 17.31injuries occurring on or after October 1, 1995, the initial adjustment under subdivision 1 is 17.32deferred until the fourth anniversary of the date of injury. The adjustment at that time shall 17.33be that of the last year only. new text begin For injuries occurring on or after October 1, 2013, the initial new text end 17.34 new text begin adjustment under subdivision 1 is deferred until the third anniversary of the date of injury. new text end 17.35 new text begin The adjustment made at that time shall be that of the last year only. new text end 18.1    Sec. 11. Minnesota Statutes 2012, section 176.83, subdivision 5, is amended to read: 18.2    Subd. 5. Treatment standards for medical services. (a) In consultation with the 18.3Medical Services Review Board or the rehabilitation review panel, the commissioner shall 18.4adopt rules establishing standards and procedures for health care provider treatment. The 18.5rules shall apply uniformly to all providers including those providing managed care under 18.6section 176.1351. The rules shall be used to determine whether a provider of health 18.7care services and rehabilitation services, including a provider of medical, chiropractic, 18.8podiatric, surgical, hospital, or other services, is performing procedures or providing 18.9services at a level or with a frequency that is excessive, unnecessary, or inappropriate 18.10under section 176.135, subdivision 1, based upon accepted medical standards for quality 18.11health care and accepted rehabilitation standards. 18.12(b) The rules shall include, but are not limited to, the following: 18.13(1) criteria for diagnosis and treatment of the most common work-related injuries 18.14including, but not limited to, low back injuries and upper extremity repetitive trauma 18.15injuries; 18.16(2) criteria for surgical procedures including, but not limited to, diagnosis, prior 18.17conservative treatment, supporting diagnostic imaging and testing, and anticipated 18.18outcome criteria; 18.19(3) criteria for use of appliances, adaptive equipment, and use of health clubs or 18.20other exercise facilities; 18.21(4) criteria for diagnostic imaging procedures; 18.22(5) criteria for inpatient hospitalization; and 18.23(6) criteria for treatment of chronic pain new text begin ; and new text end 18.24 new text begin (7) criteria for the long-term use of opioids or other scheduled medications to new text end 18.25 new text begin alleviate intractable pain and improve function, including the use of written contracts new text end 18.26 new text begin between the injured worker and the health care provider who prescribes the medication new text end . 18.27(c) If it is determined by the payer that the level, frequency, or cost of a procedure or 18.28service of a provider is excessive, unnecessary, or inappropriate according to the standards 18.29established by the rules, the provider shall not be paid for the procedure, service, or cost 18.30by an insurer, self-insurer, or group self-insurer, and the provider shall not be reimbursed 18.31or attempt to collect reimbursement for the procedure, service, or cost from any other 18.32source, including the employee, another insurer, the special compensation fund, or any 18.33government program unless the commissioner or compensation judge determines at a 18.34hearing or administrative conference that the level, frequency, or cost was not excessive 18.35under the rules in which case the insurer, self-insurer, or group self-insurer shall make 18.36the payment deemed reasonable. 19.1(d) A rehabilitation provider who is determined by the rehabilitation review panel 19.2board, after hearing, to be consistently performing procedures or providing services at an 19.3excessive level or cost may be prohibited from receiving any further reimbursement for 19.4procedures or services provided under this chapter. A prohibition imposed on a provider 19.5under this subdivision may be grounds for revocation or suspension of the provider's 19.6license or certificate of registration to provide health care or rehabilitation service in 19.7Minnesota by the appropriate licensing or certifying body. The commissioner and Medical 19.8Services Review Board shall review excessive, inappropriate, or unnecessary health care 19.9provider treatment under section 176.103. 19.10    Sec. 12. new text begin PATIENT ADVOCATE PILOT PROGRAM. new text end 19.11 new text begin The commissioner of labor and industry shall implement a two-year patient new text end 19.12 new text begin advocate program for employees with back injuries who are considering back fusion new text end 19.13 new text begin surgery. The purpose of the program is to ensure that injured workers understand their new text end 19.14 new text begin treatment options and receive treatment for their work injuries according to accepted new text end 19.15 new text begin medical standards. The services provided by the patient advocate shall be paid for from new text end 19.16 new text begin the special compensation fund. new text end 19.17    Sec. 13. new text begin REIMBURSEMENT COST STUDY. new text end 19.18 new text begin The commissioner of labor and industry shall study the effectiveness and costs of new text end 19.19 new text begin potential reforms and barriers within the workers' compensation carrier and health care new text end 19.20 new text begin provider reimbursement system, including, but not limited to, carrier administrative costs, new text end 19.21 new text begin prompt payment, uniform claim components, and the effect on provider reimbursements new text end 19.22 new text begin and injured worker co-payments of implementing the subjects studied. The commissioner new text end 19.23 new text begin shall consult with interested stakeholders including health care providers, workers' new text end 19.24 new text begin compensation insurance carriers, and representatives of business and labor to provide new text end 19.25 new text begin relevant data promptly to the department to complete the study. The commissioner shall new text end 19.26 new text begin report findings and recommendations to the Workers' Compensation Advisory Council new text end 19.27 new text begin by December 31, 2013. new text end 19.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 19.29    Sec. 14. new text begin EFFECTIVE DATE. new text end 19.30 new text begin (a) Sections 1 to 6 and 10 are effective for employees with dates of injury occurring new text end 19.31 new text begin on or after October 1, 2013. new text end 19.32 new text begin (b) Sections 7, 8, and 12 are effective on October 1, 2013. new text end 20.1 new text begin (c) Section 9 is effective on October 1, 2013, and shall be used to establish prevailing new text end 20.2 new text begin charges on or after that date. new text end 20.3 new text begin (d) Section 11 is effective October 1, 2013, and applies to employees with all dates new text end 20.4 new text begin of injury who receive treatment after the rules are adopted. new text end