<a id="pl.1.3"></a><var>1.3</var>changes; adopting advisory council recommendations; requiring a report;<br/>
<a id="pl.1.4"></a><var>1.4</var>amending Minnesota Statutes 2012, sections 176.011, subdivisions 15, 16; <br/>
<a id="pl.1.5"></a><var>1.5</var>176.081, subdivisions 1, 7; 176.101, subdivision 1; 176.102, subdivisions 3a, 5, <br/>
<a id="pl.1.6"></a><var>1.6</var>10; 176.106, subdivisions 1, 3; 176.129, subdivision 13; 176.136, subdivision <br/>
<a id="pl.1.7"></a><var>1.7</var>1b; 176.138; 176.183, subdivision 4; 176.245; 176.521; 176.645; 176.83, <br/>
<a id="pl.1.8"></a><var>1.8</var>subdivision 5.<br/>
<a id="pl.1.9"></a><var>1.9</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.12"></a><var>1.12</var>    Section 1. Minnesota Statutes 2012, section 176.102, subdivision 3a, is amended to read:<br/>
<a id="pl.1.13"></a><var>1.13</var>    Subd. 3a. <b>Disciplinary actions.</b> The panel has authority to discipline qualified <br/>
<a id="pl.1.14"></a><var>1.14</var>rehabilitation consultants and vendors and may impose a penalty of up to $3,000 per <br/>
<a id="pl.1.15"></a><var>1.15</var>violation, payable to the commissioner for deposit in the assigned risk safety account, and <br/>
<a id="pl.1.16"></a><var>1.16</var>may suspend or revoke certification. Complaints against registered qualified rehabilitation <br/>
<a id="pl.1.17"></a><var>1.17</var>consultants and vendors shall be made to the commissioner who shall may investigate <br/>
<a id="pl.1.18"></a><var>1.18</var>all complaints. If the investigation indicates a violation of this chapter or rules adopted <br/>
<a id="pl.1.19"></a><var>1.19</var>under this chapter, the commissioner may initiate a contested case proceeding under the <br/>
<a id="pl.1.20"></a><var>1.20</var>provisions of chapter 14. In these cases, the rehabilitation review panel shall make the <br/>
<a id="pl.1.21"></a><var>1.21</var>final decision following receipt of the report of an administrative law judge. The decision <br/>
<a id="pl.1.22"></a><var>1.22</var>of the panel is appealable to the Workers' Compensation Court of Appeals in the manner <br/>
<a id="pl.1.23"></a><var>1.23</var>provided by section 
         <statute_ref>176.421</statute_ref>. The panel shall continuously study rehabilitation services <br/>
<a id="pl.1.24"></a><var>1.24</var>and delivery, develop and recommend rehabilitation rules to the commissioner, and assist <br/>
<a id="pl.1.25"></a><var>1.25</var>the commissioner in accomplishing public education.<br/>
<a id="pl.2.1"></a><var>2.1</var>The commissioner may appoint alternates for one-year terms to serve as a member <br/>
<a id="pl.2.2"></a><var>2.2</var>when a member is unavailable. The number of alternates shall not exceed one labor <br/>
<a id="pl.2.3"></a><var>2.3</var>member, one employer or insurer member, and one member representing a licensed or <br/>
<a id="pl.2.4"></a><var>2.4</var>registered health care provider, chiropractic, or rehabilitation.<br/>
<a id="pl.2.5"></a><var>2.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.6"></a><var>2.6</var>    Sec. 2. Minnesota Statutes 2012, section 176.106, subdivision 1, is amended to read:<br/>
<a id="pl.2.7"></a><var>2.7</var>    Subdivision 1. <b>Scope.</b> All determinations by the commissioner or compensation <br/>
<a id="pl.2.8"></a><var>2.8</var>judge pursuant to section 
         <statute_ref>176.102</statute_ref>, 
         <statute_ref>176.103</statute_ref>, 
         <statute_ref>176.135</statute_ref>, or 
         <statute_ref>176.136</statute_ref> shall be in accordance <br/>
<a id="pl.2.9"></a><var>2.9</var>with the procedures contained in this section. For medical disputes under sections 
         <statute_ref>176.135</statute_ref> <br/>
<a id="pl.2.10"></a><var>2.10</var>and 
         <statute_ref>176.136</statute_ref>, the commissioner shall have jurisdiction to hold an administrative conference <br/>
<a id="pl.2.11"></a><var>2.11</var>and issue decisions and orders under this section if the amount in dispute at the time the <br/>
<a id="pl.2.12"></a><var>2.12</var>medical request is filed is $7,500 or less. The $7,500 limit does not apply if the medical <br/>
<a id="pl.2.13"></a><var>2.13</var>issue to be determined is whether a charge for a service, article, or supply is excessive <br/>
<a id="pl.2.14"></a><var>2.14</var>under section 176.136, subdivision 1, 1a, 1b, or 1c, and corresponding Minnesota Rules.<br/>
<a id="pl.2.15"></a><var>2.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.2.16"></a><var>2.16</var>and applies to medical disputes filed on or after that date.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.2.17"></a><var>2.17</var>    Sec. 3. Minnesota Statutes 2012, section 176.129, subdivision 13, is amended to read:<br/>
<a id="pl.2.18"></a><var>2.18</var>    Subd. 13. <b>Employer reports.</b> (a) All employers and insurers shall make reports to <br/>
<a id="pl.2.19"></a><var>2.19</var>the commissioner as required for the proper administration of this section and Minnesota <br/>
<a id="pl.2.20"></a><var>2.20</var>Statutes 1990, section 
         <statute_ref>176.131</statute_ref>, and Minnesota Statutes 1994, section 
         <statute_ref>176.132</statute_ref>. Employers <br/>
<a id="pl.2.21"></a><var>2.21</var>and insurers may not be reimbursed from the special compensation fund for any <br/>
<a id="pl.2.22"></a><var>2.22</var>periods unless the employer or insurer is up to date with all past due and currently due <br/>
<a id="pl.2.23"></a><var>2.23</var>assessments, penalties, and reports to the special compensation fund under this section. <br/>
<a id="pl.2.24"></a><var>2.24</var>The commissioner may allow an offset of the reimbursements due an employer or insurer <br/>
<a id="pl.2.25"></a><var>2.25</var>pursuant to Minnesota Statutes 1990, section 
         <statute_ref>176.131</statute_ref>, and Minnesota Statutes 1994, <br/>
<a id="pl.2.26"></a><var>2.26</var>section 
         <statute_ref>176.132</statute_ref>, against the assessment due under the section or against any other debt <br/>
<a id="pl.2.27"></a><var>2.27</var>owed to the special compensation fund by the employer or insurer.<br/>
<a id="pl.2.28"></a><var>2.28</var>(b) Except as provided in paragraph (c), the special compensation fund shall not <br/>
<a id="pl.2.29"></a><var>2.29</var>reimburse an insolvent insurer for subsequent injury or supplementary benefits after a <br/>
<a id="pl.2.30"></a><var>2.30</var>declaration of bankruptcy or order of liquidation or insolvency is issued for the insurer, <br/>
<a id="pl.2.31"></a><var>2.31</var>even if the benefits were paid before the declaration or order. This does not limit the claim <br/>
<a id="pl.2.32"></a><var>2.32</var>distribution or set-off authority of a court, trustee, or liquidator under federal bankruptcy <br/>
<a id="pl.2.33"></a><var>2.33</var>law or under chapter 60B or a similar law in another jurisdiction. For purposes of this <br/>
<a id="pl.3.1"></a><var>3.1</var>paragraph, subsequent injury benefits are the benefits paid pursuant to Minnesota Statutes <br/>
<a id="pl.3.2"></a><var>3.2</var>1990, section 176.131, and supplementary benefits are the benefits paid pursuant to <br/>
<a id="pl.3.3"></a><var>3.3</var>Minnesota Statutes 1994, section 176.132.<br/>
<a id="pl.3.4"></a><var>3.4</var>(c) The special compensation fund shall reimburse an insolvent insurer for <br/>
<a id="pl.3.5"></a><var>3.5</var>subsequent injury or supplemental benefits after a declaration of bankruptcy or order of <br/>
<a id="pl.3.6"></a><var>3.6</var>liquidation or insolvency to an insolvent insurer who has filed for reimbursement from the <br/>
<a id="pl.3.7"></a><var>3.7</var>special compensation fund before June 1, 2013. This includes reimbursement for any past, <br/>
<a id="pl.3.8"></a><var>3.8</var>pending, or future claims that may arise out of the insolvent insurer's coverage.<br/>
<a id="pl.3.9"></a><var>3.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.3.10"></a><var>3.10</var>and applies to claims for reimbursement filed with the special compensation fund on or <br/>
<a id="pl.3.11"></a><var>3.11</var>after that date.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.12"></a><var>3.12</var>    Sec. 4. Minnesota Statutes 2012, section 176.138, is amended to read:<br/>
<a id="pl.3.13"></a><var>3.13</var><b>176.138 MEDICAL DATA; ACCESS.</b><br/>
<a id="pl.3.14"></a><var>3.14</var>(a) Notwithstanding any other state laws related to the privacy of medical data or <br/>
<a id="pl.3.15"></a><var>3.15</var>any private agreements to the contrary, the release in writing, by telephone discussion, or <br/>
<a id="pl.3.16"></a><var>3.16</var>otherwise of medical data related to a current claim for compensation under this chapter <br/>
<a id="pl.3.17"></a><var>3.17</var>to the employee, employer, or insurer who are parties to the claim, or to the Department <br/>
<a id="pl.3.18"></a><var>3.18</var>of Labor and Industry, shall not require prior approval of any party to the claim. This <br/>
<a id="pl.3.19"></a><var>3.19</var>section does not preclude the release of medical data under section 
         <statute_ref>175.10</statute_ref> or 
         <statute_ref>176.231, <br/>
<a id="pl.3.20"></a><var>3.20</var>subdivision 9
         </statute_ref>. Requests for pertinent data shall be made, and the date of discussions <br/>
<a id="pl.3.21"></a><var>3.21</var>with medical providers about medical data shall be confirmed, in writing to the person <br/>
<a id="pl.3.22"></a><var>3.22</var>or organization that collected or currently possesses the data. Written medical data that <br/>
<a id="pl.3.23"></a><var>3.23</var>exists at the time the request is made shall be provided by the collector or possessor within <br/>
<a id="pl.3.24"></a><var>3.24</var>seven working days of receiving the request. Nonwritten medical data may be provided, <br/>
<a id="pl.3.25"></a><var>3.25</var>but is not required to be provided, by the collector or possessor. In all cases of a request <br/>
<a id="pl.3.26"></a><var>3.26</var>for the data or discussion with a medical provider about the data, except when it is the <br/>
<a id="pl.3.27"></a><var>3.27</var>employee who is making the request, the employee shall be sent written notification of the <br/>
<a id="pl.3.28"></a><var>3.28</var>request by the party requesting the data at the same time the request is made or a written <br/>
<a id="pl.3.29"></a><var>3.29</var>confirmation of the discussion. This data shall be treated as private data by the party who <br/>
<a id="pl.3.30"></a><var>3.30</var>requests or receives the data and the party receiving the data shall provide the employee or <br/>
<a id="pl.3.31"></a><var>3.31</var>the employee's attorney with a copy of all data requested by the requester.<br/>
<a id="pl.3.32"></a><var>3.32</var>(b) Medical data which is not directly related to a current injury or disability shall <br/>
<a id="pl.3.33"></a><var>3.33</var>not be released without prior authorization of the employee.<br/>
<a id="pl.4.1"></a><var>4.1</var>(c) The commissioner may impose a penalty of up to $600 payable to the <br/>
<a id="pl.4.2"></a><var>4.2</var>commissioner for deposit in the assigned risk safety account against a party who does not <br/>
<a id="pl.4.3"></a><var>4.3</var>timely release data as required in this section. A party who does not treat this data as <br/>
<a id="pl.4.4"></a><var>4.4</var>private pursuant to this section is guilty of a misdemeanor. This paragraph applies only to <br/>
<a id="pl.4.5"></a><var>4.5</var>written medical data which exists at the time the request is made.<br/>
<a id="pl.4.6"></a><var>4.6</var>(d) Workers' compensation insurers and self-insured employers may, for the sole <br/>
<a id="pl.4.7"></a><var>4.7</var>purpose of identifying duplicate billings submitted to more than one insurer, disclose to <br/>
<a id="pl.4.8"></a><var>4.8</var>health insurers, including all insurers writing insurance described in section 
         <statute_ref>60A.06, <br/>
<a id="pl.4.9"></a><var>4.9</var>subdivision 1
         </statute_ref>, clause (5)(a), nonprofit health service plan corporations subject to chapter <br/>
<a id="pl.4.10"></a><var>4.10</var>62C, health maintenance organizations subject to chapter 62D, and joint self-insurance <br/>
<a id="pl.4.11"></a><var>4.11</var>employee health plans subject to chapter 62H, computerized information about dates, <br/>
<a id="pl.4.12"></a><var>4.12</var>coded items, and charges for medical treatment of employees and other medical billing <br/>
<a id="pl.4.13"></a><var>4.13</var>information submitted to them by an employee, employer, health care provider, or other <br/>
<a id="pl.4.14"></a><var>4.14</var>insurer in connection with a current claim for compensation under this chapter, without <br/>
<a id="pl.4.15"></a><var>4.15</var>prior approval of any party to the claim. The data may not be used by the health insurer <br/>
<a id="pl.4.16"></a><var>4.16</var>for any other purpose whatsoever and must be destroyed after verification that there has <br/>
<a id="pl.4.17"></a><var>4.17</var>been no duplicative billing. Any person who is the subject of the data which is used in <br/>
<a id="pl.4.18"></a><var>4.18</var>a manner not allowed by this paragraph has a cause of action for actual damages and <br/>
<a id="pl.4.19"></a><var>4.19</var>punitive damages for a minimum of $5,000.<br/>
<a id="pl.4.20"></a><var>4.20</var>(e) Medical data collected, stored, used, or disseminated by or filed with the <br/>
<a id="pl.4.21"></a><var>4.21</var>commissioner in connection with a claim for workers' compensation benefits governed by <br/>
<a id="pl.4.22"></a><var>4.22</var>this chapter does not constitute genetic information for the purposes of section 13.386.<br/>
<a id="pl.4.23"></a><var>4.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 5. Minnesota Statutes 2012, section 176.183, subdivision 4, is amended to read:<br/>
<a id="pl.4.25"></a><var>4.25</var>    Subd. 4. <b>Notice by commissioner; rights of parties.</b> (a) If the commissioner <br/>
<a id="pl.4.26"></a><var>4.26</var>authorizes the special compensation fund to commence payment without the issuance of <br/>
<a id="pl.4.27"></a><var>4.27</var>a temporary order, the commissioner shall serve by certified first class mail notice upon <br/>
<a id="pl.4.28"></a><var>4.28</var>the employer and other interested parties of the intention to commence payment. This <br/>
<a id="pl.4.29"></a><var>4.29</var>notice shall be served at least ten calendar days before commencing payment and shall <br/>
<a id="pl.4.30"></a><var>4.30</var>be mailed to the last known address of the parties employer. The notice shall include a <br/>
<a id="pl.4.31"></a><var>4.31</var>statement that failure of the employer to respond within ten calendar days of the date <br/>
<a id="pl.4.32"></a><var>4.32</var>of service will be deemed acceptance by the employer of the proposed action by the <br/>
<a id="pl.4.33"></a><var>4.33</var>commissioner special compensation fund and will be deemed a waiver of defenses the <br/>
<a id="pl.4.34"></a><var>4.34</var>employer has to a subrogation or indemnity action by the commissioner the special <br/>
<a id="pl.4.35"></a><var>4.35</var>compensation fund's action to recover amounts specified under subdivision 2. At any time <br/>
<a id="pl.5.1"></a><var>5.1</var>prior to final determination of liability, the employer may appear as a party and present <br/>
<a id="pl.5.2"></a><var>5.2</var>defenses the employer has, whether or not an appearance by the employer has previously <br/>
<a id="pl.5.3"></a><var>5.3</var>been made in the matter. The commissioner special compensation fund has a cause of <br/>
<a id="pl.5.4"></a><var>5.4</var>action against the employer to recover compensation paid by the special fund under this <br/>
<a id="pl.5.5"></a><var>5.5</var>section amounts specified under subdivision 2.<br/>
<a id="pl.5.6"></a><var>5.6</var>(b) The commissioner shall notify the employer by first class mail if the special <br/>
<a id="pl.5.7"></a><var>5.7</var>compensation fund intends to enter into a settlement agreement with the employee for <br/>
<a id="pl.5.8"></a><var>5.8</var>the payment of benefits under this section. This notice shall be sent by first class mail to <br/>
<a id="pl.5.9"></a><var>5.9</var>the last known address of the employer at least 15 calendar days before executing the <br/>
<a id="pl.5.10"></a><var>5.10</var>settlement agreement, and shall include:<br/>
<a id="pl.5.11"></a><var>5.11</var>(1) a copy of the proposed settlement agreement;<br/>
<a id="pl.5.12"></a><var>5.12</var>(2) a statement that within 15 calendar days the employer must notify the special <br/>
<a id="pl.5.13"></a><var>5.13</var>compensation fund in writing of its objection to the proposed settlement; and<br/>
<a id="pl.5.14"></a><var>5.14</var>(3) a statement that if the special compensation fund does not receive the employer's <br/>
<a id="pl.5.15"></a><var>5.15</var>written objection within 15 calendar days, the employer must be deemed to have waived <br/>
<a id="pl.5.16"></a><var>5.16</var>all defenses to the special compensation fund's claim for amounts specified under <br/>
<a id="pl.5.17"></a><var>5.17</var>subdivision 2.<br/>
<a id="pl.5.18"></a><var>5.18</var>(c) If a settlement agreement is approved by the commissioner or compensation judge <br/>
<a id="pl.5.19"></a><var>5.19</var>after the commissioner has provided notice to the employer under paragraph (b), and if the <br/>
<a id="pl.5.20"></a><var>5.20</var>employer did not provide timely written notification to the special compensation fund of <br/>
<a id="pl.5.21"></a><var>5.21</var>the employer's objection, then the employer must be deemed to have waived all defenses <br/>
<a id="pl.5.22"></a><var>5.22</var>to the special compensation fund's claim for amounts specified under subdivision 2.<br/>
<a id="pl.5.23"></a><var>5.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.5.24"></a><var>5.24</var>    Sec. 6. Minnesota Statutes 2012, section 176.245, is amended to read:<br/>
<a id="pl.5.25"></a><var>5.25</var><b>176.245 RECEIPTS FOR PAYMENT OF COMPENSATION, FILING.</b><br/>
<a id="pl.5.26"></a><var>5.26</var>An employer shall promptly file with the division receipts for payment of <br/>
<a id="pl.5.27"></a><var>5.27</var>compensation as may be required by the rules of the division.<br/>
<a id="pl.5.28"></a><var>5.28</var>The commissioner of the Department of Labor and Industry shall periodically check <br/>
<a id="pl.5.29"></a><var>5.29</var>its records to determine whether these receipts have been promptly filed, and if not, <br/>
<a id="pl.5.30"></a><var>5.30</var>shall require the employer to do so. The commissioner may determine, using statistical <br/>
<a id="pl.5.31"></a><var>5.31</var>methodology similar to Six Sigma, the most efficient manner of reviewing or auditing <br/>
<a id="pl.5.32"></a><var>5.32</var>the records filed under this chapter, including using sampling methodology, to determine <br/>
<a id="pl.5.33"></a><var>5.33</var>compliance with this chapter.<br/>
<a id="pl.5.34"></a><var>5.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.6.1"></a><var>6.1</var>    Sec. 7. Minnesota Statutes 2012, section 176.521, is amended to read:<br/>
<a id="pl.6.2"></a><var>6.2</var><b>176.521 SETTLEMENT OF CLAIMS.</b><br/>
<a id="pl.6.3"></a><var>6.3</var>    Subdivision 1. <b>Validity.</b> (a) An agreement between an employee or an employee's <br/>
<a id="pl.6.4"></a><var>6.4</var>dependent and the employer or insurer to settle any claim, which is not upon appeal before <br/>
<a id="pl.6.5"></a><var>6.5</var>the court of appeals, for compensation under this chapter is valid where it has been executed <br/>
<a id="pl.6.6"></a><var>6.6</var>in writing and signed by the parties and intervenors in the matter, and, where one or more <br/>
<a id="pl.6.7"></a><var>6.7</var>of the parties is not represented by an attorney, the commissioner or a compensation judge <br/>
<a id="pl.6.8"></a><var>6.8</var>has approved the settlement and made an award thereon. If the matter is upon appeal before <br/>
<a id="pl.6.9"></a><var>6.9</var>the Court of Appeals or district court, the court of appeals or district court is the approving <br/>
<a id="pl.6.10"></a><var>6.10</var>body. An agreement to settle any claim is not valid if a guardian or conservator is required <br/>
<a id="pl.6.11"></a><var>6.11</var>under section 
         <statute_ref>176.092</statute_ref> and an employee or dependent has no guardian or conservator.<br/>
<a id="pl.6.12"></a><var>6.12</var>(b) If the matter is on appeal before the workers' compensation court of appeals, the <br/>
<a id="pl.6.13"></a><var>6.13</var>proposed settlement shall be submitted for approval to a compensation judge at the Office <br/>
<a id="pl.6.14"></a><var>6.14</var>of Administrative Hearings. Before the settlement is submitted to the compensation judge, <br/>
<a id="pl.6.15"></a><var>6.15</var>the parties shall notify the workers' compensation court of appeals and request that it <br/>
<a id="pl.6.16"></a><var>6.16</var>suspend further action on the appeal pending review of the settlement by the compensation <br/>
<a id="pl.6.17"></a><var>6.17</var>judge. Within 14 days after the compensation judge's final approval or disapproval of the <br/>
<a id="pl.6.18"></a><var>6.18</var>settlement, the parties shall notify the workers' compensation court of appeals of the <br/>
<a id="pl.6.19"></a><var>6.19</var>compensation judge's action and shall request that the appeal be dismissed or reactivated.<br/>
<a id="pl.6.20"></a><var>6.20</var>    Subd. 2. <b>Approval.</b> Settlements shall be approved only if the terms conform with <br/>
<a id="pl.6.21"></a><var>6.21</var>this chapter.<br/>
<a id="pl.6.22"></a><var>6.22</var>The commissioner, a compensation judge, the court of appeals, and the district court <br/>
<a id="pl.6.23"></a><var>6.23</var>shall exercise discretion in approving or disapproving a proposed settlement.<br/>
<a id="pl.6.24"></a><var>6.24</var>The parties to the agreement of settlement have the burden of proving that the <br/>
<a id="pl.6.25"></a><var>6.25</var>settlement is reasonable, fair, and in conformity with this chapter. A settlement agreement <br/>
<a id="pl.6.26"></a><var>6.26</var>where both the employee or the employee's dependent and the employer or insurer are <br/>
<a id="pl.6.27"></a><var>6.27</var>represented by an attorney shall be conclusively presumed to be reasonable, fair, and in <br/>
<a id="pl.6.28"></a><var>6.28</var>conformity with this chapter except when the settlement purports to be a full, final, and <br/>
<a id="pl.6.29"></a><var>6.29</var>complete settlement of an employee's right to medical compensation under this chapter <br/>
<a id="pl.6.30"></a><var>6.30</var>or rehabilitation under section 
         <statute_ref>176.102</statute_ref>. A settlement which purports to do so must be <br/>
<a id="pl.6.31"></a><var>6.31</var>approved by the commissioner, or a compensation judge, or court of appeals.<br/>
<a id="pl.6.32"></a><var>6.32</var>The conclusive presumption in this subdivision is not available in cases involving <br/>
<a id="pl.6.33"></a><var>6.33</var>an employee or dependent with a guardian or conservator.<br/>
<a id="pl.6.34"></a><var>6.34</var>The conclusive presumption in this subdivision applies to a settlement agreement <br/>
<a id="pl.6.35"></a><var>6.35</var>entered into on or after January 15, 1982, whether the injury to which the settlement <br/>
<a id="pl.6.36"></a><var>6.36</var>applies occurred prior to or on or after January 15, 1982.<br/>
<a id="pl.7.1"></a><var>7.1</var>    Subd. 2a. <b>Settlements not subject to approval.</b> When a settled case is not <br/>
<a id="pl.7.2"></a><var>7.2</var>subject to approval, upon receipt of the stipulation for settlement, the commissioner, or<br/>
<a id="pl.7.3"></a><var>7.3</var> a compensation judge, or the court of appeals shall immediately sign the award and file <br/>
<a id="pl.7.4"></a><var>7.4</var>it with the commissioner. Payment pursuant to the award shall be made within 14 days <br/>
<a id="pl.7.5"></a><var>7.5</var>after it is filed with the commissioner. The commissioner may correct mathematical or <br/>
<a id="pl.7.6"></a><var>7.6</var>clerical errors at any time.<br/>
<a id="pl.7.7"></a><var>7.7</var>    Subd. 3. <b>Setting aside award upon settlement.</b> Notwithstanding the provisions of <br/>
<a id="pl.7.8"></a><var>7.8</var>subdivision 1, 2, or 2a, or any provision in the agreement of settlement to the contrary, <br/>
<a id="pl.7.9"></a><var>7.9</var>upon the filing of a petition by any party to the settlement, the workers' compensation <br/>
<a id="pl.7.10"></a><var>7.10</var>court of appeals may set aside an award made upon a settlement, pursuant to this chapter. <br/>
<a id="pl.7.11"></a><var>7.11</var>In appropriate cases, the workers' compensation court of appeals may refer the matter to <br/>
<a id="pl.7.12"></a><var>7.12</var>the chief administrative law judge for assignment to a compensation judge for hearing.<br/>
<a id="pl.7.13"></a><var>7.13</var><b>EFFECTIVE DATE.</b>This section is effective for settlement agreements submitted <br/>
<a id="pl.7.14"></a><var>7.14</var>for approval on or after July 1, 2013.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.7.17"></a><var>7.17</var>    Section 1. Minnesota Statutes 2012, section 176.011, subdivision 15, is amended to read:<br/>
<a id="pl.7.18"></a><var>7.18</var>    Subd. 15. <b>Occupational disease.</b> (a) "Occupational disease" means a mental <br/>
<a id="pl.7.19"></a><var>7.19</var>impairment as defined in paragraph (d) or physical disease arising out of and in the <br/>
<a id="pl.7.20"></a><var>7.20</var>course of employment peculiar to the occupation in which the employee is engaged <br/>
<a id="pl.7.21"></a><var>7.21</var>and due to causes in excess of the hazards ordinary of employment and shall include <br/>
<a id="pl.7.22"></a><var>7.22</var>undulant fever. Physical stimulus resulting in mental injury and mental stimulus resulting <br/>
<a id="pl.7.23"></a><var>7.23</var>in physical injury shall remain compensable. Mental impairment is not considered a <br/>
<a id="pl.7.24"></a><var>7.24</var>disease if it results from a disciplinary action, work evaluation, job transfer, layoff, <br/>
<a id="pl.7.25"></a><var>7.25</var>demotion, promotion, termination, retirement, or similar action taken in good faith by the <br/>
<a id="pl.7.26"></a><var>7.26</var>employer. Ordinary diseases of life to which the general public is equally exposed outside <br/>
<a id="pl.7.27"></a><var>7.27</var>of employment are not compensable, except where the diseases follow as an incident of an <br/>
<a id="pl.7.28"></a><var>7.28</var>occupational disease, or where the exposure peculiar to the occupation makes the disease <br/>
<a id="pl.7.29"></a><var>7.29</var>an occupational disease hazard. A disease arises out of the employment only if there be a <br/>
<a id="pl.7.30"></a><var>7.30</var>direct causal connection between the conditions under which the work is performed and <br/>
<a id="pl.7.31"></a><var>7.31</var>if the occupational disease follows as a natural incident of the work as a result of the <br/>
<a id="pl.7.32"></a><var>7.32</var>exposure occasioned by the nature of the employment. An employer is not liable for <br/>
<a id="pl.7.33"></a><var>7.33</var>compensation for any occupational disease which cannot be traced to the employment as a <br/>
<a id="pl.7.34"></a><var>7.34</var>direct and proximate cause and is not recognized as a hazard characteristic of and peculiar <br/>
<a id="pl.8.1"></a><var>8.1</var>to the trade, occupation, process, or employment or which results from a hazard to which <br/>
<a id="pl.8.2"></a><var>8.2</var>the worker would have been equally exposed outside of the employment.<br/>
<a id="pl.8.3"></a><var>8.3</var>(b) If immediately preceding the date of disablement or death, an employee was <br/>
<a id="pl.8.4"></a><var>8.4</var>employed on active duty with an organized fire or police department of any municipality, <br/>
<a id="pl.8.5"></a><var>8.5</var>as a member of the Minnesota State Patrol, conservation officer service, state crime bureau, <br/>
<a id="pl.8.6"></a><var>8.6</var>as a forest officer by the Department of Natural Resources, state correctional officer, or <br/>
<a id="pl.8.7"></a><var>8.7</var>sheriff or full-time deputy sheriff of any county, and the disease is that of myocarditis, <br/>
<a id="pl.8.8"></a><var>8.8</var>coronary sclerosis, pneumonia or its sequel, and at the time of employment such employee <br/>
<a id="pl.8.9"></a><var>8.9</var>was given a thorough physical examination by a licensed doctor of medicine, and a written <br/>
<a id="pl.8.10"></a><var>8.10</var>report thereof has been made and filed with such organized fire or police department, with <br/>
<a id="pl.8.11"></a><var>8.11</var>the Minnesota State Patrol, conservation officer service, state crime bureau, Department <br/>
<a id="pl.8.12"></a><var>8.12</var>of Natural Resources, Department of Corrections, or sheriff's department of any county, <br/>
<a id="pl.8.13"></a><var>8.13</var>which examination and report negatived any evidence of myocarditis, coronary sclerosis, <br/>
<a id="pl.8.14"></a><var>8.14</var>pneumonia or its sequel, the disease is presumptively an occupational disease and shall <br/>
<a id="pl.8.15"></a><var>8.15</var>be presumed to have been due to the nature of employment. If immediately preceding <br/>
<a id="pl.8.16"></a><var>8.16</var>the date of disablement or death, any individual who by nature of their position provides <br/>
<a id="pl.8.17"></a><var>8.17</var>emergency medical care, or an employee who was employed as a licensed police officer <br/>
<a id="pl.8.18"></a><var>8.18</var>under section 
         <statute_ref>626.84, subdivision 1</statute_ref>; firefighter; paramedic; state correctional officer; <br/>
<a id="pl.8.19"></a><var>8.19</var>emergency medical technician; or licensed nurse providing emergency medical care; and <br/>
<a id="pl.8.20"></a><var>8.20</var>who contracts an infectious or communicable disease to which the employee was exposed <br/>
<a id="pl.8.21"></a><var>8.21</var>in the course of employment outside of a hospital, then the disease is presumptively an <br/>
<a id="pl.8.22"></a><var>8.22</var>occupational disease and shall be presumed to have been due to the nature of employment <br/>
<a id="pl.8.23"></a><var>8.23</var>and the presumption may be rebutted by substantial factors brought by the employer <br/>
<a id="pl.8.24"></a><var>8.24</var>or insurer. Any substantial factors which shall be used to rebut this presumption and <br/>
<a id="pl.8.25"></a><var>8.25</var>which are known to the employer or insurer at the time of the denial of liability shall be <br/>
<a id="pl.8.26"></a><var>8.26</var>communicated to the employee on the denial of liability.<br/>
<a id="pl.8.27"></a><var>8.27</var>(c) A firefighter on active duty with an organized fire department who is unable <br/>
<a id="pl.8.28"></a><var>8.28</var>to perform duties in the department by reason of a disabling cancer of a type caused <br/>
<a id="pl.8.29"></a><var>8.29</var>by exposure to heat, radiation, or a known or suspected carcinogen, as defined by the <br/>
<a id="pl.8.30"></a><var>8.30</var>International Agency for Research on Cancer, and the carcinogen is reasonably linked to <br/>
<a id="pl.8.31"></a><var>8.31</var>the disabling cancer, is presumed to have an occupational disease under paragraph (a). If a <br/>
<a id="pl.8.32"></a><var>8.32</var>firefighter who enters the service after August 1, 1988, is examined by a physician prior to <br/>
<a id="pl.8.33"></a><var>8.33</var>being hired and the examination discloses the existence of a cancer of a type described <br/>
<a id="pl.8.34"></a><var>8.34</var>in this paragraph, the firefighter is not entitled to the presumption unless a subsequent <br/>
<a id="pl.8.35"></a><var>8.35</var>medical determination is made that the firefighter no longer has the cancer.<br/>
<a id="pl.9.1"></a><var>9.1</var>(d) For the purposes of this chapter, "mental impairment" means a diagnosis of <br/>
<a id="pl.9.2"></a><var>9.2</var>post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purpose <br/>
<a id="pl.9.3"></a><var>9.3</var>of this chapter, "post-traumatic stress disorder" means the condition as described in <br/>
<a id="pl.9.4"></a><var>9.4</var>the most recently published edition of the Diagnostic and Statistical Manual of Mental <br/>
<a id="pl.9.5"></a><var>9.5</var>Disorders by the American Psychiatric Association.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.9.6"></a><var>9.6</var>    Sec. 2. Minnesota Statutes 2012, section 176.011, subdivision 16, is amended to read:<br/>
<a id="pl.9.7"></a><var>9.7</var>    Subd. 16. <b>Personal injury.</b> "Personal injury" means any mental impairment as <br/>
<a id="pl.9.8"></a><var>9.8</var>defined in subdivision 15, paragraph (d), or physical injury arising out of and in the course <br/>
<a id="pl.9.9"></a><var>9.9</var>of employment and includes personal injury caused by occupational disease; but does <br/>
<a id="pl.9.10"></a><var>9.10</var>not cover an employee except while engaged in, on, or about the premises where the <br/>
<a id="pl.9.11"></a><var>9.11</var>employee's services require the employee's presence as a part of that service at the time of <br/>
<a id="pl.9.12"></a><var>9.12</var>the injury and during the hours of that service. Where the employer regularly furnished <br/>
<a id="pl.9.13"></a><var>9.13</var>transportation to employees to and from the place of employment, those employees are <br/>
<a id="pl.9.14"></a><var>9.14</var>subject to this chapter while being so transported. Physical stimulus resulting in mental <br/>
<a id="pl.9.15"></a><var>9.15</var>injury and mental stimulus resulting in physical injury shall remain compensable. Mental <br/>
<a id="pl.9.16"></a><var>9.16</var>impairment is not considered a personal injury if it results from a disciplinary action, work <br/>
<a id="pl.9.17"></a><var>9.17</var>evaluation, job transfer, layoff, demotion, promotion, termination, retirement, or similar <br/>
<a id="pl.9.18"></a><var>9.18</var>action taken in good faith by the employer. Personal injury does not include an injury <br/>
<a id="pl.9.19"></a><var>9.19</var>caused by the act of a third person or fellow employee intended to injure the employee <br/>
<a id="pl.9.20"></a><var>9.20</var>because of personal reasons, and not directed against the employee as an employee, or <br/>
<a id="pl.9.21"></a><var>9.21</var>because of the employment. An injury or disease resulting from a vaccine in response <br/>
<a id="pl.9.22"></a><var>9.22</var>to a declaration by the Secretary of the United States Department of Health and Human <br/>
<a id="pl.9.23"></a><var>9.23</var>Services under the Public Health Service Act to address an actual or potential health <br/>
<a id="pl.9.24"></a><var>9.24</var>risk related to the employee's employment is an injury or disease arising out of and in <br/>
<a id="pl.9.25"></a><var>9.25</var>the course of employment.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.9.26"></a><var>9.26</var>    Sec. 3. Minnesota Statutes 2012, section 176.081, subdivision 1, is amended to read:<br/>
<a id="pl.9.27"></a><var>9.27</var>    Subdivision 1. <b>Limitation of fees.</b> (a) A fee for legal services of 25 20 percent of <br/>
<a id="pl.9.28"></a><var>9.28</var>the first $4,000 of compensation awarded to the employee and 20 percent of the next <br/>
<a id="pl.9.29"></a><var>9.29</var>$60,000 $130,000 of compensation awarded to the employee is the maximum permissible <br/>
<a id="pl.9.30"></a><var>9.30</var>fee and does not require approval by the commissioner, compensation judge, or any other <br/>
<a id="pl.9.31"></a><var>9.31</var>party. All fees, including fees for obtaining medical or rehabilitation benefits, must be <br/>
<a id="pl.9.32"></a><var>9.32</var>calculated according to the formula under this subdivision, except as otherwise provided <br/>
<a id="pl.9.33"></a><var>9.33</var>in clause (1) or (2).<br/>
<a id="pl.10.1"></a><var>10.1</var>(1) The contingent attorney fee for recovery of monetary benefits according to the <br/>
<a id="pl.10.2"></a><var>10.2</var>formula in this section is presumed to be adequate to cover recovery of medical and <br/>
<a id="pl.10.3"></a><var>10.3</var>rehabilitation benefit or services concurrently in dispute. Attorney fees for recovery of <br/>
<a id="pl.10.4"></a><var>10.4</var>medical or rehabilitation benefits or services shall be assessed against the employer or <br/>
<a id="pl.10.5"></a><var>10.5</var>insurer only if the attorney establishes that the contingent fee is inadequate to reasonably <br/>
<a id="pl.10.6"></a><var>10.6</var>compensate the attorney for representing the employee in the medical or rehabilitation <br/>
<a id="pl.10.7"></a><var>10.7</var>dispute. In cases where the contingent fee is inadequate the employer or insurer is liable <br/>
<a id="pl.10.8"></a><var>10.8</var>for attorney fees based on the formula in this subdivision or in clause (2).<br/>
<a id="pl.10.9"></a><var>10.9</var>    For the purposes of applying the formula where the employer or insurer is liable for <br/>
<a id="pl.10.10"></a><var>10.10</var>attorney fees, the amount of compensation awarded for obtaining disputed medical and <br/>
<a id="pl.10.11"></a><var>10.11</var>rehabilitation benefits under sections 
         <statute_ref>176.102</statute_ref>, 
         <statute_ref>176.135</statute_ref>, and 
         <statute_ref>176.136</statute_ref> shall be the dollar <br/>
<a id="pl.10.12"></a><var>10.12</var>value of the medical or rehabilitation benefit awarded, where ascertainable.<br/>
<a id="pl.10.13"></a><var>10.13</var>(2) The maximum attorney fee for obtaining a change of doctor or qualified <br/>
<a id="pl.10.14"></a><var>10.14</var>rehabilitation consultant, or any other disputed medical or rehabilitation benefit for which <br/>
<a id="pl.10.15"></a><var>10.15</var>a dollar value is not reasonably ascertainable, is the amount charged in hourly fees for the <br/>
<a id="pl.10.16"></a><var>10.16</var>representation or $500, whichever is less, to be paid by the employer or insurer.<br/>
<a id="pl.10.17"></a><var>10.17</var>(3) The fees for obtaining disputed medical or rehabilitation benefits are included <br/>
<a id="pl.10.18"></a><var>10.18</var>in the $13,000 $26,000 limit in paragraph (b). An attorney must concurrently file all <br/>
<a id="pl.10.19"></a><var>10.19</var>outstanding disputed issues. An attorney is not entitled to attorney fees for representation <br/>
<a id="pl.10.20"></a><var>10.20</var>in any issue which could reasonably have been addressed during the pendency of other <br/>
<a id="pl.10.21"></a><var>10.21</var>issues for the same injury.<br/>
<a id="pl.10.22"></a><var>10.22</var>(b) All fees for legal services related to the same injury are cumulative and may <br/>
<a id="pl.10.23"></a><var>10.23</var>not exceed $13,000 $26,000. If multiple injuries are the subject of a dispute, the <br/>
<a id="pl.10.24"></a><var>10.24</var>commissioner, compensation judge, or court of appeals shall specify the attorney fee <br/>
<a id="pl.10.25"></a><var>10.25</var>attributable to each injury.<br/>
<a id="pl.10.26"></a><var>10.26</var>(c) If the employer or the insurer or the defendant is given written notice of claims <br/>
<a id="pl.10.27"></a><var>10.27</var>for legal services or disbursements, the claim shall be a lien against the amount paid or <br/>
<a id="pl.10.28"></a><var>10.28</var>payable as compensation. Subject to the foregoing maximum amount for attorney fees, up <br/>
<a id="pl.10.29"></a><var>10.29</var>to 25 20 percent of the first $4,000 $130,000 of periodic compensation awarded to the <br/>
<a id="pl.10.30"></a><var>10.30</var>employee and 20 percent of the next $60,000 of periodic compensation awarded to the <br/>
<a id="pl.10.31"></a><var>10.31</var>employee may be withheld from the periodic payments for attorney fees or disbursements <br/>
<a id="pl.10.32"></a><var>10.32</var>if the payor of the funds clearly indicates on the check or draft issued to the employee for <br/>
<a id="pl.10.33"></a><var>10.33</var>payment the purpose of the withholding, the name of the attorney, the amount withheld, <br/>
<a id="pl.10.34"></a><var>10.34</var>and the gross amount of the compensation payment before withholding. In no case <br/>
<a id="pl.10.35"></a><var>10.35</var>shall fees be calculated on the basis of any undisputed portion of compensation awards. <br/>
<a id="pl.10.36"></a><var>10.36</var>Allowable fees under this chapter shall be based solely upon genuinely disputed claims or <br/>
<a id="pl.11.1"></a><var>11.1</var>portions of claims, including disputes related to the payment of rehabilitation benefits or <br/>
<a id="pl.11.2"></a><var>11.2</var>to other aspects of a rehabilitation plan. The existence of a dispute is dependent upon a <br/>
<a id="pl.11.3"></a><var>11.3</var>disagreement after the employer or insurer has had adequate time and information to take <br/>
<a id="pl.11.4"></a><var>11.4</var>a position on liability. Neither the holding of a hearing nor the filing of an application for a <br/>
<a id="pl.11.5"></a><var>11.5</var>hearing alone may determine the existence of a dispute. Except where the employee is <br/>
<a id="pl.11.6"></a><var>11.6</var>represented by an attorney in other litigation pending at the department or at the Office <br/>
<a id="pl.11.7"></a><var>11.7</var>of Administrative Hearings, a fee may not be charged after June 1, 1996, for services <br/>
<a id="pl.11.8"></a><var>11.8</var>with respect to a medical or rehabilitation issue arising under section 
         <statute_ref>176.102</statute_ref>, 
         <statute_ref>176.135</statute_ref>, <br/>
<a id="pl.11.9"></a><var>11.9</var>or 
         <statute_ref>176.136</statute_ref> performed before the employee has consulted with the department and the <br/>
<a id="pl.11.10"></a><var>11.10</var>department certifies that there is a dispute and that it has tried to resolve the dispute.<br/>
<a id="pl.11.11"></a><var>11.11</var>(d) An attorney who is claiming legal fees for representing an employee in a workers' <br/>
<a id="pl.11.12"></a><var>11.12</var>compensation matter shall file a statement of attorney fees with the commissioner, <br/>
<a id="pl.11.13"></a><var>11.13</var>compensation judge before whom the matter was heard, or Workers' Compensation Court <br/>
<a id="pl.11.14"></a><var>11.14</var>of Appeals on cases before the court. A copy of the signed retainer agreement shall also <br/>
<a id="pl.11.15"></a><var>11.15</var>be filed. The employee and insurer shall receive a copy of the statement. The statement <br/>
<a id="pl.11.16"></a><var>11.16</var>shall be on a form prescribed by the commissioner and shall report the number of hours <br/>
<a id="pl.11.17"></a><var>11.17</var>spent on the case.<br/>
<a id="pl.11.18"></a><var>11.18</var>(e) Employers and insurers may not pay attorney fees or wages for legal services <br/>
<a id="pl.11.19"></a><var>11.19</var>of more than $13,000 $26,000 per case.<br/>
<a id="pl.11.20"></a><var>11.20</var>(f) An attorney must file a statement of attorney fees within 12 months of the date <br/>
<a id="pl.11.21"></a><var>11.21</var>the attorney has submitted the written notice specified in paragraph (c). If the attorney <br/>
<a id="pl.11.22"></a><var>11.22</var>has not filed a statement of attorney fees within the 12 months, the attorney must send a <br/>
<a id="pl.11.23"></a><var>11.23</var>renewed notice of lien to the insurer. If 12 months have elapsed since the last notice of <br/>
<a id="pl.11.24"></a><var>11.24</var>lien has been received by the insurer and no statement of attorney fees has been filed, the <br/>
<a id="pl.11.25"></a><var>11.25</var>insurer must release the withheld money to the employee, except that before releasing the <br/>
<a id="pl.11.26"></a><var>11.26</var>money to the employee, the insurer must give the attorney 30 days' written notice of the <br/>
<a id="pl.11.27"></a><var>11.27</var>pending release. The insurer must not release the money if the attorney files a statement of <br/>
<a id="pl.11.28"></a><var>11.28</var>attorney fees within the 30 days.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.11.29"></a><var>11.29</var>    Sec. 4. Minnesota Statutes 2012, section 176.081, subdivision 7, is amended to read:<br/>
<a id="pl.11.30"></a><var>11.30</var>    Subd. 7. <b>Award; additional amount.</b> If the employer or insurer files a denial of <br/>
<a id="pl.11.31"></a><var>11.31</var>liability, notice of discontinuance, or fails to make payment of compensation or medical <br/>
<a id="pl.11.32"></a><var>11.32</var>expenses within the statutory period after notice of injury or occupational disease, or <br/>
<a id="pl.11.33"></a><var>11.33</var>otherwise unsuccessfully resists the payment of compensation or medical expenses, <br/>
<a id="pl.11.34"></a><var>11.34</var>or unsuccessfully disputes the payment of rehabilitation benefits or other aspects of <br/>
<a id="pl.11.35"></a><var>11.35</var>a rehabilitation plan, and the injured person has employed an attorney at law, who <br/>
<a id="pl.12.1"></a><var>12.1</var>successfully procures payment on behalf of the employee or who enables the resolution of <br/>
<a id="pl.12.2"></a><var>12.2</var>a dispute with respect to a rehabilitation plan, the compensation judge, commissioner, or <br/>
<a id="pl.12.3"></a><var>12.3</var>the Workers' Compensation Court of Appeals upon appeal, upon application, shall award <br/>
<a id="pl.12.4"></a><var>12.4</var>to the employee against the insurer or self-insured employer or uninsured employer, in <br/>
<a id="pl.12.5"></a><var>12.5</var>addition to the compensation benefits paid or awarded to the employee, an amount equal <br/>
<a id="pl.12.6"></a><var>12.6</var>to 30 percent of that portion of the attorney's fee which has been awarded pursuant to this <br/>
<a id="pl.12.7"></a><var>12.7</var>section that is in excess of $250. This subdivision shall apply only to contingent fees <br/>
<a id="pl.12.8"></a><var>12.8</var>payable from the employee's compensation benefits, and not to other fees paid by the <br/>
<a id="pl.12.9"></a><var>12.9</var>employer and insurer, including but not limited to those fees payable for resolution of a <br/>
<a id="pl.12.10"></a><var>12.10</var>medical dispute or rehabilitation dispute, or pursuant to section 176.191.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.12.11"></a><var>12.11</var>    Sec. 5. Minnesota Statutes 2012, section 176.101, subdivision 1, is amended to read:<br/>
<a id="pl.12.12"></a><var>12.12</var>    Subdivision 1. <b>Temporary total disability.</b> (a) For injury producing temporary total <br/>
<a id="pl.12.13"></a><var>12.13</var>disability, the compensation is 66-2/3 percent of the weekly wage at the time of injury.<br/>
<a id="pl.12.14"></a><var>12.14</var>(b)(1) Commencing on October 1, 2008 2013, and each October 1 thereafter, the <br/>
<a id="pl.12.15"></a><var>12.15</var>maximum weekly compensation payable is $850 per week 102 percent of the statewide <br/>
<a id="pl.12.16"></a><var>12.16</var>average weekly wage for the period ending December 31 of the preceding year.<br/>
<a id="pl.12.17"></a><var>12.17</var>(2) The Workers' Compensation Advisory Council may consider adjustment <br/>
<a id="pl.12.18"></a><var>12.18</var>increases and make recommendations to the legislature.<br/>
<a id="pl.12.19"></a><var>12.19</var>(c) The minimum weekly compensation payable is $130 per week or the injured <br/>
<a id="pl.12.20"></a><var>12.20</var>employee's actual weekly wage, whichever is less.<br/>
<a id="pl.12.21"></a><var>12.21</var>(d) Temporary total compensation shall be paid during the period of disability <br/>
<a id="pl.12.22"></a><var>12.22</var>subject to the cessation and recommencement conditions in paragraphs (e) to (l).<br/>
<a id="pl.12.23"></a><var>12.23</var>(e) Temporary total disability compensation shall cease when the employee returns <br/>
<a id="pl.12.24"></a><var>12.24</var>to work. Except as otherwise provided in section 
         <statute_ref>176.102, subdivision 11</statute_ref>, temporary <br/>
<a id="pl.12.25"></a><var>12.25</var>total disability compensation may only be recommenced following cessation under this <br/>
<a id="pl.12.26"></a><var>12.26</var>paragraph, paragraph (h), or paragraph (j) prior to payment of 130 weeks of temporary <br/>
<a id="pl.12.27"></a><var>12.27</var>total disability compensation and only as follows:<br/>
<a id="pl.12.28"></a><var>12.28</var>(1) if temporary total disability compensation ceased because the employee returned <br/>
<a id="pl.12.29"></a><var>12.29</var>to work, it may be recommenced if the employee is laid off or terminated for reasons other <br/>
<a id="pl.12.30"></a><var>12.30</var>than misconduct if the layoff or termination occurs prior to 90 days after the employee <br/>
<a id="pl.12.31"></a><var>12.31</var>has reached maximum medical improvement. Recommenced temporary total disability <br/>
<a id="pl.12.32"></a><var>12.32</var>compensation under this clause ceases when any of the cessation events in paragraphs <br/>
<a id="pl.12.33"></a><var>12.33</var>(e) to (l) occurs; or<br/>
<a id="pl.12.34"></a><var>12.34</var>(2) if temporary total disability compensation ceased because the employee returned <br/>
<a id="pl.12.35"></a><var>12.35</var>to work or ceased under paragraph (h) or (j), it may be recommenced if the employee is <br/>
<a id="pl.13.1"></a><var>13.1</var>medically unable to continue at a job due to the injury. Where the employee is medically <br/>
<a id="pl.13.2"></a><var>13.2</var>unable to continue working due to the injury, temporary total disability compensation <br/>
<a id="pl.13.3"></a><var>13.3</var>may continue until any of the cessation events in paragraphs (e) to (l) occurs following <br/>
<a id="pl.13.4"></a><var>13.4</var>recommencement. If an employee who has not yet received temporary total disability <br/>
<a id="pl.13.5"></a><var>13.5</var>compensation becomes medically unable to continue working due to the injury after <br/>
<a id="pl.13.6"></a><var>13.6</var>reaching maximum medical improvement, temporary total disability compensation shall <br/>
<a id="pl.13.7"></a><var>13.7</var>commence and shall continue until any of the events in paragraphs (e) to (l) occurs <br/>
<a id="pl.13.8"></a><var>13.8</var>following commencement. For purposes of commencement or recommencement under <br/>
<a id="pl.13.9"></a><var>13.9</var>this clause only, a new period of maximum medical improvement under paragraph <br/>
<a id="pl.13.10"></a><var>13.10</var>(j) begins when the employee becomes medically unable to continue working due to <br/>
<a id="pl.13.11"></a><var>13.11</var>the injury. Temporary total disability compensation may not be recommenced under <br/>
<a id="pl.13.12"></a><var>13.12</var>this clause and a new period of maximum medical improvement does not begin if the <br/>
<a id="pl.13.13"></a><var>13.13</var>employee is not actively employed when the employee becomes medically unable to <br/>
<a id="pl.13.14"></a><var>13.14</var>work. All periods of initial and recommenced temporary total disability compensation are <br/>
<a id="pl.13.15"></a><var>13.15</var>included in the 130-week limitation specified in paragraph (k).<br/>
<a id="pl.13.16"></a><var>13.16</var>(f) Temporary total disability compensation shall cease if the employee withdraws <br/>
<a id="pl.13.17"></a><var>13.17</var>from the labor market. Temporary total disability compensation may be recommenced <br/>
<a id="pl.13.18"></a><var>13.18</var>following cessation under this paragraph only if the employee reenters the labor market <br/>
<a id="pl.13.19"></a><var>13.19</var>prior to 90 days after the employee reached maximum medical improvement and prior to <br/>
<a id="pl.13.20"></a><var>13.20</var>payment of 130 weeks of temporary total disability compensation. Once recommenced, <br/>
<a id="pl.13.21"></a><var>13.21</var>temporary total disability ceases when any of the cessation events in paragraphs (e) to <br/>
<a id="pl.13.22"></a><var>13.22</var>(l) occurs.<br/>
<a id="pl.13.23"></a><var>13.23</var>(g) Temporary total disability compensation shall cease if the total disability ends <br/>
<a id="pl.13.24"></a><var>13.24</var>and the employee fails to diligently search for appropriate work within the employee's <br/>
<a id="pl.13.25"></a><var>13.25</var>physical restrictions. Temporary total disability compensation may be recommenced <br/>
<a id="pl.13.26"></a><var>13.26</var>following cessation under this paragraph only if the employee begins diligently searching <br/>
<a id="pl.13.27"></a><var>13.27</var>for appropriate work within the employee's physical restrictions prior to 90 days after <br/>
<a id="pl.13.28"></a><var>13.28</var>maximum medical improvement and prior to payment of 130 weeks of temporary total <br/>
<a id="pl.13.29"></a><var>13.29</var>disability compensation. Once recommenced, temporary total disability compensation <br/>
<a id="pl.13.30"></a><var>13.30</var>ceases when any of the cessation events in paragraphs (e) to (l) occurs.<br/>
<a id="pl.13.31"></a><var>13.31</var>(h) Temporary total disability compensation shall cease if the employee has been <br/>
<a id="pl.13.32"></a><var>13.32</var>released to work without any physical restrictions caused by the work injury.<br/>
<a id="pl.13.33"></a><var>13.33</var>(i) Temporary total disability compensation shall cease if the employee refuses an <br/>
<a id="pl.13.34"></a><var>13.34</var>offer of work that is consistent with a plan of rehabilitation filed with the commissioner <br/>
<a id="pl.13.35"></a><var>13.35</var>which meets the requirements of section 
         <statute_ref>176.102, subdivision 4</statute_ref>, or, if no plan has been <br/>
<a id="pl.13.36"></a><var>13.36</var>filed, the employee refuses an offer of gainful employment that the employee can do in the <br/>
<a id="pl.14.1"></a><var>14.1</var>employee's physical condition. Once temporary total disability compensation has ceased <br/>
<a id="pl.14.2"></a><var>14.2</var>under this paragraph, it may not be recommenced.<br/>
<a id="pl.14.3"></a><var>14.3</var>(j) Temporary total disability compensation shall cease 90 days after the employee <br/>
<a id="pl.14.4"></a><var>14.4</var>has reached maximum medical improvement, except as provided in section 
         <statute_ref>176.102, <br/>
<a id="pl.14.5"></a><var>14.5</var>subdivision 11, paragraph (b)
         </statute_ref>. For purposes of this subdivision, the 90-day period after <br/>
<a id="pl.14.6"></a><var>14.6</var>maximum medical improvement commences on the earlier of: (1) the date that the <br/>
<a id="pl.14.7"></a><var>14.7</var>employee receives a written medical report indicating that the employee has reached <br/>
<a id="pl.14.8"></a><var>14.8</var>maximum medical improvement; or (2) the date that the employer or insurer serves the <br/>
<a id="pl.14.9"></a><var>14.9</var>report on the employee and the employee's attorney, if any. Once temporary total disability <br/>
<a id="pl.14.10"></a><var>14.10</var>compensation has ceased under this paragraph, it may not be recommenced except if the <br/>
<a id="pl.14.11"></a><var>14.11</var>employee returns to work and is subsequently medically unable to continue working <br/>
<a id="pl.14.12"></a><var>14.12</var>as provided in paragraph (e), clause (2).<br/>
<a id="pl.14.13"></a><var>14.13</var>(k) Temporary total disability compensation shall cease entirely when 130 weeks <br/>
<a id="pl.14.14"></a><var>14.14</var>of temporary total disability compensation have been paid, except as provided in section <br/>
<statute_ref><a id="pl.14.15"></a><var>14.15</var>176.102, subdivision 11, paragraph (b)
         </statute_ref>. Notwithstanding anything in this section to the <br/>
<a id="pl.14.16"></a><var>14.16</var>contrary, initial and recommenced temporary total disability compensation combined shall <br/>
<a id="pl.14.17"></a><var>14.17</var>not be paid for more than 130 weeks, regardless of the number of weeks that have elapsed <br/>
<a id="pl.14.18"></a><var>14.18</var>since the injury, except that if the employee is in a retraining plan approved under section <br/>
<statute_ref><a id="pl.14.19"></a><var>14.19</var>176.102, subdivision 11
         </statute_ref>, the 130-week limitation shall not apply during the retraining, but <br/>
<a id="pl.14.20"></a><var>14.20</var>is subject to the limitation before the plan begins and after the plan ends.<br/>
<a id="pl.14.21"></a><var>14.21</var>(l) Paragraphs (e) to (k) do not limit other grounds under law to suspend or <br/>
<a id="pl.14.22"></a><var>14.22</var>discontinue temporary total disability compensation provided under this chapter.<br/>
<a id="pl.14.23"></a><var>14.23</var>(m) Once an employee has been paid 52 weeks of temporary total compensation, <br/>
<a id="pl.14.24"></a><var>14.24</var>the employer or insurer must notify the employee in writing of the 130-week limitation <br/>
<a id="pl.14.25"></a><var>14.25</var>on payment of temporary total compensation. A copy of this notice must also be filed <br/>
<a id="pl.14.26"></a><var>14.26</var>with the department.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.14.27"></a><var>14.27</var>    Sec. 6. Minnesota Statutes 2012, section 176.102, subdivision 5, is amended to read:<br/>
<a id="pl.14.28"></a><var>14.28</var>    Subd. 5. <b>On-the-job training</b><b>; job development limitation</b><b>.</b> (a) On-the-job training <br/>
<a id="pl.14.29"></a><var>14.29</var>is to be given consideration in developing a rehabilitation plan especially where it would <br/>
<a id="pl.14.30"></a><var>14.30</var>produce an economic status similar to that enjoyed prior to disability.<br/>
<a id="pl.14.31"></a><var>14.31</var>(b) For purposes of this subdivision, job development means systematic contact with <br/>
<a id="pl.14.32"></a><var>14.32</var>prospective employers resulting in opportunities for interviews and employment that <br/>
<a id="pl.14.33"></a><var>14.33</var>might not otherwise have existed, and includes identification of job leads and arranging <br/>
<a id="pl.14.34"></a><var>14.34</var>for job interviews. Job development facilitates a prospective employer's consideration <br/>
<a id="pl.14.35"></a><var>14.35</var>of a qualified employee for employment. Job development services provided by a <br/>
<a id="pl.15.1"></a><var>15.1</var>qualified rehabilitation consultant firm or a registered rehabilitation vendor must not <br/>
<a id="pl.15.2"></a><var>15.2</var>exceed 20 hours per month or 26 consecutive or intermittent weeks. When 13 consecutive <br/>
<a id="pl.15.3"></a><var>15.3</var>or intermittent weeks of job development services have been provided, the qualified <br/>
<a id="pl.15.4"></a><var>15.4</var>rehabilitation consultant must consult with the parties and either file a plan amendment <br/>
<a id="pl.15.5"></a><var>15.5</var>reflecting an agreement by the parties to extend job development services for up to <br/>
<a id="pl.15.6"></a><var>15.6</var>an additional 13 consecutive or intermittent weeks, or file a request for a rehabilitation <br/>
<a id="pl.15.7"></a><var>15.7</var>conference under section 176.106. The commissioner or compensation judge may issue an <br/>
<a id="pl.15.8"></a><var>15.8</var>order modifying the rehabilitation plan or make other determinations about the employee's <br/>
<a id="pl.15.9"></a><var>15.9</var>rehabilitation, but must not order more than 26 total consecutive or intermittent weeks of <br/>
<a id="pl.15.10"></a><var>15.10</var>job development services.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.15.11"></a><var>15.11</var>    Sec. 7. Minnesota Statutes 2012, section 176.102, subdivision 10, is amended to read:<br/>
<a id="pl.15.12"></a><var>15.12</var>    Subd. 10. <b>Rehabilitation; consultants and vendors.</b> (a) The commissioner shall <br/>
<a id="pl.15.13"></a><var>15.13</var>approve rehabilitation consultants who may propose and implement plans if they satisfy <br/>
<a id="pl.15.14"></a><var>15.14</var>rules adopted by the commissioner for rehabilitation consultants. A consultant may be an <br/>
<a id="pl.15.15"></a><var>15.15</var>individual or public or private entity, and except for rehabilitation services, Department of <br/>
<a id="pl.15.16"></a><var>15.16</var>Employment and Economic Development, a consultant may not be a vendor or the agent <br/>
<a id="pl.15.17"></a><var>15.17</var>of a vendor of rehabilitation services. The commissioner shall also approve rehabilitation <br/>
<a id="pl.15.18"></a><var>15.18</var>vendors if they satisfy rules adopted by the commissioner.<br/>
<a id="pl.15.19"></a><var>15.19</var>(b) An individual qualified rehabilitation consultant registered by the commissioner <br/>
<a id="pl.15.20"></a><var>15.20</var>must not provide any medical, rehabilitation, or disability case management services related <br/>
<a id="pl.15.21"></a><var>15.21</var>to an injury that is compensable under this chapter when these services are part of the same <br/>
<a id="pl.15.22"></a><var>15.22</var>claim, unless the case management services are part of an approved rehabilitation plan. <br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.15.23"></a><var>15.23</var>    Sec. 8. Minnesota Statutes 2012, section 176.106, subdivision 3, is amended to read:<br/>
<a id="pl.15.24"></a><var>15.24</var>    Subd. 3. <b>Conference.</b> The matter shall be scheduled for an administrative <br/>
<a id="pl.15.25"></a><var>15.25</var>conference within 60 days after receipt of the request for a conference, except that an <br/>
<a id="pl.15.26"></a><var>15.26</var>administrative conference on a rehabilitation issue under section 176.102 must be held <br/>
<a id="pl.15.27"></a><var>15.27</var>within 21 days, unless the issue involves only fees for rehabilitation services that have <br/>
<a id="pl.15.28"></a><var>15.28</var>already been provided or there is good cause for holding the conference later than 21 <br/>
<a id="pl.15.29"></a><var>15.29</var>days. If there is a rehabilitation plan in effect, the qualified rehabilitation consultant must <br/>
<a id="pl.15.30"></a><var>15.30</var>continue to provide reasonable services under the plan until the date the conference was <br/>
<a id="pl.15.31"></a><var>15.31</var>initially scheduled to be held. Notice of the conference shall be served on all parties no <br/>
<a id="pl.15.32"></a><var>15.32</var>later than 14 days prior to the conference, unless the commissioner or compensation judge <br/>
<a id="pl.15.33"></a><var>15.33</var>determines that a conference shall not be held. The commissioner or compensation judge <br/>
<a id="pl.16.1"></a><var>16.1</var>may order an administrative conference before the commissioner's designee whether or <br/>
<a id="pl.16.2"></a><var>16.2</var>not a request for conference is filed.<br/>
<a id="pl.16.3"></a><var>16.3</var>The commissioner or compensation judge may refuse to hold an administrative <br/>
<a id="pl.16.4"></a><var>16.4</var>conference and refer the matter for a settlement or pretrial conference or may certify the <br/>
<a id="pl.16.5"></a><var>16.5</var>matter to the Office of Administrative Hearings for a full hearing before a compensation <br/>
<a id="pl.16.6"></a><var>16.6</var>judge.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.16.7"></a><var>16.7</var>    Sec. 9. Minnesota Statutes 2012, section 176.136, subdivision 1b, is amended to read:<br/>
<a id="pl.16.8"></a><var>16.8</var>    Subd. 1b. <b>Limitation of liability.</b> (a) The liability of the employer for treatment, <br/>
<a id="pl.16.9"></a><var>16.9</var>articles, and supplies provided to an employee while an inpatient or outpatient at a small <br/>
<a id="pl.16.10"></a><var>16.10</var>hospital shall be the hospital's usual and customary charge, unless the charge is determined <br/>
<a id="pl.16.11"></a><var>16.11</var>by the commissioner or a compensation judge to be unreasonably excessive. A "small <br/>
<a id="pl.16.12"></a><var>16.12</var>hospital," for purposes of this paragraph, is a hospital which has 100 or fewer licensed beds.<br/>
<a id="pl.16.13"></a><var>16.13</var>(b) The liability of the employer for the treatment, articles, and supplies that are <br/>
<a id="pl.16.14"></a><var>16.14</var>not limited by subdivision 1a or 1c or paragraph (a) shall be limited to 85 percent of <br/>
<a id="pl.16.15"></a><var>16.15</var>the provider's usual and customary charge, or 85 percent of the prevailing charges for <br/>
<a id="pl.16.16"></a><var>16.16</var>similar treatment, articles, and supplies furnished to an injured person when paid for by <br/>
<a id="pl.16.17"></a><var>16.17</var>the injured person, whichever is lower. On this basis, the commissioner or compensation <br/>
<a id="pl.16.18"></a><var>16.18</var>judge may determine the reasonable value of all treatment, services, and supplies, and <br/>
<a id="pl.16.19"></a><var>16.19</var>the liability of the employer is limited to that amount. The commissioner may by rule <br/>
<a id="pl.16.20"></a><var>16.20</var>establish the reasonable value of a service, article, or supply in lieu of the 85 percent <br/>
<a id="pl.16.21"></a><var>16.21</var>limitation in this paragraph. A prevailing charge established under Minnesota Rules, <br/>
<a id="pl.16.22"></a><var>16.22</var>part 5221.0500, subpart 2, must be based on no more than two years of billing data <br/>
<a id="pl.16.23"></a><var>16.23</var>immediately preceding the date of the service.<br/>
<a id="pl.16.24"></a><var>16.24</var>(c) The limitation of liability for charges provided by paragraph (b) does not apply <br/>
<a id="pl.16.25"></a><var>16.25</var>to a nursing home that participates in the medical assistance program and whose rates are <br/>
<a id="pl.16.26"></a><var>16.26</var>established by the commissioner of human services.<br/>
<a id="pl.16.27"></a><var>16.27</var>(d) An employer's liability for treatment, articles, and supplies provided under this <br/>
<a id="pl.16.28"></a><var>16.28</var>chapter by a health care provider located outside of Minnesota is limited to the payment that <br/>
<a id="pl.16.29"></a><var>16.29</var>the health care provider would receive if the treatment, article, or supply were paid under <br/>
<a id="pl.16.30"></a><var>16.30</var>the workers' compensation law of the jurisdiction in which the treatment was provided.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.16.31"></a><var>16.31</var>    Sec. 10. Minnesota Statutes 2012, section 176.645, is amended to read:<br/>
<a id="pl.16.32"></a><var>16.32</var><b>176.645 ADJUSTMENT OF BENEFITS.</b><br/>
<a id="pl.16.33"></a><var>16.33</var>    Subdivision 1. <b>Amount.</b> For injuries occurring after October 1, 1975, for which <br/>
<a id="pl.16.34"></a><var>16.34</var>benefits are payable under section 
         <statute_ref>176.101, subdivisions 1, 2 and 4</statute_ref>, and section 
         <statute_ref>176.111, <br/>
<a id="pl.17.1"></a><var>17.1</var>subdivision 5
         </statute_ref>, the total benefits due the employee or any dependents shall be adjusted in <br/>
<a id="pl.17.2"></a><var>17.2</var>accordance with this section. On October 1, 1981, and thereafter on the anniversary of <br/>
<a id="pl.17.3"></a><var>17.3</var>the date of the employee's injury the total benefits due shall be adjusted by multiplying <br/>
<a id="pl.17.4"></a><var>17.4</var>the total benefits due prior to each adjustment by a fraction, the denominator of which <br/>
<a id="pl.17.5"></a><var>17.5</var>is the statewide average weekly wage for December 31, of the year two years previous <br/>
<a id="pl.17.6"></a><var>17.6</var>to the adjustment and the numerator of which is the statewide average weekly wage for <br/>
<a id="pl.17.7"></a><var>17.7</var>December 31, of the year previous to the adjustment. For injuries occurring after October <br/>
<a id="pl.17.8"></a><var>17.8</var>1, 1975, all adjustments provided for in this section shall be included in computing <br/>
<a id="pl.17.9"></a><var>17.9</var>any benefit due under this section. Any limitations of amounts due for daily or weekly <br/>
<a id="pl.17.10"></a><var>17.10</var>compensation under this chapter shall not apply to adjustments made under this section. <br/>
<a id="pl.17.11"></a><var>17.11</var>No adjustment increase made on or after October 1, 1977, but prior to October 1, <br/>
<a id="pl.17.12"></a><var>17.12</var>1992, under this section shall exceed six percent a year; in those instances where the <br/>
<a id="pl.17.13"></a><var>17.13</var>adjustment under the formula of this section would exceed this maximum, the increase <br/>
<a id="pl.17.14"></a><var>17.14</var>shall be deemed to be six percent. No adjustment increase made on or after October 1, <br/>
<a id="pl.17.15"></a><var>17.15</var>1992, under this section shall exceed four percent a year; in those instances where the <br/>
<a id="pl.17.16"></a><var>17.16</var>adjustment under the formula of this section would exceed this maximum, the increase <br/>
<a id="pl.17.17"></a><var>17.17</var>shall be deemed to be four percent. For injuries occurring on and after October 1, 1995, no <br/>
<a id="pl.17.18"></a><var>17.18</var>adjustment increase made on or after October 1, 1995, shall exceed two percent a year; <br/>
<a id="pl.17.19"></a><var>17.19</var>in those instances where the adjustment under the formula of this section would exceed <br/>
<a id="pl.17.20"></a><var>17.20</var>this maximum, the increase shall be deemed to be two percent. For injuries occurring on <br/>
<a id="pl.17.21"></a><var>17.21</var>and after October 1, 2013, no adjustment increase shall exceed three percent a year. If <br/>
<a id="pl.17.22"></a><var>17.22</var>the adjustment under the formula of this section would exceed three percent, the increase <br/>
<a id="pl.17.23"></a><var>17.23</var>shall be three percent. No adjustment under this section shall be less than zero percent. <br/>
<a id="pl.17.24"></a><var>17.24</var>The Workers' Compensation Advisory Council may consider adjustment or other further <br/>
<a id="pl.17.25"></a><var>17.25</var>increases and make recommendations to the legislature.<br/>
<a id="pl.17.26"></a><var>17.26</var>    Subd. 2. <b>Time of first adjustment.</b> For injuries occurring on or after October 1, <br/>
<a id="pl.17.27"></a><var>17.27</var>1981, the initial adjustment made pursuant to subdivision 1 is deferred until the first <br/>
<a id="pl.17.28"></a><var>17.28</var>anniversary of the date of the injury. For injuries occurring on or after October 1, 1992, <br/>
<a id="pl.17.29"></a><var>17.29</var>the initial adjustment under subdivision 1 is deferred until the second anniversary of the <br/>
<a id="pl.17.30"></a><var>17.30</var>date of the injury. The adjustment made at that time shall be that of the last year only. For <br/>
<a id="pl.17.31"></a><var>17.31</var>injuries occurring on or after October 1, 1995, the initial adjustment under subdivision 1 is <br/>
<a id="pl.17.32"></a><var>17.32</var>deferred until the fourth anniversary of the date of injury. The adjustment at that time shall <br/>
<a id="pl.17.33"></a><var>17.33</var>be that of the last year only. For injuries occurring on or after October 1, 2013, the initial <br/>
<a id="pl.17.34"></a><var>17.34</var>adjustment under subdivision 1 is deferred until the third anniversary of the date of injury. <br/>
<a id="pl.17.35"></a><var>17.35</var>The adjustment made at that time shall be that of the last year only.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.18.1"></a><var>18.1</var>    Sec. 11. Minnesota Statutes 2012, section 176.83, subdivision 5, is amended to read:<br/>
<a id="pl.18.2"></a><var>18.2</var>    Subd. 5. <b>Treatment standards for medical services.</b> (a) In consultation with the <br/>
<a id="pl.18.3"></a><var>18.3</var>Medical Services Review Board or the rehabilitation review panel, the commissioner shall <br/>
<a id="pl.18.4"></a><var>18.4</var>adopt rules establishing standards and procedures for health care provider treatment. The <br/>
<a id="pl.18.5"></a><var>18.5</var>rules shall apply uniformly to all providers including those providing managed care under <br/>
<a id="pl.18.6"></a><var>18.6</var>section 
         <statute_ref>176.1351</statute_ref>. The rules shall be used to determine whether a provider of health <br/>
<a id="pl.18.7"></a><var>18.7</var>care services and rehabilitation services, including a provider of medical, chiropractic, <br/>
<a id="pl.18.8"></a><var>18.8</var>podiatric, surgical, hospital, or other services, is performing procedures or providing <br/>
<a id="pl.18.9"></a><var>18.9</var>services at a level or with a frequency that is excessive, unnecessary, or inappropriate <br/>
<a id="pl.18.10"></a><var>18.10</var>under section 
         <statute_ref>176.135, subdivision 1</statute_ref>, based upon accepted medical standards for quality <br/>
<a id="pl.18.11"></a><var>18.11</var>health care and accepted rehabilitation standards.<br/>
<a id="pl.18.12"></a><var>18.12</var>(b) The rules shall include, but are not limited to, the following:<br/>
<a id="pl.18.13"></a><var>18.13</var>(1) criteria for diagnosis and treatment of the most common work-related injuries <br/>
<a id="pl.18.14"></a><var>18.14</var>including, but not limited to, low back injuries and upper extremity repetitive trauma <br/>
<a id="pl.18.15"></a><var>18.15</var>injuries;<br/>
<a id="pl.18.16"></a><var>18.16</var>(2) criteria for surgical procedures including, but not limited to, diagnosis, prior <br/>
<a id="pl.18.17"></a><var>18.17</var>conservative treatment, supporting diagnostic imaging and testing, and anticipated <br/>
<a id="pl.18.18"></a><var>18.18</var>outcome criteria;<br/>
<a id="pl.18.19"></a><var>18.19</var>(3) criteria for use of appliances, adaptive equipment, and use of health clubs or <br/>
<a id="pl.18.20"></a><var>18.20</var>other exercise facilities;<br/>
<a id="pl.18.21"></a><var>18.21</var>(4) criteria for diagnostic imaging procedures;<br/>
<a id="pl.18.22"></a><var>18.22</var>(5) criteria for inpatient hospitalization; and<br/>
<a id="pl.18.23"></a><var>18.23</var>(6) criteria for treatment of chronic pain; and<br/>
<a id="pl.18.24"></a><var>18.24</var>(7) criteria for the long-term use of opioids or other scheduled medications to <br/>
<a id="pl.18.25"></a><var>18.25</var>alleviate intractable pain and improve function, including the use of written contracts <br/>
<a id="pl.18.26"></a><var>18.26</var>between the injured worker and the health care provider who prescribes the medication.<br/>
<a id="pl.18.27"></a><var>18.27</var>(c) If it is determined by the payer that the level, frequency, or cost of a procedure or <br/>
<a id="pl.18.28"></a><var>18.28</var>service of a provider is excessive, unnecessary, or inappropriate according to the standards <br/>
<a id="pl.18.29"></a><var>18.29</var>established by the rules, the provider shall not be paid for the procedure, service, or cost <br/>
<a id="pl.18.30"></a><var>18.30</var>by an insurer, self-insurer, or group self-insurer, and the provider shall not be reimbursed <br/>
<a id="pl.18.31"></a><var>18.31</var>or attempt to collect reimbursement for the procedure, service, or cost from any other <br/>
<a id="pl.18.32"></a><var>18.32</var>source, including the employee, another insurer, the special compensation fund, or any <br/>
<a id="pl.18.33"></a><var>18.33</var>government program unless the commissioner or compensation judge determines at a <br/>
<a id="pl.18.34"></a><var>18.34</var>hearing or administrative conference that the level, frequency, or cost was not excessive <br/>
<a id="pl.18.35"></a><var>18.35</var>under the rules in which case the insurer, self-insurer, or group self-insurer shall make <br/>
<a id="pl.18.36"></a><var>18.36</var>the payment deemed reasonable.<br/>
<a id="pl.19.1"></a><var>19.1</var>(d) A rehabilitation provider who is determined by the rehabilitation review panel <br/>
<a id="pl.19.2"></a><var>19.2</var>board, after hearing, to be consistently performing procedures or providing services at an <br/>
<a id="pl.19.3"></a><var>19.3</var>excessive level or cost may be prohibited from receiving any further reimbursement for <br/>
<a id="pl.19.4"></a><var>19.4</var>procedures or services provided under this chapter. A prohibition imposed on a provider <br/>
<a id="pl.19.5"></a><var>19.5</var>under this subdivision may be grounds for revocation or suspension of the provider's <br/>
<a id="pl.19.6"></a><var>19.6</var>license or certificate of registration to provide health care or rehabilitation service in <br/>
<a id="pl.19.7"></a><var>19.7</var>Minnesota by the appropriate licensing or certifying body. The commissioner and Medical <br/>
<a id="pl.19.8"></a><var>19.8</var>Services Review Board shall review excessive, inappropriate, or unnecessary health care <br/>
<a id="pl.19.9"></a><var>19.9</var>provider treatment under section 
         <statute_ref>176.103</statute_ref>.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.19.10"></a><var>19.10</var>    Sec. 12. <b>PATIENT ADVOCATE PILOT PROGRAM.</b><br/>
<a id="pl.19.11"></a><var>19.11</var>The commissioner of labor and industry shall implement a two-year patient <br/>
<a id="pl.19.12"></a><var>19.12</var>advocate program for employees with back injuries who are considering back fusion <br/>
<a id="pl.19.13"></a><var>19.13</var>surgery. The purpose of the program is to ensure that injured workers understand their <br/>
<a id="pl.19.14"></a><var>19.14</var>treatment options and receive treatment for their work injuries according to accepted <br/>
<a id="pl.19.15"></a><var>19.15</var>medical standards. The services provided by the patient advocate shall be paid for from <br/>
<a id="pl.19.16"></a><var>19.16</var>the special compensation fund.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.19.17"></a><var>19.17</var>    Sec. 13. <b>REIMBURSEMENT COST STUDY.</b><br/>
<a id="pl.19.18"></a><var>19.18</var>The commissioner of labor and industry shall study the effectiveness and costs of <br/>
<a id="pl.19.19"></a><var>19.19</var>potential reforms and barriers within the workers' compensation carrier and health care <br/>
<a id="pl.19.20"></a><var>19.20</var>provider reimbursement system, including, but not limited to, carrier administrative costs, <br/>
<a id="pl.19.21"></a><var>19.21</var>prompt payment, uniform claim components, and the effect on provider reimbursements <br/>
<a id="pl.19.22"></a><var>19.22</var>and injured worker co-payments of implementing the subjects studied. The commissioner <br/>
<a id="pl.19.23"></a><var>19.23</var>shall consult with interested stakeholders including health care providers, workers' <br/>
<a id="pl.19.24"></a><var>19.24</var>compensation insurance carriers, and representatives of business and labor to provide <br/>
<a id="pl.19.25"></a><var>19.25</var>relevant data promptly to the department to complete the study. The commissioner shall <br/>
<a id="pl.19.26"></a><var>19.26</var>report findings and recommendations to the Workers' Compensation Advisory Council <br/>
<a id="pl.19.27"></a><var>19.27</var>by December 31, 2013.<br/>
<a id="pl.19.28"></a><var>19.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.19.29"></a><var>19.29</var>    Sec. 14. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.19.30"></a><var>19.30</var>(a) Sections 1 to 6 and 10 are effective for employees with dates of injury occurring <br/>
<a id="pl.19.31"></a><var>19.31</var>on or after October 1, 2013.<br/>
<a id="pl.19.32"></a><var>19.32</var>(b) Sections 7, 8, and 12 are effective on October 1, 2013.<br/>
<a id="pl.20.1"></a><var>20.1</var>(c) Section 9 is effective on October 1, 2013, and shall be used to establish prevailing <br/>
<a id="pl.20.2"></a><var>20.2</var>charges on or after that date.<br/>
<a id="pl.20.3"></a><var>20.3</var>(d) Section 11 is effective October 1, 2013, and applies to employees with all dates <br/>
<a id="pl.20.4"></a><var>20.4</var>of injury who receive treatment after the rules are adopted.<br/>