SF 3407

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 05/14/2025 08:35 a.m.

A bill for an act
relating to workers' compensation; adopting recommendations from the Workers'
Compensation Advisory Council; amending Minnesota Statutes 2024, sections
176.011, subdivisions 9, 11, by adding a subdivision; 176.041, subdivision 1;
176.135, subdivision 1; 176.151; 176.175, subdivision 2; 176.185, subdivision 11,
by adding a subdivision; 176.361, subdivision 2; 176.421, subdivision 4; proposing
coding for new law in Minnesota Statutes, chapter 79; repealing Minnesota Rules,
part 5220.2840.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

WORKERS' COMPENSATION

Section 1.

Minnesota Statutes 2024, section 176.011, subdivision 9, is amended to read:

Subd. 9.

Employee.

(a) "Employee" means any person who performs services for another
for hire including the following:

(1) an alien;

(2) a minor;

(3) a sheriff, deputy sheriff, police officer, firefighter, county highway engineer, and
peace officer while engaged in the enforcement of peace or in the pursuit or capture of a
person charged with or suspected of crime;

(4) a person requested or commanded to aid an officer in arresting or retaking a person
who has escaped from lawful custody, or in executing legal process, in which cases, for
purposes of calculating compensation under this chapter, the daily wage of the person shall
be the prevailing wage for similar services performed by paid employees;

(5) a county assessor;

(6) an elected or appointed official of the state, or of a county, city, town, school district,
or governmental subdivision in the state. An officer of a political subdivision elected or
appointed for a regular term of office, or to complete the unexpired portion of a regular
term, shall be included only after the governing body of the political subdivision has adopted
an ordinance or resolution to that effect;

(7) an executive officer of a corporation, except those executive officers excluded by
section 176.041;

(8) a voluntary uncompensated worker, other than an inmate, rendering services in state
institutions under the Direct Care and Treatment executive board and commissioner of
corrections similar to those of officers and employees of the institutions, and whose services
have been accepted or contracted for by the Direct Care and Treatment executive board and
commissioner of corrections as authorized by law. In the event of injury or death of the
worker, the daily wage of the worker, for the purpose of calculating compensation under
this chapter, shall be the usual wage paid at the time of the injury or death for similar services
in institutions where the services are performed by paid employees;

(9) a voluntary uncompensated worker engaged in emergency management as defined
in section 12.03, subdivision 4, who is:

(i) registered with the state or any political subdivision of it, according to the procedures
set forth in the state or political subdivision emergency operations plan; and

(ii) acting under the direction and control of, and within the scope of duties approved
by, the state or political subdivision.

The daily wage of the worker, for the purpose of calculating compensation under this chapter,
shall be the usual wage paid at the time of the injury or death for similar services performed
by paid employees;

(10) a voluntary uncompensated worker participating in a program established by a local
social services agency. For purposes of this clause, "local social services agency" means
any agency established under section 393.01. In the event of injury or death of the worker,
the wage of the worker, for the purpose of calculating compensation under this chapter,
shall be the usual wage paid in the county at the time of the injury or death for similar
services performed by paid employees working a normal day and week;

(11) a voluntary uncompensated worker accepted by the commissioner of natural
resources who is rendering services as a volunteer pursuant to section 84.089. The daily
wage of the worker for the purpose of calculating compensation under this chapter, shall
be the usual wage paid at the time of injury or death for similar services performed by paid
employees;

(12) a voluntary uncompensated worker in the building and construction industry who
renders services for joint labor-management nonprofit community service projects. The
daily wage of the worker for the purpose of calculating compensation under this chapter
shall be the usual wage paid at the time of injury or death for similar services performed by
paid employees;

(13) a member of the military forces, as defined in section 190.05, while in state active
service, as defined in section 190.05, subdivision 5a. The daily wage of the member for the
purpose of calculating compensation under this chapter shall be based on the member's
usual earnings in civil life. If there is no evidence of previous occupation or earning, the
trier of fact shall consider the member's earnings as a member of the military forces;

(14) a voluntary uncompensated worker, accepted by the director of the Minnesota
Historical Society, rendering services as a volunteer, pursuant to chapter 138. The daily
wage of the worker, for the purposes of calculating compensation under this chapter, shall
be the usual wage paid at the time of injury or death for similar services performed by paid
employees;

(15) a voluntary uncompensated worker, other than a student, who renders services at
the Minnesota State Academy for the Deaf or the Minnesota State Academy for the Blind,
and whose services have been accepted or contracted for by the commissioner of education,
as authorized by law. In the event of injury or death of the worker, the daily wage of the
worker, for the purpose of calculating compensation under this chapter, shall be the usual
wage paid at the time of the injury or death for similar services performed in institutions
by paid employees;

(16) a voluntary uncompensated worker, other than a resident of the veterans home, who
renders services at a Minnesota veterans home, and whose services have been accepted or
contracted for by the commissioner of veterans affairs, as authorized by law. In the event
of injury or death of the worker, the daily wage of the worker, for the purpose of calculating
compensation under this chapter, shall be the usual wage paid at the time of the injury or
death for similar services performed in institutions by paid employees;

(17) a worker performing new text begin direct support new text end services new text begin , including any of the following:
new text end

new text begin (i) new text end under section 256B.0659 deleted text begin for a recipient in the home of the recipient or in the
community under section 256B.0625, subdivision 19a, who is paid from government funds
through a fiscal intermediary under section 256B.0659, subdivision 33. For purposes of
maintaining workers' compensation insurance, the employer of the worker is as designated
in law by the commissioner of the Department of Human Services, notwithstanding any
other law to the contrary deleted text end new text begin where the personal care assistance provider agency is responsible
for maintaining workers' compensation insurance for any employments not excluded under
this chapter new text end ;

new text begin (ii) under section 256B.85 where the worker is either employed by an agency-provider
or by a participant. When the worker is employed by a participant, the financial management
services provider must require and verify that the participant maintains workers' compensation
insurance for any employments not excluded under this chapter. When the worker is
employed by an agency-provider, the agency-provider is responsible to maintain workers'
compensation insurance for any employments not excluded under this chapter;
new text end

new text begin (iii) under section 256B.4911 where the worker is employed by the consumer-directed
community supports participant. The financial management services provider must require
and verify the participant maintains workers' compensation insurance for any employments
not excluded under this chapter; and
new text end

new text begin (iv) under section 256.476 where the worker is employed by the consumer support grant
participant. The financial management services provider must require and verify the
participant maintains workers' compensation insurance for any employments not excluded
under this chapter;
new text end

(18) students enrolled in and regularly attending the Medical School of the University
of Minnesota in the graduate school program or the postgraduate program. The students
shall not be considered employees for any other purpose. In the event of the student's injury
or death, the weekly wage of the student for the purpose of calculating compensation under
this chapter, shall be the annualized educational stipend awarded to the student, divided by
52 weeks. The institution in which the student is enrolled shall be considered the "employer"
for the limited purpose of determining responsibility for paying benefits under this chapter;

(19) a faculty member of the University of Minnesota employed for an academic year
is also an employee for the period between that academic year and the succeeding academic
year if:

(i) the member has a contract or reasonable assurance of a contract from the University
of Minnesota for the succeeding academic year; and

(ii) the personal injury for which compensation is sought arises out of and in the course
of activities related to the faculty member's employment by the University of Minnesota;

(20) a worker who performs volunteer ambulance driver or attendant services is an
employee of the political subdivision, nonprofit hospital, nonprofit corporation, or other
entity for which the worker performs the services. The daily wage of the worker for the
purpose of calculating compensation under this chapter shall be the usual wage paid at the
time of injury or death for similar services performed by paid employees;

(21) a voluntary uncompensated worker, accepted by the commissioner of administration,
rendering services as a volunteer at the Department of Administration. In the event of injury
or death of the worker, the daily wage of the worker, for the purpose of calculating
compensation under this chapter, shall be the usual wage paid at the time of the injury or
death for similar services performed in institutions by paid employees;

(22) a voluntary uncompensated worker rendering service directly to the Pollution
Control Agency. The daily wage of the worker for the purpose of calculating compensation
payable under this chapter is the usual going wage paid at the time of injury or death for
similar services if the services are performed by paid employees;

(23) a voluntary uncompensated worker while volunteering services as a first responder
or as a member of a law enforcement assistance organization while acting under the
supervision and authority of a political subdivision. The daily wage of the worker for the
purpose of calculating compensation payable under this chapter is the usual going wage
paid at the time of injury or death for similar services if the services are performed by paid
employees;

(24) a voluntary uncompensated member of the civil air patrol rendering service on the
request and under the authority of the state or any of its political subdivisions. The daily
wage of the member for the purposes of calculating compensation payable under this chapter
is the usual going wage paid at the time of injury or death for similar services if the services
are performed by paid employees; and

(25) a Minnesota Responds Medical Reserve Corps volunteer, as provided in sections
145A.04 and 145A.06, responding at the request of or engaged in training conducted by the
commissioner of health. The daily wage of the volunteer for the purposes of calculating
compensation payable under this chapter is established in section 145A.06. A person who
qualifies under this clause and who may also qualify under another clause of this subdivision
shall receive benefits in accordance with this clause.

If it is difficult to determine the daily wage as provided in this subdivision, the trier of
fact may determine the wage upon which the compensation is payable.

(b) For purposes of this chapter "employee" does not include farmers or members of
their family who exchange work with other farmers in the same community.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2024, section 176.011, subdivision 11, is amended to read:

Subd. 11.

Executive officer of a corporation.

"Executive officer of a corporation"
means any officer of a corporation elected or appointed in accordance with its charter or
bylaws new text begin or pursuant to section 302A.011, subdivision 18 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 176.041, subdivision 1, is amended to read:

Subdivision 1.

Employments excluded.

This chapter does not apply to any of the
following:

(1) a person employed by a common carrier by railroad engaged in interstate or foreign
commerce and who is covered by the Federal Employers' Liability Act, United States Code,
title 45, sections 51 to 60, or other comparable federal law;

(2) a person employed by a family farm as defined by section 176.011, subdivision 11a;

(3) the spouse, parent, and child, regardless of age, of a farmer-employer working for
the farmer-employer;

(4) a sole proprietor, or the spouse, parent, and child, regardless of age, of a sole
proprietor;

(5) a partner engaged in a farm operation or a partner engaged in a business and the
spouse, parent, and child, regardless of age, of a partner in the farm operation or business;

(6) an executive officer new text begin , as defined in section 176.011, subdivision 11, new text end of a family farm
corporation;

(7) an executive officer new text begin , as defined in section 176.011, subdivision 11, new text end of a closely held
corporation having less than 22,880 hours of payroll in the preceding calendar year, if that
executive officer owns at least 25 percent of the stock of the corporation;

(8) a spouse, parent, or child, regardless of age, of an executive officer of a family farm
corporation as defined in section 500.24, subdivision 2, and employed by that family farm
corporation;

(9) a spouse, parent, or child, regardless of age, of an executive officer of a closely held
corporation who is referred to in clause (7);

(10) another farmer or a member of the other farmer's family exchanging work with the
farmer-employer or family farm corporation operator in the same community;

(11) a person whose employment at the time of the injury is casual and not in the usual
course of the trade, business, profession, or occupation of the employer;

(12) persons who are independent contractors as defined by sections 176.043 and 181.723,
and any rules adopted by the commissioner pursuant to section 176.83 except that these
exclusions do not apply to an employee of an independent contractor;

(13) an officer or a member of a veterans' organization whose employment relationship
arises solely by virtue of attending meetings or conventions of the veterans' organization,
unless the veterans' organization elects by resolution to provide coverage under this chapter
for the officer or member;

(14) a person employed as a household worker in, for, or about a private home or
household who earns less than $1,000 in cash in a three-month period from a single private
home or household provided that a household worker who has earned $1,000 or more from
the household worker's present employer in a three-month period within the previous year
is covered by this chapter regardless of whether or not the household worker has earned
$1,000 in the present quarter;

(15) persons employed by a closely held corporation who are related by blood or marriage,
within the third degree of kindred according to the rules of civil law, to an officer of the
corporation, who is referred to in clause (7), if the corporation files a written election with
the commissioner to exclude such individuals. A written election is not required for a person
who is otherwise excluded from this chapter by this section;

(16) a nonprofit association which does not pay more than $1,000 in salary or wages in
a year;

(17) persons covered under the Domestic Volunteer Service Act of 1973, as amended,
United States Code, title 42, sections 5011, et seq.;

(18) a manager of a limited liability company having ten or fewer members and having
less than 22,880 hours of payroll in the preceding calendar year, if that manager owns at
least a 25 percent membership interest in the limited liability company;

(19) a spouse, parent, or child, regardless of age, of a manager of a limited liability
company described in clause (18);

(20) persons employed by a limited liability company having ten or fewer members and
having less than 22,880 hours of payroll in the preceding calendar year who are related by
blood or marriage, within the third degree of kindred according to the rules of civil law, to
a manager of a limited liability company described in clause (18), if the company files a
written election with the commissioner to exclude these persons. A written election is not
required for a person who is otherwise excluded from this chapter by this section; or

(21) members of limited liability companies who satisfy the requirements of clause (12).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2024, section 176.135, subdivision 1, is amended to read:

Subdivision 1.

Medical, psychological, chiropractic, podiatric, surgical, hospital.

(a)
The employer shall furnish any medical, psychological, chiropractic, podiatric, surgical and
hospital treatment, including nursing, medicines, medical, chiropractic, podiatric, and
surgical supplies, crutches and apparatus, including artificial members, or, at the option of
the employee, if the employer has not filed notice as hereinafter provided, Christian Science
treatment in lieu of medical treatment, chiropractic medicine and medical supplies, as may
reasonably be required at the time of the injury and any time thereafter to cure and relieve
from the effects of the injury. This treatment shall include treatments necessary to physical
rehabilitation.

(b) The employer shall pay for the reasonable value of nursing services provided by a
member of the employee's family new text begin or household new text end in cases of permanent total disability.

(c) Exposure to rabies is an injury and an employer shall furnish preventative treatment
to employees exposed to rabies.

(d) The employer shall furnish replacement or repair for artificial members, glasses or
spectacles, artificial eyes, podiatric orthotics, dental bridge work, dentures or artificial teeth,
hearing aids, canes, crutches, or wheel chairs damaged by reason of an injury arising out
of and in the course of the employment. If an item under this paragraph is customized
specifically for the injured worker, the item is the property of the injured worker. For the
purpose of this paragraph, "injury" includes damage wholly or in part to an artificial member.
In case of the employer's inability or refusal to timely provide the items required to be
provided under this paragraph, the employer is liable for the reasonable expense incurred
by or on behalf of the employee in providing the same, including costs of copies of any
medical records or medical reports that are in existence, obtained from health care providers,
and that directly relate to the items for which payment is sought under this chapter, limited
to the charges allowed by subdivision 7, and attorney fees incurred by the employee.

(e) Both the commissioner and the compensation judges have authority to make
determinations under this section in accordance with sections 176.106 and 176.305.

(f) An employer may require that the treatment and supplies required to be provided by
an employer by this section be received in whole or in part from a managed care plan certified
under section 176.1351 except as otherwise provided by that section.

(g) An employer may designate a pharmacy or network of pharmacies that employees
must use to obtain outpatient prescription and nonprescription medications. An employee
is not required to obtain outpatient medications at a designated pharmacy unless the pharmacy
is located within 15 miles of the employee's place of residence.

(h) Notwithstanding any fees established by rule adopted under section 176.136, an
employer may contract for the cost of medication provided to employees. All requests for
reimbursement from the special compensation fund formerly codified under section 176.131
for medication provided to an employee must be accompanied by the dispensing pharmacy's
invoice showing its usual and customary charge for the medication at the time it was
dispensed to the employee. The special compensation fund shall not reimburse any amount
that exceeds the maximum amount payable for the medication under Minnesota Rules, part
5221.4070, subparts 3 and 4, notwithstanding any contract under Minnesota Rules, part
5221.4070, subpart 5, that provides for a different reimbursement amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2024, section 176.151, is amended to read:

176.151 TIME LIMITATIONS.

The time within which the following acts shall be performed shall be limited to the
following periods, respectively:

(a) Actions or proceedings by an injured employee to determine or recover compensation,
three years after deleted text begin the employer has made deleted text end new text begin a new text end written report of the injury new text begin has been made new text end to the
commissioner of the Department of Labor and Industry, but not to exceed six years from
the date of the accident.

(b) Actions or proceedings by dependents to determine or recover compensation, three
years after the receipt by the commissioner of the Department of Labor and Industry of
written notice of death, given by the employer, but not to exceed six years from the date of
injury, provided, however, if the employee was paid compensation for the injury from which
the death resulted, such actions or proceedings by dependents must be commenced within
three years after the receipt by the commissioner of the Department of Labor and Industry
of written notice of death, given by the employer, but not to exceed six years from the date
of death. In any such case, if a dependent of the deceased, or any one in the dependent's
behalf, gives written notice of such death to the commissioner of the Department of Labor
and Industry, the commissioner shall forthwith give written notice to the employer of the
time and place of such death. In case the deceased was a native of a foreign country and
leaves no known dependent within the United States, the commissioner of the Department
of Labor and Industry shall give written notice of the death to the consul or other
representative of the foreign country forthwith.

(c) In case of physical or mental incapacity, other than minority, of the injured person
or dependents to perform or cause to be performed any act required within the time specified
in this section, the period of limitation in any such case shall be extended for three years
from the date when the incapacity ceases.

(d) In the case of injury caused by x-rays, radium, radioactive substances or machines,
ionizing radiation, or any other occupational disease, the time limitations otherwise prescribed
by Minnesota Statutes 1961, chapter 176, and acts amendatory thereof, shall not apply, but
the employee shall give notice to the employer and commence an action within three years
after the employee has knowledge of the cause of such injury and the injury has resulted in
disability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2024, section 176.175, subdivision 2, is amended to read:

Subd. 2.

Nonassignability.

No claim for compensation or settlement of a claim for
compensation owned by an injured employee or dependents is assignable. Except as otherwise
provided in this chapter, any claim for compensation owned by an injured employee or
dependents is exempt from seizure or sale for the payment of any debt or liability, up to a
total amount of deleted text begin $1,000,000 deleted text end new text begin $10,000,000 new text end per claim and subsequent award.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for dates of injury on or after October
1, 2025.
new text end

Sec. 7.

Minnesota Statutes 2024, section 176.361, subdivision 2, is amended to read:

Subd. 2.

Written motion.

new text begin (a) new text end A person desiring to intervene in a workers' compensation
case as a party, including but not limited to a health care provider who has rendered services
to an employee or an insurer who has paid benefits under section 176.191, shall submit a
timely written motion to intervene to the commissioner, the office, or to the court of appeals,
whichever is applicable.

deleted text begin (a) deleted text end new text begin (b) new text end The motion must be served on all parties, except for other intervenors, either
personally, by first class mail, or by registered mail, return receipt requested. A motion to
intervene must be served and filed within 60 days after a potential intervenor has been
served with notice of a right to intervene or within 30 days of notice of an administrative
conference or expedited hearing. Upon the filing of a timely motion to intervene, the potential
intervenor shall be granted intervenor status without the need for an order. Objections to
the intervention may be subsequently addressed by a compensation judge. new text begin Except where a
member of the employee's family or household is supplying nursing services pursuant to
section 176.135, subdivision 1, paragraph (b), new text end where a motion to intervene is not timely
filed under this section, the potential intervenor interest shall be extinguished and the potential
intervenor may not collect, or attempt to collect, the extinguished interest from the employee,
employer, insurer, or any government program.

deleted text begin (b) deleted text end new text begin (c) new text end The motion must show how the applicant's legal rights, duties, or privileges may
be determined or affected by the case; state the grounds and purposes for which intervention
is sought; and indicate the statutory right to intervene. The motion must be accompanied
by the following:

(1) an itemization of disability payments showing the period during which the payments
were or are being made; the weekly or monthly rate of the payments; and the amount of
reimbursement claimed;

(2) a summary of the medical or treatment payments, or rehabilitation services provided
by the Vocational Rehabilitation Unit, broken down by creditor, showing the total bill
submitted, the period of treatment or rehabilitation covered by that bill, the amount of
payment on that bill, and to whom the payment was made;

(3) copies of all medical or treatment bills for which payment is sought;

(4) copies of the work sheets or other information stating how the payments on medical
or treatment bills were calculated;

(5) a copy of the relevant policy or contract provisions upon which the claim for
reimbursement is based;

(6) the name and telephone number of the person representing the intervenor who has
authority to represent the intervenor, including but not limited to the authority to reach a
settlement of the issues in dispute;

(7) proof of service or copy of the registered mail receipt evidencing service on all parties
except for other intervenors;

(8) at the option of the intervenor, a proposed stipulation which states that all of the
payments for which reimbursement is claimed are related to the injury or condition in dispute
in the case and that, if the petitioner is successful in proving the compensability of the claim,
it is agreed that the sum be reimbursed to the intervenor; and

(9) if represented by an attorney, the name, address, telephone number, and Minnesota
Supreme Court license number of the attorney.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2024, section 176.421, subdivision 4, is amended to read:

Subd. 4.

Service and filing of notice; cost of transcript.

Within the 30-day period for
taking an appeal, the appellant shall:

(1) serve a copy of the notice of appeal on each adverse party; and

(2) pursuant to section 176.285, file the original notice of appeal, with proof of service
by admission or affidavit, with the chief administrative law judge deleted text begin and file a copy with the
commissioner deleted text end .

In order to defray the cost of the preparation of the record of the proceedings appealed
from, each appellant and cross-appellant shall pay to the commissioner of management and
budget, Office of Administrative Hearings account the sum of $25. The filing fee must be
received by the Office of Administrative Hearings within ten business days after the end of
the appeal period. If the filing fee is not received within ten days after the appeal period,
the appeal is not timely filed.

The first party to file an appeal is liable for the original cost of preparation of the
transcript. Cross-appellants or any other persons requesting a copy of the transcript are
liable for the cost of the copy. The chief administrative law judge may require payment for
transcription costs to be made in advance of the transcript preparation. The cost of a transcript
prepared by a nongovernmental source shall be paid directly to that source and shall not
exceed the cost that the source would be able to charge the state for the same service.

Upon a showing of cause, the chief administrative law judge may direct that a transcript
be prepared without expense to the party requesting its preparation, in which case the cost
of the transcript shall be paid by the Office of Administrative Hearings.

All fees received by the Office of Administrative Hearings for the preparation of the
record for submission to the Workers' Compensation Court of Appeals or for the cost of
transcripts prepared by the office shall be deposited in the Office of Administrative Hearings
account in the state treasury and shall be used solely for the purpose of keeping the record
of hearings conducted under this chapter and the preparation of transcripts of those hearings.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 5220.2840, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

OTHER INSURANCE POLICIES

Section 1.

new text begin [79.101] ATTESTATION REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Zero estimated exposure. new text end

new text begin For purposes of this section, a "zero estimated
exposure policy" has the meaning given in section 176.011, subdivision 19a. This section
applies to zero estimated exposure policies issued to employers performing building
construction or improvement services.
new text end

new text begin Subd. 2. new text end

new text begin Attestation. new text end

new text begin Each insurer shall require with or as part of each completed
application for a zero estimated exposure policy a statement signed by the applicant attesting
to the accuracy of the information on the application, including the applicant's absence of
employees and estimated exposure of zero. The attestation shall include the following: "I
attest that all information provided on this application is current, true, correct, accurate, and
complete to the best of my knowledge and belief. I further attest that I have no employees
and an estimated exposure of zero. If I employ any employees during the policy period, I
must provide within 60 days of the employment written notification to my workers'
compensation insurer of the employment, including estimated payroll and classification
codes of my employees. I understand that omissions or misrepresentations with intent to
defraud on this application are a crime under Minnesota Statutes, section 609.611."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for policies issued or renewed on or after
January 1, 2026.
new text end

Sec. 2.

new text begin [79.102] OWNER- AND CONTRACTOR-CONTROLLED INSURANCE
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Project sponsor" means a person who engages the
services of a contractor for the purpose of working on a single, specific, and large
construction, erection, or demolition project.
new text end

new text begin (b) "Owner-controlled insurance program" is a single, specific, and large construction,
erection, or demolition project for which a series of policies have been issued to a project
sponsor and two or more contractors or subcontractors engaged in the project to cover
liability for workers' compensation as provided in section 176.181.
new text end

new text begin (c) "Contractor-controlled insurance program" is a single, specific, and large construction,
erection, or demolition project for which a series of policies have been issued to a general
contractor or construction manager and two or more contractors or subcontractors engaged
in the project to cover liability for workers' compensation as provided in section 176.181.
new text end

new text begin (d) "Program" means either of the programs under paragraphs (b) or (c).
new text end

new text begin Subd. 2. new text end

new text begin Approval. new text end

new text begin (a) Owner- and contractor-controlled insurance programs must be
approved by the commissioner.
new text end

new text begin (b) Separate insurance policies must be issued to each eligible entity involved in the
program. Separate legal entities may be insured by one insurance policy in the program
only if the same person or group of persons own the majority interest in each such legal
entity.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) The commissioner, upon application of a project sponsor or
general contractor, shall approve or disapprove owner- and contractor-controlled insurance
programs within 60 days of receipt of a completed application. The commissioner shall
grant approval upon a determination that the project sponsor or general contractor has
provided all the information that is available at the time of application required in paragraph
(b) and that the program meets the following requirements:
new text end

new text begin (1) the project has an aggregate value in excess of $100,000,000;
new text end

new text begin (2) the project is a specific construction, erection, or demolition project at a single
location or multiple related locations;
new text end

new text begin (3) the project generates a combined $500,000 or more in annual written workers'
compensation premiums in Minnesota for the policies issued to all employers as part of the
program;
new text end

new text begin (4) the project sponsor, contractors, or subcontractors in the program have not been
convicted of a crime involving insurance fraud as defined in section 609.611; and
new text end

new text begin (5) the program's proposed insurer's rates and rating plan for the program have been
approved by the commissioner pursuant to section 79.56, subdivision 1, paragraph (a).
new text end

new text begin (b) A project sponsor or general contractor must provide the following information
regarding the project and each individual contractor and subcontractor involved in the
program as part of the application to the commissioner:
new text end

new text begin (1) the name of the proposed insurer;
new text end

new text begin (2) project location and address;
new text end

new text begin (3) project sponsor name, address, and telephone number;
new text end

new text begin (4) addresses and telephone numbers for all contractors and subcontractors in the program;
new text end

new text begin (5) estimated project duration;
new text end

new text begin (6) estimated payroll for the project;
new text end

new text begin (7) estimated number of employees for the project;
new text end

new text begin (8) classification code or primary business code for the project;
new text end

new text begin (9) professional or occupational licenses for all contractors in the program;
new text end

new text begin (10) any professional or occupational license discipline or suspension for all contractors
in the program;
new text end

new text begin (11) any criminal charges or convictions for insurance fraud as defined in section 609.611
of any individuals in the program; and
new text end

new text begin (12) any bankruptcy or receivership proceedings for any legal entities in the program.
new text end

new text begin (c) Every three months during the course of a project of an approved program, the project
sponsor or general contractor must provide to the commissioner any updates to the application
information required by paragraph (b).
new text end

new text begin (d) The commissioner may share with a licensed data service organization information
concerning approved programs. A licensed data service organization must provide upon
request to the commissioner any policy issued to an employer involved in an approved
program.
new text end

new text begin (e) An approved program's insurance policies shall provide that upon cancellation of a
policy prior to completion of the construction project, the project sponsor or contractor must
either replace the insurance or pay the contractor or subcontractor to obtain replacement
insurance in an amount equal to the premium paid by the contractor or subcontractor to
obtain replacement insurance for the duration of the project.
new text end

new text begin (f) A project sponsor or general contractor applying for approval of an owner-controlled
insurance program or a contractor-controlled insurance program must pay a nonrefundable
application fee of $2,500.
new text end

new text begin Subd. 4. new text end

new text begin Exclusion. new text end

new text begin No contractor or subcontractor involved in an approved program
may have a zero estimated exposure policy as defined in section 176.011, subdivision 19a,
for its work on the program's project.
new text end

new text begin Subd. 5. new text end

new text begin Policy forms and rates. new text end

new text begin (a) An approved program's insurer must use forms
and auditing standards of a licensed data service organization.
new text end

new text begin (b) An approved program's insurer must use the experience rating plan of a licensed data
service organization.
new text end

new text begin (c) An approved program's policy deductible or retrospective rating plan retention must
be no less than $50,000 and no more than $1,000,000. The deductible or retrospective rating
plan retention must not be higher than the program's insurer's applicable Workers'
Compensation Reinsurance Association retention limit.
new text end

new text begin (d) To the extent an approved program's insurer deviates from the rates and rating plan
approved by the commissioner when determining rates for each employer in the program,
the insurer shall submit to the commissioner data and calculations used by the insurer to
calculate the deviations within 60 days of the program's policies' effective date.
new text end

new text begin Subd. 6. new text end

new text begin Payroll records. new text end

new text begin A project sponsor or general contractor of an approved program
must obtain payroll records for the project from all contractors and subcontractors in the
program at the time of premium audit. The project sponsor or general contractor shall
maintain the payroll records under this subdivision for three years after the date of completion
of the project.
new text end

new text begin Subd. 7. new text end

new text begin Notice required. new text end

new text begin All contractors and subcontractors participating in an approved
program shall be provided with a copy of the insurance policy that covers their employees.
The project sponsor, general contractor, or construction manager shall post the notice
required by section 176.139, subdivision 1, at all job sites in English and Spanish, including
information about how to submit a claim for compensation under the program's policy or
policies. Upon request, contractors and subcontractors must furnish this information to an
employee covered by the program in a language that the employee understands.
new text end

new text begin Subd. 8. new text end

new text begin Audits. new text end

new text begin The commissioner is authorized to conduct audits and investigations
under section 45.027 to determine if insurers and approved owner- and contractor-controlled
insurance programs are complying with Minnesota law in the issuance of policies described
in this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 3.

Minnesota Statutes 2024, section 176.011, is amended by adding a subdivision to
read:

new text begin Subd. 19a. new text end

new text begin Zero estimated exposure policy. new text end

new text begin "Zero estimated exposure policy" means
a policy of insurance that an employer obtains to cover the employer's liability to pay
compensation under this chapter after reporting the employer's total estimated exposure is
zero.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2024, section 176.185, subdivision 11, is amended to read:

Subd. 11.

Employment and insurance data.

(a) The following workers' compensation
insurance coverage data reported to or collected by the department under this section, or
otherwise created or received by the department, is public data new text begin required to be reported by
an insurer new text end , subject to the limitations provided in paragraph (b):

(1) all action on an insurance policy, but not including the policy itself. Examples of
action on a policy are the date of issuance of a new policy, the date of cancellation, or copies
of a correction, binder, reinstatement, expiration, cancellation, termination, or declaration
page;

(2) the employer's legal name;

(3) every "doing business as" name used by the employer;

(4) the employer's legal form of ownership, such as corporation, partnership, limited
partnership, or government entity, and the names of all owners and partners including, for
limited partnerships, the names of general partners;

(5) the employer's complete mailing and physical addresses;

(6) the nature of the employer's business;

(7) the policy number;

(8) the effective and expiration dates of the policy;

(9) the name of the insurance carrier;

(10) if the policy has been canceled, the type of cancellation, reason for cancellation,
and effective date of cancellation; deleted text begin and
deleted text end

(11) the employer's unemployment account number deleted text begin . deleted text end new text begin ; and
new text end

new text begin (12) the employer's total estimated exposure amount for a zero estimated exposure policy
and the employer's reported construction classification codes for a zero estimated exposure
policy.
new text end

(b) The commissioner shall release the insurance coverage data listed in paragraph (a)
only in response to an inquiry about an employer in which the requester provides employer
identifying information required by the commissioner. The commissioner or an entity with
whom the department has contracted pursuant to subdivision 10 shall provide a website for
such public inquiries and may impose access restrictions necessary to limit access to
individual inquiries and to otherwise deter the use of the website for purposes other than
insurance verification. Persons who obtain the data prescribed in paragraph (a) from the
department are prohibited from using the data for commercial purposes.

(c) For purposes of this subdivision, "employer" includes a policyholder and any other
entities listed on the same insurance policy as the employer.

(d) For purposes of this subdivision, "commercial purposes" means the sale or use of
insurance coverage data listed in paragraph (a) for marketing or profit.

(e) An entity with whom the department has contracted pursuant to subdivision 10 has
a private right of action to enforce the prohibition in paragraph (b) against a person who
uses the data for commercial purposes. The entity may bring a civil action to recover damages
and costs and disbursements, including reasonable attorney fees, from the person, and for
other equitable relief as determined by the court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 5.

Minnesota Statutes 2024, section 176.185, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Policies with zero estimated exposure. new text end

new text begin If an employer providing or performing
building construction or improvement services obtains a zero estimated exposure policy,
the employer must provide written notification to all entities the employer directly contracts
with to provide or perform building construction or improvement services of the employer's
total estimated exposure of zero and provide a copy of the policy. When an entity receives
the notification under this subdivision, the entity must maintain the written notification and
policy provided for three years from the date the notification and policy were received.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

APPENDIX

Repealed Minnesota Rule: S3407-1

5220.2840 FAILURE TO MAKE PAYMENT OR REPORT TO SPECIAL FUND; PENALTY.

Subpart 1.

Due date.

For workers' compensation benefits paid from January 1 through June 30, the due date of the completed assessment form and corresponding assessment amount is August 15 of the same calendar year.

For workers' compensation benefits paid from July 1 through December 31, the due date of the corresponding assessment amount is March 1 of the following calendar year.

Notice of the assessment rate and instructions for payment will be issued by the fund 45 or more days before the due date.

Insurers no longer licensed to provide, or no longer providing workers' compensation insurance in Minnesota, and employers no longer self-insured to provide workers' compensation benefits must continue to file the assessment form until five years have elapsed since a policy of workers' compensation insurance or self-insurance was provided, or three years after the last indemnity payment was made, whichever is later. Insurers not owing an assessment must report zero liability during the required reporting years.

Subp. 2.

Basis.

A penalty will be assessed under Minnesota Statutes, section 176.129, subdivision 10, where either:

A.

the completed assessment form and payment of the special compensation fund assessment; or

B.

written certification that the assessment report and assessment payment will not be made by the due date because of reasons beyond the control of the insurer or because no assessment is owing, is not received by the special compensation fund on or before the due date.

Subp. 3.

Amount.

Within 30 days of the due date, the special compensation fund will give notice of penalty to those who have neither filed the completed assessment form and paid the assessment amount, nor submitted a certified reason for nonpayment by the due date as follows:

A.

Either:

(1)

2.5 percent of the assessment amount due if the assessment payment is received at the fund within five days after the due date;

(2)

five percent of the assessment amount due if the assessment payment is received at the fund within six to 30 days after the due date;

(3)

ten percent of the assessment amount due if the assessment payment is received at the fund within 31 to 60 days after the due date; or

(4)

15 percent of the assessment amount due if the assessment payment is received at the fund 61 or more days after the due date;

B.

$1,000, whichever is greater; or

C.

$200 for failure to timely report under subpart 2, item B, that no assessment is due.

Subp. 4.

Payable to.

The penalty is payable to the commissioner for deposit in the assigned risk safety account.

Subp. 5.

Continued nonpayment.

If the insurer penalized does not make payment within six months of the due date, the fund director shall refer the file to the Department of Commerce for consideration of license or permit revocation.