as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
|Introduction||Posted on 08/13/1998|
1.1 A bill for an act 1.2 relating to workers' compensation; providing for 1.3 insurance regulation; regulating benefits; 1.4 appropriating money; amending Minnesota Statutes 1994, 1.5 sections 79.50; 79.51, subdivisions 1 and 3; 79.53, 1.6 subdivision 1; 79.55, subdivisions 2, 5, and by adding 1.7 subdivisions; 79.56, subdivisions 1 and 3; 176.021, 1.8 subdivisions 3 and 3a; 176.101, subdivisions 1, 3g, 1.9 3l, 3m, 3o, 3q, 4, and 5; 176.645, subdivision 1; and 1.10 176.66, subdivision 11; proposing coding for new law 1.11 in Minnesota Statutes, chapter 79; repealing Minnesota 1.12 Statutes 1994, sections 79.53, subdivision 2; 79.54; 1.13 79.56, subdivision 2; 79.57; 79.58; and 176.132, 1.14 subdivisions 1 and 2. 1.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.16 ARTICLE 1 1.17 Section 1. Minnesota Statutes 1994, section 79.50, is 1.18 amended to read: 1.19 79.50 [PURPOSES.] 1.20 The purposes of chapter 79 are to: 1.21 (a) Promote public welfare by regulating insurance rates so 1.22 that premiums are not excessive, inadequate, or unfairly 1.23 discriminatory; 1.24 (b) Promote quality and integrity in the databases used in 1.25 workers' compensation insurance ratemaking; 1.26 (c) Prohibit price fixing agreements and anticompetitive 1.27 behavior by insurers; 1.28 (d)
Promote price competition and provide rates that are1.29 responsive to competitive market conditions;1.30 (e) Provide a means of establishment of proper rates if2.1 competition is not effective;2.2 (f)Define the function and scope of activities of data 2.3 service organizations; 2.4 (g) Provide for an orderly transition from regulated rates2.5 to competitive market conditions;and 2.6 (h)(e) Encourage insurers to provide alternative 2.7 innovative methods whereby employers can meet the requirements 2.8 imposed by section 176.181. 2.9 Sec. 2. Minnesota Statutes 1994, section 79.51, 2.10 subdivision 1, is amended to read: 2.11 Subdivision 1. [ADOPTION; WHEN.] The commissioner shall 2.12 adopt rules to implement provisions of this chapter. The rules2.13 shall be finally adopted after May 1, 1982. By January 15,2.14 1982, the commissioner shall provide the legislature a2.15 description and explanation of the intent and anticipated effect2.16 of the rules on the various factors of the rating system.2.17 Sec. 3. Minnesota Statutes 1994, section 79.51, 2.18 subdivision 3, is amended to read: 2.19 Subd. 3. [RULES; SUBJECT MATTER.] (a) The commissioner in 2.20 issuing rules shall consider: 2.21 (1) data reporting requirements, including types of data 2.22 reported, such as loss and expense data; 2.23 (2) experience rating plans; 2.24 (3) retrospective rating plans; 2.25 (4) general expenses and related expense provisions; 2.26 (5) minimum premiums; 2.27 (6) classification systems and assignment of risks to 2.28 classifications; 2.29 (7) loss development and trend factors; 2.30 (8) the workers' compensation reinsurance association; 2.31 (9) requiring substantial compliance with the rules 2.32 mandated by this section as a condition of workers' compensation 2.33 carrier licensure; 2.34 (10) imposing limitations on the functions of workers' 2.35 compensation data service organizations consistent with the 2.36 introduction of competition; 3.1 (11) the rules contained in the workers' compensation 3.2 rating manual adopted by the workers' compensation insurers3.3 rating associationlicensed data service organizations; and3.4 (12) the supporting data and information required in 3.5 filings under section 79.56, including but not limited to, the 3.6 experience of the filing insurer and the extent to which the 3.7 filing insurer relies upon data service organization loss 3.8 information, descriptions of the actuarial and statistical 3.9 methods employed in setting rates, and the filing insurers 3.10 interpretation of any statistical data relied upon; and 3.11 (13) any other factors that the commissioner deems relevant 3.12 to achieve the purposes of this chapter. 3.13 (b) The rules shall provide for the following: 3.14 (1) competition in workers' compensation insurance rates in3.15 such a way that the advantages of competition are introduced3.16 with a minimum of employer hardship;3.17 (2)adequate safeguards against excessive or discriminatory 3.18 rates in workers' compensation; 3.19 (3)(2) encouragement of workers' compensation insurance 3.20 rates which are as low as reasonably necessary, but shall make 3.21 provision against inadequate rates, insolvencies and unpaid 3.22 benefits; 3.23 (4)(3) assurances that employers are not unfairly 3.24 relegated to the assigned risk pool; 3.25 (5)(4) requiring all appropriate data and other 3.26 information from insurers for the purpose of issuing rules, 3.27 making legislative recommendations pursuant to this section and3.28 monitoring the effectiveness of competition; and 3.29 (6)(5) preserving a framework for risk classification, 3.30 data collection, and other appropriate joint insurer 3.31 services where these will not impede the introduction of3.32 competition in premium rates. 3.33 Sec. 4. Minnesota Statutes 1994, section 79.53, 3.34 subdivision 1, is amended to read: 3.35 Subdivision 1. [METHOD OF CALCULATION.] Each insurer shall 3.36 establish premiums to be paid by an employer according to its 4.1 filed rates and rating plan as follows: 4.2 Rates shall be applied to an exposure base to yield a base 4.3 premium which may be further modifiedincreased or decreased up 4.4 to 25 percent by merit rating, premium discounts, and other 4.5 appropriate factors contained in the rating plan of an insurer 4.6 to produce premium if the increase or decrease is not unfairly 4.7 discriminatory. Nothing in this chapter shall be deemed to 4.8 prohibit the use of any premium, provided the premium is not 4.9 excessive, inadequate or unfairly discriminatory. 4.10 Sec. 5. Minnesota Statutes 1994, section 79.55, 4.11 subdivision 2, is amended to read: 4.12 Subd. 2. [EXCESSIVENESS.] No premium is excessive in a4.13 competitive market. In the absence of a competitive market,4.14 premiumsRates and rating plans are excessive if the expected 4.15 underwriting profit, together with expected income from invested 4.16 reserves for the market in question, that would accrue to an 4.17 insurer under the rates and rating plans would be unreasonably 4.18 high in relation to the risk undertaken by the insurer in 4.19 transacting the business. The burden is on the insurer to 4.20 establish that profit is not unreasonably high. 4.21 Sec. 6. Minnesota Statutes 1994, section 79.55, 4.22 subdivision 5, is amended to read: 4.23 Subd. 5. [DISCOUNTS PERMITTED.] An insurer may offer a 4.24 discount fromscheduled credit or debit to a manual premium of 4.25 up to 25 percent if the premium otherwise complies with this 4.26 section. The commissioner shall not by rule, or otherwise,4.27 prohibit a credit or discount from a manual premium solely4.28 because it is greater than a certain fixed percentage of the4.29 premium.4.30 Sec. 7. Minnesota Statutes 1994, section 79.55, is amended 4.31 by adding a subdivision to read: 4.32 Subd. 6. [RATING FACTORS.] In determining whether a rate 4.33 filing complies with this section, separate consideration shall 4.34 be given to: (i) past and prospective loss experience within 4.35 this state and outside this state to the extent necessary to 4.36 develop credible rates; (ii) dividends, savings, or unabsorbed 5.1 premium deposits allowed or returned by insurers to their 5.2 policyholders, members, or subscribers; and (iii) a reasonable 5.3 allowance for expense and profit. An allowance for expense 5.4 shall be presumed reasonable if it reflects expenses that are 5.5 22.5 percent greater or less than the average expense for all 5.6 insurers writing workers' compensation insurance in this state. 5.7 An allowance for after-tax profit shall consider anticipated 5.8 investment income from premium receipts net of disbursements and 5.9 from allocated surplus, based on the current five-year United 5.10 States Treasury note yield and an assumed premium to surplus 5.11 ratio of 2.25 to one. The allowance for after-tax profit shall 5.12 be presumed reasonable if the corresponding return on equity 5.13 target is equal to or less than the sum of: (i) the current 5.14 yield on five-year United States Treasury securities; and (ii) 5.15 an appropriate equity risk premium that reflects the risks of 5.16 writing workers' compensation insurance. The risk premium shall 5.17 not be less than the average, since 1926, of the differences in 5.18 return between: (i) the annual return, including dividend 5.19 income, for the Standards and Poors 500 common stock index or 5.20 predecessor index for each year; and (ii) the five-year United 5.21 States Treasury note yield as of the start of the corresponding 5.22 year. Profit and expense allowances not presumed reasonable 5.23 under this subdivision, are reasonable if the circumstances of 5.24 an insurer, the market, or other factors justify them. 5.25 Sec. 8. Minnesota Statutes 1994, section 79.55, is amended 5.26 by adding a subdivision to read: 5.27 Subd. 7. [EXTERNAL FACTORS.] That portion of a rate or 5.28 rating plan related to assessments from the assigned risk plan, 5.29 reinsurance association, guarantee fund, special compensation 5.30 fund, agent commission, premium tax and any other state-mandated 5.31 surcharges shall not cause the rate or rating plan to be 5.32 considered excessive, inadequate, or unfairly discriminatory. 5.33 Sec. 9. Minnesota Statutes 1994, section 79.56, 5.34 subdivision 1, is amended to read: 5.35 Subdivision 1. [ AFTER EFFECTIVE DATEPREFILING OF RATES.] 5.36 Each insurer shall file with the commissioner a complete copy of 6.1 its rates and rating plan, and all changes and amendments 6.2 thereto, within 15 days after theirand such supporting data and 6.3 information that the commissioner may by rule require, at least 6.4 60 days prior to its effective datesdate. An insurer need not6.5 file a rating plan if it uses a rating plan filed by a data6.6 service organization. If an insurer uses a rating plan of a6.7 data service organization but deviates from it, then all6.8 deviations must be filed by the insurer.The commissioner shall 6.9 advise an insurer within 30 days of the filing if its submission 6.10 is not accompanied with such supporting data and information 6.11 that the commissioner by rule may require. The commissioner may 6.12 extend the filing review period and effective date for an 6.13 additional 30 days if an insurer, after having been advised of 6.14 what supporting data and information is necessary to complete 6.15 its filing, does not provide such information within 15 days of 6.16 having been so notified. If any rate or rating plan filing or 6.17 amendment thereto is not disapproved by the commissioner within 6.18 the filing review period, the insurer may implement it. For the 6.19 period January 1, 1995 to December 31, 1995, the filing shall be 6.20 made at least 90 days prior to the effective date and the 6.21 department shall advise an insurer within 60 days of such filing 6.22 if the filing is insufficient under this section. 6.23 Sec. 10. Minnesota Statutes 1994, section 79.56, 6.24 subdivision 3, is amended to read: 6.25 Subd. 3. [PENALTIES.] Any insurer using a rate or a rating 6.26 plan which has not been filed shall be subject to a fine of up 6.27 to $100 for each day the failure to file continues. The 6.28 commissioner may, after a hearing on the record, find that the 6.29 failure is willful. A willful failure to meet filing 6.30 requirements shall be punishable by a fine of up to $500 for 6.31 each day during which a willful failure continues. These 6.32 penalties shall be in addition to any other penalties provided 6.33 by law. Notwithstanding this subdivision, an employer that 6.34 generates $500,000 in annual written workers' compensation 6.35 premium under the rates and rating plan of an insurer before the 6.36 application of any large deductible rating plans, may be written 7.1 by that insurer using rates or rating plans that are not subject 7.2 to disapproval but which have been filed. The $500,000 7.3 threshold shall be increased on January 1, 1996, and on each 7.4 January 1 thereafter by the percentage increase in the statewide 7.5 average weekly wage, to the nearest $1,000. The commissioner 7.6 shall advise insurers licensed to write workers' compensation 7.7 insurance in this state of the annual threshold adjustment. 7.8 Sec. 11. [79.561] [DISAPPROVAL OF RATES OR RATING PLANS.] 7.9 Subdivision 1. [DISAPPROVAL; TIME PERIOD.] The 7.10 commissioner may disapprove a rate and rating plan or amendment 7.11 thereto prior to its effective date, as provided under section 7.12 79.56, subdivision 1, if the commissioner determines that it is 7.13 excessive, inadequate, or unfairly discriminatory. If the 7.14 commissioner disapproves any rate or rating plan filing or 7.15 amendment thereto, the commissioner shall advise the filing 7.16 insurer what rate and rating plan the commissioner has reason to 7.17 believe would be in compliance with section 79.55, and the 7.18 reasons for that determination. An insurer may not implement a 7.19 rate and rating plan or amendment thereto which has been 7.20 disapproved under this subdivision. If the commissioner 7.21 disapproves any rate and rating plan filing or amendment 7.22 thereto, an insurer may use its current rate and rating plan for 7.23 writing any workers' compensation insurance in this state. 7.24 Following any disapproval, the commissioner and insurer may 7.25 reach agreement on a rate or rating plan filing or amendment 7.26 thereto. Notwithstanding any law to the contrary, in such 7.27 cases, the rate or rating plan filing or amendment thereto may 7.28 be implemented by the insurer immediately. 7.29 Subd. 2. [HEARING.] If an insurer's rate or rating plan 7.30 filing or amendment thereto is disapproved under subdivision 1, 7.31 the insurer may request a contested case hearing under chapter 7.32 14. The insurer shall have the burden of proof to justify that 7.33 its rate and rating plan or amendment thereto is in compliance 7.34 with section 79.55. The hearing must be scheduled promptly and 7.35 in no case later than three months from the date of disapproval 7.36 or else the rate and rating plan or amendment thereto shall be 8.1 considered effective and may be implemented by the insurer. A 8.2 determination pursuant to chapter 14 must be made within 90 days 8.3 following the closing of the hearing record. 8.4 Subd. 3. [CONSULTANTS AND COSTS.] The commissioner may 8.5 retain consultants, including a consulting actuary or other 8.6 experts, that the commissioner determines necessary for purposes 8.7 of this chapter. The salary limit set by section 43A.17 does 8.8 not apply to a consulting actuary retained under this 8.9 subdivision. A consulting actuary shall be a fellow in the 8.10 casualty actuarial society and shall have demonstrated 8.11 experience in workers' compensation insurance ratemaking. Any 8.12 individual not so qualified shall not render an opinion or 8.13 testify on actuarial aspects of a filing, including but not 8.14 limited to, data quality, loss development, and trending. The 8.15 costs incurred in retaining any consulting actuaries and experts 8.16 shall be reimbursed by the special compensation fund. 8.17 Sec. 12. [APPROPRIATION.] 8.18 $2,600,000 is appropriated from the special compensation 8.19 fund for the biennium ending June 30, 1997, to the department of 8.20 commerce for the purposes of this article. The complement of 8.21 the department of commerce is increased by 13 positions for the 8.22 purposes of this article. 8.23 Sec. 13. [EFFECTIVE DATE; TRANSITION.] 8.24 This article is effective on January 1, 1995. Rates and 8.25 rating plans in use as of January 1, 1995, may continue to be 8.26 used until such time as an amendment thereto or a new rate or 8.27 rating plan is filed, at which time such submission shall be 8.28 subject to this article. 8.29 Sec. 14. [REPEALER.] 8.30 Minnesota Statutes 1994, sections 79.53, subdivision 2; 8.31 79.54; 79.56, subdivision 2; 79.57; and 79.58, are repealed. 8.32 ARTICLE 2 8.33 Section 1. Minnesota Statutes 1994, section 176.021, 8.34 subdivision 3, is amended to read: 8.35 Subd. 3. [COMPENSATION, COMMENCEMENT OF PAYMENT.] All 8.36 employers shall commence payment of compensation at the time and 9.1 in the manner prescribed by this chapter without the necessity 9.2 of any agreement or any order of the division. Except for 9.3 medical, burial, and other nonperiodic benefits, payments shall 9.4 be made as nearly as possible at the intervals when the wage was 9.5 payable, provided, however, that payments for permanent partial 9.6 disability shall be governed by section 176.101. If doubt 9.7 exists as to the eventual permanent partial disability, payment 9.8 for the economic recovery compensation or impairment 9.9 compensation, whichever is due, pursuant to section 176.101, 9.10 shall be then made when due for the minimum permanent partial 9.11 disability ascertainable, and further payment shall be made upon 9.12 any later ascertainment of greater permanent partial 9.13 disability. Prior to or at the time of commencement of the 9.14 payment of economic recovery compensation or lump sum or9.15 periodic payment ofimpairment compensation, the employee and 9.16 employer shall be furnished with a copy of the medical report 9.17 upon which the payment is based and all other medical reports 9.18 which the insurer has that indicate a permanent partial 9.19 disability rating, together with a statement by the insurer as 9.20 to whether the tendered payment is for minimum permanent partial 9.21 disability or final and eventual disability. After receipt of 9.22 all reports available to the insurer that indicate a permanent 9.23 partial disability rating, the employee shall make available or 9.24 permit the insurer to obtain any medical report that the 9.25 employee has or has knowledge of that contains a permanent 9.26 partial disability rating which the insurer does not already 9.27 have. Economic recovery compensation or impairment compensation 9.28 pursuant to section 176.101 is payable in addition to but not 9.29 concurrently with compensation for temporary total disability 9.30 but is payable pursuant to section 176.101. Impairment 9.31 compensation is payable concurrently and in addition to 9.32 compensation for permanent total disability pursuant to section 9.33 176.101. Economic recovery compensation or impairment 9.34 compensation pursuant to section 176.101 shall be withheld 9.35 pending completion of payment for temporary total disability, 9.36 and no credit shall be taken for payment of economic recovery 10.1 compensation or impairment compensation against liability for 10.2 temporary total or future permanent total disability. Liability 10.3 on the part of an employer or the insurer for disability of a 10.4 temporary total, temporary partial, and permanent total nature 10.5 shall be considered as a continuing product and part of the 10.6 employee's inability to earn or reduction in earning capacity 10.7 due to injury or occupational disease and compensation is 10.8 payable accordingly, subject to section 176.101. Economic 10.9 recovery compensation or impairment compensation is payable for 10.10 functional loss of use or impairment of function, permanent in 10.11 nature, and payment therefore shall be separate, distinct, and 10.12 in addition to payment for any other compensation, subject to 10.13 section 176.101. The right to receive temporary total, 10.14 temporary partial, or permanent total disability payments vests 10.15 in the injured employee or the employee's dependents under this 10.16 chapter or, if none, in the employee's legal heirs at the time 10.17 the disability can be ascertained and the right is not abrogated 10.18 by the employee's death prior to the making of the payment. 10.19 The right to receive economic recovery compensation or 10.20 impairment compensation vests in an injured employee at the time 10.21 the disability can be ascertained provided that the employee 10.22 lives for at least 30 days beyond the date of the injury. Upon 10.23 the death of an employee who is receiving economic recovery 10.24 compensation or impairment compensation, further compensation is 10.25 payable pursuant to section 176.101. Impairment compensation is 10.26 payable under this paragraph if vesting has occurred, the 10.27 employee dies prior to reaching maximum medical improvement, and 10.28 the requirements and conditions under section 176.101, 10.29 subdivision 3e, are not met. 10.30 Disability ratings for permanent partial disability shall 10.31 be based on objective medical evidence. 10.32 Sec. 2. Minnesota Statutes 1994, section 176.021, 10.33 subdivision 3a, is amended to read: 10.34 Subd. 3a. [PERMANENT PARTIAL BENEFITS, PAYMENT.] Payments 10.35 for permanent partial disability as provided in section 176.101, 10.36 subdivision 3, shall be made in the following manner: 11.1 (a) If the employee returns to work, payment shall be made 11.2 by lump sumat the same intervals as temporary total payments 11.3 were made; 11.4 (b) If temporary total payments have ceased, but the 11.5 employee has not returned to work, payment shall be made at the 11.6 same intervals as temporary total payments were made; 11.7 (c) If temporary total disability payments cease because 11.8 the employee is receiving payments for permanent total 11.9 disability or because the employee is retiring or has retired 11.10 from the work force, then payment shall be made by lump sumat 11.11 the same intervals as temporary total payments were made; 11.12 (d) If the employee completes a rehabilitation plan 11.13 pursuant to section 176.102, but the employer does not furnish 11.14 the employee with work the employee can do in a permanently 11.15 partially disabled condition, and the employee is unable to 11.16 procure such work with another employer, then payment shall be 11.17 made by lump sumat the same intervals as temporary total 11.18 payments were made. 11.19 Sec. 3. Minnesota Statutes 1994, section 176.101, 11.20 subdivision 1, is amended to read: 11.21 Subdivision 1. [TEMPORARY TOTAL DISABILITY.] (a) For 11.22 injury producing temporary total disability, the compensation is 11.23 66-2/3 percent of the weekly wage at the time of injury. 11.24 (b) During the year commencing on October 1, 1992, and each11.25 year thereafter,the maximum weekly compensation payable is 105 11.26 percent of the statewide average weekly wage for the period 11.27 ending December 31 of the preceding year. 11.28 (c) During the year commencing on October 1, 1993, the 11.29 maximum weekly compensation payable is 106 percent of the 11.30 statewide average weekly wage for the period ending December 31 11.31 of the preceding year. 11.32 (d) During the year commencing on October 1, 1994, the 11.33 maximum weekly compensation payable is 107 percent of the 11.34 statewide average weekly wage for the period ending December 31 11.35 of the preceding year. 11.36 (e) During the year commending on October 1, 1995, the 12.1 maximum weekly compensation payable is 108 percent of the 12.2 statewide average weekly wage for the period ending December 31 12.3 of the preceding year. 12.4 (f) During the year commencing on October 1, 1996, the 12.5 maximum weekly compensation payable is 109 percent of the 12.6 statewide average weekly wage for the period ending December 31 12.7 of the preceding year. 12.8 (g) During the year commencing on October 1, 1997, and each 12.9 year thereafter, the maximum weekly compensation payable is 110 12.10 percent of the statewide average weekly wage for the period 12.11 ending December 31 of the preceding year. 12.12 (h) The minimum weekly compensation payable is 20 percent 12.13 of the statewide average weekly wage for the period ending 12.14 December 31 of the preceding year or the injured employee's 12.15 actual weekly wage, whichever is less. 12.16 (d)(i) Subject to subdivisions 3a to 3u this compensation 12.17 shall be paid during the period of disability, payment to be 12.18 made at the intervals when the wage was payable, as nearly as 12.19 may be. 12.20 Sec. 4. Minnesota Statutes 1994, section 176.101, 12.21 subdivision 3g, is amended to read: 12.22 Subd. 3g. [ACCEPTANCE OF JOB OFFER.] If the employee 12.23 accepts a job offer described in subdivision 3e and the employee 12.24 begins work at that job, although not necessarily within the 12.25 90-day period specified in that subdivision, the impairment 12.26 compensation shall be paid in a lump sum 30 calendar days after12.27 the employee actually commences work if the employment has not12.28 been substantially interrupted by the injury for any part of the12.29 30 days and the employee is still employed at that job at the12.30 end of the periodat the same rate that temporary total 12.31 compensation was last paid. 12.32 Sec. 5. Minnesota Statutes 1994, section 176.101, 12.33 subdivision 3l, is amended to read: 12.34 Subd. 3l. [FAILURE TO ACCEPT JOB OFFER.] If the employee 12.35 has been offered a job under subdivision 3e and has refused the 12.36 offer, the impairment compensation shall not be paid in a lump13.1 sum butshall be paid in the same interval and amount that 13.2 temporary total compensation was initially paid. This 13.3 compensation shall not be escalated pursuant to section 176.645. 13.4 Temporary total compensation shall cease upon the employee's 13.5 refusal to accept the job offered and no further or additional 13.6 temporary total compensation is payable for that injury. The 13.7 payment of the periodic impairment compensation shall cease when 13.8 the amount the employee is eligible to receive under subdivision 13.9 3b is reached, after which time the employee shall not receive 13.10 additional impairment compensation or any other compensation 13.11 under this chapter unless the employee has a greater permanent 13.12 partial disability than already compensated for. 13.13 Sec. 6. Minnesota Statutes 1994, section 176.101, 13.14 subdivision 3m, is amended to read: 13.15 Subd. 3m. [RETURN TO WORK AFTER REFUSAL OF JOB OFFER.] If 13.16 the employee has refused the job offer under subdivision 3e and 13.17 is receiving periodic impairment compensation and returns to 13.18 work at another job, the employee shall receive the remaining 13.19 impairment compensation due, in a lump sum, 30 days after return13.20 to work if the employment has not been substantially interrupted13.21 by the injury for any part of the 30 days and the employee is13.22 still employed at that job at the end of the periodat the same 13.23 rate that temporary total compensation was last paid. 13.24 Sec. 7. Minnesota Statutes 1994, section 176.101, 13.25 subdivision 3o, is amended to read: 13.26 Subd. 3o. [INABILITY TO RETURN TO WORK.] (a) An employee 13.27 who is permanently totally disabled pursuant to subdivision 5 13.28 shall receive impairment compensation as determined pursuant to 13.29 subdivision 3b. This compensation is payable in addition to 13.30 permanent total compensation pursuant to subdivision 4 and is 13.31 payable concurrently. In this case the impairment compensation 13.32 shall be paid in the same intervals and amount as the permanent 13.33 total compensation was initially paid, and the impairment 13.34 compensation shall cease when the amount due under subdivision 13.35 3b is reached. If this employee returns to work at any job 13.36 during the period the impairment compensation is being paid , the14.1 remaining impairment compensation due shall be paid in a lump14.2 sum 30 days after the employee has returned to work andno 14.3 further temporary total compensation shall be paid. 14.4 (b) If an employee is receiving periodic economic recovery 14.5 compensation and is determined to be permanently totally 14.6 disabled no offset shall be taken against future permanent total 14.7 compensation for the compensation paid and no permanent total 14.8 weekly compensation is payable for any period during which 14.9 economic recovery compensation has already been paid. No 14.10 further economic recovery compensation is payable even if the 14.11 amount due the employee pursuant to subdivision 3a has not yet 14.12 been reached. 14.13 (c) An employee who has received periodic economic recovery 14.14 compensation and who meets the criteria under clause (b) shall 14.15 receive impairment compensation pursuant to clause (a) even if 14.16 the employee has previously received economic recovery 14.17 compensation for that disability. 14.18 (d) Rehabilitation consultation pursuant to section 176.102 14.19 shall be provided to an employee who is permanently totally 14.20 disabled. 14.21 Sec. 8. Minnesota Statutes 1994, section 176.101, 14.22 subdivision 3q, is amended to read: 14.23 Subd. 3q. [METHOD OF PAYMENT OF ECONOMIC RECOVERY 14.24 COMPENSATION.] (a) Economic recovery compensation is payable at 14.25 the same intervals and in the same amount as temporary total 14.26 compensation was initially paid. If the employee returns to14.27 work and the economic recovery compensation is still being paid,14.28 the remaining economic recovery compensation due shall be paid14.29 in a lump sum 30 days after the employee has returned to work if14.30 the employment has not been substantially interrupted by the14.31 injury for any part of the 30 days and the employee is still14.32 employed at that job at the end of the period.14.33 (b) Periodic economic recovery compensation paid to the 14.34 employee shall not be adjusted pursuant to section 176.645. 14.35 Sec. 9. Minnesota Statutes 1994, section 176.101, 14.36 subdivision 4, is amended to read: 15.1 Subd. 4. [PERMANENT TOTAL DISABILITY.] For permanent total 15.2 disability, as defined in subdivision 5, the compensation shall 15.3 be 66-2/3 percent of the daily wage at the time of the injury, 15.4 subject to a maximum weekly compensation equal to the maximum 15.5 weekly compensation for a temporary total disability and a 15.6 minimum weekly compensation equal to the minimum weekly15.7 compensation for a temporary total disability65 percent of the 15.8 statewide average weekly wage. This compensation shall be paid 15.9 during the permanent total disability of the injured employee 15.10 but after a total of $25,000 of weekly compensation has been 15.11 paid, the amount of the weekly compensation benefits being paid 15.12 by the employer shall be reduced by the amount of any disability 15.13 benefits being paid by any government disability benefit program 15.14 if the disability benefits are occasioned by the same injury or 15.15 injuries which give rise to payments under this subdivision. 15.16 This reduction shall also apply to any old age and survivor 15.17 insurance benefits. Payments shall be made at the intervals 15.18 when the wage was payable, as nearly as may be. In case an 15.19 employee who is permanently and totally disabled becomes an 15.20 inmate of a public institution, no compensation shall be payable 15.21 during the period of confinement in the institution, unless 15.22 there is wholly dependent on the employee for support some 15.23 person named in section 176.111, subdivision 1, 2 or 3, in which 15.24 case the compensation provided for in section 176.111, during 15.25 the period of confinement, shall be paid for the benefit of the 15.26 dependent person during dependency. The dependency of this 15.27 person shall be determined as though the employee were deceased. 15.28 Sec. 10. Minnesota Statutes 1994, section 176.101, 15.29 subdivision 5, is amended to read: 15.30 Subd. 5. [DEFINITION.] (a) For purposes of subdivision 4, 15.31 permanent total disability means only: 15.32 (1) the total and permanent loss of the sight of both eyes, 15.33 the loss of both arms at the shoulder, the loss of both legs so 15.34 close to the hips that no effective artificial members can be 15.35 used, complete and permanent paralysis, total and permanent loss 15.36 of mental faculties; or 16.1 (2) any other injury that results in a disability rating 16.2 under this chapter of at least 15 percent of the whole body 16.3 which totally and permanently incapacitates the employee from 16.4 working at an occupation which brings the employee an income. 16.5 (b) For purposes of paragraph (a), clause (2), "totally and 16.6 permanently incapacitated" means that the employee's physical 16.7 disability, in combination with the employee's age, education, 16.8 training, and experience, causes the employee to be unable to 16.9 secure anything more than sporadic employment resulting in an 16.10 insubstantial income. 16.11 Sec. 11. Minnesota Statutes 1994, section 176.645, 16.12 subdivision 1, is amended to read: 16.13 Subdivision 1. [AMOUNT.] For injuries occurring after 16.14 October 1, 1975 for which benefits are payable under section 16.15 176.101, subdivisions 1, 2 and 4, and section 176.111, 16.16 subdivision 5, the total benefits due the employee or any 16.17 dependents shall be adjusted in accordance with this section. 16.18 On October 1, 1981, and thereafter on the anniversary of the 16.19 date of the employee's injury the total benefits due shall be 16.20 adjusted by multiplying the total benefits due prior to each 16.21 adjustment by a fraction, the denominator of which is the 16.22 statewide average weekly wage for December 31, of the year two 16.23 years previous to the adjustment and the numerator of which is 16.24 the statewide average weekly wage for December 31, of the year 16.25 previous to the adjustment. For injuries occurring after 16.26 October 1, 1975, all adjustments provided for in this section 16.27 shall be included in computing any benefit due under this 16.28 section. Any limitations of amounts due for daily or weekly 16.29 compensation under this chapter shall not apply to adjustments 16.30 made under this section. No adjustment increase made on or 16.31 after October 1, 1977, but prior to October 1, 1992,under this 16.32 section shall exceed six percent a year; in those instances 16.33 where the adjustment under the formula of this section would 16.34 exceed this maximum, the increase shall be deemed to be six 16.35 percent. For injuries occurring on or after October 1, 1992, no 16.36 adjustment increase made on or after October 1, 1992,under this 17.1 section shall exceed four percent a year; in those instances 17.2 where the adjustment under the formula of this section would 17.3 exceed this maximum, the increase shall be deemed to be four 17.4 percent. 17.5 Sec. 12. Minnesota Statutes 1994, section 176.66, 17.6 subdivision 11, is amended to read: 17.7 Subd. 11. [AMOUNT OF COMPENSATION.] The compensation for 17.8 an occupational disease is 66-2/3 percent of the employee's 17.9 weekly wage on the date of injury subject to a maximum 17.10 compensation equal to the maximum compensation in effect on the 17.11 date of last exposure. The employee shall be eligible for17.12 supplementary benefits notwithstanding the provisions of section17.13 176.132, after four years have elapsed since the date of last17.14 significant exposure to the hazard of the occupational disease17.15 if that employee's weekly compensation rate is less than the17.16 current supplementary benefit rate.17.17 Sec. 13. [REPEALER.] 17.18 Minnesota Statutes 1994, section 176.132, subdivisions 1 17.19 and 2, are repealed. 17.20 Sec. 14. [EFFECTIVE DATE.] 17.21 Sections 1 to 10, 12, and 13 are effective October 1, 1995. 17.22 Sections 9, 12, and 13 apply to a personal injury, as defined 17.23 under Minnesota Statutes, section 176.011, subdivision 16, 17.24 occurring on or after October 1, 1995. Section 11 is effective 17.25 the day following final enactment and applies retroactively to 17.26 October 1, 1994.