HF 1359

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 07:21pm

A bill for an act
relating to workers' compensation; making various policy and housekeeping
changes; amending Minnesota Statutes 2012, sections 176.102, subdivision 3a;
176.106, subdivision 1; 176.129, subdivision 13; 176.138; 176.183, subdivision
4; 176.245; 176.521.

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

Section 1.

Minnesota Statutes 2012, section 176.102, subdivision 3a, is amended to read:

Subd. 3a.

Disciplinary actions.

The panel has authority to discipline qualified
rehabilitation consultants and vendors and may impose a penalty of up to $3,000 per
violation, payable to the commissioner for deposit in the assigned risk safety account, and
may suspend or revoke certification. Complaints against registered qualified rehabilitation
consultants and vendors shall be made to the commissioner who deleted text begin shall deleted text end new text begin may new text end investigate
deleted text begin all deleted text end complaints. If the investigation indicates a violation of this chapter or rules adopted
under this chapter, the commissioner may initiate a contested case proceeding under the
provisions of chapter 14. In these cases, the rehabilitation review panel shall make the
final decision following receipt of the report of an administrative law judge. The decision
of the panel is appealable to the Workers' Compensation Court of Appeals in the manner
provided by section 176.421. The panel shall continuously study rehabilitation services
and delivery, develop and recommend rehabilitation rules to the commissioner, and assist
the commissioner in accomplishing public education.

The commissioner may appoint alternates for one-year terms to serve as a member
when a member is unavailable. The number of alternates shall not exceed one labor
member, one employer or insurer member, and one member representing a licensed or
registered health care provider, chiropractic, or rehabilitation.

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 2012, section 176.106, subdivision 1, is amended to read:

Subdivision 1.

Scope.

All determinations by the commissioner or compensation
judge pursuant to section 176.102, 176.103, 176.135, or 176.136 shall be in accordance
with the procedures contained in this section. For medical disputes under sections 176.135
and 176.136, the commissioner shall have jurisdiction to hold an administrative conference
and issue decisions and orders under this section if the amount in dispute at the time the
medical request is filed is $7,500 or less. new text begin The $7,500 limit does not apply if the medical
issue to be determined is whether a charge for a service, article, or supply is excessive
under section 176.136, subdivision 1, 1a, 1b, or 1c, and corresponding Minnesota Rules.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to medical disputes filed on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2012, section 176.129, subdivision 13, is amended to read:

Subd. 13.

Employer reports.

new text begin (a) new text end All employers and insurers shall make reports to
the commissioner as required for the proper administration of this section and Minnesota
Statutes 1990, section 176.131, and Minnesota Statutes 1994, section 176.132. Employers
and insurers may not be reimbursed from the special compensation fund for any
periods unless the employer or insurer is up to date with all past due and currently due
assessments, penalties, and reports to the special compensation fund under this section.
The commissioner may allow an offset of the reimbursements due an employer or insurer
pursuant to Minnesota Statutes 1990, section 176.131, and Minnesota Statutes 1994,
section 176.132, against the assessment due under the section new text begin or against any other debt
owed to the special compensation fund by the employer or insurer new text end .

new text begin (b) The special compensation fund shall not reimburse an insolvent insurer for
subsequent injury or supplementary benefits after a declaration of bankruptcy or order of
liquidation or insolvency is issued for the insurer, even if the benefits were paid before the
declaration or order. This does not limit the claim distribution or set-off authority of a
court, trustee, or liquidator under federal bankruptcy law or under chapter 60B or a similar
law in another jurisdiction. For purposes of this paragraph, subsequent injury benefits are
the benefits paid pursuant to Minnesota Statutes 1990, section 176.131, and supplementary
benefits are the benefits paid pursuant to Minnesota Statutes 1994, section 176.132.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to claims for reimbursement filed with the special compensation fund on or
after that date.
new text end

Sec. 4.

Minnesota Statutes 2012, section 176.138, is amended to read:

176.138 MEDICAL DATA; ACCESS.

(a) Notwithstanding any other state laws related to the privacy of medical data or
any private agreements to the contrary, the release in writing, by telephone discussion, or
otherwise of medical data related to a current claim for compensation under this chapter
to the employee, employer, or insurer who are parties to the claim, or to the Department
of Labor and Industry, shall not require prior approval of any party to the claim. This
section does not preclude the release of medical data under section 175.10 or 176.231,
subdivision 9. Requests for pertinent data shall be made, and the date of discussions
with medical providers about medical data shall be confirmed, in writing to the person
or organization that collected or currently possesses the data. Written medical data that
exists at the time the request is made shall be provided by the collector or possessor within
seven working days of receiving the request. Nonwritten medical data may be provided,
but is not required to be provided, by the collector or possessor. In all cases of a request
for the data or discussion with a medical provider about the data, except when it is the
employee who is making the request, the employee shall be sent written notification of the
request by the party requesting the data at the same time the request is made or a written
confirmation of the discussion. This data shall be treated as private data by the party who
requests or receives the data and the party receiving the data shall provide the employee or
the employee's attorney with a copy of all data requested by the requester.

(b) Medical data which is not directly related to a current injury or disability shall
not be released without prior authorization of the employee.

(c) The commissioner may impose a penalty of up to $600 payable to the
commissioner for deposit in the assigned risk safety account against a party who does not
timely release data as required in this section. A party who does not treat this data as
private pursuant to this section is guilty of a misdemeanor. This paragraph applies only to
written medical data which exists at the time the request is made.

(d) Workers' compensation insurers and self-insured employers may, for the sole
purpose of identifying duplicate billings submitted to more than one insurer, disclose to
health insurers, including all insurers writing insurance described in section 60A.06,
subdivision 1, clause (5)(a), nonprofit health service plan corporations subject to chapter
62C, health maintenance organizations subject to chapter 62D, and joint self-insurance
employee health plans subject to chapter 62H, computerized information about dates,
coded items, and charges for medical treatment of employees and other medical billing
information submitted to them by an employee, employer, health care provider, or other
insurer in connection with a current claim for compensation under this chapter, without
prior approval of any party to the claim. The data may not be used by the health insurer
for any other purpose whatsoever and must be destroyed after verification that there has
been no duplicative billing. Any person who is the subject of the data which is used in
a manner not allowed by this paragraph has a cause of action for actual damages and
punitive damages for a minimum of $5,000.

new text begin (e) Medical data collected, stored, used, or disseminated by or filed with the
commissioner in connection with a claim for workers' compensation benefits governed by
this chapter does not constitute genetic information for the purposes of section 13.386.
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. 5.

Minnesota Statutes 2012, section 176.183, subdivision 4, is amended to read:

Subd. 4.

Notice by commissioner; rights of parties.

new text begin (a) new text end If the commissioner
authorizes the special new text begin compensation new text end fund to commence payment without the issuance of
a temporary order, the commissioner shall serve by deleted text begin certified deleted text end new text begin first class new text end mail notice upon
the employer and other interested parties of the intention to commence payment. This
notice shall be served at least ten calendar days before commencing payment and shall
be mailed to the last known address of the deleted text begin parties deleted text end new text begin employer new text end . The notice shall include a
statement that failure of the employer to respond within ten calendar days of the date
of service will be deemed acceptance by the employer of the proposed action by the
deleted text begin commissioner deleted text end new text begin special compensation fund new text end and will be deemed a waiver of defenses the
employer has to deleted text begin a subrogation or indemnity action by the commissioner deleted text end new text begin the special
compensation fund's action to recover amounts specified under subdivision 2 new text end . At any time
prior to final determination of liability, the employer may appear as a party and present
defenses the employer has, whether or not an appearance by the employer has previously
been made in the matter. The deleted text begin commissioner deleted text end new text begin special compensation fund new text end has a cause of
action against the employer to recover deleted text begin compensation paid by the special fund under this
section deleted text end new text begin amounts specified under subdivision 2 new text end .

new text begin (b) The commissioner shall notify the employer by first class mail if the special
compensation fund intends to enter into a settlement agreement with the employee for
the payment of benefits under this section. This notice shall be sent by first class mail to
the last known address of the employer at least 15 calendar days before executing the
settlement agreement, and shall include:
new text end

new text begin (1) a copy of the proposed settlement agreement;
new text end

new text begin (2) a statement that within 15 calendar days the employer must notify the special
compensation fund in writing of its objection to the proposed settlement; and
new text end

new text begin (3) a statement that if the special compensation fund does not receive the employer's
written objection within 15 calendar days, the employer must be deemed to have waived
all defenses to the special compensation fund's claim for amounts specified under
subdivision 2.
new text end

new text begin (c) If a settlement agreement is approved by the commissioner or compensation judge
after the commissioner has provided notice to the employer under paragraph (b), and if the
employer did not provide timely written notification to the special compensation fund of
the employer's objection, then the employer must be deemed to have waived all defenses
to the special compensation fund's claim for amounts specified under subdivision 2.
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. 6.

Minnesota Statutes 2012, section 176.245, is amended to read:

176.245 RECEIPTS FOR PAYMENT OF COMPENSATION, FILING.

An employer shall promptly file with the division receipts for payment of
compensation as may be required by the rules of the division.

The commissioner of the Department of Labor and Industry shall periodically check
its records to determine whether these receipts have been promptly filed, and if not,
shall require the employer to do so. The commissioner may determine deleted text begin , using statistical
methodology similar to Six Sigma, deleted text end the most efficient manner of reviewing or auditing
the records filed under this chapter, including using sampling methodology, to determine
compliance with this chapter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2012, section 176.521, is amended to read:

176.521 SETTLEMENT OF CLAIMS.

Subdivision 1.

Validity.

new text begin (a) new text end An agreement between an employee or an employee's
dependent and the employer or insurer to settle any claim deleted text begin , which is not upon appeal before
the court of appeals, deleted text end for compensation under this chapter is valid where it has been executed
in writing and signed by the parties and intervenors in the matter, and, where one or more
of the parties is not represented by an attorney, the commissioner or a compensation judge
has approved the settlement and made an award thereon. If the matter is upon appeal before
the deleted text begin Court of Appeals or deleted text end district court, the deleted text begin court of appeals or deleted text end district court is the approving
body. An agreement to settle any claim is not valid if a guardian or conservator is required
under section 176.092 and an employee or dependent has no guardian or conservator.

new text begin (b) If the matter is on appeal before the workers' compensation court of appeals, the
proposed settlement shall be submitted for approval to a compensation judge at the Office
of Administrative Hearings. Before the settlement is submitted to the compensation judge,
the parties shall notify the workers' compensation court of appeals and request that it
suspend further action on the appeal pending review of the settlement by the compensation
judge. Within 14 days after the compensation judge's final approval or disapproval of the
settlement, the parties shall notify the workers' compensation court of appeals of the
compensation judge's action and shall request that the appeal be dismissed or reactivated.
new text end

Subd. 2.

Approval.

Settlements shall be approved only if the terms conform with
this chapter.

The commissioner, a compensation judge, deleted text begin the court of appeals, deleted text end and the district court
shall exercise discretion in approving or disapproving a proposed settlement.

The parties to the agreement of settlement have the burden of proving that the
settlement is reasonable, fair, and in conformity with this chapter. A settlement agreement
where both the employee or the employee's dependent and the employer or insurer are
represented by an attorney shall be conclusively presumed to be reasonable, fair, and in
conformity with this chapter except when the settlement purports to be a full, final, and
complete settlement of an employee's right to medical compensation under this chapter
or rehabilitation under section 176.102. A settlement which purports to do so must be
approved by the commissioner deleted text begin , deleted text end new text begin or new text end a compensation judge deleted text begin , or court of appeals deleted text end .

The conclusive presumption in this subdivision is not available in cases involving
an employee or dependent with a guardian or conservator.

The conclusive presumption in this subdivision applies to a settlement agreement
entered into on or after January 15, 1982, whether the injury to which the settlement
applies occurred prior to or on or after January 15, 1982.

Subd. 2a.

Settlements not subject to approval.

When a settled case is not
subject to approval, upon receipt of the stipulation for settlement, the commissioner deleted text begin , deleted text end new text begin or
new text end a compensation judge deleted text begin , or the court of appeals deleted text end shall immediately sign the award and file
it with the commissioner. Payment pursuant to the award shall be made within 14 days
after it is filed with the commissioner. The commissioner may correct mathematical or
clerical errors at any time.

Subd. 3.

Setting aside award upon settlement.

Notwithstanding the provisions of
subdivision 1, 2, or 2a, or any provision in the agreement of settlement to the contrary,
upon the filing of a petition by any party to the settlement, the new text begin workers' compensation
new text end court of appeals may set aside an award made upon a settlement, pursuant to this chapter.
In appropriate cases, the new text begin workers' compensation new text end court of appeals may refer the matter to
the chief administrative law judge for assignment to a compensation judge for hearing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for settlement agreements submitted
for approval on or after July 1, 2013.
new text end