HF 1436

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to workers' compensation; modifying 
  1.3             provisions relating to procedures and benefits; 
  1.4             changing attorney fee calculations; permitting certain 
  1.5             agreements; amending Minnesota Statutes 1994, sections 
  1.6             13.82, subdivision 1; 79.211, subdivision 1; 168.012, 
  1.7             subdivision 1; 175.16; 176.011, subdivision 25; 
  1.8             176.021, subdivisions 3 and 3a; 176.061, subdivision 
  1.9             10; 176.081, subdivisions 1, 7a, and 9; 176.101, 
  1.10            subdivisions 1, 2, 4, 5, 6, 8, and by adding a 
  1.11            subdivision; 176.102, subdivision 9; 176.105, 
  1.12            subdivision 4; 176.106, subdivision 7; 176.111, 
  1.13            subdivisions 6, 7, 8, 12, 14, 15, and 20; 176.135, 
  1.14            subdivision 1; 176.178; 176.179; 176.191, subdivisions 
  1.15            5, 7, 8, and by adding a subdivision; 176.221, 
  1.16            subdivision 6a; 176.238, subdivision 6; 176.645, 
  1.17            subdivision 1; 176.66, subdivision 11; 176.82; and 
  1.18            268.08, subdivision 3; proposing coding for new law in 
  1.19            Minnesota Statutes, chapters 175; and 176; repealing 
  1.20            Minnesota Statutes 1994, sections 175.007; 176.011, 
  1.21            subdivision 26; 176.081, subdivisions 2, 5, 7, and 8; 
  1.22            176.101, subdivisions 3a, 3b, 3c, 3d, 3e, 3f, 3g, 3h, 
  1.23            3i, 3j, 3k, 3l, 3m, 3n, 3o, 3p, 3q, 3r, 3s, 3t, and 
  1.24            3u; 176.132; and 176.133. 
  1.25  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.26                             ARTICLE 1
  1.27     Section 1.  Minnesota Statutes 1994, section 176.011, 
  1.28  subdivision 25, is amended to read: 
  1.29     Subd. 25.  [MAXIMUM MEDICAL IMPROVEMENT.] "Maximum medical 
  1.30  improvement" means the date after which no further significant 
  1.31  recovery from or significant lasting improvement to a personal 
  1.32  injury can reasonably be anticipated, based upon reasonable 
  1.33  medical probability.  Once the date of maximum medical 
  1.34  improvement has been determined, no further determinations of 
  1.35  other dates of maximum medical improvement for that personal 
  2.1   injury is permitted.  The determination that an employee has 
  2.2   reached maximum medical improvement shall not be rendered 
  2.3   ineffective by the worsening of the employee's medical condition 
  2.4   and recovery therefrom. 
  2.5      Sec. 2.  Minnesota Statutes 1994, section 176.101, 
  2.6   subdivision 4, is amended to read: 
  2.7      Subd. 4.  [PERMANENT TOTAL DISABILITY.] For permanent total 
  2.8   disability, as defined in subdivision 5, the compensation shall 
  2.9   be 66-2/3 percent of the daily wage at the time of the injury, 
  2.10  subject to a maximum weekly compensation equal to the maximum 
  2.11  weekly compensation for a temporary total disability and a 
  2.12  minimum weekly compensation equal to the minimum weekly 
  2.13  compensation for a temporary total disability 65 percent of the 
  2.14  statewide average weekly wage.  This compensation shall be paid 
  2.15  during the permanent total disability of the injured employee 
  2.16  but after a total of $25,000 of weekly compensation has been 
  2.17  paid, the amount of the weekly compensation benefits being paid 
  2.18  by the employer shall be reduced by the amount of any disability 
  2.19  benefits being paid by any government disability benefit program 
  2.20  if the disability benefits are occasioned by the same injury or 
  2.21  injuries which give rise to payments under this subdivision.  
  2.22  This reduction shall also apply to any old age and survivor 
  2.23  insurance benefits.  Payments shall be made at the intervals 
  2.24  when the wage was payable, as nearly as may be.  In case an 
  2.25  employee who is permanently and totally disabled becomes an 
  2.26  inmate of a public institution, no compensation shall be payable 
  2.27  during the period of confinement in the institution, unless 
  2.28  there is wholly dependent on the employee for support some 
  2.29  person named in section 176.111, subdivision 1, 2 or 3, in which 
  2.30  case the compensation provided for in section 176.111, during 
  2.31  the period of confinement, shall be paid for the benefit of the 
  2.32  dependent person during dependency.  The dependency of this 
  2.33  person shall be determined as though the employee were deceased. 
  2.34  Permanent total disability ends at retirement.  For purposes of 
  2.35  this subdivision, retirement means the age at which benefits are 
  2.36  payable according to the Social Security Act, Public Law Number 
  3.1   98-21. 
  3.2      Sec. 3.  Minnesota Statutes 1994, section 176.101, 
  3.3   subdivision 5, is amended to read: 
  3.4      Subd. 5.  [DEFINITION.] (a) For purposes of subdivision 4, 
  3.5   permanent total disability means only:  
  3.6      (1) the total and permanent loss of the sight of both eyes, 
  3.7   the loss of both arms at the shoulder, the loss of both legs so 
  3.8   close to the hips that no effective artificial members can be 
  3.9   used, complete and permanent paralysis, total and permanent loss 
  3.10  of mental faculties; or 
  3.11     (2) any other injury that results in a disability rating 
  3.12  under this chapter of at least 15 percent of the whole body 
  3.13  which totally and permanently incapacitates the employee from 
  3.14  working at an occupation which brings the employee an income.  
  3.15     (b) For purposes of paragraph (a), clause (2), "totally and 
  3.16  permanently incapacitated" means that the employee's physical 
  3.17  disability, in combination with the employee's age, education, 
  3.18  training, and experience, causes the employee to be unable to 
  3.19  secure anything more than sporadic employment resulting in an 
  3.20  insubstantial income.  Local labor market conditions may not be 
  3.21  considered in making the total and permanent incapacitation 
  3.22  determination.  
  3.23     Sec. 4.  Minnesota Statutes 1994, section 176.101, 
  3.24  subdivision 8, is amended to read: 
  3.25     Subd. 8.  [RETIREMENT CESSATION OF BENEFITS.] Temporary 
  3.26  total disability payments shall cease at retirement.  
  3.27  "Retirement" means that a preponderance of the evidence supports 
  3.28  a conclusion that an employee has retired.  The subjective 
  3.29  statement of an employee that the employee is not retired is not 
  3.30  sufficient in itself to rebut objective evidence of retirement 
  3.31  but may be considered along with other evidence.  
  3.32     For injuries occurring after January 1, 1984, an employee 
  3.33  who receives social security old age and survivors insurance 
  3.34  retirement benefits under the Social Security Act, Public Law 
  3.35  Number 98-21, is presumed retired from the labor market.  This 
  3.36  presumption is rebuttable by a preponderance of the evidence.  
  4.1      Sec. 5.  Minnesota Statutes 1994, section 176.645, 
  4.2   subdivision 1, is amended to read: 
  4.3      Subdivision 1.  [AMOUNT.] For injuries occurring after 
  4.4   October 1, 1975 for which benefits are payable under section 
  4.5   176.101, subdivisions 1, 2 and 4, and section 176.111, 
  4.6   subdivision 5, the total benefits due the employee or any 
  4.7   dependents shall be adjusted in accordance with this section.  
  4.8   On October 1, 1981, and thereafter on the anniversary of the 
  4.9   date of the employee's injury the total benefits due shall be 
  4.10  adjusted by multiplying the total benefits due prior to each 
  4.11  adjustment by a fraction, the denominator of which is the 
  4.12  statewide average weekly wage for December 31, of the year two 
  4.13  years previous to the adjustment and the numerator of which is 
  4.14  the statewide average weekly wage for December 31, of the year 
  4.15  previous to the adjustment.  For injuries occurring after 
  4.16  October 1, 1975, all adjustments provided for in this section 
  4.17  shall be included in computing any benefit due under this 
  4.18  section.  Any limitations of amounts due for daily or weekly 
  4.19  compensation under this chapter shall not apply to adjustments 
  4.20  made under this section.  No adjustment increase made on or 
  4.21  after October 1, 1977, but prior to October 1, 1992, under this 
  4.22  section shall exceed six percent a year; in those instances 
  4.23  where the adjustment under the formula of this section would 
  4.24  exceed this maximum, the increase shall be deemed to be six 
  4.25  percent.  No adjustment increase made on or after October 1, 
  4.26  1992, under this section shall exceed four percent a year; in 
  4.27  those instances where the adjustment under the formula of this 
  4.28  section would exceed this maximum, the increase shall be deemed 
  4.29  to be four percent.  No adjustment increase shall be made under 
  4.30  this section on or after October 1, 1994, for any injuries 
  4.31  occurring after October 1, 1975.  The workers' compensation 
  4.32  advisory council may consider adjustment increases and make 
  4.33  recommendations to the legislature. 
  4.34     Sec. 6.  Minnesota Statutes 1994, section 176.66, 
  4.35  subdivision 11, is amended to read: 
  4.36     Subd. 11.  [AMOUNT OF COMPENSATION.] The compensation for 
  5.1   an occupational disease is 66-2/3 percent of the employee's 
  5.2   weekly wage on the date of injury subject to a maximum 
  5.3   compensation equal to the maximum compensation in effect on the 
  5.4   date of last exposure.  The employee shall be eligible for 
  5.5   supplementary benefits notwithstanding the provisions of section 
  5.6   176.132, after four years have elapsed since the date of last 
  5.7   significant exposure to the hazard of the occupational disease 
  5.8   if that employee's weekly compensation rate is less than the 
  5.9   current supplementary benefit rate.  
  5.10     Sec. 7.  [REPEALER.] 
  5.11     Minnesota Statutes 1994, section 176.132, is repealed. 
  5.12     Sec. 8.  [EFFECTIVE DATE.] 
  5.13     Sections 1 to 7 are effective October 1, 1995.  Sections 2, 
  5.14  6, and 7 apply to a personal injury, as defined under Minnesota 
  5.15  Statutes, section 176.011, subdivision 16, occurring on or after 
  5.16  October 1, 1991. 
  5.17                             ARTICLE 2
  5.18     Section 1.  Minnesota Statutes 1994, section 13.82, 
  5.19  subdivision 1, is amended to read: 
  5.20     Subdivision 1.  [APPLICATION.] This section shall apply to 
  5.21  agencies which carry on a law enforcement function, including 
  5.22  but not limited to municipal police departments, county sheriff 
  5.23  departments, fire departments, the bureau of criminal 
  5.24  apprehension, the Minnesota state patrol, the board of peace 
  5.25  officer standards and training, and the department of commerce, 
  5.26  and the department of labor and industry fraud investigation 
  5.27  unit.  
  5.28     Sec. 2.  Minnesota Statutes 1994, section 168.012, 
  5.29  subdivision 1, is amended to read: 
  5.30     Subdivision 1.  (a) The following vehicles are exempt from 
  5.31  the provisions of this chapter requiring payment of tax and 
  5.32  registration fees, except as provided in subdivision 1c:  
  5.33     (1) vehicles owned and used solely in the transaction of 
  5.34  official business by representatives of foreign powers, by the 
  5.35  federal government, the state, or any political subdivision; 
  5.36     (2) vehicles owned and used exclusively by educational 
  6.1   institutions and used solely in the transportation of pupils to 
  6.2   and from such institutions; 
  6.3      (3) vehicles used solely in driver education programs at 
  6.4   nonpublic high schools; 
  6.5      (4) vehicles owned by nonprofit charities and used 
  6.6   exclusively to transport disabled persons for educational 
  6.7   purposes; 
  6.8      (5) vehicles owned and used by honorary consul or consul 
  6.9   general of foreign governments; and 
  6.10     (6) ambulances owned by ambulance services licensed under 
  6.11  section 144.802, the general appearance of which is unmistakable.
  6.12     (b) Vehicles owned by the federal government, municipal 
  6.13  fire apparatus, police patrols and ambulances, the general 
  6.14  appearance of which is unmistakable, shall not be required to 
  6.15  register or display number plates.  
  6.16     (c) Unmarked vehicles used in general police work, liquor 
  6.17  investigations, arson investigations, and passenger automobiles, 
  6.18  pickup trucks, and buses owned or operated by the department of 
  6.19  corrections shall be registered and shall display appropriate 
  6.20  license number plates which shall be furnished by the registrar 
  6.21  at cost.  Original and renewal applications for these license 
  6.22  plates authorized for use in general police work and for use by 
  6.23  the department of corrections must be accompanied by a 
  6.24  certification signed by the appropriate chief of police if 
  6.25  issued to a police vehicle, the appropriate sheriff if issued to 
  6.26  a sheriff's vehicle, the commissioner of corrections if issued 
  6.27  to a department of corrections vehicle, or the appropriate 
  6.28  officer in charge if issued to a vehicle of any other law 
  6.29  enforcement agency.  The certification must be on a form 
  6.30  prescribed by the commissioner and state that the vehicle will 
  6.31  be used exclusively for a purpose authorized by this section.  
  6.32     (d) Unmarked vehicles used by the department departments of 
  6.33  revenue and labor and industry, fraud unit, in conducting 
  6.34  seizures or criminal investigations must be registered and must 
  6.35  display passenger vehicle classification license number plates 
  6.36  which shall be furnished at cost by the registrar.  Original and 
  7.1   renewal applications for these passenger vehicle license plates 
  7.2   must be accompanied by a certification signed by the 
  7.3   commissioner of revenue or the commissioner of labor and 
  7.4   industry.  The certification must be on a form prescribed by the 
  7.5   commissioner and state that the vehicles will be used 
  7.6   exclusively for the purposes authorized by this section. 
  7.7      (e) All other motor vehicles shall be registered and 
  7.8   display tax-exempt number plates which shall be furnished by the 
  7.9   registrar at cost, except as provided in subdivision 1c.  All 
  7.10  vehicles required to display tax-exempt number plates shall have 
  7.11  the name of the state department or political subdivision, or 
  7.12  the nonpublic high school operating a driver education program, 
  7.13  on the vehicle plainly displayed on both sides thereof in 
  7.14  letters not less than 2-1/2 inches high and one-half inch wide; 
  7.15  except that each state hospital and institution for the mentally 
  7.16  ill and mentally retarded may have one vehicle without the 
  7.17  required identification on the sides of the vehicle, and county 
  7.18  social service agencies may have vehicles used for child and 
  7.19  vulnerable adult protective services without the required 
  7.20  identification on the sides of the vehicle.  Such identification 
  7.21  shall be in a color giving contrast with that of the part of the 
  7.22  vehicle on which it is placed and shall endure throughout the 
  7.23  term of the registration.  The identification must not be on a 
  7.24  removable plate or placard and shall be kept clean and visible 
  7.25  at all times; except that a removable plate or placard may be 
  7.26  utilized on vehicles leased or loaned to a political subdivision 
  7.27  or to a nonpublic high school driver education program. 
  7.28     Sec. 3.  Minnesota Statutes 1994, section 175.16, is 
  7.29  amended to read: 
  7.30     175.16 [DIVISIONS.] 
  7.31     Subdivision 1.  [ESTABLISHED.] The department of labor and 
  7.32  industry shall consist of the following divisions:  division of 
  7.33  workers' compensation, division of boiler inspection, division 
  7.34  of occupational safety and health, division of statistics, 
  7.35  division of steamfitting standards, division of voluntary 
  7.36  apprenticeship, division of labor standards, and such other 
  8.1   divisions as the commissioner of the department of labor and 
  8.2   industry may deem necessary and establish.  Each division of the 
  8.3   department and persons in charge thereof shall be subject to the 
  8.4   supervision of the commissioner of the department of labor and 
  8.5   industry and, in addition to such duties as are or may be 
  8.6   imposed on them by statute, shall perform such other duties as 
  8.7   may be assigned to them by said commissioner. 
  8.8      Subd. 2.  [FRAUD INVESTIGATION UNIT.] The department of 
  8.9   labor and industry shall contain a fraud investigation unit for 
  8.10  the purposes of investigating fraudulent or other illegal 
  8.11  practices of health care providers, employers, insurers, 
  8.12  attorneys, employees, and others related to workers' 
  8.13  compensation and to investigate other matters under the 
  8.14  jurisdiction of the department. 
  8.15     Sec. 4.  Minnesota Statutes 1994, section 176.178, is 
  8.16  amended to read: 
  8.17     176.178 [FRAUD.] 
  8.18     Subdivision 1.  [INTENT.] Any person who, with intent to 
  8.19  defraud, receives workers' compensation benefits to which the 
  8.20  person is not entitled by knowingly misrepresenting, misstating, 
  8.21  or failing to disclose any material fact is guilty of theft and 
  8.22  shall be sentenced pursuant to section 609.52, subdivision 3. 
  8.23     Subd. 2.  [FORMS.] The text of subdivision 1 shall be 
  8.24  placed on all forms prescribed by the commissioner for claims or 
  8.25  responses to claims for workers' compensation benefits under 
  8.26  this chapter.  The absence of the text does not constitute a 
  8.27  defense against prosecution under subdivision 1.  
  8.28     Sec. 5.  [176.861] [DISCLOSURE OF INFORMATION.] 
  8.29     Subdivision 1.  [INSURANCE INFORMATION.] The commissioner 
  8.30  may, in writing, require an insurance company to release to the 
  8.31  commissioner any or all relevant information or evidence the 
  8.32  commissioner deems important which the company may have in its 
  8.33  possession relating to a workers' compensation claim including 
  8.34  material relating to the investigation of the claim; statements 
  8.35  of any person, and any other evidence relevant to the 
  8.36  investigation. 
  9.1      Subd. 2.  [INFORMATION RELEASED TO AUTHORIZED PERSONS.] If 
  9.2   an insurance company has reason to believe that a claim may be 
  9.3   suspicious, fraudulent, or illegal, the company shall, in 
  9.4   writing, notify the commissioner and provide the commissioner 
  9.5   with all relevant material related to the company's inquiry into 
  9.6   the claim. 
  9.7      Subd. 3.  [GOOD FAITH IMMUNITY.] An insurance company or 
  9.8   its agent acting in its behalf and in good faith who releases 
  9.9   oral or written information under subdivisions 1 and 2 is immune 
  9.10  from civil or criminal liability that might otherwise be 
  9.11  incurred or imposed. 
  9.12     Subd. 4.  [SELF-INSURER; ASSIGNED RISK PLAN.] For the 
  9.13  purposes of this section "insurance company" includes a 
  9.14  self-insurer and the assigned risk plan and their agents. 
  9.15                             ARTICLE 3
  9.16     Section 1.  [175.0071] [WORKERS' COMPENSATION ADVISORY 
  9.17  COUNCIL.] 
  9.18     Subdivision 1.  [COUNCIL ON WORKERS' COMPENSATION.] There 
  9.19  is created in the department of labor and industry a council on 
  9.20  workers' compensation appointed by the commissioner of labor and 
  9.21  industry to consist of a designated employee of the department 
  9.22  of labor and industry as chair, five representatives of 
  9.23  employers, and five representatives of employees.  No person 
  9.24  registered as a lobbyist pursuant to chapter 10A shall be 
  9.25  appointed to or serve on the council.  The commissioner shall 
  9.26  also appoint three representatives of insurers authorized to do 
  9.27  a workers' compensation insurance business in this state as 
  9.28  nonvoting members of the council. 
  9.29     Subd. 2.  [COUNCIL RECOMMENDATIONS.] The council on 
  9.30  workers' compensation shall advise the department in carrying 
  9.31  out the purposes of chapter 176.  The council shall submit its 
  9.32  recommendations with respect to amendments to chapter 176 to 
  9.33  each session of the legislature and report its views upon any 
  9.34  pending bill relating to chapter 176 to the proper legislative 
  9.35  committee.  The council shall from time to time evaluate the 
  9.36  statutory maximum compensation rate in section 176.101, 
 10.1   subdivision 1, to determine whether the rate is appropriate 
 10.2   considering the change in economic conditions since the rate was 
 10.3   last changed and shall recommend to the legislature any change 
 10.4   in the rate endorsed by the council.  No law amending the 
 10.5   provisions of chapter 176 shall be enacted without the 
 10.6   endorsement of the council.  At the request of the chairs of the 
 10.7   senate and house committees on having jurisdiction over workers' 
 10.8   compensation matters, the department shall schedule a meeting of 
 10.9   the council with the members of the committees to review and 
 10.10  discuss matters of legislative concern arising under chapter 176.
 10.11     Sec. 2.  Minnesota Statutes 1994, section 176.021, 
 10.12  subdivision 3, is amended to read: 
 10.13     Subd. 3.  [COMPENSATION, COMMENCEMENT OF PAYMENT.] All 
 10.14  employers shall commence payment of compensation at the time and 
 10.15  in the manner prescribed by this chapter without the necessity 
 10.16  of any agreement or any order of the division.  Except for 
 10.17  medical, burial, and other nonperiodic benefits, payments shall 
 10.18  be made as nearly as possible at the intervals when the wage was 
 10.19  payable, provided, however, that payments for permanent partial 
 10.20  disability shall be governed by section 176.101.  If doubt 
 10.21  exists as to the eventual permanent partial disability, payment 
 10.22  for the economic recovery compensation or impairment 
 10.23  compensation, whichever is due, pursuant to section 176.101, 
 10.24  shall be then made when due for the minimum permanent partial 
 10.25  disability ascertainable, and further payment shall be made upon 
 10.26  any later ascertainment of greater permanent partial 
 10.27  disability.  Prior to or at the time of commencement of the 
 10.28  payment of economic recovery compensation or lump sum or 
 10.29  periodic payment of impairment permanent partial compensation, 
 10.30  the employee and employer shall be furnished with a copy of the 
 10.31  medical report upon which the payment is based and all other 
 10.32  medical reports which the insurer has that indicate a permanent 
 10.33  partial disability rating, together with a statement by the 
 10.34  insurer as to whether the tendered payment is for minimum 
 10.35  permanent partial disability or final and eventual disability.  
 10.36  After receipt of all reports available to the insurer that 
 11.1   indicate a permanent partial disability rating, the employee 
 11.2   shall make available or permit the insurer to obtain any medical 
 11.3   report that the employee has or has knowledge of that contains a 
 11.4   permanent partial disability rating which the insurer does not 
 11.5   already have.  Economic recovery compensation or impairment 
 11.6   Permanent partial compensation pursuant to section 176.101 is 
 11.7   payable in addition to but not concurrently with compensation 
 11.8   for temporary total disability but is payable pursuant to 
 11.9   section 176.101.  Impairment Permanent partial compensation is 
 11.10  payable concurrently and in addition to compensation for 
 11.11  permanent total disability pursuant to section 
 11.12  176.101.  Economic recovery compensation or impairment 
 11.13  compensation Permanent partial compensation pursuant to section 
 11.14  176.101 shall be withheld pending completion of payment for 
 11.15  temporary total disability, and no credit shall be taken for 
 11.16  payment of economic recovery compensation or 
 11.17  impairment permanent partial compensation against liability for 
 11.18  temporary total or future permanent total disability.  Liability 
 11.19  on the part of an employer or the insurer for disability of a 
 11.20  temporary total, temporary partial, and permanent total nature 
 11.21  shall be considered as a continuing product and part of the 
 11.22  employee's inability to earn or reduction in earning capacity 
 11.23  due to injury or occupational disease and compensation is 
 11.24  payable accordingly, subject to section 176.101.  Economic 
 11.25  recovery compensation or impairment Permanent partial 
 11.26  compensation is payable for functional loss of use or impairment 
 11.27  of function, permanent in nature, and payment therefore shall be 
 11.28  separate, distinct, and in addition to payment for any other 
 11.29  compensation, subject to section 176.101.  The right to receive 
 11.30  temporary total, temporary partial, or permanent total 
 11.31  disability payments vests in the injured employee or the 
 11.32  employee's dependents under this chapter or, if none, in the 
 11.33  employee's legal heirs at the time the disability can be 
 11.34  ascertained and the right is not abrogated by the employee's 
 11.35  death prior to the making of the payment. 
 11.36     The right to receive economic recovery permanent partial 
 12.1   compensation or impairment compensation vests in an injured 
 12.2   employee at the time the disability can be ascertained provided 
 12.3   that the employee lives for at least 30 days beyond the date of 
 12.4   the injury.  Upon the death of an employee who is receiving 
 12.5   economic recovery compensation or impairment compensation, 
 12.6   further compensation is payable pursuant to section 176.101.  
 12.7   Impairment compensation is payable under this paragraph if 
 12.8   vesting has occurred, the employee dies prior to reaching 
 12.9   maximum medical improvement, and the requirements and conditions 
 12.10  under section 176.101, subdivision 3e, are not met.  
 12.11     Disability ratings for permanent partial disability shall 
 12.12  be based on objective medical evidence.  
 12.13     Sec. 3.  Minnesota Statutes 1994, section 176.021, 
 12.14  subdivision 3a, is amended to read: 
 12.15     Subd. 3a.  [PERMANENT PARTIAL BENEFITS, PAYMENT.] Payments 
 12.16  for permanent partial disability as provided in section 176.101, 
 12.17  subdivision 3 2a, shall be made in the following manner:  
 12.18     (a) If the employee returns to work, payment shall be made 
 12.19  by lump sum at the same intervals as temporary total payments 
 12.20  were made; 
 12.21     (b) If temporary total payments have ceased, but the 
 12.22  employee has not returned to work, payment shall be made at the 
 12.23  same intervals as temporary total payments were made; 
 12.24     (c) If temporary total disability payments cease because 
 12.25  the employee is receiving payments for permanent total 
 12.26  disability or because the employee is retiring or has retired 
 12.27  from the work force, then payment shall be made by lump sum at 
 12.28  the same intervals as temporary total payments were made; 
 12.29     (d) If the employee completes a rehabilitation plan 
 12.30  pursuant to section 176.102, but the employer does not furnish 
 12.31  the employee with work the employee can do in a permanently 
 12.32  partially disabled condition, and the employee is unable to 
 12.33  procure such work with another employer, then payment shall be 
 12.34  made by lump sum at the same intervals as temporary total 
 12.35  payments were made.  
 12.36     Sec. 4.  Minnesota Statutes 1994, section 176.061, 
 13.1   subdivision 10, is amended to read: 
 13.2      Subd. 10.  [INDEMNITY.] Notwithstanding the provisions of 
 13.3   chapter 65B or any other law to the contrary, an employer has a 
 13.4   right of indemnity for any compensation paid or payable pursuant 
 13.5   to this chapter, including temporary total compensation, 
 13.6   temporary partial compensation, permanent partial disability, 
 13.7   economic recovery compensation, impairment compensation, medical 
 13.8   compensation, rehabilitation, death, and permanent total 
 13.9   compensation.  
 13.10     Sec. 5.  Minnesota Statutes 1994, section 176.101, 
 13.11  subdivision 1, is amended to read: 
 13.12     Subdivision 1.  [TEMPORARY TOTAL DISABILITY.] (a) For 
 13.13  injury producing temporary total disability, the compensation is 
 13.14  66-2/3 percent of the weekly wage at the time of injury. 
 13.15     (b) On and after October 1, 1994, the maximum weekly 
 13.16  compensation payable shall be as follows: 
 13.17     (1) During the year commencing on October 1, 1992 1995, and 
 13.18  each year thereafter, the maximum weekly compensation payable is 
 13.19  105 percent of the statewide average weekly wage for the period 
 13.20  ending December 31 of the preceding year, 1994. 
 13.21     (2) The workers' compensation advisory council may consider 
 13.22  adjustment increases and make recommendations to the legislature.
 13.23     (c) The minimum weekly compensation payable is 20 percent 
 13.24  of the statewide average weekly wage for the period ending 
 13.25  December 31 of the preceding year, 1994, or the injured 
 13.26  employee's actual weekly wage, whichever is less.  
 13.27     (d) Subject to subdivisions 3a to 3u this Temporary total 
 13.28  compensation shall be paid during the period of disability, 
 13.29  payment to be made at the intervals when the wage was payable, 
 13.30  as nearly as may be. and shall cease whenever any one of the 
 13.31  following occurs: 
 13.32     (1) the employee returns to work; 
 13.33     (2) the employee withdraws from the labor market; 
 13.34     (3) the disability ends and the employee fails to 
 13.35  diligently search for appropriate work; 
 13.36     (4) the employee refuses an offer of work that is 
 14.1   consistent with a plan of rehabilitation filed with the 
 14.2   commissioner which meets the requirements of section 176.102, 
 14.3   subdivision 4, or, if no plan has been filed, the employee 
 14.4   refuses an offer of gainful employment, paying at least 85 
 14.5   percent of the employees preinjury wages, that the employee can 
 14.6   do in the employee's physical condition; or 
 14.7      (5) 90 days pass after the employee has reached maximum 
 14.8   medical improvement, except as provided in section 176.102, 
 14.9   subdivision 11, paragraph (b). 
 14.10     (e) For purposes of this subdivision, the 90-day period 
 14.11  after maximum medical improvement commences on the earlier of: 
 14.12     (1) the date that the employee receives a written medical 
 14.13  report indicating that the employee has reached maximum medical 
 14.14  improvement; or 
 14.15     (2) the date that the employer or insurer serves the report 
 14.16  on the employee and the employee's attorney, if any. 
 14.17     (f) Once temporary total disability compensation has ceased 
 14.18  under paragraph (d), clause (1), (2), or (3), it may only be 
 14.19  recommenced prior to 90 days after maximum medical improvement 
 14.20  and only as follows: 
 14.21     (1) if temporary total disability compensation ceased under 
 14.22  paragraph (d), clause (1), it may be recommenced if the employee 
 14.23  is laid off or terminated within one year of employment for 
 14.24  reasons other than misconduct or is medically unable to continue 
 14.25  at the job; 
 14.26     (2) if temporary total disability compensation ceased under 
 14.27  paragraph (d), clause (2), but the employee subsequently 
 14.28  returned to work, it may be recommenced in accordance with 
 14.29  clause (1); or 
 14.30     (3) if temporary total disability compensation ceased under 
 14.31  paragraph (d), clause (3), it may be recommenced if the employee 
 14.32  begins diligently searching for appropriate work.  Temporary 
 14.33  total disability compensation recommenced under this paragraph 
 14.34  (f) is subject to cessation under paragraph (d). 
 14.35     Recommenced temporary total disability compensation may not 
 14.36  be paid beyond 90 days after the employee reaches maximum 
 15.1   medical improvement, except as provided under section 176.102, 
 15.2   subdivision 11, paragraph (b). 
 15.3      (g) Once temporary total disability compensation has ceased 
 15.4   under paragraph (d), clauses (4) and (5), it may not be 
 15.5   recommenced at a later date except as provided under section 
 15.6   176.102, subdivision 11, paragraph (b). 
 15.7      Sec. 6.  Minnesota Statutes 1994, section 176.101, 
 15.8   subdivision 2, is amended to read: 
 15.9      Subd. 2.  [TEMPORARY PARTIAL DISABILITY.] (a) In all cases 
 15.10  of temporary partial disability the compensation shall be 66-2/3 
 15.11  percent of the difference between the weekly wage of the 
 15.12  employee at the time of injury and the wage the employee is able 
 15.13  to earn in the employee's partially disabled condition.  This 
 15.14  compensation shall be paid during the period of disability 
 15.15  except as provided in this section, payment to be made at the 
 15.16  intervals when the wage was payable, as nearly as may be, and 
 15.17  subject to the maximum rate for temporary total compensation.  
 15.18     (b) Except as provided under subdivision 3k, Temporary 
 15.19  partial compensation may be paid only while the employee is 
 15.20  employed, earning less than the employee's weekly wage at the 
 15.21  time of the injury, and the reduced wage the employee is able to 
 15.22  earn in the employee's partially disabled condition is due to 
 15.23  the injury.  Except as provided in section 176.102, subdivision 
 15.24  11, paragraph (b), temporary partial compensation may not be 
 15.25  paid for more than 225 weeks, or after 450 weeks after the date 
 15.26  of injury, whichever occurs first.  
 15.27     (c) Temporary partial compensation must be reduced to the 
 15.28  extent that the wage the employee is able to earn in the 
 15.29  employee's partially disabled condition plus the temporary 
 15.30  partial disability payment otherwise payable under this 
 15.31  subdivision exceeds 500 percent of the statewide average weekly 
 15.32  wage. 
 15.33     Sec. 7.  Minnesota Statutes 1994, section 176.101, is 
 15.34  amended by adding a subdivision to read: 
 15.35     Subd. 2a.  [PERMANENT PARTIAL DISABILITY.] (a) Compensation 
 15.36  for permanent partial disability is as provided in this 
 16.1   subdivision.  Permanent partial disability must be rated as a 
 16.2   percentage of the whole body in accordance with rules adopted by 
 16.3   the commissioner under section 176.105.  The percentage 
 16.4   determined pursuant to the rules must be multiplied by the 
 16.5   corresponding amount in the following table: 
 16.6         Impairment rating                 Amount
 16.7             (percent)
 16.8               0-5                         $ 65,000
 16.9               6-10                          67,500
 16.10             11-15                          70,000
 16.11             16-20                          72,500
 16.12             21-25                          75,000
 16.13             26-30                          80,000
 16.14             31-35                          90,000
 16.15             36-40                         100,000
 16.16             41-45                         110,000
 16.17             46-50                         120,000
 16.18             51-55                         140,000
 16.19             56-60                         160,000
 16.20             61-65                         200,000
 16.21             66-70                         250,000
 16.22             71-75                         300,000
 16.23             76-80                         350,000
 16.24             81-85                         400,000
 16.25             86-90                         450,000
 16.26             91-95                         500,000
 16.27             96-100                        600,000
 16.28  An employee may not receive compensation for more than a 100 
 16.29  percent disability of the whole body, even if the employee 
 16.30  sustains disability to two or more body parts. 
 16.31     (b) Permanent partial disability is payable upon cessation 
 16.32  of temporary total disability under subdivision 1.  The 
 16.33  compensation is payable in installments at the same intervals 
 16.34  and in the same amount as the employee's temporary total 
 16.35  disability rate on the date of injury.  Permanent partial 
 16.36  disability is not payable while temporary total compensation is 
 17.1   being paid.  Permanent partial disability is payable to 
 17.2   permanently totally disabled employees in installments at the 
 17.3   same intervals and the same amount as the employee's permanent 
 17.4   total disability rate on the date of injury commencing at the 
 17.5   time the disability can be ascertained. 
 17.6      Sec. 8.  Minnesota Statutes 1994, section 176.101, 
 17.7   subdivision 6, is amended to read: 
 17.8      Subd. 6.  [MINORS; APPRENTICES.] (a) If any employee 
 17.9   entitled to the benefits of this chapter is an apprentice of any 
 17.10  age and sustains a personal injury arising out of and in the 
 17.11  course of employment resulting in permanent total or a 
 17.12  compensable permanent partial disability, for the purpose of 
 17.13  computing the compensation to which the employee is entitled for 
 17.14  the injury, the compensation rate for temporary total, temporary 
 17.15  partial, a or permanent total disability or economic recovery 
 17.16  compensation shall be the maximum rate for temporary total 
 17.17  disability under subdivision 1. 
 17.18     (b) If any employee entitled to the benefits of this 
 17.19  chapter is a minor and sustains a personal injury arising out of 
 17.20  and in the course of employment resulting in permanent total 
 17.21  disability, for the purpose of computing the compensation to 
 17.22  which the employee is entitled for the injury, the compensation 
 17.23  rate for a permanent total disability shall be the maximum rate 
 17.24  for temporary total disability under subdivision 1. 
 17.25     Sec. 9.  Minnesota Statutes 1994, section 176.102, 
 17.26  subdivision 9, is amended to read: 
 17.27     Subd. 9.  [PLAN; COSTS.] (a) An employer is liable for the 
 17.28  following rehabilitation expenses under this section:  
 17.29     (1) Cost of rehabilitation evaluation and preparation of a 
 17.30  plan; 
 17.31     (2) Cost of all rehabilitation services and supplies 
 17.32  necessary for implementation of the plan; 
 17.33     (3) Reasonable cost of tuition, books, travel, and 
 17.34  custodial day care; and, in addition, reasonable costs of board 
 17.35  and lodging when rehabilitation requires residence away from the 
 17.36  employee's customary residence; 
 18.1      (4) Reasonable costs of travel and custodial day care 
 18.2   during the job interview process; 
 18.3      (5) Reasonable cost for moving expenses of the employee and 
 18.4   family if a job is found in a geographic area beyond reasonable 
 18.5   commuting distance after a diligent search within the present 
 18.6   community.  Relocation shall not be paid more than once during 
 18.7   any rehabilitation program, and relocation shall not be required 
 18.8   if the new job is located within the same standard metropolitan 
 18.9   statistical area as the employee's job at the time of injury.  
 18.10  An employee shall not be required to relocate and a refusal to 
 18.11  relocate shall not result in a suspension or termination of 
 18.12  compensation under this chapter; and 
 18.13     (6) (5) Any other expense agreed to be paid.  
 18.14     (b) Charges for services provided by a rehabilitation 
 18.15  consultant or vendor must be submitted on a billing form 
 18.16  prescribed by the commissioner.  No payment for the services 
 18.17  shall be made until the charges are submitted on the prescribed 
 18.18  form. 
 18.19     (c) Except as provided in this paragraph, an employer is 
 18.20  not liable for charges for services provided by a rehabilitation 
 18.21  consultant or vendor unless the employer or its insurer receives 
 18.22  a bill for those services within 45 days of the provision of the 
 18.23  services.  The commissioner or a compensation judge may order 
 18.24  payment for charges not timely billed under this paragraph if 
 18.25  the rehabilitation consultant or vendor can prove that the 
 18.26  failure to submit the bill as required by this paragraph was due 
 18.27  to circumstances beyond the control of the rehabilitation 
 18.28  consultant or vendor.  A rehabilitation consultant or vendor may 
 18.29  not collect payment from any other person, including the 
 18.30  employee, for bills that an employer is relieved from liability 
 18.31  for paying under this paragraph. 
 18.32     Sec. 10.  Minnesota Statutes 1994, section 176.105, 
 18.33  subdivision 4, is amended to read: 
 18.34     Subd. 4.  [LEGISLATIVE INTENT; RULES; LOSS OF MORE THAN ONE 
 18.35  BODY PART.] (a) For the purpose of establishing a disability 
 18.36  schedule pursuant to clause (b), the legislature declares its 
 19.1   intent that the commissioner establish a disability schedule 
 19.2   which, assuming the same number and distribution of severity of 
 19.3   injuries, the aggregate total of impairment compensation and 
 19.4   economic recovery compensation benefits under section 176.101, 
 19.5   subdivisions 3a to 3u be approximately equal to the total 
 19.6   aggregate amount payable for permanent partial disabilities 
 19.7   under section 176.101, subdivision 3, provided, however, that 
 19.8   awards for specific injuries under the proposed schedule need 
 19.9   not be the same as they were for the same injuries under the 
 19.10  schedule pursuant to section 176.101, subdivision 3.  The 
 19.11  schedule shall be determined by sound actuarial evaluation and 
 19.12  shall be based on the benefit level which exists on January 1, 
 19.13  1983.  
 19.14     (b) The commissioner shall by rulemaking adopt procedures 
 19.15  setting forth rules for the evaluation and rating of functional 
 19.16  disability and the schedule for permanent partial disability and 
 19.17  to determine the percentage of loss of function of a part of the 
 19.18  body based on the body as a whole, including internal organs, 
 19.19  described in section 176.101, subdivision 3, and any other body 
 19.20  part not listed in section 176.101, subdivision 3, which the 
 19.21  commissioner deems appropriate.  
 19.22     The rules shall promote objectivity and consistency in the 
 19.23  evaluation of permanent functional impairment due to personal 
 19.24  injury and in the assignment of a numerical rating to the 
 19.25  functional impairment.  
 19.26     Prior to adoption of rules the commissioner shall conduct 
 19.27  an analysis of the current permanent partial disability schedule 
 19.28  for the purpose of determining the number and distribution of 
 19.29  permanent partial disabilities and the average compensation for 
 19.30  various permanent partial disabilities.  The commissioner shall 
 19.31  consider setting the compensation under the proposed schedule 
 19.32  for the most serious conditions higher in comparison to the 
 19.33  current schedule and shall consider decreasing awards for minor 
 19.34  conditions in comparison to the current schedule.  
 19.35     The commissioner may consider, among other factors, and 
 19.36  shall not be limited to the following factors in developing 
 20.1   rules for the evaluation and rating of functional disability and 
 20.2   the schedule for permanent partial disability benefits:  
 20.3      (1) the workability and simplicity of the procedures with 
 20.4   respect to the evaluation of functional disability; 
 20.5      (2) the consistency of the procedures with accepted medical 
 20.6   standards; 
 20.7      (3) rules, guidelines, and schedules that exist in other 
 20.8   states that are related to the evaluation of permanent partial 
 20.9   disability or to a schedule of benefits for functional 
 20.10  disability provided that the commissioner is not bound by the 
 20.11  degree of disability in these sources but shall adjust the 
 20.12  relative degree of disability to conform to the expressed intent 
 20.13  of clause (a) this section; 
 20.14     (4) rules, guidelines, and schedules that have been 
 20.15  developed by associations of health care providers or 
 20.16  organizations provided that the commissioner is not bound by the 
 20.17  degree of disability in these sources but shall adjust the 
 20.18  relative degree of disability to conform to the expressed intent 
 20.19  of clause (a) this section; 
 20.20     (5) the effect the rules may have on reducing litigation; 
 20.21     (6) the treatment of preexisting disabilities with respect 
 20.22  to the evaluation of permanent functional disability provided 
 20.23  that any preexisting disabilities must be objectively determined 
 20.24  by medical evidence; and 
 20.25     (7) symptomatology and loss of function and use of the 
 20.26  injured member.  
 20.27     The factors in paragraphs (1) to (7) shall not be used in 
 20.28  any individual or specific workers' compensation claim under 
 20.29  this chapter but shall be used only in the adoption of rules 
 20.30  pursuant to this section.  
 20.31     Nothing listed in paragraphs (1) to (7) shall be used to 
 20.32  dispute or challenge a disability rating given to a part of the 
 20.33  body so long as the whole schedule conforms with the expressed 
 20.34  intent of clause (a) this section. 
 20.35     (c) If an employee suffers a permanent functional 
 20.36  disability of more than one body part due to a personal injury 
 21.1   incurred in a single occurrence, the percent of the whole body 
 21.2   which is permanently partially disabled shall be determined by 
 21.3   the following formula so as to ensure that the percentage for 
 21.4   all functional disability combined does not exceed the total for 
 21.5   the whole body:  
 21.6                            A + B (1 - A) 
 21.7      where:  A is the greater percentage whole body loss of the 
 21.8   first body part; and B is the lesser percentage whole body loss 
 21.9   otherwise payable for the second body part.  A + B (1-A) is 
 21.10  equivalent to A + B - AB.  
 21.11     For permanent partial disabilities to three body parts due 
 21.12  to a single occurrence or as the result of an occupational 
 21.13  disease, the above formula shall be applied, providing that A 
 21.14  equals the result obtained from application of the formula to 
 21.15  the first two body parts and B equals the percentage for the 
 21.16  third body part.  For permanent partial disability to four or 
 21.17  more body parts incurred as described above, A equals the result 
 21.18  obtained from the prior application of the formula, and B equals 
 21.19  the percentage for the fourth body part or more in arithmetic 
 21.20  progressions. 
 21.21     Sec. 11.  Minnesota Statutes 1994, section 176.106, 
 21.22  subdivision 7, is amended to read: 
 21.23     Subd. 7.  [REQUEST FOR HEARING.] Any party aggrieved by the 
 21.24  decision of the commissioner may request a formal hearing by 
 21.25  filing the request with the commissioner no later than 30 days 
 21.26  after the decision, except that a decision of the commissioner 
 21.27  regarding a claim for a medical benefit of $500 or less is 
 21.28  final.  The request shall be referred to the office of 
 21.29  administrative hearings for a de novo hearing before a 
 21.30  compensation judge.  The commissioner shall refer a timely 
 21.31  request to the office of administrative hearings within five 
 21.32  working days after filing of the request and the hearing at the 
 21.33  office of administrative hearings must be held on the first date 
 21.34  that all parties are available but not later than 60 days after 
 21.35  the office of administrative hearings receives the matter. 
 21.36  Following the hearing, the compensation judge must issue the 
 22.1   decision within 30 days.  The decision of the compensation judge 
 22.2   is appealable pursuant to section 176.421. 
 22.3      Sec. 12.  Minnesota Statutes 1994, section 176.179, is 
 22.4   amended to read: 
 22.5      176.179 [RECOVERY OF OVERPAYMENTS.] 
 22.6      Notwithstanding section 176.521, subdivision 3, or any 
 22.7   other provision of this chapter to the contrary, except as 
 22.8   provided in this section, no lump sum or weekly payment, or 
 22.9   settlement, which is voluntarily paid to an injured employee or 
 22.10  the survivors of a deceased employee in apparent or seeming 
 22.11  accordance with the provisions of this chapter by an employer or 
 22.12  insurer, or is paid pursuant to an order of the workers' 
 22.13  compensation division, a compensation judge, or court of appeals 
 22.14  relative to a claim by an injured employee or the employee's 
 22.15  survivors, and received in good faith by the employee or the 
 22.16  employee's survivors shall be refunded to the paying employer or 
 22.17  insurer in the event that it is subsequently determined that the 
 22.18  payment was made under a mistake in fact or law by the employer 
 22.19  or insurer.  When the payments have been made to a person who is 
 22.20  entitled to receive further payments of compensation for the 
 22.21  same injury, the mistaken compensation may be taken as a full 
 22.22  credit against future lump sum benefit entitlement and as a 
 22.23  partial credit against future weekly periodic benefits.  The 
 22.24  credit applied against further payments of temporary total 
 22.25  disability, temporary partial disability, permanent partial 
 22.26  disability, permanent total disability, retraining benefits, 
 22.27  death benefits, or weekly payments of economic recovery or 
 22.28  impairment compensation shall not exceed 20 percent of the 
 22.29  amount that would otherwise be payable. 
 22.30     A credit may not be applied against medical expenses due or 
 22.31  payable.  
 22.32     Where the commissioner or compensation judge determines 
 22.33  that the mistaken compensation was not received in good faith, 
 22.34  the commissioner or compensation judge may order reimbursement 
 22.35  of the compensation.  For purposes of this section, a payment is 
 22.36  not received in good faith if it is obtained through fraud, or 
 23.1   if the employee knew that the compensation was paid under 
 23.2   mistake of fact or law, and the employee has not refunded the 
 23.3   mistaken compensation. 
 23.4      Sec. 13.  Minnesota Statutes 1994, section 176.221, 
 23.5   subdivision 6a, is amended to read: 
 23.6      Subd. 6a.  [MEDICAL, REHABILITATION, ECONOMIC RECOVERY, AND 
 23.7   IMPAIRMENT AND PERMANENT PARTIAL COMPENSATION.] The penalties 
 23.8   provided by this section apply in cases where payment for 
 23.9   treatment under section 176.135, rehabilitation expenses under 
 23.10  section 176.102, subdivisions 9 and 11, economic recovery 
 23.11  compensation or impairment compensation or permanent partial 
 23.12  compensation are not made in a timely manner as required by law 
 23.13  or by rule adopted by the commissioner.  
 23.14     Sec. 14.  Minnesota Statutes 1994, section 176.238, 
 23.15  subdivision 6, is amended to read: 
 23.16     Subd. 6.  [EXPEDITED HEARING BEFORE A COMPENSATION JUDGE.] 
 23.17  A hearing before a compensation judge shall be held within 30 60 
 23.18  calendar days after the office receives the file from the 
 23.19  commissioner if:  
 23.20     (a) an objection to discontinuance has been filed under 
 23.21  subdivision 4 within 60 calendar days after the notice of 
 23.22  discontinuance was filed and where no administrative conference 
 23.23  has been held; 
 23.24     (b) an objection to discontinuance has been filed under 
 23.25  subdivision 4 within 60 calendar days after the commissioner's 
 23.26  decision under this section has been issued; 
 23.27     (c) a petition to discontinue has been filed by the insurer 
 23.28  in lieu of filing a notice of discontinuance; or 
 23.29     (d) a petition to discontinue has been filed within 60 
 23.30  calendar days after the commissioner's decision under this 
 23.31  section has been issued.  
 23.32     If the petition or objection is filed later than the 
 23.33  deadlines listed above, the expedited procedures in this section 
 23.34  apply only where the employee is unemployed at the time of 
 23.35  filing the objection and shows, to the satisfaction of the chief 
 23.36  administrative judge, by sworn affidavit, that the failure to 
 24.1   file the objection within the deadlines was due to some 
 24.2   infirmity or incapacity of the employee or to circumstances 
 24.3   beyond the employee's control.  The hearing shall be limited to 
 24.4   the issues raised by the notice or petition unless all parties 
 24.5   agree to expanding the issues.  If the issues are expanded, the 
 24.6   time limits for hearing and issuance of a decision by the 
 24.7   compensation judge under this subdivision shall not apply.  
 24.8      Once a hearing date has been set, a continuance of the 
 24.9   hearing date will be granted only under the following 
 24.10  circumstances:  
 24.11     (a) the employer has agreed, in writing, to a continuation 
 24.12  of the payment of benefits pending the outcome of the hearing; 
 24.13  or 
 24.14     (b) the employee has agreed, in a document signed by the 
 24.15  employee, that benefits may be discontinued pending the outcome 
 24.16  of the hearing.  
 24.17     Absent a clear showing of surprise at the hearing or the 
 24.18  unexpected unavailability of a crucial witness, all evidence 
 24.19  must be introduced at the hearing.  If it is necessary to accept 
 24.20  additional evidence or testimony after the scheduled hearing 
 24.21  date, it must be submitted no later than 14 days following the 
 24.22  hearing, unless the compensation judge, for good cause, 
 24.23  determines otherwise.  
 24.24     The compensation judge shall issue a decision pursuant to 
 24.25  this subdivision within 30 days following the close of the 
 24.26  hearing record.  
 24.27     Sec. 15.  Minnesota Statutes 1994, section 176.82, is 
 24.28  amended to read: 
 24.29     176.82 [ACTION FOR CIVIL DAMAGES FOR OBSTRUCTING EMPLOYEE 
 24.30  SEEKING BENEFITS.] 
 24.31     Subdivision 1.  [RETALIATORY DISCHARGE.] Any person 
 24.32  discharging or threatening to discharge an employee for seeking 
 24.33  workers' compensation benefits or in any manner intentionally 
 24.34  obstructing an employee seeking workers' compensation benefits 
 24.35  is liable in a civil action for damages incurred by the employee 
 24.36  including any diminution in workers' compensation benefits 
 25.1   caused by a violation of this section including costs and 
 25.2   reasonable attorney fees, and for punitive damages not to exceed 
 25.3   three times the amount of any compensation benefit to which the 
 25.4   employee is entitled.  Damages awarded under this section shall 
 25.5   not be offset by any workers' compensation benefits to which the 
 25.6   employee is entitled. 
 25.7      Subd. 2.  [REFUSAL TO OFFER CONTINUED EMPLOYMENT.] An 
 25.8   employer who, without reasonable cause, refuses to offer 
 25.9   continued employment to its employee when employment is 
 25.10  available within the employee's physical limitations shall be 
 25.11  liable for one year's wages.  The wages are payable from the 
 25.12  date of the refusal to offer continued employment, and at the 
 25.13  same time and at the same rate as the employee's preinjury wage, 
 25.14  to continue during the period of the refusal up to a maximum of 
 25.15  $15,000.  These payments shall be in addition to any other 
 25.16  payments provided by this chapter.  In determining the 
 25.17  availability of employment, the continuance in business of the 
 25.18  employer shall be considered and written rules promulgated by 
 25.19  the employer with respect to seniority or the provisions or any 
 25.20  collective bargaining agreement with respect to seniority shall 
 25.21  govern. 
 25.22     Sec. 16.  Minnesota Statutes 1994, section 268.08, 
 25.23  subdivision 3, is amended to read: 
 25.24     Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
 25.25  eligible to receive benefits for any week with respect to which 
 25.26  the individual is receiving, has received, or has filed a claim 
 25.27  for remuneration in an amount equal to or in excess of the 
 25.28  individual's weekly benefit amount in the form of: 
 25.29     (1) termination, severance, or dismissal payment or wages 
 25.30  in lieu of notice whether legally required or not; provided that 
 25.31  if a termination, severance, or dismissal payment is made in a 
 25.32  lump sum, such lump sum payment shall be allocated over a period 
 25.33  equal to the lump sum divided by the employee's regular pay 
 25.34  while employed by such employer; provided such payment shall be 
 25.35  applied for a period immediately following the last day of 
 25.36  employment but not to exceed 28 calendar days provided that 50 
 26.1   percent of the total of any such payments in excess of eight 
 26.2   weeks shall be similarly allocated to the period immediately 
 26.3   following the 28 days; or 
 26.4      (2) vacation allowance paid directly by the employer for a 
 26.5   period of requested vacation, including vacation periods 
 26.6   assigned by the employer under the provisions of a collective 
 26.7   bargaining agreement, or uniform vacation shutdown; or 
 26.8      (3) compensation for loss of wages under the workers' 
 26.9   compensation law of this state or any other state or under a 
 26.10  similar law of the United States, or under other insurance or 
 26.11  fund established and paid for by the employer except that this 
 26.12  does not apply to an individual who is receiving temporary 
 26.13  partial compensation pursuant to section 176.101, subdivision 
 26.14  3k; or 
 26.15     (4) 50 percent of the pension payments from any fund, 
 26.16  annuity or insurance maintained or contributed to by a base 
 26.17  period employer including the armed forces of the United States 
 26.18  if the employee contributed to the fund, annuity or insurance 
 26.19  and all of the pension payments if the employee did not 
 26.20  contribute to the fund, annuity or insurance; or 
 26.21     (5) 50 percent of a primary insurance benefit under title 
 26.22  II of the Social Security Act, as amended, or similar old age 
 26.23  benefits under any act of Congress or this state or any other 
 26.24  state. 
 26.25     Provided, that if such remuneration is less than the 
 26.26  benefits which would otherwise be due under sections 268.03 to 
 26.27  268.231, the individual shall be entitled to receive for such 
 26.28  week, if otherwise eligible, benefits reduced by the amount of 
 26.29  such remuneration; provided, further, that if the appropriate 
 26.30  agency of such other state or the federal government finally 
 26.31  determines that the individual is not entitled to such benefits, 
 26.32  this provision shall not apply.  If the computation of reduced 
 26.33  benefits, required by this subdivision, is not a whole dollar 
 26.34  amount, it shall be rounded down to the next lower dollar amount.
 26.35     Sec. 17.  [REPEALER.] 
 26.36     Minnesota Statutes 1994, sections 175.007; 176.011, 
 27.1   subdivision 26; and 176.101, subdivisions 3a, 3b, 3c, 3d, 3e, 
 27.2   3f, 3g, 3h, 3i, 3j, 3k, 3l, 3m, 3n, 3o, 3p, 3q, 3r, 3s, 3t, and 
 27.3   3u, are repealed. 
 27.4      Sec. 18.  [EFFECTIVE DATE.] 
 27.5      Sections 1 to 17 are effective October 1, 1995. 
 27.6                              ARTICLE 4
 27.7      Section 1.  Minnesota Statutes 1994, section 79.211, 
 27.8   subdivision 1, is amended to read: 
 27.9      Subdivision 1.  [CERTAIN WAGES EXCLUDED INCLUDED FOR 
 27.10  RATEMAKING.] The rating association or an insurer shall not 
 27.11  include wages paid for a vacation, holiday, or sick leave in the 
 27.12  determination of a workers' compensation insurance premium. 
 27.13     An insurer, including the assigned risk plan, shall not 
 27.14  include wages paid for work performed in an adjacent state in 
 27.15  the determination of a workers' compensation premium if the 
 27.16  employer paid a workers' compensation insurance premium to the 
 27.17  exclusive state fund of the adjacent state on the wages earned 
 27.18  in the adjacent state. 
 27.19     Sec. 2.  Minnesota Statutes 1994, section 176.111, 
 27.20  subdivision 6, is amended to read: 
 27.21     Subd. 6.  [SPOUSE, NO DEPENDENT CHILD.] If the deceased 
 27.22  employee leaves a dependent surviving spouse and no dependent 
 27.23  child, there shall be paid to the spouse weekly workers' 
 27.24  compensation benefits at 50 percent of 1.25 times the weekly 
 27.25  wage at the time of the injury for a period of ten years, 
 27.26  including adjustments as provided in section 176.645.  
 27.27     Sec. 3.  Minnesota Statutes 1994, section 176.111, 
 27.28  subdivision 7, is amended to read: 
 27.29     Subd. 7.  [SPOUSE, ONE DEPENDENT CHILD.] If the deceased 
 27.30  employee leaves a surviving spouse and one dependent child, 
 27.31  there shall be paid to the surviving spouse for the benefit of 
 27.32  the spouse and child 60 percent of 1.25 times the daily wage at 
 27.33  the time of the injury of the deceased until the child is no 
 27.34  longer a dependent as defined in subdivision 1.  At that time 
 27.35  there shall be paid to the dependent surviving spouse weekly 
 27.36  benefits at a rate which is 16-2/3 percent less than the last 
 28.1   weekly workers' compensation benefit payment, as defined in 
 28.2   subdivision 8a, while the surviving child was a dependent, for a 
 28.3   period of ten years, including adjustments as provided in 
 28.4   section 176.645.  
 28.5      Sec. 4.  Minnesota Statutes 1994, section 176.111, 
 28.6   subdivision 8, is amended to read: 
 28.7      Subd. 8.  [SPOUSE, TWO DEPENDENT CHILDREN.] If the deceased 
 28.8   employee leaves a surviving spouse and two dependent children, 
 28.9   there shall be paid to the surviving spouse for the benefit of 
 28.10  the spouse and children 66-2/3 percent of 1.25 times the daily 
 28.11  wage at the time of the injury of the deceased until the last 
 28.12  dependent child is no longer dependent.  At that time the 
 28.13  dependent surviving spouse shall be paid weekly benefits at a 
 28.14  rate which is 25 percent less than the last weekly workers' 
 28.15  compensation benefit payment, as defined in subdivision 8a, 
 28.16  while the surviving child was a dependent, for a period of ten 
 28.17  years, adjusted according to section 176.645.  
 28.18     Sec. 5.  Minnesota Statutes 1994, section 176.111, 
 28.19  subdivision 12, is amended to read: 
 28.20     Subd. 12.  [ORPHANS.] If the deceased employee leaves a 
 28.21  dependent orphan, there shall be paid 55 percent of 1.25 times 
 28.22  the weekly wage at the time of the injury of the deceased, for 
 28.23  two or more orphans there shall be paid 66-2/3 percent of 1.25 
 28.24  times the wages. 
 28.25     Sec. 6.  Minnesota Statutes 1994, section 176.111, 
 28.26  subdivision 14, is amended to read: 
 28.27     Subd. 14.  [PARENTS.] If the deceased employee leave no 
 28.28  surviving spouse or child entitled to any payment under this 
 28.29  chapter, but leaves both parents wholly dependent on deceased, 
 28.30  there shall be paid to such parents jointly 45 percent of 1.25 
 28.31  times the weekly wage at the time of the injury of the 
 28.32  deceased.  In case of the death of either of the wholly 
 28.33  dependent parents the survivor shall receive 35 percent of 1.25 
 28.34  times the weekly wage thereafter.  If the deceased employee 
 28.35  leave one parent wholly dependent on the deceased, there shall 
 28.36  be paid to such parent 35 percent of 1.25 times the weekly wage 
 29.1   at the time of the injury of the deceased employee.  The 
 29.2   compensation payments under this section shall not exceed the 
 29.3   actual contributions made by the deceased employee to the 
 29.4   support of the employee's parents for a reasonable time 
 29.5   immediately prior to the injury which caused the death of the 
 29.6   deceased employee. 
 29.7      Sec. 7.  Minnesota Statutes 1994, section 176.111, 
 29.8   subdivision 15, is amended to read: 
 29.9      Subd. 15.  [REMOTE DEPENDENTS.] If the deceased employee 
 29.10  leaves no surviving spouse or child or parent entitled to any 
 29.11  payment under this chapter, but leaves a grandparent, 
 29.12  grandchild, brother, sister, mother-in-law, or father-in-law 
 29.13  wholly dependent on the employee for support, there shall be 
 29.14  paid to such dependent, if but one, 30 percent of 1.25 times the 
 29.15  weekly wage at the time of injury of the deceased, or if more 
 29.16  than one, 35 percent of 1.25 times the weekly wage at the time 
 29.17  of the injury of the deceased, divided among them share and 
 29.18  share alike. 
 29.19     Sec. 8.  Minnesota Statutes 1994, section 176.111, 
 29.20  subdivision 20, is amended to read: 
 29.21     Subd. 20.  [ACTUAL DEPENDENTS, COMPENSATION.] Actual 
 29.22  dependents are entitled to take compensation in the order named 
 29.23  in subdivision 3 during dependency until 66-2/3 percent of 1.25 
 29.24  times the weekly wage of the deceased at the time of injury is 
 29.25  exhausted.  The total weekly compensation to be paid to full 
 29.26  actual dependents of a deceased employee shall not exceed in the 
 29.27  aggregate an amount equal to 1.25 times the maximum weekly 
 29.28  compensation for a temporary total disability. 
 29.29     Sec. 9.  Minnesota Statutes 1994, section 176.191, is 
 29.30  amended by adding a subdivision to read: 
 29.31     Subd. 1a.  [EQUITABLE APPORTIONMENT.] Equitable 
 29.32  apportionment of liability for an injury under this chapter is 
 29.33  not allowed except that apportionment among employers and 
 29.34  insurers is allowed in a settlement agreement filed pursuant to 
 29.35  section 176.521, and an employer or insurer may request 
 29.36  equitable apportionment of liability for workers' compensation 
 30.1   benefits among employer and insurers by arbitration pursuant to 
 30.2   subdivision 5.  To the same extent limited by this subdivision, 
 30.3   contribution and reimbursement actions based on equitable 
 30.4   apportionment are not allowed under this chapter.  If the 
 30.5   insurers choose to arbitrate apportionment, contribution, or 
 30.6   reimbursement issues pursuant to this section, the arbitration 
 30.7   proceeding is for the limited purpose of apportioning liability 
 30.8   for workers' compensation benefits payable among employers and 
 30.9   insurers.  This subdivision applies without regard to whether 
 30.10  one or more of the injuries results from cumulative trauma or a 
 30.11  specific injury, but does not apply to an occupational disease.  
 30.12  In the case of an occupational disease, section 176.66 applies.  
 30.13  In the arbitration of equitable apportionment under this 
 30.14  section, the parties and the arbitrator must be guided by 
 30.15  general rules of arbitrator selection and presumptive 
 30.16  apportionment among employers and insurers that are developed by 
 30.17  the insurer's administrative task force and approved by the 
 30.18  commissioner of the department of labor and industry.  
 30.19  Apportionment against preexisting disability is allowed only for 
 30.20  permanent partial disability as provided in section 176.101, 
 30.21  subdivision 4a.  Nothing in this subdivision shall be 
 30.22  interpreted to repeal or in any way affect the law with respect 
 30.23  to special compensation fund liability or benefits.  
 30.24     Sec. 10.  Minnesota Statutes 1994, section 176.191, 
 30.25  subdivision 5, is amended to read: 
 30.26     Subd. 5.  [ARBITRATION.] Where a dispute exists between an 
 30.27  employer, insurer, the special compensation fund, the reopened 
 30.28  case fund, or the workers' compensation reinsurance association, 
 30.29  regarding apportionment of liability for benefits payable under 
 30.30  this chapter, the dispute and the requesting party has expended 
 30.31  over $10,000 in medical or 52 weeks worth of indemnity benefits 
 30.32  and made the request within one year thereafter, a party may be 
 30.33  submitted with consent of all interested parties request 
 30.34  submission of the dispute as to apportionment of liability among 
 30.35  employers and insurers to binding arbitration.  The decision of 
 30.36  the arbitrator shall be conclusive with respect to all issues 
 31.1   presented except as provided in subdivisions 6 and 7 on the 
 31.2   issue of apportionment among employers and insurers.  Consent of 
 31.3   the employee is not required for submission of a dispute to 
 31.4   arbitration pursuant to this section and the employee is not 
 31.5   bound by the results of the arbitration.  An arbitration award 
 31.6   shall not be admissible in any other proceeding under this 
 31.7   chapter.  Notice of the proceeding shall be given to the 
 31.8   employee.  
 31.9      The employee, or any person with material information to 
 31.10  the facts to be arbitrated, shall attend the arbitration 
 31.11  proceeding if any party to the proceeding deems it necessary. 
 31.12  Nothing said by an employee in connection with any arbitration 
 31.13  proceeding may be used against the employee in any other 
 31.14  proceeding under this chapter.  Reasonable expenses of meals, 
 31.15  lost wages, and travel of the employee or witnesses in attending 
 31.16  shall be reimbursed on a pro rata basis.  Arbitration costs 
 31.17  shall be paid by the parties, except the employee, on a pro rata 
 31.18  basis. 
 31.19     Sec. 11.  Minnesota Statutes 1994, section 176.191, 
 31.20  subdivision 7, is amended to read: 
 31.21     Subd. 7.  [REPRESENTATION.] If an employee brings an action 
 31.22  under the circumstances described in subdivision 6 in which 
 31.23  there had been an arbitration proceeding under subdivisions 1a 
 31.24  and 5, the parties to the previous arbitration may be 
 31.25  represented at the new action by a common or joint attorney.  
 31.26                             ARTICLE 5 
 31.27     Section 1.  Minnesota Statutes 1994, section 176.081, 
 31.28  subdivision 1, is amended to read: 
 31.29     Subdivision 1.  [APPROVAL LIMITATION OF FEES.] (a) A fee 
 31.30  for legal services of 25 ten percent of the first 
 31.31  $4,000 $130,000 of compensation awarded to the employee and 20 
 31.32  percent of the next $60,000 of compensation awarded to the 
 31.33  employee is the maximum permissible fee and does not require 
 31.34  approval by the commissioner, compensation judge, or any other 
 31.35  party except as provided in paragraph (d).  All fees must be 
 31.36  calculated according to the formula under this subdivision, or 
 32.1   earned in hourly fees for representation at discontinuance 
 32.2   conferences under section 176.239, or earned in hourly fees for 
 32.3   representation on rehabilitation or medical issues under section 
 32.4   176.102, 176.135, or 176.136.  Attorney fees for recovery of 
 32.5   medical or rehabilitation benefits or services shall be assessed 
 32.6   against the employer or insurer if these fees exceed the 
 32.7   contingent fee under this section in connection with benefits 
 32.8   currently in dispute.  The amount of the fee that the employer 
 32.9   or insurer is liable for is the amount determined under 
 32.10  subdivision 5, minus the contingent fee. 
 32.11     (b) All fees for legal services related to the same injury 
 32.12  are cumulative and may not exceed $13,000, except as provided by 
 32.13  subdivision 2.  If multiple injuries are the subject of a 
 32.14  dispute, the commissioner, compensation judge, or court of 
 32.15  appeals shall specify the attorney fee attributable to each 
 32.16  injury. 
 32.17     (c) If the employer or the insurer or the defendant is 
 32.18  given written notice of claims for legal services or 
 32.19  disbursements, the claim shall be a lien against the amount paid 
 32.20  or payable as compensation.  Subject to the foregoing maximum 
 32.21  amount for attorney fees, up to ten percent of periodic 
 32.22  compensation awards made to employees may be withheld from the 
 32.23  periodic payments for attorney fees or disbursements if the 
 32.24  payor of the funds clearly indicates on the check or draft 
 32.25  issued for payment the purpose of the withholding, the name of 
 32.26  the attorney who will be paid, the amount withheld, and the 
 32.27  gross amount of the compensation payment before withholding.  In 
 32.28  no case shall fees be calculated on the basis of any undisputed 
 32.29  portion of compensation awards.  Allowable fees under this 
 32.30  chapter shall be based solely upon genuinely disputed claims or 
 32.31  portions of claims, including disputes related to the payment of 
 32.32  rehabilitation benefits or to other aspects of a rehabilitation 
 32.33  plan.  Fees for administrative conferences under section 176.239 
 32.34  shall be determined on an hourly basis, according to the 
 32.35  criteria in subdivision 5.  
 32.36     (d) An attorney who is claiming legal fees for representing 
 33.1   an employee in a workers' compensation matter shall file a 
 33.2   statement of attorney fees with the commissioner, compensation 
 33.3   judge before whom the matter was heard, or workers' compensation 
 33.4   court of appeals on cases before the court.  A copy of the 
 33.5   signed retainer agreement shall also be filed.  The employee and 
 33.6   insurer shall receive a copy of the statement.  The statement 
 33.7   shall be on a form prescribed by the commissioner, and shall 
 33.8   report the number of hours spent on the case, and shall clearly 
 33.9   and conspicuously state that the employee or insurer has ten 
 33.10  calendar days to object to the attorney fees requested.  If no 
 33.11  objection is timely made by the employee or insurer, the amount 
 33.12  requested shall be conclusively presumed reasonable providing 
 33.13  the amount does not exceed the limitation in subdivision 1.  The 
 33.14  commissioner, compensation judge, or court of appeals shall 
 33.15  issue an order granting the fees and the amount requested shall 
 33.16  be awarded to the party requesting the fee.  
 33.17     If a timely objection is filed, or the fee is determined on 
 33.18  an hourly basis, the commissioner, compensation judge, or court 
 33.19  of appeals shall review the matter and make a determination 
 33.20  based on the criteria in subdivision 5. 
 33.21     If no timely objection is made by an employer or insurer, 
 33.22  reimbursement under subdivision 7 shall be made if the statement 
 33.23  of fees requested this reimbursement. 
 33.24     (e) Employers and insurers may not pay attorney fees or 
 33.25  wages for legal services of more than $13,000 per case unless 
 33.26  the additional fees or wages are approved under subdivision 2.  
 33.27     (f) Each insurer and self-insured employer shall file 
 33.28  annual statements with the commissioner detailing the total 
 33.29  amount of legal fees and other legal costs incurred by the 
 33.30  insurer or employer during the year.  The statement shall 
 33.31  include the amount paid for outside and in-house counsel, 
 33.32  deposition and other witness fees, and all other costs relating 
 33.33  to litigation. 
 33.34     Sec. 2.  Minnesota Statutes 1994, section 176.081, 
 33.35  subdivision 7a, is amended to read: 
 33.36     Subd. 7a.  [SETTLEMENT OFFER.] At any time prior to one day 
 34.1   before a matter is to be heard, a party litigating a claim made 
 34.2   pursuant to this chapter may serve upon the adverse party a 
 34.3   reasonable offer of settlement of the claim, with provision for 
 34.4   costs and disbursements then accrued.  If before the hearing the 
 34.5   adverse party serves written notice that the offer is accepted, 
 34.6   either party may then file the offer and notice of acceptance, 
 34.7   together with the proof of service thereof, and thereupon 
 34.8   judgment shall be entered.  
 34.9      If an offer by an employer or insurer is not accepted by 
 34.10  the employee, it shall be deemed withdrawn and evidence thereof 
 34.11  is not admissible, except in a proceeding to determine 
 34.12  attorney's fees.  Notwithstanding the provisions of subdivision 
 34.13  7, if the judgment finally obtained by the employee is less 
 34.14  favorable than the offer, the employer shall not be liable for 
 34.15  any part of the attorney's fees awarded pursuant to this section.
 34.16     If an offer by an employee is not accepted by the employer 
 34.17  or insurer, it shall be deemed withdrawn and evidence thereof is 
 34.18  not admissible, except in a proceeding to determine attorney's 
 34.19  fees.  Notwithstanding the provisions of subdivision 7, if the 
 34.20  judgment finally obtained by the employee is at least as 
 34.21  favorable as the offer, the employer shall pay an additional 25 
 34.22  percent, over the amount provided in subdivision 7, of that 
 34.23  portion of the attorney's fee which has been awarded pursuant to 
 34.24  this section that is in excess of $250.  
 34.25     The fact that an offer is made but not accepted does not 
 34.26  preclude a subsequent offer.  
 34.27     Sec. 3.  Minnesota Statutes 1994, section 176.081, 
 34.28  subdivision 9, is amended to read: 
 34.29     Subd. 9.  [RETAINER AGREEMENT.] An attorney who is hired by 
 34.30  an employee to provide legal services with respect to a claim 
 34.31  for compensation made pursuant to this chapter shall prepare a 
 34.32  retainer agreement in which the provisions of this section are 
 34.33  specifically set out and provide a copy of this agreement to the 
 34.34  employee.  The retainer agreement shall provide a space for the 
 34.35  signature of the employee.  A signed agreement shall raise a 
 34.36  conclusive presumption that the employee has read and 
 35.1   understands the statutory fee provisions.  No fee shall be 
 35.2   awarded pursuant to this section in the absence of a signed 
 35.3   retainer agreement.  
 35.4      The retainer agreement shall contain a notice to the 
 35.5   employee regarding the maximum fee allowed under this section in 
 35.6   ten-point type, which shall read: 
 35.7                       Notice of Maximum Fee
 35.8      The maximum fee allowed by law for legal services is ten 
 35.9   percent of the first $130,000 of compensation awarded to the 
 35.10  employee subject to a cumulative maximum fee of $13,000 for fees 
 35.11  related to the same injury. 
 35.12     The employee shall take notice that the employee is under 
 35.13  no legal or moral obligation to pay any fee for legal services 
 35.14  in excess of the foregoing maximum fee. 
 35.15     Sec. 4.  Minnesota Statutes 1994, section 176.135, 
 35.16  subdivision 1, is amended to read: 
 35.17     Subdivision 1.  [MEDICAL, PSYCHOLOGICAL, CHIROPRACTIC, 
 35.18  PODIATRIC, SURGICAL, HOSPITAL.] (a) The employer shall furnish 
 35.19  any medical, psychological, chiropractic, podiatric, surgical 
 35.20  and hospital treatment, including nursing, medicines, medical, 
 35.21  chiropractic, podiatric, and surgical supplies, crutches and 
 35.22  apparatus, including artificial members, or, at the option of 
 35.23  the employee, if the employer has not filed notice as 
 35.24  hereinafter provided, Christian Science treatment in lieu of 
 35.25  medical treatment, chiropractic medicine and medical supplies, 
 35.26  as may reasonably be required at the time of the injury and any 
 35.27  time thereafter to cure and relieve from the effects of the 
 35.28  injury.  This treatment shall include treatments necessary to 
 35.29  physical rehabilitation. 
 35.30     (b) The employer shall pay for the reasonable value of 
 35.31  nursing services provided by a member of the employee's family 
 35.32  in cases of permanent total disability.  
 35.33     (c) Exposure to rabies is an injury and an employer shall 
 35.34  furnish preventative treatment to employees exposed to rabies. 
 35.35     (d) The employer shall furnish replacement or repair for 
 35.36  artificial members, glasses, or spectacles, artificial eyes, 
 36.1   podiatric orthotics, dental bridge work, dentures or artificial 
 36.2   teeth, hearing aids, canes, crutches, or wheel chairs damaged by 
 36.3   reason of an injury arising out of and in the course of the 
 36.4   employment.  For the purpose of this paragraph, "injury" 
 36.5   includes damage wholly or in part to an artificial member.  In 
 36.6   case of the employer's inability or refusal seasonably to 
 36.7   provide the items required to be provided under this paragraph, 
 36.8   the employer is liable for the reasonable expense incurred by or 
 36.9   on behalf of the employee in providing the same, including costs 
 36.10  of copies of any medical records or medical reports that are in 
 36.11  existence, obtained from health care providers, and that 
 36.12  directly relate to the items for which payment is sought under 
 36.13  this chapter, limited to the charges allowed by subdivision 7, 
 36.14  and attorney fees incurred by the employee.  Attorney's fees 
 36.15  shall be determined on an hourly basis according to the criteria 
 36.16  in section 176.081, subdivision 5.  
 36.17     (e) Both the commissioner and the compensation judges have 
 36.18  authority to make determinations under this section in 
 36.19  accordance with sections 176.106 and 176.305.  
 36.20     (f) An employer may require that the treatment and supplies 
 36.21  required to be provided by an employer by this section be 
 36.22  received in whole or in part from a managed care plan certified 
 36.23  under section 176.1351 except as otherwise provided by that 
 36.24  section. 
 36.25     Sec. 5.  Minnesota Statutes 1994, section 176.191, 
 36.26  subdivision 8, is amended to read: 
 36.27     Subd. 8.  [ATTORNEY FEES.] No attorney's fees shall be 
 36.28  awarded under either section 176.081, subdivision 8, or 176.191 
 36.29  against any employer or insurer in connection with any 
 36.30  arbitration proceeding unless the employee chooses to retain an 
 36.31  attorney to represent the employee's interests during 
 36.32  arbitration.  
 36.33     Sec. 6.  [REPEALER.] 
 36.34     Minnesota Statutes 1994, sections 176.081, subdivisions 2, 
 36.35  5, 7, and 8; and 176.133, are repealed. 
 36.36                             ARTICLE 6 
 37.1      Section 1.  [176.1812] [COLLECTIVE BARGAINING AGREEMENTS.] 
 37.2      Subdivision 1.  [REQUIREMENTS.] Upon appropriate filing, 
 37.3   the commissioner, compensation judge, workers' compensation 
 37.4   court of appeals, and courts shall recognize as valid and 
 37.5   binding a provision in a collective bargaining agreement between 
 37.6   a qualified employer or qualified groups of employers engaged in 
 37.7   construction, construction maintenance, and related activities 
 37.8   and the certified and exclusive representative of its employees 
 37.9   to establish certain obligations and procedures relating to 
 37.10  workers' compensation.  For purposes of this section, "qualified 
 37.11  employer" means any self-insured employer, any employer, through 
 37.12  itself or any affiliate as defined in section 60D.15, 
 37.13  subdivision 2, who is responsible for the first $100,000 or more 
 37.14  of any claim, or a private employer developing or projecting an 
 37.15  annual workers' compensation premium, in Minnesota, of $250,000 
 37.16  or more.  For purposes of this section, a "qualified group of 
 37.17  employers" means a group of private employers engaged in 
 37.18  workers' compensation group self-insurance complying with 
 37.19  section 79A.03, subdivision 6, which develops or projects annual 
 37.20  workers' compensation insurance premiums of $2,000,000 or more.  
 37.21  This agreement must be limited to, but need not include, all of 
 37.22  the following: 
 37.23     (a) an alternative dispute resolution system to supplement, 
 37.24  modify, or replace the procedural or dispute resolution 
 37.25  provisions of this chapter.  The system may include mediation, 
 37.26  arbitration, or other dispute resolution proceedings, the 
 37.27  results of which may be final and binding upon the parties.  A 
 37.28  system of arbitration shall provide that the decision of the 
 37.29  arbiter is subject to review either by the workers' compensation 
 37.30  court of appeals in the same manner as an award or order of a 
 37.31  compensation judge or, in lieu of review by the workers' 
 37.32  compensation court of appeals, by the office of administrative 
 37.33  hearings, by the district court, by the Minnesota court of 
 37.34  appeals, or by the supreme court in the same manner as the 
 37.35  workers' compensation court of appeals and may provide that any 
 37.36  arbiter's award disapproved by a court be referred back to the 
 38.1   arbiter for reconsideration and possible modification; 
 38.2      (b) an agreed list of providers of medical treatment that 
 38.3   may be the exclusive source of all medical and related treatment 
 38.4   provided under this chapter which need not be certified under 
 38.5   section 176.1351; 
 38.6      (c) the use of a limited list of impartial physicians to 
 38.7   conduct independent medical examinations; 
 38.8      (d) the creation of a light duty, modified job, or return 
 38.9   to work program; 
 38.10     (e) the use of a limited list of individuals and companies 
 38.11  for the establishment of vocational rehabilitation or retraining 
 38.12  programs which list is not subject to the requirements of 
 38.13  section 176.102; 
 38.14     (f) the establishment of safety committees and safety 
 38.15  procedures; or 
 38.16     (g) the adoption of a 24-hour health care coverage plan if 
 38.17  a 24-hour plan pilot project is authorized by law, according to 
 38.18  the terms and conditions authorized by that law. 
 38.19     Subd. 2.  [FILING AND REVIEW.] A copy of the agreement and 
 38.20  the approximate number of employees who will be covered under it 
 38.21  must be filed with the commissioner.  Within 21 days of receipt 
 38.22  of an agreement, the commissioner shall review the agreement for 
 38.23  compliance with this section and the benefit provisions of this 
 38.24  chapter and notify the parties of any additional information 
 38.25  required or any recommended modification that would bring the 
 38.26  agreement into compliance.  Upon receipt of any requested 
 38.27  information or modification, the commissioner must notify the 
 38.28  parties within 21 days whether the agreement is in compliance 
 38.29  with this section and the benefit provisions of this chapter. 
 38.30     In order for any agreement to remain in effect, it must 
 38.31  provide for a timely and accurate method of reporting to the 
 38.32  commissioner necessary information regarding service cost and 
 38.33  utilization to enable the commissioner to annually report to the 
 38.34  legislature.  The information provided to the commissioner must 
 38.35  include aggregate data on the: 
 38.36     (i) person hours and payroll covered by agreements filed; 
 39.1      (ii) number of claims filed; 
 39.2      (iii) average cost per claim; 
 39.3      (iv) number of litigated claims, including the number of 
 39.4   claims submitted to arbitration, the workers' compensation court 
 39.5   of appeals, the office of administrative hearings, the district 
 39.6   court, the Minnesota court of appeals or the supreme court; 
 39.7      (v) number of contested claims resolved prior to 
 39.8   arbitration; 
 39.9      (vi) projected incurred costs and actual costs of claims; 
 39.10     (vii) employer's safety history; 
 39.11     (viii) number of workers participating in vocational 
 39.12  rehabilitation; and 
 39.13     (ix) number of workers participating in light-duty programs.
 39.14     Subd. 3.  [REFUSAL TO RECOGNIZE.] A person aggrieved by the 
 39.15  commissioner's decision concerning an agreement may request in 
 39.16  writing, within 30 days of the date the notice is issued, the 
 39.17  initiation of a contested case proceeding under chapter 14.  The 
 39.18  request to initiate a contested case must be received by the 
 39.19  department by the 30th day after the commissioner's decision.  
 39.20  An appeal from the commissioner's final decision and order may 
 39.21  be taken to the workers' compensation court of appeals pursuant 
 39.22  to sections 176.421 and 176.442. 
 39.23     Subd. 4.  [VOID AGREEMENTS.] Nothing in this section shall 
 39.24  allow any agreement that diminishes an employee's entitlement to 
 39.25  benefits as otherwise set forth in this chapter.  For the 
 39.26  purposes of this section, the procedural rights and dispute 
 39.27  resolution agreements under subdivision 1, clauses (a) to (g), 
 39.28  are not agreements which diminish an employee's entitlement to 
 39.29  benefits.  Any agreement that diminishes an employee's 
 39.30  entitlement to benefits as set forth in this chapter is null and 
 39.31  void. 
 39.32     Subd. 5.  [NOTICE TO INSURANCE CARRIER.] If the employer is 
 39.33  insured under this chapter, the collective bargaining agreement 
 39.34  provision shall not be recognized by the commissioner, 
 39.35  compensation judge, workers' compensation court of appeals, and 
 39.36  other courts unless the employer has given notice to the 
 40.1   employer's insurance carrier, in the manner provided in the 
 40.2   insurance contract, of intent to enter into an agreement with 
 40.3   its employees as provided in this section. 
 40.4      Subd. 6.  [PILOT PROGRAM.] The commissioner shall establish 
 40.5   a pilot program ending December 31, 1997, in which up to ten 
 40.6   private employers not engaged in construction, construction 
 40.7   maintenance, and related activities shall be authorized to enter 
 40.8   into valid agreements under this section with their employees.  
 40.9   The agreements shall be recognized and enforced as provided by 
 40.10  this section.  Private employers shall participate in the pilot 
 40.11  program through collectively bargained agreements with the 
 40.12  certified and exclusive representatives of their employees and 
 40.13  without regard to the dollar insurance premium limitations in 
 40.14  subdivision 1. 
 40.15     Subd. 7.  [RULES.] The commissioner may adopt emergency or 
 40.16  permanent rules necessary to implement this section.