SF 16

as introduced - 91st Legislature, 2020 2nd Special Session (2020 - 2020) Posted on 07/14/2020 07:52am

A bill for an act
relating to workers' compensation insurance; establishing a mechanism for
providing reimbursement for certain COVID-19 workers' compensation costs;
requiring a report; appropriating money.

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

Section 1. new text begin WORKERS' COMPENSATION COVID-19 REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Fund created. new text end

new text begin The workers' compensation COVID-19 reimbursement
fund is created in the state treasury to reimburse workers' compensation providers for
COVID-19 workers' compensation costs paid with respect to employees in job classifications
entitled to the presumption established by Laws 2020, chapter 72, section 1. The fund shall
be managed by the Minnesota State Board of Investment. Reimbursements shall be made
from the fund to eligible workers' compensation providers by the commissioner of labor
and industry.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of labor and industry.
new text end

new text begin (c) "Employee" has the meaning given in Minnesota Statutes, section 176.011, subdivision
9.
new text end

new text begin (d) "Employer" has the meaning given in Minnesota Statutes, section 176.011, subdivision
10.
new text end

new text begin (e) "Fund" means the workers' compensation COVID-19 reimbursement fund created
in subdivision 1.
new text end

new text begin (f) "Local government" means a statutory or home rule charter city, a county, a school
district, a town, or an instrumentality of any of the foregoing.
new text end

new text begin (g) "Presumptive classes" means the employee occupations specified in the presumption
established in Laws 2020, chapter 72, section 1.
new text end

new text begin (h) "Workers' compensation costs" means the actual loss amount that a workers'
compensation provider is obligated to pay and that is paid by the provider for workers'
compensation benefits payable under Minnesota Statutes, chapter 176.
new text end

new text begin (i) "Workers' compensation provider" means an employer or other entity providing
workers' compensation coverage to employees that are included in the presumptive classes
and that is: (1) a self-insured local government entity; (2) a local government self-insurance
pool created pursuant to Minnesota Statutes, section 471.981; (3) a self-insurer authorized
under Minnesota Statutes, section 176.181; or (4) an insurance carrier authorized to insure
workers' compensation in this state.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement eligibility threshold amounts. new text end

new text begin (a) A workers' compensation
provider shall be eligible for reimbursement for COVID-19 workers' compensation costs
for presumptive classes in excess of the deductible amounts listed as provided in paragraphs
(b) and (c).
new text end

new text begin (b) A workers' compensation provider that is a self-insured local government entity,
local government self-insurance pool, or a self-insurer having an annual premium of less
than $5,000,000 is eligible for reimbursement from the fund when the workers' compensation
provider has paid total COVID-19-related workers' compensation costs of $100,000 for
claims arising from an employee or employees in a presumptive class.
new text end

new text begin (c) A workers' compensation provider other than a workers' compensation provider
described in paragraph (b) is eligible for reimbursement from the fund when the workers'
compensation provider has paid total COVID-19-related workers' compensation costs of
$1,000,000 for claims arising from an employee or employees in a presumptive class.
new text end

new text begin Subd. 4. new text end

new text begin Submission for reimbursement. new text end

new text begin A workers' compensation provider shall
submit to the commissioner, in a format prescribed by the commissioner, information
regarding the amounts in excess of the deductible provided in subdivision 3 to be reimbursed
from the fund. The commissioner shall make reimbursements to workers' compensation
providers on a first-come, first-served basis. No funds may be reimbursed after December
30, 2020.
new text end

new text begin Subd. 5. new text end

new text begin Amounts from other insurance. new text end

new text begin Reimbursement from the fund to a workers'
compensation provider under this section shall be reduced by any amounts received from
the Workers' Compensation Reinsurance Association created under Minnesota Statutes,
section 79.34, or other third-party sources and made to the workers' compensation provider
as a result of a COVID-19-related workers' compensation claim arising from an employee
or employees in a presumptive class.
new text end

new text begin Subd. 6. new text end

new text begin Aggregation of claims. new text end

new text begin Claims paid to employees within presumptive classes
may be aggregated and count toward the deductible amounts specified in subdivision 3,
paragraphs (b) and (c).
new text end

new text begin Subd. 7. new text end

new text begin Report to legislature. new text end

new text begin By September 1, 2020, November 1, 2020, and January
15, 2021, the commissioner shall report to the legislature regarding reimbursements paid
to workers' compensation providers under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin APPROPRIATION; WORKERS' COMPENSATION COVID-19
REIMBURSEMENTS.
new text end

new text begin $375,000,000 in fiscal year 2021 is appropriated from the coronavirus relief account in
the federal fund to the commissioner of management and budget for deposit in the workers'
compensation COVID-19 reimbursement fund to provide reimbursements as specified in
section 1. This is a onetime appropriation. No money in this appropriation may be spent
until the commissioner of management and budget determines that the appropriation in this
paragraph is an eligible use of the coronavirus relief account in the federal fund. Funds are
available until December 30, 2020.
new text end

new text begin EFFECTIVE DATE. new text end

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