SF 2246

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to workers' compensation; making the workers' 
  1.3             compensation reinsurance association a division of the 
  1.4             department of commerce; transferring certain powers 
  1.5             and responsibilities; amending Minnesota Statutes 
  1.6             1998, sections 79.34, subdivisions 1, 2, 2a, and 6; 
  1.7             79.35; 79.36; 79.361, subdivision 1; 79.37; 79.371, 
  1.8             subdivision 2; and 79.38, subdivision 1; repealing 
  1.9             Minnesota Statutes 1998, sections 79.362; 79.371, 
  1.10            subdivision 1; 79.38, subdivisions 2 and 3; and 79.39. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 79.34, 
  1.13  subdivision 1, is amended to read: 
  1.14     Subdivision 1.  [CONDITIONS REQUIRING MEMBERSHIP.] The 
  1.15  nonprofit association known as the workers' compensation 
  1.16  reinsurance association may be incorporated under chapter 317A 
  1.17  with all the powers of a corporation formed under that chapter, 
  1.18  except that if the provisions of that chapter are inconsistent 
  1.19  with sections 79.34 to 79.40, sections 79.34 to 79.40 govern is 
  1.20  a division of the department of commerce directed by a deputy 
  1.21  commissioner appointed by the commissioner.  Each insurer as 
  1.22  defined by section 79.01, subdivision 2, shall, as a condition 
  1.23  of its authority to transact workers' compensation insurance in 
  1.24  this state, be a member of the reinsurance association and is 
  1.25  bound by the plan of operation of the reinsurance association; 
  1.26  provided, that all affiliated insurers within a holding company 
  1.27  system as defined in chapter 60D are considered a single entity 
  1.28  for purposes of the exercise of all rights and duties of 
  2.1   membership in the reinsurance association.  Each self-insurer 
  2.2   approved under section 176.181 and each political subdivision 
  2.3   that self-insures shall, as a condition of its authority to 
  2.4   self-insure workers' compensation liability in this state, be a 
  2.5   member of the reinsurance association and is bound by its plan 
  2.6   of operation; provided that: 
  2.7      (1) all affiliated companies within a holding company 
  2.8   system, as determined by the commissioner of labor and industry 
  2.9   commerce in a manner consistent with the standards and 
  2.10  definitions in chapter 60D, are considered a single entity for 
  2.11  purposes of the exercise of all rights and duties of membership 
  2.12  in the reinsurance association; and 
  2.13     (2) all group self-insurers granted authority to 
  2.14  self-insure pursuant to section 176.181 are considered single 
  2.15  entities for purposes of the exercise of all the rights and 
  2.16  duties of membership in the reinsurance association.  As a 
  2.17  condition of its authority to self-insure workers' compensation 
  2.18  liability, and for losses incurred after December 31, 1983, the 
  2.19  state is a member of the reinsurance association and is bound by 
  2.20  its plan of operation.  The commissioner of employee relations 
  2.21  represents the state in the exercise of all the rights and 
  2.22  duties of membership in the reinsurance association.  The state 
  2.23  treasurer shall pay the premium to the reinsurance association 
  2.24  from the state compensation revolving fund upon warrants of the 
  2.25  commissioner of employee relations, except that the University 
  2.26  of Minnesota shall pay its portion of workers' compensation 
  2.27  reinsurance premiums directly to the workers' compensation 
  2.28  reinsurance association.  For the purposes of this section, 
  2.29  "state" means the administrative branch of state government, the 
  2.30  legislative branch, the judicial branch, the University of 
  2.31  Minnesota, and any other entity whose workers' compensation 
  2.32  liability is paid from the state revolving fund.  The 
  2.33  commissioner of finance may calculate, prorate, and charge a 
  2.34  department or agency the portion of premiums paid to the 
  2.35  reinsurance association for employees who are paid wholly or in 
  2.36  part by federal funds, dedicated funds, or special revenue 
  3.1   funds.  The reinsurance association is not a state agency.  
  3.2   Actions of the reinsurance association and its board of 
  3.3   directors and actions of the commissioner of labor and industry 
  3.4   with respect to the reinsurance association are not subject to 
  3.5   chapters 13 and 15.  All property owned by the association is 
  3.6   exempt from taxation.  The reinsurance association is not 
  3.7   obligated to make any payments or pay any assessments to any 
  3.8   funds or pools established pursuant to this chapter or chapter 
  3.9   176 or any other law. 
  3.10     Sec. 2.  Minnesota Statutes 1998, section 79.34, 
  3.11  subdivision 2, is amended to read: 
  3.12     Subd. 2.  [LOSSES; RETENTION LIMITS.] The reinsurance 
  3.13  association shall provide and each member shall accept 
  3.14  indemnification for 100 percent of the amount of ultimate loss 
  3.15  sustained in each loss occurrence relating to one or more claims 
  3.16  arising out of a single compensable event, including aggregate 
  3.17  losses related to a single event or occurrence which constitutes 
  3.18  a single loss occurrence, under chapter 176 on and after October 
  3.19  1, 1979, in excess of a low, a high, or a super retention limit, 
  3.20  at the option of the member.  In case of occupational disease 
  3.21  causing disablement on and after October 1, 1979, each person 
  3.22  suffering disablement due to occupational disease is considered 
  3.23  to be involved in a separate loss occurrence.  On January 1, 
  3.24  1995, the lower retention limit is $250,000, which shall also be 
  3.25  known as the 1995 base retention limit.  On each January 1 
  3.26  thereafter, the cumulative annual percentage changes in the 
  3.27  statewide average weekly wage after October 1, 1994, as 
  3.28  determined in accordance with section 176.011, subdivision 20, 
  3.29  shall first be multiplied by the 1995 base retention limit, the 
  3.30  result of which shall then be added to the 1995 base retention 
  3.31  limit.  The resulting figure shall be rounded to the nearest 
  3.32  $10,000, yielding the low retention limit for that year, 
  3.33  provided that the low retention limit shall not be reduced in 
  3.34  any year.  The high retention limit shall be two times the low 
  3.35  retention limit and shall be adjusted when the low retention 
  3.36  limit is adjusted.  The super retention limit shall be four 
  4.1   times the low retention limit and shall be adjusted when the low 
  4.2   retention limit is adjusted.  Ultimate loss as used in this 
  4.3   section means the actual loss amount which a member is obligated 
  4.4   to pay and which is paid by the member for workers' compensation 
  4.5   benefits payable under chapter 176 and shall not include claim 
  4.6   expenses, assessments, damages or penalties.  For losses 
  4.7   incurred on or after January 1, 1979, any amounts paid by a 
  4.8   member pursuant to sections 176.183, 176.221, 176.225, and 
  4.9   176.82 shall not be included in ultimate loss and shall not be 
  4.10  indemnified by the reinsurance association.  A loss is incurred 
  4.11  by the reinsurance association on the date on which the accident 
  4.12  or other compensable event giving rise to the loss occurs, and a 
  4.13  member is liable for a loss up to its retention limit in effect 
  4.14  at the time that the loss was incurred, except that members 
  4.15  which are determined by the reinsurance association to be 
  4.16  controlled by or under common control with another member, and 
  4.17  which are liable for claims from one or more employees entitled 
  4.18  to compensation for a single compensable event, including 
  4.19  aggregate losses relating to a single loss occurrence, may 
  4.20  aggregate their losses and obtain indemnification from the 
  4.21  reinsurance association for the aggregate losses in excess of 
  4.22  the highest retention limit selected by any of the members in 
  4.23  effect at the time the loss was incurred.  Each member is liable 
  4.24  for payment of its ultimate loss and shall be entitled to 
  4.25  indemnification from the reinsurance association for the 
  4.26  ultimate loss in excess of the member's retention limit in 
  4.27  effect at the time of the loss occurrence. 
  4.28     A member that chooses the high or super retention limit 
  4.29  shall retain the liability for all losses below the chosen 
  4.30  retention limit itself and shall not transfer the liability to 
  4.31  any other entity or reinsure or otherwise contract for 
  4.32  reimbursement or indemnification for losses below its retention 
  4.33  limit, except in the following cases:  (a) when the reinsurance 
  4.34  or contract is with another member which, directly or 
  4.35  indirectly, through one or more intermediaries, control or are 
  4.36  controlled by or are under common control with the member; (b) 
  5.1   when the reinsurance or contract provides for reimbursement or 
  5.2   indemnification of a member if and only if the total of all 
  5.3   claims which the member pays or incurs, but which are not 
  5.4   reimbursable or subject to indemnification by the reinsurance 
  5.5   association for a given period of time, exceeds a dollar value 
  5.6   or percentage of premium written or earned and stated in the 
  5.7   reinsurance agreement or contract; (c) when the reinsurance or 
  5.8   contract is a pooling arrangement with other insurers where 
  5.9   liability of the member to pay claims pursuant to chapter 176 is 
  5.10  incidental to participation in the pool and not as a result of 
  5.11  providing workers' compensation insurance to employers on a 
  5.12  direct basis under chapter 176; (d) when the reinsurance or 
  5.13  contract is limited to all the claims of a specific insured of a 
  5.14  member which are reimbursed or indemnified by a reinsurer which, 
  5.15  directly or indirectly, through one or more intermediaries, 
  5.16  controls or is controlled by or is under common control with the 
  5.17  insured of the member so long as any subsequent contract or 
  5.18  reinsurance of the reinsurer relating to the claims of the 
  5.19  insured of a member is not inconsistent with the bases of 
  5.20  exception provided under clauses (a), (b) and (c); or (e) when 
  5.21  the reinsurance or contract is limited to all claims of a 
  5.22  specific self-insurer member which are reimbursed or indemnified 
  5.23  by a reinsurer which, directly or indirectly, through one or 
  5.24  more intermediaries, controls or is controlled by or is under 
  5.25  common control with the self-insurer member so long as any 
  5.26  subsequent contract or reinsurance of the reinsurer relating to 
  5.27  the claims of the self-insurer member are not inconsistent with 
  5.28  the bases for exception provided under clauses (a), (b) and (c). 
  5.29     Whenever it appears to the commissioner of labor and 
  5.30  industry commerce that any member that chooses the high or super 
  5.31  retention limit has participated in the transfer of liability to 
  5.32  any other entity or reinsured or otherwise contracted for 
  5.33  reimbursement or indemnification of losses below its retention 
  5.34  limit in a manner inconsistent with the bases for exception 
  5.35  provided under clauses (a), (b), (c), (d), and (e), the 
  5.36  commissioner may, after giving notice and an opportunity to be 
  6.1   heard, order the member to pay to the state of Minnesota an 
  6.2   amount not to exceed twice the difference between the 
  6.3   reinsurance premium for the high or super retention limit, as 
  6.4   appropriate, and the low retention limit applicable to the 
  6.5   member for each year in which the prohibited reinsurance or 
  6.6   contract was in effect.  Any member subject to this penalty 
  6.7   provision shall continue to be bound by its selection of the 
  6.8   high or super retention limit for purposes of membership in the 
  6.9   reinsurance association.  
  6.10     Sec. 3.  Minnesota Statutes 1998, section 79.34, 
  6.11  subdivision 2a, is amended to read: 
  6.12     Subd. 2a.  [DEFICIENCY.] If the board commissioner of 
  6.13  commerce determines that a distribution of excess surplus 
  6.14  resulted in inadequate funds being available to pay claims that 
  6.15  arose during the period upon which that distribution was 
  6.16  calculated, the board commissioner shall determine the amount of 
  6.17  the deficiency.  The deficiency shall be made up by imposing an 
  6.18  assessment rate against self-insured members and policyholders 
  6.19  of insurer members.  The board shall notify the commissioner of 
  6.20  commerce of the amount of the deficiency and recommend an 
  6.21  assessment rate.  The commissioner shall order an assessment at 
  6.22  a rate and for the time period necessary to eliminate the 
  6.23  deficiency.  The assessment rate shall be applied to the 
  6.24  exposure base of self-insured employers and insured employers.  
  6.25  The assessment may not be retroactive and applies only 
  6.26  prospectively.  The assessment may be spread over a period of 
  6.27  time that will cause the least financial hardship to employers.  
  6.28  All assessments under this subdivision are payable to the 
  6.29  association.  The commissioner may issue orders necessary to 
  6.30  administer this section.  
  6.31     Sec. 4.  Minnesota Statutes 1998, section 79.34, 
  6.32  subdivision 6, is amended to read: 
  6.33     Subd. 6.  [IDENTIFYING LOSSES IN REPORT.] The commissioner 
  6.34  of labor and industry commerce shall require each member to 
  6.35  identify the portion of all losses which exceed its retention 
  6.36  limit selected under this section in any report filed with the 
  7.1   workers' compensation insurers rating association of Minnesota 
  7.2   or filed with the department of labor and industry for use in 
  7.3   reviewing the workers' compensation schedule of rates.  
  7.4      Sec. 5.  Minnesota Statutes 1998, section 79.35, is amended 
  7.5   to read: 
  7.6      79.35 [DUTIES; RESPONSIBILITIES; POWERS.] 
  7.7      The reinsurance association shall do the following on 
  7.8   behalf of its members: 
  7.9      (a) Assume 100 percent of the liability as provided in 
  7.10  section 79.34; 
  7.11     (b) Establish procedures by which members shall promptly 
  7.12  report to the reinsurance association each claim which, on the 
  7.13  basis of the injury sustained, may reasonably be anticipated to 
  7.14  involve liability to the reinsurance association if the member 
  7.15  is held liable under chapter 176.  Solely for the purpose of 
  7.16  reporting claims, the member shall in all instances consider 
  7.17  itself legally liable for the injury.  The member shall advise 
  7.18  the reinsurance association of subsequent developments likely to 
  7.19  materially affect the interest of the reinsurance association in 
  7.20  the claim; 
  7.21     (c) Maintain relevant loss and expense data relative to all 
  7.22  liabilities of the reinsurance association and require each 
  7.23  member to furnish statistics in connection with liabilities of 
  7.24  the reinsurance association at the times and in the form and 
  7.25  detail as may be required by the plan of operation; 
  7.26     (d) Calculate and charge to members a total premium 
  7.27  sufficient to cover the expected liability which the reinsurance 
  7.28  association will incur, together with incurred or estimated to 
  7.29  be incurred operating and administrative expenses for the period 
  7.30  to which this premium applies and actual claim payments to be 
  7.31  made by members, during the period to which this premium 
  7.32  applies, for claims in excess of the prefunded limit in effect 
  7.33  at the time the loss was incurred.  Each member shall be charged 
  7.34  a premium established by the board as sufficient to cover the 
  7.35  reinsurance association's incurred liabilities and expenses 
  7.36  between the member's selected retention limit and the prefunded 
  8.1   limit.  The prefunded limit shall be 20 times the lower 
  8.2   retention limit established in section 79.34, subdivision 2.  
  8.3   Each member shall be charged a proportion of the total premium 
  8.4   calculated for its selected retention limit in an amount equal 
  8.5   to its proportion of the exposure base of all members during the 
  8.6   period to which the reinsurance association premium will apply.  
  8.7   The exposure base shall be determined by the board and is 
  8.8   subject to the approval of the commissioner of labor and 
  8.9   industry commerce.  In determining the exposure base, the board 
  8.10  commissioner shall consider, among other things, equity, 
  8.11  administrative convenience, records maintained by members, 
  8.12  amenability to audit, and degree of risk refinement.  Each 
  8.13  member shall also be charged a premium determined by the board 
  8.14  commissioner to equitably distribute excess or deficient 
  8.15  premiums from previous periods including any excess or deficient 
  8.16  premiums resulting from a retroactive change in the prefunded 
  8.17  limit.  The premiums charged to members shall not be unfairly 
  8.18  discriminatory as defined in section 79.074.  All premiums shall 
  8.19  be approved by the commissioner of labor and industry; 
  8.20     (e) Require and accept the payment of premiums from members 
  8.21  of the reinsurance association; 
  8.22     (f) Receive and distribute all sums required by the 
  8.23  operation of the reinsurance association; 
  8.24     (g) Establish procedures for reviewing claims procedures 
  8.25  and practices of members of the reinsurance association.  If the 
  8.26  claims procedures or practices of a member are considered 
  8.27  inadequate to properly service the liabilities of the 
  8.28  reinsurance association, the reinsurance association may 
  8.29  undertake, or may contract with another person, including 
  8.30  another member, to adjust or assist in the adjustment of claims 
  8.31  which create a potential liability to the association.  The 
  8.32  reinsurance association may charge the cost of the adjustment 
  8.33  under this paragraph to the member, except that any penalties or 
  8.34  interest incurred under sections 176.183, 176.221, 176.225, and 
  8.35  176.82 as a result of actions by the reinsurance association 
  8.36  after it has undertaken adjustment of the claim shall not be 
  9.1   charged to the member but shall be included in the ultimate loss 
  9.2   and listed as a separate item; and 
  9.3      (h) Provide each member of the reinsurance association with 
  9.4   an annual report of the operations of the reinsurance 
  9.5   association in a form the board of directors commissioner of 
  9.6   commerce may specify. 
  9.7      Sec. 6.  Minnesota Statutes 1998, section 79.36, is amended 
  9.8   to read: 
  9.9      79.36 [ADDITIONAL POWERS.] 
  9.10     In addition to the powers granted in section 79.35, the 
  9.11  reinsurance association may do the following: 
  9.12     (a) Sue and be sued.  A judgment against the reinsurance 
  9.13  association shall not create any direct liability against the 
  9.14  individual members of the reinsurance association.  The 
  9.15  reinsurance association shall provide in the plan of operation 
  9.16  for the indemnification, to the extent provided in the plan of 
  9.17  operation, of the members, members of the board of directors of 
  9.18  the reinsurance association, and officers, employees and other 
  9.19  persons lawfully acting on behalf of the reinsurance 
  9.20  association; 
  9.21     (b) Reinsure all or any portion of its potential liability, 
  9.22  including potential liability in excess of the prefunded limit, 
  9.23  with reinsurers licensed to transact insurance in this state or 
  9.24  otherwise approved by the commissioner of labor and industry 
  9.25  commerce; 
  9.26     (c) Provide for appropriate housing, equipment, and 
  9.27  personnel as may be necessary to assure the efficient operation 
  9.28  of the reinsurance association; 
  9.29     (d) Contract for goods and services, including but not 
  9.30  limited to independent claims management, actuarial, investment, 
  9.31  and legal services from others within or without this state to 
  9.32  assure the efficient operation of the reinsurance association; 
  9.33     (e) Adopt operating rules, consistent with the plan of 
  9.34  operation, for the administration of the reinsurance 
  9.35  association, enforce those operating rules, and delegate 
  9.36  authority as necessary to assure the proper administration and 
 10.1   operation of the reinsurance association; 
 10.2      (f) Intervene in or prosecute at any time, including but 
 10.3   not limited to intervention or prosecution as subrogee to the 
 10.4   member's rights in a third party action, any proceeding under 
 10.5   this chapter or chapter 176 in which liability of the 
 10.6   reinsurance association may, in the opinion of the board of 
 10.7   directors of the reinsurance association or its designee 
 10.8   commissioner of commerce, be established, or the reinsurance 
 10.9   association affected in any other way; 
 10.10     (g) The net proceeds derived from intervention or 
 10.11  prosecution of any subrogation interest, or other recovery, 
 10.12  shall first be used to reimburse the reinsurance association for 
 10.13  amounts paid or payable pursuant to this chapter, together with 
 10.14  any expenses of recovery, including attorney's fees, and any 
 10.15  excess shall be paid to the member or other person entitled 
 10.16  thereto, as determined by the board of directors of the 
 10.17  reinsurance association commissioner of commerce, unless 
 10.18  otherwise ordered by a court. 
 10.19     (h) Hear and determine complaints of a company or other 
 10.20  interested party concerning the operation of the reinsurance 
 10.21  association; and 
 10.22     (i) Perform other acts not specifically enumerated in this 
 10.23  section which are necessary or proper to accomplish the purposes 
 10.24  of the reinsurance association and which are not inconsistent 
 10.25  with sections 79.34 to 79.40 or the plan of operation. 
 10.26     Sec. 7.  Minnesota Statutes 1998, section 79.361, 
 10.27  subdivision 1, is amended to read: 
 10.28     Subdivision 1.  [SCOPE.] This section governs the 
 10.29  distribution of excess surplus of the workers' compensation 
 10.30  reinsurance association declared after January 1, 1993.  A 
 10.31  distribution of excess surplus is declared on the date the board 
 10.32  votes commissioner of commerce determines to make a distribution.
 10.33  No distribution of excess surplus other than that provided by 
 10.34  this section may be made.  
 10.35     Sec. 8.  Minnesota Statutes 1998, section 79.37, is amended 
 10.36  to read: 
 11.1      79.37 [ADVISORY BOARD OF DIRECTORS.] 
 11.2      A board of directors of the reinsurance association is 
 11.3   created and is responsible for the operation of the reinsurance 
 11.4   association consistent with the plan of operation and sections 
 11.5   79.34 to 79.40.  The commissioner of commerce shall appoint an 
 11.6   advisory board consists consisting of 13 directors.  
 11.7   Four directors shall members must represent insurers,; two 
 11.8   directors shall members must represent employers,; two shall 
 11.9   members must represent self-insurers; two directors shall 
 11.10  members must represent employees; the commissioner of finance 
 11.11  and the executive director of the state board of investment or 
 11.12  their designees shall serve as directors members; and 
 11.13  one director shall member must represent the public.  Insurer 
 11.14  members of the reinsurance association shall elect may nominate 
 11.15  the directors members who represent insurers; self-insurer 
 11.16  members of the reinsurance association shall elect may nominate 
 11.17  the directors members who represent self-insurers; and the 
 11.18  commissioner of labor and industry commerce shall appoint the 
 11.19  remaining directors for the terms authorized in the plan of 
 11.20  operation.  Each director is entitled to one vote.  Terms of the 
 11.21  directors shall be staggered so that the terms of all the 
 11.22  directors do not expire at the same time and so that a director 
 11.23  does not serve a term of more than four years.  The board shall 
 11.24  select a chair and other officers it deems appropriate. 
 11.25     A majority of the directors currently holding office 
 11.26  constitutes a quorum.  Action may be taken by a majority vote of 
 11.27  the directors present. 
 11.28     The board shall take reasonable and prudent action 
 11.29  regarding the management of the reinsurance association 
 11.30  including but not limited to determining the entity who shall 
 11.31  manage the daily affairs of the reinsurance association.  The 
 11.32  board shall report to the governor of its actions regarding the 
 11.33  entity selected to manage the reinsurance association and the 
 11.34  reasons for the selection. 
 11.35     Sec. 9.  Minnesota Statutes 1998, section 79.371, 
 11.36  subdivision 2, is amended to read: 
 12.1      Subd. 2.  [PERSONAL LIABILITY; EXCLUDED.] The members of 
 12.2   the advisory board and officers or employees of the association 
 12.3   are not liable personally, either jointly or severally, for the 
 12.4   obligation created by this section. 
 12.5      Sec. 10.  Minnesota Statutes 1998, section 79.38, 
 12.6   subdivision 1, is amended to read: 
 12.7      Subdivision 1.  [PROVISIONS.] The commissioner of commerce 
 12.8   shall by rule adopt a plan of operation shall to provide for all 
 12.9   of the following: 
 12.10     (a) The establishment of necessary facilities; 
 12.11     (b) The management and operation of the reinsurance 
 12.12  association; 
 12.13     (c) A preliminary premium, payable by each member in 
 12.14  proportion to its total premium in the year preceding the 
 12.15  inauguration of the reinsurance association, for initial 
 12.16  expenses necessary to commence operation of the reinsurance 
 12.17  association; 
 12.18     (d) Procedures to be utilized in charging premiums, 
 12.19  including adjustments from excess or deficient premiums from 
 12.20  prior periods; 
 12.21     (e) Procedures governing the actual payment of premiums to 
 12.22  the reinsurance association; 
 12.23     (f) Reimbursement of each member of the advisory board by 
 12.24  the reinsurance association for actual and necessary expenses 
 12.25  incurred on reinsurance association business; and 
 12.26     (g) The composition, terms, compensation and other 
 12.27  necessary rules consistent with section 79.37 for boards of 
 12.28  directors of the reinsurance association; 
 12.29     (h) The investment policy of the reinsurance association; 
 12.30  and 
 12.31     (i) Any other matters required by or necessary to 
 12.32  effectively implement sections 79.34 to 79.40. 
 12.33     Sec. 11.  [TRANSFER.] 
 12.34     Powers and responsibilities relating to the workers' 
 12.35  compensation reinsurance association are transferred from the 
 12.36  commissioner of labor and industry to the commissioner of 
 13.1   commerce in accordance with Minnesota Statutes, section 15.039. 
 13.2      Sec. 12.  [REPEALER.] 
 13.3      Minnesota Statutes 1998, sections 79.362; 79.371, 
 13.4   subdivision 1; 79.38, subdivisions 2 and 3; and 79.39, are 
 13.5   repealed. 
 13.6      Sec. 13.  [EFFECTIVE DATE.] 
 13.7      Sections 1 to 11 are effective July 1, 1999.