SF 3644

2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to workers' compensation; increasing 
  1.3             benefits; clarifying language; providing for a 
  1.4             transfer of funds; modifying various workers' 
  1.5             compensation provisions; amending Minnesota Statutes 
  1.6             1998, sections 176.011, subdivisions 3 and 20; 
  1.7             176.061, subdivisions 3, 5, 7, 10, and by adding a 
  1.8             subdivision; 176.081, subdivision 1; 176.101, 
  1.9             subdivisions 1, 2a, and 8; 176.102, subdivisions 3 and 
  1.10            11; 176.106, subdivision 7; 176.111, subdivisions 5, 
  1.11            18, and by adding a subdivision; 176.129, subdivisions 
  1.12            3 and 4; 176.231, subdivision 2; and 176.611, 
  1.13            subdivision 2a; Minnesota Statutes 1999 Supplement, 
  1.14            section 176.011, subdivision 9; repealing Minnesota 
  1.15            Statutes 1998, section 176.129, subdivision 2. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1998, section 176.011, 
  1.18  subdivision 3, is amended to read: 
  1.19     Subd. 3.  [DAILY WAGE.] "Daily wage" means the daily wage 
  1.20  of the employee in the employment engaged in at the time of 
  1.21  injury but does not include tips and gratuities paid directly to 
  1.22  an employee by a customer of the employer and not accounted for 
  1.23  by the employee to the employer.  If the amount of the daily 
  1.24  wage received or to be received by the employee in the 
  1.25  employment engaged in at the time of injury was irregular or 
  1.26  difficult to determine, or if the employment was part time, the 
  1.27  daily wage shall be computed by dividing the total amount of 
  1.28  wages, vacation pay, and holiday pay the employee actually 
  1.29  earned in such employment in the last 26 weeks, by the total 
  1.30  number of days in which the employee actually performed any of 
  2.1   the duties of such employment such wages, vacation pay, and 
  2.2   holiday pay was earned, provided further, that in the case of 
  2.3   the construction industry, mining industry, or other industry 
  2.4   where the hours of work are affected by seasonal conditions, the 
  2.5   weekly wage shall not be less than five times the daily 
  2.6   wage.  If the employee worked or earned less than a full day's 
  2.7   worth of wages, vacation pay, or holiday pay, the total amount 
  2.8   earned shall be divided by the corresponding proportion of that 
  2.9   day.  Where board or allowances other than tips and gratuities 
  2.10  are made to an employee in addition to wages as a part of the 
  2.11  wage contract they are deemed a part of earnings and computed at 
  2.12  their value to the employee.  In the case of persons performing 
  2.13  services for municipal corporations in the case of emergency, 
  2.14  then the normal working day shall be considered and computed as 
  2.15  eight hours, and in cases where such services are performed 
  2.16  gratis or without fixed compensation the daily wage of the 
  2.17  person injured shall, for the purpose of calculating 
  2.18  compensation payable under this chapter, be taken to be the 
  2.19  usual going wage paid for similar services in municipalities 
  2.20  where such services are performed by paid employees.  If, at the 
  2.21  time of injury, the employee was regularly employed by two or 
  2.22  more employers, the employee's earnings in all such employments 
  2.23  shall be included in the computation of daily wage. 
  2.24     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.25  176.011, subdivision 9, is amended to read: 
  2.26     Subd. 9.  [EMPLOYEE.] "Employee" means any person who 
  2.27  performs services for another for hire including the following: 
  2.28     (1) an alien; 
  2.29     (2) a minor; 
  2.30     (3) a sheriff, deputy sheriff, constable, marshal, police 
  2.31  officer, firefighter, county highway engineer, and peace officer 
  2.32  while engaged in the enforcement of peace or in the pursuit or 
  2.33  capture of a person charged with or suspected of crime; 
  2.34     (4) a person requested or commanded to aid an officer in 
  2.35  arresting or retaking a person who has escaped from lawful 
  2.36  custody, or in executing legal process, in which cases, for 
  3.1   purposes of calculating compensation under this chapter, the 
  3.2   daily wage of the person shall be the prevailing wage for 
  3.3   similar services performed by paid employees; 
  3.4      (5) a county assessor; 
  3.5      (6) an elected or appointed official of the state, or of a 
  3.6   county, city, town, school district, or governmental subdivision 
  3.7   in the state.  An officer of a political subdivision elected or 
  3.8   appointed for a regular term of office, or to complete the 
  3.9   unexpired portion of a regular term, shall be included only 
  3.10  after the governing body of the political subdivision has 
  3.11  adopted an ordinance or resolution to that effect; 
  3.12     (7) an executive officer of a corporation, except those 
  3.13  executive officers excluded by section 176.041; 
  3.14     (8) a voluntary uncompensated worker, other than an inmate, 
  3.15  rendering services in state institutions under the commissioners 
  3.16  of human services and corrections similar to those of officers 
  3.17  and employees of the institutions, and whose services have been 
  3.18  accepted or contracted for by the commissioner of human services 
  3.19  or corrections as authorized by law.  In the event of injury or 
  3.20  death of the worker, the daily wage of the worker, for the 
  3.21  purpose of calculating compensation under this chapter, shall be 
  3.22  the usual wage paid at the time of the injury or death for 
  3.23  similar services in institutions where the services are 
  3.24  performed by paid employees; 
  3.25     (9) a voluntary uncompensated worker engaged in peace time 
  3.26  in the civil defense program when ordered to training or other 
  3.27  duty by the state or any political subdivision of it.  The daily 
  3.28  wage of the worker, for the purpose of calculating compensation 
  3.29  under this chapter, shall be the usual wage paid at the time of 
  3.30  the injury or death for similar services performed by paid 
  3.31  employees; 
  3.32     (10) a voluntary uncompensated worker participating in a 
  3.33  program established by a local social services agency.  For 
  3.34  purposes of this clause, "local social services agency" means 
  3.35  any agency established under section 393.01.  In the event of 
  3.36  injury or death of the worker, the wage of the worker, for the 
  4.1   purpose of calculating compensation under this chapter, shall be 
  4.2   the usual wage paid in the county at the time of the injury or 
  4.3   death for similar services performed by paid employees working a 
  4.4   normal day and week; 
  4.5      (11) a voluntary uncompensated worker accepted by the 
  4.6   commissioner of natural resources who is rendering services as a 
  4.7   volunteer pursuant to section 84.089.  The daily wage of the 
  4.8   worker for the purpose of calculating compensation under this 
  4.9   chapter, shall be the usual wage paid at the time of injury or 
  4.10  death for similar services performed by paid employees; 
  4.11     (12) a voluntary uncompensated worker in the building and 
  4.12  construction industry who renders services for joint 
  4.13  labor-management nonprofit community service projects.  The 
  4.14  daily wage of the worker for the purpose of calculating 
  4.15  compensation under this chapter shall be the usual wage paid at 
  4.16  the time of injury or death for similar services performed by 
  4.17  paid employees; 
  4.18     (13) a member of the military forces, as defined in section 
  4.19  190.05, while in state active service, as defined in section 
  4.20  190.05, subdivision 5a.  The daily wage of the member for the 
  4.21  purpose of calculating compensation under this chapter shall be 
  4.22  based on the member's usual earnings in civil life.  If there is 
  4.23  no evidence of previous occupation or earning, the trier of fact 
  4.24  shall consider the member's earnings as a member of the military 
  4.25  forces; 
  4.26     (14) a voluntary uncompensated worker, accepted by the 
  4.27  director of the Minnesota historical society, rendering services 
  4.28  as a volunteer, pursuant to chapter 138.  The daily wage of the 
  4.29  worker, for the purposes of calculating compensation under this 
  4.30  chapter, shall be the usual wage paid at the time of injury or 
  4.31  death for similar services performed by paid employees; 
  4.32     (15) a voluntary uncompensated worker, other than a 
  4.33  student, who renders services at the Minnesota state academy for 
  4.34  the deaf or the Minnesota state academy for the blind, and whose 
  4.35  services have been accepted or contracted for by the 
  4.36  commissioner of children, families, and learning, as authorized 
  5.1   by law.  In the event of injury or death of the worker, the 
  5.2   daily wage of the worker, for the purpose of calculating 
  5.3   compensation under this chapter, shall be the usual wage paid at 
  5.4   the time of the injury or death for similar services performed 
  5.5   in institutions by paid employees; 
  5.6      (16) a voluntary uncompensated worker, other than a 
  5.7   resident of the veterans home, who renders services at a 
  5.8   Minnesota veterans home, and whose services have been accepted 
  5.9   or contracted for by the commissioner of veterans affairs, as 
  5.10  authorized by law.  In the event of injury or death of the 
  5.11  worker, the daily wage of the worker, for the purpose of 
  5.12  calculating compensation under this chapter, shall be the usual 
  5.13  wage paid at the time of the injury or death for similar 
  5.14  services performed in institutions by paid employees; 
  5.15     (17) a worker who renders in-home attendant care services 
  5.16  to a physically handicapped person, and who is paid directly by 
  5.17  the commissioner of human services for these services, shall be 
  5.18  an employee of the state within the meaning of this subdivision, 
  5.19  but for no other purpose; 
  5.20     (18) students enrolled in and regularly attending the 
  5.21  medical school of the University of Minnesota in the graduate 
  5.22  school program or the postgraduate program.  The students shall 
  5.23  not be considered employees for any other purpose.  In the event 
  5.24  of the student's injury or death, the weekly wage of the student 
  5.25  for the purpose of calculating compensation under this chapter, 
  5.26  shall be the annualized educational stipend awarded to the 
  5.27  student, divided by 52 weeks.  The institution in which the 
  5.28  student is enrolled shall be considered the "employer" for the 
  5.29  limited purpose of determining responsibility for paying 
  5.30  benefits under this chapter; 
  5.31     (19) a faculty member of the University of Minnesota 
  5.32  employed for an academic year is also an employee for the period 
  5.33  between that academic year and the succeeding academic year if: 
  5.34     (a) the member has a contract or reasonable assurance of a 
  5.35  contract from the University of Minnesota for the succeeding 
  5.36  academic year; and 
  6.1      (b) the personal injury for which compensation is sought 
  6.2   arises out of and in the course of activities related to the 
  6.3   faculty member's employment by the University of Minnesota; 
  6.4      (20) a worker who performs volunteer ambulance driver or 
  6.5   attendant services is an employee of the political subdivision, 
  6.6   nonprofit hospital, nonprofit corporation, or other entity for 
  6.7   which the worker performs the services.  The daily wage of the 
  6.8   worker for the purpose of calculating compensation under this 
  6.9   chapter shall be the usual wage paid at the time of injury or 
  6.10  death for similar services performed by paid employees; 
  6.11     (21) a voluntary uncompensated worker, accepted by the 
  6.12  commissioner of administration, rendering services as a 
  6.13  volunteer at the department of administration.  In the event of 
  6.14  injury or death of the worker, the daily wage of the worker, for 
  6.15  the purpose of calculating compensation under this chapter, 
  6.16  shall be the usual wage paid at the time of the injury or death 
  6.17  for similar services performed in institutions by paid 
  6.18  employees; 
  6.19     (22) a voluntary uncompensated worker rendering service 
  6.20  directly to the pollution control agency.  The daily wage of the 
  6.21  worker for the purpose of calculating compensation payable under 
  6.22  this chapter is the usual going wage paid at the time of injury 
  6.23  or death for similar services if the services are performed by 
  6.24  paid employees; 
  6.25     (23) a voluntary uncompensated worker while volunteering 
  6.26  services as a first responder or as a member of a law 
  6.27  enforcement assistance organization while acting under the 
  6.28  supervision and authority of a political subdivision.  The daily 
  6.29  wage of the worker for the purpose of calculating compensation 
  6.30  payable under this chapter is the usual going wage paid at the 
  6.31  time of injury or death for similar services if the services are 
  6.32  performed by paid employees; and 
  6.33     (24) a voluntary uncompensated member of the civil air 
  6.34  patrol rendering service on the request and under the authority 
  6.35  of the state or any of its political subdivisions.  The daily 
  6.36  wage of the member for the purposes of calculating compensation 
  7.1   payable under this chapter is the usual going wage paid at the 
  7.2   time of injury or death for similar services if the services are 
  7.3   performed by paid employees. 
  7.4      If it is difficult to determine the daily wage as provided 
  7.5   in this subdivision, the trier of fact may determine the wage 
  7.6   upon which the compensation is payable. 
  7.7      Sec. 3.  Minnesota Statutes 1998, section 176.011, 
  7.8   subdivision 20, is amended to read: 
  7.9      Subd. 20.  [AVERAGE WEEKLY WAGE.] The statewide average 
  7.10  weekly wage for any year means that wage determined by the 
  7.11  commissioner in the following manner:  On or before July 1 
  7.12  preceding the year in which the wage is to be applicable, the 
  7.13  total wages reported on contribution tax reports to the 
  7.14  department of economic security for the preceding 12 months 
  7.15  ending on December 31 of that year shall be divided by the 
  7.16  average monthly number of insured covered workers (determined by 
  7.17  dividing the total insured covered workers reported for the year 
  7.18  ending December 31 by 12).  The average annual wage thus 
  7.19  obtained shall be divided by 52 and the average weekly wage thus 
  7.20  determined rounded to the next highest dollar. 
  7.21     Sec. 4.  Minnesota Statutes 1998, section 176.061, 
  7.22  subdivision 3, is amended to read: 
  7.23     Subd. 3.  [ELECTION TO RECEIVE BENEFITS FROM EMPLOYER; 
  7.24  SUBROGATION.] If the employee or the employee's dependents elect 
  7.25  to receive benefits from the employer, or the special 
  7.26  compensation fund, the employer or the special compensation fund 
  7.27  has a right of indemnity or is subrogated to the right of the 
  7.28  employee or the employee's dependents to recover damages against 
  7.29  the other party.  The employer, or the attorney general on 
  7.30  behalf of the special compensation fund, may bring legal 
  7.31  proceedings against the party and recover the aggregate amount 
  7.32  of benefits payable to or on behalf of the employee or the 
  7.33  employee's dependents, regardless of whether such benefits are 
  7.34  recoverable by the employee or the employee's dependents at 
  7.35  common law or by statute together with costs, disbursements, and 
  7.36  reasonable attorney's fees of the action. 
  8.1      If an action as provided in this chapter is prosecuted by 
  8.2   the employee, the employer, or the attorney general on behalf of 
  8.3   the special compensation fund, against the third person, and 
  8.4   results in judgment against the third person, or settlement by 
  8.5   the third person, the employer has no liability to reimburse or 
  8.6   hold the third person harmless on the judgment or settlement in 
  8.7   absence of a written agreement to do so executed prior to the 
  8.8   injury. 
  8.9      Sec. 5.  Minnesota Statutes 1998, section 176.061, 
  8.10  subdivision 5, is amended to read: 
  8.11     Subd. 5.  [CUMULATIVE REMEDIES.] If an injury or death for 
  8.12  which benefits are payable is caused under circumstances which 
  8.13  created a legal liability for damages on the part of a party 
  8.14  other than the employer, that party being then insured or 
  8.15  self-insured in accordance with this chapter, and the provisions 
  8.16  of subdivisions 1, 2, 3, and 4 do not apply, or the party other 
  8.17  than the employer is not then insured or self-insured as 
  8.18  provided by this chapter, legal proceedings may be taken by the 
  8.19  employee or the employee's dependents in accordance with clause 
  8.20  (a), or by the employer, or by the attorney general on behalf of 
  8.21  the special compensation fund, in accordance with clause (b), 
  8.22  against the other party to recover damages, notwithstanding the 
  8.23  payment of benefits by the employer or the special compensation 
  8.24  fund or their liability to pay benefits. 
  8.25     (a) If an action against the other party is brought by the 
  8.26  injured employee or the employee's dependents and a judgment is 
  8.27  obtained and paid or settlement is made with the other party, 
  8.28  the employer or the special compensation fund may deduct from 
  8.29  the benefits payable the amount actually received by the 
  8.30  employee or dependents or paid on their behalf in accordance 
  8.31  with subdivision 6.  If the action is not diligently prosecuted 
  8.32  or if the court deems it advisable in order to protect the 
  8.33  interests of the employer or the special compensation fund, upon 
  8.34  application the court may grant the employer or the special 
  8.35  compensation fund the right to intervene in the action for the 
  8.36  prosecution of the action.  If the injured employee or the 
  9.1   employee's dependents or any party on their behalf receives 
  9.2   benefits from the employer or the special compensation fund or 
  9.3   institutes proceedings to recover benefits or accepts from the 
  9.4   employer or the special compensation fund any payment on account 
  9.5   of the benefits, the employer or the special compensation fund 
  9.6   is subrogated to the rights of the employee or the employee's 
  9.7   dependents or has a right of indemnity against a third party 
  9.8   regardless of whether such benefits are recoverable by the 
  9.9   employee or the employee's dependents at common law or by 
  9.10  statute.  The employer or the attorney general on behalf of the 
  9.11  special compensation fund may maintain a separate action or 
  9.12  continue an action already instituted.  This action may be 
  9.13  maintained in the name of the employee or the names of the 
  9.14  employee's dependents, or in the name of the employer, or in the 
  9.15  name of the attorney general on behalf of the special 
  9.16  compensation fund, against the other party for the recovery of 
  9.17  damages.  If the action is not diligently prosecuted by the 
  9.18  employer or the attorney general on behalf of the special 
  9.19  compensation fund, or if the court deems it advisable in order 
  9.20  to protect the interest of the employee, the court, upon 
  9.21  application, may grant to the employee or the employee's 
  9.22  dependents the right to intervene in the action for the 
  9.23  prosecution of the action.  The proceeds of the action or 
  9.24  settlement of the action shall be paid in accordance with 
  9.25  subdivision 6. 
  9.26     (b) If an employer, being then insured, sustains damages 
  9.27  due to a change in workers' compensation insurance premiums, 
  9.28  whether by a failure to achieve a decrease or by a retroactive 
  9.29  or prospective increase, as a result of the injury or death of 
  9.30  an employee which was caused under circumstances which created a 
  9.31  legal liability for damages on the part of a party other than 
  9.32  the employer, the employer, notwithstanding other remedies 
  9.33  provided, may maintain an action against the other party for 
  9.34  recovery of the premiums.  This cause of action may be brought 
  9.35  either by joining in an action described in clause (a) or by a 
  9.36  separate action.  Damages recovered under this clause are for 
 10.1   the benefit of the employer and the provisions of subdivision 6 
 10.2   are not applicable to the damages. 
 10.3      (c) The third party is not liable to any person other than 
 10.4   the employee or the employee's dependents, or the employer, or 
 10.5   the special compensation fund, for any damages resulting from 
 10.6   the injury or death. 
 10.7      A coemployee working for the same employer is not liable 
 10.8   for a personal injury incurred by another employee unless the 
 10.9   injury resulted from the gross negligence of the coemployee or 
 10.10  was intentionally inflicted by the coemployee. 
 10.11     Sec. 6.  Minnesota Statutes 1998, section 176.061, 
 10.12  subdivision 7, is amended to read: 
 10.13     Subd. 7.  [MEDICAL TREATMENT.] The liability of an employer 
 10.14  or the special compensation fund for medical treatment or 
 10.15  payment of any other compensation under this chapter is not 
 10.16  affected by the fact that the employee was injured through the 
 10.17  fault or negligence of a third party, against whom the employee 
 10.18  may have a cause of action which may be sued under this chapter, 
 10.19  but the employer, or the attorney general on behalf of the 
 10.20  special compensation fund, has a separate additional cause of 
 10.21  action against the third party to recover any amounts paid for 
 10.22  medical treatment or for other compensation payable under this 
 10.23  section resulting from the negligence of the third 
 10.24  party regardless of whether such other compensation is 
 10.25  recoverable by the employee or the employee's dependents at 
 10.26  common law or by statute.  This separate cause of action of the 
 10.27  employer or the attorney general on behalf of the special 
 10.28  compensation fund may be asserted in a separate action brought 
 10.29  by the employer or the attorney general on behalf of the special 
 10.30  compensation fund against the third party, or in the action 
 10.31  commenced by the employee or the employer or the attorney 
 10.32  general on behalf of the special compensation fund under this 
 10.33  chapter, but in the latter case the cause of action shall be 
 10.34  separately stated, the amount awarded in the action shall be 
 10.35  separately set out in the verdict, and the amount recovered by 
 10.36  suit or otherwise as reimbursement for medical expenses or other 
 11.1   compensation shall be for the benefit of the employer or the 
 11.2   special compensation fund to the extent that the employer or the 
 11.3   special compensation fund has paid or will be required to pay 
 11.4   compensation or pay for medical treatment of the injured 
 11.5   employee and does not affect the amount of periodic compensation 
 11.6   to be paid. 
 11.7      Sec. 7.  Minnesota Statutes 1998, section 176.061, 
 11.8   subdivision 10, is amended to read: 
 11.9      Subd. 10.  [INDEMNITY.] Notwithstanding the provisions of 
 11.10  chapter 65B or any other law to the contrary, an employer has a 
 11.11  right of indemnity for any compensation paid or payable pursuant 
 11.12  to this chapter, regardless of whether such compensation is 
 11.13  recoverable by the employee or the employee's dependents at 
 11.14  common law or by statute, including temporary total 
 11.15  compensation, temporary partial compensation, permanent partial 
 11.16  compensation, medical compensation, rehabilitation, death, and 
 11.17  permanent total compensation.  
 11.18     Sec. 8.  Minnesota Statutes 1998, section 176.061, is 
 11.19  amended by adding a subdivision to read: 
 11.20     Subd. 11.  [RIGHT OF CONTRIBUTION.] To the extent the 
 11.21  employer has fault, separate from the fault of the injured 
 11.22  employee to whom workers' compensation benefits are payable, any 
 11.23  nonemployer third party who is liable has a right of 
 11.24  contribution against the employer in an amount proportional to 
 11.25  the employer's percentage of fault but not to exceed the net 
 11.26  amount the employer recovered pursuant to subdivision 6, 
 11.27  paragraphs (c) and (d).  The employer may avoid contribution 
 11.28  exposure by affirmatively waiving, before selection of the jury, 
 11.29  the right to recover workers' compensation benefits paid and 
 11.30  payable, thus removing compensation benefits from the damages 
 11.31  payable by any third party. 
 11.32     Procedurally, if the employer waives or settles the right 
 11.33  to recover workers' compensation benefits paid and payable, the 
 11.34  employee or the employee's dependents have the option to present 
 11.35  all common law or wrongful death damages whether they are 
 11.36  recoverable under the Workers' Compensation Act or not.  
 12.1   Following the verdict, the trial court will deduct any awarded 
 12.2   damages that are duplicative of workers' compensation benefits 
 12.3   paid or payable. 
 12.4      Sec. 9.  Minnesota Statutes 1998, section 176.081, 
 12.5   subdivision 1, is amended to read: 
 12.6      Subdivision 1.  [LIMITATION OF FEES.] (a) A fee for legal 
 12.7   services of 25 percent of the first $4,000 of compensation 
 12.8   awarded to the employee and 20 percent of the next $60,000 of 
 12.9   compensation awarded to the employee is the maximum permissible 
 12.10  fee and does not require approval by the commissioner, 
 12.11  compensation judge, or any other party.  All fees, including 
 12.12  fees for obtaining medical or rehabilitation benefits, must be 
 12.13  calculated according to the formula under this subdivision, 
 12.14  except as otherwise provided in clause (1) or (2).  
 12.15     (1) The contingent attorney fee for recovery of monetary 
 12.16  benefits according to the formula in this section is presumed to 
 12.17  be adequate to cover recovery of medical and rehabilitation 
 12.18  benefit or services concurrently in dispute.  Attorney fees for 
 12.19  recovery of medical or rehabilitation benefits or services shall 
 12.20  be assessed against the employer or insurer only if the attorney 
 12.21  establishes that the contingent fee is inadequate to reasonably 
 12.22  compensate the attorney for representing the employee in the 
 12.23  medical or rehabilitation dispute.  In cases where the 
 12.24  contingent fee is inadequate the employer or insurer is liable 
 12.25  for attorney fees based on the formula in this subdivision or in 
 12.26  clause (2). 
 12.27     For the purposes of applying the formula where the employer 
 12.28  or insurer is liable for attorney fees, the amount of 
 12.29  compensation awarded for obtaining disputed medical and 
 12.30  rehabilitation benefits under sections 176.102, 176.135, and 
 12.31  176.136 shall be the dollar value of the medical or 
 12.32  rehabilitation benefit awarded, where ascertainable.  
 12.33     (2) The maximum attorney fee for obtaining a change of 
 12.34  doctor or qualified rehabilitation consultant, or any other 
 12.35  disputed medical or rehabilitation benefit for which a dollar 
 12.36  value is not reasonably ascertainable, is the amount charged in 
 13.1   hourly fees for the representation or $500, whichever is less, 
 13.2   to be paid by the employer or insurer. 
 13.3      (3) The fees for obtaining disputed medical or 
 13.4   rehabilitation benefits are included in the $13,000 limit in 
 13.5   paragraph (b).  An attorney must concurrently file all 
 13.6   outstanding disputed issues.  An attorney is not entitled to 
 13.7   attorney fees for representation in any issue which could 
 13.8   reasonably have been addressed during the pendency of other 
 13.9   issues for the same injury. 
 13.10     (b) All fees for legal services related to the same injury 
 13.11  are cumulative and may not exceed $13,000.  If multiple injuries 
 13.12  are the subject of a dispute, the commissioner, compensation 
 13.13  judge, or court of appeals shall specify the attorney fee 
 13.14  attributable to each injury.  
 13.15     (c) If the employer or the insurer or the defendant is 
 13.16  given written notice of claims for legal services or 
 13.17  disbursements, the claim shall be a lien against the amount paid 
 13.18  or payable as compensation.  Subject to the foregoing maximum 
 13.19  amount for attorney fees, up to 25 percent of the first $4,000 
 13.20  of periodic compensation awarded to the employee and 20 percent 
 13.21  of the next $60,000 of periodic compensation awarded to the 
 13.22  employee may be withheld from the periodic payments for attorney 
 13.23  fees or disbursements if the payor of the funds clearly 
 13.24  indicates on the check or draft issued to the employee for 
 13.25  payment the purpose of the withholding, the name of the 
 13.26  attorney, the amount withheld, and the gross amount of the 
 13.27  compensation payment before withholding.  In no case shall fees 
 13.28  be calculated on the basis of any undisputed portion of 
 13.29  compensation awards.  Allowable fees under this chapter shall be 
 13.30  based solely upon genuinely disputed claims or portions of 
 13.31  claims, including disputes related to the payment of 
 13.32  rehabilitation benefits or to other aspects of a rehabilitation 
 13.33  plan.  The existence of a dispute is dependent upon a 
 13.34  disagreement after the employer or insurer has had adequate time 
 13.35  and information to take a position on liability.  Neither the 
 13.36  holding of a hearing nor the filing of an application for a 
 14.1   hearing alone may determine the existence of a dispute.  Except 
 14.2   where the employee is represented by an attorney in other 
 14.3   litigation pending at the department or at the office of 
 14.4   administrative hearings, a fee may not be charged after June 1, 
 14.5   1996, for services with respect to a medical or rehabilitation 
 14.6   issue arising under section 176.102, 176.135, or 176.136 
 14.7   performed before the employee has consulted with the department 
 14.8   and the department certifies that there is a dispute and that it 
 14.9   has tried to resolve the dispute.  
 14.10     (d) An attorney who is claiming legal fees for representing 
 14.11  an employee in a workers' compensation matter shall file a 
 14.12  statement of attorney fees with the commissioner, compensation 
 14.13  judge before whom the matter was heard, or workers' compensation 
 14.14  court of appeals on cases before the court.  A copy of the 
 14.15  signed retainer agreement shall also be filed.  The employee and 
 14.16  insurer shall receive a copy of the statement.  The statement 
 14.17  shall be on a form prescribed by the commissioner and shall 
 14.18  report the number of hours spent on the case.  
 14.19     (e) Employers and insurers may not pay attorney fees or 
 14.20  wages for legal services of more than $13,000 per case.  
 14.21     (f) Each insurer and self-insured employer shall file 
 14.22  annual statements with the commissioner detailing the total 
 14.23  amount of legal fees and other legal costs incurred by the 
 14.24  insurer or employer during the year.  The statement shall 
 14.25  include the amount paid for outside and in-house counsel, 
 14.26  deposition and other witness fees, and all other costs relating 
 14.27  to litigation. 
 14.28     (g) An attorney must file a statement of attorney fees 
 14.29  within 12 months of the date the attorney has submitted the 
 14.30  written notice specified in paragraph (c).  If the attorney has 
 14.31  not filed a statement of attorney fees within the 12 months, the 
 14.32  attorney must send a renewed notice of lien to the insurer.  If 
 14.33  12 months have elapsed since the last notice of lien has been 
 14.34  received by the insurer and no statement of attorney fees has 
 14.35  been filed, the insurer must release the withheld money to the 
 14.36  employee, except that before releasing the money to the 
 15.1   employee, the insurer must give the attorney 30 days' written 
 15.2   notice of the pending release.  The insurer must not release the 
 15.3   money if the attorney files a statement of attorney fees within 
 15.4   the 30 days. 
 15.5      Sec. 10.  Minnesota Statutes 1998, section 176.101, 
 15.6   subdivision 1, is amended to read: 
 15.7      Subdivision 1.  [TEMPORARY TOTAL DISABILITY.] (a) For 
 15.8   injury producing temporary total disability, the compensation is 
 15.9   66-2/3 percent of the weekly wage at the time of injury. 
 15.10     (b)  (1) Commencing on October 1, 1995 2000, the maximum 
 15.11  weekly compensation payable is $615 $750 per week. 
 15.12     (2) The workers' compensation advisory council may consider 
 15.13  adjustment increases and make recommendations to the legislature.
 15.14     (c) The minimum weekly compensation payable is $104 $130 
 15.15  per week or the injured employee's actual weekly wage, whichever 
 15.16  is less. 
 15.17     (d) Temporary total compensation shall be paid during the 
 15.18  period of disability subject to the cessation and recommencement 
 15.19  conditions in paragraphs (e) to (l). 
 15.20     (e) Temporary total disability compensation shall cease 
 15.21  when the employee returns to work.  Except as otherwise provided 
 15.22  in section 176.102, subdivision 11, temporary total disability 
 15.23  compensation may only be recommenced following cessation under 
 15.24  this paragraph, paragraph (h), or paragraph (j) prior to payment 
 15.25  of 104 weeks of temporary total disability compensation and only 
 15.26  as follows: 
 15.27     (1) if temporary total disability compensation ceased 
 15.28  because the employee returned to work, it may be recommenced if 
 15.29  the employee is laid off or terminated for reasons other than 
 15.30  misconduct within one year after returning to work if the layoff 
 15.31  or termination occurs prior to 90 days after the employee has 
 15.32  reached maximum medical improvement.  Recommenced temporary 
 15.33  total disability compensation under this clause ceases when any 
 15.34  of the cessation events in paragraphs (e) to (l) occurs; or 
 15.35     (2) if temporary total disability compensation ceased 
 15.36  because the employee returned to work or ceased under paragraph 
 16.1   (h) or (j), it may be recommenced if the employee is medically 
 16.2   unable to continue at a job due to the injury.  Where the 
 16.3   employee is medically unable to continue working due to the 
 16.4   injury, temporary total disability compensation may continue 
 16.5   until any of the cessation events in paragraphs (e) to (l) 
 16.6   occurs following recommencement.  If an employee who has not yet 
 16.7   received temporary total disability compensation becomes 
 16.8   medically unable to continue working due to the injury after 
 16.9   reaching maximum medical improvement, temporary total disability 
 16.10  compensation shall commence and shall continue until any of the 
 16.11  events in paragraphs (e) to (l) occurs following commencement.  
 16.12  For purposes of commencement or recommencement under this clause 
 16.13  only, a new period of maximum medical improvement under 
 16.14  paragraph (j) begins when the employee becomes medically unable 
 16.15  to continue working due to the injury.  Temporary total 
 16.16  disability compensation may not be recommenced under this clause 
 16.17  and a new period of maximum medical improvement does not begin 
 16.18  if the employee is not actively employed when the employee 
 16.19  becomes medically unable to work.  All periods of initial and 
 16.20  recommenced temporary total disability compensation are included 
 16.21  in the 104-week limitation specified in paragraph (k).  
 16.22     (f) Temporary total disability compensation shall cease if 
 16.23  the employee withdraws from the labor market.  Temporary total 
 16.24  disability compensation may be recommenced following cessation 
 16.25  under this paragraph only if the employee reenters the labor 
 16.26  market prior to 90 days after the employee reached maximum 
 16.27  medical improvement and prior to payment of 104 weeks of 
 16.28  temporary total disability compensation.  Once recommenced, 
 16.29  temporary total disability ceases when any of the cessation 
 16.30  events in paragraphs (e) to (l) occurs. 
 16.31     (g) Temporary total disability compensation shall cease if 
 16.32  the total disability ends and the employee fails to diligently 
 16.33  search for appropriate work within the employee's physical 
 16.34  restrictions.  Temporary total disability compensation may be 
 16.35  recommenced following cessation under this paragraph only if the 
 16.36  employee begins diligently searching for appropriate work within 
 17.1   the employee's physical restrictions prior to 90 days after 
 17.2   maximum medical improvement and prior to payment of 104 weeks of 
 17.3   temporary total disability compensation.  Once recommenced, 
 17.4   temporary total disability compensation ceases when any of the 
 17.5   cessation events in paragraphs (e) to (l) occurs. 
 17.6      (h) Temporary total disability compensation shall cease if 
 17.7   the employee has been released to work without any physical 
 17.8   restrictions caused by the work injury. 
 17.9      (i) Temporary total disability compensation shall cease if 
 17.10  the employee refuses an offer of work that is consistent with a 
 17.11  plan of rehabilitation filed with the commissioner which meets 
 17.12  the requirements of section 176.102, subdivision 4, or, if no 
 17.13  plan has been filed, the employee refuses an offer of gainful 
 17.14  employment that the employee can do in the employee's physical 
 17.15  condition.  Once temporary total disability compensation has 
 17.16  ceased under this paragraph, it may not be recommenced. 
 17.17     (j) Temporary total disability compensation shall cease 90 
 17.18  days after the employee has reached maximum medical improvement, 
 17.19  except as provided in section 176.102, subdivision 11, paragraph 
 17.20  (b).  For purposes of this subdivision, the 90-day period after 
 17.21  maximum medical improvement commences on the earlier of:  (1) 
 17.22  the date that the employee receives a written medical report 
 17.23  indicating that the employee has reached maximum medical 
 17.24  improvement; or (2) the date that the employer or insurer serves 
 17.25  the report on the employee and the employee's attorney, if any.  
 17.26  Once temporary total disability compensation has ceased under 
 17.27  this paragraph, it may not be recommenced except if the employee 
 17.28  returns to work and is subsequently medically unable to continue 
 17.29  working as provided in paragraph (e), clause (2). 
 17.30     (k) Temporary total disability compensation shall cease 
 17.31  entirely when 104 weeks of temporary total disability 
 17.32  compensation have been paid, except as provided in section 
 17.33  176.102, subdivision 11, paragraph (b).  Notwithstanding 
 17.34  anything in this section to the contrary, initial and 
 17.35  recommenced temporary total disability compensation combined 
 17.36  shall not be paid for more than 104 weeks, regardless of the 
 18.1   number of weeks that have elapsed since the injury, except that 
 18.2   if the employee is in a retraining plan approved under section 
 18.3   176.102, subdivision 11, the 104 week limitation shall not apply 
 18.4   during the retraining, but is subject to the limitation before 
 18.5   the plan begins and after the plan ends. 
 18.6      (l) Paragraphs (e) to (k) do not limit other grounds under 
 18.7   law to suspend or discontinue temporary total disability 
 18.8   compensation provided under this chapter. 
 18.9      (m) Once an employee has been paid 52 weeks of temporary 
 18.10  total compensation, the employer or insurer must notify the 
 18.11  employee in writing of the 104 week limitation on payment of 
 18.12  temporary total compensation.  A copy of this notice must also 
 18.13  be filed with the department. 
 18.14     Sec. 11.  Minnesota Statutes 1998, section 176.101, 
 18.15  subdivision 2a, is amended to read: 
 18.16     Subd. 2a.  [PERMANENT PARTIAL DISABILITY.] (a) Compensation 
 18.17  for permanent partial disability is as provided in this 
 18.18  subdivision.  Permanent partial disability must be rated as a 
 18.19  percentage of the whole body in accordance with rules adopted by 
 18.20  the commissioner under section 176.105.  The percentage 
 18.21  determined pursuant to the rules must be multiplied by the 
 18.22  corresponding amount in the following table: 
 18.23        Impairment rating                   Amount
 18.24            (percent)
 18.25             0-25                         $ 75,000
 18.26             0-5                          $ 75,000
 18.27             6-10                           80,000
 18.28             11-15                          85,000
 18.29             16-20                          90,000
 18.30             21-25                          95,000
 18.31             26-30                          80,000 100,000
 18.32             31-35                          85,000 110,000
 18.33             36-40                          90,000 120,000
 18.34             41-45                          95,000 130,000
 18.35             46-50                         100,000 140,000
 18.36             51-55                         120,000 165,000
 19.1              56-60                         140,000 190,000
 19.2              61-65                         160,000 215,000
 19.3              66-70                         180,000 240,000
 19.4              71-75                         200,000 265,000
 19.5              76-80                         240,000 315,000
 19.6              81-85                         280,000 365,000
 19.7              86-90                         320,000 415,000
 19.8              91-95                         360,000 465,000
 19.9              96-100                        400,000 515,000
 19.10  An employee may not receive compensation for more than a 100 
 19.11  percent disability of the whole body, even if the employee 
 19.12  sustains disability to two or more body parts. 
 19.13     (b) Permanent partial disability is payable upon cessation 
 19.14  of temporary total disability under subdivision 1.  If the 
 19.15  employee requests payment in a lump sum, then the compensation 
 19.16  must be paid within 30 days.  This lump sum payment may be 
 19.17  discounted to the present value calculated up to a maximum five 
 19.18  percent basis.  If the employee does not choose to receive the 
 19.19  compensation in a lump sum, then the compensation is payable in 
 19.20  installments at the same intervals and in the same amount as the 
 19.21  employee's temporary total disability rate on the date of injury.
 19.22  Permanent partial disability is not payable while temporary 
 19.23  total compensation is being paid. 
 19.24     Sec. 12.  Minnesota Statutes 1998, section 176.101, 
 19.25  subdivision 8, is amended to read: 
 19.26     Subd. 8.  [CESSATION OF BENEFITS.] Temporary total 
 19.27  disability payments shall cease at retirement.  "Retirement" 
 19.28  means that a preponderance of the evidence supports a conclusion 
 19.29  that an employee has retired.  The subjective statement of an 
 19.30  employee that the employee is not retired is not sufficient in 
 19.31  itself to rebut objective evidence of retirement but may be 
 19.32  considered along with other evidence.  
 19.33     For injuries occurring after January 1, 1984, an employee 
 19.34  who receives social security old age and survivors insurance 
 19.35  retirement benefits under the Social Security Act, Public Law 
 19.36  Number 98-21, as amended, is presumed retired from the labor 
 20.1   market.  This presumption is For injuries occurring after 
 20.2   October 1, 2000, an employee who receives any other 
 20.3   service-based government retirement pension is presumed retired 
 20.4   from the labor market.  The term "service-based government 
 20.5   retirement pension" does not include disability-based government 
 20.6   pensions.  These presumptions are rebuttable by a preponderance 
 20.7   of the evidence. 
 20.8      Sec. 13.  Minnesota Statutes 1998, section 176.102, 
 20.9   subdivision 3, is amended to read: 
 20.10     Subd. 3.  [REVIEW PANEL.] There is created a rehabilitation 
 20.11  review panel composed of the commissioner or a designee, who 
 20.12  shall serve as an ex officio member and two members each from 
 20.13  employers, insurers, rehabilitation, and medicine, one member 
 20.14  representing chiropractors, and four members representing 
 20.15  labor.  The members shall be appointed by the commissioner and 
 20.16  shall serve four-year terms which may be renewed.  Terms, 
 20.17  compensation, and removal for members shall be governed by 
 20.18  section 15.0575.  The panel shall select a chair.  The panel 
 20.19  shall review and make a determination with respect to appeals 
 20.20  from orders of the commissioner regarding certification approval 
 20.21  of qualified rehabilitation consultants and vendors.  The 
 20.22  hearings are de novo and initiated by the panel under the 
 20.23  contested case procedures of chapter 14, and are appealable to 
 20.24  the workers' compensation court of appeals in the manner 
 20.25  provided by section 176.421.  
 20.26     Sec. 14.  Minnesota Statutes 1998, section 176.102, 
 20.27  subdivision 11, is amended to read: 
 20.28     Subd. 11.  [RETRAINING; COMPENSATION.] (a) Retraining is 
 20.29  limited to 156 weeks.  An employee who has been approved for 
 20.30  retraining may petition the commissioner or compensation judge 
 20.31  for additional compensation not to exceed 25 percent of the 
 20.32  compensation otherwise payable.  If the commissioner or 
 20.33  compensation judge determines that this additional compensation 
 20.34  is warranted due to unusual or unique circumstances of the 
 20.35  employee's retraining plan, the commissioner may award 
 20.36  additional compensation in an amount not to exceed the 
 21.1   employee's request.  This additional compensation shall cease at 
 21.2   any time the commissioner or compensation judge determines the 
 21.3   special circumstances are no longer present.  
 21.4      (b) If the employee is not employed during a retraining 
 21.5   plan that has been specifically approved under this section, 
 21.6   temporary total compensation is payable for up to 90 days after 
 21.7   the end of the retraining plan; except that, payment during the 
 21.8   90-day period is subject to cessation in accordance with section 
 21.9   176.101.  If the employee is employed during the retraining plan 
 21.10  but earning less than at the time of injury, temporary partial 
 21.11  compensation is payable at the rate of 66-2/3 percent of the 
 21.12  difference between the employee's weekly wage at the time of 
 21.13  injury and the weekly wage the employee is able to earn in the 
 21.14  employee's partially disabled condition, subject to the maximum 
 21.15  rate for temporary total compensation.  Temporary partial 
 21.16  compensation is not subject to the 225-week or 450-week 
 21.17  limitations provided by section 176.101, subdivision 2, during 
 21.18  the retraining plan, but is subject to those limitations before 
 21.19  and after the plan. 
 21.20     (c) Any request for retraining shall be filed with the 
 21.21  commissioner before 104 156 weeks of any combination of 
 21.22  temporary total or temporary partial compensation have been paid.
 21.23  Retraining shall not be available after 104 156 weeks of any 
 21.24  combination of temporary total or temporary partial compensation 
 21.25  benefits have been paid unless the request for the retraining 
 21.26  has been filed with the commissioner prior to the time the 104 
 21.27  156 weeks of compensation have been paid.  
 21.28     (d) The employer or insurer must notify the employee in 
 21.29  writing of the 104 156 week limitation for filing a request for 
 21.30  retraining with the commissioner.  This notice must be given 
 21.31  before 80 weeks of temporary total disability or temporary 
 21.32  partial disability compensation have been paid, regardless of 
 21.33  the number of weeks that have elapsed since the date of injury.  
 21.34  If the notice is not given before the 80 weeks, the period of 
 21.35  time within which to file a request for retraining is extended 
 21.36  by the number of days the notice is late, but in no event may a 
 22.1   request be filed later than 225 weeks after any combination of 
 22.2   temporary total disability or temporary partial disability 
 22.3   compensation have been paid.  The commissioner may assess a 
 22.4   penalty of $25 per day that the notice is late, up to a maximum 
 22.5   penalty of $2,000, against an employer or insurer for failure to 
 22.6   provide the notice.  The penalty is payable to the assigned risk 
 22.7   safety account. 
 22.8      Sec. 15.  Minnesota Statutes 1998, section 176.106, 
 22.9   subdivision 7, is amended to read: 
 22.10     Subd. 7.  [REQUEST FOR HEARING.] Any party aggrieved by the 
 22.11  decision of the commissioner's designee may request a formal 
 22.12  hearing by filing the request with the commissioner and serving 
 22.13  the request on all parties no later than 30 days after the 
 22.14  decision; provided, however, that the commissioner shall review 
 22.15  a decision of the commissioner's designee regarding a claim for 
 22.16  a medical benefit of $1,500 or less and the commissioner's 
 22.17  decision shall be final.  Requests on other issues shall be 
 22.18  referred to the office of administrative hearings for a de novo 
 22.19  hearing before a compensation judge.  Except where the only 
 22.20  issues to be determined pursuant to this section involve 
 22.21  liability for past treatment or services that will not affect 
 22.22  entitlement to ongoing or future proposed treatment or services 
 22.23  under section 176.102 or 176.135, the commissioner shall refer a 
 22.24  timely request to the office of administrative hearings within 
 22.25  five working days after filing of the request and the hearing at 
 22.26  the office of administrative hearings must be held on the first 
 22.27  date that all parties are available but not later than 60 days 
 22.28  after the office of administrative hearings receives the matter. 
 22.29  Following the hearing, the compensation judge must issue the 
 22.30  decision within 30 days.  The decision of the compensation judge 
 22.31  is appealable pursuant to section 176.421. 
 22.32     Sec. 16.  Minnesota Statutes 1998, section 176.111, 
 22.33  subdivision 5, is amended to read: 
 22.34     Subd. 5.  [PAYMENTS, TO WHOM MADE.] In death cases 
 22.35  compensation payable to dependents is computed on the following 
 22.36  basis and shall be paid to the persons entitled thereto or to a 
 23.1   guardian or conservator as required under section 176.092.  The 
 23.2   minimum amount of dependency compensation that must be paid to 
 23.3   persons entitled thereto is $60,000. 
 23.4      Sec. 17.  Minnesota Statutes 1998, section 176.111, 
 23.5   subdivision 18, is amended to read: 
 23.6      Subd. 18.  [BURIAL EXPENSE.] In all cases where death 
 23.7   results to an employee from a personal injury arising out of and 
 23.8   in the course of employment, the employer shall pay the expense 
 23.9   of burial, not exceeding in amount $7,500 $15,000.  In case any 
 23.10  dispute arises as to the reasonable value of the services 
 23.11  rendered in connection with the burial, its reasonable value 
 23.12  shall be determined and approved by the commissioner, a 
 23.13  compensation judge, or workers' compensation court of appeals, 
 23.14  in cases upon appeal, before payment, after reasonable notice to 
 23.15  interested parties as is required by the commissioner.  If the 
 23.16  deceased leaves no dependents, no compensation is payable, 
 23.17  except as provided by this chapter. 
 23.18     Sec. 18.  Minnesota Statutes 1998, section 176.111, is 
 23.19  amended by adding a subdivision to read: 
 23.20     Subd. 22.  [PAYMENTS TO ESTATE; DEATH OF EMPLOYEE.] In 
 23.21  every case of death of an employee resulting from personal 
 23.22  injury arising out of and in the course of employment where 
 23.23  there are no persons entitled to monetary benefits of dependency 
 23.24  compensation, the employer shall pay to the estate of the 
 23.25  deceased employee the sum of $60,000. 
 23.26     Sec. 19.  Minnesota Statutes 1998, section 176.129, 
 23.27  subdivision 3, is amended to read: 
 23.28     Subd. 3.  [PAYMENTS TO FUND, INJURY.] If an employee 
 23.29  suffers a personal injury resulting in permanent partial 
 23.30  disability, temporary total disability, temporary partial 
 23.31  disability, permanent total disability, or death and the 
 23.32  employee or the employee's dependents are entitled to 
 23.33  compensation under sections 176.101 or 176.111 the employer 
 23.34  shall pay to the commissioner a lump sum amount, without any 
 23.35  interest deduction, equal to 20 percent of the total 
 23.36  compensation payable.  The rate under this subdivision shall be 
 24.1   adjusted as provided under subdivision 4a and applies to 
 24.2   injuries occurring after June 1, 1971, for payments made on or 
 24.3   after January 1, 1984.  This payment is to be credited to the 
 24.4   special compensation fund and shall be in addition to any 
 24.5   compensation payments made by the employer under this chapter. 
 24.6   Payment shall be made as soon as the amount is determined and 
 24.7   approved by and the completed assessment form shall be submitted 
 24.8   to the commissioner no later than April 1 and August 15 of the 
 24.9   same calendar year.  
 24.10     Sec. 20.  Minnesota Statutes 1998, section 176.129, 
 24.11  subdivision 4, is amended to read: 
 24.12     Subd. 4.  [TIME OF INJURY.] Subdivision 3 applies to all 
 24.13  workers' compensation payments, exclusive of medical costs, paid 
 24.14  under section 176.101 or 176.111 for an injury or death 
 24.15  occurring on or after June 1, 1971. 
 24.16     Payments made for personal injuries that occurred prior to 
 24.17  June 1, 1971, shall be reported to the special compensation fund 
 24.18  but shall not be assessed at the rate in effect on the date of 
 24.19  occurrence. 
 24.20     Sec. 21.  Minnesota Statutes 1998, section 176.231, 
 24.21  subdivision 2, is amended to read: 
 24.22     Subd. 2.  [INITIAL REPORT, WRITTEN REPORT.] Where 
 24.23  subdivision 1 requires an injury to be reported within 48 hours, 
 24.24  the employer may make an initial report by telephone, telegraph, 
 24.25  or personal notice, and file a written report of the injury 
 24.26  within seven days from its occurrence or within such time as the 
 24.27  commissioner of labor and industry designates.  All written 
 24.28  reports of injuries required by subdivision 1 shall include the 
 24.29  date of injury, amounts of payments made, if any, and the date 
 24.30  of the first payment.  The reports shall be on a form designed 
 24.31  by the commissioner, with a clear copy suitable for imaging to 
 24.32  the commissioner, one copy to the insurer, and one copy to the 
 24.33  employee. 
 24.34     The employer must give the employee the "Minnesota Workers' 
 24.35  Compensation System Employee Information Sheet" at the time the 
 24.36  employee is given a copy of the first report of injury. 
 25.1      If an insurer or self-insurer repeatedly fails to pay 
 25.2   benefits within three days of the due date, pursuant to section 
 25.3   176.221, the insurer or self-insurer shall be ordered by the 
 25.4   commissioner to explain, in person, the failure to pay benefits 
 25.5   due in a reasonable time.  If prompt payments are not thereafter 
 25.6   made, the commissioner shall refer the insurer or self-insurer 
 25.7   to the commissioner of commerce for action pursuant to section 
 25.8   176.225, subdivision 4. 
 25.9      Sec. 22.  Minnesota Statutes 1998, section 176.611, 
 25.10  subdivision 2a, is amended to read: 
 25.11     Subd. 2a.  [SETTLEMENT AND CONTINGENCY RESERVE ALTERNATIVE 
 25.12  COST ALLOCATION ACCOUNT.] To reduce long-term costs, minimize 
 25.13  impairment to agency operations and budgets, and distribute risk 
 25.14  of one-time catastrophic claims, the commissioner of employee 
 25.15  relations shall maintain a separate account within the state 
 25.16  compensation revolving fund.  The account shall be used to pay 
 25.17  for lump-sum or annuitized settlements, structured claim 
 25.18  settlements, and one-time large, legal, catastrophic medical, 
 25.19  indemnity, or other irregular claim costs that might otherwise 
 25.20  pose a significant burden for agencies.  The commissioner of 
 25.21  employee relations, with the approval of the commissioner of 
 25.22  finance, may establish criteria and procedures for payment from 
 25.23  the account on an agency's behalf.  The commissioner of employee 
 25.24  relations may assess agencies on a reimbursement or premium 
 25.25  basis from time to time to ensure adequate account reserves.  
 25.26  The account consists of appropriations from the general fund, 
 25.27  receipts from billings to agencies, and credited investment 
 25.28  gains or losses attributable to balances in the account.  The 
 25.29  state board of investment shall invest the assets of the account 
 25.30  according to section 11A.24. 
 25.31     Sec. 23.  [LEGISLATIVE FINDINGS.] 
 25.32     The Minnesota workers' compensation assigned risk plan is 
 25.33  to aid in the operation of the workers' compensation system by 
 25.34  providing a source of workers' compensation insurance for 
 25.35  employers unable to obtain such coverage from the private 
 25.36  insurance market.  The operations for this plan have yielded a 
 26.1   surplus from investment returns and other sources.  It is in the 
 26.2   public interest and is the intent of the legislature to use a 
 26.3   portion of the excess surplus currently maintained by the 
 26.4   Minnesota workers' compensation assigned risk plan to reduce the 
 26.5   current and future obligations of the second injury and the 
 26.6   supplemental benefits programs of the special compensation fund 
 26.7   administered by the department of labor and industry. 
 26.8      Sec. 24.  [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK 
 26.9   PLAN SURPLUS TRANSFER.] 
 26.10     Subdivision 1.  [EXCESS SURPLUS.] "Excess surplus" means 
 26.11  the amount of the Minnesota workers' compensation assigned risk 
 26.12  plan funds that exceeds the amount necessary to pay all current 
 26.13  liabilities of this plan, including, but not limited to: 
 26.14     (1) administrative expenses; 
 26.15     (2) benefit claims; and 
 26.16     (3) in the event the Minnesota workers' compensation 
 26.17  assigned risk plan is dissolved under Minnesota Statutes, 
 26.18  section 79.251, subdivision 8, the amounts which would be due 
 26.19  insurers who have paid assessments to this plan. 
 26.20     Subd. 2.  [TRANSFER OF EXCESS SURPLUS FUNDS.] (a) On or 
 26.21  before July 10, 2000, the commissioner of commerce shall certify 
 26.22  to the commissioner of finance the amount of the Minnesota 
 26.23  workers' compensation assigned risk plan excess surplus.  On or 
 26.24  before July 10, 2000, the commissioner of finance and the 
 26.25  commissioner of commerce must direct the transfer of 
 26.26  $325,000,000 of assets of the assigned risk plan excess surplus 
 26.27  to a separate account within the special compensation fund 
 26.28  called the excess surplus account.  The assets shall be managed 
 26.29  by the state board of investment.  The principal portion of the 
 26.30  money in the excess surplus account is appropriated to the 
 26.31  department of labor and industry for settlement of liabilities 
 26.32  of the second injury and supplementary benefits programs.  
 26.33  Interest, gains, and other income of the excess surplus account 
 26.34  shall be credited to the account.  Interest earnings on the 
 26.35  excess surplus account are appropriated to the department of 
 26.36  labor and industry to pay annual claims in the second injury and 
 27.1   supplementary benefits programs.  Up to $1,000,000 in the excess 
 27.2   surplus account may be applied to administrative costs incurred 
 27.3   by these programs. 
 27.4      (b) The transfer of funds authorized by this subdivision is 
 27.5   not subject to review under Minnesota Statutes, chapter 14. 
 27.6      Subd. 3.  [ASSESSMENT.] If excess surplus funds are 
 27.7   transferred as provided in subdivision 2, by January 1, 2001, 
 27.8   the rate assessed by the commissioner of labor and industry 
 27.9   under Minnesota Statutes, section 176.129, subdivisions 3 and 
 27.10  4a, shall be reduced by at least 30 percent from the rate in 
 27.11  effect on January 1, 2000. 
 27.12     Subd. 4.  [STATUS REPORT.] On October 15, 2002, and October 
 27.13  15, 2004, the department of labor and industry must report to 
 27.14  the governor and the legislature on the status of its efforts to 
 27.15  reduce the unfunded liabilities of the second injury and the 
 27.16  supplementary benefits programs.  These reports must include an 
 27.17  updated projection of the remaining long-term liabilities for 
 27.18  these programs and must make appropriate recommendations. 
 27.19     Sec. 25.  [NONSEVERABILITY.] 
 27.20     Notwithstanding Minnesota Statutes, section 645.20, the 
 27.21  provisions of section 24, the minimum and maximum benefit rates 
 27.22  of section 10, and the changes in permanent partial disability 
 27.23  impairment ratings and corresponding dollar amounts of section 
 27.24  11 are not severable, and the provisions of section 24, the 
 27.25  minimum and maximum benefit rates of section 10, and the changes 
 27.26  in permanent partial disability impairment ratings and 
 27.27  corresponding dollar amounts of section 11 shall not be 
 27.28  effective unless the $325,000,000 referenced in section 24 is 
 27.29  used to reduce the rate of assessment as required by section 24, 
 27.30  subdivision 2, by satisfying liabilities of the special 
 27.31  compensation fund.  If any of the following events occur on or 
 27.32  before June 1, 2003, the provisions of section 24, the minimum 
 27.33  and maximum benefit rates of section 10, and the changes in 
 27.34  permanent partial disability impairment ratings and 
 27.35  corresponding dollar amounts of section 11 are repealed and the 
 27.36  law as it existed prior to the enactment of these sections shall 
 28.1   be reinstated effective 90 days following the occurrence of any 
 28.2   of the following events and the law, as reinstated, shall be 
 28.3   applicable to any personal injuries occurring after the date of 
 28.4   reinstatement: 
 28.5      (1) section 24 is invalidated by final court adjudication 
 28.6   not subject to further appeal; or 
 28.7      (2) the $325,000,000 referenced in section 24 is 
 28.8   transferred and the funds are used in a manner or for a purpose 
 28.9   inconsistent with the requirements of section 24. 
 28.10     If any of the foregoing events described in clause (1) or 
 28.11  (2) should occur on or before June 1, 2003, any unexpended funds 
 28.12  transferred to the special compensation fund under section 24 
 28.13  shall be returned to the assigned risk plan. 
 28.14     Sec. 26.  [NO CLAIM OF RIGHT.] 
 28.15     The transfer of funds required by section 24 does not 
 28.16  create a right nor impose a liability on any person or fund to 
 28.17  the funds transferred except as provided in section 24.  If, for 
 28.18  any reason, funds cannot be transferred as required by section 
 28.19  24, the funds shall remain in the assigned risk plan fund.  
 28.20     Sec. 27.  [TRANSFER PRIORITY.] 
 28.21     The transfer of excess surplus required by section 24 shall 
 28.22  be made prior to any other transfer of excess surplus from the 
 28.23  assigned risk plan fund authorized by laws passed at the regular 
 28.24  session of the 2000 legislature. 
 28.25     Sec. 28.  [REPEALER.] 
 28.26     Minnesota Statutes 1998, section 176.129, subdivision 2, is 
 28.27  repealed. 
 28.28     Sec. 29.  [EFFECTIVE DATES.] 
 28.29     Sections 1, 10, 11, and 14 are effective for dates of 
 28.30  injury on or after October 1, 2000.  Section 9 is effective for 
 28.31  written notices of claims for legal services that were filed on 
 28.32  or after August 1, 2000.  Sections 16, 17, and 18 are effective 
 28.33  for dates of injury on or after the day following final 
 28.34  enactment.  Sections 23 to 28 are effective the day following 
 28.35  final enactment.